A weekslong selloff in government bonds has intensified in recent days, threatening to drive up borrowing costs across the globe and knocking some momentum out of what had been a furious stock rally. 

With bond prices sliding, the yield on the 10-year U.S. Treasury note, a key benchmark for mortgage rates and other borrowing costs, reached as high as 4.687% Tuesday, its highest intraday level since January 2025. 

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The shares of Power Finance Corporation (PFC) have gained more than 17% in 2026 so far, while those of REC have declined around 9%, with analysts commenting on whether investors should buy the two stocks as the mega merger process of the two PSU non-banking financial companies marches on.

Earlier in February this year, Union Finance Minister Nirmala Sitharaman after presenting the Union Budget, said that the government will restructure Power Finance Corporation (PFC) and Rural Electrification Corporation (REC) in order to streamline operations. The shares of the two companies had sharply jumped following the announcement.

The Cabinet Committee on Economic Affairs earlier cleared a proposal under which PFC acquired 52.63% of the government’s holding in REC. With this acquisition, PFC and REC are currently operating in a holding subsidiary structure. The proposed merger would consolidate the two entities into a single balance sheet, subject to statutory approvals and detailed structuring.

What should investors do?

Fresh exposure in PFC and REC will be better if staggered than chased after the merger headline, said Harshal Dasani, Business Head at INVasset PMS. He highlighted that the boards of the two companies have cleared the merger proposal, while completion may still depend on regulatory and structural approvals. “That means the trade is no longer only about power financing fundamentals. It is also about swap ratio, timing and execution clarity,” the analyst said.Between the two, PFC offers cleaner visibility because it is the parent entity and is better placed as the consolidation anchor, Dasani said, adding that REC’s underperformance may create a catch-up trade if the swap ratio is favourable, but that is not the same as fundamental comfort. “The core business remains structurally supported by power capex, transmission, renewable financing and improving state utility discipline, but valuations have already priced in a fair amount of that cycle,” he said.

“For fresh money, the prudent approach is to wait for the swap ratio or accumulate only in tranches. PFC looks better suited for conservative exposure. REC is more of a merger-arbitrage call and carries higher event risk. The one thing to avoid is treating the merger as guaranteed upside. In PSU financials, structure can matter as much as earnings,” the analyst further said.

PFC and REC share prices

PFC shares have fallen more than 3% in one week and 9% in one month to close at Rs 429.35 apiece on Wednesday. The stock is overall up nearly 19% in 2026 so far. In the longer term, the shares of the company delivered 6% returns over one year, 226% returns over three years and 362% in five years. The company currently has a market capitalisation of nearly Rs 1.43 lakh crore.
REC shares meanwhile declined over 3% in one week and 12% in one month, closing at Rs 333 apiece on Wednesday. The stock has declined 9% in 2026 so far and 15% in one year. In the longer term, the shares of the company jumped 158% in three years and 217% in five years. The company currently has a market capitalisation of more than Rs 88,210 crore.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

The late Queen Elizabeth II was “very keen” that her second son, then the Duke of York, take on a “prominent role in the promotion of national interests” as the United Kingdom’s special representative for international trade and investment, according to confidential papers on his 2001 appointment released by Downing Street this week.

The cache of 11 files, published on Thursday following a successful Liberal Democrat motion in the Commons, sheds fresh light on how Andrew Mountbatten-Windsor came to occupy one of British business diplomacy’s most senior unpaid posts, a role he held for a decade and which has since become the focus of a Metropolitan Police criminal inquiry.

A royal recommendation, in writing

In a memorandum to the then-foreign secretary Robin Cook dated February 2000, Sir David Wright, the chief executive of British Trade International, the predecessor to today’s Department for Business and Trade, set out the palace’s thinking in unusually direct terms.

“The Queen’s wish is that the Duke of Kent should be succeeded in this role by the Duke of York,” Sir David wrote. “The Duke of Kent is to relinquish his responsibilities around April next year. That would fit well with the end of the Duke of York’s active naval career. The Queen is very keen that the Duke of York should take on a prominent role in the promotion of national interests.”

He added: “No other member of The Royal Family would be available to succeed the Duke of Kent. The Duke of York’s adoption of his role would seem a natural fit.”

For Whitehall officials charged with selling British plc abroad, the recommendation from Buckingham Palace was, in the language of the time, treated as decisive.

The envoy who preferred ‘sophisticated countries’

If the appointment had a regal sheen, the papers also reveal a markedly less flattering portrait of the working envoy. In a letter dated 25 January 2000, Kathryn Colvin, then head of the Foreign Office’s Protocol Division, recorded a briefing from the duke’s principal private secretary, Captain Neil Blair, on his employer’s travel preferences.

The ex-prince, the note records, “tended to prefer more sophisticated countries” and preferred “ballet over theatre”. Captain Blair also stipulated that “the Duke of York should not be offered golfing functions abroad. This was a private activity and if he took his clubs with him he would not play in any public sense”.

For an envoy whose taxpayer-funded brief was to open doors for British exporters in fast-growing emerging markets, the attitudes set out in the briefing will sit uncomfortably with the SME exporters who relied on the office to act as a battering ram into difficult jurisdictions. As former business secretary Sir Vince Cable noted earlier this year, the conduct of Andrew’s tenure deserves serious examination by investigators, not least because the role traded on the prestige of the Crown to win commercial advantage.

From soft power to criminal inquiry

Andrew Mountbatten-Windsor’s arrest on 19 February, his sixty-sixth birthday, has transformed what was once a footnote of royal soft power into a constitutional and commercial headache for the Government. The arrest followed allegations that the former envoy shared sensitive material with the late paedophile financier Jeffrey Epstein during his time as trade representative.

Emails published by the US Department of Justice indicate that Andrew forwarded official reports of trips to Singapore, Hong Kong and Vietnam to Epstein in 2010 and 2011, within minutes of receiving them from his then special adviser. Metropolitan Police Commissioner Sir Mark Rowley has reportedly pressed US authorities to expedite the release of unredacted exchanges held in the wider Epstein files.

Detectives are understood to be considering whether to broaden the scope of their inquiry beyond the offence of misconduct in public office — a notoriously difficult charge to mount — to encompass potential corruption offences as well as alleged sex trafficking. Any prosecution will fall to the Crown Prosecution Service’s Special Crime Division, which handles the most sensitive matters.

Lord Peter Mandelson, the former business secretary and a mutual acquaintance of both men, was himself arrested following the release of the Epstein files in the United States, accused of having disclosed sensitive information. Both men deny any wrongdoing and have been released under investigation; both maintain they had no knowledge of Epstein’s crimes.

What it means for British business

For owner-managers and SME exporters, the readership Business Matters has championed for more than two decades, the documents matter for reasons that go well beyond royal soap opera.

The Special Representative for International Trade and Investment was, until 2011, the public face Britain put forward to court inward investors and to bang the drum for UK companies in capitals from Riyadh to Astana. It was, in effect, a brand. The newly-published file makes plain that the appointment process was driven less by a forensic assessment of commercial fit than by dynastic convenience and palace preference.

That has implications for how the present generation of trade envoys, and the export support architecture around them, is scrutinised. UK Export Finance has spent the past three years dramatically expanding its direct support for SME exporters, precisely because the soft-power model that underpinned the Andrew era proved fragile when its figurehead became politically toxic. The unwinding of Pitch@Palace, the ex-prince’s own start-up showcase, tells a similar story.

The Government’s decision to release the file, under duress from the Liberal Democrats and against the backdrop of an active criminal inquiry, as the BBC reported earlier this year, is a tacit acknowledgement that public confidence in the way British trade promotion was conducted at the turn of the century has not survived contact with the Epstein files. As RTÉ noted in its coverage of Thursday’s release, the documents arrived “just months after lawmakers accused the king’s brother of putting his friendship with Jeffrey Epstein ahead of the nation”.

For Britain’s exporters, the lesson from these dusty memoranda is brisk and uncomfortable: the credibility of UK trade promotion abroad now depends on transparent process, not royal patronage. The sooner Whitehall internalises that, the better for the businesses that pay its salaries.

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LOS ANGELES — Cameron Diaz and her husband Benji Madden announced the birth of their third child, a son named Nautas Madden, on May 4, 2026.

Madden, 47, shared the news on Instagram with a post featuring an image of a pirate ship titled “Nautas Madden.” He wrote: “Cameron and I are Happy, Excited, and feeling so BLESSED to announce the birth of our third Child, Nautas Madden. Welcome to the world Son!!👊❤️ We love life with our family- our kids are healthy&happy, and we are grateful!!!🙏🙏having a blast ❤️Sending all our best wishes- the Madden Family ❤️🙏👊🏴‍☠️”

Diaz, 53, responded to the post with heart emojis. The couple, married since January 2015, now has three children.

The newborn joins older sister Raddix Madden, born December 30, 2019, and brother Cardinal Madden, born March 22, 2024. Both previous children were born via surrogacy. The family has kept the children’s faces private and shared no public photos.

The name Nautas has nautical origins, meaning “sailor,” “navigator” or “one who embarks on a journey and fears not the unknown,” according to reports on the couple’s announcement.

Diaz stepped back from acting after 2014’s “Annie” to focus on family and personal life. She has spoken in past interviews about the joys of motherhood but made no new public comments on the latest birth.

Madden, co-founder of Good Charlotte, continues music and production work. The couple met in 2014 through mutual friends and maintained a relatively private relationship before marrying in a secret ceremony in 2015.

The announcement generated widespread attention across entertainment media. Fans and outlets noted Diaz becoming a mother again at age 53. The couple has not addressed public speculation about their family planning or use of surrogacy in recent statements.

Diaz previously described her approach to family life as intentional and fulfilling. The couple resides primarily in Los Angeles and has emphasized gratitude for their children’s health and happiness.

Raddix was six years old at the time of her brother’s birth. Cardinal turned two in March 2026. The family has grown steadily while maintaining privacy around the children.

No details were released about the circumstances of Nautas’ birth, including date, location or medical information beyond the announcement. The couple has historically shared minimal specifics about pregnancies and births.

Diaz last appeared in a major film role years ago but has remained active in business ventures, including investments and wellness interests. She has expressed contentment with her life beyond Hollywood.

The Madden-Diaz family has received congratulations from celebrities and fans following the Instagram post. The couple rarely shares joint family updates, making the May 4 announcement notable.

Diaz turned 53 in August 2025. Madden turned 47 in March 2026. Their relationship has been described as supportive, with both prioritizing family time.

The arrival of Nautas marks the couple’s third child in roughly six and a half years. They have consistently chosen unique names with personal significance for each child.

Public interest in the family remains high due to Diaz’s long career in films such as “There’s Something About Mary,” “Charlie’s Angels” and “The Holiday.” She has not confirmed any return to acting.

Madden continues performing with Good Charlotte and other projects. The couple has balanced their professional lives with raising young children.

No additional statements from the couple have been released since the initial Instagram announcement. The family is reported to be healthy and enjoying time together.

The news highlighted broader conversations about later-in-life parenthood among celebrities, though Diaz and Madden have not commented on age-related aspects.

As of mid-May 2026, the couple has not shared further updates or photos. Their approach continues to center on privacy for their three children.

GE Vernova T&D India shares have delivered a power-packed performance over the past year, soaring 164% to emerge as the top multibagger in the BSE Power index. Riding strong summer demand, the stock continues to gain momentum, supported by better-than-expected Q4 earnings and robust fundamentals.

At Rs 4,679, GE Vernova shares have been hovering near their 52-week high of Rs 4,849 and displaying a strong uptrend following the January-March quarter earnings announcement, where the transmission & distribution major reported an 89% year-on-year jump in net profit to Rs 352 crore compared to Rs 186 crore in the same period last year. Revenue soared 42% YoY to Rs 1,640 crore, while its Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) climbed 77% to Rs 440 crore, highlighting strong operational momentum.

The scrip is currently trading above its 50-day and 200-day simple moving averages (SMAs) of Rs 4,086 and 3,288, respectively, according to Trendlyne data.

Decoding the charts, Virat Jagad, Senior Technical Research Analyst at Bonanza, sees GE Vernova T&D India shares trading in a strong bullish zone on the daily chart after a sharp rally from lower levels. Price is trading above key moving averages, indicating that the broader trend remains positive, while RSI near the 50 zone suggests momentum cooling after an overbought phase, he said.

However, the stock is currently witnessing healthy consolidation near the upper range of its rising channel, Jagad said, placing immediate support around Rs 4,250–4,150, followed by a stronger demand zone near Rs 3,950, while resistance is seen around Rs 4,550–4,750. “A sustained breakout above Rs 4,750 could trigger fresh upside momentum toward new highs, while holding above support zones may continue to attract buying interest in the medium term,” he added.

Seasonality remains a factor around this time of the year as long summers in North India increase the peak power demand. At the index level, BSE PSU is up 20% on the basis of one-year returns Power stocks remain in to

Q4 earnings

GE Vernova T&D India reported Q4FY26 results ahead of HDFC Securities’ expectations, driven by a sharp improvement in margins. The brokerage also noted that adjusted margins stood at a robust 30% during the quarter, supported by a healthy revenue mix, variable pricing clauses, and operating leverage benefits.
HDFC Securities further highlighted that annual order inflows remained strong at Rs 14,800 crore, up 37% YoY, although domestic base ordering could remain subdued in the near term until industry capacities ramp up.

HDFC Securities believes export orders, particularly from the US, are likely to offset the temporary domestic weakness while the company management remains confident of securing Rs 7,000–8,000 crore worth of domestic base orders excluding HVDC projects.

Based on the current earnings, PL Capital revised its FY27 and FY28 EPS estimates upwards by 3.7% and 4.8%, respectively. It also highlighted the company’s planned Rs 1,000 crore capex programme aimed at boosting localisation in HVDC systems and strengthening manufacturing capabilities in key transmission products.

According to PL Capital, domestic transmission ordering activity remains healthy with nearly 33 projects under bidding, while export demand is improving on the back of renewable integration and grid modernisation opportunities globally. The brokerage also sees medium-term growth opportunities emerging from hyperscale data centres and the shift toward higher-voltage transmission infrastructure. It remains positive on the company’s strong order pipeline, healthy order book of Rs 21,230 crore and margin improvement initiatives.

Ge Vernova vs peers

Power and capital goods stocks have delivered a mixed performance over the past one year, with Hitachi Energy India Limited emerging as the top performer with a stellar 124% return as of May 20, 2026. It was followed by Adani Power Limited, which gained 98%, while Bharat Heavy Electricals Limited rallied 67% amid continued optimism around power infrastructure and transmission spending. Other notable gainers included Adani Green Energy Limited with 37% returns, Thermax Limited at 26%, CG Power and Industrial Solutions Limited at 24%, and Siemens Limited with an 18% rise. ABB India Limited, Torrent Power Limited, JSW Energy Limited and Tata Power Company Limited posted comparatively modest gains ranging between 4% and 15%, while Power Grid Corporation of India Limited remained largely flat with a 1% return.

On the other hand, renewable and utility-linked names such as Reliance Power Limited, Suzlon Energy Limited and NHPC Limited underperformed sharply, declining 39%, 13% and 8%, respectively.

Should you buy?

Factoring in stronger profitability, HDFC Securities raised its FY27 and FY28 earnings estimates by 7% and 8%, respectively, and maintained a ‘Buy’ rating on the stock with a revised target price of Rs 5,200 from Rs 4,750 earlier.

Meanwhile PL Capital has suggested an ‘Accumulate’ rating, downgrading the stock from ‘Buy’ while raising the target price to Rs 4,650, which is already surpassed. The rating correction comes on the back of strong rally over the past year.

PL Capital said GE Vernova T&D delivered a strong operational performance in Q4FY26, with revenue rising 42% year-on-year and EBITDA margins expanding 400 basis points, aided by a better mix of exports and high-value services as well as the gradual completion of lower-margin legacy contracts.

PL Capital downgraded the stock to ‘Accumulate’ from ‘Buy’ after the sharp rally in share price. It raised the target price to Rs 4,650 from Rs 4,050 earlier.

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