Anatoly Legkodymov, the co-founder and majority owner of the Hong Kong-registered virtual currency exchange Bitzlato, pleaded guilty in a U.S. court to operating a money-transmitting business that processed approximately $700 million in illicit funds. &nbsp;

According to Reuters, the guilty plea, entered before U.S. District Judge Eric Vitaliano in Brooklyn, was part of a deal where Legkodymov agreed to forfeit $23 million in assets. The case, brought by U.S. authorities, sheds light on the alleged criminal activities within Bitzlato, a platform that has recently come under scrutiny.

In court, Legkodymov, a 41-year-old Russian national, admitted to being aware that some Bitzlato clients had used the platform to transfer cryptocurrency derived from illicit activities. He specifically acknowledged the presence of ransomware proceeds from Hydra Market on Bitzlato. &nbsp;

Hydra Market, described by prosecutors as an online marketplace involved in drugs, stolen financial information, and money laundering services, was shut down by U.S. and German law enforcement in April 2022. Breon Peace, the top federal prosecutor in Brooklyn, highlighted that Legkodymov knew Bitzlato was being utilised as an "open turnstile by criminals". &nbsp;

Bitzlato's website no longer functions, as it has been seized by French authorities as part of an international law enforcement operation. Legkodymov's guilty plea is the latest development in the U.S. law enforcement's ongoing efforts to combat fraud and illicit finance in the cryptocurrency markets. &nbsp;

FTX founder Sam Bankman-Fried recently faced conviction on charges of stealing billions, and Binance, a top counterparty of Bitzlato, settled for $4.3 billion, with its CEO pleading guilty to violating U.S. anti-money laundering laws.

An important detail revealed in the case is that Binance was among Bitzlato's significant counterparties, as per U.S. authorities. The interconnection between these major cryptocurrency exchanges raises questions about the broader implications and interconnected nature of illicit financial activities within the crypto sphere. Bitzlato's downfall adds to the recent legal troubles faced by prominent figures in the cryptocurrency industry.

Legkodymov, who ran Bitzlato from Shenzhen, could face up to five years in prison pending his sentencing. The sentencing date has not been set. He has been in custody since his arrest in Miami on January 17 and has been held at the Metropolitan Detention Centre in Brooklyn.

Russia's embassy in Washington had called for Legkodymov's release in April, emphasising diplomatic tensions surrounding his detention. However, the U.S. State Department revealed on Tuesday that Russia rejected a recent proposal for the release of two Americans, including Wall Street Journal reporter Evan Gershkovich, considered to be wrongfully detained in Russia.

(With inputs from Reuters)

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Anatoly Legkodymov, the co-founder and majority owner of the Hong Kong-registered virtual currency exchange Bitzlato, pleaded guilty in a U.S. court to operating a money-transmitting business that processed approximately $700 million in illicit funds.

Anatoly Legkodymov, the co-founder and majority owner of the Hong Kong-registered virtual currency exchange Bitzlato, pleaded guilty in a U.S. court to operating a money-transmitting business that processed approximately $700 million in illicit funds. According to Reuters, the guilty plea, entered before U.S. District Judge Eric Vitaliano in Brooklyn, was part of a deal where Legkodymov agreed to forfeit $23 million in assets. The case, brought by U.S. authorities, sheds light on the alleged criminal activities within Bitzlato, a platform that has recently come under scrutiny. In court, Legkodymov, a 41-year-old Russian national, admitted to being aware that some Bitzlato clients had used the platform to transfer cryptocurrency derived from illicit activities. He specifically acknowledged the presence of ransomware proceeds from Hydra Market on Bitzlato. Hydra Market, described by prosecutors as an online marketplace involved in drugs, stolen financial information, and money laundering services, was shut down by U.S. and German law enforcement in April 2022. Breon Peace, the top federal prosecutor in Brooklyn, highlighted that Legkodymov knew Bitzlato was being utilised as an "open turnstile by criminals". Bitzlato's website no longer functions, as it has been seized by French authorities as part of an international law enforcement operation. Legkodymov's guilty plea is the latest development in the U.S. law enforcement's ongoing efforts to combat fraud and illicit finance in the cryptocurrency markets. FTX founder Sam Bankman-Fried recently faced conviction on charges of stealing billions, and Binance, a top counterparty of Bitzlato, settled for $4.3 billion, with its CEO pleading guilty to violating U.S. anti-money laundering laws. An important detail revealed in the case is that Binance was among Bitzlato's significant counterparties, as per U.S. authorities. The interconnection between these major cryptocurrency exchanges raises questions about the broader implications and interconnected nature of illicit financial activities within the crypto sphere. Bitzlato's downfall adds to the recent legal troubles faced by prominent figures in the cryptocurrency industry. Legkodymov, who ran Bitzlato from Shenzhen, could face up to five years in prison pending his sentencing. The sentencing date has not been set. He has been in custody since his arrest in Miami on January 17 and has been held at the Metropolitan Detention Centre in Brooklyn. Russia's embassy in Washington had called for Legkodymov's release in April, emphasising diplomatic tensions surrounding his detention. However, the U.S. State Department revealed on Tuesday that Russia rejected a recent proposal for the release of two Americans, including Wall Street Journal reporter Evan Gershkovich, considered to be wrongfully detained in Russia. (With inputs from Reuters) WATCH WION LIVE HERE

Russian co-founder of crypto exchange Bitzlato pleads guilty to money laundering charges 

Taiwan-based manufacturing giants, Foxconn and Pegatron, have temporarily halted the production of Apple iPhones at their factories near Chennai in southern India due to the adverse impact of heavy rains, Reuters reported citing sources familiar with the matter.<o:p></o:p>

The city of Chennai in India's Tamil Nadu state, a major electronics and manufacturing hub, is experiencing&nbsp;severe flooding amid heavy rains, leading to the shutdown of the airport and disrupting regular operations. <o:p></o:p>

The extreme weather conditions are attributed to Cyclone Michaung, which is progressing down the coast towards the neighbouring state of Andhra Pradesh.<o:p></o:p>

"Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday," revealed two sources familiar with the situation. <o:p></o:p>

Foxconn has been actively expanding its presence in India, investing in manufacturing locations in the southern part of the country as part of Apple's strategy to diversify production away from China.<o:p></o:p>

In the quarter ending September, Apple witnessed its highest-ever quarterly shipments from India, exceeding 2.5 million units, as per data from market analytics firm Counterpoint Research.<o:p></o:p>

However, the current disruption in production raises concerns about the potential impact on Apple's supply chain and its ability to meet market demands.<o:p></o:p>

This isn't the first time Pegatron has faced production disruptions in recent months. The company had to temporarily cease iPhone assembly in September due to a fire incident at its factory.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

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Taiwan-based manufacturing giants, Foxconn and Pegatron, have temporarily halted the production of Apple iPhones at their factories near Chennai in southern India due to the adverse impact of heavy rains, Reuters reported citing sources familiar with the matter.

Taiwan-based manufacturing giants, Foxconn and Pegatron, have temporarily halted the production of Apple iPhones at their factories near Chennai in southern India due to the adverse impact of heavy rains, Reuters reported citing sources familiar with the matter. The city of Chennai in India's Tamil Nadu state, a major electronics and manufacturing hub, is experiencing severe flooding amid heavy rains, leading to the shutdown of the airport and disrupting regular operations. The extreme weather conditions are attributed to Cyclone Michaung, which is progressing down the coast towards the neighbouring state of Andhra Pradesh. "Foxconn, which employs about 35,000 people at its Tamil Nadu iPhone factory, has yet to decide whether to resume production on Tuesday," revealed two sources familiar with the situation. Foxconn has been actively expanding its presence in India, investing in manufacturing locations in the southern part of the country as part of Apple's strategy to diversify production away from China. In the quarter ending September, Apple witnessed its highest-ever quarterly shipments from India, exceeding 2.5 million units, as per data from market analytics firm Counterpoint Research. However, the current disruption in production raises concerns about the potential impact on Apple's supply chain and its ability to meet market demands. This isn't the first time Pegatron has faced production disruptions in recent months. The company had to temporarily cease iPhone assembly in September due to a fire incident at its factory. (With inputs from Reuters) WATCH WION LIVE HERE

Extreme weather halts iPhone production in India: Foxconn & Pegatron face disruptions

Israeli authorities are delving into allegations raised by U.S. researchers, indicating that certain investors might have possessed foresight&nbsp;of a Hamas plan to attack Israel on October 7, Reuters reported on Monday.<o:p></o:p>

The researchers, law professors Robert Jackson Jr from New York University and Joshua Mitts of Columbia University, uncovered substantial short-selling of shares leading up to the attacks, which has ignited the ongoing conflict.<o:p></o:p>

Signals of anticipation<o:p></o:p>

Days preceding the attack, traders seemingly anticipated the unfolding events, as outlined by the researchers. They noted a surge in short interest in the MSCI Israel Exchange Traded Fund (ETF) on October 2, based on data from the Financial Industry Regulatory Authority (FINRA). Furthermore, just before the attack, short selling of Israeli securities on the Tel Aviv Stock Exchange (TASE) notably surged. <o:p></o:p>

The researchers highlighted the unprecedented nature of this short-selling, surpassing levels observed during other periods of crisis, including the 2008 financial crisis, the 2014 Israel-Gaza war, and the COVID-19 pandemic.<o:p></o:p>

Israeli response and ongoing investigation<o:p></o:p>

In response to these findings, the Tel Aviv Stock Exchange (TASE) redirected inquiries to the Israel Securities Authority, stating, "The matter is known to the authority and is under investigation by all the relevant parties." The Israel Securities Authority confirmed the investigation but provided no further details. Israeli police did not immediately comment on the matter.<o:p></o:p>

Profits and unusual trading activity<o:p></o:p>

The researchers brought to light the profits reaped through short-selling, particularly focusing on Leumi, Israel's largest bank. Between September 14 and October 5, 4.43 million new shares sold short yielded profits of 3.2 billion shekels ($862 million). It was further pointed out that a sharp and unusual increase in trading risky short-dated options on Israeli companies took place just before the attacks, emphasising the potential exploitation of tragic events by informed traders. <o:p></o:p>

The study indicates a pattern reminiscent of early April when initial reports suggested Hamas was planning an attack. Short volume in the MSCI Israel ETF peaked on April 3, resembling patterns observed just before the October 7 attacks.<o:p></o:p>

Traders profiting from tragic events<o:p></o:p>

The researchers concluded that traders informed about the impending attacks profited from the tragic events, highlighting a concerning gap in U.S. and international enforcement of legal prohibitions on informed trading.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

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Israeli authorities are delving into allegations raised by U.S. researchers, indicating that certain investors might have possessed foresight of a Hamas plan to attack Israel on October 7, Reuters reported on Monday.

Israeli authorities are delving into allegations raised by U.S. researchers, indicating that certain investors might have possessed foresight of a Hamas plan to attack Israel on October 7, Reuters reported on Monday. The researchers, law professors Robert Jackson Jr from New York University and Joshua Mitts of Columbia University, uncovered substantial short-selling of shares leading up to the attacks, which has ignited the ongoing conflict. Signals of anticipation Days preceding the attack, traders seemingly anticipated the unfolding events, as outlined by the researchers. They noted a surge in short interest in the MSCI Israel Exchange Traded Fund (ETF) on October 2, based on data from the Financial Industry Regulatory Authority (FINRA). Furthermore, just before the attack, short selling of Israeli securities on the Tel Aviv Stock Exchange (TASE) notably surged. The researchers highlighted the unprecedented nature of this short-selling, surpassing levels observed during other periods of crisis, including the 2008 financial crisis, the 2014 Israel-Gaza war, and the COVID-19 pandemic. Israeli response and ongoing investigation In response to these findings, the Tel Aviv Stock Exchange (TASE) redirected inquiries to the Israel Securities Authority, stating, "The matter is known to the authority and is under investigation by all the relevant parties." The Israel Securities Authority confirmed the investigation but provided no further details. Israeli police did not immediately comment on the matter. Profits and unusual trading activity The researchers brought to light the profits reaped through short-selling, particularly focusing on Leumi, Israel's largest bank. Between September 14 and October 5, 4.43 million new shares sold short yielded profits of 3.2 billion shekels ($862 million). It was further pointed out that a sharp and unusual increase in trading risky short-dated options on Israeli companies took place just before the attacks, emphasising the potential exploitation of tragic events by informed traders. The study indicates a pattern reminiscent of early April when initial reports suggested Hamas was planning an attack. Short volume in the MSCI Israel ETF peaked on April 3, resembling patterns observed just before the October 7 attacks. Traders profiting from tragic events The researchers concluded that traders informed about the impending attacks profited from the tragic events, highlighting a concerning gap in U.S. and international enforcement of legal prohibitions on informed trading. (With inputs from Reuters) WATCH WION LIVE HERE

Israeli authorities probe suspected insider trading linked to Hamas attack

In a stark manifestation of the deepening economic and financial decoupling between Taiwan and China, the world's largest Chinese bond exchange-traded fund (ETF) market is on the brink of collapse. &nbsp;

According to Bloomberg, this rupture highlights the widening gap in relations fuelled by geopolitical tensions, de-risking of supply chains, and China's economic slowdown. Despite the impending critical presidential election in January, the trend of decoupling, from markets to finance and investments, is expected to persist.

ETF Meltdown: A 94 per cent plunge in Chinese bond assets

Taiwanese ETFs tracking Chinese bonds, once valued at over $58 billion in 2019, have witnessed a staggering 94 per cent decline in total assets under management as of early this month. &nbsp;

The nosedive reflects a broader global trend where funds are fleeing China's bond market due to significant yield differentials with the US. This financial rift mirrors Taiwan's pivotal role in US-China geopolitics, making the outcome of the upcoming election crucial as voters decide between maintaining political independence or seeking closer ties with Beijing.

Changing Dynamics: From promising yields to regulatory shifts

The local market for investing in China-linked fixed-income securities in Taiwan, introduced five years ago, once thrived. Driven by promising yields for yuan-denominated bonds and the credibility of the Chinese government and policy banks as debtors, it faced a turning point with widening US-China yields. &nbsp;

Furthermore, stringent Taiwanese government regulations, requiring insurers to hold at least a BBB- rating, rendered it impossible for them to invest in China-backed ETFs. KGI Securities notes that until these restrictions ease, Taiwanese life insurance firms would need credit ratings from major global agencies to re-enter the market.

Financial Exodus: Taiwanese banks scale back in China

Taiwanese banks have been steadily reducing their financial footprint in China, with exposure to the world's second-largest economy hitting record lows. This withdrawal aligns with a global trend known as "China+1," where firms diversify and set up operations in other regions to manage supply chain risks. &nbsp;

Taiwanese firms, including Cathay United Bank and Fubon Financial Holding, are adjusting their strategies, expanding in Southeast Asia and capping positions in China, respectively.

Investment Slump: Cross-Strait tensions take a toll

Taiwanese direct investment into China has plummeted nearly 40 per cent in the first ten months of this year compared to 2022, poised for the sharpest year-on-year decline since 2019. Increased cross-strait tensions, ongoing US-China trade disputes, and the geopolitical landscape contribute to this significant drop. Analysts believe that even if a Beijing-friendly candidate were to replace President Tsai, the trend of looser ties in terms of foreign direct investment (FDI) and visitor flows is likely to persist.

China's share in Taiwan's exports shrinks

China and Hong Kong's share in Taiwan's total overseas shipments has decreased from 44 per cent in 2020 to 35 per cent in the first ten months of 2023. This shift is attributed to a decline in goods sent from Taiwan to China across various categories. &nbsp;

Rising wages, reduced local subsidies, and geopolitical strains, including Washington's export bans on Beijing, contribute to the diminishing attractiveness of China as a manufacturing hub.

(With inputs from Bloomberg)

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In a stark manifestation of the deepening economic and financial decoupling between Taiwan and China, the world's largest Chinese bond exchange-traded fund (ETF) market is on the brink of collapse.

In a stark manifestation of the deepening economic and financial decoupling between Taiwan and China, the world's largest Chinese bond exchange-traded fund (ETF) market is on the brink of collapse. According to Bloomberg, this rupture highlights the widening gap in relations fuelled by geopolitical tensions, de-risking of supply chains, and China's economic slowdown. Despite the impending critical presidential election in January, the trend of decoupling, from markets to finance and investments, is expected to persist. ETF Meltdown: A 94 per cent plunge in Chinese bond assets Taiwanese ETFs tracking Chinese bonds, once valued at over $58 billion in 2019, have witnessed a staggering 94 per cent decline in total assets under management as of early this month. The nosedive reflects a broader global trend where funds are fleeing China's bond market due to significant yield differentials with the US. This financial rift mirrors Taiwan's pivotal role in US-China geopolitics, making the outcome of the upcoming election crucial as voters decide between maintaining political independence or seeking closer ties with Beijing. Changing Dynamics: From promising yields to regulatory shifts The local market for investing in China-linked fixed-income securities in Taiwan, introduced five years ago, once thrived. Driven by promising yields for yuan-denominated bonds and the credibility of the Chinese government and policy banks as debtors, it faced a turning point with widening US-China yields. Furthermore, stringent Taiwanese government regulations, requiring insurers to hold at least a BBB- rating, rendered it impossible for them to invest in China-backed ETFs. KGI Securities notes that until these restrictions ease, Taiwanese life insurance firms would need credit ratings from major global agencies to re-enter the market. Financial Exodus: Taiwanese banks scale back in China Taiwanese banks have been steadily reducing their financial footprint in China, with exposure to the world's second-largest economy hitting record lows. This withdrawal aligns with a global trend known as "China+1," where firms diversify and set up operations in other regions to manage supply chain risks. Taiwanese firms, including Cathay United Bank and Fubon Financial Holding, are adjusting their strategies, expanding in Southeast Asia and capping positions in China, respectively. Investment Slump: Cross-Strait tensions take a toll Taiwanese direct investment into China has plummeted nearly 40 per cent in the first ten months of this year compared to 2022, poised for the sharpest year-on-year decline since 2019. Increased cross-strait tensions, ongoing US-China trade disputes, and the geopolitical landscape contribute to this significant drop. Analysts believe that even if a Beijing-friendly candidate were to replace President Tsai, the trend of looser ties in terms of foreign direct investment (FDI) and visitor flows is likely to persist. China's share in Taiwan's exports shrinks China and Hong Kong's share in Taiwan's total overseas shipments has decreased from 44 per cent in 2020 to 35 per cent in the first ten months of 2023. This shift is attributed to a decline in goods sent from Taiwan to China across various categories. Rising wages, reduced local subsidies, and geopolitical strains, including Washington's export bans on Beijing, contribute to the diminishing attractiveness of China as a manufacturing hub. (With inputs from Bloomberg) WATCH WION LIVE HERE

Taiwan's financial ties with China unravel as ETF market nears collapse

After facing mounting pressure to address record net migration figures, UK Prime Minister Rishi Sunak announced a series of stringent measures to curtail the influx of migrants arriving by legal routes. <o:p></o:p>

According to Reuters, the move comes in response to the staggering annual net migration figure of 745,000 in 2022, with concerns raised about the impact on various sectors, including healthcare, and the persistently tight labour market. <o:p></o:p>

Sunak emphasised the need for "radical action" to bring down immigration levels.<o:p></o:p>

Salient measures to reduce migration<o:p></o:p>

The proposed measures include a significant increase in the minimum salary threshold for foreign skilled workers, raising it to £38,700 (approximately $49,000) from the current £26,200 ($33,000). Notably, health and social workers would be exempted from this adjustment. <o:p></o:p>

Home Secretary James Cleverly said that these measures could potentially reduce net migration by 300,000. The government also intends to halt foreign health workers from bringing in family members on their visas, increase the surcharge migrants pay for using the health service by 66 per cent, and elevate the minimum income requirement for family visas.<o:p></o:p>

Impact on businesses and trade unions<o:p></o:p>

While the government asserts that these measures aim to prioritise British workers and prevent immigration from undercutting their salaries, businesses and trade unions have voiced concerns. Critics argue that the reforms could exacerbate labour shortages, particularly in sectors already grappling with recruitment challenges. <o:p></o:p>

The proposed abolition of the shortage occupations list, a vital route for businesses to hire migrant workers in sectors facing severe staff shortages, has sparked further debate. Trade unions, including UNISON, the primary health sector union, warn of a "total disaster" for the health service, predicting that migrants might opt for more welcoming countries.<o:p></o:p>

Challenges and scepticism<o:p></o:p>

Despite the government's intent to address concerns about immigration, scepticism prevails. Some studies suggest that foreign workers have minimal impact on overall wage and employment levels. The acute shortage of candidates to fill vacancies remains a significant challenge for businesses. <o:p></o:p>

Kate Nicholls, the Chief Executive of trade body, UKHospitality, expressed the need for developing an immigration system that caters to business needs and the labour market. The Bank of England acknowledged persistent skills shortages in certain sectors, even as hiring becomes slightly more manageable.<o:p></o:p>

Controversial moves and future outlook<o:p></o:p>

As the UK embarks on this immigration overhaul, controversies loom, particularly regarding the potential fallout for businesses and essential services like healthcare. The government's pledge to review the list of shortage occupations and eliminate the practice of paying migrants less than the going rate for jobs with labour shortages adds another layer to the unfolding reforms. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

<iframeamp;muteaccelerometer; autoplay=""></iframeamp;muteaccelerometer;>

After facing mounting pressure to address record net migration figures, UK Prime Minister Rishi Sunak announced a series of stringent measures to curtail the influx of migrants arriving by legal routes.

After facing mounting pressure to address record net migration figures, UK Prime Minister Rishi Sunak announced a series of stringent measures to curtail the influx of migrants arriving by legal routes. According to Reuters, the move comes in response to the staggering annual net migration figure of 745,000 in 2022, with concerns raised about the impact on various sectors, including healthcare, and the persistently tight labour market. Sunak emphasised the need for "radical action" to bring down immigration levels. Salient measures to reduce migration The proposed measures include a significant increase in the minimum salary threshold for foreign skilled workers, raising it to £38,700 (approximately $49,000) from the current £26,200 ($33,000). Notably, health and social workers would be exempted from this adjustment. Home Secretary James Cleverly said that these measures could potentially reduce net migration by 300,000. The government also intends to halt foreign health workers from bringing in family members on their visas, increase the surcharge migrants pay for using the health service by 66 per cent, and elevate the minimum income requirement for family visas. Impact on businesses and trade unions While the government asserts that these measures aim to prioritise British workers and prevent immigration from undercutting their salaries, businesses and trade unions have voiced concerns. Critics argue that the reforms could exacerbate labour shortages, particularly in sectors already grappling with recruitment challenges. The proposed abolition of the shortage occupations list, a vital route for businesses to hire migrant workers in sectors facing severe staff shortages, has sparked further debate. Trade unions, including UNISON, the primary health sector union, warn of a "total disaster" for the health service, predicting that migrants might opt for more welcoming countries. Challenges and scepticism Despite the government's intent to address concerns about immigration, scepticism prevails. Some studies suggest that foreign workers have minimal impact on overall wage and employment levels. The acute shortage of candidates to fill vacancies remains a significant challenge for businesses. Kate Nicholls, the Chief Executive of trade body, UKHospitality, expressed the need for developing an immigration system that caters to business needs and the labour market. The Bank of England acknowledged persistent skills shortages in certain sectors, even as hiring becomes slightly more manageable. Controversial moves and future outlook As the UK embarks on this immigration overhaul, controversies loom, particularly regarding the potential fallout for businesses and essential services like healthcare. The government's pledge to review the list of shortage occupations and eliminate the practice of paying migrants less than the going rate for jobs with labour shortages adds another layer to the unfolding reforms. (With inputs from Reuters)

UK discloses immigration reforms: Stricter visas aim to curb soaring migration

Investors in US tech giant Dell are questioning the soaring 90 per cent rally in the stock, wondering if the high price justifies growth that has yet to materialise. According to a Bloomberg report, the surge, propelling the personal computer giant's shares to a record high by the end of November, was driven by optimistic expectations of a boost from artificial intelligence (AI) demand. &nbsp;

However, Dell's recent third-quarter report revealed that the much-anticipated AI growth is not on the immediate horizon, prompting cautious sentiments among investors.

The stock, currently trading above its five-year average at about 10 times forward earnings, has encountered headwinds as Dell’s third-quarter results indicated that the expected AI boost is not imminent. &nbsp;

Bloomberg cited analysts, like Hendi Susanto from Gabelli Funds, who are adopting a patient approach, stating, “We are waiting to seek a better entry point.” &nbsp;

Susanto further acknowledged the run-up in the stock and emphasised the need for caution in light of the uncertain AI growth prospects.

Mixed signals from Dell’s second quarter report

Dell initially fuelled optimism in August when it surpassed sales expectations in the second quarter and expressed confidence in the long-term potential of servers supporting AI workloads. However, the recent third-quarter results painted a different picture. While Dell recorded $500 million in revenue from high-powered servers, this was insufficient to offset the decline in PC sales. &nbsp;

Morningstar’s William Kerwin, who downgraded Dell to a sell rating in September, warned that the stock is overvalued at current levels, echoing concerns about the company’s ability to navigate challenges in the PC and server/storage markets.

Barclays analysts, led by Tim Long, joined the chorus of scepticism, downgrading Dell shares to a sell-equivalent rating in September. They attributed the downgrade to macroeconomic pressures, anticipating difficulty in the PC and server/storage markets that AI might struggle to offset.

Future growth hinges on AI-Based devices

Daniel Newman, CEO of The Futurum Group, emphasised the crucial role AI-based devices will play in Dell's future growth. “Growth in this area will require a cycle when people are upgrading because AI enables them to do something new on the device,” Bloomberg quoted Newman as saying. He believes that genuine growth won't materialise until AI-based PCs and phones enter the market. However, he predicts this may not happen until the latter half of 2024.

Current consensus projections indicate that Dell's sales will decrease to roughly $21 billion in the fiscal first quarter of 2025 before increasing to approximately $23 billion in the second quarter and continuing to rise through the end of the year. Despite these projections, over 70 per cent of analysts covering the company maintain a buy-equivalent rating, with an average $79 price target, implying nearly 14 per cent upside.

A silver lining in Dell’s solid financial position

While concerns about Dell's growth persist, some investors find solace in the company's solid financial position. &nbsp;

Jack Ablin, CIO of Cresset Capital LLC, stated, “We like companies that have a very sterling balance sheet, don’t borrow very much and aren’t as subject to the vicissitudes of the market and the economy.” &nbsp;

Ablin believes that Dell's robust financials position it well to weather a slowdown, potentially benefiting from the next wave of AI demand. The lingering question remains whether AI will serve as the catalyst to drive the next hardware cycle.

(With inputs from Bloomberg)

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Investors in US tech giant Dell are questioning the soaring 90 per cent rally in the stock, wondering if the high price justifies growth that has yet to materialise.

Investors in US tech giant Dell are questioning the soaring 90 per cent rally in the stock, wondering if the high price justifies growth that has yet to materialise. According to a Bloomberg report, the surge, propelling the personal computer giant's shares to a record high by the end of November, was driven by optimistic expectations of a boost from artificial intelligence (AI) demand. However, Dell's recent third-quarter report revealed that the much-anticipated AI growth is not on the immediate horizon, prompting cautious sentiments among investors. The stock, currently trading above its five-year average at about 10 times forward earnings, has encountered headwinds as Dell’s third-quarter results indicated that the expected AI boost is not imminent. Bloomberg cited analysts, like Hendi Susanto from Gabelli Funds, who are adopting a patient approach, stating, “We are waiting to seek a better entry point.” Susanto further acknowledged the run-up in the stock and emphasised the need for caution in light of the uncertain AI growth prospects. Mixed signals from Dell’s second quarter report Dell initially fuelled optimism in August when it surpassed sales expectations in the second quarter and expressed confidence in the long-term potential of servers supporting AI workloads. However, the recent third-quarter results painted a different picture. While Dell recorded $500 million in revenue from high-powered servers, this was insufficient to offset the decline in PC sales. Morningstar’s William Kerwin, who downgraded Dell to a sell rating in September, warned that the stock is overvalued at current levels, echoing concerns about the company’s ability to navigate challenges in the PC and server/storage markets. Barclays analysts, led by Tim Long, joined the chorus of scepticism, downgrading Dell shares to a sell-equivalent rating in September. They attributed the downgrade to macroeconomic pressures, anticipating difficulty in the PC and server/storage markets that AI might struggle to offset. Future growth hinges on AI-Based devices Daniel Newman, CEO of The Futurum Group, emphasised the crucial role AI-based devices will play in Dell's future growth. “Growth in this area will require a cycle when people are upgrading because AI enables them to do something new on the device,” Bloomberg quoted Newman as saying. He believes that genuine growth won't materialise until AI-based PCs and phones enter the market. However, he predicts this may not happen until the latter half of 2024. Current consensus projections indicate that Dell's sales will decrease to roughly $21 billion in the fiscal first quarter of 2025 before increasing to approximately $23 billion in the second quarter and continuing to rise through the end of the year. Despite these projections, over 70 per cent of analysts covering the company maintain a buy-equivalent rating, with an average $79 price target, implying nearly 14 per cent upside. A silver lining in Dell’s solid financial position While concerns about Dell's growth persist, some investors find solace in the company's solid financial position. Jack Ablin, CIO of Cresset Capital LLC, stated, “We like companies that have a very sterling balance sheet, don’t borrow very much and aren’t as subject to the vicissitudes of the market and the economy.” Ablin believes that Dell's robust financials position it well to weather a slowdown, potentially benefiting from the next wave of AI demand. The lingering question remains whether AI will serve as the catalyst to drive the next hardware cycle. (With inputs from Bloomberg) WATCH WION LIVE HERE

Dell's stock rally faces reality check as AI demand fails to keep pace

The International Air Transport Association (IATA) has released optimistic projections for the airline industry, anticipating a substantial rebound in 2024. &nbsp;

Despite a few challenging years, IATA predicts global net profits to reach $25.7 billion in 2024, reflecting a 2.7 per cent net profit margin. This outlook follows the $23.3 billion net profit that is expected in 2023.

The recovery is attributed to increased demand for air travel, especially in China, as the world emerges from the COVID-19 pandemic.

Resilience amid challenges

IATA Director General Willie Walsh acknowledged the aviation industry's resilience, saying, “The $25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience.”

He emphasised on the extraordinary speed at which the industry is recovering while noting that the pandemic has set aviation back approximately four years in terms of growth.

Despite this comeback, the 2.7 per cent net profit margin is significantly lower than what would be acceptable in many other industries, highlighting the ongoing challenges airlines face.

Key projections and drivers

Revenue surge and operating profit growth

IATA's projections highlight a robust financial outlook for 2024. Total revenues are expected to reach a record-breaking $964 billion, growing at a rate of 7.6 per cent. Operating profits are set to increase from $40.7 billion in 2023 to $49.3 billion in 2024. &nbsp;

This positive trend is driven by a surge in air travel demand, with an estimated 4.7 billion people expected to travel in 2024, surpassing pre-pandemic levels.

Passenger and cargo dynamics

Passenger revenues are anticipated to reach $717 billion in 2024, a 12 per cent increase from 2023, driven by strong demand and improved passenger yields. Cargo revenues, on the other hand, are projected to decrease to $111 billion in 2024 due to a decline in demand compared to the exceptional peak observed in 2021. Despite this reduction, yields will remain historically high.

Expenses and fuel challenges

While revenues are expected to outpace expenses, the industry is not without challenges. Expenses are projected to grow to $914 billion in 2024, with fuel costs accounting for 31 per cent of total operating costs. The average fuel price is estimated to be $113.8 per barrel, contributing to a total fuel bill of $281 billion. Airlines are expected to consume 99 billion gallons of fuel in 2024.

Sustainability efforts and carbon footprint

Recognising the environmental impact of the aviation industry, IATA has outlined efforts to address carbon emissions. Sustainable Aviation Fuels (SAF) and carbon credits are expected to play a crucial role in reducing the industry's carbon footprint. SAF production could reach 0.53 per cent of total fuel consumption in 2024, adding $2.4 billion to the fuel bill. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is estimated to cost $1 billion in 2024.

Regional roundup

North America leads financial recovery

Financial performances across regions vary. North America stands out, having returned to profitability in 2022 and strengthening further in 2023. Consumer spending remains solid, and demand for air travel is expected to outpace capacity growth into 2024.

Europe's resilience amid challenges

Europe's performance in 2023 exceeded expectations, with strong demand expected to continue in 2024. However, risks related to the tight labour market and geopolitical tensions pose potential challenges.

Asia Pacific's recovery

While some domestic markets in Asia Pacific recovered quickly, international travel remained subdued until mid-2023. The region is expected to post a small loss in 2023 but is projected to return to profitability in 2024.

Latin America and Africa face challenges

Latin America is expected to face economic and social turmoil impacting airline performance in 2024, with reducing losses. Meanwhile, African carriers are anticipated to generate losses in both 2023 and 2024 due to economic, infrastructure, and connectivity challenges.

West Asia's swift recovery

West Asia is set to deliver strong financial performances in both 2023 and 2024, driven by swift rebuilding of international networks and efficient fleets.

2023: Better than expected

In 2023, the industry outperformed earlier projections, reaching $23.3 billion in net profit, significantly higher than the forecasted $9.8 billion in June. Passenger business drove this improvement, with revenues surpassing expectations by $96 billion, reaching $642 billion. Cargo revenues, however, fell short of projections at $134.7 billion.

Traveller satisfaction and industry perception

Public opinion polls conducted by IATA reveal high levels of traveller satisfaction. A vast majority, 97 per cent, expressed satisfaction with their travel experiences, with 88 per cent believing air travel enhances their lives and 80 per cent considering it good value for money. Travellers have expressed confidence in the industry's commitment to sustainability, with 84 per cent supporting the goal of achieving net zero emissions by 2050.

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The International Air Transport Association (IATA) has released optimistic projections for the airline industry, anticipating a substantial rebound in 2024. Despite a few challenging years, IATA predicts global net profits to reach $25.

The International Air Transport Association (IATA) has released optimistic projections for the airline industry, anticipating a substantial rebound in 2024. Despite a few challenging years, IATA predicts global net profits to reach $25.7 billion in 2024, reflecting a 2.7 per cent net profit margin. This outlook follows the $23.3 billion net profit that is expected in 2023. The recovery is attributed to increased demand for air travel, especially in China, as the world emerges from the COVID-19 pandemic. Resilience amid challenges IATA Director General Willie Walsh acknowledged the aviation industry's resilience, saying, “The $25.7 billion net profit expected in 2024 is a tribute to aviation’s resilience.” He emphasised on the extraordinary speed at which the industry is recovering while noting that the pandemic has set aviation back approximately four years in terms of growth. Despite this comeback, the 2.7 per cent net profit margin is significantly lower than what would be acceptable in many other industries, highlighting the ongoing challenges airlines face. Key projections and drivers Revenue surge and operating profit growth IATA's projections highlight a robust financial outlook for 2024. Total revenues are expected to reach a record-breaking $964 billion, growing at a rate of 7.6 per cent. Operating profits are set to increase from $40.7 billion in 2023 to $49.3 billion in 2024. This positive trend is driven by a surge in air travel demand, with an estimated 4.7 billion people expected to travel in 2024, surpassing pre-pandemic levels. Passenger and cargo dynamics Passenger revenues are anticipated to reach $717 billion in 2024, a 12 per cent increase from 2023, driven by strong demand and improved passenger yields. Cargo revenues, on the other hand, are projected to decrease to $111 billion in 2024 due to a decline in demand compared to the exceptional peak observed in 2021. Despite this reduction, yields will remain historically high. Expenses and fuel challenges While revenues are expected to outpace expenses, the industry is not without challenges. Expenses are projected to grow to $914 billion in 2024, with fuel costs accounting for 31 per cent of total operating costs. The average fuel price is estimated to be $113.8 per barrel, contributing to a total fuel bill of $281 billion. Airlines are expected to consume 99 billion gallons of fuel in 2024. Sustainability efforts and carbon footprint Recognising the environmental impact of the aviation industry, IATA has outlined efforts to address carbon emissions. Sustainable Aviation Fuels (SAF) and carbon credits are expected to play a crucial role in reducing the industry's carbon footprint. SAF production could reach 0.53 per cent of total fuel consumption in 2024, adding $2.4 billion to the fuel bill. The Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) is estimated to cost $1 billion in 2024. Regional roundup North America leads financial recovery Financial performances across regions vary. North America stands out, having returned to profitability in 2022 and strengthening further in 2023. Consumer spending remains solid, and demand for air travel is expected to outpace capacity growth into 2024. Europe's resilience amid challenges Europe's performance in 2023 exceeded expectations, with strong demand expected to continue in 2024. However, risks related to the tight labour market and geopolitical tensions pose potential challenges. Asia Pacific's recovery While some domestic markets in Asia Pacific recovered quickly, international travel remained subdued until mid-2023. The region is expected to post a small loss in 2023 but is projected to return to profitability in 2024. Latin America and Africa face challenges Latin America is expected to face economic and social turmoil impacting airline performance in 2024, with reducing losses. Meanwhile, African carriers are anticipated to generate losses in both 2023 and 2024 due to economic, infrastructure, and connectivity challenges. West Asia's swift recovery West Asia is set to deliver strong financial performances in both 2023 and 2024, driven by swift rebuilding of international networks and efficient fleets. 2023: Better than expected In 2023, the industry outperformed earlier projections, reaching $23.3 billion in net profit, significantly higher than the forecasted $9.8 billion in June. Passenger business drove this improvement, with revenues surpassing expectations by $96 billion, reaching $642 billion. Cargo revenues, however, fell short of projections at $134.7 billion. Traveller satisfaction and industry perception Public opinion polls conducted by IATA reveal high levels of traveller satisfaction. A vast majority, 97 per cent, expressed satisfaction with their travel experiences, with 88 per cent believing air travel enhances their lives and 80 per cent considering it good value for money. Travellers have expressed confidence in the industry's commitment to sustainability, with 84 per cent supporting the goal of achieving net zero emissions by 2050. WATCH WION LIVE HERE

Global aviation is all set to emerge out of Covid shadow. Here's why 

Global aviation is all set to emerge out of Covid shadow. Here's why<o:p></o:p>

The airline industry is expected to have a significant upturn in 2024, according to optimistic estimates issued by the International Air Transport Association (IATA).&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/global-aviation-is-all-set-to-emerge-out-of-covid-shadow-heres-why-667080">Read more here</a><o:p></o:p>

Dell's stock rally faces reality check as AI demand fails to keep pace<o:p></o:p>

US tech company, Dell’s stock has surged 90 per cent, but investors remain doubtful if the high value is justified by growth that hasn't yet materialised.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/dells-stock-rally-faces-reality-check-as-ai-demand-fails-to-keep-pace-667085">Read more here</a><o:p></o:p>

Taiwan's financial ties with China unravel as ETF market nears collapse<o:p></o:p>

The world’s largest Chinese bond exchange-traded fund (ETF) market is on the verge of collapsing, indicating the increasing economic and financial divergence between Taiwan and China.&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/taiwans-financial-ties-with-china-unravel-as-etf-market-nears-collapse-667106">Read more here</a><o:p></o:p>

Russian co-founder of crypto exchange Bitzlato pleads guilty to money laundering charges<o:p></o:p>

Co-founder and principal proprietor of the virtual currency exchange Bitzlato, registered in Hong Kong, Anatoly Legkodymov pleaded guilty in a U.S. court for operating a money-transmitting enterprise that handled around $700 million of illicit funding.&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/russian-co-founder-of-crypto-exchange-bitzlato-pleads-guilty-to-money-laundering-charges-667112">Read more here</a>

McDonald's unveils ambitious expansion plans, aiming for 50,000 restaurants by 2027<o:p></o:p>

McDonald's presented its most ambitious development strategy in 68 years on Wednesday, along with its strategic vision for the future.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/mcdonalds-unveils-ambitious-expansion-plans-aiming-for-50000-restaurants-by-2027-667143">Read more here</a><o:p></o:p>

Paytm share price falls 18pc amid plans to scale back post-paid loans<o:p></o:p>

Paytm’s share price, dropped by an shocking 18 per cent on Thursday. The company's disclosure of strategic plans to cut down its small-ticket post-paid loans was preceded by this market upheaval.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/paytm-share-price-falls-18pc-amid-plans-to-scale-back-post-paid-loans-667147">Read more here</a><o:p></o:p>

SpaceX initiates tender offer, eyes valuation of $175 billion in share sale<o:p></o:p>

Elon Musk's SpaceX is looking out for a tender offer that could potentially be worth up to $175 billion for the private space exploration corporation.&nbsp; <o:p></o:p>

<a href="https://www.wionews.com/business-economy/spacex-initiates-tender-offer-eyes-valuation-of-175-billion-in-share-sale-667153">Read more here</a>

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Global aviation is all set to emerge out of Covid shadow. Here's why The airline industry is expected to have a significant upturn in 2024, according to optimistic estimates issued by the International Air Transport Association (IATA).

Global aviation is all set to emerge out of Covid shadow. Here's why The airline industry is expected to have a significant upturn in 2024, according to optimistic estimates issued by the International Air Transport Association (IATA). Read more here Dell's stock rally faces reality check as AI demand fails to keep pace US tech company, Dell’s stock has surged 90 per cent, but investors remain doubtful if the high value is justified by growth that hasn't yet materialised. Read more here Taiwan's financial ties with China unravel as ETF market nears collapse The world’s largest Chinese bond exchange-traded fund (ETF) market is on the verge of collapsing, indicating the increasing economic and financial divergence between Taiwan and China. Read more here Russian co-founder of crypto exchange Bitzlato pleads guilty to money laundering charges Co-founder and principal proprietor of the virtual currency exchange Bitzlato, registered in Hong Kong, Anatoly Legkodymov pleaded guilty in a U.S. court for operating a money-transmitting enterprise that handled around $700 million of illicit funding. Read more here McDonald's unveils ambitious expansion plans, aiming for 50,000 restaurants by 2027 McDonald's presented its most ambitious development strategy in 68 years on Wednesday, along with its strategic vision for the future. Read more here Paytm share price falls 18pc amid plans to scale back post-paid loans Paytm’s share price, dropped by an shocking 18 per cent on Thursday. The company's disclosure of strategic plans to cut down its small-ticket post-paid loans was preceded by this market upheaval. Read more here SpaceX initiates tender offer, eyes valuation of $175 billion in share sale Elon Musk's SpaceX is looking out for a tender offer that could potentially be worth up to $175 billion for the private space exploration corporation. Read more here WATCH WION LIVE HERE

WION Business Wrap | Global aviation emerges optimistc, Dell’s stock rally, Taiwan-China financial ties & more

SpaceX, under Elon Musk, is in the process of exploring a tender offer that values the private space exploration company at $175 billion or more. &nbsp;

A Bloomberg report, citing sources familiar with the matter, revealed that discussions are underway regarding insider shares, with the tender offer potentially ranging between $500 million to $750 million. The proposed share price is around $95 per share, though terms and the offer's size may evolve based on interest from both sellers and buyers within the company.

This valuation represents a significant premium compared to the $150 billion valuation SpaceX secured through a tender offer earlier this summer. &nbsp;

SpaceX, headquartered in Hawthorne, California, currently stands as the most valuable start-up in the United States, dominating the commercial space launch services market with its highly successful Falcon rockets. &nbsp;

In addition to its achievements in space launches, SpaceX is recognised for its role in sending payloads into orbit for private-sector clients, the National Aeronautics and Space Administration (NASA), and various government agencies. The company's diverse portfolio includes the revolutionary Starlink service, providing internet from space. Anchored by a growing constellation of satellites in low-Earth orbit, Starlink has contributed to SpaceX's expanding influence in the broader space industry.

While details of the tender offer remain confidential, the move signifies SpaceX's continued efforts to leverage its market dominance and technological innovations to attract investment. The space exploration company has been at the forefront of industry advancements, and this financial manoeuvre further highlights its commitment to pushing boundaries and securing a prominent position in the evolving landscape of space exploration and satellite-based services. &nbsp;

(With inputs from Bloomberg)

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SpaceX, under Elon Musk, is in the process of exploring a tender offer that values the private space exploration company at $175 billion or more. A Bloomberg report, citing sources familiar with the matter, revealed that discussions are underway regarding insider shares, with the tender offer potentially ranging between $500 million to $750 million.

SpaceX, under Elon Musk, is in the process of exploring a tender offer that values the private space exploration company at $175 billion or more. A Bloomberg report, citing sources familiar with the matter, revealed that discussions are underway regarding insider shares, with the tender offer potentially ranging between $500 million to $750 million. The proposed share price is around $95 per share, though terms and the offer's size may evolve based on interest from both sellers and buyers within the company. This valuation represents a significant premium compared to the $150 billion valuation SpaceX secured through a tender offer earlier this summer. SpaceX, headquartered in Hawthorne, California, currently stands as the most valuable start-up in the United States, dominating the commercial space launch services market with its highly successful Falcon rockets. In addition to its achievements in space launches, SpaceX is recognised for its role in sending payloads into orbit for private-sector clients, the National Aeronautics and Space Administration (NASA), and various government agencies. The company's diverse portfolio includes the revolutionary Starlink service, providing internet from space. Anchored by a growing constellation of satellites in low-Earth orbit, Starlink has contributed to SpaceX's expanding influence in the broader space industry. While details of the tender offer remain confidential, the move signifies SpaceX's continued efforts to leverage its market dominance and technological innovations to attract investment. The space exploration company has been at the forefront of industry advancements, and this financial manoeuvre further highlights its commitment to pushing boundaries and securing a prominent position in the evolving landscape of space exploration and satellite-based services. (With inputs from Bloomberg) WATCH WION LIVE HERE

SpaceX initiates tender offer, eyes valuation of $175 billion in share sale

Indian digital payment giant Paytm witnessed a staggering 18 per cent decline in its share price on Thursday. This market turmoil followed the company's announcement of strategic plans to slow down its small-ticket post-paid loans. &nbsp;

According to media reports, Paytm aims to divert its focus towards high-ticket personal loans and merchant loans, a move that has raised concerns among investors and prompted several brokerages to revise their revenue estimates for the company.

At 12:42 pm on the National Stock Exchange (NSE), Paytm's share price plummeted to 666.50 rupees ($8), marking an 18 percent drop. The stock had earlier hit a 20 per cent lower circuit in early trade, triggering an increase in trading volume. Approximately 3 crore shares changed hands, a stark contrast to the one-month daily traded average of 50 lakh shares. &nbsp;

During an analyst meet, Paytm revealed its intention to slash post-paid loans by half. The company assured stakeholders that this move would have minimal impact on margins or revenue, as post-paid loans had the lowest take rate. However, market experts expressed reservations about the decision, emphasising that it might lead to a reduction in Paytm's disbursement run rate over the near term.

Jefferies, a leading brokerage firm, attributed Paytm's decision to recalibrate its 'Buy now pay later' (BNPL) business to the recent regulatory changes by the Reserve Bank of India (RBI) affecting unsecured lending. The firm predicted a 50 per cent reduction in BNPL disbursals over the next 3-4 months. &nbsp;

Despite Paytm's plans to offset this decline through high-ticket personal loans and merchant loans, Jefferies expressed concerns about the unexpected tightening in the BNPL business. Consequently, Jefferies revised its revenue estimates for Paytm for FY24-26 by 3-10 per cent and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) estimates by 12-15 per cent, along with a downward revision of the stock's price target by over 19 per cent to Rs 1,050 ($12.6).

Goldman Sachs took a cautious stance, downgrading Paytm's stock to a 'neutral' rating and setting a price target of Rs 840 ($10.08). The brokerage firm also lowered its revenue and adjusted EBITDA estimates for FY24-25 by up to 10 per cent and 40 per cent, respectively. &nbsp;

Similarly, Morgan Stanley, maintaining an 'equal weight' call on the stock, predicted a decline in Paytm's disbursement run rate due to the decision to scale down low-ticket post-paid lending. The brokerage assigned a price target of Rs 830 ($9.96).

While Motilal Oswal Financial Services acknowledged Paytm's efforts to adapt, it expressed reservations about the long-term impact on low-ticket unsecured loans. The firm trimmed its FY24/FY25 disbursement estimates by 15 per cent-18 per cent, resulting in an 11-16 per cent cut in adjusted EBITDA forecasts for FY24-25. Despite keeping a watchful eye on the situation, the brokerage highlighted uncertainties regarding the longevity of these measures and the outlook for low-ticket unsecured loans.

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Indian digital payment giant Paytm witnessed a staggering 18 per cent decline in its share price on Thursday. This market turmoil followed the company's announcement of strategic plans to slow down its small-ticket post-paid loans.

Indian digital payment giant Paytm witnessed a staggering 18 per cent decline in its share price on Thursday. This market turmoil followed the company's announcement of strategic plans to slow down its small-ticket post-paid loans. According to media reports, Paytm aims to divert its focus towards high-ticket personal loans and merchant loans, a move that has raised concerns among investors and prompted several brokerages to revise their revenue estimates for the company. At 12:42 pm on the National Stock Exchange (NSE), Paytm's share price plummeted to 666.50 rupees ($8), marking an 18 percent drop. The stock had earlier hit a 20 per cent lower circuit in early trade, triggering an increase in trading volume. Approximately 3 crore shares changed hands, a stark contrast to the one-month daily traded average of 50 lakh shares. During an analyst meet, Paytm revealed its intention to slash post-paid loans by half. The company assured stakeholders that this move would have minimal impact on margins or revenue, as post-paid loans had the lowest take rate. However, market experts expressed reservations about the decision, emphasising that it might lead to a reduction in Paytm's disbursement run rate over the near term. Jefferies, a leading brokerage firm, attributed Paytm's decision to recalibrate its 'Buy now pay later' (BNPL) business to the recent regulatory changes by the Reserve Bank of India (RBI) affecting unsecured lending. The firm predicted a 50 per cent reduction in BNPL disbursals over the next 3-4 months. Despite Paytm's plans to offset this decline through high-ticket personal loans and merchant loans, Jefferies expressed concerns about the unexpected tightening in the BNPL business. Consequently, Jefferies revised its revenue estimates for Paytm for FY24-26 by 3-10 per cent and adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortisation) estimates by 12-15 per cent, along with a downward revision of the stock's price target by over 19 per cent to Rs 1,050 ($12.6). Goldman Sachs took a cautious stance, downgrading Paytm's stock to a 'neutral' rating and setting a price target of Rs 840 ($10.08). The brokerage firm also lowered its revenue and adjusted EBITDA estimates for FY24-25 by up to 10 per cent and 40 per cent, respectively. Similarly, Morgan Stanley, maintaining an 'equal weight' call on the stock, predicted a decline in Paytm's disbursement run rate due to the decision to scale down low-ticket post-paid lending. The brokerage assigned a price target of Rs 830 ($9.96). While Motilal Oswal Financial Services acknowledged Paytm's efforts to adapt, it expressed reservations about the long-term impact on low-ticket unsecured loans. The firm trimmed its FY24/FY25 disbursement estimates by 15 per cent-18 per cent, resulting in an 11-16 per cent cut in adjusted EBITDA forecasts for FY24-25. Despite keeping a watchful eye on the situation, the brokerage highlighted uncertainties regarding the longevity of these measures and the outlook for low-ticket unsecured loans. WATCH WION LIVE HERE

Paytm share price falls 18pc amid plans to scale back post-paid loans

McDonald's on Wednesday unveiled its strategic vision for the future, which marks its most ambitious growth plan in 68 years.

According to a media report, the iconic fast-food giant revealed plans to surge to 50,000 restaurants by 2027, propelled by its fastest pace of expansion in history.&nbsp;

The announcement follows robust sales growth in both international operated markets and international developed licensed markets, signalling the brand's resilience and global appeal. McDonald's recent agreement to buy back Carlyle's minority ownership stake in its China business for $1.8 billion underscores its commitment to strategic investments. &nbsp;

McDonald's CEO and president, Chris Kempczinski, emphasised the brand's trajectory for future growth, citing its robust brand strength, global footprint, and digital ecosystem.

"We have a clear trajectory for future growth as we continue to build on the brand strength, global footprint, and digital ecosystem that have resulted in unparalleled competitive advantages and cemented McDonald’s as one of the world’s leading consumer-facing brands," Bloomberg quoted Kempczinski as saying. &nbsp;

The company plans to focus on its core menu items, introducing the "Best Burger" to all markets by 2026, impacting favourites like the Big Mac, McDouble burger, cheeseburger, double cheeseburger, and hamburger. Additionally, McDonald's aims to elevate its chicken business, making the McCrispy sandwich available in all markets by the end of 2025 and expanding it into wraps and tenders. &nbsp;

In the last quarter, McDonald's witnessed a boost in U.S. sales attributed to higher menu prices, innovative marketing campaigns such as the "As Featured In Meal", and the growing adoption of digital and delivery orders.&nbsp;

The company, having actively participated in the chicken sandwich wars three years ago, reported gaining market share in both chicken and beef during a call with investors following its Q3 results. The strategic focus on burgers and chicken aligns with McDonald's ongoing commitment towards meeting evolving consumer preferences.

Digital transformation remains at the forefront of McDonald's agenda, with systemwide digital sales reaching $9 billion in Q3 across its six largest markets. This accounted for 40 per cent of total sales, marking a notable increase from Q2. McDonald's plans to continue investing in digital, delivery, and drive-throughs, with a keen eye on expanding its loyalty program. By 2027, the company aims to grow its active loyalty user base from 150 million to a 250 million 90-day active users, with an ambitious target of reeling in $45 billion in annual systemwide sales. &nbsp;

In a strategic move, McDonald's has partnered with Google Cloud to enhance operations, customer experience, and crew efficiency. This collaboration, set to commence in 2024, will leverage generative AI at McDonald's restaurants to accelerate innovation, reduce complexity, and ensure accurate orders. Google CEO Sundar Pichai expressed eagerness about the collaboration, highlighting the potential for McDonald's to leverage Google's generative AI, cloud, and edge computing tools to enhance the dining experience globally. &nbsp;

The announcement comes after McDonald's sold its automated ordering business, McD Tech Labs, to IBM in 2021. Competitor Wendy's has also ventured into automation, revealing plans to automate its drive-through with Google Cloud, known as Wendy’s FreshAI.

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McDonald's on Wednesday unveiled its strategic vision for the future, which marks its most ambitious growth plan in 68 years. According to a media report, the iconic fast-food giant revealed plans to surge to 50,000 restaurants by 2027, propelled by its fastest pace of expansion in history.

McDonald's on Wednesday unveiled its strategic vision for the future, which marks its most ambitious growth plan in 68 years. According to a media report, the iconic fast-food giant revealed plans to surge to 50,000 restaurants by 2027, propelled by its fastest pace of expansion in history. The announcement follows robust sales growth in both international operated markets and international developed licensed markets, signalling the brand's resilience and global appeal. McDonald's recent agreement to buy back Carlyle's minority ownership stake in its China business for $1.8 billion underscores its commitment to strategic investments. McDonald's CEO and president, Chris Kempczinski, emphasised the brand's trajectory for future growth, citing its robust brand strength, global footprint, and digital ecosystem. "We have a clear trajectory for future growth as we continue to build on the brand strength, global footprint, and digital ecosystem that have resulted in unparalleled competitive advantages and cemented McDonald’s as one of the world’s leading consumer-facing brands," Bloomberg quoted Kempczinski as saying. The company plans to focus on its core menu items, introducing the "Best Burger" to all markets by 2026, impacting favourites like the Big Mac, McDouble burger, cheeseburger, double cheeseburger, and hamburger. Additionally, McDonald's aims to elevate its chicken business, making the McCrispy sandwich available in all markets by the end of 2025 and expanding it into wraps and tenders. In the last quarter, McDonald's witnessed a boost in U.S. sales attributed to higher menu prices, innovative marketing campaigns such as the "As Featured In Meal", and the growing adoption of digital and delivery orders. The company, having actively participated in the chicken sandwich wars three years ago, reported gaining market share in both chicken and beef during a call with investors following its Q3 results. The strategic focus on burgers and chicken aligns with McDonald's ongoing commitment towards meeting evolving consumer preferences. Digital transformation remains at the forefront of McDonald's agenda, with systemwide digital sales reaching $9 billion in Q3 across its six largest markets. This accounted for 40 per cent of total sales, marking a notable increase from Q2. McDonald's plans to continue investing in digital, delivery, and drive-throughs, with a keen eye on expanding its loyalty program. By 2027, the company aims to grow its active loyalty user base from 150 million to a 250 million 90-day active users, with an ambitious target of reeling in $45 billion in annual systemwide sales. In a strategic move, McDonald's has partnered with Google Cloud to enhance operations, customer experience, and crew efficiency. This collaboration, set to commence in 2024, will leverage generative AI at McDonald's restaurants to accelerate innovation, reduce complexity, and ensure accurate orders. Google CEO Sundar Pichai expressed eagerness about the collaboration, highlighting the potential for McDonald's to leverage Google's generative AI, cloud, and edge computing tools to enhance the dining experience globally. The announcement comes after McDonald's sold its automated ordering business, McD Tech Labs, to IBM in 2021. Competitor Wendy's has also ventured into automation, revealing plans to automate its drive-through with Google Cloud, known as Wendy’s FreshAI. WATCH WION LIVE HERE

McDonald's unveils ambitious expansion plans, aiming for 50,000 restaurants by 2027

Responding to a report by US researchers, the Tel Aviv Stock Exchange (TASE) refuted claims of unusual trading activities before&nbsp;the October 7 Hamas attack, Reuters reported.&nbsp;

The study, conducted by law professors Robert Jackson Jr. from New York University and Joshua Mitts of Columbia University, alleged that certain investors in Israel may have profited from prior knowledge of the attack, citing significant short-selling of shares leading up to the event.&nbsp;

TASE, in a statement on Tuesday, dismissed the report as inaccurate and irresponsible, asserting that the researchers miscalculated the potential short-sale profits due to a misunderstanding of the currency in which share prices are listed. &nbsp;

Reuters cited, Yaniv Pagot, the head of trading at TASE, who emphasised that there was nothing unusual in short positions in the stock exchange in the two months before the attack. He noted an increase in short interest in Leumi, Israel's largest bank, in the week ending September 21, but stated that the position remained stable thereafter.&nbsp;

Pagot remarked, "I don't see in the data something even close to what they wrote in the paper." He also highlighted that the researchers did not consult with TASE or its members before publishing their findings. &nbsp;

He further downplayed concerns about the ETF and short-dated options activity identified by the researchers, expressing confusion about the theory behind it.&nbsp;

The Israel Securities Authority (ISA) also weighed in, stating that no significant trading abnormalities necessitating further investigation were detected in the days preceding the Hamas terrorist attack. The ISA's examinations found a decline in average short balances for shares traded on TASE during the period leading up to October 7th. &nbsp;

The regulator disputed the researchers' calculations, estimating the value of theoretical returns of the short balance in Bank Leumi shares to be in the tens of millions of shekels, rather than the alleged three billion shekels.&nbsp;

Joshua Mitts, one of the researchers, acknowledged via email that the 67-page report had been corrected to address currency issues. However, he maintained that the correction did not impact the "highly unusual" exchange-traded fund (ETF) and short-dated options activity identified in their study. The report highlighted a sudden and significant spike in short interest in the MSCI Israel ETF on October 2, based on data from the Financial Industry Regulatory Authority (FINRA).&nbsp;

Despite the TASE's denial, media speculation has suggested the involvement of a terror organisation in the short-selling. Pagot, however, dismissed this notion, stating that the short position in Leumi was taken by an unidentified Israeli bank known to the TASE. He emphasised the strict compliance standards of the involved bank, making it unlikely for such a position to pass through without scrutiny.&nbsp;

Israel's securities regulator confirmed its awareness of the report for a week and stated it is in contact with the researchers. However, the regulator declined to comment further while it investigates the TASE's rebuttal.&nbsp;

(With inputs from Reuters)&nbsp;

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Responding to a report by US researchers, the Tel Aviv Stock Exchange (TASE) refuted claims of unusual trading activities before the October 7 Hamas attack, Reuters reported.

Responding to a report by US researchers, the Tel Aviv Stock Exchange (TASE) refuted claims of unusual trading activities before the October 7 Hamas attack, Reuters reported. The study, conducted by law professors Robert Jackson Jr. from New York University and Joshua Mitts of Columbia University, alleged that certain investors in Israel may have profited from prior knowledge of the attack, citing significant short-selling of shares leading up to the event. TASE, in a statement on Tuesday, dismissed the report as inaccurate and irresponsible, asserting that the researchers miscalculated the potential short-sale profits due to a misunderstanding of the currency in which share prices are listed. Reuters cited, Yaniv Pagot, the head of trading at TASE, who emphasised that there was nothing unusual in short positions in the stock exchange in the two months before the attack. He noted an increase in short interest in Leumi, Israel's largest bank, in the week ending September 21, but stated that the position remained stable thereafter. Pagot remarked, "I don't see in the data something even close to what they wrote in the paper." He also highlighted that the researchers did not consult with TASE or its members before publishing their findings. He further downplayed concerns about the ETF and short-dated options activity identified by the researchers, expressing confusion about the theory behind it. The Israel Securities Authority (ISA) also weighed in, stating that no significant trading abnormalities necessitating further investigation were detected in the days preceding the Hamas terrorist attack. The ISA's examinations found a decline in average short balances for shares traded on TASE during the period leading up to October 7th. The regulator disputed the researchers' calculations, estimating the value of theoretical returns of the short balance in Bank Leumi shares to be in the tens of millions of shekels, rather than the alleged three billion shekels. Joshua Mitts, one of the researchers, acknowledged via email that the 67-page report had been corrected to address currency issues. However, he maintained that the correction did not impact the "highly unusual" exchange-traded fund (ETF) and short-dated options activity identified in their study. The report highlighted a sudden and significant spike in short interest in the MSCI Israel ETF on October 2, based on data from the Financial Industry Regulatory Authority (FINRA). Despite the TASE's denial, media speculation has suggested the involvement of a terror organisation in the short-selling. Pagot, however, dismissed this notion, stating that the short position in Leumi was taken by an unidentified Israeli bank known to the TASE. He emphasised the strict compliance standards of the involved bank, making it unlikely for such a position to pass through without scrutiny. Israel's securities regulator confirmed its awareness of the report for a week and stated it is in contact with the researchers. However, the regulator declined to comment further while it investigates the TASE's rebuttal. (With inputs from Reuters) WATCH WION LIVE HERE

Tel Aviv stock exchange denies allegations of insider trading ahead of Hamas Attack 

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