Thames Water’s main lenders are offering the government a “golden share” and more control for local authorities in a bid to stop the troubled supplier from being nationalised.

The government recently rejected a previous rescue proposal, and the BBC understands the lenders are preparing a legal challenge in case the new Andy Burnham-led government takes the firm into public hands.

In his first speech as prime minister on Monday, Burnham said he wanted to see greater public control of “life’s essentials”.

The new proposal offers local authorities greater involvement in the firm, similar to the relationship between United Utilities and Greater Manchester agreed when Burnham was the city’s mayor.

The London & Valley Water (L&VW ) consortium of lenders had already proposed a £10bn deal to prevent Thames Water from entering administration. It would involve writing off nearly half of its debt and injecting new cash in return for leniency on future pollution fines.

The deal was rejected by the government in June, with then-environment secretary Emma Reynolds saying it did not do enough for consumers or the environment.

Sources close to the new deal said the creditors had sweetened it with hundreds of millions in new money on top of the existing offer. A golden share would give the government veto power over decisions.

The government has been contacted for comment.

L&VW said on Tuesday that the new offer had “material improvements” on the old one, and would benefit customers.

A spokesperson said: “We continue to believe that the L&VW plan is by far the fastest and most reliable route to solving Thames Water’s complex problems and improving outcomes for customers and the environment.”

They said the new deal “achieves this without any government funding or cost to taxpayers”.

Fears first emerged three years ago that Thames Water could collapse and it has recently warned it could run out of cash by November.

The company, which supplies water and wastewater services for 16 million people across London and parts of southern England, was handed a £122.7m fine last year, the biggest ever issued by the industry regulator Ofwat, for breaching rules on sewage spills and shareholder payouts.

Sources close to the creditors have previously told the BBC that in the event of full nationalisation, they would pursue payment in full of the outstanding debts as has happened in previous cases, which could leave the government with a multi-billion-pound bill.

If the company does go bust, households will still have drinking water and sewerage services.

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SEOUL — South Korea’s benchmark KOSPI index surged 3.56%, or 231.68 points, to close at 6,747.95 on Tuesday, snapping a two-day losing streak as investors returned in force to beaten-down semiconductor stocks and the country’s bourse operator briefly halted program trading amid the sharp rebound.

The index’s rally came after the KOSPI had lost 10.5% over the two preceding trading sessions, a stretch that had left the benchmark down more than a quarter from its record closing high reached June 22. Tuesday’s session began on shakier footing, with the index initially losing ground in early trading before sharply reversing course around midday and continuing to climb into the close.

A trading halt as the rally accelerated

The strength of Tuesday’s rebound prompted the Korea Exchange to activate what is known locally as a buy-side sidecar, a trading curb triggered when the Kospi 200 Futures index rises 5% or more within a one-minute window. Program trading for Kospi-listed shares was suspended for five minutes starting at 12:41 p.m. local time as the rally accelerated, with the index briefly touching an intraday high above 6,821 before settling to its final close of 6,747.95.

Chip stocks lead the recovery

Semiconductor giants Samsung Electronics and SK Hynix led Tuesday’s gains, with Samsung climbing 5.94% and SK Hynix rising 6.4% as bargain hunters moved back into technology shares that had been battered during the preceding sessions of the broader AI-related market correction. SK Square also posted strong gains, up 6.97%, while other notable advancers included KB Financial Group, up 3.02%, Kia Corporation, up 2.64%, Shinhan Financial Group, up 3.34%, Hanwha Aerospace, up 2.17%, Doosan Enerbility, up 2.93%, and SK Inc, up 3.28%.

Trading volume for the session came in at a moderate 387.8 million shares, worth approximately 24.5 trillion won, or roughly $16.6 billion. By investor type, foreign investors and institutions were both net buyers during the session, while individual retail investors were net sellers, according to Korea Exchange data.

Strong export data fuels investor confidence

Beyond the technical rebound in chip stocks, Tuesday’s rally was further supported by unexpectedly strong export figures. South Korea’s exports during the first 20 days of July climbed more than 50% year-over-year, driven in large part by a roughly 180% surge in semiconductor shipments tied to sustained global demand for artificial intelligence infrastructure. That data reinforced investor confidence in the earnings outlook for the country’s dominant memory chip manufacturers, further bolstering the case for Tuesday’s rebound.

A pullback that analysts describe as technical

The KOSPI’s steep decline over the prior two sessions has drawn attention from major international banks assessing whether the pullback represents a lasting shift in sentiment or a more temporary correction. Citi analysts characterized the recent sell-off as largely technical in nature. “We think the recent share price pullback of KOSPI equities, led by KR memory suppliers, is more of a technical correction driven by market-wide profit-taking and therefore could represent a potential buying opportunity,” the analysts wrote in a note.

Citi’s assessment echoed a broader narrative in which South Korea’s stock market, the best-performing major global index in 2025, saw its momentum disrupted more recently by concerns over the sustainability of global AI infrastructure spending, concentration risk tied to its two largest listed companies, and speculative trading activity among the country’s large base of domestic retail investors.

Easing geopolitical tensions add to the positive tone

Beyond the chip sector-specific catalysts, easing concerns over the conflict between the United States and Iran also contributed to improved investor sentiment across South Korean markets Tuesday. While lingering worries about the Middle East conflict kept some investors cautious, reports of renewed mediation efforts between Iran and the United States helped support broader risk appetite, encouraging buying across a wide range of sectors beyond just technology and semiconductors.

The won strengthens alongside the equity rally

South Korea’s currency also firmed against the U.S. dollar as part of Tuesday’s broader market rebound, easing back from a 10-week high reached during the recent period of equity market weakness. The combination of a strengthening currency and a sharply higher stock market reflected a broader improvement in investor sentiment toward South Korean assets following the difficult stretch that preceded Tuesday’s session.

A volatile year for Korean markets overall

Despite the recent turbulence, the KOSPI remains up substantially over the past year, trading roughly 112.87% higher than the same point in 2025, according to available trading data, even after declining nearly 26% over the trailing month amid the sharp AI-related correction. The index’s dramatic rise over the past year has been driven substantially by South Korea’s dominant position in global memory chip production, particularly high-bandwidth memory chips essential to artificial intelligence data center infrastructure, a theme that has periodically fueled both sharp rallies and equally sharp pullbacks throughout 2026.

With Tuesday’s rebound helping stabilize sentiment following the recent two-day rout, investors are likely to continue closely watching both South Korea’s export data trends and developments in the broader global AI infrastructure investment cycle for further signals about the durability of the current rally. At the same time, the trajectory of the U.S.-Iran conflict remains a key variable for both energy prices and broader risk sentiment, with any further progress toward diplomatic resolution likely to provide additional support for South Korean equities in the sessions ahead.

A group representing America’s manufacturers on Tuesday released a report marking one year since the enactment of the 2025 tax law that includes examples of the legislation’s impact on the manufacturing sector in all 50 states.

The One Big Beautiful Bill Act (OBBBA) was passed by Republicans in Congress and signed into law by President Donald Trump last July, and the legislation contained a number of provisions aimed at boosting the manufacturing industry – such as 100% expensing of newly built factories and immediate depreciation of machinery – and preventing tax hikes.

The National Association of Manufacturers (NAM) released an analysis that estimated the number of jobs protected by the provisions of the OBBBA, along with the amount of economic growth and wages it preserved. It also chronicled how a manufacturer in each state used the tax law.

“Tax policy is far more than numbers on a spreadsheet and these stories – across all 50 states – show the real-world impact of pro-growth policies that have given manufacturers the confidence to invest, hire, raise wages and expand facilities,” said National Association of Manufacturers CEO Jay Timmons.

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Timmons added the tax reform law is “one of the most consequential pieces of legislation in a generation,” and said that “Congress and the administration delivered the permanent, pro-growth tax code manufacturers needed to invest in their people, purchase new equipment and plan confidently for the future.”

NAM’s analysis found that in California, the law saved 708,000 jobs, $134 billion in GDP and $67 billion in wages – the most in each category among the 50 states. Commercial helicopter manufacturer Robinson Helicopter said it’s taking advantage of immediate research and development expensing to deploy new R88 helicopters as control centers for fire surveillance drones.

“These types of innovative solutions require a significant amount of research and development spend,” said Will Fulton, vice president of business development at Robinson Helicopter, adding that the immediate R&D deduction “accelerates our ability to innovate and increases the ability with which we can bring these property and lifesaving innovations to market.”

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Texas’ totals ranked the second highest at 547,000 jobs, $107 billion in GDP and $51 billion in wages saved by the OBBBA, per NAM’s analysis. WilliamsRDM said the tax law’s R&D expensing allowed it to continue to invest in engineering, prototyping, testing and design improvements to deploy new tech for aerospace, defense, fire suppression, energy and security firms.

Florida, which NAM estimated had 399,000 jobs and $36 billion in wages saved by the OBBBA, has seen Johnson & Johnson invest more than $1 billion to expand operations in Jacksonville.

J&J’s chief technical operations and risk officer, Kathy Wengel, said that the “investments reflect our sustained commitment to advancing American innovation, enabled by a strong and stable corporate tax rate.”

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Snap-On CEO and NAM Vice Chair for Tax and Finance Policy Nick Pinchuk said that he’s seen firsthand how “long-term tax uncertainty translates into workforce certainty,” adding that the law was “an investment in the American worker.”

“It reaffirms, for all to see, the critical importance of manufacturing to our nation’s future and it assures that prosperous tomorrow by giving manufacturers, including small- and family-owned businesses, a significant boost to their capabilities and the confidence to making lasting investments in their people – to recruit, train and retain skilled workers, strengthen career pathways, and create good paying jobs in communities across the country,” Pinchuk said.

“When I first started drafting the One, Big, Beautiful Bill, I made it clear: permanent, pro-growth tax policy was a top priority. If we were truly going to make a lasting impact for manufacturers, we had to deliver legislation that gave them the confidence to invest in equipment, hire workers, and plan for the long term — and that’s exactly what we did. By preventing a massive tax hike and locking in permanent, pro-growth tax policies, we gave manufacturers the certainty they needed to grow. One year later, we’re seeing the results, with success stories from manufacturers in all 50 states.”

House Ways and Means Committee Chairman Jason Smith, R-Mo., said in a statement that when drafting the OBBBA, his top priority was a “permanent, pro-growth tax policy.”

“If we were truly going to make a lasting impact for manufacturers, we had to deliver legislation that gave them the confidence to invest in equipment, hire workers, and plan for the long term – and that’s exactly what we did,” he said. “By preventing a massive tax hike and locking in permanent, pro-growth tax policies, we gave manufacturers the certainty they needed to grow. One year later, we’re seeing the results, with success stories from manufacturers in all 50 states.”

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Senate Finance Committee Chairman Mike Crapo, R-Idaho, added in a statement that, “One year in, the results are clear – the Working Families Tax Cuts are strengthening our economy, boosting American manufacturing and creating greater opportunities for workers for years to come.”

SBI Funds Management shares made a decent D-Street debut on Tuesday, listing 6.85% higher than the IPO price at Rs 613.30 apiece on the NSE, with analysts advising allotted investors to hold the stock despite the listing falling short of grey market expectations.

The AMC’s shares listed at Rs 610 on the BSE, a 6.27% premium to the IPO price of Rs 574, giving the company a market capitalisation of Rs 1.24 lakh crore at debut.

SBI Funds Management IPO GMP

Despite the decent debut, SBI Funds Management’s listing fell short of grey market expectations. Ahead of listing, the unlisted shares of SBI Funds Management were trading with a grey market premium (GMP) of 16-18%, according to data on sites tracking the grey market.

Read More: SBI Funds Management Share Price Live

The much-awaited listing of SBI Funds Management comes after its IPO drew robust investor demand between July 14 and July 16, with the issue being subscribed nearly 42 times. Qualified Institutional Buyers (QIBs) led the response, subscribing their quota more than 140 times, while the portions reserved for Non-Institutional Investors (NIIs) and Retail Individual Investors (RIIs) were subscribed 22.5 times and nearly 4 times, respectively.

The IPO, launched to raise Rs 9,795 crore at a price band of Rs 545-574 per share, entirely comprised an offer for sale (OFS) of 17.10 crore shares by existing shareholders State Bank of India (SBI) and Amundi. Since there was no fresh issue, SBI Funds Management will not receive any proceeds from the IPO, with the entire amount going to the selling shareholders.
Here’s what brokerages and analysts are advising investors to do after the much-awaited listing of SBI Funds Management on Dalal Street.

Emkay on SBI Funds Management shares

Before the listing, Emkay Global Financial Services had initiated coverage on SBI Funds Management shares with a ‘Buy’ call and a target price of Rs 750 apiece, implying 31% upside from the IPO price of Rs 574 apiece. The brokerage said that its positive view rests on three pillars.
The first among them is SBI’s brand and distribution, coupled with significant under-penetration of SBI MF within the SBI Bank channel. Secondly, the sustained shift in asset mix toward higher-yielding assets such as equity and alternate investments (AIF/PMS) is likely to support revenue yields. Lastly, the economies-of-scale-led operating leverage is expected to drive a 17% EBITDA CAGR over FY26-29, according to the brokerage.
“As the savings and investment needs of Indians evolve, the middle class is increasingly embracing mutual funds as its core investment vehicle, and SBI AMC has all the ingredients to become ‘the asset manager to every Indian,’ just as its parent has become ‘the banker to every Indian’,” Emkay said.

Also read | SBI Funds Management gets 2 buy calls before listing. Why Equirus, Emkay see up to 31% upside

Equirus Securities on SBI Funds Management shares

Equirus Securities initiated coverage on SBI Funds Management shares with a ‘Long’ rating and a March 2027 target price of Rs 675. The target implies an upside of about 18% from the issue price of Rs 574. The brokerage noted that the company is one of the strongest franchises in India’s asset management industry, backed by scale, SBI’s distribution network, sticky SIP flows and strong profitability.

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It believes that SBI Funds Management is well placed to benefit from India’s financialisation trend, as more household savings move into mutual funds, SIPs and market-linked products.

What other analysts are suggesting?

Analysts said investors who were allotted shares in SBI Funds Management IPO can either book listing gains or stay invested, depending on their holding period. “We expect the stock to list at 15% premium, and investors with a short-term horizon may consider booking profits if they plan to participate in upcoming IPOs. Given the company’s strong fundamentals, long-term investors can consider holding the stock for 1-2 years for healthy returns,” said Geetanjali Kedia, IPO expert at SPTulsian Investment Advisers.

Vaqarjaved Khan, senior fundamental analyst at Angel One, meanwhile had suggested that allotted shareholders can consider holding the stock due to its strong fundamentals, healthy margins, ROEs, and leadership in the AMC segment. “However, fresh investors should avoid chasing the stock at elevated post-listing levels,” he said.

Narendra Solanki, head of fundamental research at Anand Rathi Share and Stock Brokers, also had said that investors who were allotted shares in the IPO should consider holding the stock for the long term, given its strong growth prospects.

Also read | SBI Funds pays razor-thin banker fees on top India IPO of 2026

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

Britain’s business owners are quietly Googling their way through VAT season. Searches for “VAT definition” have jumped 23 per cent in the past week, new research from Hiscox shows, as firms with VAT quarters ending 30 June face a 7 August filing deadline.

Searches for “VAT meaning” are up 11 per cent over the same period, and the tax generates 17,500 definition-related searches every month, enough to make it one of the UK’s most searched business acronyms. Only KPI, on 60,800 monthly searches, along with the likes of GDPR, CRM and EBITDA, rank higher.

The confusion runs deeper than one tax. More than half (52 per cent) of business owners admit they do not feel confident in their understanding of common business and financial terminology. When they hit an unfamiliar term, 16 per cent say they feel frustrated, 13 per cent intimidated and 12 per cent overwhelmed.

Where do they turn? Over two-thirds (69 per cent) reach for a search engine. Some 16 per cent use social media platforms such as TikTok and LinkedIn for short-form explanations, a figure that rises to 31 per cent among under-30s. And one in six (15 per cent) now ask AI tools such as ChatGPT to decode unfamiliar concepts.

That last habit comes with a health warning. “AI tools can help to provide quick explanations, but they’re not always consistent with how information is sourced or explained,” cautions Nick Thornhill, Direct and Partnerships Director at Hiscox. “As these tools are becoming more widely used in day-to-day business decision-making, it becomes increasingly important that business owners cross-check their understanding, especially when terminology feeds into financial, operational or compliance decisions.”

The stakes are not trivial. HMRC’s latest figures put the total tax gap for 2024/25 at £59.2 billion, with VAT accounting for a fifth of that shortfall, and failure to take reasonable care and simple error the two biggest behavioural causes. Small businesses represent the largest slice of the gap, at 62 per cent.

Getting it wrong is expensive at an individual level too. Inaccuracies judged to show a lack of reasonable care can attract penalties of up to 30 per cent of the extra tax due.

Clare March, founder of Her Business Counts, argues the real problem is not remembering what the acronym stands for but understanding what it means in practice. Misjudging VAT’s impact on cash flow, she warns, can lead to decisions that “look fine on the surface but quietly put you in a really difficult position.”

For SMEs, VAT is rarely just an admin line. The tax shapes behaviour to the point that firms are deliberately curbing growth to stay under the £90,000 registration threshold, and it remains politically live, with ministers scrapping VAT on electricity bills only this month. Add the demands of Making Tax Digital and the shift towards e-invoicing, and the terminology burden keeps growing.

In response, Hiscox has partnered with business mentor Jonathan Cooper on four tips for building financial confidence, including finding trusted sources of guidance and avoiding common mistakes, and has launched an interactive quiz letting owners test themselves on the UK’s most searched acronyms.

“Business owners are expected to know and use a wide range of terms across finance, operations and compliance on a daily basis, but our research suggests that many are still having to look them up as they go,” says Thornhill. “Business language can be complicated and having an understanding of these terms is important for decision-making and communication with advisors, investors and teams.”

One note of reassurance for anyone panicking about 7 August: not every business files that day. VAT deadlines depend on your accounting period, and returns are normally due one calendar month and seven days after the quarter ends. Checking your own date, rather than Googling someone else’s, is a sensible place to start.

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