The Indian Reserve Bank logo is outside its headquarters in Mumbai on February 7, 2025.
Indranil Mukherje | AFP | Gety pictures
On Friday, the Indian Reserve Bank reduced the rate of 25 basis points. A day ago, England reduced interest rates by 25 basis points, after the European Central Bank reduced the same amount on January 30.
Many economies seem to settle in a low -rate environment as policy makers are looking to enhance economic growth. This is in a flagrant contradiction with the United States – it is unclear whether the American Federal Reserve will even provide price discounts in 2025, as expected in December, given the uncertainty about the economic impact of US President Donald Trump's policies. Moreover, Trump appears to have retracted the pressure on the Federal Reserve.
Before Trump's inauguration, the US dollar began to strengthen it and reach its highest level in more than two years, as it was measured by the US dollar index. This was already affected by companies like Amazon, which blamed the currency to restrict its expected revenues in the current quarter.
The United States may have an advantage over other economies and stock markets at the present time, but the edge can cut both directions.
What you need to know today
Reducing the first interest in India in nearly five years
the The Indian Reserve Bank has reduced the price of the ribo by 25 basis points To 6.25 %, Governor Sanjay Malhotra said in Mahfouz's speech on Friday. The move, which was expected by economists, was the first time in almost five years, the central bank cut prices. The Australian Reserve Bank expects real economic growth to reach 6.4 % for the current fiscal year, the lowest in the country in four years, and 6.7 % for the fiscal year 2025-26.
England bank fluctuation prices
the The Bank of England reduced the standard interest rate 25 basis points to 4.5 %, its first reduction in the year. All members of the Monetary Policy Committee voted for a decrease in rates, but two out of nine have voted to reduce more than 50 basis points. Central Bank Governor Andrew Billy said he expects more cuts this year. Bank of England also criticized its growth expectations to the economy in the United Kingdom in 2025 to 0.75 % of 1.5 %.
Disappointing instructions
Amazon The shares decreased more than 4 % after giving Disappointment revenue instructions for the current quarterQuoting the difficulties offered by a strong US dollar. It also announced plans for spending $ 100 billion of capital expenditures in 2025Often on the infrastructure of artificial intelligence. The technology giant won profits and revenue expectations for the fourth quarter – and is preparing to overcome it Wal Mart as S&P 500 with the highest quarterly revenue.
SI & P 500
On Thursday, and S & P 500 0.36 % advanced The third consecutive victory daywhile Nasdak 0.51 % increased. the Dow Jon's industrial averageHowever, 0.28 % lost. Japan Nikki 225 About 0.6 % fell after the country Home spending in December He jumped unexpectedly on an annual basis, while India Elegant 50 It was around the flat line after reducing RBI interest rates.
Trump's focus on returns, not prices
The Trump administration focuses on using the fiscal policy of Maintaining a decrease in the cabinet for 10 years Treasury Secretary Scott Bessin said in an interview on Wednesday with Fox News. This represents a transformation from Trump's original Plans To “request a decrease in interest rates immediately.”
(Pro) IBM surpasses Nvidia
no Nafidiano apple Not Amazon -The best performance stock in Dow has been in the past three months IBMWhich rose 27 %. However, the technology company needs to Make more effort in the field of artificial intelligence To continue performance well, according to one investment head.
Finally …
People shop for clothes at the Calvin Klein store at a commercial center in Beijing on February 5, 2025.
Adik Perry AFP | Gety pictures
How Calvin Klein and Tommy Hilviger fell into Trump's trade war with China
China has included the narration of the owner of Calvin Klein and Tommy Hilfiger, which can force the company to stop stores and manufacturing in the country, in early repercussions on Trump's trade war. While the Chinese Ministry of Commerce started the investigation PVH September because of its cotton rejection of the Xinjiang area, which became notorious to Ouigor detention camps, Beijing officially put the company on the “unreliable entities” list on Tuesday.