I welcome you all to this week’s top news regarding Investment, Economy & Personal Finance.
Oil & Steel Prices Peaking New High!
Oil futures continue to soar as Russia’s army consolidates its hold on Ukraine. Brent crude oil reached a record high of $110 per barrel, the highest level in over eight years. The increase comes despite members of the International Energy Agency agreeing to release 60 million barrels of oil from emergency reserves.
As a result of the Russia-Ukraine crisis, steel prices in Europe have risen 10% in the previous two days. Russia is a significant exporter of steel in international markets. According to reports, with Japanese and Korean steel mills unable to export significant amounts of steel, this creates an opportunity for Indian steel industry players, with numerous inquiries and orders coming from Europe and America.
According to reports, energy accounts for 50% of the steel industry’s input (raw material) expenses. Prices for cooking coal and natural gas have increased in the past two weeks, prompting enterprises to increase prices to offset input cost constraints.
Ethanol Blending - An Opportunity as sweet as Sugar.
With Brent crude nearing $116 per barrel and a sharp increase in domestic gasoline costs looming, sugar producers find themselves in a favorable position as ethanol blending may increase. Currently, the country is dependent on oil imports to cover more than 80% of its oil requirements. When organic materials are fermented, they become liquid fuel called ethanol. Ethanol, which is mostly made from sugarcane, is a type of fuel.
The Indian Sugar Mills Association (ISMA) estimates that the nation now has a capacity of 722 million liters of ethanol per year, which may be raised to 1,500 million liters per year by 2025. Blending ethanol with gasoline can help reduce the country’s dependence on oil that costs a lot to get, and it can also help farmers make more money.
Russia Ukraine War Impact on India:
As the World Bank previously stated, the current Russia-Ukraine conflict would have global economic implications. At the moment, the crisis has had a significant impact on India’s import and export industries. Some businesses are also at risk. These businesses make things like textiles, plastics, steel, and compressed natural gas (CNG).
Indian small businesses and MSMEs have also been affected by the broken supply chain, price increases that were not expected, stranded inventory, and uncertainty.
News for the Week:
- Google suspended payments to Russia’s state-owned news outlet RT and other channels for advertising on their websites, apps, and YouTube videos, a decision similar to one made by Facebook during the invasion of Ukraine.
- Binance (the world’s biggest Bitcoin exchange) has said that it will close the accounts of people who have been banned from Russia, but it will not “unilaterally” close the accounts of all Russian users.
- According to a new analysis by CRE Matrix and Colliers, startups presently occupy 10% of office space in India. This has increased from 4% in 2017 to 13% by 2024.
- Madhabi Puri Buch has been appointed the Securities and Exchange Board of India’s first female chairman (SEBI). She is also the first private-sector employee to occupy the role.
- Panasonic says it will begin mass manufacturing of lithium-ion batteries for Tesla at a factory in Japan by the end of March 2024.
- In an interview, Finance Minister Nirmala Sitharaman said India may reconsider the timing of the initial public offering of Life Insurance Corporation of India, the country’s state-owned insurer, in the aftermath of Russia’s invasion of Ukraine.
- Economic sanctions implemented by the United States and other nations have damaged Russia’s economy over the past week, freezing about half of the country’s central bank assets. Russians have been rushing to spend their rubles while withdrawing dollars, euros, and other foreign currencies from banks as the value of their own currency has plummeted.
- The MeitY Startup Hub, an initiative of the Ministry of Electronics and Information Technology (MeitY), and Google announced the launch of a cohort of 100 Indian early-to mid-stage entrepreneurs as part of the Appscale Academy.
- Sony Corporation and Honda Motor Co., Ltd. of Japan announced a joint venture to develop and market battery-powered electric vehicles, adding that they were open to bringing in more partners.
That’s all the major updates for the week. See you next Sunday at 10:00 am. Until then, Work hard, stay safe, and most importantly… Always believe in India!
Week’s Website Articles & YouTube Videos:
Website link: Best Way to Invest Rs.5,000 per month to Become Crorepati!
Website link: High ROE Stocks in India - 2022
YouTube link: Russia-Ukraine War Impact on Indian Stock Market! What Should the Retail Investor Do? #RussiaUkraine
Website link: What is Coffee Can Investing? Top 15 Companies to Own:
YouTube link: Coffee Can Investing - My Top 5 Picks for Falling Market #RussiaUkraine
YouTube link: 3 Simple Habits To Get Out of Poverty and Become Rich! #Habits