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&nbsp;Amazon.com on Tuesday became the second of the current S&amp;P 500 components to hit the $1,000 price mark, beating Google parent Alphabet to the punch and underscoring a massive rally in large-cap technology-related stocks.

Shares of Amazon have risen 33 per cent so far in 2017 alone, adding roughly $120 billion to its market value. Priceline was the first S&amp;P 500 stock to hit $1,000, doing so in September 2013. Analysts on average expect Amazon to rise another 10 per cent according to the median price target of $1,100.

<a href="http://www.wionews.com/business-economy/the-rise-rise-of-jeff-bezos-amazon-14019">Also Read:&nbsp;The Rise &amp; Rise of Jeff Bezos &amp; Amazon</a>

&quot;The world is becoming more and more aware of how unstoppable the business plan is,&quot; said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York. He said Amazon accounts for 3.5 per cent to 5 per cent of the firm&#39;s portfolios.

&quot;The $1,000 is a bit of a psychological barrier for any stock, but it is just another number and we&#39;re still big believers in it.&quot;

Among the other four largest US&nbsp;companies by market cap, Apple and Facebook share prices have also risen nearly 33 per cent this year while Alphabet has gained 26 per cent and Microsoft has added 13 per cent.

The combined market cap of the top five is near $3 trillion, or more than 13 percent of the S&amp;P 500 index stocks&#39; capitalization.

Amazon, the only one of the top five not in the technology sector, accounts for 17 per cent of the market cap of the S&amp;P 500 consumer discretionary sector.

In terms of stock prices, Amazon&#39;s high of $1,001.20 is second among the S&amp;P 500 behind Priceline, which recently hit $1,850.50. Priceline&#39;s near $92 billion market cap is, however, runs far below Amazon&#39;s $476 billion.

Apple dominates that metric with a capitalization of more than $800 billion.

Amazon beat Alphabet, which recently hit $994.32, in a race to $1,000. The other S&amp;P component above $900 per share is Intuitive Surgical, at $912.80.

Apple three years ago split its stock in seven. If it had not, its current stock price would be about $1,080.11.

Amazon is ahead of Facebook in the race to become the fourth US&nbsp;company with a market cap of more than half a trillion dollars, joining Apple, Alphabet and Microsoft.

(Reuters)

Amazon.com has become the second of the current S&P 500 components to hit the $1,000 price mark

Amazon.com on Tuesday became the second of the current S&P 500 components to hit the $1,000 price mark, beating Google parent Alphabet to the punch and underscoring a massive rally in large-cap technology-related stocks. Shares of Amazon have risen 33 per cent so far in 2017 alone, adding roughly $120 billion to its market value. Priceline was the first S&P 500 stock to hit $1,000, doing so in September 2013. Analysts on average expect Amazon to rise another 10 per cent according to the median price target of $1,100. Also Read: The Rise & Rise of Jeff Bezos & Amazon "The world is becoming more and more aware of how unstoppable the business plan is," said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York. He said Amazon accounts for 3.5 per cent to 5 per cent of the firm's portfolios. "The $1,000 is a bit of a psychological barrier for any stock, but it is just another number and we're still big believers in it." Among the other four largest US companies by market cap, Apple and Facebook share prices have also risen nearly 33 per cent this year while Alphabet has gained 26 per cent and Microsoft has added 13 per cent. The combined market cap of the top five is near $3 trillion, or more than 13 percent of the S&P 500 index stocks' capitalization. Amazon, the only one of the top five not in the technology sector, accounts for 17 per cent of the market cap of the S&P 500 consumer discretionary sector. In terms of stock prices, Amazon's high of $1,001.20 is second among the S&P 500 behind Priceline, which recently hit $1,850.50. Priceline's near $92 billion market cap is, however, runs far below Amazon's $476 billion. Apple dominates that metric with a capitalization of more than $800 billion. Amazon beat Alphabet, which recently hit $994.32, in a race to $1,000. The other S&P component above $900 per share is Intuitive Surgical, at $912.80. Apple three years ago split its stock in seven. If it had not, its current stock price would be about $1,080.11. Amazon is ahead of Facebook in the race to become the fourth US company with a market cap of more than half a trillion dollars, joining Apple, Alphabet and Microsoft. (Reuters)

Amazon shares break $1,000 price mark, Google upstaged

New one rupee notes with predominantly pink-green on obverse and reverse in combination with other colours will be soon put into circulation.

The notes bearing the rupee symbol have been printed by the Government of India.

At present, one rupee coins are minted. Printing of one rupee notes was discontinued in 1994 but was relaunched in 2015.

&quot;The Reserve Bank of India will soon put into circulation currency notes in one rupee denomination,&quot; the central bank said in a statement.

The note will bear the signature of Shaktikanta Das, Secretary in the Ministry of Finance. Rest other currency notes bear the signature of the RBI Governor.

The numbering will be in black at right hand bottom portion of the note.

On the reverse side, the year &#39;2017&#39; is mentioned. There is also representation of One Rupee coin with rupee symbol having floral design and the surrounding design consists of the picture of &#39;Sagar Samrat&#39; the oil exploration platform.

&quot;The colour of One Rupee Currency Note shall be predominantly pink green on obverse and reverse in combination with others,&quot; the RBI said.

(PTI)

Printing of one rupee notes was discontinued in 1994 but was relaunched in 2015

New one rupee notes with predominantly pink-green on obverse and reverse in combination with other colours will be soon put into circulation. The notes bearing the rupee symbol have been printed by the Government of India. At present, one rupee coins are minted. Printing of one rupee notes was discontinued in 1994 but was relaunched in 2015. "The Reserve Bank of India will soon put into circulation currency notes in one rupee denomination," the central bank said in a statement. The note will bear the signature of Shaktikanta Das, Secretary in the Ministry of Finance. Rest other currency notes bear the signature of the RBI Governor. The numbering will be in black at right hand bottom portion of the note. On the reverse side, the year '2017' is mentioned. There is also representation of One Rupee coin with rupee symbol having floral design and the surrounding design consists of the picture of 'Sagar Samrat' the oil exploration platform. "The colour of One Rupee Currency Note shall be predominantly pink green on obverse and reverse in combination with others," the RBI said. (PTI)

New one rupee note to come out soon

Oil prices slipped on Monday as further increases in US drilling activity undercut an OPEC-led push to tighten supply.

Trading was subdued due to public holidays in China, the United States and Britain, but concerns lingered over whether OPEC action would be enough to stem the tide of oversupply.

Brent crude futures were trading down 15 cents at $51.98 per barrel at 11:15 GMT. The contract ended the previous week down nearly 3 per cent.

US West Texas Intermediate (WTI) crude futures were also down 17 cents at $49.63 per barrel.

The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018.

An initial agreement, in place since January, would have expired in June this year.

Commerzbank analyst Carsten Fritsch called Monday&#39;s price moves little more than &quot;intraday noise&quot; but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision.

&quot;They increased expectations to such an extent that nine months was a disappointment,&quot; Fritsch said.

High compliance with the cuts so far was unlikely to last, he said, adding to worries about whether the pledge would dent physical oil stockpiles that remain near record levels.

&quot;The pain for OPEC will increase to such a point that 100 per cent compliance is unrealistic,&quot; Fritsch said.

Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel.

OPEC&#39;s success in drawing down inventories may hinge on output in the United States, which is not participating in the cuts. US production has soared 10 per cent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia.

US drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc.

Almost all of the recent US output increases have been onshore, from so-called shale oil fields.

Even if the rig count did not rise further, Goldman Sachs said it estimated US output would increase by 785,000 bpd between the fourth quarter of 2016 and the fourth quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays.

Analysts say that reducing bloated global stocks will be key to reining in oversupply.

&quot;It&#39;s going to be all about inventories and whether they fall as much as OPEC thinks,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

(Reuters)

The OPEC and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018

Oil prices slipped on Monday as further increases in US drilling activity undercut an OPEC-led push to tighten supply. Trading was subdued due to public holidays in China, the United States and Britain, but concerns lingered over whether OPEC action would be enough to stem the tide of oversupply. Brent crude futures were trading down 15 cents at $51.98 per barrel at 11:15 GMT. The contract ended the previous week down nearly 3 per cent. US West Texas Intermediate (WTI) crude futures were also down 17 cents at $49.63 per barrel. The Organization of the Petroleum Exporting Countries and some non-OPEC producers pledged last week to extend production cuts of around 1.8 million barrels per day (bpd) until March 2018. An initial agreement, in place since January, would have expired in June this year. Commerzbank analyst Carsten Fritsch called Monday's price moves little more than "intraday noise" but said hints of deeper cuts or a longer extension from OPEC left the market deflated after the final decision. "They increased expectations to such an extent that nine months was a disappointment," Fritsch said. High compliance with the cuts so far was unlikely to last, he said, adding to worries about whether the pledge would dent physical oil stockpiles that remain near record levels. "The pain for OPEC will increase to such a point that 100 per cent compliance is unrealistic," Fritsch said. Despite ongoing cuts, oil prices have not risen much beyond $50 per barrel. OPEC's success in drawing down inventories may hinge on output in the United States, which is not participating in the cuts. US production has soared 10 per cent since mid-2016 to more than 9.3 million bpd, close to top producer levels Russia and Saudi Arabia. US drillers have added rigs for 19 straight weeks, bringing the total 722, the highest number since April 2015 and the longest run of additions on record, according to energy services firm Baker Hughes Inc. Almost all of the recent US output increases have been onshore, from so-called shale oil fields. Even if the rig count did not rise further, Goldman Sachs said it estimated US output would increase by 785,000 bpd between the fourth quarter of 2016 and the fourth quarter of 2017 across the Permian, Eagle Ford, Bakken and Niobrara shale plays. Analysts say that reducing bloated global stocks will be key to reining in oversupply. "It's going to be all about inventories and whether they fall as much as OPEC thinks," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. (Reuters)

Oil prices slip as US drilling undermines OPEC-led production cut

State-run Oil India Ltd posted a 96 per cent fall in fourth-quarter profit, hurt by a one-time charge realised on the pre-discount and post-discount price of crude oil paid to a state government.

Net profit was 193.1 million rupees ($2.99 million) in the quarter ended March 31, compared with 4.70 billion rupees a year earlier, the company said on Monday.

Analysts on average had expected the oil and gas explorer, which also owns assets in the United States and Africa, to post a profit of 5.70 billion rupees, according to Thomson Reuters data.

The company said it recognised a differential royalty of 11.52 billion rupees in the March quarter which had been paid earlier to the State Government of Assam.

($1 = 64.4800 Indian rupees)

(Reuters)

It was hurt by the charge realised on the pre-discount and post-discount price of crude oil paid to a state government

State-run Oil India Ltd posted a 96 per cent fall in fourth-quarter profit, hurt by a one-time charge realised on the pre-discount and post-discount price of crude oil paid to a state government. Net profit was 193.1 million rupees ($2.99 million) in the quarter ended March 31, compared with 4.70 billion rupees a year earlier, the company said on Monday. Analysts on average had expected the oil and gas explorer, which also owns assets in the United States and Africa, to post a profit of 5.70 billion rupees, according to Thomson Reuters data. The company said it recognised a differential royalty of 11.52 billion rupees in the March quarter which had been paid earlier to the State Government of Assam. ($1 = 64.4800 Indian rupees) (Reuters)

Oil India fourth-quarter profit falls 96% on one-time charge

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Indian shares hit record highs on Friday, with Reliance Industries and Tata Steel leading the gains, as higher derivatives rollover led to strong follow-up buying in index heavyweights.

The broader NSE Nifty rose as much as 0.65 per cent to a record high of 9,572.25, while the benchmark BSE Sensex gained as much as 0.73 per cent, also touching a life-high of 30,975.52.

&quot;Most of the movement on the indexes since Thursday is due to broad index-level buying in the markets because of the F&amp;O expiry,&quot; said Tirthankar Patnaik, chief strategist and head of research, India at Mizuho Bank.

&quot;On Thursday, major shorts were covered and longs have been rolled, so there is follow-up buying in today&#39;s session. Nifty saw 75 per cent rollover yesterday,&quot; said Miraj Vora, derivative analyst at Prabhudas Lilladher.

A higher rollover is typically a bullish sign and means investors expect gains to continue.

Reliance Industries gained as much as 3.22 per cent, while Tata Steel gained as much as 5.6 per cent to 511.90 rupees, its highest since September 2014.

Consumer firm ITC, which is slated to report March quarter results later in the day, gained as much as 1.55 per cent.

Meanwhile, downstream oil companies lost some ground.

&quot;There is some profit-booking in downstream oil companies,&quot; Patnaik said.

Indian Oil Corp slipped for the first time in three sessions, falling as much as 5.2 per cent, while Bharat Petroleum lost as much as 3.3 per cent and looked set to snap three sessions of gains.

Pharma company Cipla dropped to an eleven-month low after posting a quarterly loss against analysts&#39; expectations.

(Reuters)

Indian shares hit record highs on Friday, with Reliance Industries and Tata Steel leading the gains, as higher derivatives rollover led to strong follow-up buying in index heavyweights. The broader NSE Nifty rose as much as 0.65 per cent to a record high of 9,572.25, while the benchmark BSE Sensex gained as much as 0.73 per cent, also touching a life-high of 30,975.52. "Most of the movement on the indexes since Thursday is due to broad index-level buying in the markets because of the F&O expiry," said Tirthankar Patnaik, chief strategist and head of research, India at Mizuho Bank. "On Thursday, major shorts were covered and longs have been rolled, so there is follow-up buying in today's session. Nifty saw 75 per cent rollover yesterday," said Miraj Vora, derivative analyst at Prabhudas Lilladher. A higher rollover is typically a bullish sign and means investors expect gains to continue. Reliance Industries gained as much as 3.22 per cent, while Tata Steel gained as much as 5.6 per cent to 511.90 rupees, its highest since September 2014. Consumer firm ITC, which is slated to report March quarter results later in the day, gained as much as 1.55 per cent. Meanwhile, downstream oil companies lost some ground. "There is some profit-booking in downstream oil companies," Patnaik said. Indian Oil Corp slipped for the first time in three sessions, falling as much as 5.2 per cent, while Bharat Petroleum lost as much as 3.3 per cent and looked set to snap three sessions of gains. Pharma company Cipla dropped to an eleven-month low after posting a quarterly loss against analysts' expectations. (Reuters)

Sensex hits record highs; Tata Steel scales over 2.5 year peak

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs.

At Thursday&#39;s meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year.

Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday.

Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close.

US&nbsp;West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent.

&quot;With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the &quot;over-and-above&quot; which didn&#39;t come &ndash; hence the sell-off,&quot; said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed.

Britain&#39;s Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC&#39;s goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut.

Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018.

Analysts also said that the OPEC-led production cuts would support a further rise in US&nbsp;output.

Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the &quot;decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US&nbsp;onshore drillers make plans&quot; to further increase their production.

US&nbsp;oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia.

&quot;OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US&nbsp;production and demand,&quot; said Greg McKenna, chief market strategist at futures brokerage AxiTrader.

Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut.

With US&nbsp;output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump.

(Reuters)

Crude oil plunged 5 per cent following the announcement

Oil extended falls on Friday after tumbling in the previous session when OPEC and allied producers extended output cuts but disappointed investors betting on longer or larger supply curbs. At Thursday's meeting in Vienna, the Organization of the Petroleum Exporting Countries (OPEC) and some non-OPEC producers agreed to extend a pledge to cut around 1.8 million barrels per day (bpd) until the end of the first quarter of 2018. The initial agreement would have expired in June this year. Crude oil plunged 5 per cent following the announcement, and held its losses early on Friday. Brent crude futures were at $51.26 per barrel at 0500 GMT, down 20 cents, or 0.4 per cent, from their last close. US West Texas Intermediate (WTI) crude futures were back below $50, at $48.61, down 29 cents, or 0.6 per cent. "With Russia and Saudi announcing nine months (of extended cuts) a week before, this was already priced in, so the market wanted the "over-and-above" which didn't come – hence the sell-off," said Virendra Chauhan, oil analyst at Energy Aspects in Singapore, referring to a statement by Saudi Arabia and Russia earlier in May that a none months extension to the cut was needed. Britain's Barclays bank said the ongoing production cut would result in a drawdown of bloated fuel inventories, but added that OPEC's goal of bringing stocks down to their five-year average would not be reached within the timeframe of the production cut. Other analysts, including at Goldman Sachs and Jefferies bank said a normalisation of oil inventories could occur in early 2018. Analysts also said that the OPEC-led production cuts would support a further rise in US output. Ann-Louise Hittle, vice president at energy consultancy Wood Mackenzie said that the "decision in Vienna sends a signal of continued support for oil prices from OPEC which helps US onshore drillers make plans" to further increase their production. US oil production has already risen by 10 per cent since mid-2016 to over 9.3 million bpd, close to the output of top producers Russia and Saudi Arabia. "OPEC agreeing to nine months without deeper cuts leaves prices at the mercy of inventories and US production and demand," said Greg McKenna, chief market strategist at futures brokerage AxiTrader. Goldman Sachs warned that the biggest risk to oil markets was what would happen next year, at the end of the OPEC-led production cut. With US output rising steadily and OPEC and its allies potentially ramping up production in 2018 to regain lost market share, many traders are already expect another price slump. (Reuters)

Oil drops after OPEC-led output cut extension falls below expectations

State Bank of India is set to hire Bank of America Merrill Lynch, Deutsche Bank, IIFL, JM Financial, Kotak and SBI Capital to manage a share sale of up to 150 billion rupees ($2.3 billion), IFR reported on Friday, citing two sources with knowledge of the plan.

A total 17 banks had bid to underwrite the so-called qualified institutional placement, for which SBI will pay a nominal fee of one rupee, IFR, a Thomson Reuters publication, reported.

($1 = 64.5550 rupees)

(Reuters)

State Bank of India is set to hire Bank of America Merrill Lynch, Deutsche Bank, and three others

State Bank of India is set to hire Bank of America Merrill Lynch, Deutsche Bank, IIFL, JM Financial, Kotak and SBI Capital to manage a share sale of up to 150 billion rupees ($2.3 billion), IFR reported on Friday, citing two sources with knowledge of the plan. A total 17 banks had bid to underwrite the so-called qualified institutional placement, for which SBI will pay a nominal fee of one rupee, IFR, a Thomson Reuters publication, reported. ($1 = 64.5550 rupees) (Reuters)

SBI set to hire six banks for up to $2.3 billion share sale: IFR

Hong Kong on Thursday hit back at a decision by Moody&#39;s to cut its credit rating on the city, which the agency said was becoming increasingly close to mainland China.

The move was announced hours after the firm downgraded China for the first time in almost three decades, citing concerns about its ballooning debt and slowing economic growth.

Moody&#39;s decision came as China tries to clean up a toxic brew of unregulated and risky lending that for years has fuelled the economy&#39;s spectacular growth, though some analysts doubt Beijing&#39;s willingness to quit its debt addiction.&nbsp;

Beijing rejected the cut, saying Moody&#39;s had used an &quot;inappropriate&quot; method to assess the risks facing the economy.

In downgrading Hong Kong, the agency outlined the growing links between the city and the mainland, with banks increasing China-related lending, while its stock market is also linked to bourses in Shanghai and Shenzhen through separate tie-ups.

The city&#39;s involvement in China&#39;s Belt and Road initiative also brings its economy and financial systems closer to the mainland, Moody&#39;s said.

&quot;The downgrade in Hong Kong&#39;s rating reflects Moody&#39;s view that credit trends in China will continue to have a significant impact on Hong Kong&#39;s credit profile due to close and tightening economic, financial and political linkages with the mainland,&quot; it said in a statement.

&quot;The institutional features which grant Hong Kong, at present, a degree of political and economic independence -- together with the SAR&#39;s intrinsic credit strengths -- allow Hong Kong&#39;s rating to exceed that of China. But the two ratings, like the two regions, remain closely linked,&quot; it said.

Moody&#39;s cut Hong Kong from Aa1 to Aa2 but upped its outlook from negative to stable. Earlier it had downgraded China to A1 from Aa3 -- its first since 1989 months after the Tiananmen Square crackdown -- and also increased its outlook to stable from negative. It affirmed the Aa3 rating of Macau and upgraded its outlook to stable from negative.

Hong Kong&#39;s Finance Secretary Paul Chan said Thursday he &quot;strongly disagreed&quot; with the move.

&quot;We are of the view that Moody&rsquo;s has overlooked the sound economic fundamentals, robust financial regulatory regime, resilient banking sector and strong fiscal position that Hong Kong has,&quot; Chan said.

He also said the Belt and Road initiative will help Hong Kong businesses enter new markets, boosting the city&rsquo;s economy, adding China is also a &quot;key source of growth&quot; for the global economy.

Jackson Wong, of Huarong International Securities, told AFP that he did not see the downgrade as necessary and it would have little impact on the city.

&quot;I don&#39;t think it will affect investors&#39; view on Hong Kong because they believe Hong Kong has a strong financial system. As of now the city, in every aspect, is still very strong and I don&#39;t see any deterioration.

Hong Kong is semi-autonomous after it was handed back to China by Britain in 1997. It preserved its financial and judicial systems and enjoys liberties not seen on the mainland.

(AFP)

In downgrading Hong Kong, the agency outlined the growing economic links between the city and Beijing

Hong Kong on Thursday hit back at a decision by Moody's to cut its credit rating on the city, which the agency said was becoming increasingly close to mainland China. The move was announced hours after the firm downgraded China for the first time in almost three decades, citing concerns about its ballooning debt and slowing economic growth. Moody's decision came as China tries to clean up a toxic brew of unregulated and risky lending that for years has fuelled the economy's spectacular growth, though some analysts doubt Beijing's willingness to quit its debt addiction. Beijing rejected the cut, saying Moody's had used an "inappropriate" method to assess the risks facing the economy. In downgrading Hong Kong, the agency outlined the growing links between the city and the mainland, with banks increasing China-related lending, while its stock market is also linked to bourses in Shanghai and Shenzhen through separate tie-ups. The city's involvement in China's Belt and Road initiative also brings its economy and financial systems closer to the mainland, Moody's said. "The downgrade in Hong Kong's rating reflects Moody's view that credit trends in China will continue to have a significant impact on Hong Kong's credit profile due to close and tightening economic, financial and political linkages with the mainland," it said in a statement. "The institutional features which grant Hong Kong, at present, a degree of political and economic independence -- together with the SAR's intrinsic credit strengths -- allow Hong Kong's rating to exceed that of China. But the two ratings, like the two regions, remain closely linked," it said. Moody's cut Hong Kong from Aa1 to Aa2 but upped its outlook from negative to stable. Earlier it had downgraded China to A1 from Aa3 -- its first since 1989 months after the Tiananmen Square crackdown -- and also increased its outlook to stable from negative. It affirmed the Aa3 rating of Macau and upgraded its outlook to stable from negative. Hong Kong's Finance Secretary Paul Chan said Thursday he "strongly disagreed" with the move. "We are of the view that Moody’s has overlooked the sound economic fundamentals, robust financial regulatory regime, resilient banking sector and strong fiscal position that Hong Kong has," Chan said. He also said the Belt and Road initiative will help Hong Kong businesses enter new markets, boosting the city’s economy, adding China is also a "key source of growth" for the global economy. Jackson Wong, of Huarong International Securities, told AFP that he did not see the downgrade as necessary and it would have little impact on the city. "I don't think it will affect investors' view on Hong Kong because they believe Hong Kong has a strong financial system. As of now the city, in every aspect, is still very strong and I don't see any deterioration. Hong Kong is semi-autonomous after it was handed back to China by Britain in 1997. It preserved its financial and judicial systems and enjoys liberties not seen on the mainland. (AFP)

Moody's slashes Hong Kong rating following China cut

Moody&#39;s Investors Service downgraded China&#39;s credit ratings on Wednesday for the first time in nearly 30 years, saying it expects the financial strength of the economy will erode in coming years as growth slows and debt continues to rise.

The one-notch downgrade in long-term local and foreign currency issuer ratings, to A1 from Aa3, comes as the Chinese government grapples with the challenges of rising financial risks stemming from years of credit-fueled stimulus.

&quot;The downgrade reflects Moody&#39;s expectation that China&#39;s financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows,&quot; the ratings agency said in a statement, changing its outlook for China to stable from negative.

China&#39;s Finance Ministry said the downgrade, Moody&#39;s first for the country since 1989, overestimated the risks to the economy and was based on &quot;inappropriate methodology&quot;.

&ldquo;Moody&rsquo;s views that China&rsquo;s non-financial debt will rise rapidly and the government would continue to maintain growth via stimulus measures are exaggerating difficulties facing the Chinese economy, and underestimating the Chinese government&rsquo;s ability to deepen supply-side structural reform and appropriately expand aggregate demand,&rdquo; the ministry said in a statement.

China&#39;s leaders have identified the containment of financial risks and asset bubbles as a top priority this year. All the same, authorities are moving cautiously to avoid knocking economic growth, gingerly raising short-term interest rates while tightening regulatory supervision.

At the same time, Beijing&#39;s need to deliver on official growth targets is likely to make the economy increasingly reliant on stimulus, Moody&#39;s said.

&quot;While ongoing progress on reforms is likely to transform the economy and financial system over time, it is not likely to prevent a further material rise in economy-wide debt, and the consequent increase in contingent liabilities for the government,&quot; it said.

While the downgrade is likely to modestly increase the cost of borrowing for the Chinese government and its state-owned enterprises (SOEs), it remains comfortably within the investment grade rating range.

World stocks inched lower after the move, though Shanghai&#39;s main index recouped early losses to end marginally higher.

&quot;After being very much at the front and center of global risk sentiment at the beginning of last year, the Chinese slowdown story has been almost forgotten, with politics throughout Europe and the US&nbsp;taking the limelight,&quot; said David Cheetham, chief market analyst at brokerage XTB.

The yuan currency briefly dipped against the US&nbsp;dollar in offshore trading, as did the Australian dollar, often seen as a proxy for China risk.

&quot;It&#39;s going to be quite negative in terms of sentiment, particularly at a time when China is looking to de-risk the banking system (and) when there&rsquo;s going to be some potential restructuring of SOEs,&quot; said Vishnu Varathan, Asia head of economics and strategy at Mizuho Bank&#39;s Treasury division.

Growth to slow

In March 2016, Moody&#39;s cut its outlook on China&#39;s ratings to negative from stable, citing rising debt and uncertainty about authorities&#39; ability to carry out reforms.

Rival ratings agency Standard &amp; Poor&#39;s downgraded its outlook to negative in the same month. S&amp;P&#39;s AA- rating is one notch above both Moody&#39;s and Fitch Ratings, leading to speculation among analysts that S&amp;P could also downgrade soon.

&quot;We understand the risk and the reason for the&nbsp;downgrade, but due to China being a unique system &ndash; (with a) closed capital account and strong government control over all important sectors - it can tolerate a higher debt level,&quot; said Edmund Goh, a Kuala Lumpur-based investment manager at Aberdeen Asset Management.

The slowing economy has become an increasingly sensitive topic in China, with authorities directing mainland Chinese economists and journalists toward more positive messaging.

Authorities have stepped up efforts over the last several months to curb debt and housing risks, and a raft of recent data has signalled a cooling in the economy, which grew a solid 6.9 per cent in the first quarter.

China&#39;s potential economic growth was likely to slow toward 5 per cent in coming years, but the cooldown is likely to be gradual due to further doses of fiscal stimulus, Moody&#39;s said.

Debt under control?

The Finance Ministry said continued mid- to high-level economic growth &quot;will provide fundamental support to fend off local government debt risks. China&rsquo;s government debt risks will not change dramatically in 2018-2020 from 2016.&quot;

The state planner, the National Development and Reform Commission (NDRC), said debt risks are generally controllable as measures to lower corporate leverage have achieved initial results, and systemic risks from debt are relatively low.

In a statement on its website hours after Moody&#39;s downgrade, the NDRC said China&#39;s debt level is not high in absolute terms compared with developed countries such as the United States and Britain, and the growth rate is &quot;clearly&quot; moderating.

&quot;China&#39;s debt is mostly domestic,&quot; it added. &quot;And our leverage is supported by a high deposit rate (at around 50 per cent), (so) the possibility to trigger systemic risks is relatively low.&quot;

Government-led stimulus has been a major driver of China&#39;s growth over recent years, but has also been accompanied by runaway credit growth that has created a mountain of debt - now standing at nearly 300 per cent of gross domestic product (GDP).

Julian Evans-Pritchard, China economist at Capital Economics in Singapore, said steps to resolve the debt overhang, such as debt-for-equity swaps at state companies, were insufficient to deal with the&nbsp;problem.

&quot;It&rsquo;s reached the point where the bad debt problem is just so large the government will have to step in to resolve it at some point, and that obviously means at some point a sizeable increase in government debt,&quot; he said.

Moody&#39;s said it expects the government&#39;s direct debt burden to rise gradually toward 40 per cent of GDP by 2018 &quot;and closer to 45 per cent by the end of the decade&quot;.

A growing number of economists believe that a massive bank bailout may be inevitable in China as bad loans mount.

Last September, the Bank for International Settlements (BIS) warned that excessive credit growth in China signalled an increasing risk of a banking crisis within three years.

(Reuters)

The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years

Moody's Investors Service downgraded China's credit ratings on Wednesday for the first time in nearly 30 years, saying it expects the financial strength of the economy will erode in coming years as growth slows and debt continues to rise. The one-notch downgrade in long-term local and foreign currency issuer ratings, to A1 from Aa3, comes as the Chinese government grapples with the challenges of rising financial risks stemming from years of credit-fueled stimulus. "The downgrade reflects Moody's expectation that China's financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows," the ratings agency said in a statement, changing its outlook for China to stable from negative. China's Finance Ministry said the downgrade, Moody's first for the country since 1989, overestimated the risks to the economy and was based on "inappropriate methodology". “Moody’s views that China’s non-financial debt will rise rapidly and the government would continue to maintain growth via stimulus measures are exaggerating difficulties facing the Chinese economy, and underestimating the Chinese government’s ability to deepen supply-side structural reform and appropriately expand aggregate demand,” the ministry said in a statement. China's leaders have identified the containment of financial risks and asset bubbles as a top priority this year. All the same, authorities are moving cautiously to avoid knocking economic growth, gingerly raising short-term interest rates while tightening regulatory supervision. At the same time, Beijing's need to deliver on official growth targets is likely to make the economy increasingly reliant on stimulus, Moody's said. "While ongoing progress on reforms is likely to transform the economy and financial system over time, it is not likely to prevent a further material rise in economy-wide debt, and the consequent increase in contingent liabilities for the government," it said. While the downgrade is likely to modestly increase the cost of borrowing for the Chinese government and its state-owned enterprises (SOEs), it remains comfortably within the investment grade rating range. World stocks inched lower after the move, though Shanghai's main index recouped early losses to end marginally higher. "After being very much at the front and center of global risk sentiment at the beginning of last year, the Chinese slowdown story has been almost forgotten, with politics throughout Europe and the US taking the limelight," said David Cheetham, chief market analyst at brokerage XTB. The yuan currency briefly dipped against the US dollar in offshore trading, as did the Australian dollar, often seen as a proxy for China risk. "It's going to be quite negative in terms of sentiment, particularly at a time when China is looking to de-risk the banking system (and) when there’s going to be some potential restructuring of SOEs," said Vishnu Varathan, Asia head of economics and strategy at Mizuho Bank's Treasury division. Growth to slow In March 2016, Moody's cut its outlook on China's ratings to negative from stable, citing rising debt and uncertainty about authorities' ability to carry out reforms. Rival ratings agency Standard & Poor's downgraded its outlook to negative in the same month. S&P's AA- rating is one notch above both Moody's and Fitch Ratings, leading to speculation among analysts that S&P could also downgrade soon. "We understand the risk and the reason for the downgrade, but due to China being a unique system – (with a) closed capital account and strong government control over all important sectors - it can tolerate a higher debt level," said Edmund Goh, a Kuala Lumpur-based investment manager at Aberdeen Asset Management. The slowing economy has become an increasingly sensitive topic in China, with authorities directing mainland Chinese economists and journalists toward more positive messaging. Authorities have stepped up efforts over the last several months to curb debt and housing risks, and a raft of recent data has signalled a cooling in the economy, which grew a solid 6.9 per cent in the first quarter. China's potential economic growth was likely to slow toward 5 per cent in coming years, but the cooldown is likely to be gradual due to further doses of fiscal stimulus, Moody's said. Debt under control? The Finance Ministry said continued mid- to high-level economic growth "will provide fundamental support to fend off local government debt risks. China’s government debt risks will not change dramatically in 2018-2020 from 2016." The state planner, the National Development and Reform Commission (NDRC), said debt risks are generally controllable as measures to lower corporate leverage have achieved initial results, and systemic risks from debt are relatively low. In a statement on its website hours after Moody's downgrade, the NDRC said China's debt level is not high in absolute terms compared with developed countries such as the United States and Britain, and the growth rate is "clearly" moderating. "China's debt is mostly domestic," it added. "And our leverage is supported by a high deposit rate (at around 50 per cent), (so) the possibility to trigger systemic risks is relatively low." Government-led stimulus has been a major driver of China's growth over recent years, but has also been accompanied by runaway credit growth that has created a mountain of debt - now standing at nearly 300 per cent of gross domestic product (GDP). Julian Evans-Pritchard, China economist at Capital Economics in Singapore, said steps to resolve the debt overhang, such as debt-for-equity swaps at state companies, were insufficient to deal with the problem. "It’s reached the point where the bad debt problem is just so large the government will have to step in to resolve it at some point, and that obviously means at some point a sizeable increase in government debt," he said. Moody's said it expects the government's direct debt burden to rise gradually toward 40 per cent of GDP by 2018 "and closer to 45 per cent by the end of the decade". A growing number of economists believe that a massive bank bailout may be inevitable in China as bad loans mount. Last September, the Bank for International Settlements (BIS) warned that excessive credit growth in China signalled an increasing risk of a banking crisis within three years. (Reuters)

Moody's downgrades China for the first time since 1989

WION Wallet: Africa development bank meet and more

India&#39;s ambitious plan to push electric vehicles at the expense of other technologies could benefit Chinese car makers seeking to enter the market, but is worrying established automakers in the country who have so far focused on making hybrid models.

India&#39;s most influential government think-tank unveiled a policy blueprint this month aimed at electrifying all vehicles in the country by 2032, in a move that is catching the attention of car makers that are already investing in electric technology in China such as BYD and SAIC.

The May 12 report by Niti Aayog, the planning body headed by Prime Minister Narendra Modi, recommends lower taxes and loan interest rates on electric vehicles while capping sales of petrol and diesel cars, seen as a radical shift in policy.

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<h5>While the Niti Aayog report has not yet been formally adopted, government sources have said it was likely to form the basis of a new green cars policy</h5>
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India also plans to impose higher taxes on hybrid vehicles compared with electric, under a new unified tax regime set to come into effect from July 1, upsetting car makers like Maruti Suzuki and Toyota Motor.

The prospect of India aggressively promoting electric vehicles was a &quot;big opportunity&quot;, a source close to SAIC, China&#39;s biggest automaker, told Reuters.

&quot;For a newcomer, this is a good chance to establish a modern, innovative brand image,&quot; the source said, although they added the company would need more clarity on policy before deciding whether to launch electric vehicles in India.

Earlier this year SAIC set up a local unit called MG Motor which is finalising plans to buy a car manufacturing plant in western India. A spokesman at SAIC did not comment specifically on the company&#39;s India plans.

Warren Buffett-backed BYD already builds electric buses in the country, while rival Chongqing Changan has said it may enter India by 2020.

BYD said in a statement the company would have &quot;a lot more confidence&quot; to engage in the Indian market if the government supported the proposed policy. The company said it would look at increasing its investment in India but did not give details on how it would expand its business and market share.

HIGH COSTS

While the Niti Aayog report has not yet been formally adopted, government sources have said it was likely to form the basis of a new green cars policy.

If so, India would be following similar moves by China, which has been aggressively pushing clean vehicle technologies. But emulating China&#39;s success could be tough.

Electric vehicles are expensive due to high battery costs, and car makers say a lack of charging stations in India could make the whole proposition unviable.

The proposed policy focuses on electric vehicles, and is likely to also include plug-in hybrids. But it overlooks conventional hybrid models already sold in India, such as Toyota&#39;s Camry sedan, Honda Motor&#39;s Accord sedan and so-called mild hybrids built by Maruti Suzuki.

Hybrids combine fossil fuel and electric power, with mild hybrids making less use of the latter.

In doubling down on electric power India would be shifting away from its previous policy, announced in 2015, that supported hybrid and electric technology.

That could delay investments in India, expected to be the world&#39;s third-largest passenger car market within the next decade, according to industry executives and analysts.

&quot;All these policy changes will affect future products and investments,&quot; said Puneet Gupta, South Asia manager at consultant IHS Markit, adding that most car makers would need to rethink product launches, especially of hybrids.

ECONOMIC GAP

Mahindra &amp; Mahindra is the only electric car maker in India but has struggled to ramp up sales, blaming low buyer interest and insufficient infrastructure.

Pawan Goenka, managing director at Mahindra said the company was working with the government and other private players to set up charging stations in India. Mahindra was also focusing on developing electric fleet cars and taxis, Goenka said.

The cost of setting up a car charging station in India ranges from $500 to $25,000, depending on the charging speed, according to a 2016 report by online journal IOPscience.

While the proposed policy suggests setting up battery swapping stations and using tax revenues from sales of petrol and diesel vehicles to set up charging stations, it does not specify the investment needed or whether the government would contribute.

&quot;For full electric vehicles, the economic gap remains huge and the charging infrastructure needed does not exist,&quot; said a spokesman at Tata Motors. The company makes electric buses and is working on developing electric and hybrid cars.

DELAYED PLANS

Most automakers have focused on bringing in hybrid models that are seen as a stepping stone to electrification. Toyota recently launched its luxury hybrid brand Prius in India, while Hyundai Motor plans to debut its Ioniq hybrid sedan next year.

Maruti&#39;s parent Suzuki Motor, along with Toshiba and Denso, plans to invest 20 billion yen ($180 million) to set up a lithium ion battery plant in India which would support Maruti&#39;s plan to build more hybrids.

But the apparent sharp shift in policymakers&#39; thinking in favour of electrification is forcing automakers like Toyota and Nissan Motor to seek more clarity before finalising future products for India, while Hyundai may delay new launches.

Toyota, the world&#39;s No. 2 carmaker by sales, had planned to have a hybrid variant for all its vehicles in India, but the company&#39;s future launches would now depend on the new policy, said Shekar Viswanathan, vice chairman of its Indian subsidiary.

Nissan, which plans to launch a hybrid SUV later this year, said in a statement it was waiting for more clarity before deciding whether to bring electric cars to India.

A plan by Hyundai to launch at least three hybrid cars in India in 2019-2020 would likely to be delayed, said a source.

Hyundai did not comment on queries related to delays.

&quot;If the government will be aggressive on electric vehicles and not support other technologies, companies will need to rethink investments,&quot; said an executive with an Asian carmaker.

(Reuters)

The Niti Aayog unveiled a policy blueprint this month aimed at electrifying all vehicles in the country by 2032

India's ambitious plan to push electric vehicles at the expense of other technologies could benefit Chinese car makers seeking to enter the market, but is worrying established automakers in the country who have so far focused on making hybrid models. India's most influential government think-tank unveiled a policy blueprint this month aimed at electrifying all vehicles in the country by 2032, in a move that is catching the attention of car makers that are already investing in electric technology in China such as BYD and SAIC. The May 12 report by Niti Aayog, the planning body headed by Prime Minister Narendra Modi, recommends lower taxes and loan interest rates on electric vehicles while capping sales of petrol and diesel cars, seen as a radical shift in policy. While the Niti Aayog report has not yet been formally adopted, government sources have said it was likely to form the basis of a new green cars policy × India also plans to impose higher taxes on hybrid vehicles compared with electric, under a new unified tax regime set to come into effect from July 1, upsetting car makers like Maruti Suzuki and Toyota Motor. The prospect of India aggressively promoting electric vehicles was a "big opportunity", a source close to SAIC, China's biggest automaker, told Reuters. "For a newcomer, this is a good chance to establish a modern, innovative brand image," the source said, although they added the company would need more clarity on policy before deciding whether to launch electric vehicles in India. Earlier this year SAIC set up a local unit called MG Motor which is finalising plans to buy a car manufacturing plant in western India. A spokesman at SAIC did not comment specifically on the company's India plans. Warren Buffett-backed BYD already builds electric buses in the country, while rival Chongqing Changan has said it may enter India by 2020. BYD said in a statement the company would have "a lot more confidence" to engage in the Indian market if the government supported the proposed policy. The company said it would look at increasing its investment in India but did not give details on how it would expand its business and market share. HIGH COSTS While the Niti Aayog report has not yet been formally adopted, government sources have said it was likely to form the basis of a new green cars policy. If so, India would be following similar moves by China, which has been aggressively pushing clean vehicle technologies. But emulating China's success could be tough. Electric vehicles are expensive due to high battery costs, and car makers say a lack of charging stations in India could make the whole proposition unviable. The proposed policy focuses on electric vehicles, and is likely to also include plug-in hybrids. But it overlooks conventional hybrid models already sold in India, such as Toyota's Camry sedan, Honda Motor's Accord sedan and so-called mild hybrids built by Maruti Suzuki. Hybrids combine fossil fuel and electric power, with mild hybrids making less use of the latter. In doubling down on electric power India would be shifting away from its previous policy, announced in 2015, that supported hybrid and electric technology. That could delay investments in India, expected to be the world's third-largest passenger car market within the next decade, according to industry executives and analysts. "All these policy changes will affect future products and investments," said Puneet Gupta, South Asia manager at consultant IHS Markit, adding that most car makers would need to rethink product launches, especially of hybrids. ECONOMIC GAP Mahindra & Mahindra is the only electric car maker in India but has struggled to ramp up sales, blaming low buyer interest and insufficient infrastructure. Pawan Goenka, managing director at Mahindra said the company was working with the government and other private players to set up charging stations in India. Mahindra was also focusing on developing electric fleet cars and taxis, Goenka said. The cost of setting up a car charging station in India ranges from $500 to $25,000, depending on the charging speed, according to a 2016 report by online journal IOPscience. While the proposed policy suggests setting up battery swapping stations and using tax revenues from sales of petrol and diesel vehicles to set up charging stations, it does not specify the investment needed or whether the government would contribute. "For full electric vehicles, the economic gap remains huge and the charging infrastructure needed does not exist," said a spokesman at Tata Motors. The company makes electric buses and is working on developing electric and hybrid cars. DELAYED PLANS Most automakers have focused on bringing in hybrid models that are seen as a stepping stone to electrification. Toyota recently launched its luxury hybrid brand Prius in India, while Hyundai Motor plans to debut its Ioniq hybrid sedan next year. Maruti's parent Suzuki Motor, along with Toshiba and Denso, plans to invest 20 billion yen ($180 million) to set up a lithium ion battery plant in India which would support Maruti's plan to build more hybrids. But the apparent sharp shift in policymakers' thinking in favour of electrification is forcing automakers like Toyota and Nissan Motor to seek more clarity before finalising future products for India, while Hyundai may delay new launches. Toyota, the world's No. 2 carmaker by sales, had planned to have a hybrid variant for all its vehicles in India, but the company's future launches would now depend on the new policy, said Shekar Viswanathan, vice chairman of its Indian subsidiary. Nissan, which plans to launch a hybrid SUV later this year, said in a statement it was waiting for more clarity before deciding whether to bring electric cars to India. A plan by Hyundai to launch at least three hybrid cars in India in 2019-2020 would likely to be delayed, said a source. Hyundai did not comment on queries related to delays. "If the government will be aggressive on electric vehicles and not support other technologies, companies will need to rethink investments," said an executive with an Asian carmaker. (Reuters)

India's electric car push likely to benefit Chinese manufacturers

Indian digital payments firm Paytm launched a niche payments bank on Tuesday, aiming to acquire 500 million customers in the next three years, the company said in a statement.

Paytm, which runs India&#39;s biggest electronic wallet, said it will offer an interest rate of 4 per cent per annum on deposits.

The Paytm Payments Bank aims to open 31 branches and 3,000 customer service points in its first year of operations, the company said.

A payments bank is an institution that can take deposits and remittances but cannot lend.

(Reuters)

A payments bank is an institution that can take deposits and remittances but cannot lend

Indian digital payments firm Paytm launched a niche payments bank on Tuesday, aiming to acquire 500 million customers in the next three years, the company said in a statement. Paytm, which runs India's biggest electronic wallet, said it will offer an interest rate of 4 per cent per annum on deposits. The Paytm Payments Bank aims to open 31 branches and 3,000 customer service points in its first year of operations, the company said. A payments bank is an institution that can take deposits and remittances but cannot lend. (Reuters)

Paytm launches payments bank

Last week, China became the <a href="http://www.cctvplus.com/news/20170518/8050794.shtml#!language=1">first country</a> to stably and continuously produce gas from methane hydrate.

Methane hydrate is one of the world&#39;s largest untapped sources of energy, with reserves <a href="http://www.cctvplus.com/news/20170518/8050794.shtml#!language=1">twice</a> that of coal, oil and natural gas combined. It is usually found under the ocean bed, but because of difficulties involved in recovering it, it has not been exploited so far.

Countries such as China and Japan are increasingly making attempts to tap these reserves in their waters. Could India take a leaf out of their book and make use of this resource?

The motivation for China&nbsp;and Japan

China <a href="http://www.cctvplus.com/news/20170518/8050794.shtml#!language=1">produced</a> at least 10,000 cubic metres of methane for eight days in a row at&nbsp;their mining project in the South China sea. Japan is trying to better this by producing gas for <a href="https://www.ft.com/content/84abdc56-30b0-11e7-9555-23ef563ecf9a">four weeks</a> in a test well off the coast of central Japan.

Japan was actually the first to extract methane with an offshore platform <a href="http://uk.reuters.com/article/japan-methane-hydrate-idUKL3N1HI1KA">back in 2013</a>, but the flow lasted less than a week before problems crept in.

<iframe allowfullscreen="" frameborder="0" height="315" src="https://www.youtube.com/embed/WCnXp_c9stg" width="560"></iframe>

China is especially motivated to&nbsp;develop&nbsp;this technology because it is the <a href="http://www.reuters.com/article/us-china-economy-trade-crude-idUSKBN1570VJ">second-largest</a> importer of crude oil in the world. Japan is in a similar predicament, as it is presently the world&#39;s <a href="http://uk.reuters.com/article/japan-methane-hydrate-idUKL3N1HI1KA">biggest importer</a> of liquefied natural gas.

Right now extracting methane is not technically viable, let alone being commercially viable. But the progress made by China and Japan shows that day is not far away. In fact, Japan is hoping to produce methane on a commercial scale 10 years from now, <a href="http://uk.reuters.com/article/japan-methane-hydrate-idUKL3N1HI1KA">by 2027</a>.

Why methane hydrate matters for India

Global reserves of gas stored in methane hydrate are <a href="https://www.ft.com/content/8925cbb4-7157-11e3-8f92-00144feabdc0">estimated</a> to be in the range of 3,000 - 140,000 trillion cubic metres. Around 1,900 trillion cubic metres of methane are present in the seas around India, according to one <a href="http://economictimes.indiatimes.com/opinion/columnists/swaminathan-s-a-aiyar/tapping-massive-deposits-of-fire-ice-methane-hydrate-can-change-indias-energy-landscape/articleshow/19014438.cms">report</a>.

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There are potential reserves of methane hydrate in these basins (WION)
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In fact, a gas reserve was <a href="http://timesofindia.indiatimes.com/business/india-business/ONGC-hydrates-discovery-may-be-4-times-bigger-than-RILs-gas-find/articleshow/50505577.cms">discovered two years ago</a> in 2015 in the Krishna-Godavari basin off the eastern coast of India. The reserve is said to have a potential four trillion cubic metres of gas and there are said to be <a href="http://dghindia.gov.in/index.php/page?pageId=39">more reserves</a> in the Mahanadi and Andaman basins in the Bay of Bengal.

Given how India could be the world&#39;s third-biggest consumer of energy <a href="http://www.business-standard.com/article/economy-policy/india-to-be-world-s-3rd-largest-energy-user-by-2020-shinde-112042103005_1.html">by 2020</a>, it would do well to meet growing demand by tapping this huge resource just off its shores.

East Asian powers are trying to tap methane hydrate as a potential source of energy. Is India even in the conversation?

Last week, China became the first country to stably and continuously produce gas from methane hydrate. Methane hydrate is one of the world's largest untapped sources of energy, with reserves twice that of coal, oil and natural gas combined. It is usually found under the ocean bed, but because of difficulties involved in recovering it, it has not been exploited so far. Countries such as China and Japan are increasingly making attempts to tap these reserves in their waters. Could India take a leaf out of their book and make use of this resource? The motivation for China and Japan China produced at least 10,000 cubic metres of methane for eight days in a row at their mining project in the South China sea. Japan is trying to better this by producing gas for four weeks in a test well off the coast of central Japan. Japan was actually the first to extract methane with an offshore platform back in 2013, but the flow lasted less than a week before problems crept in. China is especially motivated to develop this technology because it is the second-largest importer of crude oil in the world. Japan is in a similar predicament, as it is presently the world's biggest importer of liquefied natural gas. Right now extracting methane is not technically viable, let alone being commercially viable. But the progress made by China and Japan shows that day is not far away. In fact, Japan is hoping to produce methane on a commercial scale 10 years from now, by 2027. Why methane hydrate matters for India Global reserves of gas stored in methane hydrate are estimated to be in the range of 3,000 - 140,000 trillion cubic metres. Around 1,900 trillion cubic metres of methane are present in the seas around India, according to one report. There are potential reserves of methane hydrate in these basins (WION) × In fact, a gas reserve was discovered two years ago in 2015 in the Krishna-Godavari basin off the eastern coast of India. The reserve is said to have a potential four trillion cubic metres of gas and there are said to be more reserves in the Mahanadi and Andaman basins in the Bay of Bengal. Given how India could be the world's third-biggest consumer of energy by 2020, it would do well to meet growing demand by tapping this huge resource just off its shores.

China, Japan way ahead of India in new gas race

General Motors, commonly known in India as the auto company that sold the Chevrolet brand of cars in the country decided last week that it will shut shop and say goodbye to the world's fifth-largest car market

What went wrong with General Motors in India? (WION Wallet)

India Grid Trust&#39;s initial public offering to raise up to $347 million was 1.35 times subscribed on Friday, the last day of the sale, stock exchange data showed.

Investors bid for about 170 million shares, compared with about 126 million shares on offer, according to data from the National Stock Exchange.

India Grid is the second Indian infrastructure investment trust to go public, following on the heels of IRB InvIT Fund&#39;s IPO this month that raised 50.3 billion rupees and was subscribed 8.6 times.

IRB InvIT made a tepid trading debut on Thursday, which analysts said could potentially act as a dampener for similar upcoming listings.

Infrastructure investment trusts and real estate investment trusts invest in rent-yielding assets and distribute most of their income to shareholders as dividends.

India Grid Trust, which owns two revenue-generating transmission assets in central India, had raised 10.12 billion rupees from 19 anchor investors at the upper end of the price band from so-called IPO anchor investors.

Morgan Stanley, Citigroup and Edelweiss were the banks arranging the IPO.

Construction company PSP Projects, whose IPO to raise 2.12 billion rupees also closed on Friday, received bids 8.6 times the number of shares on offer.

(Reuters)

Investors bid for about 170 million shares, compared with about 126 million shares on offer, according to data from the National Stock Exchange

India Grid Trust's initial public offering to raise up to $347 million was 1.35 times subscribed on Friday, the last day of the sale, stock exchange data showed. Investors bid for about 170 million shares, compared with about 126 million shares on offer, according to data from the National Stock Exchange. India Grid is the second Indian infrastructure investment trust to go public, following on the heels of IRB InvIT Fund's IPO this month that raised 50.3 billion rupees and was subscribed 8.6 times. IRB InvIT made a tepid trading debut on Thursday, which analysts said could potentially act as a dampener for similar upcoming listings. Infrastructure investment trusts and real estate investment trusts invest in rent-yielding assets and distribute most of their income to shareholders as dividends. India Grid Trust, which owns two revenue-generating transmission assets in central India, had raised 10.12 billion rupees from 19 anchor investors at the upper end of the price band from so-called IPO anchor investors. Morgan Stanley, Citigroup and Edelweiss were the banks arranging the IPO. Construction company PSP Projects, whose IPO to raise 2.12 billion rupees also closed on Friday, received bids 8.6 times the number of shares on offer. (Reuters)

India Grid Trust IPO fully subscribed on last day of sale

South Korean car manufacturers Hyundai and Kia were <a href="http://www.wionews.com/science-tech/hyundai-kia-ordered-to-recall-vehicles-after-whistleblower-report-15490">ordered by authorities to recall</a> 240,000 vehicles in South Korea. This was a result of several defects discovered, including issues with the <a href="http://www.wionews.com/science-tech/hyundai-kia-ordered-to-recall-vehicles-after-whistleblower-report-15490">parking brake lights</a> and fuel hoses, and would affect models such as the Hyundai Elantra and Sonata.

This recall, though pales in comparison to a recall last month for 1.5 million cars in the US and South Korea from the same manufacturers. This was for 5 models including Hyundai&#39;s Sonata and Grandeur and was done because of potential engine stalling.

Here&#39;s a look at the various recalls that have been issued this year, compiled from news reports.

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If you look at the table above, you will see that several recalls have to do with airbags, especially those made by Takata. 13 carmakers issued a recall for <a href="http://www.nbcnews.com/business/autos/over-652k-vehicles-involved-latest-takata-airbag-recall-n708811">652,000 cars</a> in the US in March, cars which were fitted with the Takata airbags.

This is actually part of the world&#39;s largest recall, which started <a href="https://www.bloomberg.com/news/features/2016-06-02/sixty-million-car-bombs-inside-takata-s-air-bag-crisis">first in 2008</a> and could potentially affect over 100 million vehicles from several manufacturers. The issue was that because of a volatile chemical in the airbags, it could suddenly explode and send metal shrapnel into passengers. At least<a href="http://www.huffingtonpost.com/entry/majority-of-money-in-airbag-fraud-settlement-slated-for-automakers-not-actual-victims_us_58b3884ce4b060480e090796"> 11 have died and 200 hurt</a> in the US because of these exploding Takata airbags.

Car owners in India have been affected by the Takata recall too in 2017 with <a href="http://www.financialexpress.com/auto/car-news/honda-recalls-41850-units-of-jazz-city-accord-and-civic-over-airbag-failure/532163/">Honda recalling</a> around 42,000 cars&mdash;including models such as the City, Accord and Civic&mdash;and Toyota recalling 23,000 units of the <a href="http://www.financialexpress.com/auto/car-news/toyota-to-recall-over-23000-units-of-corolla-altis-in-india-over-faulty-takata-airbags/618968/">Corolla Altis</a>.

Because there is no official policy on car recalls in India, presently any such recall is <a href="http://pibregional.nic.in/PressReleseDetail.aspx?PRID=1487569">voluntarily done</a> by the manufacturer.

Carmakers Hyundai and Kia recalled 240,000 cars this week. So who else has recalled their cars this year?

South Korean car manufacturers Hyundai and Kia were ordered by authorities to recall 240,000 vehicles in South Korea. This was a result of several defects discovered, including issues with the parking brake lights and fuel hoses, and would affect models such as the Hyundai Elantra and Sonata. This recall, though pales in comparison to a recall last month for 1.5 million cars in the US and South Korea from the same manufacturers. This was for 5 models including Hyundai's Sonata and Grandeur and was done because of potential engine stalling. Here's a look at the various recalls that have been issued this year, compiled from news reports. If you look at the table above, you will see that several recalls have to do with airbags, especially those made by Takata. 13 carmakers issued a recall for 652,000 cars in the US in March, cars which were fitted with the Takata airbags. This is actually part of the world's largest recall, which started first in 2008 and could potentially affect over 100 million vehicles from several manufacturers. The issue was that because of a volatile chemical in the airbags, it could suddenly explode and send metal shrapnel into passengers. At least 11 have died and 200 hurt in the US because of these exploding Takata airbags. Car owners in India have been affected by the Takata recall too in 2017 with Honda recalling around 42,000 cars—including models such as the City, Accord and Civic—and Toyota recalling 23,000 units of the Corolla Altis. Because there is no official policy on car recalls in India, presently any such recall is voluntarily done by the manufacturer.

Analysis: Cars recalled worldwide in 2017

Listen to these pundits. Apparently, earlier we were living in some kind of a truth-utopia. There was free flow of information based on truth and facts. We were living in a free and democratic society.&nbsp;

Today we are living in a post-truth era where <a href="https://www.theguardian.com/media/2016/jul/12/how-technology-disrupted-the-truth">&#39;technology has disrupted truth&#39; </a>(The Guardian, 12 July 2016). They point to Facebook&#39;s newsfeed: any critical counter-facts are expunged and we get only what we want to hear or believe in. You end up living in your self-validating bubble, since counter-facts are filtered out. They call this a &#39;filter bubble&#39;. Apparently, all of the internet and media, academia and FM radio, are like this today.&nbsp;

How is life in this (filter) bubble? Well, like a rock falling straight down to the bottom of the ocean, you will, without these critical counter-facts, fall straight into the hands, the cold embrace, of dictators and fascists! Welcome to post-truth society!&nbsp;

<div class="ui-state-default" contenteditable="false">
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<h5>It is like you are hearing the story as already the collective voice of the nation, not the reportage of that news channel</h5>
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</div>

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<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text=It is like you are hearing the story as already the collective voice of the nation, not the reportage of that news channel" target="_blank">&nbsp;</a></div>
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&nbsp;

These days I hear a new addition to this post-truth apparatus: immersive TV. But let us immerse, I say. It won&#39;t be an immersion into a beautiful, paradisiacal French &#39;reverie&#39; - but still. Are you, after knowing about things like the filter bubble, scared to immerse? Are you scared to immerse in a way that you will soon lose sense of what is a fact and what is not? Do you dare? Each story will have an &#39;impact&#39;. The number of tweets and retweets on the story are flashed in bold even as the story is just reaching you - it is like you are hearing the story as already the collective voice of the nation, not the reportage of that news channel. Hence you better just believe in it, or else you will be left out in the cold!&nbsp;

You better act, and yell, as though you actually believe in it. It is retroactive: since you start acting as though you believe in it, you must actually be believing in it. If you kneel down in church and say your prayers everyday then you must be truly &#39;believing&#39;, you must be a &#39;believer&#39;. So long as you carry out these ritual practices and karamkand, whether or not you actually &#39;believe&#39; is a futile question. &nbsp;

Do the stone-pelters in Kashmir actually believe in azadi? What explains the fact that the very next day some of them would be lining up to join the police, the same police whom they are pelting stones at? I mean, as long as you are pelting stones at the right target, that is fine, the pelters are &#39;genuine&#39;. The thing must be looked at in momentary and ephemeral terms. So long as you are howling against the &#39;azadi brigade&#39;, or calling for the murder of more Pehlu Khans and trolling Gurmehar Kaur - that is good enough. You might be a &#39;bad Hindu&#39; but so long as you participate in trolling &#39;Pakistani agents&#39; and tweet your love for the Indian army, you are a votary of &#39;Hindu rashtra&#39;, or of a &#39;strong India&#39;. After a long day&#39;s work, you want to shoot down a few of those &#39;anti-nationals&#39; because of whom your life is shitty, or miserable, even though you are &#39;a rich and successful man&#39;!&nbsp;

&nbsp;

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<h5>Trump is then not lying or misleading when he utters what are factually untrue things - he is just bullshitting</h5>
</blockquote>
</div>

<div class="col-sm-1 blockquote-content">
<div class="share-blockquote"><a class="twitter popup" href="http://twitter.com/intent/tweet?text= Trump is then not lying or misleading when he utters what are factually untrue things - he is just bullshitting" target="_blank">&nbsp;</a></div>
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&nbsp;

So does Trump actually believe that Mexicans are rapists? Does he actually believe that Muslims are terrorists? He has a lot of investment in Muslim countries, and he hangs out with very &#39;peaceful&#39;, business-minded filthy-rich Arab sheikhs. Trump is then not lying or misleading when he utters what are factually untrue things - he is just bullshitting, as we know from reading Harry Frankfurt, the writer of the 1986 essay On Bullshit. Just see how Trump another moment can say just the opposite. No fidelity to the lie. Lying means concealing the truth - Trump might simply not &#39;know&#39; or care about the truth. &nbsp;

Lying would be more like what Congress leaders involved in the 1984 Sikh riots or BJP leaders involved in riots would be doing. That explains why they speak in measured, restrained terms, as Modi does, while someone like Trump is babbling away.&nbsp;

There is no prior belief in anything, any kind of fidelity to reality, necessary. This means the kneeling down and saying the prayers is enough: the question of real belief in God is redundant. Such is the teaching of Louis Althusser the French theorist: you do not need to believe in capitalism for capitalism to be able to reproduce itself with your full cooperation. You are free to be a diehard cynic. Do not believe in anything - just keep bullshitting.&nbsp;

So: the pundits have no clue. Life is fun inside the filter bubble. Life is exciting inside the &#39;troll cesspool&#39; - and busy, as you have to keep repeating the rituals of collective howling, racist abuses, stereotypes, sexual innuendoes, nationalist hyperventilation and so on. This is how the dominant narrative is set - &#39;narrative&#39; sounds too decent a word here. And this narrative (or hollering) is so set that no amount of counter-facts or &#39;the truth&#39; can expose it. For, the lying being mostly bullshitting was not based on denial of truth in the first place. Truth is not a casualty, truth is simply not a critical idea here. &nbsp;

Truth is irrelevant. Just as you couldn&#39;t defeat Trump with Hillary Clinton, or the BJP with Congress, since they were actually not lesser but perhaps the bigger evil, similarly you cannot counter this post-truth rush to the gutter by resort to truth. Those like Trump and Modi thrive in spite of all kinds of fact-checker media publications, like&nbsp;<a href="https://www.washingtonpost.com/news/the-fix/wp/2016/12/16/now-you-can-fact-check-trumps-tweets-in-the-tweets-themselves/?utm_term=.d82d366b9d7b">The Washington Post&#39;s fact-checker on Trump&#39;s tweets</a>.&nbsp;

Truth is lifeless and asinine in the hands of the so-called progressive media. Truth is a vested interest, creating the illusion of a pre-post truth free society. Truth is not just dead, you don&#39;t want it back.&nbsp;

&nbsp;

Volvo Cars will be working together with Volvo Group in India, using the truck maker's infrastructure and production licences

Listen to these pundits. Apparently, earlier we were living in some kind of a truth-utopia. There was free flow of information based on truth and facts. We were living in a free and democratic society. Today we are living in a post-truth era where 'technology has disrupted truth' (The Guardian, 12 July 2016). They point to Facebook's newsfeed: any critical counter-facts are expunged and we get only what we want to hear or believe in. You end up living in your self-validating bubble, since counter-facts are filtered out. They call this a 'filter bubble'. Apparently, all of the internet and media, academia and FM radio, are like this today. How is life in this (filter) bubble? Well, like a rock falling straight down to the bottom of the ocean, you will, without these critical counter-facts, fall straight into the hands, the cold embrace, of dictators and fascists! Welcome to post-truth society! It is like you are hearing the story as already the collective voice of the nation, not the reportage of that news channel × These days I hear a new addition to this post-truth apparatus: immersive TV. But let us immerse, I say. It won't be an immersion into a beautiful, paradisiacal French 'reverie' - but still. Are you, after knowing about things like the filter bubble, scared to immerse? Are you scared to immerse in a way that you will soon lose sense of what is a fact and what is not? Do you dare? Each story will have an 'impact'. The number of tweets and retweets on the story are flashed in bold even as the story is just reaching you - it is like you are hearing the story as already the collective voice of the nation, not the reportage of that news channel. Hence you better just believe in it, or else you will be left out in the cold! You better act, and yell, as though you actually believe in it. It is retroactive: since you start acting as though you believe in it, you must actually be believing in it. If you kneel down in church and say your prayers everyday then you must be truly 'believing', you must be a 'believer'. So long as you carry out these ritual practices and karamkand, whether or not you actually 'believe' is a futile question. Do the stone-pelters in Kashmir actually believe in azadi? What explains the fact that the very next day some of them would be lining up to join the police, the same police whom they are pelting stones at? I mean, as long as you are pelting stones at the right target, that is fine, the pelters are 'genuine'. The thing must be looked at in momentary and ephemeral terms. So long as you are howling against the 'azadi brigade', or calling for the murder of more Pehlu Khans and trolling Gurmehar Kaur - that is good enough. You might be a 'bad Hindu' but so long as you participate in trolling 'Pakistani agents' and tweet your love for the Indian army, you are a votary of 'Hindu rashtra', or of a 'strong India'. After a long day's work, you want to shoot down a few of those 'anti-nationals' because of whom your life is shitty, or miserable, even though you are 'a rich and successful man'! Trump is then not lying or misleading when he utters what are factually untrue things - he is just bullshitting × So does Trump actually believe that Mexicans are rapists? Does he actually believe that Muslims are terrorists? He has a lot of investment in Muslim countries, and he hangs out with very 'peaceful', business-minded filthy-rich Arab sheikhs. Trump is then not lying or misleading when he utters what are factually untrue things - he is just bullshitting, as we know from reading Harry Frankfurt, the writer of the 1986 essay On Bullshit. Just see how Trump another moment can say just the opposite. No fidelity to the lie. Lying means concealing the truth - Trump might simply not 'know' or care about the truth. Lying would be more like what Congress leaders involved in the 1984 Sikh riots or BJP leaders involved in riots would be doing. That explains why they speak in measured, restrained terms, as Modi does, while someone like Trump is babbling away. There is no prior belief in anything, any kind of fidelity to reality, necessary. This means the kneeling down and saying the prayers is enough: the question of real belief in God is redundant. Such is the teaching of Louis Althusser the French theorist: you do not need to believe in capitalism for capitalism to be able to reproduce itself with your full cooperation. You are free to be a diehard cynic. Do not believe in anything - just keep bullshitting. So: the pundits have no clue. Life is fun inside the filter bubble. Life is exciting inside the 'troll cesspool' - and busy, as you have to keep repeating the rituals of collective howling, racist abuses, stereotypes, sexual innuendoes, nationalist hyperventilation and so on. This is how the dominant narrative is set - 'narrative' sounds too decent a word here. And this narrative (or hollering) is so set that no amount of counter-facts or 'the truth' can expose it. For, the lying being mostly bullshitting was not based on denial of truth in the first place. Truth is not a casualty, truth is simply not a critical idea here. Truth is irrelevant. Just as you couldn't defeat Trump with Hillary Clinton, or the BJP with Congress, since they were actually not lesser but perhaps the bigger evil, similarly you cannot counter this post-truth rush to the gutter by resort to truth. Those like Trump and Modi thrive in spite of all kinds of fact-checker media publications, like The Washington Post's fact-checker on Trump's tweets. Truth is lifeless and asinine in the hands of the so-called progressive media. Truth is a vested interest, creating the illusion of a pre-post truth free society. Truth is not just dead, you don't want it back.

Volvo Cars to start vehicle assembly operations in India this year

Japan has posted its longest economic expansion in over a decade, government data showed Thursday, marking a win for Tokyo&#39;s growth bid even though its battle to conquer deflation is still far from won.

The world&#39;s number three economy grew 0.5 per cent in the first quarter -- or an annualised 2.2 per cent.&nbsp;

That was the fifth straight rise and up from a 0.3 per cent expansion in the last quarter of 2016.

Japan&#39;s prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm. The labour market is tight and business confidence is strong with firms investing more.

But consumer spending remains tepid and efforts to lift inflation have fallen flat despite years of aggressive monetary easing by Japan&#39;s central bank.&nbsp;

Private consumption picked up a modest 0.4 per cent in the first quarter from zero growth in the previous three months. Individual spending accounts for more than a half of Japan&#39;s GDP.

&quot;I can&#39;t give the &#39;all clear&#39; yet,&quot; said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.

&quot;Public works spending is helping prop up growth this year but it&#39;s tough to imagine that private spending is going to be a driving force for the economy.&quot;

Longest in a decade&nbsp; 
 
The latest reading nonetheless means Japan&#39;s economy has had its longest string of gains since 2006, during the tenure of popular former prime minister Junichiro Koizumi.

The figures are good news for the current prime minister Shinzo Abe -- whose brief and underwhelming first term as Japan&#39;s premier came directly after Koizumi.

A string of short-term leaders followed before Abe swept back to power in late 2012 on a pledge to reignite Japan&#39;s once-booming economy with a plan dubbed Abenomics.

The scheme -- a mix of huge monetary easing, government spending and reforms to the economy -- stoked a stock market rally and fattened corporate profits.&nbsp;

But there has been growing criticism about the plan&#39;s muted impact on the wider economy.

Still, the Bank of Japan and International Monetary Fund both recently lifted their projections for the country&#39;s growth rate.

A weak yen has helped prop up the economy as it makes Japanese exports more competitive and inflates profits when firms repatriate their foreign-earned income.

An improving global outlook with strong demand for Japanese smartphone parts, memory chips and construction machinery has also been a tailwind, analysts said.

&quot;With growing external demand set to continue, we believe there will be the need for many companies to replace machinery and equipment,&quot; Katsunori Kitakura, lead strategist at asset manager Sumitomo Mitsui Trust Group, said before Thursday&#39;s GDP figures were released.

Cash-rich firms have been stingy with pay hikes though, which hurts spending and acts like an anchor on the economy.

In March, some of Japan&#39;s top companies, including Toyota and Hitachi, announced their lowest wage rises in years.

&quot;Wages are still stagnating, despite sharp falls in unemployment,&quot; research house Capital Economics said in a commentary.

&quot;This seems to be because aggressive monetary easing has failed to lift expectations of future price rises among households and firms.

&quot;Unless this changes, the chances of inflation settling at two per cent or higher are slim,&quot; it added.

The Bank of Japan (BoJ), aiming to achieve two-percent inflation as a key part of Tokyo&#39;s growth bid, now expects to reach that goal by 2019 -- four years later than planned.

Despite healthy profits, many Japanese firms remain cautious about the world economy, partly due to worries that US President Donald Trump&#39;s protectionist leanings could hurt exports.

Japan has been struggling to defeat years of deflation and slow growth that followed the collapse of an equity and property market bubble in the early nineties.

Falling prices can discourage spending by consumers, who might postpone purchases until prices drop more or look to save money instead.&nbsp;

That puts pressure on businesses, creating a cycle in which firms then cut back on expanding production, hiring new workers or boosting wages. 
 
(AFP)

 
&nbsp;

The world's No 3 economy has now grown over five straight quarters

Japan has posted its longest economic expansion in over a decade, government data showed Thursday, marking a win for Tokyo's growth bid even though its battle to conquer deflation is still far from won. The world's number three economy grew 0.5 per cent in the first quarter -- or an annualised 2.2 per cent. That was the fifth straight rise and up from a 0.3 per cent expansion in the last quarter of 2016. Japan's prospects have been improving on the back of strong exports, with investments linked to the Tokyo 2020 Olympics also giving the economy a shot in the arm. The labour market is tight and business confidence is strong with firms investing more. But consumer spending remains tepid and efforts to lift inflation have fallen flat despite years of aggressive monetary easing by Japan's central bank. Private consumption picked up a modest 0.4 per cent in the first quarter from zero growth in the previous three months. Individual spending accounts for more than a half of Japan's GDP. "I can't give the 'all clear' yet," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo. "Public works spending is helping prop up growth this year but it's tough to imagine that private spending is going to be a driving force for the economy." Longest in a decade The latest reading nonetheless means Japan's economy has had its longest string of gains since 2006, during the tenure of popular former prime minister Junichiro Koizumi. The figures are good news for the current prime minister Shinzo Abe -- whose brief and underwhelming first term as Japan's premier came directly after Koizumi. A string of short-term leaders followed before Abe swept back to power in late 2012 on a pledge to reignite Japan's once-booming economy with a plan dubbed Abenomics. The scheme -- a mix of huge monetary easing, government spending and reforms to the economy -- stoked a stock market rally and fattened corporate profits. But there has been growing criticism about the plan's muted impact on the wider economy. Still, the Bank of Japan and International Monetary Fund both recently lifted their projections for the country's growth rate. A weak yen has helped prop up the economy as it makes Japanese exports more competitive and inflates profits when firms repatriate their foreign-earned income. An improving global outlook with strong demand for Japanese smartphone parts, memory chips and construction machinery has also been a tailwind, analysts said. "With growing external demand set to continue, we believe there will be the need for many companies to replace machinery and equipment," Katsunori Kitakura, lead strategist at asset manager Sumitomo Mitsui Trust Group, said before Thursday's GDP figures were released. Cash-rich firms have been stingy with pay hikes though, which hurts spending and acts like an anchor on the economy. In March, some of Japan's top companies, including Toyota and Hitachi, announced their lowest wage rises in years. "Wages are still stagnating, despite sharp falls in unemployment," research house Capital Economics said in a commentary. "This seems to be because aggressive monetary easing has failed to lift expectations of future price rises among households and firms. "Unless this changes, the chances of inflation settling at two per cent or higher are slim," it added. The Bank of Japan (BoJ), aiming to achieve two-percent inflation as a key part of Tokyo's growth bid, now expects to reach that goal by 2019 -- four years later than planned. Despite healthy profits, many Japanese firms remain cautious about the world economy, partly due to worries that US President Donald Trump's protectionist leanings could hurt exports. Japan has been struggling to defeat years of deflation and slow growth that followed the collapse of an equity and property market bubble in the early nineties. Falling prices can discourage spending by consumers, who might postpone purchases until prices drop more or look to save money instead. That puts pressure on businesses, creating a cycle in which firms then cut back on expanding production, hiring new workers or boosting wages. (AFP)

Japan economy posts longest expansion in a decade

&nbsp;General Motors Co will stop selling cars in India from the end of this year, drawing a line under two decades of battling in one of the world&#39;s most competitive markets where it has less than a one per cent share of passenger car sales.

The decision was announced as part of a series of restructuring actions from the Detroit automaker on Thursday, and marks a significant blow to India&#39;s strategy of encouraging domestic manufacturing.

GM says it would no longer market its Chevrolet brand - its only brand of cars marketed in India - despite India&#39;s promise as a market set to overtake Japan as the world&#39;s third largest in the next decade.

But it doesn&#39;t plan to leave India entirely.

It plans to keep operating its tech center in Bengaluru and to refocus its India manufacturing operations by making one of its two assembly plants in India &ndash; the one at Talegaon, about 100 km (62 miles) southeast of Mumbai &ndash; into an export-only factory. It plans to sell the Halol plant in Gujarat to Chinese joint venture partner SAIC Motor Corp .

&quot;We are not giving up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is extremely competitive,&quot; Stefan Jacoby, GM&#39;s chief of international operations, said in an interview.

GM&#39;s exports from India, mainly to Mexico and Latin America, nearly doubled to 70,969 vehicles in the fiscal year than ended on March 31. The Talegaon plant has a capacity of 130,000 vehicles a year.

Jacoby said the move to turn the Talegaon assembly into an export-only plant will not impact GM Korea and its position as an export hub. India will export vehicles mostly to Mexico and South America, among other destinations, while GM Korea will ship Korean-made cars to North America, Southeast Asia, Australia and Pakistan.

Dan Ammann, GM&rsquo;s global president, said the restructuring actions for India announced on Thursday in essence cancels &quot;most&quot; of the plan GM unveiled in 2015 to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a Global Emerging Market vehicle programme or GEM for short, and build a new line of low-cost vehicles in India.

The decisions to significantly scale down GM&#39;s operations in India are results of months of analysis over &quot;where we are going to place our bets (globally) as a company,&quot; Ammann said in an interview.

Latest blow

The move is the latest blow to Prime Minister Narendra Modi&#39;s &quot;Make in India initiative,&quot; aimed at making the country a global manufacturing powerhouse.

Last year, Ford Motor Co shelved plans to produce a new compact car family designed mainly for emerging markets. India and China had been slated to be the main manufacturing hubs for the new range that was set to begin production in 2018.

The auto sector is a major employment generator accounting for about 29 million direct and indirect jobs in India. Moreover, the $93 billion industry contributes 7.1 per cent to the nation&#39;s gross domestic product and almost 50 per cent of India&#39;s manufacturing output.

Ammann said GM looked at many options but determined that the investment originally planned for India would not deliver the kind of return other global opportunities offered.

GM plans to continue to work on the $5 billion GEM programme, which GM is developing with SAIC Motor. Ammann said the programme remains on track, even without India now, to account for about 2 million vehicles a year in global sales volume, mainly in Latin America, Mexico and China.

Despite being an early entrant, GM has struggled to boost its sales and market share in India in part because it has failed to launch low-cost yet feature-rich vehicles that Indian buyers prefer, according to analysts. Many of them also blame the high cost of maintaining and servicing Chevy cars for deterring cost-conscious buyers in India.&nbsp;

GM said in 2015 it aimed to double its India market share to around 3 per cent or more by 2020. But its market share fell to below 1 per cent in the year ended March 31 from 1.17 per cent the previous year - even as India&#39;s market grew 9 per cent to climb above the 3 million vehicle level. GM&#39;s volume in India fell by a fifth to 25,823 vehicles in the year ended March 31.

The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. But for India, GEM was still too pricey a technology since it has been designed under GM&#39;s global vehicle safety, performance and other standards.

To be successful in India, Jacoby said one option for GM was to &quot;give up on implementing global platform and vehicle standards&quot;. The other was to team up with a local partner to run full operations as an automaker designing products and manufacturing and marketing products locally.

&quot;We have made the decision that these two options are not for us,&quot; Jacoby said.

(Reuters)

GM says it would no longer market its Chevrolet brand - its only brand of cars marketed in India - despite India's promise as a market set to overtake Japan as the world's third largest in the next decade

General Motors Co will stop selling cars in India from the end of this year, drawing a line under two decades of battling in one of the world's most competitive markets where it has less than a one per cent share of passenger car sales. The decision was announced as part of a series of restructuring actions from the Detroit automaker on Thursday, and marks a significant blow to India's strategy of encouraging domestic manufacturing. GM says it would no longer market its Chevrolet brand - its only brand of cars marketed in India - despite India's promise as a market set to overtake Japan as the world's third largest in the next decade. But it doesn't plan to leave India entirely. It plans to keep operating its tech center in Bengaluru and to refocus its India manufacturing operations by making one of its two assembly plants in India – the one at Talegaon, about 100 km (62 miles) southeast of Mumbai – into an export-only factory. It plans to sell the Halol plant in Gujarat to Chinese joint venture partner SAIC Motor Corp . "We are not giving up benefits India offers as a local cost manufacturing hub with an excellent supplier base which is extremely competitive," Stefan Jacoby, GM's chief of international operations, said in an interview. GM's exports from India, mainly to Mexico and Latin America, nearly doubled to 70,969 vehicles in the fiscal year than ended on March 31. The Talegaon plant has a capacity of 130,000 vehicles a year. Jacoby said the move to turn the Talegaon assembly into an export-only plant will not impact GM Korea and its position as an export hub. India will export vehicles mostly to Mexico and South America, among other destinations, while GM Korea will ship Korean-made cars to North America, Southeast Asia, Australia and Pakistan. Dan Ammann, GM’s global president, said the restructuring actions for India announced on Thursday in essence cancels "most" of the plan GM unveiled in 2015 to invest $1 billion in India to deploy newly-designed vehicle architecture as part of a Global Emerging Market vehicle programme or GEM for short, and build a new line of low-cost vehicles in India. The decisions to significantly scale down GM's operations in India are results of months of analysis over "where we are going to place our bets (globally) as a company," Ammann said in an interview. Latest blow The move is the latest blow to Prime Minister Narendra Modi's "Make in India initiative," aimed at making the country a global manufacturing powerhouse. Last year, Ford Motor Co shelved plans to produce a new compact car family designed mainly for emerging markets. India and China had been slated to be the main manufacturing hubs for the new range that was set to begin production in 2018. The auto sector is a major employment generator accounting for about 29 million direct and indirect jobs in India. Moreover, the $93 billion industry contributes 7.1 per cent to the nation's gross domestic product and almost 50 per cent of India's manufacturing output. Ammann said GM looked at many options but determined that the investment originally planned for India would not deliver the kind of return other global opportunities offered. GM plans to continue to work on the $5 billion GEM programme, which GM is developing with SAIC Motor. Ammann said the programme remains on track, even without India now, to account for about 2 million vehicles a year in global sales volume, mainly in Latin America, Mexico and China. Despite being an early entrant, GM has struggled to boost its sales and market share in India in part because it has failed to launch low-cost yet feature-rich vehicles that Indian buyers prefer, according to analysts. Many of them also blame the high cost of maintaining and servicing Chevy cars for deterring cost-conscious buyers in India. GM said in 2015 it aimed to double its India market share to around 3 per cent or more by 2020. But its market share fell to below 1 per cent in the year ended March 31 from 1.17 per cent the previous year - even as India's market grew 9 per cent to climb above the 3 million vehicle level. GM's volume in India fell by a fifth to 25,823 vehicles in the year ended March 31. The GEM vehicle architecture, which is being engineered as an emerging-market platform technology for markets such as China, Brazil, Mexico and India, was envisioned to help GM come up with more cost-competitive cars. But for India, GEM was still too pricey a technology since it has been designed under GM's global vehicle safety, performance and other standards. To be successful in India, Jacoby said one option for GM was to "give up on implementing global platform and vehicle standards". The other was to team up with a local partner to run full operations as an automaker designing products and manufacturing and marketing products locally. "We have made the decision that these two options are not for us," Jacoby said. (Reuters)

GM to stop selling cars in India but not pulling out

The European Commission on Thursday fined US social media giant Facebook 110 million euros ($120 million) for providing incorrect and misleading information on its takeover of WhatsApp.

&quot;Today&#39;s decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information,&quot; EU Competition Commissioner Margrethe Vestager said in a statement.

&quot;The Commission must be able to take decisions about mergers&#39; effects on competition in full knowledge of accurate facts,&quot; Vestager said.

EU regulators cleared the then $19 billion Facebook acquisition of WhatsApp in late 2014, finding no reason to believe it would dampen competition in the burgeoning social media sector.

In its statement Thursday, the Commission recalled that the merger rules require companies to provide regulators with the accurate information essential to any review.

It noted that when Facebook notified the Commission of the acquisition in 2014, the company had said it would &quot;be unable to establish reliable automated matching between Facebook users&#39; accounts and WhatsApp users&#39; accounts&quot;.

&quot;However, in August 2016, WhatsApp announced updates to its terms of service and privacy policy, including the possibility of linking WhatsApp users&#39; phone numbers with Facebook users&#39; identities,&quot; it said.&nbsp;

After launching a probe last year, the Commission &quot;found that, contrary to Facebook&#39;s statements in the 2014 merger review process, the technical possibility of automatically matching Facebook and WhatsApp users&#39; identities already existed in 2014, and that Facebook staff were aware of such a possibility.&quot;

The Commission said Thursday&#39;s decision and the fine would have no impact on its October 2014 clearance of the deal.

(AFP)

The Commission 'found that, contrary to Facebook's statements in the 2014 merger review process, the technical possibility of automatically matching Facebook and WhatsApp users' identities already existed in 2014, and that Facebook staff were aware of such a possibility.'

The European Commission on Thursday fined US social media giant Facebook 110 million euros ($120 million) for providing incorrect and misleading information on its takeover of WhatsApp. "Today's decision sends a clear signal to companies that they must comply with all aspects of EU merger rules, including the obligation to provide correct information," EU Competition Commissioner Margrethe Vestager said in a statement. "The Commission must be able to take decisions about mergers' effects on competition in full knowledge of accurate facts," Vestager said. EU regulators cleared the then $19 billion Facebook acquisition of WhatsApp in late 2014, finding no reason to believe it would dampen competition in the burgeoning social media sector. In its statement Thursday, the Commission recalled that the merger rules require companies to provide regulators with the accurate information essential to any review. It noted that when Facebook notified the Commission of the acquisition in 2014, the company had said it would "be unable to establish reliable automated matching between Facebook users' accounts and WhatsApp users' accounts". "However, in August 2016, WhatsApp announced updates to its terms of service and privacy policy, including the possibility of linking WhatsApp users' phone numbers with Facebook users' identities," it said. After launching a probe last year, the Commission "found that, contrary to Facebook's statements in the 2014 merger review process, the technical possibility of automatically matching Facebook and WhatsApp users' identities already existed in 2014, and that Facebook staff were aware of such a possibility." The Commission said Thursday's decision and the fine would have no impact on its October 2014 clearance of the deal. (AFP)

EU fines Facebook 110 mn euros over 'misleading' info in WhatsApp takeover

Businessman Vineet Pandey has 500 housekeepers, security guards, electricians and plumbers on his books, servicing offices in India&#39;s booming financial metropolis Mumbai. He would love to hire more to keep up with demand, but cannot get a bank loan.

Pandey, 36, recently had to turn away an order that would have created 100 new jobs and helped his firm, Kaarya Facilities, expand its $1.6 million in annual sales, after his credit application to a state-run bank in January went unanswered.

&quot;We are a labour-intensive company, but if we don&#39;t get finance from banks then we won&#39;t be able to hire,&quot; Pandey said.

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<h5>India has more than 45 million such enterprises, accounting for nearly 40 percent of gross domestic product. Smaller businesses also account for the bulk of job creation, so a lack of bank credit reaching them threatens Prime Minister Narendra Modi&#39;s promise to create 250 million jobs over the next decade</h5>
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A mountain of bad debt in India&#39;s banking system has led to a prolonged credit crunch that is inflicting the&nbsp;most pain on small- and medium-sized enterprises (SMEs) such as Pandey&#39;s that depend upon banks for their day-to-day working capital and longer-term borrowing needs.

India has more than 45 million such enterprises, accounting for nearly 40 percent of gross domestic product. Smaller businesses also account for the bulk of job creation, so a lack of bank credit reaching them threatens Prime Minister Narendra Modi&#39;s promise to create 250 million jobs over the next decade.

The problem is not that Indian banks lack deposits to lend. After last November&#39;s decision by Modi to scrap high-value banknotes, a dramatic move to purge illicit or untaxed &quot;black cash&quot; from the shadow economy that forced holders to deposit high value currency with their banks, they are awash with $50 billion in excess liquidity.

But banks&#39; worsening asset quality has made them reluctant to grant new loans, especially to smaller businesses that are perceived as riskier.

RISK-AVERSE

The bulk of India&#39;s $150 billion in soured loans are owed to state-run lenders that dominate the banking system. Criminal investigations into some defaults, in which former bank bosses have been arrested, have made today&#39;s managers fearful that bad lending decisions might come back to haunt them.

&quot;It is a safety-first approach,&quot; said a senior official at one state-run bank. &quot;No loan officer wants a knock on his or her door later by the investigative agencies.&quot;

Banks can park their excess deposits safely with the Reserve Bank of India (RBI) or hand out smaller, less risky loans to consumers. Even as lending to industry has shrunk in seven of the past eight months, retail loans are growing at a double-digit pace, RBI data shows.

Private sector banks, less exposed to the bad loan problem, are more willing to service demand from corporates.

But since private banks account for just a third of banking assets, they cannot fully offset the credit slowdown.

RECAPITALISATION

In a bid to fix the loan stress, New Delhi this month empowered the central bank to push reluctant lenders towards writedowns and errant borrowers into insolvency.

Government and RBI officials say the measure should speed resolution and improve the flow of credit to industry.

Analysts are more sceptical, and expect loan growth to remain weak until banks are adequately recapitalised.

&quot;They do not address the lack of capital at the state-owned banks that has prevented them from writing down non-performing loans to realistic levels,&quot; said ratings agency Moody&#39;s.

Big companies, meanwhile, have shifted to borrowing via bonds and commercial paper.

The most spectacular rise has been in the domestic bond market, where corporates raised 60 percent more in the fiscal year to March 2017 than in the year before, according to Thomson Reuters data.

But smaller businesses seldom have the credit profile to tap the debt markets, while the amounts they generally borrow do not justify paying bankers to arrange bonds and get them rated.

Turned away by the banks, they are forced to borrow from non-banking financial companies (NBFCs), or even relatives and friends, at often-punitive rates of interest.

Manish Sharma, whose Delhi-based company manufactures electric cables, recently had to approach one NBFC for a 10 million rupee ($156,000) credit after his bank refused to provide a loan to complete a large order without matching collateral.

&quot;They kept insisting on collateral,&quot; said Sharma. &quot;If I had that kind of money, I would have never gone to them for the loan.&quot;

Credit demand from borrowers such as Sharma is driving double-digit loan growth at NBFCs. They charge higher rates than banks, but their loans are processed faster and require little paperwork.

Sharma is paying 16 percent interest on his loan, higher than the average 12 percent charged by state-run banks. Still, he reckons the return on his investment will outweigh the costs.

&quot;The order was very big and very profitable, we had to find a way to deliver it,&quot; Sharma said. &quot;The struggle to get funds has already put brakes on our growth.&quot;

(Reuters)

The businesses are not getting the loans they need to grow

Businessman Vineet Pandey has 500 housekeepers, security guards, electricians and plumbers on his books, servicing offices in India's booming financial metropolis Mumbai. He would love to hire more to keep up with demand, but cannot get a bank loan. Pandey, 36, recently had to turn away an order that would have created 100 new jobs and helped his firm, Kaarya Facilities, expand its $1.6 million in annual sales, after his credit application to a state-run bank in January went unanswered. "We are a labour-intensive company, but if we don't get finance from banks then we won't be able to hire," Pandey said. India has more than 45 million such enterprises, accounting for nearly 40 percent of gross domestic product. Smaller businesses also account for the bulk of job creation, so a lack of bank credit reaching them threatens Prime Minister Narendra Modi's promise to create 250 million jobs over the next decade × A mountain of bad debt in India's banking system has led to a prolonged credit crunch that is inflicting the most pain on small- and medium-sized enterprises (SMEs) such as Pandey's that depend upon banks for their day-to-day working capital and longer-term borrowing needs. India has more than 45 million such enterprises, accounting for nearly 40 percent of gross domestic product. Smaller businesses also account for the bulk of job creation, so a lack of bank credit reaching them threatens Prime Minister Narendra Modi's promise to create 250 million jobs over the next decade. The problem is not that Indian banks lack deposits to lend. After last November's decision by Modi to scrap high-value banknotes, a dramatic move to purge illicit or untaxed "black cash" from the shadow economy that forced holders to deposit high value currency with their banks, they are awash with $50 billion in excess liquidity. But banks' worsening asset quality has made them reluctant to grant new loans, especially to smaller businesses that are perceived as riskier. RISK-AVERSE The bulk of India's $150 billion in soured loans are owed to state-run lenders that dominate the banking system. Criminal investigations into some defaults, in which former bank bosses have been arrested, have made today's managers fearful that bad lending decisions might come back to haunt them. "It is a safety-first approach," said a senior official at one state-run bank. "No loan officer wants a knock on his or her door later by the investigative agencies." Banks can park their excess deposits safely with the Reserve Bank of India (RBI) or hand out smaller, less risky loans to consumers. Even as lending to industry has shrunk in seven of the past eight months, retail loans are growing at a double-digit pace, RBI data shows. Private sector banks, less exposed to the bad loan problem, are more willing to service demand from corporates. But since private banks account for just a third of banking assets, they cannot fully offset the credit slowdown. RECAPITALISATION In a bid to fix the loan stress, New Delhi this month empowered the central bank to push reluctant lenders towards writedowns and errant borrowers into insolvency. Government and RBI officials say the measure should speed resolution and improve the flow of credit to industry. Analysts are more sceptical, and expect loan growth to remain weak until banks are adequately recapitalised. "They do not address the lack of capital at the state-owned banks that has prevented them from writing down non-performing loans to realistic levels," said ratings agency Moody's. Big companies, meanwhile, have shifted to borrowing via bonds and commercial paper. The most spectacular rise has been in the domestic bond market, where corporates raised 60 percent more in the fiscal year to March 2017 than in the year before, according to Thomson Reuters data. But smaller businesses seldom have the credit profile to tap the debt markets, while the amounts they generally borrow do not justify paying bankers to arrange bonds and get them rated. Turned away by the banks, they are forced to borrow from non-banking financial companies (NBFCs), or even relatives and friends, at often-punitive rates of interest. Manish Sharma, whose Delhi-based company manufactures electric cables, recently had to approach one NBFC for a 10 million rupee ($156,000) credit after his bank refused to provide a loan to complete a large order without matching collateral. "They kept insisting on collateral," said Sharma. "If I had that kind of money, I would have never gone to them for the loan." Credit demand from borrowers such as Sharma is driving double-digit loan growth at NBFCs. They charge higher rates than banks, but their loans are processed faster and require little paperwork. Sharma is paying 16 percent interest on his loan, higher than the average 12 percent charged by state-run banks. Still, he reckons the return on his investment will outweigh the costs. "The order was very big and very profitable, we had to find a way to deliver it," Sharma said. "The struggle to get funds has already put brakes on our growth." (Reuters)

Small businesses suffer as India's banks sit on deposits

Tata Steel has agreed the key commercial terms of a deal to cut benefits and improve the funding position of its British pension scheme, the company said on Tuesday.

The pension scheme was a major stumbling block in talks to merge Tata Steel&#39;s British and European steel assets with those of Thyssenkrupp, because the German company was opposed to taking on Tata&#39;s 15 billion pounds in UK pension liabilities.

The deal, agreed with the scheme&#39;s trustees, will see Tata plough 550 million pounds into the final salary British Steel Pension Scheme (BSPS). It is subject to formal approval by The Pensions Regulator, but Tata said it expected to get approval shortly.

Tata has also agreed, as part of the deal, to sponsor a new pension scheme, which will have lower benefits than those of the original scheme, and to give the BSPS a 33 per cent equity stake in its UK business.

With benefit cuts in place, the new scheme will pose less of a risk to the company, Tata said.

The British Steel Pension Scheme is one of Britain&#39;s largest final salary schemes with 130,000 members.

The pension scheme&#39;s members who do not agree to move to the new scheme will automatically transfer to the Pension Protection Fund (PPF), which said all the scheme&#39;s members, including those in the new scheme, are guaranteed PPF compensation levels.

The PPF is a lifeboat for pension schemes in Britain that run into trouble.

(Reuters)

Tata Steel has agreed the key commercial terms of a deal to cut benefits and improve the funding position of its British pension scheme, the company said on Tuesday

Tata Steel has agreed the key commercial terms of a deal to cut benefits and improve the funding position of its British pension scheme, the company said on Tuesday. The pension scheme was a major stumbling block in talks to merge Tata Steel's British and European steel assets with those of Thyssenkrupp, because the German company was opposed to taking on Tata's 15 billion pounds in UK pension liabilities. The deal, agreed with the scheme's trustees, will see Tata plough 550 million pounds into the final salary British Steel Pension Scheme (BSPS). It is subject to formal approval by The Pensions Regulator, but Tata said it expected to get approval shortly. Tata has also agreed, as part of the deal, to sponsor a new pension scheme, which will have lower benefits than those of the original scheme, and to give the BSPS a 33 per cent equity stake in its UK business. With benefit cuts in place, the new scheme will pose less of a risk to the company, Tata said. The British Steel Pension Scheme is one of Britain's largest final salary schemes with 130,000 members. The pension scheme's members who do not agree to move to the new scheme will automatically transfer to the Pension Protection Fund (PPF), which said all the scheme's members, including those in the new scheme, are guaranteed PPF compensation levels. The PPF is a lifeboat for pension schemes in Britain that run into trouble. (Reuters)

Tata Steel agrees British pensions deal

Indian shares ended at a record closing high on Monday, after government data last week showed that consumer inflation in April eased to its lowest in at least five years, reviving a debate on whether the central bank should cut interest rates.

The benchmark BSE Sensex closed up 0.44 percent at 30,322.12. The broader NSE index ended 0.47 percent higher at 9,445.4.

(Reuters)

Government data last week showed that consumer inflation in April eased to its lowest in at least five years

Indian shares ended at a record closing high on Monday, after government data last week showed that consumer inflation in April eased to its lowest in at least five years, reviving a debate on whether the central bank should cut interest rates. The benchmark BSE Sensex closed up 0.44 percent at 30,322.12. The broader NSE index ended 0.47 percent higher at 9,445.4. (Reuters)

Sensex ends at record closing high

Founders of Indian online marketplace Snapdeal and one of its early investors, Nexus, have reached an agreement with SoftBank that would allow the Japanese firm to move ahead with its plan to sell Snapdeal to bigger rival Flipkart, ET Now reported, citing sources.

Nexus and Snapdeal founders have agreed to the terms of payment with SoftBank wherein Snapdeal founders would get $15 million each and Nexus would get $50 million to $60 million, the business channel said.

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Sources: Nexus, Snapdeal founders reach agreement with Softbank. <a href="https://twitter.com/hashtag/ETNOWExclusive?src=hash">#ETNOWExclusive</a>
&mdash; ET NOW (@ETNOWlive) <a href="https://twitter.com/ETNOWlive/status/862582569317085185">May 11, 2017</a></blockquote>
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&mdash; ET NOW (@ETNOWlive) <a href="https://twitter.com/ETNOWlive/status/862582749147926528">May 11, 2017</a></blockquote>
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Flipkart is expected to sign the term sheet and start due diligence of Snapdeal, ET Now added.

Snapdeal and SoftBank were not immediately reachable for comment, while Nexus declined to comment.

Sources told Reuters last week that SoftBank is working to engineer a sale of Snapdeal to Flipkart, as it seeks to play consolidator and take a more active role at a trio of leading start-ups in India.

(Reuters)

Snapdeal founders would get $15 million each and Nexus would get $50 million to $60 million

Founders of Indian online marketplace Snapdeal and one of its early investors, Nexus, have reached an agreement with SoftBank that would allow the Japanese firm to move ahead with its plan to sell Snapdeal to bigger rival Flipkart, ET Now reported, citing sources. Nexus and Snapdeal founders have agreed to the terms of payment with SoftBank wherein Snapdeal founders would get $15 million each and Nexus would get $50 million to $60 million, the business channel said. Sources: Nexus, Snapdeal founders reach agreement with Softbank. #ETNOWExclusive — ET NOW (@ETNOWlive) May 11, 2017 × Sources: Snapdeal founders to get $15 mn each pre-tax, Nexus to get $50-60 mn. #ETNOWExclusive — ET NOW (@ETNOWlive) May 11, 2017 × Flipkart is expected to sign the term sheet and start due diligence of Snapdeal, ET Now added. Snapdeal and SoftBank were not immediately reachable for comment, while Nexus declined to comment. Sources told Reuters last week that SoftBank is working to engineer a sale of Snapdeal to Flipkart, as it seeks to play consolidator and take a more active role at a trio of leading start-ups in India. (Reuters)

Snapdeal, Nexus reach deal with SoftBank for sale to Flipkart: Report

Uber provides a transport service and must be licensed, the European Union&#39;s top court said on Thursday, in a potential blow to the US&nbsp;firm which says it is merely a digital enabler.

&quot;The Uber electronic platform, whilst innovative, falls within the field of transport: Uber can thus be required to obtain the necessary licences and authorisations under national law,&quot; the Court of Justice of the European Union (ECJ) said.

While the opinion of the Advocate General is non-binding, the court&#39;s judges follow it in most cases and a ruling would mean EU member states can regulate Uber and other such companies as a transport rather than &quot;information society&quot; service.

The case was brought by an association of Barcelona taxi drivers which&nbsp;argued that Uber engaged in unfair competition with its UberPOP service - which used&nbsp;unlicensed drivers.

Uber, which no longer operates UberPOP in Spain, said it would await a final ruling later this year, but added that even if it is considered a transportation company, this &quot;would not change the way we are regulated in most EU countries as that is already the situation today&quot;.

However, such a ruling would &quot;undermine the much-needed reform of outdated laws which prevent millions of Europeans from accessing a reliable ride at the tap of a button,&quot; an Uber spokeswoman said in a statement.

Uber, which allows passengers to summon a ride through an app on their smartphones, expanded into Europe five years ago. But it has been challenged in the courts by established taxi companies and some EU countries because it is not bound by strict local licensing and safety rules which apply to some of its competitors.

The Advocate General said Uber drivers &quot;do not pursue an autonomous activity that is independent of the platform. On the contrary, that activity exists solely because of the platform, without which it would have no sense.&quot;

Uber could not be regarded as a mere intermediary between drivers and passengers because it controlled economically important aspects of the urban transport service, Maciej Szpunar said in the opinion.

&quot;The service amounts to the organisation and management of a comprehensive system for on-demand urban transport,&quot; the ECJ statement said.

(Reuters)

A ruling would mean EU member states can regulate Uber and other such companies as a transport rather than information society service

Uber provides a transport service and must be licensed, the European Union's top court said on Thursday, in a potential blow to the US firm which says it is merely a digital enabler. "The Uber electronic platform, whilst innovative, falls within the field of transport: Uber can thus be required to obtain the necessary licences and authorisations under national law," the Court of Justice of the European Union (ECJ) said. While the opinion of the Advocate General is non-binding, the court's judges follow it in most cases and a ruling would mean EU member states can regulate Uber and other such companies as a transport rather than "information society" service. The case was brought by an association of Barcelona taxi drivers which argued that Uber engaged in unfair competition with its UberPOP service - which used unlicensed drivers. Uber, which no longer operates UberPOP in Spain, said it would await a final ruling later this year, but added that even if it is considered a transportation company, this "would not change the way we are regulated in most EU countries as that is already the situation today". However, such a ruling would "undermine the much-needed reform of outdated laws which prevent millions of Europeans from accessing a reliable ride at the tap of a button," an Uber spokeswoman said in a statement. Uber, which allows passengers to summon a ride through an app on their smartphones, expanded into Europe five years ago. But it has been challenged in the courts by established taxi companies and some EU countries because it is not bound by strict local licensing and safety rules which apply to some of its competitors. The Advocate General said Uber drivers "do not pursue an autonomous activity that is independent of the platform. On the contrary, that activity exists solely because of the platform, without which it would have no sense." Uber could not be regarded as a mere intermediary between drivers and passengers because it controlled economically important aspects of the urban transport service, Maciej Szpunar said in the opinion. "The service amounts to the organisation and management of a comprehensive system for on-demand urban transport," the ECJ statement said. (Reuters)

Uber a transport service, says EU court