In the Spotlight: Business This Week
How did businesses perform this week? Get into this week’s global business roundup with in-depth analysis and expert commentary on the most important developments and trends
Welcome to This Week’s BiG Business Headlines Roundup! An all exclusive business developments and deals from around the globe between 17th to 21st of July 2023.
As we dive into the latest updates from the world of business, we’re excited to present the most compelling headlines and developments that have been shaping industries across the globe, this week. Our team brings you in-depth analysis and insights, covering a wide range of topics and industries to keep you informed and ahead of the curve.
But that’s not all! Down the roundup, you’ll find our favorite segments, specially curated for you.
We invite you to also share your thoughts and perspectives on the headlines in the comment section below.
Markets Updates
Sensex and Nifty
It was a good week for the bourses with both the Sensex and Nifty touching an all-time high. A ripple effect of the global market rally led to Sensex breaching the historic 66,000-mark. As US macros reinforced a milder inflation outlook, the global markets responded with enthusiasm. Asian stocks registered significant gains, Hong Kong’s Hang Seng gained 0.52% and mainland Chinese blue chips added 0.12%. South Korea’s Kospi jumped 1%. On the other hand, the European stock markets traded mixed
Key data points on US’s manufacturing and industrial sector and inflation rates of UK and Euro area were released during this week. These macros were crucial and keenly awaited.
Analysis of the Big Picture
The release of key data points on US’s manufacturing and industrial sector and inflation rates of UK and Euro area during the week of July 17-21, 2023 highlights the importance of macroeconomic indicators in shaping market trends and business decisions. These data points provide valuable insights into the health of the global economy and can help businesses to make informed decisions about their operations and investments.
The strong performance of global stock markets during the week, with both the Sensex and Nifty touching an all-time high, suggests that investor sentiment was positive and that there was optimism about the global economic outlook. The fact that Asian stocks registered significant gains while European stock markets traded mixed indicates that there may be regional differences in economic performance and investor sentiment.
Overall, these stories highlight the dynamic nature of the global economy and the importance of staying informed about market trends and macroeconomic indicators. By keeping a close eye on these developments, businesses can make more informed decisions and better navigate the changing economic landscape.
Company News
Infosys headcount has declined by 6,940 employees for the June quarter compared to Q4FY23. IT companies Wipro and HCLTech also saw a decline in headcounts. The company’s total employees as of June 30, 2023, stood at 3,36,294 compared to 3,43,234 in the March quarter. The company’s attrition for the quarter stood at 17.3% from 20.9% in the previous quarter .
These stories provide a snapshot of some of the key developments in the global business landscape during the week of July 17-21, 2023.
The decline in headcount at Infosys, Wipro, and HCLTech during the June quarter of 2023 could indicate that these companies are facing challenges in retaining employees. The fact that Infosys’ attrition rate for the quarter stood at 17.3%, down from 20.9% in the previous quarter, suggests that the company may be taking steps to address this issue. However, it’s possible that broader trends in the labor market, such as increased competition for talent and changing employee preferences, could be contributing to these challenges.
Citigroup Inc.'s 4.1% decline in share price following the release of its second quarter 2023 revenues, which were down 1% year over year, could indicate that investors were disappointed with the company’s performance. It’s possible that factors such as rising interest rates, increased competition, and changing market conditions could be impacting Citigroup’s revenues and profitability.
Eli Lilly and Co.'s decision to acquire privately held obesity drug maker Versanis for $1.9 billion could signal the company’s interest in expanding its presence in the obesity treatment market. This move could help Eli Lilly to diversify its product portfolio and tap into a growing market with significant potential for growth.
POV: From talent retention and competition to market conditions and strategic growth opportunities, there are many factors that can impact a company’s performance and success.
Mergers and Acquisitions
Goldman Sachs’ decision to take Kahoot private is a significant development in the edtech industry. The valuation of $2 billion for the Norwegian group reflects the growing importance of technology in education and the potential for growth in this sector. This move by Goldman Sachs and General Atlantic could signal further investment and consolidation in the edtech industry.
Goldman Sachs has agreed to take edtech Kahoot private. The transaction, which includes private-equity investors General Atlantic, values the Norwegian group at $2 billion.
Austria’s OMV and Abu Dhabi
Austria’s OMV and Abu Dhabi are in talks over merging their chemicals businesses. The partnership could combine Borouge with Borealis to create a global polyolefin company.
The potential merger between Austria’s OMV and Abu Dhabi’s chemicals businesses could create a global polyolefin company. This partnership would combine Borouge with Borealis, two major players in the chemicals industry. The merger could result in increased efficiency and competitiveness in the global market, benefiting both companies and their customers.
ITV PLC has abandoned talks to buy ‘Gogglebox’ maker All3Media. The UK broadcaster says it is no longer exploring a deal for the Warner and Liberty-owned production company.
ITV PLC’s stand to abandon talks to buy ‘Gogglebox’ maker All3Media is an interesting development in the media industry. The UK broadcaster’s decision not to pursue a deal for the Warner and Liberty-owned production company could indicate a shift in strategy or a reassessment of the value of such an acquisition. It will be interesting to see how ITV PLC moves forward and what other opportunities it may pursue.
Economic Indicators
Inflations
UK inflation figures were in the spotlight during the week of July 17-21, 2023. The longer high inflation persists, the more of a worry inflation expectations become. If firms and workers expect the price level to keep rising, they will demand higher wages and prices, increasing the chance of wage price spiral dynamics bedding in.
According to the latest Bank of England (BoE) Inflation Attitudes Survey, respondents expect consumer price index (CPI) inflation to fall over the medium term – but not all the way down to target. The median expectation for inflation over the coming year is 3.5%, compared with 3% in five years’ time .
Our Analysis and Prediction
From our professional perspective, the UK inflation figures and the results of the Bank of England (BoE) Inflation Attitudes Survey provide valuable insights into the current state of the UK economy and potential future developments. The fact that respondents expect consumer price index (CPI) inflation to fall over the medium term, but not all the way down to target, suggests that there may be some uncertainty and concern about the future trajectory of inflation.
The longer high inflation persists, the more it can impact businesses and consumers. If firms and workers expect the price level to keep rising, they may demand higher wages and prices, potentially leading to a wage-price spiral. This could result in increased costs for businesses and reduced purchasing power for consumers.
It is important for businesses to closely monitor inflation trends and expectations, as well as any actions taken by the BoE to address inflation. This can help businesses make informed decisions about pricing, wages, and other key factors that can impact their operations and profitability.
In terms of predictions, it is difficult to say with certainty what will happen with inflation in the UK. However, it is likely that the BoE will continue to closely monitor inflation trends and take appropriate actions to try to keep inflation under control. Businesses should stay informed about any developments in this area and be prepared to adapt as needed.
Inflation can impact the purchasing power of consumers, as it can result in higher prices for goods and services.
Here are some tips for UK citizens on how to manage the impact of inflation:
Budgeting: Create a budget and track your spending to ensure that you are living within your means. This can help you identify areas where you can cut back on expenses and save money.
Saving and investing: Consider saving and investing a portion of your income to help protect against the impact of inflation. Savings accounts, bonds, and other low-risk investments can provide a hedge against inflation by earning interest or returns that help offset the loss of purchasing power.
Shopping around: Compare prices and shop around for the best deals on goods and services. This can help you save money and stretch your budget further.
Fixed-rate loans: If you are considering taking out a loan, consider a fixed-rate loan rather than a variable-rate loan. This can help protect against the impact of rising interest rates, which can occur during periods of high inflation.
It is important to remember that everyone’s financial situation is different, so it is always a good idea to consult with a financial advisor to determine the best course of action for your individual circumstances.
Technology Trends
AI
China has published new rules for generative artificial intelligence (AI), becoming one of the first countries in the world to regulate the technology that powers popular services like ChatGPT. The Cyberspace Administration of China, the country’s top internet watchdog, unveiled a set of updated guidelines on Thursday to manage the burgeoning industry, which has taken the world by storm. The rules are set to take effect on August 15.
China’s new rules for generative artificial intelligence (AI) are a major step in regulating this rapidly growing industry. The rules, which were unveiled by the Cyberspace Administration of China, will take effect on August 15 and will apply to services that are available to the general public in China. Technology being developed in research institutions or intended for use by overseas users are exempted. Among the key provisions is a requirement for generative AI service providers to conduct security reviews and register their algorithms with the government, if their services are capable of influencing public opinion or can “mobilize” the public .
Microsoft Corp. and Activision Blizzard Inc.
Microsoft Corp. and Activision Blizzard Inc are nearing the finish line on their $69 billion deal, but aren’t likely to close it by a Tuesday deadline. The companies don’t plan to walk away from the deal and will continue seeking the final regulatory approvals needed for closing.
Regulatory momentum has shifted in favor of the deal in recent days, with the US Federal Trade Commission failing to block it in court and the UK’s Competition and Markets Authority announcing an unprecedented move to start fresh talks on ways to assuage UK government concerns .
Malaysia Telecos
Malaysia Telecoms Firms have completed talks to take up stakes in a 5G Agency. This development could help accelerate the deployment of 5G technology in Malaysia and provide new opportunities for businesses and consumers .
5G technology has the potential to benefit businesses and consumers in Malaysia in several ways. Here are some examples:
Faster internet speeds: 5G technology offers faster internet speeds compared to current 4G networks. This can improve the online experience for consumers, allowing them to stream videos, play games, and access other online content more smoothly. For businesses, faster internet speeds can improve productivity and efficiency, allowing them to transfer large files and access cloud-based services more quickly.
Improved connectivity: 5G technology can support a larger number of connected devices compared to current networks. This can enable the development of new applications and services that rely on the Internet of Things (IoT), such as smart homes, smart cities, and connected cars.
Lower latency: 5G technology offers lower latency compared to current networks. This means that there is less delay between sending and receiving data. For consumers, this can improve the responsiveness of online services such as gaming and video conferencing.
Tech Companies Performance in July
The strong performance of these technology companies in July 2023 reflects the ongoing growth and innovation in the technology sector. Companies such as NVIDIA, Palo Alto Networks, Advanced Micro Devices, Salesforce, and Broadcom are leaders in their respective fields, offering cutting-edge products and services that are in high demand.
NVIDIA, for example, is a leading provider of graphics processing units (GPUs) and artificial intelligence (AI) technology. The company’s strong performance in July 2023 may reflect the growing demand for these technologies in a wide range of industries.
Palo Alto Networks is a leading provider of cybersecurity solutions. The company’s strong performance in July 2023 may reflect the growing importance of cybersecurity in an increasingly digital world.
Advanced Micro Devices is a leading provider of microprocessors and other computer hardware. The company’s strong performance in July 2023 may reflect the ongoing demand for high-performance computing solutions.
Salesforce is a leading provider of customer relationship management (CRM) software. The company’s strong performance in July 2023 may reflect the growing importance of CRM solutions for businesses of all sizes.
Broadcom is a leading provider of semiconductor and infrastructure software solutions. The company’s strong performance in July 2023 may reflect the ongoing demand for these technologies in a wide range of industries.
Generally, the strong performance of these technology companies in July 2023 reflects the ongoing growth and innovation in the technology sector, as well as the ability of these companies to deliver cutting-edge products and services that meet the needs of their customers.
Startup and Entrepreneurship
The state of startups and entrepreneurship globally is dynamic and constantly evolving. In recent years, we have seen a rise in socially-minded entrepreneurship, with many entrepreneurs seeing the world’s challenges as opportunities to build businesses that have a positive impact on society. This trend is likely to continue, as more and more entrepreneurs seek to create businesses that not only generate profits but also contribute to the greater good.
In addition, the rise of technology and the digital economy has created new opportunities for startups and entrepreneurs. The ability to reach a global audience through the internet has lowered barriers to entry and made it easier for startups to scale quickly. This has led to the emergence of new business models and the disruption of traditional industries.
At the same time, startups and entrepreneurs face many challenges, including access to funding, regulatory hurdles, and competition from established players. To succeed in this environment, startups need to be innovative, agile, and able to adapt quickly to changing market conditions.
ccording to the World Economic Forum, in 2023, we’ll see a new form of entrepreneurship emerge – more diverse, more socially-minded, and not afraid to multi-hustle. The last few years of unprecedented economic disruption look set to continue in 2023. The recent sell-off in equity markets, challenging funding rounds and significant lay-offs give us a glimpse of what the upcoming downturn has in store. But counterintuitively, it is exactly these kinds of challenges that will create the perfect conditions for new businesses to be born and built.
Startups.co.uk announced their Young Entrepreneur shortlist for 2023. The winner was Zeus Labs, founded by Clemente Theotokis (23) and Jai Kanwar (23). Zeus Labs provides a solution to inefficiencies within UK transport routes. In just two years, Kanwar and Clemente Theotokis’ ingenious software solution has handled 660,000 tonnes of freight per year, equating to a value of £6.6 billion, and is on track to achieve 400% growth in 2022 .
Sustainability and ESG
SEBI, India
On July 21st, 2023, the Securities and Exchange Board of India (SEBI) allowed mutual funds to introduce five new categories under the ESG scheme. These categories are exclusions, integration, best-in-class and positive screening, impact investing, and sustainable objectives.
The Securities and Exchange Board of India (SEBI) has allowed mutual funds to introduce five new categories under the ESG scheme. These categories are exclusions, integration, best-in-class and positive screening, impact investing, and sustainable objectives. This move by SEBI is aimed at providing more options for investors who are interested in investing in companies that meet certain environmental, social, and governance (ESG) criteria.
The introduction of these new categories could help to promote sustainable investing in India by providing investors with more options for aligning their investments with their values. It could also encourage companies to improve their ESG practices in order to attract investment from these new ESG-focused mutual funds.
This development is a positive step towards promoting sustainable investing in India and could help to drive positive change in the business landscape by encouraging companies to adopt more sustainable practices.
International Trade and Geopolitics
(Not much happenings on international trade front- this story is from 11 July 2023, so in case you missed it, as we also missed it, here you go)
According to the Harvard Business Review, globalization has not gone into reverse despite evidence of U.S.-China decoupling. The DHL Global Connectedness Index shows that the globalization of trade, capital, and information flows was already above pre-pandemic levels by 2021 and that the recovery of international people flows accelerated in 2022. International trade rebounded quickly after plummeting at the beginning of the pandemic. The volume of world trade in goods reached 10% above pre-pandemic levels in mid-2022, and trade in services was also back above pre-pandemic levels.
Despite concerns about the impact of the Covid-19 pandemic and geopolitical tensions on globalization, recent data suggests that global trade, capital, and information flows have remained resilient. According to the DHL Global Connectedness Index, these flows were already above pre-pandemic levels by 2021 and continued to recover in 2022.
This resilience of globalization is a testament to the interconnected nature of the global economy and the ability of businesses and governments to adapt to changing conditions. While there are certainly challenges and uncertainties ahead, it appears that globalization is here to stay.
From a business perspective, this means that companies need to continue to think globally and be prepared to navigate an increasingly complex and interconnected world. This may involve adapting to new trade agreements, tariffs, and geopolitical events that can affect global supply chains.
Business Analysis and Opinions
Our expert insights and candid opinions on this week's business headline stories. You can share your opinions as well in the comments below.
The decision by the Securities and Exchange Board of India (SEBI) to allow mutual funds to introduce five new categories under the ESG scheme is a positive development for sustainable investing in India. This move could help to promote investment in companies that meet certain environmental, social, and governance (ESG) criteria, and could encourage companies to improve their ESG practices.
The resilience of globalization, as evidenced by the recovery of global trade, capital, and information flows, is a testament to the interconnected nature of the global economy. Despite concerns about the impact of the Covid-19 pandemic and geopolitical tensions, it appears that globalization is here to stay. This means that businesses need to continue to think globally and be prepared to navigate an increasingly complex and interconnected world.
The rise of socially-minded entrepreneurship is an exciting development that could help to drive positive change in the business landscape. As more and more entrepreneurs seek to create businesses that not only generate profits but also contribute to the greater good, we are likely to see a new generation of innovative and impactful companies emerge.
Unpopular Business Segments
Industry Spotlight
Supply Chain Industry
The supply chain industry has been facing some tough challenges recently, with disruptions caused by the COVID-19 pandemic, geopolitical conflicts, inflationary pressures, and climate change weather events. These disruptions can cause all sorts of problems, like making it harder to get goods where they need to go, causing holdups at ports, and making prices go up.
In 2023, disruptions to supply chain operations are set to continue, whether they be existing or new geopolitical conflicts, inflationary pressures and the recessionary environment, climate change weather events, or other issues yet to emerge. These disruptions can impact access to goods and how they flow to their final destination, create port holdups, reduce container and ocean freight availability, and surge prices, among other concerns.
But even with all these challenges, there are some exciting trends happening in the supply chain industry in 2023. One trend is that countries are starting to look inward and focus on becoming more self-sufficient when it comes to their supply chains. This means they’re trying to make sure they can get the materials they need from within their own borders, instead of relying on other countries.
To manage these disruptions, there are several key supply chain trends to watch for in 2023. One trend is nations becoming skeptical about cross-border trade cooperation. Geopolitical tensions have seen nations turn inward and become skeptical about cooperation and interdependence. When it comes to the supply chain, this caution is fair, as if tensions escalate, essential materials may be inaccessible or major trade routes could be shut down. Therefore, governments and industry leaders are exploring domestic self-sufficiency in material supply and manufacturing.
Another trend is that companies are investing more in technology to help them manage their supply chains better. This includes things like using artificial intelligence to make better decisions and creating “smart” operations that can adapt quickly to changes.
The other trend is acceleration of supply chain technology investments. As organizations place greater emphasis on supply chain management, Chief Supply Chain Officers (CSCOs) intend to grasp their collective opportunity to invest in growth through new technology investments. Gartner has identified several top supply chain technology trends for 2023, including actionable AI and smart operations.
These are just a few examples of the trends that are shaping the supply chain industry in July 2023, this week.
New Founders On The Block
Inflation, the economic force that keeps everyone on their toes, is making its presence felt in the business world. Big businesses are grappling with its challenges, and there's much to learn from the pros on how to navigate this storm.
This week, we uncover the secrets to tackling inflation head-on and surviving its crushing impact. From industry giants to successful startups, discover how businesses are mastering the art of resilience amidst these turbulent times.
We've got you covered with expert tips to navigate this economic challenge:
1. Price Strategically: Tread wisely when adjusting prices. Consider incremental changes to maintain your product's allure while offsetting increased costs.
2. Embrace Innovation: Get creative and explore new ways to boost efficiency. Innovate your products, processes, and services to stay ahead of the curve.
3. Nurture Customer Loyalty: Cherish your loyal customers by delivering exceptional experiences. Invest in customer service and engagement to build lasting connections.
4. Negotiate Intelligently: Engage with suppliers and partners to secure favorable terms. Smart negotiation can shield your business from inflationary pressures.
5. Monitor Cash Flow: Stay vigilant with your finances. Optimize cash flow management to keep your business resilient in uncertain times.
Be prepared, stay adaptable, and tackle inflation like a seasoned pro!
What We Are READING
“The Power of Geography: Ten Maps That Reveal the Future of Our World” is a book by Tim Marshall that explores ten regions that are set to shape global politics in a new age of great-power rivalry. These regions include Australia, Iran, Saudi Arabia, the UK, Greece, Turkey, the Sahel, Ethiopia, Spain and Space. The book discusses how geography shapes the fates of nations and how it can impact global politics and conflict.
The book has received positive reviews. For example, The Washington Post called it a “refreshing and very useful” follow-up to Marshall’s previous book "Prisoners of Geography". It has also been described as a "lucid and gripping exploration of the power of geography to shape humanity’s past, present – and future.
You can purchase “The Power of Geography: Ten Maps That Reveal the Future of Our World” by Tim Marshall on Amazon here.
“The Power of Geography: Ten Maps That Reveal the Future of Our World” is a highly informative and engaging read that provides valuable insights into how geography shapes global politics and conflict. It’s a must-read for anyone interested in understanding the world around us and the forces that shape it.
“The only limit to our realization of tomorrow will be our doubts of today.” - Franklin D. Roosevelt.
This quote reminds us that our doubts and fears can hold us back from achieving our full potential. By overcoming these doubts and believing in ourselves, we can unlock a brighter future. So, as you head into the weekend, take some time to reflect on any doubts or fears that may be holding you back and work towards overcoming them. Have a great weekend! 😊
… Do well out there!