Endeavor Careers Choicest Blogs: Weekly Current Affairs: June 2022, Week 01

Welcome to the Endeavor Editors’ Weekly Current Affairs Choicest Blog series. Get a weekly roundup – of news from business, economy, markets, policy, and more. A quick capsule format news summary and update to keep you abreast with all the latest current affairs.

1) International News and Global Economy

Russia’s War on Ukraine at 100 Days has no end in sight, threatening Global costs

The biggest conflict between European states since World War II has undergone swings of fortune that offer a reminder of war’s unpredictability. The failure of Russia’s early blitzkrieg fuelled Ukrainian confidence that is ebbing as Russia concentrates its firepower on a narrower, grinding advance. On Friday, Russian forces advanced behind heavy artillery barrages in eastern Ukraine’s Donbas region, where they have slowly but steadily gained ground, sending tens of thousands of civilians fleeing westward. Many Western governments fear a destructive stalemate looms, with Russian President Vladimir Putin and Ukraine’s defenders locked in a struggle that is viewed as existential by both.

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Timeline of events of Putin’s invasion as the Russia-Ukraine War rages for over 100 Days

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Saudi Arabia bans international flights to India and 15 other countries over fresh Covid-19 outbreaks

Following the re-outbreak of Covid-19 and the rapid surge in the number of daily Covid infections over the past few weeks, Saudi Arabia has banned its citizens from traveling to sixteen countries, including India. The sixteen countries where the citizens of Saudi Arabia are banned to travel apart from India include Lebanon, Syria, Turkey, Iran, Afghanistan, Yemen, Somalia, Ethiopia, the Democratic Republic of the Congo, Libya, Indonesia, Vietnam, Armenia, Belarus, and Venezuela, reported Gulf News.

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The UK imposes a 25% energy windfall tax to help households as bills surge

Britain has announced a 25 percent windfall tax on oil and gas producers’ profits, alongside a 15 billion pound ($18.9 billion) package of support for households struggling to meet soaring energy bills. The move, which will give each UK household a 400-pound discount on their energy bill and more for lowest-income households, marks a change of heart for Prime Minister Boris Johnson’s government which had previously resisted windfall taxes, calling them a deterrent to investment. It is the second emergency policy intervention to help with rising bills this year. Facing intense political pressure to provide more support for billpayers coping with what political opponents and campaigners have called a cost-of-living crisis, finance minister Rishi Sunak said energy firms were making extraordinary profits while Britons struggled.

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Energy firms face windfall tax after government U-turn

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UK minister says Northern Ireland protocol threatens Good Friday agreement

The UK’s special envoy for the Northern Ireland protocol has said he told US officials that it has become a threat to the Good Friday agreement. Conor Burns, the Northern Ireland minister assigned to make the UK’s case in Washington, shrugged off a threat earlier this month by the House speaker, Nancy Pelosi, to block a US-UK free trade deal if the UK took unilateral action to override the protocol. The protocol negotiated between the UK and the EU established customs checks between Great Britain and Northern Ireland. Pelosi said that UK’s plans to introduce legislation that would create exemptions to the protocol, if they could not be agreed upon with the EU, were “deeply concerning”.

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Brexit isn’t over: the Northern Ireland Protocol explained

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Turkey rebrands as ‘Türkiye,’ changing its name at the United Nations

The country is now called “Türkiye” in the halls of the United Nations, which agreed to recognize the change on Wednesday after a request from Turkey’s government. The campaign to rebrand as Türkiye began in December. Turkey’s Foreign Minister Mevlut Cavusoglu gave a press conference in Antalya on March 10, 2022. “The process we started under the leadership of our President Recep Tayyip Erdogan in order to increase our country’s brand value is to be finalized,” Cavusoglu tweeted on Tuesday. UN Spokesman Stephane Dujarric told CNN Thursday that the UN accepted the change, and it became effective as soon as they received the request.

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UN rebrands Turkey as ‘Turkiye’; Erdogan says the move represents Turkish culture better

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60 WTO nations back new method on food subsidies

Ahead of a key ministerial meeting of the World Trade Organization (WTO) this month, at least 60 countries including India, China, Pakistan, Egypt, Indonesia, and South Africa have proposed a new method to calculate subsidies given to purchase, stockpile, and distribute food to ensure food security for developing and poor nations. The G33, African Group and the ACP (African, Caribbean, and Pacific) group on Tuesday submitted a joint proposal to the WTO in which they said a permanent solution for public stockholding should account for inflation and also be based on a recent reference price instead of an old one based on 1986-88 prices. They have suggested a new methodology to calculate the subsidies by either accounting for “excessive inflation” in the External Reference Price (ERP) or calculating the ERP based on the last five years excluding the highest and the lowest entry for that product. ERP is the average price based on the base years 1986-88 and has not been revised for decades. The proposal assumes significance in the wake of the developing and poor countries seeking a change in the WTO’s agriculture rules- a permanent solution- to ensure policy space for their food security programs.

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2) India

India not considering windfall tax, profit caps on oil companies

The Indian Finance Ministry is not considering a windfall tax on oil companies like ONGC and Oil India. Government is neither looking at capping the realization of oil companies. Reports had emerged that India could levy windfall tax to get additional revenue. Speculations also arose after the UK put a 25% tax on oil companies. Previous governments had considered a windfall tax in 2008 and 2018. The dividends from these PSUs would have been impacted had the government decided to put such a levy. Windfall gain accrues from sudden factors which are external, and the profit is not due to the reasons linked to the company directly.

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India not considering Windfall Tax on Oil companies

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Is India heading towards a Fourth Covid Wave? Centre flags rise in Five States, Mumbai looks at Grim ‘July Prediction’

In view of a surge in Covid-19 cases over the past week and in the weekly positivity rate, the Centre on Friday advised five states to maintain a strict watch and take pre-emptive action, if needed, to control any emerging spread of the infection. This advisory is not all in terms of what the country is seeing on the Covid-front. New coronavirus infections in India in a single day were recorded above 4,000 after 84 days on Friday. Mumbai has seen its biggest spike since February 4, amid the Omicron variant-driven wave, and authorities in Delhi are attempting to enforce stricter compliance to Covid-19 norms in the city and the airport.

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India’s foreign policy isn’t about sitting on fence: S Jaishankar

India’s foreign policy is not about sitting on the fence just because other countries don’t agree with it, foreign minister S Jaishankar said at the GLOBSEC 2022, adding that India is standing its ground. At the strategic conference, the external affairs minister spoke extensively about India’s stance on the Russia-Ukraine war and about the axis it would prefer to be a part of, among other crucial issues. Rubbishing the comparisons being drawn between the war in Ukraine and the tension between India and China on the borders, the minister said: “Europe has to grow out of the mindset that Europe’s problems are the world’s problems, but the world’s problems are not Europe’s problems. If it is you, it is yours, but if it is me, it is mine. There is a linkage that is being made between what is happening between China and India and what is happening in Ukraine. Come on! China happened way before Ukraine.”

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Russia-Ukraine War l Jaishankar calls out West Again, Questions ‘Isn’t Europe funding the war?’

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3) Economy

India aims to achieve 60% of the CAPEX target by September to keep inflation at bay

The finance ministry has asked key infrastructure ministries and departments to speed up projects, setting a target of achieving at least 60% of the FY23 capital expenditure budget target by the end of September. North Block wants to push capital expenditure to support the economy buffeted by high inflation, geopolitical risk, and monetary tightening. The move seeks to address concerns that the capital budget may be slashed to provide for additional food and fertilizer subsidies as well as relief measures by the Centre to calm inflation, including duty cuts on petrol, diesel, and edible oils besides key industrial inputs. The duty cuts add up to a revenue cost of about Rs 1.5 lakh crore.

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Indian mills waiting to export 1.5 million tonnes of sugar after selling 8.5 mln tonnes

India has exported around 8.5 million tonnes of sugar since the current season began on Oct. 1, with exporters likely to contract another 1.5 million tonnes for overseas sales in the next five months, trade and government sources said on Thursday. India, the world’s biggest sugar producer, and consumer, on May 24 imposed restrictions on exports of the sweetener for the first time in six years by capping exports at 10 million tonnes. The government also asked exporters to seek export permits, or authorization, for any overseas shipments between June 1 and Oct. 31.

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Govt may curb sugar exports, Experts discuss key impacts

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4) Markets, Banking, and Finance

Sebi bans six persons from securities market in IIFL Group front running case

Sebi barred six persons from the securities market for up to five years for front running the trades of India Infoline Group (IIFL Group). In this case, a dealer of India Infoline Group and his connected entities used “mule” accounts. Earlier in October 2020, the regulator, through an interim order, had barred six individuals from the capital market till further directions. The order came after the Securities and Exchange Board of India (Sebi) based on a surveillance alert, initiated a preliminary examination in the present matter against Virendra Pratap Singh and Neha Virendra Singh who were suspected to be front running the trades of India Infoline Asset Management Ltd.

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5) Business

Sheryl Sandberg quits Meta

On Wednesday, Sandberg said she was leaving Meta —which also owns Instagram, WhatsApp, and Messenger —this fall. In an interview, she said she had expected to be at the company only for roughly five years rather than the 14 she has served. She added that she planned to focus on her personal philanthropy and her foundation, Lean In and that this summer she would marry Tom Bernthal, a television producer. “I believe in this company,” said Sandberg, who will remain on Meta’s board.

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Sheryl Sandberg stepping down as Meta COO after 14 years

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PEs to recharge two-wheeler EVs with $2 billion funding

Electric two-wheeler makers are tapping global private equity (PE) funds to propel their expansion plans, as the nascent sector looks set to take off in a big way. Two-wheeler electric vehicle (EV) firms, as well as ancillary units, are set to raise around $1.5-2 billion from PE firms, with nearly half of this capital already in advanced stages of discussion for infusion soon, investment bankers and founders told ET. The reach of electric two-wheelers has inched up to 4% of the overall market and two-wheeler EV makers are seeking to ramp up installed capacities and expand their dealer networks. Hero Electric has lined up Rs 1,500-2,000 crore to set up two greenfield factories in the South and West. It is, therefore, considering a fresh round of funding, having already got $30 million from UAE-based Gulf Islamic Investments last year.

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Carmakers feel chip crisis easing as global growth slows

The global semiconductor shortage that’s bogged down the auto industry for almost two years is showing signs of easing, at least for now. The breakthrough comes earlier than the companies predicted and marks a bright spot for an industry facing a deteriorating economy and inflation while managing a historic transition to electric-vehicle production. Manufacturers are cheering the chip-supply improvement but aren’t declaring victory yet. Even as demand for cars boomed, auto manufacturers have had to curtail output as plants globally couldn’t source enough chips critical for increasingly computerized vehicles. The outages have been so severe that global passenger car output has barely shown signs of recovery to pre-pandemic levels.

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Micron Tech’s Sanjay Mehrotra on Chip shortage & India a becoming Semiconductor hub

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India wind power association moves Delhi High Court

The Indian Wind Power Association (IWPA), Northern Region Council, has filed a writ petition in the Delhi High Court challenging the validity of the new terms and conditions for Renewable Energy Certificates (RECs) for renewable energy generation regulations, 2022 published by the Central Electricity Regulatory Commission (CERC) on 28 May. The IWPA also sought ad interim reliefs regarding the said regulations. IWPA contended that the provision for a floor price of the RECs has been arbitrarily removed from the REC framework in the new regulations while highlighting the plight of its member renewable energy power generators, who had set up their wind power plants under the prior REC framework.

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Xiaomi India names Alvin Tse as India head, Anuj Sharma as CMO in big rejig

Xiaomi India Friday said it has appointed Alvin Tse, who will join the company as general manager, replacing Manu Kumar Jain’s leadership role in the company. The organizational rejig will have Anuj Sharma return as the chief marketing officer. Former vice president and managing director, Jain, who stepped down as an employee in September last year, after serving seven years in the company, has transitioned to a global role as group vice president and is currently responsible for international strategy, marketing, and PR. The organizational changes come amidst strong scrutiny on the smartphone market leader by government agencies. The enforcement directorate has passed a seizure order of Xiaomi’s assets worth over Rs 5500 crore, accusing the company to have violated the foreign exchange rules, by remitting money out of the country under the guise of royalties.

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Essar Power to sell transmission asset to Adani for Rs 1,913 crore

Essar Power Limited has entered into a definitive agreement with Adani Transmission Limited (ATL) to sell one of its two transmission lines for Rs 1,913 crore, the companies said Friday. Essar had commissioned the transmission line in two phases between the years 2013 and 2018 at the cost of Rs 2400 crore. Last June, the company sold its 1200 megawatt (MW) Mahan Power project at Singrauli to Adani Power for around Rs 3000 crore. Essar Power has a current power generating capacity of 2,070 MW across four plants in India and Canada. The company added that it has been in the process of curating a green balance sheet around renewable energy which is in line with its strategy of investing in future-centric businesses which give a superior rate of return within the ESG (Environmental, social, and corporate governance) framework.

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EV maker Omega Seiki Mobility joins hands with Grip Invest, and plans to lease 5,000 electric vehicles by 2023

EV maker Omega Seiki Mobility has formed a strategic partnership with Grip Invest for lease financing to retail investors, in a bid to cater to the growing demand for electric vehicles in the last-mile delivery segment. Under the collaboration, Grip Invest, which is a digital platform for facilitating new-age investments, will finance 1,000 Rage+ Rapid e-three-wheelers of the company, with plans to expand to a minimum of 5,000 EVs by the end of the next year, Omega Seiki said. The EV maker claims it has an existing order book of over 40,000 commercial electric vehicles. Electric three-wheelers are an emerging segment, where leasing out the vehicle appears to be a beneficial proposition for both ends, said Vivek Gulati, Co-Founder-COO, Grip, emphasizing that the collaboration will be a significant step ahead in democratizing and organizing the EV lease financing sector.

For details visit here.

6) Technology

Indian edtech startups scramble to grab the offline market as students gradually return to “old normal”

While an online model helps edtech companies manage costs of infrastructure and offer well-structured affordable courses, offline is especially helpful when it comes to peer-to-peer interactions. Offline classes do better in group study, doubt solving, and personalized attention from teachers, point out Abhishek of Aakash+ BYJU’S, Himanshu of Safalta, and Gaurav of Physics Wallah. Industry experts believe that the online mode of education works in the case of certain lines of study, especially certification courses, and skill training. But it might not be the best fit for all. There is no denying that going ahead, all edtech offerings will have both online and offline touchpoints. The industry will evolve to reach the right mix of audiences.

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Mega trends that will change financial services

The development of the FinTech industry depends on the technologies underlying financial products and services. Let’s take a look at the forecasts of leading technology companies (McKinsey, Accenture, Deloitte) about the development of the industry and FinTech trends in 2022.

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7) Politics

Odisha ministers quit en masse, and new ones to be sworn in

All 20 ministers in Naveen Patnaik’s cabinet and Odisha assembly Speaker Surjya Patro resigned ahead of the first cabinet reshuffle during the fifth term of the Biju Janata Dal government. The rejig has come at a time when the ruling Biju Janata Dal government has completed three years of its fifth term in office on May 29 and the party notched up its 5th by-poll win after the 2019 assembly election. The reshuffle is said to be a major exercise to strengthen and rejuvenate the party ahead of the 2024 general elections. The cabinet reshuffle comes a few months after the party emerged victorious in the panchayat and civic body elections. Though the party has been consistently doing well in the polls, party strategists feel a new team should take over to add momentum to several welfare measures being undertaken by the government.

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G23 unravels as Kapil Sibal quits Congress, gets SP support for a Rajya Sabha ticket

Two months after he openly asked the Gandhis to step aside from leadership roles, senior Congress leader Kapil Sibal announced his resignation from the party and filed his nomination for the Rajya Sabha as an Independent candidate supported by the Samajwadi Party (SP). The resignation of Sibal, one of the most trenchant critics of the Gandhis in the last two years, may also cripple the G23, the ginger group of senior leaders who had sent a letter to party chief Sonia Gandhi in August 2020 seeking sweeping changes in the party’s structure. While his exit has led to talk that the G23 may end up as a much weaker pressure group and eventually disintegrate, the opinion in the group remains divided.

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Punjab BJP leader moves SC for CBI probe into Sidhu Moosewala’s killing

A Punjab BJP leader Friday moved the Supreme Court for a CBI investigation into the killing of singer Sidhu Moosewala, citing the suspected involvement of interstate and international gangsters in the crime. The plea filed by Jagjit Singh contended the state administration had not only “miserably failed” in preventing the crime but also the gang wars that have created “a storm of fear and terror” in Punjab. The plea alleged that despite having the knowledge about the death threats and intimidation the popular singer was receiving from international crime syndicates, the state government inaptly and without any reason curtailed his security cover and made the information public.

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‘Vote bank politics in international relations’: India hits out at US report on attacks on minorities

The Ministry of External Affairs on Friday reacted sharply to the US State Department’s report alleging attacks on minorities in India, calling it “ill-informed comments” by senior US officials. “As a naturally pluralistic society, India values religious freedom and human rights. In our discussions with the US, we have regularly highlighted issues of concern there, including racially and ethnically motivated attacks, hate crimes, and gun violence,” the official asserted via the statement. India previously rejected the US religious freedom report, saying it sees no locus standi for a foreign government to pronounce on the state of its citizens’ constitutionally protected rights.

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Chidambaram, Sibal, Misa Bharti among 41 elected unopposed to Rajya Sabha

P Chidambaram and Rajeev Shukla of the Congress, BJP’s Sumitra Valmiki and Kavita Patidar, former Congress leader Kapil Sibal, RJD’s Misa Bharti and Jayant Chaudhary of the RLD were among the 41 winners declared elected unopposed to Rajya Sabha on Friday. Of the 41 winners, 14 are from the BJP, four each from Congress and YSR Congress; three each from DMK and BJD; two each from AAP, RJD, TRS, AIADMK, and one each from JMM, JDU, SP, and RLD besides Independent Sibal. On June 10, elections will now be held for six seats in Maharashtra, four each in Rajasthan and Karnataka, and two in Haryana. Results will be declared the same day.

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UT, Centre failed to protect J&K minorities: Pandits’ organization

The recent spurt in targeted killings in the Kashmir valley has triggered a wave of concern among migrant laborers and Pandits working under the prime minister’s scheme of 2012. Kashmiri Pandits have alleged that the J&K administration and the Centre have failed to ensure the community’s safety. Scores of families have already left the Valley. The Kashmiri Pandit Sangharsh Samiti – an organization of Kashmiri Pandits who stayed back in the Valley even after the exodus in the late 1980s – has sought the intervention of the high court. KPSS urged the HC to direct the administration to relocate all religious minorities to safer places outside Kashmir. Relatives of some influential Kashmiri Pandits with access to the administration in J&K and Delhi working under the prime minister’s package have been transferred out of the Valley, which indicated that the administration was aware that the situation was not conducive for minorities, the organization said. It urged the HC to suo moto summon officials in the public interest and ask them what mechanism has been devised for the safety of minorities since the killing of Rahul Bhat on May 12. It also urged the HC to order a probe into targeted killings that have happened since June 2020.

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Targeted attacks in Kashmir and the changing nature of the challenge in the Valley

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8) Sports

Rafael Nadal gives big update on his Future after French Open Final Win

Rafael Nadal steamrolled youngster Casper Ruud to win his 14th French Open title at Court Philippe-Chatrier on Sunday. Nadal beat the 23-year-old 6-3, 6-3, 6-0 to take his Grand Slam title tally to 22 – two more than his old rivals Roger Federer and Novak Djokovic. Nadal’s win came amid concerns over his playing future as a chronic left foot injury, which has plagued him throughout his career, flared up again. He then went on to say that he wants to keep going, allaying fears of a retirement announcement. “I don’t know what can happen in the future, but I’m going to keep fighting to try to keep going,” Nadal said, drawing applause from the crowd at Court Philippe-Chatrier. The left foot problem caused Nadal to miss last year’s Wimbledon, US Open, and Olympics in Tokyo and he did not return until the build-up to the 2022 Australian Open, which he went on to win for the second time.

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Norway chess: No stopping Anand, remains on top after third straight win

Indian legend Viswanathan Anand continued his winning run in the Classical section of the Norway Chess tournament here as he defeated China’s Wang Hao in the third round to remain on top of the standings. The 52-year-old Anand won the Armageddon (sudden death game) early on Friday after the regular classical match was drawn after 39 moves. The Armageddon saw the former world champion pip Hao in 44 moves to take his points tally to 7.5. He is followed by American Wesley So, who is on 6 points, and world No.1 Magnus Carlsen (5.5).

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England all-rounder Moeen Ali awarded OBE for his stellar cricket career

England all-rounder Moeen Ali has been awarded OBE (Order of the British Empire) for his services to the game of cricket during the Queen’s birthday honors on Wednesday. Moeen was included on the Queen’s Birthday Honours list, in recognition of his 16 years in a professional cricket career including 225 appearances for his country in all formats. The 34-year-old announced his retirement from the Test cricket last year with 2,914 runs and 195 wickets from 64 Tests but still plays an important role in England’s limited-overs sides.

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Explained: Why the lack of compliance with the Sports Code is landing a lot of federations in trouble

Why are the courts intervening in the running of sports federations? In their order dated May 26, Justice Najmi Waziri and Justice Vikas Mahajan have tried to answer this question. They noted that, in essence, it is to seek ‘compliance by NSFs (National Sports Federations) with the Sports Code and orders passed by the courts.’ “Twelve years is a long time to enable sports bodies to conform to the Sports Code,” the judges wrote in their order, referring to the first petition made to make federations accountable back in 2010. “The time to stop is now.”

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9) Opinion

Big tobacco is having a ‘devastating’ impact on the environment, WHO report reveals

As well as killing eight million people every year, the tobacco industry has a far bigger impact on the planet than many people realize. A new report from the World Health Organisation (WHO) released today details the destructive impact of this deadly industry on the environment and health of ordinary people. Every year, tobacco costs the world 600 million trees, 200,0000 hectares of land, 22 billion tonnes of water and releases 84 million tonnes of CO2 into the atmosphere, according to the report. The CO2 emissions alone are equivalent to one-fifth of what is produced by the airline industry. STOP, an industry watchdog, has criticized tobacco’s public relations efforts to distract from the environmental damage. It warns that there might be even more environmental degradation as people are pushed towards electronic products. In a report produced in collaboration with the WHO, the watchdog found messaging around e-cigarettes and heated tobacco products helping deliver a more sustainable future was nothing more than greenwashing.

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India’s goal can’t be to become another China – it needs to work out its economy first

Geopolitically, India is in a position of advantage to advance its economic prospects, and it will be the task of India’s foreign policy to enable this, and of its economic policymakers to create a congenial space for a large-scale flow of capital and technology into India. It also requires India to work out a growth strategy that will be sustainable in the long term and orient its learning process towards that end. As we shall see, its goal cannot be to become another China. The most difficult challenge for India is how to manage the expanding asymmetry of power with China, even while China is also simultaneously shrinking the gap it still suffers vis-à-vis the world’s pre-eminent power, the US.

For details visit here.

10) Weekly special

Domestic investment in India

IvyCap Ventures is one of the leading homegrown venture capital fund management companies in India, that has built an ecosystem around the global alumni of the country’s leading technology and business institutes. The company earned a whopping 22x return on its early-stage investment in Purplle in 2015. In this episode of Money Matters with Shradha Sharma, Vikram Gupta, Founder Managing Partner, IvyCap shares what this big win means for domestic capital in India, his views on the beauty e-commerce space, and the sectors they are currently looking to invest in.

Watch the video here.

11) Did you know?

What is a liquid mirror telescope and how is it different from a conventional telescope?

As is evident by the name, the liquid-telescope is made up of mirrors with a reflective liquid, in this case, mercury — a metal that has a high light-reflecting capacity. A conventional telescope is steered to point towards the celestial source of interest in the sky for observations. The liquid-mirror telescopes, on the other hand, are stationary telescopes that image a strip of the sky which is at the zenith at a given point of time in the night. In other words, a liquid-mirror telescope will survey and capture any and all possible celestial objects — from stars, galaxies, supernovae explosions, and asteroids to space debris.

For details visit here.

Explained: As India gets the world’s first liquid-mirror telescope for astronomy, what is it and how will it be used?

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With that, we come to an end of our Weekly Current Affairs June 2022 -Week 1. Hope you have liked it. Write your feedback in the comments below and let us know if there is anything else you would like us to cover.

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