Moneycontrol Daily: Your Essential 7

1 Market Buzz

What’s with global financial markets

Global financial markets have surprised investors and economic pundits as they recoup almost all the losses witnessed due to the coronavirus outbreak. This kind of recovery should baffle everyone, as it is really sharp and in the middle of zero fundamental developments. It seems stimulus packages announced by the central banks are the sole reason for the rally. So what should investors do? A beginning of a multi-year bull market from the panic lows of March can be ruled out. Traders or investors should remain alert without developing FOMO, as a fall can be a minimum of 10 percent as has happened in the past. Read here 

2 Big Story

Rail Neer, ace in IRCTC pack

The Indian Railways Catering and Tourism Corporation may find itself in a spot due to disruptions caused by the coronavirus pandemic. Though its Q4FY20 earnings bucked the trend, the uncertainty over normal resumption of passenger trains is bound to affect its topline and the company may have to improvise to generate revenues. Its bottled water brand Rail Neer may show the way. It has emerged that IRCTC is exploring options to sell Rail Neer outside railway stations. So, does it stand a chance of competing against the likes of Bisleri and Kinley? Read here.

3 Your Money

Gold is the new inflation hedge

Conventional wisdom says gold is a safe-haven asset for investors during a time of crisis but these beliefs have been tested lately. The recent price movements in gold reflect more of an inflation hedge theme rather than the typical behaviour of a safe-haven asset. Gold prices are getting increasingly correlated with risk assets. For example, gold was unable to surge when US- China tensions were making headlines but it moved up on release of better-than-expected economic data from the US. Gold seems to rally sharply even in the backdrop of a weakness in the dollar. This counter intuitive move is about investors viewing gold as an inflation hedge more than a safe-haven asset. Read here.

4 Global Watch

Australia extends jobs support plan

Australia will spend A$16.8 billion ($11.8 billion) to extend its wage subsidies for businesses hit by the coronavirus pandemic, as a surge in new infections in the country's southeast threatens to keep the economy in recession. The six-month extension of the programme allays fears a hard end to the current A$70 billion scheme, originally scheduled for September 30, that would prolong Australia's first recession in three decades. However, subsidies will be reduced under the new programme, which runs through to March 28, 2021 and is expected to cover about one million workers, as Prime Minister Scott Morrison's conservative government seeks to wean the economy of fiscal support. Read here

5 Tech Tattle

Zoom to open tech centre in Bengaluru

American video-calling application Zoom is to open a technology centre in Bengaluru and expand its team in India. The Nasdaq-listed company said it will invest actively in the country and work closely with the government to assuage all fears around security and privacy concerns around the platform. Given the fact that Zoom has seen a 67 times jump in its free user base in the country, the company which was founded by Eric Yuan, is doubling its capacities here and if needed, may also look to buy up more server space in the country. Currently, Zoom has two data centres in India-- Mumbai and Hyderabad. Read here.

6 Startup Tales

Loans against cars as collateral

Cars24 will now offer consumers loans against their cars, the company said on July 21, a move aimed at helping owners looking to sell their vehicles to tide over a cash crunch. The company wanted to provide people with a loan and help them retain the asset at the same time through this new product, the Gurugram-based used cars startup said. Earlier, the company offered loans to only its customers and business loans to its Cars24 dealers. This is the first time it has extended the facility to those who have not bought cars from it. Read here.

7 Tailpiece

N-95 masks with valves do not prevent COVID-19

N-95 masks with valved respirators do not help prevent the spread of the novel coronavirus, a health ministry expert has said. Doctor Rajiv Garg, Director-General of Health Services - which comes under the Ministry of Health - has urged all states and union territories to take cognizance of the fact that such masks won't check the spread of COVID-19. He said in a letter, “The use of valved respirator N-95 masks is detrimental to the measures adopted for preventing the spread of coronavirus as it does not prevent the virus from escaping out of the mask.” Read here.