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- Bit by Bit 13th November || Market cap of top 5 global EV makers tumbles by USD 791bn || The UK economy is moving towards recession, Europe will follow. & more
Bit by Bit 13th November || Market cap of top 5 global EV makers tumbles by USD 791bn || The UK economy is moving towards recession, Europe will follow. & more
Every morning I get up and look through the Forbes list of the richest people in America. If I’m not there, I go to work. — Robert Orben
So, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
(Markets were closed on 12/11/2022, Saturday)
ECONOMY
Key Facts
The UK economy shrank in the third quarter, signaling the start of a recession that is likely to hit Europe next.
The United Kingdom is the only G7 economy to have contracted in the third quarter.
The Bank of England warned last week that the UK economy could experience its longest recession since the 1940s.
UK GDP fell 0.2% between July and September, ending five consecutive quarters of growth.
The Story
UK economy is now 0.4% smaller than it was at the end of 2019, before the coronavirus pandemic began, according to the ONS (Office for National Statistics).
The decline in GDP reflects a slowdown in the economy more broadly. Household incomes are being squeezed by decades high inflation, interest rates are rising and business and consumer confidence is weakening.
“Lower consumer spending appetite is likely to help push GDP into a second-straight contraction during the fourth quarter,” James Smith, developed markets economist at ING, said in a note.
At the same time, for the US the preliminary index reading from the monthly Surveys of Consumers showed sentiment fell to 54.7, from 59.9 in October. Which indicates consumers are feeling worse about the US economy.
AUTOMOTIVE
Key Facts
Tesla Inc crashed by over USD 519 billion since April 2022. It is more than the combined market cap of Reliance Industries (USD 215billion) and Adani Group (~USD 260 billion).
Rivian Automotive fell from USD 113 billion to USD 28.26 billion, BYD Auto from USD 133 billion to USD 97.69 billion, Lucid Motors from USD 90.9 billion to USD 23.3 billion, and Nio Inc from USD 61 billion to USD 20.9 billion
The Story
Once the apple of investors' eyes, the electric vehicle (EV) companies are losing their sheen rather too soon. A study reveals that the world's top five new-age EV makers have lost over USD 791 billion in market cap. It is more than the combined market cap of the top 10 global EV players, excluding Tesla. The top five are Tesla Inc, BYD Auto, Rivian Automotive, Nio Inc, and Lucid Motors.
Though the tumble impacted traditional automakers, its intensity was less than that of these new-age EV manufacturers. The disruptions from Covid-19 and the Ukraine-Russia war crisis had their role to play in this catastrophe for both sides of the industry.
“The market cap of companies like Tesla, Rivian, etc. (I exclude BYD) has been overpriced and due for a correction. I don’t think the race to EV will abate. I exclude BYD because it’s a traditional player and it’s pivoted effectively to a very good EV offer,” says Andy Palmer,
FMCG
The Story
The FMCG industry witnessed an overall volume decline of 0.9 per cent in the September quarter in comparison to the preceding three months. This was the fourth consecutive quarter with negative volume growth for the industry and is ''attributed to the double-digit price growth for the past six consecutive quarters,'' the quarterly FMCG industry report said.
Rural markets recorded a volume decline of 3.6 percent in the September quarter in comparison to a decline of 2.4 percent in the June quarter. ''The consumption decline in the rural markets continues to be led by both double-digit price increases and lower unit growth,'' the report said. During the same period, urban markets recorded a 1.2 percent increase in volumes.
However, the report said the Indian FMCG industry continued to have a price-led growth in topline, with an 8.9 percent growth in the July-September period compared to the previous quarter. ''Volume and value sales of FMCG are above pre-Covid levels'' of March quarter of 2020 as the ''markets have opened up completely post-pandemic,'' it added.
TECH
The Story
According to a person familiar with the decision, Twitter Inc. has paused the $8 membership program it introduced earlier this week to address the problem of individuals mimicking well-known brands.
Since Twitter started allowing paying customers to receive verified blue check marks, there have been an increasing number of fake accounts. While a fake Eli Lilly & Co. account tweeted that insulin was now free, requiring the corporation to make an apology, another account acting as Nintendo Inc. released an image of Super Mario sticking up a middle finger. A fictitious Tesla Inc. account made light of the automaker's track record for safety.
“To combat impersonation, we’ve added an ‘Official’ label to some accounts,” Twitter Support tweeted on Friday. The same day, Elon Musk tweeted that any accounts that parody something must have "parody" in their name.
Want a BIT More?
Story:
Gaurav Nayar, chief economist at World Bank, and Ritam chaurey, professor at Hopkins University said in their reports that the contribution of the service sector in the economy is overlooked by the policy maker they are most concerned about agriculture and manufacturing because in this sector there is direct contact of labour. In 2021, the contribution of the service sector in India’s GDP IS 53.89%. Information and communications technology (ICT), professional, and other business services that are tradeable and offshorable just like goods are largely responsible for the growth of the services sector in India.
ICT, professional, and other business services only made up 2.6% of total employment in 2018, though. Given their high skill requirements, it is still not clear if these TS can generate enough employment on a large scale to serve as a catalyst for structural change. Services like retail and hospitality that involve a lot of face-to-face interaction between customers and service providers frequently employ large numbers of low-skilled workers. Retail and wholesale trade, postal and courier services, lodging and food services, legal, accounting, education, health, personal services, residential care, and repair services are all included in NTS.
