Union Finance Minister Nirmala Sitharaman called for stronger municipal finances and more bond-based funding for urban infrastructure, as rising borrowing costs make it harder for Indian cities to raise money from capital markets. She said cities need stronger own-source revenues, credible accounts and financially viable projects to attract private investors, and stressed that public investment must continue alongside private funding. The Reserve Bank of India raised its benchmark repo rate by 25 basis points to 5.50% earlier this month, and government bond yields have also risen. She pointed to the Urban Challenge Fund, backed by Rs 1 lakh crore in central assistance and aimed at mobilising Rs 4 lakh crore in total urban investment, and to a Tamil Nadu model in which 13 urban local bodies jointly raised funds through a bond for water and sanitation.
Summary written by Upside AI from the original article. Read the source for full details.
Read the original on aninews.in ↗
Related news
- FM Sitharaman pushes municipal bonds for urban funding amid rising borrowing costs
- Stocks are heading for a high - stakes showdown , as strong earnings collide with rising borrowing costs
Wall Street faces a tug-of-war as booming earnings for technology and energy firms collide with a relentless rise in bond yields, which have reached their highest levels in decades. Analysts expect earnings to keep soaring on AI data center build-outs, while oil prices, pushed into triple-digit territory by the war with Iran, add pressure on consumers. The market has split into AI and non-AI stocks, and AI stocks sold off last week as Treasury yields fell and investors questioned the AI-driven growth story. Valuations have slumped: the S&P 500 trades at 19 times expected earnings, below its five-year and 10-year averages, according to FactSet. Fidelity's Jurrien Timmer said earnings growth and the rising cost of capital are in a race to determine stock prices.
- Stocks are heading for a high-stakes showdown, as strong earnings collide with rising borrowing costs
- AI Boom Interest Rates : Why Borrowing Costs Are Rising
Central bankers are preparing for an era in which AI-driven investment keeps interest rates high and forces governments to tighten budgets after years of cheap money. The global race for capital tied to AI is pushing policymakers to abandon hopes of a return to cheap credit. Spending on chips, data centres, power grids and telecom networks is boosting growth while pushing up borrowing costs, a dual effect at the heart of the policy challenge facing central banks.
- AI Debt , Municipal Bonds Offer Opportunities Amid Market Volatility : Goldman Sachs
Alex Finston, co-head of US and Asia Credit Trading at Goldman Sachs, said credit markets could offer fresh opportunities through the end of 2026, pointing to high-quality AI-related debt, which is available at higher yields after recent volatility. He also highlighted portfolio hedges, which are attractive given low implied volatility, and municipal bonds, with tax-equivalent yields approaching 10 per cent after increased supply. Investment-grade credit spreads sit around the 10th percentile of their 20-year range and leveraged finance spreads around the 25th percentile, but Finston warned that conditions are increasingly differentiated across sectors, calling it a 'credit picker's market'. Investors will watch the Federal Reserve's flexibility and the possibility of large AI-related debt deals before year-end.
- CoreWeave shares, bonds headed for steep weekly losses as AI borrowing concerns mount
CoreWeave shares dipped 4.1% in premarket trading on Friday after jumping 5.9% in the previous session, and were down more than 15% for the week, on course for their biggest weekly decline in about two months. Its October 2031 dollar bond briefly yielded over 16% on Thursday and is set for a fifth straight weekly decline, while the cost of insuring its debt surged past 1,000 bps to record highs, according to S&P Global Market Intelligence data. The loss-making cloud company, which has about $50 billion in debt, has been hit as hot inflation data raised borrowing-cost worries, and BCA Research said its business model is a highly indebted bet on future data center demand. Shares of rival Nebius Group fell 1.5% on Friday morning.
Related markets
Latest news
- Amazon stock pops after Morgan Stanley details 5 catalysts, lifts price target
Morgan Stanley named Amazon a top pick and raised its price target to $350 from $335, implying about 40% upside from Friday's $250 close. The bear and bull cases are $220 and $410, a 3:1 risk-reward ratio. Analyst Brian Nowak outlined five catalysts: faster AWS revenue growth (47% in 2027 and 42% in 2028), AWS operating margins of 42% and 44%, more visibility into Bedrock, gains from AI shopping, and robotics that could save $2 billion to $4 billion a year for every 10% of units moving through automated fulfillment centers. The firm raised its capex forecast to $355 billion for 2027 and $365 billion for 2028. The stock is up about 11% this year but sits roughly 10% below its early August high.
- Should You Buy Meta (META) Ahead of Earnings?
Meta Platforms (NASDAQ:META) reports Q3 results on Oct 21, and the stock is among the top 10 holdings in Trump's latest portfolio, where its biggest trade in the Oct 8 filing was a purchase of $5 million to $25 million on Aug 21. Bulls say AI is boosting Meta's ad business: in Q2, ad impressions rose 14%, the average price per ad rose 12% and revenue grew 28%. Bears point to rising capital spending, nearly vanished free cash flow and a Q2 earnings miss of about 14% from legal and severance charges, while Muse brings in little revenue so far. The number of hedge funds holding Meta fell from 262 to 254 in Q2, and the stock fell after each of its last two earnings reports. The article notes analysts expect Q3 revenue growth of about 24% with EPS below last year, and suggests either buying a small starter position before the report or waiting for it.
- Berkshire Hathaway CEO Greg Abel Just Took a Page Out of Warren Buffett's Playbook, Plowing $930 Million Into a 'Wonderful Company at a Fair Price'
CEO Greg Abel has put $930 million into Bending Spoons, a company that acquires, optimizes and reinvests in digital businesses, including $600 million in its July IPO and a further $330 million later, lifting Berkshire's stake to about 4%. Bending Spoons has acquired 50 businesses since 2013, including AOL, Eventbrite and Vimeo. In the second quarter, revenue rose 126% to over $704 million, diluted EPS grew 163% to $0.28, and adjusted operating margin reached 54%. The IPO price was $29 per share and the $330 million purchase was at $33, while the stock now trades near $54.50, a market cap of nearly $35 billion and about 39 times forward earnings. The article argues this reflects Buffett's principle of buying a wonderful company at a fair price, though the stock is no longer a bargain.
- Intel stock pops after JPMorgan gives a Neutral upgrade
JPMorgan (JPM) upgraded Intel (INTC) to Neutral from Underweight. The note points to improving execution under CEO Lip-Bu Tan, potential foundry customers for next-generation manufacturing, and rising earnings estimates for 2027 and 2028.
- BC-Gold Futures
AP's gold futures table (100 troy oz, USD per troy oz) as of 10:00 AM on Monday, October 19 shows the December 2026 contract trading at $4,169.50, down $11.60, with volume of 79,099 contracts versus 135,074 on Friday. The October 2026 contract rose $14.00 to $4,173.50, and open interest totaled 398,149 contracts, up 2,143.
- Intel leads chip stocks higher as investors jump back into AI trade
Chip stocks rebounded on Monday as investors bought the dip after last week's steep AI trade sell-off. The PHLX Semiconductor Index (^SOX) rose 2%, reversing a recent semiconductor rout. Intel (INTC) jumped 5% after JPMorgan upgraded the stock to Buy, citing "solid execution." Nvidia (NVDA) and AMD (AMD) also gained, while a Goldman Sachs upgrade of CoreWeave (CRWV) to Buy from Neutral helped lift AI sentiment. Arm Holdings (ARM), Micron Technology (MU) and SK Hynix (SKHY) also rebounded after sharp declines last week.
Get the briefing on Telegram or Zalo
Join the Upside Telegram channel or Zalo group for the Vietnam stocks and gold briefing at 8:00 and 19:00 (Vietnam time) on trading days, plus a weekly wrap on Saturday morning.