Pakistan's weight drops in latest MSCI review

Morning! We finally got the chance to catch the “Taylor Swift: The Eras Tour” movie in theaters. As we immersed ourselves in the cinematic experience, the sight of Taylor Swift in her sparkly shiny dress performing 'Love Story' took us back to our school days. But you know what made it better? Seeing young girls dancing and wearing equally sparkly clothes and not thinking about what juicy gossip in the AI realm would have possibly gotten Sam Altman fired (more on that later)…

In this week’s edition:

🦃 Thanksgiving just got cheaper

📉 From 3.2% to 2.9%

💔 Sam to OpenAI: We are done

💄 PSX’s digital makeover

- The Itla Squad 💼

Business

Global 🌎️

Bari Eid, time to follow suit?

Breaking the trend of soaring prices during special occasions, here's a pleasant surprise: For Americans, this year's Thanksgiving dinner is expected to be more budget-friendly, with the average cost for a meal for 10 people decreasing by 4.5% compared to last year, according to a survey by the American Farm Bureau Federation (AFBF). Can Thanksgiving please share notes with Bari Eid??

Turkey’s the real winner: The main star of the show – a 16-pound turkey – is down by 5.6%, costing an average of $27.35. And the good news doesn't stop there – the USDA says prices might drop even more.

Not the same everywhere: Depending on where you are, your Thanksgiving feast might cost a bit more or less. The Midwest is winning the affordability game with a total cost of $58.66, while the Northeast is on the pricier side at $64.38.

Not the same for everything: Not everything got cheaper this year. Some items like dinner rolls, sweet potatoes, pumpkin pie mix, and the veggie crew (carrots and celery) decided to up their prices a bit. However, the overall trend indicates a slight improvement in the cost of a Thanksgiving dinner.

Hold your celebrations: The survey results and analysis reflect the broader impact of pandemic-related inflation on food prices. While the Thanksgiving meal cost has seen fluctuations, the broader context of inflation, as indicated by the Consumer Price Index, shows a 3.3% increase in food prices from the same month a year ago. The report suggests that, despite general inflation, the Thanksgiving dinner might be relatively more affordable this year.

TLDR: This Thanksgiving, Americans’ average cost for a feast for 10 drops by 4.5%, defying the typical price surge during special occasions, according to the American Farm Bureau Federation. Turkey steals the show, down 5.6% to $27.35, and regional variations highlight the Midwest as the affordability champion. However, not all items follow suit, with some like dinner rolls and sweet potatoes hiking prices.

What else is new in news

✶The world needs more teachers - about 44 million primary and secondary teachers worldwide by 2030 as noted by The Global Report on Teachers, a collaboration between UNESCO and the International Task Force on Teachers for Education 2030.

Local 🇵🇰

From 3.2% to 2.9%

India wasn’t the only one whose dreams were slashed last week.

In a surprise move, Pakistan's weight in the MSCI Frontier Market Index was reduced from 3.2% to 2.9% during Morgan Stanley Capital International's (MSCI) semi-annual review. Contrary to expectations, this cut was not due to any issues with the Pakistan Stock Exchange's performance.

What was the reason? The reduction in weight was attributed to increases in the weight of other countries, including Vietnam, Romania, and Sri Lanka. This global adjustment might lead to a small withdrawal of foreign investment from Pakistan's stock market, as suggested by Topline Research.

Pakistan got downgraded back in 2021: The adjustments made by MSCI, including changes in weightage, will take effect from November 30, 2023. Pakistan was reclassified to MSCI Frontier Market from Emerging Market in November 2021 due to size and liquidity standards.

TLDR: Pakistan’s weight in the MSCI Frontier Market Index dropped from 3.2% to 2.9% during the semi-annual review by Morgan Stanley Capital International. Despite the Pakistan Stock Exchange performing well, this reduction was influenced by increases in other countries' weights, like Vietnam, Romania, and Sri Lanka. While not indicating issues with Pakistan's market, this adjustment might result in a slight foreign investment withdrawal.

News Flash

✶On Wednesday, the International Monetary Fund (IMF) revealed a staff-level agreement with Pakistan, after wrapping up the first review of their $3 billion bailout package. Pakistan promised to keep its hands off the currency market and stick to fiscal responsibility (we’ll see in coming editions how those promises will hold up).

Tech

Global 🌎️

Sam to OpenAI: We are never ever ever getting back together

Forget “Saas bhi kabhi bahu thi”, just look at the tech landscape over the weekend for some drama.

What’s up: Over the weekend, OpenAI, known for breakthroughs like ChatGPT and GPT-4, faced a major shakeup in leadership. Sam Altman, the former president of Y Combinator and CEO, was suddenly fired. Let's break down the drama that went down:

The drama: The firing happened suddenly, and the way it went down left everyone confused. The board, primarily accountable to shareholders, including major investor Microsoft, didn’t give prior notice, causing a dip in Microsoft's stock. Even co-founder Greg Brockman, was blindsided by the move, resulting in jumping the ship too.

Who will be leading OpenAI? The big shots investing in OpenAI, like Microsoft, were pretty pissed off about what went down including the global tech community. The board then tried to talk Altman and Brockman into getting back together with OpenAI, but they both said ‘No, thanks’. Instead, OpenAI chose to settle with Emmett Shear, the ex-CEO of Twitch, for now.

Moving too fast? Much like our friends who move on too fast and jump from one relationship after another, Microsoft announced after a few days that Sam and Brockman are joining Microsft “to lead a new advanced AI research team,”. Can someone please check up on OpenAI on how it’s doing? 💔 

The latest: More than 730 employees of OpenAI have signed a letter saying they may quit and join Sam Altman at Microsoft unless the startup’s board resigns and reappoints the ousted CEO.

The elephant in the room: Why was Sam fired? Apparently, the board was worried that Sam’s plans for the company were too ambitious and might result in global catastrophe. (Black mirror, much?). But the official document said that he “was not consistently candid in his communications with the board”.

TLDR: OpenAI faced a leadership shakeup as CEO Sam Altman was suddenly fired, causing a dip in Microsoft's stock. Co-founder Greg Brockman also left. Emmett Shear is now the interim CEO. Microsoft recruited Altman and Brockman for a new AI research team.

What else is new in news

✶Apple plans to adopt a messaging standard that will extend iMessage features to Android users, promoting cross-platform communication with read receipts, typing indicators, enhanced group chat support, and improved media sharing.

Local 🇵🇰 

PSX gets a digital makeover

Pakistan is introducing a cool new way for people to become online brokers. Imagine it like getting a license to help others buy and sell stocks, but all done digitally. This is a big deal because it opens up opportunities for new investors, including those who are into fancy tech stuff and startups.

Online-only broker license: There's this thing called the Online-Only Broker License. It's like a digital office for brokers. They can bring in customers, do trades, and help out—all online. This makes everything quicker and easier for everyone involved.

Who can join the party? If you're into tech and want to help people with their money, this is your chance! Even cool investor people like venture capitalists can join in. They can support new businesses and startups that want to get into the stock market game. Companies can do their entire business online—talking to customers, making deals, and even closing accounts.

Getting your license: To join the party, you need a special license. It's called a PSX Trading Right Entitlement Certificate. Just show you've got a bit of money saved up, and you're good to go. ( Oh, and there's a small fee of Rs 50,000 to get a license from the SECP).

Everyone's going digital: Lots of people are already doing things online. Over 80% of people opening accounts to buy and sell stocks are doing it through the internet. And 60% of them are from small cities.

TLDR: Pakistan is launching an Online-Only Broker License, allowing digital entry into stock trading. This virtual license opens doors for new investors, particularly in tech and startups, providing a streamlined online platform for brokers to conduct business efficiently. The initiative welcomes participation from venture capitalists and enables companies to manage their entire operations digitally.

Tech tour of news

✶SOSV, a venture capital firm, has supported five startups in Pakistan as the country's internet user base grows. The startups—Truckistan, BusCaro, Metamorph, Umrah Companions, and MedIQ Smart Healthcare—each received $180,000, with the potential for additional funding for future investments.

More interesting Itla (اطلاع) we consumed:

🎥 Money may not buy you happiness but it can surely buy you self-esteem.. or at least that’s what this Forbes article claims and calls it ‘financial self-esteem’. It’s a great article on how to improve it and get better at it.