🎥 Bollywood shakeup

Good morning. Yesterday, Donald Trump donned an apron and worked a shift at McDonald's on Sunday as a publicity stunt, continuing to accuse Kamala Harris of lying about her past employment with the fast-food chain.

If we have learnt anything from this Presidential Election Campaign, it’s this - in the name of publicity, anything goes 🍟 🇺🇸 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🎥 Bollywood shakeup

• 🔦 Cuba's power grid crisis

• 📱 Gen Z's economic power in India

• 🗞️ Bite-sized summaries

  • 🛳️ Hygiene standards

  • 📉 Inflation rates

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Stocks declined. Despite HDFC Bank's 2.6% gain, profit booking dominated as major indices faced selling pressure. Broader markets also declined, with MidCap and SmallCap indices dropping over 1.6%. Key sectors like Media and Realty experienced significant losses.

🌍️ International

• The Dow and S&P 500 closed lower on Monday, retreating from Friday's record highs. Treasury yields rose, causing concern about potential delays in interest rate cuts. Investors are cautious about high valuations ahead of major company earnings reports. The Nasdaq gained, boosted by Nvidia. Boeing jumped after offering a new wage deal. Humana and Cigna fell amid merger talk rumours.

BOLLYWOOD

🎥 Bollywood shakeup

In a major move in the Indian entertainment industry, Adar Poonawalla, CEO of Serum Institute of India, has announced a ₹1,000 Cr. deal to acquire a 50% stake in Karan Johar's Dharma Productions and Dharmatic Entertainment, valuing the company at ₹2,000 Cr..

This comes at a pivotal time for Dharma Productions, which recently reported its lowest net profit in a decade—a 94.5% year-on-year drop to ₹59 lakh for FY24, alongside a 50.2% revenue decline to ₹520.2 Cr..

• Under the agreement, Karan Johar will retain his 50% stake and continue as executive chairman, driving the company's creative vision. Apoorva Mehta, Dharma's CEO, will collaborate with Johar on operational aspects.

• The partnership aims to integrate advanced technologies, expand multilingual productions, and build large entertainment franchises. Johar had reportedly explored monetizing his stake with other major companies, such as Saregama and Reliance Industries, before sealing this deal with Poonawalla.

Experts believe this investment could help revitalise the Hindi film industry, which has been dominated by big-budget films, now accounting for 85-90% of post-pandemic box office revenues. Dharma has faced challenges recently, with underperforming releases like Jigra, Mr. and Mrs. Mahi, and Yodha. However, analysts suggest this equity-led partnership will allow Dharma to continue investing in large-budget projects.

Overall: Poonawalla expressed excitement about working with "one of the most iconic production houses," while Johar called it a perfect blend of "emotional storytelling and forward-thinking business strategies." The Raine Group served as the financial advisor for the deal, with AZB & Partners and JSA as legal counsel for the respective parties.

Read more: Business Standard

POWER CRISIS

🔦 Cuba's power grid crisis

Cuba is facing a severe electricity crisis as its national power grid collapsed for the fourth time in just 48 hours, leaving approximately 10 million people in darkness. The crisis began on Friday when the island's largest power plant shut down, triggering a series of grid failures that have highlighted the fragile state of Cuba's infrastructure.

The capital city of Havana has been particularly affected, with only scattered businesses and homes running on generators. The situation has sparked small protests, including "cacerolazos" (pot-banging demonstrations) and road blockades in some neighbourhoods, prompting President Miguel Diaz-Canel to make a rare appearance in military uniform urging citizens to maintain calm.

Adding to the challenges, Tropical Storm Oscar has made landfall on the eastern end of the island, potentially hampering restoration efforts. The government has taken the unprecedented step of cancelling schools through Wednesday and asking non-essential workers to stay home on Monday.

The crisis stems from multiple factors:

• Deteriorating infrastructure

• Severe fuel shortages

• Reduced fuel deliveries from key suppliers like Venezuela and Mexico

• Internet connectivity has dropped significantly

• Many areas are also facing water shortages

While Cuban officials blame the U.S. trade embargo and sanctions for their difficulties in acquiring fuel and spare parts, the U.S. denies any role in the grid failures. The government's initial promise to restore power by Monday or Tuesday now seems uncertain given the latest collapse.

For ordinary Cubans, the situation is becoming desperate. Many are dealing with spoiled food, dead phones, and no water supply. The government's energy minister, Vicente de la O Levy, acknowledges the inconvenience but maintains that most Cubans understand and support their restoration efforts.

This ongoing crisis represents one of the most significant challenges to Cuba's infrastructure in recent years, with no clear resolution in sight.

Read more: Reuters 

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🛳️ Hygiene standards - The CDC's 2024 report reveals alarming hygiene violations on several cruise ships, with ten vessels scoring below satisfactory cleanliness levels. Hapag-Lloyd's Hanseatic Inspiration received the lowest score of 62, with violations like maggot infestations and improper food storage. Other ships, including Caribbean Princess and Carnival Breeze, faced issues like insect infestations and overflowing trash. Despite these concerns, some ships, such as Carnival Spirit and Disney Fantasy, achieved perfect cleanliness scores. The report emphasizes the importance of reviewing health records before booking cruises to prevent the risk of gastrointestinal illnesses.

📉 Inflation rates - A new paper by senior RBI staff has revealed that the central bank's cumulative rate hikes of 2.5 percentage points since May 2022 have reduced headline inflation by 1.60%. The study highlights that these rate increases helped anchor inflation expectations and modulate aggregate demand, leading to disinflationary effects. While the RBI has previously downplayed the impact of high interest rates on growth, this research emphasises the effectiveness of monetary policy in controlling inflation. The paper also notes that while anticipated policy changes don't affect long-term rates instantly, unexpected rate changes significantly impact various market segments.

HEADLINES

🧑‍🍳 What else is cookin’?

What’s happening in India (and around the world 🌍️)

• India's chip industry: From stalled to successful.

• Indian Navy chief on UAE visit to boost defence cooperation.

• Elon Musk offers $1M daily prize for signing his petition.

• Boeing machinists to vote on new proposal with 35% raises that could end strike.

• Disney will name Bob Iger’s replacement in early 2026; James Gorman to become board chair next year.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Tom Holland to star in Christopher Nolan’s latest film.

• ‘Blade Runner 2049’ producer sues Elon Musk’s Tesla, Warner Bros. Discovery over AI images.

• Ishan Kishan makes comeback, named in India A squad led by Ruturaj Gaikwad.

• Emerging Teams Asia Cup: Rasikh Salam, Abhishek Sharma shine in India A's seven-wicket win vs UAE.