The UK’s Financial Conduct Authority (FCA) has confirmed that regulatory protections for buy now pay later (BNPL) customers will come into force on 15 July 2026. After it becomes effective, BNPL arrangements will be brought within the scope of the Consumer Duty. This will help ensure that consumers receive clear, upfront information on their agreements, including payment dates, amounts due and the consequences of missing payments. Lenders will also be required to carry out proportionate affordability a ...

Core Insights - State Bank of India (SBI) has overtaken Tata Consultancy Services (TCS) to become the fourth most valuable listed company by market capitalization, with ICICI Bank climbing to the fifth spot, pushing TCS further down the rankings [1] - ICICI Bank's market cap reached ₹10.18 trillion, while TCS was valued at ₹10.02 trillion [1] - TCS shares fell nearly 5% to ₹2,766, marking the lowest level since December 2020, while ICICI Bank shares rose 1.5% to ₹1,428, the highest since January 16, 2023 [2] Market Dynamics - TCS is experiencing a decline due to panic selling in global tech stocks, driven by concerns over artificial intelligence (AI) impacting software companies and profitability [3] - The Nifty IT index dropped nearly 5%, down 11.7% year-to-date, reaching its lowest level since April 2025 [4] - Major IT firms like Wipro, Coforge, LTIMindtree, and TCS have seen significant declines in their stock prices, with Wipro leading the fall at 16.8% [4] Financial Performance - TCS reported a 13.9% decline in net profit for Q3FY26, amounting to ₹10,657 crore, down from ₹12,380 crore in the previous year [6] - The profit decline was attributed to restructuring expenses, one-time charges from changes in labor codes, and a provision of ₹1,010 crore for a legal claim [6] - Despite the profit miss, TCS's revenue performance exceeded Bloomberg estimates [6] Industry Outlook - Analysts at Motilal Oswal are monitoring AI-native partnerships as a key driver for the next 12-14 months, expecting a pick-up in AI services deals by mid-2026 [4] - Global SaaS companies, including Salesforce, are facing heavy selling as markets anticipate faster AI-led disruptions to legacy models [5] - IT services firms remain critical for large-scale integration, governance, data modernization, and system orchestration despite the shift towards AI workspaces [5]

Market Overview - Indian equity markets opened on a weak note, with benchmark indices trading lower due to heavy selling pressure in IT stocks. The Sensex opened at 83,968.43, down 293.40 points or 0.35%, while the Nifty 50 opened at 25,906.70, down 86.80 points or 0.33% [1] IT Sector Performance - Technology stocks led the decline, with significant drops: Infosys down 4.72% to ₹1,402.40, Tech Mahindra down 4.24% to ₹1,565.10, Wipro down 4.23% to ₹220.10, TCS down 3.96% to ₹2,794.60, and HCL Technologies down 3.62% to ₹1,495.50. This decline was attributed to concerns over AI-driven disruption in the technology sector [2] Financial Sector Support - Financial stocks provided some support, with Shriram Finance rising 1.33% to ₹1,070.90, ICICI Bank gaining 1.27% to ₹1,424.00, State Bank of India up 1.19% to ₹1,197.00, Bharat Electronics Limited climbing 1.09% to ₹442.30, and Eicher Motors gaining 0.98% to ₹7,847.00 [3] Market Sentiment and Institutional Activity - Despite the weakness in IT stocks, the underlying liquidity remains supportive, with foreign institutional investors continuing as net buyers. They purchased equities worth ₹943 crore on February 11, marking their fourth consecutive session of net buying. In contrast, domestic institutional investors sold equities worth more than ₹125 crore [4][5] Technical Analysis - Analysts expressed caution regarding near-term market direction, identifying crucial support zones at 25,900/84,200 and immediate resistance areas at 26,000/84,500. The Nifty continues to hold its uptrend above key moving averages, with immediate resistance seen near 26,000, potentially extending towards a fresh all-time high of 26,373 [6]

Core Insights - The overhaul of the Consumer Price Index (CPI) reflects significant changes in spending patterns, with the weighting of volatile items like food reduced to approximately 36.8% from nearly 50% and new categories such as rural housing rentals and online shopping added [1][9] - The base year for the CPI has been updated from 2012 to 2024, which is expected to provide a more accurate representation of current economic conditions [1][9] - The median estimate from economists suggests that the January inflation reading could rise to about 2.77%, compared to 1.33% in December based on the previous CPI series [2][10] Monetary Policy Implications - The revised CPI is anticipated to enhance the effectiveness of the Reserve Bank of India's (RBI) monetary policy actions, potentially minimizing past policy errors associated with the older series [8][10] - The weight of core inflation, which excludes food and fuel, will increase to nearly 58% from 47.3%, making it more responsive to monetary policy [10] - Financial market participants are closely monitoring these changes, as a higher inflation trajectory may lead to elevated borrowing costs, influencing bond yields and equity valuations [8][10] Economic Context - The new CPI series is expected to better reflect India's economic reality, particularly as consumer spending has rapidly expanded, with rising incomes leading to decreased spending on food and increased spending on services and housing [9][10] - The government plans to publish GDP data based on the new consumer spending patterns, which may indicate a significant upward revision in the size of the economy, potentially positioning India to surpass Japan as the world's fourth-largest economy [11][12] - The CPI overhaul will replace outdated items in the index with more relevant categories, including airfares and e-commerce sales, while excluding free food items from government welfare programs [12][13]

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - Digital skills are increasingly important in the labor market, with individuals possessing advanced digital skills earning, on average, 18.9 percent higher wages than those without such skills [2][12] - The wage premium for high digital skills varies significantly across regions, with Central Asia showing a premium of 47.7 percent, followed by Eastern Europe at 26.7 percent, and the South Caucasus at 23.5 percent [12] - Approximately 43.7 percent of individuals in the Europe and Central Asia region report a complete absence of digital skills, indicating a significant gap in digital competencies [11][31] Summary by Sections Introduction - Human capital, including digital skills, is crucial for productivity and earning capacity, influencing economic growth and poverty reduction [7][8] - The paper emphasizes the role of digital skills in reshaping employment prospects and economic development [8] Literature Review - Previous studies indicate a strong correlation between education and earnings, with a 10 percent increase in earnings for each additional year of schooling [15] - Digital skills are identified as a key form of human capital, with significant impacts on labor market outcomes [16][17] Empirical Strategy - The study employs a modified Mincerian equation to analyze the impact of digital skills on wages, focusing on individual-level wage regression [24][25] Data - The analysis utilizes data from the Life in Transition Survey, covering 30 countries in Europe and Central Asia, with a focus on socio-economic conditions and digital skills [27][28] Results - The findings reveal that education level is the most significant determinant of digital skill acquisition, with a university degree increasing the likelihood of high digital skills by 32.4 percentage points [58] - Individuals from low-income households are significantly less likely to acquire high digital skills, with a reduction of 17.6 percentage points in probability [58] - Gender and urban residency also influence digital skill acquisition, with men and urban residents more likely to possess high digital skills [64][66]

🚨BREAKING: CITI REPORTEDLY TOKENIZES BILL OF EXCHANGE ON SOLANAAccording to @solana, banking giant @Citi has represented a bill of exchange as a token on-chain and executed its entire lifecycle, from issuance to settlement on the Solana blockchain.This marks a major milestone for institutional adoption: one of the world's largest banks running real trade finance instruments end-to-end on a public blockchain.Citi has been building aggressively in tokenization through its CIDAP platform, which supports both p ...

Many investors have likely considered reducing their exposure to U.S. stocks over the past year. That "ABUSA" (Anywhere But USA) trade is supported by four core arguments. First, the S&P 500 is still hovering near its record highs, looks historically expensive at 30 times earnings, and trades at a premium to most other global markets. Second, the S&P 500's gains were driven by a handful of mega-cap tech stocks -- including Nvidia, Microsoft, and Apple -- instead of a balanced mix of sectors. If those Magn ...

Group 1: Financial Performance - Sony Group Corporation reported Q3 FY2025 revenue of ¥3.71 trillion ($23.68 billion), reflecting a 1% year-over-year growth and surpassing the expected ¥3.69 trillion [1] - Operating profit increased by 22% year-over-year to ¥515 billion ($3.28 billion), exceeding analyst consensus estimates of approximately ¥469 billion [2] - The company raised its FY2025 operating profit forecast by 8% to ¥1.54 trillion, supported by sustained profitability in entertainment and semiconductor businesses [3] Group 2: Strategic Initiatives - Sony Music Group and Singapore's sovereign wealth fund GIC Pte Ltd established a joint venture to acquire and manage high-quality music catalog assets, with an expected investment of $2 billion to $3 billion [4] - Under the agreement, GIC will provide long-term capital and investment expertise, while Sony Music will contribute operational capabilities and global distribution infrastructure [5] Group 3: Business Segments - Sony Group Corporation operates across various segments including Electronics Products & Solutions, Game & Network Services, Music, Pictures, and Imaging & Sensing Solutions [6]

Market Overview - The U.S. stock market showed mixed performance with the Dow Jones Industrial Average (DJIA) up around 0.4% but later down 0.2%, reflecting a volatile trading session influenced by economic data and sector concerns [2][3] - The S&P 500 (SPX) and Nasdaq Composite (IXIC) faced challenges, with the SPX down 0.1% and IXIC down 0.4%, indicating investor caution particularly in high-growth technology stocks [3] Economic Data - The January jobs report revealed that U.S. employers added 130,000 jobs, surpassing expectations of 75,000, and the unemployment rate improved to 4.3%, alleviating some economic slowdown concerns [4] - The strong jobs data raised worries that the Federal Reserve may keep interest rates higher for longer, potentially impacting stock prices [4] Corporate Earnings Highlights - Shopify (SHOP) reported a strong Q4 profit of $743 million, with a 31% revenue increase year-over-year, and announced a $2 billion share repurchase program [6] - Teradata (TDC) shares surged 35% following a strong Q4 performance and positive outlook [6] - Cloudflare (NET) saw an 11% increase in shares after reporting strong Q4 results [6] - Unity Software (U) experienced a significant drop of 32% due to a weak Q1 outlook despite a Q4 beat [6] - Mattel (MAT) shares plunged 27% after missing Q4 earnings estimates [6] - Zillow Group (Z) fell 14% due to below-consensus guidance for adjusted EBITDA [6] Upcoming Earnings and Corporate Developments - Upcoming earnings reports include Alibaba (BABA) on February 18, with a focus on cloud revenue and AI monetization [7] - Other companies with recent or upcoming earnings include Coca-Cola (KO), Cisco Systems (CSCO), McDonald's (MCD), and T-Mobile US (TMUS) [7] Sector-Specific Developments - The influence of Artificial Intelligence (AI) is shaping market dynamics, with financial firms facing pressure after the launch of an AI-driven tax planning tool by Altruist, leading to declines in shares of companies like LPL Financial (LPLA) and Charles Schwab (SCHW) [12] - Major tech companies such as Amazon (AMZN), Meta (META), and Alphabet (GOOGL) experienced declines due to concerns over high-value AI stocks and infrastructure spending [12] - Baker Hughes (BKR) announced a significant order for gas turbines, indicating growing demand for energy solutions in the AI and digital sectors [12] - Exxon Mobil (XOM) climbed 2.2%, and Smurfit Westrock (SMFT) jumped nearly 11% after providing encouraging forecasts, reflecting strength in the energy and raw materials sectors [12]

Core Insights - The banking industry is facing a significant challenge as younger consumers, particularly Gen Z and millennials, show a strong preference for crypto over traditional financial institutions [2][3][6] - A study indicates that Gen Z and millennials are nearly five times more trusting of crypto compared to baby boomers, with 20% of Gen Z investors exclusively holding crypto assets [3][6] - The shift in trust is attributed to a generational expectation for transparency and real-time information, contrasting with the traditional banking model that is perceived as outdated [5][7] Generational Perspectives - Gen Z and millennials have developed a distrust towards traditional financial institutions, with only 26% of them expressing high trust compared to 74% of baby boomers [3][6] - The younger generation views the digital economy as their own stock market, indicating a fundamental shift in how financial assets are perceived and valued [5][6] - Institutional failures have led to a behavioral shift where younger investors are more inclined to explore crypto as an alternative to traditional investment channels [6][9] Implications for Banks - The findings serve as a wake-up call for banks, emphasizing that trust must be actively demonstrated rather than simply declared [7] - The current crisis in the banking sector is exacerbated by their inability to connect with younger consumers who prioritize transparency and competitive returns [2][6] - As the financial landscape evolves, banks must adapt to the changing expectations of a generation that has grown up with technology and open-source principles [5][6]