Japan Carmakers: Speed up consolidation to compete with China’s EVs
China sees an opportunity to dominate, and to counter it, huge investment in technology is needed, from batteries to automated driving systems. The industry transition might leave room for only five major automakers worldwide. The Japanese industry could gravitate into two groups — the Toyota-affiliated firms and everyone else
Eris Lifesciences’ insatiable appetite for growth is driving up its debt
After Biocon Biologics' formulation deal, net debt at the company is estimated to rise from Rs 886 crore to Rs 2,400 crore
The trouble with narratives like Japan is back, China is over
Ideas can come and go, and come again. The mania for Japan may abate if the current bright spot is really another false dawn. Does the current mood exaggerate China’s shortcomings and give enough space to things that it’s doing well? Exports are climbing nicely, and the country is becoming a clean-tech powerhouse. But that's the beauty — and downside — of narratives. They tend to oversimplify complex matters, minimise nuance, and can outlive their usefulness
Indian economy has made it to the launchpad. It still needs a spark
India’s macroeconomic stability is impressive compared to many of its peers. Pandemic spending wasn’t excessive. The fiscal deficit has been steadily shrinking as a proportion of GDP. The rupee has been remarkably stable. And “core” inflation, which excludes food and fuel prices, has eased to 3.3% year-on-year. But it is still government actions that are pushing growth up or down, rather than the choices made by India’s private sector
Panic in mid, small caps shows SEBI’s warning has hit markets hard
Disclosure of stress tests of fund houses allow investors to make informed decisions and show where and how much are fund houses vulnerable in their exposure to mid and small cap stocks
Simultaneous polls are enroute, but they may not be an unalloyed good thing
The benefits of holding simultaneous elections are many but the main argument against is also a strong one
Will a new pharmaceutical marketing code succeed where earlier attempts failed?
The code’s voluntary nature and past experience does not inspire confidence in its implementation. Apart from companies, there is a dire need to regulate the other side of the table as well
Mid and small cap lure frays a bit: What's next for investors?
Stress tests of liquidity in regular market periods may not be an accurate representation of how things progress when there is a sharp or long correction and fear takes over
Five ways India’s next growth cycle is different
By the end of this decade, India’s GDP will clock an average 6.7 percent growth annually. The upturn underway is on a stronger footing and is taking place in an entirely different geopolitical setting than before. The world is moving away from hyper-globalisation to tariff wars and industrial policies that promote domestic production. The post-pandemic focus on resilience rather than efficiency will continue
Chart of the Day: Flexible NBFCs piled on more risk in past three years
Lending to micro, small and medium enterprises has been largely bank-driven. But the past three years have witnessed a sharp increase from non-bank lenders
Biden and Netanyahu are going from frenemies to enemies
Biden is a true and life-long friend of Israel. But warning Netanyahu against invading Rafah, where about half of Gaza’s displaced population now huddles, is a red line. The president didn’t spell out what consequences its crossing would bring, and his national-security staff subsequently tried to soften the message. Biden must now follow through, if he wants to prevent a terrible conflict from becoming even worse
Andhra: Delhi’s hand of friendship and poll arithmetic drives zero-chemistry Naidu-BJP alliance
Chandrababu Naidu needs BJP’s crutches to take on the imperious Jagan Mohan Reddy. Whatever votes BJP and Jana Sena can pull will help TDP in the assembly polls. But a smooth vote transfer may be difficult between the three allies. Moreover, BJP isn’t exactly popular in Andhra Pradesh because of inaction on the “special status” front
Moneycontrol Pro Panorama | ‘Tis the time to cherry-pick stocks
In this edition of Moneycontrol Pro Panorama: SEBI tries to rein in the raging bulls, SKM split threatens farmers’ agitation, is India-EFTA trade agreement achievable, alleged illegal stock options transaction saga continues, and more
Japan: Where more regulation leads to higher stock prices
Regulation designed to create more transparency and reduce systemic risk has routed trading activity away from opaque over-the-counter markets managed by banks and into clearinghouses, mostly owned by stock-exchange companies. After decades of languishing stock prices, Japan reorganised its market segments, calling on top-tier companies to provide more value to investors. The JPX Prime 150 Index launch has also been a success. The number of Japanese companies that trade below book value has shrunk and stocks have rallied
Oodles of instant noodles: how a global favourite became an economic red flag
Cheap and calorie-filled, the rapid foodstuff tells us about the state of the world
The Kate Middleton mess should terrify brands on social media
The British monarchy is essentially a massive global brand and the mess it finds itself in right now should be a warning to any business that thinks it can control its own messaging. Recognising that they can seem out of reach and out of touch, brands have taken to social media to meet their consumers where they are. When you attempt to regularly engage with an audience in order to come across as accessible, it only amplifies the decision to go silent when things take a turn
Private credit has had its 15 minutes of fame
The conditions that led to the private credit boom are unwinding. After two years of ceding turf to direct lenders, investment banks, which are the public credit markets’ gatekeepers, are striking back. With confidence growing of a Fed interest-rate cut, private credit funds will have to cut their premiums. But they wont mind cheap public debt, as many sit on a “towering backlog” of unsold investments amid anemic IPOs and are in need of more cash
It’s too late to China-proof the lithium supply chain
There plans to cut Chinese dependency are coming nearly a decade too late. If rich democracies wanted to build a clean-energy industry free of Beijing’s influence, they should have had their checkbooks out when miners and processors were starved of cash during the 2010s. The global lithium industry is so interwoven with Chinese capital now that it’s going to be impossible to unpick
Chart of the Day: Falling share of HFCs in home loan market
While market share of public sector banks was stable, the private sector banks saw a significant increase in share
AI Impact on Indian Film Industry: Lessons from the Hollywood negotiations
The guardrails erected in Hollywood in respect of consent and compensation come at a timely juncture for India. Going forward, performers, talent managers and producers in India would be better equipped at delineating the exact purposes and duration for which digital replicas may be deployed
Stock options trading settlement scheme 2024 – a never ending saga?
It will soon be a decade since these transactions took place but there is no sign of the issue attaining closure. There are lessons in it for future cases
Here an SKM, there an SKM, and the threat to farmers’ unity
Ramlila Maidan Farm Mahapanchayat: Samyukta Kisan Morcha’s success in getting permission for a mahapanchayat in Delhi even as its splinter outfit, the SKM (Non-Political) languishes at the Shambhu border, has created unease in the farm movement. GoI has played a smart political hand, but will the two groups resolve differences for the sake of their common goals like legal guarantee for MSP?
Is the $100 bn FDI target under the India-EFTA trade agreement achievable?
It’s not a governmental commitment to invest the money but India’s industrial priorities in areas where the EFTA countries’ strengths lie, such as green hydrogen, renewable energy and infrastructure, provide enough avenues if the intent is there
Has the SEBI chief finally reined in the raging bulls?
While the near-term positives are already priced into valuations, there are some challenges from weak domestic consumption and slow exports
Pharma stock valuations out of sync with normalising market growth
While shares of India-focused drug companies re-rated, growth in domestic pharma market is returning to pre COVID levels
