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Yahoo
4 hours ago
- Business
- Yahoo
1 top growth stock up 233% to consider buying in July
Wise (LSE: WISE) is a high-quality UK growth stock that listed in 2021. Unfortunately, its debut coincided with the end of the near-zero interest rate era — a shift that sent richly priced growth shares tumbling. Wise lost more than 60% of its value in 12 months! However, since bottoming out at 311p in July 2022, the stock has surged 233% higher. And it hit a record recently, as more investors turn bullish on the fintech disruptor. Could Wise stock head even higher over the next few years? I believe it can. Here's why. Wise specialises in international money transfers, believing that this should work without borders. In other words, money transfers should work the same internationally as easily as they do domestically. In reality though, there's still a lot of hassle when people and businesses move money across borders. SWIFT payments, for example, typically take a few working days to clear. Fees can be high and opaque. Wise's infrastructure and products aim to improve this clunky process with faster times and lower prices. Approximately 65% of transactions being done by Wise are now completed in under 20 seconds. In the 12 months to 31 March, underlying income jumped 16% to £1.4bn, driven by customer growth, account adoption, and higher interest rates. Active customers grew 21% to 15.6m, more than doubling since 2021. There are a number of things I find attractive about Wise. Firstly, it's going after a massive opportunity. Each year, individuals move around £3trn across borders, and Wise currently handles about 5% of that. Then there are small businesses, where cross-border transfers total roughly £14trn annually. Wise's share here is even smaller, but growing. Add in the enterprise and corporate segments, and the full opportunity balloons to around £32trn a year (yes, trillions!). Now, most of this is not directly within Wise's app ecosystem yet. But the company is building the infrastructure to theoretically move it all. It transferred around £145bn in its last financial year, but aims to one day move trillions and become 'the network for the worldʼs money'. To this end, the firm is linking more deeply into the payment systems of Brazil and Japan, while already handling around 12% of all global remittances to the Philippines. So its scale is only increasing. Another thing I like here is that Wise is run by co-founder Kristo Käärmann. In my experience, the best growth stocks are often run by founders that sacrifice short-term profitability for long-term market share (think Jeff Bezos at Amazon). In Wise's case, the company is obsessed with lowering fees for customers as it scales. It recently dropped its cross-border take rate to 0.53%, from 0.67% the year before. And Wise intends to lower it further in future. As Käärmann explains: 'This strategy of continuously lowering our fees makes it harder for anyone to compete, and it will underwrite the long-term success and growth.' In the near term, there are risks relating to a global economic downturn. That could dampen transaction volumes, meaning fewer people and businesses send money abroad. However, over the long term, I think this stock has all the ingredients to be a big winner. It's currently trading at a reasonable valuation, making it well worth considering. The post 1 top growth stock up 233% to consider buying in July appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Ben McPoland has no position in any of the shares mentioned. The Motley Fool UK has recommended Wise Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025
Novaya Gazeta Europe
15 hours ago
- Business
- Novaya Gazeta Europe
Off the rails. Disused trains, record-low cargo and engine shortages: how the war has impacted Russian Railways — Novaya Gazeta Europe
State-owned monopoly Russian Railways is at a crisis point, the company's worst since the Great Recession almost two decades ago, with freight volumes at a record low due to the combined effects of Western sanctions and dwindling flows of agricultural goods and construction materials. Nevertheless, Russia's rail network is congested, not only with trains rushing to deliver military supplies urgently needed at the front, but with unused carriages. It also critically lacks both the personnel and locomotives required to keep the rail system running smoothly, and these problems only seem to be getting worse. This matters not only because Russian Railways is one of Russia's largest and richest state-owned enterprises, but because railway transport activity is also a bellwether for the wider economy — freight must be moved today in order for business to be done tomorrow. When rail traffic is disrupted, it usually signals that an industrial slowdown is imminent. So what, then, can the dysfunction of Russia's national rail system tell us about the health of the country's economy in 2025? And will Russian Railways be able to get itself back on track any time soon? Tankers at a railway yard in Tobolsk, Tyumen region, Russia, 24 September 2012. Photo: Sergey Ilnitsky / EPA Track record The origins of the national rail service's current crisis can be traced back to February 2022. Within the first 12 months of Russia's invasion of Ukraine, transport flows in two key categories of goods had collapsed. Raw materials, such as timber, ferrous metals, ores and minerals, came under sanction by the West, while international demand for fertilisers — despite being unsanctioned — also fell significantly after Russia's major banks were excluded from the SWIFT international payment system. As the war entered its second year, Russian Railways appeared to be surviving financially, although clear signs of strain had begun to appear. The national rail service had seen total freight transports fall 4% in 2022, marking the worst-ever drop-off since the global financial crisis hit Russia's economy in 2008. However, transport flows stabilised in 2023 as export numbers for non-sanctioned goods recovered. In particular, fertiliser exports rose as global buyers moved quickly to hedge against possible sanctions, while a strong wheat harvest kept Russia's grain flowing steadily to foreign markets, where demand soared amid low prices. All totalled, shipments have now fallen for 20 consecutive months, and the trend is accelerating. But in 2024, the downturn returned, with freight volumes plummeting by 4% once again, and the situation has only worsened so far this year. Grain transportation, one of the biggest drivers of growth in 2023, dropped sharply last year, as did ferrous metal — usually a reliable category of transport — for the first time. The decrease in traffic is partially due to the decline in both steel smelting and exports, which have fallen for 11 months prior to early 2025, primarily due to sanctions. But it also reflects the struggling Russian construction industry, which usually consumes large amounts of steel. In 2025, the number of new residential construction projects has already declined by a quarter, and the government expects the trend to worsen. That means Russian Railways is hauling fewer metals, construction materials, and cement, all of which hurts transport figures. All totalled, shipments have now fallen for 20 consecutive months, and the trend is accelerating. Last year, freight volumes dropped by just over 4%, matching a post-Soviet record. But they have continued to fall by more than 7% in the first five months of 2025 alone, nearly equalling the total decline since the war began, and painting a bleak picture for the future. Photo: Maxim Shipenkov / EPA Freight to firepower There is one transportation item, however, that grew steadily from 2022 to 2024. Labelled vaguely as 'Other goods, including in containers,' Russian Railways does not specify what this category actually entails in its official data, but transport analysts generally believe it refers to military cargo, from ammunition and equipment to materials used in arms production. In fact, the prioritisation of military freight is likely one of the most important reasons for the decline in other categories of haulage. But, as the Russian macroeconomic analysis Telegram channel MMI put it, it is 'a factor that is not customarily spoken about'. North Korean shells are being transported in containers from east to west. Given the state's prioritisation of all things military, it's no surprise that civilian freight volumes have fallen, military expert Yury Fedorov told Novaya Gazeta Europe. 'Clearly, some of the 'other goods' very likely relate to military production — there may be ammunition in the containers. North Korean shells are being transported in containers from east to west. Trains with tanks and artillery are travelling from factories and repair plants to the front and from the front back to the enterprises that repair them.' The exact volume of weapons and ammunition shipments, as well as raw materials for their manufacture to military factories, has, of course, not been disclosed by Russian Railways. Haul or nothing But Russian Railways' falling freight volumes cannot be explained by the uptick in 'other goods'; these figures have also fallen so far in 2025, despite the Russian military's widely anticipated summer offensive in Ukraine. The problem would appear to lie deeper and likely stems from the structure of Russia's rail network, in which few sections operate independently, so when problems arise in one area, they quickly spread to the others. The Western parts of the rail network, on the other hand, now primarily transport military supplies, with little in the way of exports since the imposition of sanctions in 2022. This can happen incrementally due to several factors. Freight traffic to the southern ports of Novorossiysk and Taman has declined, for example, partly because frequent bombings have led to their closure, resulting in fewer ships docking and a sharp drop in dry cargo shipments by rail. The Western parts of the rail network, on the other hand, now primarily transport military supplies, with little in the way of exports since the imposition of sanctions in 2022. Western Russia had continued to export coal, which accounts for one-third of Russian Railways' overall cargo volumes, but those exports have fallen since last year's coal price collapse and the recent appreciation of the ruble made it unprofitable for Russian Railways to transport the cargo. The same phenomenon has also occurred in Russia's Far East, according to Alexander Polikarpov, managing partner at Rollingstock Agency, a Russian consultancy specialising in rail logistics and infrastructure, which means that the company's three key corridors to the global market are now more or less closed to coal exports. Russian servicemen and military equipment at a railway station in the Rostov region, Russia, 23 February 2022. Photo: EPA Trains in vain Two additional problems explain why less freight is being transported. First, Russian Railways lacks sufficient staff due to the war, which has left Russia's economy facing a significant personnel shortage. Some workers have been mobilised and many others have enlisted after being offered significant financial incentives, while many more have simply left the country. According to the company's own figures, Russian Railways currently has a shortfall of approximately 2,500 engineers and around 3,000 locomotive crews, resulting in it being unable to run some 200 trains each day. Second, locomotives are in short supply as well. In fact, according to a survey conducted last year, one-third of Russian industrial enterprises with non-public tracks lack locomotive engines, although Russian Railways has denied that the problem exists. In January–April 2025, the production of mainline electric and diesel locomotives in Russia fell by 13% and 6%, respectively. By contrast, there are plenty of carriages, but this could be causing more harm than good. Shortages of workers and locomotives are causing bottlenecks, as carriages remain stationary for weeks at a time, often blocking traffic. According to internal data collected by Russian Railways, 300,000 wagons had accumulated on the network as of March 2025, almost a fifth of the rail service's entire fleet. Photo: Maxim Shipenkov / EPA Sky-high investment According to estimates made by Russian Railways, the company will need to purchase approximately 1,000 electric and diesel locomotives annually until 2035, as half of its 20,000-strong fleet of locomotives will require replacement by then. At current prices, therefore, it needs to be spending at least 220 billion rubles every year (€2.4 billion) to meet this vital goal. However, despite the fact that its basic tariff rate for transporting goods has been increased over one and a half times, and passenger transportation profits have continued to grow since the start of the war in Ukraine, the operator's net total profits fell threefold in 2024 compared to the previous year. The company's main problem is that it earns relatively little while simultaneously borrowing and spending a lot — though not on the infrastructural improvements it needs. Last year, for example, of the 1.5 trillion rubles (€16.47 billion) Russian Railways allocated for investments, approximately 200 billion (€2.2 billion) was spent buying a skyscraper in the prestigious Moscow-City commercial development to house new office space. Due to this purchase and a drop in profits from the transportation of freight and cargo, projections show that Russian Railways will have to cut 40% — some 600 billion rubles (€6.59 billion) — of its investment budget this year in order to stay afloat, despite its pressing need for more engineers and locomotives. Rolling on empty In some ways, Russian Railways is simply facing the consequences of economic stagnation, which began in late 2024 and is expected to continue until at least 2027. But even if the war in Ukraine ends, sanctions are lifted, and exports to the West resume, it would take years for the state rail monopoly to recover from its deepening crisis. 'Even in the most optimistic scenario of an improvement in the geopolitical situation and the prompt end to the [war in Ukraine], a real effect on rail transportation will still be noticeable for 1.5–2 years,' Rollingstock's Polikarpov writes. This year, the downturn in construction materials is expected to be the most significant drag on overall freight volumes. Coal transport may recover following a disastrous 2024, which, along with fertiliser (which is still not subject to Western sanctions) and container shipments, will drive some growth. But that won't be enough to compensate for lost freight flows, especially not to the extent needed to keep the system afloat. Russian Railways needs cash to buy more locomotives, hire more workers, and invest in basic infrastructure maintenance. To do that, Russian Railways needs cash — to buy more locomotives, hire more workers, and invest in basic infrastructure maintenance. With profits dwindling and debt rising, the company may have only one option left: to persuade the government once again to raise tariffs above the rate of inflation, as it has done every year of the war so far. Yet, even in this strategy there is a paradox. After raising its tariffs, Russian Railways often resorts to offering steep discounts to cargo customers to ensure its trains don't run empty, according to analysts from Russian Telegram channel Lab, which covers the transport industry with a focus on logistics. If this practice continues, the experts warn, Russian Railways could face an even worse scenario and find itself forced to dismantle parts of its rail network entirely — lines for which there is no longer sufficient demand, and which have become too costly to sustain, both for Russian Railways itself and for the economy as a whole.
The Diplomat
3 days ago
- Business
- The Diplomat
Decoding ASEAN's Measured Engagement with BRICS
Following Thailand and Malaysia, Vietnam last month became the third Southeast Asian 'partner country' of BRICS. BRICS partnership, an extended cooperation mechanism established at the grouping's Kazan Summit in October 2024, allows countries to engage with the grouping in a flexible manner. In addition to these three nations, Indonesia in January became the first nation in Southeast Asia to attain full membership in BRICS. Why did Bangkok, Kuala Lumpur and Hanoi only join BRICS as 'partner countries' while Indonesia was determined to seek full BRICS membership? By pursuing partner status, Thailand, Malaysia, and Vietnam are walking a fine line between BRICS and the West, which remain at odds on many important issues. With 10 full members and 10 partner countries across three continents, BRICS now accounts for 40 percent of global gross domestic product (GDP), positioning it as a powerful platform for countries seeking to reduce their dependence on the West. Thailand, Malaysia, and Vietnam –all of which pursue foreign policies aimed at strategic balance – fit this profile. Thailand pursues 'proactive diplomacy,' opening to collaboration with 'all sides.' Prime Minister Paetongtarn Shinawatra recently underlined the importance of engaging with global economic institutions, including BRICS, to boost the country's economy. Malaysia considers its economy as 'highly open' and maintains a 'neutral' foreign policy. Hence, joining BRICS is a vital step towards diversifying the country's economic relations. Meanwhile, Vietnam remains committed to 'bamboo diplomacy' – an overarching foreign policy strategy rooted in multi-alignment, multilateralism, and strategic autonomy. Hanoi's partnership with BRICS allows it to lay low geopolitically while enhancing its ability to 'influence international affairs' through the bloc, via 'forums and meetings that facilitate dialogue, cultural exchange, and cooperation' in security and economic matters. However, BRICS partnership is not a risk-free endeavor. Heavily influenced by Russia and China, the bloc is advancing a de-dollarization agenda aimed at challenging U.S. financial dominance. In the wake of the Ukraine war and Russia's SWIFT exclusion in 2022, Moscow has pushed BRICS members to advance this agenda by building an alternative international payments platform, thereby strengthening BRICS' role in the global financial and monetary system. In 2024, Russia announced a series of initiatives – including the BRICS Pay e-payment system, the BRICS Bridge cross-border payment platform, and the BRICS Grain Exchange – as part of its broader efforts to establish an independent economic and financial framework relatively immune from Western influence. But a vision of a single BRICS currency and the bloc's efforts to reduce Western dominance are stoking anger in Washington, with President Donald Trump threatening to impose a 150 percent tariff on products from BRICS nations should they continue attempting to undermine the U.S. dollar. Trump's warning makes full BRICS membership a highly precarious choice for the three developing countries. An economic alignment with BRICS through full membership could put Thailand, Malaysia, and Vietnam's efforts to deepen economic ties with the U.S. and other Western partners at risk. The stakes are even higher as all three countries are still negotiating with the Trump administration to reduce the 'reciprocal' tariffs in early April. During Trump's 'liberation day' tariff announcement, Thailand was hit with a 36 percent tariff, Malaysia 24 percent, and Vietnam 46 percent, and all three nations are under pressure to reach agreements before the new tariff rates take effect on July 8. In this context, pursuing full BRICS membership could derail their ongoing negotiations with Washington. Partner status, which entails limited voting and decision-making power within BRICS, may offer a lower-risk alternative for these countries. Moreover, full BRICS membership is unlikely to offer substantial additional economic benefits for the three countries, which already have or are negotiating free trade agreements (FTAs) with most major BRICS economies: with China through the ASEAN-China Free Trade Area and the Regional Comprehensive Economic Partnership, with India through the ASEAN-India Free Trade Area, with the United Arab Emirates (UAE) through the Comprehensive Economic Partnership Agreement (Thailand and UAE are on the fourth round of negotiation for a bilateral FTA ), and Indonesia through the ASEAN Free Trade Area. All of this raises the question of why Indonesia decided to seek full BRICS membership, a step that former President Joko 'Jokowi' Widodo was hesitant to take . At the BRICS Summit in 2023, Widodo received an invitation from BRICS leaders for Indonesia to join the bloc as a full member, but he declined the invitation. First, Indonesia has explicitly communicated its ambition to expand its influence beyond ASEAN by engaging with larger multilateral mechanisms. As Southeast Asia's leader in key geoeconomic indicators, including GDP, population, and land area, Indonesia is the only Southeast Asian member of the G-20. Since 2024, the country has also set its sights on becoming the first Southeast Asian nation to join the Organization for Economic Co-operation and Development, aiming to achieve membership within the next two or three years. Thus, it is not surprising that BRICS has been on Jakarta's radar. Indonesia's 'bebas-aktif' (free and active) foreign policy provides a strong foundation for deepening its engagement with multilateral organizations in both the Global North and South. Second, Indonesia's decision to join BRICS also reflects clear economic reasoning. Membership in BRICS serves as a stepping stone for Jakarta's efforts toward membership of the New Development Bank (NDB), the bloc's strategic lending vehicle. As the Indonesian government is seeking funding for its stalled capital relocation project, access to NDB's infrastructure loans could provide the country with much-needed fiscal relief. Moreover, BRICS membership enhances Indonesia's economic alignments with Global South states, particularly those in the Middle East – a region of growing strategic interest for President Prabowo Subianto's administration. Following Jakarta's official accession to BRICS in January, Prabowo conducted a week-long visit to the Middle East in April, securing a $10 billion investment commitment from the UAE for Indonesia's newly established sovereign wealth fund, Danantara, and establishing a strategic partnership with Egypt. In addition, despite Western sanctions on Iran, Jakarta has maintained robust trade ties with Tehran and has signed a preferential trade agreement that includes a provision for barter-style payments. At last year's BRICS Summit in Kazan, Malaysia's Economy Minister Rafizi Ramli discussed the potential for deeper ASEAN–BRICS cooperation, noting that Malaysia – as chairman of ASEAN in 2025 – saw 'tremendous synergies between ASEAN and BRICS.' This message echoes the broader strategic ambitions of ASEAN countries in strengthening their engagements with the bloc and suggests that, when engaging with external actors, ASEAN member states – regardless of their individual political and economic status – do not act in isolation, but instead seek input and coordination with their regional counterparts. Nonetheless, the four ASEAN countries must engage with BRICS in a pragmatic and cautious manner, because there is no such thing as a free lunch. While BRICS membership and partnership presents a range of strategic opportunities, it also entails costs and could 'bring pitfalls in the short term, if not carefully managed.' These countries now face heightened vulnerability amid escalating strife between BRICS and Western powers to shape the global order and global economic governance. To maintain their non-aligned stances, Jakarta, Hanoi, Bangkok, and Kuala Lumpur must remain cautious of political coercion, economic overdependence, and the risk of being drawn into a BRICS-or-West rivalry. The good news, however, is that the U.S and other Western countries have thus far refrained from opposing these ASEAN states' deepening engagement with BRICS, suggesting a degree of strategic tolerance. Moving forward, what matters most is how these four countries calibrate their level of participation in BRICS initiatives to make the most of the group's economic clout while carefully avoiding being perceived as taking sides.
Roya News
5 days ago
- Business
- Roya News
EU extends Russia sanctions to January 2026
The European Union has formally extended its sectoral sanctions against Russia for another six months, pushing their expiration date to January 31, 2026, in response to Moscow's ongoing war in Ukraine. EU foreign policy chief Kaja Kallas announced the move on June 30 via X, stating: 'The EU today officially agreed to extend sectoral sanctions on Russia. We will continue to pile pressure on Moscow to end its war in Ukraine. Each sanction weakens Russia's ability to wage war.' The EU today officially agreed to extend sectoral sanctions on Russia. We will continue to pile pressure on Moscow to end its war in Ukraine. Each sanction weakens Russia's ability to wage war. — Kaja Kallas (@kajakallas) June 30, 2025 A source familiar with the process told European Pravda that all 27 EU member states approved the extension through a written procedure. Sanctions cover key sectors Originally imposed in 2014 following Russia's annexation of Crimea, the sanctions were significantly broadened in 2022 after the full-scale invasion of Ukraine. The current measures span across trade, finance, energy, dual-use goods, technology, industry, transport, and luxury items. They also include: A ban on seaborne imports of Russian oil and certain oil products The disconnection of multiple Russian banks from the SWIFT payment system The suspension of broadcasting licenses for several Kremlin-backed media outlets in the EU Provisions to combat sanctions evasion EU reaffirms united front A written statement issued by the European Council on Monday confirmed the extension, citing Russia's continued destabilization of Ukraine. 'The Council today renewed the EU restrictive measures in view of the Russian Federation's continuing actions destabilising the situation in Ukraine for a further six months,' the statement said. The renewal comes amid reports that Hungary recently secured a US waiver on sanctions that had blocked construction of the Russian-backed Paks II nuclear power plant. Despite such exceptions, the EU maintains a largely united stance on maintaining pressure against Moscow.
Hi Dubai
5 days ago
- Business
- Hi Dubai
Dubai Secures SIBOS 2029 as UAE Strengthens Global Financial Standing
Dubai has been selected to host SIBOS 2029, one of the world's premier financial services events, reaffirming the UAE's status as a global banking and payments hub. Organised annually by SWIFT, the Society for Worldwide Interbank Financial Telecommunication, SIBOS brings together over 10,000 leaders from banks, fintech firms, and financial institutions. Dubai's selection reflects international confidence in the UAE's digital transformation, innovation in payments, and leadership in financial infrastructure. The UAE Banks Federation (UBF), in coordination with key partners including Dubai International Financial Centre, Dubai World Trade Centre, and the Dubai Department of Economy and Tourism, played a pivotal role in securing the bid, with the support of the Central Bank of the UAE. UBF Chairman Abdulaziz Al-Ghurair said the decision underscores the UAE's growing reputation as a centre for global dialogue on financial innovation, secure banking systems, and modern payment infrastructure. This will be the second time Dubai hosts the prestigious event, having previously done so in 2013—the first Middle East and Africa destination to do so. Since then, the UAE has deepened its role in global financial connectivity through initiatives such as the SWIFT User Training Centre and the region's first National SWIFT User Group, launched in 2021. Jamal Saleh, UBF Director-General, called the hosting a milestone reflecting the UAE's progress in digital payments and alignment with international standards, powered by the National Payment Systems Strategy initiated in 2019. SWIFT EMEA CEO Marianne Demarchi welcomed the return to Dubai, praising its strategic location and role in fostering industry-wide dialogue. News Source: Emirates News Agency
