Arvind's Newsletter-weekend edition

1.Credit card defaults worsen in India

Rs 2.7 lakh crore is the amount of credit card default in India as of June 2024, data from TransUnion Cibil shows. The Economic Times reported that defaults worsened to 1.8% as of June 2024 as compared to 1.6% in March 2023.

The default amount in March 2023 stood at Rs 2 lakh crore. The report said the spike was because of buy now pay later schemes and consumer purchases. Experts said that millennials were maxing out credit cards and not paying back their debt.

2.India rises in global Innovation Index, now 39th in ranking

India has ascended 42 positions in the Global Innovation Index (GII) since 2015 and now ranks 39th out of 133 economies evaluated. The latest GII report, released on Thursday, September 27, showed India's remarkable progress in fostering an innovative ecosystem, reported ANI.

According to the report, India continued to top the charts as the best innovation economy in the Central and Southern Asian region. Further, India was one of the countries in the lower-middle income group to have performed above expectations on innovation relative to their level of development, continuing to be the best innovation economy among the lower-middle income group countries.

3.India IPO Frenzy Calls For Robust Foreign Flows To Avert Jitters In Listed Stocks

India's initial public offerings are in high demand, with foreign investors aggressively participating in the primary market. However, there might be trouble brewing for the already listed stocks. Given the hot issues in the primary market, analysts warn about the necessity of increased inflows to stop foreign investors from switching away from the secondary market.

The answer to increased inflows lies in the hopes of a soft landing in the world's largest economy. If soft landing comes under a bit of doubt under a rate cut cycle, inflows into risky assets will take a hit, according to Vikas Kumar Jain, equity strategist at CLSA Research.   The boom in the country's public offers is on a record trajectory as the funds raised in the last three months potentially set to the top nine months of fundraising.

So far this year, about 62 companies have mopped up a total sum of Rs 84,512.6 crore so far, the highest since 2021. Bigger issues are coming up like Hyundai Motor India Ltd., NTPC Green India Ltd., the Softbank-backed Swiggy Ltd., and Ather Energy Pvt. These four companies alone will raise over Rs 36,850 crore if and when they go public this year.

4.Tata Electronics partners with Taiwan's PSMC to launch India's first AI-enabled semiconductor Fab in Dholera, Gujarat

This fab is set to produce 50,000 wafers per month, harnessing cutting-edge automation, data analytics, and machine learning. From AI to automotive chips, this place will be the go-to for high-demand applications. With a jaw-dropping investment of Rs 91,000 crores (US$11 billion), it’s poised to create over 20,000 jobs and kickstart India’s semiconductor revolution reported Economic Times.

5.Chinese stocks post best week since 2008 after stimulus blitz; Financial Times

Chines equities have surged to their best week since 2008 after Beijing launched an economic stimulus package including a $114 bn war chest to boost the stock market. The CSI 300 index of Shanghai- and Shenzhen-listed companies is up 15.7 per cent for the week in its best performance since November 2008, when China announced a similar stimulus package in response to the global financial crisis.

The rally, which has also helped buoy European markets and industrial metals, comes as China’s leadership rushes to support the country’s capital markets, stabilise a property sector crisis and boost domestic consumption in order to meet its economic growth target of 5 per cent for the year.

The rally spread across the world, with shares of luxury giant LVMH — which is increasingly reliant on Chinese consumers — rising more than 15%. And IKEA announced its biggest-ever investment in the country shortly after the stimulus was unveiled. However some experts believe the fiscal boost is insufficient to revive the economy, which is on pace for its worst growth rate in decades besides a pandemic-era contraction. “China’s slump will require more money… and an end to the rhetoric that has hurt investor and consumer confidence alike,” the Financial Times’ board argued.

6.Shigeru Ishiba to be next Japanese prime minister after winning LDP leadership

A foreign policy hawk who has called for the creation of an Asian NATO will be Japan’s next prime minister. Shigeru Ishiba replaces Fumio Kishida, who unexpectedly announced in August that he would not run again. Ishiba, a former defense minister, has a full in-tray: The governing Liberal Democratic Party is beset by a corruption scandal, and Japan’s economy is slowly growing again after years of stagnation and deflation, while it faces rising security threats from Russia and especially China. 

Unlike Japan’s current leader, however, Ishiba has hinted at frustration over ties with the US: “I don’t think Japan is truly independent nation yet,” he wrote recently.

7.Three subtle traits of successful late bloomers

In Second Act, author Henry Oliver explores the stories and traits of late bloomers. Late bloomers often follow unconventional paths, quietly developing key qualities and skills while being overlooked.

Persistence, resilience, and quiet ambition enable them to thrive when the right opportunity arises, even later in life. Read on.

Excerpted from SECOND ACT: WHAT LATE BLOOMERS CAN TELL YOU ABOUT SUCCESS AND REINVENTING YOUR LIFE, by Henry Oliver.

8.The rise of Divorce Regret ? Amelia Abraham in The Guardian

Exploring the rising trend in re-unification among divorced couples, 6% of whom opt to remarry after legally ending the marriage.