In Asia, India holds a crucial central bank meeting against a complex backdrop, while Friday’s U.S. non-farm payrolls report comes as traders grow increasingly convinced that the Federal Reserve may have to hike interest rates again.

1/AI-WATERING MOVES

The AI-driven bull run has gone from seemingly unstoppable to spectacularly volatile in a matter of weeks.

Investors are increasingly uneasy about profitability, competition and who’s paying ‌for it all. Unprecedented volatility ⁠in chipmakers ⁠and other AI-related stocks is the result. South Korea’s KOSPI, which jumped 18% on Friday after tumbling 40% over the previous six weeks, is the prime example.

Pressure is emerging elsewhere too. The cost of insuring against default by some AI hyperscalers has risen as debt levels climb, while earnings reports are triggering increasingly dramatic market reactions.

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More turbulence may lie ahead. Elon Musk’s SpaceX reports its first results since its blockbuster June IPO. Since then, its market value has slumped by an eye-watering $1 trillion.

2/WAR WORRIES

Markets will remain focused on the Middle East, where a U.S.-Iran ceasefire announced in mid-June now appears a distant memory and oil prices have climbed back towards $90 a barrel.
A drone strike on two U.S.-owned gas tankers in Egypt’s Mediterranean port of Damietta this week has opened a potential new front in the five-month conflict, raising concerns that traffic through the Suez ⁠Canal, one of ‌the world’s most important trade routes, could come under threat. In another first, Saudi Arabia publicly joined military strikes alongside U.S. forces this week, targeting Iran-aligned groups in eastern Iraq. The U.S. military also carried out what it described as a “heavy wave” of strikes against Iran after an attempted ballistic ⁠missile attack on U.S. forces in the region.

Diplomatic efforts continue, however. Saudi Arabia is seeking to lead a 14-country coalition to boost maritime defence in the Bab el-Mandeb strait, the Red Sea and the Gulf of Aden, all critical chokepoints for global energy supplies.

3/JOLT FROM JOBS?

Markets get a fresh read on the U.S. economy on Friday when closely watched non-farm payrolls data are released.

Economists polled by Reuters expect the July report to show payrolls increased by 91,000 jobs and the unemployment rate held at 4.3%. A stronger-than-expected reading could raise bets that the Fed may need to resume raising rates to contain persistently above-target inflation at its next meeting in September.

The central bank held rates steady on Wednesday, but three policymakers voted for a hike and Chair Kevin Warsh reiterated the Fed’s commitment to returning inflation to its 2% target.

4/ EUROPE’S BURNING ISSUES

Europe’s record-breaking heatwave looks set to ‌continue with fears mounting that wildfires that have devastated parts of Spain and France are spreading to Italy, Central Europe and Greece.

Markets should pay attention.

The economic costs are mounting, from healthcare spending and insurance claims to reconstruction bills and higher food prices, at a time when many heavily indebted governments are already grappling with the fallout of the Iran ⁠war. Adding to concerns, a ‘super’ El Nino event appears increasingly likely, raising the risk of further extreme weather globally.

In Britain, also facing wildfires and drought, major supermarket groups warn another food-price shock could be looming. In Germany, meanwhile, a contentious cabinet reshuffle has renewed pressure on Chancellor Friedrich Merz as the country also battles record temperatures.

DRUPEE

The Reserve Bank of India announces its latest policy decision on Wednesday, with most economists polled by Reuters expecting no change to the benchmark interest rate of 5.25%.

However, authorities will be attempting to prop up the rupee , one of Asia’s worst-performing currencies this year.

In June, the central bank unveiled measures designed to boost capital inflows and strengthen the balance of payments. The moves attracted more than $20 billion in their first month, but renewed strength in oil prices has since clouded the outlook.

For those thinking an interest rate increase might help, retail inflation has just breached the central bank’s target for the first time in over a year. Nevertheless, economists still expect the risks to growth to keep policymakers from acting, for now at least.

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In the personal loan segment, loans against gold jewellery, which include certain agriculture loans, remained the fastest-growing sector, surging 93% YoY, data published Friday by the Reserve Bank of India (RBI) showed. Vehicle loans with a 17% growth were the second-fastest in the personal loan segment. Credit card outstanding growth decelerated to 2% compared to 7% recorded a year ago.

Growth in education loans also remained strong at 13% versus 14% recorded a year ago.

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The regulator on Friday disposed of the June 19, 2024 interim order-cum-show cause notice without imposing any fresh directions, holding that the remedial objective of the proceedings had already been achieved. Sebi had launched proceedings alleging that Religare and its board failed to cooperate with the mandatory open offer triggered after the Burman Group sought to raise its stake beyond the 25% threshold under the takeover rules.

The regulator alleged that the company violated its takeover code by delaying the process.

Sebi had alleged that REL repeatedly questioned the Burman Group’s ‘fit and proper’ status and refused to apply for approvals from the Reserve Bank of India, IRDAI and the market regulator despite being advised to do so.

The regulator had said the open offer could not progress because the RBI would accept the application only from the target company.

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The interim order had directed Religare to facilitate the open offer, seek the necessary regulatory approvals and ensure the constitution of the committee of independent directors.
During the proceedings, several independent directors argued they had relied on representations made by Saluja, whom they alleged later misled them about the Burman Group. They maintained that they were not involved in the company’s day-to-day affairs and had acted on independent legal advice. Saluja, in her defence, contended that the obligation to obtain statutory approvals rested with the acquirers and that REL acted in good faith over governance and ‘fit and proper’ concerns.

Consolidated profit at Maruti fell to ₹3,352 crore, compared with ₹3,758 crore in the corresponding period of the last financial year. Bloomberg’s consensus earnings estimates for the June quarter were ₹3,440 crore.

The company said input costs increased during the quarter due to the crisis in West Asia, denting profitability despite strong growth in sales.

ET Bureau

Also Read: Zee shareholders approve Rs 3,143 crore promoter fund infusion, ESOP plan
“Material costs had started to increase in the quarter and were seriously aggravated during the war,” Maruti Suzuki said in a statement.

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Net sales in the period under review rose to ₹49,959 crore, climbing 36% from ₹36,620 crore recorded in the year-ago period.
Total expenses surged 41% to ₹49,988 crore. Unit sales climbed 29% in the first quarter to a record 682,724 cars over the same period of the previous year.Four CBG Projects
Sales for the company climbed across categories. Domestic small cars sales expanded 34%, paced by demand for SUVs that sold 45% more. Exports, meanwhile, climbed 29%.

Domestic market share increased 2.3 percentage points to 41.2%.

“Higher sales were possible because the company commissioned its second plant in Kharkhoda,” Maruti said.

Despite increased sales, the network inventory level at the end of the quarter was about 13 days.

The company’s board also approved four compressed bio gas (CBG) projects in the first phase with a budget of ₹ 561 crore. The board would consider expansion of CBG manufacturing based on the experience of these projects, the company said.

Shares of Maruti Suzuki marginally climbed to ₹14,239.40 apiece on the BSE. The earnings were announced after trading ended in Mumbai.

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of ING either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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Electric vehicles are often viewed as a technology reserved for wealthy nations, but new analysis suggests this perception is rapidly becoming outdated. Research supported by the World Bank shows that EV adoption in developing countries is not only feasible — it is increasingly economically advantageous, especially for public transport systems and the millions who rely on two‑ and three‑wheelers for daily mobility.

A turning point for emerging economies

Transport already accounts for around 20% of global greenhouse gas emissions, and this share is rising fastest in developing cities as populations grow and mobility demand accelerates. Without a shift toward cleaner transport, these countries risk locking in decades of additional emissions at a time when climate pressures are intensifying.

The World Bank’s review of 20 developing countries finds that EVs — particularly buses and smaller vehicles — now offer a compelling economic case. Falling battery prices, lower operating costs, and the high mileage typical of public transport fleets make electrification increasingly attractive.

Where EVs deliver the biggest impact

Electric buses

Electric buses stand out as one of the most cost‑effective solutions for emerging markets. Their predictable routes, centralized charging, and heavy daily usage mean operators can quickly recover upfront investment through lower fuel and maintenance costs. For cities struggling with congestion and pollution, e‑buses offer immediate air‑quality benefits.

Two‑ and three‑wheelers

In many developing countries, motorcycles, scooters, and tuk‑tuks are the backbone of urban mobility. Electric versions of these vehicles are already price‑competitive, easier to maintain, and well‑suited for last‑mile transport and delivery services. Their rapid adoption could transform mobility for millions while reducing noise and air pollution.

Development benefits beyond emissions

The shift to EVs supports broader development goals:

• Cleaner air in megacities where pollution contributes to millions of premature deaths each year.
• Energy security, reducing dependence on volatile oil markets that disproportionately affect low‑income households.
• Improved mobility access, especially in remote or underserved areas where electric bikes and scooters can connect people to jobs, schools, and essential services.

Examples from around the world

Several countries are already demonstrating what EV adoption can look like at scale:

• Dakar, Senegal is rolling out electric bus rapid transit corridors to improve mobility and cut emissions.
• India plans to procure 50,000 electric buses over the next decade, one of the largest such initiatives globally.
• Bogotá, Colombia is piloting electric cargo bikes to support cleaner last‑mile delivery.
• Santiago, Chile already operates 800 electric buses, with 1,000 more on the way as part of its 2050 carbon‑neutrality strategy.

These examples show that EV adoption is not a distant aspiration — it is already happening across the developing world.

A practical path forward

The message is clear: electric vehicles are no longer a luxury reserved for advanced economies. For developing countries, they represent a practical, scalable, and economically sound solution to improve mobility, strengthen energy resilience, and reduce emissions. As costs continue to fall and technology improves, EVs — especially buses and two‑/three‑wheelers — are poised to play a central role in building cleaner, healthier, and more inclusive cities.

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