India braces for further US tariffs over trade ties with Russia
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8 minutes ago
- CNA
India's Infosys narrows annual forecast helped by banking and financial unit strength
BENGALURU :India's Infosys narrowed its full-year forecast on Wednesday after reporting stronger-than-expected revenue for the first quarter, driven by growth in its financial services segment. The Bengaluru-based software services company narrowed its annual revenue growth forecast to 1 per cent–3 per cent from a prior range of flat to 3 per cent- in line with analyst expectations for a lift in the lower end. Consolidated sales rose 7.5 per cent year-on-year to 422.79 billion rupees ($4.89 billion) in the June quarter, while analysts, on average, expected revenue of 418.06 billion rupees, as per data compiled by LSEG. Revenue from Infosys' banking and financial services segment rose for the fifth consecutive quarter, helped by marquee deal wins including Bank of Sydney, Metro Bank, and U.K.-based AIB. Net profit rose 8.7 per cent in three-month period to 69.21 billion rupees. Analyst had expected 67.55 billion rupees, as per data compiled by LSEG. Analysts have said that U.S. President Donald Trump easing some tariff restrictions, along with global interest rate cuts by central banks, could boost India's $283-billion IT industry, where the banking and financial services segment contributes about a third of total revenue. Net new bookings rose $3.8 billion during the quarter, compared with $2.6 billion in the previous quarter and $4.1 billion in the year-ago period. Infosys also retained its operating margin forecast at 20-22 per cent for FY26. Earlier this month, bellwether Tata Consultancy Services missed revenue estimates and flagged delays in decision making and project starts. Smaller rivals and Tech Mahindra fared better than large caps on account of higher deal wins and better margin. Shares listed in Mumbai closed 0.8 per cent higher ahead of the results.
CNA
8 minutes ago
- CNA
Explainer-What is tokenization and is it crypto's next big thing?
NEW YORK :Tokenization has long been a buzzword for crypto enthusiasts, who have been arguing for years that blockchain-based assets will change the underlying infrastructure of financial markets. The technology is seen as rapidly increasing in coming years, especially in the U.S., helped by the passage of three new bills. President Donald Trump's administration has eased regulation of the broader crypto industry, paving the way for a boom in the valuation of companies in the sector and the rapid growth of crypto-related securities. However, the growth of the market for tokenized assets has been far slower than expected in recent years, with many projects still in their infancy or not yet live. The term "tokenization" is used in a variety of ways. But it generally refers to the process of turning financial assets - such as bank deposits, stocks, bonds, funds and even real estate - into crypto assets. This means creating a record on digital ledger blockchain that represents the original asset. These blockchain-based assets, or "tokens", can be held in crypto wallets and traded on blockchain, just like cryptocurrencies. WHERE DO STABLECOINS COME IN? Stablecoins can be seen as an example of tokenization. They are a type of cryptocurrency designed to maintain a constant value by being pegged to a real-world currency, typically the U.S. dollar. The issuer holds one U.S. dollar in reserve for every dollar-pegged crypto token it creates. Stablecoins are blockchain-based tokens acting as a proxy for an asset that already exists outside the blockchain. They allow people to move money across borders without interacting with the banking system. While critics say that this makes them useful for criminals who want to avoid banks' anti-money laundering checks, stablecoin issuers say that they are a lifeline for people in countries without a developed payments system. ARE TOKENIZED ASSETS TAKING OFF? Yes and no. Stablecoins have grown in recent years, with the market estimated to be worth about $256 billion, according to crypto data provider CoinMarketCap, and expected to touch $2 trillion by 2028, according to Standard Chartered. But banks have talked for years about creating tokenized versions of other types of assets, which they say will make trading more efficient, faster and cheaper, and those "tokens" have struggled to gain traction. While there have been individual issuances, there is not a liquid secondary market for these kinds of assets. One impediment to trading traditional assets via blockchain is that banks are working on their own private networks, making it difficult to trade across platforms. WHAT ARE THE PROS OF TOKENIZATION? Some proponents of the crypto industry have said tokenization can improve liquidity in the financial system. Illiquid assets like real estate could be traded more easily if they are broken up into small digital tokens. It is also expected to improve access to asset classes that are typically out of reach of smaller investors by creating a cheaper entry point. WHICH COMPANIES ARE INTERESTED IN TOKENIZATION? Some major global banks, including Bank of America and Citi have said they could explore launching tokenized assets, including stablecoins. Asset manager BlackRock is also doubling down on the tokenization boom, and has highlighted its ambition of becoming the largest cryptocurrency manager in the world by 2030. Coinbase, the largest U.S. crypto exchange, is seeking permission from the SEC to offer "tokenized equities" to its customers. HOW DOES NEW REGULATION HELP TOKENIZATION? Since stablecoins themselves are tokens and seen as one of the biggest drivers of the growth of tokenization, the new stablecoin law will end up boosting the proliferation of tokenization, experts say. The new market structure bill, known as the Clarity Act, is expected to establish a clear framework that could enable stablecoins and other crypto tokens to become more widely used. WHAT ARE THE RISKS? Some analysts say the hype around tokenization might be premature and caution that the rapidly growing crypto ecosystem could experience near-term turbulence due to the potential risks of a big decline in prices. European Central Bank President Christine Lagarde has warned stablecoins pose risks for monetary policy and financial stability. Some critics of the industry warn the frenzy around the new technology could introduce new systemic risks, especially in the absence of stringent regulation. They also say there is no reason why blockchain should be any more efficient than the electronic ledgers and trading systems already used in financial markets. Buyers of third-party tokens, which are issued by unaffiliated third parties - such as crypto exchange Kraken - that have custody of securities, could be exposed to counterparty risks, and regulators are sounding notes of caution. Earlier in July, Hester Peirce, a commissioner at the U.S. Securities and Exchange Commission who has frequently spoken positively about cryptocurrency, said tokenized securities would not be able to circumvent existing securities laws. More than half of the world's U.S. dollar stablecoins are issued by a single company, Tether, which says it manages $160 billion in reserves, but has not undergone a financial audit.
CNA
8 minutes ago
- CNA
Russia and Ukraine to hold first peace talks in seven weeks
MOSCOW: Russian negotiators flew to Türkiye to hold peace talks with Ukraine on Wednesday (Jul 23), the Kremlin said, before what will be the first direct discussions between the warring sides in more than seven weeks. Russia played down expectations of any breakthrough at the meeting, which Ukrainian President Volodymyr Zelenskyy said this week should focus in part on preparing a summit between himself and President Vladimir Putin. "Naturally, no one expects an easy road. Naturally, this will be a very difficult conversation. The projects (of the two sides) are diametrically opposed," Kremlin spokesman Dmitry Peskov told reporters. Previous talks in Istanbul on May 16 and Jun 2 led to the exchange of thousands of prisoners of war and the remains of dead soldiers. But those meetings lasted less than three hours in total and made no breakthrough towards a ceasefire or a settlement to end almost three and a half years of war. United States President Donald Trump last week threatened heavy new sanctions on Russia and countries that buy its exports unless a peace deal was reached within 50 days. But three sources close to the Kremlin told Reuters that Putin, unfazed by Trump's ultimatum, would keep on fighting in Ukraine until the West engaged on his terms for peace, and that his territorial demands may widen as Russian forces advance. On Wednesday, Russia said its forces had captured the settlement of Varachyne in Ukraine's Sumy region, where Putin has ordered his troops to create a buffer zone after Ukraine mounted a shock incursion into Russia last year and held onto a chunk of its territory for months. Reuters could not independently confirm the battlefield report. In recent weeks, Russian forces have launched some of their heaviest air attacks of the war, focusing especially on the Ukrainian capital Kyiv. Ukraine has hit back with attacks of its own, and last month inflicted serious damage on Russia's nuclear-capable strategic bomber fleet by smuggling drones close to air bases deep inside the country. CONFLICTING DEMANDS Zelenskyy said earlier this week that the agenda for talks was clear: the return of prisoners of war and of children abducted by Russia, and the preparation of a meeting between himself and Putin. Putin turned down a previous challenge from Zelenskyy to meet him in person and has said he does not see him as a legitimate leader because Ukraine, which is under martial law, did not hold new elections when Zelenskyy's five-year mandate expired last year. Russia also denies abducting children. The Kremlin said this week it was unrealistic to expect "miracles" from the talks. At the last meeting on Jun 2, Russia handed Ukraine a memorandum setting out its key demands, including: full withdrawal of Ukrainian forces from four regions of the country that Russia has claimed as its own; limits on the size of Ukraine's military; enhanced rights for Russian-speakers in Ukraine; and acceptance by Kyiv of neutral status, outside NATO or any other alliance. Ukraine sees those terms as tantamount to surrender, and Zelenskiy described the Russian stance as an ultimatum.
