Arvind’s Newsletter

Reliance Jio IPO Likely In 2025 At $112-Billion Valuation, Says Jefferies

India's primary market could witness yet another mega issue as Mukesh Ambani's Reliance Jio Infocomm Ltd. could potentially be listed in calendar year 2025, according to Jefferies. The telecom company is focusing on monetisation and subscriber market share gains, by leading the way in the recent tariff hikes while keeping feature phone tariffs unchanged, the brokerage said in a July 10 note.

These moves create a case for a possible public listing in CY25," said Bhaskar Chakraborty, equity analyst, Jefferies, in the note. Reliance Jio could look to IPO or spin-off Jio, as it did with Jio Financial Services Ltd., it said. The decision to spin off or go via the public offering route depends on balancing the upside potential of full value unlocking in the spin-off with the lower controlling stake.

2.IEA cuts 2025 oil demand forecast, lifts supply view

The International Energy Agency trimmed its forecast for oil-demand growth next year and raised supply estimates, a scenario that would likely leave the market in surplus, reinforcing its expectations of a major glut this decade.

The Paris-based organization cut its projections for next year’s oil-demand growth to 980,000 barrels a day from 1 million barrels a day previously, saying it now sees total demand at an average of 104 million barrels a day.

Demand in OECD countries is facing a structural decline as the industry adopts energy-efficiency measures and rolls out electric vehicles, while economic growth remains weak despite major central banks starting to cut interest rates, it said in its latest monthly report.

This year, demand is expected to grow by 970,000 barrels a day, slightly above the previous forecast of 960,000 barrels a day, driven by developing nations. Total demand is estimated to reach an average of 103.1 million barrels a day.

In the second quarter, growth slowed to 710,000 barrels a day, the lowest quarterly increase in over a year, the IEA said. In China, oil consumption contracted in both April and May, while demand for industrial fuels and petrochemical feedstocks was particularly weak.

The global slowdown reflects a normalization of growth rates after the fluctuations caused by Covid-19 in recent years, according to the agency. For instance, demand for jet fuel is now rising toward its midyear peak as flight activity increases over the summer. However, year-on-year growth is slowing sharply compared to levels in 2023, when the final stages of the post-pandemic recovery in air travel took place.

3.But the World’s largest oil company -Aramco-bets on the enduring power of petrol

Saudi Aramco is betting the internal combustion engine will be around for a “very, very long time” as the world’s largest oil company spots a business opportunity from the rise of the electric car.

The state-owned oil group, which made $500bn in revenues last year mainly from producing and selling crude, last month took a €740mn, 10 per cent stake in Horse Powertrain, a company dedicated to building fuel-based engines.

The calculation by Saudi Aramco and the other shareholders in Horse, Chinese carmaker Geely and its French peer Renault, is that as the industry stops designing and developing its own combustion engines, it will start buying them from third parties.

“It will be incredibly expensive for the world to completely stamp out, or do without internal combustion engines,” said Yasser Mufti, the executive vice-president at Saudi Aramco responsible for the deal. “If you look at affordability and a lot of other factors, I do think they will be around for a very, very long time.”

Asked if he thought there would be internal combustion engines forever, Mufti said yes. Saudi Aramco has previously said it believes that even in 2050, more than half of all cars will still run on some sort of fuel. 

4.Starlink Mini is now available for anyone in the US to roam

SpaceX’s Starlink Mini dish — which Elon Musk says “will change the world” — is now available to anyone in the US. The diminutive internet-from-space kit neatly integrates the dish and Wi-Fi router into a weatherproof package that’s significantly smaller and uses less power than previous Starlink kits.

The laptop-sized all-in-one dish can even be powered directly by a USB-PD power source capable of 100W (20V/5A) — that means anywhere from an hour of usage when using a small power bank to a few days when connected to a solar generator.

Initially, Starlink Mini was only available as an add-on for current Residential subscribers in the US. Now, just a few weeks since launch, it’s available to a wide spectrum of vanlifers and digital nomads who want to stay connected no matter where they set up shop.

The Starlink Mini hardware costs $599 and is available with both Regional and Mini Roam services. Regional costs $150 per month for unlimited portable data in North America, with an option to pay per GB for in-motion use. Mini Roam is just $50 per month but is limited to 50GB of portable or in-motion data on the continent, with additional data priced per GB. Both services can be paused between adventures.

5.Debunking 4 popular myths about intermittent fasting

About one in 10 Americans practiced intermittent fasting in 2023. The diet calls for fasting at some times and eating freely at others.

Despite intermittent fasting’s growing popularity and studies that find it to be safe and effective, the general public believes numerous myths about the practice’s safety.

In a new paper, scientists dispelled the idea that intermittent fasting can negatively affect sex hormones, lead to greater muscle loss than other diets, worsen diet quality, and lead to eating disorders.

6.NATO openly accused China of supplying Russia’s full-scale invasion of Ukraine. 

A joint declaration from the 32 members of the security alliance called Beijing “a decisive enabler of Russia’s war,” and demanded it stop providing “weapons components” and other military technology to the Kremlin. The statement marks “a major departure for NATO,” The New York Times reported, having previously only mentioned China in “the blandest of language.”

NATO warned China could face unspecified consequences to “its interests and reputation,” likely meaning economic sanctions, for enabling “the largest war in Europe in recent history.” China rejected the accusations as “lies and smears.” Tensions between the US and China, in particular, are already high as Beijing steps up its activities in the South China Sea, menacing US allies.

7.Tesla CEO Elon Musk prioritized China over India when he canceled a highly anticipated visit to New Delhi, the Financial Times reported.

Musk was due to meet Indian Prime Minister Narendra Modi in April and scout a potential location for a massive Tesla factory, but the last-minute change of plans sparked speculation about Musk’s commitment to India.

His employees reportedly convinced him to snub Modi and focus on a Beijing trip instead, where the tech mogul made strides toward getting approval for Tesla’s self-driving technology in China.

“Musk wants to be everywhere, and that’s how he operates, so he needs China and India,” one insider said. He is reportedly still “obsessed” with India’s potential as an auto market and manufacturing hub.

8.Tripadvisor has released its 2024 Travelers' Choice Awards Best of the Best Things to Do. This annual report highlights the highest-rated attractions and experiences around the world based on thousands of Tripadvisor reviews.