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- Bit by Bit 16th November || Suddenly, Musk's Twitter has an existential crisis || Google Pay: UPI autopay for subscription based payments & More
Bit by Bit 16th November || Suddenly, Musk's Twitter has an existential crisis || Google Pay: UPI autopay for subscription based payments & More
Good Morning Readers! So, here are:
"5 amazing stories in 5 minutes to make you future ready"
Happy reading!
MARKET UPDATE
NIFTY 50 : ₹18,403.40 (+0.41%)
BSE SENSEX : ₹61,872.99 (+0.40%)
NIFTY BANK : ₹42,372.70 (+0.70%)
USD/INR : ₹80.99 (+0.04%)
BRENTOIL : $95.45 (+2.40%)
MCXGOLD : ₹52,721 (+0.01%)
FII Net Cashflow : - ₹221 crores
DII Net Cashflow : - ₹549 crores
(Market data as of 11:00 PM on 15/11/2022)
ECONOMY
Key Facts
• According to the prediction, up to 13 countries, including India, would spend more than 20% of their government income on debt servicing in the upcoming year.
• Higher prices and a tighter monetary policy will have a negative impact on consumer spending, investment, and economic mood, causing the global GDP to increase at a slower rate of 1.7% in 2023 compared to its 3% growth rate in 2022.
The Story
"Our outlook for sovereign creditworthiness in 2023 is negative. Although inflation Will start declining, prices of food and energy Will remain high, curbing economic growth and raising social tensions," Moody's said.
The growth rate for the G-2O economies is predicted to go down to 1.3% in 2023 from its prior projection of 2.1%.
Due to persistent inflation, monetary policy tightening, fiscal constraints, geopolitical upheavals, and financial market volatility, the global economy is on the cusp of a downturn amid exceptionally high levels of uncertainty, it had added.
AUTOMOTIVE
The Story:
In Rajasthan, Riju Jhunjhunwala of the LNJ Bhilwara Group sees electric vehicles as the next lever of growth for the company. In Mumbai, Hemant Kabra wants to diversify his family business of wires, cables and switches into making electric scooters. In Delhi, Mithilesh Jain wants to cash in on his mechanical engineering degree by steering his family firm KL Group from road construction to manufacturing electric vehicles. In Ahmedabad and Hyderabad, Mohal Lalbhai and Vamsi Gaddam want to plug the one big gap in India’s two-wheeler EV landscape— motorcycles. Lalbhai’s family owns Arvind Ltd, one of India’s biggest textile firms. Gaddam’s family owns Visaka Industries, which makes construction material like corrugated cement sheets.
Crisil estimates that in the next five years, the EV sector in India will provide an opportunity worth almost ₹ 3 trillion. This includes potential revenue of about ₹ 1.5 trillion across vehicle segments for original equipment and component manufacturers; and about ₹90,000 crore in the form of disbursements for vehicle financiers. Shared mobility and insurance would account for the rest. For any smart and ambitious businessman, this is too big an opportunity to let go.
FMCG
The Story
Leading producers of consumer products anticipate higher profits for the remainder of this fiscal year, with margins returning to pre-Covid levels as a result of lower and stabilized raw material costs and preliminary signs of improving demand.
In earnings calls, businesses like Britannia, Hindustan Unilever (HUL), Tata Consumer Products, Marico, Emami, Godrej Consumer Products, and Dabur stated that their Ebitda margins will increase sequentially in the month of October-November.
They also said they will not cut down on their advertising and promotion.
TECH
The Story
Indian consumers who pay for in-app subscriptions now have a UPI-based automated payment option through Google Play. Users will be able to easily make regular payments using any UPI application that supports the capability thanks to the new Google Play UPI Autopay payment option. Given that recurring payments have been unsuccessful since the RBI implemented its new regulations, which no longer permit businesses to keep card information without prior user approval, this should provide some respite for users. The new Google Play option will support applications like Google Pay, Paytm, Amazon, and others. In UPI 2.0, NPCI launched UPI Autopay, which enables users to quickly make recurring payments with any UPI-based app of their choosing. Users of apps like Google One, Adobe, Microsoft Office, etc. that require recurring payments no longer have to worry about doing so on time or run the danger of having premium features deactivated if they fail to do so. Every time the subscription needs to be renewed, UPI Autopay will use UPI payments to automatically withdraw the appropriate amount from your linked bank account. With the addition of UPI Autopay to the platform, Saurabh Agarwal, Head of Google Play Retail & Payments Activation stated, "We aim to extend the convenience of UPI to subscription-based purchases, helping many more people access helpful and delightful services - while enabling local developers to grow their subscription-based businesses on Google Play."
Want a BIT More?
The Story
So you might have thought on hearing that Elon Musk sold another $4 billion in Tesla stock after telling Tesla shareholders such sales were done. On Thursday he made the stunning and improbable admission. He sought the cash in case it was needed to plug holes in Twitter lest the company succumbed to bankruptcy in the short term
In any cascading crisis, months or years may be required to sort out the events of hours and days. Presumably any private money he now injects—on top of the $26 billion he has already personally risked—would be in the form of a loan or equity infusion. He may wish to hold in reserve the possibility of treating it as a charitable donation, so at least he can get a tax deduction if Twitter goes belly up.
At what point he and his minority partners discovered they might be buying a failing concern, rather than merely overpaying, will be a question for the forensic accountants. His idolater and investor Ron Baron, founder of Baron Capital, gently probed during a public Q&A last week and the first words out of Mr. Musk’s mouth reminded the audience that he wished not to complete the deal. In case anyone didn’t get the message, he twice mimed out a scene from “The Godfather" movies to indicate he was “pulled back in" against his will.
