Latest Developments

Asia
The Hindu BusinessLine

US bond turmoil signals rising global macro pressures

The pain of bond investors in recent years is captured by the TLT ETF, which invests in government bonds maturing in 20 years or later. James Carville, lead strategist for former US President Bill Clinton, famously remarked that if reincarnation exists, he would want to come back as the bond market because it can intimidate everybody. History provides ample evidence of this power. Past spikes in bond yields have triggered the bursting of asset bubbles and even ousted world leaders, as seen with former UK Prime Minister Liz Truss. Hence, it would be a mistake to view last week’s efforts by US Treasury Secretary Scott Bessent to calm the US government bond market — the world’s most liquid market — as routine. Coinciding with a surge in US’ long-term bond yields, with the 30-year yield hitting 5.3 per cent on Monday, its highest since June 2007, or in nearly 19 years, the US Treasury made a surprise announcement last Wednesday on intervention in the bond market. In what some bond market veterans viewed as a sign of panic, it said that, starting September 9, it double its buybacks of 10-20-year and 20-30-year government bonds to provide liquidity support. According to experts, to fund the buyback, the Treasury is likely to issue new shorter tenor bonds, and total debt will remain unchanged. The numbers appear small relative to the size of the market, but the signalling effect was supposed to be strong. The subsequent bond market reaction, however, indicates an emerging challenge that investors need to watch — macro pressures are building as bond investors express concern over inflation, government debt, and probably waning effectiveness of policy signals. The 10-year and 30-year bonds which began the week at yields of 4.69 per cent and 5.26 per cent, respectively, initially reacted positively to the Treasury’s move by falling to 4.65 per cent and 5.19 per cent by Wednesday. They subsequently reversed course, ending the week at 4.73 per cent and 5.27 per cent — higher than their starting levels. Gold gained 5.2 per cent during the week as investors sought alternatives to the US dollar and a hedge against inflation (see charts). The pain of bond investors in recent years is captured by the TLT ETF, which invests in government bonds maturing in 20 years or later (see chart). The ever-expanding US national debt, meanwhile, hit the $40-trillion milestone on Tuesday — just a trillion dollars away from the Congress-set debt ceiling. The federal budget deficit remains elevated at around 6 per cent of GDP, even as the economy continues to show strength (see chart). Bessent may have downplayed the market intervention as merely a measure to bolster liquidity. But against this backdrop, the bond market’s U-turn last week points to a growing trust deficit in the signalling power of government agencies. Experts view the Treasury’s initiative as a band-aid for a structural problem and as ‘buying time’ ahead of the mid-term elections. According to Peter Boockvar, CIO at OnePoint BFG Wealth Partners, the buybacks also tie the Fed’s hands on interest rates. Raising policy rates to contain inflation could make short-term treasuries cost more — the very ones that the Treasury plans to issue more of to buyback longer dated bonds. On the other hand, if the Fed stands by as prices continue to rise, the long-dated bond yields could go up again and even more as inflation expectations get unanchored. To top it all, the move by the US Treasury is at odds with what Fed Chair Kevin Warsh has been advocating — letting economic data determine bond prices, reducing the market’s reliance on central bank guidance, and ending policies that artificially subsidise government deficits. Market’s paranoia is not without reason. President Trump campaigned on reducing debt and deficit. He set up the Department of Government Efficiency (DOGE) under Elon Musk for that objective. He even advocated increasing crude oil production to help lower energy costs. A year and a half into his term, however, national debt has risen by about $4 trillion, budget deficits show little sign of meaningful fiscal consolidation, and oil prices are higher. This comes as the US Fed has failed to bring inflation back to its 2 per cent target for 64 consecutive months. Jeffrey Gundlach, the DoubleLine Capital CEO often referred to as the ‘Bond King’ recently stated that the US national debt “is no longer your grandchildren’s problem. It is our problem.” Given that bond yields have been spiking not just in the US but also across other heavily indebted developed economies (see chart), there is a growing case that the ample global liquidity that powered equity markets since the global financial crisis may be a thing of the past.

US bond turmoil signals rising global macro pressures
Asia
The Hindu BusinessLine

What should investors do about SBI after Q1 FY27 results?

We had recommended investors to buy the stock of India’s largest bank, State Bank of India (SBI), when the stock was trading at ₹805 last August. Since then, the stock has given returns of about 30 per cent. Compared with Q1 FY26 (latest quarter when we gave our last call), business has gathered momentum from the second half of FY26, and the net interest margin (NIM) is expected to be stable going forward, now that the bank has largely gone through a full cycle of interest rate transmission. The stock now trades at a price-to-book value multiple of 1.6x on a consolidated basis. Based on our sum-of-the-parts (SOTP) valuation, which uses trailing metrics, there is not a lot of hidden value to be discovered. However, stock appreciation can follow book value accretion which in turn chiefly depends on earnings growth. With the management guiding for a credit growth of 14-15 per cent, NIM of 3 per cent and an RoA (return on assets) of 1 per cent for FY27, in our view, the 1.5x multiple assigned to the standalone banking business seems justified. Hence, investors holding the stock can continue to do so. Retail, agri, SME, corporate and overseas advances make 35, 9, 13, 28 and 15 per cent of SBI’s loan book respectively. Back in Q1 FY26, SBI’s loan book grew at an ordinary 11.6 per cent, broadly in alignment with the slowing system level growth of 9.5 per cent. Within the loan book, corporate advances were a laggard which grew a mere 5.7 per cent. However, with GST rate rationalisation, tables turned in the second half of FY26. Credit demand picked up and SBI posted a loan growth of 16.9 per cent for FY26. The momentum continued in Q1 FY27 as well, with a credit growth of 18.6 per cent (on a low base of Q1 FY26) and deposits growing by 9.7 per cent. Both the loan book and deposit book reached respective milestones of ₹50 lakh crore and ₹60 lakh crore. Though deposit growth trailed loan growth, SBI’s surplus SLR (statutory liquidity ratio) reserves of about ₹4 lakh crore (as of Q1 FY27) enable higher credit growth. Corporate advances growth recovered to 14.8 per cent in FY26 and 18 per cent in Q1 FY27. In the latter half of FY26, the bank had started offering corporate loans whose interest rates were based on T-bill yields rather than the typical MCLR-based (marginal cost of lending rate – based on the bank’s cost of funds) loans. These found traction with corporates who had moved on to the bond market from banks to take advantage of better yields there. However, as the move proved unfavourable, the bank has now fallen back to negotiating such loans disbursed, back to being priced on MCLR basis. This meant the corporate book remained flat as of Q1 FY27 vs Q4 FY26, as some corporates have moved on to alternatives. Management has indicated that in most cases, the renegotiation has been completed while for the rest, it is work in progress. When this is done, it could improve margin. For growth though, the bank is upbeat about good corporate credit demand particularly in segments such as data centres, energy storage and M&A deals. It has a sanction pipeline of ₹9 lakh crore. Investors need to watch this segment, going ahead. SBI’s personal loan product (7.4 per cent of loan book) was another laggard that we had pointed out in our last call. It had remained flat in Q1 FY26 as it had in FY25. However, it has found traction now, growing 7.4 per cent in FY26 and 8.3 per cent in Q1 FY26. SBI plans to set up a 6,000-strong ‘feet on the street’ collection mechanism to expand the product beyond its largely salaried customer base to target self-employed individuals and professionals. SBI’s standalone net profit grew 12.9 per cent in FY26 to a record high of ₹80,032 crore. Profit before tax excluding the Yes Bank stake sale grew 5.9 per cent. Cost-to-income ratio improved to 50.1 per cent for FY26 versus 51.6 per cent for FY25. However, as the bank transmitted multiple rate cuts to borrowers and depositors, NIM (for domestic business; domestic business accounts for 85 per cent of gross advances) declined to 3 per cent for FY26 from 3.2 per cent for FY25 — primarily the cause for modest profit growth. Standalone RoE and RoA came in at a strong 18.6 per cent and 1.1 per cent respectively for FY26. Consolidated earnings grew 7.4 per cent. In Q1 FY27, NIM remained stable at 3 per cent and the standalone bank reported a profit growth of 10.2 per cent. Annualised RoE and RoA stood at 17.8 per cent and 1.1 per cent. Consolidated earnings grew 13.7 per cent. Asset quality is at the best level in two decades. Gross NPA and net NPA ratios are at 1.47 per cent and 0.38 per cent, respectively. Credit cost and slippage ratio at 0.27 per cent (0.37 per cent in FY26) and 0.57 per cent (0.54 per cent in FY26) do not indicate asset quality pressures. The bank also has ₹29,713 crore of standard asset provisions (as of FY26) amounting to 0.6 per cent of gross advances, as a buffer. Liquidity coverage ratio (amount of highly liquid assets maintained to meet cash outflows during a 30-day stress scenario) is adequate at 126 per cent and capital adequacy ratio stands at a healthy 15.6 per cent, boosted by the recent ₹25,000-crore QIP, the Yes Bank stake sale and the SBI Funds Management IPO. Management has guided for a credit growth of 14-15 per cent for FY27, slightly up from 13-15 per cent as guided at the end of FY26. NIM and RoA (standalone) are expected to be maintained at 3 per cent and 1 per cent respectively, for the current fiscal. Credit cost is likely to be at 0.5 per cent. Management is expected to give an outlook on the impact of the upcoming (from FY28) expected credit loss framework for recognising bad loan provisions in the earnings call for Q2 FY27. This should be a key monitorable for investors. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

What should investors do about SBI after Q1 FY27 results?
Asia
The Hindu BusinessLine

NRIs yearn for higher returns: Banks mop up $65.397 billion in just 75 days via FCNR-B deposits

Non-Resident Indians (NRIs) don’t want to let go of the opportunity to earn higher returns of about 6.00 to 7.50 per cent from Foreign Currency Non-Resident (Bank) deposits of 3-5 years duration, going by RBI’s latest forex inflow data. This is underscored by the fact that they parked a whopping $65.397 billion in just 75 days (from June 8, 2026 to August 21, 2026) in these deposits. And the inflows are gathering pace as the RBI has cut short the deadline to offer concessional swap facility for fresh FCNR-B deposits mobilised by banks by a month to August 31, 2026. These inflows are also being aided, to an extent, by leverage being provided by banks to their NRI customers. The proceeds of the leverage are, in turn, being parked with the Banks. Banks have raised $4.860 billion via the Overseas Foreign Currency Borrowing (OFCB) route in the June 8, 2026 to August 21, 2026 period. With just nine days remaining for the aforementioned facility, which is being provided by RBI to encourage banks to mop up fresh FCNR-B deposits so that the resulting inflows can address the volatility in the Rupee, to end, market experts expect the inflows to touch about $80 billion under via this route. And the latest RBI data bears this out -- Banks mobilised $13.097 billion in the eight days ending August 21st against $15.575 billion in the preceding 13 days (between August 1 to August 13, 2026). Saumya Kanti Ghosh, Group Chief Economic Advisor, SBI, noted that while there may be valid reasons to justify an early closure, the most likely reason could be that the target for FCNR (B) mobilization has already been achieved. He assessed that the total collections under the FCNR-B deposit route could be around $85 billion. Further, the balance of payments will be in surplus of around $50 billion with the Current Account Deficit at 1 per cent of GDP. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

NRIs yearn for higher returns: Banks mop up $65.397 billion in just 75 days via FCNR-B deposits
Asia
The Economic Times

15 penny stocks crash up to 50% in 3 months: Are you holding any?

Over the past three months, 15 penny stocks have witnessed sharp corrections, with declines ranging from 25% to 50%. These underperformers were identified through a screen focusing on stocks with a market capitalisation below Rs 1,000 crore, a share price under Rs 20, and a minimum recent trading volume of 5 lakh shares. The screen highlights low-priced, relatively liquid penny stocks that have come under significant selling pressure during this period. (Data Source: ACE Equity)Although penny stocks often attract investors with their low entry prices and potential for rapid gains, they come with substantial risks. Due to low liquidity, high volatility, and limited transparency, they are prone to manipulation and sudden price drops. Without a clear strategy and strong risk controls, investors may face more losses than gains. 3-Month Performance: -27% | Previous Close: Rs 3.28(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

15 penny stocks crash up to 50% in 3 months: Are you holding any?
Asia
The Economic Times

Mutual fund NFOs: 6 new funds to open for subscription this week; ICICI Prudential MF to launch 3 life cycle funds​

Around six new funds will open for subscription this week (August 24 to August 28). Fund houses launch new funds to complete their bouquet of existing offerings. Here is a detailed breakup, according to ACE MF. HDFC Gold Silver Passive FoF will open for subscription on August 24 and will close on September 7. The minimum investment amount will be Rs 100. ICICI Prudential Dynamic Asset Allocation Passive FoF will open for subscription on August 26 and will close on September 9. The minimum investment amount will be Rs 1,000. The Wealth Company Multi Cap Fund will open for subscription on August 27 and will close on September 10. The minimum investment amount will be Rs 1,000.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

Mutual fund NFOs: 6 new funds to open for subscription this week; ICICI Prudential MF to launch 3 life cycle funds​
Europe
BBC Business

Trump sued over Truth Social's $100,000 early access service

Donald Trump is being sued by two US media groups over a new Truth Social service that charges up to $100,000 a month for early access to his posts. The lawsuit was filed on Wednesday in New York federal court by The Intercept and Freedom of the Press Foundation. The suit argues that selling priority access to the president's messages raises serious concerns, external, describing it as "extraordinary, corrupt and unconstitutional". Trump Media & Technology Group (TMTG) said the lawsuit was brought by "left-wing activists" seeking to censor the president. The BBC has approached the White House for comment. TMTG has previously dismissed concerns about the paid service. The paid Truth Social service offers subscribers near-instant delivery of Trump's posts, arriving seconds before they appear for the general public. The plaintiffs say those moments matter because Trump often uses the platform to announce major developments, such as during the Iran war, that can move financial markets. They argue the setup gives an unfair advantage to those who can afford it, creating a system where market-sensitive information reaches paying clients first. More than 10 firms now pay up to $100,000 a month for fast access to Truth Social posts. Trump Media and Technology Group has said the product is aimed at businesses seeking faster data feeds and has dismissed concerns about how the information is used. The company unveiled the service, called Truth API, in mid-July and said it would deliver posts from Trump and other high-profile accounts in milliseconds. Trump is the most followed person on the platform, with about 13 million followers, ahead of his eldest son Donald Trump Jr., who has around 7.5 million. Seth Stern, chief of advocacy at the Freedom of the Press Foundation's, said Trump selling priority access to news he generates, for the benefit of a private company he controls, is "so blatantly corrupt and unconstitutional that it would have been hard to even fathom just a few years ago".

Trump sued over Truth Social's $100,000 early access service
Asia
The Hindu BusinessLine

Canada-India education ties entering a new era

For decades, education has been one of the strongest pillars of the Canada–India relationship. Every year, thousands of Indian students have chosen Canada for its world-class institutions, diverse society and welcoming environment. Today, nearly 400,000 Indian students are pursuing their education in Canada, a number that is greater than that in the UK and Australia combined. That story remains an important part of our bilateral partnership. But a new chapter is beginning. Earlier this year, a delegation from Universities Canada (UC) and from Colleges and Institutes Canada (CICAN) joined Canadian Prime Minister Mark Carney on his visit to India, representing 300 public universities and colleges. UC and CICAN launched the Canada–India Talent and Innovation Strategy. More than a new initiative, it signals a significant shift in how our two countries think about educational cooperation—from a model centred primarily on student mobility to one focused on long-term collaboration in talent development, skills training, research and innovation. This evolution reflects changing priorities in both countries. India’s ambition to become a developed nation under its Viksit Bharat 2047 vision is driving unprecedented investment in skills, technology and innovation. As the world’s largest youth population enters the workforce, India is increasingly focused on building domestic capabilities, strengthening research ecosystems and developing future-ready talent in areas such as artificial intelligence, clean energy, advanced manufacturing and healthcare. Canada is uniquely positioned to contribute to these goals. Our universities conduct approximately $19 billion in research annually and account for more than one-third of Canada’s total research activity. Canadian universities are globally recognized for their research excellence and are at the forefront of innovation in fields such as artificial intelligence, machine learning, health sciences, and advanced technologies. Equally important is Canada’s internationally recognized system of colleges and polytechnics, which are renowned for aligning education with industry needs. They are known for applied learning, industry partnerships, rapid curriculum adaptation and workforce-focused training models that respond to emerging economic needs. Because of this approach, over 90 per cent of graduates get work in their chosen field. For example, last year, Red River College Polytechnic launched Labs4, a national commercialization network linking 38 Canadian post-secondary institutions with businesses and entrepreneurs. Through prototype development, technology validation, mentorship, and industry collaboration, the initiative helps researchers translate academic discoveries into market-ready products and services. These strengths complement India’s aspirations to become a global hub for innovation and skilled talent. The opportunity before us is not simply to educate more students, but to deepen institutional partnerships that create value for both countries. By combining Canadian expertise in research, commercialisation and applied learning, with India’s scale, talent pool and growing innovation ecosystem, we can develop solutions to shared economic and technological challenges. In fact, this transition is already underway. Several leading Canadian institutions are deepening their engagement in India. McGill University, in partnership with the Jubilant Bhartia Group, is establishing a Centre of Excellence in AI Education and Research. The University of Toronto is working with the Indian Institute of Science to develop a Centre of Excellence focused on AI-powered predictive healthcare. The University of British Columbia’s permanent South Asia Hub is expanding transnational education and research collaborations across the region, while Dalhousie University is partnering with IIT Tirupati and IISER Tirupati to create a Tri-Institutional Global Innovation Campus. Mphasis, an Indian company has partnered with the University of Calgary and the Government of Alberta to launch Canada’s first Quantum City in Calgary. These partnerships go far beyond traditional exchange programs. They bring together researchers, industry leaders, entrepreneurs and students to generate new knowledge, accelerate innovation and prepare the next generation of highly skilled talent. Momentum is growing elsewhere as well. More than 20 agreements have been signed this year between Canadian and Indian universities, research institutes and industry partners. They cover artificial intelligence, clean energy, critical minerals, agriculture and health. Programs such as the AICTE-Mitacs Globalink initiative, which supports Indian undergraduate students undertaking research placements in Canada, are helping build the connections and experience that future innovation partnerships require. Since 2018, Mitacs has supported more than 4,000 applied research projects connecting Indian and Canadian institutions. Canada has also invested in the next generation of Canada-India academic partnerships by dedicating more than 85 Indo-Pacific scholarships for Canadian graduate students and researchers to study in India and collaborate with leading Indian academics. At the same time, both countries stand to benefit from closer alignment between education and workforce development. Canada continues to face labour shortages in sectors such as healthcare, skilled trades and advanced manufacturing. India, meanwhile, is working to realize its ambition of becoming the “Skill Capital of the World.” Structured talent pathways can help advance both objectives. Canadian institutions can work with Indian partners to deliver training aligned with Canadian standards, complemented by advanced study or workplace-based finishing programs in Canada that directly respond to employer demand. Other supportive mechanisms could be expanding mutual recognition frameworks, strengthening credit transfer arrangements and aligning vocational standards to create smoother pathways for talent mobility while maintaining quality and professional standards.

Canada-India education ties entering a new era
Asia
The Hindu BusinessLine

FSSAI issued 150 notices to food companies in recent months over misleading advertisements

Food regulator FSSAI on Saturday informed that it has issued 150 notices to food companies, including major brands Nestle India, PepsiCo and Coca-Cola India, in recent months over misleading advertisements, false claims and non-compliance with labelling regulations. In a social media post, the Food Safety and Standards Authority of India (FSSAI) shared an update on its enforcement action taken against major brands in recent months. "Over 150 notices issued for misleading advertisements, false claims & labelling non-compliances," the FSSAI said. The regulator shared the list of a few major brands against whom action has been taken. In the past few months, the FSSAI said it has taken action against various food business operators (FBOs) for serious violations of its laws and regulations. Elaborating on its recent actions, the FSSAI said it has seized products of many companies due to violations. As many as 12 notices have been sent to e-commerce companies Amazon and Flipkart. The FSSAI said more than 30 notices have been issued to food service establishments like KFC, McDonald's, Pizza Hut, Domino's and Costa Coffee. Earlier this week, the FSSAI said many companies have started taking corrective actions, following notices issued by it against these companies. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

FSSAI issued 150 notices to food companies in recent months over misleading advertisements
Europe
The Guardian

Trump sued over $100,000-a-month early-access offer to Truth Social posts

Donald Trump has a history of using Truth Social to disclose market-sensitive news. Photograph: Jim Watson/AFP/Getty ImagesView image in fullscreenDonald Trump has a history of using Truth Social to disclose market-sensitive news. Photograph: Jim Watson/AFP/Getty ImagesDonald TrumpTrump sued over $100,000-a-month early-access offer to Truth Social postsSuit alleges subscription offer aims to sell privileged access to information generated in president’s official capacity Donald Trump has been sued after a subscription service charging up to $100,000 a month for early access to his posts on his Truth Social platform sparked allegations of corruption. The lawsuit, filed in the US district court for the southern district of New York, was brought by the Intercept and the Freedom of the Press Foundation against Trump, two of his aides and the executive office of the president. It targets “Truth API”, a paid data feed launched on 1 August by the Trump Media & Technology Group, the company behind Truth Social. The complaint calls the arrangement “extraordinary, corrupt and unconstitutional”. The service gives paying subscribers faster access than the general public to posts from 10 of the platform’s highest-profile accounts, including Trump’s own account, as well as those of the vice-president, JD Vance; press secretary, Karoline Leavitt; and other senior officials. Subscribers pay $100,000 a month, or $60,000 a month for a three-year commitment. The White House and Trump Media did not immediately respond to requests for comment on the lawsuit. Trump has a history of using Truth Social to disclose market-sensitive news, including posts on tariffs and the war on Iran, which have triggered swings in stock and oil prices. Trump Media’s interim chief executive, Kevin McGurn, has even promoted the service as a way to give businesses fast access to the platform’s “most market-moving” posts. He has described it as a “high-margin” product meant to provide a “meaningful, ongoing source of revenue”. The launch followed criticism from the Democratic senators Adam Schiff and Elizabeth Warren, who had urged the Securities and Exchange Commission to examine whether the service amounted to market manipulation benefiting insiders at ordinary investors’ expense. According to the complaint, Trump Media disclosed on 10 August that it already had more than 10 subscribers, reportedly including financial news outlets and high-frequency trading firms, and was exploring licensing the data to prediction markets while working to block third-party tools that let outside groups scrape and archive Trump’s posts. The plaintiffs argue that the president, who remains Trump Media’s largest shareholder, with a stake worth roughly $1bn, stands to personally profit from selling privileged access to information generated in his official capacity. The suit also raises concerns about the historical record. Truth API subscribers get access to an archive of posts stretching back to 2022, including ones later deleted or altered, while McGurn has said the company intends “to create a lot of friction for those folks that aren’t coming to us directly”. The plaintiffs are asking the court to declare the arrangement unlawful and to bar the administration from relying on Truth Social as the exclusive venue for official announcements while it sells preferential access to that information.

Trump sued over $100,000-a-month early-access offer to Truth Social posts