ECONOMY | PAGE 2 NEWS POINT | PAGE 16 PowerdemandinQ1falls firsttimesincepandemic INTERNATIONAL | PAGE 7 In his new role, ICC CEO is playing with a straight bat NEW DELHI, WEDNESDAY, JULY 9, 2025 Goldman Sachs hires ex-UK PM Sunak as senior adviser FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. L1 NO. 110, 34 PAGES, `12 (PATNA & RAIPUR `12, SRINAGAR `15) P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 83,712.51 ▲ 270.01 NIFTY: 25,522.50 ▲ 61.20 NIKKEI 225: 39,688.81 ▲ 101.13 HANG SENG: 24,148.07 ▲ 260.24 `/$: 85.70 ▲ 0.16 `/€: 100.63 ▲ 0.13 BRENT: $69.85 ▲ $0.27 GOLD: `96,537 ▲ `220 Preliminary crash report submitted THE AIRCRAFTACCIDENT Investigation Bureau submitted its preliminary report on the Air India plane crash to the ministry of civil aviation and other authorities on Tuesday, reports Nitin Kumar. ■ PAGE 2 FE S P EC I A L S ‘Creativity will be led by human capital’ CEO, BBH India talks about Publicis Groupe’s integrated approach ■ BRANDWAGON, P9 No foreclosure fees for small borrowers The RBI rule is for loans sanctioned or renewed on or after Jan 1, 2026 ■ EXPLAINER, P9 by 2030 10% besides the MFN levies ■ A 26% reciprocal tariff has been put in abeyance. »INSIDE« NO EXTENSION TO AUG 1 DEADLINE: TRUMP PAGE 7 deadline or in a few days,in any case sticking to the new timeline of August 1, sources here said lateTuesday. However, the deal would be one that safeguards India's defensive interests in agriculture. It may also turn out to be one with reduced scope for the timebeing,despitetheUSinter- est in a “grand deal” with the fastest-growing major economy, in tune with the shared ambitionofthetwocountriesto growbilateraltradeto$500billion by2030. Trump's remarks discounted the possibility of India being slapped with new import duties unilaterally. Currently, India faces a baseline (additional)tariffof10%besidesthe MFNlevies exitedearlier.A26% reciprocal tariff has been put in abeyance. On its part, the European Union has said recently it is "readyforadeal"withWashington;thecustomsandmonetary union's chief is slated to meet his US counterpartsThursday. “(As for) otherswe metwith, we do not think we are going to beabletomakedeals.Sowe(will) just send them a letter),”Trump added,inaclearsignthatWashington's strategy isn't yielding the desired outcome. The US has been insisting thatIndiamustreducetariffson agricultural items like dairy products, poultry, corn, almonds,apples,maizeandsoyabean. FATFflagse-comm, JaneStreetfallout:Nobig onlinepayments hitonmktliquiditylikely useinterrorfunding HIGH TRADE NESIL STANEY Mumbai, July 8 AANCHAL MAGAZINE New Delhi, July 8 GREY AREAS CITINGTHE USE ofonlinepayment services, virtual private networks (VPNs) and e-commerce platforms in the terror attacksinPulwamainFebruary 2019 and Gorakhnath Temple in April 2022, the Financial Action Task Force (FATF), in a report released Tuesday, said digital platforms such as social media,messaging applications and crowdfunding sites are increasingly being abused for terrorfinancing. The FATF report, without naming any country, noted it had received reports from its delegations about the use of state sponsorship for terrorist financing (TF), either as fundraisingtechniqueoraspart of the financial management strategyofcertainorganisations engaginginterroristacts.Avarietyof publiclyavailable sources ofinformationanddelegations’ inputs to the report indicate that“certain terrorist organisationshavebeenandcontinueto receive financial and other forms of support from several national governments,” it said. “Several forms of support have been reported, including directfinancialsupport,logistical and material support,or the provision of training. Delegationsreportedstatesponsorship for TF purposes coupled with ■ The FATF report said digital platforms are increasingly being abused for terror financing ■ The report, without naming any country, said FATF received reports about the use of state sponsorship for terrorist financing ■ The report noted that in Pulwama attack, a key explosive component was bought online sanctions circumvention techniques through trade and smuggling mechanisms where the national government potentially plays a supportive role,” the report titled‘Comprehensive Update on Terrorist Financing Risks’said. Schemes involving several commodities have also been reported, for instance,oilshippedtoanintermediary country to be sold in gold,withgoldlaterconvertedto cash in another jurisdiction,the reportsaid. Continued on Page 7 THE FALLOUTOFcurbsplaced on Jane Street is likely to impact the market liquidity in the nearterm,however,things are expected to settle down within weeks, said market experts. “Proprietary traders provide significant liquidityto the market. So, there could be some blip, if these players choose to take a cautious approach till things blowover,” said a large institutional player. Most believe that things could go southwards only if other high-speed traders and algorithm-based market markets fail to step in. The Securities and Exchange Board of India’s (Sebi)sources,however,believe that any stock market should not be reliant on just a few players.“We have cleansed the ■ The total turnover of derivatives on expiry day on the Bombay Stock Exchange was `438.5 lakh crore on July 1, while on July 8 it stood higher at `461 lakh crore ■ Except June 24, where the turnover was above `573 lakh crore, all the expiries in June were around `400-450 lakh crore »INSIDE« ■ February 25 saw the lowest turnover this year at below `300 lakh crore ■ Prominent firms in algo-trading and highspeed trading, apart from Jane Street includes Citadel Securities, Optiver etc US TRADING FIRM TO CHALLENGE BAN PAGE 6 system before andwewill do it now and in future,” the source said. The first expiry after Sebi’s interimorderdidnotseemuch change in the turnover. The total turnoverof deriv- atives on expiry day on the Bombay Stock Exchange was `438.5 lakh crore on July 1, while on July 8 it stood higher at `461 lakh crore. Continued on Page 7 JaneStreetprobedundermywatch:Buch FORMER CHAIRPERSON at the SecuritiesandExchangeBoardofIndia(Sebi) Madhabi Puri Buch has strongly refutedallegationsthattheregulator had been soft on high-frequency traderJaneStreetduringhertenure, reportsNesilStaney. In a press statement onTuesday,sheassertedthatthefalse narrativeincertainsections of the media about regu- latoryfailure,waswrong. “In actuality, identification of index manipulation by Jane Street and initiation of numerous actions, including a cease and desist instruction to Jane Street,werecarriedoutbySebibetween April 2024 and February 2025,” Buch said, adding that it was extremely unfortunatethatsomeareattributing false motives forthe same, she said. ■ PAGE 6 RelianceblueprinttodoubleFMCGbusinessin2-3yrs MUKESH AMBANI-LED RELIANCE Industries (RIL) is using its telecom playbook to shake up the fast-moving consumer goods (FMCG) space. WhileIndia'slargestprivatesector company has taken the first fewstepstospinoffits`11,500crore FMCG business into a direct subsidiary called New Reliance Consumer Products, thesecondpartofthisexerciseis thescalethatitiseyeingwiththe move,personsintheknowsaid. Reliance is aiming to double its FMCG business in two to three years,targeting a general trade reach of around 4-5 millionoutletsfrom1millionstores now, informed sources said. BREAKING NEW GROUND ■ The spin-off exercise, which began in April, is likely to take at least three to six months to be completed. RIL will hold an 83.56% stake in the new entity & may look it in future ■ It is already subsidiary will be called New Reliance Consumer Products bigger than Marico and Emami and is nearly as big as Dabur ■ Reliance's FMCG ■ At a broader ■ The FMCG business direct business began its journey following incorporation of RCPL in November 2022 Executives at Reliance ConsumerProducts (RCPL),the currentnameoftheFMCGbusiness andpartofRelianceRetail,were not immediately available for comment.Butthespin-offexercise,whichbeganinApril,islikely to take at least three to six monthstobecompleted.RILwill holdan83.56%stakeinthenew entity and may look to list this businessinthecomingyears. For Reliance’s FMCG business, which began its journey followingincorporationofRCPL in November 2022,growth has level, RIL plans to take on the big boys in FMCG by using a threepronged strategy happened at break-neck speed over the last two years, sector experts said.It is already bigger than Marico and Emami and is nearlyasbigasDabur.Ithasalso surpassed Tata Consumer's India business, based on FY25 financial numbers. While Marico closed FY25with a consolidated topline of `10,831 crore,Emami's turnover for the period was `3,877 crore. Dabur’s consolidated topline stoodat`12,563croreandTata Consumer's India business posted revenue of `11,241 MUKESH JAGOTA, NARAYANAN VAND KRISHNA BAROT New Delhi/Chennai/ Ahmedabad, July 8 INDIA IS HOPING for a marginal to significant advantage in exports of apparel, rubber, footwear, processed foods and meat products to the US as its competitors could face relatively higher tariffs from August 1. However, the actual gains will depend on how the US tariff structure evolves over the next fewweeks. While the countries which got fresh tariff notices from the Trump administration on Monday still have room for negotiations, the actual tariff incidence on India will be known only after the interim India-US bilateral trade agreement (BTA). President Donald Trump on Monday announced fresh tariffs on 14 countries,including Japan and South Korea.For countries with which India is competing in these labourintensive product categories, extra tariffs of up to 36% have been announced. On Bangladesh’s exports to the US,a 35% dutyis proposed overand above the current levels, while for Thailand and Cambodiatheextradutiesproposed are 36%. For Indonesia, the extra tariff is 32%, and Vietnam, which sealed a trade deal with the US recently, the tariffislowerat20%.Indiacurrentlyfaces onlya baseline tariff of 10%, besides the duties that existed earlier. According to industry estimates,UStariffsonapparelfrom India, Cambodia and Bangladesh previously ranged crore in FY25.Reliance’s FMCG business, however, lags majors such as Hindustan Unilever, Nestle India, Procter & Gamble IndiaandBritannia,thoughitis within striking distance of Godrej Consumer Products, whose FY25 topline stood at `14,364crore,expertstracking the market said. At a broader level, Reliance plans to take on the big boys in FMCG by using a threeprongedstrategy.Thisincludes pushing its portfolio ofaround 15 acquired and organic brands in phases across markets, ensuring price points are affordable and tapping regionalflavours,taste profiles and needs. Continued on Page 11 WAIT-&-WATCH ■ The actual ■ Shares of gains will depend on how the US tariff structure evolves Indian textile companies rallied up to 17.1% (intraday) on Monday Intraday gain (%), July 8 »INSIDE« ASIAN NATIONS ATTEMPT TO SOFTEN THE BLOW PAGE 7 between 10–15% across categories. Under the new tariff regime, Bangladesh’s apparel exports could face aggregate dutiesofupto50%,whileCambodiamayseethetariffsrisetoas highas35%.Incontrast,Indiais expected to face a total tariff (those existed earlier plus new baselinetariff)ofaround25%or even lower,once the BTA comes into force. India is seeking to avoidthe26%reciprocaltariff. Shares of major Indian textile companies rallied up to 17.1% intraday on Monday following the announcement of a 35% tariff on goods imported by the US from Bangladesh. Continued on Page 11 RCB pips CSK in valuation stakes: Houlihan Lokey UP, UP AND AWAY Viewership trends Unique TV viewers (Star Sports, in mn) 222 253 Opening weekend views (JioHotstar, in mn) IPL 2024 IPL business value (in $ bn) 15.4 2023 16.4 2024 2025 18.5 12.9% 1,015 IPL Brand value (in $ bn) 13.8% IPL 2025 3.2 3.4 3.9 1,370 IPL IPL 2024 2025 Company targets general trade reach of around 4-5 million outlets from 1 million now VIVEAT SUSAN PINTO Mumbai, July 8 rally; footwear, processed foods could also benefit 5.5 AMIDSIGNSOFfreshUS-China trade tensions, and following theTrumpAdministration'slatest batch of tariff notices to 14 countries,India appeared to be thenext,ifnotonly,majoreconomytosignatradedealwiththe US to avoid the brunt of“reciprocal levy”anytime soon. “Now we have made a deal with the United Kingdom.We havemadeadealwithChina.We are close to making a deal with India,”PresidentDonaldTrump saidatWhiteHouseafterunveiling the new levies on 14 countries,includingJapanandSouth Korea. Aninterimdealbetweenthe two countries could be announced even before the original Wednesday (July 9) ● Textile stocks KPR Mill $500 bn MUKESH JAGOTA New Delhi, July 8 India faces a baseline (additional) tariff of President Donald Trump said he is planning to announce tariffs on imported semiconductor & pharmaceuticals, saying the rate for medicines could reach 200% ■ He said he will also announce a 50% tariff on imported copper ■ He also said that countries part of the BRICS group would get a 10% tariff rate charged on them "pretty soon" -- REUTERS ■ Now we have made a deal with the United Kingdom. We have made a deal with China. We are close to making a deal with India 6.3 countries aim to grow bilateral trade to ■ Currently, US PRESIDENT Trident DAYSAFTERTHE X accounts of news agency Reuters were blocked over the weekend, the social media company and the government traded charges and counter-charges on Tuesday. ■ PAGE 16 India's defensive interests in agriculture ■ The two Trump’s latest DONALD TRUMP ■ The deal would be one that safeguards 7.4 IT ministry, X spar over blocking of Reuters account IN PROGRESS Indo Count Industries THE RESERVE BANK of India will conduct a two-day variable rate reverse repo auction worth `1 lakh crore today, reports Reuters. ■ PAGE 6 of tariff notices and fresh tensions with China,India deal on track 8.3 RBI to conduct `1 trn reverse repo auction today ● Amid fresh set Vardhman Textile THE CENTRE WILL soon launch the PM SVANidhi Scheme 2.0, to provide working capital loans of up to `50,000 with an interest subsidy of 7% to street vendors & UPI-linked credit cards, reports Prasanta Sahu. ■ PAGE 2 BTAthe next big thing:Trump KeyIndiaexports togainfromfresh tariffsbyTrump 17.1 PM SVANidhi 2.0 soon, to benefit street vendors ORIGINALDEADLINE ENDSTODAY Alok Inds IN THE NEWS ALOKANANDA CHAKRABORTY New Delhi, July 8 IN A MAJOR reshuffle in IPL franchise valuations,first-time title-holder Royal Challengers Bengaluru(RCB)hassecuredthe top spot in global investment bankHoulihanLokey's2025IPL Brand Valuation Study. With a brand value of $269 million — upfrom$227millionin2024— RCB has overtaken last year’s leader, Chennai Super Kings (CSK),which has slipped to the No.3position.CSK’sbrandvalue for2025standsat$235million, a marginal increase from $231 millionlastyear. "RCB’smaidenIPLtitledrove its brand value, propelled by enhanced digital engagement, and strong sponsorship deals. Their loyal fan base rallied behind the victory, translating passion into commercial value and helping RCB leapfrog past New Delhi 2023 2024 2025 Source: Houlihan Lokey longstanding franchises in the brand valuation rankings,"says YasinHamidani,director,Media CareBrandSolutions. According to the report,the overall businessvalue of the IPL hasrisenby12.9%year-on-year, reaching $18.5 billion in 2025. The standalone brand value of the league has also grown by 13.8% over 2024, climbing to $3.9billionthisseason. The study credits the IPL for the global expansion of cricket. It'satournamentthathas"redefinedthecommercialandentertainmentdimensionsofcricket," says the report. "The tournament’s success underscored cricket’sgrowingappealbeyond its historical strongholds and highlighted the potential for futuregrowthinemergingmarkets,"says Harsh Talikoti,director, Corporate Valuation AdvisoryServices,HoulihanLokey. Continued on Page 7
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