11 hours Ago By Niraj Shah
This week was all about the global news flow dominating headlines, around business and around geopolitics. While US President Donald Trump has nearly sounded the end of the Russia-Ukraine conflict all by himself, the Chinese warning of live-fire drills led to flight diversions off Australia.We had some hawkish minutes of the Fed policy released, as also the release of an advanced version of Grok, the AI tool of X, which Elon Musk said was the best AI platform in the world.
Speaking of Musk, Nissan shares jumped on a report that the Japanese group is seeking Tesla investment.Capgemini came with some weak commentary which impacted Indian IT stocks. Giving company to IT was the auto index, which got hit by Tesla's plans for India.
And China stayed in news, with Alibaba's uptick underpinned by camaraderie between Xi Jinping and Jack Ma, as well as sharp spike to a decade-high for Bismuth — a little-known but critical metal used in defense industries — after China added the commodity to an export-control list in retaliation for US tariffs.Here are the key talking points this week:War Coming To An End?The Trump administration and Russia ended more than four hours of negotiations in Riyadh with a pledge to appoint high-level teams to work toward ending the Kremlin’s 11-year war on Ukraine. Later in the week, US Secretary of State Marco Rubio told European allies that the US will keep sanctions on Russia in place at least until there’s a deal to end the conflict.
Trump said he’ll probably meet Vladimir Putin to discuss a settlement by the end of this month. Meanwhile, he ended up calling Ukrainian President Volodymyr Zelenskyy a "dictator". The posture of the negotiations suggest the 78-year-old Trump is looking toward his desire for friendlier ties with Vladimir Putin.
But towards the end of the week, Zelenskyy welcomed US Special Presidential Envoy for Russia and Ukraine Keith Kellogg to Kyiv, where they dove into talks about the latest battlefield developments, strategies for bringing Ukraine’s prisoners of war back home, and the need for robust security assurances. Zelenskyy voiced Ukraine’s eagerness to hammer out a “powerful and impactful” investment and security pact with the US president.The Big Boy In US Is Cautious Walmart’s 2025 outlook carries a note of caution, signalling how one of America’s retail giants is grappling with mounting uncertainty about where the US economy is headed.
Typically, the big-box chain plays it safe with its early-year projections, but this time, its forecast of slimmer-than-anticipated profits came with a nod from CFO John David Rainey to “lingering unknowns around consumer behavior and broader global economic and geopolitical shifts.” Though recent data hinting at rising US inflation might factor into this wariness, the company made clear that the looming threat of White House tariffs—or the chaos if Donald Trump doubles down on them—hasn’t even been baked into the equation yet, setting the stage for a potentially rockier 2025 if trade wars flare up. Does this indicate growth issues for the US, as also impact inflation expectations? And if so, could it quell the fear of a hawkish Fed? Point to ponder.
Tesla Entry Into India Soon? NDTV Profit learns that the Indian government is going to be tweaking its new EV policy, introducing terms that could require carmakers to achieve a revenue of Rs 2,500 crore by their second year—a move many see as a boon for global players. Industry giants like Tesla, eyed as key beneficiaries, stand to gain, especially as reports swirl of the company’s plans to enter the Indian market. This policy shift comes as 2-3 major carmakers have already expressed interest and begun talks with the government, with the updated EV framework slated for rollout by March.
Once the scheme is officially notified, the government will open applications, aiming for approvals by August, after which imports could kick off shortly. The Heavy Industries Ministry is currently hashing out details with the Commerce and Finance Ministries, alongside industry stakeholders, to fine-tune the plan. This has had its impact on Mahindra & Mahindra, which has corrected over 16% from February peak, while the Nifty Auto corrected around 8% in the same period.
Did Milei Just Kill The Memecoin Industry? Argentine President Javier Milei’s attempt to downplay his role in a crypto scandal is crumbling. His problems started Friday when he directed millions of social media followers to the Libra token, sending its value soaring. Within hours, the coin’s value more than quadrupled, making the total outstanding amount worth $4 billion.
It then crashed, handing speculators large losses. On Monday, Milei tried to contain the effects of the debacle in a television interview. But that effort backfired when parts that weren’t broadcast were accidentally uploaded to YouTube and subsequently deleted.
Meanwhile, there was some good news in terms of investments in India. iPhone components maker Murata Manufacturing Co. is weighing whether to move some of its production capacity to India, reflecting a global realignment of the supply chain toward the world’s most populous country.
The Kyoto-based maker of multilayer ceramic capacitors sees growing demand in India and is running simulations for what it would take to dial up its pace of investment there, according to Murata President Norio Nakajima. Remember, this comes alongside talks that Tesla is looking to hire in India as well. Alongside news of capex pickup and better sales for corporates in India (as they told us at the NDTV Profit Conclave), maybe there might be a glimmer of hope for the markets, which fought valiantly to defend the 22,800 zone for the Nifty.
Let us see what the next week holds in store.. Read more on Markets by NDTV Profit.
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