🙅 Trump’s Tariffs

Good morning. Billboard named Taylor Swift the 2nd Greatest Pop Star of the 21st Century. No.1 to be announced on 3rd Dec.

All bets on Queen B aka Mrs. Carter aka Beyoncé being No. 1 👑 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🙅 Trump’s Tariffs

• 📉 Byju’s under fresh scrutiny

• 🗞️ Bite-sized summaries

  • 🤖 GenAI is needed

  • ⚡️ EV production outside China?

  • ☕️ Coffee prices the highest they’ve ever been

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🇮🇳 India

• Indian stock markets ended lower on Tuesday, halting a two-day rally. IT, Media, FMCG, and Metal sectors gained, while Auto, Power, Pharma, and Oil & Gas declined 1-1.5%. Top gainers included Infosys and Asian Paints, while Adani Enterprises and Adani Ports were among the top losers.

🌍️ International

• Stock markets reached new record highs on Tuesday. Tech stocks led the rally, showcasing market resilience despite President Trump's tariff threats.

TARIFFS

🙅 Trump’s Tariffs

US President-elect Donald Trump’s plan to impose steep tariffs on China, Mexico, and Canada may open new doors for India in global trade. The proposed tariffs—a 10% levy on Chinese goods and 25% on imports from Mexico and Canada—aim to address issues like drug smuggling and illegal immigration.

Experts now believe India could benefit from these policies if it strategically positions itself as an alternative to China.

• India, with its ambitious goal of tripling exports to $2T by 2030, has already been marketing itself as a manufacturing hub under initiatives like "Make in India" and the Production Linked Incentive (PLI) scheme.

• Analysts highlight that global companies diversifying supply chains due to rising costs in China could turn to India for its scale and capacity, as seen during the COVID-19-induced “China+1” strategy.

Geopolitical expert Farid Zakaria views this as a "golden opportunity" for India to break China's manufacturing dominance. India’s strong economic growth projections, skilled workforce, and large domestic market enhance its competitive edge over smaller emerging economies like Vietnam and Malaysia.

However, challenges remain. High inflation, fiscal deficits, and India’s historically protectionist trade policies—cited by Trump during his first term—could dampen investor confidence.

Experts argue that lowering import tariffs, simplifying regulatory frameworks, and improving infrastructure are crucial to attracting foreign investment and strengthening India’s global trade role.

Additionally, India's involvement in trade agreements like the Indo-Pacific Economic Framework (IPEF) and potential re-entry into the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) could further enhance its position.

Overall: While India faces the risk of US tariffs on its exports, the focus on China offers a window of opportunity. By addressing domestic challenges and fostering a business-friendly environment, India could turn Trump’s tariff moves into a stepping stone for its export ambitions.

Read more: India Today

BYJU’S

📉 Byju’s under fresh scrutiny

Indian authorities have initiated a new investigation into Byju’s, the edtech giant once valued at $22B, over alleged financial irregularities and possible fund diversion. The probe, led by the Registrar of Companies’ Hyderabad office, follows a prior inquiry that revealed corporate governance lapses. Officials aim to determine whether the company misreported its financials or siphoned funds.

Byju’s is already grappling with insolvency proceedings in both India and the US. Last month, India’s Supreme Court reversed a bankruptcy tribunal’s order allowing Byju’s to settle debts with a major creditor, pushing the company deeper into financial distress. Control of the firm currently rests with an insolvency resolution professional, as it pleads its case in a lower court.

The company’s founder, Byju Raveendran, admitted the startup’s valuation has plummeted to zero, a stark contrast to its previous status as India’s most valuable startup. Major investors like Prosus NV have written off their stakes, signaling waning confidence in the firm's recovery.

While a previous government review cited governance issues, no evidence of fraud was found. However, this fresh probe, expected to conclude in a year, adds pressure on the embattled company. With Byju’s financial practices under intense scrutiny, the future of the once-dominant edtech player hangs in the balance.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🤖 GenAI is needed - A PwC report highlights that Indian executives prioritize cybersecurity and Generative AI investments, with 93% planning budget increases for 2025. Cyber risks, especially cloud-related threats, are a top concern for 55% of leaders, though 50% feel unprepared. Medium and small enterprises (MSMEs) are urged to treat cybersecurity as critical, as risks impact businesses of all sizes. Despite increased spending, 44% of organizations have faced data breaches costing over $500,000 in recent years. Only 20% employ robust cyber risk quantification, indicating missed opportunities to strengthen defences. Generative AI leads investment growth, with 87% increasing funding in the past year.

⚡️ EV production outside China? - LG Energy Solutions, operator of the EU’s largest EV battery factory, is urging the bloc to reduce energy costs and prioritize green energy access for strategic industries to counter growing Chinese competition. The Polish facility, operating at half capacity due to weakened EV demand, highlights Poland’s high electricity prices from coal reliance as a challenge. LG plans to produce affordable lithium-iron-phosphate batteries by 2025 and calls for priority cheap energy access in Poland's economic zones to boost competitiveness. Stricter EU carbon regulations add urgency, as automation and data storage drive energy demands, risking Europe’s position in the global EV market.

☕️ Coffee prices the highest they’ve ever been - Coffee prices have surged to their highest levels since 1997, driven by supply fears from a prolonged drought in Brazil, the top producer. Arabica coffee futures rose 64% this year, with prices reaching $3.0935 per pound. While recent rains improved flowering, there are concerns that flowers may not develop into cherries, reducing next season’s output. Robust export demand and dwindling stockpiles add to the pressure, with Brazil’s coffee inventories projected to drop 26% by June 2025. This surge impacts consumer budgets, as roasters hike prices to offset shrinking margins, despite an overall easing of global food inflation since 2022.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• California is ready to pick a fight with Trump if he kills the federal EV tax credit.

• How a pro-Putin TikTok star topped Romania’s presidential poll.

• Twitter competitor Bluesky is breaking the rules, says the EU.

• US v. Google redux: all the news from the ad tech trial.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Box office: Wicked sings to nearly $16M on Monday, a November record.

• International Emmys 2024: The Night Manager loses best drama series award to French-American-Japanese Series Les Gouttes de Dieu.