Would Putin stop if he wins in Ukraine? Let’s not find out
A debate is underway, particularly in Washington, on whether to pressure Ukraine into a negotiated settlement with Russia or help its continued defence. If Putin has no further ambitions beyond Ukraine, then the interests of Europe and the US might indeed be best served by forcing Kyiv to settle by starving it of the means to fight — as brutal a betrayal as that would be
A Fed held hostage by data is asking for trouble
An excessive focus on the numbers tips the balance of risks toward keeping interest rates too restrictive for too long, unduly increasing the probability of output loss, higher unemployment and financial instability
Policy Hypocrisy: Protecting the sugarcane farmer and consumer, abandoning the sugar industry
The upward revision of the fair and remunerative price (FRP) and state advised price (SAP) remains a favoured governmental strategy despite the additional cost burden for the sugar milling sector. This coupled with export bans and ethanol caps to keep domestic sugar prices low have reduced sugar companies to a losing proposition, forcing them to drop capacity expansion plans
Moneycontrol Pro Panorama | Jaw-dropping growth
In this edition of Moneycontrol Pro Panorama: Q3 FY24 GDP data an acceleration or slowdown, small cap stocks on regulatory radar, school education needs radical new approach, this jewellery maker is set to glitter, and more
How Himanta swung the Tata Semiconductor Assembly and Test (TSAT) project to Assam
In a rare instance of a highly advanced industry stepping out of the comfort zones of India’s industrial belts like Gujarat, Maharashtra, Tamil Nadu, etc, Assam has bagged the prestigious Rs 27,000 crore semiconductor assembling and testing unit project. For months and weeks, Assam CM Himanta Biswa Sarma made the rounds of the power corridors in New Delhi to dispel doubts of Assam’s ability to execute the project
Why investors should be wary of 'mergers of equals'
Stock price of combined company tends to underperform after deals
China: Huawei's success and struggles offer a blueprint for Comac's aircraft sales
The origin stories of Huawei and Comac are similar. Although the former is not state-owned, both benefit from serving explicit national interests, alleged technology theft, and continuously securing local orders at the expense of arguably superior foreign alternatives. Yet Huawei’s global success in winning long-term orders goes beyond these reasons
It is the end of an era at Starbucks
Howard Schultz didn’t start Starbucks, but he built it into the company it is today. And in him, we saw how the best and worst parts of founders and longtime CEOs are often one in the same. Everything is personal for them. They inject a company with passion and dedication, but that also can mean they make decisions using emotion rather than reason. So for Schultz, the arrival of the union was deeply personal. He believed that only badly behaved companies needed unions to protect their workers; in his mind, Starbucks was not that kind of a company, and he was not that kind of a CEO
Boards must drive sustainability as a catalyst for growth
Sustainability is treated by many companies as a compliance issue or as a theme that investors and customers want to hear. But enlightened boards will be able to see the link between it and superior long-term performance
Chasing 370 seats, BJP may onboard more allies, but cede fewer seats
For BJP to add more seats to its 2019 tally, it needs more alliances and needs to contest more of the seats that the prospective allies have their eyes on. Will the likes of Akali Dal, RLD, Telugu Desam and AIADMK cede more seats in their pocket boroughs to BJP for the sake of BJP’s Mission 370 and NDA’s Mission 400?
Chart of the Day: The regulatory spotlight on small cap stocks is justified
While small cap stocks may not be in the overvalued territory, the growing size of small cap MF schemes and the low liquidity in these stocks are risks that can blow up in a selloff
Novelis IPO marks Hindalco’s evolution into a global metals giant
At a time when India’s domestic market appears increasingly attractive, the eventual success of global forays by some Indian conglomerates proves that going overseas has gains beyond the immediate
It’s time for a radical new approach to school education
The existing system of school education is broken. Several fixes have been tried, by the government, the private sector but nothing has really worked, as learning outcomes show
How SEBI’s move to curb irrational exuberance in small caps can play out
The market regulator wants mutual funds to ensure their small cap schemes are capable of handling a selloff in these frothy stocks. Depending on the measures, stocks could feel some heat. What should investors do?
Q3 FY24 GDP: Is it an acceleration or slowdown in growth?
India's GVA growth slowed in Q3 FY2024 to 6.5 percent from a revised 8.2 percent in Q1 FY2024 and 7.7 percent in Q2 FY2024. However, GDP growth rose to a robust 8.4 percent in Q3 FY2024 from an upward revised 8.2 percent in Q1 FY2024 and 8.1 percent in Q2 FY2024
GDP data: A positive growth surprise, powered by investment even as consumption lags
Investment driven by public sector capex remains the dominant source of growth. Close to half of the headline real GDP growth is coming from growth in gross capital formation
Q3 FY24 GDP: Robust economic growth is poised to boost investor confidence
The revival of growth in the manufacturing sector during the second and third quarters of FY24 is truly encouraging, as the sector had stayed in a low growth trap for almost seven-eight quarters before Q2, FY24.
Sizzling 8.4 percent GDP growth in Q3 shows economy firmly in investment mode
Gross fixed capital formation (GFCF), a proxy to measure investment activity in the broader economy and accounting for about a third of India’s GDP (32.4 percent), grew 10.5 percent during October-December this year, standing shoulder-to-shoulder with the previous quarter’s growth of 11.6 percent, and sharply higher than the 5 percent growth in GFCF in the third quarter of 2022-23.
Himachal: Shaky Sukhu survives but tough Congress action will sting Virbhadra clan
The Sukhu government can breathe a sigh of relief for now, but it will face the Lok Sabha elections and the six bypolls on a weaker wicket. Congress has sent a strong message to its 34 remaining MLAs by not wooing the six rebels back. The mother-son duo of Pratibha and Vikramaditya Singh will be stung by the six disqualifications. Unless a Congress Jodo ensues, BJP will be dangling more baits
Moneycontrol Pro Panorama | Reliance-Disney deal: A box office hit?
In today's edition of Moneycontrol Pro Panorama: What Q3 GDP numbers fortell, a billion-dollar boost to the pharma stocks, India could lead the way in AI technology, slump in iron ore prices concerns steel makers, and more
David Cameron Return: Has the UK learned nothing from Brexit?
The success of David Cameron and Nick Clegg and so many other middle-of-the-road politicians suggests the emergence of an unstable political order: one in which the global establishment continues to pursue its old policies as if populism doesn’t exist and the masses then have no alternative but to engage in periodic Brexit- or Trump-style revolts against the status quo
Barclays, Deutsche Bank are back into credit derivatives. Stay calm
There is a growing trend of risk-transfer deals mainly by European banks to shore up their balance sheets and capital ratios. Risk-transfer trades like Barclays’ involve selling the risk of losses on a portfolio of loans to an investor that is typically a credit specialist or hedge fund. The investor wants the nice yields available from credit cards or other loans without having to do the nitty gritty of managing customers
Preparing for a Hot Summer: Heatwave challenges and solutions ahead of Lok Sabha Elections 2024
With the Lok Sabha polls round the corner, prioritising public safety during outdoor engagements is crucial. To achieve this, bold and collaborative efforts aimed at safeguarding public health and enhancing resilience is needed
Can European carmakers stop China’s electric behemoth BYD?
The company began selling on the continent a little over a year ago and is already making inroads
Surprise slump in iron ore prices poses risk for India’s steel producers
China’s property sector needs a more robust stimulus, barring which a shadow over iron ore prices may continue as steel-makers will taper output
