The Indian central bank raised its benchmark repo rate by 25 basis points to 5.5 percent on Wednesday, marking the first rise in nearly four years amid mounting inflation and strong economic growth. India has joined major central banks in raising rates as higher oil prices triggered by the Iran war fuel inflation, squeeze purchasing power and weigh on currencies. Weak monsoon rains linked to El Niño have compounded price pressures in Asia's third-largest economy. The six-member rate panel voted unanimously in favour of the rate hike. The monetary policy stance was changed to "calibrated tightening" from "neutral". It is clear that the outlook for inflation is no longer benign, Governor Sanjay Malhotra said in his policy address. Nearly 60 percent of economists in a Reuters poll expected a 25 bps increase in the repo rate. Consumer inflation accelerated in August to 4.82 percent from a year earlier, above the Reserve Bank of India's four percent medium-term target for a third consecutive month. Higher prices of fuel and food are now rippling through the economy with nearly half of the consumer basket seeing inflation above four percent. At the same time, economic growth remains strong, giving the central bank greater leeway to raise the cost of borrowing for consumers and businesses. GDP growth for the April-June quarter stood at 7.8 percent, well above the central bank's forecast of seven percent. (Reuters) Edited by Tony Sabine

Trading in local and regional markets was flat on Wednesday morning as investors turned their focus to the release of the Federal Reserve's September meeting minutes on Thursday. The Hang Seng Index lost 108 points, or 0.45 percent, to open at 24,172 points on Wednesday. The Nikkei Index in Japan was flat in early trading session, hovering around the 70,700 level. South Korean shares fell on Wednesday, as investors took a wait-and-see ⁠stance ahead of Samsung Electronics' earnings release to assess the outlook for AI demand. The benchmark Kospi was down 43 points, or 0.62 percent, at 6,898 during the morning trading session. Financial markets in Shanghai and Shenzhen were closed on Wednesday for the final day of the National Day Golden Week holiday. (Agencies) Edited by Tony Sabine

Paramount on Tuesday completed its takeover of Warner Bros Discovery, uniting two of Hollywood's most storied studios in a media empire spanning television, news and cinema under the control of David Ellison. The combined company, renamed Skydance, brings together Paramount Pictures and Warner Bros Pictures, the CBS News and CNN networks, and the HBO and CBS television brands. Ellison plans to eventually merge the Paramount+ and HBO Max streaming services. "Today is a historic day, not just for Skydance but for our entire industry," said Ellison. His ultra-wealthy family's ties to US President Donald Trump have raised concerns among critics that the new Hollywood giant will toe the White House line in its news coverage. "It's going to be a great company," Trump told reporters on Tuesday as he left the White House. The new company faces considerable challenges, with the entertainment industry in flux as streaming services and YouTube draw viewers away from traditional TV and movie theatre audiences dwindle. Skydance shares ended their first day trading down 2.7 percent on the New York Stock Exchange under the ticker "SKYD." The deal closed less than a week after a federal judge in California approved a settlement between Paramount and 12 US states that had sued to block the transaction on antitrust grounds. Paramount won a bidding war against Netflix in February for Warner Bros Discovery, and the Trump administration approved the deal, one of the largest-ever media mergers, in June without demanding a change to its business. Skydance, which will have nearly US$70 billion in annual revenue, said it is targeting more than US$6 billion in cost savings within three years. Ellison will serve as chairman and CEO, with former Mattel chief Ynon Kreiz as co-CEO in charge of day-to-day operations and integrating the two businesses. The deal was backed by US$47 billion in new equity led by the Ellison family, private equity firm RedBird Capital and the sovereign wealth funds of Saudi Arabia, Qatar and Abu Dhabi. David Ellison's father, billionaire Oracle founder Larry Ellison, provided major funding and a guarantee to lenders backing the deal. The Ellison family holds the largest equity stake in Skydance. Opponents in the movie industry said the combined company would slash jobs in a Hollywood already under pressure and reduce the number of films produced every year, while news media groups feared CNN's independence could be compromised. The settlement with the states includes several safeguards on these issues, including a board meant to protect CNN's editorial independence. (AFP) Edited by Cecil Wong