🇺🇸 Trump's Trade Memo

Good morning to you and Melania Trump’s hat which did not blow away despite the winds 🎩 

- Ruchirr Sharma & Shatakshi Sharmaa  

TABLE OF CONTENTS

• 🇺🇸 Trump's Trade Memo

• 🚚 Zomato sees drop in net profit

• 🗞️ Bite-sized summaries

  • 🇺🇸 The final act

  • 🛒 How can MSME’s help India?

• 🧑‍🍳 What else is cookin’?

• 🍿 Entertainment, Entertainment, Entertainment

MARKETS

🌍️ International

• U.S. stock markets were closed on Monday.

AMERICA

🇺🇸 Trump's Trade Memo

President Donald Trump plans to unveil a trade memo addressing U.S. trade deficits and unfair practices but will hold off on imposing immediate tariffs, marking a shift from his campaign promises of aggressive trade actions.

The memo will instruct federal agencies to evaluate trade relationships with China, Canada, and Mexico while scrutinizing compliance with the USMCA and China’s 2020 trade agreement with the U.S.

The announcement triggered significant market reactions. The U.S. dollar fell against major currencies, while global stocks surged, with markets viewing the measured approach as less disruptive than anticipated.

Trump had previously pledged steep tariffs, including a potential 25% surcharge on imports from Canada and Mexico, to curb illegal migration and drug trafficking. These measures would have upended trade agreements and supply chains and raised costs, sparking widespread concern among trade experts.

However, the memo signals a deliberate strategy, focusing on trade investigations under legal frameworks like the Section 232 National Security Trade Law and the Section 301 unfair trade practices statute.

While the directive reflects Trump’s emphasis on addressing trade imbalances, it also indicates a methodical path that might reduce immediate economic disruptions. This approach has reassured investors and altered initial expectations of drastic tariff implementations.

Bottom Line: The trade memo outlines Trump’s commitment to reshaping U.S. trade relations without immediate tariffs, providing a glimpse of his strategic focus on long-term economic goals.

Read more: Economic Times

STARTUPS

🚚 Zomato sees drop in net profit

Zomato reported a 57% year-on-year (YoY) decline in net profit for Q3 FY25, falling to ₹59 crore as its quick-commerce subsidiary, Blinkit, increased spending to counter rivals such as Zepto and Swiggy. This performance contrasted with a 64% YoY jump in Zomato’s operating revenue, which stood at ₹5,405 crore, driven by rapid growth in Blinkit despite slower growth in the core food delivery business.

Key Financial Highlights:

• Blinkit’s Losses: Adjusted EBITDA loss rose to ₹103 crore in Q3 FY25, up from ₹8 crore in Q2 and ₹89 crore YoY.

• Gross Order Value (GOV): Blinkit reported a 120% YoY growth in GOV, reaching ₹7,798 crore.

• Stock Performance: Zomato’s stock closed at ₹230.70 on the NSE, down 7.3% post-results.

Expansion and Strategy:

Blinkit has been aggressively expanding, with 368 new dark stores added in Q3, bringing the total to 1,007, surpassing its March 2025 target. The company now aims to hit 2,000 stores by December 2025, far ahead of its original 2026 timeline.

• CFO Akshant Goyal’s View:
  “Our strong core business enables us to accelerate expansion. Losses are a natural outcome of scaling in a large market with clear first-mover advantages,” he said during an analyst call.

• Marketing and Competition: Blinkit increased digital marketing expenses to compete in saturated markets. Despite higher initial spending, CEO Albinder Dhindsa highlighted strong customer retention rates, enabling market share growth.

Competitive Landscape:

• Zepto and Swiggy:
  Rivals Zepto and Swiggy Instamart have also been scaling rapidly, with Zepto raising $1.3 billion and Swiggy raising ₹4,500 crore via an IPO.

• Capital Infusion: Zomato strengthened its financial position with ₹8,500 crore raised through a qualified institutional placement (QIP) in November 2024.

Challenges and Outlook:

The company’s deviation from its breakeven guidance reflects the short-term financial strain of rapid expansion. However, management remains optimistic about sustained triple-digit GOV growth for Blinkit in FY25 and FY26.

Bottom Line: Zomato’s aggressive investments in Blinkit demonstrate its commitment to dominating the quick-commerce space, even as it faces intensified competition and short-term financial pressures.

Read more: Economic Times

GENERAL OVERVIEW

🗞️ Bite-sized summaries

🇺🇸 The final act - In his final act as President, Joe Biden issued pardons for his family, allies, and aides, citing politically motivated attacks. The pardons, which included his siblings, son Hunter, and figures like Dr. Anthony Fauci and Gen. Mark Milley, aimed to protect against potential retaliation by the incoming Trump administration. Biden explained the actions were necessary to counter ongoing political vendettas, as Donald Trump had warned of targeting those who challenged him over his 2020 election loss and the January 6 Capitol attack. None of Biden’s family members had been charged with crimes, making the move both preventive and symbolic.

🛒 How can MSME’s help India? - India’s 63 million MSMEs can significantly boost economic growth, contributing 40% to GDP by 2030 with the right investments and reforms. Budget 2025 must prioritize supportive fiscal policies, infrastructure upgrades, and improved access to technology. Key measures include simplified tax compliance, enhanced access to credit, and incentives for exports and R&D. Experts recommend public-private partnerships for MSME credit insurance, targeted digital infrastructure, and skill development to address challenges like liquidity and operational inefficiencies. Strengthening the MSME ecosystem will propel India toward its $5 trillion economy goal, making these enterprises pivotal to sustained growth and innovation.

HEADLINES

🧑‍🍳 What else is cookin’?

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

• ISRO's docking success could unveil new commercial opportunities for space firms.

• Donald Trump to use one of his first executive orders to create DOGE.

• Government launches Entity Locker for secure document management.

• Paytm targets profitability within two quarters.

• Govt allows export of 1 million tons sugar in ongoing 2024-25 season.

CULTURE

🍿 Entertainment, Entertainment, Entertainment

• Australian open 2025 is in full swing: Quarter Finals updates here - Coco Gauff is out.

• Kannappa: Akshay Kumar embodies divine spirit as Lord Shiva in first-look poster.