Goldman Sachs Cuts South Korea’s KOSPI Target by 25% to 9,000, Sees Over 60% Upside
- Target slashed: Goldman Sachs strategists led by Timothy Mo have cut their 12-month KOSPI index target from 12,000 to 9,000 points, a 25% reduction.
- AI trade concerns intensify: The downgrade follows growing market worries over AI-related investments and trades, prompting a more cautious valuation outlook.
- Index falls over 35%: The South Korean benchmark has dropped more than 35% from its June peak, according to the report.
- Goldman still sees substantial upside: Despite lowering its target, the bank believes the recent sell-off has left South Korean equities significantly undervalued.
- More than 60% potential gain: Goldman’s revised target still implies over 60% upside from the index level cited in its analysis.
AI Boom Faces a Reality Check: No Clear Financial Payoff Outside Big Tech
- AI returns remain concentrated: Despite massive investments and widespread hype, a new analysis argues there is still no clear evidence that AI is delivering meaningful financial gains across corporate America outside the technology sector.
- Big Tech outperforms the rest: Revenue per employee and profit margins are reportedly rising for the “Magnificent Seven” tech giants, while remaining largely flat for the other 493 companies in the S&P 500.
- Productivity gains remain elusive: The analysis finds no clear evidence that AI has yet accelerated broader productivity growth.
- Corporate spending faces scrutiny: Companies outside the tech sector are increasingly treating AI token spending as a cost rather than a proven driver of revenue growth and profitability.
- Cheaper AI may not guarantee better results: Even as AI models become more affordable, businesses must translate their capabilities into higher revenues and margins. The analysis highlights challenges involving human judgment, accountability, trust, workplace culture and ethical decisions.
- The broader economy is the real test: Venture-backed companies may continue spending heavily on AI, but widespread economic benefits will depend on adoption and measurable returns across mainstream industries.
Trump Says US Could Strike Iran “At Any Time,” Attacks Obama Ahead of Midterm Elections
- Iran strike warning: President Donald Trump said on October 24 that the US could take military action against Iran “at any time,” while adding that a deal could still be reached.
- Calls for a permanent nuclear agreement: Trump argued that Iran could eventually develop a nuclear weapon, saying a lasting agreement was necessary. He also referenced the potential use of B-2 bombers, while declining to disclose US military plans.
- Attacks Obama’s foreign policy: Trump called former President Barack Obama “extremely incompetent,” accusing his administration of making foreign-policy mistakes and giving Iran billions of dollars.
- Targets Obama’s electoral record: Trump criticised Obama for supporting Hillary Clinton and Kamala Harris, both of whom lost their presidential elections, and predicted another defeat for a candidate Obama is reportedly backing.
- Makes further political allegations: Trump attacked another candidate in inflammatory terms and mocked Obama personally in his social media post.
- Promotes his Michigan record: Trump claimed he had won Michigan decisively, revived the auto industry, supported air force bases and created more jobs.
- Endorses Mike Rogers: Trump urged Michigan voters to support Republican Senate candidate Mike Rogers, saying he would “never let you down.”
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Iran Says Interim Deal With US Should Still Be Pursued as Washington Vows to Maintain Naval Blockade
- Pezeshkian criticises Washington: Iranian President Masoud Pezeshkian accused the US of derailing an interim agreement but said Tehran should still pursue a deal, Reuters reported.
- Iranian economic hardship deepens: Pezeshkian said many Iranians are struggling to afford food amid a prolonged “neither war nor peace” standoff with Washington.
- Earlier agreement collapsed: A deal signed by US President Donald Trump and Pezeshkian in June reportedly fell apart within weeks amid renewed fighting and disagreements over the Strait of Hormuz, according to The Washington Post.
- US vows to sustain blockade: US Ambassador to the United Nations Mike Waltz told the Financial Times that the US Navy could maintain its blockade of Iranian ports for the “foreseeable future.”
Goldman Warns of Crude Supply Shock Risk as Brent Hits Six-Month High
- Refiners rush to secure crude: Goldman Sachs commodities research co-head Daan Struyven said refiners are buying crude because they see a “high probability of a sharp drop in supply,” amid already-low inventories.
- Brent climbs to its highest since April: Brent crude closed Friday at its highest level since April 29, CNBC reported, following Houthi strikes on Saudi targets, including a Saudi Aramco facility.
- Goldman maintains $90 forecast: The bank is retaining its December Brent price forecast of $90 per barrel but says risks are “clearly skewed to the upside.”
- Supply concerns persist despite flow recovery: Regional oil flows have recovered, but intensifying attacks on Saudi Arabia are raising concerns about potential supply disruptions.
- Risk premium could ease: Goldman says the additional risk premium in oil prices could decline if the conflict does not escalate after the US midterm elections.
S&P Dow Jones Indices Changes Growth and Value Stock Rules, Affecting $375 Billion in Passive Funds
- Major index rule changes: S&P Dow Jones Indices is revising how stocks are classified as growth or value, according to CCTV Finance.
- New value-stock criteria: The revised methodology will incorporate intangible assets, expected earnings and free cash flow into the assessment of value stocks.
- 12-month momentum removed: The evaluation of growth stocks will no longer consider their share-price momentum over the previous 12 months.
- Effective December 21: The changes are scheduled to take effect before the US stock market opens on December 21, 2026.
- $375 billion in funds affected: Passive funds tracking the relevant indices may need to rebalance their portfolios to reflect the revised classifications.
- Potential shift in stock classifications: Researchers and fund managers argue that flaws in existing measurement methods may have contributed to the long-term underperformance of value stocks.
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Trump Defends High Oil Prices, Claims Tariffs Made US Richer and Announces $4.2 Billion Audi Plant in Georgia
- Trump dismisses oil-price criticism: President Donald Trump said the US was “making a lot of money” from high oil prices and that he “doesn't care,” acknowledging that critics could accuse him of boasting while Americans suffer at the pump.
- Claims retirement accounts surged: At a rally in Perry, Georgia, Trump urged voters to check their 401(k) retirement accounts, claiming some had gained as much as 80%. He contrasted this with his claim that retirement savings fell around 25% under former President Joe Biden.
- Volkswagen announces $4.2 billion investment: Trump said Volkswagen Group will invest $4.2 billion to build an Audi assembly plant in Georgia, with projected annual production of approximately 200,000 vehicles.
- Trump credits tariffs for the deal: He described the investment as the largest single investment in the modern history of the US auto industry and claimed it “would not have happened without tariffs.” The statement reflects Trump's assessment of the policy's impact.
- Makes claims about Greenland and Venezuela: Trump said Denmark had “gave it to us” and claimed the US secured Greenland and Venezuela “at zero cost.” These remarks were carried by Sputnik.
- Greenland sovereignty remains with Denmark: Denmark has not transferred sovereignty over Greenland to the United States. A reported September agreement expanded US defence rights while reaffirming Danish sovereignty and Greenlanders' right to self-determination.
Russia and Ukraine Report Fresh Strikes as Moscow Announces Local Kherson Ceasefire for October 27
- Russia reports strikes on Ukrainian infrastructure: The Russian Defence Ministry said its forces struck Ukrainian energy and transport facilities, long-range drone storage and launch sites, ports and vessels used by Ukrainian forces over the previous 24 hours.
- Russian interception claims: Moscow said its air defences shot down one French SCALP cruise missile, four long-range Neptune missiles and 1,297 fixed-wing drones.
- Ukraine reports 181 frontline engagements: Ukraine’s General Staff said 181 combat engagements occurred along the front over the previous day. Ukrainian forces reported striking Russian troop concentrations, equipment and drone command posts.
- Ukraine claims Russian equipment destroyed: Kyiv said its forces destroyed Russian tanks, armoured vehicles, artillery and air-defence systems, and shot down 1,855 Russian drones.
- Local ceasefire planned: Russian General Staff Chief Valery Gerasimov said Russian forces would observe a ceasefire in the Kherson direction from 4:00 a.m. Moscow time on October 27 to facilitate humanitarian operations in Oleshky.
- Impact on peace talks uncertain: Russian Foreign Ministry ambassador-at-large Rodion Miroshnik said it was difficult to determine whether the local truce would affect broader Ukraine negotiations, adding that political and military discussions could proceed separately.
Jio Platforms IPO: Grey Market Premium Signals 22.35% Listing Gain Ahead of October 28 Debut
- GMP at ₹250 per share: Jio Platforms shares are reportedly trading at a grey market premium (GMP) of ₹250 over the IPO’s upper price band of ₹1,119, implying an unofficial price of ₹1,369 per share.
- Potential listing gain of 22.35%: At the reported premium, investors who receive an allotment could see an indicative gain of around 22.35%.
- ₹3,000 potential gain per lot: Assuming a lot size of 12 shares, the implied gain would be approximately ₹3,000 per lot.
- Record-breaking IPO: The ₹30,213-crore issue closed on October 23 with subscriptions reaching 22.19 times the shares on offer, making it India’s largest IPO by issue size, surpassing Hyundai Motor India’s ₹27,870-crore offering in 2024.
- Listing expected October 28: Investors are awaiting finalisation of the allotment, credit of shares to demat accounts and the expected BSE and NSE debut.
Jio Platforms IPO Attracts Over $77 Billion in Bids, Breaks 2008 Reliance Power Record
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IMF Raises India’s FY27 Growth Forecast to 7%, but Warns Multiple Shocks Could Hurt Outlook
- Growth forecast upgraded: The IMF raised India’s FY27 growth forecast to 7% from 6.4% in July, citing resilient domestic demand and strong services activity.
- Multiple risks converge: Krishna Srinivasan, head of the IMF’s Asia and Pacific Department, warned that several simultaneous shocks could significantly weaken India’s growth prospects.
- Energy and currency pressures: Higher energy prices and rupee-related pressures could weigh on the economy by increasing import costs and affecting financial conditions.
- AI and El Niño risks: Srinivasan also highlighted potential disruptions from artificial intelligence and El Niño-related weather conditions as risks to India’s economic outlook.
- Reforms urged: He called for land, labour and trade reforms to support sustainable long-term growth and attract foreign investment.
Finance Ministry Official Warns Many Brokers May Not Survive Another Decade as AI Reshapes Markets
- Brokerage industry faces disruption: Alok Tiwari, Joint Secretary in the Department of Economic Affairs (DEA), warned at the ANMI convention in Mumbai that many brokers may not survive the next decade amid AI-driven changes.
- Family-run firms urged to adapt: Tiwari questioned the long-term sustainability of multigenerational family businesses and urged smaller brokerage firms to professionalise their operations and consider consolidation.
- Shift to structural trust: He called for a move away from reputation and historical track records towards “structural trust” built on robust audits, systems and transparent processes.
- NSE flags AI cyber risks: NSE CEO Ashishkumar Chauhan warned of AI-driven cyberattacks and said the exchange is reviewing its network for vulnerabilities.
- Technology reshapes financial services: The remarks highlight growing pressure on brokerage firms and market infrastructure providers to strengthen governance, cybersecurity and operational resilience.
US Senate Race Tightens Ahead of November 3 Midterms as Republicans Defend Key Seats
- Republican advantage narrows: Republicans entered the 2026 midterm cycle viewing the Senate map as favourable, but recent polling and early-voting trends suggest Democrats are gaining momentum.
- Trump campaigns in GOP strongholds: President Donald Trump is campaigning in South Carolina, Mississippi and other Republican-leaning states, while GOP groups are directing substantial funding toward contests in deep-red states, including Texas.
- Key Senate battlegrounds: Republicans are focusing on Iowa, Ohio and Alaska as critical seats to defend, despite Trump having won those states by double-digit margins in 2024.
- Resources concentrated: Republican operatives have reportedly scaled back efforts in Georgia and North Carolina as the party concentrates resources on its remaining priorities.
- Democrats need four seats: Democrats require a net gain of four Senate seats to secure control of the chamber.
- Possible Democratic gains: Democratic strategist David Axelrod said a strong national wave could put Democrats at 53–54 seats, while a weaker wave could leave them short of 51.
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Crypto Market Sell-Off Intensifies as $200 Million in Long Positions Are Liquidated in 60 Minutes
- Bitcoin falls below $80,000: BTC faces renewed selling pressure as the broader crypto market declines.
- Ethereum drops below $2,350: ETH slips below the key price level amid the sell-off.
- XRP falls below $1.30: XRP extends losses, trading below the $1.30 mark.
- Solana drops below $100: SOL falls beneath the psychologically important $100 level.
- Massive liquidations: More than $200 million in leveraged crypto long positions were reportedly liquidated over the past 60 minutes.
- Major cryptocurrencies under pressure: The provided snapshot shows Bitcoin down 0.8% and Ethereum down 1.1% over the past hour, while XRP fell 1.0% and BNB declined 0.5%.
Yemen Escalation: Houthis Report 8 Killed in Cement Factory Strike as Missile Attacks Target Saudi Arabia and Aden
- Cement factory strike: Yemen’s Houthi health ministry said a Saudi-led coalition airstrike on a cement factory in Hamdan, northwest of Sanaa, killed 8 people and wounded 10, most of them women and children. The coalition had not responded to the claim.
- Missile intercepted near Riyadh: Saudi-led coalition spokesman Turki al-Maliki said coalition forces intercepted and destroyed a ballistic missile launched by the Houthis toward Riyadh.
- Civilian deaths in Hodeidah: Saudi state television reported that a failed Houthi missile launch ended with the missile hitting a civilian house in al-Tuhayta district, killing 5 civilians, including children.
- Attack reported in Aden: A Yemeni security official said the southern port city of Aden was hit by a missile attack on October 24, with loud explosions reported.
- Conflicting accounts: The reports highlight escalating exchanges between the Houthis and Saudi-led forces, while details surrounding the separate incidents remain subject to verification.
🔴 Breaking
US Warships Prepare for Possible New Iran Strikes; Netanyahu Warns Palestinian Authority of ‘Big Surprise’
- US military on standby: The Wall Street Journal, citing US officials familiar with the plans, reported that American warships stationed in the Middle East are preparing for a potential escalation. The vessels could be ready to act if President Donald Trump orders fresh strikes on Iran in the coming weeks.
- Netanyahu issues warning to PA: Israeli Prime Minister Benjamin Netanyahu said the Palestinian Authority would face a “big surprise” after he ordered a large-scale military operation in the occupied West Bank following an attack on Israeli soldiers.
- Israeli forces started operations in Hebron on the 23rd. They evicted about 1,500 Palestinians and ordered 2,500 more to leave. The governor said over 200 families were displaced. The military demolished homes and shops, sealed roads, and blocked entry and exit. The IDF said it would conduct precise searches to destroy terrorist facilities and weapons.
- Opposition to Palestinian statehood: Ahead of legislative elections, Netanyahu identified preventing the establishment of a Palestinian state as a campaign objective. He did not explicitly say whether he intends to dissolve the Palestinian Authority.
- Secret measures hinted at: Netanyahu said he would pursue steps to eliminate the perceived threat, adding that some measures were “best kept secret.”
- Abraham Accords expansion: Netanyahu said Israel could extend the Abraham Accords to additional countries without making diplomatic recognition conditional on the creation of a Palestinian state.
- Iran seeks interim agreement: Iranian state television reported that President Masoud Pezeshkian blamed the United States for the breakdown of an interim agreement but said he still wanted to conclude the deal.
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El Niño Strengthens Rapidly; Berkeley Earth Puts Odds of 2026 Becoming Warmest Year at 96%
- Record-warm year increasingly likely: Berkeley Earth’s latest monthly update puts the probability that 2026 narrowly surpasses 2024 as the warmest year on record at approximately 96%, up from 93% in August.
- El Niño intensifies: The research nonprofit says El Niño is strengthening rapidly, with the event potentially reaching unprecedented intensity.
- 2027 could set another record: Because global temperatures respond to El Niño with a delay, Berkeley Earth expects 2027 to set a new temperature high regardless of whether 2026 finishes first or second.
- NOAA signals a powerful event: NOAA’s Climate Prediction Center puts the probability of a strong to very strong El Niño persisting through January–March 2027 at more than 83%.
- NASA maps reveal similar patterns: Sea-level maps comparing 2026 with the 1997 El Niño show similar warm-water patterns. NASA’s Josh Willis said the current event is “on track to be even bigger.”
- US winter impacts remain uncertain: NOAA’s Geophysical Fluid Dynamics Laboratory warns that US impacts could intensify through winter, even as El Niño peaks. Scientists caution that regional consequences remain difficult to predict.
Jio Platforms IPO Attracts Over $77 Billion in Bids, Breaks 2008 Reliance Power Record
- Record-breaking demand: Jio Platforms’ ₹30,213 crore IPO closed on Friday with bids exceeding $77 billion, surpassing the previous record set by Reliance Power in 2008, Reuters reported.
- Issue subscribed 22.19 times: The IPO received total subscriptions of 22.19 times the shares on offer, led by strong institutional demand.
- Institutional bidding surges: Qualified institutional buyers subscribed to their allocated portion 70.55 times, according to BW Marketing World.
- Applications approach 1.39 crore: The number of applications reportedly neared 1.39 crore, potentially setting a global record, ETTelecom reported.
- Allotment and listing: Share allotment is expected around Monday, October 26, with listing on the BSE and NSE scheduled around Wednesday, October 28.
Amazon CEO Says AWS Cloud Capacity Is Largely Sold Out Through 2027 as AI Demand Surges
- Capacity booked years ahead: Amazon CEO Andy Jassy said AWS capacity is largely sold out through 2027, with significant customer commitments already in place for 2028.
- 2026 capacity fully booked: Jassy said AWS has already sold out its available capacity for 2026, highlighting the gap between demand and infrastructure expansion.
- AWS revenue jumps 36.7%: Amazon Web Services generated $42.2 billion in revenue in the second quarter, up 36.7% year-on-year, driven by core cloud and AI services.
- AI demand outpaces supply: Speaking on an Andreessen Horowitz podcast, Jassy said demand from AI laboratories and enterprise customers is growing faster than Amazon can add cloud capacity.
- Infrastructure race intensifies: The strong booking pipeline underscores the pressure on cloud providers to expand data centres, computing capacity and supporting infrastructure.
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Nvidia RTX 5090 Prices Surge to 60,000 Yuan in China as Supply-Halt Rumours Shake Graphics Card Market
- Supply rumours trigger volatility: Reports that Nvidia may discontinue certain consumer graphics cards have unsettled Huaqiangbei, Shenzhen’s major electronics market, with prices reportedly changing daily.
- RTX 5090 nearly quadruples: The high-end RTX 5090, initially priced at around 15,000–16,000 yuan, is now reportedly selling through distribution channels for 55,000–60,000 yuan.
- RTX 5080 more than doubles: The RTX 5080, initially priced at around 8,000 yuan, has reportedly climbed to approximately 17,000 yuan.
- Sharp short-term increases: A Huaqiangbei computer retailer told the 21st Century Business Herald that the RTX 5080’s channel price rose by 4,000–5,000 yuan in roughly half a month, while the RTX 5090 jumped from around 30,000 yuan to the 50,000-yuan range.
- Supply uncertainty drives the market: Traders say rumours surrounding RTX 5090 availability have fuelled sudden price increases, although the reported production halt has not been confirmed in the information provided.
FBI Urges Immediate Patching of Critical PHP Flaws as Exploit Attempts Surge Worldwide
- FBI issues warning: The FBI issued a public service announcement on Friday urging organisations to immediately patch two critical vulnerabilities in PHP core that could allow remote code execution.
- Unauthenticated attacks possible: The flaws, known as PHP2Shell, reportedly allow attackers to execute code on vulnerable servers without logging in.
- Millions of exploit attempts: Cloudflare recorded millions of attempted exploits after technical details of the vulnerabilities leaked, according to TIME.
- AI agent reportedly discovered flaw: An AI agent belonging to a researcher at cybersecurity firm Wiz identified the decade-old vulnerability, according to reports.
- Government websites disrupted: Websites in the UK, Finland and Japan experienced outages, the Associated Press reported. Broome County in New York also took its website offline on Friday as a precaution.
- Organisations urged to act: The surge in exploitation attempts has heightened concerns about exposed servers and the risk of attackers gaining control of vulnerable systems.
Nvidia CEO’s Demo Sends $399 Microduck Robot Preorders Past 20,000; Hugging Face Plans Hiring Push
- Preorders surpass 20,000: The Microduck open-source robot crossed 20,000 preorders after Nvidia CEO Jensen Huang demonstrated four units during his GTC Berlin keynote, TechCrunch reported.
- Affordable robotics product: Pollen Robotics, owned by Hugging Face, developed the robot, which is priced at $399.
- Hiring plans expand: Hugging Face CEO Clément Delangue said demand means the company will need to hire across “all functions.”
- 2026 bestseller claim: Delangue suggested Microduck could become the best-selling robot of 2026, according to GIGAZINE.
- Nvidia deal in focus: The report also cited Nvidia’s September agreement to acquire Hugging Face for $12.9 billion.
US Warns Iran Threat at Highest Level Since War Began; Strait of Hormuz Sees Record October Ship Attacks
- Threat level rises: US intelligence assesses that Iranian plots targeting Americans are at an advanced stage, with threats to US personnel in the Middle East and several other countries at their highest level since the war began in February.
- Embassy security tightened: The State Department has urged employees to increase vigilance and begun reducing staffing at some US embassies and consulates. An intelligence memo warning of risks to diplomatic personnel was sent to Secretary of State Marco Rubio, the administration confirmed.
- Potential overseas targets: Analysts reviewing recent intelligence reports say Iran may have deployed operatives in the United States and identified potential targets in Europe. Officials caution that Tehran’s ability to carry out attacks abroad appears limited relative to its suspected intentions.
- Record month for shipping attacks: A Washington-based maritime security think tank recorded 28 reported incidents involving commercial vessels in October in the Strait of Hormuz and adjacent waters, making it the worst month since tracking began in 2017.
- 113 incidents since February: The think tank has recorded 113 incidents since February 28, when US and Israeli hostilities against Iran began. International Maritime Organization data indicates approximately 120 related incidents across the Strait and wider Middle East.
- Oil tankers damaged: IMO and MarineTraffic records identify more than 30 damaged very large crude carriers (VLCCs), including 11 in October.
Piyush Goyal Says India Aims to Become a $30 Trillion Economy by 2047, Embraces AI and Quantum Computing
- $30 trillion economic target: Union Minister Piyush Goyal said India aims to become a developed country with a $30 trillion economy by 2047, expressing confidence that the target will be achieved.
- India’s AI ambitions: Goyal highlighted ongoing work by Indian startups in frontier technologies, including large language models (LLMs) and artificial intelligence.
- IT talent advantage: He described India as having one of the world’s largest pools of IT talent, which has helped the country become a global supplier of technology professionals.
- Embracing emerging technologies: Goyal said India is preparing to adopt and leverage AI, quantum computing and other new-age technologies rather than fear technological change.
- Future technology jobs: He pointed to emerging opportunities in areas such as cybersecurity and data processing, raising questions about how India’s young workforce will contribute to the evolving technology landscape.
S&P Overhauls Growth-Value Stock Classification as $375 Billion in Passive Assets Face Potential Rebalancing; Data Centre Credit Risks Rise
- Growth-value rules revised: S&P Dow Jones Indices has updated its methodology for classifying stocks as growth or value, incorporating intangible assets, expected earnings and free cash flow into valuation assessments.
- Momentum metric removed: The revised methodology eliminates 12-month price momentum from growth measurements, following a consultation on the classification framework.
- December 21 implementation: The changes will take effect during the annual index reconstitution before markets open on December 21, potentially triggering portfolio adjustments by index-tracking funds.
- At least $375 billion affected: Analyst James Seifert estimates that at least $375 billion in passive assets are linked to the affected indices, highlighting the potential scale of rebalancing.
- US data centre credit risks increase: S&P Global Ratings warned that local opposition, grid capacity constraints, environmental disputes and zoning changes are delaying or cancelling data centre projects.
- 146 projects delayed or cancelled: S&P tracked 146 affected US data centre projects, roughly three-quarters of which were linked to local opposition. New York, Texas, Pennsylvania, Illinois and Arizona were among the states facing project pauses.
- Potential credit downgrades: Although current rating impacts remain limited, prolonged suspensions and approval delays could force developers to offer rent reductions or face early lease terminations, weakening creditworthiness.
US Quietly Moves Diplomats and Families Out of Six Middle East Embassies Amid Rising Security Risks
- Diplomatic drawdown expands: The US State Department is quietly relocating diplomats and their families from embassies in Jordan, Bahrain, Kuwait, Qatar, the UAE and Lebanon, CNN reported, citing sources.
- Saudi Arabia orders departures: On Wednesday, Washington ordered non-emergency personnel to leave Saudi Arabia following Houthi attacks on airports and other infrastructure, according to The Washington Post.
- Multiple diplomatic posts affected: Sources said staffing changes extend beyond Saudi Arabia, with personnel movements reported across several Middle Eastern diplomatic missions.
- Families face uncertainty: The American Foreign Service Association said some families who had recently returned following the Iran war are being sent away again, with housing assistance not yet confirmed.
- Regional security concerns intensify: The relocations come amid heightened tensions and concerns about potential attacks on US personnel and infrastructure across the region.
Iran Reportedly Draws Up Plans to Target Gulf Undersea Internet Cables if US-Israel Attacks Resume
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RBI Governor Says Forex Reserves Adequate for FCNR(B) Payouts; Warns Banks Over AI Cyber Risks
- No target for rupee: RBI Governor Sanjay Malhotra said the central bank does not target a specific rupee exchange-rate level and intervenes to curb speculative activity and excessive volatility.
- Forex reserves adequate: Malhotra said India has sufficient foreign exchange reserves to meet upcoming FCNR(B) deposit repayments. These deposits, which saw substantial inflows through an RBI swap window, mature over three to five years.
- Inflation within tolerance band: The governor said inflation remains elevated but is within the RBI’s tolerance band. He added that monetary policy could be used to support financial stability under certain circumstances.
- Banks alerted to AI cyber threats: The RBI has warned banks about emerging cybersecurity risks linked to artificial intelligence and said lenders are working to address information technology vulnerabilities.
- AI-driven attacks under scrutiny: Malhotra cited reports of AI agents in testing allegedly attacking overseas banks, following a disclosure by State Bank of India concerning possible customer data exposure.
- Data security a priority: The governor said the RBI is prioritising data protection and preventing cyberattacks that could disrupt banking services.
- Stronger oversight requirements: RBI rules introduced in 2026 mandate board-level oversight of cybersecurity and clearly defined responsibilities for chief information security officers (CISOs).
Moody’s Keeps France at Aa3 With Negative Outlook as 10-Year Bond Yield Tops 5% for First Time Since 2002
- Rating unchanged: Moody’s retained France’s sovereign credit rating at Aa3 with a negative outlook on Friday, opting not to downgrade the country.
- Budget assumptions remain critical: The agency expects France to pass a 2027 budget that reduces the deficit, despite political gridlock and protests.
- Borrowing costs surge: France’s 10-year government bond yield climbed above 5%, its highest level since 2002.
- Spread over Germany widens: The premium on French debt over German government bonds reached its widest level since 2011, reflecting heightened investor concerns.
- Political crisis deepens: ING economist Carsten Brzeski told CNBC that France was “deep into French crisis territory.”
- Contagion risks assessed: Despite France’s mounting fiscal and political challenges, analysts see a broader eurozone debt crisis as less likely.
European Natural Gas Prices Hit Highest Since December 2022 as Middle East LNG Supplies Remain Disrupted
- TTF prices surge: The Dutch TTF front-month natural gas contract rose on Friday to its highest level since December 2022, heading for a fourth consecutive weekly gain.
- LNG shipments remain depressed: Middle East LNG shipments are reportedly around 80% below year-ago levels following Houthi strikes on Saudi targets and threats to shipping through the Strait of Hormuz.
- EU storage below normal: European gas storage appears to have peaked at just under 75% capacity, according to ING strategists, leaving inventories below normal levels ahead of winter.
- Geopolitical risks drive volatility: Developments in the Gulf remain a key factor influencing European gas prices, with supply disruptions heightening market sensitivity.
- Winter supply concerns grow: Limited LNG availability and relatively low storage levels are increasing concerns about Europe’s ability to meet heating demand during winter.
Indian Government Bonds Extend Losing Streak to 10 Weeks, Longest in Three Decades, as Oil Prices Surge
- Record losing streak: Indian government bonds fell for a 10th consecutive week on Friday, marking their longest losing streak in three decades, Business Standard reported.
- Oil prices add pressure: Brent crude trading near a five-month high has intensified inflation concerns and raised expectations of further monetary tightening.
- RBI rate outlook weighs: The RBI’s repo rate was recently raised to 5.5%, with signals of further tightening adding to selling pressure in the bond market.
- Fresh debt supply: Additional government borrowing has further weighed on bond prices as investors assess the supply-demand balance.
- India-US yield gap widens: The spread between Indian and US 10-year government bond yields widened beyond 250 basis points, according to Moneycontrol.
- Foreign inflows uncertain: Higher oil prices, interest-rate expectations and the widening yield differential are complicating the outlook for foreign portfolio investment in Indian debt.
🔴 Breaking
Iran Reportedly Draws Up Plans to Target Gulf Undersea Internet Cables if US-Israel Attacks Resume
- Undersea cables could be targeted: According to Reuters, two senior Iranian security officials said Tehran has developed contingency plans to strike undersea communications cables in the Gulf if the United States and Israel launch another attack.
- Repairs could be obstructed: One official reportedly said Iran could also prevent damaged cables from being repaired, potentially prolonging disruptions to internet and communications services.
- ‘No more red lines’: An Iranian official warned that renewed attacks on Iran could lead to retaliation against undersea cables and military bases.
- Technology infrastructure at risk: Iranian officials have also threatened data centres and AI facilities in the Gulf linked to US interests, raising concerns about cloud computing and digital services.
- Financial services could be affected: Damage to undersea cables could disrupt regional internet connectivity, financial transactions, e-commerce and cloud infrastructure.
- Global impact may be limited: Alan Mauldin, research director at TeleGeography, said the Strait of Hormuz carries less than 1% of global international bandwidth, suggesting the wider global impact could be limited, although regional disruption could be significant.
- Red Sea risks remain uncertain: The Red Sea is another potential vulnerability for undersea cables, but Iran has not publicly announced plans to target cables there.