LTIMindtree shares in focus as company leads race for Rs 1,435 crore PAN 2.0 project
By Aditya Bhagchandani Published on June 2, 2025, 15:21 IST
Shares of LTIMindtree Ltd remained in focus on Monday after reports suggested the IT firm is the frontrunner to bag the ambitious ₹1,435 crore PAN 2.0 project from the Income Tax Department. The stock closed marginally higher at ₹5,071, up 0.041% from its previous close of ₹5,068.90.
The PAN 2.0 initiative involves complete overhaul and digitization of the PAN system, including design, development, implementation, operations, and maintenance of a unified platform. The project is aimed at making PAN a common business identifier across all specified digital government systems, boosting ease of compliance and streamlining services.
Protean, a major current service provider, is also in contention but reports indicate LTIMindtree may have the edge in the bid evaluation process.
According to the Request for Proposals (RFP) issued by the ITD, the Managed Service Provider will be responsible for creating a single digital portal enabling paperless operations, efficient grievance redressal, and seamless PAN services.
The outcome of this ₹1,435 crore bid could prove pivotal for LTIMindtree's public sector vertical and digital transformation credentials. The market will be closely watching further developments in this regard.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
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If completed, the order could be announced at a summit in the Chinese capital next month where Xi will host Friedrich Merz, the new German chancellor, and Emmanuel Macron, the president of France, as first reported by Bloomberg. Ursula von der Leyen, the president of the European Commission, and Antonio Costa, the EU Council chief, are also expected to attend in a sign of the bloc's increased willingness to forge a closer relationship with China. Elon Musk has warned the US faces 'debt slavery' if Donald Trump's spending plans are approved by Congress. The billionaire Tesla boss, who recently left his role as an adviser to the US president, said the US faced an 'immense level of overspending'. On Tuesday, Mr Musk trashed President Trump's much-vaunted 'big beautiful bill' as a 'pork-filled disgusting abomination'. Today he shared a video on X featuring Federal Reserve chairman Jerome Powell, in which he warns that the US is on an 'unsustainable fiscal path' and 'borrowing from future generations'. The Prime Minister said he remained 'confident' that Britain would face zero US tariffs on its steel after a deal with Donald Trump's administration. Sir Keir Starmer was asked by Liberal Democrat leader Sir Ed Davey whether the US president could be trusted to keep to the terms of an agreement with the UK. President Trump excluded Britain from a doubling of US steel tariffs from today to 50pc, although an agreement made last month said tariffs on British metals would drop to zero. During Prime Minister's Questions, Sir Ed said: 'Now Trump is threatening us with 50pc unless we comply with his new five-week deadline. 'This is classic Trump changing the terms of a deal he had already agreed.' Sir Keir replied: 'We have a deal and we're implementing it and within a very short time I'm confident that we will get those tariffs down in accordance with the deal.' He said he would update the House in due course about the deal regarding zero tariffs on steel. US stock indexes edged higher in premarket trading ahead of fresh jobs data that could help gauge the economic impact of Donald Trump's tariffs. Shares of HPE rose nearly 6pc in premarket trading as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit. AI chip leader Nvidia rose 1pc, extending gains from early this week. Other chipmakers including Broadcom and Advanced Micro Devices also climbed. The moves came despite the US doubling its tariffs on steel and aluminium imports from 25pc to 50pc. President Trump also raised uncertainty about tariffs as he said Chinese leader Xi Jinping was 'extremely hard to make a deal with'. 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Ramsdens chief executive Peter Kenyon said: 'The gold price allows us to pay the customer more, means we make more as well, and also helps pawnbroking a bit with some of the recoveries when people don't pay us back.' Trade talks between the EU and US are moving 'in the right direction' according to the bloc's chief trade negotiator. EU trade commissioner Maroš Šefčovič posted an image alongside US trade representative Jamieson Greer following a meeting in Paris. The pound edged higher as closely watched data confirmed Britain's dominant services sector had rebounded after Donald Trump's tariff shock. Sterling was up 0.1pc against the dollar to $1.353 as PMI figures showed activity expanded among UK private sector businesses in May, having fallen sharply in April. The value of the dollar has edged lower against major currencies amid the looming deadline today from President Trump for tariff deals from US trading partners. Germany's benchmark stock index neared a record high ahead of a first tax relief package aimed at kick-starting growth in Europe's largest economy. The Dax in Frankfurt was up 0.9pc as the German cabinet aims to approve the package today. Chancellor Friedrich Merz's ruling coalition agreed on write-offs of as much as 30pc for companies purchasing movable assets between the end of June this year and January 2028, according to a draft law seen by Bloomberg. Stocks have risen across Europe as today marks the deadline for US trading partners to submit their proposals for deals that might help them avoid Trump's hefty 'liberation day' tariffs from taking effect. The US and China are also expected to talk this week to iron out trade differences, with President Trump posting on social media at 2am that Xi Jinping is 'very tough'. Meanwhile, the European Central Bank is expected to cut interest rates on Thursday after eurozone inflation fell to 1.9pc in May. The FTSE 100 in London was up 0.1pc and the Cac 40 in Paris gained 0.7pc, with miners and technology the biggest risers. Viresh Kanabar, a strategist at Macro Hive, said: 'Our view was that China and Europe would always be the hardest for the US to agree on a tax deal. 'Since Trump walked back his excessive tariffs on China, the markets said, we sort of know the worst case at this stage. If it happens, it will be bad, but it won't be recessionary bad.' Britain's dominant services sector performed better than first thought last month, a closely watched survey showed, as the economy bounced back from the US tariff shock. The S&P Global UK Services PMI registered 50.9 in May, with a reading above 50 indicating growth. This was better than initial estimates of 50.2 and up from April's two-year low of 49 in the wake of Donald Trump's 'liberation day' tariffs. Business optimism rebounded to a seven-month high after the US president announced a 90-day pause to the worst of his global import taxes. However, employment numbers have now fallen for eight months, which is the longest streak since the global financial crisis in 2008-10, outside the pandemic. Tim Moore, economics director at S&P Global, said: 'The service sector regained its poise in May as receding concerns about US tariffs, recovering global financial markets and greater confidence among clients all helped to support output growth. 'Although only marginal, the upturn in service sector activity was stronger than first estimated in May.' Sir Martin Sorrell's marketing business S4 Capital warned that annual revenues are expected to fall as US tariffs cause global economic uncertainty. The group said like-for-like net revenues are expected to drop by low single percentage digits over the full year, having previously said they would remain largely flat on the year before. The group flagged 'wider market uncertainty and significant volatility in global economic policy, particularly as a result of the US-imposed tariffs'. But S4 Capital said it still expects underlying earnings to be 'broadly' similar to 2024, helping shares lift 6pc in early trading. Sir Martin, executive chairman of S4 Capital and previous boss of marketing giant WPP, said: 'The global macroeconomic environment has become even more challenging in 2025. 'Assessing the impact of US-imposed tariffs has been added to the three key risks around US/China relations, Russia/Ukraine and Iran/Middle-East. 'Clients, therefore, are likely to remain cautious.' He said the group would 'continue to focus on our cost base and will take further action to support profitability, if necessary'. The eurozone's dominant services industry contracted last month for the first time since November, according to a closely watched survey, amid rising costs. The HCOB Eurozone Composite PMI showed the private sector barely expanded in May, giving a reading of 50.2, which was its weakest since February. It was down from 50.4 in April but higher than a preliminary estimate of 49.5. PMI readings above 50.0 indicate growth in activity, while those below point to a contraction. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: 'This development is due to a slight decline in activity in the service sector, while manufacturing output showed the same moderate growth as in the previous month.' The services sector saw its business activity index drop to 49.7 from 50.1 in April, signalling a marginal contraction and its first time sub-50 in six months. Global stock markets hit a record high as investors brushed off the turmoil caused by Donald Trump's tariff tirade. The MSCI All Country World Index – which tracks stock markets across the globe – rose 0.2pc to hit 887.73 and tip above its February record high. It comes after healthier than expected job vacancy figures in the US spurred a jump on Wall Street, which led to a rise in Asian and European markets. When or if Donald Trump gets on the phone with Xi Jinping, the tone between the two men is likely to be frosty. The US and China have in recent days both accused each other of violating their fragile, three-week-old trade truce. The two presidents are expected to speak this week in an effort to rescue the deal. But Trump has a tough pill to swallow: it is his arch-rival who looks to have the better negotiating hand. China's near-total dominance of the world's supply of rare-earth metals – which are used in the manufacture of everything from cars and computer chips to F-35 fighter jets and nuclear-powered submarines – means Xi can squeeze the US where it hurts. Donald Trump is waking up to the reality that China will not make a deal without a fight, a fund manager has warned. Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, warned that Europe should take note of how the negotiations between the US and China are going: Stock markets in London rose at the open as Britain avoided Donald Trump's hike in steel tariffs. The FTSE 100 was up 0.2pc to 8,804.71 while the mid-cap FTSE 250 gained 0.2pc to 21,048.82 as markets climbed around the world. The leaders of the world's two largest economies may be at loggerheads over tariffs but that is not stopping investors piling into markets. Asian stocks rose overnight and European equity markets are expected to do the same shortly, following gains on Wall Street despite Donald Trump's hiking of steel tariffs. As a result, Barclays raised its price target for the benchmark S&P 500. The bank expects the flagship US stock index to hit 6,050 by the end of the year, up from 5,900 amid easing trade uncertainty and expectations of that earnings will grow at a more regular pace in 2026. This follows forecast increases by Goldman Sachs and UBS Global Wealth Management in May, and a similar move by RBC Capital Markets and Deutsche Bank this week. The new target would mean the index would rise by about 1.3pc from its last close of 5,970.37 points. In May, the S&P 500 logged its best monthly performance since November 2023, rising 6.2pc, after President Trump moderated his stance on tariffs. Barclays expects it to hit 6,700 by the end of 2026. Barclays strategist Venu Krishna said: 'After tariff headwinds are absorbed throughout the remaining quarters of FY25, we expect that 2026 will return to a more normalised pace of earnings growth.' The metals industry has welcomed Donald Trump's decision to keep tariffs at 25pc on British steel and aluminium for now, but warned that 'uncertainty remains' over the final tax rate. The US president has decided to 'provide different treatment' to the UK after a deal that was struck between Washington and London last month, as he doubled tariffs on imports from elsewhere to 50pc. Levies will remain at 25pc for imports of steel from the UK into America, however Britain could still be subject to the higher 50pc rate from July, or the quotas in the agreement could come into force, effectively eradicating the tax. The 50pc tariff rate for imports of steel and aluminium from other nations came into force at 12.01am Washington DC time on Wednesday, shortly after 5am in the UK. The Government said on Tuesday night they were 'pleased' that the industry 'will not be subject to these additional tariffs'. Gareth Stace, the director general of UK Steel, said that Mr Trump's decision is a 'welcome pause'. He added: 'Continued 25pc tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike. 'However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders. 'The US and UK must urgently turn the May deal into reality to remove the tariffs completely.' Donald Trump said Xi Jinping was 'extremely hard to make a deal with' as the leaders of the world's two largest economies battle over trade. The US president said the Chinese leader was 'very tough' in a post on his Truth Social account today. The White House had said the two leaders would speak this week after President Trump accused China of violating the terms of their trade agreement made in Geneva last month. Beijing responded on Monday by accusing the US of flouting the deal. It comes as today marks the deadline for US trading partners to submit their 'best offer' to avoid punishing import tax rates. At 5am UK time, higher 50pc tariffs on imported steel and aluminium came into effect, although President Trump's executive order excluded Britain from the increase in the duty. Thanks for joining me. Donald Trump said Xi Jinping is 'extremely hard to make a deal with' in the on-going trade stand-off between the world's two largest economies. The White House had said that the two leaders would speak this week after President Trump accused China of violating the terms of their trade agreement made in Geneva last month. Thames Water customers risk £230 rise in bills as rescue deal collapses | Utility's future in doubt after private equity giant KKR abandons £4bn bailout How Labour attacks and a record fine drove Thames Water to the brink | Rescue deal for utilities giant collapses as officials hold bosses to account for failures Miliband urged to save net zero through higher bills in the South | Energy Secretary likely to miss his target unless he backs zonal pricing, Lords warn Council 'staffing crisis' threatens Rayner's housing target, builders warn | Shortages at local authorities blamed for delays in striking key agreements Adam Smith: Families face fresh mortgage pain if Reeves bows to Left-wing rebels | Raising borrowing to satisfy Cabinet colleagues' demands is a decision the Chancellor may live to regret Asian stocks rose and the dollar drifted as higher US tariffs on steel and aluminium took effect, marking the latest chapter in the trade war that has rattled the markets for much of the year. Today also marks the deadline for US trading partners to submit their proposals for deals that might help them avoid Donald Trump's hefty 'liberation day' tariffs from taking effect in five weeks. In Asia, South Korea's stocks and its currency surged as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus, market reforms and easing policy uncertainty. The benchmark Kospi jumped more than 2pc to its highest since August 2024, putting it on the cusp of entering a bull market. That left the MSCI's broadest index of Asia-Pacific shares outside Japan nearly 1pc higher. Japan's Nikkei rose 0.8pc, while Taiwan stocks jumped 2pc after artificial intelligence behemoth Nvidia boosted US stocks on Tuesday. On Wall Street, the Dow Jones Industrial Average rose 0.5pc, to 42,519.64, the S&P 500 rose 0.6pc, to 5,970.37, and the Nasdaq rose 0.8pc, to 19,398.96. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.452pc, from 4.462pc late on Monday. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
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President Donald Trump's 'big, beautiful' tax-cut bill will blow out the US budget deficit by $2.4 trillion (£1.8 trillion) over the next decade, the Congressional Budget Office has warned. The bill's tax cuts will total $3.7 trillion but its spending cuts will save only $1.3 trillion, Congress's independent fiscal scrutineer calculated in a report released on Wednesday. The US government will have to borrow the shortfall from an increasingly restive bond market, and the bill increases the $36 trillion cap on public debt by another $4 trillion. Mr Trump's plans have prompted investors to drive up yields on longer-dated US Treasury bonds. The fresh forecast could intensify the scathing public attacks from billionaire Tesla boss Elon Musk, a key adviser and financial backer of Mr Trump. He has been using his social media platform X to excoriate the One Big Beautiful Bill, on Tuesday calling it a 'disgusting abomination'. On Wednesday he returned to X with a warning that the US faces 'debt slavery' if Mr Trump's plans for an 'immense level of overspending' were approved by Congress – although he overlaid his post on a video featuring Federal Reserve chairman Jerome Powell. Mr Trump is hoping to get the bill, which passed the House of Representatives in May by 215 votes to 214, through the Senate by July 4. Fiscally hawkish Republican senators are likely to give the legislation a rougher ride. Before the CBO released its estimates, Mr Trump's press spokeswoman Karoline Leavitt tried to cast doubt on its findings, saying the agency had been 'historically wrong' and suggesting its employees may be biased. The latest CBO figures appear to narrow the budgetary impact from a previous CBO estimate in mid-May, which put the deficit increase 'attributable to tax changes' at $3.8 trillion. The new estimate takes accounts of changes to the bill since then, and incorporates more of the proposed spending cuts. Thanks for joining us here today. You can keep up with all the latest analysis and news on the economy and business from The Telegraph here. European stocks closed higher on Wednesday, buoyed by Berlin's approval of a €46bn (£29bn) corporate tax relief package aimed at kick-starting growth. The relief package, the first of a broader series of measures from Berlin's new government, is an attempt to prevent the struggling economy from shrinking for a third consecutive year. Recent surveys saw May's eurozone business activity barely creep into expansion, while Germany's services sector recorded its steepest contraction in over two years. Germany's blue-chip index finished 0.8pc higher, just off an all-time high it hit earlier in the session. The pan-European Stoxx 600 closed up 0.5pc after briefly touching a one-week high. Canadian prime minister Mark Carney has denounced Donald Trump's doubling of tariffs on steel and aluminium to 50pc in a heightening of trade tensions between the neighbouring nations. 'The latest tariffs on steel and aluminium are unjustified, they're illegal, they're bad for American workers, bad for American industry and of course for Canadian industry as well,' Mr Carney told reporters in Ottawa. He vowed that Canada - the largest supplier of foreign steel and aluminium to the United States - will 'take some time, not much' to respond. At the same time, the prime minister noted that 'intensive discussions' continued with the US administration to rewrite Canada-US trade relations. Doug Ford, the premier of Ontario province, which has a large number of steel producers, accused the Trump administration of breaking a 'verbal agreement' not to escalate tariffs on Canadian metals. That deal with US Commerce secretary Howard Lutnick, he said, had been reached after Mr Ford agreed to suspend a 25pc surcharge on electricity exported to three American states. 'We can't sit back and let President Trump steamroll us,' he said, adding that 'everything's on the table' in terms of retaliatory measures. Canada exported 5.95m tonnes of steel and 3.15m tonnes of aluminium to the United States last year, according to US government data. Trade talks between Europe and America are advancing quickly, the European Commission has said, despite a stumbling block posed by new US metals tariffs. Donald Trump's doubling of tariffs on steel and aluminium imports kicked in today, the same day his administration sought 'best offers' from trading partners to avoid other punishing import levies from taking effect in July. Maros Sefcovic, EU trade commissioner, told reporters: 'We are advancing in the right direction, at pace,' Mr Sefcovic told reporters. Technical talks are ongoing in Washington, he said, and high-level contacts will follow. 'What makes me optimistic is I see the progress ... the discussions are now very concrete,' Mr Sefcovic said, adding that he and Jamieson Greer, the US Trade Representative, had agreed to restructure the focus of their talks. London shares closed higher today, with commodities firms and the defence giant Babcock among the biggest risers. Overall, the FTSE 100 rose 0.2pc, while the mid-cap FTSE 250 rose 0.5pc. The pound rose 0.3pc against the dollar, but fell 0.1pc against the euro. The dollar dropped 0.2pc against the pound today amid concerns about the size of the Trump administration's spending and the ongoing trade war. The dollar index, which compares the US currency against a basket of key rivals, is down 0.4pc. David Morrison, an analyst at Trade Nation, said: 'Many investors have positioned themselves against the US dollar, anticipating further weakness. President Trump's trade war, and ballooning US debt are cited as reasons to avoid the US currency.' Stephen Innes, of SPI Asset Management, said: 'A Trump-Xi call [expected this week to talk about trade] could provide a brief detour from the dollar's broader descent, but it's not a game-changer ...unless we get a real shift in trade posture.' Tesla shares have fallen 3.3pc after Elon Musk blasted Donald Trump's finance bill and the electric carmaker's sales fell in key markets. The electric-vehicle maker's sales dropped for the fifth month in a row in Britain, Germany and Italy in May, underscoring the challenges the electric vehicle-maker faces over Mr Musk's politics and its model line-up. Mexico will announce measures next week if there is no agreement reached with the US on steel and aluminium tariffs, president Claudia Sheinbaum said Wednesday. She also called the US announcement to raise the metals' tariffs to 50pc from the 25pc introduced in March an 'unfair measure', citing the free trade agreement Mexico and Canada share with the United Sates. Ms Sheinbaum however said that Mexico's response would not be 'an eye for an eye'. 'It is not a matter of revenge, or retaliation as they call it in English,' she said. 'It is a matter of protecting our jobs and our businesses.' US stocks edged higher this afternoon, as strength in technology shares offset falls driven by weak economic data that deepened concerns about the impact of the Trump administration's erratic trade policies. The US services sector contracted for the first time in nearly a year in May, while businesses paid higher input prices, a reminder that the economy was still at risk of experiencing a period of very slow growth and high inflation. The ADP National Employment Report showed US private employers added the fewest number of workers in more than two years in May. Investor focus is squarely on tariff negotiations between Washington and its trading partners, with Mr Trump and Chinese leader Xi Jinping expected to speak sometime this week as tensions simmer between the world's two biggest economies. May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance and upbeat earnings reports. The S&P 500 remains less than 3pc away from its record highs touched in February. This afternoon, the S&P 500 and the Nasdaq are up by 0.2pc and the Dow is up by 0.1pc. Howard Lutnick, the US Commerce secretary, has ruled out abolishing tariffs on Vietnam if Vietnam abolished tariffs on US goods. Republican senator John Kennedy had challenged Howard Lutnick on whether he was committed to 'reciprocity' given that the Trump administration had introduced so-called 'reciprocal tariffs'. However, Mr Lutnick said that it would make no sense to act reciprocally towards a country that sells America marked-up Chinese goods. Howard Lutnick has said that lower tariffs can be offered if countries agree to buy Boeing aircraft. The US Commerce secretary said: 'Our nation's aircraft business is ... a fantastic asset of our country, one of the great exports of our country. We are going to protect it... 'As we did with the UK, we negotiated a zero tariff [on aerospace parts and tools] with them and if other countries play ball with us I would expect that's an offer we make provided they're buying our aircraft. 'In exchange for us doing a zero tariff, Donald Trump then gets an agreement by British Airways to buy $10bn, they were competing with Airbus... That's exactly the way Donald Trump thinks about these kind of negotiations.' Howard Lutnick has pledged to support the US lobster industry in trade deals and protect it from unnecessary regulation. The US Commerce secretary said: 'We will protect the great Maine lobster industry because it is a treasure for America.' He pointed to the US-UK trade deal, saying: 'You will see as we do our trade deals, they treat the Maine lobster industry horribly. And in the UK deal, they said we will invite you to 10 Downing Street and we will have now a lobster dinner, OK? So we've opened the UK to lobster.' Chris Van Hollen, a Democratic senator, has opened an Appropriations committee meeting on Capitol Hill by hitting out at the 'unacceptable' behaviour the Trump administration. He criticised 'Doge diktats', a 'failure to comply with the law' and the 'illegal firing' of staff. Howard Lutnick, who is testifying, responded with prepared remarks, saying: 'America is once again the most attractive destination for investment in the world... 'We we narrow the deficit of this country, both the trade deficit and the budget deficit.' The services sector of the American economy shrank for the first time in a year during May, a closely watched survey showed, as tariffs pushed up prices. The ISM Services PMI showed a contraction in the vital part of the US economy for only the fourth time in the last five years as trade uncertainty left bosses unable to plan ahead. The number of new orders also sank, while an index of prices rose to its highest level since November 2022. Steve Miller of ISM said tariffs were 'likely elevating prices paid by services sector companies' He added: 'Respondents continued to report difficulty in forecasting and planning due to longer-term tariff uncertainty and frequently cited efforts to delay or minimise ordering until impacts become clearer.' The US trade representative said the European Union had given the US a 'credible starting point for discussions on reciprocal trade' following a meeting with the bloc's trade chief. Jamieson Greer said that negotiations 'are advancing quickly' following his meeting with EU trade chief Maroš Šefčovič. Mr Greer said: 'Last week, the European Union provided the United States with a credible starting point for discussions on reciprocal trade, and I am pleased that negotiations are advancing quickly. 'Today's meeting in Paris, which occurred alongside technical talks by our teams in Washington, was very constructive and indicates a willingness by the EU to work with us to find a concrete way forward to achieve reciprocal trade. 'I look forward to continued constructive engagement in the coming days and weeks.' Canada's central bank has kept interest rates on hold amid 'high' uncertainty caused by Donald Trump's tariffs. The Bank of Canada held borrowing costs at 2.75pc, as had been widely expected, despite the US president rowing back on the worst of his global tariffs. The Bank said: 'With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts.' Wall Street stock markets edged higher despite figures indicating a sharp slowdown in the pace of hiring in the American economy. The Dow Jones Industrial Average rose 0.2pc to 42,607.93 despite the ADP Employment Report showing private sector companies added just 37,000 jobs in May, down from 60,000 in April. The S&P 500 gained 0.3pc while the tech-heavy Nasdaq Composite was up 0.5pc to 19,486.40. The cost of US government borrowing has fallen after an unexpected decline in the number of new jobs added by private sector companies last month. Two-year US Treasury yields – a benchmark for the cost of servicing short-term federal debt – fell three basis points to 3.92pc as investors sought out the safety of government bonds. The yield on two-year UK gilts edged lower to 4.01pc. Traders are increasing bets on interest rate cuts after a report showed the US private sector added the fewest number of new jobs in two years. Two reductions in borrowing costs in the US have now been priced in on money markets by the end of this year following the ADP data, which showed companies hired 37,000 people in May, down from 60,000 in April. Meanwhile, traders think there is a 61pc chance of two rate cuts by the Bank of England before the end of 2025. US stock markets dropped in premarket trading after the private sector companies added the lowest number of jobs in two years during May. The Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were all about 0.1pc lower before the opening bell. It came as the ADP Employment Report showed US private companies added 37,000 jobs in May, which was lower than the 114,000 expected and down from a downwardly revised 60,000 in April. Downing Street said ministers were in 'constant dialogue with the United States' when asked why the Prime Minister was confident a trade deal with the US would be implemented in a few weeks, avoiding higher tariffs on UK steel. 'We are obviously working at pace to ensure that we are able to implement the deal as quickly as possible,' the Prime Minister's official spokesman added. Donald Trump has hinted that Britain faces a deadline of July 9 to finalise a US deal before tariffs on steel would rise to 50pc. Asked if he could guarantee the deal would be in place by then, the spokesman said: 'Obviously our aim is to implement this deal as quickly as possible, and you have just heard from the PM in the House that we are hoping to provide an update on that in weeks. 'I think he said we are very confident in implementing that deal as soon as possible.' Donald Trump has blamed the slowdown on US private sector employment on the chairman of the Federal Reserve, who he accused of being too slow to cut interest rates. The US president promptly took to Truth Social after the ADP Employment Report showed that private companies in May added the fewest number of jobs since March 2023. US private companies added jobs at their slowest pace in two years in a sign that Donald Trump's trade war has begun to hit the American economy. Private employers added 37,000 jobs in May, according to the ADP National Employment Report, which was far fewer than the 114,000 that had been expect by analysts. ADP chief economist Nela Richardson said: 'After a strong start to the year, hiring is losing momentum. 'Pay growth, however, was little changed in May, holding at robust levels for both job-stayers and job-changers.' China is drawing up plans to order hundreds of Airbus planes as Xi Jinping seeks to build closer ties with Europe. Beijing is in talks with the European aerospace giant to order up to 500 jets against the backdrop of the trade war with the US. If completed, the order could be announced at a summit in the Chinese capital next month where Xi will host Friedrich Merz, the new German chancellor, and Emmanuel Macron, the president of France, as first reported by Bloomberg. Ursula von der Leyen, the president of the European Commission, and Antonio Costa, the EU Council chief, are also expected to attend in a sign of the bloc's increased willingness to forge a closer relationship with China. Elon Musk has warned the US faces 'debt slavery' if Donald Trump's spending plans are approved by Congress. The billionaire Tesla boss, who recently left his role as an adviser to the US president, said the US faced an 'immense level of overspending'. On Tuesday, Mr Musk trashed President Trump's much-vaunted 'big beautiful bill' as a 'pork-filled disgusting abomination'. Today he shared a video on X featuring Federal Reserve chairman Jerome Powell, in which he warns that the US is on an 'unsustainable fiscal path' and 'borrowing from future generations'. The Prime Minister said he remained 'confident' that Britain would face zero US tariffs on its steel after a deal with Donald Trump's administration. Sir Keir Starmer was asked by Liberal Democrat leader Sir Ed Davey whether the US president could be trusted to keep to the terms of an agreement with the UK. President Trump excluded Britain from a doubling of US steel tariffs from today to 50pc, although an agreement made last month said tariffs on British metals would drop to zero. During Prime Minister's Questions, Sir Ed said: 'Now Trump is threatening us with 50pc unless we comply with his new five-week deadline. 'This is classic Trump changing the terms of a deal he had already agreed.' Sir Keir replied: 'We have a deal and we're implementing it and within a very short time I'm confident that we will get those tariffs down in accordance with the deal.' He said he would update the House in due course about the deal regarding zero tariffs on steel. US stock indexes edged higher in premarket trading ahead of fresh jobs data that could help gauge the economic impact of Donald Trump's tariffs. Shares of HPE rose nearly 6pc in premarket trading as demand for the company's artificial-intelligence servers and hybrid cloud segment helped it beat estimates for second-quarter revenue and profit. AI chip leader Nvidia rose 1pc, extending gains from early this week. Other chipmakers including Broadcom and Advanced Micro Devices also climbed. The moves came despite the US doubling its tariffs on steel and aluminium imports from 25pc to 50pc. President Trump also raised uncertainty about tariffs as he said Chinese leader Xi Jinping was 'extremely hard to make a deal with'. May was the best month for the S&P 500 index and the tech-heavy Nasdaq since November 2023, thanks to a softening of Trump's harsh trade stance. In premarket trading, the Dow Jones Industrial Average, S&P 500 and Nasdaq 100 were all up around 0.1pc. The FTSE 100 and other European markets remain higher despite the uncertainty around tariffs, leaving fund managers scratching their heads. Amelie Derambure, a portfolio manager at investment giant Amundi, said she was surprised by the relative calm in markets about the threat of tariffs. She said: 'To me there is a clear willingness of markets to believe that at the end of the day the Trump administration will not break US growth.' She warned there could be further shifts in traders' behaviour to come as the tariffs come closer to taking effect. 'I think we can expect some higher volatility in the coming days up to the end of the pause in tariffs,' she said. The price of gold has surged this year amid the turmoil in financial markets. And the jump in bullion has bolstered profits for retailer and lender Ramsdens as more people to 'clear out' their jewellery boxes. The Middlesbrough-based chain, which has 169 UK stores, reported a surge in income from its precious metals buying service and its jewellery shop. Pre-tax profits surged by 54pc to a record £6.1m for the six months to the end of March, compared with the same period last year. Shares rose 6.89pc as it said total revenues rose by 18pc to £51.6m year-on-year. Revenues from buying precious metals were up by nearly a third as 'exceptionally high' gold prices helped increase volumes. Ramsdens buys unwanted jewellery from customers and then either sells it in stores or online, or to a bullion dealer. Gold hit its highest ever price in April, reaching about $3,500 (£2,600) per ounce, with investors flocking to the traditionally 'safe haven' asset as Donald Trump's tariff announcements sparked turmoil in the wider financial markets. Ramsdens chief executive Peter Kenyon said: 'The gold price allows us to pay the customer more, means we make more as well, and also helps pawnbroking a bit with some of the recoveries when people don't pay us back.' Trade talks between the EU and US are moving 'in the right direction' according to the bloc's chief trade negotiator. EU trade commissioner Maroš Šefčovič posted an image alongside US trade representative Jamieson Greer following a meeting in Paris. The pound edged higher as closely watched data confirmed Britain's dominant services sector had rebounded after Donald Trump's tariff shock. Sterling was up 0.1pc against the dollar to $1.353 as PMI figures showed activity expanded among UK private sector businesses in May, having fallen sharply in April. The value of the dollar has edged lower against major currencies amid the looming deadline today from President Trump for tariff deals from US trading partners. Germany's benchmark stock index neared a record high ahead of a first tax relief package aimed at kick-starting growth in Europe's largest economy. The Dax in Frankfurt was up 0.9pc as the German cabinet aims to approve the package today. Chancellor Friedrich Merz's ruling coalition agreed on write-offs of as much as 30pc for companies purchasing movable assets between the end of June this year and January 2028, according to a draft law seen by Bloomberg. Stocks have risen across Europe as today marks the deadline for US trading partners to submit their proposals for deals that might help them avoid Trump's hefty 'liberation day' tariffs from taking effect. The US and China are also expected to talk this week to iron out trade differences, with President Trump posting on social media at 2am that Xi Jinping is 'very tough'. Meanwhile, the European Central Bank is expected to cut interest rates on Thursday after eurozone inflation fell to 1.9pc in May. The FTSE 100 in London was up 0.1pc and the Cac 40 in Paris gained 0.7pc, with miners and technology the biggest risers. Viresh Kanabar, a strategist at Macro Hive, said: 'Our view was that China and Europe would always be the hardest for the US to agree on a tax deal. 'Since Trump walked back his excessive tariffs on China, the markets said, we sort of know the worst case at this stage. If it happens, it will be bad, but it won't be recessionary bad.' Britain's dominant services sector performed better than first thought last month, a closely watched survey showed, as the economy bounced back from the US tariff shock. The S&P Global UK Services PMI registered 50.9 in May, with a reading above 50 indicating growth. This was better than initial estimates of 50.2 and up from April's two-year low of 49 in the wake of Donald Trump's 'liberation day' tariffs. Business optimism rebounded to a seven-month high after the US president announced a 90-day pause to the worst of his global import taxes. However, employment numbers have now fallen for eight months, which is the longest streak since the global financial crisis in 2008-10, outside the pandemic. Tim Moore, economics director at S&P Global, said: 'The service sector regained its poise in May as receding concerns about US tariffs, recovering global financial markets and greater confidence among clients all helped to support output growth. 'Although only marginal, the upturn in service sector activity was stronger than first estimated in May.' Sir Martin Sorrell's marketing business S4 Capital warned that annual revenues are expected to fall as US tariffs cause global economic uncertainty. The group said like-for-like net revenues are expected to drop by low single percentage digits over the full year, having previously said they would remain largely flat on the year before. The group flagged 'wider market uncertainty and significant volatility in global economic policy, particularly as a result of the US-imposed tariffs'. But S4 Capital said it still expects underlying earnings to be 'broadly' similar to 2024, helping shares lift 6pc in early trading. Sir Martin, executive chairman of S4 Capital and previous boss of marketing giant WPP, said: 'The global macroeconomic environment has become even more challenging in 2025. 'Assessing the impact of US-imposed tariffs has been added to the three key risks around US/China relations, Russia/Ukraine and Iran/Middle-East. 'Clients, therefore, are likely to remain cautious.' He said the group would 'continue to focus on our cost base and will take further action to support profitability, if necessary'. The eurozone's dominant services industry contracted last month for the first time since November, according to a closely watched survey, amid rising costs. The HCOB Eurozone Composite PMI showed the private sector barely expanded in May, giving a reading of 50.2, which was its weakest since February. It was down from 50.4 in April but higher than a preliminary estimate of 49.5. PMI readings above 50.0 indicate growth in activity, while those below point to a contraction. Cyrus de la Rubia, chief economist at Hamburg Commercial Bank, said: 'This development is due to a slight decline in activity in the service sector, while manufacturing output showed the same moderate growth as in the previous month.' The services sector saw its business activity index drop to 49.7 from 50.1 in April, signalling a marginal contraction and its first time sub-50 in six months. Global stock markets hit a record high as investors brushed off the turmoil caused by Donald Trump's tariff tirade. The MSCI All Country World Index – which tracks stock markets across the globe – rose 0.2pc to hit 887.73 and tip above its February record high. It comes after healthier than expected job vacancy figures in the US spurred a jump on Wall Street, which led to a rise in Asian and European markets. When or if Donald Trump gets on the phone with Xi Jinping, the tone between the two men is likely to be frosty. The US and China have in recent days both accused each other of violating their fragile, three-week-old trade truce. The two presidents are expected to speak this week in an effort to rescue the deal. But Trump has a tough pill to swallow: it is his arch-rival who looks to have the better negotiating hand. China's near-total dominance of the world's supply of rare-earth metals – which are used in the manufacture of everything from cars and computer chips to F-35 fighter jets and nuclear-powered submarines – means Xi can squeeze the US where it hurts. Donald Trump is waking up to the reality that China will not make a deal without a fight, a fund manager has warned. Jeroen Blokland, founder of the Blokland Smart Multi-Asset Fund, warned that Europe should take note of how the negotiations between the US and China are going: Stock markets in London rose at the open as Britain avoided Donald Trump's hike in steel tariffs. The FTSE 100 was up 0.2pc to 8,804.71 while the mid-cap FTSE 250 gained 0.2pc to 21,048.82 as markets climbed around the world. The leaders of the world's two largest economies may be at loggerheads over tariffs but that is not stopping investors piling into markets. Asian stocks rose overnight and European equity markets are expected to do the same shortly, following gains on Wall Street despite Donald Trump's hiking of steel tariffs. As a result, Barclays raised its price target for the benchmark S&P 500. The bank expects the flagship US stock index to hit 6,050 by the end of the year, up from 5,900 amid easing trade uncertainty and expectations of that earnings will grow at a more regular pace in 2026. This follows forecast increases by Goldman Sachs and UBS Global Wealth Management in May, and a similar move by RBC Capital Markets and Deutsche Bank this week. The new target would mean the index would rise by about 1.3pc from its last close of 5,970.37 points. In May, the S&P 500 logged its best monthly performance since November 2023, rising 6.2pc, after President Trump moderated his stance on tariffs. Barclays expects it to hit 6,700 by the end of 2026. Barclays strategist Venu Krishna said: 'After tariff headwinds are absorbed throughout the remaining quarters of FY25, we expect that 2026 will return to a more normalised pace of earnings growth.' The metals industry has welcomed Donald Trump's decision to keep tariffs at 25pc on British steel and aluminium for now, but warned that 'uncertainty remains' over the final tax rate. The US president has decided to 'provide different treatment' to the UK after a deal that was struck between Washington and London last month, as he doubled tariffs on imports from elsewhere to 50pc. Levies will remain at 25pc for imports of steel from the UK into America, however Britain could still be subject to the higher 50pc rate from July, or the quotas in the agreement could come into force, effectively eradicating the tax. The 50pc tariff rate for imports of steel and aluminium from other nations came into force at 12.01am Washington DC time on Wednesday, shortly after 5am in the UK. The Government said on Tuesday night they were 'pleased' that the industry 'will not be subject to these additional tariffs'. Gareth Stace, the director general of UK Steel, said that Mr Trump's decision is a 'welcome pause'. He added: 'Continued 25pc tariffs will benefit shipments already on the water that we were concerned would fall under a tax hike. 'However, uncertainty remains over timings and final tariff rates, and now US customers will be dubious over whether they should even risk making UK orders. 'The US and UK must urgently turn the May deal into reality to remove the tariffs completely.' Donald Trump said Xi Jinping was 'extremely hard to make a deal with' as the leaders of the world's two largest economies battle over trade. The US president said the Chinese leader was 'very tough' in a post on his Truth Social account today. The White House had said the two leaders would speak this week after President Trump accused China of violating the terms of their trade agreement made in Geneva last month. Beijing responded on Monday by accusing the US of flouting the deal. It comes as today marks the deadline for US trading partners to submit their 'best offer' to avoid punishing import tax rates. At 5am UK time, higher 50pc tariffs on imported steel and aluminium came into effect, although President Trump's executive order excluded Britain from the increase in the duty. Thanks for joining me. Donald Trump said Xi Jinping is 'extremely hard to make a deal with' in the on-going trade stand-off between the world's two largest economies. The White House had said that the two leaders would speak this week after President Trump accused China of violating the terms of their trade agreement made in Geneva last month. Thames Water customers risk £230 rise in bills as rescue deal collapses | Utility's future in doubt after private equity giant KKR abandons £4bn bailout How Labour attacks and a record fine drove Thames Water to the brink | Rescue deal for utilities giant collapses as officials hold bosses to account for failures Miliband urged to save net zero through higher bills in the South | Energy Secretary likely to miss his target unless he backs zonal pricing, Lords warn Council 'staffing crisis' threatens Rayner's housing target, builders warn | Shortages at local authorities blamed for delays in striking key agreements Adam Smith: Families face fresh mortgage pain if Reeves bows to Left-wing rebels | Raising borrowing to satisfy Cabinet colleagues' demands is a decision the Chancellor may live to regret Asian stocks rose and the dollar drifted as higher US tariffs on steel and aluminium took effect, marking the latest chapter in the trade war that has rattled the markets for much of the year. Today also marks the deadline for US trading partners to submit their proposals for deals that might help them avoid Donald Trump's hefty 'liberation day' tariffs from taking effect in five weeks. In Asia, South Korea's stocks and its currency surged as liberal presidential candidate Lee Jae-myung's election victory raised hopes of swift economic stimulus, market reforms and easing policy uncertainty. The benchmark Kospi jumped more than 2pc to its highest since August 2024, putting it on the cusp of entering a bull market. That left the MSCI's broadest index of Asia-Pacific shares outside Japan nearly 1pc higher. Japan's Nikkei rose 0.8pc, while Taiwan stocks jumped 2pc after artificial intelligence behemoth Nvidia boosted US stocks on Tuesday. On Wall Street, the Dow Jones Industrial Average rose 0.5pc, to 42,519.64, the S&P 500 rose 0.6pc, to 5,970.37, and the Nasdaq rose 0.8pc, to 19,398.96. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.452pc, from 4.462pc late on Monday. Sign in to access your portfolio
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Powergrid acquires MEL Power Transmission for Rs 8.53 crore under tariff-based bidding
By Aditya Bhagchandani Published on June 4, 2025, 18:30 IST Power Grid Corporation of India Limited (POWERGRID) on June 4 announced the acquisition of MEL Power Transmission Limited (MPTL) for Rs 8.53 crore, marking another key addition to its transmission network under the Tariff-Based Competitive Bidding (TBCB) route. The acquisition follows POWERGRID's selection as the successful bidder for the project titled 'Transmission System for evacuation of power from Mahan Energen Limited Generating Station in Madhya Pradesh.' The project involves setting up a 400kV double-circuit transmission line and associated bays at the existing Rewa Powergrid substation. MPTL, incorporated on November 19, 2024, by PFC Consulting Limited, was transferred to POWERGRID on a Build, Own, Operate, and Transfer (BOOT) basis. The acquisition includes 10,000 equity shares at par and the company's assets and liabilities, with the price subject to adjustment based on audited accounts. POWERGRID acquired 100% shareholding in MPTL, which aligns with its core business of power transmission. Although MPTL is yet to commence commercial operations, it is expected to play a crucial role in strengthening the evacuation infrastructure for power generation in Madhya Pradesh. Further regulatory approvals, such as the grant of a transmission license and adoption of transmission charges, will be secured from the Central Electricity Regulatory Commission (CERC). Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
