🔴 Breaking
Iran Reportedly Draws Up Plans to Target Gulf Undersea Internet Cables if US-Israel Attacks Resume
- Undersea cables could be targeted: According to Reuters, two senior Iranian security officials said Tehran has developed contingency plans to strike undersea communications cables in the Gulf if the United States and Israel launch another attack.
- Repairs could be obstructed: One official reportedly said Iran could also prevent damaged cables from being repaired, potentially prolonging disruptions to internet and communications services.
- ‘No more red lines’: An Iranian official warned that renewed attacks on Iran could lead to retaliation against undersea cables and military bases.
- Technology infrastructure at risk: Iranian officials have also threatened data centres and AI facilities in the Gulf linked to US interests, raising concerns about cloud computing and digital services.
- Financial services could be affected: Damage to undersea cables could disrupt regional internet connectivity, financial transactions, e-commerce and cloud infrastructure.
- Global impact may be limited: Alan Mauldin, research director at TeleGeography, said the Strait of Hormuz carries less than 1% of global international bandwidth, suggesting the wider global impact could be limited, although regional disruption could be significant.
- Red Sea risks remain uncertain: The Red Sea is another potential vulnerability for undersea cables, but Iran has not publicly announced plans to target cables there.
North Korea Hit by Suspected DDoS Cyberattack; Over 40 Government Websites Reportedly Disrupted
- Internet disruption reported: North Korea experienced intermittent internet outages this week, disrupting several state-managed websites over a period of approximately 32 hours beginning Tuesday.
- Traffic spikes detected: US network-monitoring firm Kentik identified multiple waves of unusual internet traffic originating from locations including Vietnam and the Philippines, coinciding with the outages.
- DDoS attack suspected: Doug Madory, Kentik’s director of internet analysis, told Reuters that the simultaneous traffic spikes were consistent with a distributed denial-of-service (DDoS) attack.
- Government websites affected: More than 40 official websites using North Korea’s
.kpdomain were reportedly affected, including the Foreign Ministry and state news agency KCNA, according to South Korean media. - Attackers remain unidentified: Kentik’s analysis did not establish who was responsible and covered only a portion of the traffic directed at North Korea.
- Alternative explanation considered: South Korean media also cited experts who suggested North Korea’s unreliable power supply could have contributed to the outages. The disruption appeared unrelated to separate global internet issues linked to PHP vulnerabilities later in the week.
US 10-Year Treasury Yield Stays Below 5% After Biggest Daily Drop Since March 2023 as AI Credit Risks Grow
- Yield remains below 5%: The 10-year US Treasury yield edged higher on Friday but stayed below the 5% threshold as investors sought safety in government bonds.
- Sharp Thursday decline: The yield fell below 5% for the first time since September 23, recording its biggest single-day drop since March 2023, according to MarketWatch.
- AI stock sell-off drives bond demand: Investors moved into Treasuries amid a sell-off in AI-related stocks, as concerns grew over technology companies’ borrowing and financing needs.
- Credit stress intensifies: Credit default swap spreads for AI infrastructure company CoreWeave and Oracle reportedly hit record highs earlier this month, according to Reuters.
- Debt concerns spread: Rising credit-risk indicators have heightened scrutiny of the debt financing supporting the AI infrastructure boom.
Advertisement
Russia–US–Ukraine Trilateral Talks Planned for Early November; Moscow Announces Humanitarian Ceasefire in Kherson
- Peace talks scheduled: Ukrainian President Volodymyr Zelenskiy said on October 23 that meetings involving Ukraine, Russia and the United States are planned for the first half of November following calls with US envoy Steve Witkoff and Jared Kushner.
- Abu Dhabi venue: Kremlin spokesman Dmitry Peskov said the trilateral talks on Russia–Ukraine security guarantees are expected to begin in Abu Dhabi. European participation has not been ruled out.
- Ceasefire from October 27: Russia’s General Staff Chief Valery Gerasimov said Russian forces would halt firing in the Kherson direction from 4:00 a.m. Moscow time on October 27 to facilitate a humanitarian operation in Oleshky.
- Humanitarian convoy protection: Gerasimov said Russia would provide security for humanitarian convoys entering Oleshky, in Ukraine’s Kherson region.
- Ceasefire duration under discussion: Peskov said the military was coordinating how long the temporary ceasefire would last, with further operational details potentially announced by Russia’s Defence Ministry.
- US involvement acknowledged: Peskov credited US First Lady Melania Trump with playing a leading role in coordination efforts and thanked the United States, President Donald Trump and the first lady for their involvement in humanitarian issues.
🔴 Breaking
Trump Says Iran War Could End Soon as Report Claims Washington Warned Baghdad of Potential US Strike
- Potential US strike reported: Iraq’s Kurdistan-based Channel 8 reported that Washington had alerted Baghdad to a possible US strike on Iran in the coming days. The report has not been independently verified here.
- Iraq warns armed groups: According to the report, Iraqi Prime Minister al-Zaidi warned domestic armed groups that intervention in the conflict could carry legal consequences.
- Trump signals possible end to war: US President Donald Trump said the war with Iran could end “very soon,” while also claiming the United States could take control of Iran’s oil resources.
- Strait of Hormuz claim: Trump asserted that the strategically important Strait of Hormuz was under his control, amid continuing tensions over the vital oil-shipping route.
- Trade negotiations: Trump also said the United States was close to reaching an agreement with Mexico and that Canada was working toward an agreement with Washington.
SEBI Relaxes Call Recording Rules for Research Analysts Dealing With Institutional Investors From November 8
- Recording requirement removed: SEBI has exempted research analysts and research entities from maintaining call recordings of interactions with institutional investors.
- Effective date: The revised rules will come into effect on November 8, 2026, following an amendment to the SEBI (Research Analysts) Regulations.
- Records still required for other clients: Research analysts must continue maintaining records of interactions with clients other than institutional investors.
- Fee status does not matter: The record-keeping requirement applies to both fee-paying and non-fee-paying clients, including those receiving research services as a value-added benefit alongside other paid services.
- Digital records accepted: Separate call recordings are not required for interactions conducted through channels such as email where a digital record is available.
- Ease of doing business: The relaxation follows representations from market participants and aims to reduce compliance burdens.
Advertisement
US Consumer Sentiment Hits Five-Month Low at 48.0 as Inflation Expectations Rise; 10-Year Treasury Yield Nears 5%
- Consumer sentiment weakens: The University of Michigan’s final consumer sentiment index fell to 48.0 in October, from 48.1 in September, marking a five-month low. However, the reading was above the preliminary estimate and economists’ expectations.
- One-year inflation expectations rise: Consumers expect inflation to reach 4.7% over the next year, up from 4.6% in September.
- Long-term inflation outlook worsens: Five- to ten-year inflation expectations increased to 3.5%, with both short- and long-term expectations at their highest levels since May.
- Inflation outweighs unemployment concerns: Survey director Joanne Hsu said consumers across political affiliations view inflation as a greater near-term economic risk than unemployment.
- Treasury yields remain elevated: Following the release, the 10-year US Treasury yield was up 3.94 basis points at 4.992%.
- Economic concerns persist: Rising prices and higher interest rates continue to weigh on consumer confidence, while sustained inflation expectations raise concerns about inflation becoming entrenched.
Apple Overtakes Nvidia to Become the World’s Most Valuable Company as US Stocks Open Lower
- Apple reclaims top spot: Apple’s market capitalisation surpassed Nvidia’s, restoring its position as the most valuable publicly listed company in the US.
- Apple hits record high: Apple shares rose 0.9% in early trading to reach a new all-time high.
- Performance gap widens: Over the past 20 trading sessions, Apple shares gained 4.4%, while Nvidia fell 6%.
- US markets open lower: The Dow Jones declined 0.32%, the Nasdaq Composite fell 0.44%, and the S&P 500 dropped 0.34% at the opening.
- Major tech stocks decline: Meta Platforms fell 1.65%, Alphabet Class A dropped 0.95%, and Microsoft slipped 0.64%.
- Chinese stocks mixed: The Nasdaq China Golden Dragon Index rose 0.28%. XPeng gained 3.31%, while Alibaba fell 2.23%.
RBI Net Buys $43.26 Billion in Forex Market in August; Reserves Fall $5.01 Billion
- Forex reserves decline: India’s foreign exchange reserves fell by $5.011 billion from the previous week, according to the Reserve Bank of India (RBI).
- Heavy dollar purchases: The RBI reported net purchases of $43.26 billion in the foreign exchange market in August.
- Inflation becomes broader: The RBI said there are signs that CPI inflation is becoming more broad-based across various goods.
- Measures to curb speculation: The central bank is deploying regulatory measures to counter external headwinds and curb speculative activity in the foreign exchange market.
- Economic momentum remains strong: The RBI said the Indian economy continues to show strong momentum.
Advertisement
Infosys Cuts FY27 Growth Guidance Again to 1–2%; ADRs Fall Over 7% in Premarket as Q2 Profit Misses Estimates
- Profit misses expectations: Infosys reported Q2 FY27 net profit of ₹7,823 crore, up 6% year-on-year but below analyst estimates.
- Revenue rises modestly: Revenue increased 2.1% quarter-on-quarter to ₹49,244 crore from ₹48,211 crore in the June quarter.
- Second guidance cut: Infosys lowered its FY27 constant-currency revenue growth forecast to 1–2%, from 1.5–3%, marking its second consecutive guidance reduction.
- Margins edge lower: EBIT rose 1.6% sequentially to ₹10,330 crore, while the EBIT margin slipped to 21% from 21.1%.
- AI business gains momentum: AI revenues increased 29% sequentially. Large-deal total contract value reached $5.2 billion, with 62% coming from net-new deals.
- Sector weakness persists: Retail revenue fell 7.7% and high-tech contracted 17.3% in constant-currency terms. North America revenue declined 1.5% year-on-year, while Europe grew 4.6%.
- Dividend declared: The board announced an interim dividend of ₹26 per share. Infosys ADRs fell over 7% in premarket trading following the results and guidance cut.
Hedge Funds Suffer Broad Losses as Short Bets Surge to Five-Year Highs
- All three strategies fall: All three major hedge fund strategies tracked by Goldman Sachs lost more than 1% on October 22, the first such occurrence since the COVID-era market rout, Reuters reported.
- Meta shares tumble: Meta recorded its biggest share-price drop since July after announcing a new share class.
- Nvidia also declines: Nvidia shares fell amid broader pressure on AI-related stocks.
- Short selling accelerates: Goldman Sachs clients are shorting stocks roughly five times faster than they are buying them, with short positions approaching five-year highs.
- Potential short squeeze: Goldman warned that a market rebound could trigger a sharp short squeeze as bearish investors rush to cover their positions.
Hedge Funds’ Bearish Bets Near Five-Year High, Raising Short-Squeeze Risk
bigbreakingwire.in
AI Bubble Fears Spread to Credit Markets as Corporate Bond Spreads Hit 17-Month High
- Bond spreads widen: Global corporate bond spreads widened to as much as 129 basis points on Friday, the widest since May 2025, according to a Bloomberg index.
- AI stock sell-off boosts Treasuries: Thursday’s rout in AI stocks helped Treasuries record their strongest session in more than two years, with the 10-year US Treasury yield falling below 5%.
- Ken Griffin warns of a bubble: Citadel founder Ken Griffin said investors are “almost certainly” in an AI bubble.
- Blackstone sees surging demand: Blackstone President Jon Gray described AI demand as “almost parabolic,” highlighting the scale of investment flowing into the sector.
- Credit-market concerns grow: Fears over debt-funded AI spending are spreading beyond equities, raising concerns about corporate borrowing costs and the sustainability of infrastructure investment.
Advertisement
Nvidia’s $170 Billion Support Network Raises Questions Over AI Financing
- More than $170 billion committed: Nvidia has committed over $170 billion through guarantees, purchase agreements and investments to support neocloud providers and other major customers, The Information reported, according to TNW.
- Firmus Grid investment talks: Nvidia is reportedly discussing an investment worth hundreds of millions of dollars in Australia’s Firmus Grid, according to Bloomberg and The Information.
- IPO scrapped: Firmus Grid withdrew its IPO plans and is seeking at least $2 billion in private funding.
- Capital remains a constraint: CEO Jensen Huang told CNBC that neocloud providers lack capital, not customers, highlighting the financing challenge behind surging AI computing demand.
- Circular financing concerns: Critics warn that Nvidia’s financial support for customers buying its chips could create circular financing risks, potentially blurring the distinction between underlying demand and demand supported by vendor funding.
Nvidia Shares Slide as Jensen Huang Warns AI Cloud Providers Face Capital Shortages
bigbreakingwire.in
Nvidia Shares Slide as Jensen Huang Warns AI Cloud Providers Face Capital Shortages
- Shares fall sharply: Nvidia shares declined on Thursday after CEO Jensen Huang highlighted funding constraints facing AI infrastructure providers.
- Demand remains strong: Speaking at GTC Berlin, Huang said demand from “neocloud” AI providers was “off the charts.”
- Capital is scarce: Huang warned that financing remains a major challenge for these providers as they expand computing capacity to meet AI demand.
- Hardware as a financeable asset: Nvidia wants its computing hardware to be recognised as a “financeable asset” that lenders can use to support funding.
- Chip stocks under pressure: CNBC’s Investing Club linked some of Nvidia’s selling to Huang’s remarks, while supply-chain warnings from Lam Research added pressure across semiconductor stocks.
India Smartphone Shipments Plunge 20% to Decade Low as Memory Costs Push Prices Higher
- Shipments hit decade low: India’s smartphone shipments fell 20% year-on-year in the July–September quarter, reaching their lowest level in a decade, according to Counterpoint Research.
- Budget segment hit hardest: Shipments of smartphones priced below ₹20,000 plunged 47% as rising memory costs pushed device prices higher and models moved into more expensive price bands.
- Samsung reclaims top spot: Samsung returned to first place in India’s smartphone market after nine quarters.
- Further price hikes expected: Counterpoint expects smartphone manufacturers to raise prices further after the festive season as memory costs remain elevated.
- Affordability under pressure: Higher device prices are weighing on demand, particularly among budget-conscious consumers.
Global PC Shipments Forecast to Plunge 21% in Q3 2026 as Component Costs Rise
bigbreakingwire.in
Advertisement
Bomb Threat Note Found at Kolkata Airport, Security Search Underway
- Threat note discovered: A handwritten bomb threat on tissue paper was found in a women’s toilet at Netaji Subhas Chandra Bose International Airport in Kolkata on Friday morning.
- Boarding Gate 30 targeted: The note warned of a bomb at boarding Gate 30, prompting authorities to clear the surrounding area.
- Extensive search launched: Bomb squad personnel and Central Industrial Security Force (CISF) staff are searching the airport. No suspicious object had been found at the time of the report.
- Police investigation underway: Bidhannagar City Police are questioning the cleaning staff member who discovered the note and examining CCTV footage to identify who left it.
- Flights unaffected: Security has been tightened across the airport, but flight operations have continued without disruption.
- Previous threat recalled: The incident comes around two weeks after the airport received an emailed bomb threat on October 8. That search also found no explosives.
🔴 Breaking
Russia Says Trilateral Talks With US and Ukraine Could Begin in Early November; Diesel Supplies to US Start
- Peace talks planned: Kremlin spokesperson Dmitry Peskov said on October 23 that Russia, the US and Ukraine could begin trilateral negotiations in Abu Dhabi during the first half of November.
- Security guarantees on agenda: The proposed discussions would focus on security guarantees between Russia and Ukraine. Peskov said the trilateral format was still under discussion.
- Europe’s participation possible: Peskov did not rule out European involvement at a later stage.
- Russian diesel shipments begin: Peskov confirmed that Russia had dispatched its first diesel tanker to the US under an agreement between Russian President Vladimir Putin and US President Donald Trump.
- Exports to expand gradually: Following the leaders’ October 9 phone call, Russia partially lifted its diesel export ban on October 10, allowing up to 500,000 tonnes of diesel to reach global markets. Supplies are expected to continue in phases, with Rosneft coordinating contracts with foreign trading partners under government oversight.
Piyush Goyal Meets German Business Leaders to Boost Investment in India
- High-level meetings in Berlin: Union Commerce and Industry Minister Piyush Goyal met Fresenius CEO Michael Sen and senior executives from Bayer and Knauf on Thursday.
- Manufacturing push: The meetings were part of Goyal’s Germany visit, which includes the Berlin Global Dialogue, where he is promoting India’s role in global manufacturing and supply chains.
- Healthcare investment: Discussions with Fresenius focused on India’s expanding healthcare sector and demand for affordable medical solutions.
- Pharmaceutical opportunities: Goyal also met Bayer executives to discuss potential business and investment opportunities.
- Sustainable construction: Talks with Knauf covered sustainable construction materials and infrastructure development.
Advertisement
Iran Claims US Suffered Strategic Defeat, Says Washington Failed to Achieve War Objectives
- Iran declares victory: Iranian Revolutionary Guard spokesman Mohbi claimed the United States had suffered a major strategic defeat in the war and said Iran had emerged as a “superpower,” according to Iran’s Tasnim News Agency.
- US security credibility questioned: Mohbi argued that the conflict had undermined Washington’s claims that its military presence in the Middle East guarantees regional security and safe energy transportation.
- Strait of Hormuz in focus: He said the US had struggled to maintain security and reopen the strategic shipping route despite its naval fleet and military bases across the region.
- War objectives allegedly unmet: Mohbi claimed the US initially sought to overthrow Iran’s government and divide the country, before breaking its goals into 13 smaller objectives, none of which he said had been achieved.
- Intelligence and reputation criticised: The spokesman also alleged that attacks on Iranian infrastructure and the killing of children had damaged US credibility and exposed vulnerabilities in its intelligence network.
Iranian Defence Official Claims Armed Forces Are at Peak Strength Amid Trump’s Threats
- Military strength claimed: The head of Iran’s Defence Ministry’s political and ideological organisation said the country’s armed forces are currently at their peak strength.
- Criticism of Trump: The Iranian official accused US President Donald Trump of pursuing dominance and hegemony through his statements and policies.
- Defiant message: The official said Iran would not be intimidated by US threats and rhetoric.
- Tensions remain elevated: The remarks come amid continued confrontation between Washington and Tehran over military pressure, sanctions and regional security.
NVIDIA Launches 64GB DGX Spark at $4,999 as Memory Costs Push Prices Higher
- 64GB model goes on sale: NVIDIA’s DGX Spark desktop AI system with 64GB of memory goes on sale Friday, starting at $4,999 through partners including Dell, HP and ASUS.
- 128GB model costs more: The higher-memory version is now priced at around $6,950, with rising memory costs cited as a key factor behind the increase.
- Same GB10 superchip: The lower-cost model retains NVIDIA’s GB10 superchip, designed for desktop AI workloads.
- Higher price, less memory: Business Insider noted that the new 64GB model costs more than the original system did at launch, despite offering half the memory.
- Eight-node clustering: NVIDIA now supports connecting up to eight DGX Spark systems into a cluster for larger AI workloads.
India Issues Silver Import Permits for Up to 6,500 Tonnes, Easing Licensing Curbs
- Large import allocation: India has issued six-month silver import permits covering around 6,000–6,500 tonnes to traders and bank dealers, Bloomberg and Reuters reported.
- Restrictions eased: The Centre placed silver on the restricted import list in mid-May, requiring importers to obtain licences.
- Faster import route: The Directorate General of Foreign Trade (DGFT) subsequently introduced a faster import route through the India International Bullion Exchange (IIBX).
- Market surprise: The size of the allocation surprised dealers, particularly as jewellery and investment demand remained weak following a sharp fall in silver prices.
- Premiums decline: Dealers reported that silver premiums had eased as the new permits provided greater clarity on import availability.
South Korea’s KOSPI Forward P/E Falls to 4, Half Indonesia’s Valuation Amid Tech Sell-Off
- Valuations hit multi-decade low: South Korea’s KOSPI forward 12-month price-to-earnings ratio has fallen to around 4, its lowest level since 2006 among 18 markets that had market capitalisations above $1 trillion at the start of 2026.
- Indonesia trades at double the multiple: The Jakarta Composite Index has a forward P/E ratio of approximately 8, twice South Korea’s level.
- AI concerns drive selling: A sell-off in technology stocks has weighed heavily on South Korean equities as investors question whether massive AI investments will generate sufficient returns.
- Indonesia faces separate risks: MSCI has warned that Indonesia could face a two-phase downgrade of its market classification, raising concerns about the market’s investability.
- Financing costs in focus: ACG Management’s Hui Ling Loh said concerns over AI spending and rising financing costs are offsetting strong corporate earnings and guidance, while investors are also seeking safe-haven assets.
Tanker Carrying 40,000 Tonnes of Russian Diesel Heads to New York
- Shipment bound for US: A Maltese-flagged tanker carrying approximately 40,000 tonnes of Russian diesel fuel is heading to New York, according to data from the London Stock Exchange Group (LSEG).
- Russian export restrictions eased: The shipment follows an agreement reportedly reached between Russian President Vladimir Putin and US President Donald Trump to lift Russia’s unilateral ban on diesel exports.
- Global supply targeted: The agreement aims to allow Russian diesel supplies to reach international markets, including the United States.
- Fuel prices in focus: The move comes as governments seek to ease fuel-price pressures amid geopolitical tensions and disruptions to global energy supplies.
Brent Crude Holds Near Five-Month High as Iran Tensions and Libyan Shutdown Fuel Supply Fears
- Oil prices remain elevated: Brent crude stayed near a five-month high on Friday, putting prices on track for a third consecutive weekly gain, Reuters reported.
- Saudi supply concerns: Houthi attacks on Saudi Arabia intensified concerns over potential disruptions to regional oil supplies.
- Libyan output disrupted: A pipeline valve supplying Zawiya port was shut, reducing production at the Hamada and Tahara oilfields, Libya’s National Oil Corporation chief told Reuters.
- Trump raises Iran uncertainty: President Donald Trump said the US was not negotiating with Iran and added that something would happen “fairly soon,” increasing geopolitical uncertainty.
- Risk premium rises: Concerns over supply disruptions across the Middle East and North Africa are supporting crude prices.
China’s CSI 300 Heads for Worst Week in Three Months After Entering Bear Market
- Weekly losses deepen: China’s CSI 300 fell further on Friday, putting the benchmark on track for its worst weekly performance in three months, CNBC-TV18 reported.
- Bear market confirmed: The index entered bear-market territory on Thursday after closing 20% below its June peak.
- Record losing streak: The decline followed a record 10-week losing streak, according to CNBC.
- State-backed support uncertain: One analyst said China’s state-backed “National Team” had been “rather hesitant to make a move,” raising questions about the scale of potential market support.
- Hong Kong shares also fall: The Hang Seng Index slumped alongside mainland Chinese equities as investor sentiment weakened amid fading hopes for fresh stimulus.
China’s CSI 300 Enters Bear Market, Down 20% From June Peak
bigbreakingwire.in
Hedge Funds’ Bearish Bets Near Five-Year High, Raising Short-Squeeze Risk
- Short selling surges: Goldman Sachs’ prime brokerage data shows global equity short selling is running at roughly five times the level of long buying, with short leverage reaching the 99th percentile of its five-year range.
- Net leverage falls: Despite rising short positions, fundamental long-short funds’ net leverage has dropped to near a three-year low, indicating reduced net exposure to equities.
- AI sell-off triggers retreat: Higher-than-expected US inflation and doubts over returns from massive AI infrastructure investments have intensified selling in semiconductor and related technology stocks.
- Nasdaq suffers sharp losses: The Nasdaq 100 fell 5.5% last week, its biggest weekly decline since April 2025, while futures dropped nearly 2% on Thursday.
- Hedge fund returns weaken: Global fundamental long-short funds lost 2.5% in October through Monday, reducing their year-to-date gains to 10.1%, according to a Goldman Sachs team led by Vincent Lin.
- Technology funds hit hardest: Technology, media and telecommunications-focused funds fell 7.4% so far this month.
CalPERS Cuts Big Seven Tech Holdings by 26%, Shifts Focus Toward Private Equity
- Tech exposure reduced: California Public Employees’ Retirement System (CalPERS), one of the largest US public pension funds, cut its combined holdings in the Big Seven technology companies by 26% in the first half of 2026, according to calculations based on regulatory filings cited by the Financial Times.
- Seven major companies affected: The group includes Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta Platforms and Tesla.
- Diversification strategy: CalPERS Deputy Chief Investment Officer Anton Olicch said the fund had diversified its exposure across hundreds of businesses to reduce concentration risk.
- Valuations raise concerns: Olicch warned that public equity valuations are high and investment exposure is concentrated in a small number of companies that could underperform.
- Private equity gains appeal: CalPERS sees more attractive pricing in private equity, which could help cushion its portfolio if public markets decline.
Emkay, SBI Research Expect Further RBI Rate Hikes as Inflation Broadens
- Emkay forecasts more tightening: Emkay Global expects cumulative rate hikes of 50 basis points by February 2027.
- SBI sticks to December view: SBI Research maintains its forecast for 50 basis points of additional tightening by December.
- MPC backs October hike: Minutes released on October 21 showed all six Monetary Policy Committee members supported a 25-basis-point hike to 5.50%, although two opposed shifting to a calibrated tightening stance.
- Rate cuts ruled out: RBI Governor Sanjay Malhotra said rate cuts are off the table for now.
- Further hikes data-dependent: Malhotra indicated that any additional increases would depend on the evolving growth and inflation outlook, with inflation pressures broadening.
US Prepares for Protracted Standoff With Iran as Nuclear Talks and Hormuz Shipping Remain Unresolved
- Long-term standoff possible: The United States is preparing for a prolonged confrontation with Iran despite the Trump administration’s efforts to secure concessions through bombing campaigns and economic sanctions, the Financial Times reported.
- Stalemate could last another year: US UN ambassador nominee Michel Waltz acknowledged that Washington and Tehran could still be locked in a stalemate a year from now, without an agreement on Iran’s nuclear programme.
- Hormuz shipping unresolved: A key challenge remains restoring shipping through the Strait of Hormuz to pre-war levels.
- Blockade may continue: Waltz said the president and US Navy could maintain the blockade against Iranian ports for the foreseeable future.
- Economic pressure intensifies: The administration is stepping up economic pressure on Iran, while Waltz said officials hope to return to effective negotiations before the standoff persists.