European Commission President Ursula von der Leyen on Wednesday proposed opening the door for Canada to become the European Union’s first “associate member,” a significant step that could bring Ottawa substantially closer to the bloc as its trade dispute with the U.S. shows no signs of abating. 

Speaking in Strasbourg during her annual State of the European Union address, von der Leyen addressed Canadian Prime Minister Mark Carney, who was in the chamber, and called for a major expansion of economic, technological and security cooperation between Canada and the EU.

“I would like to work with you on opening the door for Canada to be the first associate member of the EU,” von der Leyen said, drawing a standing ovation from EU lawmakers before walking over to embrace Carney.

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Von der Leyen said the two sides would move from their existing CETA trade agreement toward what she called an “Alliance for the Future,” aimed at creating a common prosperity and economic security space.

The proposed partnership would deepen cooperation for advanced manufacturing, defense production, energy, critical minerals, artificial intelligence, quantum technology, cybersecurity and the Arctic.

“We see the world with the same eyes,” von der Leyen said, citing shared positions on issues ranging from Ukraine and defense to supply chains and climate change.

“But above all … Europe and Canada believe in democracy,” she said. “This is a partnership not against anyone else, but for our common strength.”

The proposal comes as Canada seeks to diversify its trade away from its heavy reliance on the United States.

Carney has pledged to double Canada’s non-U.S. trade over the next decade following a breakdown in Canada-U.S. trade talks last month that triggered a series of tit-for-tat tariff measures.

Earlier this week, Carney — who is scheduled to address the European Parliament on Thursday — said Canada was seeking a “unique alliance” with the EU, but not membership.

He said more detailed discussions are expected to begin at the Canada-EU summit in Montreal in late October.

But the proposal still faces significant legal and political questions. The EU has historically resisted flexible alliances without a defined legal status. 

Speaking to Reuters on the matter, one EU diplomat expressed surprise at von der Leyen’s announcement, saying the proposal was too vague and warned that the Commission president was “overpromising and won’t be able to deliver.”

Deeper economic integration could also face longstanding trade obstacles. Mark Manger, a professor of political economy and global affairs at the University of Toronto, told Reuters that EU officials have been frustrated by Canada’s protection of its telecommunications and dairy sectors — issues that could complicate efforts to further deepen economic ties.

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It will ultimately be up to EU member states whether the proposal moves forward.

Reuters contributed to this report. 

The number of complaints made by households about water companies to the industry watchdog has risen by a record 84% in a year, driven by customer concern and confusion over rising bills.

The Consumer Council for Water (CCW) said the year-on-year increase was the highest in its 20-year history and showed “just how dissatisfied” many people were.

Water customers in England and Wales have been hit with steep price hikes in recent years. The regulator Ofwat has also allowed firms to put up bills by 36% between 2025 and 2030.

Water UK, which represents firms, said it understood that higher bills was never welcome, but the money was needed “to fund vital upgrades”.

The total number of complaints to the watchdog rose to 15,115 in 2025-26, from 8,235 in the previous year.

Meanwhile, complaints made by households directly to water companies, which is required before complaining to the CCW, rose by 56% to 321,347.

The top three subjects of complaints to the CCW were measured billing, affordability and billing admin.

Mike Keil, the chief executive of the CCW, said the figures “reflect just how dissatisfied many people still are with the state of the water sector”.

He said customers are “impatient to see the benefits” of higher bills.

“Companies need to be clear and open with their customers about how they are investing people’s money to deliver real improvements.”

The CCW assessed each water company’s performance on the number of complaints it received for every 10,000 households it serves, and the amount of effort customers have to put in to get their complaint resolved.

Thames Water and South West Water rated “poor” for both performance measures.

David Bird, retail director at Thames, apologised to customers who “have not received the service they should expect”.

“We know bill clarity has been a particular source of frustration, which is why we have launched a programme to redesign them, so they are easier to understand,” he said.

Bills for the average Thames customer rose by 31% in 2024, but were a lot smaller this year at 3.4%.

South West Water said: “We know there is more to do to improve our customers’ experience. We are taking action by reducing repeat contacts, resolving issues when people contact us for the first time, and ensuring they receive clear, timely communication.”

Portsmouth Water and Bristol Water were the only companies to score “good” in both metrics, retaining their position at the top of the rankings as the sector’s best performers.

Last month, Ofwat approved bill increases for 13 companies to meet increased pressures on infrastructure and the environment.

Five of those companies — Thames, Severn Trent Water, Southern Water, Wessex Water and South East Water — were already permitted to hike bills in 2024.

A spokesperson for industry body Water UK said: “We understand increasing bills is never welcome, but the money is needed to fund vital upgrades to secure our water supplies, support economic growth and end sewage entering our rivers and seas.

The spokesperson said that 94% of complaints are “being dealt with at the earliest possible stage without the need for further involvement from the consumer body”.

“The industry remains committed to improving communication with customers and showing clearly how their money is being used to deliver the improvements they expect,” the spokesperson added.

Shares of Paytm, MobiKwik and Pine Labs rallied up to 6% on Wednesday after the government announced the first-ever Merchant Discount Rate (MDR) on select UPI transactions above Rs 2,000.

In today’s early session, Paytm rose 6% to a day’s high of Rs 1,829 per share, while One MobiKwik Systems rose over 5% to Rs 213 on the BSE. Pine Labs gained nearly 3% to Rs 199 per share on the NSE.

The National Payments Corporation of India (NPCI) on Tuesday announced that the government will introduce MDR on some Person-to-Merchant (P2M) UPI transactions from October 15 onwards, with merchants paying 0.4% on transactions above Rs 2,000. The maximum fee that can be levied on such transactions will be Rs 300 for payments of Rs 75,000 or more.

Also read | UPI transactions above Rs 2,000 to attract 0.4% MDR; check key details

What new UPI charges mean for consumers?

It is important to note that consumers will not be charged for UPI payments, and Person-to-Person (P2P) transfers will remain free. Small merchants classified under the P2PM framework, including vendors that receive up to Rs 1 lakh a month through UPI QR codes, will continue to be exempt from MDR.

Transactions worth up to Rs 2,000 will continue to carry zero charges and account for more than 95% of UPI’s P2M transaction volume, according to the FAQ released by the government. The NPCI clarified that MDR will be borne by merchants and cannot be passed on to customers. This implies that consumers will continue to pay the listed price when using UPI, with no separate transaction or platform fee imposed by UPI apps.

RBI backs MDR charges

The Reserve Bank of India (RBI) backed the introduction of Merchant Discount Rate (MDR) on large-value UPI transactions, saying the move will help strengthen the long-term sustainability of India’s digital payments ecosystem. In a post on X, the central bank said the move would enable UPI to continue scaling, innovating and serving consumers and businesses across the country.The latest move comes after an amendment to the Payment and Settlement Systems Act, 2007, which provides a framework for imposing a Merchant Discount Rate (MDR) on payments through UPI and other notified electronic payment modes. The government, in a statement, explained the rationale for imposing charges, stating that with exponential transaction volumes, the system requires significant and continuous upgrades in cybersecurity, fraud prevention, and infrastructure.

Charges were required for market expansion and self-sustainability, it said, adding that it is necessary to increase competition by encouraging more companies to expand operations, which requires a self-sustaining revenue model. Reliance on subsidies alone is not viable for the next wave of growth, and a balanced framework is required to ensure that UPI remains robust, inclusive and future-ready, the statement further said.

Also read | UPI Charges Explained: Will you pay a fee for Rs 2,000+ UPI payments? Government clarifies what users need to know

‘Someone has to pay the cost’

For nearly seven years, UPI became more and more popular as a transaction could be made so quickly without paying any additional charges. The government has however, repeatedly clarified that UPI will remain free for citizens and person-to-person transactions will continue without charges.

While discussing the costs of digital-payment infrastructure, RBI Governor Sanjay Malhotra in August said, “Someone has to pay the cost”. He stressed that the RBI wants digital payments to remain accessible, affordable and safe, but also sustainable.

What lies ahead?

According to Bernstein, banks could receive about Rs 14,000 crore of this pool, while payment apps could earn around Rs 7,000 crore, and the network about Rs 1,000 crore. Emkay Global Research meanwhile said the latest move will likely benefit Paytm and Pine Labs, while maintaining its ‘Buy’ calls on the stocks and increasing target prices to Rs 2,400 and Rs 230 respectively.

“UPI acquiring now carries a commercial revenue model that is contractual, recurring, and scales with value, in place of a discretionary annual subsidy. This will make the payment business structurally self-sustaining, making the business model much more resilient,” the domestic brokerage said, adding that even on conservative assumptions, it estimates Paytm to generate UPI MDR revenue of Rs 1,120 crore in FY28, and expects Pine Labs to generate Rs 155 crore in the same year.

Bullish brokerage calls for Paytm share price

JM Financial also increased its target price for the shares of Paytm to Rs 2,150 apiece, implying more than 24% upside potential from the stock’s previous closing price, while maintaining its ‘Buy’ call on the stock. The notified MDR rate is materially above the 25 bps JM Financial had modelled in, but the carve-outs are also broader than assumed, forcing our hand to cut the eligible-GMV overlay to 20% (from 30% earlier).

The new charges on UPI transactions are expected to generate incremental revenue of Rs 2.1 billion in FY27 and Rs 4.7 billion in FY28, according to the domestic brokerage. “MDR converts a structurally zero-revenue GMV pool into ‘monetisable’ volume with nearly full flowthrough to EBITDA, not to mention a clear resolution to the long-standing regulatory overhang on UPI monetisation,” it added.

Jefferies recently increased its price target for the shares of Paytm to Rs 2,100 apiece from Rs 1,600 apiece, while maintaining its ‘Buy’ call. The international brokerage highlighted that Paytm stands out on monetisation of its client base in near-zero MDR regime, which is now changing favourably. The fintech platform’s 4.9 crore merchant base and strong loan-origination model should drive 25% revenue CAGR over FY26-29, which, along with operational synergies will aid sharp rise in EBITDA and profit, it added.

Initiative in credit on UPI, cloud AI inference models, wealth offering and foray into overseas markets can lift growth, the international brokerage said, as it increased earnings estimates for FY28-29 by 20-25% to factor 25 bps MDR on UPI.

Bernstein recently named Paytm its top pick, citing robust merchant lending growth, operating leverage and the potential introduction of MDR on UPI as key drivers of earnings growth.

With a target price of Rs 2,200, Bernstein expects Paytm’s EPS to reach Rs 78 by FY29. Even after excluding any potential impact from MDR on UPI, its FY29E EPS estimate stands at Rs 54, still above the Rs 46 consensus estimate.

Also read | RBI backs MDR on large-value UPI transactions, says could help expand UPI acceptance

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

Paytm shares sharply rallied more than 7% on Wednesday as brokerages issued bullish notes and increased target prices for the fintech stock after the government announced the first-ever Merchant Discount Rate (MDR) on select UPI transactions above Rs 2,000.

The company’s shares rallied sharply to Rs 1,855.50 apiece on NSE, on track to record the sharpest single-day jump since August 10, when they surged 10% after Bernstein gave its first-ever price target above the company’s original IPO price.

The government will introduce MDR on some Person-to-Merchant (P2M) UPI transactions from October 15 onwards, with merchants paying 0.4% on transactions above Rs 2,000, the National Payments Corporation of India (NPCI) announced on Tuesday. A maximum fee of Rs 300 can be levied on such transactions of Rs 75,000 or more.

Also read | Paytm, Mobikwik, Pine Labs shares rally up to 7% after govt announces UPI fees above Rs 2,000. Why brokerages are bullish

What Paytm said on new MDR charges

Paytm, in an exchange filing on Tuesday, said the government’s latest move will generate additional revenue from the merchant business for many of the payment transactions that were free earlier. The fintech platform highlighted that no charge will be levied on customers for UPI payments, which shall continue to remain free of charge for them.

NPCI announced that consumers will not be charged for making UPI payments, while Person-to-Person (P2P) transfers will also remain free. Small merchants classified under the P2PM framework, including vendors receiving up to Rs 1 lakh a month through UPI QR codes, will continue to be protected from MDR.

Jefferies on Paytm share price

Jefferies maintained its ‘Buy’ call on Paytm shares, and increased its target price to Rs 2,150 apiece, implying over 24% upside potential. After recently increasing earnings estimates for the fintech platform, Jefferies again increased its earnings estimates for FY28-29 by 10-12% to factor in a 40 bps revenue pool even after making adjustments for exemptions, competitive pricing and other aspects.The international brokerage also raised FY27 profit estimate by 18%, factoring in a slight benefit in FY27 as well. It also raised the target price for Pine Labs to Rs 235 apiece.

Also read | UPI Charges Explained: Will you pay a fee for Rs 2,000+ UPI payments? Government clarifies what users need to know

JM Financial on Paytm share price

JM Financial increased its target price for the shares of Paytm to Rs 2,150 apiece, implying more than 24% upside potential from the stock’s previous closing price, while maintaining its ‘Buy’ call on the stock. The notified MDR rate is materially above the 25 bps JM Financial had modelled in, but the carve-outs are also broader than assumed, forcing our hand to cut the eligible-GMV overlay to 20% (from 30% earlier).

The new charges on UPI transactions are expected to generate incremental revenue of Rs 2.1 billion in FY27 and Rs 4.7 billion in FY28, according to the domestic brokerage. “MDR converts a structurally zero-revenue GMV pool into ‘monetisable’ volume with nearly full flow-through to EBITDA, not to mention a clear resolution to the long-standing regulatory overhang on UPI monetisation,” it added.

Emkay Global on Paytm share price

Emkay Global Research meanwhile said the latest move will likely benefit Paytm and Pine Labs, while maintaining its ‘Buy’ calls on the stocks and increasing target prices to Rs 2,400 and Rs 230 respectively. The latest target price for Paytm implies around 39% upside potential.

“UPI acquiring now carries a commercial revenue model that is contractual, recurring, and scales with value, in place of a discretionary annual subsidy. This will make the payment business structurally self-sustaining, making the business model much more resilient,” the domestic brokerage said, adding that even on conservative assumptions, it estimates Paytm to generate UPI MDR revenue of Rs 1,120 crore in FY28, and expects Pine Labs to generate Rs 155 crore in the same year.

Also read | New charges on UPI payments: Here’s what you will be charged for stock market investments

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

The supermarket group reported like-for-like sales growth of 3.2% over the latest quarter, boosted by hot weather and the World Cup

Morrisons has posted its strongest sales growth in over a year as the supermarket chain’s turnaround continues to gain momentum.

The heavily indebted retailer said it benefited from warm weather and the World Cup during the most recent quarter.

Chief executive Rami Baitieh said the group’s performance was “robust” and outpaced the broader UK grocery market following investment in competitive pricing.

The Bradford-based company reported that group like-for-like sales rose by 3.2% over the 13 weeks to 26 July, compared with the same period a year earlier.

Total sales climbed to £4.1bn for the quarter, the company added.

Mr Baitieh said: “Our stronger sales momentum reflected a broad-based improvement across the business – with our supermarkets, online, convenience, pharmacy and Myton manufacturing businesses all reporting good growth, underlining our progress with our plans to renew and modernise Morrisons.

“We are pleased with our third quarter performance.

“Our stronger like-for-like sales, the combination of lower prices and volume growth, and our market share improvement, are all clear evidence that our strategy is delivering and that we remain on track with our plans.”

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Drinkware brand Owala is releasing a new collection of Pokemon-themed water bottles exclusively at Target on Wednesday, timing the launch to coincide with the video game franchise’s 30th anniversary celebrations.

The Owala x Pokemon collection features five distinct FreeSip water bottle designs built around some of the franchise’s most recognizable characters. Confirmed designs include a bright yellow, cream and blue bottle centered on Pikachu, marketed as the “Pikachu I Choose You” edition, alongside separate bottles dedicated to Charizard and Gengar, a design featuring Eevee alongside its evolved forms Sylveon and Vaporeon, and a Kanto Starter Trio bottle bringing together Bulbasaur, Charmander and Squirtle. Owala gave fans an early look at the collection through a short video posted to Instagram ahead of the official release, showcasing the designs across the lineup.

Owala’s FreeSip bottles, the format used across the new Pokemon collection, are known for a two-way spout system that lets users drink either upright through an integrated straw or tilt the bottle back to use a wider opening. The stainless steel bottles also feature insulated construction, a leak-resistant push-button lid, and a carry loop that doubles as a lock when closed, features consistent with Owala’s broader special-edition bottle lineup.

Target has not yet published final retail pricing for the collection, though at least one confirmed listing shows a 16-fluid-ounce stainless steel Pikachu design available on Target’s website. Given that Owala’s existing special-edition FreeSip bottles at Target typically retail in the range of $25 to $30 depending on size and finish, industry watchers have said the new Pokemon collection is likely to fall within that same general pricing tier, though exact prices for each of the five designs had not been officially confirmed as of the collection’s launch.

Target typically publishes new product drops to its website around 3 a.m. Eastern time, though the retailer had not officially confirmed the exact release time for the Pokemon collection ahead of Wednesday’s launch, according to retail coverage tracking the release. Target did tease the collaboration on its website in the days leading up to launch, confirming the collection was arriving Wednesday without detailing full pricing or size information for each design at that time.

Ahead of the official release, photos purporting to show the bottles already stocked on store shelves at some Target locations began circulating online, including images shared to social media and community forums showing the Charizard and Kanto Starter Trio designs apparently pulled directly from shelves before the collection’s confirmed launch date. One widely shared image showed a bagged Charizard bottle still bearing a printed “Remove Before Display” instruction, suggesting at least some Target locations had received and begun unpacking shipments of the collection ahead of schedule.

The character lineup selected for the collaboration leans on some of Pokemon’s most consistently popular and recognizable figures. Pikachu, the franchise’s mascot, anchors the collection, while Charizard and Gengar represent two of the series’ most enduringly popular non-mascot characters among longtime fans. The inclusion of Eevee and its evolved forms, along with the original three Kanto starter Pokemon, rounds out a lineup aimed at covering a broad cross-section of the franchise’s decades-spanning fan base without requiring more niche or recent character selections.

The collaboration’s timing is no coincidence. Wednesday’s release coincides directly with Pokemon’s 30th anniversary, marking three decades since Nintendo’s original Pokemon video games first launched and sparked what has since grown into one of the best-selling media franchises in history, spanning video games, a long-running animated series, and a global trading card game. The Owala collaboration joins a broader wave of 30th-anniversary merchandise tied to the milestone, including a Pokemon Trading Card Game 30th Celebration set that has also drawn significant attention from collectors and retailers in recent weeks, as well as a separate collaboration between apparel brand Adidas and Pokemon featuring three bomber jackets sold exclusively through Dick’s Sporting Goods.

As with many of Owala’s prior special-edition and licensed collaborations, the Pokemon collection is expected to be available for a limited time only, a pattern that has previously driven quick sellouts for the brand’s other themed drops, including past Halloween-specific FreeSip designs and other limited-run collaborations sold exclusively through Target. Owala has built a reputation in recent years for regularly releasing themed and collaboration bottles through Target, a pattern that has turned each new drop into a closely watched event among the brand’s dedicated fan following, many of whom track upcoming releases through retail-focused deal and collector community websites.

The exact online release time and full pricing details for all five Pokemon designs are expected to become clear once Target’s individual product listings go live, with retail tracking sites advising shoppers interested in the collection to check Target’s website directly on the morning of the release, given the retailer’s history of limited initial stock for similarly hyped licensed collaborations. Shoppers interested in the broader Owala lineup, including the brand’s standard FreeSip water bottles in various sizes, can find those products available now through Target’s website and in select stores, independent of the new Pokemon-specific collection’s release.