Monetrix

  I have always believed that India would be the next superpower after China. In retrospect, I have understood that my belief was on the rising working-age population of India that could earn money and spend accordingly on their needs and desires, resulting in robust domestic demand for goods and services. It is a good recipe for long-term economic growth. However, I have realized that advantages for India by having a large working population, compared to other young developing countries, would diminish after a decade. I wonder whether we would generate a good number of jobs for swathes of adolescents entering the workforce each year. United Nations Population Fund defines a demographic dividend as “the economic growth potential that can result from shifts in a population’s age structure, mainly when the share of the working-age population (15 to 64) is larger than the non-working-age share of the population (14 and younger, and 65 and older)". India reached this stage in 2005. It...

  We often believe that we are impervious to the subtle messages that we are bombarded with continuously. Isn’t it absolutely tempting to believe that we are people of our own making, that we make our choices because of our discernment rather than being brain-washed by certain narratives that play in the background of our lives tacitly without us even being able to pinpoint them for what they are?  In this article, we take a look at the business acumen of Marlboro. How it went from having a mere 1%  market share in 1964 to now being the global cigarette market leader. In fact it’s growth has been so phenomenal that its marketshare alone is now greater than the combined market share of its next 10 competitors. Sounds exemplary, doesn’t it? What would your conjecture be - how did they accomplish this seemingly impossible feat? What was their USPs. One thing seems for sure - their product must surely be different in some very significant way - isn’t it? Otherwise, why would ...

Intro, definition, and legalities: Predatory Pricing is the practice of employing below-cost pricing to undercut competitors in order to gain an unfair market advantage. In this method, the seller reduces its price to which other sellers cannot compete and are eventually pushed out of the market. Jio's initial pricing policy acts as a glimpse of predatory pricing strategy where it successfully reduced players in the market and established a competitive advantage to become the largest mobile network operator of India.   As per the Competition Act 2002, any abuse of the dominant position by a company in terms of partaking in unfair practices in the market is forbidden. This includes the application of predatory pricing to eliminate competition and increase market share. Currently, there has been no evidence to proclaim these discounting strategies like predatory pricing since no monopoly has been formed and the companies have not been entirely successful in wiping out the major ...

  Inflation in the Eurozone's 19 members accelerated in December, with consumer prices up 5% from a year earlier. Since the Eurozone was founded two decades ago, headline inflation has been at an all-time high. In comparison to the previous month, prices were up 0.4 percent. Furthermore, when volatile food and energy costs are eliminated, core prices rose 2.6 percent year over year in December, a new high. In comparison to the previous month, core prices increased by 0.4 percent. The key reason for the disparity between headline and core inflation was the 26 percent yearly increase in energy prices. Germany had 5.7 percent annual inflation, France had 3.4 percent, Italy had 4.2 percent, Spain had 6.7 percent, the Netherlands had 6.4 percent, Belgium had 6.5 percent, and Ireland had 5.7 percent. The reversal of the pandemic-related cut in the value-added tax has contributed to Germany's extremely high inflation rate (VAT). The government of the eurozone's largest member decr...

  The European Commission has been facing severe backlash over its latest draft proposal of including investments in gas and nuclear energy, under the bracket of "transitional economic activities" in the EU Taxonomy. Several experts and climate activists believe this decision will adversely affect the European Union's climate goals due to greenwashing and a divided financial market To better grasp this situation we must first understand what the EU Taxonomy is. The EU Taxonomy is a classification system that provides a list of environmentally sustainable economic activities. It thus makes it easy for environment-conscious investors and policymakers to make better decisions and provides a roadmap for companies to align their operations in a more sustainable direction. The environmental objectives that the taxonomy lists are climate change mitigation, climate change adaptation, sustainable use and protection of water and marine resources, transition to a circular economy, p...

  41% of the working population is planning to switch jobs this year. 95% of Americans are thinking of quitting their current jobs this year. The world is in the middle of a “Great Resignation”. This term was coined by Anthony Klotz. He calls this trend “A pandemic epiphany”. So, it becomes important to understand – why are people leaving their jobs? Where are they going? And should you consider quitting too? We will try to understand all of this through this article. Let’s start with some statistics. Microsoft conducted a survey and found that 4.3 million people quit their jobs in August 2021 in the USA which is 2.9% of America’s working population. Additionally, 20 million Americans have left their jobs since April 2021. Data from the OECD countries shows that in 38 member countries at least 20 million workers have not returned to work since the pandemic struck. In India, in the technology sector, the attrition rate has risen by 23%. Not everyone is leaving because of unemploymen...

  The Reserve Bank of India (RBI) issued a framework on Monday to permit small-value digital payments in offline mode via any channel or instrument, including cards, wallets, and mobile devices. Offline digital payment does not require internet or telecommunications connectivity. So, even if someone is in a rural region and does not have cash or internet connectivity, he can still use their mobile phone or wallet to buy something or make a transaction of up to Rs 200. This new framework aims to stimulate digital transactions in rural and semi-urban areas. It permits offline payments of up to Rs 200 per transaction, subject to a cumulative limit of Rs 2,000. How will the new payment system work? In the offline mode, payments can be done face-to-face via any channel or instrument such as wallets, cards, and mobile devices. The Reserve Bank of India noted that these transactions will not require an additional factor of authentication (AFA) and that because the transactions will tak...

  The merger of the homegrown brand Zee Entertainment Enterprises (ZEEL) and Japanese conglomerate Sony’s Indian arm Sony Pictures Networks India (SPNI) is an iconic moment for the Indian Television Industry. It is believed that this merged entity will be India's largest entertainment broadcast network that may do very well in different business verticals. Through this article, we will explore whether this merger will turn out to be profitable considering the risks involved. Background SPNI and Zee Entertainment announced a merger on 22 September 2021, with a 90-day period to conduct due diligence for the process and the process was to come to an end on 21 December. SPNI shareholders to enjoy 52.93% stake while Zee will acquire 47.07%. Additionally, Punit Goenka will continue to be the Managing Director and CEO of the firm. The term sheet also includes a clause that Zee’s promoter family is free to increase its shareholding from the current 4 percent to up to 20 percent.   Inv...

  The "gig economy" is all the rage these days, and it employs a rising number of people. The name may appear to have been coined recently, but it isn't. Previously, the gig economy was called the agile workforce, the freelance economy, or even temporary labour. For millions of people nowadays, working for a single business or being on the payroll is no longer an option. Instead, they juggle a variety of sources of revenue and work on a project-by-project basis. The majority of individuals desire to leave their 9-to-5 jobs behind. Some people have successfully made the move from 9 to 5 jobs to gig jobs. But what is the gig economy, and who does it employ? The gig economy is a market system in which businesses hire people for a limited time. Short-term freelancers who have no geographical limits in terms of proximity to those who employ them make up the gig economy. In contrast to the traditional economy, where businesses hire long-term salaried employees who work for a si...

  As we move into the new year, it is only fair that we look ahead and paint a picture of how the world will change again this year, and on that front, nothing is more exciting than the waves of excitement created by “the Metaverse”. Something right of a science fiction movie (Read: The Matrix), a virtual world in the clouds, is touted to become reality soon enough. Meta (erstwhile Facebook) brought the concept of a parallel world based on virtual reality into the forefront with its surprising rebranding and pivoting exercise in 2021, and for them India will be the largest market with a population of 140+ crores, with ~70 percent of which in 15-64 age bracket. Combine it with ever increasing penetration of cheap internet and smartphones we might witness the war of the worlds (but virtual) soon. Partly due to the pandemic and breakneck innovation in the tech world, the world is looking to adopt the metaverse faster than expected and it might be long before it becomes a household pre...

  Although the acronym of ESG has been in trend for quite a while, its importance has increased tremendously over the course of one year due to the pandemic. The governments and the businesses have realised that unless adequate attention is paid to the concepts of sustainability, growth and development will be elusive for future generations. The increased popularity in India led to oncoming of ESG funds and as of 2021 almost 8 mutual fund schemes focussed on ESG are available to investors. The following article will try to dig deeper into the topics of ESG and Impact Investing and try to find out whether they have any impact on operational efficiency or is it just limited to a good image of the company in the minds of public. ESG and Impact Investments though used interchangeably have significant differences. ESG stands for Environment, Social and Governance factors and hence extends beyond investments bringing about a positive change in the world. It also includes the measures tak...

Imagine a scenario in which we let you know that banking as far as you might be concerned could change for eternity. Imagine a scenario where we let you know that cash as you probably are aware could change until the end of time. Sounds insane? In any case, that is the thing Joe Biden's up-and-comer, running for the top of the Office of the Comptroller of Currency (OCC) of the United States, is proposing. A reality where banking is rethought.  The Present   Banks resemble go-betweens of the monetary world. They take stores from individuals who have overabundant cash. Also, they give it to individuals who are hoping to get it. They pay low interest to the contributors and gather exorbitant interest from the borrowers. This edge is how banks procure. Basic? If by some stroke of good luck things were so basic truly. Let's assume you have Rs.10,000 in your stash. However, at that point, you went over this piece on expansion by ReadOn. An acknowledgment first lights upon you: you...