Latest news with #PPI
STV News
5 hours ago
- Automotive
- STV News
Supreme Court to decide if millions of car finance customers are owed compensation
The Supreme Court is to reveal its decision in a landmark case on mis-sold car loans that could see the industry face a multi-billion-pound compensation bill. Some car dealers were getting bigger commissions when they signed buyers to higher interest rate deals, known as 'discretionary commissions'. Last year, the Court of Appeal ruled that these undisclosed commissions were unlawful. On Friday afternoon, the UK's highest court will give a judgement affecting millions of car buyers, in what could be the biggest consumer compensation case since PPI. The payment protection insurance (PPI) scandal saw people sold insurance they had not asked for or did not need on a wide scale. In January 2021, the Financial Conduct Authority banned motor loan commissions that increased when customers paid more interest. Friday's judgement is in response to an appeal brought by lenders who say they applied rules that existed at the time. If the UK's Financial Conduct Authority concludes that customers have lost out from widespread failings by firms, it could set up an industry-wide redress scheme. It's estimated 31 million car loan agreements are affected with potential compensation up to £30bn. The Financial Conduct Authority estimates 99% of finance deals had a commission model, and 40% had the 'discretionary commission arrangements' or DCAs. The issues affect those who bought any kind of vehicle on finance before January 28, 2021. This includes hire purchase and PCP (Personal Contract Purchases) schemes. Any compensation scheme is likely to apply to deals taken out after April 6, 2007, when the Financial Ombudsman took over jurisdiction of motor finance complaints. Money Saving Expert Martin Lewis has said there's no need to use a claims management firm to log a complaint if you think you've affected by DCAs. Such a firm is likely to take a cut of any money you're due. You can use Money Saving Expert's free tool to ask if you had a DCA and log a complaint. Lloyds Banking Group was the first UK bank to set aside millions of pounds in preparation. The bank was exposed through its Black Horse business, which offers finance for new and used vehicles through 4,500 dealers across the UK. The bank has said it has put aside £1.2bn to cover potential costs and compensation. Santander said it had put aside £295m as a provision to cover potential payouts as well as legal costs. Get all the latest news from around the country Follow STV News Scan the QR code on your mobile device for all the latest news from around the country
The Citizen
6 hours ago
- Business
- The Citizen
PPI increases as anticipated, but still low and won't affect repo rate decision
'The price pressure came mainly from food and beverages and tobacco products that increased by 4%.' The Producer Price Index (PPI) for June rose to 0.6% from 0.1% in May, as anticipated. Although economists still view this increase as low, it is not expected to impact the repo rate decision. PPI measures the average change in prices of goods and services produced by manufacturers and producers. It tracks inflation at the production level, showing how costs are changing for goods before they reach consumers. Statistics South Africa (Stats SA) released the Index on Thursday, showing PPI increased 0.2% month-on-month. ALSO READ: Producer Price Index remains unchanged, but an increase is coming Highest increase in PPI Professor Waldo Krugell, an economist at the Faculty of Economic and Management Sciences at the North-West University (NWU), told The Citizen that the increase is the highest in four months; however, it is still low. 'The price pressure came mainly from food and beverages and tobacco products that increased by 4%. 'We know that the agriculture sector has struggled with late rains and grain quality issues, there is foot-and-mouth disease (FMD) influencing meat prices, and the bird flu in Brazil is having an impact. Yet, most of this pressure is expected to dissipate in the second half of the year.' PPI and repo rate Krugell added that he does not think the PPI is going to influence the South African Reserve Bank (Sarb) Monetary Policy Committee's(MPC) decision on whether to cut the repo rate. 'Inflation is low and stable at the moment, and there is little price pressure on the demand or supply side. They will be worried about international uncertainty, specifically the US tariff wars.' ALSO READ: Will a repo rate cut make things better for SMEs? Producer inflation to increase Nedbank economists predict producer inflation is likely to increase during the second half of the year. They believe food prices will be the key driver, mainly lifted by a low base. However, the outbreak of animal diseases remains a key risk to meat prices. 'The upside in food prices will partly be contained by higher crops following a favourable summer harvest. International oil prices are expected to remain relatively subdued due to weak global demand and ample supply. 'However, geopolitical risks, particularly the conflict in the Middle East and the Russian-Ukrainian war, will continue to threaten the oil price if they disrupt supply channels. A renewed weakening of the rand also presents a significant upside risk to inflation.' PPI to remain below 3% Nedbank added that the rand remains vulnerable to global risk sentiment, which could shift dramatically on any escalation in the global trade war and changes in the United States' monetary policy. 'Steep electricity tariffs and other operational costs will also bring upward pressure on prices. 'We forecast PPI to rise but remain subdued below 3% in 2025 before accelerating in 2026.' NOW READ: A 3% inflation target: What it means for SA markets, and will it solve our debt issues?
Mint
a day ago
- Business
- Mint
US Fed Meeting: 5 key factors that will shape FOMC policy decision
US Fed Meeting: Even as markets have largely priced in the possibility of a status quo on interest rates by the US Federal Reserve, investors are keen on picking up signals from Chair Jerome Powell's commentary that rate cuts may not be far off and could begin as early as September. The US Federal Open Market Committee meeting is underway, with the outcome due later today, July 30. The US Fed's next policy meeting is scheduled for September 16-17. At this juncture, the Fed may maintain the federal funds rate in the 4.25 per cent to 4.50 per cent range, given the uncertainty over how the tariffs announced by US President Donald Trump will affect the economy — even as Trump continues to mount pressure on Powell to lower rates. "A rate cut by the Fed is unlikely today. More important would be the Fed commentary on the evolving economic outlook. The FOMC decision today is unlikely to impact the market," said VK Vijayakumar, Chief Investment Strategist, Geojit Investments. Let's take a look at five key factors that will influence the monetary policy decision of the US Federal Reserve on July 30: In its June policy meeting, the Fed revised its economic growth forecast, highlighting the risks associated with Trump's tariffs. The central bank projected GDP growth of 1.4 per cent in 2025, down 0.3 per cent from the March meeting. The US economy did contract by 0.5 per cent in the first quarter this year, but the world's largest economy is not showing signs of significant stress at this juncture. In fact, the International Monetary Fund (IMF) on Tuesday raised its estimate for the US economy this year and next year. The IMF has raised its US growth forecast to 1.9 per cent for 2025 and 2 per cent for 2026, an increase of 10 basis points (bps) for 2025 and 30 bps for 2026. The IMF said tax incentives for corporate investment in the recent tax bill are also expected to boost growth slightly next year. Of course, the Fed will have its own assessments, which will be the bedrock of its policy decisions. The Fed cannot ignore the sticky inflation in the US. The US Consumer Price Index (CPI) rose to 2.7 per cent in June from 2.4 per cent in May. Experts expected the June CPI to be 2.6 per cent. The Fed's preferred inflation gauge, the Producer Price Index (PPI), however, declined to 2.3 per cent in June from 2.7 per cent in May. June PPI came below expectations of 2.5 per cent. Nevertheless, inflation in the US remains above the central bank's long-term target of 2 per cent. At this point, the Fed cannot be sure that inflation will ease sustainably given high uncertainty over Trump's tariff policies. The US has finalised trade deals with several countries and is actively engaged in negotiations with other major economies, including India and China, for a conclusive agreement. However, the key point to keep in mind is that despite these trade deals, tariff rates on imports to the US may remain high, in the range of 15–20 per cent. This is likely to influence inflation trends in the US. So far, the US jobs market has remained resilient. However, June US job openings and hiring data indicate signs of weakness. US JOLTS (Job Openings and Labor Turnover Survey) data from the Bureau of Labor Statistics showed that job openings dropped by 2,75,000 to 7.437 million in June, compared to the expectations of 7.510 million. In May, the US JOLTS data showed 7.71 million job openings — the highest since November 2024. There are apprehensions that the job market is yet to see the real impact of the tariffs, as Trump extended the tariff deadline for many countries to August 1. US stocks are trading near record highs, while the dollar and bond yields have been largely stable, barring occasional profit booking. The current financial market conditions do not warrant the Fed to bite the bullet and cut rates. The Fed wants to wait for more data before moving ahead with rate cuts. At this juncture, there is significant uncertainty about how the tariff war will evolve in the coming days. Despite trade deals, the element of unpredictability in President Trump's policies cannot be overlooked. Experts also warn that the tariff policies could cause lasting damage to the US economy. Trump's tariffs remain a key variable in the Fed's monetary policy considerations. Read all market-related news here Read more stories by Nishant Kumar Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.
The Star
3 days ago
- Business
- The Star
PPI dips 4.2% in June
PETALING JAYA: Malaysia's Producer Price Index (PPI) has fallen again – down 4.2% year-on-year in June, following a decline of 3.6% in May 2025. The PPI measures price changes at the producer level. Economist Geoffrey Williams said this should not concern consumers. However, the lower PPI was an indication that for businesses, it reflected tight market conditions resulting in a squeeze on profits. 'The falling PPI is consistent with a low Consumer Price Index and reflects price caution due to trade tensions, lower oil prices and a strong ringgit,' he told StarBiz. Williams said the lower PPI would be reflected in lower inflation for the year across all sectors. 'Businesses are being competitive by moderating producer prices so there is no need to interfere,' he noted. According to the Statistics Department, on a monthly basis, every sector experienced year-on-year decline last month, particularly mining and manufacturing that were the primary contributors to the overall negative trend of the index. The mining sector declined 8% (May 2025: down 15%) as it was impacted by the extraction of natural gas (down 12%) and crude petroleum (down 6.7%) while manufacturing dropped 4.3% (May 2025: down 3%) on the back of a significant downturn of coke, refined petroleum products (down 17.7%) and computer, electronic and optical product (down 7.8%) indices. Furthermore, the agriculture, forestry and fishing sector also recorded a slight decrease of 0.3% (May 2025: 1.8%) as the animal production index fell 2.9%. The utility sectors saw a small drop of 0.2%. On a monthly basis, the PPI for local production recorded a decline of 0.7% in June, and 1.1% in May. Chief Statistician Datuk Seri Mohd Uzir Mahidin said the manufacturing sector fell 1.2% (May 2025: down 0.5%) due to the manufacture of coke and refined petroleum products (down 4.2%) as well as the manufacture of food products (down 3.0%) indices. 'Similarly, the agriculture, forestry and fishing sector declined by 1% (May 2025: down 5.4%), weighed down by declines in growing of perennial crops (down 1.2%) and animal production (down 0.8%) indices,' he said. However, the mining sector saw an increase by 4.6% rebounding from a 2.3% contraction in May 2025, driven by the extraction of crude petroleum which increased 7%. The water supply index also went up by 0.2% but the electricity and gas supply index fell 0.2% in June 2025. According to Mohd Uzir, the PPI registered a decline of 2.3% on a quarterly basis, in contrast to a 1% increase recorded in the previous quarter, driven by contractions in agriculture, forestry and fishing, mining and manufacturing sectors. On commodity prices, he said the average price of crude Brent oil in June stood at US$71.45 per barrel – an increase from US$64.21 per barrel in the previous month, primarily attributed to escalating geopolitical tensions, particularly the conflict in the Middle East. 'Malaysian crude palm oil prices averaged RM 3,969 per tonne in June 2025, compared with RM 3,880.50 per tonne in May 2025. 'The upward trend was driven by robust global demand especially from India and China, which helped sustain prices despite ample supply,' he said.
The Wire
3 days ago
- Business
- The Wire
CARD91 Launches AI-Powered Merchant Verification and Classification Suite to Simplify and Secure Onboarding
BANGALORE, India, July 28, 2025 /PRNewswire/ -- CARD91, a leading payments infrastructure provider, has introduced a secure and compliant AI-led Merchant Onboarding, Verification, and Classification Suite to streamline onboarding, reduce fraud, and ensure regulatory compliance for banks and payment aggregators. The solution leverages AI/ML algorithms for real-time risk assessment, merchant verification, and automated classification, enabling institutions to onboard merchants swiftly and confidently. Ajay Pandey, CEO of CARD91, remarked: "Merchant onboarding has long been plagued by fragmented processes and compliance challenges. With our AI-powered suite, we're enabling banks and aggregators to move faster, reduce fraud, and stay fully compliant—while delivering a seamless onboarding experience for their merchants." Key Features of the Solution Include: • AI/ML Risk Assessment Classify merchants by risk level—High, Medium, or Low—using advanced AI/ML algorithms. • Comprehensive Verification Verify merchant data through an intelligent analysis of trusted, publicly available data sources and critical elements of the merchant's digital footprint. • Bulk Reclassification Reclassify misrepresented merchants at scale for accurate data and compliance. • Smart MCC Mapping Leverage advanced natural language search for precise MCC assignments. • Score-Based Limits Set collection and transaction limits based on merchant risk scores. • Streamlined DIY Onboarding Enable secure, self-service onboarding flows within your merchant acquiring journey, with embedded verification and classification checks. The solution equips acquiring institutions with the ability to: • Mitigate Risk: Instantly flag and eliminate high-risk merchants using system intelligence. • Protect Revenue: Avoid leakage due to pricing errors or incorrect merchant categorization. • Stay Compliant: Ensure end-to-end adherence to AML/KYC norms and evolving RBI guidelines. • Improve Efficiency: Automate manual processes to reduce delays and operational overhead. • Derisk Portfolios: Build a clean, trustworthy merchant base for banking products like Current Accounts and Corporate Credit. How It Works: The platform collects merchant data with consent, verifies authenticity, assigns risk levels using AI models, and maps MCC codes accurately. Actionable risk scores are generated to inform decisions, with built-in workflows to reclassify and configure limits dynamically. Reimagine Merchant Acquiring with CARD91 With its secure, compliant, and scalable suite, CARD91 continues to redefine payment infrastructure in India. The Merchant Onboarding Suite is now available for deployment by acquiring institutions looking to modernize and future-proof their operations. About CARD91 CARD91 is an Issuance Platform-as-a-Service company providing unparalleled technology infrastructure to banks, prepaid license holders, and authorized dealers. The company enables them to issue various payment instruments (PPI, Credit Cards, Multi-currency Cards, UPI, and now, Credit Line on UPI) to their customers—ensuring seamless issuance and enhanced control. CARD91's support for multiple use cases aligns with its vision of making issuance seamless and swift for Issuers. With a team of 100 professionals, CARD91 operates across key financial hubs, including Mumbai, Bangalore, Delhi, and Chennai. For more information, visit or contact sales@
