OPEC+ Cheer to Boost India's State-Owned Oil Refiners
Good morning, this is Chiranjivi Chakraborty, an equities reporter in Mumbai. After their longest losing streak on record, Indian stocks look poised for a rebound. Nifty futures indicate a positive start for the market as easing concern around US tariffs on Canada and Mexico lift Asian equities. Back home, traders are stumped by the National Stock Exchange's decision to change the expiry schedule for its futures and options contracts, with the move being seen as a bid to wrest market share from smaller rival BSE Ltd.'s weekly option contracts.
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CNBC
5 hours ago
- CNBC
Two brokers vie to be Asia's Robinhood as Hong Kong expands crypto support
Stock analysts are getting excited about the potential boost to Asian crypto trading after Hong Kong's stablecoin bill takes effect on Friday. Stablecoins are virtual assets that reference government-issued, or fiat, currencies. Hong Kong's bill formalizes the process for financial companies to issue and manage the virtual assets, similar to the U.S. GENIUS Act . For now, Morgan Stanley analysts expect the main application for stablecoins centers around crypto trading, and say it could attract more institutional investors to the asset class. They view online brokerage Futu Holdings as the best play, and rate it overweight with a $164.25 price target. Citi analysts prefer its rival Up Fintech , also known as Tiger Brokers, and upgraded it to buy from neutral, according to a report published late on July 21. They maintained a neutral rating on Futu, citing the stock's recent run higher. Both companies, which listed in the U.S. in 2019 before Robinhood went public, operate online brokerages for trading stocks and cryptocurrencies. They have their roots in mainland China, but have evolved to focus more on Hong Kong and Singapore due to Beijing's capital controls and crypto bans. The crypto trading market in Hong Kong and Singapore is $640 billion large, even after accounting for competition from unlicensed mainstream crypto exchanges, the Citi analysts said. That positions Up Fintech and Futu to potentially see gains similar to those of Robinhood, the analysts said. They said a major support for Robinhood's stock surge in the last several months is the company's crypto trading revenue – the segment doubled in the first quarter from a year ago, far faster than Robinhood's 50% growth in overall revenue during that time. Crypto has also grown from 3% of Robinhood's total revenue to 21% between 2020 and 2024, the Citi report said. Robinhood is set to release earnings Wednesday local time. Up Fintech and Futu have not yet disclosed the date of their next earnings releases. The Citi analysts raised their price target on both stocks: to $14 from $9.50 for Up Fintech, and to $176 from $113 for Futu. Part of their additional optimism on Up Fintech comes from possible business opportunities with Avenir Group, an investment firm linked to the founder of bitcoin trading exchange Huobi. Avenir acquired a 5.9% stake in the stock in late April. "We see potential upside for TIGR if i) Avenir Group could use TIGR as the designated crypto exchange for OTC trading; ii) if Avenir Group could potentially use TIGR as its designated custodian bank, paying TIGR a higher custodian fee to help support TIGR's crypto biz development," Citi said. To be sure, there are many differences between the U.S. crypto environment and that of Hong Kong. In contrast to Beijing's more conservative stance in mainland China, Hong Kong, as a special administrative region of the country, has become the nation's test bed for remaining globally competitive in finance. Both Citi and Morgan Stanley analysts expect Hong Kong's stablecoin support to initially focus more on how the Chinese yuan can be used for international payments. But the region's bigger ambitions remain clear as U.S. President Donald Trump's son Eric is slated to headline a bitcoin conference in Hong Kong next month. —CNBC's Michael Bloom contributed to this report.
NBC News
7 hours ago
- NBC News
Confusion surrounds Air India as crash dents national pride
Before one of its planes crashed just after takeoff last month, killing at least 260 people, Air India had been a symbol of the country's global rise. Only two years earlier, chief executive Campbell Wilson had inaugurated a brand-new Airbus A350, Air India's first, calling it 'a declaration of Indian aviation's resurgence on the world stage.' The aircraft's delivery made headlines across the country, where the public cheered Air India's transformation from a neglected state-owned flagship carrier into a modern airline that its new owners, the Tata Group, hoped would become the world's biggest. Under the Indian conglomerate, which founded the airline in 1932 and bought it back in 2022 after it spent decades under government operation, Air India was making big moves, announcing a record order in 2023 of 470 aircraft valued at more than $70 billion. A year later, the airline said it had begun a $400 million retrofit of its legacy fleet, accelerating the upgrade by leasing jets from other airlines, including Delta. That momentum came to a grinding halt last month when a London-bound Boeing 787 Dreamliner crashed seconds after takeoff in the northwestern Indian city of Ahmedabad, killing all but one of the 242 people aboard plus 19 others on the ground in one of India's worst aviation disasters. Air India has since been under immense pressure to answer for the crash, but bereaved families were left with more questions after investigators released a preliminary report this month that said the plane's fuel switches had been wrongly cut off, leading to speculation that one of the pilots might have done it accidentally or even intentionally. Indian investigators and the U.S. National Transportation Safety Board, which is involved in the crash investigation as the aircraft is U.S.-made, said such conclusions were irresponsible. 'Investigations of this magnitude take time,' NTSB Chairwoman Jennifer Homendy said, while India's Aircraft Accident Investigation Bureau urged the public and the media to 'refrain from spreading premature narratives.' But Indian commentators were already irate. 'Why do this rumor mill mongering about possible problems with the pilot?' Arnab Goswami, a firebrand anchor, said on his conservative Republic Media Network. 'So that across the world the impression goes that Indian pilots cannot fly?' Capt. C.S. Randhawa, a former pilot for Air India and the Indian air force, said the suggestion that one of the pilots may have crashed the plane deliberately has 'demoralized the pilots in the country.' 'All pilots are up in arms, and it's not a good thing. The pilots have to fly with that mental attitude,' Randhawa, who is currently the president of the Federation of Indian Pilots, told NBC News. The final report is due next year. On top of the lack of clarity, some British families hoping to bury their loved ones said they had received the remains of the wrong people, according to the Daily Mail, which cited a lawyer representing them. The Indian foreign ministry said Wednesday that all remains were being handled with 'utmost professionalism' and that it was working closely with the British side to address concerns. Air India was also warned last week by India's aviation regulator that it could face enforcement action over more than two dozen safety violations from this year and last year, Reuters reported, citing government notices. They include pilots not being given mandatory rest and poor compliance with simulator training requirements. The airline, which voluntarily disclosed the problems last month, said Friday that it would respond to the regulator and that it 'remains fully committed to ensuring the safety of its passengers and staff.' Air India was already under enormous pressure to clean up its reputation after falling into disrepair during its nearly 70 years of government ownership. Its reform nevertheless aligned perfectly with Prime Minister Narendra Modi 's nationalist narrative of turning India into a global superpower. 'Given its legacy, the brand remains synonymous with India,' said Shelley Vishwajeet, a New Delhi-based aviation journalist and author of 'The IndiGo Story,' a book about the Indian airline. He added that the cultural transformation within Air India 'has been a challenge' for its new owners. Things moved quickly after the takeover by the Tata Group, which consolidated several airlines it controlled, including Vistara and Air Asia India, into two entities: the full-cost carrier Air India and its budget arm, Air India Express. Vistara, which was partly owned by Singapore Airlines, was particularly beloved by Indians, known for its modern planes and best-in-class customer experience. When it merged with Air India, travelers and crew hoped that Air India would be the true Vistara successor. But Air India has struggled to deliver change as fast as some had hoped. 'They're struggling with maintenance issues, disrepair issues, and all these things are taking time,' Randhawa said.
11 hours ago
Trump's meeting with a key European official comes as his tariff deadline nears
EDINBURGH, Scotland -- EDINBURGH, Scotland (AP) — Donald Trump is meeting Sunday with European Commission President Ursula von der Leyen, taking a break from golfing in Scotland to discuss trade as both sides seek an agreement on tariff rates now that the White House's deadline to impose stiff tariff rates is looming. Trump played golf Saturday at his course in Turnberry on the southwest coast of Scotland and is expected to hit the links again frequently during his five-day visit. On Tuesday, he'll be in Aberdeen, in northeast Scotland, where his family has another golf course and is opening a third next month. Trump and his son Eric are planning to help cut the ribbon on the new course, where public tee times starting Aug. 13 are already on offer. The visit with von der Leyen is expected to be behind closed doors and few further details have been released. Leaving the White House on Friday, Trump said 'we have a 50-50 chance, maybe less than that, but a 50-50 chance of making a deal with the EU.' He said the deal would have to 'buy down' the currently scheduled tariff rate of 30% on the bloc of 27 member states. Later, von der Leyen posted on X that, 'Following a good call' with Trump, the pair had 'agreed to meet in Scotland on Sunday to discuss transatlantic trade relations, and how we can keep them strong.' The U.S. and EU seemed close to reaching a deal earlier this month, but Trump instead threatened a 30% tariff rate on the bloc of nations. Still, Trump's original deadline for beginning such tariffs has already passed, and is now delayed until at least Friday. Flying to Scotland to enjoy his golf courses hasn't stopped the president from talking trade. After going to Turnberry to play nine holes, have lunch, then play nine more, Trump posted that he'd block any trade deals between the U.S. and Cambodia and Thailand since the two southeast Asian countries remain locked in violent clashes in long-disputed border areas. Trump wrote that he spoke with Cambodian Prime Minister Hun Manet and Phumtham Wechayachai, the acting prime minister of Thailand, to call for a ceasefire. 'I am trying to simplify a complex situation!' he wrote on Truth Social after disclosing his conversation with the Cambodian leader. After speaking with Wechayachai, Trump said both countries want peace and added: 'Ceasefire, Peace, and Prosperity seems to be a natural.' The actual likelihood of a deal with the EU, meanwhile, remains to be seen. Trump recently said he thought the odds of reaching a framework with Japan was 25% — but the U.S. and Japan subsequently announced an agreement this past week. The president also bragged earlier in his term that he would leverage constant threats of steep U.S. tariffs around the globe to negotiate better rates and shrink trade deficits with some of Washington's key allies. But, so far, that effort has fallen well short of expectations, meaning the onus may be on Trump to be able to announce an agreement with a bloc as key to global commerce as the EU. Trump is also set to meet Monday in Scotland with British Prime Minister Keir Starmer, after the two announced a trade framework in May and a larger agreement last month during the G7 in Canada. Trump says that deal is concluded and that the pair will discuss other matters — though the White House has suggested it still needs some polishing. Without an EU deal, the bloc said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.
