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Asia
The Hindu BusinessLine

Apple suffers worst rout since 2025 on disappointing outlook

Apple Inc. suffered its worst stock decline in 16 months after component shortages weighed on the company’s sales forecast, signaling that industrywide supply constraints are taking a bigger toll than anticipated. Revenue will rise 9 per cent to 11 per cent in the fiscal fourth quarter, which runs through September, the company said on a post-earnings conference call Thursday. Analysts had estimated growth of more than 12% in the period, which is likely to be the debut quarter for the next iPhone models. Apple has been struggling to secure enough computer processors and counter fast-rising memory costs, a situation that forced the company to raise prices on Macs and iPads last month. The supply crunch has also led to extended wait times on key computers like the Mac mini and Mac Studio. On the call, Chief Executive Officer Tim Cook said constraints would affect more Macs, iPhones and iPads in the current quarter. Currency fluctuations are hampering growth as well. The disappointing forecast sent Apple shares down 7.4 per cent to $308.91 in New York on Friday, their biggest single-day drop since April 3, 2025. Cook likened the memory cost issue to a “100-year flood,” while adding that the chip shortages were fueled by higher-than-expected demand for the iPhone and Mac. He specifically cited consumer interest in the iPhone 17 line and MacBook Neo, a new low-cost laptop. Apple also said services growth would decelerate in the September quarter. And it warned of an impact from regulatory changes to its App Store business model in the European Union and elsewhere. New legislation allows developers to collect subscription payments directly, bypassing Apple’s fee. Gaming revenue was softer than anticipated, too. In addition, the tech giant’s results showed weaker-than-expected revenue in China and from services during the June quarter. China sales amounted to $18.8 billion, short of the $19.6 billion estimated by some analysts. Revenue from services grew a disappointing 12 per cent to $30.7 billion, compared with a $31.4 billion projection. That business includes Apple Music, the App Store, iCloud subscriptions, streaming video and other digital offerings. The quarter serves as a swan song of sorts for Cook, who will hand the reins to hardware head John Ternus on Sept. 1. Cook, Apple’s leader since 2011, diversified the product lineup and increased annual sales to nearly half a trillion dollars. The stock had been up 23% this year heading into the results, outpacing many tech peers. Apple had temporarily reclaimed its title as the world’s most valuable company in recent days — overtaking Nvidia Corp. — in part because it was seen as a safe haven from runaway AI spending. After briefly approaching the $5 trillion mark this month, the company’s current market value is now $4.5 trillion. The iPhone, Apple’s biggest moneymaker, was a bright spot last quarter. The product’s revenue rose 22 per cent to $54.3 billion during the period, topping estimates of $53.6 billion. The numbers suggest that demand remains solid for the iPhone 17 series launched last September. The company also rolled out a new low-end 17e model in March.

Apple suffers worst rout since 2025 on disappointing outlook
Asia
The Hindu BusinessLine

Q1 Results Today Live: DLF, UPL, Torrent Power, IREDA, KEI, Escorts Kubota, Jindal Stainless, Ather, Inox, Nazara, KIMS, MobiKwik, Texmaco, DOMS Q1 results today, Bajaj Finserv, ITC, Urban Company shares gain, Muthoot Finance, Sun Pharma, Persistent Systems in red after Q1

Business people using pen,tablet,notebook are planning a marketing plan to improve the quality of their sales in the future. | Photo Credit: Jirapong Manustrong Q1 Results Today, 03rd August 2026 Live Updates: Find all the latest Q1 results 2026 updates of Amir Chand Jagdish Kumar (Exports), Amerise Biosciences, Amraworld Agrico, Artemis Medicare Services and Ather Energy. Sensex opened 788.7 pts higher at 78,883.34 on Monday against the previous close of 78,094.64 and at 9.16 am, it traded 543.52 pts or 0.70% higher at 78,638.16.Nifty 50 traded 168.45 pts or 0.69% positive at 24,552.05 after opening at 24,572.70 compared to the previous close of 24,383.60. 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.

Q1 Results Today Live: DLF, UPL, Torrent Power, IREDA, KEI, Escorts Kubota, Jindal Stainless, Ather, Inox, Nazara, KIMS, MobiKwik, Texmaco, DOMS Q1 results today, Bajaj Finserv, ITC, Urban Company shares gain, Muthoot Finance, Sun Pharma, Persistent Systems in red after Q1
Asia
The Hindu BusinessLine

Kerala on alert as heavy monsoon rains raise widespread flooding concerns

People living in low-lying areas have been directed to move to safer places without fail, as heavy rain overnight raised concerns of flooding in vulnerable areas. | Photo Credit: NAJEEB KK Several parts of Kerala recorded heavy rainfall, with three weather stations receiving more than 100 mm of rain, according to IMD data released on Monday, as authorities warned of a worsening situation in the southern district of Pathanamthitta. The office of Kerala Tourism Minister P C Vishnunadh said heavy rain in the Sabarimala region had created a worrying situation in the district, with water levels likely to rise in Ranni and nearby areas. Vishnunadh is camping in Pathanamthitta and leading disaster management and relief operations, the minister's office said. It added that he was reviewing the situation at Kozhencherry along with Aranmula MLA Abin Varkey, government officials and other elected representatives. People living in low-lying areas have been directed to move to safer places without fail, as heavy rain overnight raised concerns of flooding in vulnerable areas. In view of the continuing heavy rainfall in Kerala, collectors of many districts have declared a holiday on Monday for all educational institutions. Meanwhile, Chief Minister V D Satheesan has convened an online meeting of district collectors at 10 am to review the rain situation across Kerala. According to the India Meteorological Department, rainfall data recorded between 8.30 am on August 2 and 5.30 am on August 3 showed that Venkurinji in Pathanamthitta received the highest rainfall at 104.5 mm, followed by Udumbannoor in Idukki with 103.0 mm and Cheruthoni in Idukki with 101.5 mm. Laha in Pathanamthitta received 87.0 mm of rain, while Thycattussery in Alappuzha recorded 80.0 mm. Neriamangalam in Ernakulam received 75.0 mm, followed by Ulanadu in Pathanamthitta with 74.5 mm. Mattancherry in Ernakulam recorded 71.0 mm of rainfall. Ranni Chethackal in Pathanamthitta received 65.5 mm, Vadavathoor in Kottayam recorded 64.0 mm, Palluruthy in Ernakulam received 63.0 mm, and Munakkal in Thrissur recorded 62.0 mm. According to the IMD, all these places recorded 60 mm or more of rainfall during the period, which the weather office classifies as significant rainfall. The widespread rain was reported as the southwest monsoon remained active over the state.

Kerala on alert as heavy monsoon rains raise widespread flooding concerns
Asia
The Hindu BusinessLine

Trump says Mideast allies have reached outlines of deal to end Iran war, US to stop new strikes

President Donald Trump in a Saturday evening social media post claimed that Mideast allies have reached the parameters of a deal to end the Iran war and said that he would hold off on ordering new strikes in the five-month old conflict for now. “Based on this request, I have agreed, for the future benefit of the WORLD and, likewise, the survival of a successful and prosperous Iran, to cancel the attack, subject to being able to rapidly make a DEAL,” Trump said. He added that Israel has agreed to join the US in the commitment to try to complete the agreement with Iran that would bring about an end to the war. Earlier Saturday, Saudi Crown Prince Mohammed bin Salman, the kingdom's de facto leader, in a phone call with Trump raised concerns about the US potentially escalating the conflict with Iran, according to a person familiar with the leaders' discussion. The discussion, which was first reported on by the news outlet Axios, came as Trump weighed whether to carry out new strikes on Iran. The Saudis, according to the person briefed on the substance of the call but not authorised to comment publicly, are concerned that if the US targets Iran's energy infrastructure or carries out massive strikes on other key infrastructure that Tehran could respond by carrying out attacks on the kingdom's and other Gulf countries' energy infrastructure. The crown prince during Saturday's call sought clarity from Trump on what potential new action he's weighing to take against Iran, the person said. A White House official, who was not authorised to comment publicly and requested anonymity, confirmed the leaders spoke on Saturday but did not offer any detail about the substance of their conversation. Saudi Arabia earlier this week joined the US in striking multiple logistics and weapons sites used by Iranian-backed militias in Iraq, but has been urging the US and Iran to get back to the negotiating table to find an endgame to the five-month old conflict. The crown prince also dispatched his brother, Saudi Defence Minister Khalid bin Salman, to Washington on Wednesday for separate meetings with Trump and Vice President JD Vance to discuss Iran strategy. And Trump met with Israeli Prime Minister Benjamin Netanyahu on Tuesday at the White House, their first in-person meeting since launching the war in February. The Israeli leader has urged Trump to continue to prosecute the war against Iran. The stakes for continued US military action are high for Trump and his party as the conflict, unpopular among many Americans, has jolted the world economy just months before critical midterm elections in November.

Trump says Mideast allies have reached outlines of deal to end Iran war, US to stop new strikes
North America
CNBC Economy

As Warsh’s Fed faces pressure to act on inflation, these indicators show it’s at its lowest in years

Pricing data from June indicated that outside of some select items where costs continue to grow, inflation is trending back towards the Federal Reserve's inflation goal. So-called trimmed mean measures, which exclude outliers in both price increases and decreases, showed inflation at its lowest since the early part of the decade. The Dallas Fed's measure, in fact, puts the one-month annualized rate for June at just 1.4%, down a whopping 1.3 percentage points from May and at its lowest level since November 2020. Further, the 12-month rate, which Fed policymakers watch more closely, dipped to 2.2%, down 0.2 percentage point from a month ago to a bottom not seen since July 2021. While Fed officials are quick to stress that they don't focus on one month of any data point, the trend in the trimmed mean could get some attention, particularly in light of Chairman Kevin Warsh's intention to reexamine how the central bank views inflation and what data points it employs. Trimmed mean data "should also now fall closer to target-consistent rates," Citigroup economist Andrew Hollenhorst said in a note. "The fact that underlying inflation is still slowing toward target – as indicated by a broad set of indicators – is now even more relevant given Chair Warsh's suggestion that he would analyze inflationary pressure by looking across a broad range of metrics," he added. "We expect markets to price-out rate hikes in coming months on inflation data, and price-in cuts if the unemployment rate rises as we project." The trimmed mean inflation measures essentially act like a teacher grading a test on a curve: In the case of the Dallas measure, it tosses out 24% of the lower-end price readings and 31% at the high end to come up with a better midpoint of where inflation is absent outliers. The measure specifically uses the personal consumption expenditures price index — the Fed's primary inflation forecasting tool — results of which were released Thursday. The Commerce Department said the all-items index fell 0.1% for the month, largely on a sharp decline in fuel costs, while the core level that excludes food and energy gained 0.1%. On an annual basis, the two gauges rose a respective 3.7% and 3.3%. Similarly, the Cleveland Fed has a "16% trimmed mean" that includes price changes below the 92nd percentile and above the 8th percentile. That measure, though, uses the consumer price index as its benchmark. For June, the trimmed CPI was at 2.63%, which, on an unrounded basis, was the lowest since May 2021. While such measures could get more prominent placement on the Fed's dashboard under Warsh, there are a number of caveats. For one, Lorie Logan, who as Dallas Fed president oversees its trimmed mean measure, has cautioned about reading too much into it because of compositional factors at play.

As Warsh’s Fed faces pressure to act on inflation, these indicators show it’s at its lowest in years
Asia
The Hindu BusinessLine

Sundaram Home Finance hikes interest rates for fixed deposits

The deposit base at Sundaram Home Finance stood at ₹2,295 crore as on 31 March 2026. Sundaram Home Finance, the wholly owned subsidiary of Sundaram Finance, has increased the interest rates on 3, 4 and 5 year deposits effective August 1. For regular category, the interest rate has been increased 0.25 per cent to 7.25 per cent for 3 year deposits and to 7.40 per cent for 4 and 5 year deposits. For senior citizens, the interest rate has been increased by 25 basis points to 7.75 per cent for 3, 4 and 5 year deposits. For trusts, the interest rate has been increased by 25 basis points to 7.50 per cent for 3, 4 and 5 year deposits. “Deposits have historically been an integral and important source of funding and constitute about one fourth of our funding basket. We have always valued the faith and trust placed in us by the depositors whose base has now increased to over 15,000 with a renewal rate of over 75 per cent,” said D Lakshminarayanan, MD, Sundaram Home Finance. The deposit base at Sundaram Home Finance stood at ₹2,295 crore as on 31 March 2026. 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.

Sundaram Home Finance hikes interest rates for fixed deposits
Asia-Pacific
The Straits Times

US Treasury intervenes to support yen after Japan steps in: Financial Times

A notepad in front of US Treasury Secretary Scott Bessent reads "To Do Buy Japanese Yen $5-10 bil" as he participates in a Cabinet meeting on July 31. NEW YORK – The United States Treasury bought yen on July 31 to support the battered Japanese currency, the Financial Times (FT) reported, marking Washington’s first intervention along with Tokyo to support Japan’s currency in more than a decade as it languishes near 40-year lows. The Federal Reserve Bank of New York conducted a sale of euros to buy yen on behalf of the Treasury through Goldman Sachs and Morgan Stanley, the FT said, citing people familiar with the matter. Earlier on July 31, the US Treasury informed a number of banks that it might intervene in the yen market and that they should “stand ready for future action”, a source familiar with the matter told Reuters. A Reuters photo of US Treasury Secretary Scott Bessent’s notepad during a Cabinet meeting at Camp David in Maryland showed the words: “To Do” followed by “Buy Japanese Yen (JPY) $5-10 bil”. The Treasury did not immediately respond to requests for comment on the FT report and the Bessent notepad photo. The New York Fed and Morgan Stanley also did not immediately respond to request for comment outside regular business hours. The US last directly supported the yen in 2011, coordinating with fellow Group of Seven nations to stabilise markets after Japan’s earthquake and tsunami disaster. News of the potential intervention by the Treasury helped boost the yen, with a notable jump during late afternoon trading. Data from LSEG showed that the US dollar dropped to about 157.6 yen just before 5pm EDT (5am on Aug 1, Singapore time) from about 158.9 yen around 4.14pm EDT. The US currency had risen in recent weeks to nearly 164 yen, its highest since 1986. Japan may have sold as much as US$58.97 billion to buy yen on July 30, central bank data indicated on July 31, signalling repeated efforts to stem the yen’s weakness.

US Treasury intervenes to support yen after Japan steps in: Financial Times
North America
CNBC Finance

Why flights are so expensive and will likely stay that way

Airfare in the U.S. in June was up 26.5% compared with a year earlier, according to the latest federal data. Airline leaders say customers continue to book even after carriers hiked fares. They told Wall Street analysts this month that they're expecting to hold onto that pricing power at least through the rest of the year, if not longer. Traveler Marjorie Aran said she and her husband paid a combined $800 to go from New York to Chicago in economy on United Airlines this week to visit their daughter. "We used to go to Chicago for a couple of hundred dollars," she said. Asked if she would skip a trip because of the fares she said no. "We can afford it." The average Southwest one-way fare, for example, was $225.61 in the second quarter, up from $186.65 during the same span of 2025. "Despite high fuel and high prices, we're seeing really strong demand," Southwest Airlines CEO Bob Jordan told CNBC's "Squawk on the Street" in late July. United said it expects to pay about $6 billion more for fuel this year than it expected at the start of 2026. American Airlines forecast a $6 billion increase in fuel costs compared with last year, each a jump of a more than 50% from 2025. Both carriers said demand is still strong, even as they're passing costs on to customers with higher fares. "We observed minimal to no negative impact on demand from higher price points, a trend we see continuing," United Chief Commercial Officer Andrew Nocella told Wall Street analysts on the company's July 16 earnings call. The carrier expects unit revenue year over year for the rest of 2026 to rise and even exceed the second quarter's increase, he said. Airlines are eager to make up not just the billions of dollars more they've paid for fuel this year, but also to cover higher costs of labor, maintenance and basic operating expenses like increased airport fees. "Labor costs have escalated dramatically. Maintenance is off the charts in terms of escalation. And those are all costs that every single airline pays the same," United CEO Scott Kirby said on the call. The surprise surge in fuel costs — airlines' biggest expense after payroll — was a shock to the industry. Airlines pruned schedules this year, which can mean fewer flights per day or week on a certain route. That leaves customers with a lower number of flights to choose from and can lift fares. According to S&P Global Energy Platts data, jet fuel prices have eased from four-year highs in April, but are still up about 50% since Feb. 28, when the U.S. and Israel's strikes on Iran kicked off the monthslong military conflict that has choked off a main shipping channel for months.

Why flights are so expensive and will likely stay that way
North America
CNBC Economy

U.S. economy slowed to 1.5% growth rate in Q2; June core inflation at 3.3%

Economic growth was weaker than expected in the second quarter though underlying drivers were mostly solid. At the same time, inflation in June held well above the Federal Reserve's goal and complicated the central bank's policy path, the Commerce Department reported Thursday. Gross domestic product, a broad measure of goods and services, increased just 1.5% for the April-through June period, according to Bureau of Economic Analysis numbers adjusted for seasonality and inflation. Economists surveyed by Dow Jones had been looking for a growth rate of 1.8%, following the 2.1% increase in the first quarter. A separate report showed that the personal consumption expenditures price index, which is the Federal Reserve's primary forecasting gauge, fell a seasonally adjusted 0.1% for the month, putting the annual inflation rate at 3.7%. The readings were in line with forecasts. Excluding food and energy, core PCE posted a monthly increase of 0.1% and an annual level of 3.3%, against respective forecasts for 0.2% and 3.3%. While the Fed technically uses the headline PCE number as its gauge for setting policy, most officials consider core inflation as a better indicator of longer-run trends. Stock market futures were positive following the report while Treasury yields were sharply higher. The reports come a day after a divided Fed voted 9-3 to hold its benchmark borrowing rate in a range between 3.5%-3.75%, where it has been all year. Inflation has taken the primary focus for Fed policymakers as labor market indicators have stabilized this year, with the three dissenting votes coming from regional presidents who have expressed concerns about higher prices and the failure to make progress toward the prices side of the central bank's mandate. While the GDP number was below expectations, the miss appeared to come from a decline in federal government spending and inventories. Other parts of the economy appeared strong. Key areas of the economy continued to show improvement: Personal spending rose 2.1% after eking out a 0.4% gain in the first quarter, while a key indicator of underlying demand called final sales to private domestic purchasers posted a robust 3.9% increase. However, inventories fell 0.7% and federal spending was off 0.3%, subtracting from the top-line reading.

U.S. economy slowed to 1.5% growth rate in Q2; June core inflation at 3.3%