The rupee fell 44 paise and fell below the 81-mark against the US dollar in early trade on Friday, weighed down by the strong US currency and risk-off sentiment among investors.
Forex traders said the escalation of geopolitical risk in Ukraine and rate hikes by the US Federal Reserve and the Bank of England to combat inflation had dampened risk appetite.
Furthermore, the strength of the US dollar in the international market, a downward trend in domestic equities, and risk-off sentiments as the geopolitical risk in Ukraine escalated weighed on the local currency.
The rupee opened at 81.08 against the US dollar on the interbank foreign exchange, then fell to 81.23, a 44-paise drop from its previous close.
The rupee fell by 83 paise on Thursday, its most significant single-day loss in nearly seven months, to close at an all-time low of 80.79 against the US dollar.
The Bank of England increased its key interest rate by 50 basis points (bps) to a 14-year high of 2.25 per cent.
The Bank of Japan intervened in the foreign exchange market for the first time in 24 years to stem a falling Yen after keeping rates at record lows, according to IFA Global Research Academy, while the Swiss National Bank hiked rates by a record 75 basis points to 0.5%.
The Federal Reserve of the United States raised interest rates by 75 basis points to 3-3.25 per cent.
On Thursday, the RBI was conspicuously absent from the spot market as the rupee fell by 1%, possibly because it wanted the rupee to catch up, according to Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors.
“All major events are over for this month as we await RBI’s MPC to give its verdict on September 30, 2022,” Bhansali added.
Meanwhile, the dollar index, which measures the strength of the US currency against a basket of six currencies, rose 0.05 per cent to 111.41.
Brent crude futures fell 0.57 per cent to USD 89.94 per barrel, the global oil benchmark.
The 30-share BSE Sensex was trading 558.59 points, or 0.94 per cent, lower at 58,561.13, while the broader NSE Nifty was down 153.10 points, or 0.87 per cent, at 17,476.70.
According to exchange data, foreign institutional investors were net sellers in the capital market on Thursday, offloading shares worth Rs 2,509.55 crore.
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GST revenue increases 26% to over Rs 1.47 lakh
The amount of GST collected in September increased by 26% to over Rs. 1.47 lakh crore, the finance ministry reported on Saturday
The mop-up for the Goods and Services Tax (GST) has exceeded 1.40 lakh crore for seven consecutive months.
According to a statement from the ministry, the total gross GST revenue collected in the month of September 2022 was Rs. 1,47,686 crore, of which Central GST was worth Rs. 25,271 crore, State GST was worth Rs. 31,813 crore, Integrated GST was worth Rs. 80,464 crore (including Rs. 41,215 crore collected on import of goods), and Cess was worth Rs. 10,137 crore (including Rs. 856 crore collected on import of goods).
RBI raises the repo rate by 50 basis points to a three-year high of 5.9%, with GDP expected to grow at 7%
RBI Governor Shaktikanta Das announced on Friday that the Monetary Policy Committee (MPC) of the central bank raised the repo rate, or key lending rate, by 50 basis points (bps) to a three-year high of 5.9 percent. The country is expected to have a real GDP of 7%, which has been reduced from 7.25% previously predicted. “We are awake, ever vigilant, ever striving,” the RBI Governor said during his speech, highlighting the steps taken to address global challenges and emphasising the resilience of the national economy.
“The global economy is in the eye of storm but India has withstood shocks over the last two years,” RBI governor said, adding that the inflation is hovering around 7 per cent and is expected to remain around 6 per cent in the second half of the year.
“Daunting challenges await us,” he said, referring to the Ukraine war, which began in February. “A series of measures have been implemented since April 2022 in the backdrop of geopolitical tensions, which have also hampered global supply.” “The inflation rate is expected to be 6.7%,” he said. “In the face of current conditions, the MPC must remain alert and nimble.” In the first quarter, GDP increased by 13.5% year on year, he said. “While real GDP growth in the first quarter of this year was lower than expected, it was still 13.5 percent, possibly the highest among the major global economies,” he added.
Markets opened in the red ahead of the critical statement, with the Sensex at 56,254. The Nifty 50 index of the National Stock Exchange (NSE) was down 0.3% at 16,776. A Reuters poll conducted ahead of the statement found that a slim majority of economists expected a 50 basis point increase, with some expecting a smaller 35 basis point increase.
Last month, the MPC announced another 50 basis point increase in the repo rate (one basis point is one hundredth of a percentage point), bringing it to 5.4%, a level last seen in September 2019. It was the MPC’s third consecutive rate hike since its unexpected May 2022 meeting. The key committee also maintained its inflation and GDP growth projections for fiscal year 2022-23 at 6.7% and 7.2%, respectively.
According to reports, the MPC has raised the key policy rate by 190 basis points since May to cool domestic retail inflation, which has remained above the RBI’s upper tolerance limit of 6% since January.
“The inflation trajectory remains clouded with uncertainties arising from continuing geopolitical tensions and nervous global financial market sentiments. In this backdrop, MPC was of the view that persistence of high inflation, necessitates further calibrated withdrawal of monetary accommodation to restrain broadening of price pressures, anchor inflation expectations and contain the second round effects. This action will support the medium-term growth prospects of our economy,” Shaktikanta Das stressed on Friday.
Indian rupee falls 40 paise to a record low of 81.93 per US dollar
The rupee fell 40 paise to an all-time low of 81.93 against the US dollar in early trade on Wednesday, as the strengthening of the US currency and risk-averse investor sentiment weighed on the local currency.
Furthermore, a downward trend in domestic equities and significant foreign fund outflows dampened investor enthusiasm, according to forex traders. The rupee opened at 81.90 against the US dollar on the interbank foreign exchange, then fell to 81.93, a drop of 40 paise from its previous close.
The rupee consolidated in a narrow range on Tuesday, finishing 14 paise higher at 81.53 per dollar. According to Sriram Iyer, Senior Research Analyst at Reliance Securities, the rupee opened weaker on Wednesday as the dollar resumed its upward momentum, supported by hawkish Fed talk.
According to Iyer, the local unit could track the weakness of its Asian and emerging market peers, and a delay in listing local bonds on a major global index this year could also limit gains.
“The Reserve Bank of India (RBI) may be present to curb volatility,” Iyer noted.
The dollar index, which measures the strength of the US currency against a basket of six currencies, rose 0.40 percent to 114.55.
Meanwhile, investors are anticipating the outcome of the RBI’s monetary policy meeting on Friday. Brent crude futures fell 1.33 percent to USD 85.12 per barrel, the global oil benchmark.
The 30-share BSE Sensex was trading 373.37 points, or 0.65%, lower at 56,734.15, while the broader NSE Nifty was down 108.20 points, or 0.64 percent, at 16,899.20.
According to exchange data, foreign institutional investors were net sellers in the capital market on Tuesday, offloading shares worth Rs. 2,823.96 crore.
How Easy is It to Get a Business Address in London?
If you are thinking about starting a business, you are going to have some paperwork to do first. Namely, one thing you will need is a business address. This is something that is required no matter what industry you are entering or even if you are running the brand from home. After all, people, including the taxman, need to know where to contact you.
We all know that having a business address in London is going to be impressive. It can give your new brand the recognition that it needs to be successful. But is it really possible to get one? Let’s take a look at the ways you can acquire a business address in London.
Let’s start with the obvious way you can get a business address in London. You can buy property in the capital. This is going to be the most expensive way to get this type of address for your business, but it is a sure way to do it. If you have this kind of money in the bank, it would be an investment.
However, the reality is that if you are starting a new business, you might not have a lot of capital behind you. Indeed, you will have a small budget to work with and it may not be possible to purchase property in London. The prices are way above the average in the country, which can make things very difficult. This is not to mention the competition for business property in London.
Use a Virtual Office
The next option is a relatively new one that you might not have heard about before. We are talking about acquiring a virtual office. This means that you are going to have a business address in London. But, you do not necessarily have to work in the city. In fact, you can work from another location that is best for your business, which includes working from home. For instance, you can get a W1 Virtual business address. This is a company that can offer several prestigious locations in London that you can use for your business address, with your mail sent here, as well as other official correspondence.
A lot of people ask whether having a virtual office is legitimate and legal. The answer is yes. The benefits from having one are immense. It is going to be the most affordable way to have an address in London, being a lot cheaper than renting an office space. Plus if gives you the freedom to work from anywhere. For example, perhaps you like for all of your team to work remotely. Well, this is a way that they can do this but you can still have a registered address in the capital.
Rent an Office Space
Another option you have is to rent an office space for your team. This might be something that you have to look into if you need to work on projects together on a daily basis. You may prefer to have your team present and work in an office compared to at home. Renting can seem more affordable than buying property since you are able to spread out the payments for your business.
However, you also have to remember that renting prices in the capital are high. Again, they are above the average rent prices and for new businesses, this might not be something that is feasible. What’s more, there is a lot of competition to rent an office space in the capital. Indeed, a lot of businesses are in a similar position in that they might not be able to affordable purchasing an office space here. So, they believe that the next best option is to rent. It is likely that you will have to work hard to win the race and to impress the owner.
What is the Best Option for My Business?
There you have it; there are three main ways to acquire a business address in London. So, what is going to be the best option for your business? Well, you are going to have to consider two things. What your budget is right now when it comes to your office space and what you would like to achieve in the future.
For example, if you have a huge budget and want to settle in the capital permanently, purchasing an office space might be on the cards. Alternatively, if you are on a budget and want the freedom to work from anywhere, a virtual office is a good option. Alternatively, renting can be a way to have your team in an office and be able to spread out payments.
Rupee hits record low against US dollar, prone to fall further: Analysts
The Indian rupee is expected to fall further after reaching a record low against the US dollar on Thursday, as the US Federal Reserve hinted at more aggressive rate hikes to combat inflation. The rupee opened at a record low of 80.2850 per US dollar, down from 79.9750 the day before.
The Fed raised interest rates by 75 basis points, as expected. More importantly, it hinted that more hikes were on the way and that rates would remain high until 2024. Asian currencies began the day weaker, with the Chinese yuan falling below 7.10 per dollar.
“After the hawkish Fed Reserve commentary, the rupee is (set to fall)”, said Anil Bhansali, head of treasury at Finrex Treasury Advisors.
“The intervention from the central bank will remain crucial and they are expected to be present through the day. However, they may allow a closing for the pair above 80 today.”
If the RBI decides to take a step back, Samir Lodha, managing director at QuantArt Market Solutions, believes the rupee will suffer further losses.
“Once RBI allows INR to trade beyond 80 on a consistent basis, I expect rupee to head towards 82.0 in a couple of months on account of the trade deficit and due to global recession and money supply tightening,” Lodha said. It is possible that “rupee will depreciate further with RBI intervention to control it whenever required,” said Venkatakrishnan Srinivasan, founder and managing partner at Rockfor Fincap.
However, any potential RBI intervention may be less aggressive this time, according to Arnob Biswas, head of FX at SMC Global Securities.
“Given the Fed’s hawkish stance, the RBI may not be aggressive. Furthermore, a significant drop in net liquidity in the system may justify doing so “Biswas stated.
According to Dilip Parmar, research analyst at HDFC Securities, “even if the RBI steps in, it will only be a temporary support and will not change the direction.”
Meanwhile, Kunal Sodhani, vice president of Sinhan Bank’s global trading centre, stated “Stop losses may be triggered by a large number of option sellers. Needless to say, it will be interesting to see how the RBI responds from here “Sodhani explained.
What are the top 10 challenges and solutions in the event hire industry today?
Like pretty much every industry sector in the UK (and globally), the event hire sector was ravaged by COVID. Events, festivals and other occasions simply didn’t take place and, by nature of the factor that this sector supplies these events, the work dried up. Of course, the Government’s furlough scheme helped to a certain extent, but some large companies in the UK event hire sector simply closed the doors. The UK events business went from being worth over £40 billion per year to almost zero overnight. Being in the event hire business, therefore, was simply not sustainable.
Of course, the effects of COVID from a financial point of view are still being felt. And some of these have a knock-on effect to other areas of operations. Below, we take a look at some of the challenges (and solutions) facing the event hire industry in the UK today. Many of these, of course, will not be specific to this sector, but some most definitely are.
The return to events after COVID
For those who lost loved ones during COVID, everything will still be raw. However, for many, it’s almost now like a bad dream. People were simply not able to do what they wanted to do. Now that they can, people have been attending events and festivals in greater numbers than ever. There’s a thirst amongst the public to get back to ‘normal’, whilst festival and event organisers have been promising bigger and better! There’s no doubt that this is great, especially for companies involved in the events sector, after a couple of years of inactivity. That said, with some event hire companies closing during COVID, it means that more workload is being required from fewer companies. The challenge is certainly on – especially when you consider some of the other points below!
With bigger events taking place, this means that more staff than ever are required to fulfil responsibilities when it comes to catering event equipment hire, furniture, AV, security and so on – in fact, any element that is required for a temporary event. Are these increased staff levels always available? Especially as some key people would have departed the industry during COVID. The best event hire companies ensure that they retain their best staff and, when extra manpower is required, can use third party crewing companies – a solution that is always in demand.
We all know that the cost of living is on the rise and has been for some time, with fuel one of the main drivers of this. The war in Ukraine is pushing up the price of fuel at the pumps, and this is the same for not just for the public, but also for companies. Temporary events rely on equipment being transported around the country, and the more fuel that is required, the more expensive the job becomes. The solution for event professionals is to find an event hire company that has nationwide coverage, with hubs around the country – this, therefore, reduces transport costs.
In a similar vein to fuel, the cost of gas and electricity is also at an all-time high. Event hire companies need to ensure that their equipment is clean and in good working order all the time. Whether it’s electrical testing or power required to run industrial-sized cleaning machines for event catering hire jobs, it seems to be getting increasingly expensive to operate, with no immediate sign of abating!
This is the buzzword on everyone’s lips at the moment, and sustainability should be at the heart of every company’s plans. The challenge for the event hire industry is how to operate as sustainability as possible, considering that there is often a lot of short notice job requirements and kit has to be transported quickly, safely and efficiently. Whether it’s trying to reduce the amount of pallet shrink wrap, or moving towards a fully electric-powered fleet of trucks, this challenge has to be met head on!
The events industry at large is seasonal. January to March are typically quiet months, with the industry springing into life in April, and going at full tilt through to September. After that, there’s a bit of a lull through to November, when the Christmas parties start! Event hire companies need to ensure they are using the time in the quieter periods to good effect, whether this is stock takes, internal processes and other ways to improve their businesses.
Demand & supply
When the peak seasons hit, it’s incredibly busy for all companies within this sector. Stock can rapidly run out, customers can be let down and orders cannot be fulfilled for corporate event equipment hire and more. However, with careful planning and an experienced management team, almost any issue can be resolved!
Standing out in the market
For any business, brand awareness and reputation is crucial in order to succeed. For companies in the event hire sector, this sometimes get pushed down the priority order, especially in busy times. Every customer-facing activity for the business needs to be on-point, as every interaction with a customer reflects you as a brand and company.
Consistency of service
With these peaks in the year, it’s all too easy for event hire companies to lose consistency. By this, we mean service levels and customer interactions. Everyone is busy, but consistency of service is all important for customers. Your customer needs to feel as though they are your ONLY customer!
And finally, the great British weather is one of those challenges that no one can do anything about. The summer of 2018 was a complete washout, but the summer of 2022 was one of the driest on record. When it has been raining over a long period of time, the ground becomes soft, and trucks delivering and collecting equipment to and from festival and event sites can be hindered by the mud – it’s certainly a problem that event hire companies could do without!
Hopefully the above information has given you an idea of the challenges facing many event hire companies in the UK today. This sector, working behind the scenes to help produce world-class events in this country, is incredibly valuable, and will hopefully continue to flourish after the COVID years.
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