The B-School Daily

The Lead Story

India’s WPI Falls Further into Deflation Territory, Stirring Global Market Reactions

–0.58%

The Development (What):

In India, wholesale inflation (WPI) deepened to -0.58% year-on-year in July, down from –0.13% in June, well below economists’ expectations of a –0.30% drop. India faces a rare divergence: domestic wholesale deflation alongside global inflationary currents. This could enable the RBI to ease monetary policy sooner, giving industry a growth boost. At the same time, global cost pressures, particularly from the U.S. and energy markets, mean businesses must stay alert to imported inflation risks. Businesses sensitive to borrowing rates, commodity costs, and supply timelines must stay nimble as central banks calibrate policy in response to mixed signals.

The Business Implication (Why it Matters):

–0.58%

India’s WPI Inflation at –0.58%: The sharp deflation, driven mainly by food and fuel (-2.15% and -2.43% YoY), relieves cost pressures for manufacturers and FMCG firms—offering margin flexibility or price pass-through options.
0.9%

U.S. Producer Prices Surge 0.9% MoM: Suggests inflation is entering supply chains more broadly. While major rate cuts are now unlikely, a modest 25bp Fed cut remains on the table. Firms relying on global supply chains must monitor possible inflation pass-through.
1.55%

Headline Retail Inflation: India’s consumer price inflation dropped to 1.55% YoY in July 2025, down from 2.10% in June, the lowest level in over eight years. This fall was driven primarily by significant declines in food prices, including a 20.7% YoY drop in vegetables, and a 13.8% decline in pulses. Read More

Market & Corporate Pulse

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The Bigger Picture: Import dependence remains high, energy and luxury goods continue to dominate, which affects external vulnerability. Read More
S&P lifts India’s rating to ‘BBB’, first upgrade since 2007: India’s sovereign credit rating is back at ‘BBB’, a milestone not seen since September 1990, after S&P Global Ratings upgraded it from ‘BBB-’ with a stable outlook on Thursday, August 14, 2025.
The Bigger Picture: The agency said the effect of US tariffs imposed by the Donald Trump administration will be “manageable”, citing India’s reliance on domestic consumption for about 60% of its GDP. Read More
BPCL buys 10 mn barrels of US crude oil through five-month tender: India, the world's third-largest oil importer, is increasing imports from the United States as negotiations for a bilateral trade agreement continue.
The Bigger Picture: Under the deal, Glencore will deliver 2 million barrels of WTI Midland crude per month from November to March to the Indian refiner, the sources said, doubling the volume BPCL imported under its previous tender. Read More
PhonePe tops UPI in July with 8.93 bn transactions, 46% market share: Fintech major PhonePe processed nearly 8.93 billion Unified Payments Interface (UPI) transactions in July, followed by Google Pay’s 6.92 billion and Paytm’s 1.36 billion, data from the National Payments Corporation of India (NPCI) shows. PhonePe’s market share by volume was 45.88% in July, while its closest competitor, Google Pay, cornered 35.56%. Paytm’s market share stood at 7.02%.
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The Bigger Picture: The company will use the capital to expand its engineering team, deepen product integrations, and support its growing base of enterprise customers. Read More

Global & Tech Watch

1
Apple Adds Blood-Oxygen Monitoring via Software Update: Apple Watch Series 9, 10, and Ultra 2 models will receive a blood-oxygen sensor activation through a software update, following U.S. government approval after legal delays involving Masimo.
The Bigger Picture: This update restores a key health feature, enhancing Apple’s competitive edge in wearable tech and resolving a major patent dispute. It strengthens Apple's position in the health-tech space and avoids potential regulatory friction. Read More
2
Meta Bot Policies Allow Inappropriate Conversations: Internal Meta documents reveal that its AI bots have been used in ways allowing sexual content with minors and disseminating false medical advice.
The Bigger Picture: Raises serious ethical and compliance questions for AI platforms. This underscores the need for robust guardrails in conversational AI, inviting deeper scrutiny and potential regulatory intervention globally. Read More
3
“AI Intelligencer” Highlights U.S. Chip Control Measures: Reuters reports U.S. authorities are implementing location-tracking on Nvidia and AMD chip shipments to enforce export controls while the government seeks a 15% share of China sales revenue.
The Bigger Picture: This illustrates how national security policy is intertwining with commercial agreements, embedding oversight mechanisms and revenue-sharing in global semiconductor governance. Read More
4
THL Partners to Acquire Clinical Trials Platform Headlands: Private equity firm THL Partners is purchasing a majority stake in Headlands Research from KKR for approximately $600 million.
The Bigger Picture: PE backing reflects rising demand for clinical trial infrastructure, as AI and biotech investments escalate. Consolidation in this space can drive economies of scale and accelerate innovation cycles for new drug development. Read More
5
Equinix Secures Deals for Nuclear-Powered Data Centres: Equinix has signed multiple advanced nuclear power purchase agreements, including 500 MW from Oklo microreactors, to support data centres in the U.S. and Europe.
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6
AI Startup Cohere Raises $500M at $6.8B Valuation: Cohere secured $500 million in funding, valuing the company at $6.8 billion. Investors include Radical Ventures, AMD Ventures, NVIDIA, Salesforce Ventures, and more. They also named Joelle Pineau (ex-Meta VP of AI Research) as Chief AI Officer and Franck Chadwick (ex-Uber CFO) as CFO.
The Bigger Picture:This reflects strong investor appetite for enterprise AI, shifting focus away from consumer models. Cohere’s North tool and their vision for agentic AI signal growing demand for business-focused AI automation. Read More
7
Oracle to Resell Google’s Gemini Models via Cloud Deal: Oracle has struck a deal with Google Cloud to offer Google’s Gemini generative AI models through Oracle’s cloud infrastructure and business application suite.
The Bigger Picture: By embedding Gemini, Oracle provides customers with flexible, best-in-class AI choices without relying solely on its own tech. For Google, it's a strategic channel expansion beyond its cloud, boosting enterprise traction. Read More
8
“Trump-Fueled” Crypto IPO Wave Hits Wall Street: A new wave of U.S. crypto companies, including Bullish (raising over $1.1B), are going public as cryptocurrency valuations hit an all-time high of $4.2 trillion, driven partly by supportive Trump-era policies.
The Bigger Picture: Renewed interest and regulatory clarity are motivating crypto firms to enter public markets. Major IPOs signal industry maturation and growing institutional confidence. Read More
9
Ulta & Target to End Beauty Mini-Shop Partnership in 2026: Ulta Beauty and Target have announced they will conclude their popular in-store “mini-shop” partnership by August 2026, as part of a mutual decision.
The Bigger Picture: Marks a shift in omnichannel retail strategy as both brands reassess in-store formats and prioritize digital engagement. Read More
10
Eli Lilly to Invest $1.3B with Superluminal on AI-Driven Obesity Drugs: Pharma giant Eli Lilly signed a $1.3 billion partnership with biotech startup Superluminal, leveraging AI to accelerate discovery of new drugs targeting obesity and related cardiometabolic conditions.
The Bigger Picture: Signals Big Pharma's commitment to AI-powered drug discovery and precision medicine, highlighting obesity as a $150 billion market. Read More

Geopolitical Outlook

1
U.S. Plans Cooperation with Pakistan on Critical Minerals & Hydrocarbons: On Pakistan’s Independence Day, U.S. Secretary of State Marco Rubio announced plans to deepen U.S.-Pakistan cooperation in critical minerals and hydrocarbon development, backed by a recent tariff-cutting trade deal.
The Bigger Picture: This signals Washington’s pivot to strengthen regional ties and diversify supply chains, while countering Chinese and Russian influence in South Asia. Read More
2
Putin Opens Door to New Russia–U.S. Nuclear Arms Deal: President Putin said Russia and the U.S. are exploring a new nuclear arms control treaty ahead of their summit in Alaska, aiming to build on New START once it expires in early 2026.
The Bigger Picture: With New START's looming expiration, a new deal could restore strategic stability, reduce nuclear tensions, and provide a forum for broader peace negotiations over Ukraine. Read More
3
Israel to Build 3,401 New Settlement Homes in E1: Israeli Finance Minister Smotrich unveiled a plan to develop 3,401 housing units in the contentious E1 zone east of Jerusalem, moves critics say threaten the viability of a two-state solution.
The Bigger Picture: This settlement expansion could derail peace outreach, draw global criticism, and complicate U.S./European diplomatic positioning ahead of Middle East negotiations. Read More
4
Trump Offers Security Guarantees Amid Ukraine Tensions: U.S. President Trump expressed readiness to back security guarantees for Ukraine, providing a potential lifeline ahead of his summit with President Putin in Alaska.
The Bigger Picture: This shift suggests the possibility of U.S.–Russia progress via Ukraine-led frameworks, but it also raises concerns about what concessions may follow. Strong security assurances could alleviate European doubts, but Russia’s next moves may define the limits of diplomacy. Read More
5
Pacific Islands Forum Upholds Decision to Bar Major Donors: At its Fiji summit, the Pacific Islands Forum confirmed it will exclude 21 major donor countries, including both the U.S. and China, from next month’s leaders' meeting.
The Bigger Picture: This decision underscores the Forum’s pursuit of regional autonomy amid geopolitical tug-of-wars. The move signals a pushback against influence from donor powers and emphasizes Pacific island nations' aspiration to chart their own diplomatic course. Read More

The Data Point

1.55%

India’s annual retail inflation in July dropped to 1.55%, down from 2.10% in June, marking its lowest level since June 2017.