Issue #25

India on a bull run, shipworms rebranded as delicacy, independent fashion labels struggling, and more.

News from July 11 - July 18, 2024

Lloyds Cuts Taxis and Business Class Flights

Lloyds Banking Group is cutting costs and reducing its carbon footprint by restricting staff use of taxis and business class flights as part of its £4bn strategic overhaul. Business class is now limited to international trips over six hours, and domestic flights should be avoided. Taxis are only for situations with no viable alternative transportation, according to an internal memo.

The new travel changes apply to all 60,000 employees to combat rising costs and emissions since last year Lloyd’s carbon footprint went up 5% due to increased travel.

This policy mirrors HSBC's cost-cutting measures, showcasing a wider trend in the banking industry.

Source

India on a Bull Run

Indian equity issuance has surged, raising over $28bn in the first half of 2024, driven by a stock market bull run and increased local investor flows. Arvind Vashistha, head of India equity capital markets at Citigroup: “We’ve heard people saying, ‘look, get us more paper’.” This 198% rise contrasts with a 32% decline in the rest of Asia.

Despite India's high valuations, some investors are skeptical of future growth, citing that there hasn’t been this level of equity issuance in India before and that current valuations are near all time highs.

Source

Shipworms Rebranded As Delicacy

In Cambridge, scientists are breeding "naked clams" (shipworms) as a sustainable seafood alternative because they consume wood instead of marine life. Marketers aim to introduce them to British supermarkets by 2029 but face challenges with public distaste for their appearance. Efforts are focused on rebranding them as highly nutritious.

Chefs were also recruited to develop appealing recipes to shift consumer preferences toward this eco-friendly choice.

Alvin Leung, judge on Canadian MasterChef: “I’ll be really honest with you, it’s not hard to make something taste good.”

Source

Bulletin Board

• Billionaire Takes Risky Green Bets. Vinod Khosla, a leading investor in clean tech, prefers to invest in high-risk, groundbreaking technologies with the potential for significant impact. He focuses on radical innovations in energy and transport that could transform industries. Despite high failure rates, Khosla remains optimistic about their potential and judges clean tech ideas based on their ability to compete with traditional solutions. Khosla: "“Will it be as cheap as regular steel? The answer, for most of the technologies I’ve seen, is no: it’ll always be more expensive, which means it can’t scale." Source 
• Cybertruck Attacked by Racoons. A Tesla Cybertruck owner reported raccoons causing significant damage to the truck's cargo cover during a camping trip. Despite Tesla's claims of ruggedness, the raccoons chewed through the material, leaving it heavily damaged. Twitter user: "If by 'raccoon-proof' you mean a small animal doing significant damage to your tonneau cover... then OK," Another Twitter user added: "A bear would have peeled it open like a can of sardines in about ten seconds," The incident raised questions about the vehicle's durability, which was advertised as being ready for any planet and rugged enough for harsh environments. Source 
• Political Candidate Accused of Being AI. A political scandal erupted in the UK when Mark Matlock, a Reform UK candidate, was accused of being AI-generated due to his overly edited profile photo. Matlock, who missed the election due to pneumonia, insists he is real, blaming photo alterations on time constraints. Meanwhile, another candidate, "AI Steve," openly an AI, received minimal votes, highlighting growing strangeness in election campaigns. Source
• Independent Fashion Labels Struggling. Emerging fashion designers face a contracting wholesale market and lingering pandemic-related challenges like factory closures and unstable cash flow. With financing drying up and private equity firms reluctant to invest in lesser-known brands, many labels have had to close or pivot. This underscores the need for young brands to adapt by creating efficiencies and exploring new business models to survive in the evolving industry landscape. Source
• Creditor on Creditor Violence. The end of 13 years of nearly free money has exposed the risks of "covenant-light" loans, which lack protective measures for lenders. By 2023, these loans totaled $1.25 trillion, enabling borrowers to restructure debt and often disadvantage some creditors. This has caused conflicts among investors facing the fallout from these high-risk investments, with lenders using aggressive legal tactics to prioritize their claims. The consequences of these lenient lending practices are now becoming apparent, leading to significant financial conflicts. Source  

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Disclaimer: This blog offers insights into international business and global events for informational purposes only. It is not intended as investment or business advice. WeavePay is not liable for any decisions made based on the content provided.

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