Robinhood Markets Inc (NASDAQ: HOOD) has pushed higher in recent sessions following news that it will replace Caesars Entertainment on the benchmark S&P 500 index on September 22^nd.

Investors are cheering HOOD shares primarily because index inclusion triggers automatic buying from passive funds – resulting in a notable increase in demand that often leads to stock price gains.

Evidently, index inclusion marks a major milestone for the retail brokerage that once symbolized pandemic-era trading mania.

Still, investors are recommended treading with caution on Robinhood stock for several reasons. A few of them are discussed below.

Robinhood stock is already priced to perfection

HOOD shares https://invezz.com/reviews/robinhood/ remain unattractive despite index inclusion mostly because of valuation concerns. The fintech stock is currently going for a forward price-to-earnings (P/E) ratio of about 66 – which is well above the industry average.

In fact, it even trumps the multiple on some of the top AI stocks, including Nvidia, that’s going for 41 only at the time of writing. This suggests Robinhood shares are priced to near-perfection in the second half of 2025. 

Its premium valuation reflects aggressive assumptions about future growth, margin expansion, and crypto resurgence.

While index inclusion often proves a meaningful catalyst for a stock – investors should note that HOOD shares are already up some 150% versus their April low, indicating much of the optimism is already baked into them at current levels.

Passive fund inflows from S&P 500 inclusion may offer short-term support, but they don’t change the underlying math. At current levels, Robinhood leaves little room for error – and even less for upside surprise.

Why else are HOOD shares not worth owning

Investors should practice caution in loading up on Robinhood shares at current levels also because the financial technology company’s business model remains vulnerable to regulatory scrutiny and product concentration.

Its recent lawsuit against Nevada and New Jersey regulators over event contracts underscores ongoing friction with state authorities.

Meanwhile, crypto trading, despite expansion and rapid growth, still makes up only one-fifth of HOOD’s overall business. Meanwhile, its options trading business faces regulatory headwinds and cyclical risk as well.

Unlike diversified brokerages, Robinhood’s reliance on a narrow set of products and a retail-heavy user base makes it susceptible to sudden shifts in sentiment or policy. Inclusion in the S&P 500 doesn’t insulate it from these structural fragilities.

Moreover, the financial services industry is broadly known for healthy dividend yields, but HOOD shares lack that appeal in the second half of this year as well.

Wall Street’s take on Robinhood shares

Investors should also note that Wall Street firms no longer see significant further upside in HOOD stock either.

At the time of writing, the consensus rating on Robinhood shares remain at “moderate buy”, but the mean target of about $115, according to Barchart, indicates potential upside of only 6.0% from here.

In short, while passive fund flows following S&P 500 inclusion is often a tailwind – long-term investors should be wary of chasing the momentum.

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A political earthquake has rocked Japan to start the new trading week, as Prime Minister Shigeru Ishiba’s shock announcement that he will step down sent a jolt through currency and equity markets.

This dramatic development is unfolding against a tense global backdrop, where a surprisingly weak US jobs report has intensified speculation that the Federal Reserve is on the verge of a major policy pivot, leaving investors to navigate a landscape of profound and competing uncertainties.

The Ishiba effect: a plunging yen, a soaring Nikkei

The market reaction to Ishiba’s resignation was immediate and severe. The Japanese yen, a traditional safe haven, fell as much as 0.7 percent against the dollar as a new wave of political uncertainty washed over the nation.

But in the paradoxical world of Japanese markets, the currency’s pain was the stock market’s gain.

The weaker yen provided a powerful tailwind for the country’s export-heavy companies, sending the Nikkei 225 index soaring.

While the resignation ends a tenure that was marred by bruising election results, it leaves Japan’s fiscal direction in a state of limbo.

“Ishiba’s step-down can be seen as a sign that the party is ready to move on to the next leader, who will bring stability for the longer term,” said Anna Wu, a cross-asset strategist at VanEck.

So while in the immediate term yen and bonds felt pressure, equities are seeing more hope than uncertainty.

The lingering shadow of the Fed

While Japan grapples with its own domestic drama, the entire region is still operating in the long shadow of Friday’s US jobs report.

The weaker-than-expected payrolls number sent a powerful signal that the American labor market is rapidly cooling, a development that caused the dollar to fall and Treasuries to rally as bets on a Federal Reserve interest-rate cut intensified.

That speculation is now reaching a fever pitch. Strategists at Commonwealth Bank of Australia noted that the market’s focus on the labor market could lead to a dramatic repricing of expectations.

“Given the focus on the labor market in FOMC chair Powell’s recent speech, market participants may increase pricing of a 50 basis point cut to the Funds rate next week,” they wrote in a note.

A region of divergence

This potent mix of Japanese political turmoil and American economic weakness is creating a deeply divided picture across the rest of Asia. Australian stocks fell in early trading, tracking the negative close on Wall Street from Friday.

In contrast, shares in mainland China and Hong Kong climbed, as investors looked ahead to crucial trade data and a report that Beijing is considering allowing Russian energy firms to resume issuing yuan-denominated bonds.

A positive start for Dalal Street

In a sign of resilient domestic sentiment, the Indian market is poised to buck the more cautious trend and open higher on Monday.

The trends on the Gift Nifty indicated a positive start, with the index trading around the 24,911 level, a premium of nearly 63 points.

This comes after the market ended the previous week on a flat note amid profit booking, with the Sensex and Nifty holding their ground but failing to make significant headway.

Now, as a new and uncertain week begins, the bulls on Dalal Street appear ready to make another charge.

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A political earthquake has rocked Japan, as Prime Minister Shigeru Ishiba, battered by a series of humiliating election setbacks and facing an internal party rebellion, announced he will step down.

The stunning resignation ends a brief and troubled tenure, plunging the world’s fourth-largest economy into a period of deep uncertainty and setting in motion a fierce and unpredictable race to succeed him.

The announcement, delivered at a press conference in Tokyo on Sunday, was a reluctant admission of defeat. “While I feel there are still things I wish to do as premier, I have made the difficult decision to step down,” Ishiba said.

He acknowledged that if he had continued to cling to power, it “could have created an irreversible division within the party, which is certainly not my intention.”

A market on edge, a legacy in question

The market reaction was immediate and severe. The Japanese yen, a traditional safe haven, slid 0.7 percent against the dollar in early trading as a new wave of political instability washed over the nation.

While the weaker currency provided a tailwind for Japanese stocks, the country’s fragile bond market came under intense pressure, with yields on long-term debt, which had already hit multi-decade highs last week, seen as particularly vulnerable.

The core of the market’s anxiety is the fear that Ishiba’s departure will spell the end of fiscal discipline.

“Prime Minister Ishiba was known for his strict stance on fiscal discipline,” said Katsutoshi Inadome, a senior strategist at Sumitomo Mitsui Trust Asset Management.

“While it remains unclear who will become the next prime minister, it’s difficult to envision anyone with a fiscal discipline stance better than or even equivalent to his.”

Ishiba attempted to frame his exit as a matter of timing, stating that having seen the contentious U.S. trade negotiations through, he felt it was “the right time to stand down and give way to my successor.”

The signing of the executive order by President Donald Trump last week, which finalized the deal, does provide Ishiba with a tangible, if modest, legacy to walk away with after a turbulent year at the helm.

The succession scramble: a battle for the soul of the party

Now, a frantic and high-stakes scramble to replace him has begun. The ruling Liberal Democratic Party (LDP) will now hold a leadership race, a contest that will be a battle for the soul of the party and the future direction of the country.
Potential candidates are already jockeying for position.

They include Sanae Takaichi, a former internal affairs minister from the party’s right wing who favors more stimulus and a cautious approach to interest rate hikes.

Her potential victory is the market’s nightmare scenario.

“If Ms. Takaichi is appointed, bond selling could intensify due to the risk of a credit rating downgrade,” warned Inadome. In that scenario, “we could see a triple dip: falling bond prices, a weaker yen, and declining stock prices.”

Other potential contenders include Shinjiro Koizumi, the son of a popular former prime minister who could give the LDP a fresher, more appealing face, and a host of other party veterans.

While the LDP’s dominance in parliament has traditionally all but guaranteed that its leader will become prime minister, the party’s recent election losses have fractured the Diet, injecting a new and unpredictable element into the race.

The next leader will face a daunting array of challenges, from global trade headwinds to simmering resentment at home over the soaring cost of living, a challenge that proved too great for his predecessor to overcome.

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A day of high drama is unfolding across the Asia-Pacific, as a political earthquake in Tokyo sends shockwaves through the market, a darling of the Chinese stock market suffers a brutal sell-off, and fresh data reveals the punishing impact of US tariffs on the region’s largest economy.

This turmoil is set against a backdrop of major strategic investments, as global capital continues to flow into key sectors in both Japan and China.

Here’s your one-stop stand to catch up on all the headlines you may have missed.

Japanese Prime Minister Shigeru Ishiba to step down

In a stunning move, Japanese Prime Minister Shigeru Ishiba announced he will step down, setting in motion a fierce and uncertain leadership race.

The resignation follows a series of humiliating election results that stripped his ruling coalition of its majorities in parliament.

“Having seen the US trade negotiations through, I felt that now is the right time to stand down and give way to my successor,” Ishiba said at a press conference on Sunday.

The move sent the yen tumbling and Japanese stocks soaring on Monday as a new wave of political uncertainty gripped the nation.

Morgan Stanley raises $885 million Japan real estate fund

Morgan Stanley has raised a colossal 131 billion yen ($885 million) for a new Japan-focused real estate fund, crushing its initial target of 75 billion yen.

The successful fundraise, which attracted capital from Japan’s giant Government Pension Investment Fund as well as foreign sovereign wealth funds, is a powerful sign of growing investor interest in Japanese property.

The fund will seek to invest in the residential, office, and industrial sectors in Tokyo and other major domestic markets, capitalizing on rising property values and still-low financing costs.

Pop Mart shares tumble on demand concerns and profit-taking

Shares in the high-flying Chinese toy maker Pop Mart International Group Ltd. have tumbled, falling as much as 8.9 percent in Hong Kong.

The slide reflects growing concerns over product demand for the producer of the popular Labubu doll, following signs of weaker demand in the secondary market and negative feedback on the quality of new products.

The sell-off was compounded by profit-taking, as the stock was officially included in the Hang Seng Index and the Hang Seng China Enterprises Index on Monday, a classic “sell the news” event.

Alibaba co-leads $140 million funding round in robotics startup

Chinese e-commerce giant Alibaba Group Holding Ltd. has co-led a 1 billion yuan ($140 million) funding round in the robotics startup X Square Robot.

The move is part of Alibaba’s major pivot to cement its leadership in emerging technologies, with the company having already pledged to spend $53 billion on AI infrastructure over the next three years.

The investment in Shenzhen-based X Square Robot, which focuses on the algorithms that power robotics rather than just hardware, is a clear signal of Alibaba’s strategic priorities.

China’s August export growth slows to a six-month low

China’s export growth slowed to a six-month low in August, a sign that the temporary boost from Beijing’s tariff truce with the United States is beginning to fade.

Outbound shipments rose just 4.4 percent year-on-year, missing forecasts and marking a sharp deceleration from July’s 7.2 percent increase.

The data, which was weighed down by weaker shipments to the US, keeps the pressure on policymakers in Beijing to deliver further fiscal stimulus to support the world’s second-largest economy.

Japan’s Q1 GDP growth revised sharply higher

In a surprising bright spot, Japan’s economy expanded at a much stronger rate in the fiscal first quarter than previously thought.

The government on Monday revised its real GDP growth for the April-June quarter to a seasonally adjusted 2.2 percent annualized rate, more than double the preliminary estimate of 1.0 percent.

The upward revision was driven by healthier-than-expected consumer spending and a buildup in inventories, providing a dose of good news amid the country’s political turmoil.

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In a significant development for international finance and energy markets, Chinese rating agency CSCI Pengyuan has assigned a domestic triple-A rating to Gazprom, Russia’s state-controlled oil and gas conglomerate. 

This top-tier rating, announced on Friday, comes amid growing speculation and media reports suggesting that Beijing is actively preparing to grant major Russian energy firms renewed access to its domestic bond market, according to a Reuters report.

Gazprom, a pivotal player in the global energy landscape, has faced considerable challenges due to sanctions imposed by Western nations, including the US, which has blacklisted the company. 

The triple-A rating from a prominent Chinese agency like CSCI Pengyuan could offer a crucial lifeline, potentially enabling Gazprom to raise capital within China and mitigate some of the financial pressures stemming from Western restrictions.

Strategic implications and China’s role

This move underscores the deepening economic ties between China and Russia, particularly in the energy sector, as both nations seek to navigate a complex geopolitical environment. 

Access to China’s vast domestic bond market would provide Gazprom with a new avenue for financing, reducing its reliance on traditional Western financial institutions and markets. 

The implications of this development are far-reaching, potentially reshaping energy trade flows and investment patterns on a global scale.

CSCI Pengyuan said:

Gazprom’s rating reflects its strategic importance and legal ties to the Russian government.

The firm’s strong business profile, as a market leader in the global oil and gas industry and a key player in Russia’s energy market, underpins its credit profile, the statement added.

Days after Russia and China approved the Power of Siberia 2 pipeline, the “AAA” rating with a stable outlook was granted.

Gazprom announced during Russian President Vladimir Putin’s visit to China last week.

Panda bonds and Renminbi internationalisation

In a crucial development reported by the Financial Times on Sunday, citing informed sources, senior Chinese financial regulators recently conveyed their intent to support top Russian energy companies in their issuance of renminbi-denominated “panda bonds.” 

The move to back “panda bonds”—bonds issued by non-Chinese entities in mainland China and denominated in yuan—highlights China’s growing role as an alternative financial market for countries facing limited access to traditional Western capital markets. 

For Russian energy giants, this could provide a crucial new avenue for raising capital, diversifying their funding sources, and potentially reducing their reliance on the US dollar and euro. 

This development also underscores China’s broader ambition to internationalise its currency and establish the renminbi as a more prominent global reserve and trading currency. 

The support from Chinese regulators suggests a strategic alignment aimed at bolstering bilateral economic ties and navigating the complexities of the current geopolitical landscape.

In China, companies generally secure credit ratings prior to issuing bonds.

CSCI Pengyuan highlighted “high geopolitical risks” linked to Gazprom, which faced US sanctions after Russia’s 2022 invasion of Ukraine.

The rating agency reported that the company’s gas export revenue and volume decreased in 2023. This decline was attributed to the negative impact of sanctions and geopolitical disruptions on the company’s operations.

As the geopolitical landscape continues to evolve, operational uncertainties persist.

Last month, Zarubezhneft, a mid-scale upstream oil company wholly owned by the Russian Federation, was assigned an “AAA” credit rating by CSCI Pengyuan.

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A surprising and perhaps deceptive calm is gracing European markets at the start of a new trading week, with stocks poised for a positive open on Monday.

But this quiet optimism is a mere prelude to a day of high political drama, as the French government teeters on the brink of collapse, a high-stakes showdown that could inject a potent dose of instability into the heart of the Eurozone.

Despite the looming political storm, early indications point to a resilient start for equities. Data from IG suggests Germany’s DAX will open almost 0.5 percent higher, with France’s CAC 40 and Italy’s FTSE MIB both seen up 0.3 percent.

A high-stakes gamble in Paris

The entire region is now holding its breath for a parliamentary vote in France, where Prime Minister Francois Bayrou is widely expected to lose a confidence motion he himself called.

The high-stakes gamble was an attempt to break a bitter deadlock with rival political parties over a contentious package of 44 billion euros in budget cuts.

Bayrou’s goal was to bring France’s budget deficit down to 4.6 percent in 2026, a figure that is still well above the European Union’s official rules.

But with opposition parties fiercely objecting to both spending cuts and tax rises, his government has been paralyzed.

If, as expected, Bayrou is ousted on Monday, President Emmanuel Macron will be forced to name the country’s fifth prime minister in less than two years, a stunning level of political churn for one of Europe’s most powerful nations.

A global backdrop of turmoil and hope

This localized French drama is playing out against a complex and uncertain global backdrop.

Asia-Pacific markets traded mostly higher overnight, as investors continued to digest the aftershocks of Japanese Prime Minister Shigeru Ishiba’s resignation over the weekend.

In the United States, a different kind of anticipation is building. While US stock futures are little changed, the market is bracing for two critical inflation reports this week: the producer price index on Wednesday, followed by the all-important consumer price index on Thursday.

These reports will be the final, crucial pieces of the puzzle for the Federal Reserve ahead of its policy meeting later this month.

The inflation prints will land in a market already buzzing with hope for an interest rate cut, a sentiment fueled by a weaker-than-expected US jobs report on Friday.

For now, the prospect of easier monetary policy from the Fed is providing a powerful, if fragile, support for equities, a dose of optimism in a world grappling with a fresh wave of political instability.

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Apple will host its annual product showcase on Tuesday, September 9, unveiling the iPhone 17 lineup alongside new Apple Watches and AirPods Pro 3.

The launch is widely viewed as part of a three-year redesign cycle, culminating in Apple’s first foldable iPhone in 2026, according to Bloomberg’s Mark Gurman.

Investors and analysts are watching closely for features that could trigger a new upgrade cycle, particularly as consumers have been slower to replace their devices in recent years.

The iPhone continues to account for about half of Apple’s revenue, making the success of each generation crucial to the company’s financial outlook.

iPhone 17 lineup to include ultrathin “Air” model

At the centre of the event will be four new iPhone models: the iPhone 17, iPhone 17 Pro, iPhone 17 Pro Max, and a new ultrathin model dubbed the iPhone Air.

The Air is rumoured to be Apple’s slimmest phone ever, with a thickness of 5.5 mm and a 6.6-inch screen.

Positioned as a replacement for the iPhone Plus, it could challenge rivals such as Samsung’s Galaxy S25 Edge, which measures 5.8 mm.

Reports suggest the iPhone Air will be priced around $899, though some forecasts place it closer to $950.

Available in black, silver, and light gold, it may come with fewer camera options to keep costs down.

Analysts view the device as a step toward Apple’s long-anticipated foldable phone.

Meanwhile, the standard iPhone 17 is expected to receive a 6.3-inch display with a 120 Hz refresh rate and a 24-megapixel front camera.

Pricing is rumoured to start around $800. The Pro Max model could carry a price tag of $1,250, reflecting higher-end components.

New watches to feature Ultra refresh and SE update

Apple is also expected to unveil refreshed Apple Watches, including the Ultra 3, Series 11, and SE 3.

The Ultra 3 may see the most significant changes, with reports pointing to faster charging, 5G support, satellite connectivity, and a larger display.

The SE 3, which targets entry-level users, may receive only incremental updates, such as a larger screen or a plastic version.

Prices are expected to start at $250 for the SE 3, $400 for the Series 11, and $800 for the Ultra 3.

AirPods Pro 3 expected with sleeker design

After two years without an update, Apple is expected to debut the AirPods Pro 3.

Rumours suggest the new earbuds will feature a slimmer case, smaller earbuds, and touch-sensitive controls that replace the traditional pairing button.

Powered by a new H3 chip, they are expected to deliver improved active noise cancellation and adaptive audio.

The refresh comes at a time when competition in wireless audio is intensifying, with rivals such as Sony and Bose enhancing their noise cancellation technology.

Pricing strategy takes centre stage

Wall Street analysts believe the most important storyline at the event may not be the devices themselves but how Apple prices them.

With tariffs under President Donald Trump pushing up costs and component prices remaining high, Apple may look to adjust its strategy.

Morgan Stanley analysts led by Erik Woodring suggested Apple could eliminate lower storage tiers, such as the 128-gigabyte option for the iPhone Pro, effectively raising the entry price to the 256-gigabyte model at $1,099.

“What will matter most at next week’s iPhone launch event is pricing, a still under-appreciated growth tailwind,” Woodring wrote.

Loop Capital echoed the sentiment, saying modest price hikes could help Apple offset rising expenses.

However, analysts also warned that higher prices could deter buyers unless new features are compelling enough.

Tariffs loom over US pricing decisions

Market watchers say Apple’s pricing decisions are particularly sensitive this year due to tariffs.

Trump has floated the possibility of new duties on Chinese-made electronics, raising concerns about consumer costs.

“Normally, it’s not a good sign for a launch when price dominates the discussion, because that implies features aren’t as strong a differentiator,” said Runar Bjørhovde, research analyst at Canalys.

“But tariffs make this launch different. Apple’s opening price points will set the tone for the year ahead.”

Outlook for sales remains modest

Analyst forecasts suggest a cautious but steady sales outlook.

FactSet data shows Wall Street expects Apple to sell about 232 million iPhones in the fiscal year ending September 2026, up 2% from the prior year.

Sales revenue is projected to reach $220 billion, a 5% increase.

While Apple’s July earnings report pointed to resilient iPhone sales, analysts note that consumers are increasingly upgrading only when devices offer substantial new features.

Unlike rivals such as Samsung and Google, which have embedded artificial intelligence into their smartphones, Apple is expected to keep its AI initiative — Apple Intelligence — in the background at this event.

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Deepanshu Kaushik, a 28-year-old account executive, is trapped in a punishing EMI cycle.

With a monthly salary of ₹40,000, nearly half, about ₹18,000, vanishes on EMIs for personal loans and credit cards, leaving too little to cover rent, groceries, school fees, and medical needs for his wife and daughter.

Unexpected expenses push him to borrow more, deepening his debt. His shrinking budget and rising obligations leave him constantly anxious, unable to save or plan ahead.

Every month, the need to meet past commitments forces new compromises, keeping Deepanshu perpetually stuck and worried about the future.

India’s middle class is increasingly suffocated by a silent epidemic: easy credit has become a double-edged sword, pushing families into a worsening “EMI trap.”

Household debts have soared, defaults are mounting, and a string of newsworthy suicides highlights how financial distress has transformed into a quiet social crisis.

The debt spiral: Data speaks

India’s household debt has reached record heights, now sitting at approximately 48.6% of GDP as of March 2025, up sharply from 32% in 2019 and 41.9% just last year.

The per capita debt for individual borrowers is a staggering ₹4.8 lakh, representing a 23% increase in just two years.

This escalation is driven by a consumption-fueled lending boom; credit cards, small personal loans, and “Buy Now Pay Later” (BNPL) schemes have rapidly proliferated, enticing families with the promise of quick, frictionless borrowing.

The consequences are dire for the middle class.

As much as 33% of monthly salaries are being diverted to EMI repayments, squeezing budgets for essentials like food, healthcare, and children’s education.

Shockingly, 45% of middle-class families now spend over 40% of their income just servicing debt, a threshold widely recognized by financial experts as a warning sign for acute distress.

​Defaults and delinquencies: The growing crack

The surge in borrowing is accompanied by an alarming uptick in defaults and credit card delinquencies.

Loans overdue by more than 90 days spiked to 3.6% in March 2025, up from 3.3% last year, with the default rate among young and rural borrowers particularly high.

Delinquencies in credit card repayments have shot up to 7.6% as of June 2024, and the non-performing asset (NPA) ratio for credit cards rose by 28.4% within a year.

Personal loans under ₹10,000 are seeing the sharpest pains, with default rates jumping by 44% from late 2023 to mid-2024.

In Tier 3 towns and rural India, loan defaults touched a six-quarter high, and over-burdened borrowers with scant financial literacy are most vulnerable.

The human toll

Behind these staggering statistics are real tragedies. In Karnataka alone, at least 17 people died by suicide in the first three months of 2025 due to harassment by microfinance lenders.

Across the country, studies now attribute 19% of suicides to financial distress, with 90% of those victims holding debts.

Recent months have seen a grim litany of cases: a newly-married man in Andhra Pradesh died by suicide over a mere ₹2,000 instant loan, while a young manager in Jhansi ended his life under the pressure of EMI recovery targets.

Even mass family tragedies, suspected to stem from overwhelming loan obligations, are becoming more visible in national headlines.

The lending boom: A dangerous growth

The personal loan market is exploding from $8.34 billion in FY2024 to a projected $54 billion by FY2032, growing over 26.5% annually.

Non-banking finance companies (NBFCs) are aggressively expanding in small-ticket lending, sometimes to borrowers with little credit history, creating conditions ripe for over-borrowing and cascading defaults.

Pradeep Saini, a senior bank executive spoke with Invezz and explained how EMIs have revolutionized loan sales strategies.

“Monthly EMIs make it much easier for customers to say yes to loans as they see the affordability of a small monthly outgo, not the long-term cost,” he says.

According to Pradeep, banks now actively push EMI-based products because they simplify achieving loan disbursal targets.

The real advantage for banks, he reveals, lies in the higher total interest accumulated from long-term, small-ticket EMIs compared to bigger, shorter-tenure loans, making EMIs a win-win for sales targets and profitability.

Why the trap is so dangerous

For India’s middle class, aspirations increasingly ride on borrowed funds: from education to smartphones, cars to homes.

But no financial cushion exists if jobs are lost or income slips.

Households, squeezed by stagnant wages and persistent inflation, find easy credit too tempting to ignore, only to be choked by EMI commitments when “minimum due” becomes a mountain.

Digital lending apps and buy-now-pay-later services have exploded in popularity over the past few years, offering quick loans and easy credit with just a few taps. 

But for many borrowers, especially those new to credit, there’s little understanding of the risks involved and even less protection from reckless lending practices.

The Reserve Bank of India has started to step in, tightening rules around unsecured loans, while a few state governments are cracking down on coercive collection methods. 

Still, much of the responsibility rests with lenders to prevent borrowers from spiraling into debt, and with policymakers to ensure people are better informed and supported.

The middle class, long seen as the backbone of economic progress, now faces an uncomfortable reality. 

The promise of instant credit, without proper checks and guidance, risks turning a tool of empowerment into one of financial strain, where the road to opportunity might instead lead to uncertainty and stress.

​

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Rolls-Royce share price has surged this year and is hovering near its all-time high as demand for its engines continues rising. It rose to 1,090p on Monday, a few points below the year-to-date high of 1,110p. It has also jumped by 96% from its lowest level in April. 

From a burning platform to a cash printer

Rolls-Royce Holdings has transitioned from what its CEO called a “burning platform” into a cash printer, thanks to its strong revenue and demand growth across all industries, including civil aviation, defense, and power. 

The company has mostly benefited from the ongoing civil aviation boom that has made many airlines highly profitable. For example, United Airlines revenue rose to $57 billion last year from $50.5 billion in the previous year. 

Delta Air Line’s revenue also jumped to $61 billion, while in Europe, companies like IAG and Lufthansa are also thriving.

This growth has helped its business thrive as it makes most of its revenue and profits in the civil aviation. It generates this revenue from selling engines and entering into long-term service contracts with airlines.

The company has also benefited from the ongoing artificial intelligence (AI) boom that has led to more demand in data center energy. Many data center companies now use some of its power engines. 

Nuclear power tailwinds

Most importantly, the company’s nuclear power business is also thriving after it won a deal with the UK government to build small nuclear reactors. Just recently, Sweden said that it was considering building several small nuclear reactors with British technologies.

With its strong background in the nuclear space, there is a likelihood that this division would be worth billions of dollars. 

For example, Oklo, an American company building similar solutions, has achieved a market capitalization of $10 billion. NuScale, another top company in the industry, has a $9.2 billion. The two companies are yet to start making a profit. 

Rolls-Royce is now a giant money printer with its free cash flow rising to £1.5 billion in the year’s first half from £1.15 billion in the same period last year. 

Analysts anticipate that its free cash flow will continue growing in the coming years. It will get to £3.3 billion in the next financial year, followed by £3.9 billion and £4.4 billion in the next two years. 

If the trend continues, the company may beat these targets sooner than expected. For example, it recently beat its mid-term targets two years in advance. This FCF growth has helped it start buying back its stock and boosting its dividend.

Rolls-Royce share price technical analysis

The daily timeframe chart shows that the RR stock price has been in a strong bull run in the past few years. Recently, however, it has found a resistance level at 1,103p, a level it has failed to move above several times. 

The stock has formed a double-top pattern, while the MACD and the Relative Strength Index (RSI) have formed a bearish divergence. Therefore, RR stock price will likely have a pullback in the coming weeks. If this happens, the next point to watch will be at 1,000p. 

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Oil prices rose 2% on Monday after the Organization of the Petroleum Exporting Countries and allies announced a smaller hike in production for October. 

Concerns of supply disruptions from possible sanctions against Russian oil exports also buoyed sentiments in the market. 

At the time of writing, the price of West Texas Intermediate crude oil on the New York Mercantile Exchange was at $63.13 per barrel, up 2% from the previous close.

Brent crude oil on the Intercontinental Exchange was also up 2% at $66.80 per barrel. 

Oil benchmarks dropped over 2% on Friday and more than 3% last week, driven by a weak US jobs report that negatively impacted the outlook for energy demand.

OPEC’s decision

The eight members of the OPEC+ alliance — Saudi Arabia, Russia, Iraq, UAE, Kuwait, Kazakhstan, Algeria, and Oman — met virtually on Sunday to agree on an output hike for October. 

The market chatter was for a much larger increase in oil production by the eight members. 

OPEC+ is set to increase oil production by 137,000 barrels per day (bpd) starting in October.

This comes after consistent production increases since April, following years of cuts designed to bolster the oil market. 

The latest increase, however, is significantly lower than previous adjustments, which saw increases of approximately 555,000 bpd in September and August, and 411,000 bpd in July and June.

This decision is made despite the anticipated oil surplus in the Northern Hemisphere during the winter months.

“OPEC+ agreed to increase output by 137k b/d in October, much lower than the hikes implemented over the previous months,” Warren Patterson, head of commodities strategy at ING Group, said in a note. 

The slowdown in incremental volume from the group should help trim the expected market surplus.

Analysts predict a minimal impact from this increase, as some members have been overproducing, meaning the higher output level would likely incorporate barrels already present in the market.

Fresh sanctions

Reports suggest that the European Union was planning fresh sanctions against Russian banks and energy companies as part of its latest measures to end the war in Ukraine. 

Meanwhile, US President Donald Trump indicated on Sunday his readiness to initiate a second phase of sanctions against Russia. 

This statement marks his strongest suggestion yet that he is close to increasing sanctions on Moscow or its oil importers, due to the conflict in Ukraine.

On Sunday, Russia carried out its most extensive air assault of the Ukraine war, resulting in the main government building in central Kyiv catching fire and claiming the lives of at least four individuals, according to Ukrainian officials.

Additionally, on Sunday, Trump announced that European leaders would visit the United States on Monday and Tuesday to address the conflict.

Goldman Sachs anticipates a slightly larger oil surplus in 2026, driven by increased supply from the Americas that is expected to offset a downgraded supply from Russia and stronger global demand. 

This projection, shared in a weekend note, leaves their 2025 Brent/WTI price forecast unchanged, while the 2026 average is projected at $56/$52 a barrel.

Trade data

China’s crude oil imports rebounded in August, according to trade data released this morning. 

Crude oil flows increased by 4.9% month-on-month and 0.8% year-on-year, reaching 49.5 million metric tons (approximately 11.65 million barrels per day). 

This rise is attributed to continued high operating rates at both state-owned and independent refineries.

Cumulative imports for the year to date have increased by 2.5% year-over-year.

“Imports have been stronger as the maintenance season is finally over and refiners took even more cargoes in August,” Patterson said.

According to Baker Hughes data, the number of active oil rigs in the US increased by two last week, reaching a total of 414.

This marks the second consecutive week of expansion for the US oil rig count.

Rig activity increased despite crude prices heading for a weekly fall amid speculation about a further output increase by several oil-producing nations.

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