Economists explain that the impact of increasing BI interest rates will increase KPR interest installments. FOTO/doc.SINDOnews
JAKARTA – Bank Indonesia (BI) officially raised mold interest rate by 25 basis points (bps) to the level of 6.25%. Economist and Director of the Center of Economics and Law Studies (Celios) Bhima Yudhistira also spoke out.
According to him, BI’s move to increase the benchmark interest rate is only a paracetamol medicine to reduce the short-term weakening of the Rupiah. Bhima said these steps were not enough to prevent the Rupiah from weakening.
“The increase in interest rates is just paracetamol to reduce the short-term weakening of the rupiah. Yes, if you want to continue using the interest rate, never mind 25 bps, even 50 bps is not enough to prevent the weakening of the rupiah,” he said in his statement, Thursday (25/4/2024).
Furthermore, Bhima is of the opinion that the effect of increasing the benchmark interest rate only makes people more burdened. This is because most people usually purchase houses and motor vehicles using credit facilities.
“The increase in the reference interest also causes other consumer loans to experience a slowdown. Interest in Indonesia is already high, plus the increase in the BI reference interest is even higher,” said Bhima.
“The portion of public income allocated to pay credit installments could increase and reduce the allocation for purchasing other goods,” he said.
For your information, BI’s move to increase the benchmark interest rate by 25 basis points (bps) to 6.25% is due to the change in the direction of the Fed’s interest rate reduction and increasing political tensions in the Middle East.
“The baseline scenario is above 75%. The Fed Fund Rate will fall once by 25 bps in the fourth quarter, which is likely in December 2024,” said Perry at the BI RDG press conference in April 2024.
The next estimate is that the US benchmark interest rate will fall by 50 bps in the first quarter or second quarter of 2025. However, this could change according to the risks faced in the future. Perry explained another scenario, the Fed’s interest rates will remain high for longer in 2024 and only fall 25 bps in 2025.
“That’s about the probability of what we are doing to mitigate the potential risk so that it returns to baseline,” he explained.
(nng)
#Effect #Interest #Rate #Rising #Ready #Increase #KPR #Installments
2024-04-25 21:46:02
Effect of BI Interest Rate Rising to 6.25%, Get Ready to Increase KPR Installments
Paramount and Skydance on the Verge of a Merger Deal
Paramount Global and Skydance Media Merger Progress
President of National Amusements Shari Redstone recently attended the annual Allen and Co. Sun Valley media conference in Sun Valley, Idaho, on July 5, 2022.
Brendan Mcdermid | Reuters
Deal Negotiations
Paramount Global and Skydance Media are currently in discussions regarding a potential merger that would involve the acquisition of controlling shareholder Shari Redstone’s stake in the media companies.
The special committee of Paramount Global and David Ellison’s Skydance Media, with support from private equity firms KKR and RedBird Capital Partners, are in the process of determining the valuation of Skydance’s assets for the merger. They are also considering the amount of equity to be infused into the company as part of a recapitalization.
Valuation and Timeline
Sources familiar with the matter revealed that Skydance is expected to be valued at approximately $5 billion as part of the merger with Paramount Global. The consortium led by Ellison and the private equity firms aims to raise between $4.5 billion to $5 billion in new equity. A significant portion of this capital will be allocated towards compensating Redstone and reducing existing debt.
The parties involved are targeting a deal closure by May, with Paramount Global’s delay in opening a data room to the Skydance consortium slightly affecting the timeline. Negotiations are set to conclude by May 3, with efforts to extend the exclusivity window by two weeks.
Leadership Changes and Competitive Bids
Skydance plans to appoint Ellison as the CEO of Paramount Global and former NBCUniversal CEO Jeff Shell as the president, resulting in the departure of current Paramount CEO Bob Bakish. Additionally, Apollo and Sony have engaged in initial talks about a potential buyout of all Paramount Global shareholders at a premium.
The special committee favored Skydance’s offer over Apollo’s due to the promise of future shareholder benefits and a cleaner balance sheet by keeping the company public.
Challenges and Negotiations
One of the key challenges facing Paramount Global is the renewal agreement with Charter Communications for CBS and its cable networks, which could impact the company’s value. Paramount Global’s reliance on traditional TV business, constituting a significant portion of its revenue, adds to the negotiation complexity.
Charter’s history of tough negotiations, as seen in previous disputes with Disney, poses a potential hurdle for Paramount Global. The impending renewal deadline coinciding with the deal talks creates a unique dynamic, with Bakish playing a pivotal role in the outcome despite his impending departure.
Shareholder Concerns and Future Outlook
Bakish and several Paramount Global investors have expressed reservations about the Skydance deal, citing concerns about dilution of common shareholders and the premium offered to Redstone. Under the proposed terms, Skydance and its partners would own nearly 50% of the company, with the remainder held by common shareholders.
Bakish emphasized the company’s commitment to creating shareholder value for all stakeholders during a recent earnings call.
Disclosure: NBCUniversal is the parent company of CNBC.
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Apple’s Vision Pro Mixed Reality Headset Faces Production Cutback Amidst Lack of Demand
(Photo = Shutterstock)
There is news that Apple has already reduced production of the ‘Vision Pro’ mixed reality (MR) headset, which was released in February. Although it hasn’t even been released outside of the US yet, it has been concluded that there is no demand for it.
On the 24th, The Verge quoted Apple analyst Ming-Chi Kuo and reported that Apple had significantly reduced its shipment forecast for Vision Pro due to sluggish demand.
According to this, it is known that Apple has reduced the sales of Vision Pro this year to 400,000 to 450,000 units. This is half the market expectation of 700,000 to 800,000 units.
It is far below Apple’s original expectations, and it is predicted that there will be no significant difference even when overseas sales begin.
Although a detailed case analysis has not been released, the high price of $3,500 (about 4.8 million won) is cited as the reason. Vision Pro has managed to catch the attention of early adopters due to its technical excellence, but popularity is hard to come by.
For this reason, it is expected that Vision Pro production will end quickly and that the company will focus on developing low-cost headphones starting next year.
He also said that attention will be paid to how Apple’s policy will affect the headset strategies of Meta and Samsung Electronics in the future.
Analyst Kuo said Apple’s failure could cause popular components such as micro OLED to fail to meet mass production adoption standards. In fact, after the launch of Vision Pro, Samsung Electronics and LG Electronics are known to have considered adopting Micro OLED for Vision Pro.
Meanwhile, Senior Director Frank Casanova, who worked at Apple for 36 years and led the marketing of Vision Pro, is said to have left the company last week. The detailed reason was not disclosed.
Correspondent Lim Da-jun ydj@aitimes.com
#Apple #halts #Vision #Pro #production #early #due #lack #demand
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Apple’s Vision Pro Mixed Reality Headset Faces Production Cutback Amidst Lack of Demand