Auquan's Weekly Wrap | 28th - 3rd February: What you might have missed

Navigating the New Normal: The Impact of Inflation, Regulations and more...

Top Themes

Inflation in Consumer Staples

Hiroko Masuike/The New York Times

Inflation in consumer staples is a global theme that has been affecting consumers across the world. The rising cost of food is being felt everywhere, with countries like Germany, the Philippines, Pakistan, and the US experiencing increased food prices. The food industry is grappling with rising prices for raw materials, like chicken eggs and raw milk, resulting in a surge in the cost of end products like tamagoyaki, yoghurt, and butter. To ease the burden on households, the German government is considering reducing the value-added tax (VAT) on certain foods, but not everyone would benefit equally from the measure. On the other hand, countries like Pakistan face a food crisis due to a shortage of basic foodstuffs like wheat flour.

Credit Card Delinquencies


Credit card delinquencies are rising in the US, as data from TransUnion reveals that total credit-card balances hit a record high of $930 billion in the fourth quarter, an 18% increase from a year earlier. The rising trend in delinquencies is due to the combination of higher interest rates and inflation, which is making it harder for consumers to pay off their debts. Brazil's credit card delinquency rates have also skyrocketed, reaching 44% in some cases. This has caused the country's biggest banks to limit credit access to those in need, leading some experts to question the fintech industry's ability to serve those who are unbanked.

Adani Group Accounting Fraud Charges

Kobi Wolf/Bloomberg via Getty Images

The Reserve Bank of India (RBI) has requested information from local banks regarding their exposure to the Adani Group due to a report from US short-seller Hindenburg Research. The central bank and stock market regulator investigate potential irregularities and bank exposures. Adani's businesses have lost over $100 billion in value, and listed companies, including TotalEnergies, have seen share price drops and trading halts. Banks such as Credit Suisse and Citigroup have ceased accepting Adani bonds as collateral. The recent issues surrounding Adani have led to reduced exposure by foreign investors to the Indian stock market.

Microsoft Antitrust Probe

REUTERS/Dado Ruvic

Microsoft is facing a new antitrust probe by the European Commission over its purchase of Activision Blizzard King and has been issued a €60 million fine by the French privacy regulator CNIL over insufficiently transparent cookie consent policies. The company made a preliminary offer of concessions to try to allay the EU's concerns. Microsoft, which has been fined 2.2 billion euros in the previous decade by the EU for cases involving "tying" and other practices, declined to comment on the latest regulatory action.

Thank you for reading! Don't forget to subscribe to our newsletter for more!

Auquan provides under-the-radar insights across the supply chain using Auquan's extensive 1m+ source coverage, helping investment managers with:

  • Portfolio risk monitoring
  • Idea generation for any topic, sector or theme
  • ESG research and exposures
  • Custom Data Deep Dives

Subscribe to Auquan

Don’t miss out on the latest issues. Sign up now to get access to the library of members-only issues.