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In a move aimed at curbing rising kitchen expenses and stabilising the edible oil market, the Indian government has halved the basic import duty on key crude edible oils.&nbsp;As reported by Reuters, the decision, announced on May 30, is expected to bring some relief to households battling food inflation while also giving a much-needed boost to India’s vegetable oil refining sector.&nbsp;Here’s a detailed look at why the move was made, what’s fuelling the price spike globally, and how this may impact your monthly grocery budget.<h2>Why did the government cut the duty?</h2>The Centre has reduced the basic customs duty on crude palm oil, crude soyoil, and crude sunflower oil from 20 per cent to 10 per cent, according to a government notification cited by Reuters.&nbsp;&nbsp;Once you factor in the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge, the effective import duty now stands at 16.5 per cent, down from 27.5 per cent, as per PTI, quoting Food Secretary Sanjeev Chopra.&nbsp;This move serves a dual purpose: to soften retail edible oil prices for inflation-hit consumers and to encourage the import of crude oils over refined ones, hereby strengthening domestic refining operations by giving them a cost advantage.<h2>Edible oil inflation is real</h2>The timing of the duty cut is directly linked to rising edible oil prices. According to April 2025 data from the Ministry of Consumer Affairs, edible oil inflation rose by 17.4 per cent year-on-year, despite a healthy domestic mustard harvest.&nbsp;Mustard oil prices have climbed by 25 per cent, averaging over ₹170 per litre. Palm oil, widely used in Indian households and the food industry, has surged by 34 per cent to ₹134 per litre. Sunflower oil prices are up 30 per cent, while soyoil which is usually more stable has still seen an 18 per cent increase, now retailing at around ₹147 per litre.&nbsp;These sharp hikes have made cooking oils a significant burden on household budgets, and the problem isn’t just homegrown.<h2>What’s driving the global price surge?</h2>A combination of international supply shocks and geopolitical disruptions has pushed edible oil prices higher worldwide.&nbsp;Crop damage in Latin America, particularly in Brazil and Argentina has hit soyabean and sunflower output, as reported by Bloomberg. At the same time, export restrictions from Indonesia and Malaysia, the world’s top palm oil producers, have tightened global availability.&nbsp;Geopolitical conflicts are also adding pressure. The ongoing war in Ukraine and sanctions on Russia, both major exporters of sunflower oil, have disrupted trade routes and caused uncertainty in global supply chains, according to Reuters.&nbsp;Given that India reportedly imports more than 70 per cent of its edible oil requirements, these global disruptions quickly translate into higher domestic prices. India’s primary suppliers include Indonesia, Malaysia, and Thailand for palm oil, and Argentina, Brazil, Russia, and Ukraine for sunflower and soyoil.<h2>A boost for domestic refiners</h2>The duty cut has been welcomed by India’s edible oil industry, particularly by refiners who process imported crude oil.&nbsp;“This is a win-win situation for vegetable oil refiners and consumers,” said B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), speaking to PTI.&nbsp;With the duty gap between crude and refined oil widening to 19.25 per cent, it is now more cost-effective to import crude oils and refine them locally. Industry experts believe this will improve capacity utilisation at domestic units and eventually help bring down retail prices.&nbsp;The Indian Vegetable Oil Producers’ Association (IVPA) also expressed support. Its president, Sudhakar Desai, told PTI, “We thank the government for accepting our recommendation to increase the duty differential. It will help revive the refining sector.”<h2>The policy see-saw</h2>This cut reverses an earlier policy shift made in September 2024, when the government increased the basic customs duty on crude edible oils from zero to 20 per cent, raising the total effective duty to 27.5 per cent. The aim then was to protect Indian oilseed farmers and control the influx of cheaper imported oils.&nbsp;But with food inflation mounting and global edible oil prices rising sharply, the government has recalibrated its approach which is likely with an eye on both consumer sentiment and upcoming elections. For many Indian households, cooking oil is a non-negotiable staple, and unchecked prices risk becoming a political liability.<h2>What happens next?</h2>The reduction in import duty is expected to ease edible oil prices in the short term, especially for palm, soy, and sunflower oils. It could also increase demand in the retail market and give a cost advantage to domestic refiners over fully processed imports.&nbsp;However, the long-term impact will depend heavily on global dynamics. If supply disruptions persist due to geopolitical unrest or climate-related crop failures and the prices may remain volatile despite the duty cut.&nbsp;For now, the Centre has sent a clear message: it is willing to intervene when international headwinds threaten domestic stability. Whether this move will bring sustained relief remains to be seen, but it could offer some cushion to consumers, and a lifeline to India’s refining industry.

Business & Economy: This move aims to soften retail edible oil prices for inflation-hit consumers and encourage crude oil imports over refined ones, strengthening domestic refining operations.

In a move aimed at curbing rising kitchen expenses and stabilising the edible oil market, the Indian government has halved the basic import duty on key crude edible oils. As reported by Reuters, the decision, announced on May 30, is expected to bring some relief to households battling food inflation while also giving a much-needed boost to India’s vegetable oil refining sector. Here’s a detailed look at why the move was made, what’s fuelling the price spike globally, and how this may impact your monthly grocery budget. Why did the government cut the duty? The Centre has reduced the basic customs duty on crude palm oil, crude soyoil, and crude sunflower oil from 20 per cent to 10 per cent, according to a government notification cited by Reuters. Once you factor in the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge, the effective import duty now stands at 16.5 per cent, down from 27.5 per cent, as per PTI, quoting Food Secretary Sanjeev Chopra. This move serves a dual purpose: to soften retail edible oil prices for inflation-hit consumers and to encourage the import of crude oils over refined ones, hereby strengthening domestic refining operations by giving them a cost advantage. Edible oil inflation is real The timing of the duty cut is directly linked to rising edible oil prices. According to April 2025 data from the Ministry of Consumer Affairs, edible oil inflation rose by 17.4 per cent year-on-year, despite a healthy domestic mustard harvest. Mustard oil prices have climbed by 25 per cent, averaging over ₹170 per litre. Palm oil, widely used in Indian households and the food industry, has surged by 34 per cent to ₹134 per litre. Sunflower oil prices are up 30 per cent, while soyoil which is usually more stable has still seen an 18 per cent increase, now retailing at around ₹147 per litre. These sharp hikes have made cooking oils a significant burden on household budgets, and the problem isn’t just homegrown. What’s driving the global price surge? A combination of international supply shocks and geopolitical disruptions has pushed edible oil prices higher worldwide. Crop damage in Latin America, particularly in Brazil and Argentina has hit soyabean and sunflower output, as reported by Bloomberg. At the same time, export restrictions from Indonesia and Malaysia, the world’s top palm oil producers, have tightened global availability. Geopolitical conflicts are also adding pressure. The ongoing war in Ukraine and sanctions on Russia, both major exporters of sunflower oil, have disrupted trade routes and caused uncertainty in global supply chains, according to Reuters. Given that India reportedly imports more than 70 per cent of its edible oil requirements, these global disruptions quickly translate into higher domestic prices. India’s primary suppliers include Indonesia, Malaysia, and Thailand for palm oil, and Argentina, Brazil, Russia, and Ukraine for sunflower and soyoil. A boost for domestic refiners The duty cut has been welcomed by India’s edible oil industry, particularly by refiners who process imported crude oil. “This is a win-win situation for vegetable oil refiners and consumers,” said B.V. Mehta, Executive Director of the Solvent Extractors’ Association of India (SEA), speaking to PTI. With the duty gap between crude and refined oil widening to 19.25 per cent, it is now more cost-effective to import crude oils and refine them locally. Industry experts believe this will improve capacity utilisation at domestic units and eventually help bring down retail prices. The Indian Vegetable Oil Producers’ Association (IVPA) also expressed support. Its president, Sudhakar Desai, told PTI, “We thank the government for accepting our recommendation to increase the duty differential. It will help revive the refining sector.” The policy see-saw This cut reverses an earlier policy shift made in September 2024, when the government increased the basic customs duty on crude edible oils from zero to 20 per cent, raising the total effective duty to 27.5 per cent. The aim then was to protect Indian oilseed farmers and control the influx of cheaper imported oils. But with food inflation mounting and global edible oil prices rising sharply, the government has recalibrated its approach which is likely with an eye on both consumer sentiment and upcoming elections. For many Indian households, cooking oil is a non-negotiable staple, and unchecked prices risk becoming a political liability. What happens next? The reduction in import duty is expected to ease edible oil prices in the short term, especially for palm, soy, and sunflower oils. It could also increase demand in the retail market and give a cost advantage to domestic refiners over fully processed imports. However, the long-term impact will depend heavily on global dynamics. If supply disruptions persist due to geopolitical unrest or climate-related crop failures and the prices may remain volatile despite the duty cut. For now, the Centre has sent a clear message: it is willing to intervene when international headwinds threaten domestic stability. Whether this move will bring sustained relief remains to be seen, but it could offer some cushion to consumers, and a lifeline to India’s refining industry.

India reduced customs duty on edible crude palm oil, soyoil, and sunflower oil from 20% to 10%.&nbsp;

India cuts crude edible oil import duty: What it means for consumers and the industry?

China’s manufacturing activity contracted for a second consecutive month in May, but at a slower pace than April, thanks in part to a temporary easing of trade tensions with the United States.&nbsp;According to official data released on May 31 by the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts.&nbsp;PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction. A reading above 50 indicates expansion, and below 50, a contraction.&nbsp;The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington, during which both sides agreed to slash previously imposed tariffs.&nbsp;The US reduced its average tariffs from 145 per cent to around 30 per cent, while China cut its own duties on American goods from 125 per cent to 10 per cent. The temporary rollback helped boost trade flows and revive some export activity.&nbsp;However, the recovery remains fragile. The new export orders sub-index climbed to 47.5 from 44.7 in April, and the new orders sub-index rose to 49.8 from 49.2—still below the key 50-point level. This signals continued contraction in overall demand despite some stabilisation in external trade.&nbsp;The non-manufacturing PMI, which includes services and construction, slipped slightly to 50.3 in May from 50.4 the previous month, remaining just above the expansion threshold. The composite index, combining both manufacturing and services, edged up to 50.4.&nbsp;Tariff pause brings temporary relief&nbsp;The recent tariff pause provided a modest lift to factory output, with some Chinese exporters reporting resumed orders from US partners. Still, the broader outlook remains clouded by uncertainty.&nbsp;On May 30, US President Donald Trump accused China of violating the newly reached trade agreement, declaring in a Truth Social post that he would no longer be “Mr Nice Guy”. He followed up by announcing a doubling of steel and aluminium tariffs to 50 per cent, a move that has once again rattled global trade sentiment.&nbsp;Tensions were further inflamed as the US began revoking visas for Chinese students, prompting a formal protest from Beijing.&nbsp;Despite the recent improvement in PMI data, economists remain cautious. According to a Bloomberg survey conducted in late May, China’s GDP is projected to grow 4.5 per cent in 2025, below the government’s 5 per cent target. While exports are expected to grow 1.1 per cent—a modest upgrade from April’s forecasted contraction—ongoing deflationary pressures and weak domestic consumption continue to weigh heavily on the economy.&nbsp;To counter the slowdown, China’s central bank recently introduced new stimulus measures, including interest rate cuts and a significant liquidity injection. Analysts believe that while the tariff reprieve may ease the need for more aggressive action, Beijing may still need to deploy further support if trade talks stall or domestic momentum weakens.&nbsp;For now, the slight rebound in manufacturing offers a tentative sign of stability, but with trade tensions escalating once again, the sustainability of that recovery remains in question.

China's manufacturing PMI rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington.

China’s manufacturing activity contracted for a second consecutive month in May, but at a slower pace than April, thanks in part to a temporary easing of trade tensions with the United States. According to official data released on May 31 by the National Bureau of Statistics, the manufacturing purchasing managers’ index (PMI) rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. PMI is measured on a scale from 0 to 100, where 50 marks the cutoff between expansion and contraction. A reading above 50 indicates expansion, and below 50, a contraction. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington, during which both sides agreed to slash previously imposed tariffs. The US reduced its average tariffs from 145 per cent to around 30 per cent, while China cut its own duties on American goods from 125 per cent to 10 per cent. The temporary rollback helped boost trade flows and revive some export activity. However, the recovery remains fragile. The new export orders sub-index climbed to 47.5 from 44.7 in April, and the new orders sub-index rose to 49.8 from 49.2—still below the key 50-point level. This signals continued contraction in overall demand despite some stabilisation in external trade. The non-manufacturing PMI, which includes services and construction, slipped slightly to 50.3 in May from 50.4 the previous month, remaining just above the expansion threshold. The composite index, combining both manufacturing and services, edged up to 50.4. Tariff pause brings temporary relief The recent tariff pause provided a modest lift to factory output, with some Chinese exporters reporting resumed orders from US partners. Still, the broader outlook remains clouded by uncertainty. On May 30, US President Donald Trump accused China of violating the newly reached trade agreement, declaring in a Truth Social post that he would no longer be “Mr Nice Guy”. He followed up by announcing a doubling of steel and aluminium tariffs to 50 per cent, a move that has once again rattled global trade sentiment. Tensions were further inflamed as the US began revoking visas for Chinese students, prompting a formal protest from Beijing. Despite the recent improvement in PMI data, economists remain cautious. According to a Bloomberg survey conducted in late May, China’s GDP is projected to grow 4.5 per cent in 2025, below the government’s 5 per cent target. While exports are expected to grow 1.1 per cent—a modest upgrade from April’s forecasted contraction—ongoing deflationary pressures and weak domestic consumption continue to weigh heavily on the economy. To counter the slowdown, China’s central bank recently introduced new stimulus measures, including interest rate cuts and a significant liquidity injection. Analysts believe that while the tariff reprieve may ease the need for more aggressive action, Beijing may still need to deploy further support if trade talks stall or domestic momentum weakens. For now, the slight rebound in manufacturing offers a tentative sign of stability, but with trade tensions escalating once again, the sustainability of that recovery remains in question.

China's manufacturing PMI rose to 49.5 in May from 49.0 in April, aligning with economists’ forecasts. The improvement follows a 90-day trade truce reached earlier this month between Beijing and Washington.

China’s factory slump eases in May after tariff truce with US

US consumer spending barely rose in April as households tightened their wallets and diverted funds into savings. This reportedly reflects growing unease over the country’s economic trajectory amid erratic tariff policies and legal roadblocks to US President Donald Trump’s sweeping trade duties. According to Reuters, citing data from the US Commerce Department, consumer spending, the backbone of the US economy climbed just 0.2 per cent in April, a steep slowdown from March’s 0.7 per cent gain.&nbsp;&nbsp;The deceleration suggests that Americans, rattled by recent tariff shocks and broader uncertainty, are preparing for leaner times.<h2>Spending weakens as tariff anxiety rises</h2>While services spending held firm—buoyed by housing, utilities, healthcare, and hospitality—goods spending softened considerably.&nbsp; Shoppers cut back on vehicles, apparel, and recreational goods, which had seen a pre-emptive boost in March due to stockpiling before new tariffs, Reuters reported. President Trump’s new import duties, largely targeting Chinese goods, had been slashed to 30 per cent from 145 per cent through mid-August, following a ruling by a US trade court, as per Reuters.&nbsp;&nbsp;The court found that the president had overstepped his authority. However, a federal appeals court temporarily reinstated most of the duties the next day, plunging the economic outlook into further ambiguity.&nbsp;“The Liberation Day tariff shock clearly spooked consumers,” said Scott Anderson, Chief US Economist at BMO Capital Markets, in a statement to Reuters. “They’re now saving for a rainy day.”<h2>Savings jump to one-year high</h2>That caution was reflected in the personal saving rate, which jumped to 4.9 per cent in April, the highest since March 2024, from 4.3 per cent in March, according to the US Commerce Department’s Bureau of Economic Analysis (BEA), as cited by Reuters.&nbsp;Adding to the economic unease, the US economy shrank at an annualised rate of 0.2 per cent in Q1 2025, the first contraction in three years. This decline was mainly attributed to a surge in imports before tariffs kicked in, according to Reuters, referencing official government data.&nbsp;In a separate report, the US Census Bureau stated that the goods trade deficit shrank by 46 per cent to $87.6 billion in April. This was due to a sharp decline in imports, which fell by $68.4 billion to $276.1 billion, while goods exports rose by $6.3 billion to $188.5 billion.<h2>Inflation eases, but Fed remains on edge</h2>Inflation remained subdued in April. The PCE Price Index, the Federal Reserve’s preferred inflation measure, rose 0.1 per cent in April after remaining flat in March, as per the BEA data cited by Reuters.&nbsp;&nbsp;On a yearly basis, overall PCE inflation increased 2.1 per cent, while core PCE, which excludes food and energy, climbed 2.5 per cent, marking the smallest increase since March 2021, as per Reuters.&nbsp;&nbsp;Despite these modest gains, the Federal Reserve remains cautious. According to minutes from its May 6–7 meeting, reviewed by Reuters, Fed officials highlighted concerns about rising short-term inflation expectations.&nbsp;&nbsp;Some policymakers had reportedly warned that these expectations could influence businesses to raise prices and push long-term inflation even higher.<h2>Trade deficit shrinks but sentiment deteriorates</h2>According to the US Census Bureau, the collapse in imports and slight export gains contributed to the shrinking trade deficit.&nbsp; However, economists interviewed by Reuters cautioned that the downturn in imports may be temporary and tied to the unpredictable implementation of trade tariffs.&nbsp;Markets reacted nervously. As per Reuters, US stocks opened lower, Treasury yields rose slightly, and the dollar strengthened against major global currencies on Thursday.<h2>Outlook clouded by policy unpredictability</h2>With Trump’s tariffs caught in a legal tug-of-war and inflation trending downward but unstable, the economic recovery remains fragile.&nbsp;&nbsp;Economists quoted by Reuters suggested that while softer inflation offers some relief, uncertainty surrounding tariff rulings is expected to weigh heavily on both consumer confidence and business investment in the months ahead.

Business & Economy: The Liberation Day tariff shock spooked consumers, who are now saving for a rainy day. 

US consumer spending barely rose in April as households tightened their wallets and diverted funds into savings. This reportedly reflects growing unease over the country’s economic trajectory amid erratic tariff policies and legal roadblocks to US President Donald Trump’s sweeping trade duties. According to Reuters, citing data from the US Commerce Department, consumer spending, the backbone of the US economy climbed just 0.2 per cent in April, a steep slowdown from March’s 0.7 per cent gain. The deceleration suggests that Americans, rattled by recent tariff shocks and broader uncertainty, are preparing for leaner times. Spending weakens as tariff anxiety rises While services spending held firm—buoyed by housing, utilities, healthcare, and hospitality—goods spending softened considerably. Shoppers cut back on vehicles, apparel, and recreational goods, which had seen a pre-emptive boost in March due to stockpiling before new tariffs, Reuters reported. President Trump’s new import duties, largely targeting Chinese goods, had been slashed to 30 per cent from 145 per cent through mid-August, following a ruling by a US trade court, as per Reuters. The court found that the president had overstepped his authority. However, a federal appeals court temporarily reinstated most of the duties the next day, plunging the economic outlook into further ambiguity. “The Liberation Day tariff shock clearly spooked consumers,” said Scott Anderson, Chief US Economist at BMO Capital Markets, in a statement to Reuters. “They’re now saving for a rainy day.” Savings jump to one-year high That caution was reflected in the personal saving rate, which jumped to 4.9 per cent in April, the highest since March 2024, from 4.3 per cent in March, according to the US Commerce Department’s Bureau of Economic Analysis (BEA), as cited by Reuters. Adding to the economic unease, the US economy shrank at an annualised rate of 0.2 per cent in Q1 2025, the first contraction in three years. This decline was mainly attributed to a surge in imports before tariffs kicked in, according to Reuters, referencing official government data. In a separate report, the US Census Bureau stated that the goods trade deficit shrank by 46 per cent to $87.6 billion in April. This was due to a sharp decline in imports, which fell by $68.4 billion to $276.1 billion, while goods exports rose by $6.3 billion to $188.5 billion. Inflation eases, but Fed remains on edge Inflation remained subdued in April. The PCE Price Index, the Federal Reserve’s preferred inflation measure, rose 0.1 per cent in April after remaining flat in March, as per the BEA data cited by Reuters. On a yearly basis, overall PCE inflation increased 2.1 per cent, while core PCE, which excludes food and energy, climbed 2.5 per cent, marking the smallest increase since March 2021, as per Reuters. Despite these modest gains, the Federal Reserve remains cautious. According to minutes from its May 6–7 meeting, reviewed by Reuters, Fed officials highlighted concerns about rising short-term inflation expectations. Some policymakers had reportedly warned that these expectations could influence businesses to raise prices and push long-term inflation even higher. Trade deficit shrinks but sentiment deteriorates According to the US Census Bureau, the collapse in imports and slight export gains contributed to the shrinking trade deficit. However, economists interviewed by Reuters cautioned that the downturn in imports may be temporary and tied to the unpredictable implementation of trade tariffs. Markets reacted nervously. As per Reuters, US stocks opened lower, Treasury yields rose slightly, and the dollar strengthened against major global currencies on Thursday. Outlook clouded by policy unpredictability With Trump’s tariffs caught in a legal tug-of-war and inflation trending downward but unstable, the economic recovery remains fragile. Economists quoted by Reuters suggested that while softer inflation offers some relief, uncertainty surrounding tariff rulings is expected to weigh heavily on both consumer confidence and business investment in the months ahead.

US consumer spending barely increased in April, as households strained their finances and shifted funds into savings.&nbsp;

US consumer spending falters in April as inflation cools and savings rise

&nbsp;US President Donald Trump announced on May 30 that he would increase tariffs on steel and aluminium imports, raising them from 25 per cent to 50 per cent. The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry.Speaking at the US Steel Mon Valley Works–Irvin plant in West Mifflin, Pennsylvania, Trump emphasised that the move would “further secure” the American steel industry. “At 25 per cent, they can sort of get over that fence. At 50 per cent they can no longer get over the fence,” he said, addressing the steelworkers at the rally.He added that the steel tariffs would protect jobs and prevent foreign steel producers from undercutting American manufacturers.The new tariff also offers a backstop for Trump’s promise that the US Steel-Nippon deal would benefit steelworkers in the critical battleground state of Pennsylvania.The steep tariff hikes come amid rising steel prices in the US, which have surged 16 per cent since Trump came to power in January 2025. As of March, steel in the US was priced at $984 per metric tonne, far above the prices in Europe ($690) and China ($392), according to the US Commerce Department.According to US import data for 2024, Canada is the largest supplier of steel to the US, with Brazil and Mexico following closely behind. Around 77 per cent of US steel imports in 2023-2024 came from the top 10 nations that export steel to the US. India ranks 14th among the list of top steel exporters to the US, according to the US Department of Commerce.While the tariff increases are designed to protect US steelworkers, they are expected to have significant implications for downstream industries, including construction and automotive manufacturing.Experts warn that the price hikes could lead to increased costs for building materials and could impact the price of housing and car production.&nbsp;Trump's shift on Nippon Steel deal&nbsp;In addition to the tariff announcement, Trump used the event to promote his administration’s backing of US Steel and Japan’s Nippon Steel deal.Earlier this year, Trump opposed Nippon’s bid to fully acquire US Steel on national security grounds. However, he reversed course in May, endorsing a revised “partnership” between the two companies.Trump described the deal as a “blockbuster agreement” that would ensure US Steel remains under American control while allowing for significant investment from Nippon. The Japanese steelmaker has pledged to invest $14 billion in US Steel’s facilities, including plants in Pennsylvania, Indiana, Arkansas, Alabama, and Minnesota.Nippon will also maintain US Steel’s blast furnaces at full capacity for at least a decade and guarantee no layoffs or outsourcing of jobs.Despite the promises, the deal has faced criticism from labour unions, particularly the United Steelworkers (USW). The union expressed concerns over the potential impact on national security and the future of American jobs.“We are most concerned with the impact that this merger of US Steel into a foreign competitor will have on national security, our members, and the communities where we live and work,” said USW President David McCall in a statement.At the rally, Trump reassured workers that the deal would maintain American control over the iconic steelmaker, stressing that US Steel’s headquarters would remain in Pittsburgh.He also highlighted the economic benefits of the deal, claiming it would create 70,000 jobs and inject $14 billion into the US economy. “You’re going to stay at an American company, you know that, right?” Trump said to the crowd.The deal is still under review by the Committee on Foreign Investment in the United States (CFIUS), which is tasked with ensuring that foreign investments do not pose a threat to national security.&nbsp;Mixed reactions&nbsp;While the US Steelworkers union has remained cautious about the deal, some individual workers have expressed optimism about the potential for modernisation and increased investment.USW, which represents thousands of hourly workers at US Steel facilities, said after Trump's speech that it had not participated in discussions involving Nippon Steel and the Trump administration, "nor were we consulted."“We cannot speculate about the meaning of the ‘planned partnership’,” said USW International President David McCall in a statement.“Whatever the deal structure, our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” McCall said. “The devil is always in the details,” he added.In contrast, Pennsylvania state lawmakers and federal officials have been more supportive of the deal, citing the investment commitments from Nippon Steel and the assurance that the US government will maintain significant control over the company.Highlighting the importance of national security in the deal’s structure, US Trade Representative Jamieson Greer told CNBC, “The underlying principle is that the United States should have control over key critical sectors.”Trump’s announcement marks a significant shift in his stance toward foreign investments in US industries, particularly in the steel sector. During his first term, he made clear his opposition to foreign ownership of US steelmakers. However, his new approach appears to be driven by a desire to protect jobs and ensure the long-term health of the American steel industry.The fate of US Steel remains a crucial issue for Trump, particularly as the company’s operations are tied to key battleground states like Pennsylvania. The deal with Nippon Steel could be a key factor in shaping voters' perceptions of Trump’s ability to protect American manufacturing.With the new tariffs set to take effect next week, the steel industry, and the broader economy, will likely feel the impact of Trump’s trade policies in the months to come. While the tariffs are aimed at securing the steel industry, the concerns regarding their long-term effects on prices, jobs, and global trade remain.

The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry.

US President Donald Trump announced on May 30 that he would increase tariffs on steel and aluminium imports, raising them from 25 per cent to 50 per cent. The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry. Speaking at the US Steel Mon Valley Works–Irvin plant in West Mifflin, Pennsylvania, Trump emphasised that the move would “further secure” the American steel industry. “At 25 per cent, they can sort of get over that fence. At 50 per cent they can no longer get over the fence,” he said, addressing the steelworkers at the rally. He added that the steel tariffs would protect jobs and prevent foreign steel producers from undercutting American manufacturers. The new tariff also offers a backstop for Trump’s promise that the US Steel-Nippon deal would benefit steelworkers in the critical battleground state of Pennsylvania. The steep tariff hikes come amid rising steel prices in the US, which have surged 16 per cent since Trump came to power in January 2025. As of March, steel in the US was priced at $984 per metric tonne, far above the prices in Europe ($690) and China ($392), according to the US Commerce Department. According to US import data for 2024, Canada is the largest supplier of steel to the US, with Brazil and Mexico following closely behind. Around 77 per cent of US steel imports in 2023-2024 came from the top 10 nations that export steel to the US. India ranks 14th among the list of top steel exporters to the US, according to the US Department of Commerce. While the tariff increases are designed to protect US steelworkers, they are expected to have significant implications for downstream industries, including construction and automotive manufacturing. Experts warn that the price hikes could lead to increased costs for building materials and could impact the price of housing and car production. Trump's shift on Nippon Steel deal In addition to the tariff announcement, Trump used the event to promote his administration’s backing of US Steel and Japan’s Nippon Steel deal. Earlier this year, Trump opposed Nippon’s bid to fully acquire US Steel on national security grounds. However, he reversed course in May, endorsing a revised “partnership” between the two companies. Trump described the deal as a “blockbuster agreement” that would ensure US Steel remains under American control while allowing for significant investment from Nippon. The Japanese steelmaker has pledged to invest $14 billion in US Steel’s facilities, including plants in Pennsylvania, Indiana, Arkansas, Alabama, and Minnesota. Nippon will also maintain US Steel’s blast furnaces at full capacity for at least a decade and guarantee no layoffs or outsourcing of jobs. Despite the promises, the deal has faced criticism from labour unions, particularly the United Steelworkers (USW). The union expressed concerns over the potential impact on national security and the future of American jobs. “We are most concerned with the impact that this merger of US Steel into a foreign competitor will have on national security, our members, and the communities where we live and work,” said USW President David McCall in a statement. At the rally, Trump reassured workers that the deal would maintain American control over the iconic steelmaker, stressing that US Steel’s headquarters would remain in Pittsburgh. He also highlighted the economic benefits of the deal, claiming it would create 70,000 jobs and inject $14 billion into the US economy. “You’re going to stay at an American company, you know that, right?” Trump said to the crowd. The deal is still under review by the Committee on Foreign Investment in the United States (CFIUS), which is tasked with ensuring that foreign investments do not pose a threat to national security. Mixed reactions While the US Steelworkers union has remained cautious about the deal, some individual workers have expressed optimism about the potential for modernisation and increased investment. USW, which represents thousands of hourly workers at US Steel facilities, said after Trump's speech that it had not participated in discussions involving Nippon Steel and the Trump administration, "nor were we consulted." “We cannot speculate about the meaning of the ‘planned partnership’,” said USW International President David McCall in a statement. “Whatever the deal structure, our primary concern remains with the impact that this merger of US Steel into a foreign competitor will have on national security, our members and the communities where we live and work,” McCall said. “The devil is always in the details,” he added. In contrast, Pennsylvania state lawmakers and federal officials have been more supportive of the deal, citing the investment commitments from Nippon Steel and the assurance that the US government will maintain significant control over the company. Highlighting the importance of national security in the deal’s structure, US Trade Representative Jamieson Greer told CNBC, “The underlying principle is that the United States should have control over key critical sectors.” Trump’s announcement marks a significant shift in his stance toward foreign investments in US industries, particularly in the steel sector. During his first term, he made clear his opposition to foreign ownership of US steelmakers. However, his new approach appears to be driven by a desire to protect jobs and ensure the long-term health of the American steel industry. The fate of US Steel remains a crucial issue for Trump, particularly as the company’s operations are tied to key battleground states like Pennsylvania. The deal with Nippon Steel could be a key factor in shaping voters' perceptions of Trump’s ability to protect American manufacturing. With the new tariffs set to take effect next week, the steel industry, and the broader economy, will likely feel the impact of Trump’s trade policies in the months to come. While the tariffs are aimed at securing the steel industry, the concerns regarding their long-term effects on prices, jobs, and global trade remain.

The new tariff rates, which will go into effect on June 4, are part of Trump’s ongoing effort to bolster American manufacturing and secure the US steel industry.

Trump doubles steel tariffs to 50% in push to protect US industry

The RBI annual report shows a nuanced picture of counterfeiting in India. Even though there is a decrease in the total number of counterfeited notes for the third consecutive year, there has been a significant surge in the counterfeiting of Rs 500 notes.&nbsp;According to the report released on May 29, 2025, banks have detected 2,17,396 fake currency notes in FY 25, a decrease in number from 2,22,639 in FY24 and &nbsp;2,25,769 in FY23, implying the enhanced security features of the banknotes and increased vigilance in the banking sector.&nbsp;Notably, the troubling trend is the increase in counterfeit Rs 500 notes, which witnessed a year-over-year (y-o-y) growth of 37.3 per cent, with 1.18 lakh fake notes being detected in FY25, up from 85,711 detected in FY24. A similar trend was observed for Rs 200 notes, with a fake currency count of 32,660.A contrasting trend is seen for counterfeit Rs 2000 notes, with only 3,508 pieces compared to the 26,035 of last year, a total decrease of 86.5 per cent. A similar trend was observed for the counterfeit detection of the lower denominations, like Rs 10, Rs 20, Rs 50 and Rs 100.&nbsp;<h2>Why is it alarming</h2>This is alarming considering the distribution of denominations in the notes that are in circulation in the market. Rs500 constitutes 40.9 per cent of all the currency in circulation, and it accounts for 80.6 per cent of the total value of the market currencies. So this denomination is central to India's cash flow. Demonatisation which was announced in 2016 to cripple terror funding, counterfeiting and reduce black money in circulation, doesn't reflect in the data. The fake currency note of Rs 2000 did witness a decline, which is partly due to its gradual withdrawal from circulation. Security agencies have persistently established a link between counterfeiting and terrorism. In the early 2010s, Indian security agencies traced counterfeit notes to Pakistan ISI-backed printing facilities. This recent RBI report is counter to the government's narrative and raises major red flags.The central bank is responding to these challenges with increased vigilance. It has ceased printing of Rs 2, Rs 5 and Rs 2000 notes. It is also promoting the Indian digital rupee, with its value increased by 334 per cent in 2024-25.&nbsp;&nbsp;

RBI reports surge in counterfeit Rs 500 Notes amid overall decline in fake currency detection 

The RBI annual report shows a nuanced picture of counterfeiting in India. Even though there is a decrease in the total number of counterfeited notes for the third consecutive year, there has been a significant surge in the counterfeiting of Rs 500 notes. According to the report released on May 29, 2025, banks have detected 2,17,396 fake currency notes in FY 25, a decrease in number from 2,22,639 in FY24 and 2,25,769 in FY23, implying the enhanced security features of the banknotes and increased vigilance in the banking sector. Notably, the troubling trend is the increase in counterfeit Rs 500 notes, which witnessed a year-over-year (y-o-y) growth of 37.3 per cent, with 1.18 lakh fake notes being detected in FY25, up from 85,711 detected in FY24. A similar trend was observed for Rs 200 notes, with a fake currency count of 32,660. A contrasting trend is seen for counterfeit Rs 2000 notes, with only 3,508 pieces compared to the 26,035 of last year, a total decrease of 86.5 per cent. A similar trend was observed for the counterfeit detection of the lower denominations, like Rs 10, Rs 20, Rs 50 and Rs 100. Why is it alarming This is alarming considering the distribution of denominations in the notes that are in circulation in the market. Rs500 constitutes 40.9 per cent of all the currency in circulation, and it accounts for 80.6 per cent of the total value of the market currencies. So this denomination is central to India's cash flow. Demonatisation which was announced in 2016 to cripple terror funding, counterfeiting and reduce black money in circulation, doesn't reflect in the data. The fake currency note of Rs 2000 did witness a decline, which is partly due to its gradual withdrawal from circulation. Security agencies have persistently established a link between counterfeiting and terrorism. In the early 2010s, Indian security agencies traced counterfeit notes to Pakistan ISI-backed printing facilities. This recent RBI report is counter to the government's narrative and raises major red flags. The central bank is responding to these challenges with increased vigilance. It has ceased printing of Rs 2, Rs 5 and Rs 2000 notes. It is also promoting the Indian digital rupee, with its value increased by 334 per cent in 2024-25.

RBI reports surge in counterfeit Rs 500 Notes amid overall decline in fake currency detection&nbsp;

RBI flags increase in counterfeits of high value denomination

India's economic growth for the fiscal year 2024-25 (FY25) has significantly slowed, with GDP expanding by only 6.5 per cent, the weakest pace in four years.&nbsp;&nbsp;This decline from the previous year’s 9.2 per cent reflects a combination of domestic challenges, including fiscal stress, slower consumer spending, and external economic pressures. The government has faced difficulties in meeting its fiscal targets, and quarterly growth numbers indicate a downward trajectory almost throughout the fiscal year.&nbsp;&nbsp;The economy grew at 7.4 per cent in the fourth quarter (Q4) of FY25.<h2>Weakening growth and fiscal deficit pressures</h2>India's growth slowdown was more pronounced in the first three quarters of FY25, with the economy expanding at 6.7 per cent in Q1 FY25, 5.4 per cent in Q2, and 6.2 per cent in Q3. The Q4 growth of 7.4 per cent helped somewhat, but the overall annual growth was still significantly below expectations.&nbsp;Several sectors, including manufacturing, construction, and agriculture, faced headwinds, contributing to the deceleration.&nbsp;Meanwhile, the Indian government is grappling with an increasing fiscal deficit, which reached alarming levels in FY25. Despite fiscal consolidation efforts, India's fiscal deficit for FY25 stood at&nbsp;₹15.77 lakh crore ($184.29 billion), slightly higher than the ₹15.70 lakh crore ($183.47 billion) estimated for the year, according to the provisional data released by the Controller General of Accounts (CGA) on May 30.This widening deficit is primarily driven by higher-than-expected government expenditure, especially on welfare schemes, infrastructure development, and energy subsidies.&nbsp;&nbsp;The Reserve Bank of India (RBI) has been forced to intervene, transferring a larger-than-expected dividend to the government to ease some of the fiscal pressures. This has provided some short-term relief, but the overall fiscal situation remains precarious.&nbsp;<h2>Risks and future projections</h2>The outlook for India’s economy in FY26 remains uncertain, with risks to growth continuing to mount. A key concern is the ongoing global economic volatility, which has affected trade and investment flows into India.&nbsp;&nbsp;With slower growth in major economies like the US, Europe, and China, the Indian economy faces challenges in sustaining high growth in exports and attracting foreign investments into the country.Additionally, geopolitical tensions and the continued impact of conflicts across the globe have further added to global instability, making it more difficult for emerging economies like India to maintain robust growth.&nbsp;Inflation has remained persistently high throughout FY25. Although the RBI has cut interest rates in an attempt to curb inflationary pressures, the cost of food and fuel has continued to rise, limiting the purchasing power of the consumers and dampening overall demand.&nbsp;&nbsp;The government has been working to contain inflation by implementing various supply-side measures, but the persistent price pressures and strain on global supply chains are expected to remain a challenge in the near future.&nbsp;Looking ahead, India's growth prospects will largely depend on the government's ability to balance fiscal responsibility with necessary spending on infrastructure, social welfare, and job creation. The country will also need to focus on addressing structural issues such as labour market inefficiencies and bottlenecks in key sectors to drive future growth.&nbsp;&nbsp;While the long-term potential of the Indian economy remains strong, immediate challenges require careful management of fiscal policy, inflation, and external factors that may hinder recovery. &nbsp;

Business & Economy: The government has struggled to meet its fiscal targets, with quarterly growth numbers showing a downward trajectory. 

India's economic growth for the fiscal year 2024-25 (FY25) has significantly slowed, with GDP expanding by only 6.5 per cent, the weakest pace in four years. This decline from the previous year’s 9.2 per cent reflects a combination of domestic challenges, including fiscal stress, slower consumer spending, and external economic pressures. The government has faced difficulties in meeting its fiscal targets, and quarterly growth numbers indicate a downward trajectory almost throughout the fiscal year. The economy grew at 7.4 per cent in the fourth quarter (Q4) of FY25. Weakening growth and fiscal deficit pressures India's growth slowdown was more pronounced in the first three quarters of FY25, with the economy expanding at 6.7 per cent in Q1 FY25, 5.4 per cent in Q2, and 6.2 per cent in Q3. The Q4 growth of 7.4 per cent helped somewhat, but the overall annual growth was still significantly below expectations. Several sectors, including manufacturing, construction, and agriculture, faced headwinds, contributing to the deceleration. Meanwhile, the Indian government is grappling with an increasing fiscal deficit, which reached alarming levels in FY25. Despite fiscal consolidation efforts, India's fiscal deficit for FY25 stood at ₹15.77 lakh crore ($184.29 billion), slightly higher than the ₹15.70 lakh crore ($183.47 billion) estimated for the year, according to the provisional data released by the Controller General of Accounts (CGA) on May 30. This widening deficit is primarily driven by higher-than-expected government expenditure, especially on welfare schemes, infrastructure development, and energy subsidies. The Reserve Bank of India (RBI) has been forced to intervene, transferring a larger-than-expected dividend to the government to ease some of the fiscal pressures. This has provided some short-term relief, but the overall fiscal situation remains precarious. Risks and future projections The outlook for India’s economy in FY26 remains uncertain, with risks to growth continuing to mount. A key concern is the ongoing global economic volatility, which has affected trade and investment flows into India. With slower growth in major economies like the US, Europe, and China, the Indian economy faces challenges in sustaining high growth in exports and attracting foreign investments into the country. Additionally, geopolitical tensions and the continued impact of conflicts across the globe have further added to global instability, making it more difficult for emerging economies like India to maintain robust growth. Inflation has remained persistently high throughout FY25. Although the RBI has cut interest rates in an attempt to curb inflationary pressures, the cost of food and fuel has continued to rise, limiting the purchasing power of the consumers and dampening overall demand. The government has been working to contain inflation by implementing various supply-side measures, but the persistent price pressures and strain on global supply chains are expected to remain a challenge in the near future. Looking ahead, India's growth prospects will largely depend on the government's ability to balance fiscal responsibility with necessary spending on infrastructure, social welfare, and job creation. The country will also need to focus on addressing structural issues such as labour market inefficiencies and bottlenecks in key sectors to drive future growth. While the long-term potential of the Indian economy remains strong, immediate challenges require careful management of fiscal policy, inflation, and external factors that may hinder recovery.

India's economic growth for FY25 has slowed to 6.5%, the weakest pace in four years, due to domestic challenges such as fiscal stress, slower consumer spending, and external economic pressures.&nbsp;

India's GDP growth slows to 6.5% in FY25 amid fiscal and global headwinds

Since Russia's invasion of Ukraine in February 2022, European countries and the US have been instrumental in providing military, financial, and humanitarian support to Ukraine.&nbsp;Yet, as the war continues to devastate the region, a glaring paradox emerges: Western countries, despite their public support for Ukraine, are indirectly funding Russia's war machine by continuing to purchase Russian fossil fuels.&nbsp;This situation underscores the complex and often contradictory nature of international trade, where geopolitical rivalries and economic realities clash in troubling ways.Before Russia’s invasion of Ukraine, European countries were deeply reliant on Russian energy. In 2021, Europe imported around 40 per cent of its natural gas and 25 per cent of its oil from Russia. While some European nations had begun moving towards energy diversification, the Russian invasion intensified efforts to break free from Russian fossil fuels.&nbsp;However, the transition has not been as swift as many hoped, and despite sanctions and promises to reduce reliance on Russian energy, European countries are still purchasing significant quantities of Russian oil, gas, and coal.According to a&nbsp;BBC report, Russia’s fossil fuel exports generated an astonishing $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West.&nbsp;While the European Union (EU) and the US have significantly reduced their purchases of Russian energy, countries like China, India, and Turkey have stepped in to absorb the surplus. This dynamic has allowed Russia to cushion the blow of Western sanctions, ultimately prolonging the war.In recent months, Europe has made substantial progress in reducing its dependence on Russian gas, but the same cannot be said for oil. The EU introduced a price cap on Russian crude oil and refined products in December 2022, but countries like Hungary have continued to rely on Russian oil, undermining the sanctions.&nbsp;While the EU as a whole has made strides in curbing Russian energy imports,&nbsp;Energy and Clean Air notes that oil shipments from Russia to Europe still persist through indirect channels, with some countries using intermediary nations to procure Russian oil. This loophole has allowed Russia to continue reaping profits despite the sanctions.<h2>How Russia evades sanctions</h2>One of the West’s key tools for limiting Russia’s oil revenue is the price cap, implemented by the G7 and the EU in December 2022. This price cap was designed to prevent Russia from benefiting from higher oil prices while still allowing oil exports to continue. The idea was to reduce Russia’s ability to fund its war while maintaining stability in global energy markets. However, as&nbsp;Russia Fossil Tracker points out, the price cap has had limited success.The mechanism, which caps the price of Russian oil at $60 per barrel, has been difficult to enforce effectively. Russia has circumvented the price cap by rerouting its oil exports to non-Western countries, such as China and India, where it can sell oil at a discount without facing Western restrictions.&nbsp;In fact, as the&nbsp;Atlantic Council highlights, these countries have been buying Russian oil in increasing quantities, often at prices far below the cap. Russia has been able to sell its oil at discounts ranging from $20 to $30 per barrel, making it attractive for non-Western countries to purchase, further diminishing the intended effect of Western sanctions.This dynamic highlights a significant flaw in the West’s strategy. While the EU and the US can reduce their purchases of Russian energy, they cannot fully control the global flow of oil and gas. With countries like China and India buying discounted Russian oil, Moscow continues to receive substantial revenue, which in turn funds its war effort.&nbsp;As long as Russia’s energy exports are in high demand, the country will be able to navigate around Western sanctions and continue its military operations in Ukraine.Moreover, Russia’s energy companies, such as Gazprom and Rosneft, have also found ways to maintain their production levels, despite sanctions. These firms have managed to retain access to global markets, including the sale of natural gas and oil to non-Western countries. This revenue has been a crucial source of funding for Russia’s war effort, allowing it to purchase arms, maintain military operations, and sustain its political and economic stability.The paradox at the heart of the West’s strategy is clear, while the West continues to provide substantial financial and military support to Ukraine, they are simultaneously financing Russia’s war effort through fossil fuel imports.&nbsp;This dilemma is particularly pronounced in Europe, where energy prices have skyrocketed as a result of the sanctions and the ongoing conflict. European governments have faced immense pressure to reduce energy costs for their citizens while balancing their support for Ukraine.As the&nbsp;World Bank has noted, the Western sanctions against Russia have had some impact on Russian revenues, but not enough to significantly weaken the Kremlin’s ability to continue its military operations.&nbsp;Despite the sanctions, Russia’s oil and gas sector remains a primary source of income, and Moscow has been able to shift its exports to countries that are less concerned with the sanctions regime.The result is a situation where the West’s efforts to financially support Ukraine are somewhat nullified by the funds Russia continues to earn from its energy exports. While the EU and the US have provided billions of dollars in aid to Ukraine, the revenue generated by Russia from fossil fuel exports allows the Kremlin to continue its aggression. In effect, the West is funding both sides of the conflict, creating a complex and uncomfortable reality.<h2>Towards energy independence: A long road ahead</h2>As Europe seeks to reduce its reliance on Russian energy, the road ahead is long and fraught with challenges. The EU has set ambitious targets to reduce its reliance on Russian fossil fuels, including plans to phase out Russian oil and gas imports by 2027. However, these plans face significant obstacles, particularly in countries like Hungary, which have resisted efforts to impose further sanctions on Russian energy exports.One of the key challenges in reducing Russia’s energy revenues is the ongoing demand for fossil fuels globally. As&nbsp;Statista reports, despite efforts to transition to renewable energy, the global demand for oil and gas remains high, particularly in emerging markets.&nbsp;This creates a situation where countries outside the West are willing to purchase Russian energy at discounted rates, ensuring that Russia continues to generate significant revenues. Without a more coordinated effort to target these non-Western markets, Russia’s energy exports will remain a crucial source of funding for its war in Ukraine.Moreover, the US has not been entirely free from complicity in this situation. While it has reduced its purchases of Russian oil, it remains a key player in the global energy market. The US also sells oil to countries that have been purchasing Russian oil, further complicating the effort to isolate Russia economically. As long as Russia has access to global energy markets, it will be able to continue financing its war efforts.The paradox of Western support for Ukraine alongside the ongoing financing of Russia’s war through fossil fuel imports highlights a key flaw in the West’s strategy. While significant efforts have been made to reduce Russia’s energy revenues, the global nature of the fossil fuel market makes it difficult to fully isolate Russia.&nbsp;

Russia’s fossil fuel exports generated $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West.

Since Russia's invasion of Ukraine in February 2022, European countries and the US have been instrumental in providing military, financial, and humanitarian support to Ukraine. Yet, as the war continues to devastate the region, a glaring paradox emerges: Western countries, despite their public support for Ukraine, are indirectly funding Russia's war machine by continuing to purchase Russian fossil fuels. This situation underscores the complex and often contradictory nature of international trade, where geopolitical rivalries and economic realities clash in troubling ways. Before Russia’s invasion of Ukraine, European countries were deeply reliant on Russian energy. In 2021, Europe imported around 40 per cent of its natural gas and 25 per cent of its oil from Russia. While some European nations had begun moving towards energy diversification, the Russian invasion intensified efforts to break free from Russian fossil fuels. However, the transition has not been as swift as many hoped, and despite sanctions and promises to reduce reliance on Russian energy, European countries are still purchasing significant quantities of Russian oil, gas, and coal. According to a BBC report, Russia’s fossil fuel exports generated an astonishing $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West. While the European Union (EU) and the US have significantly reduced their purchases of Russian energy, countries like China, India, and Turkey have stepped in to absorb the surplus. This dynamic has allowed Russia to cushion the blow of Western sanctions, ultimately prolonging the war. In recent months, Europe has made substantial progress in reducing its dependence on Russian gas, but the same cannot be said for oil. The EU introduced a price cap on Russian crude oil and refined products in December 2022, but countries like Hungary have continued to rely on Russian oil, undermining the sanctions. While the EU as a whole has made strides in curbing Russian energy imports, Energy and Clean Air notes that oil shipments from Russia to Europe still persist through indirect channels, with some countries using intermediary nations to procure Russian oil. This loophole has allowed Russia to continue reaping profits despite the sanctions. How Russia evades sanctions One of the West’s key tools for limiting Russia’s oil revenue is the price cap, implemented by the G7 and the EU in December 2022. This price cap was designed to prevent Russia from benefiting from higher oil prices while still allowing oil exports to continue. The idea was to reduce Russia’s ability to fund its war while maintaining stability in global energy markets. However, as Russia Fossil Tracker points out, the price cap has had limited success. The mechanism, which caps the price of Russian oil at $60 per barrel, has been difficult to enforce effectively. Russia has circumvented the price cap by rerouting its oil exports to non-Western countries, such as China and India, where it can sell oil at a discount without facing Western restrictions. In fact, as the Atlantic Council highlights, these countries have been buying Russian oil in increasing quantities, often at prices far below the cap. Russia has been able to sell its oil at discounts ranging from $20 to $30 per barrel, making it attractive for non-Western countries to purchase, further diminishing the intended effect of Western sanctions. This dynamic highlights a significant flaw in the West’s strategy. While the EU and the US can reduce their purchases of Russian energy, they cannot fully control the global flow of oil and gas. With countries like China and India buying discounted Russian oil, Moscow continues to receive substantial revenue, which in turn funds its war effort. As long as Russia’s energy exports are in high demand, the country will be able to navigate around Western sanctions and continue its military operations in Ukraine. Moreover, Russia’s energy companies, such as Gazprom and Rosneft, have also found ways to maintain their production levels, despite sanctions. These firms have managed to retain access to global markets, including the sale of natural gas and oil to non-Western countries. This revenue has been a crucial source of funding for Russia’s war effort, allowing it to purchase arms, maintain military operations, and sustain its political and economic stability. The paradox at the heart of the West’s strategy is clear, while the West continues to provide substantial financial and military support to Ukraine, they are simultaneously financing Russia’s war effort through fossil fuel imports. This dilemma is particularly pronounced in Europe, where energy prices have skyrocketed as a result of the sanctions and the ongoing conflict. European governments have faced immense pressure to reduce energy costs for their citizens while balancing their support for Ukraine. As the World Bank has noted, the Western sanctions against Russia have had some impact on Russian revenues, but not enough to significantly weaken the Kremlin’s ability to continue its military operations. Despite the sanctions, Russia’s oil and gas sector remains a primary source of income, and Moscow has been able to shift its exports to countries that are less concerned with the sanctions regime. The result is a situation where the West’s efforts to financially support Ukraine are somewhat nullified by the funds Russia continues to earn from its energy exports. While the EU and the US have provided billions of dollars in aid to Ukraine, the revenue generated by Russia from fossil fuel exports allows the Kremlin to continue its aggression. In effect, the West is funding both sides of the conflict, creating a complex and uncomfortable reality. Towards energy independence: A long road ahead As Europe seeks to reduce its reliance on Russian energy, the road ahead is long and fraught with challenges. The EU has set ambitious targets to reduce its reliance on Russian fossil fuels, including plans to phase out Russian oil and gas imports by 2027. However, these plans face significant obstacles, particularly in countries like Hungary, which have resisted efforts to impose further sanctions on Russian energy exports. One of the key challenges in reducing Russia’s energy revenues is the ongoing demand for fossil fuels globally. As Statista reports, despite efforts to transition to renewable energy, the global demand for oil and gas remains high, particularly in emerging markets. This creates a situation where countries outside the West are willing to purchase Russian energy at discounted rates, ensuring that Russia continues to generate significant revenues. Without a more coordinated effort to target these non-Western markets, Russia’s energy exports will remain a crucial source of funding for its war in Ukraine. Moreover, the US has not been entirely free from complicity in this situation. While it has reduced its purchases of Russian oil, it remains a key player in the global energy market. The US also sells oil to countries that have been purchasing Russian oil, further complicating the effort to isolate Russia economically. As long as Russia has access to global energy markets, it will be able to continue financing its war efforts. The paradox of Western support for Ukraine alongside the ongoing financing of Russia’s war through fossil fuel imports highlights a key flaw in the West’s strategy. While significant efforts have been made to reduce Russia’s energy revenues, the global nature of the fossil fuel market makes it difficult to fully isolate Russia.

Russia’s fossil fuel exports generated $242 billion in revenue in 2023, a year marked by heightened sanctions. These revenues have helped Russia fund its military efforts, and a substantial portion of this income has been generated from sales to countries outside the West.

Is the West funding Russia’s war in Ukraine through fossil fuels?

As the global economy reels from President Donald Trump’s aggressive trade manoeuvres, Wall Street has coined a nickname that’s quickly gone viral, and it’s getting under Trump’s skin.&nbsp;TACO Trade, short for ‘Trump Always Chickens Out’, is a term first introduced by Robert Armstrong, a columnist for the Financial Times. It describes what many economists and investors say has become a hallmark of Trump’s approach to trade policy, threatening steep tariffs to gain leverage and then backtracking when markets react adversely.<h2>What is the ‘TACO Trade’?</h2>According to the Financial Times, TACO Trade refers to a recurring cycle: Trump threatens sky-high tariffs; global markets tumble; the president delays or waters down the measures; and markets bounce back as investors anticipate the pattern.&nbsp;For instance, as reported by Bloomberg, Trump announced sweeping new tariffs on nearly all trading partners on April 2, including a 26 per cent duty on Indian imports. But following a sharp sell-off in equities, including an 8 per cent drop in Hong Kong’s Hang Seng and a 9 per cent plunge in Tokyo’s Nikkei 225, Trump paused the tariffs seven days later for a 90-day window to renegotiate trade deals.<h2>Trump reacts&nbsp;</h2>Asked about the viral acronym during a White House media interaction, Trump bristled at the suggestion that he was retreating under pressure. “You call that chickening out? It’s called negotiation,” he told reporters, adding, “That’s a nasty question.” He went on to clarify that he often starts with a ‘ridiculously high number’ and then negotiates down, according to The New York Times.&nbsp;He also defended his decision to ease tariffs on China, saying, “We helped them… they were having difficulty because we were basically going cold turkey with them.”&nbsp;As per The Guardian, analysts argue that these recurring pullbacks have become so consistent that traders now price them into market forecasts, leading to sharp rebounds after Trump softens his stance.<h2>Trump tariff faces legal heat&nbsp;</h2>In a major blow to Trump’s economic agenda, a US federal court recently ruled that the president exceeded his authority when imposing wide-ranging tariffs under the International Emergency Economic Powers Act (IEEPA), according to Reuters.&nbsp;&nbsp;The court held that a trade deficit does not constitute an “unusual and extraordinary threat,” invalidating the tariffs announced in April as part of Trump’s so-called ‘Liberation Day’ package.&nbsp;As per Associated Press, the ruling was cheered by investors and trade partners. Stock indices such as India’s Sensex, Japan’s Nikkei, and South Korea’s KOSPI posted gains immediately after the verdict.&nbsp;However, the Trump administration appealed the ruling, and a federal appeals court has temporarily reinstated the tariffs, citing national security concerns. This means the 145 per cent duties on Chinese goods and baseline 10–26 per cent tariffs on others remain in place pending a final judgment.<h2>Why TACO Trade matters?</h2>According to Reuters, many global firms are now reconsidering their supply chain strategies amid trade uncertainty. For economists and investors, the “TACO Trade” phenomenon is more than a meme, it reflects an underlying instability in trade governance and a lack of policy clarity from the White House.&nbsp;“It’s not about ‘chickening out,’” Trump said defiantly this week, “it’s called smart negotiating.”Still, as Wall Street embraces the TACO metaphor, and markets continue to react in predictable waves,&nbsp;the label may prove stickier than Trump expects.&nbsp;

Business & Economy: The term, coined by Robert Armstrong for the Financial Times, refers to a recurring cycle where Trump threatens high tariffs to gain leverage and then backtracking when markets react adversely. 

As the global economy reels from President Donald Trump’s aggressive trade manoeuvres, Wall Street has coined a nickname that’s quickly gone viral, and it’s getting under Trump’s skin. TACO Trade, short for ‘Trump Always Chickens Out’, is a term first introduced by Robert Armstrong, a columnist for the Financial Times. It describes what many economists and investors say has become a hallmark of Trump’s approach to trade policy, threatening steep tariffs to gain leverage and then backtracking when markets react adversely. What is the ‘TACO Trade’? According to the Financial Times, TACO Trade refers to a recurring cycle: Trump threatens sky-high tariffs; global markets tumble; the president delays or waters down the measures; and markets bounce back as investors anticipate the pattern. For instance, as reported by Bloomberg, Trump announced sweeping new tariffs on nearly all trading partners on April 2, including a 26 per cent duty on Indian imports. But following a sharp sell-off in equities, including an 8 per cent drop in Hong Kong’s Hang Seng and a 9 per cent plunge in Tokyo’s Nikkei 225, Trump paused the tariffs seven days later for a 90-day window to renegotiate trade deals. Trump reacts Asked about the viral acronym during a White House media interaction, Trump bristled at the suggestion that he was retreating under pressure. “You call that chickening out? It’s called negotiation,” he told reporters, adding, “That’s a nasty question.” He went on to clarify that he often starts with a ‘ridiculously high number’ and then negotiates down, according to The New York Times. He also defended his decision to ease tariffs on China, saying, “We helped them… they were having difficulty because we were basically going cold turkey with them.” As per The Guardian, analysts argue that these recurring pullbacks have become so consistent that traders now price them into market forecasts, leading to sharp rebounds after Trump softens his stance. Trump tariff faces legal heat In a major blow to Trump’s economic agenda, a US federal court recently ruled that the president exceeded his authority when imposing wide-ranging tariffs under the International Emergency Economic Powers Act (IEEPA), according to Reuters. The court held that a trade deficit does not constitute an “unusual and extraordinary threat,” invalidating the tariffs announced in April as part of Trump’s so-called ‘Liberation Day’ package. As per Associated Press, the ruling was cheered by investors and trade partners. Stock indices such as India’s Sensex, Japan’s Nikkei, and South Korea’s KOSPI posted gains immediately after the verdict. However, the Trump administration appealed the ruling, and a federal appeals court has temporarily reinstated the tariffs, citing national security concerns. This means the 145 per cent duties on Chinese goods and baseline 10–26 per cent tariffs on others remain in place pending a final judgment. Why TACO Trade matters? According to Reuters, many global firms are now reconsidering their supply chain strategies amid trade uncertainty. For economists and investors, the “TACO Trade” phenomenon is more than a meme, it reflects an underlying instability in trade governance and a lack of policy clarity from the White House. “It’s not about ‘chickening out,’” Trump said defiantly this week, “it’s called smart negotiating.” Still, as Wall Street embraces the TACO metaphor, and markets continue to react in predictable waves, the label may prove stickier than Trump expects.

The term "TACO Trade" has gained popularity as Wall Street criticises President Donald Trump's aggressive trade policies.&nbsp;

What is ‘TACO Trade’? Trump's new nickname that fumes him amid the tariff legal saga

President Donald Trump get a temporary legal lifeline for his sweeping April 2025 tariff agenda, but it’s only a pause, not a win.&nbsp; &nbsp;According to Bloomberg, on May 29, a US federal appeals court has stayed a lower court ruling that would have forced his administration to unwind the majority of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).&nbsp;On May 28, the US Court of International Trade dealt a major blow, ruling that Trump had overreached by using emergency powers to impose blanket tariffs on dozens of nations, citing issues like fentanyl trafficking and trade deficits as national threats.&nbsp;&nbsp;According to Bloomberg Economics, the ruling would have slashed the average US tariff rate from nearly 27 per cent to below 6 per cent, a dramatic rollback of Trump’s hardline trade stance.&nbsp;Trump responded on social media, labelling the court’s decision “so wrong and so political” and urging the Supreme Court to act “quickly and decisively.” White House press secretary Karoline Leavitt echoed his stance, warning that if courts could derail a president’s trade policy, it would weaken “Presidential Power” and disrupt diplomacy, as per Bloomberg.&nbsp;&nbsp;While the stay allows the tariffs to remain in place at least until 9 June, when further legal arguments will be heard, the administration knows this is only a temporary shield as per Bloomberg.&nbsp;&nbsp;According to Bloomberg, a second federal judge has also struck down a set of tariffs, though that ruling is limited to a specific plaintiff and delayed for 14 days to allow for appeal.<h2>Team Trump eyes for a backup plan</h2> Facing legal headwinds, the Trump administration is already exploring alternative pathways to keep its protectionist trade agenda intact.&nbsp;&nbsp;As per Bloomberg, officials are weighing options under other laws , most notably Section 232 of the Trade Expansion Act and Section 301 of the Trade Act of 1974, both of which have been used before to target imports on national security or unfair trade grounds.&nbsp;Section 232, in particular, has formed the backbone of Trump’s tariffs on steel, aluminium, and vehicles since 2017. According to Bloomberg, these tools are considered more legally durable than IEEPA, but they’re slower. Investigations can take up to 270 days, although White House insiders suggest processes may be fast-tracked.&nbsp;Peter Navarro, Trump’s former trade adviser, told Bloomberg that “the Trump tariff agenda is alive, well, healthy, and will be implemented to protect you, to save your jobs and your factories.” He hinted that US Trade Representative Jamieson Greer would announce new strategies shortly. However, some Trump allies remain sceptical of the timeline.&nbsp;“The idea that Trump is going to turn to plan B and do tariffs by other means has problems,” said James Lucier of Capital Alpha Partners, speaking to Bloomberg. “Yes, he will do it. But he is running out of time to get results before the midterm elections.”&nbsp;Section 122, which allows temporary tariffs of up to 15 per cent for 150 days, was also discussed.&nbsp; &nbsp;But Navarro downplayed it, citing its limited duration. Meanwhile, Section 301 remains a wildcard as it has been used before, particularly against China, and could provide broader trade tools if IEEPA is struck down for good, as per Bloomberg.&nbsp;<h2>Global implications and the road ahead</h2> The court battles come at a time when global trade remains fragile, with Trump’s April tariffs already straining relations with major economies. The initial ruling would have voided levies on imports from key partners like China, Canada, and Mexico and, as Bloomberg noted, blocked nearly two-thirds of the administration’s tariffs. With this legal uncertainty in play, trading partners are watching closely. If Trump is forced to unwind tariffs, the US may lose bargaining power in ongoing negotiations over market access and manufacturing policy. For now, Trump’s legal team remains defiant, promising to escalate the fight all the way to the Supreme Court if needed. But as analysts warn, hastily reintroducing tariffs through other channels could open the door to more lawsuits — unless the process is rock-solid. “If Trump jumps through the hoops and does all the paperwork for Section 232 tariffs, then he may have tariffs that are legally sustainable,” Lucier told Bloomberg. “But if he rushes it, the same anti-tariff forces will take him to court again.” The court’s decision has bought Trump time, but not clarity. As legal battles escalate and the 2026 midterm clock ticks louder, the future of America’s aggressive trade policy hangs in the balance.&nbsp;

Business & Economy: The stay allows the tariffs to remain in place until 9 June, when further legal arguments will be heard. 

President Donald Trump get a temporary legal lifeline for his sweeping April 2025 tariff agenda, but it’s only a pause, not a win. According to Bloomberg, on May 29, a US federal appeals court has stayed a lower court ruling that would have forced his administration to unwind the majority of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). On May 28, the US Court of International Trade dealt a major blow, ruling that Trump had overreached by using emergency powers to impose blanket tariffs on dozens of nations, citing issues like fentanyl trafficking and trade deficits as national threats. According to Bloomberg Economics, the ruling would have slashed the average US tariff rate from nearly 27 per cent to below 6 per cent, a dramatic rollback of Trump’s hardline trade stance. Trump responded on social media, labelling the court’s decision “so wrong and so political” and urging the Supreme Court to act “quickly and decisively.” White House press secretary Karoline Leavitt echoed his stance, warning that if courts could derail a president’s trade policy, it would weaken “Presidential Power” and disrupt diplomacy, as per Bloomberg. While the stay allows the tariffs to remain in place at least until 9 June, when further legal arguments will be heard, the administration knows this is only a temporary shield as per Bloomberg. According to Bloomberg, a second federal judge has also struck down a set of tariffs, though that ruling is limited to a specific plaintiff and delayed for 14 days to allow for appeal. Team Trump eyes for a backup plan Facing legal headwinds, the Trump administration is already exploring alternative pathways to keep its protectionist trade agenda intact. As per Bloomberg, officials are weighing options under other laws , most notably Section 232 of the Trade Expansion Act and Section 301 of the Trade Act of 1974, both of which have been used before to target imports on national security or unfair trade grounds. Section 232, in particular, has formed the backbone of Trump’s tariffs on steel, aluminium, and vehicles since 2017. According to Bloomberg, these tools are considered more legally durable than IEEPA, but they’re slower. Investigations can take up to 270 days, although White House insiders suggest processes may be fast-tracked. Peter Navarro, Trump’s former trade adviser, told Bloomberg that “the Trump tariff agenda is alive, well, healthy, and will be implemented to protect you, to save your jobs and your factories.” He hinted that US Trade Representative Jamieson Greer would announce new strategies shortly. However, some Trump allies remain sceptical of the timeline. “The idea that Trump is going to turn to plan B and do tariffs by other means has problems,” said James Lucier of Capital Alpha Partners, speaking to Bloomberg. “Yes, he will do it. But he is running out of time to get results before the midterm elections.” Section 122, which allows temporary tariffs of up to 15 per cent for 150 days, was also discussed. But Navarro downplayed it, citing its limited duration. Meanwhile, Section 301 remains a wildcard as it has been used before, particularly against China, and could provide broader trade tools if IEEPA is struck down for good, as per Bloomberg. Global implications and the road ahead The court battles come at a time when global trade remains fragile, with Trump’s April tariffs already straining relations with major economies. The initial ruling would have voided levies on imports from key partners like China, Canada, and Mexico and, as Bloomberg noted, blocked nearly two-thirds of the administration’s tariffs. With this legal uncertainty in play, trading partners are watching closely. If Trump is forced to unwind tariffs, the US may lose bargaining power in ongoing negotiations over market access and manufacturing policy. For now, Trump’s legal team remains defiant, promising to escalate the fight all the way to the Supreme Court if needed. But as analysts warn, hastily reintroducing tariffs through other channels could open the door to more lawsuits — unless the process is rock-solid. “If Trump jumps through the hoops and does all the paperwork for Section 232 tariffs, then he may have tariffs that are legally sustainable,” Lucier told Bloomberg. “But if he rushes it, the same anti-tariff forces will take him to court again.” The court’s decision has bought Trump time, but not clarity. As legal battles escalate and the 2026 midterm clock ticks louder, the future of America’s aggressive trade policy hangs in the balance.

A US federal appeals court has stayed a lower court ruling that would have forced President Donald Trump to unwind most of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA).&nbsp;

Trump gets slight relief as tariffs temporarily reinstated amid ongoing legal battle

Trade negotiations between the United States and China are “a bit stalled”, and reaching a final agreement will likely require direct talks between US President Donald Trump and Chinese President Xi Jinping, US Treasury Secretary Scott Bessent stated in an interview with Fox News on May 29.&nbsp;Bessent, who played a key role in the breakthrough talks in Geneva, Switzerland, earlier this month that temporarily halted the imposition of tariffs between the two countries, acknowledged that progress since the May truce has been slow.&nbsp;He emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution. “They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known,” he said.&nbsp;Bessent’s remarks come after a period of escalating tensions between the world’s two largest economies. In mid-May, the US and China agreed to a 90-day pause on tariffs, a move that brought relief to global markets. However, this agreement did not address the underlying causes of the trade war, such as China’s state-controlled economy and US concerns over intellectual property theft.&nbsp;Since the pause, Washington has introduced new measures targeting Chinese technology companies. The US has restricted the export of chip design software and certain jet engine parts to China, further escalating tensions.&nbsp;Additionally, the Trump administration has begun revoking visas for Chinese students with ties to the Communist Party of China, a move that Beijing has called “discriminatory”.&nbsp;Ongoing negotiations amid legal challenges&nbsp;While the US-China talks have recently slowed down, Bessent noted that several large trade deals are nearing completion, particularly with other major trading partners like Japan. He is scheduled to meet with a Japanese delegation on Friday in Washington to discuss ongoing trade issues.&nbsp;However, the legal landscape surrounding US tariffs remains uncertain. This week, the US Court of International Trade ruled that much of the tariffs imposed by the Trump administration were illegal and should be reversed. But just one day later, an appeals court temporarily reinstated the tariffs. Bessent expressed confidence that these legal hurdles would not affect the ongoing trade negotiations, stating, “We have not seen any change in the posture of our trading partners.”&nbsp;With the 90-day tariff truce set to expire on July 9, Bessent indicated that more talks with China are expected in the coming weeks, but he emphasised that a resolution may depend on high-level diplomacy between Trump and Xi.

Treasury Secretary Scott Bessent emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution.

Trade negotiations between the United States and China are “a bit stalled”, and reaching a final agreement will likely require direct talks between US President Donald Trump and Chinese President Xi Jinping, US Treasury Secretary Scott Bessent stated in an interview with Fox News on May 29. Bessent, who played a key role in the breakthrough talks in Geneva, Switzerland, earlier this month that temporarily halted the imposition of tariffs between the two countries, acknowledged that progress since the May truce has been slow. He emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution. “They have a good relationship, and I am confident that the Chinese will come to the table when President Trump makes his preferences known,” he said. Bessent’s remarks come after a period of escalating tensions between the world’s two largest economies. In mid-May, the US and China agreed to a 90-day pause on tariffs, a move that brought relief to global markets. However, this agreement did not address the underlying causes of the trade war, such as China’s state-controlled economy and US concerns over intellectual property theft. Since the pause, Washington has introduced new measures targeting Chinese technology companies. The US has restricted the export of chip design software and certain jet engine parts to China, further escalating tensions. Additionally, the Trump administration has begun revoking visas for Chinese students with ties to the Communist Party of China, a move that Beijing has called “discriminatory”. Ongoing negotiations amid legal challenges While the US-China talks have recently slowed down, Bessent noted that several large trade deals are nearing completion, particularly with other major trading partners like Japan. He is scheduled to meet with a Japanese delegation on Friday in Washington to discuss ongoing trade issues. However, the legal landscape surrounding US tariffs remains uncertain. This week, the US Court of International Trade ruled that much of the tariffs imposed by the Trump administration were illegal and should be reversed. But just one day later, an appeals court temporarily reinstated the tariffs. Bessent expressed confidence that these legal hurdles would not affect the ongoing trade negotiations, stating, “We have not seen any change in the posture of our trading partners.” With the 90-day tariff truce set to expire on July 9, Bessent indicated that more talks with China are expected in the coming weeks, but he emphasised that a resolution may depend on high-level diplomacy between Trump and Xi.

Treasury Secretary Scott Bessent emphasised that the complexity of the ongoing trade issues will require both leaders to weigh in personally for a resolution.

Trade talks with China stalled, direct involvement of leaders needed, says US Treasury Secretary

Japan’s core inflation in its capital has surged to the highest level in more than two years, fuelling expectations of a rate hike by the Bank of Japan (BOJ).&nbsp;&nbsp;However, the central bank’s path forward remains fraught, as the economy grapples with a slump in factory output and intensifying trade tensions with the United States.&nbsp;According to Reuters, the Tokyo core consumer price index (CPI), which excludes fresh food costs, rose by 3.6 per cent in May from a year earlier, higher than market forecasts of 3.5 per cent and up from 3.4 per cent in April. This is the fastest rate of increase since January 2023, when inflation peaked at 4.3 per cent.&nbsp;A broader inflation gauge that excludes both fresh food and fuel, and is closely tracked by the BOJ, climbed 3.3 per cent in May. It had risen 3.1 per cent the previous month, indicating that price pressures are deepening beyond just food and energy.&nbsp;Marcel Thieliant, head of Asia-Pacific at Capital Economics, told Reuters: “The Tokyo CPI showed a further broad-based acceleration in inflation, which suggests that the BOJ may hike even earlier than our current forecast of October.”<h2>Factory slowdown raises red flags</h2>While inflation surges, Japan’s manufacturing sector shows signs of weakening. As reported by Reuters, factory output dropped by 0.9 per cent in April from the previous month. Manufacturers anticipate a 9.0 per cent rebound in May, followed by a projected 3.4 per cent dip in June, suggesting volatility and uncertainty within the sector.&nbsp;The BOJ is now confronted with a delicate balancing act: containing inflation without choking off growth at a time when global demand is waning.<h2>US tariffs create additional economic headwinds</h2>Complicating the picture further is Japan’s deteriorating trade relationship with the United States. President Donald Trump’s administration recently imposed steep tariffs on key Japanese exports, including vehicles, steel components, and electronic goods. Some duties reportedly exceed 24 per cent.&nbsp;Reuters notes that while Japan’s overall exports rose by 2 per cent in April, shipments to the US reportedly dropped by 1.8 per cent year-on-year. This decline signals that Trump’s tariff regime is beginning to take a toll on Japan’s external sector.&nbsp;Adding to the uncertainty, the Japanese government has lowered its global growth outlook and acknowledged that the trade friction with Washington could hinder the country’s post-pandemic recovery. The BOJ itself has already revised down its growth forecasts for the year, citing the impact of these tariffs.<h2>Rising food and service costs keep inflation expectations alive</h2>Food inflation remains a major driver of Japan’s price rise. Reuters reports that non-fresh food prices soared by 6.9 per cent in May, while the cost of rice skyrocketed by 93.2 per cent.&nbsp;Additionally, services inflation, which the BOJ closely monitors, rose to 2.2 per cent from 2.0 per cent in April, suggesting firms are beginning to pass labour costs onto consumers.&nbsp;A survey by Teikoku Databank, cited by Reuters, revealed that Japanese companies plan to increase prices on 1,932 food and beverage items in June, triple the number from a year earlier.&nbsp;BOJ Governor Kazuo Ueda told parliament on Friday that the central bank remains attentive to wage hikes and corporate pricing strategies, both of which are crucial to sustained inflation.&nbsp;“Japan may face a tricky situation where public attention to rising food prices heightens inflation expectations, which have so far been stable,” said Tsutomu Watanabe, professor at the University of Tokyo’s graduate school of economics, in an interview with Reuters.<h2>A cautious road ahead for the BOJ</h2>The BOJ exited its ultra-loose monetary stance last year and raised short-term rates to 0.5 per cent in January. However, the timing of the next move remains uncertain.&nbsp;&nbsp;While inflation has clearly exceeded the 2 per cent target, the broader economic environment, including shrinking factory output and external shocks from US protectionism, could restrain the bank’s hand.&nbsp;For now, expectations of another rate hike remain on the table, but the path ahead is far from clear. As Japan contends with internal price pressures and external trade risks, the BOJ will need to weigh its next steps with caution and flexibility.

Business & Economy: However, the central bank path forward remains uncertain due to a slump in factory output and intensifying trade tensions with the US. 

Japan’s core inflation in its capital has surged to the highest level in more than two years, fuelling expectations of a rate hike by the Bank of Japan (BOJ). However, the central bank’s path forward remains fraught, as the economy grapples with a slump in factory output and intensifying trade tensions with the United States. According to Reuters, the Tokyo core consumer price index (CPI), which excludes fresh food costs, rose by 3.6 per cent in May from a year earlier, higher than market forecasts of 3.5 per cent and up from 3.4 per cent in April. This is the fastest rate of increase since January 2023, when inflation peaked at 4.3 per cent. A broader inflation gauge that excludes both fresh food and fuel, and is closely tracked by the BOJ, climbed 3.3 per cent in May. It had risen 3.1 per cent the previous month, indicating that price pressures are deepening beyond just food and energy. Marcel Thieliant, head of Asia-Pacific at Capital Economics, told Reuters: “The Tokyo CPI showed a further broad-based acceleration in inflation, which suggests that the BOJ may hike even earlier than our current forecast of October.” Factory slowdown raises red flags While inflation surges, Japan’s manufacturing sector shows signs of weakening. As reported by Reuters, factory output dropped by 0.9 per cent in April from the previous month. Manufacturers anticipate a 9.0 per cent rebound in May, followed by a projected 3.4 per cent dip in June, suggesting volatility and uncertainty within the sector. The BOJ is now confronted with a delicate balancing act: containing inflation without choking off growth at a time when global demand is waning. US tariffs create additional economic headwinds Complicating the picture further is Japan’s deteriorating trade relationship with the United States. President Donald Trump’s administration recently imposed steep tariffs on key Japanese exports, including vehicles, steel components, and electronic goods. Some duties reportedly exceed 24 per cent. Reuters notes that while Japan’s overall exports rose by 2 per cent in April, shipments to the US reportedly dropped by 1.8 per cent year-on-year. This decline signals that Trump’s tariff regime is beginning to take a toll on Japan’s external sector. Adding to the uncertainty, the Japanese government has lowered its global growth outlook and acknowledged that the trade friction with Washington could hinder the country’s post-pandemic recovery. The BOJ itself has already revised down its growth forecasts for the year, citing the impact of these tariffs. Rising food and service costs keep inflation expectations alive Food inflation remains a major driver of Japan’s price rise. Reuters reports that non-fresh food prices soared by 6.9 per cent in May, while the cost of rice skyrocketed by 93.2 per cent. Additionally, services inflation, which the BOJ closely monitors, rose to 2.2 per cent from 2.0 per cent in April, suggesting firms are beginning to pass labour costs onto consumers. A survey by Teikoku Databank, cited by Reuters, revealed that Japanese companies plan to increase prices on 1,932 food and beverage items in June, triple the number from a year earlier. BOJ Governor Kazuo Ueda told parliament on Friday that the central bank remains attentive to wage hikes and corporate pricing strategies, both of which are crucial to sustained inflation. “Japan may face a tricky situation where public attention to rising food prices heightens inflation expectations, which have so far been stable,” said Tsutomu Watanabe, professor at the University of Tokyo’s graduate school of economics, in an interview with Reuters. A cautious road ahead for the BOJ The BOJ exited its ultra-loose monetary stance last year and raised short-term rates to 0.5 per cent in January. However, the timing of the next move remains uncertain. While inflation has clearly exceeded the 2 per cent target, the broader economic environment, including shrinking factory output and external shocks from US protectionism, could restrain the bank’s hand. For now, expectations of another rate hike remain on the table, but the path ahead is far from clear. As Japan contends with internal price pressures and external trade risks, the BOJ will need to weigh its next steps with caution and flexibility.

Japan's core inflation in Tokyo reached its highest level in over two years, causing expectations of a rate hike by the Bank of Japan (BOJ).&nbsp;

Japan’s inflation at two-year high intensifies pressure on rate hike, but US trade tensions cloud outlook

The Trump administration has directed federal agencies to cease using statistics on race, sex, ethnicity, or national origin in hiring decisions, marking a decisive step toward dismantling diversity, equity, and inclusion (DEI) programs in the federal workforce.The new directive, issued by the Office of Personnel Management (OPM) on May 29, aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on “merit, qualifications, and job-related criteria”.Under the new guidelines, federal agencies are prohibited from collecting or distributing demographic data related to race, sex, ethnicity, or national origin when making hiring or promotion decisions. The move aims to remove any consideration of under-representation of certain groups during the hiring process, a concept that has been a cornerstone of DEI initiatives in both government and private sectors for decades.Trump’s administration has long criticised DEI programs, arguing that they are inherently discriminatory against white people and men. The directive follows the president's broader agenda to roll back what he describes as “woke” policies, which he claims prioritise diversity over merit. Proponents of DEI, however, argue that demographic data is a crucial tool for identifying and rectifying systemic inequities and discrimination in the workforce.In addition to halting the use of demographic data, the memo also addresses recruitment practices, advocating for a broader approach that extends beyond elite academic institutions.Agencies are encouraged to focus recruitment efforts on state universities, religious colleges, trade schools, and faith-based organisations, aiming to attract a more diverse array of candidates. The memo stresses that the federal workforce should prioritise “patriotic Americans” who are committed to upholding the Constitution and the rule of law.&nbsp;Broader changes and their impact&nbsp;While the administration's focus on merit-based hiring is framed as a move to streamline and improve government efficiency, critics see it as an ideological shift with deep implications for the composition of the federal workforce.The Trump administration has also introduced new essay questions for civil service job applicants, asking candidates about their commitment to the Constitution, the president’s executive orders, and government efficiency. Critics view these questions as a veiled attempt to instill political loyalty, which could hinder the nonpartisan nature of federal hiring.This latest move is part of Trump’s ongoing efforts to reshape the federal workforce, including proposals to eliminate job protections for many federal employees and directly hire and fire personnel.The memo on hiring changes signals a continued transformation in how the federal government approaches staffing, with a sharp focus on ideological alignment and adherence to the president’s vision.Max Stier, president of the Partnership for Public Service, expressed concerns about the potential for this new approach to discourage a diverse range of applicants, arguing that it could be perceived as a loyalty test rather than a fair evaluation of skills, according to a Bloomberg article.“This is a move to ensure loyalty to the president of the day,” Stier said, warning that it risks turning the hiring process into a tool for political allegiance rather than merit. He also pointed out that adding a political litmus test, such as the new essay questions (to be implemented in civil service job applications), would make it more difficult for the government to hire qualified, nonpartisan employees.

The new directive, issued by the Office of Personnel Management (OPM), aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on merit, qualifications, and job-related criteria.

The Trump administration has directed federal agencies to cease using statistics on race, sex, ethnicity, or national origin in hiring decisions, marking a decisive step toward dismantling diversity, equity, and inclusion (DEI) programs in the federal workforce. The new directive, issued by the Office of Personnel Management (OPM) on May 29, aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on “merit, qualifications, and job-related criteria”. Under the new guidelines, federal agencies are prohibited from collecting or distributing demographic data related to race, sex, ethnicity, or national origin when making hiring or promotion decisions. The move aims to remove any consideration of under-representation of certain groups during the hiring process, a concept that has been a cornerstone of DEI initiatives in both government and private sectors for decades. Trump’s administration has long criticised DEI programs, arguing that they are inherently discriminatory against white people and men. The directive follows the president's broader agenda to roll back what he describes as “woke” policies, which he claims prioritise diversity over merit. Proponents of DEI, however, argue that demographic data is a crucial tool for identifying and rectifying systemic inequities and discrimination in the workforce. In addition to halting the use of demographic data, the memo also addresses recruitment practices, advocating for a broader approach that extends beyond elite academic institutions. Agencies are encouraged to focus recruitment efforts on state universities, religious colleges, trade schools, and faith-based organisations, aiming to attract a more diverse array of candidates. The memo stresses that the federal workforce should prioritise “patriotic Americans” who are committed to upholding the Constitution and the rule of law. Broader changes and their impact While the administration's focus on merit-based hiring is framed as a move to streamline and improve government efficiency, critics see it as an ideological shift with deep implications for the composition of the federal workforce. The Trump administration has also introduced new essay questions for civil service job applicants, asking candidates about their commitment to the Constitution, the president’s executive orders, and government efficiency. Critics view these questions as a veiled attempt to instill political loyalty, which could hinder the nonpartisan nature of federal hiring. This latest move is part of Trump’s ongoing efforts to reshape the federal workforce, including proposals to eliminate job protections for many federal employees and directly hire and fire personnel. The memo on hiring changes signals a continued transformation in how the federal government approaches staffing, with a sharp focus on ideological alignment and adherence to the president’s vision. Max Stier, president of the Partnership for Public Service, expressed concerns about the potential for this new approach to discourage a diverse range of applicants, arguing that it could be perceived as a loyalty test rather than a fair evaluation of skills, according to a Bloomberg article. “This is a move to ensure loyalty to the president of the day,” Stier said, warning that it risks turning the hiring process into a tool for political allegiance rather than merit. He also pointed out that adding a political litmus test, such as the new essay questions (to be implemented in civil service job applications), would make it more difficult for the government to hire qualified, nonpartisan employees.

The new directive, issued by the Office of Personnel Management (OPM), aligns with an executive order signed by President Donald Trump earlier this year to overhaul federal hiring practices and focus purely on “merit, qualifications, and job-related criteria”.

Trump administration rejigs federal hiring process, bans use of race, ethnicity data

China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll. &nbsp;According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction.&nbsp;&nbsp;The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus.<h2>China is now fighting a trade war on two fronts</h2>The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels.&nbsp;In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China.&nbsp; &nbsp;Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved.&nbsp;Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles.&nbsp; &nbsp;China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters.&nbsp;&nbsp;This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth.<h2>Domestic challenges are compounding the crisis</h2>According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched.&nbsp;&nbsp;The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month.&nbsp;&nbsp;Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment. &nbsp;Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters&nbsp;<h2>Beijing is expected to roll out more stimulus</h2>To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms. &nbsp;The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum.<h2>The road ahead is uncertain</h2>As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy.&nbsp;The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.

Business & Economy: This comes amid China is grappling with major trade tensions with the US and the EU.

China’s manufacturing sector is poised to contract for the second month in a row in May, signalling fresh strain on the country’s export-heavy economy as it faces simultaneous trade flare-ups with the United States and the European Union, highlights a Reuters poll. According to a Reuters poll of 21 economists, the official Purchasing Managers’ Index (PMI), scheduled for release on Saturday (June 1), is expected to register at 49.5, slightly higher than April’s 49.0, but still below the 50-point threshold that separates expansion from contraction. The latest data reflects a broader slowdown across China’s $19 trillion economy, which is contending with weakening domestic demand, deflation, and a growing property crisis, even as policymakers race to stabilise growth through stimulus. China is now fighting a trade war on two fronts The May factory slump comes at a time when China is navigating major trade tensions with both Washington and Brussels. In the US, President Donald Trump has escalated economic hostilities by slapping 145 per cent tariffs on a wide range of Chinese imports — part of his broader push to decouple from China. Although a temporary 90-day tariff truce was reached, with duties lowered to 30 per cent, negotiations remain deadlocked and the core issues unresolved. Simultaneously, the European Union has reportedly launched anti-dumping investigations targeting Chinese tyres and electric vehicles. China has reportedly retaliated with probes into European brandy and dairy products, fuelling fears of a full-fledged trade confrontation with the bloc, as per Reuters. This dual-front pressure is reportedly placing immense strain on China’s industrial backbone, which has traditionally relied on open global markets to power growth. Domestic challenges are compounding the crisis According to Reuters, China’s internal economic environment offers little relief. Despite a stronger-than-expected GDP performance in Q1 2025, deflation remains entrenched. The country’s producer price index dropped 2.7 per cent year-on-year in April, extending its contraction for a third consecutive month. Reuters poll highlights that real incomes have stagnated, and consumer spending has yet to rebound convincingly after the pandemic. Meanwhile, the long-running property sector slump continues to drag on overall sentiment and private investment. Even though industrial profits showed some signs of improvement, they remain concentrated among a handful of state-backed firms, leaving smaller manufacturers especially exposed to the current downturn, as per Reuters Beijing is expected to roll out more stimulus To counteract the external and internal economic drag, China’s government is reportedly expected to announce further fiscal and monetary stimulus measures. These could reportedly include additional interest rate cuts, tax incentives, infrastructure spending, and targeted credit for small and medium-sized firms. The PMI numbers to be released on June 1 will be followed by the Caixin private sector PMI on June 3, which focuses more on smaller, export-oriented companies. Analysts predict a modest improvement in the Caixin reading, up to 50.6 from 50.4, suggesting fragile but ongoing momentum. The road ahead is uncertain As the world’s second-largest economy contends with deepening trade hostilities and an uneven post-pandemic recovery, the question now is whether Beijing can successfully pivot from an export-driven model to a more resilient, demand-led economy. The coming weeks, with trade talks in flux, tariff deadlines looming, and critical economic data releases will be crucial in shaping China’s path through a turbulent global landscape.

China's manufacturing sector is expected to contract for the second consecutive month in May, putting strain on the country's export-heavy economy, highlights a Reuters poll.&nbsp;

China’s May factory slowdown likely to deepens as trade tensions with US and EU escalate

In a stunning move that signals a major policy shift under President Donald Trump’s second administration, the US Securities and Exchange Commission (SEC) has officially dropped its civil enforcement case against Binance, the world’s largest cryptocurrency exchange.&nbsp; &nbsp;The decision was made public in a joint court filing submitted on May 29 in a Washington, DC, federal court, as per Reuters.&nbsp;<h2>What did SEC say</h2>According to Reuters, the SEC said its decision to dismiss the case was based on policy considerations and not a reflection of its stance on cryptocurrency regulation at large. The lawsuit has been dismissed with prejudice, meaning the SEC is legally barred from reopening this specific case in the future.&nbsp;A Binance spokesperson hailed the move as a “landmark moment,” expressing gratitude to SEC Chairman Paul Atkins and the Trump administration. “Innovation can’t thrive under regulation by enforcement,” the spokesperson said, as quoted by Reuters.<h2>Background of the Lawsuit</h2>According to Reuters, the SEC had initially sued Binance and its founder Changpeng Zhao (commonly known as CZ) in June 2023. The agency reportedly accused the crypto giant of inflating trading volumes, diverting customer funds, and misleading investors about its internal compliance mechanisms. The SEC also alleged that Binance facilitated the trading of multiple tokens that, under President Joe Biden’s administration, were considered unregistered securities. &nbsp;This civil case was entirely separate from Binance’s high-profile criminal settlement in November 2023, in which the exchange pleaded guilty to violating US anti-money laundering and sanctions laws. Binance agreed to pay a record $4.32 billion penalty. Zhao himself served a four-month prison term for anti-money laundering violations and was released in September 2024, as per Reuters.<h2>Not just Binance, SEC also dropped Coinbase case</h2>According to Reuters, this isn’t the first crypto enforcement rollback under Trump’s new term. In February 2025, the SEC also dropped a similar case against Coinbase, the largest cryptocurrency exchange in the US, which was accused of listing at least 13 unregistered tokens.&nbsp;&nbsp;Both dismissals reportedly reflect a broader recalibration of regulatory posture under Chairman Paul Atkins.<h2>Atkins’ vision: Clarity over crackdowns</h2>In a speech earlier this month, Atkins emphasized the need for a consistent and transparent regulatory framework. According to Reuters, he stated that one of his top priorities is to create “clear rules of the road” for issuing, trading, and securing digital assets—rules that support innovation while deterring bad actors.&nbsp;For years, the crypto industry has criticized the SEC’s practice of regulating by enforcement rather than issuing clear guidelines. Industry leaders argue that most crypto tokens function more like commodities than securities, a classification that would remove the SEC from the regulatory equation altogether.<h2>What this means for the future of Crypto in the US</h2>The SEC’s decision to withdraw its lawsuit against Binance could be a harbinger of major changes in how digital assets are governed in the US.&nbsp; &nbsp;With both Binance and Coinbase off the legal hook for now, crypto companies may find themselves operating in a more favorable regulatory environment—at least during the current administration.&nbsp;However, the SEC has not ruled out future enforcement in other cases, making it clear that this dismissal should not be interpreted as a blanket approval of the crypto industry’s past conduct.<h2>The road ahead</h2>While this legal victory offers breathing room for Binance and the broader crypto sector, it also raises important questions about the future of investor protections, market transparency, and the regulatory role of federal agencies in the evolving digital economy.&nbsp;As regulatory agencies rethink their approach, one thing is clear: the Trump administration is ushering in a new era for crypto, one that may prioritize innovation over enforcement.

Business & Economy: The decision was made public in a joint court filing, and the SEC stated that the decision was based on policy considerations, not its stance on cryptocurrency regulation. 

In a stunning move that signals a major policy shift under President Donald Trump’s second administration, the US Securities and Exchange Commission (SEC) has officially dropped its civil enforcement case against Binance, the world’s largest cryptocurrency exchange. The decision was made public in a joint court filing submitted on May 29 in a Washington, DC, federal court, as per Reuters. What did SEC say According to Reuters, the SEC said its decision to dismiss the case was based on policy considerations and not a reflection of its stance on cryptocurrency regulation at large. The lawsuit has been dismissed with prejudice, meaning the SEC is legally barred from reopening this specific case in the future. A Binance spokesperson hailed the move as a “landmark moment,” expressing gratitude to SEC Chairman Paul Atkins and the Trump administration. “Innovation can’t thrive under regulation by enforcement,” the spokesperson said, as quoted by Reuters. Background of the Lawsuit According to Reuters, the SEC had initially sued Binance and its founder Changpeng Zhao (commonly known as CZ) in June 2023. The agency reportedly accused the crypto giant of inflating trading volumes, diverting customer funds, and misleading investors about its internal compliance mechanisms. The SEC also alleged that Binance facilitated the trading of multiple tokens that, under President Joe Biden’s administration, were considered unregistered securities. This civil case was entirely separate from Binance’s high-profile criminal settlement in November 2023, in which the exchange pleaded guilty to violating US anti-money laundering and sanctions laws. Binance agreed to pay a record $4.32 billion penalty. Zhao himself served a four-month prison term for anti-money laundering violations and was released in September 2024, as per Reuters. Not just Binance, SEC also dropped Coinbase case According to Reuters, this isn’t the first crypto enforcement rollback under Trump’s new term. In February 2025, the SEC also dropped a similar case against Coinbase, the largest cryptocurrency exchange in the US, which was accused of listing at least 13 unregistered tokens. Both dismissals reportedly reflect a broader recalibration of regulatory posture under Chairman Paul Atkins. Atkins’ vision: Clarity over crackdowns In a speech earlier this month, Atkins emphasized the need for a consistent and transparent regulatory framework. According to Reuters, he stated that one of his top priorities is to create “clear rules of the road” for issuing, trading, and securing digital assets—rules that support innovation while deterring bad actors. For years, the crypto industry has criticized the SEC’s practice of regulating by enforcement rather than issuing clear guidelines. Industry leaders argue that most crypto tokens function more like commodities than securities, a classification that would remove the SEC from the regulatory equation altogether. What this means for the future of Crypto in the US The SEC’s decision to withdraw its lawsuit against Binance could be a harbinger of major changes in how digital assets are governed in the US. With both Binance and Coinbase off the legal hook for now, crypto companies may find themselves operating in a more favorable regulatory environment—at least during the current administration. However, the SEC has not ruled out future enforcement in other cases, making it clear that this dismissal should not be interpreted as a blanket approval of the crypto industry’s past conduct. The road ahead While this legal victory offers breathing room for Binance and the broader crypto sector, it also raises important questions about the future of investor protections, market transparency, and the regulatory role of federal agencies in the evolving digital economy. As regulatory agencies rethink their approach, one thing is clear: the Trump administration is ushering in a new era for crypto, one that may prioritize innovation over enforcement.

The US Securities and Exchange Commission (SEC) has dropped its civil enforcement case against Binance, the world's largest cryptocurrency exchange, marking a significant policy shift under President Donald Trump's second administration.&nbsp;

Trump-era SEC drops Binance lawsuit: Is it a landmark shift in Crypto regulation?

Applications for US jobless benefits rose unexpectedly last week, signalling potential cracks in the labour market as economic uncertainty, driven by trade policies and slow growth, starts to take a toll.According to data released on May 29 by the US Department of Labor, the number of Americans filing new claims for unemployment benefits increased by 14,000, reaching a seasonally adjusted total of 240,000 for the week ending May 24. This surge is slightly higher than economists' expectations of 230,000 claims.The data also showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021. These developments suggest that layoffs are rising, potentially signalling the start of a broader weakening in the labour market.&nbsp;Impact of economic uncertainty and trade policy&nbsp;The uptick in jobless claims coincides with growing concerns over the state of the US economy. The economy of the United States contracted at a 0.2 per cent annualised rate in the first quarter of 2025, primarily due to a sharp increase in imports.Companies rushed to bring in goods before President Donald Trump’s sweeping tariffs on foreign imports came into effect, leading to a temporary surge in trade activity and distorting growth figures.At the same time, corporate profits, which had already been under pressure, took a significant hit. Profits from current production dropped by $118.1 billion in the first quarter, according to a separate report from the Bureau of Economic Analysis. The overall economic slowdown has been further exacerbated by Trump’s tariffs, which continue to cloud the economic outlook.The recent US Trade Court ruling blocked most of the tariffs from going into effect, which was soon followed by the imposition of a stay on the order, and has added yet another layer of uncertainty.Despite the challenges, the labour market had remained relatively strong until now. Employers had been reluctant to lay off workers, partly because of the difficulty in finding labour during the COVID-19 pandemic and its aftermath. However, as the trade war intensifies and profits decline, businesses are becoming increasingly cautious, leading to layoffs in some sectors.The rise in both initial and continuing claims raises the possibility of an uptick in the unemployment rate, which stood at 4.2 per cent in April. Economists are particularly concerned that this may signal a longer-lasting trend.The Federal Reserve has also expressed concern about the weakening economic conditions. In minutes from its May meeting, policymakers acknowledged that the labour market could soften in the coming months due to economic uncertainties, particularly from trade policies.&nbsp;Layoffs and economic forecasts&nbsp;The rising jobless claims are part of a broader trend of increased layoffs, particularly in sectors most affected by trade uncertainties, such as manufacturing and retail. Companies, including Walmart, Microsoft, Chevron, Volvo, and Nissan, have recently announced plans to cut their headcount by a few thousand.However, a survey by the Conference Board found that most US CEOs do not expect to significantly alter their workforce sizes in the coming year, even though nearly 83 per cent foresee a recession within the next 12 to 18 months.For now, businesses are reluctant to make major cuts to their workforce, but the rising jobless claims and economic headwinds suggest that this may change if the economic outlook continues to deteriorate.With inflationary pressures and trade uncertainties looming, the path forward for the US economy remains uncertain, and many are watching closely to see whether jobless claims continue to climb in the coming months.The data underscores the fragility of the US economy as it navigates a challenging global landscape, with the potential for further labour market deterioration if the economic outlook continues to worsen.

The data showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021.

Applications for US jobless benefits rose unexpectedly last week, signalling potential cracks in the labour market as economic uncertainty, driven by trade policies and slow growth, starts to take a toll. According to data released on May 29 by the US Department of Labor, the number of Americans filing new claims for unemployment benefits increased by 14,000, reaching a seasonally adjusted total of 240,000 for the week ending May 24. This surge is slightly higher than economists' expectations of 230,000 claims. The data also showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021. These developments suggest that layoffs are rising, potentially signalling the start of a broader weakening in the labour market. Impact of economic uncertainty and trade policy The uptick in jobless claims coincides with growing concerns over the state of the US economy. The economy of the United States contracted at a 0.2 per cent annualised rate in the first quarter of 2025, primarily due to a sharp increase in imports. Companies rushed to bring in goods before President Donald Trump’s sweeping tariffs on foreign imports came into effect, leading to a temporary surge in trade activity and distorting growth figures. At the same time, corporate profits, which had already been under pressure, took a significant hit. Profits from current production dropped by $118.1 billion in the first quarter, according to a separate report from the Bureau of Economic Analysis. The overall economic slowdown has been further exacerbated by Trump’s tariffs, which continue to cloud the economic outlook. The recent US Trade Court ruling blocked most of the tariffs from going into effect, which was soon followed by the imposition of a stay on the order, and has added yet another layer of uncertainty. Despite the challenges, the labour market had remained relatively strong until now. Employers had been reluctant to lay off workers, partly because of the difficulty in finding labour during the COVID-19 pandemic and its aftermath. However, as the trade war intensifies and profits decline, businesses are becoming increasingly cautious, leading to layoffs in some sectors. The rise in both initial and continuing claims raises the possibility of an uptick in the unemployment rate, which stood at 4.2 per cent in April. Economists are particularly concerned that this may signal a longer-lasting trend. The Federal Reserve has also expressed concern about the weakening economic conditions. In minutes from its May meeting, policymakers acknowledged that the labour market could soften in the coming months due to economic uncertainties, particularly from trade policies. Layoffs and economic forecasts The rising jobless claims are part of a broader trend of increased layoffs, particularly in sectors most affected by trade uncertainties, such as manufacturing and retail. Companies, including Walmart, Microsoft, Chevron, Volvo, and Nissan, have recently announced plans to cut their headcount by a few thousand. However, a survey by the Conference Board found that most US CEOs do not expect to significantly alter their workforce sizes in the coming year, even though nearly 83 per cent foresee a recession within the next 12 to 18 months. For now, businesses are reluctant to make major cuts to their workforce, but the rising jobless claims and economic headwinds suggest that this may change if the economic outlook continues to deteriorate. With inflationary pressures and trade uncertainties looming, the path forward for the US economy remains uncertain, and many are watching closely to see whether jobless claims continue to climb in the coming months. The data underscores the fragility of the US economy as it navigates a challenging global landscape, with the potential for further labour market deterioration if the economic outlook continues to worsen.

The data showed that the number of people receiving unemployment benefits rose by 26,000 to 1.92 million in mid-May, marking the largest increase in this figure since November 2021.

Jobless claims rise as tariffs and layoffs weigh on US labour market

At the Confederation of Indian Industry (CII) Annual Business Summit 2025, Defence Minister Rajnath Singh took the stage to unveil significant strides in India’s defence sector, with particular emphasis on the country’s growing self-reliance under the ‘Make in India’ initiative.The highlight of the minister’s speech was the government’s approval for the Advanced Medium Combat Aircraft (AMCA) project, a critical step in advancing India’s capabilities in the fifth-generation fighter aircraft domain.Singh hailed the AMCA as a “milestone”, stressing that it places India among the select few nations with the technological edge to develop fifth-gen fighter jets. The project, which will see the creation of five prototypes, is set to undergo series production, with the government-run Hindustan Aeronautics Limited (HAL) joining forces with private sector companies in a collaborative effort.The inclusion of the private sector for the first time in such a large-scale defence project highlights a new phase in India’s defence manufacturing ecosystem. Singh made it clear that both public and private firms would compete to bring this advanced fighter to fruition, with HAL no longer being the default producer.The AMCA, expected to roll out its first prototype by 2028-29, will be powered by the indigenous General Electric F-414 engine. It will feature advanced technologies like an internal weapons bay and diverterless supersonic intake, developed indigenously, marking a new era of technological autonomy for India. With China and Pakistan already deploying fifth-gen aircraft, the AMCA project is critical for India to maintain its technological edge and ensure security along its borders.&nbsp;India’s rising economic might&nbsp;Beyond defence, Singh also highlighted India’s economic achievements, noting that the country had ascended to become the world’s fourth-largest economy under Prime Minister Narendra Modi’s leadership. Singh pointed to India’s growing economic might, with the prospect of becoming the third-largest global economy soon, as a sign of India’s increasing influence on the world stage.At the same time, India’s defence sector has witnessed a remarkable transformation. Singh reported that the country’s defence production has more than tripled over the past decade, rising from ₹43,000 crore ($5.03 billion) to ₹1,46,000 crore ($17.08 billion), with a significant contribution from the private sector. Defence exports have surged, crossing ₹24,000 crore ($2.8 billion), with Indian-made weapons and systems now reaching 100 countries.“The involvement of over 16,000 MSMEs in the defence sector is strengthening our self-reliance and providing employment to millions,” Singh stated, highlighting how India’s burgeoning defence manufacturing sector is both an economic and strategic asset. Additionally, India’s rising capabilities in artificial intelligence, cyber defence, and space-based security were acknowledged as critical areas in the modernisation of India’s armed forces.Singh’s comments underscored the evolving strategic and economic landscape of India, wherein the dual pillars of military self-sufficiency and economic strength are becoming increasingly intertwined. As the country continues its growth trajectory, both on the economic front and in its security capabilities, Singh emphasised that India must ensure its defence industry aligns with national interests, positioning itself as a hub for advanced technologies in the years to come.Reaffirming India’s sovereignty over PoK, Singh also said, “We believe that people living in PoK will, sooner or later, voluntarily reunite with India.”“Prime Minister Narendra Modi-led government is committed to its resolve of Ek Bharat Shreshtha Bharat. Most of the people in PoK have a deep connection with India. There are only a few who have been misled,” he said.In closing, Singh reiterated that India’s increasing power would serve as a beacon of security and prosperity, both for the nation and the broader global community.

Defence Minister Rajnath Singh stated that AMCA places India among the select few nations with the technological edge to develop fifth-gen fighter jets

At the Confederation of Indian Industry (CII) Annual Business Summit 2025, Defence Minister Rajnath Singh took the stage to unveil significant strides in India’s defence sector, with particular emphasis on the country’s growing self-reliance under the ‘Make in India’ initiative. The highlight of the minister’s speech was the government’s approval for the Advanced Medium Combat Aircraft (AMCA) project, a critical step in advancing India’s capabilities in the fifth-generation fighter aircraft domain. Singh hailed the AMCA as a “milestone”, stressing that it places India among the select few nations with the technological edge to develop fifth-gen fighter jets. The project, which will see the creation of five prototypes, is set to undergo series production, with the government-run Hindustan Aeronautics Limited (HAL) joining forces with private sector companies in a collaborative effort. The inclusion of the private sector for the first time in such a large-scale defence project highlights a new phase in India’s defence manufacturing ecosystem. Singh made it clear that both public and private firms would compete to bring this advanced fighter to fruition, with HAL no longer being the default producer. The AMCA, expected to roll out its first prototype by 2028-29, will be powered by the indigenous General Electric F-414 engine. It will feature advanced technologies like an internal weapons bay and diverterless supersonic intake, developed indigenously, marking a new era of technological autonomy for India. With China and Pakistan already deploying fifth-gen aircraft, the AMCA project is critical for India to maintain its technological edge and ensure security along its borders. India’s rising economic might Beyond defence, Singh also highlighted India’s economic achievements, noting that the country had ascended to become the world’s fourth-largest economy under Prime Minister Narendra Modi’s leadership. Singh pointed to India’s growing economic might, with the prospect of becoming the third-largest global economy soon, as a sign of India’s increasing influence on the world stage. At the same time, India’s defence sector has witnessed a remarkable transformation. Singh reported that the country’s defence production has more than tripled over the past decade, rising from ₹43,000 crore ($5.03 billion) to ₹1,46,000 crore ($17.08 billion), with a significant contribution from the private sector. Defence exports have surged, crossing ₹24,000 crore ($2.8 billion), with Indian-made weapons and systems now reaching 100 countries. “The involvement of over 16,000 MSMEs in the defence sector is strengthening our self-reliance and providing employment to millions,” Singh stated, highlighting how India’s burgeoning defence manufacturing sector is both an economic and strategic asset. Additionally, India’s rising capabilities in artificial intelligence, cyber defence, and space-based security were acknowledged as critical areas in the modernisation of India’s armed forces. Singh’s comments underscored the evolving strategic and economic landscape of India, wherein the dual pillars of military self-sufficiency and economic strength are becoming increasingly intertwined. As the country continues its growth trajectory, both on the economic front and in its security capabilities, Singh emphasised that India must ensure its defence industry aligns with national interests, positioning itself as a hub for advanced technologies in the years to come. Reaffirming India’s sovereignty over PoK, Singh also said, “We believe that people living in PoK will, sooner or later, voluntarily reunite with India.” “Prime Minister Narendra Modi-led government is committed to its resolve of Ek Bharat Shreshtha Bharat. Most of the people in PoK have a deep connection with India. There are only a few who have been misled,” he said. In closing, Singh reiterated that India’s increasing power would serve as a beacon of security and prosperity, both for the nation and the broader global community.

Defence Minister Rajnath Singh stated that AMCA places India among the select few nations with the technological edge to develop fifth-gen fighter jets.

Approval of AMCA project is a milestone in India’s defence capability building: Rajnath Singh

In a landmark ruling that could reshape global trade dynamics, the United States Court of International Trade has declared President Donald Trump’s reciprocal tariff regime as illegal, according to a report by Bloomberg.&nbsp;&nbsp;The decision comes at a crucial moment in India-US trade negotiations, with Indian officials seeing it as an opportunity to reassess concessions made under pressure during the Trump era.&nbsp;India and the US are now reportedly working to conclude an interim trade deal before June 25, as reciprocal tariffs imposed under Trump’s 2025 executive order remain paused until July 9. This gives negotiators a narrow window to finalise a mutually agreeable framework.<h2>What did the US court say?</h2>On May 28 (May 29 IST), the US Court of International Trade ruled that Trump’s reciprocal tariffs, including the 10% baseline and additional 26% duty on Indian goods,&nbsp;lacked legal justification under the International Emergency Economic Powers Act (IEEPA), according to Bloomberg.&nbsp;The court concluded that trade deficits did not constitute the “unusual and extraordinary threat” required to invoke emergency powers. In its judgement, the court said, “IEEPA does not authorise any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs", as quoted by Bloomberg.&nbsp;&nbsp;The ruling is currently under appeal, but it temporarily undermines Washington’s leverage,&nbsp;especially in trade talks with strategic partners like India.<h2>How will it affect India-US trade talks?</h2>The ruling has reportedly shifted the momentum in India’s favour, at least temporarily. With the July 9 deadline fast approaching, Indian negotiators find themselves with more room to demand balanced terms.&nbsp;Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), said the judgment&nbsp;effectively dismantles the legal foundation of Trump-era tariff threats. “India must not enter into a one-sided deal based on illegal pressure tactics. With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favour US interests,” Srivastava told ANI.&nbsp;During earlier negotiations, Washington reportedly pushed for expansive market access in Indian sectors such as agriculture, automobiles, and government procurement, while offering limited trade concessions in return. This imbalance, experts argue, should now be revisited.<h2>India-US interim trade deal likely before June 25</h2>According to reports, both countries are pushing to finalise a limited trade package ahead of the July 9 tariff expiry. This interim deal is expected to be the first step toward a broader Bilateral Trade Agreement (BTA) and will cover trade in goods, non-tariff barriers, and select services, including digital trade.&nbsp;India is reportedly specifically seeking a full exemption from the 26% reciprocal tariff imposed by Trump’s executive order. While the US Congress must approve any Most Favoured Nation (MFN) tariff reduction, Trump’s reciprocal tariffs were imposed under emergency provisions and can be lifted via a new executive order.&nbsp;Commerce Minister Piyush Goyal, during his recent US visit, held talks with Commerce Secretary Howard Lutnick to provide political direction to the negotiations. A high-level US delegation is reportedly expected to visit India in early June to continue discussions.<h2>What are both countries asking for?</h2>India is reportedly seeking duty concessions for its labour-intensive export sectors, including textiles, gems and jewellery, leather goods, plastics, chemicals, shrimp, bananas, and grapes. The goal is to improve India’s competitiveness in the US market and to reach an ambitious bilateral trade target of $500 billion by 2030, up from the current level of $190 billion.&nbsp;In return, the US is reportedly demanding market access and tariff reductions in sectors such as electric vehicles, wine and dairy, apples and tree nuts, and petrochemical and industrial goods.&nbsp;According to data from the Ministry of Commerce and Industry, bilateral trade rose from $119.72 billion in FY24 to $131.84 billion in FY25, an increase of 10.1 per cent. Indian exports surged 11.6 per cent to $86.51 billion, while imports from the US rose 7.42 per cent to $45.33 billion.&nbsp;This resulted in India’s trade surplus with the US widening to $41.18 billion, up from $35.32 billion a year earlier.<h2>What pressure points remain?</h2>Despite this trade surplus in goods, Trump has repeatedly criticised India’s export-driven approach, ignoring significant American revenues generated from services and intellectual property in India.&nbsp;As reported by Bloomberg, US companies operating in India, from tech giants like Apple and Google to pharma and defence contractors reportedly benefit significantly from Indian market access, data, and human capital.&nbsp;However, the ruling does not impact tariffs imposed through other laws, such as the 25 per cent duty on steel, aluminium and auto parts, still affecting Indian exporters. US Secretary of Commerce Howard Lutnick, in court arguments reported by Reuters, said that without IEEPA, the President lacks fast-acting tools to address trade imbalances and national security threats. He added that alternatives such as Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 are lengthy and procedurally complex.&nbsp;India’s concessions have not been limited to tariffs. As per the US Trade Representative’s (USTR) 2025 Special 301 Report, the US continues to push India for reforms in data localisation, pharmaceutical patent law (specifically Section 3(d) of India’s Patents Act), and easing regulatory norms for genetically modified crops. The report accuses India of maintaining “high customs duties on IP-intensive products” and inadequate IP enforcement.&nbsp;Yet, New Delhi has so far reportedly resisted attempts at so-called “evergreening”, a practice used by pharmaceutical companies to extend patents by making minor modifications to existing drugs. India remains a critical supplier of affordable generic medicines to the US and developing nations.<h2>What lies ahead?</h2>The US court ruling offers India a rare window to renegotiate terms on more equitable grounds. However, this window may close quickly, especially if the Trump administration’s appeal finds favour in a higher court, possibly the US Supreme Court.&nbsp;For now, India’s Commerce Ministry has not issued an official statement on the judgement. But according to the report, the ruling is being seen as a strategic pause, a critical chance to reassess India’s trade priorities with its largest economic partner. &nbsp; &nbsp; &nbsp; &nbsp;

Business & Economy: This decision is crucial for India-US trade negotiations, as tariffs imposed under Trump 2025 executive order remain paused until July 9.

In a landmark ruling that could reshape global trade dynamics, the United States Court of International Trade has declared President Donald Trump’s reciprocal tariff regime as illegal, according to a report by Bloomberg. The decision comes at a crucial moment in India-US trade negotiations, with Indian officials seeing it as an opportunity to reassess concessions made under pressure during the Trump era. India and the US are now reportedly working to conclude an interim trade deal before June 25, as reciprocal tariffs imposed under Trump’s 2025 executive order remain paused until July 9. This gives negotiators a narrow window to finalise a mutually agreeable framework. What did the US court say? On May 28 (May 29 IST), the US Court of International Trade ruled that Trump’s reciprocal tariffs, including the 10% baseline and additional 26% duty on Indian goods, lacked legal justification under the International Emergency Economic Powers Act (IEEPA), according to Bloomberg. The court concluded that trade deficits did not constitute the “unusual and extraordinary threat” required to invoke emergency powers. In its judgement, the court said, “IEEPA does not authorise any of the Worldwide, Retaliatory, or Trafficking Tariff Orders. The Worldwide and Retaliatory Tariff Orders exceed any authority granted to the President by IEEPA to regulate importation by means of tariffs", as quoted by Bloomberg. The ruling is currently under appeal, but it temporarily undermines Washington’s leverage, especially in trade talks with strategic partners like India. How will it affect India-US trade talks? The ruling has reportedly shifted the momentum in India’s favour, at least temporarily. With the July 9 deadline fast approaching, Indian negotiators find themselves with more room to demand balanced terms. Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI), said the judgment effectively dismantles the legal foundation of Trump-era tariff threats. “India must not enter into a one-sided deal based on illegal pressure tactics. With the Trump tariffs standing on shaky legal ground, India must pause and reassess its negotiation strategy before committing to an FTA that could disproportionately favour US interests,” Srivastava told ANI. During earlier negotiations, Washington reportedly pushed for expansive market access in Indian sectors such as agriculture, automobiles, and government procurement, while offering limited trade concessions in return. This imbalance, experts argue, should now be revisited. India-US interim trade deal likely before June 25 According to reports, both countries are pushing to finalise a limited trade package ahead of the July 9 tariff expiry. This interim deal is expected to be the first step toward a broader Bilateral Trade Agreement (BTA) and will cover trade in goods, non-tariff barriers, and select services, including digital trade. India is reportedly specifically seeking a full exemption from the 26% reciprocal tariff imposed by Trump’s executive order. While the US Congress must approve any Most Favoured Nation (MFN) tariff reduction, Trump’s reciprocal tariffs were imposed under emergency provisions and can be lifted via a new executive order. Commerce Minister Piyush Goyal, during his recent US visit, held talks with Commerce Secretary Howard Lutnick to provide political direction to the negotiations. A high-level US delegation is reportedly expected to visit India in early June to continue discussions. What are both countries asking for? India is reportedly seeking duty concessions for its labour-intensive export sectors, including textiles, gems and jewellery, leather goods, plastics, chemicals, shrimp, bananas, and grapes. The goal is to improve India’s competitiveness in the US market and to reach an ambitious bilateral trade target of $500 billion by 2030, up from the current level of $190 billion. In return, the US is reportedly demanding market access and tariff reductions in sectors such as electric vehicles, wine and dairy, apples and tree nuts, and petrochemical and industrial goods. According to data from the Ministry of Commerce and Industry, bilateral trade rose from $119.72 billion in FY24 to $131.84 billion in FY25, an increase of 10.1 per cent. Indian exports surged 11.6 per cent to $86.51 billion, while imports from the US rose 7.42 per cent to $45.33 billion. This resulted in India’s trade surplus with the US widening to $41.18 billion, up from $35.32 billion a year earlier. What pressure points remain? Despite this trade surplus in goods, Trump has repeatedly criticised India’s export-driven approach, ignoring significant American revenues generated from services and intellectual property in India. As reported by Bloomberg, US companies operating in India, from tech giants like Apple and Google to pharma and defence contractors reportedly benefit significantly from Indian market access, data, and human capital. However, the ruling does not impact tariffs imposed through other laws, such as the 25 per cent duty on steel, aluminium and auto parts, still affecting Indian exporters. US Secretary of Commerce Howard Lutnick, in court arguments reported by Reuters, said that without IEEPA, the President lacks fast-acting tools to address trade imbalances and national security threats. He added that alternatives such as Section 232 of the Trade Expansion Act of 1962 and Section 301 of the Trade Act of 1974 are lengthy and procedurally complex. India’s concessions have not been limited to tariffs. As per the US Trade Representative’s (USTR) 2025 Special 301 Report, the US continues to push India for reforms in data localisation, pharmaceutical patent law (specifically Section 3(d) of India’s Patents Act), and easing regulatory norms for genetically modified crops. The report accuses India of maintaining “high customs duties on IP-intensive products” and inadequate IP enforcement. Yet, New Delhi has so far reportedly resisted attempts at so-called “evergreening”, a practice used by pharmaceutical companies to extend patents by making minor modifications to existing drugs. India remains a critical supplier of affordable generic medicines to the US and developing nations. What lies ahead? The US court ruling offers India a rare window to renegotiate terms on more equitable grounds. However, this window may close quickly, especially if the Trump administration’s appeal finds favour in a higher court, possibly the US Supreme Court. For now, India’s Commerce Ministry has not issued an official statement on the judgement. But according to the report, the ruling is being seen as a strategic pause, a critical chance to reassess India’s trade priorities with its largest economic partner.

The US Court of International Trade has declared Trump's reciprocal tariff regime illegal, potentially reshaping global trade dynamics.&nbsp;

US court rules Trump tariff illegal: How it will impact India-US trade talks?

Japan’s national debt, which has long been at the centre of the country’s economic policy, is now straining under its own weight. The government’s borrowing has reached unprecedented levels, with outstanding debt surpassing $9 trillion—more than double the size of the nation's GDP.This vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy. With interest rates climbing, the cost of servicing Japan’s debt is poised to rise, triggering alarm bells in both domestic and global financial markets.Japan’s recent bond market struggles reflect growing concerns about its fiscal health. A bond auction for 40-year government bonds last week met the weakest demand in almost a year, exacerbating fears over the country’s financial future. Yields on long-term government bonds have surged, and analysts are watching these movements closely, fearing that rising borrowing costs could further undermine the country’s already strained fiscal position.Japan's 40-year bond yield recently hit 3.13 per cent, its highest level in two decades. A failed bond auction on May 20, where the bid-to-cover ratio plummeted to 2.50 from 2.96, only added to investor unease.The situation is further complicated by Japan’s demographic challenges. The country’s ageing population has led to an explosion in social security spending, including pensions and healthcare. As the country’s population continues to shrink and age—over 30 per cent of its population will be 65 or older by 2024—government expenditures are expected to rise sharply, placing additional pressure on an already stretched budget.&nbsp;Rising deficits and political strain&nbsp;Japan’s national debt has ballooned to an unsustainable 195 per cent of GDP in 2023, the highest among major advanced economies. Much of this debt stems from persistent fiscal deficits, as government spending consistently outpaces revenue.In particular, Japan's social security deficit has been a key driver of the country’s fiscal imbalance. Despite efforts at fiscal consolidation, including tax hikes in 2014 and 2019, the country has struggled to rein in its deficits. Financing the growing debt has largely relied on domestic bond issuance, but with bond yields rising, this approach is becoming less viable.Prime Minister Shigeru Ishiba faces mounting political pressure as the country’s fiscal outlook grows more precarious. With upper house elections approaching, Ishiba is under increasing pressure from voters struggling with inflation and the economic impact of tariffs imposed by the United States.Populist demands for tax cuts are growing louder, even as Ishiba cautions against the dangers of higher interest rates. The prospect of a fiscal crisis similar to that of Greece’s 2009 debt debacle is being raised by analysts, further intensifying concerns about Japan’s financial future.&nbsp;Rising concern&nbsp;Japan's fiscal troubles are not just a domestic issue. As one of the world’s largest economies, Japan’s bond market plays a significant role in global financial markets. Its recent bond market volatility, characterised by sharp increases in long-term bond yields, has had ripple effects in global markets, particularly in the US Treasury market. Japan is the largest foreign holder of US government debt, and any significant shift in its bond market could reverberate across global financial systems.A sharp rise in Japanese bond yields could also divert capital back into Japan, as investors may seek higher returns on its bonds. This could affect other major economies by driving up borrowing costs worldwide. With Japan’s economic growth stagnant and its demographic challenges deepening, many economists believe that Japan must implement serious fiscal reforms to address its unsustainable debt trajectory.While Japan’s fiscal problems are not expected to lead to an immediate collapse, the country’s fiscal trajectory is unsustainable in the long term. Experts argue that Japan must begin serious fiscal consolidation to avoid a full-blown crisis. Ageing demographics, rising social security costs, and now higher interest rates mean the country faces a shrinking window of opportunity to enact meaningful fiscal reforms.For now, Japan’s fiscal woes remain a major concern for policymakers and investors alike. With rising bond yields, a growing debt burden, and an uncertain political landscape, Japan’s economic future hangs in the balance.

The vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy.

Japan’s national debt, which has long been at the centre of the country’s economic policy, is now straining under its own weight. The government’s borrowing has reached unprecedented levels, with outstanding debt surpassing $9 trillion—more than double the size of the nation's GDP. This vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy. With interest rates climbing, the cost of servicing Japan’s debt is poised to rise, triggering alarm bells in both domestic and global financial markets. Japan’s recent bond market struggles reflect growing concerns about its fiscal health. A bond auction for 40-year government bonds last week met the weakest demand in almost a year, exacerbating fears over the country’s financial future. Yields on long-term government bonds have surged, and analysts are watching these movements closely, fearing that rising borrowing costs could further undermine the country’s already strained fiscal position. Japan's 40-year bond yield recently hit 3.13 per cent, its highest level in two decades. A failed bond auction on May 20, where the bid-to-cover ratio plummeted to 2.50 from 2.96, only added to investor unease. The situation is further complicated by Japan’s demographic challenges. The country’s ageing population has led to an explosion in social security spending, including pensions and healthcare. As the country’s population continues to shrink and age—over 30 per cent of its population will be 65 or older by 2024—government expenditures are expected to rise sharply, placing additional pressure on an already stretched budget. Rising deficits and political strain Japan’s national debt has ballooned to an unsustainable 195 per cent of GDP in 2023, the highest among major advanced economies. Much of this debt stems from persistent fiscal deficits, as government spending consistently outpaces revenue. In particular, Japan's social security deficit has been a key driver of the country’s fiscal imbalance. Despite efforts at fiscal consolidation, including tax hikes in 2014 and 2019, the country has struggled to rein in its deficits. Financing the growing debt has largely relied on domestic bond issuance, but with bond yields rising, this approach is becoming less viable. Prime Minister Shigeru Ishiba faces mounting political pressure as the country’s fiscal outlook grows more precarious. With upper house elections approaching, Ishiba is under increasing pressure from voters struggling with inflation and the economic impact of tariffs imposed by the United States. Populist demands for tax cuts are growing louder, even as Ishiba cautions against the dangers of higher interest rates. The prospect of a fiscal crisis similar to that of Greece’s 2009 debt debacle is being raised by analysts, further intensifying concerns about Japan’s financial future. Rising concern Japan's fiscal troubles are not just a domestic issue. As one of the world’s largest economies, Japan’s bond market plays a significant role in global financial markets. Its recent bond market volatility, characterised by sharp increases in long-term bond yields, has had ripple effects in global markets, particularly in the US Treasury market. Japan is the largest foreign holder of US government debt, and any significant shift in its bond market could reverberate across global financial systems. A sharp rise in Japanese bond yields could also divert capital back into Japan, as investors may seek higher returns on its bonds. This could affect other major economies by driving up borrowing costs worldwide. With Japan’s economic growth stagnant and its demographic challenges deepening, many economists believe that Japan must implement serious fiscal reforms to address its unsustainable debt trajectory. While Japan’s fiscal problems are not expected to lead to an immediate collapse, the country’s fiscal trajectory is unsustainable in the long term. Experts argue that Japan must begin serious fiscal consolidation to avoid a full-blown crisis. Ageing demographics, rising social security costs, and now higher interest rates mean the country faces a shrinking window of opportunity to enact meaningful fiscal reforms. For now, Japan’s fiscal woes remain a major concern for policymakers and investors alike. With rising bond yields, a growing debt burden, and an uncertain political landscape, Japan’s economic future hangs in the balance.

The vast debt load, accumulated over decades of low interest rates and heavy government spending, is now starting to show signs of fragility, as the Bank of Japan gradually phases out its ultra-low interest rate policy.

Japan's fiscal health suffering as debt reaches unsustainable levels

Vietnam’s electric vehicle manufacturer VinFast Auto Ltd. is reportedly in talks to raise up to $200 million (₹1,660 crore) from Indian state-owned banks. According to Bloomberg, VinFast is preparing to enter the Indian market, the world’s third-largest car market.&nbsp;Central Bank of India and Union Bank of India are among the lenders currently engaged in discussions with VinFast for the loan, as quoted by Bloomberg. This would be the company’s first time tapping Indian financial institutions.&nbsp;The loan, part of VinFast’s initial $500 million investment plan for India, could be structured either in Indian rupees or as foreign currency through the external commercial borrowing (ECB) route. The terms are yet to be finalised and may change, the report added.&nbsp;A VinFast spokesperson told Bloomberg, “VinFast is currently in discussions with potential partners in India, including financial institutions, to support its operations in the market.” Central Bank of India and Union Bank of India have not responded to emailed queries, as reported by Bloomberg.<h2>VinFast prepares to launch Tamil Nadu plant</h2>VinFast has reportedly set June 30 as the launch date for its new EV manufacturing facility in Tamil Nadu. Ahead of the rollout, the company is finalising its local distribution network.&nbsp;Bookings for the VF6 and VF7 models are reportedly expected to begin in the coming weeks, while its compact EV, the VF3, will open for bookings in 2026.&nbsp;As per Bloomberg, pricing details for the Indian&nbsp;market have not yet been disclosed, but VinFast is expected to position its vehicles competitively in the budget-conscious segment.&nbsp;This strategic move into India comes as VinFast pulls back from its earlier ambitions in North America and Europe, citing high logistics and operational costs.&nbsp;According to Bloomberg, VinFast’s founder and CEO Pham Nhat Vuong told shareholders of parent company Vingroup JSC in April that the company will now focus on Vietnam and key Asian markets, including India, Indonesia, and the Philippines.&nbsp;VinFast also expects to open its Indonesia plant by October 2025 and is targeting deliveries of more than 200,000 vehicles in Vietnam this year.&nbsp;Vuong, who has already infused nearly $1 billion of his wealth into the company since 2023, has pledged another $2 billion through 2026 to fund global expansion. Vingroup has further committed up to $1.4 billion in loans to support the automaker’s operations, as reported by Bloomberg.<h2>India emerges as an EV magnet for global automakers</h2>VinFast is the latest in a growing wave of global EV manufacturers turning to India for expansion. Tesla is currently exploring the Indian market and is reportedly in talks with the governments of Gujarat and Maharashtra to set up a plant, according to Reuters. Meanwhile, Chinese automaker BYD and South Korea’s Hyundai are also reportedly pushing deeper into India’s EV space.&nbsp;India’s electric vehicle market is expanding rapidly. According to the Federation of Automobile Dealers Associations (FADA), EV sales in India rose 49 per cent year-on-year in FY24, crossing 1.5 million units. Electric vehicles now account for 6.4 per cent of total vehicle sales in the country.&nbsp;Government incentives such as production-linked incentive (PLI) schemes, reduced import duties for EVs, and a national target of achieving 30 per cent EV penetration by 2030 are making India an increasingly attractive destination for electric mobility investments.<h2>VinFast’s India strategy signals shift in global priorities</h2>VinFast’s entry into India reportedly underscores its strategic pivot away from saturated and cost-heavy Western&nbsp;markets toward high-growth, price-sensitive regions in Asia.&nbsp;Backed by strong financial commitments from both Vuong and Vingroup, the company is accelerating efforts to carve a niche in India’s evolving EV landscape.&nbsp;As competition intensifies and policy tailwinds continue to boost adoption, India is fast becoming a battleground for global EV players, and VinFast wants in.

Business & Economy: This is the company's first time tapping Indian financial institutions for a loan, part of its $500 million investment plan for India. The terms are yet to be finalized.

Vietnam’s electric vehicle manufacturer VinFast Auto Ltd. is reportedly in talks to raise up to $200 million (₹1,660 crore) from Indian state-owned banks. According to Bloomberg, VinFast is preparing to enter the Indian market, the world’s third-largest car market. Central Bank of India and Union Bank of India are among the lenders currently engaged in discussions with VinFast for the loan, as quoted by Bloomberg. This would be the company’s first time tapping Indian financial institutions. The loan, part of VinFast’s initial $500 million investment plan for India, could be structured either in Indian rupees or as foreign currency through the external commercial borrowing (ECB) route. The terms are yet to be finalised and may change, the report added. A VinFast spokesperson told Bloomberg, “VinFast is currently in discussions with potential partners in India, including financial institutions, to support its operations in the market.” Central Bank of India and Union Bank of India have not responded to emailed queries, as reported by Bloomberg. VinFast prepares to launch Tamil Nadu plant VinFast has reportedly set June 30 as the launch date for its new EV manufacturing facility in Tamil Nadu. Ahead of the rollout, the company is finalising its local distribution network. Bookings for the VF6 and VF7 models are reportedly expected to begin in the coming weeks, while its compact EV, the VF3, will open for bookings in 2026. As per Bloomberg, pricing details for the Indian market have not yet been disclosed, but VinFast is expected to position its vehicles competitively in the budget-conscious segment. This strategic move into India comes as VinFast pulls back from its earlier ambitions in North America and Europe, citing high logistics and operational costs. According to Bloomberg, VinFast’s founder and CEO Pham Nhat Vuong told shareholders of parent company Vingroup JSC in April that the company will now focus on Vietnam and key Asian markets, including India, Indonesia, and the Philippines. VinFast also expects to open its Indonesia plant by October 2025 and is targeting deliveries of more than 200,000 vehicles in Vietnam this year. Vuong, who has already infused nearly $1 billion of his wealth into the company since 2023, has pledged another $2 billion through 2026 to fund global expansion. Vingroup has further committed up to $1.4 billion in loans to support the automaker’s operations, as reported by Bloomberg. India emerges as an EV magnet for global automakers VinFast is the latest in a growing wave of global EV manufacturers turning to India for expansion. Tesla is currently exploring the Indian market and is reportedly in talks with the governments of Gujarat and Maharashtra to set up a plant, according to Reuters. Meanwhile, Chinese automaker BYD and South Korea’s Hyundai are also reportedly pushing deeper into India’s EV space. India’s electric vehicle market is expanding rapidly. According to the Federation of Automobile Dealers Associations (FADA), EV sales in India rose 49 per cent year-on-year in FY24, crossing 1.5 million units. Electric vehicles now account for 6.4 per cent of total vehicle sales in the country. Government incentives such as production-linked incentive (PLI) schemes, reduced import duties for EVs, and a national target of achieving 30 per cent EV penetration by 2030 are making India an increasingly attractive destination for electric mobility investments. VinFast’s India strategy signals shift in global priorities VinFast’s entry into India reportedly underscores its strategic pivot away from saturated and cost-heavy Western markets toward high-growth, price-sensitive regions in Asia. Backed by strong financial commitments from both Vuong and Vingroup, the company is accelerating efforts to carve a niche in India’s evolving EV landscape. As competition intensifies and policy tailwinds continue to boost adoption, India is fast becoming a battleground for global EV players, and VinFast wants in.

Vietnam's electric vehicle manufacturer, VinFast Auto Ltd., is in talks to raise up to $200 million from Indian state-owned banks, including Central Bank of India and Union Bank of India.&nbsp;

VinFast seeks $200 million loan from Indian banks as it gears up for EV debut

In a financial year marked by volatile global headwinds, the Reserve Bank of India (RBI) delivered a record ₹2.69 lakh crore ($32.28 billion) surplus to the government, by 27.3 per cent from the previous year’s ₹2.11 lakh crore ($25.32 billion).&nbsp;According to the RBI Annual Report for FY2024–25, this sharp jump in net income was driven by higher foreign exchange transaction gains, interest from foreign securities, and a cautious hike in its contingency risk buffer.&nbsp;While this windfall gives the Centre significant fiscal breathing space for its capital spending and welfare programs, the report also outlines a bold technology-forward vision for FY26 anchored around digital currency pilots, AI deployment, and cross-border innovation.<h2>Stronger balance sheet, bigger dividend</h2>As per the annual report, the central bank’s net income surged 27.3 per cent year-on-year to ₹2.69 lakh crore ($32.28 billion) in FY25, up from ₹2.11 lakh crore ($25.32 billion) the previous year. This includes gains of ₹11.1 lakh crore ($133.2 billion) from foreign exchange transactions, and ₹9.7 lakh crore ($116.4 billion) in interest income from foreign securities.&nbsp;The RBI’s balance sheet expanded 8.2 per cent to ₹76.25 lakh crore ($915 billion), with foreign assets accounting for over 74 per cent of the total. Notably, the central bank’s gold holdings rose by 57.5 metric tonnes to 879.6 metric tonnes as of March 2025.&nbsp;A significant portion of the income of ₹2.68 lakh crore ($32.16 billion) has already been transferred to the central government as surplus, a move expected to ease fiscal pressures, support capital spending, and inject liquidity into the banking system by early July, according to economists cited in the report.&nbsp;The report also highlights that the Contingency Risk Buffer (CRB), which helps cushion against economic shocks was maintained at 6.5 per cent, the same level as FY24.&nbsp;Inflation, growth, and monetary policy: RBI’s balancing actThe RBI’s latest report offers a cautiously optimistic view of the Indian economy. According to the central bank, headline inflation is likely to converge to the 4 per cent target over the next 12 months, thanks to a favourable mix of macroeconomic conditions.&nbsp;These include easing global supply chain pressures, softening of international commodity prices, and above-normal rainfall boosting agricultural output.&nbsp;At the same time, GDP growth for FY26 is projected at 6.5 per cent, with the momentum driven by private consumption, healthy corporate and banking balance sheets, and the government’s continued focus on capital expenditure.&nbsp;In response to moderating inflation and subdued economic momentum, the RBI has already cut the policy repo rate by 50 basis points since February, and adopted a ‘growth-supportive’ accommodative stance in April.&nbsp;However, the path forward is not without risks. The RBI flagged a range of external headwinds, rising protectionism, geopolitical conflicts, and volatile financial markets that could threaten both inflation and growth targets. Of particular concern is the return of US tariffs under President Donald Trump, which have added uncertainty to global trade flows and emerging market stability.&nbsp;According to the report, “While the outlook remains promising, downside risks to growth and upside risks to inflation persist due to evolving global dynamics.”<h2>Digital rupee, FX platform, and CBDC pilots: What’s next for RBI?</h2>The RBI is making it clear that India’s digital financial future is no longer experimental, it’s strategic.&nbsp;According to the report, the RBI will expand the pilots for central bank digital currency (CBDC) in both retail (e₹-Retail) and wholesale (e₹-Wholesale) segments. Building on groundwork laid over the past two years, the central bank now plans to test cross-border CBDC transactions, both bilateral and multilateral to make global payments faster, more transparent, and more secure.&nbsp;In addition, the RBI will link its FX-Retail platform with Bharat Connect, a move aimed at democratising access to forex markets for small businesses and individual users. This is particularly significant as India’s foreign exchange reserves peaked at $704 billion in September 2024, and the RBI was the top net seller of forex among Asian central banks in January 2025, according to estimates from Nomura and DBS Bank.&nbsp;The digital push doesn’t end there. The RBI will also roll out new CBDC use cases, such as B2B payments under the Unified Ledger Interface (ULI), and scale up Milehunter.ai™, its AI-driven analytics platform. To accompany this digital acceleration, the central bank will also develop a framework for the responsible and ethical use of AI in the financial sector.&nbsp;These pilots and platforms, the report notes, are designed to overcome persistent inefficiencies in the current system, especially those related to turnaround time, traceability, and cross-border transaction costs.<h2>Bank fraud amount triples despite drop in cases</h2>One of the more concerning takeaways from the report is the sharp rise in the value of bank frauds.&nbsp;While the total number of fraud cases declined by 34 per cent to 23,953 in FY25, the value of frauds tripled to ₹36,014 crore ($432.17 million), up from roughly ₹12,000 crore ($144 million) in FY24.&nbsp;According to the RBI annual report, this spike was largely due to the reclassification of 122 legacy fraud cases worth ₹18,674 crore ($224.08 million), after a March 2023 Supreme Court ruling mandated re-examination.&nbsp;Private sector banks reported the highest number of fraud incidents at 14,233 cases, accounting for 59.4 per cent of total frauds. But in terms of value, state-owned banks bore the brunt, accounting for ₹25,667 crore ($307.99 million) (71.3 per cent of total fraud value) compared to ₹10,088 crore ($121.05 million) by private lenders.&nbsp;Most of these frauds occurred in two areas:• Digital payments (cards/internet): 13,516 cases, ₹520 crore ($6.24 million)• Loan/advances segment: 7,950 cases, ₹33,148 crore ($398 million)&nbsp;The RBI noted that while digital frauds dominate in private banks, loan-related frauds remain concentrated in public sector banks, raising concerns about credit risk monitoring and recovery.&nbsp;

Business & Economy: One of the more concerning takeaways from the RBI report is the sharp rise in the value of bank frauds.

In a financial year marked by volatile global headwinds, the Reserve Bank of India (RBI) delivered a record ₹2.69 lakh crore ($32.28 billion) surplus to the government, by 27.3 per cent from the previous year’s ₹2.11 lakh crore ($25.32 billion). According to the RBI Annual Report for FY2024–25, this sharp jump in net income was driven by higher foreign exchange transaction gains, interest from foreign securities, and a cautious hike in its contingency risk buffer. While this windfall gives the Centre significant fiscal breathing space for its capital spending and welfare programs, the report also outlines a bold technology-forward vision for FY26 anchored around digital currency pilots, AI deployment, and cross-border innovation. Stronger balance sheet, bigger dividend As per the annual report, the central bank’s net income surged 27.3 per cent year-on-year to ₹2.69 lakh crore ($32.28 billion) in FY25, up from ₹2.11 lakh crore ($25.32 billion) the previous year. This includes gains of ₹11.1 lakh crore ($133.2 billion) from foreign exchange transactions, and ₹9.7 lakh crore ($116.4 billion) in interest income from foreign securities. The RBI’s balance sheet expanded 8.2 per cent to ₹76.25 lakh crore ($915 billion), with foreign assets accounting for over 74 per cent of the total. Notably, the central bank’s gold holdings rose by 57.5 metric tonnes to 879.6 metric tonnes as of March 2025. A significant portion of the income of ₹2.68 lakh crore ($32.16 billion) has already been transferred to the central government as surplus, a move expected to ease fiscal pressures, support capital spending, and inject liquidity into the banking system by early July, according to economists cited in the report. The report also highlights that the Contingency Risk Buffer (CRB), which helps cushion against economic shocks was maintained at 6.5 per cent, the same level as FY24. Inflation, growth, and monetary policy: RBI’s balancing act The RBI’s latest report offers a cautiously optimistic view of the Indian economy. According to the central bank, headline inflation is likely to converge to the 4 per cent target over the next 12 months, thanks to a favourable mix of macroeconomic conditions. These include easing global supply chain pressures, softening of international commodity prices, and above-normal rainfall boosting agricultural output. At the same time, GDP growth for FY26 is projected at 6.5 per cent, with the momentum driven by private consumption, healthy corporate and banking balance sheets, and the government’s continued focus on capital expenditure. In response to moderating inflation and subdued economic momentum, the RBI has already cut the policy repo rate by 50 basis points since February, and adopted a ‘growth-supportive’ accommodative stance in April. However, the path forward is not without risks. The RBI flagged a range of external headwinds, rising protectionism, geopolitical conflicts, and volatile financial markets that could threaten both inflation and growth targets. Of particular concern is the return of US tariffs under President Donald Trump, which have added uncertainty to global trade flows and emerging market stability. According to the report, “While the outlook remains promising, downside risks to growth and upside risks to inflation persist due to evolving global dynamics.” Digital rupee, FX platform, and CBDC pilots: What’s next for RBI? The RBI is making it clear that India’s digital financial future is no longer experimental, it’s strategic. According to the report, the RBI will expand the pilots for central bank digital currency (CBDC) in both retail (e₹-Retail) and wholesale (e₹-Wholesale) segments. Building on groundwork laid over the past two years, the central bank now plans to test cross-border CBDC transactions, both bilateral and multilateral to make global payments faster, more transparent, and more secure. In addition, the RBI will link its FX-Retail platform with Bharat Connect, a move aimed at democratising access to forex markets for small businesses and individual users. This is particularly significant as India’s foreign exchange reserves peaked at $704 billion in September 2024, and the RBI was the top net seller of forex among Asian central banks in January 2025, according to estimates from Nomura and DBS Bank. The digital push doesn’t end there. The RBI will also roll out new CBDC use cases, such as B2B payments under the Unified Ledger Interface (ULI), and scale up Milehunter.ai™, its AI-driven analytics platform. To accompany this digital acceleration, the central bank will also develop a framework for the responsible and ethical use of AI in the financial sector. These pilots and platforms, the report notes, are designed to overcome persistent inefficiencies in the current system, especially those related to turnaround time, traceability, and cross-border transaction costs. Bank fraud amount triples despite drop in cases One of the more concerning takeaways from the report is the sharp rise in the value of bank frauds. While the total number of fraud cases declined by 34 per cent to 23,953 in FY25, the value of frauds tripled to ₹36,014 crore ($432.17 million), up from roughly ₹12,000 crore ($144 million) in FY24. According to the RBI annual report, this spike was largely due to the reclassification of 122 legacy fraud cases worth ₹18,674 crore ($224.08 million), after a March 2023 Supreme Court ruling mandated re-examination. Private sector banks reported the highest number of fraud incidents at 14,233 cases, accounting for 59.4 per cent of total frauds. But in terms of value, state-owned banks bore the brunt, accounting for ₹25,667 crore ($307.99 million) (71.3 per cent of total fraud value) compared to ₹10,088 crore ($121.05 million) by private lenders. Most of these frauds occurred in two areas: • Digital payments (cards/internet): 13,516 cases, ₹520 crore ($6.24 million) • Loan/advances segment: 7,950 cases, ₹33,148 crore ($398 million) The RBI noted that while digital frauds dominate in private banks, loan-related frauds remain concentrated in public sector banks, raising concerns about credit risk monitoring and recovery.

Amid global tension, the central bank of India's annual report for FY24- 25 delivered a record ₹2.69 lakh crore surplus to the government, by 27.3 per cent from the previous year’s ₹2.11 lakh crore.&nbsp;

From ₹2.69 lakh cr surplus to digital rupee pilots: Here's what RBI’s FY25 annual report outlines

The Federal Reserve's recent meeting minutes revealed an increasing focus on long-term inflation expectations, with officials expressing concern that tariffs may trigger more persistent inflation compared to what was initially anticipated.The minutes, which were released on May 28, underscore the delicate balancing act that the Fed faces as it navigates the evolving economic landscape, particularly with respect to inflation pressures and uncertain growth prospects.A primary point of discussion among Fed officials was the rising expectations for inflation over the next five to 10 years, driven in large part by the imposition of tariffs. According to the minutes, “almost all” participants noted the risk that inflation could prove more persistent than expected, signalling that inflationary pressures might remain stubbornly high even in the face of efforts to stabilise prices.The Federal Reserve has been closely monitoring inflation as part of its broader strategy to maintain price stability. Typically, the central bank aims to keep inflation expectations well-anchored, believing that if consumers and businesses expect inflation to remain stable, it can help moderate actual price increases. However, the surge in long-term inflation expectations, as reflected by a University of Michigan survey, has raised concerns among Fed officials about the potential for longer-lasting inflationary pressures.Despite these concerns, Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable. These market indicators, including Treasury Inflation-Protected Securities (TIPS) and inflation swaps, have not shown a significant uptick in expectations of runaway inflation. The central bank has repeatedly stressed that it is focused on long-term, rather than short-term, inflation trends.The minutes also acknowledged that if inflationary pressures persist, the Federal Reserve might face a difficult setet of trade-offs in managing the economy. “Participants noted that the committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” the minutes stated. This reflects an increasing sense of uncertainty among policymakers about the future trajectory of both inflation and economic growth. The Fed’s ability to keep inflation under control while fostering continued economic growth and low unemployment will likely be tested in the coming months.The ongoing uncertainty surrounding the impact of government policies, particularly tariffs, on the economy was also highlighted in the minutes. The Fed officials noted that the "ultimate extent of changes to government policy and their effects on the economy were highly uncertain," a recognition that the administration's trade policies could introduce new challenges to the central bank’s ability to manage inflation.&nbsp;Uncertain future&nbsp;The uncertainty surrounding the future of inflation and government policies has already begun to influence market behaviour. Investors and economists have been closely watching signals from the Federal Reserve about its future actions, particularly regarding interest rates and monetary policy. The rise in inflation expectations, coupled with concerns over slower economic growth, could lead to more cautious decisions on the part of both the Fed and market participants.The Federal Reserve’s minutes point to a complex economic environment, one where inflation expectations are rising due to tariffs and other factors, yet growth and employment remain uncertain. While Fed officials have reassured markets that inflation expectations remain well-anchored in the long run, they also acknowledged the potential risks if these expectations continue to climb, particularly if inflationary pressures become entrenched. As the central bank faces these challenges, it will be required to balance the need for price stability with the broader economic goals of fostering growth and low unemployment.

Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable.

The Federal Reserve's recent meeting minutes revealed an increasing focus on long-term inflation expectations, with officials expressing concern that tariffs may trigger more persistent inflation compared to what was initially anticipated. The minutes, which were released on May 28, underscore the delicate balancing act that the Fed faces as it navigates the evolving economic landscape, particularly with respect to inflation pressures and uncertain growth prospects. A primary point of discussion among Fed officials was the rising expectations for inflation over the next five to 10 years, driven in large part by the imposition of tariffs. According to the minutes, “almost all” participants noted the risk that inflation could prove more persistent than expected, signalling that inflationary pressures might remain stubbornly high even in the face of efforts to stabilise prices. The Federal Reserve has been closely monitoring inflation as part of its broader strategy to maintain price stability. Typically, the central bank aims to keep inflation expectations well-anchored, believing that if consumers and businesses expect inflation to remain stable, it can help moderate actual price increases. However, the surge in long-term inflation expectations, as reflected by a University of Michigan survey, has raised concerns among Fed officials about the potential for longer-lasting inflationary pressures. Despite these concerns, Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable. These market indicators, including Treasury Inflation-Protected Securities (TIPS) and inflation swaps, have not shown a significant uptick in expectations of runaway inflation. The central bank has repeatedly stressed that it is focused on long-term, rather than short-term, inflation trends. The minutes also acknowledged that if inflationary pressures persist, the Federal Reserve might face a difficult setet of trade-offs in managing the economy. “Participants noted that the committee might face difficult tradeoffs if inflation proves to be more persistent while the outlooks for growth and employment weaken,” the minutes stated. This reflects an increasing sense of uncertainty among policymakers about the future trajectory of both inflation and economic growth. The Fed’s ability to keep inflation under control while fostering continued economic growth and low unemployment will likely be tested in the coming months. The ongoing uncertainty surrounding the impact of government policies, particularly tariffs, on the economy was also highlighted in the minutes. The Fed officials noted that the "ultimate extent of changes to government policy and their effects on the economy were highly uncertain," a recognition that the administration's trade policies could introduce new challenges to the central bank’s ability to manage inflation. Uncertain future The uncertainty surrounding the future of inflation and government policies has already begun to influence market behaviour. Investors and economists have been closely watching signals from the Federal Reserve about its future actions, particularly regarding interest rates and monetary policy. The rise in inflation expectations, coupled with concerns over slower economic growth, could lead to more cautious decisions on the part of both the Fed and market participants. The Federal Reserve’s minutes point to a complex economic environment, one where inflation expectations are rising due to tariffs and other factors, yet growth and employment remain uncertain. While Fed officials have reassured markets that inflation expectations remain well-anchored in the long run, they also acknowledged the potential risks if these expectations continue to climb, particularly if inflationary pressures become entrenched. As the central bank faces these challenges, it will be required to balance the need for price stability with the broader economic goals of fostering growth and low unemployment.

Fed officials have largely downplayed the rise in inflation expectations, pointing to market-based measures that suggest inflation expectations remain relatively stable.

Fed officials express concern over long-term inflation expectations amid tariff impact

In a move aimed at shielding South Korea’s faltering economy from global trade shocks and domestic instability, the Bank of Korea (BOK) on Thursday cut its key interest rate for the fourth time since October. The central bank lowered its seven-day repurchase rate by 25 basis points to 2.5 per cent, a decision that was widely anticipated by markets and economists alike.&nbsp;According to Bloomberg, all 21 economists surveyed had predicted the cut, as pressure mounted on the BOK to act amid a worsening external environment and weak domestic indicators.<h2>Economy in reverse as political crisis deepens</h2>South Korea’s economy slipped into contraction in the first quarter of 2025, and recent indicators show little momentum for recovery. A combination of sluggish exports, faltering domestic consumption, and subdued business investment has led policymakers to acknowledge the need for further stimulus.&nbsp;The BOK also revised its annual growth forecast down sharply to 0.8 per cent, from an earlier estimate of 1.5 per cent made in February. This move reflects the twin headwinds facing Asia’s fourth-largest economy: the global trade upheaval triggered by US tariffs and the uncertainty following the ousting of former President Yoon Suk Yeol.&nbsp;Yoon, removed from office in April after a failed martial law attempt led to a constitutional crisis, left behind a political vacuum just as Donald Trump’s sweeping import tariffs rattled global markets.&nbsp;Trump’s April announcement of 10 per cent tariffs on all US imports—and a 60 per cent duty on Chinese goods has hit export-heavy economies like South Korea especially hard.&nbsp;According to Bloomberg, the South Korean won initially held steady but later fell by 0.4 per cent against the US dollar following the rate cut announcement.<h2>Monetary easing despite election sensitivities</h2>The rate cut comes just five days before South Korea’s presidential election on June 3, a timing that has raised eyebrows in some quarters. However, BOK Governor Rhee Chang-yong had already signalled in April that the decision would remain focused solely on the economy, not politics.&nbsp;“At that time, all six board members were open to a rate cut within three months,” Bloomberg reported, “in what appeared to be a clear signal that action was coming this month.”&nbsp;The recent appreciation of the Korean won, which had climbed to a seven-month high, also provided more room for the BOK to resume easing without immediately stoking inflation, a concern that had restrained its previous moves.<h2>Fiscal stimulus on the horizon</h2>The election result is expected to shape the broader fiscal landscape in the months ahead. The frontrunner, Lee Jae-myung of the Democratic Party, has pledged at least 30 trillion won ($21.8 billion) in stimulus focused on households and small businesses. His conservative challenger, Kim Moon-soo, has proposed a similar-sized supplementary budget aimed at boosting public welfare.&nbsp;As Bloomberg notes, “The BOK and broader markets are closely watching which candidate takes office, as their fiscal strategies will shape the central bank’s room to manoeuvre.”&nbsp;The South Korean parliament has already passed a 13.8 trillion won supplementary budget, targeted at buffering vulnerable sectors and mitigating tariff-induced trade risks. However, implementation of any further measures is likely to hinge on the incoming president’s priorities.

Business & Economy: The rate cut comes just five days before South Korea’s presidential election on June 3, a timing that has raised eyebrows in some quarters.

In a move aimed at shielding South Korea’s faltering economy from global trade shocks and domestic instability, the Bank of Korea (BOK) on Thursday cut its key interest rate for the fourth time since October. The central bank lowered its seven-day repurchase rate by 25 basis points to 2.5 per cent, a decision that was widely anticipated by markets and economists alike. According to Bloomberg, all 21 economists surveyed had predicted the cut, as pressure mounted on the BOK to act amid a worsening external environment and weak domestic indicators. Economy in reverse as political crisis deepens South Korea’s economy slipped into contraction in the first quarter of 2025, and recent indicators show little momentum for recovery. A combination of sluggish exports, faltering domestic consumption, and subdued business investment has led policymakers to acknowledge the need for further stimulus. The BOK also revised its annual growth forecast down sharply to 0.8 per cent, from an earlier estimate of 1.5 per cent made in February. This move reflects the twin headwinds facing Asia’s fourth-largest economy: the global trade upheaval triggered by US tariffs and the uncertainty following the ousting of former President Yoon Suk Yeol. Yoon, removed from office in April after a failed martial law attempt led to a constitutional crisis, left behind a political vacuum just as Donald Trump’s sweeping import tariffs rattled global markets. Trump’s April announcement of 10 per cent tariffs on all US imports—and a 60 per cent duty on Chinese goods has hit export-heavy economies like South Korea especially hard. According to Bloomberg, the South Korean won initially held steady but later fell by 0.4 per cent against the US dollar following the rate cut announcement. Monetary easing despite election sensitivities The rate cut comes just five days before South Korea’s presidential election on June 3, a timing that has raised eyebrows in some quarters. However, BOK Governor Rhee Chang-yong had already signalled in April that the decision would remain focused solely on the economy, not politics. “At that time, all six board members were open to a rate cut within three months,” Bloomberg reported, “in what appeared to be a clear signal that action was coming this month.” The recent appreciation of the Korean won, which had climbed to a seven-month high, also provided more room for the BOK to resume easing without immediately stoking inflation, a concern that had restrained its previous moves. Fiscal stimulus on the horizon The election result is expected to shape the broader fiscal landscape in the months ahead. The frontrunner, Lee Jae-myung of the Democratic Party, has pledged at least 30 trillion won ($21.8 billion) in stimulus focused on households and small businesses. His conservative challenger, Kim Moon-soo, has proposed a similar-sized supplementary budget aimed at boosting public welfare. As Bloomberg notes, “The BOK and broader markets are closely watching which candidate takes office, as their fiscal strategies will shape the central bank’s room to manoeuvre.” The South Korean parliament has already passed a 13.8 trillion won supplementary budget, targeted at buffering vulnerable sectors and mitigating tariff-induced trade risks. However, implementation of any further measures is likely to hinge on the incoming president’s priorities.

The Bank of Korea (BOK) has cut its key interest rate for the fourth time since October to protect South Korea's economy from global trade shocks and domestic instability.&nbsp;

Bank of Korea cuts rates to shield economy from Trump tariffs and political turmoil

A Bloomberg report quoting sources showed the valuation of India's biggest equity-derivatives bourse, the National Stock Exchange (NSE), has surged 60 per cent. This comes on hopes the bourse will go in for IPO soon.&nbsp;The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares.&nbsp;Institutions and wealthy individuals have been purchasing the unlisted shares at a rapid pace in anticipation of an IPO. The share sale is expected as early as this year.&nbsp;Recent trades have seen prices of the bourse jump up to ₹2,000 or $23 per share. That is a reflection of the stock's high demand relative to supply.&nbsp;IPO bets boost NSE's valuation&nbsp;NSE's perceived value jumped to $36 billion in September last year, more than doubling in just four months.The latest rally coincides with the exchange's efforts to settle a longstanding legal dispute with the SEBI. The legal battle had held up NSE's listing plans for nearly a decade.&nbsp;The NSE, backed by large investors like LIC of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016.&nbsp;Sebi's investigation into allegations that some high-speed traders gained unfair access to its co-location servers not only derailed the listing but also led to a six-month ban from capital markets.&nbsp;Currently, the NSE has almost 2.5 billion shares outstanding in private markets. A potential IPO would place NSE’s $58 billion valuation above that of NASDAQ and would narrow the gap with Deutsche Börse's $62 billion market value.

The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourses unlisted shares.

A Bloomberg report quoting sources showed the valuation of India's biggest equity-derivatives bourse, the National Stock Exchange (NSE), has surged 60 per cent. This comes on hopes the bourse will go in for IPO soon. The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares. Institutions and wealthy individuals have been purchasing the unlisted shares at a rapid pace in anticipation of an IPO. The share sale is expected as early as this year. Recent trades have seen prices of the bourse jump up to ₹2,000 or $23 per share. That is a reflection of the stock's high demand relative to supply. IPO bets boost NSE's valuation NSE's perceived value jumped to $36 billion in September last year, more than doubling in just four months. The latest rally coincides with the exchange's efforts to settle a longstanding legal dispute with the SEBI. The legal battle had held up NSE's listing plans for nearly a decade. The NSE, backed by large investors like LIC of India and Canada Pension Plan Investment Board, first filed papers for an IPO in 2016. Sebi's investigation into allegations that some high-speed traders gained unfair access to its co-location servers not only derailed the listing but also led to a six-month ban from capital markets. Currently, the NSE has almost 2.5 billion shares outstanding in private markets. A potential IPO would place NSE’s $58 billion valuation above that of NASDAQ and would narrow the gap with Deutsche Börse's $62 billion market value.

The valuation of NSE in private markets has reached $58 billion, with demand far outstripping the supply of the bourse's unlisted shares.

Top Indian exchange’s valuation jumps 60%

Nvidia’s first-quarter earnings for fiscal year 2026 have shattered records, with the company posting a remarkable 69 per cent year-on-year revenue growth to $44.1 billion. The impressive performance was largely driven by a booming data centre business, which saw a 73 per cent rise in sales compared to the same quarter last year.However, the quarter was not without its challenges, as Nvidia incurred a significant $4.5 billion charge due to the export restrictions on its H20 products for the China market.The standout performer in Nvidia’s earnings report was its data centre division, which recorded a massive $39.1 billion in revenue, representing 88 per cent of the company's total revenue. The demand for Nvidia’s artificial intelligence (AI) chips, especially for large cloud providers and AI supercomputing, continues to surge.The company also announced that Microsoft has deployed tens of thousands of Nvidia's Blackwell GPUs, with plans to increase that number to hundreds of thousands, thanks to their partnership with OpenAI.Nvidia’s AI infrastructure products, including the breakthrough Blackwell NVL72 AI supercomputer, have seen explosive growth. “AI inference token generation has surged tenfold in just one year,” said Nvidia CEO Jensen Huang during the company’s earnings call.As AI agents become more mainstream, Huang emphasised that the demand for AI computing will continue to accelerate, positioning Nvidia at the centre of this transformative technology shift. “Countries around the world are recognising AI as essential infrastructure—just like electricity and the internet,” he added.Despite the soaring demand for Nvidia’s cutting-edge AI chips, the company was hit with a significant setback during the quarter. On April 9, 2025, the US government informed Nvidia that a licence would be required for the export of its H20 products to China.This unexpected change in the trade policy forced Nvidia to absorb a $4.5 billion charge in the first quarter of the current fiscal year, related to excess inventory and purchase obligations. As a result, Nvidia was unable to ship an additional $2.5 billion in H2O-related sales.These export restrictions have serious implications for Nvidia, with Huang stating that the $50 billion AI chip market in China is effectively closed to US industry. The firm’s H20 processor, which had previously been approved for export to China, had been a major contributor to Nvidia’s data centre business, and the export ban has effectively ended its Hopper data centre business in China.&nbsp;Strong performance despite setbacks&nbsp;Nvidia's first-quarter net income rose by 26 per cent, reaching $18.8 billion, or $0.76 per share, up from $14.9 billion in the previous year. On an adjusted basis, earnings per share (EPS) were $0.96, beating analysts’ expectations of $0.93.In afterhours trading on Wall Street, Nvidia share price jumped as much as 6 per cent after the chip maker posted record-breaking revenue. Its stock climbed to $142.22 apiece on Nasdaq in afterhours trading, against previous close at $135.50.The company's gross margin was reported at 60.5 per cent on a GAAP basis and 61.0 per cent on a non-GAAP basis. Excluding the $4.5 billion charge, non-GAAP gross margin would have been a staggering 71.3 per cent.The company’s gaming division, which includes chips for 3D gaming, also showed strong growth, with revenue rising 42 per cent year-on-year to $3.8 billion. Notably, Nvidia’s chips now power the Nintendo Switch 2, a new console that integrates AI-powered DLSS technology for up to 4K gaming. Nvidia’s graphics technology, once primarily used for gaming, is now being utilised in AI applications, further highlighting the expanding reach of its chips.In addition, Nvidia’s automotive and robotics business saw a 72 per cent increase in revenue, totalling $567 million. The division's growth was driven by increased demand for self-driving car chips and robotics software, including the company’s breakthrough in humanoid robotics.Nvidia had also introduced its Isaac GR00T N1, the world’s first open humanoid robot foundation model, and announced plans to expand its role in robotics development.Nvidia’s professional visualisation division, which provides chips for 3D design and AI-powered design workstations, reported a 19 per cent increase in revenue to $509 million.&nbsp;Guidance and expansion plans&nbsp;Looking ahead, Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, give or take 2 per cent, with a substantial $8 billion in lost sales due to the H20 export restrictions. Despite the loss of the China market, Nvidia remains optimistic about the future of its AI infrastructure and the continued global demand for its products.Gross margins are projected to be in the range of 71.8 per cent to 72.0 per cent, with Nvidia targeting mid-70 per cent margins later in the year as it continues to scale its AI offerings.Nvidia is also focused on expanding its global presence. The company recently unveiled plans to build AI factories in the US and Saudi Arabia, as well as launching the Stargate UAE AI infrastructure cluster in Abu Dhabi.The firm has also expanded partnerships with major tech giants such as Oracle, Google, and Microsoft, and its Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure.While the export restrictions are a significant hurdle for Nvidia, the company remains well-positioned at the forefront of the AI revolution. As countries worldwide increasingly view AI as essential infrastructure, Nvidia’s leadership in AI computing, combined with its expanding global footprint, positions the company for continued success in the coming years.In the meantime, Nvidia continues to focus on delivering innovative products and expanding its partnerships to meet the surging demand for AI chips and infrastructure, with eyes on the future growth of AI technologies across the globe.

Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, with a substantial $8 billion in lost sales due to the H20 export restrictions.

Nvidia’s first-quarter earnings for fiscal year 2026 have shattered records, with the company posting a remarkable 69 per cent year-on-year revenue growth to $44.1 billion. The impressive performance was largely driven by a booming data centre business, which saw a 73 per cent rise in sales compared to the same quarter last year. However, the quarter was not without its challenges, as Nvidia incurred a significant $4.5 billion charge due to the export restrictions on its H20 products for the China market. The standout performer in Nvidia’s earnings report was its data centre division, which recorded a massive $39.1 billion in revenue, representing 88 per cent of the company's total revenue. The demand for Nvidia’s artificial intelligence (AI) chips, especially for large cloud providers and AI supercomputing, continues to surge. The company also announced that Microsoft has deployed tens of thousands of Nvidia's Blackwell GPUs, with plans to increase that number to hundreds of thousands, thanks to their partnership with OpenAI. Nvidia’s AI infrastructure products, including the breakthrough Blackwell NVL72 AI supercomputer, have seen explosive growth. “AI inference token generation has surged tenfold in just one year,” said Nvidia CEO Jensen Huang during the company’s earnings call. As AI agents become more mainstream, Huang emphasised that the demand for AI computing will continue to accelerate, positioning Nvidia at the centre of this transformative technology shift. “Countries around the world are recognising AI as essential infrastructure—just like electricity and the internet,” he added. Despite the soaring demand for Nvidia’s cutting-edge AI chips, the company was hit with a significant setback during the quarter. On April 9, 2025, the US government informed Nvidia that a licence would be required for the export of its H20 products to China. This unexpected change in the trade policy forced Nvidia to absorb a $4.5 billion charge in the first quarter of the current fiscal year, related to excess inventory and purchase obligations. As a result, Nvidia was unable to ship an additional $2.5 billion in H2O-related sales. These export restrictions have serious implications for Nvidia, with Huang stating that the $50 billion AI chip market in China is effectively closed to US industry. The firm’s H20 processor, which had previously been approved for export to China, had been a major contributor to Nvidia’s data centre business, and the export ban has effectively ended its Hopper data centre business in China. Strong performance despite setbacks Nvidia's first-quarter net income rose by 26 per cent, reaching $18.8 billion, or $0.76 per share, up from $14.9 billion in the previous year. On an adjusted basis, earnings per share (EPS) were $0.96, beating analysts’ expectations of $0.93. In afterhours trading on Wall Street, Nvidia share price jumped as much as 6 per cent after the chip maker posted record-breaking revenue. Its stock climbed to $142.22 apiece on Nasdaq in afterhours trading, against previous close at $135.50. The company's gross margin was reported at 60.5 per cent on a GAAP basis and 61.0 per cent on a non-GAAP basis. Excluding the $4.5 billion charge, non-GAAP gross margin would have been a staggering 71.3 per cent. The company’s gaming division, which includes chips for 3D gaming, also showed strong growth, with revenue rising 42 per cent year-on-year to $3.8 billion. Notably, Nvidia’s chips now power the Nintendo Switch 2, a new console that integrates AI-powered DLSS technology for up to 4K gaming. Nvidia’s graphics technology, once primarily used for gaming, is now being utilised in AI applications, further highlighting the expanding reach of its chips. In addition, Nvidia’s automotive and robotics business saw a 72 per cent increase in revenue, totalling $567 million. The division's growth was driven by increased demand for self-driving car chips and robotics software, including the company’s breakthrough in humanoid robotics. Nvidia had also introduced its Isaac GR00T N1, the world’s first open humanoid robot foundation model, and announced plans to expand its role in robotics development. Nvidia’s professional visualisation division, which provides chips for 3D design and AI-powered design workstations, reported a 19 per cent increase in revenue to $509 million. Guidance and expansion plans Looking ahead, Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, give or take 2 per cent, with a substantial $8 billion in lost sales due to the H20 export restrictions. Despite the loss of the China market, Nvidia remains optimistic about the future of its AI infrastructure and the continued global demand for its products. Gross margins are projected to be in the range of 71.8 per cent to 72.0 per cent, with Nvidia targeting mid-70 per cent margins later in the year as it continues to scale its AI offerings. Nvidia is also focused on expanding its global presence. The company recently unveiled plans to build AI factories in the US and Saudi Arabia, as well as launching the Stargate UAE AI infrastructure cluster in Abu Dhabi. The firm has also expanded partnerships with major tech giants such as Oracle, Google, and Microsoft, and its Blackwell cloud instances are now available on AWS, Google Cloud, Microsoft Azure, and Oracle Cloud Infrastructure. While the export restrictions are a significant hurdle for Nvidia, the company remains well-positioned at the forefront of the AI revolution. As countries worldwide increasingly view AI as essential infrastructure, Nvidia’s leadership in AI computing, combined with its expanding global footprint, positions the company for continued success in the coming years. In the meantime, Nvidia continues to focus on delivering innovative products and expanding its partnerships to meet the surging demand for AI chips and infrastructure, with eyes on the future growth of AI technologies across the globe.

Nvidia expects revenue for the second quarter of fiscal 2026 to be around $45 billion, with a substantial $8 billion in lost sales due to the H20 export restrictions.

Data centres drive Nvidia’s $44 billion revenue despite setback from China export restrictions

Telegram's CEO Pavel Durov on Wednesday (May 28) announced that Telegram users would soon have access to Grok AI; however, Elon Musk, whose company owns the chatbot, quickly denied the claim.<h2>Telegram-xAI deal happening or not?</h2>On X, Durov wrote "Together, we win" and claimed that "This summer, Telegram users will gain access to the best AI technology on the market."The Telegram CEO claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps".However, just hours later, Musk called out Durov's claims and, in a reply to the Telegram CEO's post, wrote, "No deal has been signed".<h2>Drama brewing?</h2>While netizens were all geared up for drama, Durov, in an apparent attempt to salvage the situation, acknowledging Musk's statement, claimed that a deal has been “agreed in principle, but formalities are pending”.

<blockquote class="twitter-tweet">True. Agreed in principle, but formalities are pending.&mdash; Pavel Durov (@durov) <a href="https://twitter.com/durov/status/1927848037126140042?ref_src=twsrc%5Etfw">May 28, 2025</a></blockquote> <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>

Durov's trigger-happy post has prompted X users to question, "Why would someone announce a deal before it’s inked on paper?"One user commented, "you should not say things until the ink is dry," while a second user said, "Bro, don’t blow the deal for breaking the news first".Yet another pointed out that "Agreed in principle doesn't mean anything". "I agree in principle with Amazon that deliveries should be fast and on time. It doesn’t mean I’m partners with them. How funny that Elon called you out," they added.<h2>Musk-Durov's $300 million partnership</h2>The much-awaited deal comes with a whopping $300 million price. As per Durov – if the deal goes through – in exchange for implementing Grok AI across its platform, Telegram will receive $300 million in cash and equity, plus 50 per cent of the revenue from xAI subscriptions sold via Telegram.With this deal, xAI would also gain access to Telegram's wide user base of more than one billion – as per Durov's estimates.

On X, Pavel Durov wrote, "Together, we win," and claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps".

Telegram's CEO Pavel Durov on Wednesday (May 28) announced that Telegram users would soon have access to Grok AI; however, Elon Musk, whose company owns the chatbot, quickly denied the claim. Telegram-xAI deal happening or not? On X, Durov wrote "Together, we win" and claimed that "This summer, Telegram users will gain access to the best AI technology on the market." The Telegram CEO claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps". However, just hours later, Musk called out Durov's claims and, in a reply to the Telegram CEO's post, wrote, "No deal has been signed". Drama brewing? While netizens were all geared up for drama, Durov, in an apparent attempt to salvage the situation, acknowledging Musk's statement, claimed that a deal has been “agreed in principle, but formalities are pending”.

On X, Pavel Durov wrote, "Together, we win," and claimed that he and Musk have "agreed to a 1-year partnership to bring xAI's Grok to our billion+ users and integrate it across all Telegram apps".

Pavel Durov claims Grok AI coming to Telegram, Elon Musk denies: $300M deal drama unfolds on X

The growing fiscal deficit in the United States is raising concerns about the long-term stability of global equity markets. Experts warn that the increasing national debt, combined with ongoing trade tensions and tariff uncertainties, poses significant risks to global investor confidence.&nbsp;The recent downgrade of the US credit rating by Moody’s — the first in over a century — has intensified worries about the country's fiscal health and its ability to manage debt sustainably.&nbsp;Moody’s downgrade highlighted the impact of proposed tax policies, which are expected to add trillions to the federal deficit over the next decade.&nbsp;The US currently carries a debt exceeding $36 trillion, and experts suggest that such high levels of indebtedness could undermine economic growth and financial market stability.&nbsp;US debt sparks investor caution&nbsp;This downgrade has led investors to reconsider their exposure to U.S. assets, prompting a shift toward other markets seen as more stable or promising.&nbsp;While the US remains a major economic powerhouse, the uncertainties surrounding fiscal policies and trade negotiations have led to cautious market behaviour. Some investors are moving funds out of US equities and bonds, which has created volatility and affected global markets.&nbsp;Experts also note that India’s economy appears resilient amidst these global shifts, benefiting from stable inflation, a strengthening currency, and favourable oil prices.&nbsp;This has helped India maintain investor interest, even as attention temporarily shifts away due to global trade deal developments.&nbsp;Meanwhile, precious metals like gold are gaining appeal as safe-haven assets in the current climate of fiscal uncertainty. Analysts believe that if the trend of reduced US asset exposure continues, gold’s value may rise further.&nbsp;Overall, the US fiscal deficit and credit rating downgrade are key factors reshaping global investment patterns, pushing investors to diversify and seek safer opportunities beyond traditional US markets.

The recent downgrade of the US credit rating by Moodys has intensified worries about the country fiscal health and its ability to manage debt sustainably.

The growing fiscal deficit in the United States is raising concerns about the long-term stability of global equity markets. Experts warn that the increasing national debt, combined with ongoing trade tensions and tariff uncertainties, poses significant risks to global investor confidence. The recent downgrade of the US credit rating by Moody’s — the first in over a century — has intensified worries about the country's fiscal health and its ability to manage debt sustainably. Moody’s downgrade highlighted the impact of proposed tax policies, which are expected to add trillions to the federal deficit over the next decade. The US currently carries a debt exceeding $36 trillion, and experts suggest that such high levels of indebtedness could undermine economic growth and financial market stability. US debt sparks investor caution This downgrade has led investors to reconsider their exposure to U.S. assets, prompting a shift toward other markets seen as more stable or promising. While the US remains a major economic powerhouse, the uncertainties surrounding fiscal policies and trade negotiations have led to cautious market behaviour. Some investors are moving funds out of US equities and bonds, which has created volatility and affected global markets. Experts also note that India’s economy appears resilient amidst these global shifts, benefiting from stable inflation, a strengthening currency, and favourable oil prices. This has helped India maintain investor interest, even as attention temporarily shifts away due to global trade deal developments. Meanwhile, precious metals like gold are gaining appeal as safe-haven assets in the current climate of fiscal uncertainty. Analysts believe that if the trend of reduced US asset exposure continues, gold’s value may rise further. Overall, the US fiscal deficit and credit rating downgrade are key factors reshaping global investment patterns, pushing investors to diversify and seek safer opportunities beyond traditional US markets.

The recent downgrade of the US credit rating by Moody’s — the first in over a century — has intensified worries about the country's fiscal health and its ability to manage debt sustainably.

US fiscal strains trigger global market shifts and investor caution