South Korean Finance Minister Choi Sang-mok on Thursday vowed to beef up monitoring of the global financial market and devise contingency plans to better respond to uncertainties regarding interest rates in the US and other nations.

Choi made the remarks during a macroeconomic meeting meant to assess the Federal Reserve’s rate-setting meeting, where it kept the benchmark interest rate intact at between 5.25-5.5 per cent for an eighth straight time, Yonhap news agency reported.

But Fed Chair Jerome Powell said that “a reduction of policy rate could be on the table at the September meeting,” noting some progress on the path toward the inflation target of 2 per cent.

“Uncertainties linger over when and how much the US will cut interest rates. The government will remain vigilant and maintain close coordination among institutions concerned for proper responses,” Choi said.

The Fed’s latest freeze also kept the gap between the key rates of South Korea and the US at up to 2 percentage points.

The domestic financial market remains relatively stable, but there are chances of greater volatility over the Middle East crisis and the US elections, Choi said, pledging responses in accordance with contingency plans, if needed.

Policy focus will also be on such risk factors as household debts and real estate project financing, the minister said. AGENCIES

South Korean army operations troops on Thursday wrapped up an exercise around an island off the west coast designed to strengthen their maritime infiltration capabilities, officials said.

The exercise, which began July 22, took place around Anmyeon Island, 123 kilometers southwest of Seoul, involving some 150 personnel under the Army Special Warfare Command and about 20 pieces of equipment, such as special operations boats, Yonhap news agency reported.

During the drills, the troops trained on infiltrating coastlines aboard the inflatable boats and eliminating threats in target areas, according to the army.

The exercise also mobilized coastal defense personnel from the 32nd Infantry Division to serve as troops defending against the infiltrating special forces, it said.

The army said the exercise served to strengthen the operational capabilities of special forces and coastal defense personnel, adding that it plans to improve training methods to enhance troop readiness. AGENCIES

The Minister for Indigenous Australians Malarndirri McCarthy has described a new government report on the welfare of First Nations people as deeply troubling.

The Productivity Commission, the government’s primary review and advisory body, on Wednesday published its latest report on Closing the Gap, the national strategy to reduce the structural disadvantages faced by Aboriginal and Torres Strait Islander people, Xinhua news agency reported.

The report found that five of the 19 Closing the Gap targets are on track to be met and that progress on four targets has gone backwards.

According to the new data, the number of Indigenous Australians imprisoned, taking their own lives and losing their children to out-of-home care has increased from baseline levels.

In 2021, 34.3 per cent of Indigenous children commencing school were considered developmentally on track, down from 35.2 per cent in 2018.

McCarthy, the Minister for Indigenous Australians, said in a statement on Thursday that a bipartisan approach was needed to close the gap.

“These figures are deeply troubling, but I am determined to work in partnership with First Nations Australians, the Coalition of Peaks and State and Territory governments to bring about positive change,” she said.

“I will be reaching out to my colleagues across the parliament to seek a bipartisan approach to Indigenous affairs.”

The life expectancy gap between Indigenous and non-Indigenous Australians has narrowed, the report said, but a target of zero gap by 2031 is not on track.

Indigenous people born in 2020-2022 had a life expectancy of 71.9 years for males and 75.6 years for females compared to 81.2 years and 85.3 years for non-Indigenous males and females respectively.

Suicide was the leading cause of death for Indigenous Australians aged 15-39 in 2022.

Targets concerning healthy birth weights of Indigenous children, the proportion of Indigenous children enrolled in preschool, Indigenous employment and the proportion of Australia’s land mass and sea area covered under Indigenous legal rights are on track to be met. AGENCIES

 The US Federal Reserve has left interest rates unchanged at a 22-year high of 5.25 per cent to 5.5 per cent, as inflation continues to cool, hinting that a rate cut might come as soon as September.

“Inflation has eased over the past year but remains somewhat elevated. In recent months, there has been some further progress toward the Committee’s 2 per cent inflation objective,” the Federal Open Market Committee (FOMC), the Fed’s policy-setting body, said on Wednesday in a statement after a two-day policy meeting.

Regarding the Fed’s statement, the language reflected an improvement compared to the June meeting. Previously, the policy statement mentioned only “modest further progress” in reducing price pressures, Xinhua news agency reported.

The committee reiterated that it does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 per cent.

In addition, the committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage-backed securities, the statement said.

When asked whether a September rate cut is a reasonable expectation, US Federal Reserve Chair Jerome Powell told reporters at a press conference on Wednesday afternoon that “we have made no decisions about future meetings. That includes the September meeting”.

The Fed chair, however, noted that “the broad sense of the committee is that the economy is moving closer to the point at which it will be appropriate to reduce our policy rate”.

Noting that the last couple of inflation readings have “added to confidence”, Powell said, “we’ve seen progress across all three categories of core PCE inflations, goods, non-house services, and housing services.”

In the second quarter, the personal consumption expenditures (PCE) price index increased 2.6 per cent, compared with an increase of 3.4 per cent in the first quarter, according to the Commerce Department’s Bureau of Economic Analysis. Excluding food and energy prices, the PCE price index increased 2.9 per cent in the second quarter, compared with an increase of 3.7 per cent in the previous quarter.

“We think the time (for a rate cut) is approaching. If we get the data that we hope we get, a reduction or policy rate could be on the table at the September meeting,” the Fed chief said. AGENCIES

Venezuelan President Nicolas Maduro submitted an appeal to the Electoral Chamber of the Supreme Court of Justice to audit and certify the results of presidential elections amid calls for greater transparency.

Maduro asked the highest court to summon the pertinent institutions “to compare all the elements of evidence and certify, by carrying out an expert opinion of the highest technical level, the electoral results of July 28”, Xinhua news agency reported.

He went to the Supreme Court accompanied by First Lady Cilia Flores, Vice President Delcy Rodriguez, National Assembly President Jorge Rodriguez, Attorney General Reinaldo Munoz and Foreign Affairs Minister Yvan Gil, among other members of his cabinet.

In remarks to the press upon leaving the court, Maduro said: “I have told the Electoral Chamber that I am willing to be summoned, interrogated … investigated by the Electoral Chamber as the winning presidential candidate of Sunday’s elections and as head of state; I am showing up, I am submitting to justice.”

The Great Patriotic Pole and the United Socialist Party of Venezuela, which backed Maduro’s reelection bid, are ready “to present 100 per cent of the electoral records that are in our hands,” he said, adding that the Electoral Chamber should expect the same from each candidate and political organisation.

On Monday, Venezuela’s National Electoral Council declared Maduro the winner of the presidential elections, paving the way for his third six-year term, from 2025 to 2031. AGENCIES

Venezuelan President Nicolas Maduro has submitted an appeal to the Electoral Chamber of the Supreme Court of Justice to audit and certify the results of Sunday’s presidential elections amid calls for greater transparency.

Maduro on Wednesday asked the highest court to summon the pertinent institutions “to compare all the elements of evidence and certify, by carrying out an expert opinion of the highest technical level, the electoral results of July 28”, Xinhua news agency reported.

He went to the Supreme Court accompanied by First Lady Cilia Flores, Vice President Delcy Rodriguez, National Assembly President Jorge Rodriguez, Attorney General Reinaldo Munoz and Foreign Affairs Minister Yvan Gil, among other members of his cabinet.

In remarks to the press upon leaving the court, Maduro said: “I have told the Electoral Chamber that I am willing to be summoned, interrogated … investigated by the Electoral Chamber as the winning presidential candidate of Sunday’s elections and as head of state; I am showing up, I am submitting to justice.”

The Great Patriotic Pole and the United Socialist Party of Venezuela, which backed Maduro’s reelection bid, are ready “to present 100 per cent of the electoral records that are in our hands”, he said, adding that the Electoral Chamber should expect the same from each candidate and political organization.

On Monday, Venezuela’s National Electoral Council declared Maduro the winner of the presidential elections, paving the way for his third six-year term, from 2025 to 2031.AGENCIES

Vietnamese Prime Minister Pham Minh Chinh was accorded a ceremonial welcome at the forecourt of Rashtrapati Bhavan in the presence of Prime Minister Narendra Modi on Thursday.

During this, PM Modi received his counterpart, and both leaders shared a warm hug as they greeted each other. After this, the Vietnamese PM inspected a Guard of Honour by the Indian defence forces.

PM Modi and Pham Minh Chinh then met the ministers and delegations of the two countries.

Later, Pham Minh paid his tribute to the Father of the Nation, Mahatma Gandhi, at Rajghat.

He will engage in bilateral discussions with PM Modi, who will also host a luncheon in honour of the visiting delegation.

Chinh reached New Delhi late on Tuesday evening for a three-day state visit, aiming to further strengthen the age-old ties between the two countries.

The Vietnam PM is also scheduled to call on President Droupadi Murmu and Vice President Jagdeep Dhankhar during the visit.

On Wednesday, External Affairs Minister (EAM) S. Jaishanakar called on the visiting Prime Minister and appreciated his guidance in bolstering the India-Vietnam bilateral relations.

“Honoured to call on PM Pham Minh Chinh of Vietnam during his State visit to India. Appreciate his guidance on our bilateral relationship and on regional and global issues of mutual interest,” the EAM said in a post on ‘X’.

The Vietnamese Prime Minister also addressed a business event organised in the national capital on Wednesday. He stated that India’s interest in exploring investments in Vietnam will extend cooperation into new areas such as transportation, economy, digitalisation and energy.

He also appreciated the economic and trade cooperation as a “beacon of cooperation” between the two nations and called on to raise the bilateral trade to $20 billion.

He also hailed the development of India under the leadership of PM Modi.

India-Vietnam relations have been on the upswing since the establishment of a Comprehensive Strategic Partnership during PM Modi’s visit to Hanoi in 2016.

PM Modi has maintained Vietnam’s importance as an important pillar of India’s ‘Act East’ policy and the Indo-Pacific vision while seeking to enhance the scope of the bilateral relationship, including defence partnership, besides working for expeditious progress on the existing initiatives. AGENCIES

 Samsung Electronics said on Wednesday its second quarter (Q2) operating profit surged more than 15 times from a year earlier on the robust performance of its semiconductor business.

The world’s largest mobile phone and memory chip maker’s operating profit reached 10.44 trillion won ($7.54 billion) in the April-June period, compared with 668.5 billion won a year ago, the company said in a regulatory filing.

It is the first time that Samsung Electronics posted an operating profit of more than 10 trillion won in seven quarters since the third quarter of 2022. Its sales jumped 23.4 per cent on-year to 74.06 trillion won and net profit soared 471 percent to 9.84 trillion won.

Sales and shipments of its latest Galaxy S24 series, released in January, outnumbered those of its predecessor, Galaxy S23, both in the second quarter and the first half.

“In the second half of 2024, overall demand for smartphones is expected to increase year-on-year, with increased demand for premium products, driven by growing demand for AI and the launch of new products with innovative features,” the company said.

The earnings exceeded market expectations. The average estimate of operating profit by analysts stood at 10.29 trillion won, according to a survey by Yonhap Infomax, the financial data firm of Yonhap News Agency.

Samsung said it invested 8.05 trillion won in research and development in the quarter ending in June. It also spent 12.1 trillion won in facility investment, including 9.9 trillion won in the semiconductor sector.

The company said its chip business earned 28.6 trillion won in sales for the three-month period through June, with an operating profit of 6.45 trillion won.

It marked the first quarterly operating profit for the company’s flagship business in more than one year as it had remained in the red for five consecutive quarters since the first quarter of 2023.

The strong performance was driven by increasing demand for memory chips, including those for artificial intelligence servers and solid-state drives.

Samsung’s TV business also expanded in the April-June period thanks to global sporting events, such as the 2024 Paris Summer Olympics, while its conventional home appliance segment was on a gradual recovery on increasing demand for air conditioners and new products. AGENCIES

Indian equity indices opened in the green on Wednesday following positive cues from Asian peers.

At 9.41 a.m., Sensex was up 82 points or 0.10 per cent, at 81,542 and Nifty was up 30 points or 0.12 per cent, at 24,887.

The market trend remained positive. On the National Stock Exchange (NSE), 1,507 shares remained in the green and 480 shares remained in the red.

The Nifty Midcap 100 index was at 58,792, up 169 points or 0.29 per cent and the Nifty Smallcap 100 index was at 19,146, down 60 points or 0.31 per cent.

Pharma, FMCG, metal, fin service and media indices were in the green. Realty, energy and PSU bank indices were in the red.

In the Sensex pack, NTPC, Asian Paints, JSW Steel, ITC, ICICI Bank, Bharti Airtel, HDFC Bank, Tech Mahindra, Tata Steel, Maruti Suzuki, HUL and Nestle were major gainers. Tata Motors, Power Grid, IndusInd Bank and Axis Bank were major losers.

Recently, SEBI proposed new rules for Futures and Options (F&O) trading to prevent speculation in the market.

According to the market experts, “SEBI’s crackdown on F&O trade is eminently desirable and can go a long way towards making the ongoing rally healthy and less speculative.”

“The irrational exuberance of the retail investors, particularly the newbies who entered the market after the Covid crash, will do more harm than good to the overall market in the long run,” they added.

There was a bullish trend in global markets. The markets of Shanghai, Hong Kong, Bangkok, Seoul and Jakarta were bullish. However, US markets closed mixed on Tuesday.

The foreign institutional investors (FIIs) extended their selling as they sold equities worth Rs 5,598 crore on July 30, while domestic institutional investors bought equities worth Rs 5,565 crore on the same day. AGENCIES

 Around six crore income tax returns have been filed in 2023-24, of which 70 per cent were filed under the new simplified tax regime which offers a lower rate of tax but fewer deductions, Revenue Secretary Sanjay Malhotra has said.

Addressing the post-budget session of PHD Chamber of Commerce and Industry, Malhotra said initially some apprehensions were raised in some sections as to whether people would shift to the simplified tax regime.

However, the large percentage of taxpayers preferring to adopt the new regime reflects a positive response and the successful transition to the simplified system, he pointed out.

The new tax regime, introduced to simplify the tax process, offers lower tax rates compared to the previous regime but provides fewer exemptions and deductions. Malhotra highlighted that the move towards this regime aims to reduce compliance burdens and make the tax system simpler for individuals to deal with.

He also said that the comprehensive income tax review announced in the Budget for 2024-25 is aimed at making the tax law simpler.

“We will come up with a draft and then we will seek suggestions from stakeholders,” Malhotra added.

Currently, the country has two personal income tax regimes. In the old income tax regime, the tax rates are higher but taxpayers can claim exemptions and deductions which is a relatively more complicated process. The new tax regime is simpler as it allows the taxpayer to avail of a lower tax rate without the process of filing for deductions.

As much as 58 per cent of corporate tax has come from the simplified tax regime in FY23.

Finance Minister Nirmala Sitharaman has also announced in the Union Budget that a comprehensive review of the Income-tax Act, 1961 would be undertaken which would be completed in six months.

“The purpose is to make the Act concise, lucid, easy to read and understand,” she said, The Finance Minister also said that the government will come out with SoP (standard operating procedure) for TDS defaults and simplify and rationalise compounding of such offences.

Besides, the two tax exemption regimes for charitable trusts will be merged into one. AGENCIES