Govt may earmark Rs 4 trillion for next years food, fertiliser subsidies

India may earmark about Rs 4 trillion ($48 billion) for food and fertiliser subsidies for the next fiscal year, two government sources said, indicating fiscal caution ahead of this year's general election. Food and fertiliser subsidies account for about one-ninth of India's total budget spending of Rs 45 trillion during the current fiscal year that ends on March 31. The Ministry of Consumer Affairs, Food and Public Distribution has estimated next year's food subsidy bill at Rs 2.2 trillion ($26.52 billion), the two sources said. That is 10 per cent higher than a projected outlay of nearly Rs 2 trillion ($24.11 billion) for the current 2023-24 fiscal year. Additionally, next fiscal year's fertiliser subsidy is expected to be Rs 1.75 trillion ($21.10 billion), down from the current 2022-23 fiscal year estimate of nearly Rs 2 trillion, one of the sources said.The sources, which are directly involved in the decision making on the subsidies, did not wish to be named as they were not authorised to speak to the media.Finance Minister Nirmala Sitharaman will unveil the 2024/25 budget on Feb. The Ministry of Finance, the Ministry of Chemicals and Fertilizers and the Ministry of Consumer Affairs, Food and Public Distribution ministries of finance did not reply to requests for comment. Maintaining the combined subsidies at their current level would be unusual for a government facing a national election in just a few months, but Prime Minister Narendra Modi is widely expected to win a rare third term in elections scheduled for April and May. Also, containing food and fertiliser subsidies is crucial for managing India's fiscal deficit, which Modi's government is targeting at 5.9 per cent of gross domestic product this year and planning to lower by at least 50 basis points in the fiscal year 2024/25. The food subsidy bill is likely to go up next year as Modi's administration late last year extended its flagship free food welfare programme for the next five years.  

L&T Technology retains full-year forecast after all units post Q3 growth

Indian tech services provider L&T Technology Services retained its revenue growth forecast for the current financial year on Tuesday as all its five business verticals posted year-on-year growth for the third quarter.This comes as Infosys and HCLTech tightened their revenue guidance for the year last week citing no change in the demand environment for the year, marred by high inflation and clients cutting down on discretionary spending.However, better-than-feared numbers by the top four firms have triggered a rally in IT stocks this week, helping the country's benchmark indices hit fresh lifetime highs. L&T Technology's consolidated net profit rose 3.36 billion rupees ($40.43 million) from 2.97 billion rupees a year earlier, marginally above analysts' estimate of 3.31 billion rupees.Revenue from operations rose 12 per cent to 24.22 billion rupees, on the back of double-digit growth in telecom and medical devices verticals, below analysts' estimate of 24.45 billion rupees.Indian tech services provider L&T Technology Services retained its revenue growth forecast for the current financial year on Tuesday as all its five business verticals posted year-on-year growth for the third quarter.The Mumbai-based firm expects revenue for the current fiscal year ending March 31 to grow 17.5 per cent-18.5 per cent in constant currency."All five segments grew positively for the second quarter in a row giving us 1per cent sequential growth despite the seasonal softness," CEO Amit Chadha said in a statement.Two units - the industrial products segment and Europe region - have scaled a $200 million run-rate on annualised basis, he added. This comes as Infosys and HCLTech tightened their revenue guidance for the year last week citing no change in the demand environment for the year, marred by high inflation and clients cutting down on discretionary spending.However, better-than-feared numbers by the top four firms have triggered a rally in IT stocks this week, helping the country's benchmark indices hit fresh lifetime highs.Revenue from operations rose 12 per cent to 24.22 billion rupees, on the back of double-digit growth in telecom and medical devices verticals, below analysts' estimate of 24.45 billion rupees.The subsidiary of infra giant Larsen and Toubro won six deals that are more than $10 million each in size, it said in a filing. This included one deal each of sizes $40 million and $20 million.    

Bond market expects RBI to change policy stance in February review

Bond market participants are expecting the Reserve Bank of India (RBI) to change its stance in the February policy review to neutral from withdrawal of accommodation, citing the continuous variable rate repo (VRR) auctions. “RBI is trying to adjust liquidity and bring it close to neutral or zero. The way RBI spoke in the last policy, it doesn't look like it wants a hike anytime soon,” said Naveen Singh, vice-president of ICICI Securities primary dealership.“If they don't want to cut now, but they also don't want to hike, then what's the point of keeping withdrawal of accommodation stance? They can very well come to a neutral stance. And, a neutral stance doesn't stop RBI from hiking if it wants to. Consequently, the market has been strategically taking long positions in government bonds, said dealers. “A majority of the people, if not everyone, is taking long positions (buying) because the market is factoring in that the RBI would change its stance in February,” said a dealer at a state-owned bank.Consequently, the market has been strategically taking long positions in government bonds, said dealers. “A majority of the people, if not everyone, is taking long positions (buying) because the market is factoring in that the RBI would change its stance in February,” said a dealer at a state-owned bank.Yield on the benchmark 10-year government bond has fallen by 3 basis points (bps) in January so far. In December, the yield had fallen by 11 bps. “A minority section of the market thinks that a change in stance in February is possible. The general view is that April is when the change in stance happens,” said Vijay Sharma, senior executive vice-president at PNB Gilts.“Even after this Rs 1.75 trillion VRR, the liquidity is still in deficit mode. It is apparent that through the recent consecutive VRR auctions, RBI is ensuring that tightness in liquidity is not stretched. However, it is too early to say that RBI is taking an accommodative stance. So, it is still a wait-and-watch situation.” he added. The central bank has been conducting VRR auctions in order to infuse liquidity into the banking system. In the 13-day VRR auction conducted by the RBI on Friday, bids were received for Rs 3.92 trillion, against a notified amount of Rs 1.75 trillion.In the preceding VRR auctions, the central bank received a strong demand, with banks submitting bids ranging between 2.5 and 3.2 times of the bidding amounts. This is due to tight liquidity conditions in the system. Liquidity remained largely in deficit mode in the third quarter. The central bank had conducted a VRR auction after six months on December 15.Market participants observed that despite the higher-than-expected US consumer price index (CPI), the US Treasury yield softened. This reinforced the anticipation of a rate cut by the Federal Reserve in March.    

HNIs chase mid, small caps, IEX under bear attack, I-Pru Life tumbles, NHPC in focus

“Current earnings, future prospects, management, marketability are all factors more or less independent of assets which contribute their share to the intrinsic value.” - Benjamin Graham. Sentiment has turned cautious after three successive sessions of fall, but two days of gains could change that. In the past, mid and small caps would take a battering during market corrections and investors would flee to the safety of large caps. But now exactly the opposite is taking place — large caps are sliding harder than second-line stocks when the market falls.Whispers in market is that many of the mid and small cap companies say they have good earnings visibility for the next few quarters. And that is giving HNIs the comfort to hold on their positions in the stocks. The stock prices so far indicate that the market is willing to believe the earnings story. They would flag when there's still a couple of quarters of earnings growth left. Bull argument: Spot LNG prices have softened. Strong demand for LNG across sectors of late, and this trend is likely to strengthen going forward.Bear argument:  Competition is rising, also domestic gas production is increasing. The capex on its proposed petrochemicals foray could weigh on margins. Stock has fallen 16 percent in last couple of trading sessionsBear argument: Huge build up of speculative positions in F&O segment. Uncertainty over the market coupling policy for power exchanges an overhang on the stock.Bull argument: Stock has good support in the Rs 120-125 band. Also, concerns about the market coupling have already been priced in. Stock under pressure as government to sell 2.5 percent stakeBull argument: Seen benefitting from India’s commitment to net-zero as hydro power not polluting like thermal power.  Capacity expected to go up sharply in the coming years.Bear argument: Increase in floating stock could be an overhang in the short term. Right now, power is a fancied sector and there is unusually high demand for PSU stocks. This could change. Earnings could be volatile because of dependency on monsoon. GQG Partners upped its stake in ITC to 2.79 percent from 1.58 percent.Bull argument: A good defensive bet if the market continues to correct further. Cigarette volumes increased in Q2 and the trend is likely to sustain.Bear argument: Revenues from agri-business is under stress in FY24 due to a ban on the exports of wheat and rice. Re-rating story is largely over. Further gains will depend on ability to grow earnings.  

IndusInd Bank Q3 results impress analysts. Should you buy or sell?

IndusInd Bank impressed the street with a healthy set of number for the December quarter and analysts remain bullish on the counter, counting steady margins, improving retail deposit mix and strong loan growth as some of the key positives. In the past year, the stock has jumped more than 31 percent, outperforming Bank Nifty index which is up 8 percent. The stock hit a 52-week high of Rs 1,694 on January 15.The bank's net profit grew 17 percent on-year to Rs 2,301 crore, aided by healthy net interest income (NII) growth of 18 percent and lower provisions, the private lender said on January 18. At a time when banking sector is grappling with higher cost of funds, its net interest margin (NIM) saw a modest expansion of two basis points (bps) YoY to 4.29 percent in the December quarter.  Analysts at Jefferies shared a "buy" call for IndusInd, with a target price of Rs 2,070, saying the lender's NII growth was among the best across coverage.  "IndusInd's profit met estimates but they used Rs 200 crore of contingent buffers. We see 20 percent profit compounded annual growth rate (CAGR) in FY24-26, with return of equity (RoE) of 16 percent in FY25," they wrote in their result review.  HSBC, too, shared a "buy" call, with a target price of Rs 2,040 apiece on the back of in-line Q3 operating performance, but remain wary of higher slippages. "We forecast CAGR of 23 percent for operating profit and 21 percent earnings per share (EPS) over FY24-26," they said. The rise in fresh slippages, or bad loans, however, remained a key concern during the quarter, analysts at Morgan Stanley said, trimming EPS by 0.5 percent for FY24 and a percent for FY25.  The brokerage firm, however, shared an "overweight" call with a target price of Rs 1,850 per share.  IndusInd Bank's fresh slippages rose 20.5 percent on a sequential basis to Rs 1,700 crore in the December quarter due to a elevated slippages in corporate and vehicle finance books. However, the management guided that they will normalise to Rs 1,200 crore going ahead.  Gross non-performing asset (GNPA) and net NPA ratios were stable at 1.9 percent and 0.5 percent, respectively, due to asset reconstruction company (ARC) sale of Rs 3,100 crore. On the business front, analysts at Macquarie said 24 percent on-year growth in retail book was encouraging during the quarter.  "The retail book growth was driven by vehicle book growth. As per liquidity coverage ratio classification mix, retail deposit improved to 45 percent YoY," the brokerage firm said, sharing an "outperform call" with a target price of Rs 1,900 a share.  The lender's loan growth was up by 20 percent YoY, while deposits grew by 13 percent YoY. The management expects loan growth to be in the range of 18-23 percent, with the retail loan mix at 55-60 percent.  "We estimate 21 percent earnings CAGR over FY24-26, leading to RoE of 16.2 percent in FY25," analysts at Motilal Oswal Financial Services said, reiterating a "buy" rating for IndusInd Bank with a target price of Rs 1,900.  Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.  

Interim Budget 2024 Expectations: Govt to target fiscal deficit at 5.3% of GDP for FY2025, says ICRA

ICRA expects the fiscal deficit target for FY2025 to be set at 5.3 per cent of GDP, midway through the expected print of 6.0 per cent for FY2024 and the medium-term target of sub-4.5 per cent by FY2026.With the the Union Finance Minister Nirmala Sitharaman all set to present the interim Budget for the fiscal year 2024-25 on February 1, 2024, an analysis by ICRA suggested that the government is likely to target fiscal deficit at 5.3 per cent of GDP for FY2025, entailing a reasonable degree of fiscal consolidation amid slower capex growth. The upcoming Budget will be an interim one and is said to have no major announcements as it is coinciding with the general elections year which is scheduled for this year. The full budget for the fiscal year 2024-25 will be presented after the formation of the new government following the general elections. The Budget is allotted for the upcoming fiscal year, which runs from 1st April to 31st March of the next year.However, the expansion in the Government of India’s (GoI’s) capex and the extent of fiscal consolidation would be scrutinised closely, given the implications for growth and G-sec yields, respectively. ICRA expects the fiscal deficit target for FY2025 to be set at 5.3 per cent of GDP, midway through the expected print of 6.0 per cent for FY2024 and the medium-term target of sub-4.5 per cent by FY2026. “This, along with our projection of an appreciable dip in the revenue deficit, would allow for a capex target of Rs 10.2 trillion for FY2025, 10 per cent higher than the expected level for FY2024 vis-à-vis the 20 per cent-plus YoY expansion seen during FY2021-FY2024. A higher capex target would impinge on the GoI’s ability to bridge half the required fiscal consolidation in FY2025, thereby making the task of reaching medium-term fiscal deficit target by FY2026 even more challenging,” ICRA said in a report. Given the favourable macroeconomic backdrop and expectations of the benign domestic environment sustaining in the next fiscal, per the analysis by ICRA, the GoI is expected to continue on the fiscal consolidation path in the Union Budget for FY2025. However, it added that this is likely to entail a slower expansion in capex vis-à-vis that seen in the post-Covid years, which could weigh on the growth in economic activity. Additionally, with the upcoming Budget set to be an interim one for the purpose of a vote-on-account, major policy changes and announcements are unlikely at this juncture, it said.“We expect the GoI’s gross tax revenues (GTR) to grow by a healthy 11 per cent in FY2025, led by direct taxes and GST collections, even as the growth in excise and customs duty collections is likely to be subdued,” it said. The disinvestment target is likely to be pegged at sub-Rs 500 billion for FY2025. Given the uncertainties involved in market transactions, it would be prudent to set a moderate target of sub-Rs 500 billion for FY2025, instead of a higher aim that may disrupt the budget math if there is a large shortfall in such receipts by the end of the fiscal, based on the past year trends. Furthermore, ICRA expects the revenue expenditure to increase by a modest ~4 per cent in FY2025, led by a moderate growth in interest payments amid a slight moderation in allocation for subsidies and a continued focus on curtailment of other expenses. It added, “We estimate the GoI to budget for a capex of Rs 10.2 trillion in FY2025, implying a relatively sedate YoY expansion of ~10 per cent, compared to over 20 per cent expansion seen in each of post-Covid years. The slowdown in capex growth is likely to have some bearing on economic activity and GDP growth.” As already mentioned above, ICRA expects the GoI to target a fiscal deficit of 5.3 per cent of GDP in FY2025, midway through the expected print of 6.0 per cent in FY2024 and the medium-term target of 4.5 per cent for FY2026.  

Dense fog impacts flight operations at Delhi airport

The IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today. Several flights were delayed at Delhi International Airport due to dense fog and low visibility. A few flights were also cancelled due to severe fog conditions in several parts of the country, Flight Information Display Board (FIDB) at Indira Gandhi International (IGI) Airport showed.  The IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today, India Meteorological Department (IMD) mentioned in a tweet while adding that Runway Visual Range (RVR) is between 600-1200 metres. According to the weather forecast agency, very dense fog is when visibility is between 0 and 50 metres, between 51 and 200 metres is dense, between 201 and 500 metres moderate, and between 501 and 1,000 metres shallow. Several flights were also delayed and a few were cancelled due to the prevailing fog. Arrived from Bahrain and my (connecting) flight is delayed by one hour,” a passenger at Delhi’s IGI airport said. People in Delhi woke up to a foggy Thursday morning with the minimum temperature settling at 6.6 degrees Celsius, one notch below the season’s average, the weather department said. The Financial Express logoThe Financial ExpressSign inInterim Budget 2024 Expectations: Govt to target fiscal deficit at 5.3% of GDP for FY2025, says ICRARam Mandir inauguration date draws closer: Find out the top stocks with Ayodhya connection to bet onThe regional Lala Land! From cinemas to TV, OTT, regional content catches the imagination of viewersWhere to invest for your child’s higher educationBusiness NewsBusinessAirlines AviationFlight Operations Hit! Dense Fog Delays Several Flights At Delhi Airport – Details InsideFlight operations hit! Dense fog delays several flights at Delhi Airport – Details insideThe IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today. The IGI airport experienced dense fog with visibility ranging between 50 and 100 metres from 12.30 am to 6.30 am, which improved and currently the visibility is 300 metres at 8 am today, India Meteorological Department (IMD) mentioned in a tweet while adding that Runway Visual Range (RVR) is between 600-1200 metres.Planned model of Rajmata Vijayaraje Scindia Airport in Gwalior (Image/@MoCA_GoI)Gwalior soars higher! Jyotiraditya Scindia boosts regional connectivity with new flights to 3 cities including Ayodhyapenalties for IndiGo and MIAL; Air India, SpiceJet finedMumbai Airport tarmac incident leads to rare high penalties for IndiGo and MIAL; Air India, SpiceJet fined Rs 30 lakh each – Here’s what happenedHindustan 228 aircraft HALHAL to unveil Hindustan-228 aircraft, upgraded Dhruv helicopter at Wings India 2024Air India Express Gwalior to Bengaluru direct flightAir India Express expands footprint: Daily direct flight from Gwalior to Bengaluru takes offAccording to the weather forecast agency, very dense fog is when visibility is between 0 and 50 metres, between 51 and 200 metres is dense, between 201 and 500 metres moderate, and between 501 and 1,000 metres shallow. Several flights were also delayed and a few were cancelled due to the prevailing fog.“I arrived from Bahrain and my (connecting) flight is delayed by one hour,” a passenger at Delhi’s IGI airport said.Dense fog prevails in parts of the country People in Delhi woke up to a foggy Thursday morning with the minimum temperature settling at 6.6 degrees Celsius, one notch below the season’s average, the weather department said.The Indian Meteorological Department has issued a yellow alert for moderate to dense fog at isolated places in the city for the next two days.According to an official release by the IMD, ‘very dense fog’ was observed in isolated parts of Punjab, Haryana, West Rajasthan and Bihar at 5.30 am on Thursday.Similar heavy fog was also reported in isolated parts of Delhi, West Uttar Pradesh, Jharkhand, Odisha and Assam while moderate fog was observed in isolated parts of Sub-Himalayan West Bengal and Sikkim, as per IMD.  

Ram temple tourism: Hospitality, travel industries create up to 20,000 jobs in Ayodhya

A surge in tourist inflows has already increased demand for accommodation and travel, “leading to a significant upswing in Ayodhya’s hospitality sector, with a particular focus on the establishment of adequate infrastructure to host travellers”, he said. “At least 10,000 jobs and up to about 20,000 positions were created in various roles related to hospitality, travel and tourism – including hotel staff, cooks, servers, drivers, etc. in the last six months,” said Balasubramanian A, vice president and head - consumer & ecommerce at TeamLease. According to several officials in the hospitality sector, thousands of jobs in areas such as hospitality managers, restaurant and hotel staff, logistics managers, drivers, etc are likely to open up towards the end of this year or the first half of 2025 – not just in Ayodhya but in neighbouring cities like Lucknow, Kanpur, Gorakhpur, etc - with hotel companies and restaurant owners keeping a close eye on how the demand-supply situation pans out.“In the next three-four months, we should get a clearer picture of the everyday traffic at the temple and the demand for manpower to cater to the devotees,” an industry executive said on condition of anonymity. According to estimates, Tirupati Balaji Temple, which is among the world’s richest temples and remains crowded all year round, attracts an average 50,000 daily devotees in a steady state and the number goes up to 100,000 on festival days or holidays.According to various estimates, the Ram Temple in Ayodhya is likely to see traffic of between 300,000 to 700,000 people in the first week post inauguration.However, most of these jobs are temporary in nature and the count may go up or down, depending on how the demand pans out and the number of devotees that visit the temple, industry experts said. Typically, a hotel from construction stage to getting operational takes about 3-4 years, said Nandivardhan Jain, chief executive of Noesis Capital Advisors. Typically, a hotel from construction stage to getting operational takes about 3-4 years, said Nandivardhan Jain, chief executive of Noesis Capital Advisors. However, in the case of Ayodhya, various permissions could be fast-tracked and, so, the demand for manpower is expected to pour in within the next 18 to 24 months, he added.Hotel companies are watching how the demand-supply situation pans out. Currently Ayodhya is short in supply with only two big, branded hotels – Park Inn by Radisson and Cygnet.  

Budget 2024: A pressing issue that may not wait till full budget

The fiscal deficit target of 5.3% will be set by the government in FY25, keeping in view the fiscal consolidation path till FY26, as it normalises capital spending and refrains from any major announcements in the interim budget before the general elections, Icra and Barclays economists have said. ICRA expects the fiscal deficit target for FY25 to be set at 5.3% of GDP, midway through the expected print of 6.0% for FY2024 and the medium-term target of sub-4.5% by FY26. India's Fast Moving Consumer Goods (FMCG) sector, which has 34% of its market in rural areas, is a good indicator of rural economic health. It is facing challenges in rural areas due to sluggish demand. The deficiency in rainfall in key agricultural states has disrupted the revival of rural demand seen in the first two quarters of the financial year. President of All India Consumer Products Distributors Federation, Dhairyashil Patil, has told TOI that FMCG sales in rural areas are 20-30% lower than usual. Demand for daily household products and groceries continued to be challenging in villages during October-December quarter, potentially hurting volume growth of the overall consumer goods sector. Godrej Consumer Products said demand trends in the fast-moving consumer sector during the third quarter were like the earlier quarter, while Marico said urban markets stayed steady but rural markets offered little cheer."High rural unemployment, along with demand for NREGS, reflects rural stress. El Nino derailed the initial green shoots seen at the start of FY24. Increased aggression of smaller players and alternative avenues of spending such as higher spends on education, medical, telecom charges, are leading to softer growth in the FMCG sector," Abneesh Roy, executive director at Nuvama Institutional Equities, has said. Consumer goods companies and analysts say demand for daily groceries and personal and home products in villages continued to trail urban growth in the December quarter but expect a steady recovery across markets on improving macro indicators, positive consumer sentiment and, importantly, increase in government spending in the election year.Another marker of rural distress is stiff demand for work under the Mahatma Gandhi National Rural Employment Guarantee Scheme. The budgetary outlay of Rs 60,000 crore for the shceme for fiscal 2024 was exhausted by November itself. The government subsequently provided Rs 10,000 crore in urgent assistance to meet demand.The FMCG companies have high hopes from election-year spending that will spur rural consumption. "During an election year, governments often extends benefits which are provided as part of various schemes, offer sops, helping rural households," said Akshay D'souza, chief of growth and insights at retail intelligence platform Bizom.    

Cyprus faces backlash over use of British bases to bomb Houthis

The Cyprus government is facing growing criticism over British military bases on the island being used by UK and US forces to stage airstrikes on Iran-backed Houthi rebels in Yemen.President Nicos Christodoulides has been accused by activists of turning a blind eye to the risks the EU’s most easterly state might confront if the strategic facilities on the island continue to be deployed in military operations.The Guardian has learned that both the US ambassador and British high commissioner briefed the Cypriot president of imminent military action in Yemen before the first round of airstrikes last week.“There are ever more war planes taking off every day,” Tassos Costeas, a prominent Greek Cypriot peace activist, told the Guardian. “The dangers of Cyprus becoming a target are evident. The two installations, retained by the British after the country won independence in 1960 to end decades of colonial rule, operate as sovereign overseas territories beyond the reach of the republic. Both extend across 3% of Cyprus’s land mass, or 98 sq miles.Although never confirmed, EU diplomats in Nicosia, the island’s war-split capital, say US forces are present on the military installation. “If you look over the fence at Akrotiri you’ll see US military surveillance and other aircraft,” one said.On Tuesday, the Cyprus government’s spokesperson, Konstantinos Letymbiotis, emphasised the eastern Mediterranean island was not involved in any military operations, intimating that under the bases’ treaty of establishment, the UK was not obliged to inform Cypriot authorities about activity in the facilities. “The government is in constant communication with the UK within the framework established in relation to the bases’ use,” he said.Protests mounted last week after RAF Akrotiri was used as a launch pad for Typhoon fighter jets conducting targeted airstrikes on Houthi strongholds in Yemen in retaliation for attacks on commercial shipping in the Red Sea. The pro-Palestinian militia has justified its assaults – with one of its missiles recently hitting a Greek-owned cargo ship – by saying it was acting in response to Israel’s ongoing offensive. In an apparent attempt to calm nerves in Cyprus, the British defence minister, Grant Shapps, was on the island on Friday meeting the president. “We want to do everything possible to ensure the security of Cyprus, which is in everyone’s best interests. We appreciate that you are in a difficult neighbourhood and want to do everything possible to make it easier,” he said. The Houthis, he claimed, “do not pose an immediate threat to Cyprus”.The US and UK strikes have exacerbated concerns of the Israel-Gaza war becoming a wider regional conflagration. Washington and London have vowed to continue the airstrikes if necessary. Cypriot activists say they are deeply concerned the British bases may also be used by the US and UK to send military aid to Israel, a claim neither country has confirmed.At Sunday’s protest, demonstrators chanted “out with the bases of death” outside the entrance of RAF Akrotiri, close to the coastal city of Limassol in the island’s south.Within weeks of the Hamas attack, Israel’s Haaretz newspaper reported that “more than 40 US transport aircraft, 20 British transport aircraft and seven heavy transport helicopters [had] arrived at the British Akrotiri base on the island. They carried equipment, arms and forces.”    

South Korea crowd crush: Seoul police chief charged over Halloween disaster in which 158 died

Seoul’s chief of police has been charged with professional negligence over the deadly Halloween crush in 2022 that killed nearly 160 people, prosecutors in the South Korean capital have said.Kim Kwang-ho, head of the Seoul Metropolitan Police Agency (SMPA), was charged with professional negligence resulting in injury or death, Seoul’s western district prosecutors’ office said in a statement released on Friday.As the chief of the SMPA, it is alleged he “did not take necessary measures, such as deploying sufficient police forces and ensuring proper command and supervision” on the day of the crush, the statement claimed, although he was able to “foresee potential dangers arising” from overcrowding in the nightlife area.Kim, the highest-ranking police official to face trial over the tragedy, was charged without detention.On 29 October 2022, tens of thousands of people – mostly in their 20s and 30s – had been out to enjoy post-pandemic holiday celebrations in Seoul’s Itaewon nightlife district. But the night turned deadly when people poured into a narrow, sloping alleyway between bars and clubs, leading to a crowd crush.In January last year, Kim and 22 other officials from the police, rescue and district offices were referred to prosecutors by a special police investigation team for their alleged involvement in the government’s mishandling of the crush. Prosecutors subsequently charged the heads of the police station in Seoul’s Yongsan district, which includes Itaewon, and the Yongsan Ward office, but had been undecided about charging Kim for more than a year.Friday’s statement alleged Kim, “along with the chief of the Yongsan police station and the head of the Yongsan Ward office who are currently on trial, collectively caused the deaths of 158 individuals and injuries to 312 individuals as a result of professional negligence”.Families of the victims said they regretted the prosecution’s lengthy decision-making process before charging Kim.“Chief Kim must immediately step down from his position and face trial,” the families said in a statement. “President Yoon Suk-yeol must dismiss Kim immediately.”Here in the UK, the prime minister, Rishi Sunak, had promised us a government of stability and competence – not forgetting professionalism, integrity and accountability – after the rollercoaster ride of Boris Johnson and Liz Truss. Remember Liz? These days she seems like a long forgotten comedy act. Instead, Sunak took us even further through the looking-glass into the Conservative psychodrama. Elsewhere, the picture has been no better. In the US, Donald Trump is now many people’s favourite to become president again. In Ukraine, the war has dragged on with no end in sight. The danger of the rest of the world getting battle fatigue and losing interest all too apparent. Then there is the war in the Middle East and not forgetting the climate crisis …But a new year brings new hope. There are elections in many countries, including the UK and the US. We have to believe in change. That something better is possible. The Guardian will continue to cover events from all over the world and our reporting now feels especially important. But running a news gathering organisation doesn’t come cheap.  

What the fintech industry hopes for the 2024 budget

A new BankBazaar.com article outlines the budget wish-list of the fintech sector, which includes getting all banks on board with the account aggregator structure, creating parity between digital and non-digital lenders, and treating unlisted equity at par with listed equity for long-term capital gains taxation.Expectations are high regarding certain favors being given to taxpayers and specific industries, even though India's finance minister Nirmala Sitharaman has stated that the upcoming Budget, which is scheduled to be presented on February 1, is only a vote-on-account (approving the continuation of existing programmes) and not a full-fledged Budget.BankBazaar.com has published a list of requests the fintech industry has made of the government in a report. While some of these requests may not be covered by the budget, they can be seen as a comprehensive list of what the fintech industry hopes to see in 2024.Account aggregator (AA) framework with fast tracking – The government introduced the AA framework in September 2021, which makes it possible for financial institutions like banks and insurance companies to securely share a person's data with that person when that person gives consent. The idea is that a person can electronically share their financial information with another financial institution rather than having to send paperwork to each one individually. The person must register with an AA, an organization under RBI regulation.The BankBazaar.com paper discusses getting as many bank accounts as possible integrated into this framework and bringing all banks—public and private—on board the AA system. According to the most recent data, a few banks are still not included in the AA framework, including City Union Bank, Dhanlaxmi Bank, RBL Bank, South Indian Bank, and others.It also discusses incorporating the Goods and Services Tax Identification Number, or GSTIN—a designation that in India identifies businesses that are registered for GST—into the AA framework. Once that occurs, it will open the door for small enterprises and retail consumers to obtain loans from many lenders in a purely digital manner.More documents have been added to DigiLocker. Additional documents including the EPFO passbook, ePAN, and form 26 AS (statement showing tax credit) should be added to DigiLocker, according to a BankBazaar.com article. Customers will benefit from easy access to their papers and the ability to share them with financial institutions for prompt credit disbursement.The Ministry of Electronics & IT introduced DigiLocker, a safe cloud-based platform for document exchange, archiving, and authentication. Using a smartphone or Aadhaar number, one can register for DigiLocker and then submit documents.Creating an even playing field for online and offline lenders The RBI released its rules for digital lending in September 2022, in response to the unscrupulous activities of illicit digital lending apps. The guidelines place the burden of proof on banks and NBFCs to make sure that, among other things, grievance redressal officers are engaged, loan-related costs are disclosed upfront, and digital lending apps and platforms do not misuse customer data. They also state that loan servicing occurs directly with the lender's (regulated entity) account and not the digital lending app or platform.According to the BankBazaar.com research, online and offline lending should be treated equally. This consumer-centric legislation that was put in place for the online lending sector must also be applied to the offline lending sector. According to the research, "the growth of the FinTech industry depends on the level playing field principle."Laws pertaining to the DPDP Act's implementation: The Digital Personal Data Protection Act, 2023 (DPDP Act) mandates that anyone in possession of data take appropriate precautions, obtain consent before using the data, and even face severe fines in the event that a data breach occurs. According to the DPDP Act, a "consent manager" is any third-party organization that is registered with the Data Protection Board and that gives people the ability to grant, monitor, and revoke consent for the use of their data by "data fiduciaries," such the government or a financial institution.