February 8, 2024 — Balanced Report

Juno, a NASA spacecraft launched in 2011, is on a mission to discover the mysteries of Jupiter and its moons.
Juno was en way to Jupiter when it hit fast-moving dust particles, causing significant damage to its solar panels.

About NASA’s Juno Mission

	Description
Launch Year	2011
Mission Objective	Study Jupiter, the solar system’s largest planet, to learn about Earth’s creation and evolution.
Focus Areas	Investigate Jupiter’s atmospheric composition and isotope ratios.Examine Jupiter’s magnetic field and how it interacts with the atmosphere, resulting in aurora generation.Discover Jupiter’s structure, atmosphere, and interior to better comprehend early solar system circumstances.
Earth Insights	The Juno mission’s advanced sensors include the Microwave Radiometer, which detects air temperature and water content.Scientists can determine the similarities and differences in planetary origins by comparing Jupiter’s composition to that of Earth.Understanding Jupiter’s magnetic field and auroras helps us learn about Earth’s magnetic field and auroras.Jupiter’s structure offers insights into early solar system conditions and Earth’s evolutionary processes.

Dust in interplanetary space

Calculating Dust Flux: Scientists used Juno data to estimate the flux of dust particles encountered between 1 and 5 Astronomical Units (AU), providing insight into the density and distribution of interplanetary dust.
Exploring Dust Sources: Analysis revealed that Mars’ moons, Deimos and Phobos, could be sources of interplanetary dust, providing tantalising hints to the mysterious origins of these cosmic particles.

How do the Martian Moons, Deimos and Phobos make this dust?

Micrometeorite Impacts: Micrometeorites, tiny but powerful dust particles, attack Mars’ moons, causing ephemeral clouds of dust upon impact due to the lack of atmospheres.
Deimos and Phobos’ low gravity allow dust particles to escape into space, contributing to the development of a dusty ring around Mars.

Insights From Observations

Gravitational Dynamics: These models included gravitational influences, lunar shapes, and dust particle velocities, providing a thorough knowledge of dust dynamics in the Martian system.
Future trips to Deimos and Phobos have the potential to validate current findings and shed new light on the dusty expanses of these intriguing moons.

Source: https://www.jpl.nasa.gov/news/serendipitous-juno-detections-shatter-ideas-about-origin-of-zodiacal-light

India’s recent inclusion in JPMorgan’s developing market debt index represents a key milestone for the country’s financial markets.
However, this inclusion raises the prospect of erratic capital flows, particularly ‘hot money,’ which can put pressure on currency and bond markets.

What is ‘Hot Money’?

Definition: ‘Hot money’ refers to funds managed by investors seeking short-term gains. It refers to the movement of funds from one country to another in order to profit from short-term interest rate discrepancies.
Typical Investments: Investors frequently seek high-interest, short-term options, such as certificates of deposit (CDs).
Foreign portfolio investment (FPI): FPI is also known as “hot money” since it tends to flee when an economy experiences its first signs of turmoil.

The mechanics of ‘Hot Money’

To attract “hot money,” banks provide short-term CDs with higher-than-average interest rates.
When interest rates fluctuate, investors quickly withdraw funds and transfer them to institutions offering greater returns.
Cross-Border Movements: Investors may move funds between nations to take advantage of low interest rates.

Economic risks posed by Hot Money

Volatility: Hot money produces price swings that jeopardise market stability.
When speculative bubbles burst, their inflated asset prices cause market crashes.
Currency Depreciation: Large influxes of money can generate currency value swings, reducing export opportunities.
Interest Rate Volatility: Hot money flows may make it difficult for central banks to keep interest rates stable.
Financial Instability: Herd behaviour from hot money can trigger market panics.
Capital Flight: Short-term hot money outflows strain a country’s financial reserves.
Speculative attacks: Profit-driven investors target hot money inflows.
Macroeconomic Imbalances: Overreliance on hot money results in unsustainable economic patterns.

RBI’s Position

Monitoring Foreign Fund Flows: India will rigorously monitor foreign fund inflows to prevent an excessive influx of ‘hot money’.
Regulating Interest Rates: Interest rates will be managed to discourage short-term speculative investments.
Maintaining Financial Stability: Proactive efforts are intended to minimise excessive volatility in the currency and bond markets.

Source: https://m.economictimes.com/small-biz/sme-sector/interim-budget-2024-fishery-announcements-could-help-generate-more-employment-say-industry-stakeholders/articleshow/107319330.cms#:~:text=Sitharaman%20also%20talked%20about%20blue,activities%20for%20blue%20economy%202.0.