Monday, 13th July ’20
Good morning, an exciting new week awaits you. And with the same promise, we bring to you, a revised more precise, and more entertaining version of The Morning Tea.
We will bring you one detailed analysis for the day along with “The Millionaire Mindset” section which will be the goto space for all students and professionals to get inspired and boost themselves in their personal and the corporate life.
MARKETS
- Economy: Industry body FICCI found in its Economic Survey that India’s projected annual median GDP growth rate would be at a negative 4.5% for 2020-21. This marks a sharp slowdown from its previously predicted positive 5.5% in Jan ‘20.
- Trade: Indian ambassador to the US, Taranjit Sandhu, commented that India-US are looking for a small trade deal as India has walked out of Regional Comprehensive Economic Partnership(RCEP). This could mark the beginning of multiple FTAs between the two countries.
- Markets: As the spike in Corona cases continues, the markets remain buoyant. This is going to be a volatile week as earning announcements have started to come out and a washout quarter for most industries.
TECHNOLOGY & INNOVATION
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- Foxconn to invest up to $1 billion in a factory near Chennai, where they plan to expand as they move away from China. Foxconn, a Taiwanese contract manufacturer assembles Apple iPhones in this factory. This is a slow and gradual production shift of Apple from China amidst trade war between the US and China and the corona crisis.
- WeWork chairman Marcelo Calure is confident of positive cash flow by 2021. WeWork is a Softbank backed company. They have recently reduced their workforce by 8000 people, renegotiated leases and sold off assets to reduce its cash burn to further shed costs.
- Amazon sent out a memo to its employees banning the usage of TikTok. The same day, 5 hrs later, they retracted and said that it was sent out in error. Market analysts believe that a point has been made and usage of TikTok and security concerns continue to linger.
WHAT ELSE IS COOKING
India moves up a rank to become the second-largest FDI source for the UK : With the US in the first place, India comes next in line for foreign investors for the UK. India has invested in 120 projects and created 5,429 jobs in the UK. India is followed by Germany, France, China and Hong Kong. The US has delivered 462 projects and 20,131 jobs there.
Russian University successfully completes the human trials of world’s first coronavirus vaccine: Russia’s Sechenov University has completed the trial of the vaccine developed by the Gamaleya Institute, an epidemiology research centre in Moscow. The Russian Ministry of Health had sanctioned the trial on June 16. The first group of volunteers would be discharged on July 15 and the second group on July 20.
Qualcomm Ventures to invest in Jio platforms: The investment arm of Qualcomm Incorporated will invest Rs. 730 Cr in Jio platforms for a 0.15% stake. This will take the total investment in Jio platforms to Rs 1,18,318.45 crore for a combined 25.24 % holding, making Qualcomm Ventures the 12th investor for RIL. This development will further help in Jio’s betting on 5G for propelling the next set of services.
MONDAY ANALYSIS
SVEP Project – India’s promising rural job creator
Why in the news?
Start-up Village Entrepreneurship Programme has generated 1.33 lakhs jobs in 2 years. Ministry of Rural Development’s data revealed that over 64,000 rural enterprises were formed under the programme in 2018-19 and 2019-20. Kerala topped the chart with 8816 establishments, followed by Madhya Pradesh and Bihar, while Assam, Manipur, Mizoram and Uttarakhand showed none.
What is SVEP?
It is a sub-scheme under the National Rural Livelihood Mission of MoRD that aims to help rural households, including women, to set up enterprises. Its long term vision is to support start-ups to 1 Cr village enterprises and provide direct employment to 2 Cr people.
How does it aim to achieve the objectives?
- Develop local resources by training a pool of village level community cadre
- Help the rural entrepreneurs to access finance for their establishments
MORNING TEA BREAK- Upcoming Week Watch
- Google may launch the new Nest smart speaker today which has been rumored for a while now. From the Fred Armisen video teasing a mysterious product announcement hints at a meditation feature.
- Investors will watch next week’s earnings from BlackRock, the world’s largest asset manager to get an indication of the extent of the second quarter’s rebound. The performance of asset managers tends to be tied to how markets fare
- Investors are expecting big-ticket announcements from the RIL AGM, furthering the Make in India initiative apart from the recently launched JioMeet. There will be clarity on the $15-billion deal with Saudi Aramco and how RIL became a net debt-free company after it raised a vast sum from global investors, including Facebook.
THE MILLIONAIRE MINDSET
Knowledge Check – A value proposition is a statement which identifies clear, measurable and demonstrable benefits consumers get when buying a particular new product. Identifying the value proposition begins with the marketing mix: the product, price, place of sale and promotion strategy. Analyses are done on how different the new product is from the organization’s current offerings and how it fares against the competition.
Practice: An achiever always has his health as a priority. Identify what works our best for you. It could be a walk with nature or zumba or air boxing. Find a way to keep yourself in a good shape for that’s what winners do. A minimal workout in your routine are followed by all top CEOs including Google’s Sundar Pichai and Apple’s Tim Cook.
Check it out – Pocket is an app where you file away interesting reads for another, less busy, time of the day.
Written by Kumar Sourav Mohanty, Akansh Bhatt, and Shashank Dobhal