On this day…

Good morning and welcome to The Blue Express! As we step into another day, let's take a moment to reflect on some of the significant historical events that occurred on July 12th:

•  1543: King Henry VIII of England married his sixth and final wife, Catherine Parr.

• 1812: The United States invaded Canada at Windsor, Ontario, during the War of 1812.

• 1962: The Rolling Stones performed their first concert at the Marquee Club in London.

• 1975: São Tomé and Príncipe gained independence from Portugal.

• 1998: France won the FIFA World Cup, defeating Brazil 3-0 in the final held in Paris.

Open Market Forex Rates

Data is provided by Link Exchange

Todays Gold and Silver prices

Gold Prices (per Tola):

• 24 Karat: PKR 248,850

• 22 Karat: PKR 228,111

• 21 Karat: PKR 217,744

• 18 Karat: PKR 186,638

Silver Prices (per Tola):

• Silver: PKR 3,224

  *These prices are consistent across major cities like Karachi, Lahore, Islamabad, and Rawalpindi with minor variations

Data is provided by Waseem Jewellers

WORLD

European Nations Supply $6.8B in Arms to Israel Amid Gaza Conflict

• Significant Arms Suppliers: France, Italy, and Germany contributed 81% of the Middle East's arms imports from 2019-2023, with Germany as Israel's largest European supplier.

• Escalating Exports: In 2023, German arms deliveries to Israel surged tenfold to €326.5 million. Italy and Spain continued substantial exports despite restrictive laws.

• Widespread Contributions: Other European countries, including the UK, Spain, and the Netherlands, also issued significant export licenses, contributing to Israel's military capabilities.

• Humanitarian Concerns: Amid international condemnation and accusations of genocide, Israel's ongoing military operations in Gaza have resulted in over 38,000 Palestinian deaths and extensive regional devastation.

Oman Mediates Iran-US Nuclear Talks Amid Rising Middle East Tensions

• Oman's Role in Diplomacy: Iran's acting Foreign Minister Ali Bagheri Kani confirms ongoing indirect nuclear talks with the US through Oman, despite US claims of stalled negotiations.

• Confidential Negotiations: The details of these indirect talks remain confidential, with efforts focused on establishing a favorable environment for the new Iranian government under President-elect Masoud Pezeshkian.

• Pezeshkian's Stance: The new Iranian president, Masoud Pezeshkian, aims to adopt a pragmatic foreign policy and reduce tensions with world powers, though ultimate decisions rest with Supreme Leader Ali Khamenei.

• Regional Tensions: The discussions are set against a backdrop of heightened Middle East tensions, including the Israel-Hamas conflict and cross-border incidents involving Hezbollah, adding complexity to Iran-US relations.

PAKISTAN

Azerbaijan President’s Visit Spurs 15 Landmark MoUs with Pakistan

• High-Level Reception: President Ilham Aliyev was warmly welcomed in Islamabad by Prime Minister Shehbaz Sharif, marking the start of a significant two-day official visit.

• Strategic Agreements: Pakistan and Azerbaijan are set to sign 15 memoranda of understanding, including a preferential trade agreement, transit trade agreement, and air service agreement to bolster trade and cooperation.

• Focus on Investment: Azerbaijan is considering a substantial investment of $2 to $3 billion in Pakistan, particularly in the mineral sector, oil and gas exploration, and LNG sector, as highlighted by Minister of State for Petroleum Musadik Malik.

• Enhanced Economic Cooperation: The visit aims to boost bilateral economic ties, with discussions on increasing textile exports and promoting the IT sector, fostering a promising future for Pakistan-Azerbaijan relations.

Nationwide Flour Mills Strike Over Withholding Tax Sparks Shortage Concerns

• Massive Shutdown: Over 250 flour mills in Khyber Pakhtunkhwa, including those in Peshawar, have ceased operations as part of a nationwide strike led by the Pakistan Flour Mills Association (PFMA).

• Tax Dispute: The strike is a response to the government's imposition of a 5.5% withholding tax on flour mills and additional taxes on the sale of flour to wholesalers and retailers, raising flour prices by Rs8-10/kg.

• Potential Food Crisis: The ongoing strike, which began after failed negotiations with the government, threatens to create a significant food shortage across Pakistan as flour supplies dwindle.

• Industry's Demands: The PFMA demands the withdrawal of the new taxes and opposes the government's mandate to make flour mills tax collection agents for the Federal Board of Revenue (FBR), citing the added burden and potential law and order issues.

Finance Minister Proposes Overhaul of Military Pensions Amid Economic Reforms

• Pension System Overhaul: Finance Minister Muhammad Aurangzeb calls for a comprehensive revamp of the military pension system, citing its unique structure and a one-year timeframe for implementing new regulations.

• Economic Burden: The current pension system places a significant strain on the national treasury, costing Rs1 trillion annually, prompting the introduction of cost-reducing schemes like a voluntary pension program for new employees.

• Positive Economic Trends: Aurangzeb highlights improvements in macroeconomic indicators, decreased inflation, and the stabilisation of the forex market, despite challenges during the suspended IMF program in 2023. xcccc

• Fiscal Reforms: Efforts include increasing the tax-to-GDP ratio, enhancing public trust in the Federal Board of Revenue (FBR), promoting public-private partnerships, and implementing austerity measures such as dissolving ministries and shutting down the Public Works Department.

BUSINESS

Saudi Arabia Raises $12.3B Through Aramco Share Sale to Fuel Vision 2030

• Major Fundraising: Saudi Arabia raised $12.35 billion from selling additional shares in Aramco, leveraging the world's most valuable oil company.

• Vision 2030 Support: The proceeds will aid in diversifying Saudi Arabia's economy, reducing its reliance on oil by investing in new industries as part of the Vision 2030 plan.

• Green Shoe Option: An extra $1 billion was secured through the green shoe option, which allows banks to sell more shares in response to high investor demand.

• Successful Placement: The government sold a 0.64% stake in Aramco at 27.25 riyals per share, with Merrill Lynch managing the stabilization of the additional shares.

Auto Sales Surge to 18-Month High in June 2024, Led by Indus Motors and Pak Suzuki

• Significant Growth: Auto sales in June 2024 reached 13,284 units, marking an 18-month high with a 21% month-on-month (MoM) increase and a 120% year-on-year (YoY) rise.

• Leading Contributors: Indus Motors saw a 44% MoM increase to 2,957 units, and Pak Suzuki Motor Company Ltd rose by 15% to 6,885 units, driving the overall sales growth.

• Mixed Performance: Hyundai Nishat Motor's sales increased by 55% MoM, while Sazgar Engineering Works (SAZEW) rose by 12%. Honda Atlas Cars Limited (HACL) was the only company with a decline, down by 8% MoM.

• Economic Influence: Improved economic activity, a stable currency, and reduced interest rates are expected to boost future car sales, despite the overall fiscal year 2024 sales being down by 18% due to high car prices and low purchasing power.

TECHNOLOGY

TSMC Soars to Trillion-Dollar Valuation Amid AI Boom

• Historic Milestone: Taiwan Semiconductor Manufacturing Company (TSMC) joins the elite trillion-dollar market capitalization club, underscoring its significance in the tech world.

• Stock Surge: TSMC's stock has climbed 80% year-to-date, consistently trading above its 50-day average and reaching a yearly high of $192.80.

• AI-Driven Growth: The surge in demand for high-performance chips, particularly for generative AI, has fueled the semiconductor industry's growth, with global sales projected to reach $611.2 billion in 2024.

• Strong Market Position: Analysts predict higher sales for TSMC, bolstered by the company's strategic "hunger marketing" approach and rising chip prices, ensuring continued high demand and bargaining power into 2025.

CM Punjab, PTCL delegation discuss internet improved connectivity

• A delegation of PTCL company called on Punjab Chief Minister Maryam Nawaz in Lahore today.

• During the meeting, projects to provide high-speed internet and improved connectivity in the province came under discussion.

• The expansion of telecommunication infrastructure to enhance internet access in urban and rural areas was also discussed.

• The Chief Minister said that high-speed internet is crucial for e-commerce and freelancing services.

  She said that digital technology projects should be implemented equally in both rural and urban areas.

SPORTS

'There's A lot I Can Say But...' Wahab Riaz Reacts After PCB Sack Him From Pakistan Team's Selection Committee

Wahab Riaz reacts to Pakistan Cricket Boards (PCB) action of removing him from the team's selection committee. Says 'I don’t want to be part of the blame games.'