Every Monday, Mint’s Plain Facts section has major data releases and events to watch over the coming week. Two major automobile companies- Bajaj Auto and Maruti Suzuki- are set to release their quarterly earnings reports this week. The national capital is witnessing a fresh surge of Covid-19, forcing several states to roll back the face mask mandate. Here’s everything you need to watch this week:
1. covid update
Kovid-19 infection is increasing again in India mainly in and around Delhi. A new sub-version of Omicron, BA.2.12, and its sub-lineage BA.2.12.1, are said to be responsible for the spike. The number of daily infections in Delhi has crossed 1,000, and the number of active cases nationally is inching towards 15,000. India’s effective breeding number, or R-value, has crossed 1 for the first time since January. Some experts have called for the gap between the second and third doses of the vaccine to be reduced to six months, and the Center may take a decision on the matter in the coming days to ensure that more Indians do not bounce back. be ready for
Meanwhile, the World Health Organization is expected to release data this week that could shed light on higher death rates during the pandemic. Media reports suggest that the WHO figures would put India’s likely Covid-19 toll many times higher than the official number.
2. Auto Earning
Commodity- and consumption-based sectors such as automobiles took a hit in the January-March quarter. The gradual recovery after the third Covid-19 wave in January was hampered by the effects of the Russo-Ukraine war from February. Higher raw material prices and input costs may have impacted the automakers’ earnings. This will be clear when Bajaj Auto and Maruti Suzuki announce their financial results on Wednesday and Friday respectively.
Analysts at Axis Securities believe Maruti Suzuki’s volumes declined 1% year-on-year due to persistent supply chain issues and semiconductor chip shortage. Bajaj Auto’s operating profit is projected to decline 27% and the headwind presented by raw material cost could hurt gross margins. Market participants will have to watch for comments of companies on the impact of commodity cost pressures on product prices for the end consumer.
3. US GDP
The US is set to release its GDP growth figures for the March-ended quarter on Thursday. The economy grew 6.9% sequentially in the December quarter, but is likely to perform poorly this time as high inflation and the war between Russia and Ukraine have taken their toll. Some forecasters predict the growth rate could drop to 0.5%. A large part of the muted estimates can be attributed to the waning impact of inventory build-up by companies, which was witnessed in the last quarter ahead of the winter holidays. Inflation also hit a 40-year high during the quarter, prompting the Federal Reserve to hike interest rates. Higher prices will have a huge impact on consumer spending. Analysts say exports could be weakened as supply chains disrupted by the Ukraine war.
4. Russia Interest Rate
The Central Bank of the Russian Federation is set to hold its next interest rate review meeting on Friday. On 28 February, the central bank raised the benchmark interest rate from 9.5% to 20% in an emergency move to counter the risk of inflationary pressures caused by sanctions imposed by the US and some European countries in retaliation for Russia’s invasion of Ukraine. Had done it. However, in an unscheduled meeting on April 8, the apex bank pushed it back to 17%, indicating that a catastrophic hit to the financial system was contained.
Recent weekly figures show a marked reduction in inflation for the sixth straight week as the price rally, which had particularly affected Russian domestic demand, has reversed. The ruble, which fell dramatically after the attack, has also made a rapid comeback. The central bank may further reduce interest rates in the upcoming meeting.
5. Labor Day
The first day of May is celebrated worldwide as Labor Day, also known as May Day and International Workers’ Day. Workers honoring leave was first implemented in the late 19th century, when American workers, in testing conditions and working 12 hours a day for less pay, demanded better conditions and working hours. Went on strike. Almost a decade later, in 1894, America declared Labor Day a holiday. Many nations now celebrate it as a public holiday, while some celebrate it on a different date.
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The pandemic has changed the perception of work for white-collar workers in some industries, which now also call for a four-day work week. However, for the working class, especially in exploitative industries, the reality is hardly rosy. Data from the International Labor Organization shows that even today, some countries follow the standard 40-hour work week. In India this figure is 48 hours a week.