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

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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.