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Europe
BBC Business

Stick to spending limits, PM and chancellor tell ministers in joint memo

Chancellor John Healey and Prime Minister Andy Burnham have written a joint letter to cabinet ministers telling them they must stick within their existing spending limits while funding new pledges. After taking office, Burnham announced a host of new cost-of-living policies, including scrapping of VAT from domestic electricity bills, reduced business rates for pubs, and capping bus fares in England. Burnham and Healey are determined to stick within the fiscal rules set out by their predecessors Sir Keir Starmer and Rachel Reeves, treasury sources have told the BBC. Healey's first Budget will be on 28 October and will be "built on fiscal discipline", the chancellor said. Healey said the budget would "meet our fiscal rules" and "give businesses and families some of the stability they need to plan for the future". A report in the Times says the joint letter told ministers they must "within the budgets they have already got" even while "pay[ing] for new things they want to do this year and next". While the ongoing war in Iran is pushing up inflation and borrowing costs, senior Treasury sources confirmed the government is determined to stay "well within the fiscal rules" inherited from Sir Keir Starmer and his chancellor Rachel Reeves. But Burnham has said his government will stick to Labour's fiscal rules on spending and borrowing as well as the party's 2024 manifesto pledges not to increase income tax, VAT or national insurance contributions. He also said he will honour the fiscal rules imposed by Reeves, which include a pledge to balance day-to-day spending with tax revenues by the end of the decade. An influential think tank said earlier this week that the prime minister only has a small margin of error to do this, and that Healey may have to cut spending or raise taxes to meet Burnham's policy priorities such as such as extra defence spending and better social care. Healey was Defence Secretary under Keir Starmer, but resigned after a row over defence spending commitments - saying he was "certain" that Britain should lift its spending to 3% by 2030. Questioned about funding on Thursday, Burnham's Defence Secretary Wes Streeting repeatedly refused to commit to that target.

Stick to spending limits, PM and chancellor tell ministers in joint memo
North America
Yahoo Finance

Nasdaq, S&P 500, Dow Futures Rise As Iran Pause Eases Oil Fears Ahead Of Big Tech Earnings, Fed Meeting: ORCL, NVDA, VG, DEL In Focus

U.S. stock futures moved higher in overnight trading on Sunday after the United States and Iran paused military strikes over the weekend, sending oil prices sharply lower. Investors also turned their attention to a busy week ahead, with earnings from four “Magnificent Seven” companies and the Federal Reserve’s July policy meeting expected to drive market sentiment. U.S. stock markets ended mixed on Friday, with the Nasdaq Composite declining 0.64% at close, while the S&P 500 and the Dow Jones Industrial Average closed up 0.05% and 0.46% higher, respectively. All three major indexes clocked declines as the conflict between the U.S. and Iran increased oil prices and dragged markets lower. The Nasdaq led the declines, falling more than 2% last week, while the S&P 500 and Dow indexes fell about 0.61% and 0.38%, respectively. While the Nasdaq and S&P 500 declined for a second consecutive week, the Dow notched a third streak of declines. Investors will be watching capital spending plans closely as concerns over heavy AI spending resurfaced after Alphabet Inc.'s (GOOG, GOOGL) results last week, stoking concerns about whether the increasing spending can translate into meaningful growth. The earnings updates could also set the tone for semiconductor stocks, which have been among the biggest beneficiaries of the AI investment boom. For context, the VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) have gained two out of four weeks this quarter. Meanwhile, oil prices are on the decline overnight following a week of steep climbs, with Brent crude prices topping $100 a barrel last week. Over the weekend, Iran has reportedly said it will pause its own ​attacks against the U.S. as long as the American military does the same. U.S. Ambassador to the United Nations Mike Waltz told the media on Sunday that U.S. President Donald Trump has decided to pause U.S. strikes on Iran to provide additional time for diplomatic efforts. Brett Erickson, managing principal at Obsidian Risk Advisors, however, warned on X that “Trump in no way is indicating that he’s close to accepting reality and agreeing to a deal that is realistic AND seeing it through. There is a huge difference between ‘not recklessly escalating’ and ‘making the necessary concessions to end the war’.” Meanwhile, on the economic front, personal consumption expenditures price index for June, and second-quarter gross domestic product growth are expected from the Bureau of Economic Analysis. Additionally, the Federal Reserve is scheduled to meet later this week to decide on its July policy. According to the CME FedWatch tool, the probability of a rate hike in the session is at 36.3%, up from 12.8% a week ago. Oracle Corp. (ORCL): Shares of the hyperscaler jumped onto the retail radar amid reports that Nvidia Corp. (NVDA) is in conversation to provide a roughly $250 billion backstop for OpenAI as part of a massive data-center project. Oracle has a major AI infrastructure partnership with OpenAI.

Nasdaq, S&P 500, Dow Futures Rise As Iran Pause Eases Oil Fears Ahead Of Big Tech Earnings, Fed Meeting: ORCL, NVDA, VG, DEL In Focus
Asia
The Hindu BusinessLine

Share of insured bank deposits slips below 40% in value terms in FY26

Following the crisis in several cooperative banks in recent times, concerns are rising that the money investors park in banks is not adequately insured. A businessline analysis of Deposit Insurance and Credit Guarantee Corporation (DICGC) data revealed that in FY26, the value of insured deposits as a share of total assessable deposits, slipped below 40 per cent for the first time since the deposit limit for insurance cover was increased to ₹5 lakhs in February 2020. The proportion of bank accounts that remained fully protected, however, stayed above 97 per cent. DICGC has been operating the deposit insurance scheme since 1962. If a covered bank fails, DICGC protects up to ₹5 lakh per depositor per bank, including interest. This limit applies to all of ones savings, current, fixed and recurring deposits in that one bank, taken together. The value of insured deposits accounted for 39.7 per cent of assessable deposits in FY26, down from 41.5 per cent in FY25. The decline extends a longer-term trend since the high of 50.9 per cent recorded in 2020, following the enhancement of the deposit insurance limit to ₹5 lakh from ₹1 lakh. Since then, rapid growth in deposit balances, in a limited number of accounts, appears to have outpaced the insured portion of deposits, pulling the ratio lower each year. According to Madan Sabnavis, chief economist at Bank of Baroda, “the higher denominator is due to bulk deposits which are large and hence the ratio is low. If there were more retail deposits, it would be higher.” When asked if RBI should think about increasing the insured deposit limit once again, he said, “there is a need to evaluate the size of retail deposits. Bulk is kept for short tenures.” Another banking expert said that the average deposit size for the retail customer is ₹1.43 lakh. Therefore, it could be at least five to six years before RBI considers increasing the insured deposit limit. The share of fully protected accounts remained overwhelmingly high at 97.38 per cent in FY26, only marginally lower than 97.56 per cent in FY25 and 97.78 per cent in FY24. Deposit insurance claims admitted but not paid rose to ₹997 crore in FY26, the highest level ever. This marks a sharp turnaround from the post-pandemic low of ₹181 crore in FY23, suggesting that admitted claims are accumulating faster than they are being settled. According to Vivek Iyer, partner at Grant Thornton Bharat, “the rise in admitted but unpaid deposit insurance claims are primarily driven by administrative delays in distressed cooperative banks, scheduled commercial banks and incomplete depositor data.” He further explained, “these admitted funds often fail to reach depositors immediately due to various reasons such as delayed submission of list by liquidators, incorrect or incomplete depositor data, failure to submit claim consent forms and active litigation and asset freezes.”

Share of insured bank deposits slips below 40% in value terms in FY26
Asia
The Hindu BusinessLine

Government clarifies UPI users will not be charged, says MDR may apply to select merchants

The government on Saturday clarified that UPI users will not face any transaction charges, while indicating that a Merchant Discount Rate (MDR), if introduced, would be restricted to a limited set of merchant transactions above a specified threshold. It said the proposed amendment to the Payment and Settlement Systems Act was only an enabling provision and did not amount to the blanket imposition of charges on UPI transactions. In a statement, Finance Ministry said, “Consumers making payments will not face any transaction charges” and that “all Person-to-Person transactions will continue to be free of charge.” It further clarified that if MDR is introduced, it would apply only to “a limited set of merchant transactions, above a certain threshold, at a nominal rate, far lower than debit or credit card MDRs.” Finance Ministry also sought to make clear that the proposed framework would not result in a blanket charge on merchants. “The vast majority of the transactions will remain free of charge for merchants on UPI. MDR, if introduced, will only be threshold based and not blanketly levied to all,” it said. The clarification comes amid a political row over the Taxation and Other Laws (Amendment) Bill, 2026, which proposes to amend Section 10A of the Payment and Settlement Systems Act, 2007. The amendment has drawn criticism from Congress leader Jairam Ramesh, who has questioned the removal of the statutory zero-MDR protection and argued that government assurances cannot substitute for a legal safeguard. Finance Minister Nirmala Sitharaman had earlier hit back at Ramesh, saying MDR, if introduced, would apply to merchants and not ordinary users. She had also rejected the suggestion that UPI users would have to pay for transactions. The Ministry on Saturday said the decision on whether MDR should actually be introduced would come later. “Once the Parliament passes the Taxation and Other Laws (Amendment) Bill, 2026... the ‘UPI and Services Steering Committee’ headed by NPCI will decide on the MDR, if any,” it said. Defending the amendment, the Ministry said it was intended to ensure the long-term sustainability of UPI amid rapidly rising transaction volumes and the need for continued investment in cybersecurity, fraud prevention and infrastructure. “Reliance on subsidies alone is not viable for the next wave of growth,” it said, arguing that a balanced framework was needed to keep UPI “robust, inclusive, and future-ready.” The government also rejected suggestions that external pressure was behind the proposed changes, calling such reports “unfounded, completely false and misleading.” It said the amendment should instead be viewed in the context of making India’s digital payments infrastructure sustainable and competitive. Reiterating its position, the Ministry said, “UPI will remain free for citizens” and that there would be “no charges on everyday transactions on citizens.” Any future MDR, it said, would be nominal and restricted to a limited set of merchant transactions. UPI processed 2,366 crore transactions worth ₹29.9 lakh crore in July 2026 alone, according to the government. The platform is also operational in 11 foreign countries. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Government clarifies UPI users will not be charged, says MDR may apply to select merchants
Asia-Pacific
The Straits Times

Singdollar to widen gap with regional currencies; stronger currency could weigh on exports: Analysts

MAS said on July 27 that it will increase “very slightly” the rate of appreciation of the Singapore dollar’s trade-weighted value. SINGAPORE – The Singapore dollar is expected to continue strengthening against regional currencies, including the yen, in 2026, after the central bank surprised markets by tightening monetary policy for the second consecutive time since April. The Monetary Authority of Singapore said on July 27 that it will increase “very slightly” the rate of appreciation of the Singapore dollar’s trade-weighted value, allowing it to strengthen against an undisclosed basket of currencies. While a stronger Singdollar would lower import costs and boost Singaporeans’ spending power abroad, it could also increasingly hurt exporters if regional currencies remain weak. Zavier Wong, market analyst at eToro, said: “When we look at our neighbours, many are moving in the opposite direction by holding softer currencies to protect their own exports... Whatever room is left for the Singdollar to run will get amplified against that sort of backdrop.” He added that further policy tightening could not be ruled out, as MAS expects inflation to remain elevated, which could keep the Singdollar strong. “MAS has always tried to weigh two things against each other here and that is, keeping imported inflation in check versus keeping exports competitive,” he said. “A persistently strong Singdollar helps the former and hurts the latter. There is no getting both at once.” While the widening gap between the Singdollar and its regional peers is not yet a major concern, this could still erode Singapore’s price competitiveness over time, as trade effects filter through the economy, said Wong. Oriano Lizza, sales trader at CMC markets, is expecting the Singdollar to remain one of Asia’s strongest currencies over the next 12 months. But rather than expecting a one-way appreciation story, investors should anticipate more nuanced currency moves, driven by country-specific fundamentals, diverging central bank policies and the global growth outlook, he said. The Japanese yen is among the regional currencies expected to remain volatile against the Singapore dollar, despite intervention by Japan and the US to support the currency.

Singdollar to widen gap with regional currencies; stronger currency could weigh on exports: Analysts
Europe
BBC Business

Trump administration bans new Chinese humanoid robots

The Trump administration on Tuesday announced a ban on new foreign-made humanoid robot imports to the US over "unacceptable risks" to America's national security. The move applies to advanced robots - including humanoid and four-legged machines. Many of them are made in China, which is competing with the US to develop robotics and artificial intelligence (AI). The Federal Communications Commission (FCC) also banned imports of power inverters - devices used in data centres and solar panels - which it said could also pose a risk to the US economy. The Chinese embassy in Washington said Beijing has long opposed the US' "politicising" of trade issues and sanctions based on "groundless pretexts". FCC chairman Brendan Carr said the agency was doing its part "to secure America's critical supply chains". The FCC has added the items to its Covered List - a register of goods and services that are deemed a risk to US national security. The ban applies to new foreign-produced advanced robotic devices and power inverters and does not prevent the sale or import of any existing models that had been previously authorised by the FCC. The FCC cited concerns that the use of foreign-made inverters could allow overseas firms to turn them off, steal data, facilitate remote access and surveillance by "foreign government actors, or be otherwise exploited through a cyberattack." It added that the use of robots made outside the US could allow "malign actors to surveil Americans, enhance the capabilities of foreign intelligence services, or to remotely commandeer the robots." The Chinese embassy in Washington also said Beijing will "take all necessary measures" in response to any moves that harm its interests, urging all countries to work together to develop AI "for the positive and for good". It called on the US to "abandon its hegemonic mindset, and stop smearing Chinese companies and threatening them with sanctions." The BBC has contacted major Chinese robot manufacturers Unitree, UBTech and AgiBot for comment.

Trump administration bans new Chinese humanoid robots
Asia
The Hindu BusinessLine

Has coffee become the most misunderstood agricultural product in India?

Over the past decade, India has embraced specialty coffee with remarkable enthusiasm. Our cities are home to a new generation of cafés, consumers are becoming increasingly discerning, and conversations around brewing methods, roast profiles and café experiences have become far more common. Specialty coffee is no longer a niche category; it is steadily becoming part of the mainstream. That is an exciting evolution. But I believe the next chapter is even more important. India has built a vibrant café culture. Now we have an opportunity to build a true coffee culture. Coffee is one of the few agricultural products where consumers are increasingly willing to pay more for quality, yet many of the factors that create that quality—origin, variety, altitude and processing—remain largely invisible to the people enjoying it. Unlike many agricultural products, coffee is experienced only at the very end of its journey. By the time it reaches the consumer, it has already been cultivated, harvested, processed, roasted and brewed. Much of what ultimately defines the cup has happened before it ever reaches a café. Its flavour and character are shaped by countless decisions made throughout cultivation and production. Altitude influences acidity. Soil contributes sweetness and structure. Climate affects the pace of ripening. Processing transforms flavour. Every harvest reflects a unique combination of geography, weather and human judgement developed over months of cultivation. Consider wine. We naturally discuss vineyards, grape varieties, vintages and regions because we recognise where and how a wine is produced fundamentally shapes what ends up in the glass. Even with mangoes, we celebrate Alphonso, Dasheri or Banganapalli because we understand that each growing region imparts its own distinct character. Too often, conversations still revolve around strength, bitterness or caffeine. While those characteristics have their place, they reveal only a small part of what makes one coffee different from another. As curiosity grows around where coffee is grown, how it is processed and what gives each cup its distinctive character, value begins to shift towards quality. Better coffee commands greater value. Producers are encouraged to innovate. Farmers are rewarded for craftsmanship rather than volume. Consumers don’t simply enjoy better coffee—they help create a stronger coffee ecosystem. We are one of the world’s leading coffee-producing nations, yet much of the conversation still centres on cafés rather than the extraordinary agricultural heritage behind every cup. India’s specialty coffee movement has done far more than introduce new brewing methods. It has encouraged people to ask different questions. Where was this coffee grown? How was it processed? Why do two coffees from the same variety taste completely different? How does geography shape flavour?

Has coffee become the most misunderstood agricultural product in India?
Asia
The Hindu BusinessLine

DPIIT signs 5 MoUs to expand digital, cloud and investment support for startups

The Department for Promotion of Industry and Internal Trade (DPIIT) has signed five strategic Memoranda of Understanding (MoUs) with industry leaders and ecosystem enablers to expand access to digital infrastructure, technology, mentorship, investment and global markets for startups, the Ministry of Commerce and Industry said in a release. The partnerships with Cashfree Payments, Darwin Dynamics, Vultr India, Cars24 Services and the Council for Startup India (CSI) are aimed at strengthening the support available to DPIIT-recognised startups and helping them scale sustainably, the ministry said. Under the partnership with Cashfree Payments India, eligible startups will get access to secure and scalable payment and payout solutions, identity verification and risk management services, along with preferential onboarding support and commercial benefits. The collaboration will also include founder workshops, mentoring sessions, AI buildathons, hackathons and knowledge-sharing programmes covering digital payments, compliance, fraud prevention, KYC, cross-border transactions and emerging technologies. DPIIT's partnership with Vultr India will focus on improving access to cloud computing resources and digital infrastructure. Eligible startups will have access to cloud credits, preferential pricing and technical support, along with training on cloud computing, storage, databases, Kubernetes, networking and application deployment. The MoU with Darwin Dynamics will seek to expand entrepreneurship opportunities in Tier II, Tier III and rural regions through mentorship, institutional networks, market opportunities and capacity-building support. It will also promote innovation in areas including clean energy, green hydrogen, artificial intelligence, climate technologies and advanced manufacturing. Under the partnership with Cars24 Services, startups in the mobility and automotive technology ecosystem will receive support through founder mentorship, mobility and autotech skilling, AI-focused technology enablement, innovation challenges and hackathons. The collaboration will also facilitate investment evaluation and ecosystem engagement.Meanwhile, the MoU with CSI will focus on investment readiness, corporate engagement, CFO matchmaking, global market access and international innovation collaborations. CSI will also support startups in governance, financial readiness, compliance and international expansion. The ministry said the partnerships are expected to improve startups' access to technology, finance, mentorship and commercial opportunities while strengthening India's innovation-led and globally competitive startup ecosystem. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

DPIIT signs 5 MoUs to expand digital, cloud and investment support for startups
Asia
The Hindu BusinessLine

Can agricultural waste become India’s next commodity?

Every year, India generates 350 million tonne of agricultural waste - from paddy straw and sugarcane bagasse to coconut husks, banana stems, rice husk, cotton stalks and arecanut waste. Much of it is burnt, dumped or left to decompose, contributing to air pollution, greenhouse gas emissions and resource loss. Yet these same materials are increasingly finding value as inputs for packaging, construction materials, bioenergy, textiles, compost, biochar and recycled products. The opportunity is to create organised markets that connect farmers with industries seeking sustainable raw materials. If India succeeds, agricultural residue could become an additional and dependable source of rural income while accelerating the country’s transition to a circular economy. This aligns with India’s ambitious circular economy vision, which aims to transform agricultural waste into wealth, projecting a $2 trillion market by 2050, while creating an estimated 10 million jobs. The economic potential is already visible in emerging biomass markets, where the average factory-gate price paid by pellet and briquette manufacturers for agro-residue ranges between ₹2 -2.5 per kg (₹2,000 - 2,500 per tonne) (CSE, 2020). These prices vary significantly depending on the type and quality of crop residue, but demonstrate the potential for agricultural waste to become an additional revenue stream for farmers when supported by organised collection and aggregation systems. Many residue streams already have proven commercial applications. Paddy straw is being converted into engineered boards and low-carbon building materials. Sugarcane bagasse is being used to make plates, bowls and cutlery, while press mud is emerging as a feedstock for compressed biogas, biofertilisers and ethanol production. Rice husk and arecanut leaves are being transformed into compostable tableware, banana pseudostems into natural fibres for textiles and composites, and coconut husks, coco pith and coir into horticultural products, geotextiles and other value-added materials. Sawdust and agricultural biomass are also increasingly used to manufacture biomass pellets that substitute coal in thermal power plants. Agricultural residue also holds immense value beyond manufacturing. Crop residues can be composted to return nutrients to the soil, reducing dependence on chemical fertilisers. Technologies that convert paddy straw into biochar are creating opportunities to improve soil health while generating carbon credits by preventing open burning. Every tonne of residue utilised replaces virgin materials, avoids emissions and keeps valuable resources circulating within the economy. Emerging innovations are also exploring biomass as a feedstock for hydrogen and other renewable fuels. According to the Ministry of New and Renewable Energy, India’s agricultural residues have the potential to generate more than 18,000 MW of power annually. Despite these opportunities, the biggest challenge is not technology but the absence of organised markets. Unlike grains or cotton, agricultural residue lacks aggregation systems, quality standards, transparent pricing and reliable buyer networks. Industries struggle to secure consistent supplies, while farmers often have no viable market for residues beyond local informal buyers. Without dependable demand, burning or dumping frequently remains the easiest option. Building agricultural residue markets, therefore, requires a robust ecosystem centred on aggregation. Village-level collection centres can consolidate biomass from multiple farmers, remove contaminants, reduce moisture, bale material and ensure year-round supply for industries. Standardised quality specifications for parameters such as moisture, ash content and fibre characteristics would provide confidence to buyers while enabling farmers to receive better prices for higher-quality material. In island regions such as Andaman and Lakshadweep, transporting bulky biomass such as tender coconut husks over thousands of kilometres is economically unviable. Instead, local aggregation combined with decentralised processing can create opportunities for artisans, rural enterprises and small industries while retaining value within local economies. The broader impact extends beyond waste management. Once agricultural residue is recognised as a commodity rather than a disposal problem, it creates new revenue streams for farmers, employment in collection and processing, and reliable feedstock for emerging green industries. It also reduces stubble burning, lowers emissions, strengthens resource efficiency and supports India’s renewable energy and climate goals. India already possesses the technology and industrial demand to unlock this opportunity. The missing piece is the market architecture - aggregation centres, quality standards, logistics, financing and buyer networks that can organise millions of tonnes of dispersed biomass into dependable supply chains. Treating agricultural residue as an economic resource rather than agricultural waste could transform a seasonal environmental challenge into one of India’s most significant rural and green economy opportunities. Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments. We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.

Can agricultural waste become India’s next commodity?