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Indian shares record weekly losses, HDFC Bank falls as crude prices rise
Indian?shares dropped on Friday and posted weekly losses as Brent crude briefly reached $100 a barrel in the midst of an escalating Middle?East crisis. HDFC Bank, the largest weight in 'the benchmark indexes', dropped 9.4%, its steepest drop in two-and-a half years, on margin concerns. Axis Bank also fell 7.6%, after reporting lower June quarter net interest margins. The Nifty 50 dropped 0.43% on the day to 23,767.45, and the BSE Sensex fell 0.43% at 76,059.77. This was the fifth consecutive session of losses. Infosys, Interglobe Aviation and BSE?Sensex fell by 0.6% and 0.8 percent, respectively, following weak results for the June quarter. The Nifty dropped 2.33%, the most in four months. Meanwhile, the Sensex fell 2.7%, its biggest drop in two months. Brent crude rose by 10.1% during the past week. Donald Trump, the U.S. president, threatened Iran and Houthi allies with "major punishment" on Thursday after Yemeni fighters attacked two Saudi oil tanks in the Red Sea. This extended the conflict into another shipping chokepoint. Oil prices rising could fuel inflation in India, increase the trade deficit and squeeze growth and profit margins for corporations. Bhautik Ambani is the chief executive officer at AlphaGrep Mutual Fund. A temporary spike in crude oil prices can be easily absorbed by the markets. However, a period of sustained high crude oil prices combined with supply chain disruptions could cause'medium-term concern for the markets and economy. Ambani said that the irregular monsoons and rainfall deficits are also "lingering risks" as they can hurt rural income and consumption. This week, 13 out of 16 sectors declined. The small- and midcaps fell by 2.2% and respectively 1.3%. HDFC and Axis were the main drags on private banks, financials, and banks. Bajaj Auto and Nestle India, which had positive results, bucked the trend and rose 6.6% and 1,1% respectively.
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Spanish hotel chain Melia completes its exit from Cuba
Melia, a Spanish hotel group, announced that it had?stopped all operations at its?34 Cuban hotels on Friday due to the?hardening of US sanctions. The island's economic crisis and the escalating sanctions are a major factor. Melia cited operational, financial, and legal difficulties as reasons for leaving the island where it had been a major player since 1990. The hotels were managed by its Portuguese subsidiary, Ilha Bela?Gestao e Turismo. Melia announced last month that it was closing 15 of its hotels. The three major Spanish hotel chains have been involved in the tourism market of the island for decades. The tourism industry, which is a major engine for the Cuban economy, has suffered this year due to a growing economic crisis on the island, as a result of the oil blockade that the U.S. imposed at the start of 2026. International visitor arrivals between January and April fell to 328.608, which is a 56% decrease compared to the same period of 2025. "There's no tourism, no income and no economy." "The impact is enormous," said Teresa Carrillo a Havana resident of 62 years. The pressure from Washington increased this month after the U.S. imposed?sanctions on Cuba's Minister of Tourism. Hotel closures are part of a broader?exodus by international companies including financial and logistic businesses who have reassessed the risk associated with operating in Cuba following Washington's tightened restrictions. Visa and Mastercard have halted a number of?operations. Major airlines like Air France, Turkish Airlines Iberia and World2Fly have also suspended flights. (Reporting by Ayose Naranjo in Havana; Editing by Sonali Paul)
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Canada will open the Gordie Howe Bridge without US after trade conflict intensifies
Canada will celebrate the 'opening of a new bridge linking Windsor, Ontario and Detroit, Michigan on Friday, in a quiet ceremony without U.S. officials, after a dispute over toll sharing and threats from U.S. president Donald Trump of tariffs of up to 50% further strained tensions between the two countries. Canada has cancelled the planned ribbon-cutting ceremony to celebrate the Gordie-Howe International Bridge. The country said that the event would be celebrated only by Canadians, before the bridge is opened for traffic on Monday. The celebration of a long-standing friendship between the two countries has been overshadowed due to trade disputes and Trump's threat to increase tariffs against Canada. Canada exports 70% of its goods to the U.S., including Trump. The $4.7 billion bridge named after the legendary Canadian Detroit Red Wings player was funded by Canada and scheduled to open in early June. Construction began in 2018. The bridge is intended to be a quicker alternative to the Ambassador Bridge that crosses the Detroit River. Trump threatened to block the project by blaming Canadian provinces for refusing to sell U.S. alcoholic beverages, Canadian tariffs against American dairy products and the country's ongoing trade negotiations with China. The two countries are still at odds over the split of bridge revenue and the timing. Trump claimed earlier this month that he had negotiated "a better deal" with the U.S. and secured significant revenue to allow the opening of the bridge. Mark Carney, the Canadian Prime Minister, said that his country only shared toll revenue after it was paid back. However, according to a draft of an agreement published on Wednesday, Canada would split net bridge- and crossing related revenues with the U.S. during the first 15 years without any explicit provision for compensation. Carney clarified the discrepancy in a Thursday press conference, stating that the previous agreement between Canada and Michigan still stands and that there is no toll splitting under this agreement until the entire debt has been repaid. The?revenues have not been estimated by either country. Kush Desai, spokesman for the White House on Thursday, said that Trump "renegotiated an unbelievable deal for America" on the Gordie-Howe Bridge. He did not provide a date when the U.S. was expected to begin receiving toll revenue from the bridge. Carney referred to the 2012 agreement between Canada and the U.S., but the new deal appears to contradict it, according Nicolas Lamp, a?associate lawyer and professor at Queen's University's Institute on Trade Policy. Lamp explained that the U.S. could point to a new agreement which states that they will receive half of the net revenues, while Canada would say that this contradicts the original contract. It's vague enough for each side to claim victory and save face. He said that the draft agreement was not legally binding and Canada could still negotiate a better deal. PLACATING TRUMP Lamp has disputed the criticism of Carney by opposition Conservatives who claim that he "caved in" to America. Don Abelson is a professor of political science at McMaster University who specializes in Canada-U.S. Relations. He said that the biggest concern about the proposed agreement was the absence of a dispute settlement mechanism. This, he said, "leaves Canada vulnerable if Trump does something unexpected." Abelson stated that Carney's administration probably decided the best way to win was simply opening the bridge and placating Trump. He said that while it was important to be reimbursed for billions spent on the bridge, the relationship between Canada and America is more important.
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China braces itself for heavy rainfall as tropical Storm Noul approaches
China warned on Friday of severe flooding and heavy rain as the third tropical storm this month moved closer to its southern coast. It is expected to intensify there over the weekend. As of Friday morning?Noul?was northeast from Manila, the capital city of the Philippines. It was moving west-northwest with a speed of 25-30 kph (16-19 mph). According to the observatory of Hong Kong, it is expected that by Friday evening the tropical storm will be within 800 km (497 mi) of Hong Kong. The observatory announced that it would issue the city's "lowest typhoon warning", 1, at 8.40 pm (12:40 GMT), local time, on Friday. It will then assess whether the warning should be raised as Noul approaches. Local winds will gradually increase in southern coastal areas. Squally showers are expected to intensify through Saturday. The weather forecasters in mainland China predict that Noul will land along the southern coast of China between Zhuhai, in Guangdong province and Zhangpu, in Fujian Province between Saturday night and Sunday morning. It will then move inland before gradually weakening. Meteorologists have predicted that the cumulative rainfall across eastern Guangdong, southern Fujian and localised areas could reach 500-600mm (20-24 inches) in some places. Guangdong, Fujian and other provinces in China are the wettest. Each receives an average of 2,000mm per year. Noul is here after torrential rains ravaged large parts of China. Rescue teams in southwestern China are still searching for?than fifty people who have gone missing after a deadly land slide in Chongqing Municipality. China's peak flood control period -- Qixia Bashang - is from mid-July until mid-August. Experts warn that extreme rainfall is likely to increase in intensity and frequency over the next few weeks. Much of northern China will experience up to 50% more rainfall than normal. Authorities have announced that Guangdong will suspend rail services starting on Saturday. All high-speed trains and regular trains are expected to stop running on Sunday. According to an official notice, in Zhuhai (a coastal city west of Hong Kong), all ferry services will be suspended on both Saturday and Sunday, while all scenic coastal areas will be closed to visitors. North Korea gave the name Noul, which means sunrise or sunset glow in Korean.
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Russia claims to have struck three Ukrainian ports overnight, striking infrastructure and fuel
Russia announced?on Friday? that its forces had'struck three Ukrainian ports overnight? in a?attack which targeted infrastructure, including loading and unloading areas and fuel reserves which supported Kyiv’s armed forces. The Russian Defence Ministry claimed that air-launched rockets and strike drones had?hit the ports of Odesa Izmail, and Mykolaiv as part of a campaign of heavy strikes against Ukraine. In a press release, it said that tanks of fuel and lubricants intended for the Ukrainian army had been damaged in Odesa and that storage and unloading facilities for military cargo had been destroyed in Izmail. The floating dry dock in Izmail was also hit. The Defence Ministry in Mykolaiv?said that its forces struck a cargo vessel?which was?unloading military shipments. Could not independently verify the ministry's claims. The Geneva-based company Allseeds announced earlier this week that it would cease operations in the Odesa area due to a 'intensifying Russian attack on port infrastructure. This is the third such announcement made recently. Andrew Osborn (Reporting)
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Germany's Merz sacks transport minister in broader cabinet shake-up, Bild says
The German Chancellor Friedrich Merz fired Transport Minister Patrick Schnieder on Friday, amid frustration with 'the state of the rail network and crumbling infrastructure in Germany,' according to Bild, as part of a wider cabinet reshuffle. The mass-circulation newspaper reported that Schnieder will be succeeded by Fritz Guentzler. He is a CDU legislator and auditor from Goettingen. Sources in conservative circles were cited. I was unable to reach the Chancellery or Transport Ministry for comment on Friday morning. The shake-up in the cabinet was triggered by Jens Spahn's sudden resignation over a controversy surrounding surrogacy. Bild reported that Merz had grown "increasingly disappointed" by Schnieder’s failure to fix Germany's failing rail system and infrastructure despite an unprecedented budget. Guentzler, an auditor and politician, has served as a Bundestag member since 2013. He is a member in the Finance Committee of parliament. Sources said that on 'Thursday', Health Minister Nina Warken would likely take over Merz’s chancellery. Her predecessor,?Thorsten Free, would replace Spahn in the CDU/CSU group in parliament. Warken would be the first woman in post-war Germany to hold the role of chief of staff. Schnieder - who will take office in May 2025 - was criticized 'in September after he said he did not have enough money for infrastructure and new bridges despite having a large budget. Bild reported.
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India's Youth Leaders to Talk with Government but Continue with Nationwide Protests
A spokesperson for the group stated that leaders of India's youth led "cockroach" will meet with the government to resolve a dispute over national examination papers leaking. However, they will not stop nationwide protests. The announcement came hours after Sonam Wangchuk, an activist who had been on a hunger strike for 26 days, ended it overnight. This raised hopes that both sides were moving towards a breakthrough. Tens of thousands angry youths have congregated in Delhi to demand resignation of the Education Minister over the scandal. The protests are the largest youth challenge that Prime Minister Narendra modi has faced since he took office in 2014. The opposition parties have also echoed these demands, and disrupted this week's monsoon session in parliament. Saurav Das, spokesperson for the CJP, told reporters that talks between government ministers (and leaders of CJP), which calls itself Cockroach Janta Party), would take place at a neutral location. He said: "We hope the government will come with an open-mindedness and listen to the citizens of this country, who have been on the road for so many years." "We will go into greater detail about our demands." We hope the government will?listen to us." Das added that the nationwide protests will continue. He said, "We will not back out." "Because real awakening begins at the grassroots, and that's what we need." PROTESTERS INSIST on the resignation of Education Minister The government has not made any new comments on the talks. However, a senior Minister said that the government is always willing to talk for as long as it takes and will not "stand by prestige". The protests at Jantar Mantar, central Delhi, were led by young men and women. They said that they would insist on Dharmendra Pradhan's resignation to hold him accountable for the mess of the national exams. Sudesh Singh said, "We'll continue to protest until Dharmendra is fired," as thousands of demonstrators chanted slogans. The crowd was slowly growing. "He shouldn't be given another job." "If we stop now, we compromise the future of our kids." CJP protests began as a satire online and only involved a few hundred youths when first launched. It grew in popularity after the leaked question paper of the May medical college entrance exam caused the test to be cancelled, affecting 2 million students. On Monday, tens of thousands marched to parliament against a ban and clashed violently with the police who pushed them away with tear gas and slapped them with canes. On Wednesday night, violence was reported when more than 10,000 people gathered in central Delhi to protest. Analysts say that the rise in popularity of the movement reflects the frustrations of young Indians with issues such as job scarcity and frequent exam leaks. They warn the government to address the crisis. DELHI METRO SHUTS STATIONS, MOBILE INTERNET DISRUPTED Authorities shut down 16 metro stations and mobile internet services in central Delhi on Thursday in an effort to stop the protests. This inconvenienced thousands of people. Delhi Metro Rail Corp. announced that it would shut down 17 stations from early Friday morning until further instruction. This is the third time in a week the system, which is vital to the capital's lifeline, has been closed at such a scale. On Friday morning, mobile internet service in the area was disrupted once again. Journalists reported patchy or no connectivity. Modi announced late Thursday that the federal cabinet would meet on Friday to discuss a draft amending laws to punish those responsible for exam paper leaks. The amendments will be approved by parliament at the earliest possible time. The protesters, however, have rejected this proposal. They say that the system of examination should be improved to prevent leaks from occurring in the first instance. Analysts say that in the past few years, youth-led protests on the streets of Sri Lanka, Bangladesh, and Nepal brought down governments. Modi's government should engage protesters in dialogue and alleviate their fears. They warn that even though national elections will not be held until April 2029 but key states such as?the most populous state, Uttar Pradesh run by Modi’s party, Gujarat, his home-state, and Punjab vote next year, the antigovernment sentiment may have an effect. Invectives, online criticisms, jokes, and memes have also increased in the movement, targeting Modi. Modi is a nationalist with a large following. Analysts say that this shows less fear for Modi because his supporters are quick to defend him, sometimes angrily. Reporting by YP Rajesh; Editing and editing by Raju Gopalakrishnan.
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US arms makers face Europe's push for local control
Customers were more concerned about American suppliers as U.S. defense companies visited Britain's Farnborough Airshow to tap into?Europe's military expenditure boom. European governments demand greater control over defence equipment, more local production, and a larger?share of the industrial benefits. U.S. arm makers have responded by 'expanding their manufacturing in Europe, forming joint-ventures and offering more tailored product. Daniel Tenney is Lockheed Martin’s senior vice-president of global business strategy and development. He said: "We heard loudly that Europeans want greater sovereignty and more localised capabilities." PLEDGES OF LOCALIZATION U.S. firms argue that it's faster and cheaper to purchase proven American systems rather than develop new ones. They also pledge to localise technology and production. Lockheed announced at Farnborough that a Patriot interceptor with a lower cost would be developed in collaboration with European and U.S. Partners. This announcement comes just a few days after Lockheed announced plans to develop an Army Tactical Missile System with Germany's Rheinmetall. Raytheon, RTX’s Raytheon, announced recently that it has partnered with European companies to increase Stinger production. This includes assembling the missiles in The Netherlands. Thomas Laliberty is the president of Raytheon’s land and aerial defence systems. He said that Europeans gain from widely used systems, like the Patriot. The many countries using the Patriot pool their funding to support such features as a database of threats. He said that the collective benefits them a great deal. Other defence-tech companies are also trying to make a move. Anduril has increased its UK workforce, and is establishing local production in Poland of its Barracuda 500M cruise missile. Richard Drake, Anduril UK's General Manager, said that each government has different needs for?localisation. EUROPE?STRIVES TO INDEPENDENCE Some Europeans are concerned that the U.S. may be less willing to or able to supply weapons, parts, or other support, especially if American defense companies have to prioritize U.S. military requirements in other regions. Industry insiders and experts say that Europeans are no longer interested in finished products. They want to have access to the technology necessary to modify, repair and maintain their own equipment. Fabio Dalpan, senior partner of Boston Consulting Group in Milan, said that they want "a significant transfer of IP". The U.S. defense industry is heavily dependent on Europe, but the concern for U.S. firms is if this trend towards increased autonomy will continue. Tom Waldwyn of the International Institute for Strategic Studies in London said that this is "of great concern". Some equipment, like F-35 fighters and Patriot air-defence systems, cannot be quickly replaced by Europe. Sash Tusa is an aerospace and defense analyst with UK-based Agency Partners. He said that in other areas, "European capabilities may be good enough" and in cases where the country has a huge advantage in terms of sovereignty, they may even be cheaper. He added that this includes medium-range missiles for air defence. Analysts say that Europe is progressing in its efforts to wean itself off U.S. technology in certain?areas such as early-warning aircraft. NATO announced a $4.5 billion plan for up to 10 Saab GlobalEye'surveillance aircraft to replace aging AWACS - early warning aircraft. This is a Swedish solution over a rival system from U.S. planemaker Boeing. Europeans, meanwhile, are working on developing new technologies. The British government announced that it would adopt a new unmanned fighter aircraft developed by UK-based BAE Systems as its "operational concepts demonstrator" at the airshow. This is despite the fact that a number of U.S. firms are already developing similar planes, some of which were displayed at Farnborough. Last week, Air Vice-Marshal Jim Beck of the UK Royal Air Force, director of capability, said that Britain's program would have many vendors involved, but it would be "sovereign". "We must have the freedom to use our equipment at our discretion." (Reporting and editing by Joe Brock, Sharon Singleton, Cassell Bryan Low)
The RPT-India stock benchmarks have their worst week in the last four months, as crude oil tops $100
Indian shares dropped 'on Friday', as oil prices rose to $100 per barrel, amidst the Middle East crisis.
By 10:00 a.m. IST the benchmark Nifty 50 index fell 0.95%, while the BSE Sensex dropped 1.03%, to 75,609.4. Both were on track for a?fifth consecutive session of losses.
The team has lost between 2.8% and 3.2% in the last week, and is on track to have their worst performance for four months.
Donald Trump, the U.S. President, promised on Thursday a "major punishment" against Iran and its Houthi ally after Yemeni fighters attacked two Saudi oil tanks in the Red Sea. This extended the Middle East war to a new major shipping chokepoint.
India is at risk from higher oil prices, as it is the third largest crude importer/consumer in the world. Higher oil prices can cause inflation, increase the trade deficit, and reduce growth and corporate margins.
Sunny Agrawal is the head of fundamental analysis at SBI Securities.
15 of 16 major sectors posted losses. The broader small and mid-caps both fell by 1.3% and 0.1% respectively.
Interglobe Aviation and Infosys both fell by about 2.2% following disappointing?June-quarter results. Oil marketing companies BPCL HPCL and Indian?Oil each fell by about 2% on the back of rising crude oil prices.
Ramco Systems dropped 10% after reporting a drop in quarterly profits.
Cyient and Suryoday?Bank, which buck the trend, gained 2% and 7.5%, respectively, after posting a rise in their June quarter profits.
(source: Reuters)