GitLab GTLB -2.80%decrease; red down pointing triangle is cutting 350 full-time employees, about 14% of its total workforce, as part of a restructuring it floated last month.

The maker of software-development tools said weeks ago that layoffs were coming as it looked to remove layers of management from certain parts of its business and rework its research-and-development teams.

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Market veteran Ajay Srivastava from Dimensions Corporate believes that the narrative around the global economy, particularly the United States, is often misunderstood by Indian investors. Speaking to ET Now, he argued that while many perceive the U.S. to be facing economic challenges, the reality is quite different.

According to him, the American economy continues to perform exceptionally well, with stock markets at record highs, unemployment near historic lows, and some of the world’s largest companies continuing to create enormous wealth. He said that every country would aspire to be in the position that the U.S. currently occupies and stressed that India should focus less on judging global economies and more on addressing its own economic challenges.

Srivastava noted that despite geopolitical tensions, including the ongoing conflict in West Asia, the global economy remains resilient. He pointed out that developed nations have successfully diversified across industries such as semiconductors, technology, and advanced manufacturing, reducing their dependence on any single sector. India, he said, still has significant work to do in building similar capabilities and strengthening its economic competitiveness. He also emphasized the importance of keeping economic discussions separate from political considerations, arguing that a pragmatic approach is essential for long-term growth.

On artificial intelligence, Srivastava maintained that investors cannot afford to ignore the theme despite concerns around lofty valuations. He believes the leading AI companies enjoy strong competitive advantages and are likely to remain important wealth creators over time. While India may not be leading the development of foundational AI technologies, he sees a substantial opportunity for the country as a large-scale adopter and implementer of AI solutions. In his view, Indian businesses across sectors will increasingly rely on AI to improve productivity and efficiency, creating a significant opportunity for domestic companies involved in deployment and integration.

He also challenged the notion that the U.S. market’s strength is entirely dependent on AI-related stocks. While technology companies have undoubtedly been major contributors to market gains, he highlighted that several industrial, consumer, and defence-related businesses have also delivered strong performance. This, he argued, reflects the broader strength of the American economy rather than a narrow AI-driven rally.

Among Indian sectors, Srivastava believes banking stands to gain the most from AI adoption. He expects artificial intelligence to transform operational efficiency, reduce costs, and significantly improve profitability. From branch operations to customer service and call centres, AI has the potential to automate labour-intensive processes and enhance customer experience. As a result, he believes banks that successfully integrate AI into their business models could witness margin expansion that has not been seen in years.
While optimistic about the long-term opportunity, Srivastava remains selective on the banking sector. He reiterated concerns about large traditional lenders, arguing that some of them have struggled to deliver shareholder returns despite their dominant market positions. He also questioned the effectiveness of recent interest rate reductions in improving the sector’s outlook, noting that structural reforms and technological adoption are likely to have a greater impact on profitability than monetary policy alone. According to him, the key differentiator going forward will be how effectively banks leverage technology to reduce costs and improve efficiency.Discussing public-sector banks, Srivastava admitted that their low valuations continue to puzzle him. Although he expects certain private sector banks with strong institutional ownership to outperform, he does not believe investors should dismiss PSU banks outright. At current valuations, he suggested that downside risks appear limited, even if return potential may not be as attractive as some private-sector peers.

On the issue of expected credit loss (ECL) norms, Srivastava downplayed concerns about a significant impact on bank valuations. He believes any implementation is likely to be gradual, allowing banks sufficient time to adapt. More importantly, he argued that investors should focus on broader factors such as interest rates, economic growth, operating efficiency, and competitive dynamics rather than regulatory changes alone.

Perhaps his strongest message was directed at Indian investors’ portfolio allocation strategies. Srivastava pointed out that most Indian investors remain overwhelmingly concentrated in domestic assets and have limited exposure to global opportunities. He criticized restrictions on overseas investments by mutual funds, arguing that these constraints prevented Indian investors from participating meaningfully in the global AI boom. According to him, access to international markets is essential for long-term wealth creation, especially as many of the world’s most innovative companies continue to emerge outside India.

He believes investors should think beyond short-term market movements and focus on building diversified portfolios that include exposure to global growth themes. With new technology leaders and disruptive businesses continuing to emerge around the world, Srivastava argues that limiting investments to a market that represents only a small share of global market capitalization may not be the most effective strategy for future wealth creation. His message is clear: global markets remain strong, AI represents a transformational opportunity, and Indian investors must embrace both technological change and global diversification to fully participate in the next phase of economic growth.

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The South West transport hub will offer two direct departures from Newquay

Cornwall Airport Newquay is planning to launch a direct-flight package holiday programme to Tenerife in March next year, it has announced.

The South West transport hub has partnered with Murray Travel on the programme which will offer two direct departures from Newquay to Tenerife on Friday, March 5 and Friday March 12.

The new charter operation has been developed in response to sustained passenger demand for extra winter sun destinations and package holiday options from Cornwall, the airport said.

“Feedback from passengers, route requests and booking trends across the airport’s leisure network have consistently highlighted the Canary Islands as one of the most sought-after destinations,” the transport hub said.

The initiative forms part of Cornwall Airport Newquay’s wider strategy to strengthen regional connectivity by providing more choice and convenience for passengers while reducing reliance on airports outside the region.

Nigel Scott, commercial director at Cornwall Airport Newquay, said: “Our role is about more than operating flights; it’s about strengthening regional connectivity and ensuring people across Cornwall and the wider South West can access the destinations they want, directly from their local airport.”

He said that by partnering with Murray Travel to offer direct flights to Tenerife, it would make it easier for local people to travel and reduce the need for “lengthy journeys to airports outside the county”, while keeping “more travel spend” within the region.

“It’s another example of how we’re working with partners to expand opportunities for our passengers while supporting Cornwall’s long-term connectivity and economic resilience,” he said.

The airport has experienced significant international growth in recent years, with international passenger numbers rising from 74,069 in 2022 to more than 203,900 in 2024.

In April, international passengers from Cornwall accounted for 66 per cent of total traffic – up from 54 per cent a year earlier – the airport said.

Scott Murray, director at Murray Travel, said: “Tenerife remains one of the UK’s favourite holiday spots, so we’re really pleased to be able to offer this short trial programme and give customers in Cornwall and the surrounding area the chance to fly straight from their local airport.”

He added: “The response to our Lapland day trip from Newquay has been incredible, and it has shown us just how much appetite there is locally for convenient, direct flights to exciting destinations.”

Earlier this week, a Cornwall Council corporate finance committee meeting heard that “quite serious” cost-cutting measures would be likely at Newquay airport.

The council’s decision earlier this year to scrap the government-subsidised – through a Public Service Obligation (PSO) – service from Cornwall to London Gatwick has seen a drop in income at the council-owned airport.