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China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years.&nbsp;The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations.<h2>How does collateralised lending work?</h2>Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders.&nbsp;“Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters.The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance.<h2>The numbers behind the debt trap</h2>Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years.<figure class="table"><table><tbody><tr><td>Year</td><td>Collateralised Loans (US$ bn)</td><td>Uncollateralised Loans (US$ bn)</td></tr><tr><td>2000</td><td>~1</td><td>~1</td></tr><tr><td>2005</td><td>~12</td><td>~9</td></tr><tr><td>2010</td><td>~70</td><td>~30</td></tr><tr><td>2014</td><td>~55</td><td>~25</td></tr><tr><td>2016</td><td>~50</td><td>~30</td></tr><tr><td>2020</td><td>~10</td><td>~15</td></tr></tbody></table></figure>Source: AidData / HCC; Graphic: Karin Strohecker via Reuters(All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study.<h2>Fiscal control versus Chinese leverage</h2>According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations.&nbsp;In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023.<h2>IMF, World Bank raise the red flag</h2>Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability.&nbsp;“The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters.<h2>A broader pattern of financial dominance</h2>This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse.&nbsp;In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms.For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public.&nbsp;With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms.&nbsp;(With inputs from the agencies) &nbsp;

By tying loans to oil, copper and other exports, China is locking key revenues offshore and tightening financial grip on low income, resource rich economies.

China’s increasing use of collateral to secure loans to emerging economies is eroding these countries’ ability to control their public finances, according to a new international study. By tying loans to revenues from commodities like oil and copper, and locking funds in offshore escrow accounts, Beijing has created what researchers call a “ring-fencing” mechanism, one that restricts debtor governments’ fiscal freedom for years. The study, published on Thursday by researchers from AidData, the Kiel Institute, and Georgetown University, reviewed over 900 publicly guaranteed loans extended by Chinese state-owned entities between 2000 and 2021. Of these, nearly half worth US $418 billion, were found to be collateralised, largely targeting low-income and resource-rich nations. How does collateralised lending work? Unlike typical sovereign loans, China’s collateralised lending structure uses commodity export revenues, such as oil, gas, or minerals, as guarantees. In many cases, borrower countries are required to deposit the proceeds from these exports into escrow accounts located in China, controlled directly by the lenders. “Some of these revenues remain offshore beyond the control of the borrowing government for many years,” the report noted, adding that the lack of access or transparency “compromises debtor governments’ ability to monitor and steer their fiscal affairs,” as quoted by Reuters. The practice is prevalent in China’s lending to countries across Africa, Asia, Latin America, and the Middle East, particularly in those facing economic distress or weak governance. The numbers behind the debt trap Between 2000 and 2021, China’s lending to the developing world surged dramatically, both in volume and in complexity. The bar graph below, sourced from AidData, shows how collateralised lending (orange bars) surged after the 2008 financial crisis and peaked again in 2014–2016, accounting for the majority of total lending in those years. Year Collateralised Loans (US$ bn) Uncollateralised Loans (US$ bn) 2000 ~1 ~1 2005 ~12 ~9 2010 ~70 ~30 2014 ~55 ~25 2016 ~50 ~30 2020 ~10 ~15 Source: AidData / HCC; Graphic: Karin Strohecker via Reuters (All figures in constant 2021 US dollars) Notably, the average collateralised loan locks up over 20 per cent of a country’s annual external debt repayments, restricting budgetary resources and access to alternative credit, as per the study. Fiscal control versus Chinese leverage According to Brad Parks, Executive Director of AidData, the report highlights a “previously undocumented pattern of revenue ring-fencing,” in which Chinese lenders gain first claim on national income streams, often at the expense of domestic public spending or creditor negotiations. In countries that later required debt restructuring, such as Zambia and Sri Lanka, China’s collateralised terms further complicated multilateral relief efforts, as Chinese banks refused to write down secured portions of the debt, as noted in the IMF-World Bank joint paper in 2023. IMF, World Bank raise the red flag Global financial institutions have expressed growing alarm. A 2023 paper by the IMF and World Bank warned that China’s practice increases the risk of over-borrowing, crowds out other unsecured creditors, and makes debt distress more likely, especially during commodity price shocks or political instability. “The collateral mechanism may appear commercially rational from a lender’s perspective, but it severely constrains sovereign fiscal space,” said one IMF official, as quoted by Reuters. A broader pattern of financial dominance This lending strategy is part of China’s broader transformation into a global creditor. According to the Financial Times, Beijing extended over US $1.34 trillion in overseas credit during 2000–2021, with a growing share dedicated to critical mineral extraction, infrastructure-for-resources deals, and bailout-style rescue loans to countries facing economic collapse. In fact, China provided US $240 billion in rescue financing to 22 countries between 2008 and 2021, positioning itself as a parallel lender of last resort to the IMF, albeit on very different terms. For emerging economies desperate for infrastructure and liquidity, China’s cash may offer a lifeline, but at a cost. The use of commodity-backed, collateralised loans gives Beijing preferential repayment rights and direct control over a borrower’s key revenue streams, often outside the purview of national parliaments or the public. With nearly half of China’s overseas loans now collateralised, and the debt burdens of many developing nations mounting, the study paints a troubling picture: a global financial system in which fiscal sovereignty is being steadily traded for short-term liquidity on China’s terms. (With inputs from the agencies)

China’s collateralised loans are eroding fiscal control in developing nations, warns major international study.

China’s collateralised lending traps emerging economies in debt control crisis, says study

The US Department of Commerce has issued new letters to top energy exporters Enterprise Products and Energy Transfer, easing, but not eliminating, the recently imposed restrictions on ethane exports to China. The letters, first reported by Reuters, authorise the companies to load ethane onto tankers and transport it toward China, but restrict unloading the cargo at Chinese ports without explicit government approval. The move marks a slight relaxation of the strict curbs introduced in late May and early June, which halted ethane shipments altogether and left multiple tankers stranded off the US coast.&nbsp;Enterprise and Energy Transfer, two of the largest US ethane exporters, had several ships stuck in limbo as inventories of the petroleum byproduct began to rise domestically. The letter from the Bureau of Industry and Security (BIS), a division of the Commerce Department, said, “This letter authorises Enterprise Products to load vessels with ethane, transport and anchor in foreign ports, even if... to a party located in China.”&nbsp; It added, “However, Enterprise Products may not complete such export... to a party that is located in China," without further authorisation.<h2>Strategic pressure, tactical pause</h2>The initial restrictions were part of the Trump administration’s broader strategy to counter China’s tightening grip on critical materials, particularly rare earth elements essential to US technology and defence industries. Days before imposing the ethane export restrictions, the administration also curbed US exports of chip design software, jet engines, and nuclear power components.With the petrochemical sector in China heavily reliant on US ethane, accounting for nearly half of all US exports of the gas, industry experts warned that the embargo could create major disruptions on both sides. Ethane is a key input for plastics and other petrochemical products, and China’s rapidly growing sector has made long-term bets on continued US supply.<h2>Risk still looms for shippers</h2>Despite the apparent policy softening, energy exporters remain cautious. While they are now allowed to load and dispatch vessels, they risk penalties as high as twice the value of a shipment if a vessel unloads ethane in China without prior authorisation.Experts say companies are unlikely to take the risk without clear indications that offloading will be permitted upon arrival. Although the 30-day transit time from Houston to China gives some room for potential policy shifts, particularly as negotiations between Washington and Beijing evolve.The ethane export curb came amid high-stakes trade talks, in which the US sought access to rare earth materials exports from China. In recent days, China has shown signs of compromise, granting export licences and pledging faster processing of applications. Observers believe the US may be using this partial relaxation on ethane as a bargaining chip to extract further concessions.

The companies in United States are now authorised to load ethane onto tankers and transport it toward China, but restrict unloading the cargo at Chinese ports without explicit government approval.

The US Department of Commerce has issued new letters to top energy exporters Enterprise Products and Energy Transfer, easing, but not eliminating, the recently imposed restrictions on ethane exports to China. The letters, first reported by Reuters, authorise the companies to load ethane onto tankers and transport it toward China, but restrict unloading the cargo at Chinese ports without explicit government approval. The move marks a slight relaxation of the strict curbs introduced in late May and early June, which halted ethane shipments altogether and left multiple tankers stranded off the US coast. Enterprise and Energy Transfer, two of the largest US ethane exporters, had several ships stuck in limbo as inventories of the petroleum byproduct began to rise domestically. The letter from the Bureau of Industry and Security (BIS), a division of the Commerce Department, said, “This letter authorises Enterprise Products to load vessels with ethane, transport and anchor in foreign ports, even if... to a party located in China.” It added, “However, Enterprise Products may not complete such export... to a party that is located in China," without further authorisation. Strategic pressure, tactical pause The initial restrictions were part of the Trump administration’s broader strategy to counter China’s tightening grip on critical materials, particularly rare earth elements essential to US technology and defence industries. Days before imposing the ethane export restrictions, the administration also curbed US exports of chip design software, jet engines, and nuclear power components. With the petrochemical sector in China heavily reliant on US ethane, accounting for nearly half of all US exports of the gas, industry experts warned that the embargo could create major disruptions on both sides. Ethane is a key input for plastics and other petrochemical products, and China’s rapidly growing sector has made long-term bets on continued US supply. Risk still looms for shippers Despite the apparent policy softening, energy exporters remain cautious. While they are now allowed to load and dispatch vessels, they risk penalties as high as twice the value of a shipment if a vessel unloads ethane in China without prior authorisation. Experts say companies are unlikely to take the risk without clear indications that offloading will be permitted upon arrival. Although the 30-day transit time from Houston to China gives some room for potential policy shifts, particularly as negotiations between Washington and Beijing evolve. The ethane export curb came amid high-stakes trade talks, in which the US sought access to rare earth materials exports from China. In recent days, China has shown signs of compromise, granting export licences and pledging faster processing of applications. Observers believe the US may be using this partial relaxation on ethane as a bargaining chip to extract further concessions.

The companies in United States are now authorised to load ethane onto tankers and transport it toward China, but restrict unloading the cargo at Chinese ports without explicit government approval.

US loosens ethane export ban to China; conditions applied

The strong partnership between Microsoft and OpenAI is under stress, as disagreements over a critical clause tied to artificial general intelligence (AGI) threaten to upend one of the most consequential relationships in the world of AI, The Information reported on June 25. At the heart of the dispute lies a provision in their multi-billion-dollar agreement that allows OpenAI to restrict Microsoft’s access to its technologies upon declaring the achievement of AGI. The clause, agreed upon in 2019 when AGI seemed like a distant possibility, is now being reconsidered as OpenAI executives, including CEO Sam Altman, believe the company is on the verge of reaching that milestone.&nbsp;Microsoft, which has invested over $10 billion into OpenAI and integrated its models into Azure and key software products, is demanding that the AGI clause be removed. OpenAI, however, has so far refused. Under the current agreement, OpenAI’s board can declare AGI in “good faith”, at which point Microsoft’s privileged access could be cut off. Microsoft chief executive Satya Nadella has publicly expressed scepticism over such a declaration, calling self-claimed AGI benchmarks “nonsensical”. The disagreement not only reflects diverging views on AGI itself but also highlights rising commercial tension between the two companies as OpenAI transitions toward a for-profit structure.<h2>Access, equity, and control</h2>The AGI clause is complicating OpenAI’s attempts to convert its for-profit arm into a public-benefit corporation, a move that requires Microsoft’s approval. Talks have dragged on for months, with both parties staking out hard positions. Microsoft is reportedly open to taking a 35 per cent equity stake in the new structure but insists on longer-term access to OpenAI’s intellectual property, even beyond any AGI declaration.The issue is further complicated by exclusivity clauses that currently prevent OpenAI from offering its tools to other cloud providers. Microsoft controls key aspects of OpenAI’s IP and hosts its models exclusively on Azure. If AGI, or what OpenAI calls “sufficient AGI”, is declared and Microsoft signs off, OpenAI would be allowed to license its models more broadly.For now, the talks continue, with both sides publicly projecting unity. “We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing, and we are optimistic we will continue to build together for years to come,” OpenAI and Microsoft said in a joint statement emailed to Reuters.

At the heart of the dispute lies a provision in their multi-billion-dollar agreement that allows OpenAI to restrict Microsoft’s access to its technologies upon declaring the achievement of AGI.

The strong partnership between Microsoft and OpenAI is under stress, as disagreements over a critical clause tied to artificial general intelligence (AGI) threaten to upend one of the most consequential relationships in the world of AI, The Information reported on June 25. At the heart of the dispute lies a provision in their multi-billion-dollar agreement that allows OpenAI to restrict Microsoft’s access to its technologies upon declaring the achievement of AGI. The clause, agreed upon in 2019 when AGI seemed like a distant possibility, is now being reconsidered as OpenAI executives, including CEO Sam Altman, believe the company is on the verge of reaching that milestone. Microsoft, which has invested over $10 billion into OpenAI and integrated its models into Azure and key software products, is demanding that the AGI clause be removed. OpenAI, however, has so far refused. Under the current agreement, OpenAI’s board can declare AGI in “good faith”, at which point Microsoft’s privileged access could be cut off. Microsoft chief executive Satya Nadella has publicly expressed scepticism over such a declaration, calling self-claimed AGI benchmarks “nonsensical”. The disagreement not only reflects diverging views on AGI itself but also highlights rising commercial tension between the two companies as OpenAI transitions toward a for-profit structure. Access, equity, and control The AGI clause is complicating OpenAI’s attempts to convert its for-profit arm into a public-benefit corporation, a move that requires Microsoft’s approval. Talks have dragged on for months, with both parties staking out hard positions. Microsoft is reportedly open to taking a 35 per cent equity stake in the new structure but insists on longer-term access to OpenAI’s intellectual property, even beyond any AGI declaration. The issue is further complicated by exclusivity clauses that currently prevent OpenAI from offering its tools to other cloud providers. Microsoft controls key aspects of OpenAI’s IP and hosts its models exclusively on Azure. If AGI, or what OpenAI calls “sufficient AGI”, is declared and Microsoft signs off, OpenAI would be allowed to license its models more broadly. For now, the talks continue, with both sides publicly projecting unity. “We have a long-term, productive partnership that has delivered amazing AI tools for everyone. Talks are ongoing, and we are optimistic we will continue to build together for years to come,” OpenAI and Microsoft said in a joint statement emailed to Reuters.

At the heart of the dispute lies a provision in their multi-billion-dollar agreement that allows OpenAI to restrict Microsoft’s access to its technologies upon declaring the achievement of AGI.

Microsoft and OpenAI clash over future control of advanced AI models

The US dollar slumped to its lowest level in over three years against the euro on Thursday, as financial markets reacted nervously to growing concerns over the future independence of the US Federal Reserve. The decline followed reports that President Donald Trump is considering replacing Fed Chair Jerome Powell ahead of the November elections, a move that analysts say could damage the credibility of US monetary policy.<h2>Dollar loses ground amid political interference fears</h2>The greenback slipped across major currencies, with the euro climbing 0.2 per cent to $1.1687, its strongest since October 2021, as per Reuters. Sterling also gained 0.2 per cent to $1.3690, the highest level since January 2022. The dollar index, which tracks the currency against six peers, dropped to 97.491, its lowest reading since early 2022.&nbsp;Market unease intensified after a Wall Street Journal report claimed that Trump was toying with the idea of announcing Powell’s replacement by September or October. Such a move, if seen as politically motivated, could undermine the Federal Reserve’s independence and complicate the central bank’s cautious approach to interest rate management.&nbsp;“Markets are likely to bristle at any early move to name Powell’s successor, particularly if the decision appears politically motivated,” said Kieran Williams, head of Asia FX at InTouch Capital Markets, as quoted by Reuters. “It could recalibrate rate expectations and trigger a reassessment of dollar positioning.”<h2>Rate cut bets increase as Fed–White House tensions escalate</h2>The possibility of political interference has fed into expectations of a more dovish stance from the Fed. Markets are now pricing in a 25 per cent chance of a rate cut at the central bank’s July meeting, up from just 12 per cent a week earlier, according to Reuters. Overall, traders are factoring in 64 basis points of rate cuts by the end of 2025, up from 46 basis points priced in last Friday.&nbsp;Trump’s criticism of Powell escalated on Wednesday, when he called the Fed Chair “terrible” for not slashing rates more aggressively. Meanwhile, Powell, testifying before the Senate defended the Fed’s cautious stance, highlighting risks to inflation from the President’s evolving tariff policies. The dollar weakened 0.2 per cent against the yen to 144.89 and fell to its lowest against the Swiss franc since 2011 at 0.8033. The franc also hit a record high against the yen, trading near 180.55, as per Reuters.<h2>Tariffs and recession fears weigh on dollar</h2>Trump’s shifting tariff policy is also driving renewed concern. With the President’s July 9 deadline for trade deals approaching, banks and investors are bracing for further disruptions. JPMorgan, in a note published on Wednesday, warned that higher tariffs could slow US economic growth and lift inflation, projecting a 40 per cent chance of a recession.&nbsp;“The risk of additional negative shocks is elevated,” JPMorgan analysts wrote, as quoted by Reuters. “We expect US tariff rates to move higher… and our baseline scenario incorporates the end of a phase of US exceptionalism.”&nbsp;The “end of US exceptionalism," a term referring to America’s post-2008 dominance in global growth and monetary stability has become a central narrative in the dollar’s decline. With investor confidence shaken by domestic political uncertainty and tariff-induced inflationary risks, the greenback’s appeal as the world’s safe haven currency is visibly eroding.<h2>Euro emerges stronger as Europe invests in stability</h2>The euro has emerged as one of the biggest beneficiaries of the dollar’s slide. Investor optimism is growing around Europe’s economic resilience, as governments ramp up investment in defence, infrastructure, and strategic autonomy.&nbsp;The resulting capital flows into European markets are further strengthening the euro’s appeal as a reserve asset, challenging the dollar’s long-held dominance. With the Fed’s next meeting looming, and US politics in flux, global investors are left weighing whether the era of American monetary stability is entering uncharted territory.&nbsp;(With inputs from the agencies) &nbsp;

Markets jitter as Trump mulls replacing Fed Chair Powell; dollar weakens amid rising recession fears and fading US policy credibility.

The US dollar slumped to its lowest level in over three years against the euro on Thursday, as financial markets reacted nervously to growing concerns over the future independence of the US Federal Reserve. The decline followed reports that President Donald Trump is considering replacing Fed Chair Jerome Powell ahead of the November elections, a move that analysts say could damage the credibility of US monetary policy. Dollar loses ground amid political interference fears The greenback slipped across major currencies, with the euro climbing 0.2 per cent to $1.1687, its strongest since October 2021, as per Reuters. Sterling also gained 0.2 per cent to $1.3690, the highest level since January 2022. The dollar index, which tracks the currency against six peers, dropped to 97.491, its lowest reading since early 2022. Market unease intensified after a Wall Street Journal report claimed that Trump was toying with the idea of announcing Powell’s replacement by September or October. Such a move, if seen as politically motivated, could undermine the Federal Reserve’s independence and complicate the central bank’s cautious approach to interest rate management. “Markets are likely to bristle at any early move to name Powell’s successor, particularly if the decision appears politically motivated,” said Kieran Williams, head of Asia FX at InTouch Capital Markets, as quoted by Reuters. “It could recalibrate rate expectations and trigger a reassessment of dollar positioning.” Rate cut bets increase as Fed–White House tensions escalate The possibility of political interference has fed into expectations of a more dovish stance from the Fed. Markets are now pricing in a 25 per cent chance of a rate cut at the central bank’s July meeting, up from just 12 per cent a week earlier, according to Reuters. Overall, traders are factoring in 64 basis points of rate cuts by the end of 2025, up from 46 basis points priced in last Friday. Trump’s criticism of Powell escalated on Wednesday, when he called the Fed Chair “terrible” for not slashing rates more aggressively. Meanwhile, Powell, testifying before the Senate defended the Fed’s cautious stance, highlighting risks to inflation from the President’s evolving tariff policies. The dollar weakened 0.2 per cent against the yen to 144.89 and fell to its lowest against the Swiss franc since 2011 at 0.8033. The franc also hit a record high against the yen, trading near 180.55, as per Reuters. Tariffs and recession fears weigh on dollar Trump’s shifting tariff policy is also driving renewed concern. With the President’s July 9 deadline for trade deals approaching, banks and investors are bracing for further disruptions. JPMorgan, in a note published on Wednesday, warned that higher tariffs could slow US economic growth and lift inflation, projecting a 40 per cent chance of a recession. “The risk of additional negative shocks is elevated,” JPMorgan analysts wrote, as quoted by Reuters. “We expect US tariff rates to move higher… and our baseline scenario incorporates the end of a phase of US exceptionalism.” The “end of US exceptionalism," a term referring to America’s post-2008 dominance in global growth and monetary stability has become a central narrative in the dollar’s decline. With investor confidence shaken by domestic political uncertainty and tariff-induced inflationary risks, the greenback’s appeal as the world’s safe haven currency is visibly eroding. Euro emerges stronger as Europe invests in stability The euro has emerged as one of the biggest beneficiaries of the dollar’s slide. Investor optimism is growing around Europe’s economic resilience, as governments ramp up investment in defence, infrastructure, and strategic autonomy. The resulting capital flows into European markets are further strengthening the euro’s appeal as a reserve asset, challenging the dollar’s long-held dominance. With the Fed’s next meeting looming, and US politics in flux, global investors are left weighing whether the era of American monetary stability is entering uncharted territory. (With inputs from the agencies)

US dollar sinks to multi-year lows as fears grow over Fed independence and Trump’s push to oust Powell.

Dollar hits 3-year low as Trump eyes Fed shake-up

Oil prices ticked up on Thursday after data showed a sharper-than-expected drop in US crude and gasoline inventories, underscoring strong fuel demand across the world’s largest economy. However, investor caution continues to cloud the market amid geopolitical uncertainty in West Asia and ambiguity surrounding future OPEC+ production policy, as per Reuters.<h2>US demand supports recovery</h2>Brent crude futures rose 12 cents to $67.80 per barrel in early Asian trade, while US West Texas Intermediate (WTI) gained 20 cents to reach $65.12. Both benchmarks had jumped nearly one per cent on Wednesday following signs of resilient demand from US consumers, as quoted by Reuters.Government data released by the Energy Information Administration (EIA) showed a significant drop of 5.8 million barrels in US crude inventories for the week ending June 20, well above analyst forecasts of a mere 797,000-barrel draw, according to Reuters.&nbsp;Gasoline inventories also fell sharply by 2.1 million barrels against expectations of a 381,000-barrel build. This coincided with a surge in fuel consumption, with gasoline supplied often used as a proxy for demand hitting its highest level since December 2021, as per EIA data cited by Reuters.“Some buyers are favouring solid demand indicated by falling inventories in US weekly statistics,” said Yuki Takashima, economist at Nomura Securities, as quoted by Reuters. He added that despite this bullish trend, “investors remain nervous, seeking clarity on the status of the Iran-Israel ceasefire”.<h2>Geopolitical jitters and OPEC+ decisions</h2>While tensions between Iran and Israel have eased following a US-brokered ceasefire, investors are watching closely for long-term diplomatic commitments. US President Donald Trump, in remarks on Wednesday, praised the cessation of hostilities but made it clear that Washington’s ‘maximum pressure’ campaign on Tehran, including oil sanctions remains in place, as per Reuters.&nbsp;However, Trump signalled a potential softening of enforcement, stating the US might allow limited leeway in oil transactions to help Iran “rebuild” its economy, provided talks on curbing its nuclear programme make progress, according to Reuters reporting.&nbsp;Market attention is also pivoting to production policy from the OPEC+ alliance. On Saturday, Rosneft CEO Igor Sechin suggested that the group, comprising the Organisation of the Petroleum Exporting Countries and allies like Russia could advance its planned production hikes by almost a year, as quoted by Reuters.Such a move could inject fresh supply into the market, potentially capping oil price gains just as seasonal summer demand strengthens.<h2>What's next?&nbsp;</h2>Analysts are split on where oil prices go next. Takashima of Nomura forecasts that WTI could stabilise back in the $60–$65 per barrel range, levels seen before the West Asia flare-up, as per Reuters.&nbsp;While physical demand remains strong, traders are closely monitoring upcoming US-Iran talks, any shifts in OPEC+ output strategy, and broader macroeconomic signals from top consumers like China and India.With West Asia still fragile and major producers walking a tightrope between market share and price stability, oil markets remain delicately balanced.&nbsp;(With inputs from the agencies)&nbsp;

Despite a bullish demand signal from the US, oil markets face volatility as traders weigh fragile West Asia peace and potential OPEC+ supply shifts.

Oil prices ticked up on Thursday after data showed a sharper-than-expected drop in US crude and gasoline inventories, underscoring strong fuel demand across the world’s largest economy. However, investor caution continues to cloud the market amid geopolitical uncertainty in West Asia and ambiguity surrounding future OPEC+ production policy, as per Reuters. US demand supports recovery Brent crude futures rose 12 cents to $67.80 per barrel in early Asian trade, while US West Texas Intermediate (WTI) gained 20 cents to reach $65.12. Both benchmarks had jumped nearly one per cent on Wednesday following signs of resilient demand from US consumers, as quoted by Reuters. Government data released by the Energy Information Administration (EIA) showed a significant drop of 5.8 million barrels in US crude inventories for the week ending June 20, well above analyst forecasts of a mere 797,000-barrel draw, according to Reuters. Gasoline inventories also fell sharply by 2.1 million barrels against expectations of a 381,000-barrel build. This coincided with a surge in fuel consumption, with gasoline supplied often used as a proxy for demand hitting its highest level since December 2021, as per EIA data cited by Reuters. “Some buyers are favouring solid demand indicated by falling inventories in US weekly statistics,” said Yuki Takashima, economist at Nomura Securities, as quoted by Reuters. He added that despite this bullish trend, “investors remain nervous, seeking clarity on the status of the Iran-Israel ceasefire”. Geopolitical jitters and OPEC+ decisions While tensions between Iran and Israel have eased following a US-brokered ceasefire, investors are watching closely for long-term diplomatic commitments. US President Donald Trump, in remarks on Wednesday, praised the cessation of hostilities but made it clear that Washington’s ‘maximum pressure’ campaign on Tehran, including oil sanctions remains in place, as per Reuters. However, Trump signalled a potential softening of enforcement, stating the US might allow limited leeway in oil transactions to help Iran “rebuild” its economy, provided talks on curbing its nuclear programme make progress, according to Reuters reporting. Market attention is also pivoting to production policy from the OPEC+ alliance. On Saturday, Rosneft CEO Igor Sechin suggested that the group, comprising the Organisation of the Petroleum Exporting Countries and allies like Russia could advance its planned production hikes by almost a year, as quoted by Reuters. Such a move could inject fresh supply into the market, potentially capping oil price gains just as seasonal summer demand strengthens. What's next? Analysts are split on where oil prices go next. Takashima of Nomura forecasts that WTI could stabilise back in the $60–$65 per barrel range, levels seen before the West Asia flare-up, as per Reuters. While physical demand remains strong, traders are closely monitoring upcoming US-Iran talks, any shifts in OPEC+ output strategy, and broader macroeconomic signals from top consumers like China and India. With West Asia still fragile and major producers walking a tightrope between market share and price stability, oil markets remain delicately balanced. (With inputs from the agencies)

Oil prices rise on strong US demand and inventory draw, but West Asia tensions and OPEC+ policy keep markets on edge.

Oil prices rise as US crude draw points to firm demand; West Asia risks still linger

An Essel Group company, Konti Infrapower and Multiventures, has moved the National Company Law Tribunal (NCLT) against Kotak Asset Management Company (AMC) over the asset management company’s failure to honour certain contractual obligations. Claiming dues to the tune of Rs 12.99 crore, the Essel Group entity has stated that Kotak AMC, as a corporate debtor, is yet to meet its financial obligations under an agreement dated April 6, 2019.“As the Corporate Debtor failed and neglected to honour its contractual obligations as given under Agreement dated 6th April 2019, the Applicant vide demand notice dated 19 February 2025, inter-alia called once again upon the Corporate Debtor to release the due amounts as a pro-tem measure. Till date, the Financial Creditor has not received payment from the Corporate Debtor,” reads the plea by Konti Infrapower and Multiventures.&nbsp;&nbsp;<h2>What is the plea about?</h2>&nbsp;The matter is related to the Rs 20-crore non-convertible debentures (NCDs) subscribed by Kotak AMC of Essel Group entities on the pledge of listed equity shares of Zee Entertainment Enterprises Limited (ZEEL), which in turn was the underlying security for the NCDs.The NCDs were sold by Kotak AMC to certain other investors in February 2019, and the advancement of Rs 12.99 crore was in relation to this part only. &nbsp;According to Konti Infrapower and Multiventures’ plea, certain obligations arose due to the NCD issue, for which, a sum of Rs 12.99 crore was advanced to Kotak AMC. Under the agreement, the Kotak group company was required to repay the amount to Konti Infrapower after the completion of the market regulator SEBI’s routine annual inspection. SEBI was due to issue its report after completing the routine annual inspection of Kotak AMC from April 2019 to March 2020. Further, the amounts advanced were to be refunded after unit holders of Kotak AMC were paid the amounts under the underlying NCDs. &nbsp;Konti Infrapower and Multiventures said it wrote two letters to Kotak AMC on July 6, 2022, for the release of the amounts as per the agreement, to which Kotak AMC replied on July 28, 2022, that the inspection of SEBI was not complete.&nbsp; &nbsp;According to the Essel Group company, SEBI’s inspection of Kotak AMC, which is the trigger point for the refund of its money, has been completed, and a report dated 28 March, 2023, has been prepared. Also, Kotak AMC liquidated its NCDs and repaid the unitholders. &nbsp;The next hearing in the matter is due on July 10. At the time of publishing this report, an email sent to Kotak AMC remained unanswered.

An Essel Group company has moved the National Company Law Tribunal (NCLT) against Kotak Asset Management Company, claiming dues of Rs 12.99 crore, citing the corporate debtor's failure to honour its contractual obligations in an agreement dated April 6, 2019.

An Essel Group company, Konti Infrapower and Multiventures, has moved the National Company Law Tribunal (NCLT) against Kotak Asset Management Company (AMC) over the asset management company’s failure to honour certain contractual obligations. Claiming dues to the tune of Rs 12.99 crore, the Essel Group entity has stated that Kotak AMC, as a corporate debtor, is yet to meet its financial obligations under an agreement dated April 6, 2019. “As the Corporate Debtor failed and neglected to honour its contractual obligations as given under Agreement dated 6th April 2019, the Applicant vide demand notice dated 19 February 2025, inter-alia called once again upon the Corporate Debtor to release the due amounts as a pro-tem measure. Till date, the Financial Creditor has not received payment from the Corporate Debtor,” reads the plea by Konti Infrapower and Multiventures. What is the plea about? The matter is related to the Rs 20-crore non-convertible debentures (NCDs) subscribed by Kotak AMC of Essel Group entities on the pledge of listed equity shares of Zee Entertainment Enterprises Limited (ZEEL), which in turn was the underlying security for the NCDs. The NCDs were sold by Kotak AMC to certain other investors in February 2019, and the advancement of Rs 12.99 crore was in relation to this part only. According to Konti Infrapower and Multiventures’ plea, certain obligations arose due to the NCD issue, for which, a sum of Rs 12.99 crore was advanced to Kotak AMC. Under the agreement, the Kotak group company was required to repay the amount to Konti Infrapower after the completion of the market regulator SEBI’s routine annual inspection. SEBI was due to issue its report after completing the routine annual inspection of Kotak AMC from April 2019 to March 2020. Further, the amounts advanced were to be refunded after unit holders of Kotak AMC were paid the amounts under the underlying NCDs. Konti Infrapower and Multiventures said it wrote two letters to Kotak AMC on July 6, 2022, for the release of the amounts as per the agreement, to which Kotak AMC replied on July 28, 2022, that the inspection of SEBI was not complete. According to the Essel Group company, SEBI’s inspection of Kotak AMC, which is the trigger point for the refund of its money, has been completed, and a report dated 28 March, 2023, has been prepared. Also, Kotak AMC liquidated its NCDs and repaid the unitholders. The next hearing in the matter is due on July 10. At the time of publishing this report, an email sent to Kotak AMC remained unanswered.

An Essel Group company has moved the National Company Law Tribunal (NCLT) against Kotak Asset Management Company, claiming dues of Rs 12.99 crore, citing the corporate debtor's failure to honour its contractual obligations in an agreement dated April 6, 2019.

Essel Group slams dishonest debtor Kotak AMC, drags it to NCLT for dishonouring contractual obligations

At the World Economic Forum’s Summer Davos in Tianjin, Chinese Premier Li Qiang made a bold pitch to global leaders and investors: China will not just remain a manufacturing behemoth—it is on course to become a “mega-sized consumption powerhouse”. His message comes at a time when China’s economy is battling soft consumer sentiment, deflationary trends, and intensifying global trade tensions.As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Li projected confidence in China’s ability to adapt. “China is positioned to cross cycles, move forward steadily, and inject stability into the world economy,” he said, without directly referencing tariffs or US tech curbs. Instead, he called for economic issues to be kept free from politicisation and reaffirmed China’s openness to global business.Li’s remarks align with Beijing’s broader pivot this year toward stimulating domestic demand as a long-term growth driver. That shift has gained urgency with falling exports, growing protectionism abroad, and weak post-pandemic household spending.<h2>Beijing unleashes financial tools to spur spending</h2>In parallel to Li’s speech, six of China’s top government agencies released a sweeping set of guidelines aimed at using financial tools to unlock consumer demand. The policies focus on improving access to credit, raising incomes, and building confidence across the consumption chain—from manufacturing to services.As part of a broader effort to boost domestic demand, Chinese government agencies jointly announced 19 targeted measures to strengthen financial support for consumption. Some of these measures are that banks will be encouraged to innovate credit products and expand loan access to households and consumer-focused businesses, while financial institutions will be urged to improve their internal systems to deliver more efficient consumer financing. The People’s Bank of China (PBOC) will utilise tools such as relending, rediscounting, and open market operations to lower overall financing costs. Additionally, eligible companies in the consumption sector will be supported in raising capital through initial public offerings (IPOs), bond issuance, exchange-traded funds (ETFs), and real estate investment trusts (REITs).The central bank also unveiled a 500 billion yuan ($69.7 billion) relending facility to support elderly care and services consumption, underscoring efforts to target both demographic and sectoral trends.Meanwhile, a government-subsidised trade-in programme for home appliances and electronics is enjoying robust uptake, with some provinces already exhausting allocated funds. The remaining 138 billion yuan (around $19.2 billion) is now being redistributed to ensure nationwide coverage.<h2>Challenges persist: deflation, caution, and global scepticism</h2>Despite strong retail numbers in May and the government spending hitting a three-year high in the first five months, the road to consumption-led growth won’t be easy. China’s consumer price index has declined year-on-year for four straight months, reflecting persistent deflationary pressure and subdued sentiment. Households remain cautious, particularly in light of a sluggish property market and employment concerns. To counter these issues, the government is allowing local governments to borrow more, while the PBOC has trimmed benchmark interest rates and mortgage rates to ease financial pressure.Trade tensions remain another risk factor. While China and the US reached a fragile tariff truce in May, friction continues over rare earths, semiconductors, and tech access. In Europe, calls for tougher stances on China are growing ahead of a critical July summit.Still, Li expressed optimism that the global economic centre of gravity is shifting toward the Global South, citing rising trade momentum in developing nations. He also highlighted China’s multilateral diplomacy push, pointing to the recent establishment of the International Organization for Mediation in Hong Kong with 32 other countries.China is making a concerted effort to reposition its economy from an export-driven model to one that leans heavily on domestic consumption. While the transformation is far from complete, recent policy moves suggest a high-level commitment to this structural pivot.

As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Chinese Premier Li Qiang projected confidence in China’s ability to adapt.

At the World Economic Forum’s Summer Davos in Tianjin, Chinese Premier Li Qiang made a bold pitch to global leaders and investors: China will not just remain a manufacturing behemoth—it is on course to become a “mega-sized consumption powerhouse”. His message comes at a time when China’s economy is battling soft consumer sentiment, deflationary trends, and intensifying global trade tensions. As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Li projected confidence in China’s ability to adapt. “China is positioned to cross cycles, move forward steadily, and inject stability into the world economy,” he said, without directly referencing tariffs or US tech curbs. Instead, he called for economic issues to be kept free from politicisation and reaffirmed China’s openness to global business. Li’s remarks align with Beijing’s broader pivot this year toward stimulating domestic demand as a long-term growth driver. That shift has gained urgency with falling exports, growing protectionism abroad, and weak post-pandemic household spending. Beijing unleashes financial tools to spur spending In parallel to Li’s speech, six of China’s top government agencies released a sweeping set of guidelines aimed at using financial tools to unlock consumer demand. The policies focus on improving access to credit, raising incomes, and building confidence across the consumption chain—from manufacturing to services. As part of a broader effort to boost domestic demand, Chinese government agencies jointly announced 19 targeted measures to strengthen financial support for consumption. Some of these measures are that banks will be encouraged to innovate credit products and expand loan access to households and consumer-focused businesses, while financial institutions will be urged to improve their internal systems to deliver more efficient consumer financing. The People’s Bank of China (PBOC) will utilise tools such as relending, rediscounting, and open market operations to lower overall financing costs. Additionally, eligible companies in the consumption sector will be supported in raising capital through initial public offerings (IPOs), bond issuance, exchange-traded funds (ETFs), and real estate investment trusts (REITs). The central bank also unveiled a 500 billion yuan ($69.7 billion) relending facility to support elderly care and services consumption, underscoring efforts to target both demographic and sectoral trends. Meanwhile, a government-subsidised trade-in programme for home appliances and electronics is enjoying robust uptake, with some provinces already exhausting allocated funds. The remaining 138 billion yuan (around $19.2 billion) is now being redistributed to ensure nationwide coverage. Challenges persist: deflation, caution, and global scepticism Despite strong retail numbers in May and the government spending hitting a three-year high in the first five months, the road to consumption-led growth won’t be easy. China’s consumer price index has declined year-on-year for four straight months, reflecting persistent deflationary pressure and subdued sentiment. Households remain cautious, particularly in light of a sluggish property market and employment concerns. To counter these issues, the government is allowing local governments to borrow more, while the PBOC has trimmed benchmark interest rates and mortgage rates to ease financial pressure. Trade tensions remain another risk factor. While China and the US reached a fragile tariff truce in May, friction continues over rare earths, semiconductors, and tech access. In Europe, calls for tougher stances on China are growing ahead of a critical July summit. Still, Li expressed optimism that the global economic centre of gravity is shifting toward the Global South, citing rising trade momentum in developing nations. He also highlighted China’s multilateral diplomacy push, pointing to the recent establishment of the International Organization for Mediation in Hong Kong with 32 other countries. China is making a concerted effort to reposition its economy from an export-driven model to one that leans heavily on domestic consumption. While the transformation is far from complete, recent policy moves suggest a high-level commitment to this structural pivot.

As countries shift focus inward and trade frictions multiply, particularly with the US and parts of Europe, Chinese Premier Li Qiang projected confidence in China’s ability to adapt.

China doubles down on domestic demand to power economic growth

The US Federal Reserve has officially removed “reputational risk” from its supervisory guidelines for banks, a move widely seen as a turning point for the cryptocurrency industry. This decision, echoed by similar actions from the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), is expected to unlock long-denied access to banking services for crypto firms long sidelined by regulatory caution. Until now, banks were often hesitant to engage with digital asset businesses due to the perceived damage to their reputation.&nbsp;The unwritten rule led to many crypto companies being “debanked”, a practice criticised by lawmakers and industry players as stifling innovation and undermining financial inclusivity. The Fed’s updated policy pivots towards a more evidence-based risk assessment framework, focusing on financial stability and compliance rather than subjective public perception. While banks can still internally consider reputational risk, it will no longer play a role in supervisory evaluations.<h2>Crypto inches into traditional finance</h2>This regulatory rethink arrives just as traditional finance is showing growing interest in crypto integration. Major institutions such as Mastercard are rolling out hybrid offerings that blend fiat and stablecoin use under a single user interface. Mastercard’s “One Credential” feature, for example, allows consumers to spend both traditional and digital currencies seamlessly through one card.The timing couldn’t be better for crypto investors. With global interest in digital assets rising, Bitcoin has outperformed traditional asset classes over the past decade. A recent survey shows that over 70 per cent of crypto investors use it as a hedge against inflation, while more than 60 per cent report feeling more financially hopeful than before.Data from 2024 underscores this momentum. Over 88,000 individuals became crypto millionaires globally in the past year. Meanwhile, Bitcoin and Ethereum have posted double-digit returns, even amid geopolitical shocks like US airstrikes in Iran a few days ago, which triggered temporary volatility.The global crypto market has bounced back, with market capitalisation rising 3 per cent to $3.3 trillion following the Fed’s announcement. Though interest rates remain unchanged for now, a potential rate cut in July could further buoy crypto valuations.<h2>Can volatile wealth buy peace of mind?</h2>Yet, as crypto becomes more mainstream, a new narrative is emerging, one that grapples with the emotional toll of living in a volatile wealth system. While some investors enjoy financial freedom and autonomy, others face growing stress. The same market that mints millionaires can just as easily erase life savings overnight.Retail investors report heightened financial anxiety during downturns, and crypto-related thefts topped $2 billion in 2024 alone. The risks are real, and the pressure to stay ahead, technologically and financially, is constant.As crypto becomes part of daily financial life, from shopping with stablecoins to accessing blockchain-based lending, the big question remains: can digital money buy real happiness? The answer is complicated. While crypto may offer a lifeline in a crumbling economic environment, it also demands resilience, vigilance, and above all, balance.

The Fed’s decision to strip out reputational risk from bank oversight marks a significant step in bridging the gap between crypto and traditional finance.

The US Federal Reserve has officially removed “reputational risk” from its supervisory guidelines for banks, a move widely seen as a turning point for the cryptocurrency industry. This decision, echoed by similar actions from the Office of the Comptroller of the Currency (OCC) and the Federal Deposit Insurance Corporation (FDIC), is expected to unlock long-denied access to banking services for crypto firms long sidelined by regulatory caution. Until now, banks were often hesitant to engage with digital asset businesses due to the perceived damage to their reputation. The unwritten rule led to many crypto companies being “debanked”, a practice criticised by lawmakers and industry players as stifling innovation and undermining financial inclusivity. The Fed’s updated policy pivots towards a more evidence-based risk assessment framework, focusing on financial stability and compliance rather than subjective public perception. While banks can still internally consider reputational risk, it will no longer play a role in supervisory evaluations. Crypto inches into traditional finance This regulatory rethink arrives just as traditional finance is showing growing interest in crypto integration. Major institutions such as Mastercard are rolling out hybrid offerings that blend fiat and stablecoin use under a single user interface. Mastercard’s “One Credential” feature, for example, allows consumers to spend both traditional and digital currencies seamlessly through one card. The timing couldn’t be better for crypto investors. With global interest in digital assets rising, Bitcoin has outperformed traditional asset classes over the past decade. A recent survey shows that over 70 per cent of crypto investors use it as a hedge against inflation, while more than 60 per cent report feeling more financially hopeful than before. Data from 2024 underscores this momentum. Over 88,000 individuals became crypto millionaires globally in the past year. Meanwhile, Bitcoin and Ethereum have posted double-digit returns, even amid geopolitical shocks like US airstrikes in Iran a few days ago, which triggered temporary volatility. The global crypto market has bounced back, with market capitalisation rising 3 per cent to $3.3 trillion following the Fed’s announcement. Though interest rates remain unchanged for now, a potential rate cut in July could further buoy crypto valuations. Can volatile wealth buy peace of mind? Yet, as crypto becomes more mainstream, a new narrative is emerging, one that grapples with the emotional toll of living in a volatile wealth system. While some investors enjoy financial freedom and autonomy, others face growing stress. The same market that mints millionaires can just as easily erase life savings overnight. Retail investors report heightened financial anxiety during downturns, and crypto-related thefts topped $2 billion in 2024 alone. The risks are real, and the pressure to stay ahead, technologically and financially, is constant. As crypto becomes part of daily financial life, from shopping with stablecoins to accessing blockchain-based lending, the big question remains: can digital money buy real happiness? The answer is complicated. While crypto may offer a lifeline in a crumbling economic environment, it also demands resilience, vigilance, and above all, balance.

The Fed’s decision to strip out reputational risk from bank oversight marks a significant step in bridging the gap between crypto and traditional finance.

Crypto finds new ground as Fed lifts reputational risk barrier

Tesla’s grip on the European electric vehicle (EV) market continues to weaken, with its sales in the region falling sharply in May, even as the broader auto market staged a modest recovery driven by hybrids and more affordable electric options available. According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla’s new registrations in the EU, UK, and EFTA countries dropped 27.9 per cent year-on-year in May to just 13,863 vehicles. This marks the fifth consecutive monthly decline for the American EV company in one of its most important overseas markets.&nbsp;Year-to-date, Tesla’s sales in Europe are down a steep 37.1 per cent compared to 2024. This downturn comes against a backdrop of improving overall auto sales in the region. New-car registrations rose 1.9 per cent in May from a year earlier, reaching 1.11 million units. The growth was driven by strong performances in key markets like Germany, Spain, and the UK, even as France dragged on the total. But Tesla’s decline stands in stark contrast to the broader EV segment, which remains one of the fastest-growing categories.<h2>Rivals gain, Tesla falls behind</h2>Battery-electric vehicle (BEV) sales in Europe surged 27.2 per cent year-on-year in May to nearly 193,500 units, raising their share to 17 per cent of the overall market. Hybrids, particularly plug-in variants, also posted strong gains. Plug-in hybrid sales soared by 46 per cent to over 100,000 units, reflecting growing consumer preference for alternatives that offer electric range without full reliance on charging infrastructure.Chinese automakers, led by BYD and SAIC’s MG brand, are rapidly filling the space left by Tesla’s shrinking footprint. Chinese brands more than doubled their share of the EU market to 5.9 per cent in May from 2.9 per cent a year earlier, registering over 65,800 vehicles across 28 European markets, according to JATO Dynamics.The rise of Chinese players has come despite steep EU tariffs imposed on Chinese-made electric vehicles. Companies like BYD have swiftly responded to the tariffs by pivoting toward hybrids and gasoline-powered models, which are exempt from the tariffs. The result, BYD electric vehicles outsold Tesla in Europe in April and nearly matched it in May.Tesla’s challenges are compounded by an ageing product lineup. Its flagship Model Y and Model 3 face growing competition from newer, cheaper alternatives with more up-to-date technology. European carmakers such as Volkswagen, Renault, and Stellantis are also ramping up their EV offerings, further squeezing Tesla’s market share.Tesla’s European market share has dropped from 1.8 per cent to just 1.2 per cent, underscoring the scale of its retreat. In Germany, Europe’s largest car market, Tesla sales were down more than one-third compared to the same month last year, despite an overall rise in EV sales. The gap is especially stark when compared to BYD, whose sales in Germany have increased ninefold.<h2>Price, politics, and production challenges</h2>Several factors are contributing to Tesla’s decline in Europe. Price remains a major hurdle. While Tesla has adjusted pricing several times, its vehicles still sit above the entry-level EVs and hybrids now flooding the market. Moreover, the cost advantage of EVs is diluted in countries where charging infrastructure remains underdeveloped or electricity costs are high, pushing buyers toward hybrids.Consumer perception is another issue. Tesla CEO Elon Musk’s vocal political affiliations, particularly his public support for far-right parties in Germany, France, and the UK, have drawn backlash from European consumers. The brand has faced increasing resistance, with reports of buyer boycotts and a souring public image, especially in progressive urban markets that were once key Tesla strongholds.Production location also matters. Chinese competitors are moving quickly to sidestep tariffs by building factories in Europe. BYD, for example, plans to begin manufacturing vehicles in Hungary and Turkey by 2026, which will exempt them from EU import duties and likely lead to even lower retail prices. Tesla, in contrast, continues to rely heavily on its Shanghai Gigafactory for European supply, subjecting it to additional tariffs on Chinese-made vehicles.<h2>EU market shifts, Tesla’s path forward</h2>While Tesla’s position weakens, the European auto market is undergoing a transformation. Sales of petrol and diesel cars fell 19.5 per cent and 27.6 per cent, respectively, in May. The momentum is clearly with electrified vehicles, both pure EVs and hybrids, which are benefiting from consumer incentives, regulatory pressure, and greater model diversity.Volkswagen Group, which includes Audi, Skoda, and Seat, remains dominant with a 28 per cent EU market share. Stellantis, despite recent struggles, holds 16 per cent. Tesla, by contrast, is becoming a niche player. Legacy brands are also benefiting from updated models and aggressive pricing, areas where Tesla’s innovation cadence has slowed.Tesla’s focus appears to be shifting toward future technology bets like autonomous driving and robotaxi services, as seen in its recent launch of a fully driverless service in Austin, Texas. But for now, in Europe, Tesla’s decline is stark amid regulatory complexity, political optics, and fierce competition.

May sales of Tesl plunge 27.9 per cent as EV competition intensifies and consumer sentiment shifts. The company will need more than just software to reverse its fortunes in the world’s most competitive EV battleground.

Tesla’s grip on the European electric vehicle (EV) market continues to weaken, with its sales in the region falling sharply in May, even as the broader auto market staged a modest recovery driven by hybrids and more affordable electric options available. According to data from the European Automobile Manufacturers’ Association (ACEA), Tesla’s new registrations in the EU, UK, and EFTA countries dropped 27.9 per cent year-on-year in May to just 13,863 vehicles. This marks the fifth consecutive monthly decline for the American EV company in one of its most important overseas markets. Year-to-date, Tesla’s sales in Europe are down a steep 37.1 per cent compared to 2024. This downturn comes against a backdrop of improving overall auto sales in the region. New-car registrations rose 1.9 per cent in May from a year earlier, reaching 1.11 million units. The growth was driven by strong performances in key markets like Germany, Spain, and the UK, even as France dragged on the total. But Tesla’s decline stands in stark contrast to the broader EV segment, which remains one of the fastest-growing categories. Rivals gain, Tesla falls behind Battery-electric vehicle (BEV) sales in Europe surged 27.2 per cent year-on-year in May to nearly 193,500 units, raising their share to 17 per cent of the overall market. Hybrids, particularly plug-in variants, also posted strong gains. Plug-in hybrid sales soared by 46 per cent to over 100,000 units, reflecting growing consumer preference for alternatives that offer electric range without full reliance on charging infrastructure. Chinese automakers, led by BYD and SAIC’s MG brand, are rapidly filling the space left by Tesla’s shrinking footprint. Chinese brands more than doubled their share of the EU market to 5.9 per cent in May from 2.9 per cent a year earlier, registering over 65,800 vehicles across 28 European markets, according to JATO Dynamics. The rise of Chinese players has come despite steep EU tariffs imposed on Chinese-made electric vehicles. Companies like BYD have swiftly responded to the tariffs by pivoting toward hybrids and gasoline-powered models, which are exempt from the tariffs. The result, BYD electric vehicles outsold Tesla in Europe in April and nearly matched it in May. Tesla’s challenges are compounded by an ageing product lineup. Its flagship Model Y and Model 3 face growing competition from newer, cheaper alternatives with more up-to-date technology. European carmakers such as Volkswagen, Renault, and Stellantis are also ramping up their EV offerings, further squeezing Tesla’s market share. Tesla’s European market share has dropped from 1.8 per cent to just 1.2 per cent, underscoring the scale of its retreat. In Germany, Europe’s largest car market, Tesla sales were down more than one-third compared to the same month last year, despite an overall rise in EV sales. The gap is especially stark when compared to BYD, whose sales in Germany have increased ninefold. Price, politics, and production challenges Several factors are contributing to Tesla’s decline in Europe. Price remains a major hurdle. While Tesla has adjusted pricing several times, its vehicles still sit above the entry-level EVs and hybrids now flooding the market. Moreover, the cost advantage of EVs is diluted in countries where charging infrastructure remains underdeveloped or electricity costs are high, pushing buyers toward hybrids. Consumer perception is another issue. Tesla CEO Elon Musk’s vocal political affiliations, particularly his public support for far-right parties in Germany, France, and the UK, have drawn backlash from European consumers. The brand has faced increasing resistance, with reports of buyer boycotts and a souring public image, especially in progressive urban markets that were once key Tesla strongholds. Production location also matters. Chinese competitors are moving quickly to sidestep tariffs by building factories in Europe. BYD, for example, plans to begin manufacturing vehicles in Hungary and Turkey by 2026, which will exempt them from EU import duties and likely lead to even lower retail prices. Tesla, in contrast, continues to rely heavily on its Shanghai Gigafactory for European supply, subjecting it to additional tariffs on Chinese-made vehicles. EU market shifts, Tesla’s path forward While Tesla’s position weakens, the European auto market is undergoing a transformation. Sales of petrol and diesel cars fell 19.5 per cent and 27.6 per cent, respectively, in May. The momentum is clearly with electrified vehicles, both pure EVs and hybrids, which are benefiting from consumer incentives, regulatory pressure, and greater model diversity. Volkswagen Group, which includes Audi, Skoda, and Seat, remains dominant with a 28 per cent EU market share. Stellantis, despite recent struggles, holds 16 per cent. Tesla, by contrast, is becoming a niche player. Legacy brands are also benefiting from updated models and aggressive pricing, areas where Tesla’s innovation cadence has slowed. Tesla’s focus appears to be shifting toward future technology bets like autonomous driving and robotaxi services, as seen in its recent launch of a fully driverless service in Austin, Texas. But for now, in Europe, Tesla’s decline is stark amid regulatory complexity, political optics, and fierce competition.

May sales of Tesl plunge 27.9 per cent as EV competition intensifies and consumer sentiment shifts. The company will need more than just software to reverse its fortunes in the world’s most competitive EV battleground.

Europe hits the brakes on Tesla as Chinese rivals and hybrids surge

As global uncertainty surrounding the US dollar rises, China is ramping up efforts to promote the yuan (RMB) as a viable alternative in global trade, investment, and reserves. The latest policy moves are part of Beijing’s long-term push for “yuan internationalisation” and come at a moment when central banks, investors, and governments are actively rethinking their exposure to the greenback. With the dollar facing multiple headwinds, ranging from erratic US policy under President Donald Trump to mounting geopolitical tensions and market volatility, China’s leadership is eyeing the opportunity to position its currency more centrally in the global financial system.<h2>A multi-pronged strategy to globalise the yuan</h2>In recent months, China has launched a series of targeted measures aimed at increasing the use of the yuan internationally. These include expanding foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures and options contracts, and launching initiatives to facilitate cross-border yuan transactions.Three major Chinese commodity exchanges—Shanghai, Dalian, and Zhengzhou—recently added 16 new derivatives contracts for foreign institutional investors, covering key commodities like rubber, lead, and tin. Meanwhile, the Shanghai Futures Exchange is working on a proposal to allow foreign currencies as collateral for yuan-settled trades.China’s central bank, the People’s Bank of China (PBOC), also plans to set up an international centre for digital yuan operations in Shanghai. This would support broader usage of China’s digital currency, which has been gradually introduced as an alternative to physical cash.Further steps include easing restrictions on foreign participation in ETF options trading and waiving certain fees for global institutions accessing Chinese bond markets. In parallel, China’s Cross-Border Interbank Payment System (CIPS)—its alternative to SWIFT (Society for Worldwide Interbank Financial Telecommunications)—has been expanding its reach, with more offshore yuan clearing centres and growing acceptance in emerging markets.<h2>Yuan gains appeal, but obstacles remain</h2>Despite growing enthusiasm, structural hurdles continue to limit the yuan’s global appeal. China maintains capital controls that restrict the free flow of money in and out of the country, and its financial markets are not as deep or transparent as those in the US. As of May, the yuan accounted for just 2.89 per cent of global payments, down from the previous month, according to SWIFT. It ranks sixth in international currency usage, far behind the US dollar’s 48.46 per cent and the euro’s 23.56 per cent.Moreover, in terms of foreign exchange reserves, the yuan currently accounts for only 2.2 per cent of global holdings. That said, its use in China’s own cross-border transactions has overtaken the dollar, with yuan settlement in goods trade reaching 26 per cent in May and forecasted to hit 40 per cent by year-end, according to analysts.<h2>Global reserve managers shift away from the dollar</h2>According to a new report by the Official Monetary and Financial Institutions Forum (OMFIF), global central banks are increasingly diversifying away from the dollar. The survey of 75 central banks managing $5 trillion showed that one-third plan to increase gold holdings over the next two years, while interest in the dollar has dropped sharply. The dollar fell to seventh place in the ranking of preferred reserve assets, with 70 per cent of central banks citing the US political climate as a deterrent.The euro and yuan are seen as the biggest beneficiaries. A net 16 per cent of respondents said they plan to increase euro holdings in the near term, while 30 per cent expect to increase yuan reserves over the next decade, potentially tripling its share to around 6 per cent.<h2>Europe’s rising role and yuan’s long-term potential</h2>While the euro is gaining short-term favour, the yuan is emerging as a longer-term contender. Several central banks and sovereign wealth funds are now revisiting their reserve compositions, considering diversification not just for yield but for geopolitical risk mitigation.China’s push for de-dollarisation aligns with a broader trend in Asia, where countries are reducing their reliance on the US dollar amid shifting trade alliances and regional economic integration. China has promoted bilateral trade settlements in yuan, especially in energy and commodities, and subsidised loans in offshore yuan to encourage adoption.Despite economic headwinds such as slower growth and deflationary pressures, analysts say continued reform and financial market liberalisation could gradually enhance the yuan’s credibility. While it may not dethrone the dollar any time soon, the Chinese currency is steadily carving out a more prominent place in the evolving global monetary system.

China has launched a series of targeted measures aimed at increasing the use of the yuan internationally including expansion of foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures, and facilitating cross-border yuan transactions.

As global uncertainty surrounding the US dollar rises, China is ramping up efforts to promote the yuan (RMB) as a viable alternative in global trade, investment, and reserves. The latest policy moves are part of Beijing’s long-term push for “yuan internationalisation” and come at a moment when central banks, investors, and governments are actively rethinking their exposure to the greenback. With the dollar facing multiple headwinds, ranging from erratic US policy under President Donald Trump to mounting geopolitical tensions and market volatility, China’s leadership is eyeing the opportunity to position its currency more centrally in the global financial system. A multi-pronged strategy to globalise the yuan In recent months, China has launched a series of targeted measures aimed at increasing the use of the yuan internationally. These include expanding foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures and options contracts, and launching initiatives to facilitate cross-border yuan transactions. Three major Chinese commodity exchanges—Shanghai, Dalian, and Zhengzhou—recently added 16 new derivatives contracts for foreign institutional investors, covering key commodities like rubber, lead, and tin. Meanwhile, the Shanghai Futures Exchange is working on a proposal to allow foreign currencies as collateral for yuan-settled trades. China’s central bank, the People’s Bank of China (PBOC), also plans to set up an international centre for digital yuan operations in Shanghai. This would support broader usage of China’s digital currency, which has been gradually introduced as an alternative to physical cash. Further steps include easing restrictions on foreign participation in ETF options trading and waiving certain fees for global institutions accessing Chinese bond markets. In parallel, China’s Cross-Border Interbank Payment System (CIPS)—its alternative to SWIFT (Society for Worldwide Interbank Financial Telecommunications)—has been expanding its reach, with more offshore yuan clearing centres and growing acceptance in emerging markets. Yuan gains appeal, but obstacles remain Despite growing enthusiasm, structural hurdles continue to limit the yuan’s global appeal. China maintains capital controls that restrict the free flow of money in and out of the country, and its financial markets are not as deep or transparent as those in the US. As of May, the yuan accounted for just 2.89 per cent of global payments, down from the previous month, according to SWIFT. It ranks sixth in international currency usage, far behind the US dollar’s 48.46 per cent and the euro’s 23.56 per cent. Moreover, in terms of foreign exchange reserves, the yuan currently accounts for only 2.2 per cent of global holdings. That said, its use in China’s own cross-border transactions has overtaken the dollar, with yuan settlement in goods trade reaching 26 per cent in May and forecasted to hit 40 per cent by year-end, according to analysts. Global reserve managers shift away from the dollar According to a new report by the Official Monetary and Financial Institutions Forum (OMFIF), global central banks are increasingly diversifying away from the dollar. The survey of 75 central banks managing $5 trillion showed that one-third plan to increase gold holdings over the next two years, while interest in the dollar has dropped sharply. The dollar fell to seventh place in the ranking of preferred reserve assets, with 70 per cent of central banks citing the US political climate as a deterrent. The euro and yuan are seen as the biggest beneficiaries. A net 16 per cent of respondents said they plan to increase euro holdings in the near term, while 30 per cent expect to increase yuan reserves over the next decade, potentially tripling its share to around 6 per cent. Europe’s rising role and yuan’s long-term potential While the euro is gaining short-term favour, the yuan is emerging as a longer-term contender. Several central banks and sovereign wealth funds are now revisiting their reserve compositions, considering diversification not just for yield but for geopolitical risk mitigation. China’s push for de-dollarisation aligns with a broader trend in Asia, where countries are reducing their reliance on the US dollar amid shifting trade alliances and regional economic integration. China has promoted bilateral trade settlements in yuan, especially in energy and commodities, and subsidised loans in offshore yuan to encourage adoption. Despite economic headwinds such as slower growth and deflationary pressures, analysts say continued reform and financial market liberalisation could gradually enhance the yuan’s credibility. While it may not dethrone the dollar any time soon, the Chinese currency is steadily carving out a more prominent place in the evolving global monetary system.

China has launched a series of targeted measures aimed at increasing the use of the yuan internationally including expansion of foreign access to domestic financial markets, allowing qualified institutional investors to trade more futures, and facilitating cross-border yuan transactions.

China accelerates yuan push as US dollar dominance faces growing challenges

US stock markets rallied for a second consecutive session on June 24, with major indices climbing more than 1 per cent as investors welcomed signs of de-escalation in West Asia and parsed Federal Reserve Chair Jerome Powell’s testimony for insights into future interest rate policy. A tentative ceasefire between Iran and Israel, following US attacks on Iranian nuclear facilities, helped fuel optimism, even as geopolitical instability remained. Asian markets also reacted positively to the truce between Iran and Israel and falling oil prices.The Nasdaq 100 surged 1.5 per cent to close at a record 22,190.52, beating the previous high it hit on February 19. The broader Nasdaq Composite rose 1.43 per cent, while the S&amp;P 500 gained 1.11 per cent, ending the day just under 1 per cent from its own record close. The Dow Jones Industrial Average jumped 507 points, or 1.19 per cent, to 43,089.02.Tech stocks led the charge, with the “Magnificent Seven” megacaps mostly advancing. Nvidia climbed 2.6 per cent, Microsoft hit a new record high, and Alphabet, Amazon, and Meta each rose about 2 per cent. Tesla lagged, falling 2.4 per cent, while Apple dropped 0.6 per cent. Semiconductor stocks soared, with AMD and Intel up more than 6 per cent and Broadcom gaining nearly 4 per cent after an upgrade from HSBC. Energy stocks, however, slumped as crude prices retreated for a second day. West Texas Intermediate (WTI) fell 6 per cent on June 24, as the risk of a major oil supply disruption receded, but it rebounded more than 1 per cent on June 25. The S&amp;P 500 Energy Index declined 1.5 per cent.Meanwhile, Powell reiterated to Congress that the Federal Reserve is in no rush to cut rates, saying policymakers are prepared to wait for more clarity on inflation and economic conditions before adjusting their stance. Markets are currently pricing in about an 18 per cent chance of a rate cut in July, with expectations for a higher likelihood in September.Despite Powell’s cautious tone, weaker-than-expected consumer confidence data reinforced the market’s belief that a rate cut is increasingly likely later this year. Confidence in the job market has fallen to its lowest since March 2021.<h2>Dollar softens, bond yields ease</h2>The dollar slipped to multi-week lows on June 24 as investors reacted to Powell’s remarks and lower oil prices, which eased inflation concerns. The US dollar index edged down 0.1 per cent to 97.854, while the euro rose 0.1 per cent to $1.1625, its highest level since late 2021. The yen strengthened slightly, with the dollar slipping to 144.70 yen. US Treasury yields also declined, with the two-year yield falling to 3.787 per cent, its lowest since early May, as investors adjusted their expectations for future monetary policy.<h2>Asian equities steady as West Asia tensions cool</h2>Asian markets steadied, supported by the tentative truce between Iran and Israel and easing oil prices. Japan’s Nikkei and Australia’s ASX200 were flat, while Taiwan’s benchmark index gained 1 per cent. Hong Kong’s Hang Seng rose 0.6 per cent, while mainland China’s CSI300 dipped slightly.Investors now await key US data later in the week, including the final estimate for first-quarter GDP and the closely watched Personal Consumption Expenditures (PCE) report, which could provide further clues about inflation trends and consumer health.

Nasdaq 100 hits record high; S&P 500 nears all-time high. Dollar slips; Asian markets stabilise amid easing tensions in West Asia.

US stock markets rallied for a second consecutive session on June 24, with major indices climbing more than 1 per cent as investors welcomed signs of de-escalation in West Asia and parsed Federal Reserve Chair Jerome Powell’s testimony for insights into future interest rate policy. A tentative ceasefire between Iran and Israel, following US attacks on Iranian nuclear facilities, helped fuel optimism, even as geopolitical instability remained. Asian markets also reacted positively to the truce between Iran and Israel and falling oil prices. The Nasdaq 100 surged 1.5 per cent to close at a record 22,190.52, beating the previous high it hit on February 19. The broader Nasdaq Composite rose 1.43 per cent, while the S&P 500 gained 1.11 per cent, ending the day just under 1 per cent from its own record close. The Dow Jones Industrial Average jumped 507 points, or 1.19 per cent, to 43,089.02. Tech stocks led the charge, with the “Magnificent Seven” megacaps mostly advancing. Nvidia climbed 2.6 per cent, Microsoft hit a new record high, and Alphabet, Amazon, and Meta each rose about 2 per cent. Tesla lagged, falling 2.4 per cent, while Apple dropped 0.6 per cent. Semiconductor stocks soared, with AMD and Intel up more than 6 per cent and Broadcom gaining nearly 4 per cent after an upgrade from HSBC. Energy stocks, however, slumped as crude prices retreated for a second day. West Texas Intermediate (WTI) fell 6 per cent on June 24, as the risk of a major oil supply disruption receded, but it rebounded more than 1 per cent on June 25. The S&P 500 Energy Index declined 1.5 per cent. Meanwhile, Powell reiterated to Congress that the Federal Reserve is in no rush to cut rates, saying policymakers are prepared to wait for more clarity on inflation and economic conditions before adjusting their stance. Markets are currently pricing in about an 18 per cent chance of a rate cut in July, with expectations for a higher likelihood in September. Despite Powell’s cautious tone, weaker-than-expected consumer confidence data reinforced the market’s belief that a rate cut is increasingly likely later this year. Confidence in the job market has fallen to its lowest since March 2021. Dollar softens, bond yields ease The dollar slipped to multi-week lows on June 24 as investors reacted to Powell’s remarks and lower oil prices, which eased inflation concerns. The US dollar index edged down 0.1 per cent to 97.854, while the euro rose 0.1 per cent to $1.1625, its highest level since late 2021. The yen strengthened slightly, with the dollar slipping to 144.70 yen. US Treasury yields also declined, with the two-year yield falling to 3.787 per cent, its lowest since early May, as investors adjusted their expectations for future monetary policy. Asian equities steady as West Asia tensions cool Asian markets steadied, supported by the tentative truce between Iran and Israel and easing oil prices. Japan’s Nikkei and Australia’s ASX200 were flat, while Taiwan’s benchmark index gained 1 per cent. Hong Kong’s Hang Seng rose 0.6 per cent, while mainland China’s CSI300 dipped slightly. Investors now await key US data later in the week, including the final estimate for first-quarter GDP and the closely watched Personal Consumption Expenditures (PCE) report, which could provide further clues about inflation trends and consumer health.

Nasdaq 100 hits record high; S&amp;P 500 nears all-time high. Dollar slips; Asian markets stabilise amid easing tensions in West Asia

Wall Street surges as ceasefire eases tensions, Powell signals patience on rates

Oil prices inched higher on June 25 after two days of sharp declines, as markets assessed the durability of a ceasefire between Iran and Israel and the broader implications for global crude supply. Brent crude futures rose by 75 cents, or 1.1 per cent, to $67.89 a barrel, while US West Texas Intermediate (WTI) crude gained 71 cents, or 1.1 per cent, to $65.08. The fragile truce between Iran and Israel, brokered by US President Donald Trump, brought a temporary pause to hostilities following nearly two weeks of conflict that had briefly spiked oil prices to five-month highs.&nbsp;The uptick follows a steep fall earlier in the week, when Brent settled at its lowest level since June 10 and WTI since June 5—dates that predated Israel’s surprise attack on Iran on June 13. Oil markets had surged briefly after the US joined the conflict with targeted strikes on three nuclear facilities in Iran over the weekend. However, investor fears of a wider supply disruption quickly eased after the announcement of a ceasefire.<h2>Oil outlook hangs on the thread of hope</h2>Though the US strikes were intended to curb Iran’s nuclear capabilities, a preliminary intelligence assessment suggested the facilities would only be set back by a few months. Still, both Tehran and Tel Aviv have since signalled a halt to direct air assaults, raising hopes for a period of calm.Despite this, tensions remain high in the region. Violations of the ceasefire have been reported, prompting the White House to issue renewed calls for restraint. Of particular concern to investors is the Strait of Hormuz—a narrow waterway between Iran and Oman through which nearly 20 per cent of global crude and fuel flows. Any disruption there could have major implications for global energy security.India, which relies on imports for over 85 per cent of its crude requirements—36 per cent of which passes through the Strait—welcomed the de-escalation. The Ministry of External Affairs called for diplomacy and dialogue, offering to support efforts to ensure lasting peace.Data from the American Petroleum Institute (API) on June 24 showed that US inventories shrank nearly 4.3 million barrels in the previous week (ended June 20), beating the expectations for a draw of 0.6 million barrels. Outsized draws in US inventories helped spur some confidence in fuel demand, which was seen picking up sharply with the summer season.This follows a 10.1 million barrel draw from the week before, pointing to quickly tightening US oil stockpiles. The API data usually heralds a similar trend from official inventory data, which is due later on today (June 25).

The fragile truce between Iran and Israel, brokered by US President Donald Trump, brought a temporary pause to hostilities following nearly two weeks of conflict that had briefly spiked oil prices to five-month highs.

Oil prices inched higher on June 25 after two days of sharp declines, as markets assessed the durability of a ceasefire between Iran and Israel and the broader implications for global crude supply. Brent crude futures rose by 75 cents, or 1.1 per cent, to $67.89 a barrel, while US West Texas Intermediate (WTI) crude gained 71 cents, or 1.1 per cent, to $65.08. The fragile truce between Iran and Israel, brokered by US President Donald Trump, brought a temporary pause to hostilities following nearly two weeks of conflict that had briefly spiked oil prices to five-month highs. The uptick follows a steep fall earlier in the week, when Brent settled at its lowest level since June 10 and WTI since June 5—dates that predated Israel’s surprise attack on Iran on June 13. Oil markets had surged briefly after the US joined the conflict with targeted strikes on three nuclear facilities in Iran over the weekend. However, investor fears of a wider supply disruption quickly eased after the announcement of a ceasefire. Oil outlook hangs on the thread of hope Though the US strikes were intended to curb Iran’s nuclear capabilities, a preliminary intelligence assessment suggested the facilities would only be set back by a few months. Still, both Tehran and Tel Aviv have since signalled a halt to direct air assaults, raising hopes for a period of calm. Despite this, tensions remain high in the region. Violations of the ceasefire have been reported, prompting the White House to issue renewed calls for restraint. Of particular concern to investors is the Strait of Hormuz—a narrow waterway between Iran and Oman through which nearly 20 per cent of global crude and fuel flows. Any disruption there could have major implications for global energy security. India, which relies on imports for over 85 per cent of its crude requirements—36 per cent of which passes through the Strait—welcomed the de-escalation. The Ministry of External Affairs called for diplomacy and dialogue, offering to support efforts to ensure lasting peace. Data from the American Petroleum Institute (API) on June 24 showed that US inventories shrank nearly 4.3 million barrels in the previous week (ended June 20), beating the expectations for a draw of 0.6 million barrels. Outsized draws in US inventories helped spur some confidence in fuel demand, which was seen picking up sharply with the summer season. This follows a 10.1 million barrel draw from the week before, pointing to quickly tightening US oil stockpiles. The API data usually heralds a similar trend from official inventory data, which is due later on today (June 25).

The fragile truce between Iran and Israel, brokered by US President Donald Trump, brought a temporary pause to hostilities following nearly two weeks of conflict that had briefly spiked oil prices to five-month highs.

Oil prices rebound slightly as markets eye fragile Iran-Israel ceasefire

Foreign direct investment (FDI) in the US fell significantly in the first quarter of 2025, dropping to $52.8 billion from a revised $79.9 billion in the fourth quarter of 2024. The decline reflects mounting business uncertainty surrounding President Donald Trump’s proposed tariff plans. As companies navigate potential trade disruptions, FDI has experienced a sharp slowdown, reaching its lowest point since the fourth quarter of 2022. Economists believe the drop is temporary, pointing to several large foreign investments that are expected to boost FDI in the coming quarters.&nbsp;Notably, Japanese steelmaker Nippon Steel’s $14.9 billion acquisition of US Steel, which closed recently, is expected to positively impact FDI figures in future reports. In addition, foreign automakers like South Korea’s Hyundai Motor and Hyundai Steel have pledged $21 billion in new manufacturing investments in the United States, likely to influence FDI inflows over the next few months.<h2>Trade deficit widens as US businesses front-load imports</h2>The sharp decline in FDI coincided with a widening of the US current account deficit, which reached a record $450.2 billion in the first quarter of this year. According to the Commerce Department’s Bureau of Economic Analysis, this was partly driven by businesses increasing their imports ahead of the application of Trump’s tariff hikes. The US current account data measures the flow of goods, services, and investments into and out of the country, and a large trade deficit is typically offset by foreign investments in US assets.Despite the uncertainty, Paul Ashworth, chief North American economist at Capital Economics, told Reuters that FDI figures can be volatile due to one-off transactions, including mergers and acquisitions. He cautioned that the first-quarter dip might not indicate a larger, long-term trend and noted that FDI is likely to rebound as foreign manufacturing projects get underway.&nbsp;While the near-term outlook for US FDI is influenced by tariff-related uncertainty, the broader trend remains positive as foreign companies continue to commit to US manufacturing. Analysts expect FDI to pick up again, driving economic growth in the second half of the year. (With inputs from agencies)

The decline in US FDI reflects mounting business uncertainty surrounding President Donald Trump’s proposed tariff plans. The sharp drop in FDI has pushed it to its lowest point since the fourth quarter of 2022.

Foreign direct investment (FDI) in the US fell significantly in the first quarter of 2025, dropping to $52.8 billion from a revised $79.9 billion in the fourth quarter of 2024. The decline reflects mounting business uncertainty surrounding President Donald Trump’s proposed tariff plans. As companies navigate potential trade disruptions, FDI has experienced a sharp slowdown, reaching its lowest point since the fourth quarter of 2022. Economists believe the drop is temporary, pointing to several large foreign investments that are expected to boost FDI in the coming quarters. Notably, Japanese steelmaker Nippon Steel’s $14.9 billion acquisition of US Steel, which closed recently, is expected to positively impact FDI figures in future reports. In addition, foreign automakers like South Korea’s Hyundai Motor and Hyundai Steel have pledged $21 billion in new manufacturing investments in the United States, likely to influence FDI inflows over the next few months. Trade deficit widens as US businesses front-load imports The sharp decline in FDI coincided with a widening of the US current account deficit, which reached a record $450.2 billion in the first quarter of this year. According to the Commerce Department’s Bureau of Economic Analysis, this was partly driven by businesses increasing their imports ahead of the application of Trump’s tariff hikes. The US current account data measures the flow of goods, services, and investments into and out of the country, and a large trade deficit is typically offset by foreign investments in US assets. Despite the uncertainty, Paul Ashworth, chief North American economist at Capital Economics, told Reuters that FDI figures can be volatile due to one-off transactions, including mergers and acquisitions. He cautioned that the first-quarter dip might not indicate a larger, long-term trend and noted that FDI is likely to rebound as foreign manufacturing projects get underway. While the near-term outlook for US FDI is influenced by tariff-related uncertainty, the broader trend remains positive as foreign companies continue to commit to US manufacturing. Analysts expect FDI to pick up again, driving economic growth in the second half of the year. (With inputs from agencies)

The decline in US FDI reflects mounting business uncertainty surrounding President Donald Trump’s proposed tariff plans. The sharp drop in FDI has pushed it to its lowest point since the fourth quarter of 2022.

US foreign direct investment drops sharply in Q1 2025 amid tariff uncertainty

Indian benchmark indices ended marginally higher on June 24 in a volatile trading session that was dominated by sharp intra-day swings and conflicting geopolitical cues. Both the Sensex and Nifty saw dramatic reversals after coming close to 2025 highs in early trade, only to retreat as fresh hostilities flared between Iran and Israel. The BSE Sensex closed 158 points higher at 82,055, while the NSE Nifty 50 rose 72 points to settle above the 25,000-mark at 25,044.&nbsp;&nbsp;However, both indices gave up significant portions of their early gains. The Sensex had surged over 1,122 points to hit 83,018, while the Nifty climbed 346 points to reach 25,317, buoyed by global optimism following the announcement of a ceasefire by US President Donald Trump.&nbsp;<h2>Geopolitical reversal stalls rally</h2>&nbsp;The early rally mirrored strength in global markets, falling crude prices, and improved risk sentiment after Trump brokered a temporary ceasefire between Iran and Israel. Oil prices sank to a two-week low, with Brent crude falling to $69 a barrel—a major piece of good news for oil-import-dependent India. Domestic airline and paint stocks like IndiGo and Asian Paints rose, while OMCs like BPCL and HPCL also gained.&nbsp;However, optimism faded swiftly after reports emerged that Iran had launched fresh missile strikes on Israel, violating the ceasefire. Israel responded with a threat of “high-intensity strikes” on Tehran. The market reacted sharply—the Sensex plunged more than 1,100 points from the day’s peak, while the Nifty fell over 270 points from its intra-day high. Adding to the volatility was the weekly derivatives expiry, further intensifying intraday fluctuations.&nbsp;<h2>Sectoral moves, broader market strength</h2>&nbsp;Despite the volatility, broader market indices outperformed. The Nifty Midcap index gained 416 points to close at 58,822, while the Nifty Smallcap also posted gains. On the sectoral front, except Oil &amp; Gas and Media, all other indices ended in the green.&nbsp;Nifty PSU Bank emerged as the top gainer, driven by strong performances from Canara Bank, Union Bank, Indian Overseas Bank, and UCO Bank. Other sectoral indices, including Nifty Metal, Auto, FMCG, Pharma, Realty, and Consumer Durables, rose up to 1 per cent.&nbsp;Among individual stocks, Adani Ports, Tata Steel, UltraTech Cement, Kotak Mahindra Bank, and Titan led the gains on the Sensex. On the flip side, Power Grid, Trent, NTPC, HCL Tech, and Maruti were among the top laggards. Defence stocks, including BEL and Garden Reach Shipbuilders, witnessed profit-booking and fell sharply after outperforming in the past few sessions.&nbsp;Meanwhile, the rupee posted its best session in a month, rising 75 paise to 86.03 (provisional) against the dollar, supported by lower crude prices and improved global sentiment.&nbsp;Analysts caution that geopolitical tensions and global uncertainty could continue to influence market sentiment. While the ceasefire had briefly revived risk appetite, its fragile nature and broader macro concerns, including US trade policy and upcoming Q1 earnings, are likely to keep traders on edge.

The BSE Sensex closed 158 points higher at 82,055, while the NSE Nifty 50 rose 72 points to settle above the 25,000-mark at 25,044. 

Indian benchmark indices ended marginally higher on June 24 in a volatile trading session that was dominated by sharp intra-day swings and conflicting geopolitical cues. Both the Sensex and Nifty saw dramatic reversals after coming close to 2025 highs in early trade, only to retreat as fresh hostilities flared between Iran and Israel. The BSE Sensex closed 158 points higher at 82,055, while the NSE Nifty 50 rose 72 points to settle above the 25,000-mark at 25,044. However, both indices gave up significant portions of their early gains. The Sensex had surged over 1,122 points to hit 83,018, while the Nifty climbed 346 points to reach 25,317, buoyed by global optimism following the announcement of a ceasefire by US President Donald Trump. Geopolitical reversal stalls rally The early rally mirrored strength in global markets, falling crude prices, and improved risk sentiment after Trump brokered a temporary ceasefire between Iran and Israel. Oil prices sank to a two-week low, with Brent crude falling to $69 a barrel—a major piece of good news for oil-import-dependent India. Domestic airline and paint stocks like IndiGo and Asian Paints rose, while OMCs like BPCL and HPCL also gained. However, optimism faded swiftly after reports emerged that Iran had launched fresh missile strikes on Israel, violating the ceasefire. Israel responded with a threat of “high-intensity strikes” on Tehran. The market reacted sharply—the Sensex plunged more than 1,100 points from the day’s peak, while the Nifty fell over 270 points from its intra-day high. Adding to the volatility was the weekly derivatives expiry, further intensifying intraday fluctuations. Sectoral moves, broader market strength Despite the volatility, broader market indices outperformed. The Nifty Midcap index gained 416 points to close at 58,822, while the Nifty Smallcap also posted gains. On the sectoral front, except Oil & Gas and Media, all other indices ended in the green. Nifty PSU Bank emerged as the top gainer, driven by strong performances from Canara Bank, Union Bank, Indian Overseas Bank, and UCO Bank. Other sectoral indices, including Nifty Metal, Auto, FMCG, Pharma, Realty, and Consumer Durables, rose up to 1 per cent. Among individual stocks, Adani Ports, Tata Steel, UltraTech Cement, Kotak Mahindra Bank, and Titan led the gains on the Sensex. On the flip side, Power Grid, Trent, NTPC, HCL Tech, and Maruti were among the top laggards. Defence stocks, including BEL and Garden Reach Shipbuilders, witnessed profit-booking and fell sharply after outperforming in the past few sessions. Meanwhile, the rupee posted its best session in a month, rising 75 paise to 86.03 (provisional) against the dollar, supported by lower crude prices and improved global sentiment. Analysts caution that geopolitical tensions and global uncertainty could continue to influence market sentiment. While the ceasefire had briefly revived risk appetite, its fragile nature and broader macro concerns, including US trade policy and upcoming Q1 earnings, are likely to keep traders on edge.

The BSE Sensex closed 158 points higher at 82,055, while the NSE Nifty 50 rose 72 points to settle above the 25,000-mark at 25,044.

Markets close higher but trim sharp early gains amid Iran-Israel tensions

Uber and Alphabet’s autonomous driving arm, Waymo, have officially launched public robotaxi rides in Atlanta, expanding their partnership to a second US city after Austin, Texas. Beginning from June 24, Atlanta residents can now hail fully driverless, all-electric Jaguar I-PACE vehicles equipped with Waymo’s proprietary self-driving technology directly through the Uber app. The service rollout covers a 65-square-mile area encompassing major neighbourhoods like Downtown, Buckhead, and Capitol View, though the robotaxis will not yet travel on highways or to the airport. Initially operating with a small fleet, the companies aim to gradually scale operations to hundreds of vehicles, following the Austin model.&nbsp;Rides in a Waymo robotaxi will be priced the same as UberX, Uber Comfort, or Uber Comfort Electric, and no tipping will be prompted for driverless rides. Customers can opt into autonomous rides in the Uber app’s Ride Preferences section, improving their odds of being matched with one of Waymo’s vehicles.<h2>What is different from Tesla?</h2>Unlike Tesla’s pilot robotaxi service recently launched in Austin, Waymo's robotaxis in Atlanta operate fully autonomously with no human safety driver on board. The vehicles use a mix of lidar, radar, and camera sensors, a technology that Tesla currently does not use. Waymo's vehicles also feature in-car screens that allow riders to unlock doors, open trunks, and begin trips directly or through the Uber app. In contrast, Tesla's pilot service uses Model Y vehicles in a limited geofenced area with a valet in the front passenger seat for safety. Tesla’s invite-only service runs only during daytime hours.Uber, which once ran its own self-driving division before selling it in 2020 after a high-profile pedestrian fatality in Arizona, now works with over a dozen autonomous tech companies, including Waymo and China’s WeRide. The company says it has reached an annual run rate of 1.5 million robotaxi and delivery robot trips on its network.While Waymo One, Waymo’s standalone ride-hailing app, is operational in cities like San Francisco and Los Angeles, it won’t be used in Atlanta. Instead, passengers will be directed exclusively to Uber’s app. The Atlanta launch comes 283 days after Uber and Waymo first identified the city as a future site and just months after driverless testing began in January 2025, followed by early rider trials in May.<h2>Autonomous future accelerates</h2>The race to dominate the autonomous ride-hailing sector is heating up. Waymo now conducts over 250,000 rides weekly across its four active markets: San Francisco, Los Angeles, Phoenix, and Austin. It has also applied for testing permits in New York City and plans to launch in Miami and Washington, D.C.Atlanta’s debut comes at a pivotal moment, as autonomous technology increasingly moves from experimental to operational. Uber shares rose 2.75 per cent in premarket trading following the announcement, reflecting investor optimism around the potential of self-driving mobility.With safety and scalability at the forefront, both companies are betting on consumer adoption, regulatory approval, and sustained investment to accelerate their robotaxi ambitions.

The robotaxi service will initially operating with a small fleet, the companies aim to gradually scale operations to hundreds of vehicles, following the Austin model. 

Uber and Alphabet’s autonomous driving arm, Waymo, have officially launched public robotaxi rides in Atlanta, expanding their partnership to a second US city after Austin, Texas. Beginning from June 24, Atlanta residents can now hail fully driverless, all-electric Jaguar I-PACE vehicles equipped with Waymo’s proprietary self-driving technology directly through the Uber app. The service rollout covers a 65-square-mile area encompassing major neighbourhoods like Downtown, Buckhead, and Capitol View, though the robotaxis will not yet travel on highways or to the airport. Initially operating with a small fleet, the companies aim to gradually scale operations to hundreds of vehicles, following the Austin model. Rides in a Waymo robotaxi will be priced the same as UberX, Uber Comfort, or Uber Comfort Electric, and no tipping will be prompted for driverless rides. Customers can opt into autonomous rides in the Uber app’s Ride Preferences section, improving their odds of being matched with one of Waymo’s vehicles. What is different from Tesla? Unlike Tesla’s pilot robotaxi service recently launched in Austin, Waymo's robotaxis in Atlanta operate fully autonomously with no human safety driver on board. The vehicles use a mix of lidar, radar, and camera sensors, a technology that Tesla currently does not use. Waymo's vehicles also feature in-car screens that allow riders to unlock doors, open trunks, and begin trips directly or through the Uber app. In contrast, Tesla's pilot service uses Model Y vehicles in a limited geofenced area with a valet in the front passenger seat for safety. Tesla’s invite-only service runs only during daytime hours. Uber, which once ran its own self-driving division before selling it in 2020 after a high-profile pedestrian fatality in Arizona, now works with over a dozen autonomous tech companies, including Waymo and China’s WeRide. The company says it has reached an annual run rate of 1.5 million robotaxi and delivery robot trips on its network. While Waymo One, Waymo’s standalone ride-hailing app, is operational in cities like San Francisco and Los Angeles, it won’t be used in Atlanta. Instead, passengers will be directed exclusively to Uber’s app. The Atlanta launch comes 283 days after Uber and Waymo first identified the city as a future site and just months after driverless testing began in January 2025, followed by early rider trials in May. Autonomous future accelerates The race to dominate the autonomous ride-hailing sector is heating up. Waymo now conducts over 250,000 rides weekly across its four active markets: San Francisco, Los Angeles, Phoenix, and Austin. It has also applied for testing permits in New York City and plans to launch in Miami and Washington, D.C. Atlanta’s debut comes at a pivotal moment, as autonomous technology increasingly moves from experimental to operational. Uber shares rose 2.75 per cent in premarket trading following the announcement, reflecting investor optimism around the potential of self-driving mobility. With safety and scalability at the forefront, both companies are betting on consumer adoption, regulatory approval, and sustained investment to accelerate their robotaxi ambitions.

The robotaxi service will initially operating with a small fleet, the companies aim to gradually scale operations to hundreds of vehicles, following the Austin model.&nbsp;

Uber, Waymo launch robotaxi service in Atlanta amid intensifying autonomous race

NATO is about to rewrite its defence rulebook. At a summit in The Hague this week, leaders of the 32-member alliance are expected to adopt a bold new spending pledge: committing 5 per cent of national GDP to defence and security. The move, pushed strongly by US President Donald Trump, marks NATO’s biggest shift in military budgeting in over a decade. But it’s also dividing the bloc, with countries like Spain openly resisting, even as Russia looms large on the eastern front.<h2>What is NATO’s 5% defence target?</h2>It’s not just more of the same. NATO’s new target splits military spending into two clear buckets: 3.5 per cent of GDP will be allocated to core defence — covering troops, weapons, fighter jets, tanks, and combat readiness. The remaining 1.5 per cent is earmarked for broader security-related investments, including military-grade infrastructure, cybersecurity frameworks, and energy pipeline protection.&nbsp;This new benchmark replaces the current 2 per cent GDP target agreed at the 2014 Wales summit, expanding the scope of what qualifies as defence spending. As per Reuters, the revised framework is intended to capture not only battlefield capabilities but also long-term resilience against hybrid threats.<h2>Why now?</h2>The push comes amid rising fears of a future Russian assault on NATO territory. Secretary-General Mark Rutte, who took over from Jens Stoltenberg earlier this month, warned that “Russia could be ready to use military force against NATO within five years.”&nbsp;The war in Ukraine has already stretched Europe’s defence posture. With the United States under Trump urging allies to shoulder more responsibility, the political pressure on Europe is mounting. US Defence Secretary Pete Hegseth echoed this sentiment, stating that “America can’t be everywhere all the time, nor should we be.”<h2>The spending gap: Who’s ready, who’s lagging?</h2>NATO’s own estimates show that 22 of its 32 members met the current 2 per cent GDP defence threshold in 2024, &nbsp;a record high. But reaching the 5 per cent mark will be a much steeper climb for many. Poland, which borders war-torn Ukraine, already spends over 4 per cent of its GDP on defence, making it the alliance’s most aggressive spender. The United States currently allocates around 3.5 per cent, which aligns closely with the proposed benchmark for core military readiness. In contrast, Spain’s military budget was just 1.3 per cent of GDP last year, and Madrid has been vocal in its opposition to the new target.&nbsp;Spanish Prime Minister Pedro Sánchez has insisted that his country can meet NATO’s military capability goals with a more modest 2.1 per cent allocation. While Spain approved the draft summit declaration, it made clear it does not intend to meet the full 5 per cent figure. NATO officials, however, maintain there is no formal opt-out. Spain’s contribution will be tracked, and any shortfalls will be addressed through peer reviews, as per Reuters.&nbsp;<h2>What will the extra billions buy?</h2>The additional spending is expected to fund a wide expansion in NATO’s military capacity by 2035. Although the specifics remain classified, Secretary-General Rutte has stated that key investment areas include air and missile defence systems, fighter jets, tanks, unmanned drones, military logistics, and troop readiness. Beyond conventional military assets, the alliance is also focusing on hardening infrastructure, upgrading ports, railways, and road networks to handle military convoys, and building cyber-resilience across critical systems.&nbsp;According to Reuters, NATO states collectively spent about $1.3 trillion on core defence in 2024. If all members had spent 3.5 per cent of GDP on defence that year, the total would have climbed to $1.75 trillion, a gap of roughly $450 billion. Including the broader 1.5 per cent category, the combined military budgets of NATO states could grow by several hundred billion dollars annually over the next decade.<h2>Who pays the bill?</h2>Each NATO country will decide how to meet its spending obligations, whether by reallocating budget priorities, raising taxes, or borrowing. The European Union has stepped in to ease the fiscal transition. Member states are now permitted to raise defence spending by up to 1.5 per cent of GDP for four consecutive years without breaching the bloc’s budget deficit limits.&nbsp;Additionally, the EU has approved the creation of a €150 billion arms fund to finance joint defence initiatives through low-interest loans. Some member states, including France and Poland, are calling for this fund to provide grants instead of loans, a proposal that has met resistance from fiscally conservative nations such as Germany and the Netherlands.<h2>How does NATO stack up against rivals?</h2>According to the Stockholm International Peace Research Institute (SIPRI), Russia dedicated an estimated 7.1 per cent of GDP to its military in 2024, amounting to $149 billion, a staggering 38 per cent rise from the previous year. China, meanwhile, spent around 1.7 per cent of GDP, but remains the world’s second-largest military spender in absolute terms.&nbsp;While NATO nations typically allocate a smaller percentage of GDP to defence, they collectively outspend Russia by a wide margin. Still, proximity to conflict zones and the speed of mobilisation remain critical challenges.<h2>A turning point for NATO</h2>The 5 per cent defence spending target marks a profound shift in NATO’s strategic mindset, from a post-Cold War posture of deterrence to a wartime footing focused on rapid response and resilience. But the road ahead may not be smooth. Countries like Belgium, Canada, and even Germany are expected to face political and economic hurdles in reaching the target. Italy has signalled it will comply over time, while others such as the UK under Prime Minister Starmer have pledged full support, targeting 4.1 per cent by 2027 and 5 per cent by 2035.&nbsp;The Hague summit may provide a unifying vision, but the true test will be implementation. NATO’s credibility as a collective defence pact hinges not just on promises made at summits, but on budgets passed in parliaments.&nbsp;(With inputs from the agencies) &nbsp;

This change, influenced by US President Trump, is split into 3.5 per cent for core defence and 1.5 per cent for broader security investments. Some countries, like Spain, oppose this increase, arguing that their current allocations can meet NATO goals. 

NATO is about to rewrite its defence rulebook. At a summit in The Hague this week, leaders of the 32-member alliance are expected to adopt a bold new spending pledge: committing 5 per cent of national GDP to defence and security. The move, pushed strongly by US President Donald Trump, marks NATO’s biggest shift in military budgeting in over a decade. But it’s also dividing the bloc, with countries like Spain openly resisting, even as Russia looms large on the eastern front. What is NATO’s 5% defence target? It’s not just more of the same. NATO’s new target splits military spending into two clear buckets: 3.5 per cent of GDP will be allocated to core defence — covering troops, weapons, fighter jets, tanks, and combat readiness. The remaining 1.5 per cent is earmarked for broader security-related investments, including military-grade infrastructure, cybersecurity frameworks, and energy pipeline protection. This new benchmark replaces the current 2 per cent GDP target agreed at the 2014 Wales summit, expanding the scope of what qualifies as defence spending. As per Reuters, the revised framework is intended to capture not only battlefield capabilities but also long-term resilience against hybrid threats. Why now? The push comes amid rising fears of a future Russian assault on NATO territory. Secretary-General Mark Rutte, who took over from Jens Stoltenberg earlier this month, warned that “Russia could be ready to use military force against NATO within five years.” The war in Ukraine has already stretched Europe’s defence posture. With the United States under Trump urging allies to shoulder more responsibility, the political pressure on Europe is mounting. US Defence Secretary Pete Hegseth echoed this sentiment, stating that “America can’t be everywhere all the time, nor should we be.” The spending gap: Who’s ready, who’s lagging? NATO’s own estimates show that 22 of its 32 members met the current 2 per cent GDP defence threshold in 2024, a record high. But reaching the 5 per cent mark will be a much steeper climb for many. Poland, which borders war-torn Ukraine, already spends over 4 per cent of its GDP on defence, making it the alliance’s most aggressive spender. The United States currently allocates around 3.5 per cent, which aligns closely with the proposed benchmark for core military readiness. In contrast, Spain’s military budget was just 1.3 per cent of GDP last year, and Madrid has been vocal in its opposition to the new target. Spanish Prime Minister Pedro Sánchez has insisted that his country can meet NATO’s military capability goals with a more modest 2.1 per cent allocation. While Spain approved the draft summit declaration, it made clear it does not intend to meet the full 5 per cent figure. NATO officials, however, maintain there is no formal opt-out. Spain’s contribution will be tracked, and any shortfalls will be addressed through peer reviews, as per Reuters. What will the extra billions buy? The additional spending is expected to fund a wide expansion in NATO’s military capacity by 2035. Although the specifics remain classified, Secretary-General Rutte has stated that key investment areas include air and missile defence systems, fighter jets, tanks, unmanned drones, military logistics, and troop readiness. Beyond conventional military assets, the alliance is also focusing on hardening infrastructure, upgrading ports, railways, and road networks to handle military convoys, and building cyber-resilience across critical systems. According to Reuters, NATO states collectively spent about $1.3 trillion on core defence in 2024. If all members had spent 3.5 per cent of GDP on defence that year, the total would have climbed to $1.75 trillion, a gap of roughly $450 billion. Including the broader 1.5 per cent category, the combined military budgets of NATO states could grow by several hundred billion dollars annually over the next decade. Who pays the bill? Each NATO country will decide how to meet its spending obligations, whether by reallocating budget priorities, raising taxes, or borrowing. The European Union has stepped in to ease the fiscal transition. Member states are now permitted to raise defence spending by up to 1.5 per cent of GDP for four consecutive years without breaching the bloc’s budget deficit limits. Additionally, the EU has approved the creation of a €150 billion arms fund to finance joint defence initiatives through low-interest loans. Some member states, including France and Poland, are calling for this fund to provide grants instead of loans, a proposal that has met resistance from fiscally conservative nations such as Germany and the Netherlands. How does NATO stack up against rivals? According to the Stockholm International Peace Research Institute (SIPRI), Russia dedicated an estimated 7.1 per cent of GDP to its military in 2024, amounting to $149 billion, a staggering 38 per cent rise from the previous year. China, meanwhile, spent around 1.7 per cent of GDP, but remains the world’s second-largest military spender in absolute terms. While NATO nations typically allocate a smaller percentage of GDP to defence, they collectively outspend Russia by a wide margin. Still, proximity to conflict zones and the speed of mobilisation remain critical challenges. A turning point for NATO The 5 per cent defence spending target marks a profound shift in NATO’s strategic mindset, from a post-Cold War posture of deterrence to a wartime footing focused on rapid response and resilience. But the road ahead may not be smooth. Countries like Belgium, Canada, and even Germany are expected to face political and economic hurdles in reaching the target. Italy has signalled it will comply over time, while others such as the UK under Prime Minister Starmer have pledged full support, targeting 4.1 per cent by 2027 and 5 per cent by 2035. The Hague summit may provide a unifying vision, but the true test will be implementation. NATO’s credibility as a collective defence pact hinges not just on promises made at summits, but on budgets passed in parliaments. (With inputs from the agencies)

NATO is set to adopt a new defence spending target of 5 per cent of GDP, a significant increase from the previous 2 per cent goal established at the 2014 Wales summit.

What is NATO’s new 5% defence spending goal and who is against it?

Chinese oil refiners, both state-owned and independent are slowing their crude purchases, particularly from sanctioned suppliers like Iran and Russia, as domestic fuel demand stagnates and profit margins shrink.&nbsp;According to a report by Bloomberg, refiners from the world’s largest crude-importing nation have stepped back from the spot market, with independent processors known as “teapots” reducing intake due to lower refining profits and volatile global oil prices. The slowdown comes amid a broader backdrop of macroeconomic softness in China, where fuel price adjustments by regulators occur only once every 10 working days, delaying the industry’s ability to respond to sharp global price fluctuations.<h2>Refining profits fall to multi-month lows</h2>Margins for teapot refiners have now fallen to their lowest levels in nearly three months, as per data from industry consultant JLC Ltd, quoted by Bloomberg. While state-run refiners still operate at relatively higher margins, their profitability is also trending downward.&nbsp;Independent Refiner Profit Margins – 2025According to JLC data:<ul><li>Margins peaked in Q1</li><li>Fell steadily through April and May</li><li>Dropped below 100 yuan per tonne in June — a nearly 3-month low</li></ul>&nbsp;This financial squeeze is prompting refiners to cut back purchases of discounted grades like Iranian Light and Russian ESPO crude, even as geopolitical risk premiums keep global oil prices volatile.<h2>Floating oil stockpiles rise in Asia</h2>Signs of sluggish Chinese demand are also evident offshore. As of Sunday, 33.9 million barrels of Iranian crude were held in floating storage, the highest since December 2023, according to data from Kpler Ltd, as reported by Bloomberg.&nbsp;At the same time, floating crude volumes in the Malacca and Singapore Straits, key ship-to-ship transfer points have doubled in the past two weeks to 13.3 million barrels, another indication of low refinery drawdown.<h2>Iranian oil discounts widen as demand dips</h2>With Chinese refiners pulling back, sellers of Iranian crude have been forced to offer deeper discounts. According to market participants cited by Bloomberg, barrels from Iran are now trading at around $3 per barrel below Brent, with some offers dipping even lower.&nbsp;Meanwhile, Russian oil, which had already seen price corrections earlier this year remained steady at around $2 per barrel above Brent, showing less pricing flexibility compared to Iran’s deeply discounted supply.<h2>A pause or a pivot?</h2>The cutback in Chinese spot crude buying comes at a critical time for global oil markets, which have been rattled by Middle East tensions, particularly in the Strait of Hormuz and Red Sea. However, analysts believe the current slowdown may be temporary and tied more to refining economics than long-term demand destruction.&nbsp;If China’s domestic fuel consumption recovers in the second half of the year, buying could resume but for now, excess stockpiles and falling margins have left teapots and majors alike on the&nbsp;sidelines. (With inputs from the agencies)&nbsp;

Spot market activity has decreased, with teapot refiners particularly affected. Refining profits have hit multi-month lows, prompting cuts in discounted crude intake. 

Chinese oil refiners, both state-owned and independent are slowing their crude purchases, particularly from sanctioned suppliers like Iran and Russia, as domestic fuel demand stagnates and profit margins shrink. According to a report by Bloomberg, refiners from the world’s largest crude-importing nation have stepped back from the spot market, with independent processors known as “teapots” reducing intake due to lower refining profits and volatile global oil prices. The slowdown comes amid a broader backdrop of macroeconomic softness in China, where fuel price adjustments by regulators occur only once every 10 working days, delaying the industry’s ability to respond to sharp global price fluctuations. Refining profits fall to multi-month lows Margins for teapot refiners have now fallen to their lowest levels in nearly three months, as per data from industry consultant JLC Ltd, quoted by Bloomberg. While state-run refiners still operate at relatively higher margins, their profitability is also trending downward. Independent Refiner Profit Margins – 2025 According to JLC data: Margins peaked in Q1 Fell steadily through April and May Dropped below 100 yuan per tonne in June — a nearly 3-month low This financial squeeze is prompting refiners to cut back purchases of discounted grades like Iranian Light and Russian ESPO crude, even as geopolitical risk premiums keep global oil prices volatile. Floating oil stockpiles rise in Asia Signs of sluggish Chinese demand are also evident offshore. As of Sunday, 33.9 million barrels of Iranian crude were held in floating storage, the highest since December 2023, according to data from Kpler Ltd, as reported by Bloomberg. At the same time, floating crude volumes in the Malacca and Singapore Straits, key ship-to-ship transfer points have doubled in the past two weeks to 13.3 million barrels, another indication of low refinery drawdown. Iranian oil discounts widen as demand dips With Chinese refiners pulling back, sellers of Iranian crude have been forced to offer deeper discounts. According to market participants cited by Bloomberg, barrels from Iran are now trading at around $3 per barrel below Brent, with some offers dipping even lower. Meanwhile, Russian oil, which had already seen price corrections earlier this year remained steady at around $2 per barrel above Brent, showing less pricing flexibility compared to Iran’s deeply discounted supply. A pause or a pivot? The cutback in Chinese spot crude buying comes at a critical time for global oil markets, which have been rattled by Middle East tensions, particularly in the Strait of Hormuz and Red Sea. However, analysts believe the current slowdown may be temporary and tied more to refining economics than long-term demand destruction. If China’s domestic fuel consumption recovers in the second half of the year, buying could resume but for now, excess stockpiles and falling margins have left teapots and majors alike on the sidelines. (With inputs from the agencies)

&nbsp;Chinese oil refiners, both state-owned and independent, are reducing crude purchases, especially from sanctioned suppliers like Iran and Russia, due to stagnant domestic fuel demand and shrinking profit margins.

China’s oil refiners cut back on crude purchases as weak demand hits margins

India has entered the top 100 in the United Nations’ Sustainable Development Goals (SDG) index for 2025, a historic milestone, according to the latest SDG Report published by the UN Sustainable Development Solutions Network (SDSN) and reported by PTI. India now ranks 99th out of 193 countries with an overall score of 67.0. This places it marginally behind its neighbour Nepal (85th, 68.6) and Bhutan (74th, 70.5), yet above Bangladesh (114th, 63.9) and Pakistan (140th, 57.0), as quoted by PTI.Regional maritime countries also performed well, with Maldives (53rd) and Sri Lanka (93rd) both securing higher positions than India, according to the UN SDSN report.&nbsp;SDG leaders and regional trends<ul><li>China leads among major economies in Asia, ranking 49th with a score of 74.4, while the US is 44th with 75.2, as reported by PTI.</li><li>Leading the global table are Finland, Sweden and Denmark, continuing the European dominance with 19 out of the top 20 SDG countries located in Europe, as per SDSN findings.</li></ul><h2>Global progress and setbacks</h2>The report’s authors, led by economist Jeffrey Sachs, warn that global progress has slowed, only 17% of the SDG targets are on track to be achieved by 2030. Major challenges include armed conflict, socioeconomic vulnerabilities, and countries’ limited fiscal manoeuvring, according to the SDSN report.&nbsp;Despite this, several SDG indicators are showing robust gains worldwide, including electrification (Goal 7), under-five and neonatal mortality reductions (Goal 3), and broadband access (Goal 9).&nbsp;Five pressing issues that have worsened since 2015 include: obesity (SDG 2), press freedom (SDG 16), nitrogen pollution (SDG 2), biodiversity decline (SDG 15) and increased public sector corruption (SDG 16).<h2>Asia and beyond: who’s advancing fastest?</h2>South and East Asia continue to lead regional SDG improvements since 2015. Nepal (+11.1 points), Cambodia (+10), the Philippines (+8.6), Bangladesh (+8.3) and Mongolia (+7.7) registered the highest gains in SDG scores, according to SDSN data.&nbsp;Among other notable progressmakers are Benin (+14.5), Uzbekistan (+12.1), UAE (+9.9), Peru (+8.7), Saudi Arabia (+8.1) and Costa Rica (+7.0), as stated in the report.<h2>Top SDG committers, G20 &amp; OECD insights</h2>In global multilateral performance, Barbados, Jamaica and Trinidad &amp; Tobago topped the ranking as per SDSN. Among G20 nations, Brazil leads at 25th, while Chile tops among OECD members at 7th.&nbsp;The United States fell to 193rd place, dead last, for the second consecutive year, amid its withdrawal from the Paris Agreement and the WHO, and its announced opposition to the UN’s 2030 Agenda, as pointed out by PTI.<h2>Financing and climate warnings</h2>As world leaders prepare for the 4th International Conference on Financing for Development (Seville, June 30–July 3), the report underscores that the current global financial system is skewed. It warns that capital flows disproportionately to developed economies, sidelining emerging and developing ones despite their higher growth potential, a reform point raised by the SDSN.&nbsp;(With inputs from the agencies) &nbsp;

It trails behind Nepal and Bhutan while surpassing Bangladesh and Pakistan. Regional nations like Maldives and Sri Lanka outperform India. 

India has entered the top 100 in the United Nations’ Sustainable Development Goals (SDG) index for 2025, a historic milestone, according to the latest SDG Report published by the UN Sustainable Development Solutions Network (SDSN) and reported by PTI. India now ranks 99th out of 193 countries with an overall score of 67.0. This places it marginally behind its neighbour Nepal (85th, 68.6) and Bhutan (74th, 70.5), yet above Bangladesh (114th, 63.9) and Pakistan (140th, 57.0), as quoted by PTI. Regional maritime countries also performed well, with Maldives (53rd) and Sri Lanka (93rd) both securing higher positions than India, according to the UN SDSN report. SDG leaders and regional trends China leads among major economies in Asia, ranking 49th with a score of 74.4, while the US is 44th with 75.2, as reported by PTI. Leading the global table are Finland, Sweden and Denmark, continuing the European dominance with 19 out of the top 20 SDG countries located in Europe, as per SDSN findings. Global progress and setbacks The report’s authors, led by economist Jeffrey Sachs, warn that global progress has slowed, only 17% of the SDG targets are on track to be achieved by 2030. Major challenges include armed conflict, socioeconomic vulnerabilities, and countries’ limited fiscal manoeuvring, according to the SDSN report. Despite this, several SDG indicators are showing robust gains worldwide, including electrification (Goal 7), under-five and neonatal mortality reductions (Goal 3), and broadband access (Goal 9). Five pressing issues that have worsened since 2015 include: obesity (SDG 2), press freedom (SDG 16), nitrogen pollution (SDG 2), biodiversity decline (SDG 15) and increased public sector corruption (SDG 16). Asia and beyond: who’s advancing fastest? South and East Asia continue to lead regional SDG improvements since 2015. Nepal (+11.1 points), Cambodia (+10), the Philippines (+8.6), Bangladesh (+8.3) and Mongolia (+7.7) registered the highest gains in SDG scores, according to SDSN data. Among other notable progressmakers are Benin (+14.5), Uzbekistan (+12.1), UAE (+9.9), Peru (+8.7), Saudi Arabia (+8.1) and Costa Rica (+7.0), as stated in the report. Top SDG committers, G20 & OECD insights In global multilateral performance, Barbados, Jamaica and Trinidad & Tobago topped the ranking as per SDSN. Among G20 nations, Brazil leads at 25th, while Chile tops among OECD members at 7th. The United States fell to 193rd place, dead last, for the second consecutive year, amid its withdrawal from the Paris Agreement and the WHO, and its announced opposition to the UN’s 2030 Agenda, as pointed out by PTI. Financing and climate warnings As world leaders prepare for the 4th International Conference on Financing for Development (Seville, June 30–July 3), the report underscores that the current global financial system is skewed. It warns that capital flows disproportionately to developed economies, sidelining emerging and developing ones despite their higher growth potential, a reform point raised by the SDSN. (With inputs from the agencies)

India has achieved a historic milestone by entering the UN Sustainable Development Goals (SDG) index, now ranking 99th out of 193 countries with a score of 67.0.

India breaks into top 100 of global SDG index for the first time

Bangladesh is set to receive $1.3 billion in IMF funds on June 26, as part of the country’s ongoing $4.7 billion loan programme, following a months-long delay. The disbursement, approved by the IMF Executive Board on Monday night, includes the fourth and fifth tranches, according to Bangladesh’s Finance Ministry and Bangladesh Bank, as quoted by Prothom Alo.&nbsp;The fresh funds will raise total disbursements under the programme to $3.61 billion, leaving $1.09 billion to be delivered later in two tranches. The final approval came after Bangladesh agreed to key IMF conditions, including implementing a market-based exchange rate, as per Reuters.<h2>Why was the disbursement delayed?</h2>The fourth tranche was initially scheduled for December 2024. However, as per Bangladesh Bank officials, a snowstorm in Washington disrupted IMF board operations, forcing repeated postponements. Subsequent board meetings in February and March did not include Bangladesh’s loan review, and an IMF team visiting Dhaka in April offered no commitment on the next tranche. Tensions reportedly emerged over the IMF’s demand for foreign exchange reform, which Dhaka resisted for several months.&nbsp;Finally, following virtual negotiations in May led by Bangladesh Bank Governor Ahsan H. Mansur, an agreement was reached. On May 14, the IMF confirmed that disbursement would proceed in June, as per an official IMF statement quoted by Reuters.<h2>What is the IMF loan programme?</h2>The IMF approved the $4.7 billion package on January 31, 2023, to help Bangladesh manage its macroeconomic pressures, stabilise foreign reserves, and push forward reforms. At the time, the IMF stated the programme would also support climate resilience and inclusive growth.&nbsp;The loan structure includes:      •     $3.3 billion under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF)      •     $1.4 billion under the Resilience and Sustainability Facility (RSF) — a climate-linked fund, from which Bangladesh became the first Asian country to receive financing, as per IMF documentation.&nbsp;So far, Bangladesh has received:      •     $476.3 million in February 2023      •     $681 million in December 2023      •     $1.15 billion in June 2024&nbsp;The upcoming instalment, $884 million under ECF/EFF and $453 million under RSF, totals $1.33 billion, as per Reuters reporting based on the IMF Board decision.<h2>What’s next?</h2>According to Reuters, IMF officials praised Bangladesh for “broadly satisfactory performance” despite political and economic challenges but called for further action on structural reforms. Former World Bank economist Zahid Hossain told Prothom Alo that the disbursement will help stabilise foreign exchange reserves. However, he stressed the need to focus on “fuel subsidy reform, revenue mobilisation, and banking sector cleanup” to meet upcoming IMF targets.&nbsp;The final $1.09 billion will be disbursed in two phases, contingent on continued compliance with IMF conditionalities, particularly in the areas of fiscal discipline and exchange rate flexibility.&nbsp;(With inputs from the agencies) &nbsp;

This funding increases total disbursements to $3.61 billion, leaving $1.09 billion for later. The loan aims to stabilise the economy, support climate resilience, and advance reforms. Future disbursements depend on continued compliance with IMF conditions.

Bangladesh is set to receive $1.3 billion in IMF funds on June 26, as part of the country’s ongoing $4.7 billion loan programme, following a months-long delay. The disbursement, approved by the IMF Executive Board on Monday night, includes the fourth and fifth tranches, according to Bangladesh’s Finance Ministry and Bangladesh Bank, as quoted by Prothom Alo. The fresh funds will raise total disbursements under the programme to $3.61 billion, leaving $1.09 billion to be delivered later in two tranches. The final approval came after Bangladesh agreed to key IMF conditions, including implementing a market-based exchange rate, as per Reuters. Why was the disbursement delayed? The fourth tranche was initially scheduled for December 2024. However, as per Bangladesh Bank officials, a snowstorm in Washington disrupted IMF board operations, forcing repeated postponements. Subsequent board meetings in February and March did not include Bangladesh’s loan review, and an IMF team visiting Dhaka in April offered no commitment on the next tranche. Tensions reportedly emerged over the IMF’s demand for foreign exchange reform, which Dhaka resisted for several months. Finally, following virtual negotiations in May led by Bangladesh Bank Governor Ahsan H. Mansur, an agreement was reached. On May 14, the IMF confirmed that disbursement would proceed in June, as per an official IMF statement quoted by Reuters. What is the IMF loan programme? The IMF approved the $4.7 billion package on January 31, 2023, to help Bangladesh manage its macroeconomic pressures, stabilise foreign reserves, and push forward reforms. At the time, the IMF stated the programme would also support climate resilience and inclusive growth. The loan structure includes:       •     $3.3 billion under the Extended Credit Facility (ECF) and Extended Fund Facility (EFF)       •     $1.4 billion under the Resilience and Sustainability Facility (RSF) — a climate-linked fund, from which Bangladesh became the first Asian country to receive financing, as per IMF documentation. So far, Bangladesh has received:       •     $476.3 million in February 2023       •     $681 million in December 2023       •     $1.15 billion in June 2024 The upcoming instalment, $884 million under ECF/EFF and $453 million under RSF, totals $1.33 billion, as per Reuters reporting based on the IMF Board decision. What’s next? According to Reuters, IMF officials praised Bangladesh for “broadly satisfactory performance” despite political and economic challenges but called for further action on structural reforms. Former World Bank economist Zahid Hossain told Prothom Alo that the disbursement will help stabilise foreign exchange reserves. However, he stressed the need to focus on “fuel subsidy reform, revenue mobilisation, and banking sector cleanup” to meet upcoming IMF targets. The final $1.09 billion will be disbursed in two phases, contingent on continued compliance with IMF conditionalities, particularly in the areas of fiscal discipline and exchange rate flexibility. (With inputs from the agencies)

Bangladesh will receive $1.3 billion from the IMF on June 26, part of a $4.7 billion loan program, after delays due to a disrupted IMF board and negotiations over foreign exchange reform.

Bangladesh to receive $1.3 billion from IMF after reform deal

The UK economy showed only modest signs of growth in June, with the latest Flash Purchasing Managers’ Index (PMI) data pointing to stagnant activity, falling employment, and cooling inflation, reinforcing expectations that the Bank of England (BoE) will cut interest rates again as early as August. The HCOB Flash UK Composite PMI Output Index, compiled by S&amp;P Global, rose slightly to 50.7 in June from 50.3 in May, barely above the 50.0 mark that separates expansion from contraction.&nbsp;The figure suggests GDP growth of just 0.1 per cent for the second quarter, offering little momentum after April's contraction and keeping the economy firmly in a low-growth environment.<h2>Weak demand, job cuts signal fragile outlook</h2>Despite the uptick, the data painted a picture of broad-based weakness, particularly in employment and sentiment. UK businesses continued to shed jobs in June amid weak demand, higher costs, and low confidence. While the rate of job losses moderated slightly compared to earlier in the year, it remained significant, with companies citing efforts to cut costs in response to subdued activity and the lingering effects of higher staffing costs, such as National Insurance contributions and minimum wage increases introduced in last year’s budget.The services sector showed a marginal improvement, helping to offset a continued decline in manufacturing output, which contracted for the eighth consecutive month. While new orders rose for the first time since November, the gain was minor, and export orders in services fell sharply, marking one of the steepest drops since the pandemic.Business sentiment, which had rebounded slightly in May, deteriorated again in June, remaining well below the long-term average. Firms cited domestic policy uncertainty, geopolitical instability—particularly in West Asia—and concerns over US trade protectionism as key factors weighing on confidence.<h2>Inflation cools, strengthening rate cut case</h2>Amid the economic malaise, there was a significant easing of inflationary pressures, particularly in the services sector. Selling price inflation dropped to its lowest level since February 2021, as companies faced intensified competition and resorted to heavier discounting. With price increases for manufactured goods also moderating, the PMI’s combined inflation gauge now suggests that consumer price inflation may be back near the BoE’s 2 per cent target. This cooling inflation backdrop, coupled with weak growth and ongoing job losses, has strengthened the case for further monetary easing. While the BoE held its key interest rate steady at 4.25 per cent at its June 19 meeting, three of the nine Monetary Policy Committee members voted in favour of a cut.The bank has already cut rates four times since August 2024, and analysts expect two more cuts in 2025, likely in August and November, as policymakers attempt to stimulate a faltering economy without reigniting inflation.“Near-stalled growth, a sharply cooling labour market, and fading inflationary pressure present a strong case for more easing,” said Chris Williamson, Chief Business Economist at S&amp;P Global. “The June PMI data give the BoE room to move.”

UK Composite PMI Output Index rose slightly to 50.7 in June from 50.3 in May signalling sluggish expansion of the economy and bolsters case for BoE rate cuts.

The UK economy showed only modest signs of growth in June, with the latest Flash Purchasing Managers’ Index (PMI) data pointing to stagnant activity, falling employment, and cooling inflation, reinforcing expectations that the Bank of England (BoE) will cut interest rates again as early as August. The HCOB Flash UK Composite PMI Output Index, compiled by S&P Global, rose slightly to 50.7 in June from 50.3 in May, barely above the 50.0 mark that separates expansion from contraction. The figure suggests GDP growth of just 0.1 per cent for the second quarter, offering little momentum after April's contraction and keeping the economy firmly in a low-growth environment. Weak demand, job cuts signal fragile outlook Despite the uptick, the data painted a picture of broad-based weakness, particularly in employment and sentiment. UK businesses continued to shed jobs in June amid weak demand, higher costs, and low confidence. While the rate of job losses moderated slightly compared to earlier in the year, it remained significant, with companies citing efforts to cut costs in response to subdued activity and the lingering effects of higher staffing costs, such as National Insurance contributions and minimum wage increases introduced in last year’s budget. The services sector showed a marginal improvement, helping to offset a continued decline in manufacturing output, which contracted for the eighth consecutive month. While new orders rose for the first time since November, the gain was minor, and export orders in services fell sharply, marking one of the steepest drops since the pandemic. Business sentiment, which had rebounded slightly in May, deteriorated again in June, remaining well below the long-term average. Firms cited domestic policy uncertainty, geopolitical instability—particularly in West Asia—and concerns over US trade protectionism as key factors weighing on confidence. Inflation cools, strengthening rate cut case Amid the economic malaise, there was a significant easing of inflationary pressures, particularly in the services sector. Selling price inflation dropped to its lowest level since February 2021, as companies faced intensified competition and resorted to heavier discounting. With price increases for manufactured goods also moderating, the PMI’s combined inflation gauge now suggests that consumer price inflation may be back near the BoE’s 2 per cent target. This cooling inflation backdrop, coupled with weak growth and ongoing job losses, has strengthened the case for further monetary easing. While the BoE held its key interest rate steady at 4.25 per cent at its June 19 meeting, three of the nine Monetary Policy Committee members voted in favour of a cut. The bank has already cut rates four times since August 2024, and analysts expect two more cuts in 2025, likely in August and November, as policymakers attempt to stimulate a faltering economy without reigniting inflation. “Near-stalled growth, a sharply cooling labour market, and fading inflationary pressure present a strong case for more easing,” said Chris Williamson, Chief Business Economist at S&P Global. “The June PMI data give the BoE room to move.”

UK Composite PMI Output Index rose slightly to 50.7 in June from 50.3 in May signalling sluggish expansion of the economy and bolsters case for BoE rate cuts.

UK growth stalls in June as job cuts continue, inflation eases sharply

The eurozone economy showed minimal signs of recovery in June, with the latest Flash Purchasing Managers’ Index (PMI) data indicating that business activity remained effectively stagnant for a second month in a row. According to S&amp;P Global and Hamburg Commercial Bank, the HCOB Flash Eurozone Composite PMI remained at 50.2, only just above the 50.0 threshold that separates growth from contraction, and well below expectations of 50.5. The data reflects a worrying continuation of the bloc’s economic malaise, with little overall momentum in either the services or manufacturing sectors.&nbsp;The report follows a string of weak PMI readings this year, suggesting that the eurozone’s fragile post-pandemic recovery remains under pressure from geopolitical tensions, slowing global trade, and persistent consumer caution.<h2>Modest progress in manufacturing, services remain flat</h2>While the services sector returned to the break-even 50.0 mark in June, up slightly from 49.7 in May, it signals no meaningful growth and reflects continued subdued demand across the bloc. The manufacturing PMI remained unchanged at 49.4, marking nearly two years in contraction territory. A separate index tracking manufacturing output fell to 51.0 from 51.5, suggesting a moderation in factory activity growth.However, there were pockets of encouragement, particularly in Germany, where manufacturers reported the strongest rise in new orders since February 2022. This suggests a steadying of the sector after a multi-year downturn. The improvement has been partially attributed to increased fiscal spending, including Germany’s relaxation of its debt brake, as well as a temporary boost from firms' front-loading exports ahead of expected US tariffs in July.France, by contrast, saw its downturn worsen, with declines in both services and manufacturing activity, dragging on the overall eurozone performance. “Business activity in Germany returned to growth, but this was offset by a steeper downturn in France and slower growth elsewhere,” said analysts at S&amp;P Global.<h2>Inflation eases, fuelling expectations of further ECB rate cuts</h2>The data also pointed to easing inflationary pressures, giving the European Central Bank (ECB) more room to manoeuvre on monetary policy. Eurozone inflation fell to 1.9 per cent in May, below the ECB’s 2 per cent target. While service-sector inflation remained “slightly tense”, price growth in goods declined for the second consecutive month.The ECB has already cut interest rates eight times since the spring of 2024, bringing the deposit rate down from 4 per cent to 2 per cent. June’s PMI data shows muted employment growth and subdued pricing pressure, reinforcing the view that another rate cut could follow in the autumn if growth and inflation remain soft.A composite gauge that combines output and inflation data suggests the bloc remains firmly in rate-cutting territory, supporting the ECB’s cautious easing cycle. “The PMI continues to signal subdued demand and output, making a compelling case for another cut,” said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.<h2>Business confidence ticks up despite geopolitical instability</h2>Amidst the sluggish growth, the PMI survey found a modest uptick in business confidence, with expectations about future output improving to the highest since January. Optimism strengthened in the services sector and among German manufacturers, though sentiment elsewhere in the eurozone remained mixed.Nonetheless, overall demand in the bloc has now fallen for 13 consecutive months, even as the rate of decline moderated in June. Firms remain cautious about West Asia energy tensions, trade uncertainties, and the potential impact of US tariffs, all of which could weigh on economic activity in the second half of the year.

Eurozone's Composite PMI remained at 50.2, reflecting a worrying continuation of the bloc’s economic malaise, with little overall momentum in either the services or manufacturing sectors. 

The eurozone economy showed minimal signs of recovery in June, with the latest Flash Purchasing Managers’ Index (PMI) data indicating that business activity remained effectively stagnant for a second month in a row. According to S&P Global and Hamburg Commercial Bank, the HCOB Flash Eurozone Composite PMI remained at 50.2, only just above the 50.0 threshold that separates growth from contraction, and well below expectations of 50.5. The data reflects a worrying continuation of the bloc’s economic malaise, with little overall momentum in either the services or manufacturing sectors. The report follows a string of weak PMI readings this year, suggesting that the eurozone’s fragile post-pandemic recovery remains under pressure from geopolitical tensions, slowing global trade, and persistent consumer caution. Modest progress in manufacturing, services remain flat While the services sector returned to the break-even 50.0 mark in June, up slightly from 49.7 in May, it signals no meaningful growth and reflects continued subdued demand across the bloc. The manufacturing PMI remained unchanged at 49.4, marking nearly two years in contraction territory. A separate index tracking manufacturing output fell to 51.0 from 51.5, suggesting a moderation in factory activity growth. However, there were pockets of encouragement, particularly in Germany, where manufacturers reported the strongest rise in new orders since February 2022. This suggests a steadying of the sector after a multi-year downturn. The improvement has been partially attributed to increased fiscal spending, including Germany’s relaxation of its debt brake, as well as a temporary boost from firms' front-loading exports ahead of expected US tariffs in July. France, by contrast, saw its downturn worsen, with declines in both services and manufacturing activity, dragging on the overall eurozone performance. “Business activity in Germany returned to growth, but this was offset by a steeper downturn in France and slower growth elsewhere,” said analysts at S&P Global. Inflation eases, fuelling expectations of further ECB rate cuts The data also pointed to easing inflationary pressures, giving the European Central Bank (ECB) more room to manoeuvre on monetary policy. Eurozone inflation fell to 1.9 per cent in May, below the ECB’s 2 per cent target. While service-sector inflation remained “slightly tense”, price growth in goods declined for the second consecutive month. The ECB has already cut interest rates eight times since the spring of 2024, bringing the deposit rate down from 4 per cent to 2 per cent. June’s PMI data shows muted employment growth and subdued pricing pressure, reinforcing the view that another rate cut could follow in the autumn if growth and inflation remain soft. A composite gauge that combines output and inflation data suggests the bloc remains firmly in rate-cutting territory, supporting the ECB’s cautious easing cycle. “The PMI continues to signal subdued demand and output, making a compelling case for another cut,” said Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank. Business confidence ticks up despite geopolitical instability Amidst the sluggish growth, the PMI survey found a modest uptick in business confidence, with expectations about future output improving to the highest since January. Optimism strengthened in the services sector and among German manufacturers, though sentiment elsewhere in the eurozone remained mixed. Nonetheless, overall demand in the bloc has now fallen for 13 consecutive months, even as the rate of decline moderated in June. Firms remain cautious about West Asia energy tensions, trade uncertainties, and the potential impact of US tariffs, all of which could weigh on economic activity in the second half of the year.

Eurozone's Composite PMI remained at 50.2, reflecting a worrying continuation of the bloc’s economic malaise, with little overall momentum in either the services or manufacturing sectors.&nbsp;

Eurozone economy stagnates in June despite brighter signals from manufacturing

Jeff Bezos and Lauren Sánchez are getting married on the private island of San Giorgio Maggiore in Venice. Their wedding is likely to cost $20 million and is scheduled for June 27. According to the Bloomberg Billionaires Index, as of 2025, the Amazon founder is the third richest person in the world with an estimated net worth of US$220.9 billion.&nbsp;<h2>What are the assets of Jeff Bezos?</h2>Bezos stepped down from the CEO position of Amazon in 2001, but remains a powerful force through his ownership stake in Amazon. According to a Bloomberg report, Bezos owns 8.6 per cent of Amazon. He also has ownership in Blue Origin and the Washington Post.Moreover, Bezos owns a venture capital firm called Bezos Expeditions to invest in different companies such as Uber, Airbnb, and Business Insider. He also has investments in companies like Twitch, Audible, Zappos, and Remitly, a digital money transfer service.&nbsp;With great money, there is always great opulence. He boasts an extravagant real estate portfolio. This includes properties in Beverly Hills, Medina (Washington), Miami, and Washington D.C., including the former Textile Museum. He also has a superyacht called Koru with an estimated valuation of $500 million. He also has a collection of private jets valued at over US$200 million.&nbsp;Bezos is often described as "a brilliant but mysterious and cold-blooded corporate titan", known for a meticulous, data-driven and quantitative approach to leadership. His fortune continues to grow, driven by Amazon’s performance in cloud computing, AI innovation, and global e-commerce dominance. Despite philanthropic efforts such as the Bezos Earth Fund, his wealth places him consistently among the top 3 richest people on the planet, alongside Elon Musk and Bernard Arnault. However, his recent wedding in Venice had faced severe criticism for being disruptive and worsening the city's ongoing struggle against overtourism.&nbsp;&nbsp;

The world's third-richest man has an impressive portfolio of investments in businesses, real estate, and a luxurious lifestyle with a net worth of US$220.9 billion. 

Jeff Bezos and Lauren Sánchez are getting married on the private island of San Giorgio Maggiore in Venice. Their wedding is likely to cost $20 million and is scheduled for June 27. According to the Bloomberg Billionaires Index, as of 2025, the Amazon founder is the third richest person in the world with an estimated net worth of US$220.9 billion. What are the assets of Jeff Bezos? Bezos stepped down from the CEO position of Amazon in 2001, but remains a powerful force through his ownership stake in Amazon. According to a Bloomberg report, Bezos owns 8.6 per cent of Amazon. He also has ownership in Blue Origin and the Washington Post. Moreover, Bezos owns a venture capital firm called Bezos Expeditions to invest in different companies such as Uber, Airbnb, and Business Insider. He also has investments in companies like Twitch, Audible, Zappos, and Remitly, a digital money transfer service. With great money, there is always great opulence. He boasts an extravagant real estate portfolio. This includes properties in Beverly Hills, Medina (Washington), Miami, and Washington D.C., including the former Textile Museum. He also has a superyacht called Koru with an estimated valuation of $500 million. He also has a collection of private jets valued at over US$200 million. Bezos is often described as "a brilliant but mysterious and cold-blooded corporate titan", known for a meticulous, data-driven and quantitative approach to leadership. His fortune continues to grow, driven by Amazon’s performance in cloud computing, AI innovation, and global e-commerce dominance. Despite philanthropic efforts such as the Bezos Earth Fund, his wealth places him consistently among the top 3 richest people on the planet, alongside Elon Musk and Bernard Arnault. However, his recent wedding in Venice had faced severe criticism for being disruptive and worsening the city's ongoing struggle against overtourism.

The world's third-richest man has an impressive portfolio of investments in businesses, real estate, and a luxurious lifestyle with a net worth of US$220.9 billion.&nbsp;

Jeff Bezos net worth 2025: How rich is Amazon founder?

Chinese ports are breaking records after trade truce with US: What happened?&nbsp;China’s export engine is in overdrive. Ports across the country have just logged their busiest week in recorded history, with cargo shipments and flight volumes reaching unprecedented levels. The sudden surge follows a temporary trade truce with the United States and reflects exporters’ urgency to move goods before Donald Trump’s next tariff wave hits.&nbsp;According to China’s Ministry of Transport, Chinese ports processed 6.7 million standard containers last week, the highest weekly tally ever. That marks a 6 per cent jump over the previous week. The spike comes just weeks after Beijing and Washington struck a deal on May 12, offering a 90-day window before US tariffs snap back into place.&nbsp;As reported by Bloomberg, the rush is not just about beating deadlines, it’s a sign of how deeply trade tensions are reshaping Asia’s shipping flows, infrastructure capacity, and geopolitical strategy.<h2>Ports lead the charge: Record 6.7 million containers in a week</h2>The biggest numbers are coming from China’s ports. The Ministry reported a total of 6.7 million twenty-foot equivalent units (TEUs) moved last week, a figure unmatched in previous years.<figure class="table"><table><tbody><tr><td>Week Ending</td><td>TEUs Processed</td><td>Week-on-Week Change</td></tr><tr><td>June 16</td><td>~6.3 million</td><td>—</td></tr><tr><td>June 23</td><td>6.7 million</td><td>+6%</td></tr></tbody></table></figure>Source: China’s Ministry of Transport via Bloomberg The jump reflects a scramble by exporters to push goods through customs before early-July tariff deadlines come into force. Many Chinese companies are shipping directly to the US, while others are routing through Southeast Asian nations like Vietnam and Thailand to avoid direct tariff exposure. This logistical sprint is also being driven by the steep drop in Chinese exports to the US in May, which, according to Bloomberg, was the worst since the early pandemic years.<h2>Not just seaports — cargo flights and rail soar too</h2>The momentum isn’t limited to sea freight. Chinese air cargo operations also hit new highs. In the week ending June 23, the number of domestic cargo flights surpassed 2,100, the highest ever recorded in a single week. Total cargo flights, including international routes, reached the second-highest weekly level in China’s history.&nbsp;Flight Traffic Overview (March 2023 – June 2025)<ul><li>Domestic cargo flights: &gt;2,100 (record high)</li><li>International cargo flights: remained above 3,000, despite US tariff changes</li></ul>Source: China’s Ministry of Transport via Bloomberg&nbsp;This sharp increase occurred despite the US ending the ‘de minimis’ loophole, which had previously allowed tariff-free imports of small parcels from China. The loophole was a key enabler of low-value e-commerce exports, particularly in fashion and electronics. Even with that barrier, Chinese data shows strong non-US demand for small parcels, helping offset the fall in American consumer orders. In parallel, domestic rail cargo also surged to a record high for this period of the year, highlighting how China is mobilising all modes of transport to clear backlogs and accelerate export turnover.<h2>A wider Asian trend</h2>China isn’t alone in this race. As per Bloomberg, several Asian countries are showing parallel surges in trade with the United States:<ul><li>South Korean exports to the US jumped sharply in the first 20 days of June, extending near-record momentum from May.</li><li>Vietnam, Taiwan, and Thailand each reported record monthly shipments to the US in May.</li></ul>This pattern reflects a broader regional reaction to Washington’s trade policy, as Asian economies try to front-load exports before the US shifts to a more protectionist stance under President Trump’s second term.<h2>Why this matters?&nbsp;</h2>At the heart of this export boom is a narrow window. The May 12 agreement between China and the US granted exporters a 90-day reprieve from new tariffs. That window expires in mid-August, but many importers expect fresh US tariffs to land by early July. This has triggered a rush to export, stock up inventories, and shift trade routes while time remains.&nbsp;But the question now is: Will this surge last? Analysts say it’s likely temporary. Once the 90-day grace period ends, tariffs may return in full force, potentially choking off some of this volume and squeezing China’s trade surplus. Nonetheless, the record numbers show how adept Chinese logistics have become at absorbing shocks, re-routing supply chains, and responding to political pressure with scale and speed.&nbsp;China’s busiest week at its ports is more than a statistical record, it’s a window into the geopolitical fault lines reshaping global trade. With over 6.7 million containers, 2,100 cargo flights, and record rail shipments in one week alone, Beijing is demonstrating that it can adapt to external pressure, at least for now.But as the clock ticks toward August, and with Washington weighing its next move, the real question is whether this logistical sprint marks the start of a new trade normal or just a temporary truce before the next storm. &nbsp;(With inputs from the agencies)&nbsp;

The spike is partly due to exporters rushing to ship goods before anticipated tariffs are reintroduced in early July. 

Chinese ports are breaking records after trade truce with US: What happened? China’s export engine is in overdrive. Ports across the country have just logged their busiest week in recorded history, with cargo shipments and flight volumes reaching unprecedented levels. The sudden surge follows a temporary trade truce with the United States and reflects exporters’ urgency to move goods before Donald Trump’s next tariff wave hits. According to China’s Ministry of Transport, Chinese ports processed 6.7 million standard containers last week, the highest weekly tally ever. That marks a 6 per cent jump over the previous week. The spike comes just weeks after Beijing and Washington struck a deal on May 12, offering a 90-day window before US tariffs snap back into place. As reported by Bloomberg, the rush is not just about beating deadlines, it’s a sign of how deeply trade tensions are reshaping Asia’s shipping flows, infrastructure capacity, and geopolitical strategy. Ports lead the charge: Record 6.7 million containers in a week The biggest numbers are coming from China’s ports. The Ministry reported a total of 6.7 million twenty-foot equivalent units (TEUs) moved last week, a figure unmatched in previous years. Week Ending TEUs Processed Week-on-Week Change June 16 ~6.3 million — June 23 6.7 million +6% Source: China’s Ministry of Transport via Bloomberg The jump reflects a scramble by exporters to push goods through customs before early-July tariff deadlines come into force. Many Chinese companies are shipping directly to the US, while others are routing through Southeast Asian nations like Vietnam and Thailand to avoid direct tariff exposure. This logistical sprint is also being driven by the steep drop in Chinese exports to the US in May, which, according to Bloomberg, was the worst since the early pandemic years. Not just seaports — cargo flights and rail soar too The momentum isn’t limited to sea freight. Chinese air cargo operations also hit new highs. In the week ending June 23, the number of domestic cargo flights surpassed 2,100, the highest ever recorded in a single week. Total cargo flights, including international routes, reached the second-highest weekly level in China’s history. Flight Traffic Overview (March 2023 – June 2025) Domestic cargo flights: >2,100 (record high) International cargo flights: remained above 3,000, despite US tariff changes Source: China’s Ministry of Transport via Bloomberg This sharp increase occurred despite the US ending the ‘de minimis’ loophole, which had previously allowed tariff-free imports of small parcels from China. The loophole was a key enabler of low-value e-commerce exports, particularly in fashion and electronics. Even with that barrier, Chinese data shows strong non-US demand for small parcels, helping offset the fall in American consumer orders. In parallel, domestic rail cargo also surged to a record high for this period of the year, highlighting how China is mobilising all modes of transport to clear backlogs and accelerate export turnover. A wider Asian trend China isn’t alone in this race. As per Bloomberg, several Asian countries are showing parallel surges in trade with the United States: South Korean exports to the US jumped sharply in the first 20 days of June, extending near-record momentum from May. Vietnam, Taiwan, and Thailand each reported record monthly shipments to the US in May. This pattern reflects a broader regional reaction to Washington’s trade policy, as Asian economies try to front-load exports before the US shifts to a more protectionist stance under President Trump’s second term. Why this matters? At the heart of this export boom is a narrow window. The May 12 agreement between China and the US granted exporters a 90-day reprieve from new tariffs. That window expires in mid-August, but many importers expect fresh US tariffs to land by early July. This has triggered a rush to export, stock up inventories, and shift trade routes while time remains. But the question now is: Will this surge last? Analysts say it’s likely temporary. Once the 90-day grace period ends, tariffs may return in full force, potentially choking off some of this volume and squeezing China’s trade surplus. Nonetheless, the record numbers show how adept Chinese logistics have become at absorbing shocks, re-routing supply chains, and responding to political pressure with scale and speed. China’s busiest week at its ports is more than a statistical record, it’s a window into the geopolitical fault lines reshaping global trade. With over 6.7 million containers, 2,100 cargo flights, and record rail shipments in one week alone, Beijing is demonstrating that it can adapt to external pressure, at least for now. But as the clock ticks toward August, and with Washington weighing its next move, the real question is whether this logistical sprint marks the start of a new trade normal or just a temporary truce before the next storm. (With inputs from the agencies)

Chinese ports have reached a historic milestone, processing 6.7 million standard containers in one week, reflecting a surge in exports following a temporary trade truce with the US.

Chinese ports activity is breaking records after trade truce with US: What happened?

US coffee giant Starbucks has denied reports that it is planning a full exit from its China business, following a story by Chinese financial publication Caixin that claimed the company had begun a formal sale process and was in talks with dozens of potential buyers. In a statement on June 23, a Starbucks spokesperson said, “I can confirm Starbucks is not currently considering a full sale of its China operations.” However, the company acknowledged ongoing discussions with investors, confirming earlier reports that it had launched a process to evaluate strategic options for its business in China.According to a report by Reuters, Starbucks, advised by Goldman Sachs, initiated the process in May, inviting interested parties to submit detailed responses regarding their corporate culture, business strategy, sustainability credentials, and treatment of employees. While over 20 institutions, including private equity (PE) firms like KKR &amp; Co., FountainVest Partners, and PAG, have shown interest, the Seattle-based coffee giant has not yet decided whether to sell a controlling or minority stake or retain key parts like the supply chain.<h2>Rising competition forces strategic shift</h2>Starbucks’ reconsideration of its China strategy comes amid rising pressure from local competitors, notably Luckin Coffee and Cotti, which have gained ground by offering significantly lower prices. These homegrown brands, bolstered by subsidies and e-commerce-led delivery models, have pushed the price of a cup of coffee in China to below 5 yuan (about $0.70), compared to Starbucks’ typical 30 yuan ($4.20) pricing.The company’s market share in China—once a dominant 34 per cent in 2019—has shrunk down to just 14 per cent in 2024, according to Euromonitor International. Despite opening hundreds of stores, revenue from China dropped from $3.7 billion in 2021 to $3 billion in 2023.Earlier this month, Starbucks announced its first-ever price cut in the Chinese market, lowering prices on select non-coffee iced drinks by an average of 5 yuan to regain competitiveness.<h2>Long-term commitment, but tactical realignment</h2>Starbucks emphasised its long-term commitment to China, stating it is exploring “the best ways to capture future growth opportunities” in the world’s second-largest economy. CEO Brian Niccol, who took the reins in late 2024, has confirmed that investors had shown “a lot of interest” in acquiring a stake in the China business.The potential stake sale appears to be part of a broader strategic overhaul, which includes store redesigns, technology integration for faster service, and headcount reductions—over 1,000 jobs have already been cut globally as part of this restructuring.While shares of Starbucks rose slightly in extended trading following the Caixin report, investor sentiment remains cautious, with retail sentiment on Stocktwits still flagged as “bearish”. Starbucks stock is up 1.2 per cent year-to-date.

Price wars, swiftly falling market share and investor interests are set to reshape Starbucks strategy in China.

US coffee giant Starbucks has denied reports that it is planning a full exit from its China business, following a story by Chinese financial publication Caixin that claimed the company had begun a formal sale process and was in talks with dozens of potential buyers. In a statement on June 23, a Starbucks spokesperson said, “I can confirm Starbucks is not currently considering a full sale of its China operations.” However, the company acknowledged ongoing discussions with investors, confirming earlier reports that it had launched a process to evaluate strategic options for its business in China. According to a report by Reuters, Starbucks, advised by Goldman Sachs, initiated the process in May, inviting interested parties to submit detailed responses regarding their corporate culture, business strategy, sustainability credentials, and treatment of employees. While over 20 institutions, including private equity (PE) firms like KKR & Co., FountainVest Partners, and PAG, have shown interest, the Seattle-based coffee giant has not yet decided whether to sell a controlling or minority stake or retain key parts like the supply chain. Rising competition forces strategic shift Starbucks’ reconsideration of its China strategy comes amid rising pressure from local competitors, notably Luckin Coffee and Cotti, which have gained ground by offering significantly lower prices. These homegrown brands, bolstered by subsidies and e-commerce-led delivery models, have pushed the price of a cup of coffee in China to below 5 yuan (about $0.70), compared to Starbucks’ typical 30 yuan ($4.20) pricing. The company’s market share in China—once a dominant 34 per cent in 2019—has shrunk down to just 14 per cent in 2024, according to Euromonitor International. Despite opening hundreds of stores, revenue from China dropped from $3.7 billion in 2021 to $3 billion in 2023. Earlier this month, Starbucks announced its first-ever price cut in the Chinese market, lowering prices on select non-coffee iced drinks by an average of 5 yuan to regain competitiveness. Long-term commitment, but tactical realignment Starbucks emphasised its long-term commitment to China, stating it is exploring “the best ways to capture future growth opportunities” in the world’s second-largest economy. CEO Brian Niccol, who took the reins in late 2024, has confirmed that investors had shown “a lot of interest” in acquiring a stake in the China business. The potential stake sale appears to be part of a broader strategic overhaul, which includes store redesigns, technology integration for faster service, and headcount reductions—over 1,000 jobs have already been cut globally as part of this restructuring. While shares of Starbucks rose slightly in extended trading following the Caixin report, investor sentiment remains cautious, with retail sentiment on Stocktwits still flagged as “bearish”. Starbucks stock is up 1.2 per cent year-to-date.

Price competition, swiftly falling market share and investor interests are set to reshape Starbucks strategy in China.

Starbucks denies full China exit but confirms stake sale talks

Nvidia Corp. chief executive Jensen Huang has begun selling shares in the chipmaking company as part of a pre-arranged $865 million stock disposal plan, according to filings released June 23 by the US Securities and Exchange Commission (SEC) according to a release by Bloomberg. Huang sold 100,000 shares over two trading sessions on June 20 and June 23, generating proceeds of approximately $14.4 million. The transactions mark the first under a Rule 10b5-1 trading plan adopted in March 2025 and disclosed in the company’s recent quarterly report.&nbsp;The plan allows Huang to gradually sell up to 6 million shares of Nvidia by the end of the year, which would be valued at $865 million on June 23’s closing price of $144.17. Rule 10b5-1 plans are commonly used by executives and major shareholders to sell stock in a structured manner that avoids allegations of insider trading or disrupting market sentiment. Huang, who remains the company’s largest individual shareholder, still holds over 900 million shares, equivalent to nearly 4 per cent of Nvidia’s outstanding stock. His planned sale represents less than 1 per cent of his holdings.<h2>Nvidia stock surge drives billionaire fortunes</h2>Huang’s wealth, estimated at $126 billion by the Bloomberg Billionaires Index, is largely tied to Nvidia stock, which has soared in value over the past two years amid a surge in demand for the company’s advanced AI chips. Nvidia has become a critical supplier to major tech firms as artificial intelligence deployment accelerates globally.Huang is not the only insider cashing in. Nvidia board member Mark Stevens sold more than 600,000 shares worth $88 million on June 18, filings show. Stevens, who is not operating under a 10b5-1 plan, had previously filed to sell up to 4 million shares, and has already sold over 2 million. His net worth is pegged at $9.8 billion.Despite the insider sales, investor confidence in Nvidia remains high. The company has retained strong momentum in the AI sector, and Huang has shown no signs of slowing Nvidia’s push in the space.

Jensen Huang sold 100,000 shares over two trading sessions on June 20 and June 23, generating proceeds of approximately $14.4 million.

Nvidia Corp. chief executive Jensen Huang has begun selling shares in the chipmaking company as part of a pre-arranged $865 million stock disposal plan, according to filings released June 23 by the US Securities and Exchange Commission (SEC) according to a release by Bloomberg. Huang sold 100,000 shares over two trading sessions on June 20 and June 23, generating proceeds of approximately $14.4 million. The transactions mark the first under a Rule 10b5-1 trading plan adopted in March 2025 and disclosed in the company’s recent quarterly report. The plan allows Huang to gradually sell up to 6 million shares of Nvidia by the end of the year, which would be valued at $865 million on June 23’s closing price of $144.17. Rule 10b5-1 plans are commonly used by executives and major shareholders to sell stock in a structured manner that avoids allegations of insider trading or disrupting market sentiment. Huang, who remains the company’s largest individual shareholder, still holds over 900 million shares, equivalent to nearly 4 per cent of Nvidia’s outstanding stock. His planned sale represents less than 1 per cent of his holdings. Nvidia stock surge drives billionaire fortunes Huang’s wealth, estimated at $126 billion by the Bloomberg Billionaires Index, is largely tied to Nvidia stock, which has soared in value over the past two years amid a surge in demand for the company’s advanced AI chips. Nvidia has become a critical supplier to major tech firms as artificial intelligence deployment accelerates globally. Huang is not the only insider cashing in. Nvidia board member Mark Stevens sold more than 600,000 shares worth $88 million on June 18, filings show. Stevens, who is not operating under a 10b5-1 plan, had previously filed to sell up to 4 million shares, and has already sold over 2 million. His net worth is pegged at $9.8 billion. Despite the insider sales, investor confidence in Nvidia remains high. The company has retained strong momentum in the AI sector, and Huang has shown no signs of slowing Nvidia’s push in the space.

Jensen Huang sold 100,000 shares over two trading sessions on June 20 and June 23, generating proceeds of approximately $14.4 million.

Nvidia CEO begins selling shares under $865 million trading plan

Amazon has announced a sweeping £40 billion ($54 billion) investment plan for the United Kingdom over the next three years—its largest commitment to the country to date. The announcement comes as a major endorsement of Prime Minister Keir Starmer’s Labour government, which has made foreign investment and industrial regeneration central to its economic strategy.&nbsp;As per Reuters, the e-commerce and cloud giant will significantly expand its UK operations, create thousands of jobs, and scale up its physical infrastructure across logistics, offices, and data centres. The UK is Amazon’s third-largest global market after the United States and Germany.<h2>A major boost for the UK economy</h2>Downing Street hailed Amazon’s announcement as a “massive vote of confidence” in Britain’s economy. Prime Minister Starmer, whose government this week unveiled a new industrial strategy, called the investment proof that the UK remains “the best place to do business.” The Labour-led administration has placed economic growth and job creation at the heart of its agenda since coming to power in 2024.<h2>What’s in Amazon’s £40 billion plan?</h2>According to Reuters, Amazon’s investment will fund the construction of two new state-of-the-art fulfilment centres in the East Midlands, expected to open in 2027. It also includes fulfilment centres in Hull and Northampton, which are set to open in 2025 and 2026, respectively, and are projected to create around 2,000 jobs each.&nbsp;Beyond warehousing, Amazon plans to establish new delivery stations across the UK, expand and upgrade its network of over 100 existing operations sites, and enhance its transport infrastructure. The company will also build two new buildings at its London headquarters and redevelop the Bray Film Studios in Berkshire. The total investment also incorporates part of the £8 billion previously announced by Amazon Web Services in September 2024 for cloud infrastructure, as well as salaries for its UK workforce, which currently stands at 75,000.<h2>Foreign investment amid regulatory scrutiny</h2>The move is a timely win for the Starmer government, which has been pushing to revive Britain’s economic momentum through large-scale, high-value foreign investment. Amazon’s announcement comes despite regulatory scrutiny: as per Reuters, the UK’s grocery watchdog has launched an investigation into the company over possible breaches in supplier payment timelines.&nbsp;Still, the scale and timing of the investment reflect Amazon’s long-term confidence in the UK’s post-Brexit economic direction. It also highlights the growing importance of Britain within Amazon’s global strategy at a time of rising competition and geopolitical uncertainty across Europe and Asia.&nbsp;(With inputs from the agencies)&nbsp;

This expansion will create thousands of jobs, build new fulfilment centres, upgrade infrastructure, and enhance delivery networks. Despite regulatory scrutiny, the investment reflects Amazon confidence in the UK post Brexit economic climate and strategic importance in its global operations.

Amazon has announced a sweeping £40 billion ($54 billion) investment plan for the United Kingdom over the next three years—its largest commitment to the country to date. The announcement comes as a major endorsement of Prime Minister Keir Starmer’s Labour government, which has made foreign investment and industrial regeneration central to its economic strategy. As per Reuters, the e-commerce and cloud giant will significantly expand its UK operations, create thousands of jobs, and scale up its physical infrastructure across logistics, offices, and data centres. The UK is Amazon’s third-largest global market after the United States and Germany. A major boost for the UK economy Downing Street hailed Amazon’s announcement as a “massive vote of confidence” in Britain’s economy. Prime Minister Starmer, whose government this week unveiled a new industrial strategy, called the investment proof that the UK remains “the best place to do business.” The Labour-led administration has placed economic growth and job creation at the heart of its agenda since coming to power in 2024. What’s in Amazon’s £40 billion plan? According to Reuters, Amazon’s investment will fund the construction of two new state-of-the-art fulfilment centres in the East Midlands, expected to open in 2027. It also includes fulfilment centres in Hull and Northampton, which are set to open in 2025 and 2026, respectively, and are projected to create around 2,000 jobs each. Beyond warehousing, Amazon plans to establish new delivery stations across the UK, expand and upgrade its network of over 100 existing operations sites, and enhance its transport infrastructure. The company will also build two new buildings at its London headquarters and redevelop the Bray Film Studios in Berkshire. The total investment also incorporates part of the £8 billion previously announced by Amazon Web Services in September 2024 for cloud infrastructure, as well as salaries for its UK workforce, which currently stands at 75,000. Foreign investment amid regulatory scrutiny The move is a timely win for the Starmer government, which has been pushing to revive Britain’s economic momentum through large-scale, high-value foreign investment. Amazon’s announcement comes despite regulatory scrutiny: as per Reuters, the UK’s grocery watchdog has launched an investigation into the company over possible breaches in supplier payment timelines. Still, the scale and timing of the investment reflect Amazon’s long-term confidence in the UK’s post-Brexit economic direction. It also highlights the growing importance of Britain within Amazon’s global strategy at a time of rising competition and geopolitical uncertainty across Europe and Asia. (With inputs from the agencies)

Amazon has revealed a £40 billion investment plan for the UK over three years, its largest commitment to the country, supporting Prime Minister Keir Starmer's Labour government.&nbsp;

Is Amazon’s $54 billion UK plan a turning point for Starmer’s economic strategy?