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India's Jio Financial Services leaps after quarterly profits surges
Shares of Jio Financial Services soared on Friday after the non bank lender reported a more than doubled?quarterly?profit,?adding investor confidence in its expansion into lending, payments and insurance, as well as asset management. The stock rose as high as 6.1%, and by 10:29 am IST was up as recently as 3.9% to 244.83 rupees. This makes it the biggest gainer in the benchmark Nifty50. Jio Financial, which was spun-off from Mukesh Ambani’s Reliance Industries in 2023 and will be listed on the stock exchange, announced that its net profit for the June quarter more than doubled to 8.3 billion rupees (86.19 millions dollars), mainly due to broad-based growth across segments. Analysts at Motilal-Oswal say Jio Financial had a good quarter. Jio Credit, the lending arm of Jio Financial, has been growing rapidly since gross assets under management surpassed 300 billion rupees. The brokerage highlighted improved profitability in the payment?business, and steady progress in insurance and asset-management operations. Motilal oswal stated that execution across all businesses remained strong. It added that they expect earnings momentum to?increase further as scale improves and the management continues its focus on profitablity. The brokerage anticipates that assets under management will grow at a CAGR of 85%, and profits at a CAGR of 145% over the fiscal years 2026-2028. Jefferies stated that the results were aided by the growth of the company's client base and the progress made in the insurance industry. ($1 = 96.3025 Indian rupees) (Reporting by Mridula Kumar in Bengaluru; Editing by Subhranshu Sahu)
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The ROI-LME wanted to buy more lead. Andy Home
Lead is everywhere. The London Metal Exchange's (LME) battery metal stocks jumped by 58% in just two days this week thanks to the warranting 171,175 tons of metric tonnes at warehouses in Singapore. It is the exchange's duty to be happy. The exchange reduced listing fees between April 2024 to December 2025 for smaller lead producers in order to "enhance the liquidity" of its?lead contracts. Evidently, it worked. LME's lead stock has risen to?almost 500 tons in the last few months. This includes large quantities of lead that are in?off-warrant? storage. Metals that are no longer in demand have become the preferred financing option for metallic products. The majority of this inventory is located in Singapore and it rotates between warehouses to find better rental rates. This week’s burst in warranting activity was just the latest and largest of such rotations. Where did all this metal come? How much more metal is to come? WAREHOUSE ROULETTE LME lead stocks are characterized by large and concentrated bursts that warrant action. This has been going on for several months. The trade is based more on warehousing than the fundamentals of the lead market. The trader in this instance, Trafigura, agreed with the warehouse operator that the future rent fees paid by the new owner would be split. The new owner is likely to cancel the warrants quickly to avoid the rental agreement and move the metal to another warehouse company. Stock churn used to be a feature of the LME Aluminium market. However, inventory has now dropped below 400,000 tons. This includes off-warranty stocks. The lead is now the game. A portion of the "stocks" that arrived this week were simply moved from stocks off-warrant. The metal stocks in Singapore fell by 34.256 tons when the first 83.225-ton batch of metal was placed on warrant on Monday. There are still 142,598 tonnes of metal that could be warrantable ahead of the second delivery on Tuesday. INDIAN EXPORTS SURGE At the end of June, 76% of total LME on-warrant inventory was made up of Indian lead. In January 2023, there was no Indian metal in the LME system. According to the World Bureau of Metal Statistics, which gathers trade data from customs statistics, Indian exports increased between 2022 and last year from 151,000 tons. Singapore is a popular destination even though it's not a major hub for lead-acid battery manufacturing, which is the primary application of the metal. Since the beginning of 2023, Singapore has received more than 400,000 tons. In November 2025 they reached a peak of 31,000 tons, which was almost half the total refined lead exported by India. There were three lead brands registered at the LME until last year. Two of them were produced by Hindustan Zinc, a large mine-to refinery primary producer. The third was by Jain Resource Recycling, a secondary producer. Last year, the LME added five more brands with a combined production capacity of 195,000 tonnes as part of its drive to encourage smaller secondary lead producers. Gravita India has become the ninth Indian leading brand to achieve LME Good Delivery status. Change of flow As more Indian producers register with the exchange, it is likely that there will be an increase in the amount of lead delivered to LME storage facilities in Singapore. India's trade patterns have changed this year. According to the WBMS, exports to Singapore in April were only 1,555 tons, the lowest monthly total in the past year. China was the main destination in April, with 8,685 tonnes representing 34% of all exports. It is a very new market for Indian Metal. China imported very little refined lead last year, and only took 500 tons of it from India. WBMS data shows that imports of Indian goods grew to 57,000 tons during the first five months this year. This brings the total to 132,000 tonnes, the highest amount since 2009. It is unclear why China suddenly requires so much lead, but the fact that it does means that less Indian metal will be heading to LME Singapore warehouses. This still leaves Singapore with a large amount of metal that is being sold through warehouse deals. This week, the sudden emergence of so much lead sent LME's three-month metal to a 15-month-low price of $1840 per ton. The chances of a sustained economic recovery are dependent on how long China will continue to divert Indian metals away from LME Singapore warehouses. Andy Home is a columnist at. This column is great! Open Interest (ROI) is your new essential source of global financial commentary. Follow ROI on LinkedIn and X. Listen to the Morning Bid podcast daily on Apple, Spotify or the app. Subscribe to the Morning Bid podcast and hear journalists discussing the latest news in finance and markets seven days a weeks.
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MORNING BID EUROPE - Chip away
Rae Wee gives us a look at what the European and global markets will be like tomorrow. Global chip losses continued into Friday. While South Korean stocks were spared due to a holiday, Taiwanese and Japanese shares took the brunt. Even TSMC's 77% higher than expected earnings the day before failed to impress investors as the shares of the Taiwanese chips manufacturing giant fell 4%. The movements across Asia have set Europe up for an uncertain start. The EUROSTOXX Futures fell?0.9% while the DAX Futures dropped 0.6%. Investors have begun to pull back from the semiconductor market after a strong year. Concerns over AI spending are now at the forefront. The over-subscription of CXMT's initial public offering of $8.6 billion reflects investor caution. It is lower than the majority of recent Chinese IPOs. Donald Trump, the U.S. president, declassified on Thursday intelligence that he claimed showed Chinese interference in U.S. election, renewing his long-running attack on election security, despite an U.S. Intelligence Assessment that found no proof Beijing affected the 2020 votes that he lost. The markets appeared to dismiss his claims, but Trump’s harsh language towards China could rock a relationship that had been stabilised following last year’s costly trade conflict. Trump hopes to have a meeting with Chinese President Xi Jinping about?improving the trade relations in September. Iran said it had launched a new?attack on U.S. military installations in the Gulf, after the sixth night of U.S. strikes on Iranian military sites. China's foreign exchange regulator announced on Friday that it will allocate fresh quotas to qualified institutional investors for their overseas investments. This follows a recent crackdown on illegal capital flows. The following are the key?events? that could impact markets on Friday: - U.S. industrial production, housing data and import prices Earnings of companies including Swedbank and Danske Bank. Sweco and Volvo. Burberry Group. Reopening the 1-month, 3-month, and 6-month UK Government Debt Auctions
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India will launch headline service output index in a few months, Statistics Secretary says
India's statistics secretary announced that the country will launch a headline "Index of Services Production" within months. This index will give investors for the first time a monthly measure of output in India's dominant service sector. The Ministry of Statistics and Programme Implementation published trial monthly indices on Tuesday for 19 sub-sectors of formal services, covering approximately 60% of that economy. However, it did not release a composite headline measurement. India does not have an official monthly measure of output in its dominant service sector. In an interview late Thursday, Statistics Secretary Saurabh Garg stated that "we?are hopeful" to be able?to release a 'headline number? as well. Garg explained that the ministry will assess whether it should include other sectors, such as education and health, before launching a composite index. However, the timeline for launching this index will depend on how reliable the data is. He said that the headline index would initially use the 19 existing sectors. However, work is ongoing to extend coverage beyond the 60% formal "services economy". The April trial data showed a broad-based increase, with 14 of?19 subsectors showing double-digit gains. Leading the way were accommodation and food services retail trade, and administrative services. Air transport declined, while rail transport was largely flat. Garg stated that the monthly services index along with labour, industry and infrastructure indicators would improve 'the government's ability of assessing economic activity in real time. I am certain it will improve the robustness and reliability of the GDP number. Reporting by Shubham Bhatra in New Delhi, editing by Nivedita Boutattacharjee
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What is the EU emissions trading system (ETS)?
The European Commission is set to propose a major overhaul of Europe's largest climate change policy, the EU's emission trading system. This affects all industries, power plants, airlines, and shipping firms across the continent. What you should know What is the EU ETS? The Emissions Trading System (ETS) is the EU's flagship policy to reduce greenhouse gas emissions. Since 2005, the EU has mandated that industries and power plants in Europe purchase a permit per metric ton of CO2 they emit. This creates a financial incentive for them to invest in cleaner technologies. Emissions from ships and flights within Europe are also included, as well as 50% of emissions from international shipping to or from EU ports. Where does it apply? The EU ETS is applicable to all 27 EU member countries as well as Iceland, Liechtenstein, and Norway, who are not EU members. The system is linked to Switzerland's ETS. The UK left the EU ETS after leaving the EU. Now, the two sides are negotiating to connect their respective ETSs. China and South Korea have carbon prices as well, but EU's is strictest and the most expensive. How does it work? The EU requires that companies surrender enough CO2 permits each year to cover their emissions. The ETS limits the number of permits that can be released to the market every year in order to reduce emissions. Permits are exchanged on energy exchanges. Low-emitting firms can sell their extra permits to earn?money and large polluters may buy extras as needed. Around 57% of ETS permits sold each year are used to reduce CO2 emissions. The rest is given away to companies to help them compete with foreign firms who don't have to pay for CO2 costs. The EU does NOT control the price of permits for CO2, which has increased from less than EUR10 per ton in 2010 to around EUR80 today. The ETS has a "market stabilization reserve" that can add or remove?permits to the market in the event of a dramatic change in supply. This can indirectly help control price swings. Does it work? Yes, in a nutshell. Since 2005, CO2 emissions in sectors covered by the EU ETS has been halved. The CO2 price made renewable energy and natural gas plants more cost-effective than coal. However, the emissions of heavy industry barely decreased until 2020. Some companies claim that the reductions in emissions since then are due to plant closures, deindustrialisation and Europe's high prices for energy and low demand. Why is the ETS being revised? ETS was designed to meet the EU 2030 climate goal. The scheme will run out of permits for CO2 in 2039 if left unchanged. This is a trend that needs to be changed, as many industries won't have achieved zero emissions before then. The revision is aimed at extending the system to 2030 and aligning it with the EU's 2040 target to reduce net emissions by 90 percent, which was agreed on last year. It is happening during a backlash in Europe against the green agenda. Countries like Italy and Poland claim that it undermines industrial competitiveness. The key question is if the upcoming revision of the?ETS will weaken it in response to certain governments' and businesses' complaints that the system puts Europe at an unfair disadvantage on global markets. What's at Stake? The EU's climate targets are worth hundreds of billions of euro. Around 40% of EU emissions are covered by the ETS. The EU will not meet its emission-reduction goals without it. Since 2013, the ETS has generated EUR260billion in revenue. About 75-80% goes to the national budgets of EU countries, and the rest is put into EU funds that finance clean energy investment. Brussels plans to tighten rules for how countries use their ETS revenue. This move is likely to be opposed by national governments. Since its launch, the EU has also provided industries with free CO2 permits valued at EUR 250 billion. This will be determined by the revision. Who wants what? BASF, a German chemical giant, has demanded that the EU stop increasing ETS costs and maintain industries' free licenses. Some, such as the SSAB steel company in Sweden, have made significant investments in CO2-cutting technology and want a high ETS price so that their investments can be competitive. The governments are also divided. Italy and Poland are against the ETS, while Sweden and Denmark want to keep it. What happens next? After the Commission's proposal, which was made on Friday, EU member states and the European Parlament will present their own amendments and negotiate final rules. This process could take up to a year. The Commission will likely fast-track some parts of its proposal, which is due to be approved in this year. This includes rules that increase the number of free allowances for industries from this year. (Reporting and editing by Jan Harvey; Kate Abnett)
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Oil prices rise on US-Iran hostilities intensifying, and the threat of Red Sea closure
Oil prices increased on Friday as a result of the U.S. and Iran intensifying their attacks in the Gulf. Their broken 'truce' has limited oil flow out of the Strait of Hormuz, and 'Tehran asked the Houthi political organisation and military organization to be ready to close the Red Sea export route. Brent crude futures gained 70 cents or 0.83% to $84.93 a bar at 0312 GMT. U.S. West Texas intermediate futures also rose 81 cents or 1.03% to $79.76 a bar, erasing the losses of the previous session. Both benchmark contracts have gained nearly 12% in the past week. Brent is on course for a weekly gain of three consecutive weeks, and WTI is on pace to gain a second weekly. Tim Waterer is the chief market analyst for KCM Trade. He said that "the potential threat of a major disruption in supply at the Red Sea further complicates?the outlook for global oil". He said the "dual risk scenario" kept a geopolitical bonus embedded in both benchmarks. On Wednesday, for the first time after a memorandum o' understanding had paused the fighting last month, U.S. launched two large waves of air strikes in one day, mainly at targets near Iran’s southern coast. It continued to fire on Thursday. Qatar's Defence Ministry said that its forces had thwarted a missile attack by Iran early on Friday morning, and the Interior Ministry said a child suffered injuries from shrapnel as a result of interception operations. Fatih Bibil, Executive Director of the International Energy Agency (IEA), said on Thursday in Washington at an event organized by the Council on Foreign Relations. He said: "We should worry, and I'm worried, if things don't improve in the next few weeks." The U.S. Central Command issued a statement saying that American forces began "a new 'wave of strikes against Iran for a sixth consecutive night in order to further degrade Iranian armed capabilities" at 2 pm EDT (1800 GMT), which is 9:30 pm in?Tehran. Tehran responded with missiles and unmanned aerial vehicles aimed at U.S. bases in neighbouring states, including an attack on a newly expanded airbase in Jordan. Three sources said that Iran's leadership had warned its Houthi allies to be ready to shut down?the Red Sea Oil Route if the U.S. struck Iranian power infrastructure. IG analysts stated that technically, WTI may test the mid $80s if the price holds above the key support at the mid $70s.
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Gold set to suffer its biggest weekly loss since 2006 as inflation fears fuelled by the Iran War
Gold was on course for its largest 'weekly loss' in six years on Friday as the escalating U.S. - Iran clashes pushed up oil prices. This increased inflationary pressures, and strengthened the case for higher U.S. rates. Gold spot was up 0.5% to $3,988.20 an ounce at 0313 GMT. It had been trading at its lowest level since July 1, earlier in the session. U.S. Gold futures for August delivery remained unchanged at $3,992. Metal prices have fallen 3.2% this week, the most since June 1. The ongoing Middle East tensions are outweighing support provided by softer U.S. June inflation figures that were released this week. Tim Waterer is the chief market analyst for KCM Trade. He said that despite the lower CPI and PPI numbers, traders couldn't rejoice over the lower inflation figures because of the recent spike in oil prices. Gold is still being held back by geopolitical concerns in the Middle East, primarily due to inflation and yield worries. Iran and the United States traded increasingly intense fire on Thursday, in an escalation lasting a week that has mostly unraveled last month's ceasefire. The oil prices have increased by about 12% this week, due to the limited oil flow out of the Strait of Hormuz. Tehran has asked the Houthi movement to be ready to close the Red Sea export route. Oil prices are on the rise, which could increase inflation fears and lead to a rate hike. In a high interest rate environment, non-yielding assets like gold tend to struggle as investors look for better-paying assets. Lorie Logan, the Dallas Federal Reserve president, became the first new Fed colleague of Chairman Kevin Warsh to publicly call for a rate increase. Fed Vice-Chair Philip Jefferson said he would be?open to raising rates in the event of a near-term decline in inflation. CME FedWatch Tool shows that traders are pricing in a 73% probability of an interest rate increase in December. Other than that, spot silver dropped 0.5% per ounce to $55.22, platinum fell 0.7% to 1,605.62, and palladium slipped 0.4% to 1 244.86. All three metals are headed for a loss this week.
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Seven & i shares rise 3% after Zabka convenience stores stake talks
Seven & i shares rose 3% on Friday in Tokyo after the Japanese retailer announced that it is in talks to buy a stake from Polish convenience store operator Zabka Group. Nikkei reports that the '7-Eleven owner may consider acquiring Zabka share held by funds. The investment is likely to be several hundred billion dollars (several billion yen). The deal would expand Seven & i’s reach beyond its strongholds of Japan and North America to Eastern Europe. This is part of the retailer’s efforts to grow under the leadership Stephen Dacus. Naoshi Matsumoto is an analyst with Yamawa Securities. He said that defensive sectors, centered on domestic demand, are being purchased amid overall market weakness caused by falling semiconductor stocks. Aeon, Japan’s largest retailer, rose 3%, while memory chipmaker Kioxia dropped 15%. Zabka (listed in Warsaw) which operates more than 13,000 shops in Poland and Romania rose 11% on the news. In 2021 Seven & i will acquire Speedway petrol stations, expanding its presence in the U.S. It has already opened outlets in three Nordic nations and has made Europe a "fourth growth pillar". Seven is struggling to improve their flagging business after a fight with Canadian competitor Alimentation Couche-Tard, who had attempted to buy it in what would have been Japan’s largest-ever overseas acquisition. Investors have been putting pressure on the retailer due to its lackluster returns. They also want it to focus more on its core business of convenience stores. Last year, it sold its supermarket business to Bain Capital. Bloomberg News reported that SoftBank Corp. and mobile payments provider PayPay were in talks about?investing several hundred billion yen into Seven & i, with Sumitomo 'Mitsui Card? also taking a stake. In a note, Bernstein analysts wrote that a partnership reflects a "history of digital 'defeat", and Seven & i is "buying 'takeover defense with shareholder money." The analysts stated that Seven is plugging the largest weakness it has with outside capital, and installing friendly investors as a countermeasure to a takeover.
Metals like copper and industrial metals are falling as Middle East conflict weighs on the demand outlook
Copper and the wider base metal complex fell on Friday as inflation fears and a deteriorating risk outlook prompted by the Middle East conflict weighed down the demand outlook.
The benchmark three-month copper on the London Metal Exchange fell 0.88%, to $13,479.5 per metric ton at 0300 GMT. The Shanghai Futures Exchange's most traded copper contract fell by 0.63%, to 103650 yuan (15,299.12 dollars) per ton.
Copper, also known as "Dr Copper", fluctuated throughout the week. It is on track to finish the week with a 0.2% increase.
The Strait of Hormuz has been affected by the breakdown of peace negotiations and the intensification of fighting between the U.S.A. and Iran. Brent crude has risen nearly 12% in the last week, and oil prices increased on Friday.
Gold, which does not yield a return, was set to suffer its largest weekly loss in the past six weeks despite gaining a little on Friday. This is because of bets that rising inflation would keep rates high for longer.
The economic activity of industrial minerals is dampened by higher interest rates.
A string of economic statistics for June, published this week, offset some concerns about U.S. rates that are likely to remain higher longer, softening the sentiment a bit.
The demand for copper is also supported by the recent withdrawals of LME stockpiles and a?good interest in buying from China, the top consumer. The Yangshan premium
LME Nickel fell by?1.88%, while SHFE nickel dropped by 1.18%.
Nickel's decline wiped out much of the previous days rally when prices rose on worries about raw material supplies.
Aluminium, zinc, and lead all dropped a little more than 1%, while tin fell 1.7%.
On the SHFE, aluminium gained 0.15%. Zinc lost 0.41%. Lead rose 1.8%. Tin lost 1.39%. $1 = 6.7749 Chinese Yuan Renminbi (Reporting and editing by Janane Vekatraman).
(source: Reuters)