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Economics Nobel Prize 2019 Winners Announced, Apple to Begin Manufacturing of iPhone XR in Chennai

Professor of Financial Economics and Part-time Value Investor, Transfin.
Oct 15, 2019 12:46 PM 5 min read

Economics Nobel Prize 2019 winners announced. Abhijit Banerjee, Esther Duflo and Michael Kremer win for their work in alleviating global poverty. Apple to begin production of iPhone XR in Chennai. Paytm in talks to raise $2bn from investors including Ant Financial and SoftBank.



RBI Governor to meet heads of state-run banks today.

Bankers’ Summit: Meet RBI Governor Shaktikanta Das will meet the heads of public sector banks today. The meeting, which comes a day after the bankers’ parley with Nirmala Sitharaman, is likely to focus on NPA resolution, stressed assets, restructuring of MSME loans, and ways for banks to transfer the full benefits of the RBI’s five rate cuts to borrowers. Moneycontrol  

5G spectrum auction will be done this financial year, says IT Minister.

On A Schedule: Union IT Minister Ravi Shankar Prasad has said that the 5G spectrum auction “will be done this financial year” after pricing is finalised. ANI
Meanwhile: Rivals Reliance Jio, Bharti Airtel and Vodafone Idea have joined hands – in calling on the government  to cut the price of 5G spectrum ahead of the next auction. The reserve price suggested by the telecom regulator is reportedly “seven times higher than global peers”. ET Telecom



Paytm in talks with T Rowe Price to lead funding round worth $1bn.

Money Trees: Payments platform Paytm is reportedly in talks with US asset manager T Rowe Price to lead a financing round aimed at raising $1bn. The round, if it goes through, will value Paytm at $13-15bn. 

As part of the funding round, T Rowe Price is likely to invest c. $150-200mn. Existing investors SoftBank and Alibaba are expected to infuse the rest of the capital. Some Saudi-based funds may also join in. ET Tech

Likely to rake up funds worth $2bn from SoftBank and Ant Financials.

Money All The Way: Paytm is also closing in on raising $2bn from investors including Jack Ma’s Ant Financial and SoftBank.

The funding, which will be split evenly between equity and debt will value the platform at $16bn and help Paytm take on new entrants in the fintech space, Facebook, Alphabet's Google and Walmart-owned Flipkart's PhonePe. Financial Express



HUL yet to see any signs of improvement in demand.

Waiting in Anticipation: HUL, the local unit of Anglo-Dutch Unilever, whose performance is considered a proxy for broader consumer sentiment in India, posted a 21% rise in Q2 net profit, but its volume growth stayed at the lowest rate in two years. Any signs of improvement in demand still eludes reality.

“The market remains stable and we have not seen a demand pickup yet,” said Chairman Sanjiv Mehta. ET FMCG

Consumption in rural India, which accounts for about a third of the market, has been under stress over the past three quarters.

Sales in HUL’s beauty and personal care business, which accounts for nearly half its overall sales, rose merely  4%, as the personal wash or soaps segment dragged value growth after it took price cuts to pass on lower raw material costs.

Read excerpts from Sanjiv Mehta’s post-results press conference. BS


Economics Nobel Prize 2019 Winners Announced, Apple to Begin Manufacturing of iPhone XR in Chennai



iPhone XR commercial production begins in Chennai.

iPhone, Therefore I Am: Apple has begun commercial production of its iPhone XR – in Chennai. Why is this a big deal? Prior to this, most iPhones were assembled in China. And only older models were manufactured in India. But as the US-China trade war continues, Apple has sought to diversify its manufacturing – which has been overwhelmingly based out of China – to different countries, including India and the US. The Cupertino-based company is also planning to manufacture its new iPhone 11 series in India. Inc42

Apple, Samsung could change face of private sector manufacturing in India.

Electric Dreams: Companies like Apple and Samsung can change the face of private sector manufacturing in India. On Monday, Telecom and IT Minister Ravi Shankar Prasad held a day-long round table with CEOs of many global companies to address their concerns and encourage them to expand their footprint in India. The government is eager to make India an electronics manufacturing hub. The National Electronics Policy, 2019 targets a turnover of $400bn for the electronics system design and manufacturing sector by 2025. Livemint


Economics Nobel Prize 2019 Winners Announced, Apple to Begin Manufacturing of iPhone XR in Chennai



The Nobel in Economics goes to Abhijit Banerjee, Esther Duflo and Michael Kremer for their pioneering work in tackling global poverty.

Nobel for Noble Work: On Monday, the 2019 Nobel Prize in Economics was announced. It went to economists Abhijit Banerjee, Esther Duflo and Michael Kremer for their work in alleviating global poverty. Their work argues that to tackle poverty, the issues should be broken down into smaller pieces and studied via small field experiments to answer precise questions within communities most affected. Forbes

The Royal Swedish Academy of Sciences said the winners “considerably improved our ability to fight global poverty. In just two decades, their new experiment-based approach has transformed development economics, which is now a flourishing field of research”.

The Academy stated that as a direct result of one of their studies, more than five million Indian children have benefited from effective programs of remedial tutoring in schools. Another example is the heavy subsidies for preventive healthcare that have been introduced in many countries.

Economics is About People in the End: The choice for this year’s laureates could help restore the image and relevance of the economics profession as a whole. Amidst the mathematical and Panglossian models that seem too otherworldly to be bothered with reality, people often forget that economics is about dealing with humanity’s basic problems – of food, nutrition, education, housing etc. FT



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