Author: Akanksha Upadhyay

Leaner but meaner? Global corporations axe jobs to correct ‘over managing’, save costs

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In the latest upheaval, Tesla has announced a 10% reduction in its workforce globally. This announcement comes against the backdrop of a cascade of layoffs by major corporations over the past year and into this year, all in pursuit of greater flexibility and agility in what seems to be an unforgiving environment of high-interest rates, looming recession fears, and growing dominance of artificial intelligence.

The tech sector, for instance, bore the brunt of over 250,000 job losses in 2023, with industry giants like Alphabet, Accenture, Meta, Microsoft, and Amazon announcing workforce reductions. The trend continued into 2024, with 50,000 tech jobs slashed by March across major players.

Restructuring was seen across various sectors, with the likes of Apple, Amazon, Dell, IBM, Credit Suisse, Barclays, Spotify, Unilever, Disney, Novartis, and Mckinsey cutting jobs.

The buzzword among these global juggernauts appears to be ‘leaner,’ as they look to trim excess layers. Mark Zuckerberg, for one, articulated that the layoffs were aimed to make the company leaner, and more technically proficient to bolster business performance. Elon Musk echoed similar sentiments at Tesla, framing the layoffs as preparations for the next growth cycle, envisioning a leaner, more innovative, and hungry organization.

Similarly, most recently Bayer, with nearly 100,000 employees, unveiled plans to revamp its structure to enhance flexibility, efficiency, and innovation. This restructuring, which includes simplifying its 1,300-page rulebook, seeks to dismantle rigid hierarchies to empower employees and enhance decision-making.

While companies strive for heightened competitiveness, many decisions are also spurred by weakened financials. Tesla, grappling with intensified competition in the EV market, witnessed an 8.5% decline in deliveries in the first quarter.

While Bayer’s stock plummeted over 50% in the past year, burdened by litigations stemming mainly from its 2018 acquisition of Monsanto for $63 billion and a hefty net debt of 35 billion Euros.

Looking ahead, industry observers predict 2024 to be equally tough in terms of job losses, with AI as a major variable.

Reports indicate over 4,000 jobs have succumbed to AI since May last year and into 2024. Notable instances include Google’s workforce reduction by 6% in January 2023, driven by pressure from Microsoft and OpenAI’s offerings on its core search engine domain. More so, Google also cut ‘hundreds’ from its sales team earlier this year as its ad division transitioned to AI-powered sales.

On a similar note, software giant SAP unveiled a $2.2 billion restructuring initiative this year, slated to affect 8,000 jobs, as it pivots towards AI-driven business domains. Other companies embracing AI-driven restructuring this year itself include MSN, Ikea, Salesforce, and others.

Lastly, as uncertainties ranging from geopolitics to interest rates and AI continue to loom large, the trend of restructuring shows no signs of abating. With notable giants such as IBM, Dell, Vodafone, Mattel, and Ericsson, Nike already making announcements regarding job cuts this year, it appears that further reshaping across the corporate landscape is imminent.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vodafone Idea raises ₹5,400 crore from anchor investors for infrastructure expansion and 5G rollout

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Vodafone Idea, on Wednesday, said that it has successfully secured ₹5,400 crore from 74 anchor investors. Notable among these investors are GQG Partners, The Master Trust Bank of Japan, UBS, Morgan Stanley Investment Management, Citigroup Global Markets, Australian Super, Fidelity, Quant, and Motilal Oswal.

Allocating 491 crore shares at Rs 11 per share, the telecom company granted the highest share percentage, 26 percent, to GQG Partners, totalling Rs 1,345 crore. Fidelity Investments also made a substantial investment of about Rs 772 crore in the FPO. Additionally, Troo Capital and Australian Super joined in, committing Rs 331 crore and Rs 130 crore, respectively.

A significant portion, approximately 16.2 percent amounting to Rs 874 crore, was allocated to domestic mutual funds, with Motilal Oswal Midcap Fund leading with a Rs 500 crore investment.

This fundraising initiative precedes Vodafone Idea’s ambitious plan to raise Rs 18,000 crore through India’s largest follow-on public offering, set to commence on Thursday, April 18, with the offering concluding on April 22.

The capital raised from this FPO will be earmarked for strategic endeavours, including the establishment of new 5G sites, expansion of the existing 4G network, and deferral of spectrum payments, as outlined in its red herring prospectus (RHP). Of the total FPO proceeds, a substantial portion, Rs 12,750 crore, will be channeled into enhancing network infrastructure, including the setup of new 4G sites, expansion of existing ones, and establishment of new 5G sites.

In the coming fiscal years, Vodafone Idea intends to set up 10,000 new 5G sites in FY25 with a budget of Rs 2,600 crore, followed by 12,000 additional sites in FY26, with a budget of Rs 3,120 crore. The company aims to cover subscribers accounting for 40% of its revenue with 5G services within the next 24-30 months, with initial rollouts expected in select areas within 6-9 months of funding acquisition.₹

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Right to sleep is basic requirement, person summoned under PMLA cannot be deprived of this: Bombay HC

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Bombay High Court expressed strong disapproval of the late-night interrogation tactics employed by the Enforcement Directorate (ED), emphasizing the fundamental importance of the right to sleep and its connection to human rights. The court, comprising Justices Revati Mohite-Dere and Manjusha Deshpande, made these observations while addressing a petition brought forth by a 64-year-old individual accused under the Prevention of Money Laundering Act (PMLA).

The petitioner, a resident of Gandhidham, Gujarat named Issrani, was arrested in August 2023 on charges related to money laundering. Through his legal representatives Vijay Aggarwal, Ayush Jindal, and Yash Wardhan Tiwari, Issrani sought to challenge the legality of his arrest before the Bombay HC. The advocates argued that Issrani’s rights were violated during his interrogation, highlighting instances where his personal liberty was restricted, his mobile phone confiscated, and he was continuously monitored even during restroom breaks.

According to Aggarwal’s submissions, Issrani was subjected to interrogation throughout the night despite being medically unfit and having cooperated in previous investigations. This extended questioning period, which lasted until the early hours of the morning, infringed upon Issrani’s fundamental right to sleep, a component of the right to life guaranteed under Article 21 of the Indian Constitution.

The court took note of the timeline, noting that Issrani’s statement was recorded from 10:30 p.m. until around 3:30 a.m., after which he was arrested at 5:30 a.m. The bench criticised the practice of conducting interrogations during late hours, emphasizing that individuals summoned under the PMLA should have their statements recorded during reasonable, “earthly” hours. The court underscored the adverse effects of sleep deprivation on physical and mental well-being, highlighting its impact on cognitive function.

In response to these concerns, the court directed the ED to establish guidelines for conducting interrogations within reasonable hours and issued a stern reminder that consent does not justify the deprivation of an individual’s right to sleep. The bench scheduled a follow-up hearing for compliance on September 9th.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Sugar for ethanol to continue, no retail price hike despite costlier edible oil imports: Food Secretary

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

With India planning to achieve 20% ethanol blending in fuel, Food Secretary Sanjeev Chopra has told CNBC TV18 that sugarcane will continue to be diverted for ethanol. He said that closer to the 20% target, 50% of ethanol will be derived from sugarcane and another 50% will be derived from maize and damaged foodgrains.

With a 5.5% year-on-year inflation noted in sugar, he stated that there are no supply side shocks and sugarcane farmers are also getting their dues on time. He termed the diversion of eight LMT more sugarcane for ethanol as good news for the industry, up from 17 LMT earlier.

Assuring no supply-side hurdle for imported edible oil despite a rise in global prices, he described the rise as “temporary” in view of labour shortages in Malaysia and Indonesia and the Muslim holy month of Ramzan.

While he attributed the rise in freight prices of sunflower oil imported from Europe to the Red Sea conflict which prompted shipments to come across the Cape of Good Hope in Africa, Chopra said that the industry absorbed the rise in cost and no impact was seen on retail prices.

In a move which will insulate India from price shocks in these commodities, he said that the Agriculture Ministry is already working on a plan to make India self-sufficient in pulses & oilseeds in the next few years.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Elon Musk says users may have to pay for liking, saving and replying to posts on X

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk may charg e new users on X, formerly known as Twitter, a nominal fee for liking, posting, replying, and even bookmarking tweets. This development was first brought to light by the X Daily News account, which noticed alterations in the platform’s text indicating the introduction of a yearly charge for new users.

This payment policy was initially implemented in New Zealand and the Philippines, reportedly aimed at reducing spam bots and enhancing user experience. Musk defended this move, citing the necessity to combat the influx of spam bots, which can easily bypass current AI-based checks. He also highlighted how fake accounts occupy valuable usernames, limiting options for genuine users.

However, Musk didn’t delve into specifics regarding how Twitter plans to implement this change effectively to deter spam and fake accounts. Critics argue that spammers may just pay the fee or create multiple accounts, undermining the intended purpose. Additionally, the prospect of a paywall might deter potential users who prefer free alternatives.

The anticipated cost for this service is around $1, given its equivalent of $1.75 in New Zealand currency.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Indian mission in Israel issues advisory amid ongoing Iran-Israel tensions

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Indian mission in Israel issued a new “important advisory” on Sunday following attacks on Israel by Iran and its proxies, urging Indian nationals to remain calm and adhere to safety protocols. Iran retaliated with 330 missiles and drones after an alleged attack by Israel on an Iranian diplomatic site in Damascus, resulting in casualties, including two commanders.

The advisory, posted on social media, stressed the need for Indian nationals to follow safety guidelines issued by local authorities and register with the embassy. The mission assured close monitoring of the situation, liaising with Israeli authorities and Indian community members for the safety of all nationals.

Friday’s advisory had already cautioned against unnecessary travel and advised maintaining calm amidst mounting tensions. Despite the attacks, no evacuation measures have been taken yet by any country, including the US, which issued advisories.

While educational institutions have suspended activities until Monday, most government offices and businesses operate normally under Home Front guidelines. Israel’s Defence Forces intercepted 99% of the projectiles, but the threat persists, according to IDF.

Iran warned of larger retaliation if Israel responds, threatening US bases in support of Israeli military action. The US, France, Britain, and Jordan assisted in intercepting Iran’s attacks. Prime Minister Benjamin Netanyahu expressed gratitude, asserting collective defence.

Hamas called the Iranian attack a “natural right”. Iranian threat had led to worldwide diplomatic initiatives to thwart a possible further conflagration in the region already struggling with Israel’s offensive in Gaza following a terror attack carried out by Hamas in its territory on October 7 and also regular exchange of fire between the Jewish state and Lebanese Shia faction Hezbollah, which joined the war in solidarity with Hamas.

Iranian proxies, including the Houthis in Yemen, have targeted Israel and its allies, disrupting global trade routes. Analysts speculate US reluctance to support Israeli retaliation amid election preparations, fearing oil market volatility impacting President Biden’s re-election prospects.

With inputs from PTI

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BJP’s Sankalp to take India into top three global economies in next 5 years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The BJP’s election manifesto has reiterated the party’s commitment to make India the third largest economy in the next fiveyears. To achieve this goal, the manifesto lists series of commitments in the manufacturing and infrastructure space , giving a a sense of continuity to the economy.

Low inflation, high growth & fiscal prudence will continue to guide the economic trajectory while efforts to build India as a “trusted global manufacturing hub”, especially in the electronics, defence, mobile, automobiles sectors will continue.

Manufacturing hub

The manifesto speaks about India becoming a “product nation’ by building on engineering and design services.

The manifesto also talks about developing robust industrial infrastructure based on the principles of PM-Gatishakti, and encouraging core industries of steel, cement, metals, and engineering goods to adopt a greener manufacturing process.

The manifesto reiterates building a globally competitive food processing industry covering the entire food supply chain, from farm to table. “We will position Bharat as a major player in value chains of processed fruits, vegetables, fish, seafood and dairy, among others”, the manifesto says.

Among the key commitments the manifesto highlights, making India a global electronics manufacturing hub by 2030, positioning India as a global railways manufacturing hub, a major player in semi con and chip manufacturing, a global leader in auto and EV manufacturing, a global leader in textile manufacturing , strengthening India’s position as Pharmacy of the World & making India an aviation manufacturing hub globally and making India the largest producer of lab grown diamonds.

For achieving this the manifesto also proposes revamping the commercial and tax legislations. The manifesto says, “We have substantially simplified the indirect and direct tax systems ….We are now committed to launch an exercise to completely revamp our economic and commercial legislations to suit our economic needs”.

Infrastructure

The infra space talks about continuing to add 5000+ of new railway tracks every year, substantially increasing passenger carrying capacity so that by 2030 there are no waiting lists, expanding Vande Bharat, Amrit Bharat and Namo Bharat trains, new sleeper Vande Bharat trains, expanding the redevelopment of railway stations to all major and medium sized stations, expanding the metro network to more cities network and 1 more bullet train each for south, north and east India . The manifesto says, “We are constructing the first Bullet Train corridor in the country. Using the experience gained so far, we will initiate feasibility studies for Bullet Train Corridors in North, South and East India”.

Similarly, increase the fleet of EVs and charging stations, expand PM Gram Sadak Yojana, constructing ring roads around major cities., expanding the number of international airports, and formulating a master plan for airport transformation to position India as the leading aviation ecosystem in South Asia are some of the key highlights for the roads and aviation sector.

For digital infrastructure, the BharatNet programme will be expanded to every village with broadband for high speed internet access and next generation ‘Land Record Digitization’ will be undertaken.

Under energy security the manifesto commits to reducing petroleum imports through a mix of electric mobility, network of charging stations, renewable energy production by 2047; increasing ethanol blending in petrol ; targeting 500 GW of renewable energy through the establishment of mega solar parks, wind parks and the Green Energy Corridor project ; incentivising private sector investment in large-scale Battery Energy Storage Systems (BESS); increasing green hydrogen production capacity and positioning India as the global manufacturing hub in renewable energy.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BJP aims to transform India’s aviation sector, make it an international hub for South Asia

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Bharatiya Janata Party (BJP), which is aiming for a third term in the upcoming Lok Sabha elections, on Sunday released its poll manifesto – the Viksit Bharat Sankalp Patra, aimed at transforming the nation in the coming five years.

With a focus on development across sectors, the BJP eyes further progress, particularly in aviation. In the past 10 years, PM Narendra Modi and Union Civil Aviation Minister Jyotiraditya Scindia have talked about how the BJP government has provided a fillip to India’s aviation sector.

Scindia at various events highlighted that in the last decade, the number of airports and aerodromes has surged by approximately 70, totalling 140. However, in its 2024 manifesto, the BJP envisions greater strides, emphasising development, modernisation, and transformation as the pillars for growth over the next five years.

BJP in its manifesto has aimed to make India an international aviation hub for South Asia. The BJP has identified four key moves to transform the sector if voted back to power for the third time.

Developing Airports for Seamless Connectivity – Enhance air connectivity multifold by developing and operationalising new airports, helipads and aerodromes.

Ensuring the Modernisation of Airports – Transform airports into multi-modal hubs with integrated transit facilities such as buses, metro and rapid rail among others by effective use of PM Gatishakti National Master Plan.

Expansion of International Airports – In line with our vision for enhanced connectivity and economic growth, we will expand the number of international airports.

Formulating a Master Plan for Airport Transformation – We will introduce the Amrit Kaal Civil Aviation Master Plan to transform our airports into regional international hubs, providing single-point connectivity to designated regions worldwide, with the vision to position Bharat as the leading aviation ecosystem of South Asia.

With initiatives like the UDAN scheme or Ude Desh ka Aam Nagrik Scheme, which is in its 5.2 avatar, promoting regional air connectivity and investments in Greenfield Airports, BJP remains dedicated to aviation expansion. Projects like the MOPA Airport in Goa, Noida International Airport, and Navi Mumbai Airport are underway, providing increased options for travellers in major cities.

PM Narendra Modi, BJP President JP Nadda, and Union Ministers Amit Shah, Rajnath Singh, Nirmala Sitharaman, and S Jaishankar, were present at the manifesto launch at BJP’s headquarters in Delhi.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Bottomline: Why you should invest in gold

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Gold does glitter. And returns from the yellow metal historically haven’t been the kind to scoff at. So, while equities and debt are good assets to consider while building a portfolio, gold too deserves some allocation not just from a diversification perspective, but also from a currency risk mitigation point of view.

But let’s first look at a few key characteristics of gold as an asset class.

Gold and inflation don’t sync

We ran the numbers to check if the value of gold bears any correlation with consumer price inflation in the long run. It doesn’t. Gold spot returns in USD when compared to Consumer Price Inflation (CPI) data in the U.S. show low correlation with a reading of 0.4, while gold spot prices in INR display an even lower correlation with our CPI data at 0.1. So, to suggest that gold prices go up when inflation goes up and vice versa may not be correct.

GOLD A HEDGE AGAINST INFLATION

Gold, however, has helped protect investors against inflation. While inflation in the U.S. over a 46-year period grew at a compounded 3.4%, gold appreciated by 5.6% leading to a 225 basis points real return. Even in India, gold spot in rupee terms has generated a healthy return of over 10% over 45-year and 27-year periods, while inflation has grown at a tad over 6% over the past 27 years. That’s a near 400 basis points real return.

So, investing in gold has historically helped combat inflation.

Gold vs Equities

Interestingly enough, gold and equities are positively correlated. Running the numbers on gold and the S&P500 (since 1984) and gold and the BSE-Sensex (since 1997) reveals a very high level of correlation between the two of about 0.9. So, the likelihood of gold gaining ground at a time of a bull run in equities is quite high.

This could be due to liquidity effects—a rise in liquidity is likely to lead to a rise in investment asset values. In terms of returns, the S&P500 has delivered a CAGR of 8.7% over 40 years, higher than the 4.9% return for gold. The BSE-Sensex too has delivered a return of 12% over 27 years, compared to about 10% for gold. The narrower spread in INR is due to the dollar effect, with the rupee seeing an erosion in value. Hence, the returns for gold in INR are higher than in $ terms.

Also, when comparing returns with equities, we must note that these aren’t necessarily similar across all periods. For instance, gold is up 103% since 2019 while the BSE-Sensex has gained only about 82%.

So, there are times when equities will outperform gold and times when the reverse will happen. Having some of your eggs in both baskets can thus help you ensure healthy returns across periods, and beat inflation.

Happy investing!

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

BJP manifesto promises to double the size of Mudra loans to ₹20 lakh for each person

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

In a poll pitch for MSMEs, the BJP manifesto released earlier on Friday promised to double the size of Mudra loans to ₹20 lakh for each individual. Promising easy access to working capital using Digital India Infrastructure, simplification of compliances and laws, and the GST portal include the promises made for MSMEs and small entrepreneurs.

The manifesto has also promised affordable insurance products for small traders to protect against losses from disasters and accidents like fire and theft, along with the expansion of Dak Ghar Niryat Kendras to provide easy export facilities.

The Pradhan Mantri MUDRA Yojana (PMMY) was launched by Prime Minister Narendra Modi on April 8, 2015, to provide loans up to ₹10 lakhs to the non-corporate, non-farm small/micro enterprises.

Classified as MUDRA loans under PMMY, these loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs and NBFCs. Under the aegis of PMMY, MUDRA has created three products, namely ‘Shishu’, ‘Kishore’ and ‘Tarun’ to signify the stage of growth/development and funding needs of the beneficiary micro unit/entrepreneur.

Starting from 3,48,80,294 loans sanctioned with an amount of ₹1,37,449.27 crores in FY 2015-16, 6,53,65,427 loans were sanctioned in FY 2023-24 with a total amount of ₹528412.93 crores.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow