🧑‍💻 Ethical hackers needed

Good morning. Today LVMH will release its 2024 first-half results. Gucci owner Kering will release theirs on Wednesday. Hermès’ on Thursday.

An interesting week ahead for luxury fashion enthusiasts as they consider the long-term implications of their ”investments” 👜 💸 

- Ruchirr Sharma & Shatakshi Sharmaa

TABLE OF CONTENTS

• 🧑‍💻 Ethical hackers needed

• 📜 Economic Survey results - the good and the bad

• 🗞️ Bite-sized summaries

  • 🇮🇱 Israel plans to attract Indian tourists

  • 📈 Investments are up

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian markets traded narrowly on Monday ahead of the Union Budget 2024. The Sensex fell 0.13% to 80,502, while Nifty dropped 0.09% to 24,509. Mid and small-caps rebounded. Wipro shares plunged 9% after poor Q1 results, and Reliance Industries fell 3.5% following profit decline.

🌍️ International

• U.S. markets rebounded Monday after Biden's exit from the presidential race. The S&P 500 and Nasdaq gained, with tech stocks leading. Investors reassessed Trump's chances as Harris became the Democratic frontrunner. Upcoming earnings reports and economic data remain in focus. Cybersecurity firm CrowdStrike fell following Friday's global tech outage.

CRYPTOCURRENCY

🧑‍💻 Ethical hackers needed

India's largest cryptocurrency exchange, WazirX, temporarily halted trading amid an investigation into a massive $230M asset theft. The pause comes after the exchange initially stopped withdrawals when one of its multisig wallets was hacked, compromising its private keys.

Here’s the TL;DR: 

• WazirX announced on social media that the cyber attack affected its ability to maintain a 1:1 collateral ratio with assets. 

• The exchange is currently conducting a thorough forensic data examination and security audit, prioritising user safety and working to resume withdrawals soon.

In response to the theft, WazirX has launched a Bounty Programme, calling on ethical hackers to assist in recovering the stolen assets. 

The bounties include:

1. Track & Freeze: Up to £7,800 in USDT for actionable intelligence leading to fund freezing.

2. White Hat Recovery: 10% of recovered funds as an incentive.

The scale of the theft is significant, with the stolen amount representing nearly half of WazirX's total holdings based on their June 2024 proof of reserve report, which showed assets worth ₹4,203.88 Cr. (approximately $503M).

Overall: WazirX CEO Nischal Shetty assured users that the team is working tirelessly to resolve the situation and rebuild trust. The company is conducting thorough forensic examinations and security audits to enable withdrawals soon.

This incident serves as a stark reminder of the vulnerabilities in the cryptocurrency world and the need for robust security measures to protect digital assets.

Read more: Money Control

ECONOMY

📜 Economic Survey results - the good and the bad

The Economic Survey 2023-24 paints a nuanced picture of India's technological and economic landscape, revealing both promising developments and significant challenges.

On the positive side, India experienced a remarkable surge in technology startups post-pandemic, with numbers soaring to approximately 31,000 in 2023. This growth, driven by increased demand for tech solutions, has led to impressive outcomes:

• Over 1.17 lakh government-recognised startups created more than 12.42 lakh direct jobs by December 2023.

• Top sectors included EdTech (16%), Enterprise Tech (12%), and BFSI (10%).

• 45% of recognised startups emerged from tier-II and tier-III cities, indicating widespread innovation.

• 47% of startups had at least one woman director, showcasing improved gender diversity.

• Over 12,000 patent applications were filed between 2016 and March 2024, highlighting innovation.

The e-commerce sector is also flourishing, with projections to reach $275 billion by 2030. 

However, challenges such as inadequate online selling skills, data privacy issues, and online fraud persist.

Despite these positive trends, the survey revealed concerning issues, particularly in the realm of youth employability:

• Only about half of college graduates are deemed readily employable, despite 65% of the population being under 35.

• Youth unemployment has fallen from 17.8% in 2017-18 to 10% in 2022-23, but only 2.2% of 15-59-year-olds have received formal vocational training.

Key challenges include negative perceptions of vocational training, fragmented government programs, and a shortage of industry-experienced trainers. There's also a significant mismatch between skill supply and demand, limited mobility between vocational and higher education, and outdated curricula.

To address these issues, the government is implementing various initiatives:

• Partnering with industry to enhance employability

• Launching the Skill India Digital platform

• Implementing schemes like Pradhan Mantri Kaushal Vikas Yojana and the National Apprenticeship Promotion Scheme

• Collaborating with corporations on reskilling and upskilling projects

Overall: While progress has been made, bridging the skills gap remains crucial for harnessing India's demographic dividend and ensuring sustainable economic growth.

Read more: CNBC

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🇮🇱 Israel plans to attract Indian tourists - Israel plans to launch an e-visa programme for Indian travellers by year-end, making India the first country eligible for such a scheme. The Israel Ministry of Tourism aims to attract 70,000 Indian tourists by 2025 and 100,000 by 2026. Currently in its nascent stage, the programme could begin with a pilot later this year. Israel is also in talks with IndiGo and Air India to increase flight capacity and sign marketing agreements. The initiative is part of Israel's efforts to boost tourism, focusing on safety assurances and promoting various Israeli destinations to Indian travellers.

📈 Investments are up - Private equity and venture capital investments in India rose 8% year-on-year to $31.5 billion in the first half of 2024, according to a report by IVCA and EY. Deal volume increased to 654 transactions, with 69 large deals totalling $22.6 billion. Notable investments included Brookfield's $2 billion acquisition of ATC India Tower Corporation. Exits grew 18% to $11 billion compared to the previous year. Despite valuation challenges, India remains attractive for deal-making, with the PE/VC ecosystem finding innovative investment opportunities. However, fundraising declined 34% to $6.7 billion across 45 funds compared to the same period last year.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• FDI from China may benefit India in the short term but not in the long term.

• Assam to provide water to 125,000 Guwahati homes by year-end.

• Buoyed by iPhone wins, Apple set for big India PC market play.

• Edtech startup Bluelearn shuts shop, to return 70% of capital to investors.

• Karnataka IT firms propose 14-hour workday, Netizens say 'totally inhumane.'

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Aston Villa have signed midfielder Amadou Onana from Everton in a £50m deal.

• Sumit Nagal beats Lucas Klein to enter the pre-quarters of the Kitzbuhel Open in Austria.

• Lionel Messi to miss the MLS All-Star Game due to foot injury.

• Streaming Academy Awards proves to be a starry night featuring Aditi Rao Hydari, Sobhita Dhulipala, Rakul Preet Singh and others.