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China&#39;s factories and workshops saw their output slow sharply in April, data showed Monday, as the world&#39;s second-largest economy grapples with tighter credit and weaker demand.

The data comes as China hosts an international summit showcasing its Silk Road plan, an ambitious infrastructure project it hopes will revive ancient trading routes and breathe life into its sputtering economy.&nbsp;

Industrial production rose 6.5 per cent from a year ago, the National Bureau of Statistics said, compared with 7.6 per cent in March and forecasts of 7.0 per cent in a survey by Bloomberg News.&nbsp;

Other figures also disappointed. April retail sales rose 10.7 per cent year-on-year, below the previous month&#39;s reading and estimates of 10.8 per cent.&nbsp;

Fixed-asset investment excluding rural areas -- a gauge of spending on real estate, roads and bridges -- rose 8.9 per cent in the first four months of the year, compared with 9.2 per cent in January-March.&nbsp;

&quot;All the data sends the same message: The economy slowed down meaningfully in April,&quot; Larry Hu, head of China economics at Macquarie Securities in Hong Kong, told Bloomberg News.&nbsp;

&quot;But given that growth is still fine, in the second quarter policymakers will still focus on reducing financial risk.&quot;

China&#39;s One Belt, One Road initiative -- a massive network of ports, railways, roads and industrial parks in Asia, Europe and Africa hailed by President Xi Jinping as &quot;a project of the century&quot; -- could provide fresh impetus for growth in the Asian giant.

In recent years China has been transitioning from an investment-driven economic model to one more reliant on consumer spending, but it has been a bumpy ride.

Debt worries

The crucial manufacturing sector is struggling in the face of weaker global demand and excess industrial capacity left over from a debt-fuelled infrastructure boom.

Years of unregulated and risky lending has also raised fears of a looming debt crisis that the International Monetary Fund has warned could &quot;imperil global financial stability&quot;.

The banking regulator recently unveiled measures to rein in dangerous lending and strengthening institutional transparency and chronically weak internal controls.

But analysts have expressed scepticism about Beijing&#39;s willingness to quit its debt addiction cold turkey given freewheeling credit has underpinned the growth China&#39;s Communist Party relies on for political legitimacy.

ANZ researchers said China appeared to be returning &quot;to an investment-driven growth strategy&quot; with projects such as One Belt, One Road providing a strong infrastructure pipeline.

In the first three months of the year China expanded a better-than-expected 6.9 per cent, raising hopes the economy was stabilising after the 2016 growth rate of 6.7 per cent, which was the slowest in a quarter of a century.&nbsp;

Still, analysts expect further deceleration this year and the government unveiled in March a trimmed 2017 growth target of &quot;around 6.5 per cent&quot;.

&quot;Slowing domestic consumption growth and softer external demand appear to have driven the slowdown in China at the start of the second quarter,&quot; said Julian Evans-Pritchard from Capital Economics.

The strength in infrastructure and property investment last month were not sustainable &quot;given that policy is being tightened and the property market is starting to cool&quot;.

(AFP)

China factory output slows in April as credit tightens

China's factories and workshops saw their output slow sharply in April, data showed Monday, as the world's second-largest economy grapples with tighter credit and weaker demand. The data comes as China hosts an international summit showcasing its Silk Road plan, an ambitious infrastructure project it hopes will revive ancient trading routes and breathe life into its sputtering economy. Industrial production rose 6.5 per cent from a year ago, the National Bureau of Statistics said, compared with 7.6 per cent in March and forecasts of 7.0 per cent in a survey by Bloomberg News. Other figures also disappointed. April retail sales rose 10.7 per cent year-on-year, below the previous month's reading and estimates of 10.8 per cent. Fixed-asset investment excluding rural areas -- a gauge of spending on real estate, roads and bridges -- rose 8.9 per cent in the first four months of the year, compared with 9.2 per cent in January-March. "All the data sends the same message: The economy slowed down meaningfully in April," Larry Hu, head of China economics at Macquarie Securities in Hong Kong, told Bloomberg News. "But given that growth is still fine, in the second quarter policymakers will still focus on reducing financial risk." China's One Belt, One Road initiative -- a massive network of ports, railways, roads and industrial parks in Asia, Europe and Africa hailed by President Xi Jinping as "a project of the century" -- could provide fresh impetus for growth in the Asian giant. In recent years China has been transitioning from an investment-driven economic model to one more reliant on consumer spending, but it has been a bumpy ride. Debt worries The crucial manufacturing sector is struggling in the face of weaker global demand and excess industrial capacity left over from a debt-fuelled infrastructure boom. Years of unregulated and risky lending has also raised fears of a looming debt crisis that the International Monetary Fund has warned could "imperil global financial stability". The banking regulator recently unveiled measures to rein in dangerous lending and strengthening institutional transparency and chronically weak internal controls. But analysts have expressed scepticism about Beijing's willingness to quit its debt addiction cold turkey given freewheeling credit has underpinned the growth China's Communist Party relies on for political legitimacy. ANZ researchers said China appeared to be returning "to an investment-driven growth strategy" with projects such as One Belt, One Road providing a strong infrastructure pipeline. In the first three months of the year China expanded a better-than-expected 6.9 per cent, raising hopes the economy was stabilising after the 2016 growth rate of 6.7 per cent, which was the slowest in a quarter of a century. Still, analysts expect further deceleration this year and the government unveiled in March a trimmed 2017 growth target of "around 6.5 per cent". "Slowing domestic consumption growth and softer external demand appear to have driven the slowdown in China at the start of the second quarter," said Julian Evans-Pritchard from Capital Economics. The strength in infrastructure and property investment last month were not sustainable "given that policy is being tightened and the property market is starting to cool". (AFP)

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President of India Pranab Mukherjee and Prime Minister Narendra Modi will attend the celebrations marking 90 years&nbsp;of Essel Group on Sunday,&nbsp;

The event will be held at New Delhi&#39;s Indira Gandhi Stadium.

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Tomorrow I look forward to joining the 90 year celebrations of the Essel Group. Congratulations to Essel Group on this momentous occasion.
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Speaking on the Group&#39;s journey, Dr Subhash Chandra, chairman, Essel Group said, &quot;This journey of 90 years has been filled with remarkable successes as well as challenges and obstacles. It has been a journey of creating history, venturing into unknown territories, only to emerge as leaders, capitalising on our pioneering vision and sheer entrepreneurial spirit. Today, Essel Group is a multi-billion dollar diversified business conglomerate, enriching billions of lives across the world. As we look to the future, I am confident that we will carry forward the legacy of the Group with complete passion, dedication and above all, the spirit of #YoungAt90!&quot;

The Essel Group, which was founded in 1926,&nbsp;has grown &nbsp;to become a multi-billion dollar business conglomerate having diverse business presence across media, entertainment, packaging, infrastructure, education, precious metals, finance and technology.

(WION)

&nbsp;

&nbsp;

The Group which was founded in 1926?has grown to become a multi-billion dollar business conglomerate having diverse business presence across media, entertainment, packaging, infrastructure, education, precious metals, finance and technology.

President of India Pranab Mukherjee and Prime Minister Narendra Modi will attend the celebrations marking 90 years of Essel Group on Sunday, The event will be held at New Delhi's Indira Gandhi Stadium. Tomorrow I look forward to joining the 90 year celebrations of the Essel Group. Congratulations to Essel Group on this momentous occasion. — Narendra Modi (@narendramodi) May 13, 2017 × Speaking on the Group's journey, Dr Subhash Chandra, chairman, Essel Group said, "This journey of 90 years has been filled with remarkable successes as well as challenges and obstacles. It has been a journey of creating history, venturing into unknown territories, only to emerge as leaders, capitalising on our pioneering vision and sheer entrepreneurial spirit. Today, Essel Group is a multi-billion dollar diversified business conglomerate, enriching billions of lives across the world. As we look to the future, I am confident that we will carry forward the legacy of the Group with complete passion, dedication and above all, the spirit of #YoungAt90!" The Essel Group, which was founded in 1926, has grown to become a multi-billion dollar business conglomerate having diverse business presence across media, entertainment, packaging, infrastructure, education, precious metals, finance and technology. (WION)

India: President, PM to attend Essel Group's 90th year celebrations

Music streaming service Spotify, most recently valued at $13 billion, will be the first major company to carry out a direct listing on the New York Stock Exchange when it goes public later this year or early next year, two sources familiar with the situation said on Friday.

The move would be the biggest test yet for the direct listing process, which for companies willing to list shares without raising capital eliminates the need for a Wall Street bank or broker to underwrite an initial public offering (IPO) along with many associated fees.

If successful, it could change the way companies approach selling shares to the public.

The Swedish technology firm is working with investment banks Morgan Stanley, Goldman Sachs Group Inc and Allen &amp; Co to advise them on the process, the sources said.

Spotify, the New York Stock Exchange, Morgan Stanley and Goldman declined comment. Allen &amp; Co did not immediately respond to a request for comment.

In a traditional IPO, investment bank underwriters sell new shares of a company to the public at a price they determine based on investor feedback. The underwriters leading this process are backed by an IPO syndicate, sometimes comprising more than a dozen banks, which share the responsibility of selling and allocating shares to investors.

In a direct listing, a company does not raise money by offering new shares for sale, but instead makes existing shares immediately available to the public, meaning employees and investors can buy and sell as they wish. That dispenses with the need for banks to market and sell the company&#39;s shares.

Spotify&#39;s decision to side-step underwriters could be a hit to investment banks that rely on fees from marquee listings.

Proceeds from IPOs fell 40 percent last year from 2015. Technology IPOs, often a large chunk of the market, were down 56 percent, according to Thomson Reuters data.

Last year Spotify raised $1 billion in convertible debt from private equity firm TPG Capital Management LP and hedge fund Dragoneer Investment Group. The round came with a provision allowing TPG and Dragoneer to convert their debt into equity at a discount of 20 percent or more to the offering share price of an IPO, depending on when the company goes public.

It was unclear how that stipulation would be handled in a direct listing.

Direct listings are not without risk. Investment banks seek to set an IPO price that fits demand while leaving room for the company&#39;s shares to rise further in the market. Without this guidance, a company&#39;s stock price is more exposed to gyrations.

There is also no &quot;lock-up&quot; period to prevent early-stage investors and employees from selling shares in the months following a listing. Without that, a stock could experience heavy turnover and price fluctuations just as the company is getting its public market footing.

Direct listings also do not eliminate all Wall Street costs. Investment banks still advise companies on how to get their financials in order and articulate why they are a good investment, even if they do not get involved in building materials to show investors at so-called roadshows.

Examples of companies of Spotify&#39;s size that have directly listed are scant, though Freddie Mac did so in 1989.

A direct listing for a large company such as Spotify may be hard to replicate, industry sources said. Companies less well-known would likely need bankers to market shares, while Spotify can rely on consumer familiarity and media exposure.

Spotify, which has yet to post a profit as it expands in markets worldwide and builds new offices in New York, lost 173 million euros ($189 million) in 2015, according to the latest figures disclosed by its Luxembourg-based holding company.

In recent months, it has sought to build up its service by striking deals with music labels. In April, it announced a licensing deal with Universal Music Group Inc that could make the streaming platform more attractive to its top-selling artists, including Taylor Swift, Adele, Lady Gaga, Coldplay and Kanye West, by letting them release albums exclusively to premium users.

Spotify hopes to strike deals with Warner Music Group and Sony Music in the run-up to the IPO, one of the sources said.

(Reuters)

The move would be the biggest test yet for the direct listing process

Music streaming service Spotify, most recently valued at $13 billion, will be the first major company to carry out a direct listing on the New York Stock Exchange when it goes public later this year or early next year, two sources familiar with the situation said on Friday. The move would be the biggest test yet for the direct listing process, which for companies willing to list shares without raising capital eliminates the need for a Wall Street bank or broker to underwrite an initial public offering (IPO) along with many associated fees. If successful, it could change the way companies approach selling shares to the public. The Swedish technology firm is working with investment banks Morgan Stanley, Goldman Sachs Group Inc and Allen & Co to advise them on the process, the sources said. Spotify, the New York Stock Exchange, Morgan Stanley and Goldman declined comment. Allen & Co did not immediately respond to a request for comment. In a traditional IPO, investment bank underwriters sell new shares of a company to the public at a price they determine based on investor feedback. The underwriters leading this process are backed by an IPO syndicate, sometimes comprising more than a dozen banks, which share the responsibility of selling and allocating shares to investors. In a direct listing, a company does not raise money by offering new shares for sale, but instead makes existing shares immediately available to the public, meaning employees and investors can buy and sell as they wish. That dispenses with the need for banks to market and sell the company's shares. Spotify's decision to side-step underwriters could be a hit to investment banks that rely on fees from marquee listings. Proceeds from IPOs fell 40 percent last year from 2015. Technology IPOs, often a large chunk of the market, were down 56 percent, according to Thomson Reuters data. Last year Spotify raised $1 billion in convertible debt from private equity firm TPG Capital Management LP and hedge fund Dragoneer Investment Group. The round came with a provision allowing TPG and Dragoneer to convert their debt into equity at a discount of 20 percent or more to the offering share price of an IPO, depending on when the company goes public. It was unclear how that stipulation would be handled in a direct listing. Direct listings are not without risk. Investment banks seek to set an IPO price that fits demand while leaving room for the company's shares to rise further in the market. Without this guidance, a company's stock price is more exposed to gyrations. There is also no "lock-up" period to prevent early-stage investors and employees from selling shares in the months following a listing. Without that, a stock could experience heavy turnover and price fluctuations just as the company is getting its public market footing. Direct listings also do not eliminate all Wall Street costs. Investment banks still advise companies on how to get their financials in order and articulate why they are a good investment, even if they do not get involved in building materials to show investors at so-called roadshows. Examples of companies of Spotify's size that have directly listed are scant, though Freddie Mac did so in 1989. A direct listing for a large company such as Spotify may be hard to replicate, industry sources said. Companies less well-known would likely need bankers to market shares, while Spotify can rely on consumer familiarity and media exposure. Spotify, which has yet to post a profit as it expands in markets worldwide and builds new offices in New York, lost 173 million euros ($189 million) in 2015, according to the latest figures disclosed by its Luxembourg-based holding company. In recent months, it has sought to build up its service by striking deals with music labels. In April, it announced a licensing deal with Universal Music Group Inc that could make the streaming platform more attractive to its top-selling artists, including Taylor Swift, Adele, Lady Gaga, Coldplay and Kanye West, by letting them release albums exclusively to premium users. Spotify hopes to strike deals with Warner Music Group and Sony Music in the run-up to the IPO, one of the sources said. (Reuters)

Spotify to launch direct listing on NYSE: Sources

Indian shares ended lower on Friday, after jumping to record highs twice this week, as investors turned cautious ahead of inflation data and booked profits in recent outperformers.

The broader NSE Nifty closed down 0.23 per cent at 9,400.90, but was up 1.24 per cent for the week.

The benchmark BSE Sensex ended 0.21 per cent lower at 30,188.15, but was up 1.10 per cent for the week.

Both indexes snapped four straight sessions of gains.

Eicher Motors snapped five consecutive sessions of gains to end 1.1 per cent lower, while Ashok Leyland fell 1.2 per cent after a two-day rally.

(Reuters)

Sensex snaps four days of gains; inflation data awaited

Indian shares ended lower on Friday, after jumping to record highs twice this week, as investors turned cautious ahead of inflation data and booked profits in recent outperformers. The broader NSE Nifty closed down 0.23 per cent at 9,400.90, but was up 1.24 per cent for the week. The benchmark BSE Sensex ended 0.21 per cent lower at 30,188.15, but was up 1.10 per cent for the week. Both indexes snapped four straight sessions of gains. Eicher Motors snapped five consecutive sessions of gains to end 1.1 per cent lower, while Ashok Leyland fell 1.2 per cent after a two-day rally. (Reuters)

Sensex slips after record gains, inflation data awaited

Snap Inc shares plunged on Wednesday after the Snapchat parent reported slowing user growth and revenue that missed analyst estimates amid stiff competition from copycat messaging apps.

Shares tumbled nearly 24 per cent in after-hours trading to $17.58, wiping some $5 billion from Snap&#39;s market capitalisation in the latest reversal after a red-hot March initial public offering, which was the biggest for a US tech company since Facebook Inc&nbsp;in 2012.

That performance echoed slides in Facebook and Twitter after they posted debut scorecards following their IPOs. Twitter shares cratered 24 per cent the next day, while Facebook&#39;s tumbled 11 per cent, still the biggest-ever one-day losses for both.

Snap said its daily active users (DAUs) rose 36.1 per cent to 166 million in the first quarter from a year earlier, marking a slowdown from the 47.7 per cent rise for the fourth quarter and 62.8 per cent jump for the third quarter that the company reported in its IPO filing.

J&nbsp;P&nbsp;Morgan had expected Snap&#39;s DAUs to hit 169 million in the first quarter, while Monness, Crespi, Hardt &amp; Co Inc pegged them even higher at 173 million.

Snap&#39;s March IPO priced above the company&#39;s target range as investors put aside concerns about a lack of profits and voting rights to get a piece of the action. The IPO raised $3.4 billion and gave the company a market valuation of roughly $24 billion, and shares surged 44 per cent in their first day of trading.

Facebook, which made a $3 billion bid for Snapchat in 2013, has upped the ante by offering camera-related features similar to Snap on its platforms, including Instagram and WhatsApp. The company said in April that Instagram Stories alone had reached 200 million daily active users.

Snap Chief executive Evan Spiegel, who received a stock-based bonus worth nearly $600 million for taking the company public, shrugged off imitations when asked about Facebook by an analyst on a conference call to discuss earnings.

&quot;If you want to be a creative company, you&#39;ve got to get comfortable with and enjoy the fact that people are going to copy your product if you make great stuff,&quot; he said.

Making a comparison to the search industry, Spiegel added: &quot;Just because Yahoo has a search box doesn&#39;t mean they&#39;re Google.&quot;

Snapchat&#39;s growth was faster than Facebook, however, which said its overall daily user base grew 18 per cent year-over-year in the first quarter, as well as Twitter, which reported growth of 14 per cent in daily active users from a year earlier.

Revenue disappointment

Snap&#39;s revenue jumped nearly four-fold year-over-year to $149.6 million but fell short of the average analyst forecast of $158 million, according to Thomson Reuters I/B/E/S. Revenue was also down from the fourth quarter of 2016, a seasonally stronger period for ad sales, when it was $166 million.

Revenue was &quot;a relatively disappointing number,&quot; Pivotal Research analyst Brian Wieser said. &quot;To their credit,&quot; he said, &quot;they did guide towards a number that would be lower, which it was.&quot;

Average revenue per user was 90 cents in the first quarter, Snap said, up from 33 cents the same quarter a year earlier but below the $1.05 per user in the fourth quarter of 2016.

Snap&#39;s net loss widened to $2.21 billion, or $2.31 per share, in the first quarter, from $104.6 million, or 14 cents per share, due to stock-based compensation related to the IPO.

Snapchat launched in 2012 as a mobile app that allows users to send photos, known as snaps, that vanish within seconds. The company rebranded as Snap Inc last year, and moved into the hardware space with Spectacles, its colourful sunglasses that record short videos to post on Snapchat.

Users created more than 3 billion snaps daily on average during the first quarter, up from more than 2.5 billion during the third quarter of 2016, the company said.

Snap receives some revenue from branded or sponsored filters and lenses, but depends on advertising dollars for the bulk of its overall revenue.

Digital marketing firm eMarketer in March had trimmed its 2017 US advertising revenue forecast for Snap by $30 million to $770 million, citing higher-than-expected revenue sharing with the company&#39;s partners.

The total US digital advertising market is meanwhile expected to reach $83 billion, according to eMarketer, up nearly 16 per cent from last year.

(Reuters)

&nbsp;

Snap's net loss widened to $2.21 billion, or $2.31 per share, in the first quarter, from $104.6 million, or 14 cents per share, due to stock-based compensation related to the IPO.

Snap Inc shares plunged on Wednesday after the Snapchat parent reported slowing user growth and revenue that missed analyst estimates amid stiff competition from copycat messaging apps. Shares tumbled nearly 24 per cent in after-hours trading to $17.58, wiping some $5 billion from Snap's market capitalisation in the latest reversal after a red-hot March initial public offering, which was the biggest for a US tech company since Facebook Inc in 2012. That performance echoed slides in Facebook and Twitter after they posted debut scorecards following their IPOs. Twitter shares cratered 24 per cent the next day, while Facebook's tumbled 11 per cent, still the biggest-ever one-day losses for both. Snap said its daily active users (DAUs) rose 36.1 per cent to 166 million in the first quarter from a year earlier, marking a slowdown from the 47.7 per cent rise for the fourth quarter and 62.8 per cent jump for the third quarter that the company reported in its IPO filing. J P Morgan had expected Snap's DAUs to hit 169 million in the first quarter, while Monness, Crespi, Hardt & Co Inc pegged them even higher at 173 million. Snap's March IPO priced above the company's target range as investors put aside concerns about a lack of profits and voting rights to get a piece of the action. The IPO raised $3.4 billion and gave the company a market valuation of roughly $24 billion, and shares surged 44 per cent in their first day of trading. Facebook, which made a $3 billion bid for Snapchat in 2013, has upped the ante by offering camera-related features similar to Snap on its platforms, including Instagram and WhatsApp. The company said in April that Instagram Stories alone had reached 200 million daily active users. Snap Chief executive Evan Spiegel, who received a stock-based bonus worth nearly $600 million for taking the company public, shrugged off imitations when asked about Facebook by an analyst on a conference call to discuss earnings. "If you want to be a creative company, you've got to get comfortable with and enjoy the fact that people are going to copy your product if you make great stuff," he said. Making a comparison to the search industry, Spiegel added: "Just because Yahoo has a search box doesn't mean they're Google." Snapchat's growth was faster than Facebook, however, which said its overall daily user base grew 18 per cent year-over-year in the first quarter, as well as Twitter, which reported growth of 14 per cent in daily active users from a year earlier. Revenue disappointment Snap's revenue jumped nearly four-fold year-over-year to $149.6 million but fell short of the average analyst forecast of $158 million, according to Thomson Reuters I/B/E/S. Revenue was also down from the fourth quarter of 2016, a seasonally stronger period for ad sales, when it was $166 million. Revenue was "a relatively disappointing number," Pivotal Research analyst Brian Wieser said. "To their credit," he said, "they did guide towards a number that would be lower, which it was." Average revenue per user was 90 cents in the first quarter, Snap said, up from 33 cents the same quarter a year earlier but below the $1.05 per user in the fourth quarter of 2016. Snap's net loss widened to $2.21 billion, or $2.31 per share, in the first quarter, from $104.6 million, or 14 cents per share, due to stock-based compensation related to the IPO. Snapchat launched in 2012 as a mobile app that allows users to send photos, known as snaps, that vanish within seconds. The company rebranded as Snap Inc last year, and moved into the hardware space with Spectacles, its colourful sunglasses that record short videos to post on Snapchat. Users created more than 3 billion snaps daily on average during the first quarter, up from more than 2.5 billion during the third quarter of 2016, the company said. Snap receives some revenue from branded or sponsored filters and lenses, but depends on advertising dollars for the bulk of its overall revenue. Digital marketing firm eMarketer in March had trimmed its 2017 US advertising revenue forecast for Snap by $30 million to $770 million, citing higher-than-expected revenue sharing with the company's partners. The total US digital advertising market is meanwhile expected to reach $83 billion, according to eMarketer, up nearly 16 per cent from last year. (Reuters)

Snap shares plummet after growth disappoints investors

Indian shares hit a record high on Wednesday as shares of consumer goods and agriculture-dependent companies rallied after the country&#39;s weather office forecast a higher monsoon rainfall than previously expected.

The benchmark BSE Sensex gained as much as 0.91 per cent to 30,207.13, its highest ever.

The chief of the country&#39;s state-run <a href="http://www.wionews.com/south-asia/india-likely-to-receive-higher-rainfall-than-previously-forecast-meteorological-department-15429">India Meteorological Department on Tuesday said India looks likely to receive higher monsoon rainfall </a>than previously forecast as concern over the El Nino weather condition had eased.

The broader NSE Nifty rose as much as 0.81 per cent to a record high of 9,392.50, surpassing its previous milestone recorded on May 05.

The Nifty breached the 9,400 level for the first time as consumer stocks rallied, heavyweight Bharti Airtel surged after reporting strong subscriber growth.&nbsp;

The markets have been responding to positive sentiment in the last few days, the International Monetary Fund on Monday had said India&rsquo;s growth is expected to rebound to 7.2% in the 2017-18 fiscal and 7.7% in 2018-19 after disruptions caused by demonetisation.

The temporary disruptions (primarily to private consumption) caused by cash shortages accompanying the currency exchange initiative are expected to gradually dissipate in 2017 as cash shortages ease, the International Monetary Fund (IMF) said in its regional economic outlook.

<a href="http://www.wionews.com/south-asia/india-likely-to-receive-higher-rainfall-than-previously-forecast-meteorological-department-15429">Also Read:&nbsp;India likely to receive higher rainfall than previously forecast: Meteorological Department</a>

(Wion with Reuters input)

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The broader NSE Nifty rose as much as 0.81 per cent to a record high of 9,392.50, surpassing its previous milestone recorded on May 05

Indian shares hit a record high on Wednesday as shares of consumer goods and agriculture-dependent companies rallied after the country's weather office forecast a higher monsoon rainfall than previously expected. The benchmark BSE Sensex gained as much as 0.91 per cent to 30,207.13, its highest ever. The chief of the country's state-run India Meteorological Department on Tuesday said India looks likely to receive higher monsoon rainfall than previously forecast as concern over the El Nino weather condition had eased. The broader NSE Nifty rose as much as 0.81 per cent to a record high of 9,392.50, surpassing its previous milestone recorded on May 05. The Nifty breached the 9,400 level for the first time as consumer stocks rallied, heavyweight Bharti Airtel surged after reporting strong subscriber growth. The markets have been responding to positive sentiment in the last few days, the International Monetary Fund on Monday had said India’s growth is expected to rebound to 7.2% in the 2017-18 fiscal and 7.7% in 2018-19 after disruptions caused by demonetisation. The temporary disruptions (primarily to private consumption) caused by cash shortages accompanying the currency exchange initiative are expected to gradually dissipate in 2017 as cash shortages ease, the International Monetary Fund (IMF) said in its regional economic outlook. Also Read: India likely to receive higher rainfall than previously forecast: Meteorological Department (Wion with Reuters input) Catch the latest from the world of business with Sumit Chaturvedi only on WION Wallet (WION) ×

Bull run: Sensex, Nifty at new peak

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Indian market touches new high and more (WION Wallet)

Boston Scientific Corp stands to lose millions of dollars on its high-end heart stent in India after a government panel rejected its request to increase a cap on the price that it can charge for the device. &nbsp;

Prime Minister Narendra Modi&#39;s government in February slashed prices of drug-releasing stents, small mesh devices used to pop open blocked arteries, by as much as 75 per cent, setting a price cap of 29,600 rupees ($450). The move was part of an aggressive push by the government to make life-saving drugs and devices more affordable. &nbsp;

The panel&#39;s rejection comes amid a growing tussle between medical device makers and the Indian government. Industry is worried that price ceilings could be introduced on other medical devices as well, eating into their future profits and growth. &nbsp;

In letters sent to government agencies in March and April, Boston Scientific argued that the cap was much lower than what it cost the company to import the device, called Synergy, and would lead to losses of at least $7 million this year.

The company asked for the price cap to be raised to around 75,000 rupees ($1,160), higher than its cost of 48,877 rupees. It argued that the government had ignored the &quot;exhaustive and persuasive&quot; data which demonstrated Synergy&#39;s superiority, according to the letters, which have not been reported previously. &nbsp;

Although India accounts for just a fraction of Boston Scientific&#39;s global drug-releasing stent sales of $1.2 billion, the Synergy stent is seen by analysts as one of the key growth drivers for the Marlborough, Massachusetts-based company.

India also serves as a research base for Boston Scientific from where it develops products for emerging markets. &nbsp;

A panel of the country&#39;s federal drug pricing authority rejected the request on Monday, saying there was &quot;no major innovation&quot; involved in the stent to warrant a higher price. The final decision will be taken by the federal health ministry. &nbsp;

A Boston Scientific spokeswoman said the company &quot;will continue to engage in a constructive dialogue with the government on the availability of our next generation stents&quot;. Public health advocates defend the government&#39;s moves, saying the industry charges exorbitant prices for essential, life-saving drugs and medical devices.

Modi&#39;s government has already announced price curbs on drugs used to treat critical ailments such as cancer, HIV/AIDS and diabetes. &nbsp;

Before the price order on stents, Boston Scientific&#39;s Synergy stent used to cost 195,000 rupees ($3,000) in India, according to the letters.

Denny John, a public health expert at the Campbell Collaboration, said the government should ask Boston Scientific how it could offer to settle for a price cap of around 75,000 rupees for a stent that it used to sell for 195,000 rupees before the government order. &nbsp;

The company did not answer questions about pricing. &nbsp;

Some experts defended the industry. Shamika Ravi, senior fellow at Brookings India, said price caps reduce incentives in the private market for innovation. &quot;Long-term it will bite patients in a much bigger way as it dries competition,&quot; Ravi said. &nbsp;

Boston Scientific competes with Abbott and Medtronic in India&#39;s $500 million stent market, where about 500,000 such devices were used in 2015. It sold nearly 5,000 Synergy stents in India last year. &nbsp;

&quot;The operations, careers of employees, training and education on the latest techniques for better patient care, new innovations will all be effected in this environment,&quot; the company wrote in a March 6 letter to India&#39;s drug pricing regulator. &nbsp;

In representations, which add up to nearly 200 pages and include court documents and clinical studies, the company had cited examples of court orders where judges set aside price fixation orders. It told the health ministry that it had the right to avail &quot;other remedies&quot; under Indian laws.

(Reuters)

&nbsp;

The move was part of an aggressive push by the government to make life-saving drugs and devices more affordable.

Boston Scientific Corp stands to lose millions of dollars on its high-end heart stent in India after a government panel rejected its request to increase a cap on the price that it can charge for the device. Prime Minister Narendra Modi's government in February slashed prices of drug-releasing stents, small mesh devices used to pop open blocked arteries, by as much as 75 per cent, setting a price cap of 29,600 rupees ($450). The move was part of an aggressive push by the government to make life-saving drugs and devices more affordable. The panel's rejection comes amid a growing tussle between medical device makers and the Indian government. Industry is worried that price ceilings could be introduced on other medical devices as well, eating into their future profits and growth. In letters sent to government agencies in March and April, Boston Scientific argued that the cap was much lower than what it cost the company to import the device, called Synergy, and would lead to losses of at least $7 million this year. The company asked for the price cap to be raised to around 75,000 rupees ($1,160), higher than its cost of 48,877 rupees. It argued that the government had ignored the "exhaustive and persuasive" data which demonstrated Synergy's superiority, according to the letters, which have not been reported previously. Although India accounts for just a fraction of Boston Scientific's global drug-releasing stent sales of $1.2 billion, the Synergy stent is seen by analysts as one of the key growth drivers for the Marlborough, Massachusetts-based company. India also serves as a research base for Boston Scientific from where it develops products for emerging markets. A panel of the country's federal drug pricing authority rejected the request on Monday, saying there was "no major innovation" involved in the stent to warrant a higher price. The final decision will be taken by the federal health ministry. A Boston Scientific spokeswoman said the company "will continue to engage in a constructive dialogue with the government on the availability of our next generation stents". Public health advocates defend the government's moves, saying the industry charges exorbitant prices for essential, life-saving drugs and medical devices. Modi's government has already announced price curbs on drugs used to treat critical ailments such as cancer, HIV/AIDS and diabetes. Before the price order on stents, Boston Scientific's Synergy stent used to cost 195,000 rupees ($3,000) in India, according to the letters. Denny John, a public health expert at the Campbell Collaboration, said the government should ask Boston Scientific how it could offer to settle for a price cap of around 75,000 rupees for a stent that it used to sell for 195,000 rupees before the government order. The company did not answer questions about pricing. Some experts defended the industry. Shamika Ravi, senior fellow at Brookings India, said price caps reduce incentives in the private market for innovation. "Long-term it will bite patients in a much bigger way as it dries competition," Ravi said. Boston Scientific competes with Abbott and Medtronic in India's $500 million stent market, where about 500,000 such devices were used in 2015. It sold nearly 5,000 Synergy stents in India last year. "The operations, careers of employees, training and education on the latest techniques for better patient care, new innovations will all be effected in this environment," the company wrote in a March 6 letter to India's drug pricing regulator. In representations, which add up to nearly 200 pages and include court documents and clinical studies, the company had cited examples of court orders where judges set aside price fixation orders. It told the health ministry that it had the right to avail "other remedies" under Indian laws. (Reuters)

Indian government panel rejects Boston Scientific plea on stent price caps

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out its bi-annual performance review amid a challenging business environment. 
 
The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs.

Interestingly, Infosys has said it will hire 10,000 Americans in the next two years and open four centres in the US as it seeks to counter moves by the US to tighten visa norms. 
 
&quot;Our performance management process provides for a bi-annual assessment of performance. A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback,&quot; Infosys spokesperson said in an emailed statement. 
 
The spokesperson did not divulge the number of people to be impacted, although reports peg the number to be in hundreds. 
 
&quot;We do this every year and the numbers could vary every performance cycle,&quot; the spokesperson said, adding that the assessment is based on individual goals and strategic priorities of the company. 
 
Last week, the US-based Cognizant had rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary.

Wipro, too, is learnt to have asked about 600 employees to leave as part of its annual &quot;performance appraisal&quot; even as speculations were that the number could go as high as 2,000. 
 
IT companies have been one of the largest recruiters in the country. However, they have warned that increasing automation of processes would lead to reduction in hiring in coming years. 
 
While the outsourcing model has placed India on the global map, increasing scrutiny and rising protectionist sentiment are also posing challenges for the USD 140 billion Indian IT industry. 
 
Companies are now working towards reducing their dependence on work visas and instead hiring more locals to ensure continuity of work for clients, even though it impacts their margins.

(PTI)

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out its bi-annual performance review

Infosys could hand out pink slips to hundreds of mid- and senior-level employees as it carries out its bi-annual performance review amid a challenging business environment. The development comes at a time when its peers Wipro and Cognizant are taking similar measures to control costs. Interestingly, Infosys has said it will hire 10,000 Americans in the next two years and open four centres in the US as it seeks to counter moves by the US to tighten visa norms. "Our performance management process provides for a bi-annual assessment of performance. A continued low feedback on performance could lead to certain performance actions, including separation of an individual and this is done only after feedback," Infosys spokesperson said in an emailed statement. The spokesperson did not divulge the number of people to be impacted, although reports peg the number to be in hundreds. "We do this every year and the numbers could vary every performance cycle," the spokesperson said, adding that the assessment is based on individual goals and strategic priorities of the company. Last week, the US-based Cognizant had rolled out a voluntary separation programme for directors, associate VPs and senior VPs, offering them 6-9 months of salary. Wipro, too, is learnt to have asked about 600 employees to leave as part of its annual "performance appraisal" even as speculations were that the number could go as high as 2,000. IT companies have been one of the largest recruiters in the country. However, they have warned that increasing automation of processes would lead to reduction in hiring in coming years. While the outsourcing model has placed India on the global map, increasing scrutiny and rising protectionist sentiment are also posing challenges for the USD 140 billion Indian IT industry. Companies are now working towards reducing their dependence on work visas and instead hiring more locals to ensure continuity of work for clients, even though it impacts their margins. (PTI)

After Cognizant, Wipro, now Infosys to lay off employees

Nisaba Godrej, 39, daughter of veteran industrialist Adi Godrej will lead Godrej Consumer Products, the flagship firm of the Godrej Group.

Adi Godrej announced on Tuesday that he was passing on the baton to Nisaba who is now among the youngest women to lead a large Indian firm.&nbsp;

Adi Godrej, 75, will take&nbsp;over as chairman emeritus after leading the company for 17 years. Nisaba assumes her new role as executive chairperson on May 10, 2017. She is currently the executive director of Godrej Consumer Products Limited (GCPL). &nbsp;

Nisaba is the second of Adi Godrej&#39;s three children. His eldest daughter, Tanya Dubash, is executive director and chief brand officer of the Godrej Group, while the youngest son, Pirojsha Godrej, is the executive chairman of Godrej Properties.&nbsp;

Adi Godrej said he will continue to serve the GCPL Board.&nbsp;

Vivek Gambhir will continue as managing director and chief executive officer, GCPL said in a statement.&nbsp;

&quot;The foundations of GCPL are extremely strong. This is an opportune time to transition to a new chairperson, who will lead the company in its next phase of growth,&quot; Adi Godrej said.&nbsp;

The Godrej Group has a presence in consumer goods, real estate, appliances, and agriculture sectors, among others.&nbsp;

In the past decade, Nisaba has played a key role in GCPL&#39;s strategy and transformation and has served on the GCPL board of directors since 2011.&nbsp;

Project Leapfrog, initiated in 2007 under which GCPL accelerated domestic organic growth through innovation and consolidation, and at the same time went global by investing in emerging markets outside of India, was a brainchild of Nisaba.&nbsp; 
&nbsp; 
During the period, GCPL&#39;s market capitalisation increased 20-fold from Rs 3,000 crore to Rs 60,000 crore. At present, almost half of the company&#39;s revenue comes from overseas markets.&nbsp;

In the past financial year, GCPL posted a total income from operations of Rs 9,608.08 crore as compared to Rs 8,753.06 crore in 2015-16.&nbsp;

Nisaba has also been credited with institutionalising design-driven thinking in the company and she directly leads product development.&nbsp;

She has also been hands on in identifying and developing in-house talent for the group with an oversight of the Group HR function for Godrej Industries and associate companies.&nbsp;

Nisaba&#39;s previous assignments within the Godrej Group include successful turnaround of Godrej Agrovet and the creation of a group strategy function to oversee the group&#39;s portfolio.&nbsp;

A graduate of The Wharton School of the University of Pennsylvania and a management graduate from Harvard Business School, Nisaba is married to Kalpesh Mehta, a real estate entrepreneur and has a son.&nbsp;

Commenting on her elevation, she said her father&#39;s disciplined, results driven and humble approach will always be the core of the group&#39;s DNA. &nbsp;

(WION)

At 39, Nisaba Godrej becomes one of the youngest women to lead a big Indian firm

Nisaba Godrej, 39, daughter of veteran industrialist Adi Godrej will lead Godrej Consumer Products, the flagship firm of the Godrej Group. Adi Godrej announced on Tuesday that he was passing on the baton to Nisaba who is now among the youngest women to lead a large Indian firm. Adi Godrej, 75, will take over as chairman emeritus after leading the company for 17 years. Nisaba assumes her new role as executive chairperson on May 10, 2017. She is currently the executive director of Godrej Consumer Products Limited (GCPL). Nisaba is the second of Adi Godrej's three children. His eldest daughter, Tanya Dubash, is executive director and chief brand officer of the Godrej Group, while the youngest son, Pirojsha Godrej, is the executive chairman of Godrej Properties. Adi Godrej said he will continue to serve the GCPL Board. Vivek Gambhir will continue as managing director and chief executive officer, GCPL said in a statement. "The foundations of GCPL are extremely strong. This is an opportune time to transition to a new chairperson, who will lead the company in its next phase of growth," Adi Godrej said. The Godrej Group has a presence in consumer goods, real estate, appliances, and agriculture sectors, among others. In the past decade, Nisaba has played a key role in GCPL's strategy and transformation and has served on the GCPL board of directors since 2011. Project Leapfrog, initiated in 2007 under which GCPL accelerated domestic organic growth through innovation and consolidation, and at the same time went global by investing in emerging markets outside of India, was a brainchild of Nisaba. During the period, GCPL's market capitalisation increased 20-fold from Rs 3,000 crore to Rs 60,000 crore. At present, almost half of the company's revenue comes from overseas markets. In the past financial year, GCPL posted a total income from operations of Rs 9,608.08 crore as compared to Rs 8,753.06 crore in 2015-16. Nisaba has also been credited with institutionalising design-driven thinking in the company and she directly leads product development. She has also been hands on in identifying and developing in-house talent for the group with an oversight of the Group HR function for Godrej Industries and associate companies. Nisaba's previous assignments within the Godrej Group include successful turnaround of Godrej Agrovet and the creation of a group strategy function to oversee the group's portfolio. A graduate of The Wharton School of the University of Pennsylvania and a management graduate from Harvard Business School, Nisaba is married to Kalpesh Mehta, a real estate entrepreneur and has a son. Commenting on her elevation, she said her father's disciplined, results driven and humble approach will always be the core of the group's DNA. (WION)

Adi Godrej hands over GCPL baton to daughter Nisaba

Under Governor Urjit Patel, the Reserve Bank of India (RBI) will target inflation of 4 percent, three officials familiar with its thinking said, adopting a narrower reading of its mandate than markets in a bid to stamp out rampant price rises of the past.

The differing interpretations of amendments to last year&#39;s RBI Act reflect sometimes strained relations between the market and the central bank, and are proving a test for Patel some eight months into his tenure.

The amendments were part of landmark changes to India&#39;s monetary policy pushed by Patel, then deputy governor, and his predecessor as governor, Raghuram Rajan, and require the RBI &quot;to contain inflation within the specified target level&quot; of 4 percent, but within a tolerated band of 2-6 percent.

Markets have interpreted that as the range of 2-6 percent, arguing that pursuing a specific 4 percent target takes away the flexibility needed in an economy that must grow by at least 8 percent a year to allow for full employment.

But the RBI is determined to chase the 4 percent figure, the officials said, as Patel and the other five members of his monetary policy committee (MPC) seek to defend the RBI&#39;s credibility on inflation.

&quot;Markets should read the Act carefully and think as if they are a member of the MPC, and then think: how would they conduct policy?&quot; said one of the officials.

&quot;The Act clearly says 4 percent is the target and the 2-6 percent band has been given only to absorb temporary or one-time shocks.&quot;

All three officials spoke on condition of anonymity, because they were not authorised to speak to the press on sensitive policy issues.

The RBI did not give official comment.

Such a stance could open the prospect of earlier interest rate hikes than expected by markets, should prices start to move higher unexpectedly and remain there for some time.

The officials stressed, however, that the RBI was also mindful of growth, in line with an Act that tasks the MPC with &quot;maintaining price stability, while keeping in mind the objective of growth.&quot;

Consumer inflation stood at 3.81 percent in March, but weaker-than-expected monsoon rains and planned hikes to government employee salaries could easily see the 4 percent target under threat.

But any move to hike the repo rate of 6.25 percent would need to be balanced by concerns among market participants that the economy is weaker than the 7.0 percent growth in the October-December quarter, as India&#39;s move last year to ban higher-valued bank notes continues to reverberate.

&quot;So far as the 4 percent target goes, the MPC has to decide how to go ahead in a calibrated way, balancing out the costs associated with that stance,&quot; said the second of the three officials.

RBI VERSUS MARKETS

The pursuit of the 4 percent target will likely continue to remain a source of disagreement between the RBI and some market players, even as investors begin to adjust to a more hawkish monetary policy.

A Reuters poll last month showed only seven out of 38 economists expected a rate cut this year, down from 21 out of 36 earlier.

However, Indranil Sengupta, economist and co-head of India Research at Bank of America Merrill Lynch, said inflation was &quot;a long, long way&quot; from becoming an issue since the economy has yet to accelerate meaningfully.

&quot;In our opinion there is a case for a 25 bps rate cut in August,&quot; he said.

The differing views reflect how markets are still adjusting to the changes to the monetary policy framework over the past two years in a country with a history of volatile and double-digit inflation.

Patel started his tenure by cutting rates in October, priming investors to believe he would soften his focus on inflation, only to then stun investors by changing the monetary policy stance to &quot;neutral&quot; from &quot;accommodative&quot; in February and adopting a much more hawkish tone.

Since then, the 10-year benchmark government bond yield has risen about 50 basis points.

The officials defended the actions as consistent with the RBI&#39;s views on the trajectory of inflation, which hit as low as 3.17 percent in January.

But it has since accelerated, and becoming too tolerant could dent the bank&#39;s credibility, the officials argued.

&quot;If people start doubting RBI&#39;s credibility in controlling inflation, then producers will start raising prices, which in turn will push up inflation expectations. It is very important to keep inflation expectations well anchored,&quot; said the second official.&nbsp;

(Reuters)

The stance could open the prospect of earlier interest rate hikes than expected by markets

Under Governor Urjit Patel, the Reserve Bank of India (RBI) will target inflation of 4 percent, three officials familiar with its thinking said, adopting a narrower reading of its mandate than markets in a bid to stamp out rampant price rises of the past. The differing interpretations of amendments to last year's RBI Act reflect sometimes strained relations between the market and the central bank, and are proving a test for Patel some eight months into his tenure. The amendments were part of landmark changes to India's monetary policy pushed by Patel, then deputy governor, and his predecessor as governor, Raghuram Rajan, and require the RBI "to contain inflation within the specified target level" of 4 percent, but within a tolerated band of 2-6 percent. Markets have interpreted that as the range of 2-6 percent, arguing that pursuing a specific 4 percent target takes away the flexibility needed in an economy that must grow by at least 8 percent a year to allow for full employment. But the RBI is determined to chase the 4 percent figure, the officials said, as Patel and the other five members of his monetary policy committee (MPC) seek to defend the RBI's credibility on inflation. "Markets should read the Act carefully and think as if they are a member of the MPC, and then think: how would they conduct policy?" said one of the officials. "The Act clearly says 4 percent is the target and the 2-6 percent band has been given only to absorb temporary or one-time shocks." All three officials spoke on condition of anonymity, because they were not authorised to speak to the press on sensitive policy issues. The RBI did not give official comment. Such a stance could open the prospect of earlier interest rate hikes than expected by markets, should prices start to move higher unexpectedly and remain there for some time. The officials stressed, however, that the RBI was also mindful of growth, in line with an Act that tasks the MPC with "maintaining price stability, while keeping in mind the objective of growth." Consumer inflation stood at 3.81 percent in March, but weaker-than-expected monsoon rains and planned hikes to government employee salaries could easily see the 4 percent target under threat. But any move to hike the repo rate of 6.25 percent would need to be balanced by concerns among market participants that the economy is weaker than the 7.0 percent growth in the October-December quarter, as India's move last year to ban higher-valued bank notes continues to reverberate. "So far as the 4 percent target goes, the MPC has to decide how to go ahead in a calibrated way, balancing out the costs associated with that stance," said the second of the three officials. RBI VERSUS MARKETS The pursuit of the 4 percent target will likely continue to remain a source of disagreement between the RBI and some market players, even as investors begin to adjust to a more hawkish monetary policy. A Reuters poll last month showed only seven out of 38 economists expected a rate cut this year, down from 21 out of 36 earlier. However, Indranil Sengupta, economist and co-head of India Research at Bank of America Merrill Lynch, said inflation was "a long, long way" from becoming an issue since the economy has yet to accelerate meaningfully. "In our opinion there is a case for a 25 bps rate cut in August," he said. The differing views reflect how markets are still adjusting to the changes to the monetary policy framework over the past two years in a country with a history of volatile and double-digit inflation. Patel started his tenure by cutting rates in October, priming investors to believe he would soften his focus on inflation, only to then stun investors by changing the monetary policy stance to "neutral" from "accommodative" in February and adopting a much more hawkish tone. Since then, the 10-year benchmark government bond yield has risen about 50 basis points. The officials defended the actions as consistent with the RBI's views on the trajectory of inflation, which hit as low as 3.17 percent in January. But it has since accelerated, and becoming too tolerant could dent the bank's credibility, the officials argued. "If people start doubting RBI's credibility in controlling inflation, then producers will start raising prices, which in turn will push up inflation expectations. It is very important to keep inflation expectations well anchored," said the second official. (Reuters)

RBI to target 4 per cent inflation

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Honda becomes no.2 bike maker in India and more (WION Wallet)

The US Federal Reserve held interest rates steady on Wednesday, while also downplaying recent weak economic growth, a signal it will remain on course for gradual rate hikes.

The wording of the Fed&#39;s policy statement strengthens the prospect of two more increases in the benchmarket lending rate this year, likely at the June and September meetings.

The Fed&#39;s policy-setting Federal Open Market Committee voted unanimously to keep the federal funds rate in a range of 0.75-1.0 percent, just as most analysts had expected.

The FOMC members discounted the tepid growth in the first quarter -- when GDP expanded by only 0.7 per cent, the slowest in three years -- as a one-time issue, while emphasizing the continued strong labour market and solid hiring.

&quot;The Committee views the slowing in growth during the first quarter as likely to be transitory and continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace,&quot; the statement read.

The central bank raised rates in March and December, given steady job creation and some signs of mounting price pressures -- and amid the wave of optimism in the early days of President Donald Trump&#39;s term, with his promises of tax cuts and big infrastructure spending.&nbsp;

High bar for inaction 
 
Many economists also discounted the weak first quarter as an anomaly frequently seen in the first three months of the year, and continue to see the need for two more rate moves.&nbsp;

Fed-watchers applauded the nuance of the central bank&#39;s statement in signaling the continued move away from zero interest rates during the financial crisis, a shift known as policy &quot;normalization.&quot;

Barclays economists said although the Fed did not take action, &quot;it did something just as important: in the face of weak data, it signaled that it would maintain its normalization path this year.&quot;&nbsp;

At the same time, the Fed showed no uncertainty about the economy &quot;or hesitation over the path of policy,&quot; Barclays added.

&nbsp;Given that tone, &quot;we believe the bar for inaction in June is high. To derail June, the economy would need to provide proof of fundamental weakness to the FOMC,&quot; the economists said.

Mickey Levy of Berenberg Capital Markets noted that central bankers are not as reactive to every swing in data as they had been in the past two years.

The Fed &quot;appears to be firmly on a policy normalization track and is not reacting to every piece of high-frequency economic data,&quot; Levy said.&nbsp;

&quot;It would take a dramatic slowdown in the economy to derail the Fed&#39;s normalization plans.&quot;

&#39;Solid&#39; job gains 
 
Since the last meeting in March, &quot;The labor market has continued to strengthen even as growth in economic activity slowed,&quot; the FOMC statement said, with &quot;solid&quot; job gains and another decline in the unemployment rate, which now sits at 4.5 per cent.

And while household spending has risen only modestly, &quot;the fundamentals underpinning the continued growth of consumption remained solid.&quot;

Meanwhile, 12-month inflation has held close to the Fed&#39;s two percent target, even while some price measures declined in March.

The Fed&#39;s beige book survey of the economy prepared in advance of this week&#39;s meeting noted reports across the country of firms that had to provide bonuses, and increase wages and benefits, while still struggling to fill openings, even for low-skilled work.

Ian Shepherdson, chief economist of Pantheon Macroeconomics, said the rate hikes will be needed to head off inflation as the job market continues to tighten.&nbsp;

The FOMC members &quot;have not changed their view that the economy can take a &#39;gradual&#39; increase in rates, which will be needed to prevent an overshoot of the inflation target as the labor market tightens,&quot; Sherpherdson said. 
 
(AFP) 
 
&nbsp;

The Fed has kept federal funds rate in a range of 0.75-1.0%, just as most analysts had expected

The US Federal Reserve held interest rates steady on Wednesday, while also downplaying recent weak economic growth, a signal it will remain on course for gradual rate hikes. The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmarket lending rate this year, likely at the June and September meetings. The Fed's policy-setting Federal Open Market Committee voted unanimously to keep the federal funds rate in a range of 0.75-1.0 percent, just as most analysts had expected. The FOMC members discounted the tepid growth in the first quarter -- when GDP expanded by only 0.7 per cent, the slowest in three years -- as a one-time issue, while emphasizing the continued strong labour market and solid hiring. "The Committee views the slowing in growth during the first quarter as likely to be transitory and continues to expect that, with gradual adjustments in the stance of monetary policy, economic activity will expand at a moderate pace," the statement read. The central bank raised rates in March and December, given steady job creation and some signs of mounting price pressures -- and amid the wave of optimism in the early days of President Donald Trump's term, with his promises of tax cuts and big infrastructure spending. High bar for inaction Many economists also discounted the weak first quarter as an anomaly frequently seen in the first three months of the year, and continue to see the need for two more rate moves. Fed-watchers applauded the nuance of the central bank's statement in signaling the continued move away from zero interest rates during the financial crisis, a shift known as policy "normalization." Barclays economists said although the Fed did not take action, "it did something just as important: in the face of weak data, it signaled that it would maintain its normalization path this year." At the same time, the Fed showed no uncertainty about the economy "or hesitation over the path of policy," Barclays added. Given that tone, "we believe the bar for inaction in June is high. To derail June, the economy would need to provide proof of fundamental weakness to the FOMC," the economists said. Mickey Levy of Berenberg Capital Markets noted that central bankers are not as reactive to every swing in data as they had been in the past two years. The Fed "appears to be firmly on a policy normalization track and is not reacting to every piece of high-frequency economic data," Levy said. "It would take a dramatic slowdown in the economy to derail the Fed's normalization plans." 'Solid' job gains Since the last meeting in March, "The labor market has continued to strengthen even as growth in economic activity slowed," the FOMC statement said, with "solid" job gains and another decline in the unemployment rate, which now sits at 4.5 per cent. And while household spending has risen only modestly, "the fundamentals underpinning the continued growth of consumption remained solid." Meanwhile, 12-month inflation has held close to the Fed's two percent target, even while some price measures declined in March. The Fed's beige book survey of the economy prepared in advance of this week's meeting noted reports across the country of firms that had to provide bonuses, and increase wages and benefits, while still struggling to fill openings, even for low-skilled work. Ian Shepherdson, chief economist of Pantheon Macroeconomics, said the rate hikes will be needed to head off inflation as the job market continues to tighten. The FOMC members "have not changed their view that the economy can take a 'gradual' increase in rates, which will be needed to prevent an overshoot of the inflation target as the labor market tightens," Sherpherdson said. (AFP)

US Federal Reserve keeps key lending rate unchanged

The dollar gained Wednesday after the Federal Reserve signaled it was on track to gradually lift interest rates, raising expectations it will again act in June.

The wording of the Fed&#39;s policy statement strengthens the prospect of two more increases in the benchmark lending rate this year, boosting the dollar against the euro and other major currencies.

Global equity markets were mixed. The Dow finished slightly higher, while the S&amp;P 500 and Nasdaq both fell modestly. Frankfurt rose modestly, while London and Paris dipped.

The Fed gave a generally upbeat outlook on the US economy, saying that some weak data in the first quarter were &quot;likely to be transitory&quot; and predicting that economic activity would expand &quot;at a moderate pace.&quot;

Several analysts said the statement clears the way for the US central bank to lift rates next month, although that partly depends on US data. A key release comes Friday with issuing of the US jobs report for April.

&quot;Given the tone of the statement, we believe the bar for inaction in June is high,&quot; a note from Barclays said. &quot;The committee seems eager to look through any weakness and has, at long last, reached a consensus, in our view, that a gradual pace of rate hikes this year is warranted.&quot;

The euro was down against the dollar ahead of Sunday&#39;s second round of France&#39;s presidential election, in which moderate Emmanuel Macron is expected to beat his far-right, anti-EU opponent Marine Le Pen. The two candidates traded insults in a heated TV debate on Wednesday ahead of this weekend&#39;s runoff.

Crude prices remained under pressure after the US government reported a much smaller fall in oil stocks than analysts had expected.

In earnings news, Apple shed 0.3 percent after reporting a 4.9 per cent rise in second-quarter profit to $11 billion. But iPhone sales came in slightly lower than in the year-ago period.

Media shares fell sharply following results from Time Warner that were generally strong, but included disappointing advertising revenue at its Turner broadcasting division. Analysts worry that the growth of streaming services is hitting broadcasting profits.

Disney lost 2.4 per cent, Twenty-First Century Fox, 5.1 per cent and Viacom, 7.3 per cent. All three will report earnings in the coming days.

French oil giant Total meanwhile lost the top market capitalization spot in the Paris CAC 40 index on Wednesday, making way for the luxury behemoth LVMH.

Key figures around 2100 GMT

New York - Dow: UP less than 0.1 per cent at 20,957.90 (close)

New York - S&amp;P 500: DOWN 0.1 per cent at 2,388.13 (close)

New York - Nasdaq: DOWN 0.4 per cent at 6,072.55 (close)

London - FTSE 100: DOWN 0.2 per cent at 7,234.53 points(close)

Frankfurt - DAX 30: UP 0.2 per cent at 12,527.84 (close)

Paris - CAC 40: DOWN 0.1 per cent at 5,301.00 (close)

EURO STOXX 50: UP 0.2 per cent at 3,586.25

Shanghai - Composite: DOWN 0.3 per cent at 3,135.35 (close)

Tokyo - Nikkei 225: Closed for holiday

Hong Kong - Hang Seng: Closed for holiday

Euro/dollar: DOWN at $1.0887 from $1.0925 at 2050 GMT

Pound/dollar: DOWN at $1.2873 from $1.2932&nbsp;

Dollar/yen: UP at 112.67 yen from 112.04 yen

Oil - Brent North Sea: UP 33 cents at $50.79 per barrel

Oil - West Texas Intermediate: UP 16 cents at $47.82 per barrel&nbsp;

(Reuters) 
&nbsp;

The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmark lending rate this year

The dollar gained Wednesday after the Federal Reserve signaled it was on track to gradually lift interest rates, raising expectations it will again act in June. The wording of the Fed's policy statement strengthens the prospect of two more increases in the benchmark lending rate this year, boosting the dollar against the euro and other major currencies. Global equity markets were mixed. The Dow finished slightly higher, while the S&P 500 and Nasdaq both fell modestly. Frankfurt rose modestly, while London and Paris dipped. The Fed gave a generally upbeat outlook on the US economy, saying that some weak data in the first quarter were "likely to be transitory" and predicting that economic activity would expand "at a moderate pace." Several analysts said the statement clears the way for the US central bank to lift rates next month, although that partly depends on US data. A key release comes Friday with issuing of the US jobs report for April. "Given the tone of the statement, we believe the bar for inaction in June is high," a note from Barclays said. "The committee seems eager to look through any weakness and has, at long last, reached a consensus, in our view, that a gradual pace of rate hikes this year is warranted." The euro was down against the dollar ahead of Sunday's second round of France's presidential election, in which moderate Emmanuel Macron is expected to beat his far-right, anti-EU opponent Marine Le Pen. The two candidates traded insults in a heated TV debate on Wednesday ahead of this weekend's runoff. Crude prices remained under pressure after the US government reported a much smaller fall in oil stocks than analysts had expected. In earnings news, Apple shed 0.3 percent after reporting a 4.9 per cent rise in second-quarter profit to $11 billion. But iPhone sales came in slightly lower than in the year-ago period. Media shares fell sharply following results from Time Warner that were generally strong, but included disappointing advertising revenue at its Turner broadcasting division. Analysts worry that the growth of streaming services is hitting broadcasting profits. Disney lost 2.4 per cent, Twenty-First Century Fox, 5.1 per cent and Viacom, 7.3 per cent. All three will report earnings in the coming days. French oil giant Total meanwhile lost the top market capitalization spot in the Paris CAC 40 index on Wednesday, making way for the luxury behemoth LVMH. Key figures around 2100 GMT New York - Dow: UP less than 0.1 per cent at 20,957.90 (close) New York - S&P 500: DOWN 0.1 per cent at 2,388.13 (close) New York - Nasdaq: DOWN 0.4 per cent at 6,072.55 (close) London - FTSE 100: DOWN 0.2 per cent at 7,234.53 points(close) Frankfurt - DAX 30: UP 0.2 per cent at 12,527.84 (close) Paris - CAC 40: DOWN 0.1 per cent at 5,301.00 (close) EURO STOXX 50: UP 0.2 per cent at 3,586.25 Shanghai - Composite: DOWN 0.3 per cent at 3,135.35 (close) Tokyo - Nikkei 225: Closed for holiday Hong Kong - Hang Seng: Closed for holiday Euro/dollar: DOWN at $1.0887 from $1.0925 at 2050 GMT Pound/dollar: DOWN at $1.2873 from $1.2932 Dollar/yen: UP at 112.67 yen from 112.04 yen Oil - Brent North Sea: UP 33 cents at $50.79 per barrel Oil - West Texas Intermediate: UP 16 cents at $47.82 per barrel (Reuters)

Dollar gains as Fed stays on track for gradual rate hikes

Apple Inc reported a surprise fall in iPhone sales for its second quarter on Tuesday, indicating that customers may have held back purchases in anticipation of the 10th-anniversary edition of the company&#39;s most important product later this year.

Under pressure from shareholders to hand over more of its $250 billion-plus hoard of cash and investments, Apple boosted its capital return programme by $50 billion, increased its share repurchase authorisation by $35 billion and raised its quarterly dividend by 10.5 per cent.

Investors were unmoved, sending shares of the world&#39;s most valuable listed company down 1.9 per cent at $144.65 in after-hours trading.

Apple sold 50.76 million iPhones in its fiscal second quarter ended April 1, down from 51.19 million a year earlier.

Analysts on average had estimated iPhone sales of 52.27 million, according to financial data and analytics firm FactSet.

Apple Chief Financial Officer Luca Maestri argued the decline was not as bad as it looked, given the peculiarities of how phone sales are calculated.

The company reports what are called &quot;sell-in&quot; figures for the iPhone, a measure of how many units it sells to retailers, rather than &quot;sell-through&quot; figures, which measure how many phones are actually sold to consumers.

Maestri said the company reduced the volume of inventory going through its retail channel by about 1.2 million units in the quarter, meaning the company sold about 52 million phones to customers on a sell-through basis.

Despite the dip in unit sales, iPhone revenues rose 1.2 per cent in the quarter, helped by a higher average selling price.

10th anniversary

Expectations are building ahead of Apple&#39;s 10th-anniversary iPhone range this fall, with investors hoping that the launch would help bolster sales.

Apple typically launches its new iPhones in September.

A big jump in sales usually follows in the holiday quarter, before demand tapers over the next few quarters as customers hold back ahead of the next launch.

Apple&#39;s 10th-anniversary iPhone range might sport features such as wireless charging, 3-D facial recognition and a curved display.

&quot;There is a general softening in phone demand to contend with as well as expectations of a big upgrade, all of which softens the blow of this quarter&#39;s miss,&quot; said James McQuivey, a Forrester Research analyst. &quot;If we see Apple downplaying expectations before the next upgrade cycle, it might mean that the company isn&#39;t confident it will beat those expectations.&quot;

The company forecast total revenue of between $43.5 billion and $45.5 billion for the current quarter, while analysts on average were expecting $45.60 billion, according to Thomson Reuters.

Analysts on average expect the company to sell 42.31 million iPhones in the current quarter, according to FactSet.

For the second quarter, the company&#39;s net income rose to $11.03 billion, or $2.10 per share, compared with $10.52 billion, or $1.90 per share, a year earlier.

Analysts on average had expected $2.02 per share, according to Thomson Reuters.

Revenue rose 4.6 per cent to $52.90 billion in the quarter, compared with analysts&#39; average estimate of $53.02 billion.

A 17.5 per cent jump in the company&#39;s services business - which includes the App Store, Apple Music, Apple Pay and iCloud - to $7.04 billion, boosted revenue.

&quot;We are particularly encouraged by the fact that service revenue is nowhere near as cyclical as product revenue,&quot; Neil Saunders, Managing Director of GlobalData Retail, wrote in a note to clients.

Apple&#39;s revenue from the Greater China region fell 14.1 per cent to $10.73 billion in the quarter, as cheaper rivals in the region chipped away at sales.

Maestri said that sales of Macs and the company&#39;s services were strong in China during the March quarter. &ldquo;The performance we&rsquo;re seeing in China should get better going forward this year,&rdquo; he said.

Apple&#39;s gross margin hit 38.9 per cent, slightly ahead of analysts&#39; average expectation of 38.7 per cent, despite higher prices for memory chips. The company said it expects gross margins next quarter between 37.5 per cent and 38.5 per cent, versus analysts&#39; expectation of 38.3 per cent, according to FactSet.

&ldquo;NAND and DRAM (memory chips) are under pressure right now in terms of some price pressure. We saw that in the March quarter and expect that to continue into the June quarter, but for all the other commodities, we see prices declining,&rdquo; Maestri said.

(Reuters)

Apple boosted its capital return programme by $50 billion

Apple Inc reported a surprise fall in iPhone sales for its second quarter on Tuesday, indicating that customers may have held back purchases in anticipation of the 10th-anniversary edition of the company's most important product later this year. Under pressure from shareholders to hand over more of its $250 billion-plus hoard of cash and investments, Apple boosted its capital return programme by $50 billion, increased its share repurchase authorisation by $35 billion and raised its quarterly dividend by 10.5 per cent. Investors were unmoved, sending shares of the world's most valuable listed company down 1.9 per cent at $144.65 in after-hours trading. Apple sold 50.76 million iPhones in its fiscal second quarter ended April 1, down from 51.19 million a year earlier. Analysts on average had estimated iPhone sales of 52.27 million, according to financial data and analytics firm FactSet. Apple Chief Financial Officer Luca Maestri argued the decline was not as bad as it looked, given the peculiarities of how phone sales are calculated. The company reports what are called "sell-in" figures for the iPhone, a measure of how many units it sells to retailers, rather than "sell-through" figures, which measure how many phones are actually sold to consumers. Maestri said the company reduced the volume of inventory going through its retail channel by about 1.2 million units in the quarter, meaning the company sold about 52 million phones to customers on a sell-through basis. Despite the dip in unit sales, iPhone revenues rose 1.2 per cent in the quarter, helped by a higher average selling price. 10th anniversary Expectations are building ahead of Apple's 10th-anniversary iPhone range this fall, with investors hoping that the launch would help bolster sales. Apple typically launches its new iPhones in September. A big jump in sales usually follows in the holiday quarter, before demand tapers over the next few quarters as customers hold back ahead of the next launch. Apple's 10th-anniversary iPhone range might sport features such as wireless charging, 3-D facial recognition and a curved display. "There is a general softening in phone demand to contend with as well as expectations of a big upgrade, all of which softens the blow of this quarter's miss," said James McQuivey, a Forrester Research analyst. "If we see Apple downplaying expectations before the next upgrade cycle, it might mean that the company isn't confident it will beat those expectations." The company forecast total revenue of between $43.5 billion and $45.5 billion for the current quarter, while analysts on average were expecting $45.60 billion, according to Thomson Reuters. Analysts on average expect the company to sell 42.31 million iPhones in the current quarter, according to FactSet. For the second quarter, the company's net income rose to $11.03 billion, or $2.10 per share, compared with $10.52 billion, or $1.90 per share, a year earlier. Analysts on average had expected $2.02 per share, according to Thomson Reuters. Revenue rose 4.6 per cent to $52.90 billion in the quarter, compared with analysts' average estimate of $53.02 billion. A 17.5 per cent jump in the company's services business - which includes the App Store, Apple Music, Apple Pay and iCloud - to $7.04 billion, boosted revenue. "We are particularly encouraged by the fact that service revenue is nowhere near as cyclical as product revenue," Neil Saunders, Managing Director of GlobalData Retail, wrote in a note to clients. Apple's revenue from the Greater China region fell 14.1 per cent to $10.73 billion in the quarter, as cheaper rivals in the region chipped away at sales. Maestri said that sales of Macs and the company's services were strong in China during the March quarter. “The performance we’re seeing in China should get better going forward this year,” he said. Apple's gross margin hit 38.9 per cent, slightly ahead of analysts' average expectation of 38.7 per cent, despite higher prices for memory chips. The company said it expects gross margins next quarter between 37.5 per cent and 38.5 per cent, versus analysts' expectation of 38.3 per cent, according to FactSet. “NAND and DRAM (memory chips) are under pressure right now in terms of some price pressure. We saw that in the March quarter and expect that to continue into the June quarter, but for all the other commodities, we see prices declining,” Maestri said. (Reuters)

Apple posts surprise dip in iPhone sales, shares fall

Saudi Arabia now owns the&nbsp;largest oil refinery in the United States, according to CNN Money.

Texas-based Port Arthur is considered to be the crown jewel of the US refinery system.

Saudi Aramco, the state-owned company, earlier co-owned the Port Arthur facility with&nbsp;Royal Dutch Shell (RDSA) called Motiva Enterprises.

But the joint venture ran into trouble due to a fractious relationship between the two owners. They decided to separate their assets in 2016.

Aramco&#39;s plan to take over the sprawling facility was first announced at the end of last year.

Aramco paid $2.2bn to Shell in the breakup deal, according to a Bloomberg report.

Shell released a statement on Monday that the takeover was complete.

Port Arthur can process 600,000 barrels of oil per day.

CNN further reported: &quot;Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida.&quot;

Aramco buying out Port Arthur coincides with the Trump administration&#39;s aim to halt oil imports from Saudi Arabia and a push to be self-sufficient in its energy needs.

During last year&#39;s election campaign, Trump said he wanted America to be independent of&nbsp;&quot;our foes and the oil cartels&quot;.

US currently imports 1.3 million barrels of crude oil from Saudi Arabia, according to Energy Information Administration.

Aramco also believes that the IPO would be valued at $2 trillion, which would make it the highest IPO valuation in history.

The state-owned oil behemoth is hoping for the IPO&#39;s success, which has been bolstered by the Saudi government&#39;s decision to halve the company&#39;s corporate tax rates.

(WION)

&nbsp;

&nbsp;

&nbsp;

&nbsp;

The Port Arthur facility, considered the crown jewel of US oil refineries, can produce 600,000 barrels of crude oil per day

Saudi Arabia now owns the largest oil refinery in the United States, according to CNN Money. Texas-based Port Arthur is considered to be the crown jewel of the US refinery system. Saudi Aramco, the state-owned company, earlier co-owned the Port Arthur facility with Royal Dutch Shell (RDSA) called Motiva Enterprises. But the joint venture ran into trouble due to a fractious relationship between the two owners. They decided to separate their assets in 2016. Aramco's plan to take over the sprawling facility was first announced at the end of last year. Aramco paid $2.2bn to Shell in the breakup deal, according to a Bloomberg report. Shell released a statement on Monday that the takeover was complete. Port Arthur can process 600,000 barrels of oil per day. CNN further reported: "Aramco is acquiring full ownership of 24 distribution terminals. Aramco also gets the exclusive right to sell Shell-branded gasoline and diesel in Georgia, North Carolina, South Carolina, Virginia, Maryland, the eastern half of Texas and the majority of Florida." Aramco buying out Port Arthur coincides with the Trump administration's aim to halt oil imports from Saudi Arabia and a push to be self-sufficient in its energy needs. During last year's election campaign, Trump said he wanted America to be independent of "our foes and the oil cartels". US currently imports 1.3 million barrels of crude oil from Saudi Arabia, according to Energy Information Administration. Aramco also believes that the IPO would be valued at $2 trillion, which would make it the highest IPO valuation in history. The state-owned oil behemoth is hoping for the IPO's success, which has been bolstered by the Saudi government's decision to halve the company's corporate tax rates. (WION)

Saudi Arabia's Aramco acquires US' largest oil refinery for $2.2bn

Twitter is launching a 24-hour streaming news channel in partnership with the Bloomberg Media, in a major expansion of the social media firm&#39;s video operations, the two firms announced Monday.

The new streaming channel &quot;will combine the vast global editorial and newsgathering capabilities of Bloomberg with the digital power of Twitter,&quot; a joint statement.

Michael Bloomberg, the founder of the financial news and information service and a former New York mayor, joined Twitter chief executive Jack Dorsey at a New York media conference to make the announcement.

The streaming channel set to launch later this year will include user-generated content from Twitter which will be verified by Bloomberg editors, along with live video reporting from journalists at the news organization.

&quot;Today&#39;s global news consumer wants and needs more than what&#39;s currently available,&quot; said Justin Smith, CEO of Bloomberg Media, in a statement.

&quot;With this new network, we are setting out to reinvent the digital breaking news experience.&quot;

Smith told The Wall Street Journal, which first reported the tie-up, that the new network would &quot;be focused on the most important news for an intelligent audience around the globe and it&#39;s going to be broader in focus than our existing network.&quot;

Twitter chief operating officer Anthony Noto said in a statement, &quot;Twitter&#39;s speed and vast global network of content and commentary combined with the high quality, editorial rigor of Bloomberg is a unique and powerful combination.&quot;

Financial details of the new venture were not disclosed.

Twitter shares jumped 6.4 percent on the news to close at $17.53, the highest since February.

The service could help Twitter expand its user base, which has been growing at a slower pace than its social media rivals.

Twitter has been seeking to broaden its appeal beyond its core user base of celebrities, politicians and journalists, ramping up efforts in video and live sports.

But in its quarterly results last week, Twitter reported a drop in revenue, despite boosting its monthly user base to 328 million, up 14 percent from a year ago.

Twitter, which has never reported a profit, said its net loss narrowed to $62 million from $80 million a year earlier.

Twitter already offers some live video news through a partnership with the streaming application Cheddar. It had rights last year to stream some National Football League games, but lost that for the upcoming season to Amazon. 
 
(AFP)

Michael Bloomberg and Twitter chief executive Jack Dorsey made the announcement at a press conference in New York.

Twitter is launching a 24-hour streaming news channel in partnership with the Bloomberg Media, in a major expansion of the social media firm's video operations, the two firms announced Monday. The new streaming channel "will combine the vast global editorial and newsgathering capabilities of Bloomberg with the digital power of Twitter," a joint statement. Michael Bloomberg, the founder of the financial news and information service and a former New York mayor, joined Twitter chief executive Jack Dorsey at a New York media conference to make the announcement. The streaming channel set to launch later this year will include user-generated content from Twitter which will be verified by Bloomberg editors, along with live video reporting from journalists at the news organization. "Today's global news consumer wants and needs more than what's currently available," said Justin Smith, CEO of Bloomberg Media, in a statement. "With this new network, we are setting out to reinvent the digital breaking news experience." Smith told The Wall Street Journal, which first reported the tie-up, that the new network would "be focused on the most important news for an intelligent audience around the globe and it's going to be broader in focus than our existing network." Twitter chief operating officer Anthony Noto said in a statement, "Twitter's speed and vast global network of content and commentary combined with the high quality, editorial rigor of Bloomberg is a unique and powerful combination." Financial details of the new venture were not disclosed. Twitter shares jumped 6.4 percent on the news to close at $17.53, the highest since February. The service could help Twitter expand its user base, which has been growing at a slower pace than its social media rivals. Twitter has been seeking to broaden its appeal beyond its core user base of celebrities, politicians and journalists, ramping up efforts in video and live sports. But in its quarterly results last week, Twitter reported a drop in revenue, despite boosting its monthly user base to 328 million, up 14 percent from a year ago. Twitter, which has never reported a profit, said its net loss narrowed to $62 million from $80 million a year earlier. Twitter already offers some live video news through a partnership with the streaming application Cheddar. It had rights last year to stream some National Football League games, but lost that for the upcoming season to Amazon. (AFP)

Twitter, Bloomberg announce partnership for streaming news channel

IT services firm Infosys Ltd said late on Monday that it plans to hire 10,000 American workers in the next two years and open four technology centres in the United States, starting with a centre this August in Indiana, the home state of Vice President Mike Pence.

The move comes at a time when Infosys and some of its Indian peers such as Tata Consultancy Services and Wipro have become political targets in the United States for allegedly displacing jobs of American workers by flying in foreign workers on temporary visas to service their clients in the country.

The IT service firms rely heavily on the H1-B visa programme, which President Trump has ordered federal agencies to review.

In a telephone interview with Reuters from Indiana, Infosys CEO Vishal Sikka said his company plans to hire American workers in fields such as artificial intelligence.

He said the firm has already hired 2,000 American workers as part of a previous effort started in 2014.

&quot;When you think about it from a U.S. point of view, obviously creating more American jobs and opportunities is a good thing,&quot; Sikka said.

(Reuters)

Company CEO Vishal Sikka said the firm has already hired 2,000 American workers as part of a previous effort started in 2014

IT services firm Infosys Ltd said late on Monday that it plans to hire 10,000 American workers in the next two years and open four technology centres in the United States, starting with a centre this August in Indiana, the home state of Vice President Mike Pence. The move comes at a time when Infosys and some of its Indian peers such as Tata Consultancy Services and Wipro have become political targets in the United States for allegedly displacing jobs of American workers by flying in foreign workers on temporary visas to service their clients in the country. The IT service firms rely heavily on the H1-B visa programme, which President Trump has ordered federal agencies to review. In a telephone interview with Reuters from Indiana, Infosys CEO Vishal Sikka said his company plans to hire American workers in fields such as artificial intelligence. He said the firm has already hired 2,000 American workers as part of a previous effort started in 2014. "When you think about it from a U.S. point of view, obviously creating more American jobs and opportunities is a good thing," Sikka said. (Reuters)

Infosys plans to hire 10,000 American workers, open 4 US tech centres

Cab hailing services and e-commerce start-ups have been incurring loss after loss. Uber has lost $2.8 billion last year whereas Ola suffered a loss of Rs 796 Cr in 2014-15

A business of suffering losses

US growth slowed to its lowest level in three years in the first quarter of 2017, held down by falling business inventories and reduced public spending, the Commerce Department reported Friday.

Preliminary data showed GDP increased only 0.7 per cent in the first three months of the year, down sharply from the 2.1 per cent expansion seen in the fourth quarter of 2016.

The estimate fell well below analyst expectations and marked a somber start to the presidency of Donald Trump, who rose to power on a message of nationalist economic revival.

(AFP)

Preliminary data showed GDP increased only 0.7 percent in the first three months of the year

US growth slowed to its lowest level in three years in the first quarter of 2017, held down by falling business inventories and reduced public spending, the Commerce Department reported Friday. Preliminary data showed GDP increased only 0.7 per cent in the first three months of the year, down sharply from the 2.1 per cent expansion seen in the fourth quarter of 2016. The estimate fell well below analyst expectations and marked a somber start to the presidency of Donald Trump, who rose to power on a message of nationalist economic revival. (AFP)

US growth hits 3-year low at 0.7 per cent in Trump's 1st quarter

The Delhi High Court has approved a settlement of the $1.18 billion dispute between Tata Sons and NTT DoCoMo, allowing the Indian firm to buy out the Japanese firm&#39;s stake in the telecoms joint venture, TV news channels reported on Friday.

India&#39;s central bank had blocked Tata&#39;s offer, saying a rule change in 2016 prevented foreign investors from selling stakes in Indian firms at a pre-determined price.

DoCoMo entered India in 2009 with an investment of nearly $2.2 billion in Tata group&#39;s telecoms arm Tata Teleservices for a 26.5 per cent stake in the venture. Competition and a low subscriber base forced DoCoMo to rethink its strategy and it decided to get out of India in 2014.

Under the terms of the deal, in the event of an exit, DoCoMo was guaranteed the higher of either half its original investment, or its fair value.

Tata was unable to find a buyer for the Japanese firm&#39;s stake and offered to buy the stake itself for half of DoCoMo&#39;s investment.

(Reuters)

The HC has allowed Tata Sons to buy out the Japanese firm's stake in the telecoms joint venture

The Delhi High Court has approved a settlement of the $1.18 billion dispute between Tata Sons and NTT DoCoMo, allowing the Indian firm to buy out the Japanese firm's stake in the telecoms joint venture, TV news channels reported on Friday. India's central bank had blocked Tata's offer, saying a rule change in 2016 prevented foreign investors from selling stakes in Indian firms at a pre-determined price. DoCoMo entered India in 2009 with an investment of nearly $2.2 billion in Tata group's telecoms arm Tata Teleservices for a 26.5 per cent stake in the venture. Competition and a low subscriber base forced DoCoMo to rethink its strategy and it decided to get out of India in 2014. Under the terms of the deal, in the event of an exit, DoCoMo was guaranteed the higher of either half its original investment, or its fair value. Tata was unable to find a buyer for the Japanese firm's stake and offered to buy the stake itself for half of DoCoMo's investment. (Reuters)

Delhi High Court approves $1.18 billion settlement of Tata-DoCoMo dispute

India&#39;s economy will overtake that of Germany to become the fourth largest and knock Britain out of the top&nbsp;five by 2022, an IMF study, based on analysis of growth projections, said, reported Bloomberg.

But there are significant headwinds before the economy. The biggest risk is the massive amount of bad debts plaguing the Indian banking industry.

IMF&#39;s deputy managing director Tao Zhang, in an exclusive interview to PTI, said that the health of the Indian banking industry, which is facing massive amounts of bad debt, is a concern for IMF.

However, he expressed confidence in the economic reforms being taken up. He said that the roll out of GST could move up the medium-term economic growth rate to more than eight per cent.

Other significant challenges before the Indian economy are overhauling the infrastructure, creating job opportunities, and raising corporate investments in the country.

(WION)&nbsp;

But there are significant headwinds before the economy. The biggest risk is the massive amount of bad debts plaguing the Indian banking industry

India's economy will overtake that of Germany to become the fourth largest and knock Britain out of the top five by 2022, an IMF study, based on analysis of growth projections, said, reported Bloomberg. But there are significant headwinds before the economy. The biggest risk is the massive amount of bad debts plaguing the Indian banking industry. IMF's deputy managing director Tao Zhang, in an exclusive interview to PTI, said that the health of the Indian banking industry, which is facing massive amounts of bad debt, is a concern for IMF. However, he expressed confidence in the economic reforms being taken up. He said that the roll out of GST could move up the medium-term economic growth rate to more than eight per cent. Other significant challenges before the Indian economy are overhauling the infrastructure, creating job opportunities, and raising corporate investments in the country. (WION)

IMF says Indian economy will be fourth largest by 2022: Bloomberg

The ambitious Goods and Services Tax to be implemented from July 1 would help raise India&#39;s medium-term growth to above eight per cent, the International Monetary Fund has said adding that the reforms being done is expected to pay off in terms of higher growth in the future.

&quot;The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward,&quot; Tao Zhang, Deputy Managing Director of the International Monetary Fund, told PTI in an exclusive interview.

&quot;We expect that the goods and services tax (GST), which is targeted to be applied starting in July, will help raise India&#39;s medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states,&quot; the IMF official said.

&quot;We are extremely impressed by the work that is being done and that we expect it will pay off in terms of higher growth in the future,&quot; he said in response to a question on the reforms being undertaken by the Indian Government.

Observing that India is the &quot;fastest growing emerging market economy&quot; in a region that remains the strongest-growing in the world, Zhang said the IMF believes that India is going to continue to grow at a fast pace, with a projected 6.8 per cent rate for Financial Year 2016/17 and 7.2 per cent in 2017/18.

Lower global oil prices have boosted economic activity, and helped lower inflation.

In addition, fiscal and monetary policies have helped foster economic stability, he said.

&quot;The currency exchange initiative led to a slowdown in economic activity. However, there are initial signs of recovery as the currency exchange has been progressing well,&quot; said Zhang, who assumed the role of Deputy Managing Director at the IMF on August 22, 2016.

Zhang, who worked at the World Bank from 1995 to 1997 and at the Asian Development Bank from 1997 to 2004, said a key concern for the IMF in India is the health of the banking system, &quot;which is still dealing with a large amount of bad loans&quot;, as well as &quot;heightened corporate vulnerabilities&quot; in several key sectors of the economy.

&quot;As India persists with its strong reform efforts, labour market reforms should take priority,&quot; he noted.

These would facilitate greater and better quality jobs, raise female labour force participation, and enhance the impact of recent product market reforms, he observed.

&quot;While there has been important progress generally, we see scope to pursue better targeting and greater efficiency of subsidy and social spending programs through greater use of the trio of Aadhaar unique beneficiary identification, direct benefit transfers, and information technology,&quot; Zhao said.

&quot;Finally, more could be done to raise agricultural productivity and enhance market efficiency. This would help increase the supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures,&quot; said the IMF official responding to a question.

(PTI)&nbsp;

'The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward,' Tao Zhang, Deputy Managing Director of the IMF said

The ambitious Goods and Services Tax to be implemented from July 1 would help raise India's medium-term growth to above eight per cent, the International Monetary Fund has said adding that the reforms being done is expected to pay off in terms of higher growth in the future. "The government has made significant progress on important economic reforms that will support strong and sustainable growth going forward," Tao Zhang, Deputy Managing Director of the International Monetary Fund, told PTI in an exclusive interview. "We expect that the goods and services tax (GST), which is targeted to be applied starting in July, will help raise India's medium-term growth to above 8 per cent, as it will enhance production and the movement of goods and services across Indian states," the IMF official said. "We are extremely impressed by the work that is being done and that we expect it will pay off in terms of higher growth in the future," he said in response to a question on the reforms being undertaken by the Indian Government. Observing that India is the "fastest growing emerging market economy" in a region that remains the strongest-growing in the world, Zhang said the IMF believes that India is going to continue to grow at a fast pace, with a projected 6.8 per cent rate for Financial Year 2016/17 and 7.2 per cent in 2017/18. Lower global oil prices have boosted economic activity, and helped lower inflation. In addition, fiscal and monetary policies have helped foster economic stability, he said. "The currency exchange initiative led to a slowdown in economic activity. However, there are initial signs of recovery as the currency exchange has been progressing well," said Zhang, who assumed the role of Deputy Managing Director at the IMF on August 22, 2016. Zhang, who worked at the World Bank from 1995 to 1997 and at the Asian Development Bank from 1997 to 2004, said a key concern for the IMF in India is the health of the banking system, "which is still dealing with a large amount of bad loans", as well as "heightened corporate vulnerabilities" in several key sectors of the economy. "As India persists with its strong reform efforts, labour market reforms should take priority," he noted. These would facilitate greater and better quality jobs, raise female labour force participation, and enhance the impact of recent product market reforms, he observed. "While there has been important progress generally, we see scope to pursue better targeting and greater efficiency of subsidy and social spending programs through greater use of the trio of Aadhaar unique beneficiary identification, direct benefit transfers, and information technology," Zhao said. "Finally, more could be done to raise agricultural productivity and enhance market efficiency. This would help increase the supply of high-value foods, enhance returns to farmers, and dampen food inflation pressures," said the IMF official responding to a question. (PTI)

GST will raise India's economic growth to more than 8%: IMF

Construction of the facility will commence from the last quarter of 2017 and KIA expects to begin production by the second half of 2019. The plant will have a capacity of approximately 3,00,000 cars annually

KIA to set up manufacturing plant in Andhra Pradesh

Microsoft on Thursday reported a strong jump in profits in the just-ended quarter but revenue fell short of expectations in the tech giant&#39;s first earnings report incorporating social network LinkedIn.

Net profit rose 28 per cent to $4.8 billion while revenues edged up eight per cent to $22.1 billion in the quarter ending March 31, Microsoft said.

Shares in Microsoft fell 1.8 per cent in after-hours trade on the results.

The earnings for Microsoft&#39;s fiscal third quarter come as chief executive Satya Nadella seeks to reduce the tech giant&#39;s focus on software, shifting to cloud computing and business services.

&quot;Our results this quarter reflect the trust customers are placing in the Microsoft cloud,&quot; Nadella said in a statement.

&quot;From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft&#39;s cloud platforms to power their digital transformation.&quot;

Microsoft reported revenue gains in cloud and business service operations, which offset a drop in &quot;personal computing,&quot; which includes the Windows operating system that once made up its core business.

Microsoft said revenue from its &quot;Intelligent Cloud&quot; rose 11 per cent from a year earlier to $6.8 billion.

LinkedIn, the professional social network acquired by Microsoft last year for some $26 billion, contributed revenue of $975 million.

Microsoft said its&nbsp;Office commercial products and cloud services revenue increased seven per cent.

Office consumer products and cloud services revenue rose 15 per cent, as the number of Office 365 consumer subscribers increased to 26.2 million.

But revenue from its Surface family of tablet computers slumped 26 per cent from a year ago, suggesting more woes for Microsoft&#39;s hardware efforts.

Search advertising revenue rose eight per cent while gaming from its Xbox operations saw a four per cent rise.

(AFP)

Net profit rose 28 per cent to $4.8 billion while revenues edged up eight per cent to $22.1 billion in the just-ended quarter

Microsoft on Thursday reported a strong jump in profits in the just-ended quarter but revenue fell short of expectations in the tech giant's first earnings report incorporating social network LinkedIn. Net profit rose 28 per cent to $4.8 billion while revenues edged up eight per cent to $22.1 billion in the quarter ending March 31, Microsoft said. Shares in Microsoft fell 1.8 per cent in after-hours trade on the results. The earnings for Microsoft's fiscal third quarter come as chief executive Satya Nadella seeks to reduce the tech giant's focus on software, shifting to cloud computing and business services. "Our results this quarter reflect the trust customers are placing in the Microsoft cloud," Nadella said in a statement. "From large multi-nationals to small and medium businesses to non-profits all over the world, organizations are using Microsoft's cloud platforms to power their digital transformation." Microsoft reported revenue gains in cloud and business service operations, which offset a drop in "personal computing," which includes the Windows operating system that once made up its core business. Microsoft said revenue from its "Intelligent Cloud" rose 11 per cent from a year earlier to $6.8 billion. LinkedIn, the professional social network acquired by Microsoft last year for some $26 billion, contributed revenue of $975 million. Microsoft said its Office commercial products and cloud services revenue increased seven per cent. Office consumer products and cloud services revenue rose 15 per cent, as the number of Office 365 consumer subscribers increased to 26.2 million. But revenue from its Surface family of tablet computers slumped 26 per cent from a year ago, suggesting more woes for Microsoft's hardware efforts. Search advertising revenue rose eight per cent while gaming from its Xbox operations saw a four per cent rise. (AFP)

Microsoft quarterly profits rev up as Nadella pivots to cloud computing