After a massive rally over the past two years, India’s stock markets have been under pressure over the past month, on the back of massive selling by foreign institutional investors. Disappointing corporate earnings in several pockets, especially consumer goods, where companies have warned of urban demand slowdown, have also added into the negative sentiments among investors.
From its recent high of 85,978.25 touched on September 27, the BSE Sensex has declined over 8 per cent. The NSE Nifty50 has slipped 9 per cent from its life high of 26,277.35.
The decline comes as foreign portfolio investors sold over Rs 94,000 worth of Indian stocks in October and a further Rs 23,900 thus far in November. Signs of a slowdown in demand in areas like passenger vehicles and fast-moving consumer goods have raised concerns about whether a sharp economic slowdown looms. Many companies missing their earnings estimates in the September quarter have added to those worries.
Ace investor Saurabh Mukherjea, the founder and chief investment officer of Marcellus Investment Managers pointed to several reasons behind the slowdown being seen, especially in consumption. One, he feels revenge spending seen post-COVID-19 pandemic has ebbed. While the elite class is thriving, the middle class has been hit hard, he noted. There is a risk that automation and AI (artificial intelligence) could squeeze mid-level jobs further over time unless AI is harnessed constructively and can complement jobs.
Advertisement
“We are seeing a middle-class consumption slowdown, elite items are rocking,” he noted.
However, he is not too surprised by the sudden slowdown. He pointed out that after three years of strong economic growth, a cyclical downturn was expected. He doesn’t see this as a massive economic crisis but still feels that the corporate earnings slowdown will perhaps worsen over the next few quarters before it gets better.
“This is a classical cyclical downturn. You had three years of strong economy, you are going to get a few quarters of softness. That’s the way the whole world works. Two steps forward, one step back,” said Mukherjea.
One good thing he sees is there are signs of private sector capital expenditures picking up, as was visible from earnings growth by private sector capex-oriented companies. As private investment picks up, it will create more jobs, in turn driving up consumption. However, that will play out over a few quarters and not instantly.
Advertisement
“It will take time for the private sector capex cycle, which has started, to create jobs. And therefore, we are looking at a few quarters of soft consumption,” said Mukherjea.
So, how do navigate the equity markets in these uncertain times?
“This is a time to be circumspect, but this is not a time to be fearful,” he stressed.
Mukherjea noted that the Nifty at 23 times its forward price-to-earnings ratio was still well above its long-term average of around 17-18 times. Marcellus is currently fully invested in its large-cap portfolios but is holding on to some cash in midcaps.
Advertisement
“Our view to our client base, whether it’s foreign clients or domestic family offices, is to hold your horses a little bit, especially in midcaps. Wait a little bit, we can see the opportunities coming. The country is a fundamentally healthy, buoyant economy,” he said.
Marcellus remains positive on the equity markets in the long-term; there are a lot of businesses they want to buy, but would like the valuations to come down a bit, said Mukherjea. For instance, consumer stocks could get cheaper over the next few quarters, with consumption expected to remain soft.
This is a time to rebalance the portfolios, he says.
“Deploy incremental money outside of equities and there will be a time. If this correction sustains, your equity allocation will go down and that will be a time to buy,” said Mukherjea.
Advertisement
One advise he has is that investors allocate some money to US equities now, especially to US midcaps. According to Mukherjea, US midcaps are attractively valued and earnings growth was healthy. The US midcap stocks could also rally should US President Donald Trump take measures to boost manufacturing there.
The UK must “rebuild relations” with the EU “while respecting the decision of the British people” who voted to leave in 2016, the Bank of England’s governor will say later.
Andrew Bailey’s Mansion House speech to investors will mark some of his strongest comments yet on Brexit, saying one of its consequences has been weaker trade.
He has previously avoided commenting on the topic because of the Bank’s independence from Westminster politics.
“As a public official, I take no position on Brexit per se,” he will say. “But I do have to point out consequences.”
Mr Bailey will say the changed relationship with the EU has “weighed” on the economy.
Advertisement
“The impact on trade seems to be more in goods than services… But it underlines why we must be alert to and welcome opportunities to rebuild relations while respecting the decision of the British people.”
Mr Bailey will also say the UK should not focus “just on the effects of Brexit”, warning about the “broader fragmentation of the global economy”.
His Brexit comments go much further than he previously has on the topic. Last November, he said the decision had “led to a reduction in the openness of the UK economy”.
Assessing the impact of the UK’s decision to leave the EU on the economy has been tricky given the multiple economic shocks in recent years.
Advertisement
The Office for Budget Responsibility and other independent analysts estimate the economy is 4% smaller over the past 15 years as a result.
Goods trade, especially in food and farm exports, has been especially hit by the imposition of new trade barriers. Trade in services, such as banking, has done better than expected, however.
Spain’s Finance Minister Carlos Cuerpo told the BBC: “We need to be positive here and optimistic that a better deal can be actually closed on that front.”
Advertisement
A UK government spokesperson said: “We are committed to resetting our relationship with our European partners… and improving our trade and investment relationship.”
Mr Bailey’s speech will go on to address the wider UK economy and its lack of growth.
“Bottom line, it’s not a good story,” he will say, describing how productivity has fallen since the 2008 economic crash and has not recovered since.
Advertisement
He will explain that the UK is not alone in having this problem, which he says also affects other parts of Europe, but notes that the US has “a better story to tell”.
Mr Bailey will also echo Reeves’ concern that the UK pension system is “fragmented” and requires “heavy lifting” to fix it.
Tesco’s 2024 Christmas Advert reflects on the effects of loss during the festive period
As the Christmas ads start rolling, most of us begin to start getting into the festive spirit – and we also tend to shed a tear or two.
Advertisement
John Lewis has become well-known for its emotional and heartwarming Christmas adverts.
But the real tear-jerker this year isn’t the usual suspect, with some people saying Tesco‘s three minute advert is far better than the John Lewis Campaign.
The ad follows a man called Gary who is trying to navigate Christmas while mourning the loss of his grandmother.
It touches on how the festive period can cause conflicting emotions for many people who are missing a loved one.
Advertisement
The soundtrack for the ad is Melancholy Hill by Gorillaz, and it opens with Gary visiting his grandfather, then pans to a flashback of him visiting his late nan.
He gets up to leave, and at the door his grandfather hands him a packet of Tesco gingerbread men.
Taking a bite of one of the biscuits, Gary’s world transforms into a magical Christmas landscape where sugary treats burst out of every corner.
But when he thinks about the absence of his grandmother, his festive dreamland begins to crumble.
Advertisement
So, Gary decides to rekindle a Christmas tradition he had with his grandmother by sitting with his grandfather and building a gingerbread house.
The pair are seen to “rebuild” their lives after the loss, as the ad finishes with the entire family sitting down and having Christmas dinner together.
The table spread features glimpses of Tesco’s festive range including a turkey and pigs in blankets.
John Lewis Christmas advert 2024 – tearjerker ad with iconic 90s song as sister desperately searches to find perfect gift
Becky Brock, group customer director at Tesco, said: “We want our Christmas campaign to connect people with the joy of moments that help feed our Christmas spirit and showcase how Tesco can help you do just that.
Advertisement
“We appreciate that even if you love Christmas, there can be little things that eat away at your Christmas spirit as well as things that help to feed it.”
People went crazy for the short film on social media, celebrating its ability to connect with viewers.
One person wrote on X: “The Tesco Christmas ad is AMAZING!”
Another person said: “I’ve just watched the Tesco Christmas ad and it’s completely correct and has got the tone right.”
Advertisement
While someone commented: “Tesco Christmas ad is all about the spirit of Christmas. Normal people, normal lives.”
A fourth warned: “Check it out, it’s the best I’ve seen so far – but I dare you not to shed a tear.”
The usual tear-jerker on the block, John Lewis, has faced much less praise this winter season.
Another X user wrote: “@JohnLewisRetail That was a bad Christmas ad, I’m sorry but Tesco wins it this year.”
Advertisement
John Lewis is famous for pulling on the heart strings at Christmas time, previously spending as much as £7 million on a single campaign.
It spent almost that much this time round, and is classed as the biggest advertising event of the year.
In its two minute long advert for 2024, named The Gifting Hour, the story line follows a woman’s urgent hunt for a gift for her sister.
For the first time in 17 years, the John Lewis store actually features in the mini-film.
Advertisement
The ad, created by Saatchi & Saatchi, follows the woman, named Sally, rushing around the John Lewis shop floor.
Then she is transported down memory lane, and she tries to navigate childhood memories and pick up clues on what to buy her sister.
When she finds the perfect gift she reenters reality and find its already wrapped.
She then heads outside and shares a special moment with her sister, followed by the strap line: “The secret to the perfect gift? Knowing where to look.”
Advertisement
John Lewis purposefully leaves the contents of the gift a mystery to emphasise sentiment over material value.
However the heart-warming message fell short, with one person posting on X: “That’s it, Christmas is ruined. The John Lewis ad is quite comfortably the worst one yet.”
Another said: “Very disappointed, I wanted the John Lewis Christmas ad to make me cry and give me a sense of family and home.
“I have loved all previous ads because what sets them apart is they never actually focused on shopping, this year you have.”
Advertisement
Some viewers weren’t impressed by the song choice for this year’s ad.
One person wrote on X: “Where’s the slow emotional cover we usually get?”
Despite usually using a cover version of a famous song for its adverts, the campaign opts for The Sonnet by The Verve sung by the original band members.
It serves as a nod to the 90s, which has had a major resurgence this year.
Advertisement
It has also been left open to the audience as John Lewis searches for a coverstar on TikTok – and legendary lead singer of the band Richard Ashcroft will help pick the new star.
The winner will record and release their own track with BMG and a version of the advert with their rendition will be played on TV on Christmas Day.
They will also win a £3,000 shopping spree and tickets to a Richard Ashcroft headline show in 2025.
Proceeds from the single will be donated to the John Lewis Partnership’s Building Happier Futures programme, which helps care-experienced people.
Simply sign up to the Accountancy myFT Digest — delivered directly to your inbox.
A former auditor at BDO has been given a 20-year ban by the regulator for faking electronic signatures and evidence and filing false company accounts.
The Financial Reporting Council, which oversees the UK accountancy profession, said Amanda Nightingale had “acted with sustained dishonesty over a five-year period in relation to a large number of audits” in her role as a senior manager at BDO’s Gatwick office.
Advertisement
The regulator said it had also issued “proposed formal complaints” against BDO and two of its former partners in August, alleging misconduct as part of its wider investigation into how Nightingale was able to carry out such “extremely serious” actions for so long.
Jamie Symington, FRC deputy executive counsel, said: “By deliberately signing audit reports without the relevant audit engagement partners’ knowledge, Nightingale’s conduct has risked severely undermining confidence in the audit profession and BDO.”
The findings are another blow for BDO, the world’s fifth-largest accountant, which was recently criticised by authorities in both the US and UK for having unacceptably high levels of errors in its audits of companies.
The FRC said: “On numerous occasions between 2015 and 2019, the conduct of Nightingale fell significantly short of the standards reasonably to be expected . . . and has brought, or is likely to bring, discredit to herself, BDO and to the accountancy profession.”
Advertisement
The regulator said Nightingale, who was unavailable for comment, had been banned from doing any accountancy work and excluded from the Institute of Chartered Accountants in England and Wales for 20 years.
BDO said its partners discovered Nightingale was “operating without proper authority” five years ago. When confronted, she “left the firm before her impending dismissal for gross misconduct” and the firm then reported its findings to the FRC and conducted an internal probe that reported to regulators and senior managers in February 2021.
The FRC said Nightingale had “caused or permitted auditor’s reports to be issued without approval” including by “inserting electronic copies” of other people’s signatures. It said she also filed accounts at Companies House without authorisation and using faked signatures, created false documents, falsified audit evidence and deceived colleagues and clients.
But it said there were mitigating factors: she was under extra strain due to a seriously ill family member, she did not gain financially from her misconduct — apart from it helping her to keep her job — and she has apologised for her actions.
Advertisement
As a result, and having “taken into account her financial circumstances”, it decided not to fine Nightingale, who paid £10,000 towards its costs.
ROCHESTER is thought to have inspired Charles Dickens more than any other town in the UK.
Located in Kent, Dickens is said to have spent his childhood in the Medway town, with its buildings inspiring the Victorian author.
4
Rochester claims to be the town that inspired Charles Dickens more than any other in the UKCredit: Alamy
4
Advertisement
The historic English town is home to a string of independent shops, some of which look like they’ve been plucked from a Dickensian novelCredit: Alamy
Outside of London, Rochester claims to be the UK town that inspired Charles Dickens the most.
One place in Rochester where the prolific author took inspiration was Restoration House.
The Elizabethan Townhouse inspired the home of Estella and Miss Havisham in Great Expectations.
Rochester was used as a filming location for the 1989 version of Great Expectations that starred Anthony Hopkins and Jean Simmons.
Advertisement
Read More on English Towns
Nowadays, Restoration House is open to the public, with visitors able to explore the walled gardens and rare collections of poetry.
Other buildings that have been immortalised by the author include Travellers House and the Guildhall Museum.
The neighbouring Eastgate House, a Grade-I listed building, also featured in the works of Charles Dickens.
Dating back to the 16th century, the townhouse underwent a huge £2.2million renovation project in recent years.
Advertisement
Garden visitors can explore the author’s chalet, which was once located at his home at Gad’s Hill Place in Higham.
For fans of the author, December is arguably the best time to visit – and it’s not just because a version of the Christmas Carol will be playing on the telly.
Every year, Rochester plays host to the Dickensian Christmas Festival.
Pretty English town an hour from London is trending day trip destination
The Victorian festival celebrates the work of Charles Dickens, with street performers and costumed characters filling the streets.
Advertisement
This year’s festival will be held on December 7 and December 8, with a Mistletoe Costumed Ball taking place on December 6.
Away from Charles Dickens, Rochester is packed with even more history too.
The Medway town is also home to Rochester Castle – a Norman keep that boasts panoramic views of the River Medway.
There’s also Rochester Cathedral.
Advertisement
Dating back to 604 AD, Rochester Cathedral is thought to be the second oldest cathedral in the country.
Its high street is also lined with independent shops, cafes and traditional pubs.
Brits who want to follow in the footsteps of Charles Dickens will want to head for a swift drink at The Royal Victoria and Bull Hotel where the famous writer is thought to have stayed.
Rochester is a 90-minute drive from London and it’s a 45-minute drive to Ashford.
Advertisement
The other UK town that inspired Charles Dickens
BURY St Edmunds in Suffolk may appear to be a typical British town, but it has a fascinating history all of its own.
Included in that is its inclusion as a setting in Dickens’ novel Pickwick papers.
The town, and the Angel Hotel, both feature very prominently in the novel; the Victorian author is known to have stayed in the accommodation on several occasions.
Fittingly, the town was also chosen as the setting for the 2019 film The Personal History of David Copperfield, with the hotel appearing on the screen.
Advertisement
Actor Dev Patel and his co-stars, including Tilda Swinton, Hugh Laurie and Peter Capaldi were filmed throughout the town as they brought the story to a new audience.
The Angel is still up and running and is now a boutique 4 star hotel right in the centre of town, famed for its ivy-clad walls.
It’s not the only famous Bury St Edmunds establishment that Dickens used to frequent, with the Nutshell also said to be a favourite haunt of the writer.
California Unveils New Energy Rebates to Help Homeowners Cut Energy Costs
Eligible Californians can now save thousands on home energy expenses thanks to a new rebate program targeting energy-efficient upgrades. Announced by Governor Gavin Newsom, the Home Electrification and Appliance Rebates (HEEHRA) provide financial incentives for homeowners to install eco-friendly heating and cooling systems, marking the beginning of two federal programs aimed at supporting efficient and climate-resilient homes. These rebates, a product of the Biden-Harris administration’s Inflation Reduction Act (IRA), are part of California’s commitment to reducing energy costs, improving air quality, and lowering greenhouse gas emissions.
Substantial Savings on Energy-Efficient Heat Pumps
Starting November 12, 2024, eligible single-family homeowners in California can apply for HEEHRA rebates on the purchase and installation of heat pump HVAC systems, offering a sustainable solution that can replace traditional electric resistance heating systems. The rebates, managed by the California Energy Commission (CEC), provide significant financial assistance, potentially saving households hundreds annually in energy costs.
Governor Gavin Newsom highlighted the dual benefits of these rebates, stating, “Thousands of dollars are now available for California homeowners to install heat pumps, making your home more energy-efficient and reducing your energy bills by hundreds of dollars each year. With these new rebates made possible by the Biden-Harris administration, Californians can save money and take real climate action.” Additional climate action programs are available atclimateaction.ca.gov.
CEC Commissioner Andrew McAllister emphasized the efficiency of heat pumps, noting, “We’re excited to announce that owners of single-family homes may apply for HEEHRA rebates on the purchase and installation of an energy-efficient heat pump HVAC. These units make homes more comfortable and can reduce electricity use by up to 75% compared to electric resistance heating such as furnaces. They also work as air conditioners, which an increasing number of Californians now need due to the effects of climate change. HEEHRA helps put this dual-use clean technology within reach of more Californians.”
Advertisement
Eligibility and Rebate Amounts for California Homeowners
Californians can receive rebates ranging from $4,000 to $8,000, depending on household income relative to the area median income (AMI). Homeowners with incomes between 80% and 150% of the AMI may qualify for up to $4,000, while those with incomes under 80% AMI could be eligible for the maximum $8,000 rebate. Homeowners can check their AMI eligibility and begin the rebate application by visiting here.
The program also includes incentives for owners of multifamily buildings. The rebates for multifamily properties went live on October 8, 2024, expanding access to efficient appliances across a broader range of residents.
The CEC’s funding distribution for these rebates is a part of the TECH Clean California initiative, which aims to increase adoption of energy-efficient home appliances across the state. The rebates cover substantial costs for new heat pump systems and can be combined with additional incentives for further savings on electric appliances and equipment upgrades.
Expanding Energy Efficiency Statewide
The CEC’s proactive rollout of rebates reflects California’s leadership in environmental policy. The state has been an early adopter in providing energy efficiency rebates for multifamily buildings, and the expansion to single-family homeowners underscores its commitment to widespread climate resilience.
Advertisement
Keishaa Austin, Principal Deputy Director of the U.S. Department of Energy’s Office of State and Community Energy Programs, commented on California’s leadership, stating, “California was an early mover in setting up and launching their Home Energy Rebates. Now, mere weeks after making the program available for multifamily buildings, they are expanding it to single-family homeowners. Starting today, thanks to the California Energy Commission’s continued commitment to the residents it serves, low- and middle-income Californian homeowners can apply to save thousands of dollars on energy-saving heat pump HVAC units.”
For more details on the available rebates and eligibility requirements, Californians can visit techcleanca.com/heehra for guidance on the application process and to learn more about other incentives that may increase potential savings on energy-efficient home upgrades.
Simply sign up to the US & Canadian companies myFT Digest — delivered directly to your inbox.
A quarter of a century ago, Scott McNealy, then chief executive of Sun Microsystems, famously dismissed consumer privacy in the internet age as an anachronistic distraction. “You have zero privacy anyway,” he said. “Get over it.” Judging by the way in which consumers have since posted details of their private lives all over social media and breezily ticked the intrusive terms and conditions boxes of many online companies, McNealy may have had a point.
But how we act and what we think can be two different things. Internet users do not appear to have “got over it” when it comes to privacy. Indeed, consumers are now telling pollsters that they increasingly worry about the misuse of their personal data and want stricter controls. A Pew Research poll in the US last year found that 81 per cent of respondents were concerned about how companies collected their data; 71 per cent expressed similar concerns about the government (compared with 64 per cent in 2019).
Advertisement
Such anxieties are all the more acute when it comes to highly sensitive personal information, such as genetic data, which not only affects one individual but all their relatives, too. When you spit into a tube and send it off for DNA testing, you are handing over unique data that cannot be anonymised. You are also sharing information about all your biological family, most likely without their consent. That makes it all the more critical that such data is secure.
In some cases, there are glaring concerns about who can access — or sell — that data. Several users of the London-based DNA testing company Atlas Biomed have recently expressed alarm about the security of their personal information. The business appears to be inactive — it is late filing its annual accounts and has not been active online. It reportedly did not respond to recent enquiries from the BBC and there has been speculation about its links with Russian business interests.
The Information Commissioner’s Office, which enforces Britain’s data privacy laws, also confirmed that it received a complaint about the company.
In the US, customers of the 23andMe DNA-testing service are also anxiously following the fate of the company, which this week admitted there was “substantial doubt” over its survival without the injection of fresh funds. Some 15mn people have used the service and around 80 per cent of them have agreed to share their data for scientific research.
Advertisement
Anne Wojcicki, 23andMe’s co-founder and chief executive, has said she intends to take the company private and will not consider a third-party takeover. “We are committed to protecting customer data and are consistently focused on maintaining the privacy of our customers. That will not change,” the company said in a statement to the FT.
But users are unlikely to be reassured. 23andMe’s genetic data is not covered by the US federal Health Insurance Portability and Accountability Act (HIPAA), which applies to most medical data. It also suffered a serious data breach last year in which 6.9mn user accounts were compromised. Wojcicki has fallen out with the rest of the board, who have resigned en masse. And it is not clear what would happen to 23andMe’s data if the company went bust.
“23andMe highlights very valid anxieties and fears people feel when they have given highly sensitive information to a company for a specific purpose,” says Sara Geoghegan, senior counsel at the Electronic Privacy Information Center in Washington DC. “Users deserve more than a pinky promise that their privacy wishes will be respected.” For more than 20 years, Epic has been campaigning for a federal privacy law that would protect users’ rights.
Such legislation seems unlikely given the anti-regulation stance of the incoming Trump administration — even if many Republicans are themselves concerned about data privacy. The only real alternative is for consumers to assert their power by wresting more control. They must press tech companies to minimise the data they collect, become more transparent about its use and ensure that user consent is voluntary and informed. “Even with the best possible laws, it will not be possible to stop criminals or foreign governments hacking into your data,” says Carissa Véliz, author of Privacy is Power. “Tech solutions are very important.”
Advertisement
Some digital services already offer privacy by design but there is currently little market incentive for their expansion. Users should contest McNealy’s fatalism and stimulate that consumer demand.
You must be logged in to post a comment Login