Modi win makes India stock market story more exciting than ever: Chris Wood

Economy News

The re-election of Narendra Modi as India’s Prime Minister for the second consecutive term with a thumping majority is a positive and the government should now focus on economic development and reforms to create jobs over the next five years, says Christopher Wood, global head of equity strategy at Jefferies.
“With ten years in power he now has the time to change the country in a fundamental way, which makes the Indian stock market story more exciting than ever. Speaking of the stock market it, naturally, greeted the landslide with initial euphoria which is also good for GREED & fear’s Asia ex-Japan long-only portfolio which continues to have a 49 per cent weighting in India,” Wood wrote in his weekly note to investors, GREED & fear.
Wood still maintains his 'double overweight' rating on India in his Asia Pacific ex-Japan relative-return portfolio despite the sharp rally seen over the past few weeks and plans to add to his position on any decline. That said, he does caution against the expensive valuations, at a time when the earnings are also being downgraded again given the lack of cyclical momentum in the economy.
“The FY20-21E earnings estimates of the Indian office of GREED & fear’s new home are 5 – 6 per cent lower for the Nifty Index since the start of 2019 with valuations at a one-year forward PE of over 18x, compared with a 10-year average of 16x,” he says.

 Indian markets have been one of the best performing in the global context thus far in calendar year 2019 (CY19), with the S&P BSE Sensex rallying nearly 11 per cent. The mid-and small-cap indices, however, have been laggards. While the S&P BSE Mid-cap index slipped around 2.5 per cent during this period, the S&P BSE Small-cap index has gained a modest 2 per cent, data from ACE Equity shows.

US suspension of trade programme with India 'a done deal', says US official

Economy News

The suspension of a U.S. trade preference program with India is a "done deal," a senior State Department official said on Thursday as Prime Minister Narendra Modi began his second term.
President Donald Trump announced in March he would end India's access to the decades-old Generalized System of Preferences (GSP) trade program over what the U.S. said was lack of access to India's market. The program allows emerging countries to export goods to the United States without paying duties.U.S. law requires the administration to wait 60 days after it notifies Congress of the move before it formally ends India's participation in the program. Trump notified Congress of the move in early March.

"There is every reason to believe that GSP suspension will move forward," the official told reporters, speaking on condition of anonymity. "What is important is that the interest is to resolve trade irritants - to ensure fair and equitable market access," the official added.But the official said the benefits could be restored if India gave U.S. companies fair and equitable access to its markets.
"We need to be looking forward at how we relaunch an ambitious set of discussions between our trade teams in order to address these outstanding irritants," the official said."We believe if India is prepared to address policies, including data localization, e-commerce measures that served to stifle international investment for top-tier companies, that we can continue to make significant progress moving forward," the official added.


India is the world's largest beneficiary of GSP, which dates from the 1970s, and ending its participation would not only be the strongest punitive action against the country since Trump took office, but would also open a new front in the global trade war.Twenty-four U.S. members of Congress sent the administration a letter on May 3 urging it not to terminate India's access to the GSP.(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Employee base is biggest cause of moderation in biz sentiment: Report

Economy News

The sentiment among micro and small enterprises (MSEs) got subdued in the March quarter, the sixth CriSidEx survey has shown. The CriSidEx score for January-March 2019 (Q4FY19) was 122, improving only by a unit, from 121 in Q4FY18.
These findings are in consonance with a moderation in several high frequency indicators, including the index of industrial production and rural consumption, observed in the first half of calendar year 2019.
Negative sentiment grew in terms of employee base in both manufacturing and services sectors, the report said. Positive sentiment rose in terms of order books size and profit margins year on year, it added.
However, this is likely to change, with 18 per cent respondents planning to add employees in the next quarter compared with 11 per cent in the previous one, said the report, released jointly by CRISIL and Small Industries Development Bank of India (Sidbi).
Services started from a lower base saw sentiment grow fast in FY19, and converged with manufacturing that saw ups and downs in positive sentiment in Q4, authors of the report told Business Standard.

 “MSEs operating in the leather, chemicals, pharma, IT/ITeS, and human resources segments reported a noticeable increase in positive sentiment, while those into gems & jewellery, textiles, auto components, and health care had a relatively subdued outing,” Mohammad Mustafa, chairman and managing director, Sidbi, said in a release.

Climate change is causing mass 'die-offs' in seabirds such as puffins

International News

Changes in seabird numbers are probably the best way to monitor the quality of the marine environment. And things are looking bad. In the past 50 years, the world population of marine birds has more than halved. What’s worse is that few people have noticed.
Puffins, guillemots, penguins and albatrosses are all in decline. How do we know this? There are three main ways of checking on numbers. First and best are long-term population studies: counts of individuals or pairs at their breeding colonies made in a systematic, rigorous way each year at established “study plots”. For instance, I have studied the same population of guillemots on Skomer Island in Wales since 1972. Consistent, careful methodology is the key here, but it is labour intensive.
Second, are one-off counts made every ten years or so over larger areas. This has occurred in the UK, starting with the census known as “Operation Seafarer” in 1969-70, and with the most recent survey last year. This method provides estimates of the size of the overall population of different species but is less good at detecting small changes in numbers.
The third way is by counting the bodies of seabirds washed up on the shoreline – usually referred to as beached bird surveys. Regular, systematic counts along set lengths of shoreline provide background levels of mortality. Occasionally, numbers spike in what in seabird parlance is known as a “wreck”, as occurred in 2014 when more than 50,000 seabirds, mainly guillemots and puffins, were washed up on the west coast of Britain and France.
Seabird wrecks have been known about for a long time, but they are becoming more common. Wrecked seabirds are usually emaciated,

 having usually starved to death, indicating a catastrophic failure in their food supply.

Glycine from India, China hurting US biz, anti-dumping duty to be issued

International News

Import of glycine from India, China and Japan is hurting the US industry as the product is sold at less than fair value in America, a federal trade body has claimed.
The United States International Trade Commission (USITC) said it had determined the US industry was materially injured by imports of glycine from India and Japan.
It also determined that glycine was sold in the US at less than fair value and imports that are subsidised by the governments of China and India.
As a result of the USITC's affirmative determinations, US Department of Commerce will issue antidumping duty orders on imports of this product from India and Japan and countervailing duty orders on imports of it from China and India, an official statement said on Wednesday.
USUITC Chairman David Johanson and Commissioners Irving Williamson, Meredith Broadbent, Rhonda Schmidtlein and Jason Kearns voted in the affirmative, according to an official statement.
US import of glycine from China, India, and Japan in 2017 was valued USD 18.6 million. Its import from Thailand was USD 4.6 million and from all other sources was USD 480,000.China, India, Japan and Thailand are the leading source of import of glycine.

 Glycine, also known as aminoacetic acid, is a nonessential amino acid. The organic chemical is produced naturally by humans and other organisms as a building block for proteins.Commercial production of glycine uses traditional chemical synthesis. Glycine is commonly sold in its dry form as a white, free flowing powder.Available in various grades, glycine is used in industrial applications, as well as pharmaceutical and food applications.

US diplomat to visit India next week to strengthen bilateral defence ties

International News
A senior American diplomat will visit India next week for talks on strengthening bilateral defense ties, including maritime security, and supporting New Delhi's role as a "Major Defense Partner", the State Department has said.
Assistant Secretary of State for Political-Military Affairs Clarke Cooper will travels to Singapore, India and Sri Lanka from May 29 to June 7.
In New Delhi, after attending the Shangri-La Dialogue from May 31 to June 2, Cooper will hold talks on defense cooperation and peacekeeping, two key areas of the rapidly growing US-India partnership as envisioned in the Trump administration's Indo-Pacific Strategy.
"US-India bilateral defense trade has risen from virtually zero in 2008 to USD 15 billion today. Talks will focus on supporting India's role as a Major Defense Partner, expanding our security cooperation, and furthering opportunities for American industry," the State Department said on Wednesday.
In Sri Lanka, Cooper will meet with government officials and think tank experts to discuss security, peacekeeping, clearance of landmines and unexploded ordnance, counterterrorism and other areas of mutual interest.
In Singapore, Cooper will join Under Secretary of State for Arms Control and International Security Andrea L Thompson on a delegation of senior US officials led by Acting Secretary of Defense Patrick M Shanahan for the Shangri-La Dialogue, a forum for exchanges among defense and security policy professionals from across the Indo-Pacific region.

Cooper will also meet with senior civilian and military officials from countries around the globe to discuss US partnerships in regional security, maritime security and defense trade efforts that contribute to a free, open and inclusive Indo-Pacific region.

Legislation to protect work authorisation of spouses of H-1B visa holders?

International News

Two influential lawmakers from California have introduced a legislation in the US House of Representatives to protect work authorisation of H-4 visa workers, a significant number of whom are Indian-American women.
The introduction of such a legislation comes days after the Department of Homeland Security (DHS) said that it would publish this month the long-promised regulation that would prevent the work authorisation to spouses on H-4 visas.
H-4 visas are issued to the spouses of H-1B visa holders, a significantly large number of whom are high-skilled professionals from India.
This week, the Trump administration announced plans to overturn the current DHS regulations that allow certain H-4 dependent spouses of H-1B visa holders who are stuck in green card backlogs to obtain employment authorisation, pursue their own professional goals and contribute to the US economy, said the lawmakers Anna G Eshoo and Zoe Lofgren.
Many H-4 visa holders are highly skilled professionals, and the DHS previously extended eligibility for employment authorisation to them recognising the economic burdens of families of many H-1B workers, particularly those who live in high cost areas like Silicon Valley on a single income as they await green card approvals, they said.
Since the rule was implemented, over 100,000 workers, mainly women, have received employment authorisation, and the H-4 Employment Protection Act prohibits the Trump administration from revoking this important rule.

 "H-4 visa holders deserve a chance to contribute to their local economies and provide for their families," Eshoo said."This is a matter of economic fairness and this legislation ensures it will continue," she added.

Huwaei to ask US court to throw out federal ban; term it 'unconstitutional'

Economy News

Huawei said Wednesday the tech giant will ask a US court to throw out US legislation that bars federal agencies from buying its products.The company was due to file the motion for summary judgment on Tuesday (Wednesday in China), said Song Liuping, the firm's legal officer, in a statement carried by Chinese state broadcaster CCTV.
"The bill directly determines that Huawei is guilty and imposed a large number of restrictions on Huawei," Song was quoted as saying.The tech giant filed suit against the US bill in March, saying at the time that the US Congress had failed to provide evidence to support its restrictions on Huawei products.
A motion for summary judgment aims to seek a judge's decision without going to a full trial."It is hoped that the US courts will declare the Huawei ban unconstitutional and prohibit its enforcement," said Song.
The court case comes as Huawei also faces a broader US executive order preventing the use of its equipment in the United States and a more damaging US action to blacklist the company, cutting it off from critical American-made components for its products, though a 90-day reprieve was issued.
Washington has warned that Huawei systems could be manipulated by Beijing to spy on other countries and disrupt critical communications, and is urging nations to shun the company in 5G networks.

 The concerns have escalated as Huawei has risen to become the world leader in telecom networking equipment and one of the top smartphone manufacturers alongside Samsung and Apple.The firm's proactive battles in US courts signal it is willing to use all means, including national courts, to prevent exclusion from a race to the 5G market -- the future of high-speed telecommunications.

How emerging markets will eventually be a victim of US-China trade war

International News

US measures to confront China on trade are shifting from tariffs to imposing restrictions on the activities of Chinese firms, which will have adverse consequences not only for the yuan but emerging markets overall.
With China accounting for 40% of the gross domestic product in developing economies, investors should expect the yuan’s recent weakness to accelerate as Chinese savers seek to hedge their risk by switching to dollar-denominated investments. Despite efforts by the central bank to stem the fall, the currency is likely to depreciate beyond the closely watched threshold of 7 per dollar at which the currency last traded in April 2007. This would have adverse implications for both China’s debt as well as the economy’s rate of growth.
Negative Trends
It's taking more yuan to buy $1, and China's stocks are sufferingWith total dollar-denominated debt of Chinese companies rising in recent years, also expect defaults to surge in response to a weakening yuan. Particularly affected would be companies in the property sector, which owe debt denominated in dollars but cater to Chinese tenants and buyers who pay in yuan. Defaults tend to have a domino effect because lenders to property developers, in turn, would be unable to service obligations to savers from which they get their funds.
Chinese local-currency obligations accounted for 6% of the Bloomberg Barclays Global Aggregate Index as of April, and the share will increase in coming months. When the phase-in is completed, Chinese debt will form the fourth-largest component in the index after the dollar, euro and yen, according to Bloomberg. Expect trade tensions and the fallout on other emerging-market debt to push the index lower in coming months.Missing Out,Concern about rising defaults its causing China's bond market to show losses

On the equity front, China was included in various MSCI indexes last year. The share of China in the MSCI Emerging Market Index is forecast to more than triple from less than 1% at initiation to about 3.3% by the end of 2019. Passive investors using such indexes for exposure to emerging markets will find that other developing economies cannot make up for losses they incur in Chinese equities.

US says N Korea program in conflict with UN resolutions, after Trump tweet

International News

The US State Department has on Tuesday said that North Korea's overall program of weapons of mass destruction violated UN resolutions, after President Donald Trump brushed off recent missile launches.

Choosing words carefully after Trump's latest warm words for North Korean leader Kim Jong Un, State Department spokeswoman Morgan Ortagus declined to say if North Korea's launches were of ballistic missiles or constituted weapons of mass destruction (WMD).

"I think the entire North Korean WMD program, it's in conflict with the UN Security (Council) resolutions," Ortagus told reporters on Tuesday.

She said the United States wanted a favorable relationship between Trump and Kim with a goal to "negotiate a peaceful end to the North Korean WMD program." "We have said many times and we will continue to reiterate that the economic sanctions will remain in place until we're there," she said.
When he arrived in Japan for a weekend state visit, Trump tweeted that North Korea had tested "some small weapons" that had "disturbed some of my people, and others, but not me." He appeared to be referring to his National Security Advisor John Bolton, who said Saturday there was "no doubt" that North Korea's launches had contravened United Nations Security Council resolutions.


 North Korea wasted no time piling onto Bolton, who has long promoted a hawkish foreign policy, calling him a "human defect" and "war maniac." North Korea has previously called for Secretary of State Mike Pompeo to be excluded from negotiations after he apparently pressed Trump at his February summit with Kim in Hanoi not to accept sanctions relief without further action by Pyongyang in ending its nuclear program.

Concessional income tax rate in traders' list of demands for Modi govt

Economy News

After successfully campaigning for Prime Minister Narendra Modi in the Lok Sabha elections, the more than 60-million traders’ community is ready with its list of demands, including a concessional income tax rate, for the new government.

Seeking a meeting with Modi, trade leader Praveen Khandelwal said they would apprise him of core issues merchants faced and ask for promises be fulfilled in the next six months.

Apart from this, there are a few other demands.

The BJP, in a bid to woo traders, made promises in its manifesto, such as a pension scheme for shopkeepers and a merchant credit card on the lines of the Kisan credit card.

“We will remind the government of all the promises. We will press for a quick implementation of these schemes by including them in the upcoming Finance Bill in July,” said Khandelwal, secretary general, Confederation of All India Traders (CAIT).

In addition, Khandelwal said they would seek a concessional income-tax rate for traders. “Being the unsaid collector of taxes for the government, we will seek a special income tax rate for trading community. There is merit in our demand,” he added.

The CAIT had declared support for the BJP and its allies in the Lok Sabha election. It said the decision was taken after analysing the election manifestos of political parties. Besides, the CAIT will press for a single licence for traders.

“Currently, traders require many licences. There should be a single licence,” he said.

Why Narendra Modi should resist the urge to be India's Xi Jinping

Economy News

At the time of his first bid to become India’s prime minister five years ago, Narendra Modi was seen by many in Mumbai as a reformer rising to slay crony capitalism, corruption and policy paralysis. It was the bureaucracy in New Delhi that had misgivings about the then chief minister of Gujarat state, known for his highly centralized style of working.

By now, the political capital has accepted Modi as the boss man. By contrast, the financial capital of Mumbai is anxious about further centralization of power. He’s already being referred to as India’s Xi Jinping. Given the difficulties that have beset China’s private sector under the president’s muscular leadership, that comparison isn’t exactly flattering

Mumbai’s trepidation, based on my recent conversations, arises from not knowing whether Modi will double down on his strongman image and chest-thumping nationalism in his second term, or give India’s institutions the freedom to tackle the economy’s central challenge: a lack of risk capital. In 2014, it was only the balance sheets of the banking system and some large business groups that were toast. Now the problem has spread to smaller companies, shadow banks, and property developers. Even consumers are being singed by debt as income growth in rural areas slows. Private investment turned anemic long ago.

Addressing this challenge will require Modi to acknowledge a simple truth: Countering economic worries with propaganda, jingoism and dubious GDP statistics will have diminishing returns. India’s “mini-Lehman moment,” as I’ve called it since September, is still reverberating. The solution is simple. Let entrenched business families fend for themselves. Don’t give them new contracts or sweetheart deals, or let them hold on to bankrupt firms. That should be done not out of moral compunction but because local businessmen or financiers can’t save the economy. Only North American, European, Australian and East Asian money can.

After Modi’s 2014 election victory, he did make an overture to foreign investors. But his finance minister, Arun Jaitley, didn’t keep the promise of making India’s tax regime more predictable and less adversarial. In the name of protecting mom-and-pop retailers and the sovereignty of Indian consumers’ data, the e-commerce policy now appears to favor tycoon Mukesh Ambani over Amazon.comInc.’s Jeff Bezos. Protectionism has gone up. The Donald Trump administration is far from amused.It’s not too late. Unlike in 2014, institutional structures now exist for large-scale asset monetization.

Kerala govt to impose 1% flood cess from June 1 for rehabilitation work

Economy News

The Kerala government will impose a cess of up to one per cent on inter-state movement of goods and services to final customers from June to provide relief and rehabilitation to those affected by flood in the state last year.

There will be no cess on goods drawing 2.5 per cent state GST, which includes essential items such as branded wheat, edible oil etc, according to a notification issued by the Kerala government. These items attract total five per cent GST, broken up into 2.5 per cent SGST and CGST each.

However, services attracting 2.5 per cent SGST such as economy air travel will attract one per cent cess. All other goods and services drawing 6, 9 and 14 per cent SGST would attract one per cent cess. Also, gold and silver on which 1.5 per cent SGST is there, would attract 0.25 per cent of cess.

There will be no input tax credit on the cess.Abhishek Jain, partner at EY, said, “With this cess, companies with presence in Kerala would need to quickly plan and gear their pricing, ERP system, business processes to factor and alighn it with this new levy.”

The CPI(M)-led LDF government had announced the “flood cess” announced in the state budget in February to mobilise additional revenue. The state has projected around 24 per cent increase in revenues from GST to Rs 65784.60 crore in 2019–20 against Rs 53110.58 in the revised estimates of the previous year.

Unlike other tax announcements, this cess was not effective from April one. Earlier, the issue of flood cess was discussed at a panel constituted by the GST Council. After its recommendations, the Council allowed Kerala to levy up to additional 1 per cent calamity cess under the GST regime for two years

Kerala is the first state to announce the flood cess.

Bengaluru, Gurgaon among top 5 locations in APAC for tech firms: Report

Economy News

Bengaluru and Gurugram are among the top 5 preferred destinations in Asia Pacific to set up offices by technology companies because of better business conditions as well as availability of engineers and real estate for growth, according to a report.

The report by property consultant CBRE said technology companies continue to fuel office demand in the APAC region, despite absence of any principal city or cluster of the same status as Silicon Valley. Technology sector accounted for 23 per cent of total leasing activity in 2018.The study has ranked 15 cities of Asia Pacific in three categories based on their performance with regard to business conditions, innovation environment, and cost and availability.

Business conditions and innovation environment were each given a weightage of 40 per cent while cost, a relatively less important consideration for tech firms, was given 20 per cent weightage.
"Leading cities are Beijing, Bengaluru, Shanghai, Singapore and Gurugram. These cities score highly in terms of business conditions and innovation environment, as well as providing costs and availability that are supportive for business growth," the report said.

These cities are preferred destinations for a wide range of traditional and new tech companies seeking to establish a base of operations in Asia Pacific.


 Hyderabad figures in the list of five competent cities along with Hangzhou, Shenzhen, Tokyo and Seoul. These cities already host tech industry sub-sectors and demonstrate solid performance across most categories.Five 'supplement cities' are Hong Kong, Hsinchu, Sydney, Taipei and Auckland. These cities rate favourably on certain important aspects, but their most appropriate role is to serve as host for specific functions to complement larger hubs elsewhere in the region.

Narendra Modi's thumping election victory is dividing analysts on rupee

Economy News

One of the biggest challenges facing Indian Prime Minister Narendra Modi as he begins his second term is ensuring clean air in a country that’s home to some of the most polluted cities in the world.
The country is burning up more coal to supply cheap electricity to its 1.3 billion people, resulting in polluted air across vast stretches. That’s costing lives and denting the nation’s economic productivity, prompting a policy rethink. Air pollution and how political parties plan to tackle it figured in their manifestos for the first time in national elections that ended May 23.
Efforts in the past to clean up the environment have struggled to clear the test of affordability. India’s fleet of coal-burning power plants, among the biggest sources of air pollution and a dominant provider of cheap energy, have dragged their feet over implementing emission standards, citing cost. A campaign to replace firewood with clean cooking fuel in rural homes needs to be affordable to have greater adoption.A look at what the Modi administration needs to do:
Strengthen the electricity distribution companies. Rejuvenating the power retailers will be crucial for transitioning to cleaner, although costlier electricity. Their losses rose from April to December, reversing a declining trend. Efforts to revive them during Modi’s first term have met with some progress but haven’t been completely successful.
Ensure timely implementation of emissions norms for thermal power plants. One of the reasons this process has moved slowly is a possible reluctance by lenders to finance retrofits in a sector already stressed with a mountain of bad debt. Fixing the money-losing power retailers would be key to resolving the bad loan mess.
Bring fuels, such as natural gas, under the national sales tax regime, helping them compete with dirtier options, such as coal and petcoke. Boosting local production of gas will make it more affordable and help raise its share in the mix to 15%, more than double from now.Accelerate capacity addition in renewable energy, while enabling the grid to deal with the rising flow of intermittent power.Increase use of biomass for energy to help reduce the dependence on crude oil imports and prevent burning of crop residue, a leading air polluter in northern India

Clean air: One of the biggest challenges for PM Modi in second term

Economy News

One of the biggest challenges facing Indian Prime Minister Narendra Modi as he begins his second term is ensuring clean air in a country that’s home to some of the most polluted cities in the world.
The country is burning up more coal to supply cheap electricity to its 1.3 billion people, resulting in polluted air across vast stretches. That’s costing lives and denting the nation’s economic productivity, prompting a policy rethink. Air pollution and how political parties plan to tackle it figured in their manifestos for the first time in national elections that ended May 23.
Efforts in the past to clean up the environment have struggled to clear the test of affordability. India’s fleet of coal-burning power plants, among the biggest sources of air pollution and a dominant provider of cheap energy, have dragged their feet over implementing emission standards, citing cost. A campaign to replace firewood with clean cooking fuel in rural homes needs to be affordable to have greater adoption.A look at what the Modi administration needs to do:
Strengthen the electricity distribution companies. Rejuvenating the power retailers will be crucial for transitioning to cleaner, although costlier electricity. Their losses rose from April to December, reversing a declining trend. Efforts to revive them during Modi’s first term have met with some progress but haven’t been completely successful.
Ensure timely implementation of emissions norms for thermal power plants. One of the reasons this process has moved slowly is a possible reluctance by lenders to finance retrofits in a sector already stressed with a mountain of bad debt. Fixing the money-losing power retailers would be key to resolving the bad loan mess.

Bring fuels, such as natural gas, under the national sales tax regime, helping them compete with dirtier options, such as coal and petcoke. Boosting local production of gas will make it more affordable and help raise its share in the mix to 15%, more than double from now.Accelerate capacity addition in renewable energy, while enabling the grid to deal with the rising flow of intermittent power.Increase use of biomass for energy to help reduce the dependence on crude oil imports and prevent burning of crop residue, a leading air polluter in northern India

Modi govt needs to review manufacturing, private sector investment

Economy News

Voters have reaffirmed faith in the leadership of Narendra Modi. His Bharatiya Janata Party (BJP) won an absolute majority on its own in the Lok Sabha. So, a stable regime will govern the country through the next few years.
The main task before the next government must be to revive the economy. Modi campaigned on the issue of national security, which cannot be ensured without a strong economy. It is now evident that domestic consumption is slowing and farm distress is real. The manufacturing sector is not growing rapidly and export growth has been tepid for five years.
Private sector investment, especially in new manufacturing projects, has been uninspiring. Corporate earnings have been rather weak, although the stock markets are booming. The flow of foreign money into equity markets has strengthened the rupee. The global trading environment is not too encouraging.
For reviving of export growth, given the context and challenges, the new government must first restore the commerce ministry’s primacy in making the new Foreign Trade Policy (FTP). In the run-up to introduction of the Goods and Services Tax (GST) and during its implementation, this ministry was completely ignored. The finance ministry focused mainly on securing consensus in the GST Council and then on re-working of the laws to address the problems thrown up during implementation. The representations of exporters were initially dismissed summarily and later heard partially. Untold misery was inflicted on a large number of exporters by the finance ministry. An ineffective and voiceless commerce ministry was a spectator.

 Now, the latter should not hesitate to take responsibility for export promotion. It should look at the opportunities the US-China trade war throws up and strive to make peace with the United States on trade issues.

Modi's second term to lay groundwork for India's next 25 years: US expert

International News

Congratulating Prime Minister Narendra Modi on his election victory, a top American corporate leader has asserted that in the next five years, the PM will lay the groundwork for India's economic growth and prosperity for the next quarter century.
Prime Minister Narendra Modi on Thursday led his Bharatiya Janata Party to a super-sized victory for a second term in office, winning an absolute majority and on course to touch the 300-seat mark in the 543-member Lok Sabha."Congratulations to Prime Minister Narendra Modi on a decisive election victory. These next five years of Prime Minister Modi's leadership will lay the groundwork for the next 25 years in terms of economic growth and prosperity for the country," John Chambers, Chairman of the Board of Directors at US India Strategic and Partnership Forum (USISPF), said.
Chambers said under Modi's leadership, India will be able to increase its GDP and see economic growth and job-creation, and improve trade and foreign investment.
"The future is bright for India and we at the US-India Strategic Partnership Forum look forward to boosting ties between the two countries like never before," Chambers said, reflecting the views of the American corporate sector, which is increasingly looking at India as an alternative to China when it comes to their manufacturing base.

 Three-term Indian American Congressman Dr Ami Bera issued a statement congratulating the citizens of the country who participated in the elections over the past five weeks."These were the largest democratic elections ever and reflected India's commitment to its founding ideals. I also congratulate Prime Minister Modi on his victory and look forward to working with him and his government to advance the values and interests that bind our two nations," he said.

Tral encounter: Al Qaeda affiliate Zakir Musa killed, curfew in Kashmir

Current Affairs

Curfew was imposed in parts of Kashmir on Friday, a day after Zakir Musa, the so-called chief of a group affiliated to the Al-Qaeda, was believed to have been killed in an encounter with security forces in Tral.
Educational institutions have been closed and curfew was imposed in places in Kashmir as a precautionary measure, following the Thursday incident, officials said.Internet was also shutdown, they said.
Musa, who is believed to have been killed in the gunfight with security forces, was the so-called head of the Ansar Ghazwat-ul-Hind.
Two terrorists were killed in the encounter in a village south Kashmir's Tral area but there was no confirmation about their identities.
However, Musa's family confirmed that he was present at the site.
Spontaneous protests had broken out in Shopian, Pulwama, Awantipora and downtown Srinagar, with people raising slogans in favour of Musa.
Senior police officials had said security forces had launched a cordon and search operation at Dadsara village and when the terrorists tried to escape, a gunfight broke out.
They had said efforts were made to make them surrender but the request fell on deaf ears and the holed up terrorists started lobbing grenades using a launcher.The officials had said more security forces were rushed to the area to prevent the terrorists from escaping under the cover of darkness.
On Thursday, the Jammu and Kashmir Police announced restrictions in some areas of Pulwama, Awantipora, Srinagar, Anantnag and Budgam as a precautionary measure.

 The officials said the decision was made keeping in view the Friday prayer gatherings.

Isro's new commercial arm NewSpace India officially inaugurated

Current Affairs

NewSpace India Limited (NSIL), the commercial arm of Indian Space Research Organisation (Isro), was officially inaugurated in Bengaluru on Thursday. NSIL's main objective is to scale up industry participation in Indian space programmes.

NSIL was inaugurated by Isro's honorary adviser, Dr K Kasturirangan in the presence of chairman Dr K Sivan.

NSIL was incorporated on March 6 2019, for commercially utilising research and development activities carried out by ISRO in the area of space with an authorised share capital of Rs 100 crore and initial paid up capital of Rs 10 crore.

NSIL will act as an aggregator for all space related activities in industry and develop private entrepreneurship in space related technologies.

Specifically, it will be responsible for manufacturing the and production of Small Satellite Launch Vehicle (SSLV) and Polar Satellite Launch Vehicle (PSLV) through technology transfer mechanisms. It will also cater to emerging global commercial SSLV market demand, providing satellite building and satellite-based services, including supply of sub-systems for various domestic and international application needs and will enable space technology spin-offs through Indian industry interface.

 NSIL would soon be organising an interaction workshop with industry in Bengaluru, wherein it would seek industry’s feedback as well as their expression of interest to take a newer and larger share of work with ISRO.

Trade tensions are starting to pull foreign-exchange markets into the arena

International News
Trade tensions between the US and China are starting to pull foreign-exchange markets into the arena. Yet far from embracing their currencies as a weapon, many countries are being forced to take a defensive posture against the almighty dollar.

Central banks seem more intent on keeping their currencies steady and stopping money from escaping rather than engaging in devaluations to boost their competitiveness in trade. Officials in China, South Korea and Indonesia on Wednesday were among those taking steps to buoy their currencies as the prospect of more rapid depreciation raised the specter of capital outflows.

In the meantime, the standoff between the world’s two largest economies is pushing uneasy investors into the greenback and US policy makers may face problems if the stronger dollar -- which is currently near its highs for the year -- is seen as crimping their efforts to promote higher inflation.

The forces roiling currencies are magnifying the focus on China and how it will handle a cheapening yuan. Options traders are pricing in around a 35% chance that the renminbi will by year-end weaken past 7 per dollar -- a level unseen since the financial crisis. At the end of March, the probability was just 15%. That kind of depreciation would threaten to heighten tensions with the US and potentially drive emerging-market currencies broadly lower.

“The outcome of the trade war should be to bid the dollar, drain emerging-market foreign reserves,” and push investors into Treasuries, said Sebastien Galy, senior macro strategist at Nordea Investment Funds. “At the end of the day, there is only one winner, the dollar.”


 Markets have been buffeted by uncertainty as the trade impasse shows no sign of abating...Read More

In middle of trade war, America's largest port gets ready for robots

International News

Pier 400 in Los Angeles is North America’s largest shipping terminal. More than 1,700 trucks pass through, on average per day, even in the middle of the U.S.-China trade war. All that cargo translates into thousands of miles driven within the facility each day, mostly by diesel vehicles, spewing pollutants.
For APM Terminals, the part of global shipping company A.P. Moller-Maersk A/S that runs the Los Angeles terminal, the future of cargo handling looks like the future of driving: electric motors replacing gasoline engines, autonomous software replacing human workers. The company says the changes are necessary to meet California rules requiring container terminals to reach zero emissions by 2030 and to keep business from leaving for other coasts.
The Los Angeles terminal has already ordered an electric, automated carrier from Finnish manufacturer Kalmar, part of the Cargotec Corp., that can fulfill the functions of three kinds of manned diesel vehicles: a crane, top-loader and truck. With enough of those, APMT could eliminate 65,000 miles driven daily by diesel trucks and cranes.
There would be fallout, though. The move to a robotic, emission-free operation may cut the need for workers such as Anthony Armijo, a part-timer who has spent 15 years picking up leftover dock shifts. “I just don’t understand what we’re going to be doing in the future,” he said. “I’m an American citizen. You would think they would have a way for us to make a living.”

 The International Longshore and Warehouse Union, which represents dockworkers across the West Coast, has gathered support from local, state and federal politicians for its effort to prevent the municipal board running the port from letting the company proceed with its plans. Los Angeles Mayor Eric Garcetti, who has set his own emissions targets as part of his Green New Deal, is brokering negotiations for a deal this month.

Election result LIVE: BJP leading in 277 seats, crosses half-way mark

LIVE Election results 2019:

Counting of votes to decide the fate of 8,049 candidates is underway. Going by the early leads, Prime Minister Narendra Modi's BJP has crossed the halfway mark on its own.

The NDA is ahead in more than 300 seats. The BJP is doing well in most states, including the three heartland states of Rajasthan, Madhya Pradesh and Chhattisgarh, wrested by the Congress in December. It is also ahead in Karnataka and Delhi. The Congress is ahead in Punjab and Tamil Nadu, where it joined hands with the DMK.

Congress president Rahul Gandhi is trailing in Amethi, a seat Congress has not lost in the last three decades, except in 1998. It will be a huge boost for the BJP if its candidate Smriti Irani registers a win against the Congress chief. Gandhi is also contesting from Kerala's Wayanand, where he is leading.

Elections were held on 542 of the 543 Lok Sabha seats and a party or alliance needs 272 seats to form government.

Counting underway


 Five days after exit polls predicted Prime Minister Narendra Modi's Bharatiya Janata Party (BJP) government would retain power at the Centre but Opposition parties rejected the findings

Major boost for Pak Air Force as China delivers first overhauled JF-17 jet

Current Affairs

In a major boost for the Pakistan Air Force (PAF), China has delivered the first overhauled multi-role JF-17 fighter jet to Islamabad as part of a project undertaken by the two countries over a decade ago for the development and manufacture of the aircraft.

China and Pakistan had begun joint development and manufacture of the single-engine light JF-17 jets over a decade ago. Beijing delivered the first batch in 2007 and a number of them were later commissioned by the PAF, state-run Global Times reported on Wednesday.

After a decade of use, it was time for the first JF-17s to undergo overhauls, the report quoted military analysts as saying, adding that the first overhaul started in November 2017 after a contract was signed between the two sides in 2016.

Changsha 5712 Aircraft Industry Co Ltd under the state-owned Aviation Industry Corporation of China (AVIC) reassembled the jet and delivered it to its Pakistani client in March, the daily quoted a report by China Aviation News.

This is also the first time AVIC has overhauled a made-for-export third generation fighter, or fourth generation according to another widely used standard, the report said.

"The first [JF-17] overhaul marks an important milestone [in the JF-17 project]," Fu Qianshao, a Chinese air defence expert, said.

It represents the trial-and-error phase of the project and provided experience in establishing standards for other JF-17 overhauls in future, Qianshao said.


 The overhaul of the fighter jet includes major maintenance, featuring repairs and replacement of old components, including the airframe and engine.

Moon mystery solved; massive impact behind two different faces: Study

Current Affairs

Collision with a wayward dwarf planet may have caused the stark difference between the Moon's heavily-cratered farside and the lower-lying open basins of the Earth-facing nearside, according to a study.

The mystery of the Moon's two faces began in the Apollo era when the first views of its farside revealed the surprising differences, according to the study published in Journal of Geophysical Research: Planets.

Measurements made by the Gravity Recovery and Interior Laboratory (GRAIL) mission in 2012 filled in more details about the structure of the Moon -- including how its crust is thicker and includes an extra layer of material on its farside.

There are a number of ideas that have been used to try and explain the Moon's asymmetry.
One is that there were once two moons orbiting Earth and they merged in the very early days of the Moon's formation, researchers said.Another idea is that a large body, perhaps a young dwarf planet, found itself in an orbit around the Sun that put it on a collision course with the Moon.

This latter giant impact idea would have happened somewhat later than a merging-moons scenario and after the Moon had formed a solid crust, said Meng Hua Zhu, from Macau University of Science and Technology.

Signs of such an impact should be visible in the structure of the lunar crust today.

"The detailed gravity data obtained by GRAIL has given new insight into the structure of the lunar crust underneath the surface," Zhu said.

 The new findings from GRAIL gave Zhu's team of researchers a clearer target to aim for with the computer simulations they used to test different early-Moon impact scenarios...Read More

How will Trump's trade war end? The US-UK war of 1812 may have the answer

International News
President Donald Trump’s escalating trade war against China has drawn plenty of historical parallels.
The Chinese like to invoke the 19th-century Opium Wars and the national humiliation that followed.
In the U.S. the comparison is increasingly to the Cold War against the Soviet Union, or the 1980s trade wars against Japan.

Ask Douglas Irwin, author of “Clashing Over Commerce: A History of U.S. Trade Policy,” however, and he argues the most accurate comparison from an American perspective is the War of 1812.
That conflict was born out of a trade war (a British embargo of France) and fought at least partly as a trade war (a British blockade of America). It also yielded another trade war.

Once the war was won, it prompted calls for a decoupling from a British economy with which America’s was deeply integrated, Irwin said. And like the current calls related to China, that was based on a bigger existential question for the U.S.

“We wanted to reduce our dependence on Britain, which was viewed as an enemy power,’’ said Irwin, a professor at Dartmouth.

Higher Stakes

In response, Washington began imposing higher tariffs on British goods to protect what it declared to be strategic U.S. industries.


 That action grew into manufacturers’ calls for protection from cheap British imports that would become a feature of political debate through the 19th century...Read More

Surprise! India has the third highest expat salary packages in Asia

International News

With Hong Kong and Singapore routinely topping the charts as the most expensive places to live and play, it may come as some surprise that Japan offers the best pay packets for expats in Asia.

The average expatriate pay package provided by companies in Japan to mid-level employees is $386,451 a year, eclipsing what’s on offer anywhere else in the region, according to a report by consultancy ECA International. Japan also saw the biggest increase in expat package values last year, thanks to a stronger yen and steeper housing costs, said Lee Quane, a regional director at the firm.
ECA's annual MyExpatriate Market Pay Survey measured expat packages by cash salary along with other perks including accommodation allowances and international school subsidies. It also took the various countries’ tax systems into account.Perhaps because of some of the challenges living in India entails -- think bad traffic, overcrowding and pollution -- it came in at No. 3, with companies offering mid-level staff an average package of $299,728 to attract overseas talent.

Hong Kong, the world’s least-affordable city, took the No. 4 slot in Asia, with firms shelling out $276,417 to international employees. Add-on benefits over and above salary were the highest in the region.Singapore only just squeezes into the top 10. The city-state, known for its low taxes, good schooling and easy outdoor lifestyle, mean companies don’t need to offer as many other bells and whistles.

On balance, it’s still better to be based in Asia as an expat, the ECA study found. Packages in the U.S. averaged just $250,028. In Australia, seen as a


 dream destination for many because of its wide open spaces and coastal cities, packages were $266,848.Topping the list globally was the U.K., with an average expat package of $421,798....Read More

Countdown to PSLV-C46 launch begins; to carry earth observation satellite

Current Affairs

Countdown for the launch of PSLV-C46 began at 04:30 am (IST) today from Satish Dhawan Space Centre, Sriharikota. This will be the third launch in 2019 alone.

The launch is scheduled at 05:30 am (IST) on Wednesday. PSLV-C46, the 48th mission of PSLV, will launch RISAT-2B, a radar imaging earth observation satellite.

PSLV-C46 is the 14th flight of PSLV in 'core-alone' configuration, a type which does not use solid strap-on motors. This will be the 72nd launch vehicle mission from SDSC SHAR, Sriharikota, and the 36th launch from the First Launch pad.

PSLV-C46 will carry the 615-kg RISAT-2B into an orbit of 555 km at an inclination of 37 degrees, said Isro officials. The project would help agriculture, forestry and will give disaster management support.


 Meanwhile, Indian Space Research Organisation (ISRO) Chairman K Sivan on Tuesday visited Lord Venkateshwara in Tirupati on the eve of the launch.

Trade growth slowdown likely to worsen amid tariff war, says WTO

Current Affairs

Rising trade tensions have prompted the World Trade Organization (WTO) to dim its prospect for trade growth in the second quarter of the 2019 calendar year.

“World trade growth is likely to remain weak into the second quarter of 2019,” the WTO said on Monday, pointing towards falling levels of growth in international air freight, automobile production, sales and trade in agriculture raw materials. “The outlook for trade could worsen if heightened trade tensions are not resolved or if macroeconomic policy fails to adjust to changing circumstances,” it further said.

While the WTO did not mention the US and China in its latest assessment, the escalating trade war between the two largest economies had been blamed by it earlier as a source of destabilisation of growth. The Geneva-based body brings out its quarterly forecast of global trade growth through the World Trade Outlook Indicator (WTOI) index. It shows a sustained slowdown in container port throughput, stemming from slow growth in crucial sectors.

The WTO has maintained that the index is not intended as a short-term forecast, suggesting it provides an indication of trade growth in the near future. The index had correctly forecast continued reduction in trade growth since 2018. Readings greater than 100 suggests growth above medium-term trends, while those below the number indicate the opposite. However, actual trade volumes have closely followed its predictions.


 This was driven by declines in all, but two component indices, electronic components and most importantly, export orders, which managed to rise slightly.graph Indices for export orders (96.6) and electronic components (96.7) appear to have bottomed out, even as both remained firmly below-trend, the WTO said. Elsewhere, the index for container port throughput (101.0) also declined but remained above 100, suggesting growth in line with recent trends.

Chasing govt jobs, desperate youth flock coaching hubs year after year

Current Affairs

GN Shakya is a veteran of Allahabad’s test preparation centres. Like many others, he has been in pursuit of a secure government job for years--in his case, 16 years. During this time, he has amassed five degrees (BA, MA, LLB, B.Ed and M.Ed), and performed odd-jobs, all while studying for the professional examinations. “What work will we do when half our life goes by in finding a job?” he asked when we visited in early April 2019.

This near-dejection has not caught hold of Deepak Maurya yet. Dressed in a white vest and shorts, the 17-year-old has just completed his 12th grade exams and taken a train to Allahabad, “taiyyari ke liye”--“to prepare”.

Maurya is staying with a relative in a room in one of the many lodges in the neighborhoods around the University of Allahabad.

This particular lodge houses about 20 people in a handful of 8ft by 9ft rooms, all of them doing taiyyari--for competitive exams for government jobs.

The test-preparation industry thrives in many parts of India, some of the most prominent in the north being Delhi; Allahabad, which attracts aspirants from eastern Uttar Pradesh; Jaipur and Jodhpur in Rajasthan; as well as smaller cities such as Sikar in the eponymous district in Rajasthan for those who cannot afford to go to big cities such as Jaipur.

Localities such as Vivek Vihar in Jaipur, Katra and Baghada neighbourhoods of Allahabad, and Mukherji Nagar, Rajendra Nagar and Munirka in Delhi, contain concentrations of the educated unemployed--those who constitute India’s historic demographic potential, vying for a shrinking pool of secure employment opportunities.


 In near-identical neighbourhoods across these cities, thousands of youngsters spend some of their most productive years preparing for exams that may or may not get them government jobs.

Pakistan appoints Mueenul Haq as new High Commissioner to India

Current Affairs

Pakistan on Monday appointed career diplomat Mueenul Haq as the High Commissioner to India.
Prime Minister Imran Khan on Monday approved appointments of over two dozen ambassadors in various countries including India, China and Japan.

Haq, the current ambassador to France, has previously served as chief of protocol at the Foreign Office.

The post of High Commissioner to India fell vacant after Sohail Mehmood was appointed Pakistan's new foreign secretary.

The decision came after a detailed meeting with Prime Minister Khan, who formally approved the new appointments, Foreign Minister Shah Mahmood Qureshi said in a video message.
Qureshi said, "New Delhi, India, is very importantAfter consultation I have decided to appoint Mueenul Haq, the current ambassador in France, who will be sent to (New) Delhi, and I hope that he (Haq) will deliver."

Qureshi said that Indian elections were coming to end and it was possible that after the elections a new process of engagement could start.

He expressed hope that Haq would perform his new job with best of his abilities.

 Since assuming the office in August last year, Prime Minister Khan repeatedly reached out to India for the resumption of peace talks on all outstanding issues. But India has made it clear to Pakistan that terrorism and dialogue will not go hand-in-hand.Confirming the major appointments, the foreign minister said Naghmana Hashmi, career diplomat, is being sent to China, which is "very important" country for Pakistan.

What Imran Khan should do to prevent Pakistan from FATF blacklisting

International News

Pakistan needs to launch an aggressive diplomatic effort to secure enough support to come out of the grey list or prevent itself from falling into the black list of the Financial Action Task Force (FATF) next month, a senior government official has said.

The official's remarks came after a 10-member Pakistani delegation attended
a two-day meeting of the Asia-Pacific Group (APG) of the Paris-based global watchdog FATF in the southern Chinese city of Guangzhou where it defended Pakistan's efforts against money laundering and terror financing.

The senior official, who participated in the APG meeting in Guangzhou last week, told the Dawn newspaper that the coming FATF Plenary and Working Group meetings in Orlando, Florida, scheduled for June 16-21, would be crucial for Pakistan to get rid of the grey list or falling into the black list and having serious economic repercussions.

"The Orlando plenary will actually set the stage for Pakistan's future even though a formal announcement would come out at the next FATF plenary due in Paris on October 18-23," he said.Hence, an aggressive diplomatic effort over the next four weeks is required to secure enough support and votes to exit the grey list, the report said.Pakistan was now fully compliant with the related United Nations resolutions, the official said.

Pakistan has taken aggressive steps over the last two months in terms of regulatory and monitoring mechanism to meet the FATF requirements and its legal system is generally up to the mark, except some amendments to the Anti-Money Laundering Act (AMLA) 2010 pending before the National Assembly's standing committee on finance and revenue, the report said.


"We believe we have generally delivered on the technical side i.e. legal and administrative action, regulations, monitoring, enforcement and inter-agency and stakeholder coordination and now require more of the diplomatic push to counter the adversaries," said the official.

US-Iran tensions, Opec's indication of continuing cuts lead to oil surge

International News

Oil rose to multi-week highs on Monday after Organization of the Petroleum Exporting Countries (Opec) indicated it will likely maintain production cuts that have helped support prices this year, while tensions continued to escalate in the Middle East.

Brent crude was up by 96 cents, or 1.3%, at $73.17 a barrel by 0227 GMT, having earlier touched $73.40, the highest since April 26.

U.S. West Texas Intermediate crude was 82 cents, 1.3%, higher at $63.58 a barrel. The US benchmark reached $63.81 earlier, the highest since May 1.

Saudi Energy Minister Khalid al-Falih said on Sunday there was consensus among the Opec and allied oil producers to drive down crude inventories "gently" but he would remain responsive to the needs of a "fragile market".

United Arab Emirates (UAE) Energy Minister Suhail al-Mazrouei earlier told reporters that producers were capable of filling any market gap and that relaxing supply cuts was not "the right decision".
Meanwhile, US President Donald Trump threatened Tehran on Sunday, tweeting that a conflict would be the "official end" of Iran, while Saudi Arabia said it was ready to respond with "all strength" and that it was up to Iran to avoid war.

The rhetoric follows last week's attacks on Saudi oil assets and the firing of a rocket on Sunday into Baghdad's heavily fortified "Green Zone" that exploded near the US embassy.

 "Al-Falih and the UAE both put paid to suggestions of increasing production over the weekend and then President Trump essentially telling Iran to bring it on, was a perfect short-term storm for oil prices," Greg McKenna, strategist at McKenna Macro, told Reuters by email.

Switzerland votes 'yes' to being for corporate tax home for big business

International News

Go inside the global economy with Stephanie Flanders in her new podcast, Stephanomics. Subscribe via Pocket Cast or iTunes.

Switzerland approved an overhaul of the corporate tax code, choosing to stay an attractive base for companies like Procter & Gamble, Vitol SA and Caterpillar even at the expense of a short-term drop in fiscal revenue.

The change was approved by 66 per cent of voters, according to a projection published by Swiss television SRF. A poll by gfs.bern had suggested it would pass.

The outcome, which ends years of wrangling and a failed attempt at an overhaul two years ago, ensures Switzerland remains a low tax domicile for companies and still is compliant with international rules. The new system will consist of deductions on profit from patents and R&D expenses, to make up for having to get rid of the breaks now accorded multinationals. That’s because they no longer are in line with Organization for Economic Cooperation and Development rules.
A failure to pass the reform could have sparked an exodus of firms to low-tax locales like Ireland or Singapore because in Switzerland they would’ve been taxed at the same rate as local companies — which in Geneva is currently as high as 24.16 per cent.

Chart That could have been devastating for the economy. Multinationals generate about a quarter of employment and a third of gross domestic product, according to a study by McKinsey and industry group SwissHoldings. They also responsible for a big chunk of the federal government’s revenue from taxing firms’ profits.


 Cantons are also taking action on taxation. The cantons of Basel City, home to pharmaceutical giants Novartis and Roche, has lowered its levy on companies, as has the French-speaking canton of Vaud.

China urges US to not go too far in 'damaging moves' against our interests

International News

days after US President Donald Trump signed an executive order barring American companies from installing the foreign-made telecom equipment posing a national security threat, a move apparently aimed at banning Huawei from US networks.

Beijing has warned of retaliation against the order that effectively barred Chinese telecom giant Huawei from the US market.

The world's top two economies are locked in a trade battle that has seen mounting tariffs, sparking fears that the conflict could damage the global economy.

Wang, noting that the US has recently made remarks and taken actions that are harmful to the Chinese interests in various fields including cracking down on Chinese enterprises' normal operations through political measures, said China strongly opposes such actions."We urge the US side not to go too far," he told Pompeo.

History and reality have shown that as two big countries, China and the US will both benefit from cooperation and lose from conflicts, Wang said, adding that cooperation is the only right choice for the two countries.

The two sides should follow the direction set by the two countries' heads of state, manage their differences on the basis of mutual respect, expand cooperation on the basis of mutual benefit, and work together in pushing forward a China-US relationship based on coordination, cooperation and stability, state-run Xinhua news agency quoted Wang as saying.


 China has always been willing to resolve economic and trade differences through negotiations and consultations, which, however, should be conducted on the basis of equality, he said, adding that China, in any negotiations, must safeguard its legitimate interests, answer the calls of its people, and defend the basic norms of international relations.

Who will win ICC World Cup 2019? Check out who the punters are betting on

ICCI World Cup 2019

With less than a fortnight remaining before the 12th edition of the ICC Cricket World Cup gets underway in England and Wales, the squads for all the 10 participating teams have been announced and the race to predict the winner is gathering steam.

Most online betting websites expect host England to win the tournament. Ladbrokes, for instance, pegs the odds of an England win at 15/8, followed by India (at 3/1) and then defending champions Australia (at 9/2). Simply put, 15/8 is the fraction the bookie is willing to multiply your stake by.
Mathematically, 15/8 implies 15 divided by 8, or the fraction 1.875. So if you bet on England with the odds currently placed at 15/8, the amount you bet will be multiplied by 15 and then divided by 8. The winnings, on this case, will be the result of the above-mentioned fraction plus the amount you originally bet.

For example, bid money Rs 50,000. Odds: 15/8. If you win, the total amount you get will be:
(Rs 50,000 x 15)/8 + Rs 50,000 = Rs 1,43,750

Remember, most websites do charge a small commission on the winnings as well.
Ireland, Zimbabwe and Afghanistan are placed at the bottom of the pyramid with the odds for winning placed at 1000/1, 1000/1 and 100/1, respectively.


 Another online betting site, Betway, also expects England to win the ICC World Cup (odds at 3.25), followed by India (odds at 3.75) and Australia (odds at 4.5). It, however, places Sri Lanka (51), Afghanistan and Bangladesh at the bottom of the winners pyramid with odds of 81...Read More

Tamil Nadu trader bodies again plan to boycott Pepsi and Coca-Cola

Company News

The trader’ bodies in Tamil Nadu are again planning to boycott Pepsi and Coca-Cola, asking its members to replace them with local drinks and packaged products.

They had earlier announced a boycott against these multinational companies (MNCs) in 2017.
But the MNCs overcame that and continued to sell their products throughout the state.

Leaders of the Tamil Nadu Vanigar Sangankalin Peramaippu and the Federation of Tamil Nadu Traders' Association say the products from the MNCs are becoming a threat to the Indian traders.
PepsiCo and Coca-Cola refused to comment on the move.


 The soft drink market in Tamil Nadu is around 500,000 crates per day, with each crate having 24 bottles, and almost 80 per cent of it is by PepsiCo and Coca-Cola, say sources.

Infosys grants stock units worth Rs 10 crore to CEO Salil Parekh

Company News

Infosys’ board on Thursday proposed granting equity shares worth Rs 10 crore to Chief Executive Officer Salil Parekh as part of a new stock incentive plan aimed at retaining talent.

Chief Operating Officer and Whole-time Director UB Pravin Rao will get shares worth Rs 4 crore. In all, 50 million shares will be allocated to employees, subject to shareholders’ approval, under the initiative called ‘Infosys Expanded Stock Ownership Program 2019’.

"Our employees are our biggest asset, and through this programme, we aim to recognise and reward individuals who are committed to driving value creation for all stakeholders through their continued and consistent performance," said Salil Parekh, CEO & MD of Infosys.

“By making employees owners, they get an opportunity to be beneficiaries in the long-term success of the company and realise the results of their work and dedication," he added.

The new plan is different from Infosys' 2015 plan. “Under the 2015 plan, the grants were largely vested based on time, whereas under the 2019 plan, the grants will vest strictly on performance," the company said in an exchange filing.


 The Bengaluru-headquartered firm has faced high attrition levels of close to 20 per cent in recent quarters, one of the highest among its peers. For the quarter ended March 2019, the overall attrition of the IT firm was 20.4 per cent, a rise of 50 basis points over the preceding quarter. "The overall attrition remains high and we are continuing our focus on arresting the same," COO U B Pravin Rao had said during the earnings conference in April.

Walmart Q1 operating income declines 41.7% primarily due to Flipkart

Company News

Walmart, the world’s largest retailer, said its reported international operating income in the quarter declined 41.7 per cent and went down 37.5 per cent in constant-currency terms, primarily on account of Flipkart.

The Bentonville-based company (in Arkansas) is locked in a battle with US rival Amazon for dominance in India’s online retail market through online retailer Flipkart, which it acquired for $16 billion last year in May.

“A large part of the decline was due to dilution from Flipkart, which was expected, partially offset by the deconsolidation of Brazil. The timing of Easter also negatively affected operating income versus last year. The full year earnings dilution related to Flipkart is still in line with expectations,” said Brett Biggs, executive vice-president and chief financial officer, Walmart Inc, about the first quarter of FY20 earnings.

Doug McMillon, president and chief executive officer, Walmart Inc, said he continued to be excited about the opportunity he saw in Flipkart and its digital payments company, PhonePe.
“I got to visit our teams in India and China a few weeks ago. I’m impressed with the team and their ability to innovate for customers with speed,” said McMillon.

He was on a crucial visit to India in April to assess the progress made by Flipkart and discuss the strategy to take on its rival Amazon, according to sources.During the quarter, the company returned $3.7 billion to shareholders through dividends and share repurchases. Its level of share repurchases increased significantly year-on-year in Q1.


 Walmart’s operating income in the US grew 5.5 per cent because the gross margin rate was better than expected due to several factors including a better merchandise mix in both stores and e-commerce, and less pressure from transportation costs, partially offset by continued price investments.