August 22, 2020 Dose 35

The Capsule

From Bandhgalas to Tuxedos, Zurhem makes it all. Catch Founder and Creative Director of Zurhem, Mehruz Munir this Sunday live on The Capsule IG

TOP STORIES

All outstanding issues with China to be resolved in an expeditious manner

Fire at Srisailam Power Plant leaves nine dead

The Election Commission issued safety guidelines for election-related activities during COVID-19
Digging Deeper: The guidelines include:

  • Online system for nomination of candidates
  • Voters must wear masks and gloves will be provided during the voting process
  • Those with COVID-19 symptoms will be facilitated to vote in the last hour of poll
  • Maximum of 5 people, including the candidate, will be allowed to campaign door to door

Rayhan Kabir, who was arrested in Malaysia after appearing in documentary 101 East, returned home

New shipping service through Vietnam will initiate from today

Pensions will be delivered online from 2021
Digging deeper: The government is trying to solve for the bureaucracy faced by pensioners, as well as harassment complaints during the verification process. The mobile app aims to streamline the process away from the status quo need for physical presence. 

The nation mourned the horrific attack on an Awami League rally on Aug 21, 2004

S&P reaffirms Pakistan's credit rating as stable
What it means:
The S&P rating represents the overall creditworthiness of a firm, city, or country that issues debt. Pakistan has received a 'B-' long term and 'B' short term sovereign rating. A narrow tax base, domestic and external security risks, and the effects of the pandemic have been cited as reasons behind the score.

Newly elected President Rajapaksa will abolish an amendment which limited the President to two terms

A rare golden turtle has been found for the first time

MARKET INDEX

SOUTH ASIA

TODAY

1-DAY

YTD

DSEX

4,794

+0.07%

+7.65%

SENSEX

38,434

+0.56%

-7.05%

KSE100

27,858

-0.77%

-32.71%

CSE

5,382

+0.41%

-11.82%

GLOBAL

S&P

3,391

+0.15%

+4.08%

FTSE

6,002

-0.19%

-21.07%

OIL

44

-1.69%

-33.37%

GOLD

1,934

-0.48%

+27.60%

TECHNOLOGY AND STARTUPS

After 14 years, Microsoft's new Flight Simulator was finally released this past week

Gmail and some other Google services suffered a widespread outage

Apple is now a $2 trillion company

A startup you should follow:
Ugly deals, based in Chittagong, Bangladesh brings you some not-so-ugly restaurant, cafe, clothing, and lifestyle store deals to your fingertips. Popular among students, the platform offers three tiers of deals: regular for standard discounts, featured as per partners, and flash deals that are exclusive to UD and only available for a limited amount of time.

SPORTS CORNER

Neil McKenzie retires as batting consultant for the Tigers citing personal reasons

Reports suggest there is a strong possibility of Messi leaving Camp Nou

PROFESSIONAL DEVELOPMENT

Growth Rate Notations: QoQ, YoY, and Annualized QoQ

On July 30, news came out that the US 2Q 2020 GDP shrank at a record high of -32.9% since WWII, while a week earlier, China reported a +3.2% rebound for the same quarter. What caused the large difference?

It turns out that the US number, per convention, was reported on Annualized Quarter-over-Quarter (QoQ) basis. That is the quarterly change (QoQ, -9.5%) plus one to the fourth power minus one. Meanwhile, the Chinese data was Year-over-Year (YoY), i.e., 2Q20 GDP compared to the same period last year (2Q19).

So which notation is superior? It depends, but they are not apples to apples. YoY rate reflects what actually happened, but it is backward-looking and can be skewed by the yearly difference of holiday and weekend dates. Moreover, it does not account for the three quarters in between. In contrast, the Annualized Quarter-on-Quarter change is forward-looking. It asks, what would the YoY change be nine months later if the current growth rate compounds for the next three quarters?

Annualization is useful because GDP is almost always discussed on an annual basis, e.g., 2/3% for the US, 6/7% for China. However, if one believes the most recent quarterly change is no good proxy for what will happen in the next nine months, as in the case of 2Q20, annualization, unfortunately, bakes in a poor assumption.

KEEP IT SHARP

What's really easy to get into, but hard to get out of?

HERE'S SOMETHING INTERESTING

Located in a drought-vulnerable region of Maharashtra, the village of Ralegan Siddhi had been a desolate and poverty-stricken settlement for a long time. It had suffered from a booming liquor industry, droughts, and reduced productivity.

In 1975, however, a retired soldier named Anna Hazare initiated a six-point program that focused on eliminating the village's many issues. To do so, he established a village and youth assembly platform, enabling him to discuss and gain popular support for his initiative. He managed to inspire villagers en masse, encouraging them to work alongside him in various development initiatives. Through projects such as afforestation and water management, the village was able to turn itself around. Holding the principles of sustainable development and with the participation of villagers, Mr. Hazare successfully transformed Ralegan Siddhi into a flourishing village. It remains one of the few villages in India that have been able to overcome poverty and entirely rely on renewable energy.

OF ART AND ARTISTS

Emmen Ahmed is a Pakistani-American artist whose 'East meets West' Art is centralized around female portraits and imagery. Her intricate strokes draw inspiration from Bollywood, the Mughal era, and contemporary issues - you don’t want to miss out on her powerful statement-making art.

ANSWER

Trouble

“The only people who see the whole picture are the ones who step out of the frame.”

--- Salman Rushdie (Indian Novelist)

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