In this week's wrap-up, we simplify Hindenburg's allegations against Carvana, how Japan’s rate hikes could disrupt yen carry trades, examine whether Kerala’s state government lotteries are a boon or a bane in disguise, discuss green GDP and its relevance, and dive into why Indians are chasing gold exchange-traded funds.

And in this week’s markets edition, we give you a simple explainer of the ongoing SME IPO of Barflex Polyfilms Limited.

Click here to read the full markets story.

Now on to the recap of what we wrote over the week...

Carvana vs Hindenburg simplified

When you think of financial fraud, the image of billionaires fleeing with unpaid debts might pop into your head. But Carvana, a US-based e-commerce giant for used cars, has allegedly taken a different route.

According to Hindenburg Research, Carvana has been accused of questionable accounting practices and insider dealings. The report claims the company inflated its financial health, and its insiders cashed out billions during stock rallies, leaving investors and lenders to shoulder the fallout.

Intrigued? Dive into our Monday story for the full scoop.

How yen carry trades impact the markets

For years, Japan’s ultra-low interest rates fueled something called as the yen carry trade - cheap borrowing in yen to invest in higher-yielding assets worldwide. But now, Japan’s surprise rate hikes are shaking things up.

As the yen strengthens and borrowing costs rise, the once-profitable trade is unravelling. And it’s sending shockwaves through global markets. What does this mean for India? Could it lead to capital outflows or even new opportunities for exporters?

Our Tuesday story unpacks the ripple effects of Japan’s policy shift and why the world is watching the Yen carry trades like a game of musical chairs. 

Is Kerala’s lottery system a masterstroke by the government?

Would you shell out a couple of bucks for a lottery ticket that could turn you into a Crorepati overnight? 

Well, if your answer is yes, you are not alone. Millions of people in India buy lottery tickets to get rich. 

However, in Kerala, lotteries are carried out by the state government and guess what? There is a lottery directorate that regulates the entire system. It comes under the purview of the state’s finance ministry. To add to this, the government generates massive revenues from lottery sales. 

Isn’t this incredible? 

If you’re excited to know more, head over to our Wednesday newsletter. You’ll be amazed by the revenue and profit figures from Kerala’s lottery system!

The truth about modified Green GDP

Last week, Chhattisgarh made headlines as the first state to factor in the economic value of forests when calculating its Green GDP.

Now, if you’re wondering what Green GDP is, think of it as regular GDP but with a twist. It subtracts the cost of environmental damage and natural resource depletion.

But traditional Green GDP often gets criticised for making a country’s economic output seem weaker. That’s where a fresh approach comes in. By also considering nature’s contributions, like the benefits of forests, we could fix this flaw and paint a balanced picture.

But does it really make sense?

Find out in Thursday’s newsletter here.

What’s cooking with Gold ETFs in India?

Gold has always been a trusted investment, but now Indians are flocking to Gold exchange-traded funds (ETFs). With tax-friendly policies, solid returns, and no need for vaults, these digital gold units are shining brighter than ever.

But are they as perfect as they seem? From liquidity issues to tracking errors, Gold ETFs have their quirks, too. So, how do you strike the right balance in your portfolio?

We break it all down in our Friday's story.

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That’s it from us this week. Have a great weekend!

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