Course Code: MGN253 Course Title: Business Ethics

Course Instructor: Akashdeep Joshi Section: Q2002

Academic Task No.: 03 Academic Task Title: Analysis of Ten Business News

Date of Allotment: 08-02-2021 Date of submission: 24-02-2021

Student’s Roll no: B64 Student’s Reg. no: 12010870

Evaluation Parameters: (Parameters on which student is to be evaluated-To be mentioned by students
as specified at the time of assigning the task by the instructor)

Learning Outcomes: (Student to write briefly about learnings obtained from the academic tasks)

 Get to know various news and the related impact in the economy of every country.
 Get to know the impact of corona virus outbreak in the global financial crisis.

Declaration:

I declare that this Assignment is my individual work. I have not copied it from any other student’s work
or from any other source except where due acknowledgement is made explicitly in the text, nor has any
part been written for me by any other person.

Student’s Signature:

Evaluator’s comments (For Instructor’s use only)

General Observations Suggestions for Improvement Best part of assignment

Evaluator’s Signature and Date:

Marks Obtained: _______________ Max. Marks: ______________

A Descriptive analysis of 10 Business News of recent time. Page 1

Ten Business News articles at a Glance:

1. Corona virus pandemic economic fallout “ way worse than the global
financial crisis”, IMF chief says- CNBC
2. Coronavirus threatens the next generation of smartphones - BBC News
3. Covid-19 impact: Flying ban lands 80% of Indian aircraft at top six airports -
The Economic Times
4. India GDP forecast: Fitch slashes India growth forecast to 30-year low of
2% for FY21 - The Economic Times
5. Jobs destroyed worldwide as coronavirus sparks recession - The Economic
Times
6. For oil refiners, things have gone from bad to worse in March quarter- Live
Mint
7. RBI announces 3rd targeted LTRO for Rs 25,000 cr to ensure adequate
liquidity- Business Today
8. WHO: Countries rushing to lift coronavirus restrictions risk 'severe' damage
to economy-CNBC
9. Coronavirus Fallout: Fruit farmer stare at a loss of Rs 7000 Cr amid
nationwide lockdown- MoneyControl
10. US wages could take 4 to 5 years to recover from coronavirus outbreak-
CNBC

A Descriptive analysis of 10 Business News of recent time. Page 2

News Article 1

Key Points:

 The coronavirus pandemic has created an economic crisis "like no other," the top
International Monetary Fund official said.
 "Never in the history of the IMF have we witnessed the world economy come to a
standstill," said Kristalina Georgieva, managing director of the IMF.
 "It is way worse than the global financial crisis" of 2008
2008-09,
09, Georgieva said during a
World Health Organization news conference.
Analysis:
 The IMF is working with the World Bank and other international financial institutions to
alleviate the economic fallout from the outbreak, which has infected more than 1 million
people in almost every country across the world, and killed more than 55,000 people.
 The IMF is encouraging central banks in developed countries to support emerging
markets and developing countries.
 The IMF has a $1 trillion fund allocated for this pandemic and also determined to use as
much of it as necessary.
 As per the official report from IMF More than 90 countries so far have applied for
assistance from those funds.
nds.
 From this pandemic most of the developing economies have been hardest hit and often
have fewer resources to protect themselves from the economic fallout.

A Descriptive analysis of 10 Business News of recent time. Page 3

  Nearly $90 billion in investments have "flown out" of emerging economies during the
outbreak, which
ch is a huge loss for the countries that are facing crisis.
 The same way that the virus hits vulnerable people with medical preconditions hardest,
the economic crisis hits vulnerable economies the hardest.

News Article 2

Key Points:
 Approximately 70% off smartphones are manufactured in China - so as the pandemic hit
China, there has been significant disruption to the supply of existing devices," says Razat
Gaurav, chief executive of Llamasoft, a supply chain analytics company.
 Many smartphone makers rely on components that are made in China and South Korea,
two nations that have been hardest hit by the outbreak.
 And it's not just supply, demand has fallen dramatically. Shipments of smartphones in
China tumbled by 40% in the first quarter of 2020, compared with the same period last
year,according to research firm IDC
IDC.

A Descriptive analysis of 10 Business News of recent time. Page 4

Analysis:
 The smartphone manufacturing company suggests that Chinese consumers will buy 33
million fewer phones in the first three months of the year. And there are likely to see
significant drops in Western Europe and the US as well as outbreak has been drastically
increasing day by day so smartphone manufacturing business has been hit very badly.
 The smartphone is a complicated product, and there are so many components that go into
it. In order to source all of those different parts, companies are getting materials and parts
from about different countries, so not only smartphone phones but different parts of the
production process will be affected in different ways.
 Much of the design work does not require significant social contact, but there may be
some research and development work which requires specialized equipment that
employees can't take home. A lot of this work would have already been carried out for
devices set to launch this year, but it could hinder device launches in 2021, which
companies are already working on ahead of time.
 The other issue is around shipping; with many airlines suspending flights and delays with
ocean freight, there is a chance that materials and components may not get to assembly
plants, and that the finished product does not get to retail outlets.
 The effects of this in the world and the China factory shutdowns are only now starting to
ripple down into the smartphone industry, and the impact could be bigger than expected.

A Descriptive analysis of 10 Business News of recent time. Page 5

News Article 3

Key Points:
 Delhi: India’s top six airports, including the two biggest hubs of New Delhi and Mumbai,
are now home to about 80% of the civilian aircraft that have had to remain on the ground
since the authorities enforced a blanked flying ban last week to help contain the Covid-19
Covid
outbreak in the country.
 “Indian carriers have around 650
650-odd
odd planes in their fleet and parking for these airplanes
is not a problem. All airports together, including the government
government--owned Airports
Authority of India (AAI) airports, can handle many more planes,” said a senior AAI
official.
 Airport officials said that Delhi airport itself has parking bays for about 196 aircraft and
Mumbai has place for about 100 aircraft.

Analysis:
 Data sourced
rced from industry sources and flight tracking portals show that at top six
airports — Delhi, Mumbai, Bengaluru, Hyderabad, Kolkata and Chennai — 538 of the
total 650 aircraft are parked. Sources, however, added that planes are also parked at one
of the runways
nways at Delhi airport, which is the only facility in India that has three runways.

A Descriptive analysis of 10 Business News of recent time. Page 6

  During operations, planes are used for domestic operations during the day and same
planes are then used for international operations at night. So, at any given time, the
number
mber of parked planes is not high, as airlines would also want to keep flying these
planes, but due to the outbreak the planes are not running anywhere so causing problem
for the airlines industry for their operational cost increase.
 Before these closures, Indian airports handled about 3,330 domestic and 580 international
departures per day, according to the approved schedule for flights until March-end.
March
 The airlines will still be charged parking fees for their planes. Airlines will have to pay a
parking feee for their planes at airports. The government has not taken any call on waiving
off the parking fee for these airlines yet.
 While many countries have announced a bailout package for various industries, India has
not announced any financial package for its aviation industry, which is surely impacting
the industry drastically as they are not in operation and are being charged for parking
which will increase the operation cost and will cause the financial burden for the aviation
industry.

News Article 4

A Descriptive analysis of 10 Business News of recent time. Page 7

Key Points:
 Fitch Ratings on Friday said it has slashed India's growth forecast for the current fiscal to
a 30-year low of 2 per cent, from 5.1 per cent projected earlier, as economic recession
gripped global economy following the lockdown due to COVID-19 pandemic.
 The initial disruptions to regional manufacturing supply chains from a lockdown in China
as the coronavirus spread have now broadened to include local discretionary spending
and exports even as parts of China return to work.
 "Fitch now expects a global recession this year and recently cut our GDP growth forecast
for India to 2 per cent for the fiscal year ending March 2021 after lowering it to 5.1 per
cent previously, which would make it the slowest growth in India over the past 30
years," it said in a statement.

Analysis:
 As outbreak is increasing, micro, small and medium-sized enterprises and the services
segment are likely to be among the most affected amid reduced consumer spending due
to the lockdown all over the country which will impact the source of revenue for these
sectors.
 As discussed above this micro, small sized enterprises are the NBFCs' business borrowers
and are typically smaller with more limited cash buffers, and any material fall in earnings
is likely to affect their ability to repay their loans directly. This will impact the financial
institutions also.
 The challenges for India's non-bank financial institutions (NBFI) will intensify as local
measures to contain the spread of the coronavirus exert pressure on their operating
performance and financial profiles. Government-imposed activity restrictions in India
will raise operational complications for the NBFIs, while any escalation in local
infections would deal a blow to economic sentiment.

A Descriptive analysis of 10 Business News of recent time. Page 8

News Article 5

Key Points:
 The world’s workers are reeling from the initial shock of the coronavirus recession, with
job losses and welfare claims around the globe already running into the millions this
week.
 As the International Labour Organization warns of almost 25 million layoffs if
i the virus
isn’t controlled, the cuts from Austria to the U.S. reflect the deepest peacetime recession
since the 1930s as economies are frozen to beat the pandemic.
 “We see unemployment rates in the U.S. and Europe getting up well up into the teens,”
Peterr Hooper, global head of economic research at Deutsche Bank AG, told Bloomberg
Television. “Given the pain that we see near
near-term
term in the U.S. and Europe, this is
unprecedented since the Great Depression, in terms of magnitudes.”

Analysis:
 Rising unemployment will intensify pressure on governments and central banks to speed
delivery of programs to either compensate workers who are made redundant, or try to
persuade employers to hoard staff until the virus fades. Failure would risk an even deeper
recession
cession or weak recovery that would require policy makers to consider yet more
stimulus on top of that already deployed.

A Descriptive analysis of 10 Business News of recent time. Page 9

  Economists predict their measure of unemployment in developed markets will jump by
2.7 percentage points by the middle of this year, having started this year around its lowest
in four decades. While there will be some healing as economies recover, they still predict
elevated unemployment of 4.6% in the U.S. and 8.3% in the Euroup area by the end of
2021.
 Not only this, since the number of Americans applying for unemployment benefits soared
to a record 6.65 million last week, more than twice the record set in the prior week. The
9.96 million combined claims of those two weeks is equivalent to the total in the first 6
1/2 months of the 2007-2009 recessions, which we can say that this outbreak is going to
be worse than the recession of year 2007-2009.
 In Asia, Japanese unemployment held at 2.4% in February, but there’s been a sharp drop
in the ratio of available positions to the lowest level in three years. More recent
developments showed a rapid taking up of emergency loans via a government program
for people who have lost their jobs or face wage cuts.
 Much focus will fall on China, whose economy is returning toward full capacity. Its rate
of surveyed urban unemployment jumped to a record 6.2% in February as business shut
down. Those interruptions threw an estimated 8 million people out of work, according to
economists at Australia & New Zealand Banking Group.

A Descriptive analysis of 10 Business News of recent time. Page 10

News Article 6

Key Points:
 The benchmark Singapore gross refining margin (GRM) is estimated to have averaged
only $1.20 a barrel up to 27 March in the quarter, compared to $1.70 per barrel in the
December quarter.
 This has obviously impacted on state
state-run oil marketing companies
nies (OMCs) Bharat
Petroleum Corp. Ltd (BPCL), Hindustan Petroleum Corp. Ltd (HPCL) and Indian Oil
Corp. Ltd (IOC).

Analysis:
 There could be respite due to higher auto fuel marketing margins; extent of gains remains
to be seen
 The 21-day
day nationwide lockd
lockdown
own is expected to impact fuel demand, as all kinds of
transportation activity has diminished greatly, but it will be impacting every auto oil
marketing companies of India.
 There is complete collapse of fuel demand due to the shutdown and even refining
throughput
oughput shutdown coupled with the inventory loss owing to a $12 per barrel decline in

A Descriptive analysis of 10 Business News of recent time. Page 11

 average crude prices (and much sharper $30 per barrel dip over the 2nd-3rd
2nd week of
March) but there could be respite due to higher auto fuel marketing margins.
 So far in 2020, shares of OMCs have declined in the range of 30
30-38%.
38%. Meanwhile, shares
of oil producers Oil and Natural Gas Corp. Ltd and Oil India Ltd have fallen more
sharply by 48-49%.
49%. Lower oil prices are expected to hurt price realizations of these
companies.
 Domestic gas prices too have declined, which will affect realizations of the gas segment.
The shutdown will also affect production numbers.

News Article 7

Key Points:
 While announcing the TLTRO, the monetary authority had said banks would have
deployed at least 50 per cent of the proceeds in corporate bonds, commercial papers and
debentures, so that the secondary market for debt remains fully liquid.

A Descriptive analysis of 10 Business News of recent time. Page 12

  To ensure adequate liquidity in the system, especially in the corporate bond market, the
Reserve Bank of India (RBI) on Friday announced the third targeted long-term repo
operation (TLTRO) on April 7 for Rs 25,000 crore. The central bank announced the
LTROs on February 6 and has pumped in liquidity worth Rs 1 lakh crore since then, and
the TLTRO was announced on March 27 and has so far done two tranches worth Rs
50,000 crore and the initial target is Rs 1 lakh crore.
 "The Reserve Bank will conduct TLTROs of up to three-year tenor of appropriate sizes
for a total amount of up to Rs 1,00,000 crore. So far, Rs 50,000 crore have been
conducted in two tranches and it has now been decided to conduct another TLTRO
operation for Rs 25,000 crore," the RBI said in a statement.

Analysis:
 Banks would have deploy at least 50 per cent of the proceeds in corporate bonds,
commercial papers and debentures, so that the secondary market for debt remains fully
liquid. And will help in the market to operate their operation and also would help people
for living.
 In this globally faced financial crisis, The TLTRO will go a long way in helping the fund-
starved nonbanking financial companies (NBFCs) and housing finance companies
(HFCs) as they borrow heavily from the debt market to meet their working capital
requirements.
 With the intensification of redemption pressures, liquidity premia on instruments such as
corporate bonds, commercial paper and debentures have surged. Combined with the
thinning of trading activity with the virus outbreak, financial conditions for these
instruments, which are used to access working capital in the face of the slowdown in
bank credit, have also tightened.
 Banks shall be required to acquire up to 50 percent of their incremental holdings of
eligible instruments from primary market issuances and the remaining fifty per cent from
the secondary market, including from mutual funds (MFs) and NBFCs.

A Descriptive analysis of 10 Business News of recent time. Page 13

News Article 8

Key Points:
 Countries that rush to lift quarantine restrictions designed to contain the coronavirus
pandemic risk even worse economic damage, the World Health Organization says.
 “We are all aware of the profound social and economic consequences of the pandemic,”
WHO’s top official says.

Analysis:
 Countries needs to help their citizens by expanding social welfare programs, moving
financial barriers and ensuring public health measures are so that people will not face
their financial incapability and will help in improvement of societal welfare.
 This is an unprecedented crisis which demands an unprecedented response. If people
delay care or avoid it because they can’t afford it, they not onl
onlyy harm themselves, they
make the pandemic harder to control and put society at risk. So it’s every countries
responsibility to make sure to take care every fellow citizen.
 World leaders need to build up their public health systems if we’re going to get out of an
interminable cycle of economically punishing lockdowns and shutdowns, we must get

A Descriptive analysis of 10 Business News of recent time. Page 14

 back to be able to control this virus, live with this virus, develop the vaccines that we
need to finally eradicate this virus.
 Many health-care workers are now supporting the COVID-19 response, causing them to
temporarily halt vaccinations for polio in some cases, which may cause the problem for
other children who are already affected with other major diseases and life loss due to this
outbreak in the global scenario.

News Article 9

Key Points:
 The outbreak of Coronavirus and a freeze in the freight and logistics industry that
followed the pandemic may lead to a collective loss of almost $1 billion or around Rs
7,000 crore for the fruit growing farmers across the country.
 For many fruit growing farmers, the time between March and May is particularly joyous
as fruits are transported and sold to wholesale markets and from there it reaches the
consumers.

A Descriptive analysis of 10 Business News of recent time. Page 15

  But this year, things aren’t so rosy.“We are ready to supply bananas but we are not
getting trucks to transport it to the cities,” said Vaibhav Mahajan, a banana grower from
Savada of Jalgaon district of Maharashtra.

Analysis:

 Banana prices have dropped by 60 percent in the last two weeks to about Rs 400 a quintal

but still there are no takers due to non-availability of distribution channels and partial

close down transportation. , transporters charged around Rs 45,000 that has now risen to

as much as Rs 85,000.This has trickled down to consumers in urban cities. Fruits are

being bought at higher prices and the middle man is making money in the process.

 The current situation will impact the small acreage farmers more as such farmers take

loans for farming. Simply put, they will not be able to repay the crop loan they had taken

and may even not have spare money for the next year's season. This will directly cause

the production for the next season and will also cause life threatening situation for the

poor farmers due to non availability of market.

 Several farmers across the region are struggling to sell their produce. Just like banana

growers, farmers are facing trouble in selling their oranges. Oranges have a shelf life of

two weeks after harvest if they are not able to sell then farmers will incur a major loss

this year.

 Oranges from India are also exported to European countries which have also been

stopped during the lockdown. Farmers might face a collective loss of Rs 2,000 crore if

the situation remains the same. Not only with orange and bananas but with other fruits the

situation is same for every farmer.

 The government announced a lockdown in the country on March 24. Farmers complain

that until a week after the announcement there was no transportation allowed by state

governments. In major cities, markets are open for a fixed time period so the demand for

A Descriptive analysis of 10 Business News of recent time. Page 16

 fruits has slowed down significantly. Over and above all this, whenever there is

uncertainty in income people first think only about stocking up on essentials needed for

survival and fruits don’t come under that cat

category.

News Article 10

Key Points:

 It may take Americans up to five years to recover from the hit their wages will take
during the coronavirus pandemic, according to an analysis by Payscale.
 Blue-collar and small-business
business workers are feeling the biggest impact, said Sudarshan
Sampath, director of research for PayScale, a compensation software and data company.
 A lot of folks working for small businesses are probably going to experience something
very similar to 2008, where they are losing everything; it w
will
ill take four to five years for
them to recover.

A Descriptive analysis of 10 Business News of recent time. Page 17

Analysis:

 The pandemic has caused businesses to shutter and workers to lose or be furloughed from
their jobs. About 10 million Americans have filed for unemployment insurance over the
past two weeks. The biggest groups looking for work are bartenders, athletic coaches and
wait staff.
 The Q1 2020 Payscale Index, which tracks quarterly and annual trends in compensation,
found that wages in sales jobs and the energy and utility sectors saw the least growth last
quarter.
 On the other hand, Transportation topped the list, because of the lockdown in almost
every affected countries the increase in demand for delivered goods from the many
people working from home. First-quarter wages grew 3.2% over the past year In
America.
 In the next few weeks, if we see cases and hospitalizations go down, I would feel good
about saying for larger firms it is going to be business as usual come and they will
improve some stance but it is only possible if this could be controlled but as we are
looking the condition of this outbreak the globally pandemic in increasing and can be
predict that the world is going be in worse condition than the year 2007-2009 recession
period.

Recommendation
The stock has turned upwards on good volumes after forming a double bottom, triggering a
resumption of the uptrend. Moreover, it took support at the trend line in the recent correction and
resumed its upward journey, confirming bullishness. RSI has turned upwards, closing beyond the
60-level after making a higher low, which is a sign of strength. the stock has broken out of a
rounding bottom resistance on good volumes, triggering resumption of the uptrend. Further, a
sustained trade beyond Rs 430 will extend the gains in the coming sessions. RSI is also
suggesting an up move. Headline Indices ended lower for the second day running amidst
volatility. Further, the Nifty50 index turned sharply lower post breakdown from the trend line
support of 15,200. However, on the downside, 15,000 will act as a demand zone.

A Descriptive analysis of 10 Business News of recent time. Page 18

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A Descriptive analysis of 10 Business News of recent time. Page 19