FBI Director says its new office in New Zealand will counter China's sway, provokes Beijing's ire
New Zealand, the smallest Five Eyes partner, has faced ongoing pressure to align with U.S. stances on China, its largest trading partner, while carefully balancing relations with Beijing. Analysts said the FBI chief's comments could vex those efforts, although New Zealand has faced such challenges before.
'It's in New Zealand's interest to have more law enforcement activities to deal with our shared problems,' said Jason Young, associate professor of international relations at Victoria University of Wellington. 'It's perhaps not in New Zealand's interest to say we're doing this to compete with China.'
The FBI expansion comes during fresh Pacific focus
Patel's visit came as the Trump administration has sought to raise global alarm about Beijing's designs. U.S. Defense Secretary Pete Hegseth in June said China posed an imminent threat and urged Indo-Pacific countries to increase military spending to 5% of GDP.
New Zealand has traditionally avoided singling out individual countries when discussing regional tensions, Young said.
'I'm sure the U.S. would like New Zealand to speak more forthrightly and characterize the China challenge in a similar way to the United States,' Young added.
New Zealand is a remote country of 5 million people that was once assumed by larger powers to be of little strategic importance. But its location and influence in the contested South Pacific Ocean, where Beijing has sought to woo smaller island nations over the past decade, has increased its appeal to countries like the U.S.
Peters, the foreign minister, told The Associated Press in 2024 that U.S. neglect of the region until recent years had in part been responsible for China's burgeoning influence there. He urged U.S. officials to 'please get engaged and try to turn up."
New office provokes anger among New Zealanders, not everyone welcomed the expanded FBI presence
Online, the new office drew rancor from New Zealanders who posted thousands of overwhelmingly negative comments about the announcement on social media sites. A weekend protest against the opening was planned.
Young said it was unlikely people posting in anger took issue with cross-border law enforcement efforts in general.
'I think it would be more a reflection of some of the deep unease that many people in New Zealand see with some of the political choices that are being made in America at the moment,' he said.
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The Wire
2 hours ago
- The Wire
At Geneva, Plastic Pollution Treaty Talks in Disarray
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Mint
3 hours ago
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HAL, BEL, BEML to Mazagon Dock: Experts recommend these defence stocks to buy ahead of Indian Independence Day 2025
Defence stocks to buy today, 14 August 2025: Amid brewing Indo-US trade war tension after the announcement of Trump's tariffs on India, the possibility of border aggression by the Pakistan-sponsored terror outfits is highly likely. So, the Indian government is expected to increase its defence expenses, which may lead to a rise in the share prices of certain listed defence stocks. As 14 August 2025 marks Pakistan Independence Day, some motormouth speeches from the Pakistani, Chinese and the US administrations are highly expected. So, for long-term investors, buying some defence stocks ahead of the Indian Independence Day can be a good option. According to stock market experts, Trump's tariffs have triggered the realignment of the geopolitical setup, and some new equations are likely to take place. In that case, most affected countries are likely to find new avenues for export revenue, which they are expected to lose due to the imposition of Trump's tariffs. They advised investors to look at those defence stocks expected to benefit from the rise in the government's defence expenditures. However, they advised investors to look at the fundamentals of the companies before making any investment decision. Speaking on the defence stocks to buy ahead of the Indian Independence Day 2025, Seema Srivastava, Senior Research Anallyst at SMC Global Securities, said, "India's defence sector is in a structural upcycle, driven by a Rs.16 trillion procurement pipeline, record Rs.23,622 crore exports in FY25 (up 12% YoY), and a push for self-reliance. HAL, BEL, BDL, and MDL provide stability, and L&T adds private-sector efficiency while niche tech firms offer high-growth potential. Policy support, rising export authorisations, and indigenisation could double exports to ₹ . 50,000 crore by 2029, ensuring long-term competitiveness and sustainable returns through a diversified investment approach." Seema Srivastava of SMC Global Securities listed out the following five defence stocks: 1] Bharat Electronics Limited or BEL: During Q1 FY26, PAT rose 25% YoY to ₹ . 969.13 crore, underpinned by a sharp 560 bps expansion in operating profit margin to 27.9%, reflecting superior cost control and a favourable execution mix. While revenue growth was modest at 5.2%, the company's ability to convert this into strong profitability highlights operational discipline and execution strength. A slight 2.4% YoY decline in the order book to ₹ 74,859 crore is monitorable. Still, with ongoing defence modernisation, the Make in India push, and expanding export opportunities, BEL is well placed to replenish and grow its order pipeline. Its debt-free balance sheet, robust cash flows, and leadership across radar, missile systems, and electronic warfare provide a durable competitive moat. The company is also strategically diversifying into non-defence areas like smart cities, solar, and cybersecurity, which can provide additional growth avenues and revenue stability. Supported by sustained government indigenisation initiatives and a proven track record of large-scale project execution, BEL offers long-term compounding potential. 2] BEML: BEML posted a narrowed net loss of ₹ 64.11 crore in Q1 FY26, down from ₹ 75.3 crore YoY, with EBITDA losses also reduced to ₹ 40.71 crore. Revenue remained flat at ₹ 633.99 crore, underscoring muted topline momentum and reflecting lean operations. Despite current softness, the company's robust order book of ₹ 9,945 crore offers multi-quarter visibility. Additionally, BEML won a significant ₹ 282 crore defence order for high-mobility vehicles, marking steady demand from the MoD. Strategic moves include diversification into futuristic mobility. BEML signed an MoU with IIT-Madras incubatee TuTr Hyperloop, expanding beyond traditional heavy equipment into innovative transport solutions. The company also continues to benefit from India's record defence production uptick and export acceleration, creating a favourable policy backdrop. While near-term performance remains volatile, BEML's strong order pipeline, evolving portfolio, and alignment with national infrastructure and defence thrust lend it credible long-term upside. The key things to watch include disciplined execution, especially in converting orders into profitable revenues and managing its operational turnaround. 3] Mazagon Dock Shipbuilders: Mazagon Dock Shipbuilders Limited's Q1 FY26 results reflect near-term profitability pressures, with net profit down 35% YoY and EBITDA margins contracting sharply due to higher procurement and human resources costs. However, the company's long-term investment case remains strong, anchored by its strategic role in India's naval modernisation and a robust financial track record. Between FY21–24, MDL delivered exceptional growth with ~33% CAGR in revenue and ~47% CAGR in net profit, supported by industry-leading return ratios (ROE ~27%, ROCE ~33%) and a debt-free balance sheet, enabling self-funded capacity expansion. Key strategic initiatives such as the upcoming Nhava dry dock facility, which will double shipbuilding capacity, and the proposed majority stake in Colombo Dockyard to expand into export markets highlight management's intent to scale operations beyond domestic contracts. The strong defence order pipeline ensures multi-year revenue visibility, particularly in submarines, destroyers, and frigates. While FY26 may see margin volatility from execution cycles and input costs, MDL's operational leverage, expansion into higher-value projects, and export diversification should drive gradual profitability recovery. Given its strategic importance, technological capabilities, and capacity growth, MDL is well-positioned to capture long-term value from India's growing defence spend and global naval procurement opportunities. 4] Zen Technologies: The company's Q1FY26 performance, though marked by a temporary moderation in topline growth, reflects strong long-term fundamentals. EBITDA and PAT margins have been sustained, underscoring disciplined operations and cost efficiency. A healthy consolidated order book of ₹ . 754 crore, coupled with a debt-free balance sheet and robust liquidity of ₹ . 918 crore, provides financial resilience and the flexibility to pursue growth opportunities. Strategic acquisitions, such as the 76% stake in TISA Aerospace, signal entry into high-potential UAV and loitering munitions markets, aligning with evolving global defence demand. Subsidiaries ARIPL and UTS are already adding meaningful operational synergies, while integration efforts progress smoothly. Moreover, according to the company's management, looking ahead to H1FY26, we remain confident in achieving our order inflow guidance of ₹ 800 crores. In addition, we expect orders to be placed under the government's emergency procurement plan, particularly for anti-drone systems. Its robust pipeline and continued policy support for indigenous manufacturing position the company well for sustained growth. The company's management mentioned that while FY26 is likely to be a year of consolidation, it would remain focused on executing its long-term strategy. It is confident in maintaining its targeted cumulative revenue of ₹ 6,000 crores over the next three financial years. 5] Astra Microwave Products: During Q1FY26, performance underscores a strong foundation for long-term growth. Consolidated revenue rose 29% YoY to ₹ 200 crore, with gross margin expansion to 46.7% and EBITDA margin improvement to 20.5%, reflecting operational efficiency and a favourable product mix. PAT surged 126% YoY to ₹ 16 crore, driven by robust execution and higher value-added orders. The consolidated order book stood at ₹ 2,236 crore as of June 30, 2025, ensuring multi-year revenue visibility. A key highlight was the August ₹ 135 crore DRDO radar system upgrade order, reinforcing Astra's technological leadership in advanced defence electronics. The company's diversified portfolio across defence, aerospace, and space electronics, supported by in-house R&D, advanced test facilities, and AS9100D & ISO certifications, enhances its competitive moat in high-specification systems. Continued opportunities in QRSAM, missile subsystems, and space electronics align with India's push for indigenisation and rising defence budgets. With strategic capabilities from component-level RF/Microwave products to integrated systems, Astra is well-positioned to capture domestic and export demand. On defence stocks looking strong on the technical chart, Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, said, "BEL, Mazagon Dock Shipbuilders and Cochin Shipyard shares are looking strong on the technical chart pattern. Hindustan Aeronautics Ltd (HAL) and Bharat Dynamics Ltd (BDL) also sound promising on the technical chart." 1] BEL: BEL's share price currently trades around ₹ 388, offering an attractive risk-reward setup. A stop-loss can be comfortably placed at ₹ 360, while the medium-term upside potential lies in the ₹ 430 to ₹ 440 range. This makes BEL a compelling candidate for technically driven investors seeking bullish setups. 2] HAL: HAL share price is trading at ₹ 4,525 and appears to be forming a base in the daily chart's ₹ 4,450 to ₹ 4,550 zone. Technically, it is in the oversold zone and has formed a bullish engulfing pattern, indicating potential upward momentum. Traders can consider buying at current levels with a stop-loss of ₹ 4,300 and a target price of ₹ 4,900. 3] Bharat Dynamics Ltd (BDL): Bharat Dynamics' share price is in the process of base formation and, in the short term, has formed a bullish engulfing pattern. The stock is currently oscillating between ₹ 1,500 and ₹ 1,600. A decisive move above ₹ 1,650 could take it towards ₹ 1,800 in the coming days. Investors can consider buying with a stop-loss of ₹ 1,400 and a target of ₹ 1,800. 4] Mazagon Dock Shipbuilders: Mazagon Dock Shipbuilders' share price has corrected nearly 50% from its May high and shows signs of base formation around the daily chart of ₹ 2,650 to ₹ 2,750 levels. With a medium-term recovery expected, investors can consider buying at the current market price of ₹ 2,750 with a stop-loss of ₹ 2,500 and a target of ₹ 3,100. 5] Cochin Shipyard: The Cochin Shipyard share is in the oversold zone and shows a rounding bottom pattern on the hourly chart, suggesting a potential reversal. Investors can buy on dips from ₹ 1650 to ₹ 1700 with a stop-loss of ₹ 1,500 and a target range of ₹ 1,900 to ₹ 2,000. Disclaimer: The views and recommendations above are those of individual analysts or brokerage companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Mint
4 hours ago
- Mint
Can the US-India relationship be saved?
The U.S.-India relationship is in trouble due to President Trump's punishing tariffs and public wooing of India's arch-enemy, Pakistan. Even so, it's too early to write an obituary for one of America's most significant partnerships in Asia. If both sides can muster creativity and flexibility, they can prevent a long-term rupture. First the bad news. For the first time in more than a quarter-century, the U.S. appears to be questioning a cornerstone of its Indo-Pacific policy—that maintaining a strong relationship with India is in America's interest. This month the U.S. imposed a 25% tariff on Indian goods and added another 25% as punishment for India's purchase of discounted Russian crude oil following Vladimir Putin's 2022 invasion of Ukraine. The combined 50% tariff is among the highest imposed by the U.S. on any country. On social media, Mr. Trump has castigated India for erecting 'strenuous and obnoxious" trade barriers, for not caring 'how many people in Ukraine are being killed," and for having a 'dead" economy. Mr. Trump has also repeatedly said he brokered a cease-fire in a four-day conflict between India and Pakistan in May, a claim India denies. He has hosted Pakistan's de facto military ruler, Field Marshal Asim Munir, at the White House, applied a comparatively modest tariff rate of 19% on Pakistan, and talked up the prospect of helping develop Pakistan's oil reserves—an odd idea considering there's little evidence Pakistan has much oil. The Pakistani government has nominated Mr. Trump for the Nobel Peace Prize. India's official response has been muted. A Foreign Ministry statement justified India's purchase of Russian oil, saying imports are 'meant to ensure predictable and affordable energy costs" for Indian consumers. It pointed out that neither the European Union nor the U.S. has ended trade with Russia, and it described America's 'targeting of India" as 'unjustified and unreasonable." Pundits who follow the U.S.-India relationship agree that it is in deep trouble. Evan Feigenbaum of the Carnegie Endowment for International Peace argued that 'President Donald Trump is now in the process of dismantling this painstakingly built relationship," undoing decades of bipartisan effort. 'Donald Trump was supposed to be good for India in his second presidency," Shyam Saran, a former Indian foreign secretary, wrote in the Indian Express. 'He has turned out to be nightmare." These concerns aren't overblown. The base 25% tariff on India took effect last week, and the additional 25% tariff is due to kick in on Aug. 27. The U.S. accounts for roughly one-fifth of India's goods exports. Labor-intensive sectors such as textiles, garments, jewelry and auto parts would be particularly hard-hit by a 50% tariff. It also threatens the viability of Prime Minister Narendra Modi's flagship Make in India program, which is aimed at boosting the country's manufacturing output. A strained relationship also hurts Washington. India was the 10th-largest U.S. trading partner in goods and eighth-largest in services in 2024. The greater potential downside of a weakened U.S.-India relationship is geopolitical. India boasts the largest population of any country and is on track to become the world's third-largest economy at market exchange rates by 2028. A recent report by the Center for a New American Security, a Washington think tank, listed India among six so-called global swing states, allied neither with the U.S. nor China, that 'together will exert disproportionate influence over the future of international order." The geopolitical logic that brought the U.S. and India closer in the first place means a patch-up remains possible. Rupture would imply that under Mr. Trump, the U.S. is no longer interested in taking seriously its competition with China. For India, the choice is a no-brainer. China claims large chunks of Indian territory and is Pakistan's closest military and diplomatic ally. Both the U.S. and India have left the door open to compromise. Despite his harsh words, Mr. Trump has continued to call India 'a friend" and has refrained from lashing out at Mr. Modi. Nor has the Indian prime minister attacked the U.S. or Mr. Trump. Unlike most countries, India has the means to offer Mr. Trump a deal that he can sell as a big win. India is the world's second-largest arms importer, after Ukraine, and the third-largest oil importer, after the U.S. and China. Growing domestic demand for energy gives India room to increase its liquefied natural gas imports from the U.S. According to the Confederation of Indian Industry, Indian businesses have invested $40 billion in the U.S. They could promise to invest more. Even on agriculture—a major sticking point in negotiations—India could probably eliminate tariffs on select items, such as soybeans and blueberries, without risking too much political backlash. As long as the U.S. doesn't actively arm Pakistan, India can probably live with Mr. Trump's empty praise for Islamabad. India's ties with Moscow and outreach to Kyiv could prove helpful in U.S. efforts to broker a peace deal. If India brings a sweeter offer to the table, Mr. Trump could give Mr. Modi a political win by dropping tariffs to the 15% rate that Japan and South Korea enjoy. If this happens, people will view the president as a builder of deeper U.S.-India ties rather than as the wielder of a wrecking ball.
