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North America
CNBC Economy

China posts slowest quarterly growth since 2022 as investment slumps, fanning stimulus calls

China's economy in the second quarter expanded at its weakest pace since the fourth quarter of 2022, reinforcing calls for policy stimulus as an accelerating slide in investments deepened the strain on growth, while consumption stayed subdued. Gross domestic product growth came in at 4.3% in the April to June period, data from the National Statistics Bureau showed Wednesday, missing economists' forecast for 4.5% growth in a Reuters poll, and slowing from 5% in the first quarter. That second-quarter growth came below Beijing's full-year growth target range of 4.5% to 5%, the least ambitious goal in decades, amid tensions with trade partners, including the U.S. and the European Union, and sluggish domestic demand. Given the disappointing growth, Tianchen Xu, senior economist at Economist Intelligence Unit, expects stimulus measures to be ramped up in the third quarter, including a policy rate cut to stimulate investment demand. Urban fixed-asset investment, including real estate development and infrastructure projects, declined 5.7% in the first six months from a year earlier, worse than expectations for a 4.9% drop in a Reuters poll. Xu attributed the steepening investment slump to local governments channeling resources into debt restructuring and a shortage of eligible projects in the pipeline. "Boosting infrastructure investment will be a key focus for stabilizing growth." Beijing's campaign to rein in excess capacity and end bruising price wars will also weigh on private investment in the near term, said Sarah Tan, economist at Moody's Analytics. The investment in real estate, infrastructure and manufacturing plunged 18%, 2.4% and 1.2%, respectively, according to the official data. In June, China's retail sales grew 1%, rebounding from a 0.6% drop in the prior month and exceeding economists' forecast for a 0.1% fall. Retail sales in May posted their first monthly decline since late 2022, dragged down by tepid demand and merchants' steep discounting. Industrial output expanded 5.3% in June from a year ago, stronger than the forecast 4.7% growth, and gaining pace from 4.5% expansion in May. Chinese economy has grappled with a deepening supply-demand imbalance. Robust industrial production and exports tied to the global AI investment boom continue to power headline growth, even as consumption and private investment weakens amid a prolonged property downturn and volatile energy prices. The statistics bureau noted "acute" imbalance between excess supply and sluggish demand, urging policymakers to step up "counter- and cross-cyclical adjustments."

China posts slowest quarterly growth since 2022 as investment slumps, fanning stimulus calls
North America
Yahoo Finance

Inflation Risks Flare Up Ahead of Crucial Week for Wall Street

Federal Reserve interest-rate hikes are back in focus this week, thanks to rising inflation concerns following another surge in crude-oil prices. The U.S. and Iran traded fresh strikes over the weekend, and continued to dispute control of oil and energy flows through the Strait of Hormuz, after the breakdown of peace talks aimed at ending a conflict that has simmered for more than 4½ months. U.S. Central Command said around 140 Iranian targets were hit, while military officials from Tehran launched strikes on U.S. bases in the Gulf region, as well as a Kuwait-owned drilling installation.

Inflation Risks Flare Up Ahead of Crucial Week for Wall Street
Asia
The Economic Times

14 penny stocks plunge up to 70% in 3 months. Are you affected?

Over the past three months, 15 penny stocks have witnessed sharp corrections, with declines ranging from 25% to 70%. These underperformers were identified through a screen focusing on stocks with a market capitalisation below Rs 1,000 crore, a share price under Rs 20, and a minimum recent trading volume of 5 lakh shares. The screen highlights low-priced, relatively liquid penny stocks that have come under significant selling pressure during this period. (Data Source: ACE Equity)Although penny stocks often attract investors with their low entry prices and potential for rapid gains, they come with substantial risks. Due to low liquidity, high volatility, and limited transparency, they are prone to manipulation and sudden price drops. Without a clear strategy and strong risk controls, investors may face more losses than gains.

14 penny stocks plunge up to 70% in 3 months. Are you affected?
Europe
The Guardian

‘Laws were broken’: multistate effort to stop Paramount’s $111bn merger heads to court

Rob Bonta, California’s attorney general, holds a press conference about the lawsuit against the mega-merger next to the Hollywood sign in Los Angeles, California, on Monday. Photograph: Daniel Cole/ReutersView image in fullscreenRob Bonta, California’s attorney general, holds a press conference about the lawsuit against the mega-merger next to the Hollywood sign in Los Angeles, California, on Monday. Photograph: Daniel Cole/ReutersMedia‘Laws were broken’: multistate effort to stop Paramount’s $111bn merger heads to courtAttorneys general from 12 states are suing to block the Paramount-Warner Bros deal they say violates antitrust law A last-ditch effort to block the merger between Paramount Skydance and Warner Bros Discovery (WBD) is heading to court as 12 Democratic state attorneys general attempt to stop the $111bn deal they say violates antitrust law and reduces competition in both the film and cable television industries. The lawsuit, which was filed on Monday, faces a crucial hearing on Friday to determine if a judge will temporarily pause the deal or allow it to continue toward approval. The merger was already approved by the Department of Justice in June. California’s attorney general, Rob Bonta, who is leading the suit, told the Guardian on Thursday he was optimistic about their chances in court. The lawsuit argues that the merger violates the Clayton Act, a federal antitrust law that prohibits illegal market concentration. “In our complaint, it’s really clean, clear, concise,” he said. “It’s precise with the data points that we’ve shared and courts have traditionally accepted exactly those types of arguments and that kind of data as a basis for finding a merger to be presumptively unlawful.” Bonta said he was “disappointed” that no Republican attorneys general signed on to the Paramount case, though he was able to form a bipartisan coalition that has been successful at temporarily blocking the merger of the television conglomerates Nexstar and Tegna. “I hope it’s not because of any pressure from the head of the Republican party, Donald Trump, on any those Republican entities, because antitrust cases should be non-partisan or bipartisan,” he added. “They’re just about free and fair markets, and I think we all agree on that.” Washington state’s attorney general, Nick Brown, said he was surprised by the volume of constituents who contacted his office to express concern about the merger, which would lead to less competition among film distributors and streaming services and could lead to higher prices for consumers. New Jersey’s attorney general, Jennifer Davenport, agreed that the top concern was higher prices and fewer content choices for consumers. “We just knew that it was bad for New Jerseyans,” Davenport said. “This is more important than ever that we fight for the competition in the industry, because we are seeing it as just another component of rising costs in our state.” The concerns raised in the lawsuit, including the potential for reduced competition, are particularly relevant for New Jersey, which has seen a wave of recent investment by major studios and entertainment companies thanks to generous tax credits. Netflix plans to invest $1bn to create a new production facility in Fort Monmouth, New Jersey, while Lionsgate is building a dedicated production facility in Newark. Paramount, the defendant in the case, is slated to serve as the anchor tenant for a 58-acre facility called 1888 Studios.

‘Laws were broken’: multistate effort to stop Paramount’s $111bn merger heads to court
Asia
The Hindu BusinessLine

Think. Over the week

The most important topic for analysis in our Editorial section last week was the protests in Jantar Mantar over the NEET exam paper leaks led by the Cockroach Janta Party. Our Editorial came down hard on the Delhi Police’s crackdown on protestors and the Centre’s apathy in handling the crisis. To restore confidence, systemic reforms and fixing of accountability at all levels will be required, argues the Editorial. The National Investment Policy 2026 (NIP 2026) that aims to bridge the huge deficit in urea supplies was another key issue dissected in our Editorial section. It analyses why private sector is reluctant to enter the urea sector, given its humongous regulatory controls. For attract private sector investments, deep rooted reforms are necessary, argues the Editorial. The recently concluded FIFA World Cup was another topic discussed. Spain’s justified victory was hailed so was the performance of the smaller nations such as Cabo Verde, and DR Congo, which was aided by in no small measure by the expanded 48-team format. However, some of the off-field controversies, -- visa and travel restrictions, treatment of Iran and entry denial of a Somalian referee, steep ticket prices – cast a shadow on the football extravaganza, says our Editorial. In his weekly column, TCA Srinivasa Raghavan talks about how the actions of the three most powerful leaders in the world – Donald Trump, Xi Jinping and Vladimir Putin will impact the not only geopolitics but also the global economy. The Indian economy is also set for a bumpy ride and it will need to improve its tax collections and raise personal and corporate taxes to deal with the impending crisis. In an article titled, ‘Grim economics of exam leaks’, Anushi Tiwary and Peddi Dayakar look at the perverse incentives of exam paper leaks. They argue that as long as the huge wage gap between for government job or a medical career and private jobs exists there will be little incentives for leaks to be plugged. Nishant Sahdev in his article ‘Coming to grips with rare earths’, discusses the key role that refining plays in the rare earths economy and why China is ahead in this game. 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.

Think. Over the week
North America
CNBC Finance

Chipotle is opening its first restaurant in Mexico

Fast casual chain Chipotle is set to open its first restaurant in Mexico this week, the company announced on Monday. The store will open on Thursday in San Pedro Garza García, Nuevo León, part of the Monterrey metropolitan area. Chipotle said the opening is part of the Mexican food chain's previously announced partnership with restaurant group Alsea. Thursday's opening will be the first of a larger rollout of restaurants in Mexico, including an expansion into Mexico City in 2027, according to Chipotle. "We are entering Mexico with deep respect for the country's culinary heritage and a commitment to delivering the Chipotle experience with excellence," CEO Scott Boatwright said in a statement. "Our research has reinforced our belief that there is strong interest in high-quality, freshly prepared food served with the customization and convenience that Chipotle offers." Chipotle plans to open an additional 350 to 370 new restaurants this year as it works to regain growth after a stagnant year and entice customers with new menu offerings. International expansion through partnerships is a piece of that strategy. The company said it chose the Monterrey area because of its "strong economy, growing population and status as one of [Mexico's] leading business and innovation hubs." The new restaurant will feature the same menu as its existing U.S. locations. Chipotle and Alsea signed the Mexico development agreement last year as the U.S. chain breaks into the market. The company currently operates more than 4,100 stores worldwide, including in countries across the Middle East and Europe. Get this delivered to your inbox, and more info about our products and services. Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Chipotle is opening its first restaurant in Mexico
Asia
The Hindu BusinessLine

US tariff threat drags Nifty Pharma 1.3% lower at close; Lupin, PPL Pharma lead decline

Pharma stocks closed sharply lower on Wednesday after the United States proposed steep tariffs on generic drug imports, with the Nifty Pharma Index ending 340 points, or 1.31 per cent, down at 25,752 against a previous close of 26,092. Eighteen of the index’s 20 constituents closed in the red, with trading volume reaching 315.07 lakh shares and a total traded value of ₹3,584.98 crore for the session. The selloff was triggered by a phased US tariff proposal that would keep generic medicines duty-free until August 1, 2028, before imposing a 100 per cent tariff from August 2028 and a 200 per cent tariff from August 2029. India exports approximately $8–9 billion worth of pharmaceutical products to the US annually, the bulk of which are generics. Lupin was the session’s worst performer, closing down 4.35 per cent, followed by PPL Pharma at 4.20 per cent, Ajant Pharma at 3.25 per cent, and Auropharma at 2.96 per cent. Dr. Reddy’s fell 2.16 per cent, Gland Pharma 2.20 per cent, and Sailife 2.77 per cent. Sun Pharma, the index heavyweight, declined 0.91 per cent. Torntpharm was nearly flat at -0.01 per cent, while only Divi’s Laboratories and Abbott India managed gains, closing up 0.78 per cent and 0.35 per cent respectively. Analysts were quick to note that the policy’s eventual implementation is far from certain. Param Desai, Research Analyst at PL Capital, pointed out that “Trump’s term ends in January 2029, while the major tariff impact begins from August 2028, so the eventual implementation remains uncertain if there is a change in administration.” He added that the announcement carried “considerable ambiguity around how these tariffs will actually be implemented.” For patients and healthcare systems in the US, the proposal carries its own concerns. Bharat Celly, Equity Research Analyst at Equirus Securities, warned that the tariffs “could raise the cost of low-priced medicines and, in shortage-prone categories, increase the risk of supply disruptions rather than drive reshoring.” He noted that the proposal “runs counter to the intent of the Hatch-Waxman framework, which was designed to reduce drug prices through greater generic competition.” The practical challenge of shifting manufacturing to the US within the proposed two-year window is significant. Celly explained that transferring a drug to a US facility requires “site transfer filings, process validation, stability data, and FDA approval for each ANDA,” adding that “the cost and timeline of re-registering products significantly exceed the proposed transition period.” Several large Indian generic manufacturers do already operate US-based facilities, which could partially offset the impact. Celly’s overall assessment: “We view the proposal primarily as a negotiating tool, given that implementation is deferred until August 2028, beyond the next US election cycle,” with no near-term earnings impact expected, though sentiment and valuation multiples could face pressure. Against this international backdrop, the domestic pharmaceutical market continues to show strength. India’s pharmaceutical market is projected to grow 11.3 per cent in 2026, up from 8.1 per cent in 2025, and is expected to expand from $60.3 billion to $79.7 billion by 2031. The Nifty Pharma Index, despite Wednesday’s decline, remains above its 50-day moving average of 24,800 and its 200-day moving average of 23,100, and closed within striking distance of its 52-week high of 26,135. Mayank Jain, Market Analyst at Share.Market by PhonePe, noted that the India-UK Free Trade Agreement, which eliminates duties on Indian pharma entering the UK, is expected to drive an 8–10 per cent increase in UK-bound exports next year, offering an alternative export channel as companies assess the US tariff situation. The index has returned 15.44 per cent over the past year and 13.78 per cent year-to-date. Wednesday’s session touched an intraday low of 25,545 before recovering to close at 25,752, suggesting some buying emerged at lower levels even as the broader sentiment remained cautious. 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.

US tariff threat drags Nifty Pharma 1.3% lower at close; Lupin, PPL Pharma lead decline
North America
CNBC Finance

Paramount, WBD hit with lawsuit from 12 states, including California, to block merger

A group of 12 state attorneys general filed a lawsuit Monday challenging Paramount Skydance's proposed acquisition of Warner Bros. Discovery. The lawsuit, which came after weeks of speculation on if and when it would be filed, seeks to block the merger on antitrust concerns. CNBC's David Faber reported earlier in the day that the lawsuit was expected to come on Monday. The merger deal would combine two storied film studios — Paramount and Warner Bros. — as well as streaming platforms Paramount+ and HBO Max. Paramount CEO David Ellison has previously said the streaming services would become one following the transaction. Led by California Attorney General Rob Bonta, the lawsuit, which was filed in the U.S. District Court for the Northern District of California, is also brought forth by attorneys general of Arizona, Colorado, Connecticut, Massachusetts, Minnesota, Nevada, New Jersey, New Mexico, New York, Oregon, and Washington. "The unlawful merger of these two entertainment behemoths would lead to higher prices, lower quality, and less content for film and television, harming movie theaters, basic cable distributors, and ultimately, audiences on every sofa and movie theater seat in the U.S.," Bonta said in a release. In a lengthy statement released on Monday, a Paramount spokesperson called the lawsuit a "misrepresentation of competition in the entertainment industry today," adding that it plans to "vigorously defend the transaction and demonstrate that this challenge is inconsistent with sound competition policy and the competitive realities of the media marketplace." "Delaying this transaction will only harm entertainment workers who have already suffered over recent years as technology has disrupted their livelihood and cost California tens of thousands of entertainment jobs," Paramount's statement continued. The lawsuit filed Monday raised concerns about the size of the combined company, adding that the merged entity would control nearly one-third of films and nearly a third of basic cable TV programming. The attorneys general asked Warner Bros. and Paramount not to close the merger until after the judicial process concludes and threatened to file a temporary restraining order if they didn't comply. On Monday, Bonta held a news conference in front of the Hollywood sign in Los Angeles reiterating the points made in the lawsuit. "This merger would snuff out competition, drive up prices, diminish content quality, and produce fewer movies and shows each year," Bonta said during the event. "We have antitrust laws and merger controls for a reason, because competition is the lifeblood of a healthy and vibrant economy." Paramount countered in Monday's statement, saying that the merger would "create a stronger, well-capitalized, creative-first media company that is better positioned to compete with companies like Netflix that have come to dominate the industry for audiences, premium content, and creative talent. Put simply, any attempt to block this transaction undermines the very principles antitrust law is designed to promote: more competition, more choice for consumers, and more opportunities for creators and workers."

Paramount, WBD hit with lawsuit from 12 states, including California, to block merger
North America
CNBC Finance

The AI boom just found two new winners: Goldman Sachs and JPMorgan Chase

American megabanks on Tuesday gave evidence that the global artificial intelligence boom isn't just benefiting tech giants and chip makers. Goldman Sachs and JPMorgan Chase each posted record quarterly revenue hauls, fueled by massive gains in equities trading and investment banking. Behind the surge in activity — Goldman revenue jumped 39% to $20.3 billion, while JPMorgan saw it rise 27% to $58 billion — is the fact that AI is "everywhere in financial markets," JPMorgan CFO Jeremy Barnum told reporters. "These are booming environments with a ton of activity, big IPOs, big index rebalancing, a lot of activity in Asia," Barnum said Tuesday. "A lot of it is downstream of the AI theme, writ large on a global basis. It's just a very, very, very active environment." The quarter showed that the AI boom is creating winners far beyond Silicon Valley. While Nvidia and hyperscalers including Alphabet have captured many of the headlines, Goldman, JPMorgan and other banks are profiting from the massive flows of capital into AI. They are advising on AI-related deals, financing data centers and power infrastructure, underwriting debt and equity offerings, and facilitating the surge in trading that has accompanied the global race to deploy the technology. That is creating "a ripple effect" across the American economy and giving banks a flood of new opportunities to provide financing and trading solutions across public and private markets, Goldman CEO David Solomon told analysts Tuesday. "We are in the middle of an AI capex super cycle where there are demands on financing in every single financing instrument, in every region of the world and across every single industry," Solomon said. Capex is short for capital expenditures, or investments made by a business for physical assets like factories. Goldman is preparing for a three-to-five year investment cycle that is still in its early stages, he told analysts. While the AI buildout isn't new, what's changed is that it has broadened out beyond chips and software to include power providers and infrastructure players. The top beneficiaries of this trend are the three biggest Wall Street firms: Goldman Sachs, JPMorgan and Morgan Stanley, according to Wells Fargo banking analyst Mike Mayo. The AI investment boom "reached a tipping point" in the second quarter, Mayo said.

The AI boom just found two new winners: Goldman Sachs and JPMorgan Chase