Blogs

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...

Bankruptcies to spike in the US Oil and Gas E&P Industry!! Another victim of Covid-19

  WTI Crude records huge fluctuations in prices in past few months Financial performance of companies deteriorates in Q1 20, further drop seen in coming quarters Increasing number of companies file for Chapter 11 bankruptcy protection   Crude oil prices have been on a tear over the past few months, recording highly mercurial movements wherein the major US...

Covid-19 pandemic disrupts India’s face-to-face medium of teaching

  Overview of the education sector amidst the global pandemic. Initiatives taken by the Indian government and private bodies to boost online education. Significance of technology and online education portals going forward .   As the Covid-19 pandemic continues to spread its wrath globally, the education sector is one amongst the many severely hit. While...

Luckin: Downfall of the coffee king

  Once seen as a main competitor to Starbucks in China, now trapped in fraud allegations NASDAQ issues delisting notice     Luckin Coffee was once considered a strong and direct competitor to Starbucks backed by its rapid growth in its home country China, challenging Starbucks long held dominant position to become China’s favourite coffee chain. Founded...

“Iron Ore prices: Unlocked-Down” A study of iron ore price sustenance amidst Corona led global slowdown

What provided buoyancy to iron ore prices amid Covid 19 concerns? How are iron ore prices expected to behave for the rest of 2020? With the global outbreak of Covid 19 in early March, the world has come to a halt. All economic and non-economic activities (excluding essentials) were shut across the globe and the entire world population was advised to stay inside their homes to contain the...

Measuring the Impact of Covid-19 on the US Economy

  How does consumption demand affect GDP and personal income in the US? Which industries are affected most from the underlying shift in demand due to Coronavirus pandemic?      United States Bureau of Economic Analysis (BEA) reported first quarter Q1-2020 GDP decline of 4.8% on an annualized basis. It is one of the biggest falls in GDP numbers and the...

Covid-19’s impact on international tourism

  Covid-19 cripples the global tourism industry The road ahead   With around 90% of the world living in countries with travel restrictions, the Covid-19 pandemic has literally brought travel to a standstill. While it is fairly known that the pandemic has bruised many-a-industries, it has etched a scathing impact on global tourism, which in fact accounts for 10% of...

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,...

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...

Rapidly growing Indian online food delivery industry and its unrealised profits

Evolution of online food delivery industry in India Geographical penetration and scope for expansion Key players and their zeal to balance revenue and costs   Online...