Australian shares touch record high ahead of RBA's rate decision
ADVERTISEMENT The S&P/ASX 200 index was up 0.1% at 8,852.20, as of 0124 GMT, after touching an all-time high of 8,867.60 earlier in the session.
The Reserve Bank of Australia is widely expected to slash its key cash rate by 25 basis points later in the day, a Reuters poll showed, after a benign inflation print and bleak unemployment data suggested the need for a less restrictive monetary policy.
Investors will be keenly watching the decision, after the RBA left its key borrowing rate unchanged last month in a surprise decision, citing the need for more data to confirm inflation was slowing.
"Given the rise in the unemployment rate, core inflation nearing the midpoint of the RBA's target, and sluggish GDP growth, the case for a rate cut today is significantly stronger than the argument to keep rates on hold," IG market analyst Tony Sycamore said. Banks advanced 0.7% to a near one-week high, with all "Big Four" banks rising between 0.7% and 1.7%.
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The Commonwealth Bank of Australia will report its full-year results on Wednesday before the market opens. Westpac and ANZ will also announce their quarterly results later this week.
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Discretionary stocks rose 0.5%, led by a 5% rise in JB Hi-Fi. Star Entertainment jumped 29.2% after reaching a deal with its Hong Kong-based partners to sell its 50% stake in the A$3.6 billion ($2.35 billion) Brisbane resort.
ADVERTISEMENT The mining index was largely flat, while gold stocks shed 0.1%. Energy stocks inched lower, while tech stocks rose 0.4%. Meanwhile, New Zealand's benchmark S&P/NZX 50 index rose 0.2% to 12,937.55. ($1 = 1.5347 Australian dollars).
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Hindustan Times
14 minutes ago
- Hindustan Times
Trump's Tariffs Stymie India's Bid to Steal Manufacturing From China
Since President Trump's first term, companies grappling for trade certainty have clung to one guiding principle: move production out of China. But months into the president's global tariff barrage , that doesn't always looking to diversify their supply chains saw India's vast population, its strengthening ties with Washington, and its abundance of engineers and scientists as a good hedge against China. But then Trump—who has been trying to pressure President Vladimir Putin into ending Russia's war on Ukraine—grew angry with India over the country's purchases of Russian oil. In recent weeks, Trump has slapped a 25% tariff on Indian imports and has threatened to double that by the end of this month. In that case, tariffs on India would match the roughly 50% duties the U.S. now charges on Chinese goods. That has left companies that have moved production to India scrambling to respond. 'All the effort that we put up over the last four to five months is suddenly up in the air,' said Rohin Malhotra, the chief technology officer of Posha, a Silicon Valley-based maker of countertop cooking robots that had been working to shift production from China to India. The company, whose robots are programmed to cook meals with prepped ingredients, has now put those plans on hold as it waits to see if the 50% tariff sticks. 'It's just wasted effort to think of an alternative destination for now,' he said. India has worked hard in recent years to attract businesses that decided to diversify away from China—a strategy dubbed 'China Plus One.' Indian authorities have worked to ease the thicket of regulations and modernize the country's infrastructure, both of which have hindered business investment in the past. The push has, in some cases, paid off handsomely, bringing in much-needed investment. For instance, Apple began shifting a large chunk of its iPhone production from China to India about a decade ago. India produced about 14% of Apple's iPhones in 2024, according to technology research firm TechInsights, up from zero nine years earlier. (The Trump administration has exempted iPhones from most tariffs.) But now, uncertainty over U.S. trade policy reigns. Some hope that Trump will lower the India tariffs after he meets with Putin later this week. At the same time, the U.S. and China are still in talks to determine the final level of tariffs. Other countries that have lured businesses away from China, like Vietnam and Malaysia, have been assigned tariff rates of around 20%. It is uncertain whether those tariffs are low enough for companies to justify the disruption of moving supply chains from China. Moreover, Trump intends to charge higher levies on so-called transshipped products, or those assembled in third countries with some Chinese components. However, the exact mechanism of such tariffs is unclear. 'Instead of a smooth 'China+1' diversification, many are now in 'China+None of the Above' mode,' unsatisfied with any of their options, wrote Mark Morgan, president of global commercial operations at Kinaxis, a supply-chain company. Liz Andarcia, co-founder of Rise Collective Consultants, a supply-chain consulting firm that has helped retailers shift production out of China, said some companies are hoping to wait a couple of weeks before making big moves. Still, she is working with one client—whose production is heavily concentrated in India—to shift some sites to Pakistan and Turkey. 'We're just fast-tracking those now, like pedal to the metal,' she said. India's purchase of Russian oil has angered President Trump. It's a difficult period for Serenial Technology, an Indian company setting up a contract manufacturing site in Dharwad, India. Renaud Anjoran, a co-owner, said U.S. clients who were eager to have their electronics products made in Dharwad are now indicating that they'll wait to see what happens with tariff rates before committing. 'It just threw a huge wrench in our plans basically,' he said. Many of his clients will stick with China, he said. All the tariff uncertainty has whipsawed Radhika Patil, the CEO and cofounder of Cradlewise, a Silicon Valley-based maker of cradles that soothe babies back to sleep. Cradlewise only began commercial sales five years ago, but it has already moved manufacturing twice, first from China to Vietnam, and last year from Vietnam to India. The company set up manufacturing in Pune, an industrial hub in western India that has traditionally produced cars. Patil said he was drawn to India because it is a strong base for raw materials, so that she wouldn't be reliant on imported parts. 'We just wanted to build more predictability into the supply chain,' she said. Instead, the tariffs are now forcing her to consider raising U.S. retail prices for her cribs by around $200, a step she has previously avoided out of fear of spooking customers. Moving production to the U.S. would be tricky, she said. Besides higher labor costs, the company would also have to contend with tariffs on imported components. Patil said it has been a stressful time. 'This was a sudden shift,' she said. 'Fifty percent—and overnight—is very difficult to absorb.' Write to Jon Emont at
Business Standard
39 minutes ago
- Business Standard
Indices shift into high gear as inflation speed bumps fade; Nifty closes above 24,600
The domestic equity benchmarks advanced on Wednesday, tracking positive global cues and buoyed by upbeat domestic inflation data. The Nifty closed above the 24,600 mark, with gains led by healthcare and metal stocks. Sentiment was lifted after India's retail inflation eased to an eight-year low, stoking hopes of a revival in discretionary spending, while softer U.S. retail inflation strengthened expectations of a Federal Reserve rate cut in September. Globally, optimism improved on the extension of China's tariff deadline and easing crude oil prices. Investors remained watchful of uncertainties surrounding U.S. trade policy and the Trump-Putin meeting on August 15. The S&P BSE Sensex advanced 304.32 points or 0.38% to 80,539.91. The Nifty 50 index jumped 131.95 points or 0.54% to 24,619.35. Apollo Hospitals Enterprise (up 7.90%), Bharat Electronics (up 2.25%) and HDFC Bank (up 0.48%) boosted the Nifty higher. The broader market outperformed the frontline indices. The S&P BSE Mid-Cap index rose 0.56% and the S&P BSE Small-Cap index rose 0.58%. The market breadth was positive. On the BSE, 2230 stocks rose, 1864 fell, while 162 remained unchanged. The NSE's India VIX, a gauge of the market's expectation of volatility over the near term, shed 0.75% to 12.14. Numbers to Track: The yield on India's 10-year benchmark federal paper shed 0.15% to 6.473 from the previous close of 6.483. In the foreign exchange market, the rupee edged higher against the dollar. The partially convertible rupee was hovering at 87.4350 compared with its close of 87.6300 during the previous trading session. MCX Gold futures for 3 October 2025 settlement rose 0.30% to Rs 100,455. The US Dollar Index (DXY), which tracks the greenback's value against a basket of currencies, was down 0.41% to 97.67. The United States 10-year bond yield fell 1.28% to 4.253. In the commodities market, Brent crude for October 2025 settlement added 36 cents or 0.54% to $65.76 a barrel. Global Market: The US Dow Jones index futures are currently up by 139 points, indicating a positive start for US stocks today. European shares advanced while Asian markets ended higher on Wednesday as the latest U.S. inflation data raised hopes that the Federal Reserve could cut interest rates next month. In Japan, a report showed manufacturers grew more confident about business conditions after a trade agreement with the United States. The monthly poll, which tracks the Bank of Japan's quarterly Tankan business survey, reportedly showed the manufacturers' sentiment index rising to plus 9 in August from plus 7 in July, marking a second straight month of improvement. Further, Japan's annual wholesale inflation slowed for the fourth straight month in July, data showed on Wednesday, underscoring the central bank's view that upward price pressure from raw material costs will dissipate. The corporate goods price index (CGPI), which measures the price companies charge each other for their goods and services, rose 2.6% in July from a year earlier, data showed, slowing from the previous month's 2.9% increase. It compared with the widely reported median market forecast for a 2.5% rise. US stocks ended higher on Tuesday as inflation data was tamer than expected, soothing investor fears that tariffs are not spiking prices. The trading session saw the S&P 500 and tech-heavy Nasdaq Composite close at fresh record highs. The S&P 500 added 1.1% to settle at 6,445.76, while the Nasdaq ended 1.4% higher at 21,681.90. The Dow Jones Industrial Average added about 483 points, or 1.1%, to close at 44,458.61. A widely followed measure of inflation accelerated slightly less than expected in July on an annual basis. The US consumer price index increased a seasonally adjusted 0.2% for the month and 2.7% on a 12-month basis, the Bureau of Labor Statistics reported Tuesday. Excluding food and energy, the core CPI increased 0.3% for the month and 3.1% from a year ago. The monthly core rate was the biggest increase since January, while the annual rate was the highest since February. Thursdays producer price index report on wholesale inflation will add another piece of the economic picture. The report comes ahead of the Feds Jackson Hole meeting on Aug. 21-23, which could also help shape expectations for the central banks next policy move. Stocks in Spotlight: FSN E-Commerce Ventures (Nykaa) jumped 4.93% after the company reported 79% rise in consolidated net profit to Rs 24 crore on a 23% increase in revenue from operations to Rs 2,155 crore in Q1 FY26 as compared with Q1 FY25. Honasa Consumer spurted 6.15% after the company's consolidated net profit rose 2.6% year-on-year to Rs 41 crore in Q1 FY26, supported by steady margins and higher sales. Sequentially, net profit jumped 65.4% from Rs 25 crore in Q4 FY25. Revenue from operations increased 7.4% year-on-year to Rs 595 crore from Rs 554 crore in Q1 FY25. On a sequential basis, revenue grew 11.7% from Rs 534 crore in Q4 FY25. Landmark Cars soared 11.15% after the company reported a 117.3% rise in consolidated net profit to Rs 6.91 crore on a 27.6% increase in revenue from operations to Rs 1,061.72 crore in Q1 FY26 over Q1 FY25. One 97 Communications (Paytm) surged 3.07% after its wholly-owned subsidiary, Paytm Payments Services Limited (PPSL), received in-principle authorisation from the Reserve Bank of India (RBI) to operate as an online payment aggregator. Apollo Hospitals Enterprise jumped 7.90% after the company reported 41.80% surge in consolidated net profit to Rs 432.80 crore on 14.87% increase in revenue from operations to Rs 5,842.10 crore in Q1 FY26 over Q1 FY25. Hindalco Industries rallied 5.09% after the companys consolidated net profit rose 30% year-on-year to Rs 4,004 crore in Q1 FY26 from Rs 3,074 crore in Q1 FY25. Revenue from operations grew 13% to Rs 64,232 crore from Rs 57,013 crore a year earlier. Oil & Natural Gas Corporation (ONGC) advanced 1.46% after the company reported a 24.44% increase in standalone net profit to Rs 8,024.23 crore in Q1 FY26 as against Rs 6,448.28 crore reported in Q4 FY25. National Securities Depository (NSDL) dropped 6.42%. The company reported a 24% rise in standalone net profit to Rs 82.6 crore on a 19.5% increase in revenue from operations to Rs 161 crore in Q1 FY26 as compared with Q1 FY25. Minda Corporation rose 4.21% after its consolidated net profit edged up 1.7% year-on-year to Rs 65 crore in Q1 FY26 from Rs 64 crore in the same quarter last year. Sequentially, net profit jumped 25.5% from Rs 52 crore in Q4 FY25. Operating revenue rose 16.2% year-on-year to Rs 1,386 crore from Rs 1,192 crore, and was up 4.9% compared with Rs 1,321 crore in the March quarter. NIBE slipped 5.80% after the companys consolidated net profit dropped 75.97% to Rs 1.90 crore in Q1 FY26, compared to Rs 7.91 crore posted in Q1 FY25. Revenue from operations fell 25.04% to Rs 82.50 crore in Q1 FY26, down from Rs 110.06 crore in the same quarter last year. NMDC Steel hit an upper circuit of 20% after the company reported consolidated net profit of Rs 25.56 crore in Q1 FY26, compared with a net loss of Rs 547.25 crore in Q1 FY25. Revenue from operations jumped 66.36% YoY to Rs 3,365.22 crore in Q1 June 2025. Suzlon Energy declined 4.33% after the companys consolidated net profit tanked 72.56% to Rs 324.32 crore on 17.39% decline in revenue from operations to Rs 3,117.33 crore in Q1 FY26 over Q4 FY25. Pearl Polymers surged 3.72% after the company reported a net profit of Rs 2.89 crore in Q1 FY26, up 124% from Rs 1.29 crore in Q1 FY25, and a reversal from a net loss of Rs 4.43 crore in Q4 FY25. Revenue from operations stood at Rs 4.92 crore, down 7.69% YoY from Rs 5.33 crore, though it slipped 21% from Rs 6.23 crore in Q4 FY25. Other income rose 42.95% YoY to Rs 4.46 crore from Rs 3.12 crore, compared with a loss of Rs 1.51 crore in Q4 FY25. Shri Keshav Cements & Infra (SKCIL) surged 10.41% after the company's net profit jumped 73.6% year-on-year to Rs 3.09 crore in Q1 FY26 from Rs 1.78 crore in Q1 FY25. Total income rose 32.53% to Rs 41.40 crore from Rs 31.24 crore a year earlier. IPO Update: Bluestone Jewellery and Lifestyle received bids for 4,44,99,717 shares as against 1,65,14,421 shares on offer, according to stock exchange data at 16:24 IST on Wednesday (13 August 2025). The issue was subscribed 2.69 times. Regaal Resources received bids for 53,60,38,416 shares as against 2,09,99,664 shares on offer, according to stock exchange data at 16:24 IST on Wednesday (13 August 2025). The issue was subscribed 25.53 times.
Time of India
41 minutes ago
- Time of India
Perplexity AI offers Google $34.5 bn for Chrome browser
Perplexity AI offered Google on Tuesday $34.5 billion for its popular Chrome web browser, which the internet giant could potentially be forced to sell as part of antitrust proceedings . The whopping sum proposed in a letter of intent by Perplexity is nearly double the value of the startup, which was reportedly $18 billion in a recent funding round. "This proposal is designed to satisfy an antitrust remedy in highest public interest by placing Chrome with a capable, independent operator focused on continuity, openness, and consumer protection," Perplexity chief executive Aravind Srinivas said in the letter, a copy of which was seen by AFP. Google is awaiting US District Court Judge Amit Mehta's ruling on what "remedies" to impose, following a landmark decision last year that said the tech titan maintained an illegal monopoly in online search . US government attorneys have called for Google to divest itself of the Chrome browser , contending that artificial intelligence is poised to ramp up the tech giant's dominance as the go-to window into the internet. Google has urged Mehta to reject the divestment, and his decision is expected by the end of the month. Google did not immediately respond to a request for comment. Perplexity's offer vastly undervalues Chrome and "should not be taken seriously," Baird Equity Research analysts said in a note to investors. Given that Perplexity already has a browser that competes with Chrome, the San Francisco-based startup could be trying to spark others to bid or "influence the pending decision" in the antitrust case, Baird analysts theorized. "Either way, we believe Perplexity would view an independent Chrome -- or one no longer affiliated with Google -- as an advantage as it attempts to take browser share," Baird analysts told investors. Google contends that the United States has gone way beyond the scope of the suit by recommending a spinoff of Chrome, and holding open the option to force a sale of its Android mobile operating system. "Forcing the sale of Chrome or banning default agreements wouldn't foster competition," said Cato Institute senior fellow in technology policy Jennifer Huddleston. "It would hobble innovation, hurt smaller players, and leave users with worse products." Google attorney John Schmidtlein noted in court that more than 80 percent of Chrome users are outside the United States, meaning divestiture would have global ramifications. "Any divested Chrome would be a shadow of the current Chrome," he contended. "And once we are in that world, I don't see how you can say anybody is better off." The potential of Chrome being weakened or spun off comes as rivals such as Microsoft, ChatGPT and Perplexity put generative artificial intelligence ( AI ) to work fetching information from the internet in response to user queries. Google is among the tech companies investing heavily to be a leader in AI, and is weaving the technology into search and other online offerings.
