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India's Travel Food Services to IPO $233.5 Million; aims for $1.69 Billion valuation
A newspaper advertisement published on Wednesday showed that Travel Food Services, a restaurant operator at airports, had set a price range of 1,045 to 1,100 rupees as its initial public offering. This follows the blockbuster IPO by HDB Financial Services. Travel Food Services' price range values it at 144.8 billion rupies ($1.69 billion), at the top end. The company plans to raise 20 billion rupies ($233.49m) through a three-day stock sale starting July 7. Kapur Family Trust will be the only shareholder to divest its shares. The Trust did not disclose if it would divest its entire shareholding. Travel Food Services didn't immediately respond to an inquiry for comment. India's IPO is gaining momentum after a sluggish start to the year. This was due to market gyrations caused by global trade concerns and a border dispute in India. HDB Financial Services' IPO of $1.5 billion, which was launched on Wednesday, grew by more than 13 percent. It is India's biggest IPO in 2025. Travel Food Services is a joint-venture between UK-based SSP Group, and India's K-Hospitality. It has an estimated 26% market share in the domestic airport restaurants sector, according to revenue-based figures. According to a CRISIL Report, it operates Wendy's, Subway, and airport lounges. It has a domestic market share of 45%. According to the company's prospectus, revenue from operations increased by nearly 21% to 16.88 billion Rupees in fiscal 2025, while profits grew more than 27%, to 3.8 billion Rupees. Dreamfolks Services, a competitor, is valued at approximately 12.11 billion rupees. According to PRIME Database there are 143 Indian Initial Public Offerings (IPOs) planned, worth up to $26 billion. Regulators approved 73.
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INDIA RUPEE - Rupee slips and volatility expectations are unruffled due to the looming deadline for tariffs
Investors were focused on trade agreements ahead of the July 9 deadline, and so the rupee fell on Wednesday. The rupee closed the day at 85.7025 per dollar, a 0.2% decline. The Malaysian Ringgit fell by 0.7%. The dollar index rose by nearly 0.3%, hovering near the 97 handle. Stronger-than-expected U.S. economic data released on Tuesday offered mild support to the greenback with investors now awaiting a key non-farm payrolls report on Thursday and developments on bilateral trade negotiations. The rupee's implied volatility (a measure of future expectations) was hovering just a little below its average for the past three months, showing that traders have not yet priced in the possibility of large swings in near-term. Donald Trump, the U.S. president, has stated that he is not considering extending deadlines for countries to reach trade agreements but expects a deal with India. ING's note said that while Trump has ruled-out an extension, the markets are wary to take this as a given due to recent reversals. "The prevailing opinion may be that global trade threats peak just before another last-minute respite," ING stated. The rupee is expected to remain largely range-bound in the coming year. It will trail Asian counterparts due to the sustained weakness of the dollar. The rupee will fall 0.1% in three months from its current level to 85.75 dollars. According to the median forecasts of 41 FX analysts, it is expected to trade at 86.13 per dollar in a year and to drop to 85.50 within six months.
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Gulf shares tempered on tariff uncertainties, Fed rate cuts in focus
Investors weighed the uncertainty surrounding U.S. tariffs with a deadline of July fast approaching. Meanwhile, comments from U.S. Federal Reserve Chairman kept hopes alive for a rate reduction. The benchmark Abu Dhabi index dropped 0.2%. This was due to a drop of 1.4% in RAK Properties, and a dip of 0.4% in Aldar Properties. Aldar, the emirate’s top developer, has purchased warehouses and industrial properties in Al Dhafra from Waha Capital. The deal was worth 530 million dirhams. Dubai's benchmark index fell by 0.3%. Union Properties fell 1.8%, and Emirates NBD lost 0.9%. Qatar Gas Transport, the largest lender in the region, fell 1.6%, while Qatar National Bank, the benchmark index for Qatar, dropped 0.3%. Saudi Arabia's benchmark index fell 0.1%. National Shipping Company fell 3.7%, and Saudi Arabian Mining Company declined 1%. Saudi Arabia's largest mining company Ma'aden announced that it has completed the acquisition of all the stakes owned by AWA Saudi and Alcoa Saudi Maaden Aluminium Company. Arabian Drilling, a Saudi oilfield service firm, rose 5.5% on the news that it had secured 1.37 billion Saudi riyals (US$365.33 million) in contract extension for four rigs. Jerome Powell, the chair of the U.S. Federal Reserve, reiterated on Tuesday that it was going to "wait and see" what more information is available before lowering rates. According to CME's FedWatch Tool, market expectations for a cut in July have increased to 21,2% from 18,6% the previous session. Fed decisions can have a major impact on the Gulf's monetary policies, since most of the currencies in the region are pegged to U.S. dollars.
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Data shows that Russian gas exports to Europe fell 18% m/m between June and July.
Calculations showed that the average daily supply of natural gas to Europe by Russian energy giant Gazprom via the TurkStream pipeline dropped by 18.3% from a year earlier in June due to maintenance on the infrastructure. The only remaining transit route for Russian gas into Europe is through Turkey after Ukraine decided not to renew a transit agreement with Moscow that expired in January. According to available data, the total Russian gas exports into Europe between January and June fell from 15.5 billion cubic meters to 8.33 bcm, when excluding supplies via Ukraine. According to calculations based on data provided by the European Gas Transmission Group Entsog, Russian gas exports through the TurkStream pipeline decreased from 46 million cubic metres (mcm) per day per month in May to 37.6 mcm/day in June. This is also down from the 39.5 mcm that was shipped along this route in May 2024. Calculations show that Russian gas supplies via TurkStream to Europe increased by 6.8% during the first half of the year, compared to 7.8 bcm in the same period last year. Gazprom has not responded to a comment request since 2023. Gazprom's data and calculations indicate that Russia will supply 63.8 billion cubic meters of gas by different routes to Europe in 2022. This fell by 55.6% in 2023 to 28,3 bcm, but increased in 2024 to about 32 bcm. In 2018-2019 the Russian gas flow to Europe peaked between 175 and 180 billion cubic meters. (Reporting done by Oksana KOBZEVA. Vladimir Soldatkin wrote the article. Mark Potter (Editing)
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China Communist Party magazine urges crackdown on price wars
A leading publication of the Chinese Communist Party called for an end to unfair competition, which fuels price wars in different industries and reduces profits. It also criticized large companies and local government for their unfair practices. The Qiushi article, published on Tuesday, said that price wars are a "waste of social resources" and can lead to unsustainable debts. This could threaten long-term economic growth. The warning comes as a result of mounting concerns about deflationary forces in the second largest economy in the world. Also, U.S. president Donald Trump's tariffs are threatening global demand on which China heavily relies for its ambitious growth goals. In recent weeks, China has seen an increase in the number of public messages against price wars. Top leaders On Tuesday, the government pledged to tighten regulations against aggressive price cuts and state media carried front-page editorials criticizing what they called a race to bottom. It is fuelling the hopes for new policies. Unprofitable factories Close or improve consumer incomes Analysts warn that Beijing may have difficulty convincing local governments to limit access to credit because of fears about job loss. Fred Neumann is the chief Asia economist for HSBC. He said, "This is at the core of China's economy and we won't see any quick fixes." "But, I think it's encouraging that now we've seen this recognition - that there's such a thing a too much competition and an excessive price war." The Qiushi, written under pseudonyms, article focused on "involutionary competitiveness" in which firms and local governments spend capital to chase after market share despite limited demand, but fail to generate revenue growth. The report highlighted industries like photovoltaics and lithium batteries as well as electric vehicles and ecommerce platforms. Last month, solar manufacturers demanded an end to the price wars. On Tuesday, car dealers in east China complained that some automakers were pressuring them to reduce prices, citing high inventories and financial risks. The Qiushi piece also highlighted problematic corporate behavior, such as compromising product quality in order to reduce costs. This weakens innovation, reduces R&D investments and hurts the interests of consumers. It said that other firms increase their capacity, while delaying payment to suppliers and contractors. This squeezes the entire industrial chain. WARNING TO LOCAL OFFICIALS The magazine has also criticised local officials for not stepping up to the plate enough, stating that regulations haven't kept pace with new business models and industries. The bankruptcy mechanisms are "imperfect" and prevent curbing excessive supply. Some local governments that are focused on short-term economic growth attract investment through "artificially" creating policy havens with preferential taxation, fees, land use and subsidies, as well protectionist measures. Economists warn that China's high level of state-directed investment and low domestic demand due to a weak social safety net, as well as the deep inequalities between rural and urban areas, will make it overly dependent on its exports. This could lead to debt and deflation similar in nature to Japan during the 1990s. The article didn't mention deflation but warned that China could suffer from "development path dependence". It also needed supply-side changes to reduce excess industrial capacities and a strategy for expanding domestic demand. The report warned that the problem is "complex," and it cannot be resolved "overnight, or by a single, decisive action." (Reporting and writing by Joe Cash, with additional reporting from Laurie Chen in Beijing. Writing by Marius Zaharia. Editing by Shri Navaratnam & Christian Schmollinger).
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KLM crews strike in Amsterdam during the summer holidays
The CNV union announced on Wednesday that KLM ground crews would go on strike on July 9 at Amsterdam Airport unless Air France KLM, the Dutch subsidiary of Air France KLM, meets their demands for increased wages. The eight-hour planned strike will come at a busy time for the airport as the school holidays begin next week in some parts of the Netherlands. KLM has said that it will consider asking the court to prohibit the strike as it did successfully last month. CNV is confident that the strike will not be banned as the circumstances have changed. The court's ruling in June cited concerns about security at the airport in relation to the NATO summit that was to be held in The Hague just days before the strike announcement. KLM said last week that it had offered higher wages but CNV said the offer was still vague.
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In June, Northeast Asia sent the most jet fuel into Europe in almost a year
According to three sources and shiptrackers, traders exported the most jet-fuel from Northeast Asia to Europe since almost a full year in June, as lower freight costs and abundant Asian supplies boosted exports amid fears of Middle East supply disruption. Kpler data shows that 350,000 metric tonnes (2.8 million barrels of aviation fuel) is headed to Europe from South Korea, China and some traders estimate 465,000 tons based on bookings made in the month of June. Analysts said that these shipments will help to ease Asia's jet-fuel oversupply in the short term and set a price floor. The data revealed that Vitol and BP, Aramco Trading Gunvor, and Unipec (the trading arm of Asia’s largest refiner Sinopec) chartered five tankers in June. Vitol, Saudi Aramco, Gunvor, Unipec, and BP declined to comment. Ivan Mathews, Vortexa’s head of APAC Analysis, said that Northeast Asia jet-fuel exports rose during June, as refiners increased their production following maintenance in their plants, and as “product cracks” strengthened. Two Singapore-based sources reported that traders shifted their spot cargoes towards the West in order to take advantage of lucrative margins and a fall in freight rates. This was due to a recent lack of interest in spot purchases from regional importers. Zameer Yusof, senior research analyst at Kpler, said that these trade flows were "purely opportunistic and spurred on by geopolitical pressures which sent Northwest Europe cracks soaring". Freight rates for modern newbuild vessels also remained attractive, justifying the move. Prices of jet fuel in Northwest Europe The price of a ton in Asia is $60-$80 higher. LSEG data indicated that the majority of June was spent in warm weather. Jet fuel demand in Europe typically increases during the summer months, when travel is at its peak. Eurocontrol reported that June flight numbers were up 7.8% over the previous month and 5.2% year-over-year. Jet fuel prices rose in Europe on the fear that the Middle East conflict could disrupt the supply. Bookings made prior to the Iran-Israel conflict on June 13 saw the price of 90,000 tons jet fuel shipped on LR2 tanks fall to a low of $40-$45 per ton, a drop of one month. Two shipping sources reported that at least four new LR2 ships have been booked in June and/or July to transport jet fuel east-west. One shipbroker source stated that the first voyages of new vessels are usually cheaper, because some owners wish to collect tracking history and miles. Analysts did not expect that the price of Asian jet fuel would rise as a result of increased exports to Europe. "Asia is chronically net-long jet/kero in June and in July by about 625 kbd, and Europe bound flows will not make a significant dent in this surplus," Kpler’s Yusof stated. It's difficult to remain constructive when China targets jet/kero exports above 2 million tons per monthly. China exported 1,92 million tons jet fuel in May, a 20% increase on the previous year.
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Report: National Grid failures caused the fire that shut down Heathrow.
The failure of an electrical substation component that was not properly maintained caused the fire at Heathrow Airport in March, according to Britain's National Energy System Operator. Ofgem, Britain's energy regulator, said that it had launched a formal enforcement investigation into National Grid Electricity Transmission in response to the findings of the report. The Heathrow airport closure on March 21, the busiest in Europe, cost airlines tens and millions of pounds. It also left thousands of passengers stranded. The incident also raised concerns about the resilience and stability of Britain's transport infrastructure. The National Energy System Operator's report stated that "this review has seen evidence of a catastrophic failure in one of the high voltage bushings on the transformer at National Grid Electricity Transmission’s 275kV Substation". This was probably caused by moisture getting into the bushing and causing an electric fault. The report stated that National Grid's controls were ineffective and that they failed to recognize that no action was taken regarding an elevated moisture reading for 2018. Ed Miliband, the Energy Minister, said that the report is "deeply worrying". National Grid did respond immediately to a comment request. (Reporting and editing by William James)
WHSmith UK reportss Q3 sales growth on the back of strong travel demand
WH Smith, a British retailer, reported a 5% increase in its total revenue like-for-like for the third-quarter, while North America grew 2%. Travel demand boosted sales across all of WH Smith's product lines despite macroeconomic uncertainty.
Why it's important
Sales are up amid worries about North America travel, at a moment when U.S. Tariffs have caused global turmoil and dampened growth prospects for businesses.
WH Smith, however, said that it still expects a steady demand for travel, and is banking on a good summer to boost footfall in transit zones. It also maintained its annual forecast, saying it was well positioned during the summer peak period.
SSP Group, a company that operates airport food outlets, recently reported heightened insecurity, especially within its North America operations.
KEY QUOTE
Analysts at J.P.Morgan said that, "Although macro-uncertainty still exists regarding the US, we believe the Q3 North America LFL results should ease investor concerns in the near term and reassure investors that the U.S. economy is not experiencing a drastic slowdown."
CONTEXT
WH Smith is a brand that has been around for more than 230 years. It operates 1,200 stores at airports and railway stations in 32 countries.
In the first half of this year, the company sold its UK high-street business to Hobbycraft's owner Modela Capital to become a pure-play online travel retailer.
By the Numbers
The company reported an increase of 7% in its total revenue, calculated on a constant-currency basis for the 13 week period ending May 31,
The company also opened 10 new shops in North America.
MARKET REACTION
On Wednesday, shares were up 2.9% to 1,054 pence. The stock is down around 14% this year. (Reporting and editing by Sumana Naandy in Bengaluru, Anandita Mehrotra from Bengaluru)
(source: Reuters)