July 31: Tata's Italian job, 25% tariffs on India, Aussies ban YT for kids

Good Morning!

Shaktimaan is back and he’s coming for …. your phone. Veteran actor Mukesh Khanna in an interview highlighted that he’d been working closely with Sony for years for the reboot of Shaktimaan. Channelling all our parents, he suggested that he would show ‘mobile phones’ as the villain in the first episode if the show were made today. Episode 2 is rumoured to feature his real nemesis: the “Good Morning 🌸” WhatsApp message.

Now, let’s get into the Dispatch! 🚀

Today’s reading time is 5 mins.

Dalal Street saw a green day on Wednesday, as both the Sensex and Nifty ended on a positive note amid volatility on the F&O expiry day.  

Tata Motors is set to buy Italian truck manufacturer Iveco from the Agnelli family for a deal worth $4.5 billion. This would be the Tata Group’s second-largest acquisition to date and the largest one for its automotive business, the last major acquisition being Jaguar Land Rover for $2.3 billion in 2008.

Iveco: Who, What, Where? Iveco Group, a major automotive player based in Turin, operates across four key segments: trucks, buses, defence vehicles, and powertrain systems. It is the smallest of Europe’s leading truck makers (Volvo, Daimler, Traton etc.), with ~75% of its revenues come from Europe. Iveco is currently under the control of the Agnelli family, which also maintains significant investments in Ferrari and controls Stellantis (owner of the Fiat brand). The company has announced a strategic breakup, with its defence division being sold to Leonardo SpA and the remaining businesses acquired by Tata Motors.

Jodi No.1? The Agnelli family has longstanding ties with the Tata Group built through past joint ventures (FIAT and Tata). This new merger gives Tata a crucial foothold in Europe’s commercial vehicle market where it currently lacks any presence and manufacturing footprint. It also gives the group access to Iveco’s advanced design and sustainable transport technologies. The combined group would have a significant global presence, with sales of over 540,000 units per year and revenues of around 22 billion euros.

Market mood: While the announcement sent Iveco shares up by ~7.5%, Tata Motors’ share was down by up to 3.7% highlighting investor concerns around the acquisition. The deal, however, is still not confirmed and is subject to due diligence and regulatory approvals.

Ahead of the August 1 deadline, US President Donald Trump announced a 25% tariff rate for all goods imported from India, along with an unspecified ‘penalty’ for purchasing Russian oil and weaponry. With the trade negotiations still ongoing and not expected to reach a conclusion anytime soon, the announcement puts the relationship between the two strategic partners in murky waters. In his post on Truth Social, Trump described India as a friend but said "tariffs are far too high, among the highest in the world", along with criticizing India's purchases of Russian military equipment and energy.

Key reasons for levying tariffs

Hold up in the talks: India and US have held several rounds of talks, however, Agriculture and Dairy sectors seem to be sticking points between the nations. Agricultural is the largest employer in India engaging ~44% of the total national workforce. India has always maintained that opening it to the US could do significant damage to the domestic economy.

India’s response: The government responded by saying that it had taken note of the statement and is studying its implications. It said that it remains committed to a fair, balanced and mutually beneficial bilateral trade agreement and attaches the utmost importance to protecting and promoting the welfare of farmers entrepreneurs, and MSMEs.

Reliance on ‘Cheeni Kum’: Reliance Consumer Products is reportedly in early discussions to acquire a majority stake in Shunya, a premium zero-sugar fruit drink brand from Baidyanath Group's Naturedge Beverages. This potential acquisition would mark Reliance's fourth venture into the beverage sector, following its purchases of Campa Cola, Sosyo, and RasKik. This move by Reliance is well-timed, as the market for low- and no-sugar drinks in India is experiencing rapid growth. India's overall sugar-free and diabetic-friendly foods market is projected to grow at high single digits over the next decade indicating a sustained consumer preference for such options. 

Decathlon's ‘Make in India’ push: The French sport retailer, Decathlon, aims to boost sourcing from India to $3 billion by 2030, focusing on footwear and fitness gear, supporting "Make in India" for global and local supply. 

India’s coal production record: India achieved a significant milestone in FY25, producing over 1 billion tonnes of coal for the first time in one fiscal year. The government aims to further increase domestic coal production to 1.5 billion tonnes by 2030, implying an annual growth rate of 6-7% in the next few coming years.

Flights are getting bumpier and Air anxiety is rising. Climate change may be playing a role in your rollercoaster ride, and Owls to AI are being sought out to turbulence-proof your journey.

Read this BBC report to understand why plane turbulence is becoming more frequent - and more severe.

What's happening down under? Australia is making headlines with its world-first move to ban social media accounts for children under 16. This comprehensive ban, set to kick off in December, now includes YouTube, reversing an earlier exemption.

What’s in the ban? 

How it stacks up globally: Australia's ban is pretty unique because it does not allow for exceptions due to parents consent and directly makes platforms responsible for age verification. While many other countries are also tackling this issue, their approaches vary. Countries like France, Germany, Belgium, and Italy require children under the age of 14/15 to have parental consent for account creation, while some US states implement daily usage limits. In India, children under 18 are prohibited from creating social media accounts without verifiable parental consent.

Australia's laws are being watched with great interest by global leaders as countries try to protect children from social media’s negative mental health impacts.

Pacific quake: A powerful magnitude 8.8 earthquake, among the strongest ever recorded, struck off Russia's Kamchatka Peninsula. This triggered widespread tsunami warnings across the Pacific, impacting areas from Russia's Kuril Islands to Japan, Hawaii, and Alaska, where waves up to 5 meters were anticipated. The US West Coast, including California, Oregon, and Washington, also received tsunami advisories. This was the world’s strongest earthquake in 14 years.

Meta’s smart glasses unexpectedly 3x in revenue: Sales of the Ray-Ban Meta smart glasses have more than tripled in the first half of the year compared to the same time last year. Since their launch in October 2023, two million pairs have been sold. The success is now prompting other tech giants to develop their smart glasses. 

US crypto policy report: The White House released a crypto policy report, guiding market structure, taxes, and consumer protection. It aims to clarify and recommend a framework for blockchain-based assets. 

Spain’s nomad visa: Spain has rolled out a new digital nomad visa for roughly ₹8,000 for non-EU remote workers. It's valid for one year, extendable, but requires at least 80% of your income to come from outside Spain. 

President rule to be extended in Manipur: Home Minister Amit Shah is likely to move a resolution in Lok Sabha to extend President's Rule in Manipur for six months.  

170-hour Bharatanatyam performance: In a remarkable feat, Mangaluru student Remona Evette Pereira set a world record with a 170-hour continuous Bharatanatyam performance (15-minute break every 3 hours), entering the Golden Book of World Records for her incredible dance marathon. 

Abhishek Sharma joins elite list: Young Indian left-handed opener, Abhishek Sharma, is now the No. 1 T20I batter with 829 points, joining Virat Kohli and Suryakumar Yadav as the only Indians to achieve this elite ranking.  

LOC encounter: Two suspected Lashkar-e-Taiba terrorists were killed by army troops in Poonch, J&K, while attempting to infiltrate along the Line of Control. An operation is currently underway in the area after an exchange of gunfire. 

Tragedy in Ladakh: A boulder struck an Indian Army convoy vehicle in Ladakh, killing two army personnel — Lieutenant Colonel Bhanu Pratap Singh and Lance Dafadar Daljeet Singh. A rescue operation was launched following the incident.

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