The Economic Survey unveiled on January 31 showed that the mostly micro, small, and medium enterprises that availed of an emergency credit scheme repaid a large part of what they owed. The government announced the Emergency Credit Line Guarantee Scheme (ECLGS) in FY21, which according to the survey succeeded in shielding MSMEs from financial distress. A report from credit information company CIBIL showed that the scheme supported MSMEs facing the COVID shock, with 83 percent of borrowers being micro-enterprises. Among the micro units, half had an overall exposure of less than Rs10 lakh. CIBIL data also showed that ECLGS borrowers had lower non-performing asset (NPA) rates than enterprises that were eligible for ECLGS but did not avail of it. Moreover, the goods and services tax paid by MSMEs, after declining in FY21, showed an uptick, reflecting the financial resilience of small businesses. ECLGS was launched with a corpus of Rs 4.5 lakh crore that was subsequently … [Read more...] about Economic Survey 2023: ECLGS borrowers had lower NPA rates
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Why Hedge Funds May Still Have More to Contribute to a Stock Sell-Off
The S&P 500 is down about 3.7% year-to-date as of market open on Dec. 17, 2018. Market analysts have begun to very vocally sound the alarm about the possibility of a bear market — but if you listen close enough, you'll also hear whispers about a looming recession. There are certainly ways that investors can protect themselves against potential losses in the event of a market downturn. Still, market capitulation , or the phenomenon in which investors give up earlier gains when they sell off their positions out of panic, remains a real possibility. To make matters worse, it could be some of the biggest players in the financial world — hedge funds — who end up leading the trend. Where Do Hedge Funds Piece Into a Market Sell-Off? Hedge funds could contribute to a prolonged stock sell-off into the future. According to a recent report by Bloomberg , Sundial Capital Research found that hedge funds as a group bought heavily into American equities, and moreover that many of … [Read more...] about Why Hedge Funds May Still Have More to Contribute to a Stock Sell-Off
New WHO air-quality guidelines aim to cut millions of deaths linked to fossil fuels
Representative image | Image: Shutterstock The World Health Organisation (WHO) on Wednesday issued its first air quality guidelines since 2005 aimed at reducing deaths from key pollutants that cause cardiovascular and respiratory diseases. The United Nations agency, in advice to its 194 member states, slashed the recommended maximum levels for several pollutants, including particulate matter and nitrogen dioxide, both of which are found in fossil fuel emissions. ALSO READ: WHO says air pollution kills 7 million a year, toughens guidelines "Air pollution is one of the biggest environmental threats to human health, alongside climate change," it said. The WHO cited "clear evidence" of the damage inflicted by air pollution on human health "at even lower concentrations than previously understood". Read More "WHO has adjusted almost all the air quality guidelines' levels downwards, warning that exceeding the new air quality guideline levels is associated … [Read more...] about New WHO air-quality guidelines aim to cut millions of deaths linked to fossil fuels
What Is An Earnings Recession, And How Does It Affect Stock Prices?
Share to Twitter Share to Linkedin Key takeaways An earnings recession may be imminent as consumer spending slows and high costs undercut profits on Wall Street As inflation and layoffs continue, talk of an earnings recession has investors worried Investors can protect themselves by diversifying their portfolios to include defensive stocks The financial world has been sounding the alarm recently over a potential recession in the U.S. and the global economy. The Federal Reserve is still fighting inflation, big tech companies are continuing layoffs, and companies are gearing up to report their 4th quarter earnings. With that, fear of an earnings recession is mounting. Morgan Stanley's investment chief warned clients that incoming earnings reports would underwhelm investors, potentially pushing major stock indexes to two-year lows even if the economy avoids a recession. As we head into earnings season, investors are keeping watch to see if … [Read more...] about What Is An Earnings Recession, And How Does It Affect Stock Prices?
New Apple Leak Adds To iPhone 15 Price Fears
Share to Twitter Share to Linkedin Apple leaks claim that iPhone 15 Pro models are getting more expensive , and now a new leak breaking down iPhone 14 sales data may explain why. According to display analyst Ross Young, iPhone 14 sales are falling behind the iPhone 13. Apple confirmed this in its Q4 earnings call , citing supply chain constraints, but Young revealed something altogether more shocking: iPhone 14 Plus sales have collapsed. And this adds considerable weight to multiple leaks claiming Apple will shake up iPhone 15 pricing to fix this. Young, highly respected for his near-perfect track record, broke down display shipments for all iPhone 14 models in a graph (below). It shows Apple procuring a roughly equal number of displays for iPhone 14, iPhone 14 Plus, iPhone 14 Pro and iPhone 14 Pro Max models ahead of their release in August. By October, iPhone 14 Plus orders had halved before dropping a further 80% in November, with orders … [Read more...] about New Apple Leak Adds To iPhone 15 Price Fears
Vivek Bajaj points at role of high-frequency trading algos in Adani stock slump
HFT algos have changed dynamics in the stock market in fact over the past few years High-frequency trading (HFT) algos also play a part in any steep fall in stocks, reminded businessman and social-media personality Vivek Bajaj, in a video titled “Adani Adani Mat Khelo”. HFT algos run on powerful systems and they execute trades at lightning speeds. These ‘algos’, as they are known in common parlance, have been gaining dominance in the market over the past four or five years. Also read: Rise of the machines|HFTs make a killing on the Street The co-founder of StockEdge and Kredent Infoedge, Bajaj was talking in the context of Adani stocks falling sharply. A day ago, seven of the group’s stocks were trading in the lower circuit. In the video, Bajaj said that he wasn’t speaking for or against the group stocks, but was simply asking people to think for themselves and not fall for any narrative. “Inside market there are algos, they watch prices very closely. When prices … [Read more...] about Vivek Bajaj points at role of high-frequency trading algos in Adani stock slump
MC Explains| 3 Adani stocks on ASM radar. What does it mean for traders?
Adani group stocks have been placed under ASM by the National Stock Exchange Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × The market rout in the universe of listed Adani companies refuses to abate. The woes of the conglomerates continue to multiply, and for now, Adani Group's damage control tactics against the report by US short-seller Hindenburg Research have panned out disastrously. The decision of Adani Enterprises to pull back its Follow-On Public Offering (FPO), even if taken “to protect the interest of its investing community,” upended the narrative for the company, evident adequately from the freewheeling downhill collapse playing out in all the Adani Group stocks. On February 2, the NSE opted to put three firms of the Adani Group, namely Adani Enterprises , Adani Ports and Special Economic Zone , and Ambuja Cement … [Read more...] about MC Explains| 3 Adani stocks on ASM radar. What does it mean for traders?
Flying colours: Future flights to have more orderly disembarking system
Airbus converted one of its A350 XWB aircraft into the 'Airbus Explorer' to showcase its innovations (Picture Credit: Ameya Joshi) More often than not, one hears the click-click of seat belts being unfastened the moment an aircraft touches down. In some parts of the world, India included, passengers rush to deplane as soon as the aircraft halts – even if it is to wait for a bay. When India’s civil aviation operations restarted in May 2020 after the first COVID-19 wave, it was a challenge to implement row-wise deplaning. While passengers largely followed the system in the initial days, even complying with mandatory mask-wearing became tough, until it was dropped completely. The future, however, could be different. Also Read | Time to refresh airline on-time performance metric for level playing field Airbus is introducing a solution to aid orderly and safe disembarking and avoid crowding of the aisles, among other things, as it seeks to sell more planes across the … [Read more...] about Flying colours: Future flights to have more orderly disembarking system
Fair Tax Act Of 2023 Has Rate That Varies
Share to Twitter Share to Linkedin I have been having silly arguments with Fair Tax enthusiasts. The Fair Tax Act of 2023 would be a tremendous simplification of federal taxation. It does not, however, reduce 70,000 pages to 131 and it does not entirely eliminate the Internal Revenue Code. Also it does not abolish the IRS. It renames parts of it and has $10 billion or so, currently spent by the IRS to be spent by numerous state revenue agencies instead. Over my forty year career I have not found state employees to be easier to deal with than federal employees, so I don't see what we would be gaining there. And while much simpler than the current system, there is still some complexity. That is what I would like to tell you about, because some of that complexity is worrisome. All section references are to the Internal Revenue Code of 2023 as specified by the Fair Tax Act of 2023. The Variable Rate Discussions of the sales tax proposed in the … [Read more...] about Fair Tax Act Of 2023 Has Rate That Varies
Shelter-In-Place Downturn Leads Compass To Cut Staff By 15%
Share to Twitter Share to Linkedin Forecasting a massive hit from policies to stop the spread of coronavirus, New York real estate startup Compass has laid off 15% of its employees. “As we continue to hope for the best, we need to prepare for the worst, ” CEO Robert Reffkin wrote Monday in an email to his staff. “So we are joining thousands of other companies across the country in making the heartbreaking decision to let some members of our team go.” As the coronavirus pandemic has roiled stock markets and forced businesses around the United States to put operations on hold, companies have started laying off workers . Economists, including those at real estate services firm CBRE, predict the unemployment rate will jump to over 5%, from 3.5% —meaning 2 million to 3 million people could soon lose jobs. Reffkin argued the rate could go as high at 10%. The roughly 375 Compass cuts—which hit departments including marketing, finance and M&A—came … [Read more...] about Shelter-In-Place Downturn Leads Compass To Cut Staff By 15%