Welcome to another edition of The Under60 Daily - a brief rundown of the top happenings in the business world, compiled by hand to exclude the clutter and ensure you get up to speed in under a minute.
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[IPO] JD Logistics, the logistics arm of Chinese e-commerce group JD.com, faced a volatile first day of trading as the buzz surrounding the $3.1 billion IPO died down. The company’s shares surged by as much as 18% during the day, but ended up closing just 3.3% higher, giving the company a market capitalization of $33 billion. JD Logistics provides same day and next day delivery on orders placed on JD.com.
[Automobiles] Two of India’s largest automobile manufacturers, Tata Motors and Mahindra and Mahindra, reported a sharp decline in wholesale automotive sales during May, highlighting the effect of the second wave of the pandemic on demand. Tata Motors reported a 40% dip in passenger vehicles and a 35% dip in commercial vehicles month on month. Mahindra and Mahindra reported a 56% drop in passenger vehicles and a 12.5% drop in commercial vehicles. However, the companies expect demand to start picking up as lockdowns ease across the country.
[Inflation] The Eurozone’s inflation hit 2% in May, crossing the European Central Bank’s target inflation rate for the first time since 2018. The ECB is set to meet next week to discuss measures on how to cool inflation, including reducing the rate of its quantitative easing program, which could have negative knock-off effects on equity markets.
[Currencies] The People’s Bank of China will raise Chinese financial institutions’ reserve requirements from 5% to 7% of total foreign exchange deposits. The increase is the first since the global financial crisis in 2008 as China now looks to control a rally in its currency, rising commodity pricing and slowing growth. In a separate event, China has allowed couples to have three children as the country faces an ageing population problem coupled with slowing future economic growth.
[Oil and Gas] Prices of Brent Crude went above $70 a barrel, touching its highest level since March. The rally comes as OPEC+ are set to meet later in the day and decide whether to increase oil supply or hold it at current levels. The expectation is that supply will stand at 38.1 million barrels a day in July.
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