Good morning! Vaccines are back in the spotlight. The Telegraph reports that AstraZeneca admitted in a UK court that its Covid vaccine can cause blood clots, albeit “in very rare cases”. This isn't exactly new information, though. Scientists had identified this side effect shortly after the vaccine rollout. Official data shows that at least 81 deaths in the UK are suspected to have been caused due to blood clotting from the vaccine. In India, where the vaccine was administered under the brand name Covishield, over 175 crore doses were given, and the government last confirmed at least 36 cases of side effects. But, overall, as the Union Health Ministry had also pointed out, the possibility of the side effect, though concerning, is still “minuscule”.

🎧 AstraZeneca faces the music over vaccine side effects. Also in today’s episode: why are students protesting in US universities? Tune in on Spotify, Apple Podcasts, Amazon Music, Google Podcasts, or wherever you get your podcasts.

Dinesh Narayanan, Anjali Palod, and Anup Semwal also contributed to this edition.

The Market Signal* 

Stocks & Economy: Labour costs in the US surged by 1.2% in January-March, yet another indication that the world’s largest economy is not slowing down. Consumer confidence in April, however, fell to its lowest in a year and a half. The data arrived as the Federal Reserve rate-setting committee sat down for deliberations. 

The economic data pulled down stocks as it became almost certain that the Fed will hold rates for longer. 

Retailer Amazon posted a 13% rise in revenue to $143 billion as its cloud business soared in the first quarter of the year. Big Tech earnings have remained robust. Google parent Alphabet’s performance has catapulted it into the $2 trillion market cap club. The stock has risen 400% since Sundar Pichai took over as CEO, pushing him to the threshold of the billionaire club. 

Asian markets opened in the red. Indian markets are closed for Maharashtra Day.

FMCG

K-uick Fix

Indian noodle companies, big and small, are capitalising on the popularity of Korean noodles amidst a saturated masala noodles market. With a 5.7% penetration rate as of July 2023, companies are drawn by the promise of growing demand for Korean instant noodles.

The appeal lies in the opportunity for fresh growth and the spending habits of those opting for pricier Korean options. While imported brands rely on authenticity, FMCGs leverage distribution networks. However, the longevity of this trend is uncertain, with some viewing Korean noodles as a temporary fixation, subject to market shifts. Read this report in The Core to know more. 

EDUCATION

US University Protests Test Indian Students

Indian parents of college-going children worry a lot, almost as a rule. Even more so if they attend a foreign university. With political protests raging through US campuses, their anxiety has hit Xanax-popping levels. 

Students who participate in the protests run the risk of losing their visas and scholarships. It can get even more complicated if they get detained by the police. An arrest goes into the records and could become a career-long red flag. 

Indian students pay through their nose to study in prestigious colleges abroad; collectively spending ~$20 billion to study in the US alone. Even those who are not protesting may end up losing classes. Some of the lectures have been shifted online but more disruption is on the cards. The standoff at Columbia University has escalated after a group of students barricaded themselves in an academic block. 

CLIMATE CHANGE

Green As A Pickle

India’s doubling down on coal-generated electricity due to a global price crash—for which it has Chinese oversupply to thank—may come back to bite it. G7 countries declared in a ministerial meeting that they’d shutter coal-fired power plants by the early 2030s. Italy’s deadline for exiting coal completely (with the exception of Sardinia) is 2025. The goal is in line with the direction outlined by the COP28 summit last year.

What does this have to do with India?: The COP28 agreement on coal was debated by delegates from China and India. Both countries stressed a balanced transition "in a just, orderly and equitable manner”. The G7 decision will place increased pressure on the duo to start walking away from coal.

The Signal

At the same time, the Indian government is also in the process of updating its Insolvency and Bankruptcy Code (IBC), Business Standard reported. This will have provisions for environmental liabilities and claims. For instance, if a coal company gets into financial hot water, the IBC can mandate that it transition to cleaner energy as part of its resolution process. One bone of contention is that creditors may not have the expertise needed to give directives on such transitions.

The Principal Scientific Advisor and the Nuclear Power Corporation of India recently advocated for nuclear energy as pivotal to the country’s Net Zero ambitions. How quickly investments in this sector translate into meeting power demand during increasingly-intolerable summers could be key to India’s green transition and a new IBC as well.

FYI

Deal to divide: The Godrej family is splitting the 127-year-old conglomerate with Adi Godrej and brother Nadir getting the listed firms and cousin Jamshyd controlling the unlisted entities. 

Departing early: Noel Quinn, who became chief executive officer of HSBC Holdings in 2019 and led a massive business restructuring, has abruptly resigned. 

Shopping spree: The Reserve Bank of India bought 19 tonnes of gold in January-March, 2024. It had purchased only 16 tonnes of the metal in all of 2023. 

Easing up: Market regulator Sebi has allowed Gujarat’s GIFT City-based foreign funds to accept money from foreign citizens of Indian origin and non-resident Indians. 

In you go: A Seattle district judge handed down a four-month prison sentence, much less than anticipated, to Changpeng Zhao, the founder of cryptocurrency exchange operator Binance. 

THE DAILY DIGIT

$5-6 million

What Google will annually pay NewsCorp, owner of The Wall Street Journal, to licence its content for training AI. (The Information) 

FWIW

Plants over proteins: We may have misjudged our pre-agricultural ancestors. Defying the common view that they lived off meat, a new study shows hunter-gatherers mostly ate fruits and vegetables plucked from wild plants. Researchers came to this conclusion after examining bones and teeth of seven ancient humans found in a Moroccan cave. The site also yielded remains of different edible wild plants. We’re talking sweet acorns, pine nuts, oats, legumes, and pistachio. This is not to say ancient humans were strictly vegetarian—bones of a sheep species were also found at the site—but evidence strongly suggests our ancestors were enthusiastic gatherers first and hunters second.