Blogs

Amazon sales surge amidst online boom

  Amazon’s sales for the Jun 20 quarter jumped by whopping 40% Proving to be one of the biggest beneficiaries of the COVID-19 pandemic   The global leader in online retail – Amazon has reported blowout second quarter earnings, including a huge beat on the top line with double-digit revenue growth year-over-year, helped by surging sales volumes amidst the coronavirus...

Downfall of United States economy amidst the pandemic

  Overview of the United States economy during the lockdown restrictions. Sector-wise contractions as a result of economic downturn emanating from subdued economic activity. Recovery of the economic activity post ease of lockdown restrictions.   In 1958, the Gross Domestic Product (GDP) of the world’s largest economy- United States declined by 10 percent amidst...

Whilst the retail sector is baffled by the Covid-19 pandemic, online fashion retailers’ boom

Online apparel & accessories retailers flourish despite the pandemic The road ahead The spread of the Covid-19 virus has seen varied sectors across several economies practically come to a halt. While governments globally have had to enforce shutdowns in an attempt to contain the spread, the slow-down in retail activity has only battered their economies. Globally, and...

The rise of Instacart- Online Grocery Delivery Services

  Surge in online grocery delivery in the US amidst Covid-19 Growth of Instacart   Thousands of businesses across industries are forced to shut down, work with reduced operations or announce partial closures due to outbreak of Corona virus in the US and around the world. Nevertheless, one sector that has seen an exceptional growth during these tough times is online...

Tesla: The new King of auto industry

  How Tesla managed to become the most valuable auto company globally? Tesla’s innovation is defining new era for the global auto industry   Formed merely 17 years ago, Tesla has now become the world’s most valuable car company with USD ~300 bn in terms of valuation. The company has not just created battery-powered electric vehicles that are overtaking old-school...

Silver prices explode in the month of July: Overview and Outlook

  Silver prices at Spot and futures market move to multi-year highs Safe haven demand amidst the Coronavirus pandemic driving gains in Bullions Physical and institutional demand stay strong for the commodity     Bullion prices have been on the tear for the last few months with prices of both Gold and Silver registering strong performance in the futures and...

UK economic fallout amidst the Covid-19 pandemic: Is the worst behind?

  Overview of the UK economy Sector-wise analysis as a result of the economic downturn Recovery in economic activity post ease of lockdown restrictions   The sixth largest economy in terms of the nominal gross domestic product (GDP) and ninth largest by purchasing power parity (PPT), the United Kingdom stands as one of the most developed countries of the world....

E&Y casts serious doubt over the airline’s ability to continue as a going concern- Will Air Asia be able to rough it out?

  E&Y expresses concern over Air Asia’s financial health Air Asia hustles to seek loans & share capital   Air Asia Group Bhd. is another airline that is battling at the forefront with slumping demand and whose future has been questioned over the recent few days. The carrier’s shares took a hit following a trading suspension as E&Y, the airlines’ auditor,...

Has Covid led lockdown accelerated the decline in global thermal coal industry?

  Despite rising climate concerns, what still makes thermal coal the primary source of energy? Is the current slowdown the beginning of the end of global thermal coal industry?   The global thermal coal industry was a bit late in joining the Covid 19 led downturn as it remained resilient in the first 3-4 months of 2020 while most other industries had started to feel...

Impact of US Visa Suspension on the Indian IT Sector

Suspension of processing and issuance of non-immigrant work visas Impact on the Indian IT Sector   US President Donald Trump has issued a proclamation to temporarily suspend the issuance of H-1B visas, a step which is expected to specifically impact a lot of Indian IT professionals, along with other overseas service visas for the rest of the year. Just last year (FY 2019),...

Wirecard AG Scandal

  What is the Wirecard fraud? How Wirecard accounting fraud stunned the world once again, forcing it to rethink on governance and accounting lapses?   In the last two decades, the financial world has seen numerous corporate frauds. Starting with the iconic case of Enron, an energy company which fudged its accounts for years, ultimately exposed in the year 2001 and...

Chinese economic data ameliorates post Covid-19 shock, Will the recovery continue?

Manufacturing and Services PMI rise to multi-month high Stimulus package by government likely to aid economic output China seems better placed than other major economies   As major developed and developing economies in the world continue to reel under the economic and health crisis emerging due to the Coronavirus pandemic, recent Chinese economic cues depict moderate...

Qantas Airways announces firing of 6,000 employees- Implications for the airline industry

Impact of Covid-19 on the global airline industry Qantas axes 6,000 jobs amid subdued travel demand and chalks out a 3-year recovery plan Covid-19 has made the airline industry’s worst nightmares come true. The impact of the plummeting demand has been far worse than that of 9/11 and 2008 financial crisis combined. One of the most challenging industries to operate in, the impact of...

Changing dynamics of Co-Working Industry

Coworking space – an option to work from anywhere Impact of Covid-19 on the coworking space industry   Coworking has been consistently gaining traction over the past few years, wherein the emergence of the Covid-19 pandemic has further enhanced its importance, making it the preferred workplace of today’s workforce. This can be evidenced by large companies increasingly...

Struggling global steel industry faces double whammy by Covid-19 outbreak

  Did the Covid19 outbreak magnify the global steel industry’s woes?  Will the unlock phase be able to recover steel industry from its plight?   The year 2019 was not a great year for the global steel industry as crude steel production grew by merely 3%, significantly lower compared to its intermittent peak (6.3%) achieved in 2017. Similarly, the global finished...

Reliance Jio’s striking fundraising binge during tough times

Reliance Industry (RIL) has raised over USD 13 billion so far in 2020 Shares of RIL reached a new high making it India’s most valued company   When every business across the globe is facing heat of coronavirus outbreak, Reliance Industry seems unstoppable to reach its goal to become debt-free ahead of March 2021.  RIL’s subsidiary, Jio Platform Limited has attracted...

Jet.com’s discontinuation from Walmart

    Overview of the acquisition of Jet.com by Walmart in 2016. Insight of the e-commerce model developed by Jet.com to compete with rival Amazon. Impact of the acquisition of Jet.com to overall e-commerce business of Walmart.   Walmart acquired Jet.com in 2016 to utilize the expertise of rising e-commerce company Jet.com. Whether it was a strategic...

Doctor copper indicates economic health recovery, though at a gradual pace.

  What led to the freefall in copper prices in March 2020? Will lifting of lockdown worldwide provide the required boost to copper prices?   Dr. Copper, being treated as the barometer of economy, had been one of the worst hit commodities due to global lockdown led by Covid-19 outbreak, reflecting the pause in economic activities worldwide. After falling for most of...

Avianca: Another one to bite the dust?

  Covid-19 provides a fresh blow to Avianca Airlines Implication of filing for Chapter 11 bankruptcy Is the government likely to provide support?   As the Covid-19 pandemic continues to badger industries worldwide, one of its recent victims includes Avianca Airlines: the world’s second oldest operating airline. After missing on a bond repayment (worth c. US$ 65.6...

The Future of Flexible Office Economy

  The beginning of the flexible office economy The road ahead   Over the last few months, the COVID-19 pandemic has forced all types of businesses to adapt to functioning with remote workforces. The irruption has the potential to re-shape work practices, interaction preferences and attitudes toward technology for decades to come. Having said that, the current...

Slack set out to kill E-mail

Started as a side project for internal use in a gaming company High revenue growth with recurring revenues Went Public by offering shares through the Direct Public Offering ...

Will the Big Bang merger drive, of Indian Public Sector banks, provide the required impetus to the slowing economy?

India’s Government announces plans to merge 10 of the country’s public sector banks Probable impact of the mergers   India’s Finance Minister, Nirmala Sitharaman,...

Is Mothercare on the verge of collapse?

History of Mothercare What went wrong? Company moved into administration   Mothercare, an iconic brand for babies, children and parents to be, went into...

Tire manufacturing industry, analysing the cost and margin trends

The global market for tire manufacturing stands at $180 billion. Michelin anticipates the long-term demand to rise at the rate of 5 to 10% a year in developing markets and 1 to 2% a year in mature...

An analysis of Malaysian rubber glove industry

How big is the international rubber gloves market? Reasons behind the healthy and steady growth Malaysia’s role in the industry Why are companies struggling for stable...