International News 08 May 2025
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Grab Looks to Acquire GoTo Indonesia in Second Quarter
Grab, a US-listed company offering ride-hailing and food delivery services, is reportedly in talks to acquire its Indonesian competitor, GoTo, in the second quarter. Grab has engaged advisors for the potential deal and is in discussions with banks for financing, though specific details remain undisclosed. GoTo has not confirmed any proposal, with sources estimating the deal could value the company at around $7 billion. GoTo's shares have seen a 20% increase this year, while Grab's shares have risen by 2.4%, indicating strong market value for both companies. It is noteworthy that GoTo plans to divest its international unit and sell all operations in Indonesia, with the exception of its finance unit, to Grab.
https://internasional.kontan.co.id/news/grab-berupaya-mengakuisisi-goto-indonesia-pada-kuartal-kedua
Keep Interest at 4.25%-4.5%, Here's the Fed's Full Statement
The US Federal Reserve has decided to maintain the current interest rate of 4.25%-4.5%, citing the rising risks of inflation and unemployment as a result of President Trump's tariffs on goods. Fed Chairman Powell acknowledged economic growth but highlighted heightened uncertainties. The Fed's long-term goals include achieving maximum employment and maintaining a 2% inflation rate. While acknowledging stable labor market conditions and somewhat elevated inflation, the Fed emphasised the need for caution. The Committee remained vigilant about risks to achieving its goals and chose to maintain the federal funds rate target. Future adjustments will be determined by ongoing assessments of economic conditions.
Fed keeps rates on hold in May FOMC, watch out for inflation & unemployment risks
The Federal Reserve's Federal Open Market Committee (FOMC) has decided to keep the benchmark interest rate at 4.25% to 4.50%, despite changes in import and export activities. The latest economic indicators suggest that the US economy is performing well, with stable low unemployment and strong labour market conditions. However, inflation remains relatively high, leading to increased uncertainty about the economic outlook and heightened risks to both inflation and unemployment. The FOMC is committed to its long-term goal of maximum employment and 2% inflation, and to this end it closely monitors economic data, risks, and adjusts monetary policy as necessary. The committee continues to reduce its government debt and mortgage-backed securities holdings, taking into account various factors including labor market conditions, inflationary pressures, expectations, and global developments in their assessments. Fed Chairman Jerome H. Powell has expressed support for this decision, emphasising the readiness to address emerging risks to economic goals.