Business in the Week Ahead (December 12–16, 2022)
The US Federal Reserve and the European Central Bank will hold policy meetings to announce new interest rates, while the IPO issues of Sula Vineyard, Abans Holdings Limited and Landmark Cars will hit the market
Fininfluencers | Existing regulations enough to rein in fraudsters
For registered advisers, no further regulation is required. For those who are not registered, better enforcement will be a deterrent
The emerging contours of US-China hegemonic competition
One way or the other, nation-states are demonstrating their independence. This is being done by either wooing China and refusing to raise oil production like Saudi Arabia, Qatar, and OPEC+ or acts like buying or securing vital products like oil and gas from pariah states like Russia, much like India and Japan are doing
How farmers can grab a bigger slice of the agriculture value chain
A Farmer Producer Company (FPC) in Nashik district, formed by grape-growers of the region, is in the process of building India’s first licensed private agriculture mandi
Cash Trade | Federal Bank trades in a rectangle
Price is near the support of rising trendline.
Gujarat shows an invincible BJP, Himachal Pradesh exposes chinks in its armour
As focus shifts to the state elections in 2023 and the general election in 2024, all parties will have their work cut out for them; it will be the hardest for the Congress
ESIC funds for equities an overdue decision
Given the EPFO’s success with equity investments, ESIC will also gain from investing a portion of its funds in stocks
Real policy rates are well below the pre-pandemic levels
The data shows that the relation between the policy rate, inflation and growth is very different now than before the pandemic
Consumer confidence is back to pre-pandemic levels
The RBI survey’s Future Expectations Index for November 2022 is higher than its level in November 2019
MPC signals more tightening ahead before pause – rates to remain high through 2023
One particular concern flagged by the monetary policy statement is the persistence of core inflation around 6%, making it now the main risk to the inflation trajectory
Of mules and foxes and securities laws violations
Use of front persons is extremely common in insider dealing, front running, frauds, etc. in securities markets. The question, however, is whether such front persons, aka mules, should be held liable in the same manner and extent as the mastermind who profits the most
DESH Bill — Implementation delayed is investment denied
Inter-ministerial differences over the proposed legislation should be resolved quickly to ensure that India does not miss on the China-plus opportunity
Geopolitics an emerging frontier for companies’ investment canvas
Friend-shoring now seeks to secure a partnership model that covers those nation-states that share more than the US’ or EU’s view of open markets, labour, and environmental standards
Ruchir Sharma: The easy money era is over but world leaders have not got the memo
Free-spending governments are being punished if they don’t abandon unorthodox policy
Why policy rates need to go up more as monetary policies are tightening everywhere
The impact on inflation of monetary tightening will be lower if policy is tightened together in many economies
Time for a BRICS reinsurance company
The sensible thing for India to do is to keep buying Russian crude, set up a BRICS Re to offer reinsurance to those who insure the safe passage of Russian crude without price caps to wherever it is welcome, and to keep engaging both sides in the Ukraine war
Financial Instability: the hunt for the next market fracture
Investors are keeping a close eye on areas ranging from US Treasury market illiquidity to Japanese government debt
Is China's rapid nuclear expansion a threat to India?
The Pentagon report comments on the China-India border issue where it says that the PLA has sustained “the deployment of forces and continued infrastructure build-up along the LAC”
Why NPCI had to extend UPI market cap deadline by two years
While the restrictions on UPI apps have been deferred by two years, nothing much would change from the current scenario unless we see another dominating app taking off in payments — the likelihood of that at the current stage looks very difficult
Import checks | Quality on lips, China on mind
Focus on quality is good if it doesn’t become a non-tariff tool to stall imports, especially from one particular nation; R&D spending must go up to make Indian products globally competitive
Should the MPC give one more rate hike for the road before resting?
The MPC faces a tough choice between staying the course and pausing a bit to take stock and then making the next move
The Reading List: December 2, 2022
A selection of articles and social media gems from the world of economy, business and finance, curated by our research and opinion teams
Legal Affairs | Collegium system has its flaws, but government interference is not the remedy
The Union Law Minister forgets that it was his own government which nixed a plan to make the process of appointment of judges more transparent
Budget 2023: India must sustain its growth momentum despite stiff global challenges
With rising global inflation, threat of pause as interest rates rise across the world, a national budget can do little to manage domestic public finances. The one outcome it can deliver is to ensure domestic growth continues
