Speaking at the Times Network "We've brought down debt-to-GDP from over 60% post-Covid; it's declining, and debt reduction will be the core focus next financial year," Sitharaman said.The Centre expects general government debt to fall to 56.1% of GDP in this financial year.Calling for greater accountability and transparency in state finances, Sitharaman said that the Centre has consistently reduced debt levels and that states must follow suit.Live Events"Unless the debt-to-GSDP (gross state domestic produc ...

I call the chancellor of their shatter. >> Rachel Reeves, as we all remember, infamously after our October 2024 budget, said she would not be coming back with uh more taxes or more borrowing, but she has come back with more tax. This is a very big tax raising package she's announced today.She's avoided, as expected, a direct manifesto breach by not raising income tax, etc. But there are a host of other uh tax raising measures and it's a pretty big it's very much loaded towards personal taxation increases wh ...

Group 1: Market Overview - European futures are pointing higher as fears of bad loans in the US easing, indicating a potential stabilization in credit risks [2][4] - US markets saw a rebound on Friday, with the NASDAQ gaining approximately 0.5%, and both the S&P and Dow also showing similar gains after a selloff led by regional banks [5][11] - Asian markets experienced strong gains, particularly in Japan, where the Nikkei 225 rose over 3% amid political optimism [7][8] Group 2: Company Developments - Kering has agreed to a €4 billion deal with L'Oreal, selling its beauty business, including the perfume line Creed, as part of a strategic refocus under new CEO Luca Deo [3][38] - The deal allows L'Oreal to expand its luxury brand portfolio, acquiring licenses for Gucci, Balenciaga, and others, while Kering aims to reduce its debt, which stood at €9.5 billion at the end of June [43][41] - Analysts view this move positively, suggesting it reflects Kering's strategic shift towards its core fashion business and reduces capital intensity by licensing rather than developing beauty products independently [48][49] Group 3: Economic and Regulatory Context - UK Chancellor Rachel Reeves emphasized the need for fiscal consolidation in response to global economic challenges, with a budget set to address these issues in November [26][28] - S&P Global downgraded France's credit rating to A+ from AA-, citing policy uncertainty and unresolved government finances as key concerns [50][52] - The French government faces long-term fiscal challenges, with projections indicating a potential debt level of 121% by 2028 if no corrective measures are taken [55][56]

Economic Context - The economic context in much of the rich world calls for fiscal consolidation [1] Political Considerations - The political context warns against austerity [1] Potential Solutions - Exploring alternative options beyond fiscal consolidation and austerity is necessary [1]

Investment Rating - The report does not explicitly provide an investment rating for the Maldives industry Core Insights - Economic growth in the Maldives remained robust in 2024, with real GDP growth estimated at 5.5 percent, driven primarily by a strong tourism sector [18][34] - Tourist arrivals reached an all-time high of 2.05 million in 2024, marking an increase of 8.9 percent compared to 2023 [18][35] - Headline inflation surged in late 2024, with food inflation averaging 6.6 percent, up from 5.9 percent in 2023 [19][42] - The fiscal deficit widened to MVR 12.7 billion (US$822.4 million or 11.7 percent of GDP) in 2024, driven by rising expenditures [20][52] - The current account deficit (CAD) remained elevated at US$1.4 billion (20.5 percent of GDP) in 2024, with a widening trade deficit [21][68] - Foreign exchange reserves fell to critically low levels, reaching US$371.2 million in September 2024, before recovering to US$832.1 million by February 2025 [22][69] - Public and publicly guaranteed debt rose to US$9.4 billion (134.2 percent of GDP) in 2024, with external debt servicing costs increasing significantly [25][60] Economic Update - Growth remained robust, supported by tourism, with a 7.1 percent increase in the tourism sector in the first three quarters of 2024 [34] - The fiscal deficit continued to increase, with total expenditure rising to 41.3 percent of GDP [20] - The current account deficit remained elevated, financed by foreign direct investment [21][68] Outlook and Risks - Growth is projected to moderate slightly, with real GDP growth expected at 5.7 percent in 2025 [26] - Inflation is anticipated to rise, potentially increasing poverty rates if targeted cash transfers are not implemented [27] - The fiscal deficit is likely to remain elevated, with public debt projected to rise further [28] - Risks to the outlook are significantly on the downside due to global trade uncertainties and high external debt service payments [29]

Summary of Key Points from the Conference Call Industry Overview - **Industry**: Indian Economic and Market Outlook - **Company**: Goldman Sachs India Core Insights 1. **Tariff Uncertainty**: Concerns were raised regarding potential US reciprocal tariff policies affecting India, particularly in goods trade. However, it is believed that services trade will remain unaffected [4] 2. **Domestic Growth**: Investors perceive that the decline in domestic growth has stabilized, with GDP growth likely bottoming out in Q3 CY24. There is cautious optimism regarding a gentle recovery supported by recent monetary policy easing and tax relief measures [5] 3. **Fiscal Policy**: The Indian government is committed to fiscal consolidation, targeting a fiscal deficit of 4.4% of GDP in FY26. There is a shift in focus towards consumption growth rather than investment, with concerns about the execution capacity of state-level capex projects [6] 4. **Inflation Outlook**: The inflation outlook is considered benign, with Brent crude oil prices decreasing from $82/bbl to approximately $70/bbl. Weather shocks pose a risk to agricultural supply and rural growth recovery [7] 5. **Market Sentiment**: Equity investors expect a gradual turnaround in earnings growth, leading to a range-bound equity market. Large-cap valuations have moderated, but there is a risk of further corrections in mid and small-cap stocks [8] Additional Important Points 1. **Monetary Policy**: Fixed-income investors anticipate a deep monetary policy easing cycle due to the prolonged growth slowdown. The Reserve Bank of India (RBI) is expected to implement a 25 basis point rate cut in the upcoming policy meeting [10] 2. **Foreign Exchange**: The depreciation pressure on the Indian Rupee (INR) against the US Dollar is believed to have stabilized, primarily due to recent FII equity outflows of approximately $15 billion [11] 3. **Investor Sentiment**: There is a mixed sentiment among investors regarding the overall economic outlook, with some expressing concerns about the transmission of monetary policy if liquidity remains uncertain [10][11]