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Google Drops Plus, OYO to Explore Japan et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Oct 9, 2018 12:14 PM 3 min read
Editorial

Good evening reader,

 

A special report was released yesterday. Coincidentally its creators refer to it as a 'Special Report' - released by the Intergovernmental Panel on Climate Change (IPCC), a UN body mandated to provide an objective and scientific view on climate change. Titled Global Warming of 1.5 °C, this document presents the probability and impact of a 1.5 °C increase in global temperatures above pre-industrial levels. And its findings couldn't be grimmer...

 
Temperatures are already up 1.0 °C above pre-industrial levels. They're expected to cross the 1.5 °C mark between 2032-2050 i.e. well within the lifetime of many Earthlings. The effects of human activity driven global warming will persist from "centuries to millennia", causing long-term changes in the climate system, namely sea level rise, coastline inundation, hot extremes in inhabited regions, higher temperatures all across, heavy rainfall, droughts etc.

 

IPCC's earlier studies pegged these impacts at a 2 °C ceiling. This report moves the threshold even closer. 
 

To limit these effects would need CO2 emissions to decline well before 2030, which requires transitions and reductions "unprecedented' in scale. 
 

The report bashes the insufficiency of nations' present commitment, as per the Paris Climate Treaty. Though rapid changes are technically possible, they concede they're politically unlikely! 
 

Sounds like the beginning of an apocalyptic film with a very expensive ticket. IPCC estimates the cost of damages from global warming at $54 trillion. If this is not sufficient to make policymakers wake up, we wonder what will. But someone would have to switch off Fox News in the White House, and switch on Discovery channel first.

Moving on to Today's Top 6 Business Stories through our End Of Day Wrap Up: 

 

INDIA

 

OYO plans foray into the Japanese hospitality market after launch in China.

Gurugram-based hospitality company, OYO, is now looking to launch in Japan. The news comes after less than a year of the company entering Chinese market. OYO was valued at $5bn after it raised capital from SoftBank and three other investors in its latest round of funding. A formal announcement will reportedly be made in the next three to six months.

 

Government launches Sovereign Gold Bond Scheme FY19; to open from October 15.

Government launched the Sovereign Gold Bond Scheme for FY19 today, which will open subscriptions from October 15, 2018 till February 2019. The new scheme comes as an effort to reduce gold imports and limit current account deficit. The interest rate on these government bonds is set at 2.5% and capital gains tax is exempted on conversion. Sovereign Gold Bonds are government securities denominated in gold, substituting the need to hold the physical form of the metal. 

 

Indian Telecom disorder may settle down, owing to higher tariffs in the coming quarters.

After stagnant tariffs in the last three quarters due to Jio’s price war, pricing power can return to telecom companies in the coming months, as industry executives may raise rates to test market reaction. With RIL’s Jio in the market, older telecoms were forced to slash their prices, and the industry boiled down to three major players – Vodafone Idea, Bharti Airtel and Reliance Jio, as per analysts..

 

US/INTERNATIONAL

 

Parent Company, Alphabet, to shut down Google+ in the wake of data leak compromising 500,000 users.

Google Plus, the company’s social networking site, is to be shut down after the information of 500,000 users was leaked. The company hid the discovery of a bug that made user information vulnerable for months, due to fear of regulatory inspection. The bug was discovered by Google’s internal company review, Project Strobe.

 

IMF cut its estimate for Global Growth for 2018-19 to 3.7% from 3.9%.

International Monetary Fund lowered it’s forecast of global growth for 2018-19 to 3.7% as opposed to a previous estimate of 3.9% in April. Reasons cited for slowed growth rate include “rising trade protectionism” and the effects of US-China trade war.

 

US Economists win Nobel Prize in Economics for research and work on climate change and innovation.

US Economists William D. Nordhaus and Paul M. Romer, were jointly awarded the Nobel Prize for Economic Sciences. The Royal Swedish Academy of Sciences awarded the two men for "integrating climate change and technological innovations into long-run macroeconomic analysis. 

 

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