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India offers 20-year tax holidays to foreign companies using local data centers
India announced on Sunday that foreign companies who use?data?centres in the country for providing services to clients around the world will not be taxed for doing so for at least 20 years. This is to allay fears about possible tax liabilities for the sector. In recent years, scores of data centres were built in India. However, lawyers have told us that foreign companies are concerned that New Delhi may impose a tax on their global income if they use a data centre located in India. In her speech on the 2026-27 budget, Finance Minister Nirmala Sitharaman put to rest these concerns, saying that India would "provide (a tax holiday) until 2047 to any foreign companies who provide 'cloud services' to their global customers by using India data centre services." Vaibhav gupta, partner of tax firm Dhruva Advisors said that the announcement brings clarity to foreign firms and gives stability in their tax position in India until 2047. He noted foreign companies will no longer have to worry about possible taxes on global income if they use a Indian data centre. Google announced in October that it would invest $15 billion into an AI data center project in Andhra Pradesh, while Microsoft and Amazon invested billions in data centres in India. Indian conglomerates such as Adani and Reliance have also invested. Amazon, Microsoft and Google didn't immediately respond to requests for comment regarding the tax measure. Ashwini Vaishnav, IT minister told reporters that data centres would be India's major strength. Aditi Sharma in New Delhi; Dhwani Paandya, Mumbai; Aditya Kahra, New Delhi; Haripriya Suresh in Bengaluru, Sai Ishwar in Bengaluru, Abhirami Ga in Bengaluru, and David Holmes, editing.
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Pope Leo calls on the US and Cuba to engage a sincere dialogue
Pope Leo expressed his concern about the rising tensions between Cuba and the United States on Sunday, and called for a "sincere and effective dialog" to prevent violence and further suffering of the Cuban people. Last week, U.S. president Donald Trump announced that tariffs would be placed on imports of oil from countries that provide Cuba. This is a way to increase the pressure?on Washington's old enemy after ousting Venezuelan leader Nicolas Maduro in January, who was a key ally for Cuba. Trump claimed that the tariff threat was necessary to protect the "U.S. National security and foreign policies from the Cuban regime’s malign actions and policies." Pope Leo stated that he received reports "with great concern", of the?increasing tensions between Cubans and Americans. In comments made after his weekly Angelus Prayer, he joined Cuban Bishops in "urging the responsible to promote a sincere and effective dialog to avoid violence and more suffering for Cubans." Trump said last week that Cuba will fail pretty soon, adding that Venezuela - once the island's largest oil supplier - has not sent money or oil to Cuba in recent times. Cuban Foreign Minister Bruno Rodriguez declared a "international emergency" as a response to the U.S. Tariff Warning, which he described as "an extraordinary and unusual threat." Trump reaffirmed his call for Cuba to negotiate with America on Saturday. He told reporters on Air Force One, en route to Florida: "It does not have to be a crisis of humanitarian proportions." (Reporting and editing by Hugh Lawson; Gianluca Smeraro)
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Pakistani forces kill 145 militants after wave of attacks in two-day battle
Pakistani security forces have killed 145 militants during a 40-hour battle that began after a coordinated series of gun and bomb attacks in Balochistan, which left almost 50 people dead. Insurgents are intensifying attacks on civilians, security forces and infrastructure in this resource-rich region bordering Iran and Afghanistan. Talal Chaudhry, Pakistan's junior minister of interior, said that attackers dressed as civilians walked into hospitals, banks, markets, and schools on Saturday, before opening fire. He said that the militants used civilians as human salves in each of these cases. The Baloch Liberation Army, a banned separatist group, claimed responsibility for these attacks. It said it launched a coordinated operation called Herof or "blackstorm", which targeted security forces across the province. After the attacks, security forces in Quetta, provincial capital, tightened patrols, restricted movement and sealed streets with yellow tape. Sarfraz Bugti, the Chief Minister of Balochistan, said that 17 members of law enforcement and 31 civilians died in militant attacks. Pakistan's army said that 92 militants died on Saturday while 41 were also killed on Friday. "We received intelligence reports that such an operation was planned and, as a consequence, we began pre-operations the day before," said Bugti. Bugti, without mentioning any comparable figures, said that the latest total represents the highest number militants killed within such a short period of time since the insurgency began to intensify. Officials reported that the militant attacks were launched in Quetta, Gwadar and Mastung districts almost simultaneously. Armed men opened fire on security installations, including the Frontier Corps headquarters. They also attempted suicide bombings, and briefly blocked roads in urban areas. This prompted large-scale counter operations by the army and police, as well as counterterrorism units. Jamil Ahmed Mashwani, a private security guard outside a damaged store, said that attackers struck shortly before midday. "They hit me in the face and head." ATTACKS ARE COORDINATED PROVINCE WIDE Balochistan is Pakistan's poorest and largest province. For decades, separatists of ethnic Baloch origin have been leading an insurgency, seeking more autonomy and a greater share of the natural resources. The group claimed to have killed 84 members Pakistani security forces, and captured 18 others. The claim could not be independently verified. The military didn't immediately respond to our request for comment. Pakistan's Defense Minister Khawaja Asif stated that two of the attacks were perpetrated by women and militants are increasingly targeting low-income groups, workers and civilians. The military claimed that security forces had defeated militants' attempts to take control of any strategic installations or cities. CLAIM AND BLAME Pakistan's military said that the attacks were perpetrated by "Indian sponsored militants" on Saturday. India, Pakistan's arch rival, has denied this assertion. Randhir Jaiswal, spokesperson for the Indian Foreign Ministry, said that "we categorically rejected the baseless accusations made by Pakistan". He added that Islamabad instead should address "longstanding demands?of its people?" in the region. U.S. Natalie Baker, Washington's Charge d’Affaires, called the attacks terrorist violence. The U.S. has designated the Balochistan Liberation Army as a terrorist organization. Pakistan has been subjected to periodic attacks from islamist militants in other parts of the country. These include factions that are linked to the Pakistani Taliban. ?
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INDIA BUDGET - India cuts tariffs to boost local manufacturing and US-hit exports
India cut tariffs on a variety of capital goods and raw material on Sunday in an effort to reduce its dependency on China for essential products?for the energy transition, and to lower costs for exporters who have been hit by?U.S. trade policies. Analysts say that customs reform is crucial to India's goal of $1 trillion in goods exports. They argue that lower input costs will help firms integrate with global supply chains, and attract investment away from China. Nirmala Sitharaman, India's Finance Minister, said that India would reduce the duty on capital goods needed to process vital minerals and manufacture lithium-ion batteries. This will help the nation in its energy transition efforts and wean them off China. Sitharaman eliminated tariffs in the annual budget of her country on?sodium antmonate, used to produce solar glass, and monazite - a source for rare earth elements that are used as permanent magnets in electric vehicles. China, which controls 90% of the global processing capacity of magnets used in cars and other clean energy technologies, imposed export restrictions on rare earth magnets during last year's production of EVs. Sitharaman gave up tariffs in order to support the local production of leather, textiles, and marine products. These industries are all export-oriented, but they have been affected by President Donald Trump’s punitive duties on India. Sitharaman said that India would also reduce duties on raw materials used to manufacture parts of aircraft for maintenance and repairs in the defence industry and separately on inputs to the electronics sector. Analysts said the import tariff reductions signaled continuity in trade policy. They also noted that India's duty system was being adjusted to match new trade agreements amid rising protectionism, global uncertainty and geopolitical tensions. The Trump administration has wrought a 'profound change in the global economic order. Prime Minister Narendra Modi’s government made a new bet on the manufacturing sector of the economy. However, its reform plans did not meet expectations. Budget made a special concession to so-called Special Economic Zones that manufacture goods for export to India, due to the unutilised capacity of these zones.
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Union and Marathon meet as deadline for US refineries' strike looms
The United Steelworkers union and Marathon Petroleum continue to negotiate on Saturday. This is just hours before a possible strike deadline at several U.S. refineries or?chemical plants. The union rejected an offer made by Marathon, who is the chief negotiator of 26 U.S. chemical and refinery companies, including Exxon Mobil and Valero Energy. According to sources who were familiar with the negotiations, the offer included a 13% wage increase over a 4-year contract. Jamal Kheiry, Marathon's spokesperson, said that "MPC is continuing to meet with USW representatives." "We're committed to negotiating in good faith, and working towards a mutually satisfying agreement," said Marathon spokesperson Jamal Kheiry. USW released a statement saying that "the union will continue to bargain with Marathon beyond contract expiration? for a national agreement covering all workers represented by the USW National Oil Bargaining Program". Marathon's proposal would have seen pay increases of 3% each in the first two year and 3.5% each in the last two. Sources said that the USW and the USW's 30,000 oil workers are negotiating over the cost of living, healthcare costs, and standards for artificial intelligence in the plants. USW also wants to see tougher safety regulations, but sources say that this is not likely to happen at Marathon. "Marathon, as a company, thinks that our industry is overpaid," stated one of the sources who asked to remain anonymous because they weren't authorized to speak in public. "They don't say much about economics. To be honest, our proposal is mainly about AI. They're not doing it in a positive way. The current four-year agreement expires on Sunday at 12:01 am, but this does not automatically mean that a strike would begin at that time. During past negotiations, the union granted rolling extensions of 24 hours to reach an agreement beyond expiration. Only in plants where a union has authorized a strike will workers walk off the job. The USW called out 5,200 USW workers at 11 refineries in the United States, which were part of the previous nationwide strike. The refineries continued to operate with temporary replacement employees. Negotiations between the USW & Marathon concern a national agreement pattern that will set wages for hourly union workers as well as healthcare costs, safety agreements, and other matters. After completing their probationary periods, inside refinery operators earn about $50 per hour. To create the contract, you combine the national agreement with site-specific agreements. The company and workers settled local issues at Marathon's biggest refinery on Friday, the 631,000-barrel-per-day Galveston Refinery. (Reporting and Additional Reporting by DishaMishra. Editing by Nathan Crooks, Nik Williams and Nathan Crooks)
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Union and Marathon meet as deadline for US refineries' strike looms
The United Steelworkers union and Marathon Petroleum continue to negotiate on Saturday just hours before a possible strike deadline at several U.S. chemical and refineries plants. The union rejected an offer made by Marathon, who is the chief negotiator of 26 U.S. chemical and refinery companies, including Exxon Mobil and Valero Energy. According to sources who were familiar with the negotiations, the offer included a 13% wage increase over a 4-year contract. Marathon spokesperson Jamal Kheiry said that "MPC is continuing to meet with USW representatives." "We are committed in working towards a mutually satisfying agreement and bargaining with good faith." USW spokesperson stated that the union had no immediate comment regarding negotiations. Marathon's proposed pay increase would have been 3% for each of first two years and 3.5% for each of final two. Sources said that the USW and the oil industry workers, who are represented by the USW in these talks, will be discussing the cost of living, healthcare costs, and the standards of use of artificial intelligence at the plants. USW also wants to see tougher safety regulations, but sources say that this is not likely to happen for Marathon. "Marathon, as a company, thinks that our industry is overpaid," stated one of the sources who asked to remain anonymous because they weren't authorized to speak in public. "They don't say much about economics. To be honest, our proposal is dominated by AI. They're not doing it well. The current four-year agreement expires on Sunday at 12:01 am, but this does not automatically mean that a strike would begin. In previous?negotiations the union granted rolling contract extensions of 24 hours to reach an agreement beyond expiration. Only in plants where the union has authorized a strike will workers walk off their jobs. The USW announced that it would be calling out 5,200 USW workers at 11 refineries in the United States, which employed USW members. The refineries continued to operate with temporary replacement employees. Negotiations between the USW, Marathon and other unions are aimed at a national agreement pattern that will set wages for hourly workers in the union, healthcare costs, safety agreements and more. After completing their probation period, inside refinery operators earn about $50 per hour. To create the contract, you combine the national agreement with site-specific agreements. The company and workers settled local issues at Marathon's biggest refinery on Friday, the 631,000 barrels per day Galveston Bay. (Reporting and editing by Nathan Crooks, Nia Williams, and Erwin Seba)
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Morocco deploys its army to assist thousands of flood victims
State TV reported that Morocco had deployed army units to assist with the?evacuation of thousands of people following?floods caused by torrential rainfall?and?rising river levels?that hit parts of Morocco's northwest. A national flood monitoring committee reported that weeks of heavy rain, coupled with the release of water from a dam near the city, had increased the?water level in the Loukous River, and inundated several?neighbourhoods. The city of Ksar Kbir is located about 190 km north of Rabat. Official media reported that more than 20,000 people were moved into shelters and camps as of?Saturday. As the waters receded, authorities set up temporary barriers and sandbags in areas prone to flooding. As a precaution, Ksar Kbir schools have been closed until the 7th of February. The Sebou River rose to a dangerous level in the province of Sidi Kacem. Authorities increased their vigilance. The abundance of rain ended a seven-year dry spell that prompted the country to invest heavily in desalination plants. According to official statistics, the average rate of dam filling has increased to 60%. Several major reservoirs have reached their full capacity. In the city of Safi south of Rabat, there were 37 deaths in a flash flood last month. (Editing by Timothy Heritage).
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Sky News reports that Thames Water is close to a 16 billion-pound deal with lenders.
Sky News reported that Britain's Thames Water was getting closer to a deal worth 16 billion pounds ($22 billion), which would prevent the ailing "utility" from being temporarily taken over by the public. The report stated that a group of creditors who hold 13 billion pounds out of Thames Water’s 20 billion pound total debt are aiming to reach an agreement in principle with the regulator Ofwat as well as the company before the middle of the next month. Thames Water stated in an email that it was working with stakeholders on a market-led recapitalisation. They added that they were hopeful to reach an agreement. The company has 16 million clients and has been the center of a scandal in Britain where it was fined over 100 million pounds because of sewage spills. The company's debt load has also brought it to the brink of collapse. Ofwat said it continues to engage with the London & Valley Water Investor group and is reviewing their proposals to assess if they would improve the company’s operations?and its finances. London & Valley Water, a group of 15 creditors, including Aberdeen Investments and Elliott Management as well as PIMCO, Silver Point Capital, have committed to keep their ownership stakes in the struggling utility through 2030, under a rescue plan. According to the report, under the proposal, lenders could receive a 30% haircut on their Class A debt, compared to the 25% announced in October. The report stated that more than 13 billion pounds in existing value will be written off once a final deal is presented to investors. These include Assured Guaranty, Invesco, Elliott Management, Silver Point Capital, and Farallon Capital Management. The report said that creditors would be given a minimum of 10% of the equity in the recapitalised firm. The report stated that an outline agreement could be reached "as soon as next week", with terms being submitted to Downing Street for review in the following weeks. Thames Water was able to secure court approval last year for a 3-billion-pound debt lifeline. This prevented a possible collapse and state rescue. As soon as the terms of a deal with the government were agreed, Britain's largest water provider began to take steps to secure court dates, and to proceed with a plan for recapitalisation led by senior lenders.
As markets move past Venezuela's turmoil, European stocks are rising and the dollar is steady.
The stock markets rallied in the early European trading of Tuesday as traders' appetite for risk was not dampened by the U.S. raid on Venezuelan President Nicolas Maduro and his capture. Europe's STOXX 600 reached a record high on Monday, and the Dow Jones Industrial Average on Wall Street also hit new records thanks to gains by U.S. financials and oil companies. Tuesday's Asian trading was characterized by a risk-on attitude, while European stocks opened higher. The United States had taken him to New York over the weekend and seized him. On Monday, Nicolas Maduro, the ousted Venezuelan president, pleaded no contest to drug charges. The STOXX600 was up 0.1% at 1000 GMT after touching a new high earlier in session. The MSCI World Equity Index rose 0.2% while London's FTSE 100 climbed 0.4%.
It doesn't seem to be a serious market shiver. Fiona Cincotta is a senior market analyst at City Index. She said that the market does not price in an increase in risk or a ripple impact of Trump possibly stepping into other countries in South America.
Investors bet that Washington would allow U.S. companies access to Venezuelan oil reserves. Donald Trump, the U.S. president, plans to meet with executives of U.S. companies to discuss increasing Venezuelan oil production later this week, according to a source familiar with the situation. Analysts said that it is too early to determine the impact of Venezuela's oil production. Oil prices rose slightly on Tuesday. Brent crude futures rose 0.3% to $61.94 per barrel.
In a research report, UBS analysts stated that "Venezuela’s energy infrastructure is in a state of severe disrepair. Any meaningful production recovery will at best be a multiyear prospect."
U.S. ECONOMIC DATA WILL SET MARKET TANE The U.S. Dollar was steady with the dollar index standing at 98.395. The dollar index was at 98.395 in the last session, which is a steady level. It surged to a four-week-high during the previous session. However, it lost all its gains when a measure for U.S. Manufacturing Activity fell to a fourteen-month-low. The euro was barely changed at $1.1715.
Markets were buoyed by expectations of U.S. rate cuts. The traders were focusing on the U.S. employment report due Friday. This will affect market expectations on monetary policy. According to LSEG, financial markets are pricing in at least two Federal Reserve rate reductions this year. Neel Kazhkari, Minneapolis Fed president, warned that the unemployment?rate may "pop" up in a CNBC interview Monday. However, he said inflation was slowly on the decline.
UBS analysts stated that "while Kashkari’s neutral stance could slow expectations for rate cuts, we believe continued labor market weakness will keep the FOMC in line for another rate reduction this quarter. This will maintain downward pressure on US dollar." PMI data revealed that the euro-zone economy grew at a slower rate last month, but had its best quarterly growth for more than two year's by 2025. Prices rose less than expected in France but 1.8% more in Germany's largest state. After the data was released, euro zone government bond rates dropped. The benchmark German ten-year yield is now at 2.8561%.
Gold spot prices were around $4,451, which is a week-high. Copper reached a new high. (Reporting and editing by Elizabeth Howcroft, Hugh Lawson).
(source: Reuters)