Business

Experts disagree with MPC stance that inflation will fall below 4% in H2

Published

4 years ago

May 22, 2020

The Reserve Bank of India has, in a first, acknowledged that the economy will contract in the current financial year — something that independent experts had already assessed.

It is in this context that the central bank’s monetary policy committee (MPC) cut the repo rate by 40 basis points (bps) despite a “highly uncertain” outlook on retail inflation. The MPC expected the high inflation rate to be short-lived, expecting it to fall below 4 per cent in the second half of the current financial year. Experts have countered this view.

However, RBI Governor Shaktikanta Das did not give an exact figure for the decline in gross domestic product (GDP). He said he would wait for the release of GDP data for FY20, by the statistics office next week, to make a specific projection.

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The governor expects gradual revival in the economy during the second half, after the possible lifting of the lockdown and fiscal/monetary stimulus. However, this has a downward bias as the governor said much depends on how quickly the Covid curve flattens.

The RBI’s assessment came even as independent experts estimated the economy to contract from 5-7 per cent in FY21. Even on Friday, ICRA further cut its projections for the economic contraction. From the earlier expectation of a 1-2 per cent fall in GDP for FY21, it now expects the decline to be 5 per cent.

“We now expect GDP to report contractions of 25 per cent and 2.1 per cent for Q1 and Q2 of FY21, which implies a recession,” said Aditi Nayar, principal economist, ICRA.

On the assumption that the lockdown will be completely lifted within the first quarter of FY21, Nayar expected a V-shaped recovery.

ALSO READ: India’s FMCG market contracts 34% in April amid Covid-19 outbreak

“However, if there is a second wave of infections that forces subsequent lockdowns either in India or globally, the ensuing demand uncertainty and supply chain hiccups could result in a W-shaped economic cycle, the inflection points of which can’t be gauged now,” she added.

Only agriculture provides some ray of hope. Das used figures released by the agriculture ministry to say that amid this encircling gloom, agriculture and allied activities have provided a beacon of hope. The third advance estimates pegged food grain production figure at record 295.67 million tonnes for FY20.

In addition, there was forecast of a normal monsoon in 2021 by the India Meteorological Department (IMD).

By May 10, kharif sowing was higher by 44 per cent over last year’s acreage. Rabi procurement was in full flow with respect to oilseeds, pulses, and wheat, benefiting from the bumper harvest, said the RBI.

ALSO READ: RBI forecasts economic contraction, announces a sharp 40-bp rate cut

“These developments will support farm income, improve terms of trade facing the farm sector, and strengthen food security. Going forward, these will have a salutary effect on food price pressure,” said Das.

Madan Sabnavis, chief economist at CARE Ratings, did not agree with the MPC’s assessment.

He said: “Inflation will remain above 4 per cent — closer to 5 per cent — in the remaining months of FY21,” he said.

According to Sabnavis, while demand in the non-food segment is low, supply has also been disrupted, and hence inflation will be high. On the food side, inflation has not reduced despite good Rabi production, as there is a tendency to recoup earlier losses. This is likely to happen at the time of Kharif crops as well, he said.

The RBI also feared that the high food inflation may persist for a few more months, depending on the extent of the lockdown and restoration of supply chains.

ALSO READ: Retail, MSME loans to get cheaper as RBI cuts repo rate in surprise action

The consumer price index (CPI) for food and beverages rose to 151.4 in April, from 148.9 in the previous months. However, caution should be exercised in interpreting this number, given many sub-groups such as meat and fish are missing in the April data on account of the lockdown.

The central bank is particularly worried about inflation in pulses, and has urged the government to “reappraise” import duties, besides taking other supply-side measures.

CPI in pulses stood at 150.4 in April, against 141.1. The RBI also wanted the Food Corporation of India (FCI) to offload some of the excess cereal stock to cool prices down and create room for rabi procurement.

(Note: This is a Article Automatically Generated Through Syndication, Here is The Original Source

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Business

Gerber and Perrigo Face New Lawsuit Over ‘Store-Brand’ Infant Formula Pricing; All Pending Toxic Baby Food Cases Consolidated into New Class Action MDL

Published

2 hours ago

April 27, 2024

Manoj Nair

Infant formula makers Gerber and Perrigo have been hit with a class-action lawsuit, which accuses the companies of artificially creating a shortage and jacking up prices for “store-brand” formula sold at Walmart, Walgreens, and other retailers.

The lawsuit was filed on Monday in federal court in Alexandria, Virginia. It accuses Perrigo of violating antitrust laws by collaborating with Gerber to prevent competitors from entering the market for store-brand formula.

Perrigo, one of the nation’s largest suppliers of store-brand formula, sells its products under retail labels at prices lower than similar branded products. However, the lawsuit alleges that Gerber, by granting Perrigo the first right of refusal to Gerber’s excess formula supply, which could have been sold to other competitors, is engaging in practices that stifle competition.

The lawsuit claims that through this arrangement, Gerber agreed to keep its excess formula out of the store-brand market, thereby gaining a share of Perrigo’s profits. The lawsuit was filed by four residents of California, Illinois, Michigan, and Pennsylvania, who will represent millions of customers who have purchased store-brand baby formula. The lawsuit does not name formula retailers as defendants. It asks the court to intervene and end the anticompetitive deals between Perrigo and Gerber and seeks more than $5 million in monetary damages.

This lawsuit is similar to another case filed in Brooklyn federal court by a potential store-brand competitor, P&L Development. Gerber and Perrigo requested the dismissal of that case, which was denied by the judge in February. The companies involved in the lawsuit claimed they compete fairly with other infant formula manufacturers, including those of store-brand formulas. The lawsuit also cited the squeezing out of P&L Development from the store-brand market, which has led to higher prices.

Gerber is also facing numerous lawsuits accusing its brands of baby food of containing dangerously high levels of toxic heavy metals, such as lead, arsenic, and mercury. These heavy metals are extremely toxic, even for adults, and can have catastrophic consequences on developing children, leading to health complications and neurological damage. Conditions such as ADHD and autism may be linked to consuming these toxic baby foods.

On April 11, 2024, all the lawsuits pertaining to toxic baby foods, which had been filed at different times in various courts, were consolidated into a new class action MDL in the Northern District of California and assigned to Judge Jacqueline Scott Corley. Besides Gerber, other baby food manufacturers like Beech-Nut and Campbell Soup Co. have also been named as defendants.

Also Read: Leading Ethereum Blockchain Entity Files Lawsuit Against SEC, Requests Court Declaration That Token Is Not a Security

Business

Leading Ethereum Blockchain Entity Files Lawsuit Against SEC, Requests Court Declaration That Token Is Not a Security

Published

4 hours ago

April 27, 2024

Manoj Nair

Leading Ethereum Blockchain Entity Files Lawsuit Against SEC, Requests Court Declaration That Token Is Not a Security

The legal wrangling between the crypto sector and the SEC, or the Securities and Exchange Commission, is getting uglier, with ConsenSys, a major protagonist of the Ethereum Blockchain, filing a lawsuit against the regulatory body in a Texas federal court. This legal action seeks an intervention to ward off a looming SEC lawsuit against the company regarding features of its popular MetaMask wallet. The lawsuit also seeks the court’s help in deciding once and for all the vexed question of whether Ethereum’s digital token, Ether, is not a security. The legal uncertainty hangs heavily on the crypto sector and puts a question mark on its very existence.

In an exhaustive 34-page legal filing, ConsenSys states that the SEC’s endeavor to exert control over Ethereum is both illegal and a threat to blockchain technology.

The complaint states,

“The SEC’s unlawful seizure of authority over ETH would spell disaster for the Ethereum network, and for ConsenSys. Every holder of ETH, including ConsenSys, would fear violating the securities laws if he or she were to transfer ETH on the network. This would bring the use of the Ethereum blockchain in the United States to a halt, crippling one of the internet’s greatest innovations.”

The lawsuit also alleges that SEC Chairman Gary Gensler has embarked on an aggressive enforcement policy directed at the big players in the crypto sector like Coinbase and Uniswap. The lawsuit particularly points out a campaign that involved a deluge of subpoenas asking firms and developers for documents related to their dealings with the nonprofit Ethereum Foundation, which supports the blockchain’s development.

The crypto sector is up in arms against Gensler’s tactics and has contended that the SEC has never provided clear rules meant for the distinct features of blockchain technology. However, Gensler negates this argument, saying that the existing securities laws are clear and sufficient, and that the crypto industry refuses to comply with them.

Gensler’s actions are full of contradictions since, in the past, the SEC had maintained that blockchain’s tokens, like Bitcoin, are not securities and hence beyond its purview. A senior official in 2018 had stated that Ethereum has reached a state where it is adequately decentralized, and further, the agency also gave the green signal for the launch of Ethereum futures trading—an implicit acknowledgement that Ether is a commodity. However, at present, Gensler is using a recent feature of Ethereum, known as staking, as grounds for the recent legal campaign.

The lawsuit was filed after the SEC issued a Wells Notice, which is akin to a formal letter warning that the agency intends to sue a firm and could lead to a settlement later. The SEC charged ConsenSys that MetaMask was operating as an unlicensed broker-dealer. MetaMask offered users a means to stake Ethereum on their behalf. Staking was a feature introduced in September 2022 on the Blockchain as a replacement for the energy-intensive mining process. The process involves a system of validators who pledge collateral to become trusted validators.

The SEC objects to the process of staking, which has changed Ethereum from a commodity into a security. ConsenSys founder Joe Lubin has called this account of the SEC “preposterous”.

Lubin said,

“The act of staking is really just posting a security bond so you can get paid to contribute labor and resources to help operate the Ethereum protocol. Now they’re trying to turn that into some sort of investment contract.”

Lubin also stated that the SEC’s actions will lead to a halt in the growth of the crypto sector and blockchain technology as a whole. Lubin feels that the SEC seeks to block pending applications by companies to launch spot ETFs for Ethereum, following the huge popularity of Bitcoin ETFs. The SEC is in fact trying to regulate a technology on its merits and it will only stifle innovation.

Also Read: New Class-Action Lawsuit Accuses Rivian of Making Materially False and Misleading Statements

Net Worth

Caterina Fake Net Worth 2024: How Much is the American entrepreneur and businesswoman Worth?

Published

2 days ago

April 26, 2024

Vishnu Chaudhary

Caterina Fake Net Worth 2024: How Much is the American entrepreneur and businesswoman Worth?

Who is Caterina Fake?

Caterina Fake is a renowned American entrepreneur and co-founder of several groundbreaking ventures, including Flickr and Hunch. Born on June 13, 1969, in Pittsburgh, Pennsylvania, Fake has been a driving force in reshaping the digital landscape through her innovative ideas and entrepreneurial acumen.

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Caterina Fake Career

From her early days in Pittsburgh to her rise in Silicon Valley, Caterina Fake’s career has been marked by a relentless pursuit of excellence. Co-founding platforms like Flickr and Hunch, she has revolutionized how we connect and share information online. Her visionary leadership and creative brilliance have cemented her status as a trailblazer in the tech industry.

Caterina Fake Net Worth

As of 2024, according to TheRichest, Caterina Fake’s net worth stands at an impressive $25 million. Her entrepreneurial ventures, including Flickr and Hunch, have contributed significantly to her financial success. With a keen eye for emerging trends and a knack for innovation, Fake continues to inspire aspiring entrepreneurs around the world.

Caterina Fake Age

Currently 54 years old, Caterina Fake was born on June 13, 1969. Despite her age, she remains a dynamic force in the business world, constantly pushing the boundaries of what’s possible in technology and entrepreneurship.

Caterina Fake Family: Husband and Children

Caterina Fake was previously married to Stewart Butterfield, with whom she co-founded Flickr. They tied the knot in 2001 but announced their split in 2007. They share one child, Mint Butterfield, who has recently been reported missing. Caterina Fake is currently in a relationship with Jaiku co-founder Jyri Engeström.

Caterina Fake Height and Weight

While specific details about Caterina Fake’s height and weight are not readily available, her stature in the tech industry is undeniable. Standing tall as a visionary leader and innovator, Fake’s impact transcends physical measurements, leaving an enduring legacy in the digital sphere.

Also Read: Ethan Payne Net Worth 2024: How Much is the English YouTuber, Streamer, and Internet Personality Worth?