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Asia
The Hindu BusinessLine

Govt considering raising CCEA approval threshold for FDI proposals to ₹15,000 cr: Sources

The government is also considering a proposal to ease FDI norms for downstream investments to boost overseas fund inflows and create jobs. The government is considering a proposal to raise the threshold for foreign direct investment proposals requiring approval from the Cabinet Committee on Economic Affairs to ₹15,000 crore from ₹5,000 crore at present to further improve the country's investment climate, according to sources. The Cabinet Committee on Economic Affairs (CCEA) is a high-level committee headed by Prime Minister Narendra Modi. Its members include key Union Cabinet ministers such as the Home Minister and Finance Minister. As per the existing foreign direct investment (FDI) policy, in case of proposals involving total foreign equity inflow of more than ₹5,000 crore, the competent authority places the application for consideration of the CCEA. Below this limit, respective line ministries take a decision. Sources said that prevailing economic conditions, inflation, the growing scale of investments over the years, and the objective of promoting ease of doing business necessitate a review of the existing threshold. Earlier, a committee of secretaries, in its meeting, also suggested upward revision of the CCEA approval limit for FDI proposals requiring the government approval route. The government is also considering a proposal to ease FDI norms for downstream investments to boost overseas fund inflows and create jobs. As per the proposal, the government is considering exempting indirect foreign investment in Indian companies from obtaining its fresh nod where the upstream domestic firm has already received such approval. At present, prior government approval is required for downstream or indirect foreign investment in two cases -- sectors under the government approval route for FDI and investments from countries sharing a land border with India. The government has taken a series of steps to attract overseas inflows. The investments have crossed USD 1.16 trillion during April 2000 and March 2026. The top ten investors include Mauritius, Singapore, the US, the Netherlands, Japan, the UK and the UAE. 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.

Govt considering raising CCEA approval threshold for FDI proposals to ₹15,000 cr: Sources
North America
CNBC Economy

What a divided Fed means for investors

Wall Street has a clear takeaway from this week's Federal Reserve decision: A hike is likely on the horizon as inflation remains a top priority. The Fed opted to hold interest rates steady at the second meeting led by Chairman Kevin Warsh. But between his commentary about inflation and the dissenting coalition of policymakers, investors are growing increasingly confident that the Fed's next move will be an increase. While the hold was widely expected by markets, three policymakers broke with the committee's decision to instead call for higher rates at this week's meeting. That marked the highest number of members pushing for an increase since September 2016, according to Ian Lygen, head of U.S. rates strategy at BMO Capital Markets. Back in 2016, the Fed went on to keep rates unchanged at its next meeting in November with two dissenters. But by December of that year, the committee unanimously voted on a 25-basis-point increase. "We're reading this as a Committee with vocal hawks but the majority is siding with Warsh," Lygen wrote to clients on Wednesday. Fed funds futures trading now suggests a more than 57% likelihood of a quarter-point increase at the September meeting, according to CME's FedWatch tool. About 53% of Kalshi traders predict that the Fed will hike rates, compared with 43% betting on another hold. "For now, it's likely that market pricing for a hike has simply been pushed forward," said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "September remains a live meeting." Stephen Douglass, chief economist at NISA Investment Advisors, said the three members' dissentions could signal the Fed landed on a "hawkish hold." Still, Douglass said he still expected the Fed's next move to be a cut in March of next year. Fed watchers said the central bank will closely analyze upcoming inflation reports as the ongoing energy price shock threatens to push up readings. Warsh said the Fed was focused on getting inflation down to its preferred annual rate of 2% after years of hotter readings. "You've heard this before, but we will deliver price stability," Warsh said on Wednesday. The problem: Getting there likely means policy tightening, according to DoubleLine Capital CEO Jeffrey Gundlach. "If you really want to get to 2%, I think you have to raise interest rates," Gundlach said Wednesday on CNBC's "Closing Bell."

What a divided Fed means for investors
Europe
The Guardian

US economy grows sluggish 1.5% in second quarter as inflation tops Fed target

The US Federal Reserve chair, Kevin Warsh, speaks during a press conference at the Federal Reserve building in Washington DC on Wednesday. Photograph: Shawn Thew/EPAView image in fullscreenThe US Federal Reserve chair, Kevin Warsh, speaks during a press conference at the Federal Reserve building in Washington DC on Wednesday. Photograph: Shawn Thew/EPAUS economyUS economy grows sluggish 1.5% in second quarter as inflation tops Fed targetConsumer spending remained resilient even as policymakers kept interest rates on hold The US economy expanded at a sluggish 1.5% pace from April through June as rising imports weighed on growth. But consumer spending rose. And the Federal Reserve’s favored measure of inflation grew more slowly last month despite remaining above the central bank’s 2% target. The commerce department reported on Thursday that growth in US gross domestic product (GDP) – the nation’s output of goods and services – decelerated from 2.1% in the first three months of 2026 and came in below economists’ expectations. The commerce department also said on Thursday that its personal consumption expenditures (PCE) price index, the measure of inflation favored by the Fed, rose 3.7% last month from June 2025 , down from a 4.1% year-over-year increase in May. Excluding volatile food and energy prices, so-called core consumer prices were up 3.3% from a year earlier, little changed from a 3.4% increase in May. The latest data paints a clearer picture of the effects the war in the Middle East has had on the economy after increasing energy prices and pushing inflation higher. The first GDP reading of this year captured the effects of just a month of war, but indicated that consumer spending was starting to slow as prices started to creep up. Oil prices have come down from their wartime high, and took a sharp downturn when the US and Iran announced a peace deal. But when that deal collapsed and the two countries began trading strikes again, oil prices climbed and still remain much higher than prewar levels. The pressure is growing within the Fed to raise interest rates in order to combat heightened inflation, which Kevin Warsh, the central bank’s chair, has acknowledged has remained too high for years. Though the Fed on Wednesday chose to leave its benchmark interest rate unchanged for the fifth straight meeting, three regional Fed presidents dissented, saying they wanted to raise rates to combat elevated inflation. It was the first time in a decade so many Fed officials had dissented in the same direction over a policy vote. Higher costs have frustrated Americans ahead of November’s midterm elections, which will determine whether Donald Trump’s Republicans keep full control of Congress. Two-thirds of Americans, including 49% of Republicans, say they have little faith the federal government will address the high prices they face, according to a Harris Poll survey released earlier this month. Still, the US economy has proven surprisingly resilient in the face of the Iran war and the spike in energy prices it caused. The job market has bounced back this year from a lackluster 2025, giving consumers the wherewithal to spend. Employers are adding an average 92,000 jobs a month this year, compared with fewer than 10,000 a month in 2025 when high interest rates and Trump’s erratic use of tariffs discouraged businesses from hiring. Thursday’s GDP report was the first of three commerce department estimates of second quarter economic growth.

US economy grows sluggish 1.5% in second quarter as inflation tops Fed target
North America
CNBC Finance

Wealth managers face a new challenger: their clients’ AI chatbots

Even high-net-worth clients who can afford top-notch advisors are asking artificial intelligence chatbots like Claude for portfolio recommendations and tax advice, wealth management leaders told CNBC. "My personal opinion is that ChatGPT is the single largest investment advisor in the world right now," said Matthew Fleissig, CEO and cofounder of Pathstone, a registered investor advisory with $185 billion in assets. Asking AI for a second opinion can help clients come up with informed questions and have deeper conversations with their financial advisors, according to firm leaders. That said, the practice comes with risks, such as getting incorrect advice or having personal information leaked. "I think for a client who's dealing with something that's very technically complex and doesn't have that grasp, it may be harder to differentiate between a hallucination or an error of fact versus a good insight that the engine has," said Michael Zeuner, managing partner at WE Family Offices. Moreover, as these large language models get more sophisticated and popular, wealth advisories – especially those that target the mass affluent — will have to do more to justify their fees, according to Morningstar's Sean Dunlop. He told CNBC that wealth management stocks have already pulled back as AI has encroached on the industry, such as an AI tax planning tool by Altruist released in February or a personal finance feature launched by OpenAI in May. Dunlop said it's unlikely that AI will wipe out traditional wealth managers — but they will do more than help advisors become more efficient. "I think the truth's probably somewhere in the middle where the service level is going to get better. You probably need fewer advisors to serve the pool of assets, which might itself expand a little bit, and there's going to be some group of customers that are willing to do it themselves that weren't before," said Dunlop, director of equity research at Morningstar. "At a minimum, it ought to raise the floor. Like, if you're an advisor and you're keeping half your client's balance in cash in an IRA, then this really ought to be a wake up call," he added. Pamela Lucina of Northern Trust said she first noticed clients using AI to double-check the firm's advice about 18 months ago and that it has become a more frequent occurrence since. "We've had clients tell us directly that they're going to ask AI the questions that they're going to ask us," said Lucina, the firm's chief fiduciary officer and leader of its trust and advisory practice. "I think what they're often testing us for is not the answer, but having more specifics or evidence that we've actually done these things before." Many prospective clients also use LLMs to help them decide whether to work with Northern Trust, she added. Before the rise of AI chatbots, typically only billionaire clients would ask the firm to submit a formal proposal for managing their wealth, according to Lucina. Now she estimates about half of clients send requests for proposals, even those with as little as $100 million in assets. Some have told the firm that they used ChatGPT or other LLMs to formulate their highly specific questions, she said. This process can save time and make client meetings more efficient, Lucina said.

Wealth managers face a new challenger: their clients’ AI chatbots
North America
CNBC Finance

Starbucks stock jumps as coffee giant raises full-year outlook

Starbucks on Wednesday raised its full-year outlook after reporting its fourth straight quarter of same-store sales growth. For fiscal 2026, Starbucks now expects adjusted earnings per share in a range of $2.55 to $2.65, up from its prior outlook of $2.25 to $2.45 per share. It now also projects global same-store sales will rise nearly 6% and U.S. same-store sales will climb more than 6%; the company was previously forecasting global and U.S. same-store sales growth of at least 5%. "This was the quarter our momentum became truly measurable," CEO Brian Niccol said in a video shared with the company's earnings press release. The coffee giant also reported quarterly earnings and revenue that topped analysts' expectations. The coffee giant reported fiscal third-quarter net income attributable to Starbucks of $1.05 billion, or 91 cents per share, up from $558.3 million, or 49 cents per share, a year earlier. The company's operating margins expanded to 13.6%, up from the year-ago period margins of 13.3%, thanks in part to tariff refunds. Starbucks did not say exactly how much it received in refunds. "The refunds we received in Q3 largely offset related tariffs incurred in the first three quarters of fiscal 2026," CFO Cathy Smith said on the company's earnings conference call. Excluding restructuring costs and other items, Starbucks earned 85 cents per share. Net sales dropped 1% to $9.3 billion due to the company's sale of a controlling stake in its China business. In November, Starbucks announced it was forming a joint venture with Boyu Capital, which would take over operations in the coffee chain's second-largest market. Although Starbucks' overall revenue fell, its sales at stores open at least 13 months climbed 7.9%, topping Wall Street estimates of 6%, according to StreetAccount. The coffee chain reported increases in both transactions and average check, showing that customers are returning to its cafes and spending more on their orders.

Starbucks stock jumps as coffee giant raises full-year outlook
Europe
The Guardian

Let them eat SUVs: Trump White House orders fleet of luxury cars as Americans struggle

Donald Trump greets the General Motors CEO, Mary Barra, and president, Mark Reuss, during a visit to the company’s Milford proving grounds in Michigan on Monday. Photograph: Andrew Harnik/Getty ImagesView image in fullscreenDonald Trump greets the General Motors CEO, Mary Barra, and president, Mark Reuss, during a visit to the company’s Milford proving grounds in Michigan on Monday. Photograph: Andrew Harnik/Getty ImagesThis Week in TrumplandUS newsAnalysisLet them eat SUVs: Trump White House orders fleet of luxury cars as Americans struggleAdam GabbattAmericans are facing a deepening affordability crisis but at least Trump and co have ... 250 new Cadillac Escalades This was originally published in This Week in Trumpland. Sign up to receive it in your inbox every Wednesday Gas prices are up almost a dollar a gallon since the day Donald Trump took office; mortgage rates just hit their highest level in nearly a year, and over the weekend a prominent economist said the Iran war is costing the average US household more than $1,200. Americans are struggling through a deepening affordability crisis caused largely by Trump’s ill-fated war against Iran. They are in need of a boost, something to lift the spirits. Perhaps the president could give a speech, letting the people know that we are all in this together. Or, he could give a speech announcing that the White House has just ordered 250 brand new Cadillac Escalades, giant SUVs which have a suggested retail price of more than $90,000 each and cost significantly more to customize for secure uses. “We ordered 250 Escalades. That’s how we look sharp in those cavalcades, you know,” Trump said during a rambling, hour-long address at a General Motors facility in Michigan. “We look sharp in those Escalades. Our guys are very spoiled. They’re very spoiled. They like the Escalade. So do I.” I’d like to think I would look sharp in an Escalade. But, like most people in the US, I cannot afford one: especially if, as seems likely, the White House orders the armored version of the SUV, which can cost more than $300,000. And then, of course, I’d have to fill the 24-gallon gas tank. The symbolism of Trump’s gesture, his fiddling with car specifications while Rome burns, is consistent with his Lucille Bluth-like behavior in recent weeks. He’s dismissed “affordability” as a term concocted by Democratic political consultants to criticize his presidency, introduced a new round of tariffs likely to push up prices, and refused to sign a rare bipartisan housing bill. It’s still shocking. Even Scrooge didn’t order a new horse and cart as Tiny Tim’s health declined. Yet here we are, in 2026, with a billionaire president crowing about spending at least $22m of Americans’ money on a fleet of luxury SUVs, an act which seems extremely unlikely to boost morale. “Hey I know inflation is out of control and a lot of folks can’t afford basic necessities, but at least we’re tackling waste fra ud and abuse by buying… *checks notes* 250 Escalades for the government,” the Angry Staffer account wrote on X, capturing much of the mood. The announcement of the car purchase was a baffling move in what was a confusing speech. Trump’s address in Michigan was supposed to be about US auto manufacturing, but instead his remarks took on transgender rights, “Marxist protesters” and how, should Democrats win control of the government: “In one year, the country will be absolutely bankrupt. You’ll live in squalor. You’ll live in fear. You won’t have police. You won’t have firemen. You won’t have anybody.”

Let them eat SUVs: Trump White House orders fleet of luxury cars as Americans struggle
North America
CNBC Finance

Shein says it's under investigation by the Federal Trade Commission as it prepares for Hong Kong IPO

Shein's U.S. business is under investigation by the Federal Trade Commission, the fast-fashion giant revealed in documents connected to its upcoming Hong Kong initial public offering. In the filing, the Chinese-founded company didn't say what the FTC is investigating, but the disclosure appears to be the first time the probe was made public. "We are actively cooperating with the FTC. … Although it is possible that we may reach a settlement with the FTC in connection with the investigation, we currently cannot predict the probable outcome of the investigation and the timing of such outcome, and we cannot rule out that such outcome could occur in the near term," Shein wrote in the document, filed with the entity that operates the Hong Kong Stock Exchange. "The outcome of the investigation, whether in settlement or otherwise, may require us to make significant monetary payments that could have a material adverse effect on our financial condition and results of operations," the company added. The FTC declined to comment. Shein didn't return a request for comment from CNBC seeking additional information. The FTC is the U.S.' leading consumer protection agency with a mission to stop "deceptive or unfair business practices." It has previously investigated companies for things like suppressing bad reviews, hidden fees or misleading prices, shipping and refund practices, and issues related to privacy and data, among many other issues. One of the FTC's areas of focus is "dark patterns," which it describes as "design tricks and psychological tactics, such as pre-checked boxes, hard-to-find-and read disclosures, and confusing cancellation policies" to make consumers more willing to give up their money or data. Shein is known to offer countdown timers, gamified discounts and flash sales, among other tactics, on its app to create a sense of urgency and get consumers to spend. In a 2022 report explaining dark practices, the FTC referenced countdown timers in general as one example of a common dark pattern. Shein, which rose to global prominence after the Covid-19 pandemic, previously tried to go public in the U.S., but turned its ambitions to London and ultimately Hong Kong after facing extreme political pushback over its business practices. Its listing in Hong Kong was recently approved, but it's unclear when it will start trading. Get this delivered to your inbox, and more info about our products and services.

Shein says it's under investigation by the Federal Trade Commission as it prepares for Hong Kong IPO
Europe
BBC Business

Shell profits double as oil prices rise due to Iran war

Image source, Getty ImagesByJennifer Meierhans and Shanaz Musafer, Business reportersPublished30 July 2026, 08:00 BSTUpdated 2 hours agoShell's profits for the second quarter of the year have more than doubled after the Iran war pushed up oil prices. The oil giant posted profits of $9.84bn (£7.37bn) for the April-to-June period, up from $4.26bn at the same point last year. The price of crude has risen since the outbreak of the US-Israel war with Iran due to major disruption to global supplies of oil and liquefied natural gas (LNG) through the Strait of Hormuz. But energy prices have also seen sharp swings during the conflict, which has boosted Shell's trading business. Shell chief executive Wael Sawan said the company's "operational performance enabled very strong results during another quarter of severe disruption in global energy markets". Together with its profits of $6.92bn for the first three months of the year it means Shell has seen a 70% surge in first-half earnings. Shell and other energy giants such as BP and Norway's Equinor have seen bumper profits this year, partly down to trading on oil price swings. Before the conflict began, the price of Brent crude, the global benchmark for oil prices, was around $73 a barrel. Since then, it has peaked above $120 but also fallen back below $100 as speculation has swirled over when the Strait of Hormuz will reopen. These big movements in the oil price can widen the gap between buying and selling prices which typically enables traders to make bigger profits. However, the conflict in the Middle East has also affected some of Shell's operations. Its LNG production in Qatar has been shut down since early March because of the conflict, and its Pearl gas-to-liquids facility in Qatar suffered "extensive damage" when it was hit by a missile attack in March. The company has said repairs could take about a year.

Shell profits double as oil prices rise due to Iran war
Europe
The Guardian

US borrowing costs hit 19-year high as Fed holds interest rates

Kevin Warsh said the Federal Reserve would not waver in its commitment to tackling rising prices. Photograph: Mark Schiefelbein/APView image in fullscreenKevin Warsh said the Federal Reserve would not waver in its commitment to tackling rising prices. Photograph: Mark Schiefelbein/APUS interest ratesUS borrowing costs hit 19-year high as Fed holds interest ratesBank’s chair pledges to keep up fight against inflation but decision brings fears of a failure to keep pace US government borrowing costs have hit their highest level since 2007 after the Federal Reserve voted to hold its key interest rate steady, feeding fears that the central bank may not move fast enough to tame a rise in inflation. The yield – or interest rate – on the 30-year US Treasury bond rose 14 basis points to nearly 5.24%, a 19-year high, after the Fed announced its decision to hold its main rate at between 3.5% and 3.75% for the fifth meeting in a row. Kevin Warsh, the Fed chair, said the bank would “not waver” in its commitment to tackling rising prices. A prolonged period of high inflation meant that some Americans believed the central bank had an “implicit target” above its 2% target, he added. “There is no soft implicit target: not on this committee’s watch,” Warsh said. “There’s only a target and it’s 2%. This Fed will not waver … Our credibility rests on performing our duties and delivering on our responsibilities.” The decision to leave rates on hold has spooked investors who are worried about the US economy’s ability to absorb a rise inflation, triggered by Donald Trump’s war in Iran. US inflation cooled to an annual rate of 3.5% in June after Washington and Tehran agreed a brief ceasefire – but this has since ended, with both sides exchanging fire and sending oil prices climbing higher again. Felix Schmidt, a senior economist at the bank Berenberg, said Warsh had not “conclusively answered the question of why the Fed did not hike”. He noted that the Fed chair had implied at a press conference that an interest rate rise in the near term might not be necessary due to the rise in bond yields, which has already pushed up the cost of borrowing across the US economy. “Perhaps Warsh hopes that higher capital market interest rates will help fight inflation in the short term, while the US central bank under new leadership decides on its approach,” Schmidt said. Before the Fed’s meeting this week, financial markets had priced in a 30% chance of a rate rise and, in the absence of such a move, nearly a 100% chance of an increase at the Fed’s September meeting. After Wednesday, however, traders put the chance of a rate rise in September at about 57%, according to CME Group’s FedWatch tool.

US borrowing costs hit 19-year high as Fed holds interest rates