Donald Trump's Davos Address, Dr. Reddy's Q3 Results, Tata Motors' China Woes | Rise With Profit

This is the daily morning update from NDTV Profit. Over the next few minutes, I’ll bring you up to speed with everything you need to know at the start of the end of your week.

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It was all about Donald Trump overnight, after the President of the US addressed world leaders that were gathered at the World Economic Forum in Davos. He had already cast a long shadow over the event in the days leading up to his virtual address. The uncertainty of what his policies would mean for the global economy dominated conversations.

Trump made several statements during his address, but some, as they usually do, stood out. First, he said he would ask Saudi Arabia and other countries from the OPEC bloc to bring down the cost of oil. He then reiterated his threat to use tariffs to bring manufacturing back to the US.

Trump also said he would demand an immediate drop in interest rates, which he said had increased deficits and resulted in what he described as an economic calamity under Joe Biden.

On the point of manufacturing in the US, he said, “If you don’t make your product in America, which is your prerogative, then very simply, you will have to pay a tariff, differing amounts, but a tariff which will direct hundreds of billions of dollars, and even trillions of dollars into our Treasury.”

Wall Street ended higher with the Dow and the S&P 500 gaining 0.9% and 0.5%, respectively. The Nasdaq Composite, meanwhile, rose 0.2%. Meanwhile, the three early risers in the Asia Pacific region have also started in the green.

Bond yields and the dollar have stayed largely unchanged. And Brent crude was trading at close to $78 to the barrel, last I checked.

In news back home, Kotak Mahindra Bank Ltd. has completed the personal loan book buyout of Standard Chartered Bank, India, worth Rs 3,330 crore, after receiving necessary regulatory approvals, the bank said in an exchange filing.

India's domestic air traffic continued to rise in December, as aviation demand remained steady during the peak winter travelling season. The overall domestic air traffic stood at 1.49 crore during the month, higher by 8.19% year-on-year. Bear in mind that the data was out earlier in the week, so some reaction may already have taken place in the shares of IndiGo parent Interglobe Aviation Ltd., which by the way, reports earnings today. IndiGo’s market share in December stood at 64.4%, while SpiceJet was at 3.3%.

Tata Motors is seeing macro headwinds in China, with a decrease in overall profitability and an increase in retailer insolvency and contraction in bank credit. These are comments that were made by PB Balaji, the group CFO of the company, to Bloomberg. China is an important market for Jaguar Land Rover, which contributes a large chunk of the consolidated revenue and profit of Tata Motors. Donald Trump’s comments about manufacturing in the US may also be seen as a negative, considering the company doesn’t have manufacturing there.

In earnings that came in post market hours, Dr. Reddy's Laboratories reported that its profit rose 2% in the third quarter at Rs 1,413.7 crore, but missed analysts' estimates, which had pegged it at Rs 1,507 crore.

The double-digit growth in revenue was led by newly acquired nicotine replacement therapy business. Excluding NRT business, the growth was 7.5% in the quarter. The NRT business contributed Rs 605 crore to overall revenue for the company.

Watch out for Syngene in trade. It has reduced its FY25 revenue guidance because of a delay in US biotech funding recovery.

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