Bit by Bit 9th Oct. || IMF announced the world's economic production might decline by $4 trillion||Festival sales help lift demand for ethnic and occasion wear & more

Good morning! Take some time this weekend to do what you enjoy, but first, spend five minutes catching up on five incredible stories.

So, here are:

Happy reading!

MARKETS

(Markets were closed on 7/10/2022, Saturday)

ECONOMY

'World could lose $4 trillion in economic output between now and 2026': IMF warns higher RECESSION risk and gloom GLOBAL outlook.

The Story:

According to the International Monetary Fund, which announced it will again decrease its growth estimates, the global economic outlook is becoming more gloomy and the chances of recession are rapidly increasing. Between now and 2026, the world's economic production might decline by $4 trillion.

In a speech at Georgetown University, IMF Managing Director Kristalina Georgieva remarked, "We expect that countries accounting for about one-third of the world economy will see at least two consecutive quarters of decline this or next year." He further added, "And, even when growth is positive, it will feel like a recession because of shrinking real incomes and rising prices."

With commodity prices skyrocketing, geopolitics is a factor in the rising inflation in India and around the world. According to a recent study by Morgan Stanley, while the impact is being lessened by changes in current account funding dynamics, an increase in oil prices that is supply-constrained is typically unfavorable for India's economy and markets.

On the macro level, other commodities, including fertilizer, seeds, and palm oil, are also sources of pressure, particularly on inflation and the balance of payments. In research stating that the worst is yet to come for the global economy, foreign brokerage Credit Suisse stated that weaker external demand and currency strength would weigh on growth in emerging nations.

AUTOMOTIVE

SIAM proposes a tax cut on imports with Britain

Key Facts:

• The Society of Indian Automobile Manufacturers propose government about cutting down the tax rate to 30% on imported cars

• India has Import taxes from 60% to 100% in the world's fourth-largest car market rank among the highest globally

• India is trying to strengthen its international trade relations—recent agreements with Australia and the United Arab Emirates reflect this— to entice investment from businesses looking to expand outside of China.

The Story:

As it seems the first time in India that an Indian car maker has written to the government backing phased cuts to 30%. India has Import taxes from 60% to 100%, the highest rate among all the countries. India has increased import taxes to protect domestic companies from international players. Companies have criticized India's high taxes, including Tesla Inc., which shelved entry plans due to the country's high tariffs.

A few weeks ago, Indian commerce minister Piyush Goyal firmly informed senior executives of firms like Maruti Suzuki, Tata Motors, and Mahindra that India needed to make some automobile offers to Britain. Commerce ministry clearly stated that if companies don't come up with a proposal on lowering taxes, the government will do it for them. India is attempting to strengthen its international trade relations to attract investment from companies looking to expand outside of China. Recent agreements with Australia and the United Arab Emirates reflect this effort.

PHARMA

Festival sales help lift demand for ethnic and occasion wear

The Story:

Retailers and analysts said that consumers celebrating the festivals and attending social gatherings have turned to ethnic wear in a big way.

According to Pal, apparel retail shrugged off the impact of the pandemic faster than most consumer segments. He added that sales for men's premium ethnic wear brands reported growth in the two quarters due to pent-up demand. "Consumers upgrading their wardrobes for the festivities and the wedding season are an important component, considering that large gatherings are back."

On Thursday, Redseer Strategy Consultants said fashion goods contributed 20% to the gross merchandise value (GMV) during festive online sales.

Fashion, as a category, grew three times compared to business-as-usual days, or non-sale days, during the first leg of the festive sales. In the first four days of the online sales starting late September, fashion goods posted a GMV of ₹5,500 crores.

TECH

Taiwan indicates that its semiconductor companies will adhere to new US rules on China.

The Story:

Taiwan Semiconductor Manufacturing Co. (TSMC), the largest contract chipmaker in the world and a significant supplier to businesses like Apple Inc., is located in Taiwan, a major chip-producing country.

According to the island's administration, Taiwanese semiconductor companies place "great importance" on following the law. They also indicated on Saturday that they would abide by new US export restrictions intended to stifle China's chip industry.

Despite the lack of formal diplomatic relations, the United States is Taiwan's main overseas ally and arms supplier. Next week, Taiwan's Economy Minister Wang Mei-Hua will travel to the US to address what her office called "concerns" about supply chains and geopolitical difficulties. She will visit US IT firms that are important clients of Taiwanese semiconductor manufacturers

Want More Bits?

Do vegans outlive meat-eaters in terms of lifespan?

The Story:

The vegan way of life has received praise throughout the last ten years as a remedy for many ills and problems, both on a macro and micro level. There is a prevalent notion that veganism can address the current issue. But does this hold true when it comes to human ageing? Do vegans live longer than meat-eaters?

The answer is NO. No diet can guarantee to slow down the ageing process, but there are several lifestyle adjustments that have been more or less shown to help avoid diseases and keep you healthier for longer. Depending on the kind of foods included in the vegan diet, there may or may not be an effect. Food that is rich in whole, minimally processed foods and vegan protein sources is probably preferable than processed meat alternatives.

"Vegan diets have been related to the lowering of risk for many chronic health diseases associated with heart, type 2 diabetes, certain types of cancer, and obesity," says Brooke Jacob, a registered dietician and program manager with Christiana Care. It is not surprising that vegans may live longer due to its potential illness prevention links as eating a vegan diet is connected to a lower risk of developing chronic disease. To be certain that vegans live longer than non-vegans, more research is required.