Mumbai: The weighted average call rate (WACR) inched above the repo rate for the first time in nearly two months as liquidity drained from the banking system, reducing below the ₹5-lakh crore mark. WACR stood at 5.31% on Tuesday, up from 5.24% on Monday, CCIL data showed. Banking system liquidity was at a surplus ₹4.91 crores on Monday, after reaching a multi year peak of ₹11.16 lakh crore earlier this month.

The Reserve Bank of India has conducted multiple operations – durable and transient – to drain excess liquidity, including open market operation (OMO) sales and variable rate reverse repo (VRRR) auctions. Additionally, GST outflows and weekly g-sec auctions have also helped drain the excess.

Read more: Sebi to address concerns over settlement price for derivatives on expiry days, says chief Tuhin Kanta Pandey

“I think the RBI will be comfortable with a surplus of ₹3-4 lakh crore, because they also have to maintain liquidity to 1% of NDTL. Plus, we are also approaching the quarter end, where demand for funds is typically high, which is showing up in call rates,” said AN Vinod, head of treasury, South Indian Bank. The RBI will conduct one more ₹25,000 crore OMO operation on Monday, while the government will sell ₹32,000 crore 10 year bond on Friday, draining further liquidity.

“I expect liquidity to increase a little by month end, because government expenditure will come in, which can take system liquidity to around ₹5 lakh crore,” said Gaura Sengupta, chief economist at IDFC First Bank.

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“Its not that the Reserve Bank of India needs to hit a certain level of liquidity to manage the WACR. I think the VRRR manages the call rate well because even though the VRRR is temporary, the Reserve Bank of India keeps rolling it over,” Sengupta said.

The RBI drained ₹71,971 crore via a VRRR auction on Tuesday, where the notified amount stood at ₹75,000 crore. The central bank will conduct another VRRR for ₹75,000 crore on Wednesday.

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For European brands, all of this could not have happened at a worse time. The loss of the steady stream of profits from China, and the emergence of Chinese rivals on their home turf, has come after they invested heavily in producing electric vehicles (EVs). But EV sales have not increased as quickly as expected. Executives admit they have struggled to match the low production costs and development speed of the Chinese insurgents.

The result is that European manufacturers are now rushing to cut costs, while wondering what to do with expensive factories capable of producing millions more cars than they are able to sell.

Volkswagen has already announced plans to cut 100,000 jobs over the next few years. Whereas once closing plants in Germany would have been unthinkable, the company has now shuttered one in Dresden and may shut down four more. That includes a site in Zwickau, where VW spent over €1bn (£857m) converting production lines to build electric vehicles – a process that was completed just four years ago.

Industry estimates indicate that western European car plants have roughly 2.5 million vehicles worth of annual spare capacity.

Little wonder that car makers are jealously eyeing soaring defence budgets across Europe.

Sigrid de Vries says car makers are well placed to help Europe rearm.

“Many of the capabilities that defence needs are needed for and also delivered by the automotive sector,” she says. “So automotive manufacturers and suppliers possess industrial assets, they possess manufacturing expertise, logistics capabilities, also advanced technologies. They have vast and also very integrated supply chains that may be relevant for Europe’s broader defence preparedness objective.”

But it is not that simple – security protocols, political and economic rivalries within Europe plus the fact that unless you’re actually at war, the volumes will not replace the mass consumer market, all of which present challenges, she says.

“These are two very different worlds,” she says. Governments want to invest in their defence capabilities and that is why it’s now, more than ever, interesting for manufacturers and suppliers to see what’s possible, but it will not be enough to address the underutilisation of manufacturing capacity we currently see.”

Walmart shoppers are being urged to check their freezers after a supplier recalled certain packages of Bettergoods pasta sold nationwide over potential listeria contamination.

Gias Foods Inc. is recalling two lots of Bettergoods Authentic Italian Lemon Alfredo Fettuccine distributed at Walmart stores across the country, according to a company announcement posted by the Food and Drug Administration. 

The recalled pasta is sold frozen in 22-ounce yellow plastic packages under Walmart’s Bettergoods brand. The affected products have UPC 194346442706 and are marked with lot numbers L6079C or L6080C.

Packages with lot number L6079C have an expiration date of Sept. 19, 2027, while those marked L6080C have an expiration date of Sept. 20, 2027. Both the lot number and expiration date are stamped on the back of the packaging.

EGGS RECALLED AS SALMONELLA OUTBREAK SICKENS 23 PEOPLE

No illnesses have been reported in connection with the recalled products, the company said.

The recall followed routine sampling conducted by the Washington State Department of Agriculture and Florida Department of Agriculture and Consumer Services.

The sampling indicated that the finished products may contain Listeria monocytogenes, according to the announcement.

Gias Foods has stopped distributing the affected product while the company and FDA continue investigating what caused the potential contamination.

WALMART LAUNCHES WEEKLONG FALL SALE OVERLAPPING AMAZON PRIME BIG DEAL DAYS

Representatives for Gias Foods and Walmart did not immediately respond to FOX Business’ requests for comment.

The FDA posts company recall announcements as a public service and notes that publishing an announcement does not constitute an endorsement of the product or company.

Listeria monocytogenes can cause serious and sometimes fatal infections in young children, older adults and people with weakened immune systems, according to the recall announcement.

Healthy people may experience short-term symptoms, including high fever, severe headache, stiffness, nausea, abdominal pain and diarrhea. A listeria monocytogenes infection can also cause miscarriages and stillbirths among pregnant women.

Ticker	Security	Last	Change	Change %
WMT	WALMART INC.	110.12	+2.68	+2.49%

Because the recalled product is frozen and carries expiration dates extending into September 2027, consumers are being urged to check packages they may have stored in their freezers.

Consumers who purchased either affected lot should return the product to the place of purchase for a full refund, according to Gias Foods.

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Customers with questions can contact Gias Foods at sales@giasfoods.com or 917-675-4890.

The company said email inquiries will receive a response within 24 hours.

Mumbai: The Indian rupee closed stronger at 95.59 on Tuesday, amid a pull back in oil prices and dollar sales by the central bank, traders said. Brent crude oil prices dropped to $98 per barrel, easing pressure on the currency which had previously closed at 95.81.

Read more: Ahead of Market: 10 things that will decide stock market action on Wednesday

The currency traded in the range of 95.58 and 95.86, with the central bank selling dollars at weaker levels. The rupee saw a choppy session as state-run banks sold dollars while corporate demand for the greenback provided a counterforce, creating a push-and-pull dynamic in the market.
Read more: Sebi to address concerns over settlement price for derivatives on expiry days, says chief Tuhin Kanta Pandey
“Gains earlier during the day were supported by dollar sales by the RBI, and later corporate dollar demand again wiped these gains. The RBI then intervened around 95.85 levels and kept a lid on further weakness,” said Anil Bhansali, head of treasury, Finrex Treasury Advisors.

Technology leadership broadened beyond semiconductors, as communications equipment, technology hardware, and other Artificial Intelligence ((‘AI’)) infrastructure beneficiaries also posted exceptional gains. – Earnest Partners LLC

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