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- Market Munch 🍔 | 8 December 2022
Market Munch 🍔 | 8 December 2022
BYJU's bills go boom, Vanguard ditches the planet, and Adani rocks higher. 🔥
Happy Morning, Munchers! 🙏
As always, here is your daily dose of the news that matters, from Wall Street to Dalal Street - in 4 minutes and 51 seconds.
Yesterday, BYJU's asked for their debt to be chopped, Vanguard pulled out of a climate pact, and Adani set another foot toward the moon. 🔥
Let’s dive in.
What's hot, what's not?
Market Commentary
Data out of China showed that the COVID protests are taking their toll.
Exports slowed, business activity slowed, and spending slowed. Pretty soft demand.
US stocks slid on this news because of how tangled China is with the world. 🔥
Story Roundup
Cheap money is a drug, and hyper growth startups are junkies.
But there are signs that the market cooldown is hurting them now.
BYJU's is seeking to restructure a $1.2 billion loan it received earlier this year. The loan is priced 5.5% above LIBOR, which has surged 21x this year.
They're among a vast crop of startups that enjoyed searing growth during the pandemic bull run, then came crashing down spectacularly.
Investors are on tilt. BYJU's annual losses surged a stunning 20X, so they have a fair reason to be.
Hot water. ♨️
The second largest money manager in the world is ripping up it's net zero plans.
Vanguard just pulled out of the world's biggest climate change financial group - one which Blackrock, JP Morgan and State Street are a part of.
The reason seems to be a Republican attack on ESG investing.
Vanguard was slammed last month for trying to use ESG to influence corporate policy, and that had them spooked for a bit.
Stuff's getting heated. ☀️
China's economy can be described like a badly cooked microwave dinner.
Some parts are lukewarm, just where they need to be. Others are sizzling with the fire of the hell, and others are rock hard cold.
Soft export data and slowing consumption in China has forced them to get faster with their relaxation of COVID policies.
China's jazz with their people relied on giving up control for prosperity.
But the problem started when prosperity stopped.
There's a long road to walk. 🚶
Somewhere far North in the icebergs of Greenland, scientists have found the world's oldest DNA.
Long story short, we had a thriving Arctic ecosystem about 2 million years back.
There was a big prehistoric party of reindeers, rabbits, birch trees, cedar trees, and mastodons back then, according to the DNA.
A discovery like this tells us that we might be able to withstand temperatures at a wider range than thought before, since a lot of those species are still around.
The average global temperature back then was 10 C, and it's about 25 C now.
But Dubai's as hot as is. Who wants to live here at 50 degrees in the winter? 🤷
Asia's richest man has a pretty big plan.
Gautam Adani's meteoric rise to success is a stunning story, and he's looking to get bigger.
Adani has been knocking on the doors of sovereign wealth funds and HNWI pools alike - something that he never seemed to do before.
He scooped up $2bn from Abu Dhabi and is raising billions more to fund his transition to green energy, which is insane.
The companies he runs are operating at insane levels of leverage and have been critivcized by investors, but it's only human to make hay while the sun is shining.
He's a man on a mission. 🎯
A few nibbles from Pasiv 🍪
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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