Good morning! Did OpenAI rush into opening its app store? Looks like it. According to The Information, its marketplace for buying and selling custom chatbots is becoming a ghost town. An analyst estimates that most apps on the GPT Store attract just one or two daily active users. The lacklustre interest likely stems from uninspiring offerings such as essay writing bots or Paul Graham impersonators. Plus, access is limited to ChatGPT’s paying users. OpenAI not letting developers monetise GPTs is also disincentivising them from creating high-quality apps. A self-perpetuating cycle, if you ask us. 

Roshni Nair, Jessica Jani, Anup Semwal, and Adarsh Singh also contributed to today’s edition.

The Market Signal*

Stocks & Economy: Indian indices are back where they started at the New Year. Equities crashed on Tuesday, largely because of peaking momentum and frothy valuations in some segments. 

Meanwhile, the last negative interest rate regime in the world has fallen. As widely expected, the Bank of Japan raised its interest rate target from -0.1% to 0-0.1%. Markets saw the hike as insubstantial. That reflected in yen weakness as it became evident that foreign money or even Japanese money invested abroad is not in a hurry to rush in. BOJ Governor Kazuo Ueda went to great lengths to explain how tough it was to arrive at the ideal interest rate. 

It’s now the US Federal Reserve’s turn to reveal its rate policy, which it will do later today. 

Asian markets were painted green in the morning, the same as the US. The GIFT Nifty hints at a flat opening in India.

ELECTRIC VEHICLES

Repair❎ Replace✅

Even though EV battery prices have been falling faster than expected, battery packs make up half (or more) of the cost of an EV. Over time, a battery’s range drops. And replacing it is a key pain point for users. But early adopters have found an easier way. Owners of older EV models (like the Mahindra e2o) have been repairing their battery packs at independent workshops for a fraction of the cost. 

Replacing individual cells that have degraded can increase the life and range of the battery. The question is, will this still be possible in the next ten years? 

There is a growing concern about batteries being made nearly impossible to repair. Plus, third-party mechanics (who dominate the repair space) don’t have access to design or diagnostic data from manufacturers. This means that batteries that could be used might go straight to the bin, not only making it more expensive for users, but also contradicting what EVs stand for. Head to The Core to read more. 

PODCAST

Tune in every Monday to Friday as financial journalist and host Govindraj Ethiraj gives you the most important take on the latest in business and economy.

Today, he speaks to Surendra Mehta, National Secretary, Indian Bullion & Jewellers Association, on the slowdown in retail sales for gold on record high prices.

FINANCE

When Asset Reconstruction Becomes A Liability

In the 2021-22 Union Budget, finance minister Nirmala Sitharaman gave the go-ahead for asset reconstruction companies (ARCs). The goal was to help distressed banks tackle non-performing assets or NPAs and clean up their books in the process. Banks would then be able to focus more on credit growth.

But ARCs were already struggling in 2022. It began when the public sector National Asset Reconstruction Company Limited (NARCL) began competing directly with private ARCs for the bad loan aggregator market. As it took on more stressed assets—as many as 15 in early 2022—other ARCs increasingly dealt in retail loans over corporate ones. Adding fuel to their fire were RBI mandates for minimum capital and owned funds requirements, which have a March 2024 deadline.

As ARCs hurtle towards the cut-off point, The Core examines the creaking business of asset reconstruction. Turns out the NARCL and RBI aren’t the only hurdles.

RETAIL

Former Retail King Bids For Own Ghost Mall 

Is India’s OG retail pioneer Kishore Biyani trying to make a comeback? Perhaps he is. Biyani has offered ₹476 crore (~$57 million), a mere ₹1 crore more than the Runwal Group’s bid, to settle the debts of SoBo Central Mall near Mumbai Haji Ali.

The mall, formerly Crossroads, with a total leasable area of 1.5 lakh square feet, is owned by Bansi Mall Management Company (BMMC), part of Biyani’s bankrupt Future Group. The mall mostly had Future’s shops which have all closed down. 

The group took a fatal knock during the pandemic and was ultimately saddled with about ₹30,000 crore in debt when it went into bankruptcy. It was also caught in the middle of an acquisition tussle between Amazon and Reliance Industries.

The Signal 

One reason that may have prompted Biyani to jump into the fray is a National Company Law Tribunal clarification in January. It said former promoters and directors can bid for their company’s assets if they are not specifically disqualified under Section 29A of the insolvency law. It could also be a real estate play as Biyani is reportedly supported by a property developer. While downgrading BMMC’s debt in 2020, rating agency Crisil had noted that the property was in a favourable location and had high potential for redevelopment. In 2012, Biyani had  attempted to create malls for wholesalers in major cities and had tied up with real estate group Sattva and another led by Sumit Dabriwala, who also headed Future Market Networks.

🎧 Is Kishore Biyani plotting a comeback? Also in today's episode: Japan decides to end negative interest rates. Tune in to The Signal Daily on Spotify, Apple Podcasts, Amazon Music, Google Podcasts, or wherever you get your podcasts.

FYI

Second time’s the charm?: The consortium of SpiceJet chairman-MD Ajay Singh and Busy Bee Airways has increased its bid for bankrupt airline Go First from ₹1,600 crore ($~193 million) to ₹1,800 crore (~$217 million), Moneycontrol reports.

Meltdown: FMCG giant Unilever is spinning off its ice cream business—which includes brands such as Magnum, Ben & Jerry’s, and Kwality Walls (India) and accounts for 16% of overall sales—and slashing 7,500 jobs worldwide in a cost-saving exercise.

Prime focus: More people signed up for Amazon Prime Video in India than any other market “for the last several years”, according to platform and MGM Studios chief Mike Hopkins; Amazon will release over 70 new films and TV shows “in the coming years” in India.

From one camp to another: Microsoft has hired Google DeepMind co-founder Mustafa Suleyman to head its newly-created consumer AI division, Microsoft AI.

Privacy, discounted: Meta has offered to halve monthly fees for ad-free versions of Instagram and Facebook in the EU after a backlash by consumer groups and privacy advocates.

THE DAILY DIGIT

87%

Cricket’s share of the sports business in India, worth ₹15,766 crore, in 2023. (Business Standard)

FWIW

Hope: The FDA has approved a drug called resmetirom to tackle Metabolic dysfunction-Associated Steatohepatitis aka MASH, the liver ailment tied to obesity. A year-long trial paints a promising picture, with resmetirom curbing liver inflammation and scarring, potentially steering patients away from liver failure or cancer. Simultaneously, semaglutide is also being tested for MASH mitigation, pitting the two against each other. Whatever the outcome, one can be sure that the world of medical science is in for exciting times!