India’s ambitious target, Uber falls in line, Samsung’s bad news and more
Business new and insights in under 5 minutes
“Failure defeats losers, failure inspires winners.”
- Robert T Kiyosaki
Good morning! 😀
Today’s main stories:
India’s ambitious climate target
US Fed pledges to continue ultra-easy monetary policy
Uber UK falls in line
📈 How did the markets fare
BSE Sensex - 49,801.62 | -1.12% ⬇
NSE Nifty - 14,721.30 | -1.27% ⬇
10-Yr Bond Yield - 6.185% |+0.005 ⬆
S&P 500 - 3,974.12 | +0.29% ⬆
USD/INR - ₹ 72.54 | -0.01% ⬇
Indian stock markets fell sharply yesterday, leading to a loss of Rs 3.5 lakh crore for investors. Increasing Covid-19 cases weighed on investor sentiments.
The Rs 824-crore IPO of Craftsman Automation was subscribed 3.8 times while the Rs 600-crore IPO of Laxmi Organic Industries was subscribed 106.74 times on the final day.
📰 What's happening around us
Economy
India to lead the world on climate change? More than a hundred countries have pledged to achieve carbon neutrality by 2050 and India, the third-largest polluter in the world, could surprise the world by adopting the same target or even a more ambitious one – net-zero emissions by 2047, a hundred years after the country achieved independence. Top government officials are mulling the decision according to a Bloomberg report.
The Paris climate accords had acknowledged that developing countries should be given different targets, allowing poorer countries to use fossil fuels for a bit longer to help them achieve the prosperity which the West has enjoyed for decades. China, the world’s largest polluter, drew much praise last year when they announced a 2060 net-zero emissions goal. Now India is considering beating China by a whole decade.
It will not be an easy task for the heavily coal-dependent economy. The government had set a very ambitious target of expanding renewable power capacity to 450 gigawatts by 2030, almost five times the current capacity. But India may have to set even more aggressive targets and find solutions to reduce emissions in a number of ‘hard-to-do’ sectors to reach the net-zero goal.
World leaders will meet on April 22 for an Earth Day summit and India’s decision to meet a 2050 deadline could be heavily influenced by developments at the summit and pledges by other nations.
International
US Federal Reserve Chairman Jerome Powell sought to reassure financial markets at the central bank’s latest policy meeting, reiterating the Fed will continue with it’s ultra-easy monetary policy for the foreseeable future while brushing aside inflation fears. He pledged to keep interest rates near zero till the end of 2023 and continue “printing” $120 billion a month until employment and inflation targets are met.
The massive additional $1.9 trillion stimulus package and prospects of a quick economy recovery as the vaccine rolls out had stoked fears of inflation over the past few weeks. Investors were worried this could lead to the Fed raising interest rates earlier than expected and tightening its monetary policy.
However, the Fed expects the inflationary pressure on the economy to be temporary and upgraded forecasts for economic growth to 6.5% in 2021, up from an earlier projection of 4.2%. Let’s hope the Fed’s decision to throw money at the problem won’t lead to the world economy overheating.
International
In a move that could have a far-reaching impact on the gig economy, around 70,000 Uber drivers in the UK will now be treated as workers and not independent contractors, a classification that will enable drivers to receive minimum wage, vacation pay, and pension. The announcement comes a month after Uber lost a five-year-long legal battle in the UK over drivers' status.
Uber said the minimum wage will be based on time after a trip is accepted and after expenses. The time waiting for a trip will not be calculated. This definition has not gone down well with some drivers who feel they will be short-changed to the tune of 40-50% and could lead to more tensions between both.
The development is unlikely to stay UK-only for long as gig workers around the world, boosted by the court ruling, will seek similar rights. Less than 24-hours after Uber’s announcement, unions in Australia have started calling for immediate reforms in the country.
In India, Uber drivers on various occasions have banded together to negotiate for better pay and other benefits with little or no success. In the 2021 Budget, the government had extended the law mandating minimum wage and other social security safety nets to cover platform and gig workers as well. Will that mean your food deliveries will become more expensive? We’ll have to wait for further developments.
🎯 News Bites
India going the Aussie way? Highlighting that traditional media is going through its worst phase in recent history, Rajya Sabha member Sushil Modi suggested that India implement a law to ensure social media sites share revenue with electronic and print media for using their content.
The Indian government has notified the vehicle recall policy for manufacturers which will come into effect from April 1. According to the policy, depending on the number and type of vehicles that have to be recalled for defects, the government can impose a fine of Rs 10 lakh to Rs 1 crore.
Bad news for Samsung fanboys. Grappling with the global chip shortage, the smartphone maker is staring at the possibility of skipping the introduction of one of its best-selling models, the Galaxy Note this year.
The crowded TV market gets another player. Xiaomi India has launched new Redmi smart TVs in sizes ranging from 50 inches to 65 inches. It will be up for sale from 26 March.
BMW unveiled its first all-electric sedan, the i4, which is expected to go on sale later this year in the US. The German automaker plans to have 25 electrified cars in its lineup by 2025.
That's it for today. Have a good day!
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