💱 Currency management

Good morning and a happy Monday.

Fun fact: the real name for a hashtag is an octothorp #smart

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 💱 Currency management

• 🛫 Boeing workers strike

• 🗞️ Bite-sized summaries

  • 📡 Faster plane WiFi, coming to you (soon)

  • 👵 No more early retirement in China

  • 👋 Kejriwal resigns

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• The market took a breather and ended on a flatter note after the previous day’s sharp uptick. Most sectoral indices, except FMCG, Healthcare, and OMCs, ended positively. Investor sentiment remained cautious amid mixed economic signals and upcoming Federal Reserve decisions.

🌍️ International

• U.S. stocks rose as traders increased bets on a potential Federal Reserve rate cut, with expectations for a 50 basis point cut climbing to 49%. Adobe and Boeing saw declines due to earnings forecasts and strikes, respectively.

CENTRAL BANK

💱 Currency management

The Indian government is on a mission to modernising currency management through the RBI to help them:

1. Meet growing cash demand

2. Improve efficiency and security

3. Enhance environmental sustainability

4. Adopt global best practices

Their goal? To maintain public trust, ensure economic stability, and adapt to evolving financial needs in India.

To assist with this, the Reserve Bank of India (RBI) is revamping its currency management infrastructure over the next 4-5 years. This initiative aims to meet the future cash needs of India's growing economy by ensuring adequate storage and handling capacity.

Key aspects of the modernisation plan include:

1. Creating greenfield currency management centres

2. Introducing warehouse automation

3. Installing advanced security and surveillance systems

4. Implementing an inventory management system

5. Establishing a centralised command centre

Looking ahead: Despite a slowdown in the growth rate of Notes in Circulation (NIC) over the past three years, the RBI anticipates continued positive growth in the foreseeable future. As of March 2024, NIC volume stood at 146.87 billion pieces, while Coins in Circulation (CIC) reached 132.35 billion pieces.

The RBI's move mirrors similar initiatives by central banks in countries such as Austria, Egypt, France, Germany, and the USA, which have faced challenges due to increasing banknote volumes and associated costs and security risks.

Read more: Economic Times

BOEING

🛫 Boeing workers strike

Boeing's production lines ground to a halt last Friday as over 30,000 factory workers staged a walkout. This historic strike, the first by Boeing's largest unionized group since 2008, paralyzed manufacturing across the company's Seattle hub, affecting even its bestselling 737 Max aircraft. 

Here’s the tea: 

• The strike comes after workers overwhelmingly rejected a new labour contract, with 94.6% voting against the proposal and 96% approving the strike. 

• The International Association of Machinists and Aerospace Workers (IAM) cited unfair labor practices as a key reason for the action.

• Workers felt the proposed 25% wage increase over four years didn't sufficiently address rising living costs (the union initially sought raises of about 40%)

This development poses significant challenges for Boeing, which is already grappling with production delays, safety concerns, and financial pressures. The company's CFO, Brian West, expressed disappointment but emphasised Boeing's willingness to return to negotiations.

However, here’s the kicker - the strike's impact extends beyond Boeing:

• Airline schedules and fleet plans may be disrupted

• Suppliers could face instability

• Boeing's cash flow and debt situation may worsen

Overall: As the strike unfolds, all eyes are on Boeing's new CEO, Kelly Ortberg, who urged workers to accept the contract just a day before the vote. The outcome of this labour dispute could have far-reaching implications for Boeing's recovery efforts and the broader aviation industry.

Read more: CNBC

GENERAL OVERVIEW

🗞️ Bite-sized summaries

👋 Kejriwal resigns - Delhi Chief Minister Arvind Kejriwal announced his resignation at a party meeting, stating he would step down within 2 days. He emphasized he would not return as Chief Minister until the people decide in the upcoming elections. Kejriwal called for early elections in Delhi, requesting they be held in November instead of February. But Kejriwal didn’t go away quietly. Kejriwal also accused the Modi government of being more dictatorial than the British and urged other non-BJP leaders not to resign if they face legal charges. The Delhi Congress welcomed his resignation.

👵 No more early retirement in China - China will raise its retirement age starting next year to address its ageing population and shrinking workforce. The new policy, approved by the National People’s Congress, will be implemented over 15 years. The retirement age will increase to 63 for men (currently 60) and up to 58 for women (currently 50-55 for women), depending on their jobs. Experts highlight demographic pressures, as China's elderly population is expected to reach 400M by 2035. The change aims to ease pension fund pressures but may pose challenges amid high youth unemployment.

📡 Faster plane WiFi, coming to you (soon) - United Airlines now has plans to offer free inflight Wi-Fi using Starlink, SpaceX's satellite service. This deal is the largest for Starlink in the aviation sector. United aims to equip over 1,000 planes with the service, providing "gate-to-gate" connectivity. Other airlines like Delta and Hawaiian have also invested in faster Wi-Fi, with Delta offering free internet for SkyMiles members. Starlink has been expanding its reach since 2020, now operating around 6,000 satellites and serving over 3 million customers globally.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• Crypto data and research firm PYOR launches 'Namaste Arbitrum' to educate students on blockchain technology.

• India's decade will be SBI's decade, too...as the best, most valued bank: Challa Sreenivasulu Setty, Chairman.

• Tracking inflation: A look at DGGI's latest report and its connection with online gaming.

• Shein and Temu prices are set to get a lot higher as Biden takes aim at retailers linked to China.

• Pfizer says its experimental drug for deadly condition that causes appetite and weight loss in cancer patients shows positive trial results.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• SIIMA 2024: Mrunal Thakur, Nani win big - full list of winners here.

• Tottenham 0-1 Arsenal: Gabriel Magalhaes heads winner as Gunners stay on Man City's tail with derby victory.