SYEDA ALISHA FATIMA

190010
BBA-8
SUBMITTED TO: DR.SHOAIB ALI
 NEWS UPDATE-WEEK 04
DAR’S ECONOMICS AT WORK
Link:

https://www.dawn.com/news/1714455

INFERENCES DRAWN FROM THE STATEMENT

As soon as Dar came to power he implemented a plan to focus on the recovery of the national
currency.Among the initiatives he took to curb speculative forex trading, combat inflation and
bring down the interest rate have evoked a sharp divergence of views on their outcomes.
However the good thing is that rupee has cumulatively regained Rs14.07 or 5.8 per cent in eight
days ending October 4. There are mixed reviews regarding its success in future .But its yet to be
seen.

DANGER OF $4 TRLN HOLE IN WORLD OUTLOOK HAUNTS IMF, AS

GLOBAL FINANCE CHIEFS GATHER
Link:

https://english.alarabiya.net/business/economy/2022/10/09/Danger-of-4-trln-hole-in-
world-outlook-haunts-IMF-as-global-finance-chiefs-gather

INFERENCES DRAWN FROM THE STATEMENT

According to a statement given by IMF’s chief it is speculated that in the coming days a possible
loss of $4 trillion is yet to be faced by world’s economy that is equivalent to a Germany-sized
hole in the growth. Further the forecast of the global growth i.e. of 2.9 percent will be lowered.
Worsening these situation are the U.S Fed tightening, on-going Ukrainian war, climate crisis and
a faster core inflation.
STOCKS FALL, DOLLAR RISES WITH ECONOMIC DATA, RATES IN
FOCUS
Link:

https://www.reuters.com/markets/europe/global-markets-wrapup-3-pix-2022-10-10/

INFERENCES DRAWN FROM THE STATEMENT

Markets continue to suffer. And situation has become a wall of worry. This Tuesday the
situation worsened further where stock prices kept falling while dollar rates are rising. It is a
difficult situation wherein banks wants to be raising interest rates in order to bring inflation
down. However, It is stuck between a rock and the hard place in combatting inflation at the
same time as fiscal policy causes shockwaves in markets."

BANK OF ENGLAND INTERVENES IN BOND MARKETS AGAIN,

WARNS OF 'MATERIAL RISK' TO UK FINANCIAL STABILITY
Link:

https://www.cnbc.com/2022/10/11/bank-of-england-expands-bond-market-intervention-in-
effort-to-quell-volatility.ht

INFERENCES DRAWN FROM THE STATEMENT

Volatile bond markets have now become a "material" threat to the UK's "financial stability”. In
order to ensure the control Bank of England once again intervened in a bid to calm the markets
and has widened the scope of its bond buying programme, due to end this week, to include
purchases of index-linked gilts. Dysfunction in this market, and the prospect of self-reinforcing
'fire sale' dynamics pose a material risk to UK financial stability. Therefore On Monday, it
doubled the size of its soon-to-end bond-buying programme to GBP10 billion.
CHANCELLOR FACES FINDING £60BN OF SPENDING CUTS TO
FUND MINI-BUDGET, IFS WARNS
Link:

https://news.sky.com/story/chancellor-faces-finding-60bn-of-spending-cuts-to-fund-mini-
budget-ifs-warns-12717666

INFERENCES DRAWN FROM THE STATEMENT

UK Chancellor Kwasi Kwarteng said that they will have to find spending cuts of more than
GBP60 billion if they are yet to meet his target to get the public finances back under control, a
leading economic think tank has warned. They warned that rising interest rates as the Bank of
England seeks to curb spiraling inflation were likely to result in a "bruising" increase in
unemployment.