Margin pressure, global factors to impact copper industry's financials

International News

The overall financials of the domestic copper industry may take a hit owing to margin pressure and a subdued global outlook.
According to a report by 'Care Ratings', the dip in domestic production, largely due to the permanent closure of Vedanta's copper smelter plant in Thoothukkudi, will force India to remain a net importer of copper while the global copper prices will remain suppressed, and in the range of $ 5,500-5,900/tonne, until a constructive trade deal is reached between the US and China.
Cumulative sales revenue of India's copper industry has declined by 6.6 per cent during the period from FY15 to FY19. The industry's revenues largely depend on the copper prices prevailing in the global economy. However, LME copper prices started declining and have been supressed ever since the US-China trade war began, the report says.
Domestically, production of refined copper had grown at a CAGR of 9.6 per cent during FY14-18. Production fell by 46.1 per cent during FY19 due to the permanent closure of Sterlite’s 400KT copper PLANT in Thoothukudi on May 28, 2018. The Thoothukkudi PLANT accounts for 40 per cent of the country’s copper smelting capacity.With the permanent closure of Sterlite's smelter in Thoothukkudi, and the uncertainty surrounding its remission, the rating agency believes that by the end of FY20, refined copper production will be around 450 kiloton (KT), registering a 1.5 per cent drop from its FY19 level of production. Production of copper from April to July this year was at 167 KT.

 "The closure of this plant has resulted in India becoming a net importer, from a net exporter of copper. Due to the increase in demand, India will continue being a net importer of refined copper during FY20 as well, unless the Madurai court passes the judgement for the remission of the this smelter,"...READ MORE

Can a land bank be the solution to India's huge shadow bank crisis?

International News

When a well-capitalized shadow bank’s credit rating goes from A+ to D in 10 days, it shows how fragile lending to India’s builders has become. It also highlights the policy error of not addressing the root of the problem: land.
In June, three months before the unexpected default by Altico Capital India Ltd., I proposed a land bank that would buy stalled property projects from struggling developers. The bank would pay with government-backed debt securities, which the builders would use to repay loans.
To see how this could prevent liquidity problems from cascading into solvency issues, consider the Altico default. The Clearwater Capital Partners-backed firm missed a measly $2.8 million interest payment after its tight but manageable repayment schedule of $135 million became a squeeze at $233 million in the financial year that started April 1. The 63 cents of equity behind every dollar Altico owed to its creditors was of little help. Spooked by its $900 million-plus loan book for residential and commercial real-estate projects, two lenders exercised put options or reset the interest rates so high that they had to be prepaid.
India’s banks are rapidly losing faith in the shadow financiers that lend to property builders. A year after the collapse of IL&FS Group, a specialist infrastructure financier, the crisis of confidence is getting worse. Indiabulls Housing Finance Ltd. shares fell as much 38% on Monday after the central bank imposed lending restrictions on Lakshmi Vilas Bank Ltd., a deposit-taking institution the financier has been trying to merge with to bolster its funding sources.

 The nervousness with shadow banks isn’t about the quality of their retail loans, which are still fairly resilient. It’s their lumpy advances that are worrying investors. Dewan Housing Finance Corp., which defaulted in June, underwrites mortgages, but it also has $5 billion of exposure to developers...Read More

Why the festival season may not bring much cheer despite tax cuts by govt

International News
Poor demand from Indian consumers could dampen the mood during festivals next month, especially for automobile makers and retailers that count on the season for a sales boost, analysts predict.
Indians typically buy everything from new cars to shoes for themselves and as gifts during celebrations steeped in religion and tradition. Yet the slowest economic growth in six years, unemployment at a 45-year high and tepid private consumption may see sales fall short of recent years, even after the government’s $20 billion tax break to companies earlier this month.
“You can make the product 50% cheaper, but there has to be income to spend,” said Nitin Gupta, an analyst at SBICAP Securities Ltd. in Mumbai. “In the short-term, I don’t see any kind of an income boost. Rather than giving cash to individuals, they have given it to companies.”
Car sales in August fell the most on record and Maruti Suzuki India Ltd. Friday reduced the price on its Baleno RS model by 100,000 rupees ($1,420) to pass on the benefit from the tax cut. Market researcher Nielsen has lowered its 2019 growth estimate for fast-moving goods to 9%-10% from 11%-12%, while a stock gauge of consumer discretionary firms is set for its first annual back-to-back losses since at least 2005.
Even so, the industry’s fortunes beyond the approaching festival season are poised to improve, according to BNP Paribas SA. Plentiful rainfall seen this monsoon season and cash handouts to farmers will help lift rural incomes, helping sales of staples recover in the second half of the year that began April 1, the brokerage said in a recent report.

 Poor demand from Indian consumers may dim festive cheer despite tax cut...READ MORE

Economic slowdown: Realtors slash ad spends by over 50% as sales plunge

International News
The real estate sector, one of the biggest ad spenders during festival season, has slashed its ad budget by over 50 per cent as the sector is facing slowdown in demand due to various reasons including tight liquidity situation.
According to advertising industry experts, the real estate sector which is grappling with liquidity issues and large inventories since demonetisation in November 2016, has massively reduced their ad spends on TV and print media, and have moved a portion of their ad spend to the digital space to cut cost.
"Realty sector has been sluggish since the last two years and deepening general slowdown has only exasperated it," media and digital marketing communications company Dentsu Aegis Network chief executive for Asia Pacific Ashish Bhasin told PTI.Today, most developers are struggling with financial constraints mainly because of plunging demand."Due to this, they have either delayed or defaulted their payments to media agencies, which are now wary to work with such developers," he said.
Bhasin further said real estate companies will be spending more on performance, marketing and sales related efforts than building brand and accordingly have cut their ad spends by almost 50 per cent.Havas Media Group chief executive for India and Southeast Asia Anita Nayyar said, pre-Navratri is the time when developers spend hugely on advertising. But this time around it has just crashed.

 "Since liquidity is an issue, developers are resorting to barter private treaties by entering into brand capital deals with leading news dailies. These treaties could be in the form of publisher picking up some stake for the ad money value by or developers offering space a project to the publication...READ MORE

E-commerce majors Flipkart and Amazon clock bumper sale on Day One

International News
Dispelling the fear that a slowing economy may affect consumer behaviour, e-commerce majors Flipkart and Amazon India have said they witnessed record transactions on their platforms on the first day of their annual festive sale, which started early on Sunday.
While home-grown Flipkart, which is now owned by American retail major Walmart, said it registered two times more sales on Day One of its flagship sale event Big Billion Days (BBD) over last year, rival Amazon claimed it witnessed the biggest opening day sale ever with a huge surge in participation in smaller towns.
According to Amit Agarwal, senior vice-president and country head, Amazon India, the company also saw the single-largest day of Prime sign-ups, with 66 per cent of Prime members shopping in 24 hours coming from tier II and tier III towns. The company added that 91 per cent of new customers were from smaller cities.
“Whether it is the Diwali festival season or any other shopping event, the primary objective for us is to add as many new customers as we can and convert the existing customer into Prime members. We are relevant to customers, no matter the macroeconomic conditions,” said Agarwal.

 According to Flipkart, it saw huge demand in almost all major categories, including beauty, women’s ethnic wear, kidswear, sports, fast-moving consumer goods, baby care, private labels, and furniture on the first day of the sale. The company saw 3x more transactions happening on its platform during early access (from Flipkart Plus customers), compared to last year. The number of transacting customers in tier II and smaller cities doubled over the same period. “We started this festive season by setting audacious targets. By all indication, this is going to be the biggest festive season that India has witnessed,” said Kalyan Krishnamurthy, chief executive officer of Flipkart....READ MORE

Saudi Arabia to offer tourist visas for the first time to diversify economy

International News
Saudi Arabia said Friday it will offer tourist visas for the first time, opening up the ultra-conservative kingdom to holidaymakers as part of a push to diversify its economy away from oil.
Kickstarting tourism is one of the centrepieces of Crown Prince Mohammed bin Salman's Vision 2030 reform programme to prepare the biggest Arab economy for a post-oil era.The announcement comes just two weeks after devastating attacks on Saudi Arabia's oil infrastructure -- blamed by Washington on Iran -- which roiled global energy markets."Opening Saudi Arabia to international tourists is a historic moment for our country," tourism chief Ahmed al-Khateeb said in a statement.
"Visitors will be surprised... by the treasures we have to share -- five UNESCO World Heritage Sites, a vibrant local culture and breathtaking natural beauty." Saudi Arabia will open applications for online tourist visas to citizens of 49 countries on Saturday, Bloomberg News quoted Khateeb as saying.
Khateeb said the kingdom will also ease its strict dress code for foreign women, allowing them to go without the body-shrouding abaya robe that is still mandatory public wear for Saudi women.
The austere kingdom, which forbids alcohol and has a strict social code, is seen by many as a hard sell for tourists.Prince Mohammed is seeking to change that through a sweeping liberalisation drive that has brought new cinemas, mixed-gender concerts and sporting extravaganzas to Saudi Arabia.

 International criticism of the kingdom's human rights record, including the gruesome murder last year of critic Jamal Khashoggi and a crackdown on female activists, could further put off foreign visitors, observers say...READ MORE

India should integrate AI with education to become world leader: Sikka

International News
Former Infosys CEO Vishal Sikka, who has announced a new AI startup with $50 million fund, believes India has the potential to become a world leader in artificial intelligence but the key to this is integrating AI into the country's education system in a massive way.
India is at "an inflection point" when it comes to AI or artificial intelligence, Sikka said.Over the next 20-25 years, AI is going to be "a very, very big disruptor" for the Indian society because what one is seeing now in terms of automation and job losses because of automation is just the beginning, said Sikka, who announced his startup Vianai Systems last week.
"But on the other hand, if we are able to bring AI education, the ability to build AI systems to India at a very large scale, and I'm talking about like billion plus people, then India can really leap frog and become the world's leader in artificial intelligence, in AI skill and AI talent," Sikka told PTI in an exclusive interview.
Doing that requires working on multiple dimensions in parallel, he said.
Last month, at the request of Prime Minister Narendra Modi, Sikka gave a presentation before the NITI Aayog how to expand the reach of AI to the Indian society in a very big way.
Representatives of some 20 Union ministries were present during his presentation on AI and India. This, he said, required creating necessary infrastructure to bring the talent through institutions, schools and educational institutions, the ability to do AI education at a large scale.

 According to Sikka, the prime minister said he personally saw whenever classes worked into digital classrooms, he was joking that children would sometimes even forget to eat their lunch because they were so engrossed in learning. "It was very encouraging...READ MORE

For Wall Street, China's financial markets are bigger than the trade war

International News
Executives from the biggest US financial firms, including JPMorgan Chase & Co and Goldman Sachs Group Inc, are meeting with top regulators in Beijing in a sign that the trade war with the US has done little to derail China’s opening of its $43 trillion financial system.
Among those scheduled to attend on Friday at the Ritz-Carlton hotel on the city’s Financial Street will be Yi Gang, governor of the People’s Bank of China and senior officials from the China Securities Regulatory Commission, according to the meeting’s agenda, which was seen by Bloomberg.
Even as the trade war rages, China has continued to open its financial sector at an unprecedented pace, luring global banks seeking to compete for an estimated $9 billion in annual profits. While the policy has often been cast as addressing U.S. complaints that the Asian nation has been a one-sided beneficiary of trade, domestic motivations are also behind the push, said Michael Pettis, professor of finance at the Guanghua School of Management at Peking University.
“China is very determined to reform its financial markets and knows that without the major American players, it is very hard to talk about having a truly internationalized market,” he said. “It also makes sense for China to accommodate a very important source of lobbying support, especially as there’s so little in the U.S. right now.”Representatives for JPMorgan and Goldman Sachs declined to comment, while the PBOC and CSRC didn’t immediately respond to requests for comment sent outside of regular business hours.
Forcing Change

 Chinese regulators can’t ignore the country’s financial-market issues. Corporate bond defaults reached a record high last year and the nation’s banks are seeing their balance sheets swell with ever more bad loans....READ MORE

World leaders come up short at UN summit as millions demand climate action

International News

Millions of people in 170 countries took to the streets to protest. World leaders lined up at the United Nations to pledge action. A 16-year-old girl, close to tears, shamed them for robbing her of a future.
The pressure to act on climate change is mounting. Titans of global business and politics gathered in New York this week for a series of events, including the Bloomberg Global Business Forum in New York, to acknowledge that more must be done -- but fell short of saying exactly what will be done.
“Time is running out in the court of public opinion, because time is running out to address climate change,” New Zealand Prime Minister Jacinda Ardern told heads of state and business chiefs at the Global Business Forum on Wednesday. “It’s right for them to hold our feet to the fire.”
The stakes have indeed never been higher. Temperatures have already risen 1 degree Celsius (2 degrees Fahrenheit) since the 1880s. The world must limit that warming to no more than 2 degrees above Industrial Revolution levels, the UN has warned, to avoid the most catastrophic of droughts, floods, mass migrations and conflicts. “You can just feel the groundswell of popular sentiment, that the urgency of this is elevated,” Goldman Sachs Group Inc. Chief Executive David Solomon said during the forum.
When asked whether there’s enough information out there to determine his own bank’s exposure to climate change, Solomon said, “We’re working on it. The answer is we’re working on it.” It was a response that underscored both the heightened awareness among leaders that they will be held responsible for global warming and the work that still lays ahead of them.

 The meetings were still “far too much a chance for people to beat their chests and say they’re making change,” said Brad Cornell, a business professor at the University of California at Los Angeles. “But who is making real change?”....Read More

Allcargo Logistics in talks to acquire stake in rival Gati: Report

International News
Allcargo Logistics is in talks to buy a stake in smaller rival Gati, people with knowledge of the matter said, as India’s biggest cargo company attempts to boost its presence across Asia’s third-largest economy.
Allcargo is in discussions to acquire Gati, that’s 6 per cent owned by Goldman Sachs Group, at an equity valuation of about Rs 13 billion ($183 million), one of the people said, asking not to be identified as the talks are private. The purchase will trigger a mandatory offer to buy Gati’s outstanding shares, the people said.
India’s logistics and warehousing industry is attracting companies from Blackstone Group to Warburg Pincus as they seek to tap into a sector that Gati forecasts will be worth $217 billion by 2020. That’s buoyed by demand from e-commerce firms such as Amazon.com and Walmart’s India unit to provide last-mile connectivity into cities as well as remote hinterlands across one of the world’s largest landmass.
“For Allcargo, which was primarily into foreign trade business, buying stake in Gati is a clear de-risking initiative as the latter is more focused on domestic business,” Mathew Antony, managing partner at Mumbai-based advisory firm, Aditya Consulting. “This acquisition will help Allcargo offer total logistics solutions to e-commerce companies.”
The board of Allcargo is likely to consider the proposed acquisition in October, the people said. Gati has managed to secure approval for the sale from its Japanese partner Kintetsu Group in its flagship company, Gati-Kintetsu Express, they said.

 Allcargo doesn’t comment on “market speculations,” an external spokesman for the company said, while Gati declined to comment...Read More

A smartphone business thrives in North Korea despite sanctions. Here's how

International News

North Korea is evading UN sanctions to cash in on soaring domestic demand for smartphones, using low-cost hardware imports to generate significant income for the regime, according to defectors, experts and an analysis of North Korean-made phones.
Economists estimate as many as six million North Koreans - a quarter of the population - now have mobile phones, a critical tool for participating in an informal market economy that has become a key income source for many.
Reuters spoke to some 10 defectors and experts about the use of mobile devices in North Korea, as well as reviewing state media reports and advertisements for mobile devices, and examining two North Korean-branded smartphones.
The phones feature Taiwanese semiconductors, batteries made in China and a version of Google's open-source Android operating system, analysis of the North Korean phones revealed.
United Nations sanctions imposed in 2017 because of the North's weapons programmes prohibit imports of mobile phone hardware.
North Korean leader Kim Jong Un has endorsed wireless networks, some reportedly built with the help of China's Huawei Technologies, and local mobile phone brands through public speeches and a tour to a mobile phone factory reported by state media.
Big outlay

 Basic North Korean phones typically cost between $100 and $400 at state stores or private markets, experts and defectors say. Subscriptions to mobile carriers are registered at the telecom ministry's stores...Read More

Won't play 'Game of Thrones', undettered by US trade threats, says China

International News

China's top diplomat hit back at US criticism on Tuesday, saying Beijing had no intention to "play the Game of Thrones on the world stage" and would respect US interests, but it would not be threatened on trade or allow interference in its affairs, including Hong Kong.
In an address on the sidelines of the annual United Nations General Assembly in New York, Wang Yi, China's foreign minister and state councilor, urged a move away from confrontation between the two biggest global economies, saying they should cooperate for mutual benefit and for that of rest of the world.
Earlier on Tuesday, US President Donald Trump had a stern message for China and its president, Xi Jinping, in his speech at the United Nations General Assembly.Trump, who launched a trade war with China that's damaging both countries, delivered a stinging rebuke to Beijing's trade practices and said he would not accept a "bad deal" in US-China trade negotiations.
He also warned that the world was watching how Beijing handles mass demonstrations in Hong Kong that have heightened fears of a potential Chinese crackdown.Trump has sought to pressure China to agree to reduce trade barriers through a policy of increasing tariffs on Chinese products. He accused China of the theft of trade secrets "on a grand scale" and said it was taking advantage of World Trade Organization rules that give Beijing beneficial treatment as a "developing economy".

 Wang Yi told an event organized by the US-China Business Council that China hoped for a positive outcome from the next round of trade talks with the United States due to take place in October.But he said negotiations must be based on mutual respect and could not take place under threats...READ MORE

Auto major Maruti Suzuki slashes prices of select car models by Rs 5000

International News
The country's largest car maker Maruti Suzuki India on Wednesday reduced the prices of select models by Rs 5,000 (on ex-showroom prices).
These models include all variants of Alto 800, Alto K10, Swift Diesel, Celerio, Baleno Diesel, Ignis, Dzire Diesel, Tour S Diesel, Vitara Brezza and S-Cross, MSI said in a statement.
These models are priced in the range of Rs 2.93 lakh and Rs 11.49 lakh.
The new prices will be applicable from today across the country.
This reduction of price will be over and above the current promotional offers for the company's vehicle range, it added.
The company said it is optimistic that the price reduction will bring down the cost of acquisition, especially for the entry-level customers. "This announcement around the festive season will help boost customer sentiment and revive the market to create demand," MSI said.

The company's price reduction comes days after the government cut corporate tax last week with an aim to help industry overcome slowdown.

ADB paints gloomy picture; cuts India FY20 GDP growth forecast to 6.5%

International News

The Asian Development Bank on Wednesday sharply cut India's growth forecast to 6.5 per cent for the current financial year, weighed down by the GDP growth rate dipping to a six-year low in the first quarter.
"India's growth forecast for financial year 2019 (FY20) is lowered to 6.5 per cent after growth slowed markedly to 5 per cent in the first quarter, April–June," said the Asian Development Outlook (ADO) 2019 Update.
In its supplement to the ADO in July, the Manila-headquartered multi-lateral funding agency cut the country's GDP growth estimate to 7 per cent for 2019-20 on the back of fiscal shortfall concerns.
Abrupt declines in manufacturing and investment reflect uncertainty ahead of general elections, subdued lending by banks and other financial institutions, stress in the rural economy, and a weakening external outlook, it said.
"India is expected to rebound to 7.2 per cent growth in the financial year 2020 (FY21) and join most other subregional countries in performing at or near their ADO 2019 growth forecasts for next year," the ADB Outlook said.
As per the latest ADO, South Asia's growth momentum has softened.

 For the region, the growth forecasts are lowered to 6.2 per cent for 2019 and 6.7 per cent for 2020, it said.

India tycoons running out of time with debt dagger hanging over stocks

International News

Indian media giant Essel Group, run by industry mogul Subhash Chandra, is seeking an extension to repay debt in order to avoid creditors liquidating its shares.
The company faces a month-end debt repayment deadline. If that’s not met, creditors can sell shares in the group’s flagship Zee Entertainment Enterprises Ltd. kept as collateral against loans. The case highlights broader risks that borrowings backed by stock pose to the equity market. There’s a lot at stake with share-backed loans currently at about 1.9 trillion rupees ($26.5 billion).
Essel Group’s Chandra is seeking to sell assets ranging from a stake in the nation’s most valuable publicly traded TV network to roads. Shares of his Zee Entertainment Enterprises Ltd. have plummeted to the lowest level in five years.“We have certainly discussed the point pertaining to the extension as well, purely in the interest of deriving the right value for the precious assets,” said Punit Goenka, managing director and chief executive officer at Zee Enterprises in an emailed response, “The lenders have noted our view and have been extremely supportive.”
The media tycoon’s challenge is the first of what could be a string of tests this year for beleaguered business titans from Anil Ambani to the founders of the Emami Group. They have raised funds to expand their empires by pledging equity stakes in their firms and the clock is ticking as repayment dates loom.
Risks Mount

 “Not everybody is going to come out of this alive,” said Jayanth R Varma, a professor at the Indian Institute of Management in Ahmedabad, referring to the founder’s funding predicament. “I can’t imagine that all the groups that are in trouble today will be able to sort out their mess.”...Read More

Reliance Nippon Life AMC to side-pocket NCDs of Reliance Capital

International News

Reliance Nippon Life AMC (RNam) has decided to use the side-pocket mechanism to separate its schemes’ exposures to non-convertible debentures (NCDs) of Reliance Capital (RCap) after the latter's long-term rating was downgraded to ‘D’ or default category by CARE Ratings on Friday.
“The debenture trustee for these NCDs has informed CARE (via its email dated September 11, 2019) that RCap has delayed the payment of coupon on these NCDs by one working day and paid the same on September 11, 2019. This constitutes an event of default as per CARE’s default recognition policy,” RNam’s note read.
Reliance Equity Hybrid Fund’s exposure to RCap’s NCDs stood at Rs 34.6 crore (at face value), while Reliance Equity Savings Fund’s exposure to the NCDs stood at Rs 95.7 crore. Fresh subscriptions in these schemes have been suspended for now.
Both the schemes are currently in midst of a 30-day load-free exit window given to investors, which is one of the regulatory provisions before any scheme can use the mechanism.Separate portfolios holding RCap’s NCDs will get immediately carved out after this exit window ends on September 24.RNam said it had received the trustees’ approval to create the separate portfolio.
While subscription and redemption will be suspended in these portfolios, these portfolios will be listed on the exchanges within ten working days of creating of the side-pockets to give an exit option to the unitholders.

In exchange disclosure, RCap has called CARE’s rating action as unjustified, saying that the dues were settled on the next working day and couldn’t be processed on the due date (September 9) on account of technical glitch in bank servers....Read More

Distressed employees of BSNL write to PM Narendra Modi, call for revival

International News

Distressed employees of cash-strapped Bharat Sanchar Nigam (BSNL) on Monday urged Prime Minister Narendra Modi to revive the company and make it a strong telecom operator. In a letter to Prime Minister Narendra Modi, the staff of the beleaguered company said, “We heard that the finance ministry is proposing the closure of BSNL, instead of its revival.”
“It is felt that those officers involved in the process may not get an opportunity to learn about the critical role played by BSNL in nation building and in implementing government schemes and projects,” general secretary of BSNL Union Sebastin. K said in the letter.
Stressing the role played by the company during critical situations, the employees have sought relief from the government. Sebastin said during the recent developments in Jammu & Kashmir, the government is fully dependent on BSNL landline and mobile for providing services to a few government functionaries and security forces in Kashmir valley, despite the company incurring huge losses.
No other operator is allowed to provide services due to security reasons. BSNL is providing telecom services in remote parts of the country and maintaining 17,000 to 18,000 exchanges, incurring Rs 3,000 to Rs 4,000 crore losses every year. Otherwise, these villages will be cut off.
The aggrieved employees said, “A wrong notion has been created by the government, management and the media that the main reason for BSNL loss is its employee cost.”

The letter said, BSNL provides direct employment to several people and most of the operations and maintenance activities are done by its own employees, whereas other operators outsource majority of their works...Read More

Rape accused ex- BJP MP Chinmayanand arrested, taken for medical check-up

International News
Former Union minister Swami Chinmayanand, accused of rape by a law student, was arrested on Friday, his counsel said.
The BJP leader was arrested by the special investigation team (SIT) of Uttar Pradesh police from his residence 'Divya Dham' here amid heavy security deployment, his lawyer Pooja Singh told PTI.
He has been taken for medical examination to a government hospital, she said.
Singh said the SIT took signatures of Chinmayanand's relatives on the arrest memo but no arrest-related documents, including a copy of the FIR, were given to them.

 As Chinmayanand was taken to the hospital for medical check-up, patients had to face a tough time as they were not allowed to enter the premises.

'Howdy Modi' brings together Indian, Hindu Americans: Tulsi Gabbard

International News

"Howdy Modi" is bringing together Indian-Americans and Hindu Americans from across the US, Democratic presidential aspirant and the first Hindu woman in the US Congress Tulsi Gabbard has said.
Gabbard, 38, on Thursday extended her warm welcome to Prime Minister Narendra Modi for his upcoming US visit beginning on Saturday."I'm very happy to see that Howdy Modi is bringing together Indian-Americans and Hindu Americans from across our country, including many of my colleagues in the US Congress," Gabbard said on Thursday.
Prime Minister Modi will attend a large gathering with an audience of over 50,000 at the NRG Stadium in Houston on Sunday, September 22.US President Donald Trump along with a number of high-ranking US government officials, including Governors, Members of Congress and Mayors will attend the "Howdy Modi!" event.
"India is the world's oldest and largest democracy, and one of the United States most important allies," Gabbard said."The Unites States and India must work closely together if we are to address the pressing issues that impact our nations, our countries, and the entire world such as combating climate change, preventing nuclear war and nuclear proliferation, and improving the economic well-being of our people," she said.Gabbard described the wonderful opportunity the US and India has for "... a strong and lasting partnership between our two great nations, a partnership based on shared values and objectives".

 "Let us work together to usher in a 21st century of aloha respect and love for others, no matter our race, religion, ethnicity, caste, economic status or political affiliations," Gabbard said.The fourth-term lawmaker is a former Co-Chair of the Congressional Caucus on India and Indian-Americans...Read More

After Hindi, Alexa to speak in more Indian languages over the next few yrs

International News
Alexa has learnt to converse in Hindi. The efforts of more than 50,000 engineers, data scientists, language experts — who worked from India and abroad over the past 18 months — to make Alexa talk in Hindi, have finally borne fruit.
If things go as planned, Alexa will speak in Marathi, Tamil, Telugu, Bengali, among a host of other Indian languages, over the next few years.
The company hopes that purchases on Amazon would soon be made on Alexa. Taking the competition to Google Assistant, Amazon is ramping up the usage of Alexa in India by tying up with speaker manufacturers, mobile phone companies to make Alexa the primary voice assistant on devices.
From coming up with some of the best Rajnikanth jokes, recipe of gajar ka halwa (carrot pudding), reciting Hanuman Chalisa, to playing tambola, global e-commerce and technology giant Amazon’s voice assistant Alexa is doing it all — in Hindi. For Amazon India, Alexa might be the key to finally unlock the whole country to e-commerce in India.
Getting the lingo right
While Amazon has not given out any numbers, sources said more than 20,000 Indian developers in Amazon as well as those from abroad came together to give Alexa the Hindi edge.

 “We conduct a lot of hackathons and seminars to educate developers in India, so that they learn and develop voice-based capabilities for Alexa. There are lot of nuances we have brought in. While we speak in Hindi, it is mostly peppered with words in English. Alexa understands the language perfectly, and replies in a neutral accent in Hindi and English, just the way we are used to,” Dilip RS, country manager, Alexa Skills and Voice Service, Amazon India...Read More

Trump names hostage envoy O'Brien as NSA amid rising tensions with Iran

International News

President Donald Trump named Robert O'Brien, his chief hostage negotiator and an established figure in Republican policy circles, as his new national security adviser.
O'Brien, the fourth person in two years to hold the job, becomes the administration's point person on national security amid rising tensions with Iran following the weekend attack on Saudi oil installations and fresh uncertainty in Afghanistan after the halt in peace talks with the Taliban.
The announcement of O'Brien's selection on Wednesday comes a week after Trump ousted John Bolton from the post, citing policy disagreements.
O'Brien, who made headlines in July when he was dispatched to Sweden to monitor the assault trial of American rapper A$AP Rocky, was among five candidates Trump said Tuesday were under consideration.
"He's worked with me for quite awhile now on hostages, and we have a tremendous track record on hostages," Trump said Wednesday on a tarmac in Los Angeles, hours after revealing the pick on Twitter. "Robert has been fantastic. We know each other well." O'Brien, standing alongside Trump, said it was a "privilege" to be picked.
"We've had tremendous foreign policy successes under President Trump's leadership. I expect those to continue. We've got a number of challenges," he added.

 O'Brien said the administration's focus will continue to be on keeping the U.S. safe and rebuilding the military. He said he would advise Trump privately on the situation in Saudi Arabia.Trump abruptly forced out Bolton on Sept. 10, after he and his hawkish national security adviser found themselves in strong disagreement over the administration's approach to Iran, Afghanistan and a host of other global challenges...Read More

Trump backs severe sanctions, says many options short of war for Iran

International News
US President Donald Trump said on Wednesday there were many options short of war with Iran after US ally Saudi Arabia displayed remnants of drones and missiles it said were used in a crippling attack on its oil sites that was "unquestionably sponsored" by Tehran.
"There are many options. There's the ultimate option and there are options that are a lot less than that. And we'll see," Trump told reporters in Los Angeles. "I'm saying the ultimate option meaning go in -- war."
The president struck a cautious note as his Secretary of State Mike Pompeo, during a visit to Saudi Arabia, described the attacks as "an act of war" on the kingdom, the world's largest oil exporter.Trump said on Twitter that he had ordered the U.S. Treasury to "substantially increase sanctions" on Iran, which denies carrying out the attacks, and told reporters the unspecified, punitive economic measures would be unveiled within 48 hours.
Trump's tweet followed repeated U.S. assertions that the Islamic Republic was behind Saturday's attacks and came hours after Saudi Arabia said the strike was a "test of global will".Iran again denied involvement in the Sept. 14 raids, which hit the world's biggest crude oil processing facility and initially knocked out half of Saudi output. Saudi Arabia is the world's leading oil exporter.
Responsibility was claimed by Yemen's Iran-aligned Houthi group, which on Wednesday gave more details of the raid, saying it was launched from three sites in Yemen.

 In a remark that may further strain a tense political atmosphere in the Gulf, the Houthis said they had listed dozens of sites in the United Arab Emirates, Riyadh's top Arab ally, as possible targets for attacks...Read More

Hero MotoCorp asks govt for phased GST reduction to avoid revenue losses

International News

Hero MotoCorp on Thursday urged the government to consider a phase-wise reduction in GST on automobiles, cutting rates for two-wheelers in the first stage, and deferring tax cut on four-wheelers to a later stage.
The country's largest two-wheeler maker said the move would help the government contain potential revenue loss, and at the same time provide relief to around 20 million probable two-wheeler buyers across the country.
"I understand that potential adverse impact on government revenue is becoming a constraint (for GST rate cut). While increased sales should take care of that, even if we assume a shortfall in revenue, a resolution can be found if we approach this topic in phases," Hero MotoCorp CFO Niranjan Gupta told PTI.
The government may look at reducing the GST for only two-wheelers as the first step and defer it for four-wheelers, he added.
"This will contain the potential revenue loss, and also cover around 20 million buyers," Gupta said.
To begin with, the government can even look at bringing two-wheelers up to 150 cc into the 18 per cent goods and services tax (GST) slab, he said, adding that this will provide relief to almost 16 million probable customers - mostly in small towns and rural areas - with minimal revenue impact.
"Thereafter, the same can be extended to other segments, basis the outcome and fiscal space that the government may have," Gupta said.

 The two-wheeler market in India is pegged at around 20 million units per year with lower than 150-cc bikes accounting for the bulk of sales...Read More

GST Council unlikely to back tax cuts for automobile sector: Reports

International News

The goods and services tax (GST) panel is unlikely to approve lowering the tax for the auto and allied components sector this week, as a study has warned of major revenue losses, two government officials said.
A government study, attached to the agenda of a Sept. 20 GST panel meeting, has said the total annual revenue loss could be as much as Rs 50,000 crore ($6.95 billion), if the panel decided to lower tax rates for the auto sector to 18% from 28%.
Meanwhile, state officials in Kerala, Punjab and West Bengal say they are also opposed to any cut in tax rates in the autos sector, or even consumer goods, because of lacklustre tax collections this fiscal year.
In the April-July period, total tax revenues of 20 states fell 7% to Rs 4.9 trillion compared with the same period last year.
Some states were particularly hard hit, with data showing Andhra Pradesh, Rajasthan and Punjab tax collections plunged 59%, 35.5% and 12.5%, respectively.
"I will oppose any reduction for the simple reason that it won't be revenue neutral," said Thomas Isaac, finance minister of the southern state of Kerala.
The auto sector, which has been reeling from the worst slump in nearly two decades, has pushed for a lowering of tax rates at the Sept 20 GST panel meeting, in a bid to revive vehicle demand.
The GST panel is chaired by the finance minister and all state finance ministers are members. The panel makes decisions by vote.

 Still, those states ruled by the Bharatiya Janata Party may be willing to support a GST cut if the government pushes such a proposal...Read More

Bharatiya Kisan Union seeks ban on e-cigarettes and vaping devices

International News

The Bharatiya Kisan Union has become the latest farmers’ group to demand a complete ban on e-cigarettes and
vaping devices,The ban on electronic nicotine delivery systems (ENDS), commonly known as e-cigarettes, has been pushed by the health ministry since 2018.
“If e-cigarettes or ENDS are allowed in India, it will have a devastating effect on tobacco farmers. The main reason is that e-cigarette companies trying to open shops in India are of foreign origin and do not use Indian tobacco. In fact, the countries that these e-cigarettes belong to, such as the US, have also banned them,” the Bharatiya Kisan Union said on Wednesday.
The ban on manufacture, sale, and trading of e-cigarettes reportedly includes penal provisions going up to a maximum of three years in jail, and fine up to Rs 5 lakh for sale, manufacture, and even possession.
E-cigarette makers have criticised the move for being too heavy-handed. “A selective campaign unleashed by the Ministry of Health, which refused to afford even five minutes of time to our 15 representations over two months, is indicative of the pre-meditated moves on this issue,” said Praveen Rikhy, Convenor of TRENDS — the trade body representing importers, distributors and marketers of ENDS in India.

 Overall, more than 30 countries have banned these e-cigarettes/ENDS and other countries are planning to ban them. Tobacco growing countries like Thailand, Nepal, Brazil, Mexico, Sri Lanka have also banned ENDS to save the livelihoods of their farmers.The Federation of All India Farmer Associations (FAIFA) has also said not banning e-cigarettes would be catastrophic for local tobacco farmers.“Extraction of nicotine from tobacco for products such as ENDS happens largely outside India, from tobacco grown in other countries...Read More

Auto stocks slide on report GST Council unlikely to back tax cut for sector

International News

Shares of automobile companies, including auto ancillary firms, traded lower on Wednesday on report that the goods and services tax (GST) panel is unlikely to approve lowering the tax for the sector this week, as a study has warned of major revenue losses.
According to this Reuters report, a government study, attached to the agenda of a September 20 GST panel meeting, has said the total annual revenue loss could be as much as Rs 50,000 crore ($6.95 billion), if the panel decided to lower tax rates for the auto sector to 18 per cent from 28 per cent.
Another report by The Economic Times said the government body blamed the current liquidity crisis and troubles of non-bank lenders for the woes of the automobile sector.
Meanwhile, state officials in Kerala, Punjab and West Bengal say they are also opposed to any cut in tax rates in the autos sector, or even consumer goods, because of lacklustre tax collections this fiscal year.
Consequently, the Nifty Auto index dipped nearly 1 per cent on Wednesday as compared to a flat benchmark index Nifty50. Among individual stocks, Hero MotoCorp, Escorts Limited, Tata Motors, and Bosch dipped in the range of 1-2 per cent. Maruti Suzuki India slip 2.3 per cent while Ashok Leyland was down as much as 4.2 per cent on the National Stock Exchange (NSE).
The automobile industry has been facing challenges since past three quarters in terms of additional burden of new insurance policy, constraints on loan disbursement from financial institutions and higher axle load norm impacting commercial vehicle (CV) sales, say experts.

 The sector has pushed for a lowering of tax rates at the September 20 GST panel meeting, in a bid to revive vehicle demand.

RCEP: India is dangerously close to being an also-ran on trade and growth

International News

India’s government will shortly find itself at a fork in the road. Will it choose globalisation and export-oriented growth? Or will the isolationists in the ruling Bharatiya Janata Party win, and keep India out of a giant Indo-Pacific trading bloc?
This weekend, New Delhi hosted negotiators for the Regional Comprehensive Economic Partnership – from the 10 members of ASEAN as well as Australia, New Zealand, Japan, South Korea and China – in the hope that it could swing last-minute safeguards for some of its producers. Indian officials have stalled RCEP’s progress as much as they could, and the others are now losing patience. One way or another, the deal will have to be concluded by November, when the leaders of the 16 RCEP countries will meet in Bangkok. Malaysia’s Mahathir Mohammed, not a man known for patience, said in June that the other countries could go on without India, if necessary.
Many in New Delhi, even within the commerce ministry, would be relieved to see that happen. The belief that India has “lost” in most of its trade agreements is pervasive here. Influential lobbies tied to the country’s laggard producers are happy to remind officials how trade deficits soared with members of the Association of Southeast Asian Nations after a free-trade agreement was signed some years ago, for example. And there has always been a strong isolationist wing within the Hindu nationalist BJP – right-wing ideologues don’t just want India out of RCEP; they would prefer existing agreements with Japan, Korea and ASEAN be renegotiated, if not abandoned.
Of course, India can only be said to have “lost” if you ignore the considerable gains to consumers from cheaper imports. Once upon a time, Indian households had to worry constantly about high and variable prices of cooking oil....Read More

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Ravi Shankar Prasad asks Apple, Samsung to help us become e-export hub

International News
IPhone maker Apple and South Korean electronics giant Samsung should work with Indian companies to ensure this country becomes a hub of export for electronics, said Ravi Shankar Prasad, minister for this sector and for information technology.
He suggested Apple expand its manufacturing base in India and use the country as an export hub.At a long meeting with top executives from the industry, Prasad heard them on various issues and said his ministry and NITI Aayog would in the next two to three months work with them on incentives for the sector.
"Apple has started manufacturing phones in India, including components and...have started making iPhones for export...But, this is just the tip of the iceberg. I want a robust presence of Apple in India, a super-robust presence of Samsung in India, and other global companies," he said.
According to Apple, eight of its global suppliers have set up units in India. These being Sunwoda Electronic, Winstron Corporation, CCL Design (Suzhou) Co, Flex, Foxconn, Salcomp and Shenzhen YUTO Packaging Technology. Currently, Apple manufactures iPhones 6S and 7 from India.

 Among companies represented at the meeting were Vivo, Oppo, Qualcomm, Xiaomi, Dell, HP, Bosch, Cisco, Flextronics, Foxconn, Nokia, LG, Panasonic, Intel, Wistron and Sterlite Technologies. The electronics industry body, Manufacturers Association of Information Technology was also present. It recommended production-linked export incentives, leveraging India’s geo-political influence and free trade agreement influence with countries to accept Indian standards as sufficient to access other markets. Also, identification of sub-sectors where India should lead the development of standards, such as 5G, medical electronics, cyber security and data communications...Read More

A bank's race against crisis has served a warning to Indian banking

International News
India’s fragile financial system is swinging between despair and hope. Two separate incidents — both featuring the lender YES Bank Ltd — recently underscored the drag of past underwriting follies as well as the lift from a digital reset. It will take time, but good things will come to Indian banking as a result of the present crisis.
Start with the sudden default by financier Altico Capital India Ltd. on a 199.7-million-rupee ($2.8-million) interest payment to Abu Dhabi-based Mashreqbank PSC. Clearwater Capital Partners-backed Altico, which borrows money from banks and mutual funds to make loans to property developers, called the situation a “liquidity crisis.” And that made YES Bank investors gloomy.
Based on January data, the midsize Indian bank had a 4.5-billion-rupee exposure to Altico, the third-highest after Mashreq and HDFC Bank Ltd.
While HDFC Bank, the country’s most valuable lender, has the capital — and current profit — to take the occasional credit hit, YES’s capital cushion is already frayed by dodgy loans to beleaguered shadow banks and troubled tycoons. Both these borrower groups have found it hard to refinance debt since the collapse last year of IL&FS Group, a large Indian infrastructure financier and operator. Altico’s unraveling shows that an end to credit woes is not yet in sight.

 At more than $200 billion, India’s world-beating pile of bad loans is bigger than Italy’s. State-run Indian banks are carrying the bulk of the burden, but at least they’re getting dollops of taxpayers’ money and being merged into fewer banking groups. A private-sector lender like YES doesn’t have a formal public backstop. If it can’t fend for itself, the central bank could step in and force an arranged match with a better-run bank. The terms won’t be favorable to Yes shareholders...Read More

Apollo Hospitals to seek shareholders' nod for hiving off pharmacy biz

International News

Apollo Hospitals Enterprise Ltd (AHEL) will convene a meeting of equity shareholders on October 21, based on the orders from National Company Law Tribunal (NCLT), for the approval of a scheme of arrangement to transfer the front end of its pharmacy business to a separate company called Apollo Pharmacies Ltd (APL).
APL is expected focus on the goal of achieving Rs 10,000 crore in revenues and 30 per cent combined Return On Capital Employed (ROCE) for the standalone pharmacy business in five years.
Currently, AHEL holds 100 per cent of the equity share capital of Apollo Medicals Private Limited (AMPL), which in turn holds all the equity shares in APL. Once the Scheme of Arrangement is implemented, AHEL’s shareholding in AMPL would be diluted to 25.5 per cent of the share capital of AMPL with while the rest of the stake would be with other Investors of AMPL. This include Jhelum Investment Fund I (19.9 per cent shareholding), Hemandra Kothari (9.9 per cent) and ENAM Securities Private Limited (44.7 per cent) of AMPL, which would in turn hold 100 per cent equity share capital of APL.
AHEL would be the exclusive supplier for APL under a long-term supply agreement and further would also enter into a Brand Licensing Agreement with APL to licence the “Apollo Pharmacy” brand to the front end stores and online pharmacy operations, to further augment and strengthen the brand, with these arrangements. APL will pay a lump sum of Rs 527.8 crore to AHEL in the form of cash through normal banking channels, once the Scheme comes into effect.

 "Apollo Pharmacy today has grown from 170 outlets in FY05 to 3,428 outlets as of March 31, 2019, in 400 cities/towns spread over 20 states and 4 Union territories and is currently serving about 300,000 customers daily through dedicated employee strength of about 21,000 plus...Read More

Motorola's Moto E6s with dual rear cameras to launch today; details here

International News

Chinese information technology company Lenovo-owned Motorola is set to launch the Moto E6s smartphone on Monday at 1 PM. Like other series under the Moto branding, the E-series has not been upgraded with a new smartphone launch in a long time.
Therefore, the launch of the Moto E6s is crucial for the company, which is looking to resurrect its identity in the budget smartphone segment it once dominated.
According to phone’s listing page on Flipkart, the Moto E6s will boast dual rear cameras, featuring a 13-megapixel primary sensor mated with a 2MP depth sensor for bokeh effect and portrait shots. The phone would come in 64GB internal storage and 4GB RAM configuration. It would sport a 6.1-inch screen of an HD+ resolution stretched in a tall 19.5:9 aspect ratio.
The screen will feature a waterdrop-shaped notch on top to accommodate the phone’s selfie camera. The phone is expected to have a capacitive fingerprint sensor on the back with a Moto icon embossed on it.
Additionally, the phone is expected to be powered by an octa-core MediaTek processor. It will boot Android Pie operating system with some customisations layered on top for value addition features.

 The phone is expected to be powered by a 3,000 mAh battery. It would have a dual SIM card slot with a hybrid secondary SIM slot for storage expansion (up to 512GB).

Karti Chidambaram pens letter to father on birthday; takes dig at BJP govt

International News

On the 74th birthday of former finance minister P Chidambaram, his son Karti wrote a letter to him, mostly taking a dig at the Bharatiya Janata Party (BJP) government at the Centre and Prime Minister Narendra Modi. In his letter, Karti criticised the government and its ministers, citing various recent events.
At the beginning of the letter, Karti wished his father and said that "no 56!!! can stop you", a clear jibe at PM Modi. He said the family would have been glad to celebrate the birthday at home, and added "turning 74 is nothing compared to turning 100 days old". (The BJP government just completed 100 days in office).
P Chidambaram now has access to newspapers and limited television in the prison. Karti, through his letter, got him up to speed with the recent events that his father missed due to unavailability of mass media. He informed that Chandrayaan-2 failed to soft-land on the moon. He wrote that PM Modi took the opportunity to console K Sivan, the chief of the Indian Space Research Organisation (Isro) which according to him was more of theatrics. Karti mentioned Piyush Goyal's 'Einstein and gravity' gaffe too.
He wrote that the government had been celebrating its 100 days in office which was nothing more than celebration of failures.
He informed P Chidambaram about the failing economy, car sale slump, Sensex hitting new lows, and more such events.

 He talked about the plight of the people of Kashmir after the abrogation of Article 370 and said that he was better off than them despite being in jail. He said that the BJP government had been trying to celebrate a bad patch of their tenure and they could not have found a better time to silence him...Read More

Iron ore prices may decline to $60 on weak Chinese demand, says JSW Steel

International News

JSW Steel Ltd., India’s most valuable steel producer, is predicting declines for iron ore next year as demand from biggest consumer China eases and supplies recover.
Prices may trade between $80 and $85 a ton for the rest of 2019 before sliding to $60 to $65 next year, Seshagiri Rao, joint managing director of the Mumbai-based mill, said. The key steel-making raw material has benefited from “speculation” and there is no reason why ore should be trading at elevated levels of about $95, he said.
“Gradually we are seeing some moderation” in steel production globally and “once the crude steel production comes down, including in China, then automatically the demand for raw material should come down,” he said in an interview Thursday. “Whatever disruptions we have seen in supplies are slowly, gradually normalizing.”
Iron ore has had a volatile year. It surged in the first half, triggered by supply disruptions in Brazil and Australia, and plunged in August as output recovered and global growth slowed. It is staging a revival this month, pushing back toward $100 a ton, on speculation that Chinese demand is holding up and there may be more mainland stimulus in the works.
Iron ore prices are moving in a completely different direction to other materials such as scrap, coking and thermal coal, and electrodes, which are declining and are more reflective of ebbing demand from the steel industry at present, Rao said.

 JSW imported between 6 million and 8 million tons of iron ore in the year ended April, he said. That works out to about as much as two-thirds of India’s total iron ore imports, which jumped 47 per cent to 12.8 million tons last year...Read More

Why are 65-year-olds learning how to program software in aging Singapore?

International News

Most 65-year-olds would be looking to wind down their careers as they hit retirement.
But in Singapore, which has one of the highest life expectancies in the world at nearly 85 years and where the government soon plans to raise the retirement age, workers are being pushed to learn new skills to stay productive.
Valerie Yeong-Tan, who’s worked for 47 years at Singapore Telecommunications Ltd., is one such example. She’s an administrator in the human resources department with no prior programming knowledge, but was recently persuaded to take bot-building courses to improve her skills.
“Learning is a lifelong process, and I want to keep my mind active,” the 65-year-old said in an interview at a new Singtel office in Singapore, where it will conduct training. “I also hope to encourage and inspire the younger generation of workers, and show them that you can learn new skills no matter how far you are in your career.”
Yeong-Tan attended a four-day Bot Maker Training course and a two-day Bot Maker Hackathon, both organized by Singtel, where the basic programming terminology was alien to her. Now she uses her new-found skills to automate work processes like doing reports, drafting budgets and other repetitive tasks, saving her hours in her day.In Singapore, where productivity is falling as the labor force gets older, workers are being encouraged to adopt new skills for a digital world.

 Government agencies like Workforce Singapore and SkillsFuture Singapore run a number of programs to help workers reskill and find jobs. Last year, 431,000 Singaporeans made use of the SkillsFuture Credit ...Read More

In UP, income tax for CM and ministers is paid by the treasury, since 1981

International News
The Uttar Pradesh state government exchequer has been paying the income tax of all the chief ministers and ministers since 1981, reports Times of India. A law, Uttar Pradesh Ministers' Salaries, Allowances and Miscellaneous Act 1981, passed by then Chief Minister VP Singh, stated that since the ministers were poor and had meagre salaries and could not afford to pay the tax. It should be noted that UP is one of the poorest states in India.
Since then UP had 19 Chief Ministers and over 1,000 minsters.
A section of the Act says, “Every minister and minister of state shall be entitled, throughout term of his office, to a salary of one thousand rupees per month. Every deputy minister shall be entitled, throughout the term of his office, to a salary of six hundred and fifty rupees per month. "The salary referred to in sub-sections (1) and (2) shall be exclusive of the tax payable in respect of such salary (including perquisites) under any law relating to income tax for the time being in force, and such tax shall be borne by the state government.”
The list of chief ministers who have had the UP treasury pay their tax includes Kalyan Singh and Rajnath Singh of the Bharatiya Janata Party, Mulayam Singh Yadav and Akhilesh Yadav of the Samajwadi Party, Mayawati of Bahujan Samaj Party, and the incumbent Yogi Adityanath.

 In the current financial year, the income tax bill of Adityanath and his council of ministers was around Rs 86 lakh and was paid from the state treasury. UP principal secretary (finance) Sanjiv Mittal, confirmed as much to Times of India.

IMF says India's growth 'much weaker' than expected; cuts FY20 projection

International News
International Monetary Fund (IMF) on Thursday said that India's economic growth is "much weaker" than expected due to corporate and environmental regulatory uncertainty and "lingering weakness" in some non-Bank financial companies.
"Again, we will have a fresh set of numbers coming up but the recent economic growth in India is much weaker than expected, mainly due to corporate and environmental regulatory uncertainty and lingering weakness in some non-Bank financial companies and risks to the outlook are tilted to the downside, as we like to say," IMF spokesman Gerry Rice told reporters at a news conference.
The economic growth slowed to a seven-year low to 5 per cent in April to June quarter from 8 per cent a year ago, as per the government data.
The International Monetary Fund (IMF) has cut its projection for India's economic growth by 0.3 percentage points to 7 per cent for the fiscal year 2019-20 owing to the "weaker-than-expected outlook" for the domestic demand.
The growth is expected to rise to 7.2 per cent points in FY21, down by the projected growth rate of 7.5 in the earlier report.
The slowdown was largely due to a sharp dip in the manufacturing sector and agriculture output, said the Ministry of Statistics and Programme Implementation in a statement.

 The previous low was recorded at 4.9 per cent in April to June 2012-13. Consumer demand and private investment have weakened amid global trade frictions and dampening business sentiment.

Yahoo Japan aims to buy control of online fashion retailer Zozo for $3.7 bn

International News

Yahoo Japan Corp said on Thursday it aims to buy 50.1% in online fashion retailer Zozo Inc for about 400 billion yen ($3.70 billion), joining forces to better compete with rivals such as Amazon.com Inc and Rakuten Inc.
Zozo founder Yusaku Maezawa will sell around 30% of the retailer in a tender offer to Yahoo Japan, leaving him with a stake of about 6%, and step down as CEO of the company, which has struggled following a series of botched initiatives by the flamboyant billionaire.
Yahoo Japan's offer price of 2,620 yen per share is a premium of around 21% compared to Wednesday's undisturbed closing price. Zozo shares jumped as much 19% in early Tokyo trading with Yahoo Japan shares up around 4%.
Zozo has a market value of around 680 billion yen, according to Refinitiv data. The deal would give Maezawa a windfall or around $2.3 billion.
"I will entrust Zozo to a new president and take my own path," Maezawa said in a Twitter post.
The entrepreneur has generated attention for his flashy lifestyle, including paying $110 million for a Jean-Michel Basquiat painting and signing up as the first private passenger to be taken around the moon by Elon Musk's SpaceX.
However, Maezawa has recently sold part of his extensive art collection, saying he has no money.

 His company, which runs the Zozotown online mall, has been struggling. In the last financial year it booked its first annual drop in earnings due to a failed experiment with bespoke tailoring and clashes with fashion brands over discounting.Yahoo Japan is a consolidated subsidiary of telco SoftBank Corp, which in turn is controlled by tech conglomerate SoftBank Group Corp.

Uber braces for fight as California wants it to treat drivers as employees

International News

Uber Technologies Inc. has generated billions of dollars from the labor of its drivers without the expense of treating them as employees. California is poised to disrupt that business model, and the ride-hailing behemoth is gearing up for a legal fight.
Lawmakers in the state want to reclassify workers treated as independent contractors, which may dramatically boost costs for Uber and other companies built around the gig economy. Under Assembly Bill 5, which has cleared both houses of the California Legislature, many workers would be entitled to a minimum wage, mileage reimbursement and workers compensation.
Proponents say the bill, which has the support of Governor Gavin Newsom, will bring a groundbreaking shift to finally give workers their due. Uber and its allies say that if the bill becomes law, it may not meaningfully change the business model because there are still questions about which workers qualify.
“AB 5 doesn’t all of a sudden -- magic wand -- change everybody’s status to employee,” said Tony West, Uber’s general counsel. Instead, new criteria would be used to determine whether workers are employees or contractors, he said. “Now, whether or not we win under that test in California remains to be seen,” West said.

 Skeptics say Uber may be too optimistic. While it’s used arbitration, litigation and settlements to thwart drivers’ attempts so far to be classified as employees, AB 5 could pose a significant risk to the company, especially if similar measures are adopted in other parts of the US, legal experts, academics and financial analysts say.Uber is “whistling past the graveyard” if it underestimates how much AB 5 would favor drivers, said Jason Lohr, an employment lawyer in Uber’s hometown of San Francisco...Read More