Thursday, November 28
The US labor market showed signs of cooling in October as employers added 150,000 jobs, a decrease from the previous month but still indicating a resilient economy. The United Auto Workers' strikes against Detroit's automakers contributed to the lower job growth, but most sectors experienced solid gains. Wage pressures also eased, and the unemployment rate rose slightly to 3.9%. The Federal Reserve is monitoring these developments as it considers whether further interest rate hikes are necessary to curb inflation.
IndiGo has reported a profit of Rs 189 crore in the July-September 2023 quarter, as opposed to a loss of Rs 1,583 crore in Q2 last fiscal. India’s largest domestic airline saw its total income rise 21% to Rs 15,503 crore this Q2 from Rs 12,582 crore last time. The airline’s capacity increased by 27.7% and passengers carried rose 33.4% to 2.6 crore in the traditionally weakest travel quarter. IndiGo scrip closed flat at Rs 2,508.45 on BSE Friday when the broader market was up 0.4%.
FTX founder Sam Bankman-Fried has been found guilty of defrauding customers of his cryptocurrency exchange, resulting in one of the largest financial fraud cases ever. The verdict follows FTX's bankruptcy filing and the loss of Bankman-Fried's personal fortune. Bankman-Fried, a former billionaire, was convicted on all seven counts he faced after a monthlong trial. He is set to be sentenced in March 2024 and is also facing additional charges of foreign bribery and bank fraud conspiracies.
Working a 70-hour week raises compliance issues and violates labour laws, according to a senior official of staffing company TeamLease. The cost of employment would also increase, and paying overtime may not be allowed in many places. While a 70-hour work week may work for entrepreneurs and self-motivated individuals, it cannot be accepted due to compliance norms. In terms of hiring trends, there is increasing demand for AI, machine learning, and blockchain roles from non-tech sectors like telecom, aviation, retail commerce, fintech, and electronics.
Maersk, the world's biggest shipping company, said on Friday that it plans to eliminate 10,000 jobs due to what it described as a challenging environment for container trade and logistics services. The company said the move would result in savings of $600 million in 2024. The announcement was made as Copenhagen-based Maersk presented its quarterly report, which listed profits before taxes at $691 million, down from $9.1 billion for the same period last year. It cited "challenging market conditions resulting in substantially lower freight rates compared to the abnormally high rates in 2022."
Reliance Industries, owned by Indian tycoon Mukesh Ambani, is reportedly considering raising $1.8 billion through the sale of local-currency bonds. If the transaction goes through, it would be the largest-ever rupee sale for the conglomerate. Reliance Industries, India's largest company by market value, has diverse business interests including petrochemicals, wireless communication services, and consumer goods. The company has a AAA credit score from India's Crisil Ratings.
The Indian government has given permission for Indian companies to directly list on foreign exchanges, following the opening of GIFT City. However, there are still obstacles to overcome, such as changes to capital gains tax. The Ministry of Corporate Affairs has set October 30 as the designated date for notification under the Companies Act. Some market participants believe that the government initially hesitated on allowing foreign listings as it wanted companies to first do a domestic issue.
Starbucks reported record revenue in its fourth quarter as it improved sales and efficiency at its existing stores and opened hundreds of new ones. Revenue for the July-September period rose 11 per cent to $9.4 billion. That surpassed Wall Street's expectation of $9.3 billion, according to analysts polled by FactSet. The Seattle coffee giant opened 816 net new stores in the quarter, ending its fiscal year with more than 38,000 stores worldwide. But the company said an ongoing revamp of its existing North American stores is also improving sales and making operations more efficient.
Finance minister Nirmala Sitharaman visited Sri Lanka's eastern port town of Trincomalee where she opened a branch of the State Bank of India and appreciated its role in supporting corporates in international trade. She started her day by visiting the main Hindu Temple in the multi-ethnic city to pay homage to it before opening a branch of the State Bank of India in Trincomalee. After inaugurating the branch, she appreciated that SBI, with its 159 years of significant presence, is the oldest bank in Sri Lanka and continues to grow its business at home and abroad.
