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“Trend is your friend” is a phrase commonly heard in the financial sector. While the adage may not have universal application, it does throw light on just how important it is to be on the right side of trends in a global market. Two observations from the business world, one from the United States consumption market and one in Indian investments, help provide unique insights into changing trends.
The first trend emanates from the issues the food giant Kraft Heinz has been confronted within the United States over the last couple of years. The second trend is the increasing interest in Infrastructure Investment Trusts (InvITs) in India by mutual funds, so much so that they have poured in Rs 8,528 crore in the first nine months of the calendar year 2019. The first trend is indicative of how crucial general market trends are for even the best of investors; the second one illustrates a pattern that both investors and developers of infrastructure assets in India must be cognizant of.
The issues that the food company Kraft Heinz has faced have broadly revolved around a significant shift in the consumer preference in the US towards healthier foods and away from processed foods (a key focus area for Kraft Heinz) and a focus by the owners of Kraft Heinz on cost-cutting as opposed to innovation. Considering that Kraft Heinz share is down 50 per cent year-to-date and has seen an even more significant decline over the last two years, underscores the importance of being on the right side of the trend. The trend here is, as stated above, a move towards healthier eating option.
Kraft Heinz is a behemoth in the consumer market given the size of its business, and hence, the decline in its prospects demonstrates just how difficult it is for even the largest and savviest of companies to prosper when being on the wrong side of the trend.
More importantly, when one considers that Kraft Heinz was owned by marquee investors such as Berkshire Hathaway and 3G Capital, it is apparent that regardless of the best resources, “trampling” trends is a difficult task. Broader structural shifts in the consumer market are of such force, that being able to ride the trend can provide significant benefits, while being on the wrong side of the trend can be extremely problematic. The real skill is deciphering the trends to ensure that capital and resources can leverage their full potential.
In the context of the issues, Kraft Heinz has faced, it is also vital to note that social dynamics structurally drive financial and business trends. While a move towards healthier food options has adversely affected the prospects for processed food companies of late, decades back, a rise in women’s work participation and the availability of economically viable packaging had propelled the rise of the processed food industry in the developed economies. Therefore, not only is riding the trend essential but so is realising what socio-economic dynamics transformation is underway.
The second trend of importance is the gradual inflow of funds into InvITs in India. While this trend is encouraging, there are some critical lessons from the trend that need to be kept in mind to ensure that increased participation in InvIT type structures can help the infrastructure ecosystem flourish. For infrastructure developers, they must utilise InvITs further to source capital. The focus must be on building a track record for themselves in the InvIT ecosystem to generate capital at a relatively low cost.
Increased InvIT participation will also require well-managed InvITs with extremely high levels of corporate governance that can deliver consistent returns for investors. The primary reason that InvIT structures are beginning to see the increased interest is because there is a need for a platform that can help finance infrastructure in India. Traditional equity and debt have limitations regarding how much of long-dated infrastructure can be funded using them. Therefore, the trend is of prime importance.
The trend of increased participation of mutual funds in InvITs is a healthy sign. However, that said, investors in InvITs must be aware of the nature of the assets in terms of both sector and liquidity. Broadly speaking, the trend of increased participation in InvIT type structures is essential for India to finance the significant infrastructure needs eventually. Given India’s infrastructure requirements around telecom, water, ports, and roadways, ensuring that the trend of growth of capital market platforms in India is sustained is essential.
While distinct, both the trends mentioned above point towards the importance of being aware of changing trends and ensuring that trends that are deemed to be positive are further built upon by market participants. (IANS)
A cryptocurrency is a digital/virtual currency, that is secured by cryptography (study of hiding information). There are over 6,500 cryptocurrencies in existence as of September 2021. The value of cryptocurrency is growing at a quick rate and analysts and experts are still expecting a sharp rise in the value of Bitcoin, the oldest, and most valuable cryptocurrency in the world. however, china doesn't seem to be on board with the idea of digital coins in its economy as it has banned dealing and trading in these digital tokens.
China has taken several decisions to curb the rise of cryptocurrency in its market since 2013 by putting in place increasingly stricter rules on virtual currencies. But on September 17th, China's central People's Bank of China (PBOC) announced that all activities from transactions made in cryptocurrency to crypto mining are deemed illegal including offering trading of digital assets, order matching, token issuance and derivatives. Anyone who's found guilty of being involved with cryptocurrencies and working for overseas platforms from within China will be severely punished. Chinese Government directed the banks to not provide any products or services such as trading, clearing and settlement for cryptocurrency transactions.
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The price of several cryptocurrencies like Bitcoin, Ethereum, Dogecoin etc. fell drastically after China's announcement. Bitcoin fell below $30,000 for the first time in more than five months nevertheless it recovered some ground by reaching $38,131, though it was still down -10.4%. Ether under Ethereum blockchain lost as much as 22% and Dogecoin lost up to 24%. Two of the largest bitcoin exchange companies Huibo and Binance have halted new registrations for new Chinese registrations and are planning to retire current accounts adhering to the country's new policies. Huibo announced that it'll close down all existing Chinese accounts by the end of the year. The ban makes buying or selling the assets difficult for Chinese mainland investors, as they cannot do so unless they leave the country. The ban has had a major negative impact on the gaming and tech sector.
ALSO READ: The Great Indian Crypto Circus
China was once the world's biggest bitcoin trading and mining centre in 2017. But in May 2021 China's State Council vowed to ban virtual coin transactions and mining. Several Chinese crypto companies are moving out of the country so that the impact of the ban would relatively limited. But why did China went as far as banning cryptocurrency? While the reasons behind China's ban on cryptocurrency remains vague. Speculations are that crypto trading had rebounded and was threatening to the safety of people's assets and disrupting the normal economic and financial order, that it is to prevent money laundering. A report by CryptDailyUse explained that the decision was made in favour of reducing energy prices, greenhouse fuel emissions and carbon footprints concerned with cryptocurrency transactions. China's ban will put China's internet security to test as to whether they're able to find and punish people and platforms that are breaking the laws. Some analysts have claimed that determined investors will find one or the other way to make trades in crypto or they'll simply move off-shore to perform transactions.
A new version of the Akash missile- "Akash Prime" was successfully tested by the Defence Research and Development Organisation (DRDO) at the Integrated Test Range in Odisha's Chandipur on Monday at around 4:30 pm. The missile intercepted and tore apart a high-speed unmanned aerial target mimicking enemy aircraft, in its first flight test after all the enhancements.
Akash Prime is equipped with an indigenous active Radio Frequency seeker to accurately locate the enemy aircraft. The upgrade includes an improved, Launcher, Multi-Function Radar and Command, Control and Communication system. The test was carried out amidst bad weather conditions and yet Akash Prime successfully detonated the threat proving the all-weather capability of the weapon system. The improvements also established that the new missile has comparatively more reliable performance under a low-temperature environment at higher altitudes
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The system performance was validated through the data captured by number Radar, Telemetry and Electro-Optical Tracking systems deployed by ITR, Chandipur," the DRDO said. The test was also witnessed by a team of Indian Air Force Officers.
Akash Prime is equipped with an indigenous active Radio Frequency seeker to accurately locate the enemy aircraft.ANI
Defence Minister Rajnath Singh congratulated the Defence Research and Development Organisation, Indian Army, Indian Air Force, Defence Public Sector Undertaking (DPSU) and industry for the successful flight of Akash-NG- " Akash Prime" Missile. He added that the development of this state-of-the-art missile system will prove to be a force multiplier for air defence capabilities of the Indian Air Force and the successful flight test demonstrates the competence of the Defence Research and Development Organisation in the design and development of world-class Missile systems.
The teams were also greeted and congratulated by the Secretary Department of Defence R&D and Chairman Defence Research and Development Organisation, Dr G Satheesh Reddy. He declared that the success of the Akash Prime team will boost the confidence of the Indian Air Force and the Indian Army as the Akash system is getting inducted and improved with more lethal and accurate missiles with capabilities to destroy high-speed agile enemy threats.
"Education is the most powerful weapon which you can use to change the world."
Schools all across the world have been closed as a result of the COVID-19 outbreak. Over 1.2 billion children are out of school across the globe. (Reported by UNICEF). Because of this, education has changed immensely, with the introduction of e-learning, in which tutoring is provided remotely and using various digital platforms. According to research, virtual learning has been proven to enhance retention of information and take up less time, indicating that the changes produced by the coronavirus may be here to stay in the future.
However, many emphases have focused on "recovering" the current system, but there is a chance to "build back better".So, let's see the future of education after Covid19.
Challenges of covid for education
- Learning Loss
- Mental Health, Trauma, and Safety
- The strain on Learning: Professors, Teachers and Early Childhood Educators
Is physical learning a more effective form of learning than e-learning?
One important lesson to be learned from the COVID-19 situation is that the traditional physical teaching method with eye-to-eye contact is still the most effective form of learning. On the other hand, technology is a powerful facilitator, and as such, it has a significant role to play in the educational system.
The majority of educational institutions are trying with digital learning and trainers learning to adapt to new technologies. Training of teaching will need to be revised to include practical elements of technology in education and theoretical aspects of technology. In conjunction with improved methodology, the effective use of technology will be an essential component of teaching training programmes in the near future.
Traditional physical teaching method with eye-to-eye contact is still the most effective form of learning. | Photo by NeONBRAND on Unsplash
Why should we adopt eLearning forever?
Online education allows teachers and students to determine their learning speed and set a timetable that works for everyone. Using an online educational platform provides a better balance of professional and academics, so no sacrifices are required. Online education includes time management skills, making work-study balance more straightforward. A shared plan can encourage both students and teachers to take on new tasks and gain more autonomy.
Online education is usually cheaper than in-person schooling. Payment choices frequently include instalments or per class. This improves budget management. Many of you may be eligible for discounts or scholarships, so the cost is low. You may also save money on travel and class supplies by using free resources. In other words, the financial investment is lower, but the returns may be superior.
There are limitless skills, techniques and subjects to teach and learn on the internet. More institutions and colleges are offering online programmes for all levels and subjects. Every student can choose from learning dancing to higher mathematics. Online programmes allow you to get an official certificate, diploma, or degree without ever having to step foot on a university campus.
Tutors and students can use internet resources like YouTube videos, pictures, and eBooks to enhance their teaching and learning. This supplementary content is available at any time, anywhere, making your education more dynamic and personalised.
There are limitless skills, techniques and subjects to teach and learn on the internet. | Photo by Ralston Smith on Unsplash
Why should we not adopt eLearning forever?
The present E-Learning tends to isolate and contemplate students. As a result of the absence of social interaction, many students and teachers who spend a lot of time online might develop social isolation. Lack of communication and social isolation typically leads to mental health concerns, including stress, anxiety, and negative thinking.
However, in an eLearning environment, there are fewer external factors that motivate students. In many situations, students are left to their own devices during learning activities with no encouragement. Students pursuing E-Learning courses will frequently be expected to master a tricky subject in the comfort of their own homes, without the extra pressure of traditional universities. As a result, students who lack motivation and time management skills may struggle to meet regular deadlines when studying online.
Unfortunately, one of the significant drawbacks of E-Learning is cheating. In Online mode, students can easily cheat in examinations since they are in their own surroundings, with no supervisor and disciple around. This takes the essence of a test and assessment away from the life of a student. Without a video stream, pupils cannot be directly watched during exams. Also, without appropriate identity verification, students taking online tests may allow a third person to take the test in their place, resulting in a false test result.
Because of the absence of social interaction, many students and teachers who spend a lot of time online might develop social isolation. | Photo by Chinh Le Duc on Unsplash
Keywords: COVID, education, aftermath, e-learning, aftermath, classes, social, students