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- Market Munch 🍎 | 30 January 2023
Market Munch 🍎 | 30 January 2023
Adani shockwaves blow over markets, China plans to rev up, and Britain hits some turbulence. 🔥
Aryaansh Rathore
January 29, 2023
Happy Monday, Munchers! 🙏
Might be a not-so-happy Monday for some, but we're still kicking it. Hope you had a lovely weekend and Carpe Diem.
As always, here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 4 minutes and 53 seconds.
Over the weekend, Adani's fallout blistered confidence in Asia, China got ready to ramp up spending, and Britain saw some corruption callouts. 🔥
Let’s dive in.
What’s hot, what’s not?
Market Commentary
Some persistent wage inflation in the UK points to another big rate hike from the BofE this week. Policymakers in Britain are hella concerned about an inflationary spiral, and they want to subdue it as soon as they can.
The Fed set the stage in 2022. In 2023, they're no longer in the driver's seat. While the US Central Bank winds down their aggression and the Dollar falls, global focus is shifting to Japan and Europe. Hot money. 🥵
Not much else happened over the weekend. All the traders were busy resting up because of the rollercoaster ride we're on, I guess.
Story Roundup
You don't become the world's 3rd richest guy by sitting down and letting life happen to you.
So Adani has hit back at the haters, in typical Indian corporate fashion.
Yesterday, they released a 413 page response to the "baseless and unruly" allegations put forward by Hindenburg.
Adani is saying that Hindenburg's research is a hit job as part of an attack on India, and their short thesis is meant to damage Adani's image.
They've also questioned Hindenburg's ethics and quality while digging deep into their "malicious intent" and "selfish motives".
Out of Hindenburg's 88 allegations, 65 have already been answered. The rest were all part of exchange disclosures. Maybe their research isn't as good as they say it is.
Gautam Adani has seen his personal net worth plunge by $20bn in the last 3 days.
Happy new year, I guess. 🤔
A COVID crunch has left China's economic glory days high and dry.
They wants to combat this ASAP - and the CCP has vowed to make consumption the main driving force behind the Chinese economy.
Economists are already betting that Xi Jinping's reopening plan will supercharge global economies with China's pent-up consumer activity.
Their national savings grew by a record $2.6 trillion last year.
All that cash is floating around in bank accounts, itching to be splashed on all sorts of goods and services.
Zero-COVID policies are gonna be abandoned, and China will embrace the "normal" life.
Spend like there's no end. 💸
Nadhim Zahawi came from Iraq to Britain at age 11 to do something big - and yesterday, the boy from Baghdad had a massive fall from grace.
He was fired as Chairman of the Conservatives after committing a "serious breach" of the tax code.
Mr. Zahawi was supposed to pay 4.8 million GBP as part of a tax settlement, but he didn't declare that he was meant to do so.
Rishi baba was pretty angry about this, and he let the boy from Baghdad go.
The average Brit on the street is also not pleased. Living costs have been through the roof, and hearing about richer people's loopholes doesn't put the average Joe in a good mood.
Power. 💪
This one is directly out of a James Bond movie.
Rio Tinto is a mining company that does a lot of stuff.
Yesterday evening, they lost a highly radioactive capsule that fell off a truck travelling through an Australian desert highway.
It's an incredibly tiny capsule. Just 6mm by 8mm. But don't let it's size fool you - exposure with it is the equivalent of 10 X-rays and prolonged contact can cause radiation sickness and skin cancer.
The way the world has been shaping up, I wouldn't be surprised if this is all some super-villain's plan to take over the world.
Keep away, folks. 😔
Tech bros don't work at Dell. Tech boomers do.
But things are changing, and Dell wants to beef up their cloud business to compete with their Silicon Valley buddies.
They're spending ~$100 million on a startup called Cloudify.
It's a hefty purchase but it highlights their trajectory - they want to dig deep into B2B business and they want to do it fast.
Cloud is quickly turning into the bread-and-butter for big companies. Microsoft's Q4 revenue fell 12%, but their cloud division actually increased 22%.
Floating above em all. 😮💨
Hope you enjoyed this issue of the Market Munch. If you've got any feedback - good or bad (😏) you can hit reply to this email. Thanks a ton for reading!
Cheers, and have a lovely day. 🙏
Aryaansh