Orowealth Weekend Reads: November 1, 2020
LAST WEEK MARKET MOVES
|Sensex||Nifty||Nifty Midcap 100||Nifty Smallcap 100|
|39,982.98 (-1.30%)||11,762.45 (-1.27%)||16,787.00 (-1.79%)||5,839.30 (-0.63%)|
NEWS WE HAVE BEEN FOLLOWING
The novel coronavirus seemed to have loosened its grip on Europe a few fortnights ago. However, slacking in the rules on public gatherings and lack of concern from the public has caused cases in several European nations to spike again. This has led to many countries from the continent having announced lockdowns afresh. We look at some of the nations which have done so:
Germany: Germany was reporting less than 1,000 cases per day by mid-September. But these jumped to over 14,700 by October 24. According to some reports, German Chancellor Angela Merkel has told her party that they should prepare for a very difficult winter season. The country has limited gatherings to 10 in hotspots and 15-25 in non-hotspots. Face masks are mandatory in public.
UK: The UK has seen COVID-19 cases rise to 20,000 presently from 3,000-4,000 in mid-September. England has moved from Tier 1 ‘medium alert’ to Tier 2 ‘high alert’ level. In order to gain control over the spike in cases, Lancashire, Greater Manchester, Liverpool, and South Yorkshire have been put under the most severe restrictions.
Italy: The country has shut down cinemas, gyms, and swimming pools until November 24, has banned gatherings on funerals, and has cancelled all events and fairs.
The second wave is a sign of worry for Europe and a lesson to other countries to remain cautious until they defeat the virus.
India signed the Basic Exchange and Cooperation Agreement (BECA) with the US on October 27, further deepening military ties between the two nations. The aggressive stance by China has brought these two nations even closer after having signed the Logistics Exchange Memorandum of Agreement (LEMOA) and the Communications Compatibility and Security Agreement (COMCASA) earlier. LEMOA was the first of the three pacts signed in August 2016 and allowed the armed forces of the two countries make use of each other’s bases and ports and use facilities for which payment can be made later. The COMCASA – signed in September 2018 in the first 2+2 dialogue – allowed India to access US’ encrypted communications systems so that armed forces commanders and defence vehicles of the two countries can communicate securely with each other.
BECA – the third in the troika of these pacts – gives India access to US’ geospatial intelligence in real time. This permission will make India’s automated weapon systems more accurate. Missiles and armed drones will be able to navigate the topography and aim at their targets better than before. It can also help in responding better to natural disasters. While LEMOA was beneficial for Navy-to-Navy cooperation, BECA is expected to enhance the cooperation between the air forces of the two countries.
The signing of BECA amid India’s military standoff against China on the Line of Actual Control (LAC) in Ladakh sends a strong message to the latter regarding greater cooperation between two powerful militaries and its geopolitical implication for the dragon.
FROM OUR BLOG SECTION
Importance of Investing
We have always heard the proverb “a penny saved is a penny earned”. These words ideally define saving money. Saving allows you to cut down on expenses that are irrelevant and put that money to use for a later purpose.
QUOTE OF THE WEEK
“Beware of little expenses; a small leak will sink a great ship.” – Benjamin Franklin
Chosen by Raksha – Orowealth