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India’s benchmark indices, Nifty 50 and Sensex remained under pressure on Wednesday.

The Sensex and Nifty opened largely flat but quickly dipped as investors looked cautious ahead of the US Federal Reserve’s highly anticipated policy decision, which could provide clues on the future path of interest rate cuts.

Stocks in focus

Financials, auto, and energy stocks were hit the hardest, while pharma and IT stocks outperformed, securing gains.

Sectorally, the PSU Bank index was among the biggest decliners, dropping nearly 1%, with Bank of Baroda and SBI contributing to the fall, losing 1.5% and 0.5%, respectively.

The Nifty Bank and Nifty Private Bank indices also fell by 0.7%.

The Nifty Auto index declined by 0.6%, driven lower by Tata Motors and Maruti Suzuki.

Meanwhile, the pharma index bucked the overall market trend, rising over 1%, supported by strong performances from Sun Pharma, Dr. Reddy’s, and Cipla.

IT heavyweights Wipro, Tech Mahindra, and HCL Tech lead the gains in tech stocks.

Why Nifty and Sensex are falling today

The Indian market has faced pressure in recent sessions, primarily due to continued foreign institutional investor (FII) selling and growing uncertainty surrounding the outcome of the Federal Open Market Committee (FOMC) meeting.

Over the past two days, FIIs have sold off Indian stocks worth ₹6,689 crore (around £0.625 billion).

The market also felt the strain of a weakening rupee, which has been adversely impacted by a rising trade deficit, which reached $37.84 billion in November.

On the IPO front, two major listings—Vishal Mega Mart and MobiKwik—debuted on Dalal Street.

Vishal Mega Mart had a strong performance, surging 33.33% above its issue price.

In contrast, MobiKwik listed at ₹440, delivering an impressive 58% premium over its issue price.

Asian peers remain mixed

Japan’s Nikkei 225 fell by 0.4%, while the broader Topix index remained unchanged.

Investors reacted to export data showing a 3.8% year-on-year increase in November, surpassing expectations of a 2.8% rise.

However, imports declined by 3.8%, missing the anticipated 1% growth.

Australian equities gave up early gains and traded lower, with the S&P/ASX 200 closing flat.

In South Korea, the Kospi rebounded, rising nearly 1%, ending a two-day losing streak.

Hong Kong’s Hang Seng index gained 0.7% at the open, driven by new guidelines aimed at enhancing state-owned enterprises’ value and halving service fees for dividend payouts.

China’s CSI 300 also rose 0.7%.

The People’s Bank of China is set to announce its loan prime rates (LPR) on Friday, with the one-year LPR influencing corporate and household loans, and the five-year LPR acting as the benchmark for mortgage rates.

US markets feel jitters on Tuesday

In the US, major stock indices closed lower on Tuesday as investors awaited the Federal Reserve’s monetary policy announcement.

The Dow Jones Industrial Average fell by 267.58 points, or 0.61%, closing at 43,449.90.

This marked its ninth consecutive loss, the longest losing streak since 1978, which began after the index surpassed the 45,000 milestone on December 4.

The S&P 500 declined by 23.47 points, or 0.39%, to close at 6,050.61, while the Nasdaq Composite slipped by 64.83 points, or 0.32%, ending at 20,109.06.

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Stocks

Applied Materials stock has dived: is it safe to buy the AMAT dip?

Applied Materials stock price has nosedived and moved into a technical bear market after falling by over 33% from the highest point this year. AMAT was trading at $170, its lowest level since February 5, meaning that it has largely erased most of the gains made earlier this year. So, is Applied Materials a good stock to buy today?

Applied Materials stock price analysis

The weekly chart shows that the AMAT share price peaked at $260 earlier this year, and then suffered a harsh reversal, as we predicted. It has moved below the 23.6% Fibonacci Retracement level at $201. Most recently, the stock is approaching the 38.2% retracement point at $168.

It has also moved below the 50-day and 25-day Exponential Moving Averages (EMA), which have made a bearish crossover pattern. Also, it formed a small head and shoulders-like chart pattern, a popular bearish reversal sign.

The MACD of the Applied Materials stock has moved below the zero line, while the Relative Strength Index (RSI) indicator has tilted downwards and moved below 50. The stock is approaching the crucial support at $162.95, its highest point in January 2022 and the upper side of the double-top pattern.

Therefore, there are signs that the AMAT stock wants to form a break and retest chart pattern. That is a situation where an asset goes back and retests a crucial support level and then resumes the uptrend. It is one of the most popular continuation signs.

Therefore, in this case, a strong bullish breakout cannot be ruled out in the near term. However, a drop below the support at $162 will invalidate the bullish view and point to more downside, potentially to the 50% Fibonacci Retracement point at $141.35.

AMAT stock chart | Source: TradingView

Why AMAT shares crashed

For starters, Applied Materials is a large technology company in the semiconductor industry that manufactures products used by some of the top companies. Its semiconductor systems solutions include things like epitaxy, Ion Implant, Rapid Thermal Processing, Chemical Mechanical Planarization, and Atomic Layer Deposition.

The company’s Applied Global Services division provides fab consulting, subfab equipment, automation software, and other technology-enabled services. It is also a big player in the display and adjacent markets industry.

Applied Materials stock continued its downtrend after the company published its recent financial results. Its revenues rose from $6.7 billion in Q4’23 to $7.045 billion in the last quarter. It also expanded its gross margins a bit.

However, Applied Materials’ net income dropped from $2 billion to $1.7 billion as its operating margin fell to 29.3%.

For the year, the company’s revenue rose by 2% to $27.2 billion, helped by its semiconductor division, which made $19.9 billion. Applied Global Services revenue rose by 9% to $6.2 billion.

Therefore, the AMAT stock price has dropped as investors anticipate further slowdown as the artificial intelligence industry starts to peak. Analysts expect that the revenue for this quarter will be $7.17 billion, a 6.90% increase from the same quarter last year. The annual revenue is expected to be $29.42 billion.

The stock has also dropped because the semiconductor industry is highly cyclical. The recent demand has fueled more production, which could see companies have more inventories in 2024. Also, there are signs that AI investments are slowing.

Fortunately, Applied Materials stock has become a bargain as it trades at a forward price-to-earnings ratio of 17.57 and a trailing multiple of 19. These are smaller numbers compared to the S&P 500 index has a multiple of over 20.

The other benefit is that Applied Materials has become a good dividend company. It has boosted its payouts in the last seven years and has a low payout ratio of 17.5%. Therefore, it will become viable to buy the Applied Materials stock dip at some point. Read more: Applied Materials (AMAT) stock: here comes the death cross

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Stocks

Google unveils Whisk, a creative image tool powered by Gemini

The tech industry’s generative AI race just got more competitive as Google launched Whisk, a tool designed to create unique images from user-uploaded photos.

Unveiled through Google Labs, Whisk allows users in the US to remix subjects, styles, and settings into new visuals without requiring text prompts.

It builds on Google DeepMind’s AI advancements, showcasing Gemini and Imagen 3 technologies.

The move highlights Google’s focus on delivering accessible AI tools while competing against OpenAI’s suite of consumer products, including the text-to-video generator Sora.

What is Whisk and how does it work?

Whisk offers a new take on AI-powered creativity.

Users can upload images representing subjects, settings, or styles.

The platform processes these inputs using Gemini, Google’s AI foundation model launched in December 2023, which generates captions for the content.

These captions feed into DeepMind’s Imagen 3, a text-to-image generator.

Unlike traditional photo editors, Whisk focuses on creative exploration rather than pixel-perfect results.

It allows users to remix categories—such as turning an image into a plushie toy, enamel pin, or sticker—by adjusting inputs or incorporating text to guide specific details.

Google emphasises that the outputs capture the “essence” of a subject, meaning some variations, such as changes to hairstyle or skin tone, may occur.

DeepMind’s Nobel Prize-winning expertise underpins Whisk

Whisk leverages cutting-edge developments from DeepMind, the AI division Google acquired in 2014.

DeepMind’s AI research contributed to two employees winning the 2024 Nobel Prize in Chemistry for protein structure discoveries.

This underscores the lab’s reputation for pushing technological boundaries, which now extends to creative applications like Whisk.

Whisk also positions Google as a leader in consumer-friendly AI.

While its initial text-to-image tool Gemini faced criticism for producing historically inaccurate images, Whisk aims to avoid similar pitfalls by focusing on abstract, exploratory outputs rather than exact replicas.

AI innovation spurs rivalry among tech giants

Google’s unveiling of Whisk highlights its broader strategy to dominate AI-driven consumer products.

The competition is fierce, with OpenAI recently introducing Sora, a text-to-video generator.

Google aims to solidify its advantage by integrating Whisk with Gemini’s capabilities and Imagen 3, signalling a shift toward dynamic, multi-modal AI tools.

Dan Ives, an equity analyst at Wedbush Securities, views Whisk as part of Google’s “treasure chest” of 2025 offerings, alongside its collaboration with Samsung and Qualcomm on a new Android operating system.

These initiatives demonstrate Google’s effort to maintain an edge in the highly lucrative and competitive AI landscape.

Generative AI tools like Whisk have captured public imagination but also faced scrutiny.

For instance, Gemini’s earlier issues with historically inaccurate image outputs raised concerns about AI reliability.

Whisk seeks to navigate these challenges by focusing on imaginative, user-directed creations.

As Google continues to refine its offerings, the tool’s initial rollout as a website for US users will provide a critical testbed for future updates and iterations.

Google’s AI ambitions

Whisk’s debut signals a broader evolution in how AI is used for consumer creativity.

By focusing on user-friendly interfaces and integrating advanced technologies like Gemini, Google aims to democratise access to generative AI.

However, the competition remains intense, with rival platforms pushing the boundaries of what AI can achieve.

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Stocks

Here’s why the Hermes share price is soaring and beating rivals

The Hermes share price has done well this year, outperforming other top players in the luxury goods industry. It rose to a high of €2,300, its highest level since May 21st and 21% above the lowest point in September.

Hermes stock has risen by 24% this year, while LVMH, Kering, Richemont, Burberry, and other luxury brand companies have retreated. So, why is Hermes doing better than other companies?

Hermes business is doing well

The luxury goods industry is doing well, helped by the strong demand of its products across key geographical regions.

The most recent results showed that the company’s revenue rose to €11.2 billion in the first nine months of the year, up by 14% from the same period a year ago.

Its third-quarter revenue rose by 11% to €3.7 billion. Its Asian business continued to boom, helped by key countries like South Korea, Singapore, and Thailand. However, the Asian segment was impacted by China, where consumer spending has slowed recently. There have been reports of many luxury malls in Hong Kong and other leading cities having low traffic.

Japan’s sales surged by 23%, partly because of the soaring stock market, which benefited wealthy individuals. The company also saw strong sales in places like Europe andthe Americas.

Most of its growth is being driven by its leather business, whose sales jumped by 17%. The company continued to boost its capacity by opening a new workshop in Riom. Other parts of its business like the ready-to-wear and accessories, perfume and beauty, and silk and textiles continued to do well.

Hermes has done better than its competitors for a few reasons. First, it caters to the ultra-wealthy who are willing to spend tens of thousands of dollars for a handbag. Some of these shoppers even spend over $300,000 for a bag that they spent months or even years waiting for.

Further, the company is considering moving to the popular haute couture, which is the most exclusive service, where products are custom-made. These products tend to have higher margins since the products costs thousands of dollars.

Additionally, Hermes has also mastered the art of selling, narrative, and production. While other companies are chasing production, most of its products are handmade in its workshops in France. The company, which does not have a marketing department, is known for engineering shortages, which makes its products more valuable.

Still, all this has led to a big premium for the company, which now has a market cap of over $250 billion. Its total sales stood at over $14 billion in the last financial year, while its net income was over $4.4 billion.

In contrast, LVMH made over $95 billion in 2023 and a net income of over $17 billion. LVMH has a market cap of over $331 billion, which is about $81 billion bigger than Hermes. It has a price-to-earnings ratio of 22, much smaller than Hermes’ 54.

Hermes share price analysis

Hermes stock chart | Source: TradingView

The daily chart shows that the Hermes stock price has been in a strong uptrend in the past few weeks. It has moved above the crucial resistance level at €2,277, its highest swing on September 27.

The stock has moved above the 50-day and 100-day Exponential Moving Averages (EMA). Also, the MACD indicator has moved above the zero line. The Relative Strength Index (RSI) has continued rising and is nearing the overbought point at 70. It has also formed an inverse head and shoulders pattern.

Therefore, the stock will continue rising as bulls target the next key resistance point at €2,415, its highest point in March this year. A move above that level will point to more gains, with the next point to watch being at €2,500.

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World News

Nikkei, Hang Seng struggle as Asia-Pacific markets trade mixed ahead of Fed decision

Asia-Pacific markets displayed a mixed performance on Tuesday as investors took cues from Wall Street’s overnight results and awaited the US Federal Reserve’s decision scheduled for December 18.

Regional market performance

Australia’s S&P/ASX 200 led regional gains, rising 0.73% as strength in resource and financial stocks drove the index higher.

Japan’s Nikkei 225 and Topix edged up 0.12% and 0.11%, respectively, reflecting cautious optimism.

In contrast, South Korea’s Kospi fell by 1%, and the tech-heavy Kosdaq slipped 0.92%, dragged down by profit-taking in semiconductor and biotech stocks.

Hong Kong’s Hang Seng Index declined 0.4%, with losses concentrated in technology and real estate.

Meanwhile, mainland China’s CSI 300 managed a modest 0.34% gain, buoyed by strength in consumer staples and industrials.

Wall Street sets the tone

In the US, the Nasdaq Composite hit a new record, climbing 1.24% to close at 20,173.89, powered by a rally in tech stocks.

The S&P 500 also edged up 0.38%, ending the session at 6,074.08. However, the Dow Jones Industrial Average fell for the eighth consecutive session, losing 0.25% to close at 43,717.48.

Nvidia, a key player in artificial intelligence chips, saw its shares decline by 1.7%, marking a 10% fall from its November peak and entering correction territory.

Investors remain cautious ahead of the Fed’s decision, with the CME FedWatch tool indicating a 98.2% probability of a 25-basis-point interest rate cut.

Key corporate updates

Alibaba’s $1.3 billion loss from Intime sale

Alibaba announced the sale of its department store business, Intime, for 7.4 billion yuan ($1 billion) to a consortium led by Youngor Group and Intime’s management team.

The transaction will result in a one-time loss of approximately 9.3 billion yuan ($1.3 billion).

Alibaba acquired Intime in 2017 for $2.6 billion, marking a significant markdown in its investment.

SoftBank’s US investment plans boost shares

SoftBank Group shares rose 3.15% after CEO Masayoshi Son disclosed plans to invest $100 billion in the US, focusing on artificial intelligence and infrastructure projects.

This initiative, announced during Son’s visit to President-elect Donald Trump, aims to create 100,000 jobs and deploy the funds before the end of Trump’s term.

Singapore exports rebound

Singapore’s non-oil domestic exports surprised on the upside, growing 3.4% year-on-year in November, reversing a 4.7% decline in October.

The figure exceeded analysts’ expectations of a 0.7% drop. Electronics exports led the charge, while non-electronics declined.

On a month-on-month basis, exports surged 14.7%, far outpacing the anticipated 8% rise.

Investors across the Asia-Pacific region remain focused on the Fed’s upcoming interest rate decision and key corporate announcements.

Mixed market performances underscore lingering uncertainties, while stronger-than-expected data from Singapore and corporate activity in China and Japan provide pockets of optimism.

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World News

Indian markets update, Dec 17: Nifty 50 slips below 24,500; Sensex tumbles 600 points

India’s benchmark indices Nifty 50 and Sensex started the day in the red on Tuesday.

Nifty 50 sank below the 24,500 mark, going down around 0.77% to trade at 24,487.70 points while the Sensex was down 0.71% to trade at 81,165.23 in early trade.

The fall today comes as investors remain jittery ahead of the US Fed meeting.

The two-day meeting is expected to conclude with Jerome Powell announcing a 25 basis point interest rate cut on Wednesday.

The sentiment also dampened as foreign institutional investors turned net sellers of Indian equities on Monday.

FIIs sold Indian stocks worth around ₹270 crore (around £25.07 million) on Monday. The India VIX, or volatility index, jumped close to 6% to 14.8, indicating increasing market uncertainty.

Meanwhile, the Indian rupee fell to a new record low of 84.93 against the US dollar in early trade on Tuesday.

At the interbank foreign exchange, it opened at 84.89 before slipping further to 84.92, slightly down from its previous close of 84.91.

Indian stocks in focus today

A total of 48 stocks in the 50-stock Nifty index were in the red on Tuesday morning.

Heavyweights like HDFC Bank, TCS, Airtel, and Reliance Industries were all down over 1%.

Shares of India’s biggest private lender HDFC Bank were down after receiving a warning letter from SEBI, alleging non-compliance with disclosure regulations regarding the resignation of a senior employee.

The fall also dragged the Nifty Bank index which traded around 0.89% lower at 53,104.20 points.

Gains were seen in the pharma giant Cipla and Jaguar Land Rover parent Tata Motors.

The Mumbai-based pharma major saw shares rise around 2.4% to hit an intraday high at ₹1,483 as domestic brokerage firm Kotak Institutional Equities upgraded the stock to “buy” from “add,” with a target price of ₹1,725.

Adani Group stocks in the index, Adani Ports, and Adani Enterprises were also in the green in early trade on Tuesday.

Sectors such as Oil and Gas, Telecom, Metals, Financials, and Auto were all struggling at the bourses.

However, sectors such as Agriculture, Real Estate, and Media were in the green.

Asian peers show mixed trends

Japan’s Nikkei 225 was trading flat while South Korea’s Kospi continued its drop due to the ongoing political crisis.

Hong Kong’s Hang Seng index also opened in the red trading 0.39% lower at the time of writing.

Australia’s S&P/ASX 200 rose close to 0.8, while Taiwan’s Taiex gained 0.12%.

The US stock market ended mixed on Monday even as the Nasdaq closed at a record high driven by gains in tech shares.

On the other hand, the Dow Jones Industrial Average slipped 0.25% to 43,717.85, while the S&P 500 rose 23.03 points, or 0.38%, to 6,074.12.

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World News

Chugging toward the finish line

As we head ever closer to year-end, it’s time to take an early squint at how markets have behaved in 2024.

US equities have been on an absolute tear. In fairness, the starting point for the latest, and possibly last, leg of the rally was October 2023.

This was when equity prices steadied, and ultimately bottomed, following a difficult summer.

The issue had been interest rates, and more specifically, when they would start to come down.

As is well known, but still worth repeating, the US Federal Reserve had been very slow off the mark to respond to inflationary pressures that built up during the pandemic in 2020 and 2021.

These were obvious to everyone, apart from the Fed, who remained convinced that the jump in inflation was transitory.

Then, Russia invaded Ukraine early in 2022.

The US central bank rushed to catch up with reality, and hiked rates in March – their first rate increase since 2018.

It then carried on a relentless programme of rate hikes, taking the Fed Funds from an upper limit of 0.25% in March 2022 to 5.50% in July 2023.

Now, the S&P 500 peaked at the beginning of 2022 at around 4,800, while the tech-heavy NASDAQ had topped out a month or so earlier.

Over the next ten months, US equities dropped steadily.

In October 2022 the S&P finally found a floor just below 3,500 for a total decline of 28%.

The tech-heavy NASDAQ lost 38% over a similar, but slightly longer, period.

From there, US equities experienced a modest recovery, despite the fact that the Fed was still tightening monetary policy.

The Fed made what proved to be its final rate hike in July 2023.

This was when the nascent stock market rally came to a shuddering halt.

Traders now believed that the Fed was compounding its original mistake of not taking inflation seriously by overcompensating and raising rates too high.

Equities sold off sharply over the next three months.

Once again, they bottomed in October.

This time, the selling stopped as investors began to second-guess the Federal Reserve in forecasting that interest rates had peaked.

Now traders began to speculate when the Fed would start cutting rates.

US stock indices turned sharply higher, and as we got into 2024, markets were pricing in as many as 150 basis points worth of rate cuts in 2024, with the first being in March.

It seems quite bizarre looking back, yet it wasn’t until September, just two months ago, that the Fed finally cut rates.

And, in what looked like a bout of mild panic, or a desperate attempt to overcompensate for any delay, it was a bumper cut of 50 basis points, rather than the 25 basis points widely expected.

Anyway, it helped markets overcome the sell-off that greeted the unruly unwinding over the summer of the yen carry trade.

It also helped lift equities, as did the 25 basis point cut in November.

From the low last October, to the recent high in early December, the S&P 500 has added 48%.

The NASDAQ has gained 52% over the same period.

Thanks to some CPI numbers in December, which, while indicating that the drop in inflation has stalled, were nevertheless in line with expectations, the probability of another 25 basis point cut before the year-end has shot up to 98%.

Will that, along with the likelihood of a couple of cuts next year as well, help to keep the rally going? We’ll find out soon enough.

(David Morrison is a Senior Market Analyst at Trade Nation. Views are his own.)

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Politics

Lula takes aim at Brazil’s high interest rates: a call for economic change?

President Luiz Inacio Lula da Silva has upped his criticism of the country’s worrying interest rates, expressing his serious concern for the Brazilian economy.

In a recent interview, Lula said that high interest rates are “the only thing wrong” with Brazil’s economic framework.

His remarks were especially pertinent, coming on the heels of the central bank’s contentious decision to raise interest rates by 100 basis points, bringing them to a worrying 12.25%.

This action represents a forceful monetary policy response aimed at fighting growing inflationary pressures and alleviating market concerns about Brazil’s overall fiscal health and stability.

Lula, speaking frankly to TV Globo after successfully completing treatment and being freed from the hospital, said that inflation is effectively under control, with a current rate of roughly 4%.

He firmly identified high borrowing prices as the principal source of economic distress for the average Brazilian citizen, stating unequivocally, “There is no explanation for interest rates being above 12%.”

This bold argument highlights a major and rising gap between the Lula administration’s economic strategies and the central bank’s monetary policy.

Tightening measures by the central bank raise concerns

The central bank’s recent decision to tighten monetary policy is a direct response to the changing dynamics of inflation, which have subsequently deviated from their set aim.

The central bank disclosed that the market’s lacklustre reception of Lula’s ambitious projected fiscal package had a significant impact on worsening inflationary pressures.

Brazil’s inflation rate has risen to 4.87% over the 12 months ending in November, above the bank’s goal range of 1.5% to 4.5%.

During his discussion, Lula opposed the widespread assumption that higher interest rates are an essential tool for controlling inflation.

He slammed proponents of such rate hikes as “irresponsible,” instead pushing for a fresh commitment to total economic prudence said Lula: “If I do not control spending, if I spend more than what I have, the poorest will pay for it.”

This emphasis on fiscal accountability not only demonstrates Lula’s long-standing commitment to cautious management of Brazil’s public finances, but it also demonstrates a strong commitment to the welfare of the country’s most disadvantaged residents.

Market and currency concerns

Despite Lula’s strong comments about the importance of fiscal responsibility, market reactions show a growing tide of fear about Brazil’s future economic trajectory.

The Brazilian real has dropped to historic lows, owing mostly to persistent uncertainty about the government’s proposed spending controls.

While the administration has promised significant fiscal reforms, many opponents believe the original package fell short of appropriately addressing the urgent need to reduce increasing public debt and restore investor confidence.

Lula defended his economic policy, claiming that the measures previously proposed to Congress were the most practical and expedient solution to Brazil’s current economic issues.

“We did what was possible and sent it to Congress,” he announced, emphasizing the crucial necessity for immediate parliamentary approval to stabilize the nation’s financial environment.

A shift in the central bank’s leadership

The central bank’s leadership structure is about to undergo considerable adjustments in light of the current economic situation.

Governor Roberto Campos Neto, who was appointed during the government of former President Jair Bolsonaro, is set to be replaced this month by Gabriel Galipolo, a nominee personally chosen by Lula.

This key transfer in leadership is expected to reset the balance of power inside the central bank’s decision-making committee, moving from a 4-5 minority to a more favourable 7-2 majority aligned with Lula’s economic program.

Observers are waiting to see how Galipolo’s appointment would usher in a more accommodating monetary policy that is squarely aligned with Lula’s aspirations for economic recovery and long-term prosperity.

With two critical rate-setting sessions approaching, it is widely assumed that Lula’s nominated committee members will urge for a thorough rethinking of the dramatic rate hikes achieved by their predecessors.

Looking ahead: economic stability or stagnation?

As Brazil navigates this nuanced and convoluted economic terrain, the central bank’s next actions will be crucial.

Lula’s unwavering commitment to limiting inflation, while also condemning chronically high interest rates, represents a deeper ideological confrontation between the ideals of economic stimulus and conservative monetary policies that dominate the current debate.

The outcome of the government’s proposed fiscal package, combined with the implications of leadership changes within the central bank, will determine whether Lula can strike a harmonious balance between promoting robust economic growth and maintaining fiscal responsibility.

As Brazil prepares for imminent policy upheavals, the goal remains to achieve a united approach that supports both the country’s economic engine and its most vulnerable residents.

If Lula’s administration can successfully manage the challenges of this transition period, it has the potential to bring in a new and transformational era of economic stability and growth in Brazil.

However, the path ahead is fraught with hurdles, demanding astute governance and collaborative policymaking to achieve these lofty objectives.

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Politics

Dominican Republic’s inflation rate edges up to 3.18% in November

The Dominican Republic’s annual inflation rate rose slightly to 3.18% in November 2024, from 3.16% the previous month.

This reflects a recovery from the country’s lowest inflation levels since April, reflecting a complex economic landscape characterized by varying inflationary pressures across sectors.

The minor increase in the inflation rate is mostly due to increased costs in several important categories, most notably food and non-alcoholic beverages, housing and utilities, and transportation.

According to the Central Bank’s most recent data, the inflation rate for food and non-alcoholic beverages increased to 2.47%, from 2.45% in October.

Similarly, the housing and utilities sector saw price increases, rising to 1.64% from 1.52%.

Transport prices rose by 2.17%, up from 2.08% the prior month.

How price changes affect consumer spending

As consumer prices continue to fluctuate, it is critical to analyze how these variations affect household budgets and purchasing habits.

Increases in vital sectors, particularly food and housing, are critical because they account for a significant share of the average household’s expenditure.

Higher pricing in these areas may cause consumers to change their spending habits, focusing on necessities and maybe delaying discretionary purchases.

In contrast, the clothes and footwear sector experienced a slower decline in pricing, falling by 1.27% rather than 1.73% in October.

This slowdown may reflect the stability of price mechanisms in the fashion industry, indicating increased customer confidence or a shift in supply chain dynamics.

Sector-specific insights: recreation and health show a decline

Surprisingly, while some sectors experienced price increases, others saw price growth rates slow down.

The recreation and culture section saw inflation fall from 5.82% in October to 5.72% in November.

Healthcare costs also grew at a slower rate, falling from 5.26% to 5.17%.

These slower rates imply that, while some areas of consumer life become more expensive, others may stabilize or even level out.

The diverse data from various sectors reflect a complex economic environment in which inflationary pressures vary.

Global commodity pricing, local supply chain disruptions, and general consumer demand remain critical factors in defining this picture.

Monthly overview: continued price increases

Consumer prices grew by 0.16% month on month in November, a slight gain after rising by 0.09% in October.

This persistent rising trend reflects ongoing supply chain issues while global economic conditions remain fragile.

The progressive increase in monthly inflation highlights the need to attentively monitor these trends in order to anticipate potential future economic adjustments.

Such data is an important barometer for governments, corporations, and consumers alike.

Understanding these inflationary changes provides insight into both short-term and long-term economic strategies.

Navigating the path ahead

As the Dominican Republic navigates these shifting inflation rates, stakeholders must remain watchful.

Price changes in basic commodities and services spark important issues about monetary policy, wage growth, and consumer protection measures.

Balancing these economic elements will be critical to sustaining growth and keeping inflation reasonable for the average person.

With inflation currently at 3.18%, all eyes will be on economic statistics in the next months to identify trends and potential future shifts.

To address these changing financial dynamics, personal and state economic plans will need to be adjusted.

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Politics

Why are drone stocks soaring today?

Shares of Red Cat Holdings surged over 25% on Monday after news broke of its partnership with Palantir to integrate advanced visual navigation software into its drones.

The announcement ignited retail investor interest, with Red Cat (ticker: RCAT) becoming the sixth most discussed stock on Reddit’s WallStreetBets over the past 24 hours, trailing only names like Nvidia and Tesla.

According to data from Quiver Quantitative, RCAT’s popularity on the forum skyrocketed by 1,625%, making it a standout topic among retail traders.

At 10:29 am, the stock had given up some of the gains, and was trading more than 16%.

Broad rally lifts other drone-related stocks

The sector-wide momentum extended to other drone companies.

Unusual Machines, which has ties to Donald Trump Jr., climbed over 14%, while Kratos Defense and Security Solutions added around 4%.

By 10:30 am, Unusual Machines was trading higher by 9.6% while Kratos Defense and Security Solutions was up by 5.3%.

AeroVironment and Axon Enterprise also notched gains of more than 1%.

The surge comes amid heightened attention on drones after a series of mysterious sightings in New Jersey sparked speculation and increased scrutiny of aerial technology.

Although the FBI has stated that these sightings likely involve misidentified manned aircraft, the events have fuelled public curiosity and driven interest in drone stocks.

Policy shifts could boost US drone makers

Wall Street anticipates that the incoming administration of President-elect Donald Trump could be favourable for the drone industry.

Elon Musk, an outspoken proponent of drone technology, is expected to wield influence in shaping technology and defense policies.

Congress is also playing a role. A provision in the National Defense Authorization Act, recently passed in the House, seeks to ban China-based DJI from selling drones to US entities.

If enacted, this legislation could create opportunities for domestic manufacturers to capture market share.

“On the drone protection side, federal government counter-drone technologies are increasingly being used by local and state law enforcement to protect stadiums, airports, prisons, and other public settings,” said William Blair analyst Louie DiPalma in a note to clients.

“This will likely result in a surge in counter-drone investments by local and state government agencies over the next decade.”

The drone market has been soaring in late 2024, with the global commercial drone industry estimated to be worth $30 billion this year, according to Grand View Research.

The sector is poised for robust expansion, with an anticipated compound annual growth rate (CAGR) of 10.6% from 2025 through 2030.

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