Sam Stovall: Fed is correct in staying on hold with rate cuts
Sam Stovall, CFRA Research Chief Investment Strategist, joins CNBC's 'Squawk on the Street' to discuss expectations for the Fed, market outlooks, and more.
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CNBC
4 minutes ago
- CNBC
Tech investor Prosus bets on India to produce a $100 billion company
India will produce a $100 billion tech company in the coming years, the CEO of Prosus told CNBC on Monday, as the firm bets on the country for its next big investment win. Prosus, which is majority owned by South African company Naspers, is one of the biggest tech investors in the world. The company is hoping it can replicate the success it saw with its return on Chinese social media and gaming giant Tencent. Prosus' parent company Naspers bought a near 50% holding in Tencent back in 2001 for around $32 million. That early stake in Tencent is now worth billions of dollars, with the WeChat operator valued at nearly $600 billion as of Monday. "The companies there [in India] are still small, our investment there is around $10 billion, as it was in China 14 years ago," Prosus CEO Fabricio Bloisi told CNBC. "What's the learning? We believe it's going to be, not a $20 billion company, but a $100 billion company, maybe [a] half a trillion dollar company in India. So we are not investing there to sell next month." Prosus has invested in some of the buzziest tech firms in India, including payments service PayU and e-commerce company Meesho. Prosus also owns just under 25% of food delivery firm Swiggy, which went public in November. Bloisi said listing Prosus' India investments are a key part of its strategy. He added that he expects five Indian companies that Prosus is invested in to carry out an initial public offering this year. "I think this is very good for India, because we have the local markets here investing in the local companies. This was critical for U.S., this was critical for China. I think if India can greater strong local markets investing in tech, it's going to be amazing for India," Bloisi said. Prosus has also been targeting big investments in Europe and the Latin America. The company's playbook revolves around the idea of ecosystems surrounding services, which Tencent managed to execute in China. Tencent runs China's biggest messaging app called WeChat, which integrates features like payments and the ability to hail taxis or order food. "We believe that we have ecosystems, just like we have in China in the U.S., like Microsoft or Uber or Google or Meta. They're not just one product. They have one product that enables cross-sell and technology shared between many other adjacencies. That's what we are doing," Bloisi said. In Latin America, Prosus has stakes in Brazilian food delivery firm iFood, online travel firm Despegar and online marketplace OLX Brasil. Bloisi said food delivery and payments are the foundation of their investments, followed by areas like e-commerce and experiences such as travel. "That's the kind of ecosystem we believe. We learned that from China, we are doing that in that in Latin America right now, very, very successfully," Bloisi said. In the meantime, Prosus this year made a proposal to acquire European food delivery giant Just Eat in an all-cash deal worth around 4.1 billion euros ($4.7 billion). Bloisi said Prosus on Monday officially began proceedings to seek permission from the European Commission to approve the deal. The Prosus CEO said he was "optimistic" that the European regulators will "approve it quickly."
Forbes
23 minutes ago
- Forbes
Mortgage Rates Today: June 23, 2025
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. Today, the mortgage interest rate on a 30-year fixed mortgage is 6.77%, according to the Mortgage Research Center, while the average rate on a 15-year mortgage is 5.77%. On a 30-year jumbo mortgage, the average rate is 7.01%. Borrowers will pay more in interest this week as the average rate on a 30-year mortgage is 6.77% compared to a rate of 6.75% a week ago. The APR , which includes the interest and all of the lender fees, on a 30-year, fixed-rate mortgage is 6.8%. The APR was 6.78% last week. To borrow a $100,000 in a 30-year, fixed-rate mortgage with the current rate of 6.77%, you will pay about $650 per month in principal and interest (taxes and fees not included), the Forbes Advisor mortgage calculator shows. You'd pay around $134,717 in total interest over the life of the loan. The average interest rate on a 15-year mortgage (fixed-rate) jumped up to 5.77%. This same time last week, the 15-year fixed-rate mortgage was at 5.74%. The APR on a 15-year fixed is 5.82%. It was 5.79% this time last week. At today's interest rate of 5.77%, a 15-year fixed-rate mortgage would cost approximately $832 per month in principal and interest per $100,000. You would pay around $50,149 in total interest over the life of the loan. On a 30-year jumbo mortgage (a mortgage above 2025's conforming loan limit of $806,500 in most areas), the average interest rate fell to 7.01%, lower than it was at this time last week. The average rate was 7.03% at this time last week. Borrowers with a 30-year fixed-rate jumbo mortgage with today's interest rate of 7.01% will pay $666 per month in principal and interest per $100,000. That means you'd pay approximately $140,162 in total interest over the life of the loan. Although mortgage rates mainly fell after reaching a high in spring 2024, they surged again in October 2024. This is despite the Federal Reserve's cuts to the federal funds rate (its benchmark interest rate) in September, November and December 2024. While rates have fallen somewhat since mid-January 2025, experts don't expect them to drop significantly anytime soon. Mortgage rates are influenced by various economic factors, making it difficult to predict when they will drop . Mortgage rates follow U.S. Treasury bond yields. When bond yields decrease, mortgage rates generally follow suit. The Federal Reserve's decisions and global events also play a key role in shaping mortgage rates. If inflation rises or the economy slows, the Fed may lower its federal funds rate. For example, during the Covid-19 pandemic, the Fed reduced rates, which drove interest rates to record lows. A significant drop in mortgage rates seems unlikely in the near future. However, they may decline if inflation eases or the economy weakens. To get an estimate of your mortgage costs, using a mortgage calculator can help. Simply input the following information: Home price Down payment amount Interest rate Loan term Taxes, insurance and any HOA fees Home loan borrowers can qualify for better mortgage rates by having good or excellent credit, maintaining a low debt-to-income (DTI) ratio and pursuing loan programs that don't charge mortgage insurance premiums or similar ongoing charges that increase the loan's APR . Comparing rates from different mortgage lenders is an excellent starting point. You may also compare conventional, first-time homebuyer and government-backed programs like FHA and VA loans, which have different rates and fees. Several economic factors influence the trajectory of rates for new home loans. For example, Federal Reserve rate hikes indirectly cause the interest rates for many long-term loans to increase. Rates are more likely to decrease when the Fed pauses or decreases its benchmark Federal Funds Rate. The inflation rate and the general state of the economy also impact interest rates. High inflation and a strong economy typically signal higher rates. Cooling consumer demand or inflation may lead to rate decreases. Conventional home loans are issued by private lenders and typically require good or excellent credit and a minimum 20% down payment to get the best rates. Some lenders offer first-time home buyer loans and grants with relaxed down payment requirements as low as 3%. For buyers with limited credit or finances, a government-backed loan is usually the better option as the minimum loan requirements are easier to satisfy. For example, FHA loans can require 3.5% down with a minimum credit score of 580 or at least 10% down with a credit score between 500 and 579. However, upfront and annual mortgage insurance premiums can apply for the life of the loan. Buyers in eligible rural areas with a moderate income or lower may also consider USDA loans. This program doesn't require a down payment, but you pay an upfront and annual guarantee fee for the life of the loan. If you come from a qualifying military background, VA loans can be your best option. First, you don't need to make a down payment in most situations. Second, borrowers pay a one-time funding fee but don't pay an annual fee as the FHA and USDA loan programs require. Frequently Asked Questions (FAQs) Comparing lenders and loan programs is an excellent start. Borrowers should also strive for a good or excellent credit score between 670 and 850 and a debt-to-income ratio of 43% or less. Further, making a minimum down payment of 20% on conventional mortgages can help you automatically waive private mortgage insurance premiums, which increases your borrowing costs. Buying discount points or lender credits can also reduce your interest rate. Lenders adjust mortgage rates daily based on economic conditions, inflation, bond market movements and Federal Reserve actions. If you're shopping around for a mortgage, remember that you might be able to lock in a rate for 30 up to 120 days, depending on the lender. Note that some lenders charge a fee to lock your rate while others offer the service for free. Choosing between a fixed- or adjustable-rate mortgage (ARM) depends on your financial situation. A fixed-rate mortgage suits those who want consistent monthly payments throughout the loan term without worrying about fluctuations in their rate or payments in response to market changes. If mortgage rates are low, securing a fixed rate can save you money in the long run. An ARM , on the other hand, may appeal to those who want a lower initial rate and monthly payment. However, you also run the risk of ending up with higher payments if your rate fluctuates. If you expect your income to rise, you may feel confident handling these potential payment increases. These mortgages can also work well for those who plan to live in a home for only a few years, as you might sell or move before the rate adjusts.
Yahoo
23 minutes ago
- Yahoo
One key thing investors needs to remember about the Fed
At its June meeting, Federal Reserve officials still forecasted two rate cuts in 2025. Principal Asset Management chief global strategist Seema Shah says that when it comes to the Fed, there is one key thing that investors need to keep in mind when it comes to the central bank. Find out what it is in the video above. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
