Bank Deposits Jump ₹11 Lakh Crore To Record ₹269.4 Lakh Crore
- • Bank deposits surged ₹11 lakh crore in six weeks to a record ₹269.4 lakh crore, driven by more than $40 billion in forex inflows through the RBI’s concessional FCNR(B) swap window.
- • The scheme, launched in June, with the RBI bearing the full hedging costs, reversed a ₹3.87 lakh crore decline in bank deposits earlier in the financial year.
- • Central Bank of India mobilised $250 million under the window, exceeding its $100 million July target, and aims to reach $400 million by September.
- • The surge in deposits reflects the impact of dollar inflows through the RBI’s FCNR(B) swap facility, which has provided banks with a significant source of foreign-currency funding.
- • The RBI’s special FCNR(B) swap facility is available for fresh 3–5 year FCNR(B) deposits, helping banks manage the currency risk associated with these deposits.
U.S. Treasury Yields Fall Up To 9bps As Fed Rate-Hike Bets Fade
- • Signs of strengthening U.S. inflation have emerged, but bond traders are no longer fully pricing a Federal Reserve rate hike this year.
- • A U.S. Treasury rally pushed yields down by as much as 9 bps across maturities, while the 30-year Treasury yield fell 8 bps ahead of a new 30-year issue expected to price at the highest yield for that tenor since 2001.
- • Benchmark oil prices fell more than 3% on Thursday, reinforcing expectations that U.S. inflation may have peaked. Oil has been a major driver of Treasury moves since the late-February U.S. strike on Iran triggered a supply shock.
- • U.S. data showed July PPI slowed, while Wednesday’s CPI indicated inflation eased for a second consecutive month.
- • Short-dated interest-rate contracts rallied, lowering implied policy rates and signalling that traders are scaling back expectations for further Fed tightening.
U.S.-Iran Talks Stall Over Strait Of Hormuz; Brent Falls To $85.50
- • U.S.-Iran negotiations have stalled after terms of the June interim peace accord collapsed over control of the Strait of Hormuz.
- • Iran says it will fully reopen the Strait only after receiving war reparations and meeting six conditions: no threats or insults, a permanent end to hostilities against Iran and its allies, removal of the U.S. naval blockade, payment of war damages, lifting of sanctions and unfreezing of Iranian assets.
- • Trump has demanded compensation from Iran for what he describes as U.S. casualties, while claiming the U.S. Navy has full control of the waterway.
- • Iran says it is finalizing a new bilateral shipping channel with Oman, adding another layer to the dispute over control and navigation rights.
- • Brent crude fell 2.00% to $85.50/bbl, while WTI slipped 2.07% to below $80/bbl, as markets weighed the stalled negotiations against prospects for eventual reopening of the strategic waterway.
Iran Says All Ships Need Tehran’s Permission To Transit Strait Of Hormuz
- • Iran’s joint military command said any vessel seeking to transit the Strait of Hormuz must obtain permission from Tehran, warning that no ship is safe in the waterway without approval.
- • Iran said it fully controls the Strait of Hormuz and is monitoring U.S. military movements in the region, directly rejecting President Trump’s claims that the U.S. controls the strategic waterway.
- • Iranian state TV, citing the joint military command, called Trump’s assertion of control over the Strait “a lie.”
- • Iran’s armed forces said they are closely monitoring U.S. activity in the region as tensions remain elevated.
- • Iran has also entered the final stage of cleaning up an oil spill in the Strait of Hormuz, according to Fars News.
China’s CXMT Surpasses Tencent With $524 Billion Valuation Amid AI Chip Rally
- • CXMT Corp., China’s largest DRAM maker, surpassed Tencent in market value on Thursday as investors favoured AI-driven semiconductor stocks, according to Bloomberg.
- • CXMT’s valuation reached $524 billion, overtaking Tencent at around $510 billion, highlighting the market’s growing preference for AI hardware over internet giants.
- • Tencent’s Q2 profit missed expectations after its AI infrastructure spending surged 176% YoY, sending its Hong Kong-listed shares sharply lower.
- • CXMT made its debut on Shanghai’s STAR Market last month, posting a strong first-day gain and emerging as a bellwether for China’s push toward semiconductor self-sufficiency.
- • The rally underscores the growing investor focus on AI memory chips and semiconductor infrastructure as China accelerates domestic chip development.
India’s July Trade Deficit Widens To $31.98 Billion As Imports Surge
- • India’s July trade deficit widened to $31.98 billion, from $30.4 billion in June, exceeding the median economist estimate of $30.5 billion.
- • Exports rose 19.6% YoY to $44.24 billion, while imports increased 17.5% YoY to $76.22 billion, as import growth outpaced exports.
- • Strong imports point to resilient domestic demand ahead of the festival season, with vehicle sales at record levels, credit growth at a two-year high and GST receipts rising at double-digit rates.
- • Commerce Ministry Secretary Rajesh Agrawal said export growth was led by oil products, electronics, engineering goods, gems and jewellery, iron ore, meat, dairy, poultry and seafood.
- • Export performance was particularly strong across Spain, Australia, Kenya and ASEAN markets.
Iran Says U.S. Misjudged Strait Of Hormuz As IRGC Claims “Victory”
- • Iranian Foreign Minister Araghchi said the U.S. has repeatedly misjudged situations due to intelligence failures, citing the war against Iran as an example. He said Washington has now made an even larger miscalculation over the Strait of Hormuz.
- • IRGC senior adviser Mohammad Reza Naqdi told PBS that Washington’s two main war objectives — toppling Iran’s leadership and fracturing the country — have failed, claiming “victory is on Iran’s side.”
- • Naqdi said the U.S. appears “confused”, repeatedly announcing new objectives and turning the campaign into a “war without strategy.”
- • He said Iran has gained significant combat experience during more than five months of fighting and found U.S. forces weaker than expected.
- • Naqdi said Iran must establish deterrence, arguing that prolonging the conflict could exhaust the U.S. and force future attackers to reconsider the potential costs.
Japan Attracts $37 Billion In Foreign Semiconductor Investment
- • Foreign investment in Japan’s semiconductor sector has reached around ¥6 trillion ($37 billion), with additional investments from Sony and TSMC in image-sensor and chip manufacturing.
- • TSMC has committed ¥3 trillion to two wafer fabs in Japan. Its first facility began volume production of logic chips in 2024, while the second is under construction.
- • Micron began an expansion in Hiroshima last month, with plans to invest ¥1.5 trillion to produce advanced memory chips for AI data centres.
- • Tower Semiconductor said in July it will invest ¥600 billion to mass-produce optical-communication chips for data centres.
- • The investments highlight Japan’s growing role in the global semiconductor and AI infrastructure supply chain, with demand for advanced memory, logic and optical chips driving new capacity.
Parliament Monsoon Session Ends After Lok Sabha Works Just 16% Of Scheduled Time
- • The Lok Sabha and Rajya Sabha were adjourned sine die on Thursday, ending the 25-day Monsoon Session, which was repeatedly disrupted over demands for accountability for police action against student protesters.
- • The Opposition, led by Rahul Gandhi, demanded Home Minister Amit Shah’s resignation over the alleged July 20 pellet-gun crackdown at Jantar Mantar.
- • Shah offered a 24-hour debate on the issue, but the Opposition rejected the proposal as disruptions continued.
- • According to PRS Legislative Research, the Lok Sabha functioned for just 16% of its scheduled time, while the Rajya Sabha functioned for 31%.
- • Both Houses were ultimately adjourned amid continued Opposition protests over the July 20 police crackdown.
L&T Wins ₹10,000–15,000 Cr Order For India’s Largest Nvidia B300 AI Factory
- • Larsen & Toubro (L&T) has secured a mega order to build India’s largest Nvidia B300 AI Factory at its Chennai data-centre campus for U.S.-based Together AI.
- • The project is valued at approximately ₹10,000–15,000 crore and will deploy 10,000 Nvidia B300 GPUs for Together AI’s cloud platform.
- • The order was secured through L&T subsidiary Vyoma.AI, marking L&T’s entry into the AI Factory business.
- • L&T CMD S.N. Subrahmanyan described the project as a milestone in the company’s “Gigawatt AI Infrastructure Mission” to establish India as a global AI hub.
- • The project strengthens L&T’s exposure to India’s rapidly expanding AI infrastructure, data-centre and high-performance computing ecosystem.
Bitcoin Miner Fees Fall To 0.69% Of Revenue, Near 10-Year Low
- • Bitcoin miners earned just 0.69% of total revenue from transaction fees on August 11, according to Glassnode co-founder Rafael Schultze-Kraft.
- • Fee revenue has remained below 1% for almost a year. The last time the share was this low, Bitcoin traded below $400.
- • Miner income is now funded almost entirely by the 3.125 BTC block subsidy, increasing reliance on block rewards as transaction-fee revenue remains weak.
- • Estimated average mining cost is around $78,254 per BTC, while Bitcoin trades near $64,100, putting significant pressure on miner margins.
- • Bitcoin hashrate has fallen 33% from its October 2025 peak, declining from 1.3 ZH/s to 898 EH/s, as miners also face pressure from AI/HPC migration.
- • The trend highlights growing pressure on Bitcoin’s security budget, with weak fee revenue and lower mining profitability increasing reliance on block subsidies.
Japan PM Takaichi Backs Earlier BOJ Rate Hike; USD/JPY Falls To 159.36
- • Japanese Prime Minister Takaichi reportedly supports the Bank of Japan (BOJ) raising rates sooner, with the next hike potentially coming in September or October.
- • The shift reflects concerns that a weaker yen is pushing up prices and the government's desire to reinforce the recent U.S.-Japan coordinated FX intervention.
- • Japan and the BOJ are reportedly aligning on the need for near-term rate hikes, although the Prime Minister's Office stressed that monetary policy decisions, including rate changes, remain the BOJ's responsibility.
- • The government called for close coordination to support progress toward the 2% inflation target.
- • USD/JPY fell nearly 30 pips to 159.36 intraday after reports that the BOJ could raise rates as early as September or October.
USS Abraham Lincoln Faces Mental-Health Crisis As Deployment Extended
- • Multiple sailors aboard the USS Abraham Lincoln have reportedly attempted to jump overboard amid what Military Times described as a mental-health crisis reaching a breaking point.
- • Around 5,000 sailors and Marines remain deployed on a mission that began November 21 supporting U.S. actions in the Middle East against Iran.
- • The deployment was originally scheduled to end in May but has been extended, with no return date announced, raising concerns among families over fatigue, safety and mental health.
- • At a recent online meeting, families raised concerns about the prolonged deployment. The acting Navy secretary said another team would relieve the Lincoln but provided no timeline, citing operational security.
- • Sen. Richard Blumenthal has requested details on conditions aboard the ship and the reasons behind the deployment extension.
Iran Says Strait Of Hormuz Remains Closed; Pakistan Seeks Ceasefire Extension
- • Iran’s Persian Gulf Strait Authority said U.S. claims that the Strait of Hormuz has reopened do not change the facts, insisting the waterway remains blocked.
- • The authority said the Strait will not reopen unless the U.S. accepts Iran’s proposed conditions, directly contradicting President Trump’s claim that the U.S. has control over the waterway.
- • Iran’s Foreign Ministry spokesman Baghaei said oil pollution was recently detected along the coast of Qeshm Island, with a preliminary investigation indicating a possible foreign bulk carrier as the source.
- • Baghaei urged all parties benefiting from Strait of Hormuz shipping to assume responsibility and help remediate environmental damage affecting coastal areas and parts of the sea surface.
- • Pakistan is actively mediating to extend the 60-day U.S.-Iran ceasefire, according to Al Arabiya sources, with mediators seeking additional time to resolve remaining differences between Tehran and Washington.
Bank of America To Buy Up To 49.9% Of Jio Credit For $1.9 Billion
- • Bank of America (BofA) agreed to acquire up to 49.9% of Jio Credit, the NBFC subsidiary of Jio Financial Services, for approximately $1.9 billion.
- • BofA will initially acquire a 26.5% stake through a share allotment, with warrants allowing it to increase ownership to 49.9%.
- • The proposed joint venture will have equal board representation from BofA and Jio Financial Services.
- • The deal combines BofA’s global financial expertise with Jio Financial Services’ digital lending platform, making it one of the largest foreign investments in Indian financial services.
- • The transaction follows other major foreign investments in Indian finance, including MUFG’s investment in Shriram Finance and Emirates NBD’s stake in RBL Bank.
U.S.-Iran 14-Point MoU Under Strain As 60-Day Ceasefire Deadline Looms
- • The U.S. and Iran signed a 14-point memorandum of understanding on June 17, establishing a ceasefire and a 60-day window to negotiate a permanent end to hostilities.
- • The MoU called for an end to hostile acts and sought to reopen the Strait of Hormuz to commercial shipping, but fighting has resumed and both sides accuse each other of violating the agreement.
- • Article 5, covering the Strait of Hormuz, guarantees commercial freedom of passage but remains disputed. Tehran says it implies U.S. recognition of Iranian authority over the waterway and that Iran agreed to only two months of fee-free transit. Washington says Iran must ensure safe passage and refrain from coercive restrictions or taxation.
- • Article 10 provides for U.S. waivers allowing Iran to export crude, petroleum products and related services, alongside access to international banking, insurance and shipping support.
- • Article 11 commits the U.S. to making frozen funds and restricted assets fully available, with implementation mechanisms to be negotiated.
- • With no direct diplomatic talks and limited near-term prospects for a final settlement, the status of the MoU after the 60-day deadline remains uncertain.
Iran Says No Ceasefire Extension Talks With U.S.; Peace Process Stalls
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Trump Says U.S. Has “Total Control” Of Strait Of Hormuz
- • President Donald Trump said the U.S. has “total control” over the Strait of Hormuz and suggested Washington may keep that control.
- • Trump described the U.S. naval blockade as a “wall of steel”, claiming Iran has no ability to challenge it.
- • Trump said Iran has no navy or air force, while claiming its remaining soldiers are unpaid and the IRGC has been “decimated.”
- • He described Iran’s leadership as uncertain and claimed the country has “no money,” with 300% inflation and worsening economic conditions.
- • Trump said Iran is “all talk and no action” and claimed it is no longer the “Bully of the Middle East.”
Govt Plans OFS In Hindustan Zinc, Hindustan Copper, Mazagon Dock & IRCTC
- • The government plans to sell approximately 1.5% of Hindustan Zinc and 5% each in Hindustan Copper, Mazagon Dock Shipbuilders and IRCTC, according to Moneycontrol.
- • The Centre completed a 6.5% LIC OFS last week at ₹382 per share, raising roughly ₹31,000 crore and meeting SEBI's public shareholding requirement a year ahead of schedule.
- • The government has raised more than ₹61,600 crore in FY27 through disinvestment and asset monetisation.
- • There has been no official Finance Ministry announcement yet regarding the next round of stake sales.
- • The proposed transactions would represent the government's latest planned OFS transactions in four public sector companies during the current financial year.
EM Corporate Bond Premium Over U.S. Debt Hits Lowest Since January
- • Average borrowing costs for emerging-market corporates have fallen to their lowest level relative to U.S. corporate borrowers since January, as global bond investors diversify into higher-yielding assets.
- • The yield premium of EM corporate debt over U.S. corporate debt has narrowed to its lowest level since January 26, highlighting strong relative performance.
- • Alan Shaw, co-head of emerging-market corporate debt at Ninety One, identified three key drivers: oil companies filling Middle East supply gaps, duration-related technical factors and fund flows into high-yield assets.
- • Shaw said the asset class remains underweight, despite strong year-to-date returns and attractive risk-adjusted returns.
- • The narrowing spread reflects growing investor demand for higher-yielding EM credit as global bond investors seek diversification and stronger returns.
SEBI To Review Retail Losses As CAS Triggers Options Volume Drop
- • SEBI Chairman said the Closing Auction Session (CAS) needs time to stabilise and promised a paper within 10 days addressing concerns over retail investor losses.
- • Retail day traders staged a “No Trade Day” boycott on Wednesday, protesting against CAS, the Securities Transaction Tax (STT) and the pace of regulatory changes.
- • Options volumes have dropped sharply since CAS was introduced on August 3, with the new system triggering sharp end-of-day price swings.
- • Bernstein warned that index-options activity could face a near-term drag from the new closing-auction system, according to Reuters.
- • The developments add pressure on SEBI to address concerns around CAS-related volatility, retail losses and the impact on derivatives trading.
