The British Retail Consortium, Food and Drink Federation, Recruitment and Employment Confederation, and UK Hospitality write to Government

Four trade bodies say proposals for guaranteed hours under the Employment Rights Act could threaten quality jobs.

The British Retail Consortium, Food and Drink Federation, Recruitment and Employment Confederation, and UK Hospitality jointly wrote to the Government warning that the measure could result in diminished opportunities and worse conditions for workers.

They put forward amendments to the policy which they believe would prevent “the double whammy of increasing unemployment and fewer young people entering the labour market”.

The letter stated: “Across our sectors, concern is deep and growing that the current approach risks stripping flexibility from the labour market at precisely the wrong moment.

“With demand already weakened, poorly designed guaranteed hours measures could become a tipping point, pushing employers to reduce hiring, limit hours or withdraw flexible roles altogether, denying work to those who need it most, or moving to less secure, more casual models of engagement.”

A Government spokesperson responded: “We will only achieve a thriving economy once people have a wage they can count on, which is why we’re giving greater certainty to over half the UK’s workforce through our Employment Rights Act.

“We will ensure people can have the security they need by giving eligible workers the right to guaranteed hours, and we will work closely with workers and employers on how the measures are implemented.”

Global IT spending has been revised sharply upward — from $6.15 trillion in February to $6.31 trillion in just two months — and the driver is almost entirely AI. That is the assessment of John-David Lovelock, Chief Forecaster at Gartner, who told ET Now that AI-optimised servers and hyperscaler data centre buildouts are adding significant sums to technology investment forecasts worldwide.

“We are building the foundation for what we need to run AI large language models and agents in the future,” Lovelock said, noting that enterprise networking equipment spending has also risen as a direct knock-on effect of the hyperscaler expansion.

India’s opportunity in managed services

Despite overall IT services growth running at a modest 3–4%, Lovelock sees a genuine opportunity opening up for India. As CIOs globally shift their internal teams away from routine, commoditised work toward strategic AI initiatives, a labour gap is emerging — and managed services providers are well placed to fill it.

The next phase of that opportunity, he said, lies in managed services providers building AI and agentic automation into their offerings, creating a new layer of cost efficiency for global clients. India, with its deep services talent base, is well positioned to capture this demand.

The uncomfortable reality for services firms

But Lovelock did not shy away from the structural challenge facing Indian IT. The industry is at a crossroads, he said — and the dynamics are unfavourable for pure services players compared to software companies.

When a software firm invests in AI, clients reward it with larger contracts for richer features. When a services firm does the same, clients expect the efficiency gains to be passed back to them in the form of lower prices. “Services firms spend money to bring in AI-enabled delivery and they are rewarded with smaller contracts,” Lovelock said plainly. That asymmetry is a structural headwind the entire global services industry — not just India — must navigate.

India does not need to win the data centre race

On the question of India’s participation in the AI infrastructure buildout, Lovelock offered a reassuring perspective. Unlike cloud computing, where data centres need to be close to end users due to latency constraints, AI delivery can tolerate the delay involved in distance. This means India does not need to match the United States — which accounts for over 50% of global AI spending — in mega data centre construction to remain relevant.Having local data centres would help India build its own large language models and domain-specific AI, but it is not a prerequisite for benefiting from and contributing to the global AI economy.

Margins under pressure near to mid-term

For IT companies broadly, Lovelock warned that margins will face significant pressure in the near to medium term. The industry is still in an investment phase — overbuilding data centre capacity ahead of demand — and many companies are offering AI products, services, and tokens at reduced prices or free to build user bases. A clear, standardised path to monetising that infrastructure has yet to emerge, and the means of doing so vary widely across companies.
The broader message: the AI era creates real opportunity for India’s IT sector, but the business model of services delivery is being fundamentally disrupted — and firms that do not embed AI into how they work, not just what they sell, risk being left behind.

SYDNEY — Australia’s $12.6 trillion residential property market is showing clear signs of divergence and moderation in early 2026, with house prices falling in Sydney and Melbourne while resource-driven cities like Perth and Brisbane continue to post strong gains amid persistent supply shortages and shifting interest rate pressures.

The latest data from Cotality released in April reveals national dwelling values rose a modest 0.7% in March, bringing first-quarter growth to 2.1%. While this marks continued appreciation, the pace has slowed noticeably from late 2025, reflecting higher borrowing costs, cost-of-living pressures and growing buyer caution in the country’s two largest markets.

Sydney home prices fell 0.2% over the first three months of the year, while Melbourne recorded a 0.6% decline. Together, these two cities — which account for roughly 55-60% of the national market — are exerting downward pressure on the broader index. Median house prices now stand at approximately $1.295 million in Sydney and $828,000 in Melbourne.

In contrast, Perth surged 7.3% in the March quarter, Brisbane rose 5.1%, Adelaide gained 3.6%, and smaller capitals like Darwin, Hobart and Canberra also posted positive growth. This “two-speed” dynamic has become a defining feature of the 2026 market, driven by differing economic conditions, migration patterns and housing supply levels across states.

Factors Driving the Split

Economists point to several key influences. Western Australia and Queensland continue to benefit from strong resources sectors, population inflows and relatively affordable entry points compared to the eastern seaboard. Perth’s median dwelling value is approaching $1 million after years of rapid appreciation, yet demand remains robust due to tight inventory.

Sydney and Melbourne, however, are feeling the pinch of higher interest rates and stretched affordability. The Reserve Bank of Australia’s rate settings have curbed borrowing capacity, particularly for buyers in premium segments. Lower-quartile properties in these cities have held up better, while higher-end homes have seen noticeable softening.

A federal first-home buyer scheme expansion has also contributed to price pressure at the lower end of the market. Cotality data shows eligible homes rose 6.7% in the six months following policy changes — nearly double the growth in higher-priced segments — raising concerns the initiative may be inflating entry-level prices rather than purely improving access.

National Outlook and Forecasts

Major banks and forecasters have moderated their 2026 predictions. Commonwealth Bank now expects national dwelling price growth of around 5% this year and 3% in 2027, down from previous estimates. ANZ forecasts capital city prices to rise 2.8% in 2026 and 2.1% in 2027, citing higher rates and affordability constraints.

Despite the cooling, fundamentals remain supportive in many areas. Record-low rental vacancy rates continue driving investor interest, while net overseas migration sustains demand. However, new housing supply is gradually increasing, which could help ease pressure later in the year and into 2027.

Rental Market Remains Tight

The rental sector shows little sign of relief. National median rents continue climbing, with some regional areas in South Australia seeing year-on-year increases of 12.5%. Vacancy rates hover near historic lows, exacerbating affordability challenges for tenants and adding fuel to political debates ahead of the federal budget.

Challenges and Policy Implications

Housing affordability remains a critical issue heading into the 2026 federal budget. Experts urge policymakers to prioritize boosting supply, protecting rental stock and removing barriers to downsizing rather than measures that could further inflate prices. Calls for tax reform, planning system overhauls and incentives for build-to-rent projects are growing louder.

First-home buyers face particular hurdles, with the national median property price hovering near $908,000-$933,000. Only about 30% of properties fall below $700,000, intensifying competition in the affordable segment.

Regional Variations Offer Opportunities

Buyers and investors are increasingly looking beyond the traditional east coast hotspots. Perth, Brisbane and Adelaide offer stronger growth prospects in the near term, though analysts warn that rapid gains could moderate as affordability constraints spread. Regional markets have also shown resilience, with some areas outperforming capitals due to lifestyle shifts and remote work trends.

What Lies Ahead

The Australian real estate market in 2026 is transitioning from the boom conditions of recent years to a more balanced — yet still challenging — environment. While national values continue inching higher overall, the widening city-by-city and segment-by-segment gaps suggest a period of selective growth rather than uniform appreciation.

Prospective buyers may find improved negotiating power in Sydney and Melbourne, particularly at the upper end, while investors seeking yield and growth potential are eyeing western and northern markets. For sellers, timing and pricing strategy will be crucial in a market that rewards realism over optimism.

As the year progresses, interest rate decisions, federal budget measures and global economic signals will play key roles in shaping the trajectory. For now, Australia’s housing market remains resilient but clearly cooling, offering both opportunities and risks for participants across the spectrum.

AUSTIN, Texas — Two people were shot and injured Sunday night outside the popular Sam’s BBQ restaurant in East Austin, prompting a large police response and leaving the suspect still at large Monday as detectives continue to interview witnesses and search the area.

Austin Police Department officers responded to multiple 911 calls reporting shots fired around 8:26 p.m. in the 2000 block of East 12th Street near Chicon Street. Upon arrival, they found two victims suffering from gunshot wounds outside the beloved East Austin barbecue landmark. Both were transported to area hospitals with non-life-threatening injuries.

No fatalities have been reported, and authorities described the incident as isolated with no immediate threat to the broader public. East 12th Street between Chicon and Alamo streets remained closed for several hours as crime scene investigators processed the area.

Busy Night in Vibrant Neighborhood

The shooting occurred in a bustling section of East Austin known for its food scene, nightlife and cultural vibrancy. Sam’s BBQ, a longtime neighborhood staple at 2000 E. 12th St., had been hosting events earlier in the day, and nearby businesses including the Austin Daiquiri Factory were active on a busy Sunday evening.

Witnesses described hearing multiple gunshots followed by chaos as people sought cover. Police have not released detailed descriptions of the victims or the suspect. Detectives are reviewing surveillance footage from the area and interviewing those present at the time of the incident.

The suspect fled the scene on foot, and no vehicle description or suspect sketch has been released. APD urged anyone with information to contact detectives or Austin Crime Stoppers. A reward for information leading to an arrest may be offered.

Community Reaction and Safety Concerns

East Austin residents expressed shock and frustration over yet another violent incident in the rapidly changing neighborhood. Longtime locals noted the area’s transformation from a historically working-class and minority community to a hub for new development, restaurants and nightlife. Some voiced concerns about rising crime amid gentrification pressures.

Sam’s BBQ owners and staff have not issued a public statement, but the restaurant is a beloved institution known for its smoked meats and community ties. The shooting’s proximity to the establishment has drawn extra attention from both patrons and local media.

Austin Police Chief has characterized the event as isolated and urged calm while the investigation proceeds. No connections to other recent incidents have been reported.

Broader Context of East Austin Violence

While Austin remains one of the safer major cities in Texas, sporadic shootings in East Austin have raised ongoing community discussions about public safety, policing strategies and socioeconomic factors. City leaders have invested in violence interruption programs and increased patrols in high-activity areas, but incidents like Sunday’s continue to test those efforts.

This latest shooting comes amid a busy weekend in the city, with various events drawing crowds to East Austin venues. Officials reminded residents to remain vigilant, especially during evening hours in entertainment districts.

Investigation Ongoing

Austin Police continue to gather evidence and seek tips from the public. Anyone with video footage, eyewitness accounts or other information is encouraged to contact APD or Crime Stoppers anonymously. Updates will be released as they become available.

The two victims are expected to survive, according to preliminary hospital reports, though their conditions were not detailed publicly. Family members have not been identified, and police are withholding names pending notification.

As East 12th Street reopens and the neighborhood returns to its usual rhythm, the search for the suspect remains active. Authorities emphasize that this appears to be a targeted or isolated dispute rather than a random act of violence, though the full motive has not been determined.

For now, the community around Sam’s BBQ and surrounding blocks is processing another instance of gun violence in a city that continues to grapple with growth, change and safety concerns. Police ask for patience as detectives work to bring the suspect into custody and provide answers to those affected.

The shares of One 97 Communications, the parent company of the popular fintech platform Paytm, crashed around 8% on Monday after the Reserve Bank of India (RBI) cancelled Paytm Payments Bank‘s (PPBL) banking licence, following which the company announced it will shut down the subsidiary.

In an exchange filing released after market hours on Friday, Paytm announced that the RBI has effectively cancelled Paytm Payments Bank’s banking licence. Paytm clarified that it does not have any exposure to the associate entity and provides no services in partnership with it. It added that Paytm Payments Bank operates independently.

“There is no direct financial impact on the company since, as previously disclosed, the company had already impaired its investment in PPBL as of March 31, 2024,” it added. “As informed earlier, Paytm (One 97 Communications Limited) and its services, which have been operating without interruption, will continue to operate uninterrupted. These include the Paytm app, Paytm UPI, Paytm Gold and all other services offered by its subsidiaries and associated companies, such as Paytm QR, Paytm Soundbox, Paytm Card Machines, Paytm Payment Gateway, Paytm Money, among others,” it further said.

This comes after more than two years of regulatory scrutiny and restrictions, including a ban on fresh deposits in 2024. Paytm had obtained a limited banking license in August 2015 that allowed it to take small deposits but not give out loans. The central bank said the bank’s operations were “detrimental” to depositors and public interest, citing compliance lapses, including issues around customer due diligence and governance. The general character of the management of the bank is prejudicial to the interest of depositors as also the public interest,” the statement said, adding “No useful ⁠purpose or ‌public interest would be served by allowing the bank to continue.”

Later on Saturday, Paytm announced that PPBL’s board of directors and shareholders have approved the necessary resolutions to enable the winding up of the company. “The company wishes to assure its shareholders and investors that the winding-up of PPBL and the consequential cessation of the associate relationship are not expected to have any material impact on the business, operations, or financial condition of the company. The company continues to operate its businesses independently and in accordance with applicable laws and regulations,” it added.

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Bernstein on Paytm

RBI’s decision to cancel the banking license of Paytm Payments Bank is likely to be incrementally negative for its parent, Bernstein said in its note. The brokerage described the regulator’s language in its communication as “harsh” and “concerning.” That said, the Societe Generale Group-backed brokerage has retained an ‘Outperform’ rating on Paytm, with a target price of Rs 1,500, implying an upside of around 31% from the previous closing price.

“While Paytm has no role in the current management/board of PPBL (despite the 49% ownership), the harsh language in the RBI’s letter is concerning,” Bernstein said, noting the history of regulatory actions against the business.

“Post the RBI restrictions on Paytm Payments Bank Limited (PPBL) in early 2024, the company did put in time and effort to terminate the interlinkages between PPBL and the core business, reconstitute the board, and take steps to potentially revive operations of the bank,” the note said.

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The brokerage sees no impact on current business or numbers as the operations of PPBL have been suspended for more than a year, and the company has created a clear separation between the payments bank and the parent company, especially after the regulatory action in early 2024.

Bernstein believes this development could clear the way for the company to apply for an NBFC or PPI license, which might enable Paytm to offer certain payment products (e.g., wallet) and credit products.

Goldman Sachs on Paytm

Goldman Sachs maintained its ‘Buy’ rating on Paytm shares, but reduced its target price to Rs 1,400 apiece from Rs 1,470. The latest target price implies an upside potential of nearly 31% from the stock’s previous closing price.

The international brokerage said it sees the RBI’s cancellation of the associate entity’s banking license as an incremental negative, although there is no direct financial impact on Paytm, ET Now reported. The key risk is the potential impact on customer or merchant sentiment, it said.

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While this may act as a near-term overhang, Goldman Sachs added that the core business momentum of Paytm remains intact.

Bonanza Portfolio on Paytm

The cancellation of Paytm Payments Bank licence by Reserve Bank of India is fundamentally neutral for One97 Communications, as the investment had already been fully impaired and operational decoupling was completed in early 2024, said Abhinav Tiwari, Research Analyst at Bonanza. He added that this event largely formalizes the closure of a non core, non contributing entity rather than introducing a fresh financial shock.

“Operationally, the core business remains resilient, with payments GMV and merchant base showing healthy traction, alongside strong growth in financial services distribution. The company has delivered a visible turnaround with positive PAT and improving EBITDA margins, supported by a strong cash buffer. However, the investment case still relies on sustainability. Margins remain thin, ROE trajectory is yet to normalize, and past regulatory lapses continue to weigh on institutional confidence. Overall, while the regulatory overhang reduces, execution consistency over the next few quarters will be critical to justify re-rating,” he added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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