Donald Trump suggests resuming large-scale trade with Russia after the Ukraine war, but experts cite significant obstacles. Hundreds of foreign companies have exited Russia since the 2022 invasion, facing asset seizures and legal instability. Russia's focus on military production and stringent regulations further deter US firms, making a swift trade revival unlikely despite potential sanction relief.
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Economist S Mahendra Dev assumes the role of Chairman of the Economic Advisory Council to the Prime Minister (EAC-PM), filling the vacancy since November. The council has been reconstituted for two years, retaining full-time members and inducting new part-time members. Dev, a development economist, brings extensive experience from academia and the financial sector.
Maruti Suzuki reports that its production remains unaffected by China's rare earth magnet export restrictions, crucial for vehicle components. The company has applied for import permits and is engaging with the government to understand the new regulations' impact.
The RBI maintains its cautious stance on cryptocurrency, citing potential risks to financial stability and monetary policy, despite the Supreme Court's view against a ban. A government committee is currently reviewing the matter. The RBI has also introduced a new regulation-making framework emphasizing public consultation, impact analysis, and regular reviews to adapt to evolving conditions.
Asia's factory activity experienced a decline in May, impacted by weak demand from China and the lingering effects of US tariffs. Manufacturing operations in Japan and South Korea continued to contract, while concerns over potential US automobile tariffs created uncertainty. China's manufacturing sector also showed contraction, signaling a broader economic slowdown in the region.
PM Narendra Modi will inaugurate the Chenab Bridge on June 6. This bridge is the world's highest railway bridge. It connects the Kashmir Valley with India via rail. The bridge is a part of the Udhampur-Srinagar-Baramulla Rail Link project. The project faced engineering challenges due to terrain and seismic sensitivity. The Katra-Srinagar Vande Bharat train service will also launch.
Victoria's Secret has postponed its quarterly earnings release following a security breach that disrupted operations and forced its US website offline. The company detected the incident on May 24, initiating response protocols and engaging experts. Preliminary results show $1.35 billion in net sales, exceeding forecasts. The breach, potentially a ransomware attack, impacted in-store services and corporate systems, hindering financial reporting.
The Indian government has reduced the basic customs duty on crude edible oils to 10%, a move lauded by SEA and IVPA. This aims to support domestic refiners by discouraging refined palmolien imports. The decision widens the duty gap between crude and refined oils, potentially lowering domestic prices and benefiting consumers.
Airbus reports IndiGo and Air India are among its top three global customers with substantial aircraft backlogs. While facing delivery delays, Airbus sees supply chain stability returning, aiming to increase A320 production.
Indian manufacturers, Dixon Technologies and Florence Shoe Company, are rapidly expanding to capitalize on opportunities arising from global companies seeking alternatives to China, especially after Trump's tariffs. Dixon anticipates a $100 billion export potential in the US and EU, while Florence is increasing shoe production for major brands.
TotalEnergies will back Adani Green's expansion, despite previous reservations, as announced by CEO Patrick Pouyanne after meeting with Minister Piyush Goyal. TotalEnergies has already invested $5 billion in India and aims to expand its energy business, particularly through US exports.