Here's a quick rundown of the top business stories making headlines today. From global market shifts to financial scams and government incentives, there's a lot to unpack.
Global Investment Flows Shifting Away From the US?
A potential tectonic shift in global investment is underway, with money flowing away from the United States. Several factors are contributing to this change, including a historic global trade war, a proposed $1.2 trillion European fiscal stimulus package (referred to as a "fiscal bazooka"), and China's emergence as a leader in the tech race. China has already begun implementing stimulus measures to cushion the impact of escalating trade tensions with the U.S.
This shift represents a significant turning point for investor capital and could have long-lasting implications for the global economy. "This is a wake-up call for investors who have relied on the US market for decades," says one analyst. "Diversification is key in this new landscape."
Canadian Scam Targets Elderly Americans
In a disturbing development, U.S. authorities have charged 25 Canadians in connection with a "grandparent scam" that allegedly defrauded elderly Americans out of more than US$21 million. The scam operated out of Montreal-area call centers, with suspects posing as grandchildren or other relatives of the victims.
Armed with spreadsheets containing personal information, the scammers targeted elderly individuals, preying on their emotions and vulnerabilities. The U.S. authorities are working to bring the perpetrators to justice and recover the stolen funds. Law enforcement urges families to educate their elderly relatives about these types of scams and to be vigilant against suspicious phone calls.
PLI Scheme Review: What's Next for Manufacturing?
The Production-Linked Incentive (PLI) scheme, designed to boost manufacturing, is under review after its initial five-year phase. The government is considering expanding the scheme's metrics beyond incremental sales to include factors such as domestic value addition and incremental exports. This move aims to further incentivize companies to strengthen local manufacturing capabilities and increase their contribution to the export market.
While discussions are ongoing at the inter-ministerial level, no final decision has been made yet. The outcome of this review could significantly impact the future of manufacturing in the country and attract further investment in the sector.
The PLI scheme is seen as a crucial component of the government's efforts to make the country a global manufacturing hub. Whether the incentives should be linked to metrics beyond incremental sales, such as domestic value addition and incremental exports, remains to be seen.