US Goods Trade Deficit Widens 17.2% To $118.8 Billion In July; AI Imports Surge
- The U.S. goods trade deficit widened 17.2% MoM to $118.8 billion in July, the largest since March 2025 and well above the $100.5 billion economist forecast.
- Imports rose 3.7% to $318.2 billion, while goods exports fell 2.9% to $199.4 billion. Capital goods imports jumped sharply, driven by continued strong shipments of computers, semiconductors, telecom equipment and other AI-related infrastructure.
- The import surge also reflects companies stockpiling goods and raw materials and adjusting to changing tariff rates. Meanwhile, the Iran war has boosted global demand for U.S. petroleum products.
- The data underline the scale of the AI investment boom, even as the widening trade deficit presents a challenge for Washington's efforts to reduce the U.S. trade gap.
Nifty plunges 271 points in 30 seconds as Bharti Airtel sell order hits closing auction
- Nifty 50 dropped 271 points within just 30 seconds after a large Bharti Airtel sell order was matched at a 3% discount during Tuesday’s closing auction.
- The trade is suspected to be a fat finger error. It was technically within SEBI’s permitted 3% price band, but thin auction participation sharply amplified its impact on the index.
- The closing auction mechanism, introduced on August 3, has already faced turbulence, including a Sensex Nifty divergence on its first day and SEBI action over manipulative trades.
- The incident has renewed concerns about liquidity and price stability in the newly introduced closing auction mechanism.
China Set To Ship At Least 1.2 Million Tonnes Of Urea To India As Export Controls Ease
- China is expected to supply at least 1.2 million tonnes of urea to India under the latest Indian import tender, marking a significant increase in Chinese fertilizer exports after Beijing loosened export controls earlier this year.
- The volume would represent at least two-thirds of the total quantity booked, with shipments required to leave loading ports by September 24.
- The development could improve India’s fertilizer supply security and reflects China’s growing role in meeting India’s urea import requirements. Recent market data also shows China’s return to the export market has sharply increased competition among suppliers and helped ease Indian urea import prices.
RBI Steps Up FX Intervention As Rupee Faces Pressure; Reserves Above $700 Billion
- Banks borrowed ₹3.97 billion via the RBI’s Marginal Standing Facility (MSF) on August 26, while banks’ cash balances stood at ₹8.34 trillion.
- The RBI has shifted to more sustained foreign-exchange intervention over the past month to support the rupee. Measures launched in June to attract dollar funds generated around $73 billion of inflows.
- When the rupee approached record lows, the RBI reportedly deployed around $7 billion in domestic and offshore markets in a single day. Foreign-exchange reserves are now above $700 billion, giving the central bank greater room to counter pressure from elevated oil prices.
- BNP Paribas strategist Chandresh Jain said the RBI’s primary objective is to limit volatility and the speed of two-way moves, rather than fundamentally change the rupee’s broader trend.
🔴 Breaking
Netanyahu Says Iran Deal Impossible; USS Roosevelt Set For 7-Month Middle East Deployment
- Israeli Prime Minister Benjamin Netanyahu said a diplomatic agreement between the U.S. and Iran is impossible, arguing that talks with President Trump had narrowed to three options: a deal, military action or tighter blockade. He said Washington has chosen to further tighten the blockade on Iran and its proxies.
- Netanyahu said Israel will continue its military and security operations as regional challenges persist.
- Meanwhile, according to the CNN report, the 500-crew USS Roosevelt aircraft carrier is expected to deploy to the Middle East in the coming weeks and remain there for at least seven months, adding to the region's military buildup.
🔴 Breaking
Pezeshkian Warns Neighbors Against Supporting Attacks On Iran; Pakistan Pushes Hormuz Mediation
- Iranian President Pezeshkian said Iran has not provoked a regional war and is “firmly resisting invaders,” accusing the U.S. and Israel of waging war on Iran.
- He warned neighboring countries against allowing their territory to be used for attacks on Iran, saying no Muslim country should seek security by sacrificing another neighbor’s security.
- Pakistan said it and friendly countries are closely monitoring U.S.-Iran mediation efforts, while remaining actively engaged in resolving the regional crisis.
- Pakistan’s senior military leaders visited Tehran to advance mediation efforts and plans to reopen the Strait of Hormuz.
- Meanwhile, oil prices fell intraday, with WTI down 1.0% at $80.62/bbl and Brent down 0.9% at $85.57/bbl.
🔴 Breaking
India’s LNG Import Bill Jumps 24% To $5.6 Billion As Hormuz Disruption Drives Costs Higher
- India’s LNG import bill rose 24% to $5.6 billion in April–July FY27, up from $4.5 billion a year earlier, as the Strait of Hormuz disruption pushed up shipping costs and global LNG prices.
- LNG import volumes increased 5.3% to 11,867 MMSCM, showing that the sharp rise in spending was driven primarily by higher prices and freight costs, rather than a comparable increase in volumes.
- India has significantly diversified its LNG sourcing, expanding from 6 countries to 15 countries to reduce dependence on disrupted Gulf supply routes.
- The country is also increasingly sourcing LPG from the U.S.: over 73% of LPG imports are now coming from the U.S., according to Kpler data. In August, India imported around 0.62 million tonnes of LPG from the U.S., following 0.89 million tonnes in July.
- Domestic gas output fell 4.3%, pushing India’s gas import dependence to 51.7%, increasing exposure to international prices and freight costs.
- The higher energy import bill could put additional pressure on India’s current account deficit and the rupee, particularly if elevated LNG prices and shipping costs persist.
Bitcoin surges 23% in a week as record short squeeze wipes out billions
- Bitcoin gained roughly 23% in one week, with a record $1.37 billion in Bitcoin short positions liquidated on August 19, nearly double the previous daily record, according to K33 Research. Another $739 million in shorts were liquidated on August 21.
- More than $4 billion in bearish crypto positions were liquidated during the broader rally, creating heavy forced buying and accelerating Bitcoin’s rebound.
- The rally followed the US Treasury’s decision to increase long term Treasury buybacks from $2 billion to $4 billion per operation, starting September 9. The announcement initially pushed the 30 year Treasury yield from around 5.34% to 5.19%, helping improve sentiment toward risk assets.
- US spot Bitcoin ETFs also saw strong demand, attracting about $1.92 billion in weekly inflows, their strongest week of 2026. BlackRock’s IBIT was among the major beneficiaries.
- The rally has reduced bearish positioning, but the sharp rise in leveraged long positions means another pullback could now trigger fresh liquidations.
DOJ Revives Dormant Prize Courts To Seize Iranian Oil As US Tightens Blockade
- The U.S. Justice Department is preparing to activate long-dormant maritime prize courts to accelerate the seizure and sale of Iranian oil and tanker cargo captured under the U.S. blockade, Bloomberg Law reports.
- The mechanism would allow the U.S. to claim captured vessels and cargo as US property and sell the proceeds to the Treasury, potentially avoiding delays caused by third-party claims under the existing civil-forfeiture process.
- Prize courts have been largely unused since World War II, making the revival legally untested in modern times. The plan is expected to face challenges over war authorization, international law and the legal basis for the blockade.
- The DOJ is reportedly considering the Southern District of Texas as a venue, with the move coordinated with the Pentagon. Legal experts also warn that establishing the precedent could potentially allow China to use similar prize-law mechanisms against U.S. interests in a future conflict.
Foreign Investors Dump ¥764 Billion Japanese Stocks As Bond Yields Surge
- Foreign investors net sold ¥764.1 billion ($4.8 billion) of Japanese equities in the week to August 22, the largest weekly outflow since the week ended June 27.
- Rising global bond yields amid debt and inflation concerns pressured Japanese technology and other growth stocks, with long-term borrowing costs in the U.S., Europe and Japan hitting multi-decade highs.
- Foreign investors, however, bought ¥435.2 billion of Japanese government bonds (JGBs) after two consecutive weeks of net selling.
- Foreign investors also net sold ¥2.07 trillion of short-term Japanese Treasury bills, marking a second straight week of outflows.
- Meanwhile, Japanese investors net sold ¥869 billion of foreign equities, the largest weekly outflow since the week ended June 6.
🔴 Breaking
Trump Says 10 Million Barrels Of Oil Left Hormuz; 22 Vessels Transited Overnight
- U.S. President Donald Trump said around 10 million barrels of oil left the Strait of Hormuz yesterday and 22 vessels transited the waterway overnight.
- Trump said the Strait of Hormuz is operating normally and large volumes of oil are flowing, while reiterating that the U.S. blockade remains in effect.
- He also said Iranians are not trustworthy negotiating partners and are unsuitable counterparties for an agreement.
- Trump praised the U.S. military's performance as “remarkable” and said prices are falling. He also commented on Iran's Supreme Leader, saying he does not believe the leader is dead but may have suffered serious injuries.
🔴 Breaking
Bessent’s Market Interventions Expand From FX To Treasuries As US Targets Yields
- Under Treasury Secretary Scott Bessent, U.S. market interventions have expanded from currency markets to Treasury liquidity and long-term borrowing costs:
- Early 2025: Treasury began probing banks for yen bids ahead of potential FX intervention.
- June 2025: Treasury conducted a record $10 billion repo to support bond-market liquidity.
- October 2025: U.S. directly bought more than $1 billion of Argentine pesos and agreed a $20 billion Argentina currency-swap framework.
- November 2025: Bessent signalled gradual Treasury coupon-auction adjustments while maintaining a “regular and predictable” issuance approach.
- July 2026: U.S. made its first direct yen purchases in nearly 30 years, reportedly buying $5–10 billion of yen to curb depreciation and reduce the risk of Japanese Treasury selling. The yen strengthened from around 164 to 157.
- August 2026: Treasury doubled 10–30-year Treasury repo operations from $20 billion to at least $40 billion per operation, starting September 9, as the 30-year yield approached 5.3%. The 30-year yield subsequently fell about 10bps.
- August 2026: Treasury also considered deploying roughly $950 billion–$1 trillion in TGA balances to support bond-buyback/repo operations, potentially giving Bessent significantly more firepower to influence long-term yields.
- Market focus: The increasingly active Treasury role raises questions over whether these measures can sustainably suppress long-term yields or merely shift financing and duration risks elsewhere.
US Reportedly Pauses Visa Appointments Globally Amid Trump Immigration Crackdown
- The U.S. has reportedly paused visa applications and appointments worldwide amid the Trump administration’s broader immigration crackdown, according to the Financial Times.
- Applicants with scheduled interviews at U.S. embassies and consulates have reportedly received emails saying their appointments are being rescheduled, with new dates to be provided later.
- The Financial Times cited a State Department official saying the move is aimed at limiting access for applicants considered likely to rely on U.S. government assistance.
- The State Department told Reuters that a global training initiative has been launched across U.S. embassies and consulates, with visa-service appointments being adjusted to accommodate the training.
Indian IT Firms Cut H-1B Dependence As $103,265 Visa Fee Looms
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Ukraine Attacks Cut Russian Crude Flows To India; Russia Shipments Seen At 2 Mln Bpd
- Ukraine attacks have disrupted Russian crude deliveries to India, prompting refiners to reduce purchases from Russia and source more barrels from West Africa, the Americas and Gulf suppliers.
- Kpler expects Russian crude shipments to India to fall to around 2.0 million bpd in August from 2.8 million bpd in July, citing lower Russian export availability, increased competition, normalization after strong buying and refinery maintenance.
- Russian crude accounted for more than half of India’s imports last month, but shipments could recover above 2 million bpd in coming months as refinery maintenance ends and demand rises.
- Meanwhile, only 5 bulk vessels crossed the Strait of Hormuz on Tuesday, unchanged from Monday but far below the 10-day average of 15. Traffic through Bab al-Mandeb rose to 31 vessels from 29, close to its 10-day average.
RBI Turns Forex Buyer as Inflows Surge to $73 Billion
- RBI net bought $561 million in the forex market in June, reversing net sales of $6 billion in May and $8.9 billion in April. This was the central bank’s first net purchase since February.
- The turnaround came as India attracted nearly $73 billion in foreign inflows since June 8, largely through a zero cost hedging facility for banks’ overseas FX deposits.
- The rupee, which hit a record low of ₹96.96 per dollar in May, has since stabilised as RBI and the government introduced measures to attract foreign capital.
Indian IT Firms Cut H-1B Dependence As $103,265 Visa Fee Looms
- Nasscom said Indian technology companies have sharply reduced their reliance on H-1B visas following the Trump administration’s proposed $103,265 application fee.
- TCS reported only around 500 H-1B travellers last fiscal year, while Wipro said more than 80% of its U.S. workforce is locally hired.
- The industry body said Indian IT firms have expanded local U.S. hiring and invested $1.1 billion in STEM education over the past five years.
- However, analysts estimate the proposed fee could still add up to $250 million annually to costs for large Indian IT companies and accelerate offshoring.
U.S. Proposes $103,265 H-1B Fee, India Faces Major Impact
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US Sanctions 4 Indian Companies, 3 Nationals Over Iranian Oil Trade
- The U.S. has sanctioned four Indian companies and three Indian nationals accused of facilitating imports of Iranian petroleum and petrochemical products as Washington expands its campaign to cut Tehran’s global financial links.
- The U.S. Treasury said Sadashiva Overseas imported around $69 million of Iranian-origin petroleum products between February 2024 and June 2025. PP Softtech and Prakrutees Infra Impex were each linked to around $25 million of imports, taking the combined value attributed to the three companies to roughly $119 million.
- Portease Partners, an Indian customs broker, was also sanctioned, along with partners Indrismiya Asharafmiya Shekh and Harish Ramchandra Rangi, and PP Softtech director Prashant Garg.
- The measures are part of “Operation Economic Outcast,” targeting Iran-linked entities, individuals and vessels, with secondary-sanctions exposure extending across digital assets, technology, gold, aviation and shipping.
🔴 Breaking
US Debt Tops $40 Trillion, Exceeds 123% Of GDP; Fed Officials Warn Of Debt Risks
- The U.S. national debt has crossed $40 trillion, exceeding 123% of GDP, as Fed officials warn of growing risks to Treasury demand.
- Fed’s Thomas Barkin said the rising debt will ultimately face “liquidation”, though the timing is unpredictable. He warned investors could eventually balk at continued U.S. borrowing, despite support from the dollar’s reserve status and U.S. rule of law.
- Barkin said rates should remain steady given falling inflation, but acknowledged the Fed may need to raise rates if price pressures become entrenched.
- Ray Dalio warned investors to reduce bond exposure and allocate around 10%–15% to gold, saying a U.S. debt crisis could emerge within three years.
- Meanwhile, four regional Fed bank boards backed a 25bps discount-rate hike ahead of the July FOMC, while the July 28–29 FOMC voted 9–3 to hold rates at 3.5%–3.75%, highlighting growing disagreement over monetary policy.
Jack Ma Buys HK$600 Million Alibaba Shares After HK$80 Billion AI Fundraise
- Alibaba founder Jack Ma bought more than HK$600 million of the company’s Hong Kong-listed shares over two consecutive days, signalling confidence in its AI strategy.
- The purchases followed Alibaba’s HK$80 billion ($10.2 billion) share placement, its biggest since 2019, with proceeds earmarked for AI infrastructure and development.
- Chairman Joe Tsai and CEO Eddie Wu also bought shares worth a combined HK$202 million over the past two days.
- Bank of America Securities maintained a Buy rating, while investor Michael Burry remained bearish on Alibaba at current levels.
🔴 Breaking
Canada Unveils C$7.5 Billion Tariff Support Plan; Retaliatory Duties Up To 50%
- Canada unveiled a C$7.5 billion support package for businesses and workers affected by the escalating U.S. tariff dispute.
- Canada will impose 15%–50% retaliatory tariffs on roughly $20 billion of U.S. goods, while raising tariffs on U.S. steel products from 25% to 50%.
- The new duties will cover around 700 products and take effect September 8, with tariff rates of 15%, 25% or 50%.
