Chandrayaan 2 slated to land on the moon tomorrow. Slack share price drops as it posts heavy losses in first earnings report after going public. WeWork mulls halving valuation ahead of its IPO. Federal Reserve expected to cut rates by another quarter points.
Table of Contents
Recap: In an attempt to address the problem of inadequate interest rate transmission, the RBI on Wednesday issued a notice which made it mandatory for banks to link all new floating rate loans given to borrowers in the personal, retail and Micro, Small and Medium Enterprise (MSME) categories to external benchmarks.
…But: Now while the move was greatly expected to make home loans and auto loans cheaper, it seems like that may not be the case.
The Downside: Pegging the loans to an external benchmark, including the repo rate would mean frequent changes in the rates of the loans. Subsequently, this could lead to wide fluctuations in EMIs for customers.
Moreover, banks may begin to charge a higher risk premium to cover the cost of deposits, which do not move in tandem with any of the RBI-suggested external benchmark interest rates.
Waiting to Make History: Former ISRO chief Madhavan Nair said Chandrayaan-2 is the most complex mission attempted by ISRO till date. He also stated that the landing of rover Vikram could be even more difficult due to the real image transferring and the onboard computer will have to decide where to land safely on its own. Multiple cameras are being used to send live images back to ISRO to decide on the right area for landing. If the landing is successful, India will become the first nation to soft-land on the Moon's South Pole, that too on the first try. T
You can catch the Vikram lander descend onto lunar surface live from 1AM tonight here.
All Work and No Joy: Shared working spaces company, WeWork’s parent company WeCompany is reportedly considering cutting the value of its upcoming share offering in half amidst growing skepticism over its business model and corporate governance.
The We Company is in talks to value itself at c. $20bn-$30bn. This is well below the $47bn valuation at which the company raised money in January.
Here’s a closer look at what is transpiring at the company which changed the way we all work.
Collaboration and messaging app Slack on Wednesday announced its first earnings report after going public in June.
Bitter Sweet Moments: While Slack reported a 58% jump Y-o-Y in Q2 revenue to $145m, it witnessed losses surge ten-fold as it posted a net loss of c. $360m, including $8.2m in compensation for service outages.
The stock price fell 13% to $26 on the news in after-hours trading (albeit recovering somewhat the next day) - its lowest point since its direct listing on June 20 when it went the price rose high as $42.
All is Well: The company however argues that the hurt is only temporary. Meanwhile, the platform is building the requisite infrastructure to support larger enterprise businesses with thousands of users – all in an attempt to take on its biggest rival, Microsoft’s Teams.
As the two prepare to take each other head-on, the two platforms have evolved fiercely – and now have become more similar than ever. Here’s a closer look by Digital Trends at Slack and Teams to understand how they differ, and which would work best for you.
To Cut or Not to Cut, That’s No Longer the Question: The Fed is widely expected to cut rates further later this month, most probably delivering a quarter-point cut. The easing has been necessitated by the still-full-blown US-China trade war and dampening economic numbers and forecasts. Further rate cuts have been called on for by commentators and experts, to say nothing of President Trump, who routinely lambasts the Central Bank for not cutting rates more robustly and recently suggested Jerome Powell was a bigger threat to the US than Xi Jinping.
(I Can't Get No) Satisfaction: But markets are likely to be dissatisfied with the expected quarter-point cut. A gradual easing is not what investors want – like Trump, it would seem they too seek aggressive easing.
(Don't want to miss out on these End Of Day Wrap Ups? Subscribe Now to our WhatsApp Feed and get the day's Top Business stories straight on your favourite messaging app.)