Here are 3 interesting things happening in the world of finance.
🏏 How India hosting T20 next year may affect GDP.
🗳️ Gujarat elections can hinder market volatility.
🥘 A 37-year-old diner bill reminds everyone of cheaper times
Read Time: 1.3 mins
1. Cost of 2023 Cricket World Cup
Qatar’s situation hosting the FIFA World Cup
The choice to host the World Cup in Qatar has been the source of substantive controversies, regarding the multiple violations of human rights. The budget for the world cup is $200 bn, the highest so far.
What’s in it for Qatar
Qatar sees this as an opportunity to portray itself as an economy that has more than just Oil.
Oil accounts for 70% of total government revenue, more than 60% of GDP and roughly 85% of export earnings.
Here are the pros for Qatar -
- Foreign inflows of $4 billion
- The Stock Market has outperformed peers.
- 1.5 million new jobs are predicted to be added.
Stack's Verdict: India hosting the world cup will have varying impacts on our economy. The rich get richer & the country’s reputation in the long run improves. Advanced economies should have the edge to generate a financial surplus when hosting such worldwide events as it only requires minor upgrades because the infrastructure already exists.
2. Elections v/s Markets
Gujarat elections are around the corner
Legislative Assembly election is scheduled to be held in Gujarat from 1st to 5th December 2022, results will be declared on 8th December.
Impact of elections on the market
It is generally assumed that if the election outcome is in favour of the existing government, the stock market rises as it indicates political stability and vice versa. However, there are various other reasons why elections affect the prices in the stock market.
Public sentiments to election results & the market
The Sensex shot up by 13 percentage points after the public viewed Dr. Manmohan Singh and P Chidambaram as reform-friendly. Policy reforms undertaken by the Modi government at the initial stage such as fiscal consolidation, and curbing inflation drove the Sensex by 9 percentage points.
Stack’s Verdict: Through the analysis, we see that the election impact is short-term on the market. The main factors which create an effect are economic reforms, policies, and stability. The worry shouldn’t be around who will win the election but whether will it be an unstable coalition or a majority government.
3. Paneer for ₹8
An old bill from cheaper times
A food bill from a restaurant in 1985 viral on social media, has stunned the internet. The bill by Lazeez Restaurant & Hotel shows how low the prices were. Shahi Paneer, Dal Makhni, Raita and a few chapatis priced at ₹8, ₹5, ₹5 and ₹6, respectively amounted to what you’d pay for a small packet of chips today.
After food, healthcare is a bitter pill to swallow
Healthcare in India has turned more expensive as the government has levied a 5% GST on all non-ICU hospital rooms that cost more than ₹5,000. India also imports a lot of medicines, even though Indian pharma companies also export to the US and other nations.
Stack’s Verdict: Inflation is on the increase around the world, with food and energy prices hitting record highs. The rise has been driven in large part by pent-up consumer demand after the pandemic and the Russian invasion of Ukraine.