International News 24 January 2025
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Norway's benchmark interest rate remains fixed and will only be cut in March 2025
Norway's central bank, Norges Bank, has decided to maintain its benchmark interest rate at 4.5%, the highest level for 17 years. This decision is in line with the predictions of a Reuters poll which surveyed 25 analysts. However, economists anticipate that the central bank will follow the trend of other western central banks and cut interest rates in March. If this occurs, it will be the first rate cut by the Norwegian central bank since May 2020. Last month, Norges Bank announced its intention to reduce the benchmark rate three times by 2025, with the target rate set at 3.75% by the end of the year. The bank has expressed uncertainty regarding the impact of higher interest rates on economic growth and its implications for inflation in Norway. Analysts surveyed by Reuters also expect a 25 basis point reduction in interest rates by March 2025, bringing it down to 4.25%.
Hindustan Unilever Acquires Minimalist Skincare Brand
Consumer goods manufacturer Hindustan Unilever Limited is set to acquire skincare brand Minimalist as it aims to meet the growing demand for skin and hair care products in India. The acquisition will involve the purchase of a 90.5% stake in Uprising Science, the company that operates under the Minimalist brand, for a value of 29.55 billion rupees. The deal is expected to be finalized in the April-June quarter. While the acquisition is not expected to have a significant impact on the company's share price or total revenue, it is regarded as a positive step in the right direction. However, Hindustan Unilever estimates that the margins to be generated would be at the lower end of projections due to sluggish urban demand and increased commodity prices, although rural demand is on the rise.
https://internasional.kontan.co.id/news/hindustan-unilever-akuisisi-merek-skincare-minimalist
HSBC Rumoured to Shut Down Zing Payment App
HSBC has announced its decision to discontinue its international payments app, Zing, which may result in approximately 400 job losses. The majority of these layoffs are expected to affect non-HSBC external customer staff, with notifications scheduled to commence on 23rd January.Launched a year ago, Zing was developed as a cross-border payment platform aimed at UK-based customers, with the intention of competing with fintech rivals such as Revolut and Wise. The app was designed to complement HSBC's Global Money product and attract non-HSBC customers to expand the bank's client base.However, HSBC's CEO, Georges Elhedery, has revealed that further cost-cutting measures are planned, and the bank has declined to comment on the reported layoffs.
https://internasional.kontan.co.id/news/hsbc-dikabarkan-bakal-tutup-aplikasi-pembayaran-zing