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The rally in regional US bank stocks that followed last month&#39;s election of Donald Trump may not be over, but investors may have to wait for policy to take shape for the massive move to extend further.

The S&amp;P 600 index of small-cap banks has surged more than 20 per cent since Trump&#39;s surprise November 8 victory, while their large-cap peers on the S&amp;P 500 index have jumped over 17 per cent.

Investors booked profits on Friday, with the small-cap index down 0.8 percent and the larger banks dropping 1.1 per cent.

Smaller lenders could potentially add as much as 40 per cent to their fourth-quarter 2017 earnings if Trump&#39;s promises of tax cuts and regulatory changes materialise, according to Sandler O&#39; Neill analyst Brad Milsaps.

But Milsaps has not changed his official estimates to reflect this possibility as he is waiting for confirmation that those policy changes will happen.

Trump is scheduled to take office January 20. His Treasury Secretary nominee, Steven Mnuchin, on Wednesday, criticised the Dodd-Frank banking regulation act saying that it inhibited bank lending, potentially implying a willingness to try to change regulations to help boost that revenue source.

&quot;It remains to be seen how much longer the rally can continue until we see some tangible evidence of changes coming from the administration that relates to regulations or tax rates,&quot; said Milsaps.

Investors are betting that rising long-term interest rates, expected corporate tax cuts, as well as lighter regulation, will help banks under a Trump administration.

Domestic banks have more to gain from policy changes than their multinational counterparts as lighter regulation should make it easier for them to grow more quickly and could allow more mergers, according to investors and analysts.

They could also benefit more from expected tax cuts and they would be insulated from currency fluctuations.

&quot;There&#39;s definitely more opportunity on the regional banking level,&quot; David Lebovitz, global market strategist at JPMorgan Asset Management. &quot;When you go down in market capitalisation you begin to insulate yourself from a lot of these external forces. Dollar strengthening is less of an issue.&quot;

Bank profits depend largely on the spread between long- and short-term rates. The spread between benchmark US&nbsp;10-year Treasury notes and 2-year Treasuries has widened nearly 30 basis points since the US presidential election, touching its highest in a year on Thursday.

Adding to upward pressure on yields, the Federal Reserve is expected to raise overnight US interest rates at its meeting on Dec. 13-14 by 25 basis points, the first hike in nearly a year.

In relation to rising interest rates alone, Keefe, Bruyette &amp; Woods boosted its operating earnings growth estimates for banks with assets of $50 billion or lower to 10 per cent from 6 percent next year, and to 11 per cent from 4 per cent in 2018.

&quot;Earnings revisions, having been negative for many years, are beginning to turn positive, which is a very important step, and they&#39;re turning positive on higher revenues, which is even more important,&quot; said KBW analyst Christopher McGratty. &quot;They don&#39;t look cheap but there&#39;s a justifiable path toward the valuations they&#39;re at.&quot;

The current forward price-to-earnings for the S&amp;P small-cap bank index stands at 18.4, well above the six-year median of 15 and at its highest since April 2011.

McGratty also noted that many analysts will likely update their estimates for 2017 in coming weeks, which would tighten forward P/E multiples.

(Reuters)

The S&P 600 index of small-cap banks has surged more than 20 per cent since Trump's surprise November 8 victory

The rally in regional US bank stocks that followed last month's election of Donald Trump may not be over, but investors may have to wait for policy to take shape for the massive move to extend further. The S&P 600 index of small-cap banks has surged more than 20 per cent since Trump's surprise November 8 victory, while their large-cap peers on the S&P 500 index have jumped over 17 per cent. Investors booked profits on Friday, with the small-cap index down 0.8 percent and the larger banks dropping 1.1 per cent. Smaller lenders could potentially add as much as 40 per cent to their fourth-quarter 2017 earnings if Trump's promises of tax cuts and regulatory changes materialise, according to Sandler O' Neill analyst Brad Milsaps. But Milsaps has not changed his official estimates to reflect this possibility as he is waiting for confirmation that those policy changes will happen. Trump is scheduled to take office January 20. His Treasury Secretary nominee, Steven Mnuchin, on Wednesday, criticised the Dodd-Frank banking regulation act saying that it inhibited bank lending, potentially implying a willingness to try to change regulations to help boost that revenue source. "It remains to be seen how much longer the rally can continue until we see some tangible evidence of changes coming from the administration that relates to regulations or tax rates," said Milsaps. Investors are betting that rising long-term interest rates, expected corporate tax cuts, as well as lighter regulation, will help banks under a Trump administration. Domestic banks have more to gain from policy changes than their multinational counterparts as lighter regulation should make it easier for them to grow more quickly and could allow more mergers, according to investors and analysts. They could also benefit more from expected tax cuts and they would be insulated from currency fluctuations. "There's definitely more opportunity on the regional banking level," David Lebovitz, global market strategist at JPMorgan Asset Management. "When you go down in market capitalisation you begin to insulate yourself from a lot of these external forces. Dollar strengthening is less of an issue." Bank profits depend largely on the spread between long- and short-term rates. The spread between benchmark US 10-year Treasury notes and 2-year Treasuries has widened nearly 30 basis points since the US presidential election, touching its highest in a year on Thursday. Adding to upward pressure on yields, the Federal Reserve is expected to raise overnight US interest rates at its meeting on Dec. 13-14 by 25 basis points, the first hike in nearly a year. In relation to rising interest rates alone, Keefe, Bruyette & Woods boosted its operating earnings growth estimates for banks with assets of $50 billion or lower to 10 per cent from 6 percent next year, and to 11 per cent from 4 per cent in 2018. "Earnings revisions, having been negative for many years, are beginning to turn positive, which is a very important step, and they're turning positive on higher revenues, which is even more important," said KBW analyst Christopher McGratty. "They don't look cheap but there's a justifiable path toward the valuations they're at." The current forward price-to-earnings for the S&P small-cap bank index stands at 18.4, well above the six-year median of 15 and at its highest since April 2011. McGratty also noted that many analysts will likely update their estimates for 2017 in coming weeks, which would tighten forward P/E multiples. (Reuters)

Wall Street Week Ahead: Small banks rally pauses but may not be over yet

Deutsche Bank&nbsp;has agreed to pay $60 million to settle private US&nbsp;antitrust litigation by traders and other investors who accused the German bank of conspiring to manipulate gold prices at their expense.

The preliminary settlement was filed on Friday with the US&nbsp;District Court in Manhattan, and requires a judge&#39;s approval.

Deutsche Bank denied wrongdoing. The bank in October agreed to pay $38 million to settle similar litigation over alleged silver price manipulation.

Amanda Williams, a spokeswoman for the bank, declined to comment. Lawyers for the plaintiffs did not immediately respond to requests for comment.

The case is one of many in the Manhattan court in which investors accused banks of conspiring to rig rates and prices in financial and commodities markets.

Investors sued Deutsche Bank, Barclays Plc, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale in 2014, claiming that they conspired to fix gold prices from 2004 to 2013.

While the investors did not estimate the size of the banks&#39; gold portfolios, they said the gold derivatives market alone reached $650 billion during the class period.

Deutsche Bank had agreed to settle its part of the case in April, but the terms were not disclosed until now.

In an October 3 decision, US&nbsp;District Judge Valerie Caproni in Manhattan said investors could pursue much of their lawsuit against the other four banks.

Deutsche Bank has separately been in talks with US&nbsp;authorities on a potential multibillion-dollar penalty related to mortgage securities.

(Reuters)

Traders and other investors have accused the German bank of conspiring to manipulate gold prices at their expense

Deutsche Bank has agreed to pay $60 million to settle private US antitrust litigation by traders and other investors who accused the German bank of conspiring to manipulate gold prices at their expense. The preliminary settlement was filed on Friday with the US District Court in Manhattan, and requires a judge's approval. Deutsche Bank denied wrongdoing. The bank in October agreed to pay $38 million to settle similar litigation over alleged silver price manipulation. Amanda Williams, a spokeswoman for the bank, declined to comment. Lawyers for the plaintiffs did not immediately respond to requests for comment. The case is one of many in the Manhattan court in which investors accused banks of conspiring to rig rates and prices in financial and commodities markets. Investors sued Deutsche Bank, Barclays Plc, Bank of Nova Scotia, HSBC Holdings Plc and Societe Generale in 2014, claiming that they conspired to fix gold prices from 2004 to 2013. While the investors did not estimate the size of the banks' gold portfolios, they said the gold derivatives market alone reached $650 billion during the class period. Deutsche Bank had agreed to settle its part of the case in April, but the terms were not disclosed until now. In an October 3 decision, US District Judge Valerie Caproni in Manhattan said investors could pursue much of their lawsuit against the other four banks. Deutsche Bank has separately been in talks with US authorities on a potential multibillion-dollar penalty related to mortgage securities. (Reuters)

Deutsche Bank to pay $60 million to settle US gold price-fixing case

Indian finance minister today said that the Goods and Services Tax Council had reached a consensus on most issues pertaining to the new tax bill, including the contentious issue of dual control. &nbsp;

After discussions were held on central GST and integrated GST drafts in a meeting in New Delhi, Jaitley told reporters that next meeting to be held on December 11-12 will focus on completion of the drafts.&nbsp;

&quot;We have received a few suggestions on the critical issue of cross-empowerment and hope that it will lead to a positive result.&quot;

He told that a discussion was also held on the fiscal situation of states, on request from some state finance ministers and demonetisation, although it does not come under the premise of the GST Council.&nbsp;

However, Kerala finance minister Thomas Issac opposed his claims and said that there will no be consensus if the Centre does not change its stand.&nbsp;

The Centre intends to implement GST from April 1 next year.&nbsp;

Due to Constitutional compulsion, the GST has to be rolled out by September 16, 2017, as the existing indirect taxes will come to an end and it would not be possible for either the Centre or states to collect the taxes.

(WION with inputs from agencies)&nbsp;

Jaitley said the council had reached a consensus on the contentious issue of dual control & the drafts will be finalised in next meeting

Indian finance minister today said that the Goods and Services Tax Council had reached a consensus on most issues pertaining to the new tax bill, including the contentious issue of dual control. After discussions were held on central GST and integrated GST drafts in a meeting in New Delhi, Jaitley told reporters that next meeting to be held on December 11-12 will focus on completion of the drafts. "We have received a few suggestions on the critical issue of cross-empowerment and hope that it will lead to a positive result." He told that a discussion was also held on the fiscal situation of states, on request from some state finance ministers and demonetisation, although it does not come under the premise of the GST Council. However, Kerala finance minister Thomas Issac opposed his claims and said that there will no be consensus if the Centre does not change its stand. The Centre intends to implement GST from April 1 next year. Due to Constitutional compulsion, the GST has to be rolled out by September 16, 2017, as the existing indirect taxes will come to an end and it would not be possible for either the Centre or states to collect the taxes. (WION with inputs from agencies)

Indian finance minister on GST: Consensus on most issues after council meet

Oil prices rallied for their best week in at least five years on Friday, steadying above $51 a barrel, following OPEC&#39;s decision to cut crude output to rein in a global glut that has weighed on prices for more than two years.

After the deal was announced on Wednesday, the market focused on the implementation and impact of OPEC&#39;s first output cuts since 2008, to be joined by Russia and possibly other non-OPEC producers.

Crude prices were pressured by data showing oil output in Russia rose in November to a post-Soviet high and Moscow&#39;s plan to use its record November oil production as its baseline when it cuts output.

With cuts being implemented next year only against end-2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, remains a factor next year.

&quot;Global, and especially US, crude oil inventories are currently at extremely high levels after two years of massive oversupply,&quot; Societe Generale analysts said.

&quot;While the OPEC agreement is very significant and will result in some moderate global stock draws next year, it is likely to take more than one year for crude inventory levels to return to more normal levels.&quot;

Front-month Brent crude futures ended the session up at $54.46 a barrel, up 52 cents, 0.96 per cent. The contract rose more than 15 per cent for the week, its biggest gain since early 2009.

US&nbsp;crude&nbsp;settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011, with a rise of 12 per cent.

Oil drew support from a weak dollar, which slipped against a basket of currencies. Still, traders said profit-taking ahead of the weekend limited crude&#39;s price gains.

&quot;The petroleum markets have settled into quieter mixed flows as the waves created by Wednesday&#39;s OPEC announcement gradually dissipate, with some light profit taking emerging in crude oil,&quot; said Tim Evans, energy futures specialist at Citigroup.

&quot;A weaker US&nbsp;dollar is typically supportive for commodity prices and may have helped steady crude oil from the lows in today&#39;s trade.&quot;

Prices rose to session highs after the White House said it expects US&nbsp;President Barack Obama to sign US&nbsp;legislation extending sanctions against Iran for 10 years into law.

Iran is also seen as a wild card in the execution of the OPEC deal.

US&nbsp;President-elect Donald Trump&#39;s transition team is examining proposals for new non-nuclear sanctions on Iran, the Financial Times reported on Friday.

Iran had threatened on Friday to retaliate against the US&nbsp;Senate&#39;s vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year&#39;s deal with six major powers that curbed its nuclear programme.

The sanctions were first adopted in 1996 to punish investments in Iran&#39;s energy industry and deter its pursuit of nuclear weapons.

Meanwhile, US&nbsp;energy companies extended their recovery in oil drilling into a seventh month this week, data from energy services firm Baker Hughes Inc&nbsp;showed on Friday.

(Reuters)

US crude settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011

Oil prices rallied for their best week in at least five years on Friday, steadying above $51 a barrel, following OPEC's decision to cut crude output to rein in a global glut that has weighed on prices for more than two years. After the deal was announced on Wednesday, the market focused on the implementation and impact of OPEC's first output cuts since 2008, to be joined by Russia and possibly other non-OPEC producers. Crude prices were pressured by data showing oil output in Russia rose in November to a post-Soviet high and Moscow's plan to use its record November oil production as its baseline when it cuts output. With cuts being implemented next year only against end-2016 levels, analysts said there was still a possibility that oversupply, which has halved oil prices since 2014, remains a factor next year. "Global, and especially US, crude oil inventories are currently at extremely high levels after two years of massive oversupply," Societe Generale analysts said. "While the OPEC agreement is very significant and will result in some moderate global stock draws next year, it is likely to take more than one year for crude inventory levels to return to more normal levels." Front-month Brent crude futures ended the session up at $54.46 a barrel, up 52 cents, 0.96 per cent. The contract rose more than 15 per cent for the week, its biggest gain since early 2009. US crude settled at $51.68 per barrel, up 62 cents or 1.21 per cent and notched its biggest weekly gain since early 2011, with a rise of 12 per cent. Oil drew support from a weak dollar, which slipped against a basket of currencies. Still, traders said profit-taking ahead of the weekend limited crude's price gains. "The petroleum markets have settled into quieter mixed flows as the waves created by Wednesday's OPEC announcement gradually dissipate, with some light profit taking emerging in crude oil," said Tim Evans, energy futures specialist at Citigroup. "A weaker US dollar is typically supportive for commodity prices and may have helped steady crude oil from the lows in today's trade." Prices rose to session highs after the White House said it expects US President Barack Obama to sign US legislation extending sanctions against Iran for 10 years into law. Iran is also seen as a wild card in the execution of the OPEC deal. US President-elect Donald Trump's transition team is examining proposals for new non-nuclear sanctions on Iran, the Financial Times reported on Friday. Iran had threatened on Friday to retaliate against the US Senate's vote to extend the Iran Sanctions Act (ISA) for 10 years, saying it violated last year's deal with six major powers that curbed its nuclear programme. The sanctions were first adopted in 1996 to punish investments in Iran's energy industry and deter its pursuit of nuclear weapons. Meanwhile, US energy companies extended their recovery in oil drilling into a seventh month this week, data from energy services firm Baker Hughes Inc showed on Friday. (Reuters)

Oil rallies to best week in years after OPEC output deal

Indian finance minister Arun Jaitley today repudiated a call by the state government of India&#39;s West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation.

He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India&#39;s old system of indirect taxation would lapse next September.

&quot;If on September 16, 2017, there&#39;s no GST, then there&#39;s no taxation,&quot; he said. &quot;Our intention is to make sure it gets implemented from April 1, 2017.&quot;

Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December&nbsp;30 with the release of new 500 and 2,000 rupee notes.

Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November&nbsp;8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit &quot;black money&quot;.

Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India&#39;s four banknote printing presses.

Modi set a 50-day deadline that runs to December&nbsp;30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets.

&quot;Obviously, one of the advantages of this exercise is going to be that you won&#39;t have the same level of paper currency which existed,&quot; Jaitley told the Hindustan Times Leadership Summit.

(Reuters)

Jaitley repudiated a call by the Bengal government to delay the GST to avoid inflicting another economic shock

Indian finance minister Arun Jaitley today repudiated a call by the state government of India's West Bengal to delay a planned Goods and Services Tax (GST) to avoid inflicting another economic shock in the wake of demonetisation. He said the plan was still to launch the new tax on April 1. Time was tight because, under a constitutional amendment that enabled the GST, India's old system of indirect taxation would lapse next September. "If on September 16, 2017, there's no GST, then there's no taxation," he said. "Our intention is to make sure it gets implemented from April 1, 2017." Jaitley also said on Friday that a cash crunch following the scrapping of high-value banknotes would ease by December 30 with the release of new 500 and 2,000 rupee notes. Jaitley said, however, that the amount of new banknotes being released would not be the same as that circulating before November 8, when Prime Minister Narendra Modi announced the so-called demonetisation to purge the economy of illicit "black money". Modi, at a stroke, removed from circulation banknotes worth an estimated 17 trillion rupees ($249 billion). Finance ministry sources say they plan to reissue just over half of this - a task that would take months given the capacity of India's four banknote printing presses. Modi set a 50-day deadline that runs to December 30 for people to swap or deposit their old banknotes. He has promised the situation would stabilise by then and urged Indians to adopt cashless payment forms such as debit cards and mobile wallets. "Obviously, one of the advantages of this exercise is going to be that you won't have the same level of paper currency which existed," Jaitley told the Hindustan Times Leadership Summit. (Reuters)

Constitutional compulsion to roll out GST from September 2017: Indian finance minister

Chitra Ramkrishna today announced her plans to quit as the managing director and CEO of India&#39;s National Stock Exchange (NSE) for &quot;personal reasons&quot;.

Sources said that Ramkrishna planned to quit with immediate effect despite requests by the NSE board to stay for some more time. Her tenure was scheduled to end in March 2018, PTI reported.

Ramkrishna&#39;s departure comes ahead of a planned initial public offer, one of the biggest in recent times.

The NSE has recently been involved in a major debate over new regulatory framework for high-frequency trades and co-location facilities.

Ramkrishna, 52, has been with the NSE since its inception in 1992. She was last month named chairperson of the board of World Federation of Exchanges (WFE), a global body of more than 200 market infrastructure providers.

She took over as MD and CEO of NSE on April 1, 2013 for a five-year tenure. She has also served as NSE&#39;s joint managing director earlier.

Ramkrishna was only the third person to head the bourse in its entire history of about two decades. She was also part of the team that drafted the legislative framework for the securities market regulator SEBI in 1987.

NSE is among the top bourses in the world in terms of equity trades and also market capitalisation.

(WION with inputs from PTI)

Sources said Ramkrishna has offered to quit with immediate effect despite requests to stay for a while

Chitra Ramkrishna today announced her plans to quit as the managing director and CEO of India's National Stock Exchange (NSE) for "personal reasons". Sources said that Ramkrishna planned to quit with immediate effect despite requests by the NSE board to stay for some more time. Her tenure was scheduled to end in March 2018, PTI reported. Ramkrishna's departure comes ahead of a planned initial public offer, one of the biggest in recent times. The NSE has recently been involved in a major debate over new regulatory framework for high-frequency trades and co-location facilities. Ramkrishna, 52, has been with the NSE since its inception in 1992. She was last month named chairperson of the board of World Federation of Exchanges (WFE), a global body of more than 200 market infrastructure providers. She took over as MD and CEO of NSE on April 1, 2013 for a five-year tenure. She has also served as NSE's joint managing director earlier. Ramkrishna was only the third person to head the bourse in its entire history of about two decades. She was also part of the team that drafted the legislative framework for the securities market regulator SEBI in 1987. NSE is among the top bourses in the world in terms of equity trades and also market capitalisation. (WION with inputs from PTI)

Chitra Ramkrishna quits as CEO of India's National Stock Exchange

Starbucks chairman Howard Schultz is stepping down as CEO to focus on new high-end coffee shops, handing over to chief operating officer Kevin Johnson, PTI reported.

Schultz, 63, will continue to serve as chairman of the board and will be the executive chairman from April 2017.

In the new role, Schultz will focus on the &quot;next wave of retail innovation&quot;, design and development of Starbucks Reserve Roasteries around the world, expansion of the Starbucks Reserve retail store format and social impact initiatives, the company said.

&quot;I will remain Starbucks executive chairman, focusing full-time on the incredible growth opportunities we have in expanding Roasteries and building out our portfolio of Reserve stores and on Starbucks social impact agenda which will be a significant part of the focus going forward,&quot; PTI reported Schultz as saying in a media conference yesterday.

Schultz is credited with doubling the company&#39;s revenues since he returned for his second stint in 2008, surpassing USD 20 billion for the first time over the past 12 months.

Starbucks now has 25,000 stores in 75 countries, including India.

Schultz&#39;s career spans 33 years in the technology industry - a 16-year career at Microsoft and in 2008, he was appointed to the National Security Telecommunication Advisory Committee of Presidents George Bush and Barack Obama.

Schultz said that the Roastery has &quot;become a learning laboratory for breakthrough innovation and experiential design and a beacon for the next wave of Starbucks global growth and evolution.&quot;

&quot;We share a passion for customer-focused innovation and a commitment to preserving Starbucks heritage. Our complementary backgrounds my entrepreneurial journey building Starbucks and Kevin&#39;s decades spent scaling global businesses will continue to help Starbucks navigate this new period of worldwide growth and innovation,&quot; he said about Johnson.

(WION with inputs from PTI)

Schultz, 63, will continue to serve as chairman of the board and will be the executive chairman from April 2017

Starbucks chairman Howard Schultz is stepping down as CEO to focus on new high-end coffee shops, handing over to chief operating officer Kevin Johnson, PTI reported. Schultz, 63, will continue to serve as chairman of the board and will be the executive chairman from April 2017. In the new role, Schultz will focus on the "next wave of retail innovation", design and development of Starbucks Reserve Roasteries around the world, expansion of the Starbucks Reserve retail store format and social impact initiatives, the company said. "I will remain Starbucks executive chairman, focusing full-time on the incredible growth opportunities we have in expanding Roasteries and building out our portfolio of Reserve stores and on Starbucks social impact agenda which will be a significant part of the focus going forward," PTI reported Schultz as saying in a media conference yesterday. Schultz is credited with doubling the company's revenues since he returned for his second stint in 2008, surpassing USD 20 billion for the first time over the past 12 months. Starbucks now has 25,000 stores in 75 countries, including India. Schultz's career spans 33 years in the technology industry - a 16-year career at Microsoft and in 2008, he was appointed to the National Security Telecommunication Advisory Committee of Presidents George Bush and Barack Obama. Schultz said that the Roastery has "become a learning laboratory for breakthrough innovation and experiential design and a beacon for the next wave of Starbucks global growth and evolution." "We share a passion for customer-focused innovation and a commitment to preserving Starbucks heritage. Our complementary backgrounds my entrepreneurial journey building Starbucks and Kevin's decades spent scaling global businesses will continue to help Starbucks navigate this new period of worldwide growth and innovation," he said about Johnson. (WION with inputs from PTI)

Starbucks' Howard Schultz to step down as CEO

The oil cartel OPEC has agreed to its first production cut&nbsp;in eight years.

Ministers confirmed the cut in oil production has been secured from 33.8 million barrels a day to 32.5 million barrels a day. This has been done to increase&nbsp;prices since they fell more than half since 2014.

There has been a conspicuous oversupply globally and the shale production in the US is booming. There is also a possibility of the US shale producers to increase output and fill in gaps in supply.

Oil prices surged post the announcement&nbsp;and beat trading volume records. Most experts feel the trend would remain modest by historical comparison as other producers will fill the gap unless decided otherwise in the next OPEC meeting.

As soon as the deal was announced, Brent crude saw an uptick of over 8 per cent trading at 50.12 dollars per barrel.

Russia, which is the non-OPEC&nbsp;member, will be reducing oil production by 300,000&nbsp;per barrel per day. Iran has been exempted from this understanding.

All the OPEC&nbsp;member nations, 14 of them to be precise, will meet the non-OPEC&nbsp;producers on December 9th to assess how much each country will produce.

A wire report mentioned that Algeria, Venezuela and Kuwait have agreed to monitor compliance of the OPEC&nbsp;agreement.

Iraq will be reducing oil output by 200,000&nbsp;barrels a day to around 4,350,000&nbsp;barrels per day from January 2017.

According to analysts, Saudi Arabia&#39;s stagnating economy will stand to benefit from cuts and price hikes&nbsp;that follow.

The production cut is estimated to erase close to one&nbsp;per cent of oil output globally.

The pressure for the OPEC&nbsp;came in as globally there was an oversupply for over a decade that brought down the prices.

&nbsp;

Impact on India:

India stands to be negatively impacted on the back of this agreement. India is the fourth largest importer of crude oil as it imports 85 per cent of total oil and 95 per cent of gas from the OPEC&nbsp;nations.

The lower price of oil in the past immensely benefitted the Indian economy and helped patrol inflation. On the back of this deal, the fiscal deficit target and inflation will go through a cascading effect and stand to be impacted.&nbsp;

&nbsp;

Global round up

<ul>
	<li>OPEC TO REDUCE OUTPUT TO A RANGE OF 32.5-33.0 MILLION BARRELS PER DAY</li>
	<li>OPEC ESTIMATES ITS CURRENT OUTPUT AT 33.24 MILLION BARRELS PER DAY.</li>
	<li>MEETING ON DEC 9 TO DECIDE HOW MUCH EACH COUNTRY WILL PRODUCE</li>
	<li>IRAN BEEN EXEMPTED FROM THIS UNDERSTANDING</li>
	<li>POSSIBILITY OF US SHALE PRODUCERS TO INCREASE OUTPUT AND FILL IN GAPS IN SUPPLY.</li>
	<li>SAUDI ARABIA&#39;S STAGNATING ECONOMY TO BENEFIT FROM CUTS AND PRICE HIKE THAT FOLLOW</li>
</ul>

(WION) 
&nbsp;

Ministers confirmed the cut in oil production has been secured from 33.8 million barrels a day to 32.5 million barrels

The oil cartel OPEC has agreed to its first production cut in eight years. Ministers confirmed the cut in oil production has been secured from 33.8 million barrels a day to 32.5 million barrels a day. This has been done to increase prices since they fell more than half since 2014. There has been a conspicuous oversupply globally and the shale production in the US is booming. There is also a possibility of the US shale producers to increase output and fill in gaps in supply. Oil prices surged post the announcement and beat trading volume records. Most experts feel the trend would remain modest by historical comparison as other producers will fill the gap unless decided otherwise in the next OPEC meeting. As soon as the deal was announced, Brent crude saw an uptick of over 8 per cent trading at 50.12 dollars per barrel. Russia, which is the non-OPEC member, will be reducing oil production by 300,000 per barrel per day. Iran has been exempted from this understanding. All the OPEC member nations, 14 of them to be precise, will meet the non-OPEC producers on December 9th to assess how much each country will produce. A wire report mentioned that Algeria, Venezuela and Kuwait have agreed to monitor compliance of the OPEC agreement. Iraq will be reducing oil output by 200,000 barrels a day to around 4,350,000 barrels per day from January 2017. According to analysts, Saudi Arabia's stagnating economy will stand to benefit from cuts and price hikes that follow. The production cut is estimated to erase close to one per cent of oil output globally. The pressure for the OPEC came in as globally there was an oversupply for over a decade that brought down the prices. Impact on India: India stands to be negatively impacted on the back of this agreement. India is the fourth largest importer of crude oil as it imports 85 per cent of total oil and 95 per cent of gas from the OPEC nations. The lower price of oil in the past immensely benefitted the Indian economy and helped patrol inflation. On the back of this deal, the fiscal deficit target and inflation will go through a cascading effect and stand to be impacted. Global round up OPEC TO REDUCE OUTPUT TO A RANGE OF 32.5-33.0 MILLION BARRELS PER DAY OPEC ESTIMATES ITS CURRENT OUTPUT AT 33.24 MILLION BARRELS PER DAY. MEETING ON DEC 9 TO DECIDE HOW MUCH EACH COUNTRY WILL PRODUCE IRAN BEEN EXEMPTED FROM THIS UNDERSTANDING POSSIBILITY OF US SHALE PRODUCERS TO INCREASE OUTPUT AND FILL IN GAPS IN SUPPLY. SAUDI ARABIA'S STAGNATING ECONOMY TO BENEFIT FROM CUTS AND PRICE HIKE THAT FOLLOW (WION)

OPEC countries agree to first production cut in 8 years

An infographic on how the government's demonetisation has moved people towards using non-cash modes of transactions

India moving towards less cash economy

Amendments to the I-T laws do not seek to tax inherited gold and jewellery as also those items that are purchased through disclosed or agriculture income, the government said today.

The Lok Sabha earlier this week passed the Taxation Laws (Second Amendment) Bill, which proposes a steep up to 85 per cent tax and penalty on undisclosed wealth that is discovered by tax authorities during search and seizure.

Dispelling rumours that jewellery would be covered under the amended law, the Central Board of Direct Taxes (CBDT) said the government has not introduced any new provision regarding chargeability of tax on jewellery.

&quot;The jewellery/gold purchased out of disclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions,&quot; the CBDT said.

During search operations, conducted by I-T Department, there would be no seizure of gold jewellery and ornaments to the extent of 500 grams per married women, 250 gm per unmarried women as also 100 gm per male member of the family, it said.

&quot;Further, legitimate holding of jewellery up to any extent is fully protected,&quot; it added.

The Bill, which is currently under consideration of the Rajya Sabha, will amend Section 115BBE of the Income Tax Act to provide for a steep 60 per cent tax and a 25 per cent surcharge on it (total 75 per cent) for black money holders.

Another section inserted provides for an additional 10 per cent penalty on being established that the undeclared wealth is unaccounted or black money, taking the total incidence of levies to 85 per cent.

CBDT said: &quot;Tax rate under section 115BBE is proposed to be increased only for unexplained income as there were reports that the tax evaders are trying to include their undisclosed income in the return of income as business income or income from other sources.

&quot;The provisions of section 115BBE apply mainly in those cases where assets or cash etc. Are sought to be declared as &#39;unexplained cash or asset&#39; or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such.&quot;

The Bill also proposes to raise penalty under I-T Act for search and seizure cases by 3-fold to 30 per cent, a move aimed at deterring black money holders, from 10 or 20 per cent currently.

Once the amendments are approved by Parliament, there would be a penalty of 30 per cent of unaccounted income, if admitted and taxes are paid. This would take the total incidence of tax and penalty to 60 per cent.

While proposing to amend Section 271AAB, the government has decided to retain the provision of levying penalty of 60 per cent of income in &quot;any other cases&quot;. That would raise the incidence of tax and penalty to 90 per cent.

During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore. Total assets seized were Rs 712.68 crore.

Also 545 searches conducted in 2014-15 have led to admission of undisclosed income worth Rs 10,288 crore. Total assets seized amounted to Rs 761.70 crore.

Besides, 569 searches in 2013-14 saw admission of undisclosed income of Rs 10,791.63 crore and asset seizure of Rs 807.84 crore.

This took the total undisclosed income which was admitted during searches to Rs 32,146 crore.

Search and seizure operations are conducted by the tax department when the Assessing Officer believes that the assessee is unlikely to produce books of accounts or likely to suppress books of account and other documents which may be useful and relevant to an income tax proceedings.

(PTI)

Central Board of Direct Taxes (CBDT) said the government has not introduced any new provision regarding chargeability of tax on jewellery

Amendments to the I-T laws do not seek to tax inherited gold and jewellery as also those items that are purchased through disclosed or agriculture income, the government said today. The Lok Sabha earlier this week passed the Taxation Laws (Second Amendment) Bill, which proposes a steep up to 85 per cent tax and penalty on undisclosed wealth that is discovered by tax authorities during search and seizure. Dispelling rumours that jewellery would be covered under the amended law, the Central Board of Direct Taxes (CBDT) said the government has not introduced any new provision regarding chargeability of tax on jewellery. "The jewellery/gold purchased out of disclosed income or out of exempted income like agricultural income or out of reasonable household savings or legally inherited which has been acquired out of explained sources is neither chargeable to tax under the existing provisions nor under the proposed amended provisions," the CBDT said. During search operations, conducted by I-T Department, there would be no seizure of gold jewellery and ornaments to the extent of 500 grams per married women, 250 gm per unmarried women as also 100 gm per male member of the family, it said. "Further, legitimate holding of jewellery up to any extent is fully protected," it added. The Bill, which is currently under consideration of the Rajya Sabha, will amend Section 115BBE of the Income Tax Act to provide for a steep 60 per cent tax and a 25 per cent surcharge on it (total 75 per cent) for black money holders. Another section inserted provides for an additional 10 per cent penalty on being established that the undeclared wealth is unaccounted or black money, taking the total incidence of levies to 85 per cent. CBDT said: "Tax rate under section 115BBE is proposed to be increased only for unexplained income as there were reports that the tax evaders are trying to include their undisclosed income in the return of income as business income or income from other sources. "The provisions of section 115BBE apply mainly in those cases where assets or cash etc. Are sought to be declared as 'unexplained cash or asset' or where it is hidden as unsubstantiated business income, and the Assessing Officer detects it as such." The Bill also proposes to raise penalty under I-T Act for search and seizure cases by 3-fold to 30 per cent, a move aimed at deterring black money holders, from 10 or 20 per cent currently. Once the amendments are approved by Parliament, there would be a penalty of 30 per cent of unaccounted income, if admitted and taxes are paid. This would take the total incidence of tax and penalty to 60 per cent. While proposing to amend Section 271AAB, the government has decided to retain the provision of levying penalty of 60 per cent of income in "any other cases". That would raise the incidence of tax and penalty to 90 per cent. During 2015-16, the I-T Department conducted 445 searches which discovered undisclosed income of Rs 11,066 crore. Total assets seized were Rs 712.68 crore. Also 545 searches conducted in 2014-15 have led to admission of undisclosed income worth Rs 10,288 crore. Total assets seized amounted to Rs 761.70 crore. Besides, 569 searches in 2013-14 saw admission of undisclosed income of Rs 10,791.63 crore and asset seizure of Rs 807.84 crore. This took the total undisclosed income which was admitted during searches to Rs 32,146 crore. Search and seizure operations are conducted by the tax department when the Assessing Officer believes that the assessee is unlikely to produce books of accounts or likely to suppress books of account and other documents which may be useful and relevant to an income tax proceedings. (PTI)

No tax on ancestral jewellery, purchase from disclosed income

Reliance Industries said its telecoms unit Jio will extend its free data service to all new and existing customers till March 2017, in a bid to attract more customers to its 4G telecom service amid stiff competition from incumbents.

Reliance Chairman Mukesh Ambani, India&#39;s richest man, said on Thursday (December 01) that through the &quot;Reliance Happy New Offer&quot;, all its new customers from December&nbsp;4 onwards will get free voice and data till March 31, 2017. The free offer was earlier valid till Dec. 31.

&quot;Starting 4th of December, 2016, every new Jio user will get Jio&#39;s data, voice, video and the full of bouquet of Jio applications and content absolutely free till 31st March, 2017,&quot; said Ambani.

He said Jio has already crossed 50 million customers in the three months since launch on September&nbsp;1.

Ambani claimed that the top three telecom companies showed &quot;anti-competitive behaviour&quot; and blocked as many as &quot;900 crore (9 billion)&quot; calls made on the Jio network.

&quot;While customers have shown unprecedented love for Jio services, we have not received the required support from our existing operators. In the last three months, nearly 900 crore (9 billion) voice calls from Jio customers to the networks of our three largest competitors were blocked,&quot; said Ambani.

He said the call drop rate has reduced to 20 percent from 90 percent during the initial days of the launch.

The billionaire tycoon also lauded Prime Minister Narendra Modi&#39;s demonetisation move and said it will pave the way for India to become a digital economy.

&quot;This decision is an important step in his ongoing efforts to change the mindset of the people of India. Digitally enabling transactions will help to create a fair, just, transparent and a strong India and an Indian economy. It will bring unprecedented accountability at every level. I believe that the common people will be the biggest beneficiary of this change,&quot; said Ambani.

Reliance also announced a rollout of Jio Money Merchant Solutions, a mobile payments application, for enabling digital payments for small merchants at their various point of transactions. 
 
(Reuters) 
&nbsp;

Reliance chairman Mukesh Ambani said Jio has already crossed 50 million customers in the three months

Reliance Industries said its telecoms unit Jio will extend its free data service to all new and existing customers till March 2017, in a bid to attract more customers to its 4G telecom service amid stiff competition from incumbents. Reliance Chairman Mukesh Ambani, India's richest man, said on Thursday (December 01) that through the "Reliance Happy New Offer", all its new customers from December 4 onwards will get free voice and data till March 31, 2017. The free offer was earlier valid till Dec. 31. "Starting 4th of December, 2016, every new Jio user will get Jio's data, voice, video and the full of bouquet of Jio applications and content absolutely free till 31st March, 2017," said Ambani. He said Jio has already crossed 50 million customers in the three months since launch on September 1. Ambani claimed that the top three telecom companies showed "anti-competitive behaviour" and blocked as many as "900 crore (9 billion)" calls made on the Jio network. "While customers have shown unprecedented love for Jio services, we have not received the required support from our existing operators. In the last three months, nearly 900 crore (9 billion) voice calls from Jio customers to the networks of our three largest competitors were blocked," said Ambani. He said the call drop rate has reduced to 20 percent from 90 percent during the initial days of the launch. The billionaire tycoon also lauded Prime Minister Narendra Modi's demonetisation move and said it will pave the way for India to become a digital economy. "This decision is an important step in his ongoing efforts to change the mindset of the people of India. Digitally enabling transactions will help to create a fair, just, transparent and a strong India and an Indian economy. It will bring unprecedented accountability at every level. I believe that the common people will be the biggest beneficiary of this change," said Ambani. Reliance also announced a rollout of Jio Money Merchant Solutions, a mobile payments application, for enabling digital payments for small merchants at their various point of transactions. (Reuters)

Reliance Jio extends free data offer to March 2017, Ambani accuses rivals of blocking calls

The demonetisation move announced in India on November 8 may have long-term benefits, but in the short term it is costing the Indian economy billions of dollars.

According to the data released by the Centre for Monitoring Indian Economy (CMIE), the cost of people standing in a queue to change old currency notes with new ones or to deposit old currency notes into banks or to get new currency notes for use is $2.2 billion (INR 150 billion).This cost includes the expenditure on photocopying of identity proofs required for the transactions. It does not include any other incidental cost such as travel, etc.

India&#39;s black economy has been as large as 23% of India&#39;s GDP, which is about $2.384 trillion.

Corruption in India has been rampant and India was ranked 76th in Transparency International&#39;s corruption index last year. This move at demonetisation aims to clean out the black economy and curtail corruption.

<div class="ui-state-default" contenteditable="false"><img alt="" draggable="false" src="http://s.wionews.com/photos/demonetisation-infographic--20161129104921.jpg" />
<div class="media-description">
An infographic that explains the cost of queues to exchange currency. (WION)
</div>
<a class="close-mark close-div" href="javascript:void(0)" id="jqclosemark">&times;</a></div>

&nbsp;

Queues outside banks mean that an estimated 458 million work days are lost during the 50-day period for exchanging currency, depositing cash

The demonetisation move announced in India on November 8 may have long-term benefits, but in the short term it is costing the Indian economy billions of dollars. According to the data released by the Centre for Monitoring Indian Economy (CMIE), the cost of people standing in a queue to change old currency notes with new ones or to deposit old currency notes into banks or to get new currency notes for use is $2.2 billion (INR 150 billion).This cost includes the expenditure on photocopying of identity proofs required for the transactions. It does not include any other incidental cost such as travel, etc. India's black economy has been as large as 23% of India's GDP, which is about $2.384 trillion. Corruption in India has been rampant and India was ranked 76th in Transparency International's corruption index last year. This move at demonetisation aims to clean out the black economy and curtail corruption. An infographic that explains the cost of queues to exchange currency. (WION) ×

Demonetisation: Economic cost of cleaning black money explained

The OPEC oil cartel defied expectations Wednesday and nailed down its first joint output cut since 2008 after tough talks in Vienna, sending oil prices soaring.

At 1622 GMT Brent North Sea crude for January delivery was up $3.77 at $50.15, the first time it has risen above $50 in a month. West Texas Intermediate was up $3.98 at $49.21.

The accord announced by the Organization of the Petroleum Exporting Countries is aimed at reducing a global supply glut that has kept prices painfully low. It represents a dramatic reversal from OPEC&#39;s Saudi-led strategy, introduced in 2014, of flooding the market to pressure rivals, in particular US shale oil producers.

The cartel will lower its monthly output by 1.2 million barrels per day (bpd) to 32.5 million bpd from January 1, Qatar&#39;s energy minister and president of the OPEC conference said. &quot;This is a major step forward and we think this is a historic agreement, which will definitely help rebalance the market and reduce the stock overhang,&quot; Mohammed Bin Saleh Al-Sada told a news conference in Vienna.

He also said that the deal will help lift global inflation accelerate to a &quot;more healthy rate,&quot; including in the United States. It finalises a preliminary deal struck in September in Algeria when OPEC agreed to cut production but left the details to clear up later.

Negotiations got bogged down in a game of poker between OPEC&#39;s three biggest producers, Saudi Arabia, Iraq and Iran, on who would do the heavy lifting.

Iraq had said it did not want to pump less crude because it was short of money to fight Islamic State group extremists. It also disputed how much it actually produced.

Iran has only been able to freely to export oil since last year&#39;s nuclear deal came into force in January, and wants to return to pre-sanctions output levels. The dispute was complicated by the fierce rivalry between Shiite Iran and Sunni Saudi Arabia, backing different sides in the wars in Yemen and Syria.

Fawad Razaqzada, a market analyst at Forex.com, said before OPEC&#39;s announcement that Iran was &quot;playing a clever game&quot; against its arch rival. But Saudi Arabia also played hard-ball, saying it was prepared to leave the Austrian capital without a deal.

Energy Minister Khaled al-Falih had said recovering demand will boost prices next year -- cut or no cut. &nbsp;Even though expectations were therefore low, failure to get a deal would have sent oil prices tumbling, perhaps as low as $30 per barrel, analysts had said.

Also it would have reignited debate about the very purpose of OPEC, 56 years after its creation.

Budget pain

Focus will now turn to OPEC&#39;s efforts to get non-members, in particular Russia, to reduce their output by a hoped-for 600,000 bpd. &nbsp;Russia has said it is ready only to freeze production but Sada said Wednesday that Russia has committed to reducing its output by 300,000 bpd.&nbsp;

While consumers might not welcome the more expensive fuel that a deal would bring, OPEC members&#39; public finances have been shot to bits by two years of rock-bottom prices. It has exacerbated an already desperate situation in Venezuela, where Human Rights Watch says shortages of basics are so bad that there is a &quot;profound humanitarian crisis&quot;.

Even fabulously wealthy Saudi Arabia has slashed salaries and spending and is on course for a budget deficit of $87 billion in 2016, and owes foreign firms billions in unpaid bills. The low crude price has also hit investment in oil facilities, raising the prospect of oil shortages further down the line.

However, further downwards pressure on oil prices could come from the United States and president-elect Donald Trump, whose policies could see a renewed rise in US oil production.

Trump has promised to eliminate regulations restricting fracking, support oil and gas pipeline construction and open restricted federal lands and offshore areas for exploration, including Alaska.

(AFP)

The reduction by OPEC will be 1.2 million barrels per day, president of the OPEC conference, Mohammed Bin Saleh Al-Sada, said

The OPEC oil cartel defied expectations Wednesday and nailed down its first joint output cut since 2008 after tough talks in Vienna, sending oil prices soaring. At 1622 GMT Brent North Sea crude for January delivery was up $3.77 at $50.15, the first time it has risen above $50 in a month. West Texas Intermediate was up $3.98 at $49.21. The accord announced by the Organization of the Petroleum Exporting Countries is aimed at reducing a global supply glut that has kept prices painfully low. It represents a dramatic reversal from OPEC's Saudi-led strategy, introduced in 2014, of flooding the market to pressure rivals, in particular US shale oil producers. The cartel will lower its monthly output by 1.2 million barrels per day (bpd) to 32.5 million bpd from January 1, Qatar's energy minister and president of the OPEC conference said. "This is a major step forward and we think this is a historic agreement, which will definitely help rebalance the market and reduce the stock overhang," Mohammed Bin Saleh Al-Sada told a news conference in Vienna. He also said that the deal will help lift global inflation accelerate to a "more healthy rate," including in the United States. It finalises a preliminary deal struck in September in Algeria when OPEC agreed to cut production but left the details to clear up later. Negotiations got bogged down in a game of poker between OPEC's three biggest producers, Saudi Arabia, Iraq and Iran, on who would do the heavy lifting. Iraq had said it did not want to pump less crude because it was short of money to fight Islamic State group extremists. It also disputed how much it actually produced. Iran has only been able to freely to export oil since last year's nuclear deal came into force in January, and wants to return to pre-sanctions output levels. The dispute was complicated by the fierce rivalry between Shiite Iran and Sunni Saudi Arabia, backing different sides in the wars in Yemen and Syria. Fawad Razaqzada, a market analyst at Forex.com, said before OPEC's announcement that Iran was "playing a clever game" against its arch rival. But Saudi Arabia also played hard-ball, saying it was prepared to leave the Austrian capital without a deal. Energy Minister Khaled al-Falih had said recovering demand will boost prices next year -- cut or no cut. Even though expectations were therefore low, failure to get a deal would have sent oil prices tumbling, perhaps as low as $30 per barrel, analysts had said. Also it would have reignited debate about the very purpose of OPEC, 56 years after its creation. Budget pain Focus will now turn to OPEC's efforts to get non-members, in particular Russia, to reduce their output by a hoped-for 600,000 bpd. Russia has said it is ready only to freeze production but Sada said Wednesday that Russia has committed to reducing its output by 300,000 bpd. While consumers might not welcome the more expensive fuel that a deal would bring, OPEC members' public finances have been shot to bits by two years of rock-bottom prices. It has exacerbated an already desperate situation in Venezuela, where Human Rights Watch says shortages of basics are so bad that there is a "profound humanitarian crisis". Even fabulously wealthy Saudi Arabia has slashed salaries and spending and is on course for a budget deficit of $87 billion in 2016, and owes foreign firms billions in unpaid bills. The low crude price has also hit investment in oil facilities, raising the prospect of oil shortages further down the line. However, further downwards pressure on oil prices could come from the United States and president-elect Donald Trump, whose policies could see a renewed rise in US oil production. Trump has promised to eliminate regulations restricting fracking, support oil and gas pipeline construction and open restricted federal lands and offshore areas for exploration, including Alaska. (AFP)

OPEC reaches deal to cut oil production

India remained the fastest growing major economy with its GDP accelerating to 7.3 per cent in the September quarter, pushed mainly by farm output, although the momentum may be hit in the coming months by the impact of demonetisation.

The Gross Domestic Product (GDP) or national income which rose from 7.1 per cent in the previous quarter is, however, lower than 7.6 per cent recorded in the same period last year.

India overtook China in economic growth rate in 2015, and continues to be the world&#39;s fastest growing large economy.

Meanwhile, monthly macro-economic data on performance of eight infrastructure sectors showed six-month high growth of 6.6 per cent in October.

According to the data released today by the Central Statistics Office (CSO), the Gross Value Added (GVA), which is estimated at the basic price, growth decelerated to 7.1 per cent as compared 7.3 per cent both in the previous as well as the year ago period.

The data revealed that over 7 per cent growth was recorded by &#39;public administration, defence and other services&#39;, &#39;financial, insurance, real estate and professional services&#39;, &#39;manufacturing&#39; and &#39;trade, hotels and transport and communication and services related to broadcasting&#39;.

Growth rates in agriculture, forestry and fishing; mining and quarrying; electricity, gas, water supply and other utility services; and construction were at 3.3 per cent, (-)1.5 per cent, 3.5 per cent and 3.5 per cent respectively. This compares with 2 per cent, 5 per cent, 7.5 per cent and 0.8 per cent year ago period.

Manufacturing slowed to 7.1 per cent from 9.2 per cent in the year-ago period. On the impact of demonetisation of old Rs 500/1000 notes on growth prospects, Chief Statistician T C A Anant said statements made by experts on the adverse impact of demonetisation is made without any data.

&quot;People make assumptions and based on that they make statements. Once the data comes in, I will make a statement,&quot; he said at a press conference.

Chief Economic Adviser Arvind Subramanian said: &quot;What we have for first half are actual numbers. It shows good consistent performance. For second half we will have to see, there are a lot of uncertainties. We have to analyse it before we say something&quot;.

What is worrying, however, is the decline in Gross Fixed Capital Formation (GFCF) an indicator of investment.

GFCF growth rates at current and constant prices are estimated at (-)3.2 per cent and (-)5.6 per cent during Q2 of 2016-17 as compared to 7.5 per cent and 9.7 per cent during Q2 of 2015-16.&nbsp;

Talking about challenges, Subramanian said investment was down substantially in the second quarter and that is something that needs to be watched.

Referring to the impact of demonetisation of 500 and 1000 rupee notes by the government earlier this month, CII Director General Chandrajit Banerjee said that it would be a &quot;temporary setback&quot; to growth in the coming quarter.

As per CSO, GDP at constant (2011-12) prices in the second quarter of 2016-17 is estimated at Rs 29.63 lakh crore, as against Rs 27.62 lakh crore in the year-ago period.

The quarterly GVA at basic price at constant (2011-12) prices for July-September is estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore year-on-year.

Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.15 lakh crore for the second quarter as against Rs 4.27 lakh crore year ago.

At constant (2011-2012) prices, the GFCE is estimated at Rs 3.84 lakh crore as against Rs 3.33 lakh crore.

In terms of GDP, the rates of GFCE at current and constant prices during the second quarter are estimated at 14.1 per cent and 13 per cent respectively, as against the corresponding rate of 13.1 per cent and 12.1 per cent in the same period of 2015-16.

Chief Statistician Anant also informed that the &#39;advance estimates&#39; for national accounts data for the current fiscal will be released on January 7, a month in advance.

The data release date is being advanced as government would be presenting the annual budget a month ahead of the usual practice of unveiling it on last working day of February.

The data on eight core infrastructure sectors recorded a growth rate of 6.6 per cent in October on the back of impressive performance by steel and refinery products.

However, growth rate of power generation, fertiliser production and cement output fell considerably on a year-on-year basis. Coal production continued to fall for the third straight month.

The core infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- showed 3.8 per cent in October last year.

Core sector contributes 38 per cent to the total industrial production. 
 
(PTI)

The GDP was, however, lower than 7.6 per cent recorded in the same period last year.

India remained the fastest growing major economy with its GDP accelerating to 7.3 per cent in the September quarter, pushed mainly by farm output, although the momentum may be hit in the coming months by the impact of demonetisation. The Gross Domestic Product (GDP) or national income which rose from 7.1 per cent in the previous quarter is, however, lower than 7.6 per cent recorded in the same period last year. India overtook China in economic growth rate in 2015, and continues to be the world's fastest growing large economy. Meanwhile, monthly macro-economic data on performance of eight infrastructure sectors showed six-month high growth of 6.6 per cent in October. According to the data released today by the Central Statistics Office (CSO), the Gross Value Added (GVA), which is estimated at the basic price, growth decelerated to 7.1 per cent as compared 7.3 per cent both in the previous as well as the year ago period. The data revealed that over 7 per cent growth was recorded by 'public administration, defence and other services', 'financial, insurance, real estate and professional services', 'manufacturing' and 'trade, hotels and transport and communication and services related to broadcasting'. Growth rates in agriculture, forestry and fishing; mining and quarrying; electricity, gas, water supply and other utility services; and construction were at 3.3 per cent, (-)1.5 per cent, 3.5 per cent and 3.5 per cent respectively. This compares with 2 per cent, 5 per cent, 7.5 per cent and 0.8 per cent year ago period. Manufacturing slowed to 7.1 per cent from 9.2 per cent in the year-ago period. On the impact of demonetisation of old Rs 500/1000 notes on growth prospects, Chief Statistician T C A Anant said statements made by experts on the adverse impact of demonetisation is made without any data. "People make assumptions and based on that they make statements. Once the data comes in, I will make a statement," he said at a press conference. Chief Economic Adviser Arvind Subramanian said: "What we have for first half are actual numbers. It shows good consistent performance. For second half we will have to see, there are a lot of uncertainties. We have to analyse it before we say something". What is worrying, however, is the decline in Gross Fixed Capital Formation (GFCF) an indicator of investment. GFCF growth rates at current and constant prices are estimated at (-)3.2 per cent and (-)5.6 per cent during Q2 of 2016-17 as compared to 7.5 per cent and 9.7 per cent during Q2 of 2015-16. Talking about challenges, Subramanian said investment was down substantially in the second quarter and that is something that needs to be watched. Referring to the impact of demonetisation of 500 and 1000 rupee notes by the government earlier this month, CII Director General Chandrajit Banerjee said that it would be a "temporary setback" to growth in the coming quarter. As per CSO, GDP at constant (2011-12) prices in the second quarter of 2016-17 is estimated at Rs 29.63 lakh crore, as against Rs 27.62 lakh crore in the year-ago period. The quarterly GVA at basic price at constant (2011-12) prices for July-September is estimated at Rs 27.33 lakh crore, as against Rs 25.52 lakh crore year-on-year. Government Final Consumption Expenditure (GFCE) at current prices is estimated at Rs 5.15 lakh crore for the second quarter as against Rs 4.27 lakh crore year ago. At constant (2011-2012) prices, the GFCE is estimated at Rs 3.84 lakh crore as against Rs 3.33 lakh crore. In terms of GDP, the rates of GFCE at current and constant prices during the second quarter are estimated at 14.1 per cent and 13 per cent respectively, as against the corresponding rate of 13.1 per cent and 12.1 per cent in the same period of 2015-16. Chief Statistician Anant also informed that the 'advance estimates' for national accounts data for the current fiscal will be released on January 7, a month in advance. The data release date is being advanced as government would be presenting the annual budget a month ahead of the usual practice of unveiling it on last working day of February. The data on eight core infrastructure sectors recorded a growth rate of 6.6 per cent in October on the back of impressive performance by steel and refinery products. However, growth rate of power generation, fertiliser production and cement output fell considerably on a year-on-year basis. Coal production continued to fall for the third straight month. The core infrastructure sectors -- coal, crude oil, natural gas, refinery products, fertilisers, steel, cement and electricity -- showed 3.8 per cent in October last year. Core sector contributes 38 per cent to the total industrial production. (PTI)

India's GDP increases to 7.3% in second quarter

European air travel giant Lufthansa has been battling its own pilots over pay and conditions for more than two years.

Tuesday saw a renewed walkout of pilots, bringing the number of passengers affected by strikes over the past week to more than half a million. 
&nbsp; 
What do the pilots want?

Lufthansa&#39;s 5,400 pilots have been called out on strike some 15 times since spring 2014 by union Vereinigung Cockpit.

The dispute was sparked by disagreements over manager&#39;s plans to change costly early retirement provisions for the pilots as they looked for savings in the face of stiff competition from low-cost rivals like Ryanair and Easyjet as well as higher-end competitors from the Gulf.

Cockpit is also concerned about the board&#39;s plans to reform pensions and hire more pilots on lower pay as Lufthansa builds its own low-cost subsidiary Eurowings.

The most recent series of strikes launched last Wednesday is the latest skirmish in the battle over salaries.

Cockpit says pilots have had no salary increase over the past five years, even as Lufthansa has been making billions in profits.

The union wants a pay rise of 3.66 percent per year. But manager&#39;s position remains far removed from Cockpit`s, with the last offer from the board a bonus equivalent to almost two months salary plus a 4.4-percent pay increase spread over two years -- roundly rejected by the pilots.

Lufthansa says that its pilots are among the best-paid in the sector, with co-pilots at the start of their career earning 6,500 euros ($6,890) gross per month, while a late-career captain earns more than 22,000 euros.

Why is the conflict dragging on?&nbsp;

Pilots are not the only group to have hit Lufthansa with work stoppages in recent years.

November 2015 saw the group face its longest-ever strike as cabin crew staged a seven-day walkout at the urging of their own union -- forcing the cancellation of more than 4,600 flights.

Lufthansa has managed to strike deals in several labour disputes, notably with cabin crew and ground crew on its flagship airline.

But other battles are still to be fought -- as a walkout by some cabin crew at Eurowings showed just last week.

An end to the trial of strength with Cockpit appears distant for now.

&quot;The damage is already so great that it`s increasingly difficult for the two sides to reach a compromise without losing face,&quot; said Guido Hoymann, an air travel sector analyst at Metzler bank.

&quot;They should bring in a mediator, the conflict could run on for a long time yet,&quot; he went on.

Cockpit rebuffed Lufthansa`s latest offer of a mediation process, while the group has failed in its attempts to prevent walkouts with legal action.

What does this mean for Lufthansa`s business?&nbsp;

Repeated strikes at Lufthansa have caused &quot;long-term&quot; damage to the group`s reputation, analyst Hoymann said.

&quot;Lufthansa`s reliability has been called into question,&quot; he said, adding that the group could lose customers -- especially from its sizeable business segment.

In purely financial terms, the impact has so far been smaller.

One strike day costs the group between 10 and 15 million euros, Lufthansa says.

In 2015, the group lost around 100 million euros to strikes -- a large figure but one that remained dwarfed by its record profit of 1.7 billion euros.

(IANS) 
&nbsp;

Lufthansa has been battling its own pilots over pay and conditions for more than two years.

European air travel giant Lufthansa has been battling its own pilots over pay and conditions for more than two years. Tuesday saw a renewed walkout of pilots, bringing the number of passengers affected by strikes over the past week to more than half a million. What do the pilots want? Lufthansa's 5,400 pilots have been called out on strike some 15 times since spring 2014 by union Vereinigung Cockpit. The dispute was sparked by disagreements over manager's plans to change costly early retirement provisions for the pilots as they looked for savings in the face of stiff competition from low-cost rivals like Ryanair and Easyjet as well as higher-end competitors from the Gulf. Cockpit is also concerned about the board's plans to reform pensions and hire more pilots on lower pay as Lufthansa builds its own low-cost subsidiary Eurowings. The most recent series of strikes launched last Wednesday is the latest skirmish in the battle over salaries. Cockpit says pilots have had no salary increase over the past five years, even as Lufthansa has been making billions in profits. The union wants a pay rise of 3.66 percent per year. But manager's position remains far removed from Cockpit`s, with the last offer from the board a bonus equivalent to almost two months salary plus a 4.4-percent pay increase spread over two years -- roundly rejected by the pilots. Lufthansa says that its pilots are among the best-paid in the sector, with co-pilots at the start of their career earning 6,500 euros ($6,890) gross per month, while a late-career captain earns more than 22,000 euros. Why is the conflict dragging on? Pilots are not the only group to have hit Lufthansa with work stoppages in recent years. November 2015 saw the group face its longest-ever strike as cabin crew staged a seven-day walkout at the urging of their own union -- forcing the cancellation of more than 4,600 flights. Lufthansa has managed to strike deals in several labour disputes, notably with cabin crew and ground crew on its flagship airline. But other battles are still to be fought -- as a walkout by some cabin crew at Eurowings showed just last week. An end to the trial of strength with Cockpit appears distant for now. "The damage is already so great that it`s increasingly difficult for the two sides to reach a compromise without losing face," said Guido Hoymann, an air travel sector analyst at Metzler bank. "They should bring in a mediator, the conflict could run on for a long time yet," he went on. Cockpit rebuffed Lufthansa`s latest offer of a mediation process, while the group has failed in its attempts to prevent walkouts with legal action. What does this mean for Lufthansa`s business? Repeated strikes at Lufthansa have caused "long-term" damage to the group`s reputation, analyst Hoymann said. "Lufthansa`s reliability has been called into question," he said, adding that the group could lose customers -- especially from its sizeable business segment. In purely financial terms, the impact has so far been smaller. One strike day costs the group between 10 and 15 million euros, Lufthansa says. In 2015, the group lost around 100 million euros to strikes -- a large figure but one that remained dwarfed by its record profit of 1.7 billion euros. (IANS)

Some 1,700 flights cancelled as Lufthansa pilots strike

The Reserve Bank of India (RBI) on Monday late night said that the general public has withdrawn Rs 2.16 lakh crore from their accounts since beginning of demonetisation on November 9, 2016.

RBI further said that deposits in bank accounts during this period, amounted to Rs 8.11 lakh crore. Interestingly, Government had told the Supreme Court earlier this month that it expects around Rs 10-11 lakh crore to be deposited in banks till December 30, 2016 &ndash; the last day of depositing the now illegal tender of Rs 500 and Rs 1000 notes.

However, the long queues and frequent running out of cash has ensured that nearly 50% of this total currency (Rs 14 lakh crore) has already been deposited in banks in two weeks.

Moreover, there has been a sudden surge in deposits with Jan Dhan Accounts.

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<h5>As on November 9, the Government claimed that the 25.5 crore accounts opened under Jan-Dhan Yojana (PMJDY) garnered Rs 45,636.61 crore. The number of accounts now stand at 25.68 crore while deposits have risen to Rs 72,834.72 crore.</h5>
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&nbsp;

PM Modi and Finance Minister Arun Jaitley have been pushing citizens towards a more &#39;less-cash&#39; economy. The Government, on Monday, removed excise duty on &#39;point of sale&#39; machines in order to expedite use of digital currency than hard cash.&nbsp;

However, with over Rs 2 lakh crore withdrawn in two weeks from the Rs 8.11 lakh deposited, it is amply clear that Indians are still not ready to go completely cash-less.&nbsp;

On the evening of November 8, Prime Minister Narendra Modi in a televised address said that nearly 86% of Rs 16 lakh crore that oiled the Indian economy by way of Rs 500 and Rs 1000 notes were illegal tender from midnight.

He said that citizens have&nbsp;50 days to deposit this old currency in banks, exchange it with new or withdraw through ATMs, etc.

The RBI on Monday released data that showed nearly 50% of all demonetised currency in Rs 500 and Rs 1000 notes has been deposited with banks

The Reserve Bank of India (RBI) on Monday late night said that the general public has withdrawn Rs 2.16 lakh crore from their accounts since beginning of demonetisation on November 9, 2016. RBI further said that deposits in bank accounts during this period, amounted to Rs 8.11 lakh crore. Interestingly, Government had told the Supreme Court earlier this month that it expects around Rs 10-11 lakh crore to be deposited in banks till December 30, 2016 – the last day of depositing the now illegal tender of Rs 500 and Rs 1000 notes. However, the long queues and frequent running out of cash has ensured that nearly 50% of this total currency (Rs 14 lakh crore) has already been deposited in banks in two weeks. Moreover, there has been a sudden surge in deposits with Jan Dhan Accounts. As on November 9, the Government claimed that the 25.5 crore accounts opened under Jan-Dhan Yojana (PMJDY) garnered Rs 45,636.61 crore. The number of accounts now stand at 25.68 crore while deposits have risen to Rs 72,834.72 crore. × PM Modi and Finance Minister Arun Jaitley have been pushing citizens towards a more 'less-cash' economy. The Government, on Monday, removed excise duty on 'point of sale' machines in order to expedite use of digital currency than hard cash. However, with over Rs 2 lakh crore withdrawn in two weeks from the Rs 8.11 lakh deposited, it is amply clear that Indians are still not ready to go completely cash-less. On the evening of November 8, Prime Minister Narendra Modi in a televised address said that nearly 86% of Rs 16 lakh crore that oiled the Indian economy by way of Rs 500 and Rs 1000 notes were illegal tender from midnight. He said that citizens have 50 days to deposit this old currency in banks, exchange it with new or withdraw through ATMs, etc.

Demonetisation: Indians withdrew over 2 lakh crore since November 9

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive.&nbsp;

&nbsp;

Under the scheme namely,&nbsp;&lsquo;Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana,&nbsp;2016&rsquo; (PMGKY) proposed in the Bill, it said, &quot;Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (&lsquo;the Bill&rsquo;) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision.&quot;

The Government said, &quot;In the wake of declaring specified bank notes &ldquo;as not legal tender&rdquo;, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy.&quot;

<table border="1" cellpadding="1" cellspacing="1" summary="Changes to Income Tax Act">
	<caption>Overview of Amendments Proposed</caption>
	<tbody>
		<tr>
			<td>PARTICULARS</td>
			<td>EXISTING PROVISIONS</td>
			<td>PROPOSED PROVISIONS</td>
		</tr>
		<tr>
			<td>General provision for penalty&nbsp;</td>
			<td>
			PENALTY (Section 270A)&nbsp;

			Under-reporting - @50% of tax&nbsp;

			Misreporting - @200% of tax

			(Under-reporting/ Misreporting income is normally difference between returned income and assessed income)
			</td>
			<td>No changes proposed</td>
		</tr>
		<tr>
			<td>Provisions for taxation &amp; penalty of unexplained credit, investment, cash and other assets</td>
			<td>
			Penalty (271AAB)

			(i) 10% of income, if admitted, returned and taxes are paid

			(ii) 20% of income, if not admitted but returned&nbsp;and taxes are paid

			(iii) 60% of income in any other case
			</td>
			<td>
			Penalty (271AAB)

			(i) 30% of income, if&nbsp;admitted, returned and taxes are paid

			(ii) 60% of income in any other case
			</td>
		</tr>
		<tr>
			<td>Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016&rsquo; (PMGKY)</td>
			<td>New Taxation&nbsp;and Investment&nbsp;Regime</td>
			<td>
			Undisclosed income in the form of cash &amp; bank deposit can be declared:

			(A)&nbsp;Tax, Surcharge, Penalty payable

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@30% of income declared

			&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;Surcharge &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@33% of tax

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Penalty&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@10% of income&nbsp;declared

			&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;Total&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;@50% of income (approx.)

			<a id="m_5906746394611854875__GoBack" name="m_5906746394611854875__GoBack"></a>(B) &nbsp;Deposit

			&nbsp;&nbsp;&nbsp;&nbsp; 25% of declared income to be deposited in interest &nbsp;&nbsp;&nbsp;

			&nbsp;&nbsp;&nbsp;&nbsp; free Deposit Scheme for four years.&nbsp;&nbsp;
			</td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>
	</tbody>
</table>

&nbsp;

The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called &lsquo;Pradhan Mantri Garib Kalyan Cess&rsquo; @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the &lsquo;Pradhan Mantri Garib Kalyan Deposit Scheme, 2016&rsquo;, it said.&nbsp;

&quot;This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality,&quot; it concluded. &nbsp;

The Taxation Law is expected to tax defaulting assessees at a higher rate and stringent penalty provision

The Government on Monday introduced a new Bill in Lok Sabha to tax newly deposited undeclared income as part of demonetisation drive. Under the scheme namely, ‘Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) proposed in the Bill, it said, "Concerns have been raised that some of the existing provisions of the Income-tax Act, 1961 (the Act) can possibly be used for concealing black money. The Taxation Laws (Second Amendment) Bill, 2016 (‘the Bill’) has been introduced in the Parliament to amend the provisions of the Act to ensure that defaulting assessees are subjected to tax at a higher rate and stringent penalty provision." The Government said, "In the wake of declaring specified bank notes “as not legal tender”, there have been suggestions from experts that instead of allowing people to find illegal ways of converting their black money into black again, the Government should give them an opportunity to pay taxes with heavy penalty and allow them to come clean so that not only the Government gets additional revenue for undertaking activities for the welfare of the poor but also the remaining part of the declared income legitimately comes into the formal economy." Overview of Amendments Proposed PARTICULARS EXISTING PROVISIONS PROPOSED PROVISIONS General provision for penalty PENALTY (Section 270A) Under-reporting - @50% of tax Misreporting - @200% of tax (Under-reporting/ Misreporting income is normally difference between returned income and assessed income) No changes proposed Provisions for taxation & penalty of unexplained credit, investment, cash and other assets Penalty (271AAB) (i) 10% of income, if admitted, returned and taxes are paid (ii) 20% of income, if not admitted but returned and taxes are paid (iii) 60% of income in any other case Penalty (271AAB) (i) 30% of income, if admitted, returned and taxes are paid (ii) 60% of income in any other case Taxation and Investment Regime for Pradhan Mantri Garib Kalyan Yojana, 2016’ (PMGKY) New Taxation and Investment Regime Undisclosed income in the form of cash & bank deposit can be declared: (A) Tax, Surcharge, Penalty payable Tax @30% of income declared Surcharge @33% of tax Penalty @10% of income declared Total @50% of income (approx.) (B) Deposit 25% of declared income to be deposited in interest free Deposit Scheme for four years. The declarant under this regime shall be required to pay tax @ 30% of the undisclosed income, and penalty @10% of the undisclosed income. Further, a surcharge to be called ‘Pradhan Mantri Garib Kalyan Cess’ @33% of tax is also proposed to be levied. In addition to tax, surcharge and penalty (totaling to approximately 50%), the declarant shall have to deposit 25% of undisclosed income in a Deposit Scheme to be notified by the RBI under the ‘Pradhan Mantri Garib Kalyan Deposit Scheme, 2016’, it said. "This amount is proposed to be utilised for the schemes of irrigation, housing, toilets, infrastructure, primary education, primary health, livelihood, etc., so that there is justice and equality," it concluded.

Income Tax Act: This is how the new amnesty scheme looks like

Samsung Electronics Co. on Tuesday said it was considering splitting the company into two, a move seen as necessary for heir-apparent Lee Jae-Yong to take over the firm from his father.

Samsung has also come under pressure from foreign investors, including US hedgefund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders.

The move comes as the tech giant struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries.

Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit and would take at least six months to study the option.

Analysts said a split would give Samsung Electronics&#39; vice chairman Lee Jae-Yong a tighter grip on the company through a holding firm.

Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross shareholdings with sister companies.

They also said the company should increase dividends for shareholders.

Samsung said it would increase per-share dividends by 36 per cent this year to 28,500 won.

(AFP)

Samsung is planning to break the company into a holding firm and a producing and operating unit and will take six months to study the option

Samsung Electronics Co. on Tuesday said it was considering splitting the company into two, a move seen as necessary for heir-apparent Lee Jae-Yong to take over the firm from his father. Samsung has also come under pressure from foreign investors, including US hedgefund Elliott Management, to improve its corporate governance through the establishment of a holding company and to increase dividends for shareholders. The move comes as the tech giant struggles to contain the fallout from a global recall of its Galaxy Note 7 smartphone prompted by exploding batteries. Samsung said in a statement it would consider breaking the company into a holding firm and a producing and operating unit and would take at least six months to study the option. Analysts said a split would give Samsung Electronics' vice chairman Lee Jae-Yong a tighter grip on the company through a holding firm. Elliott and other investors have urged Samsung to set up a holding company as a way to address its complicated layers of cross shareholdings with sister companies. They also said the company should increase dividends for shareholders. Samsung said it would increase per-share dividends by 36 per cent this year to 28,500 won. (AFP)

Samsung considers splitting into two

The Indian government is looking to enshrine new laws to crack down on people who have deposited undisclosed income post the announcement of demonetisation.

India&#39;s Finance Minister Arun Jaitley introduced a Bill on Monday to amend the Income Tax Act -- it seeks to impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified.

Further, people with unaccounted wealth who are caught by taxmen in raids will have to pay a 70 per cent tax and a 15 per cent penalty. A 30 per cent penalty will be imposed if the source of the undisclosed cash cannot be explained.&nbsp;

The amended Bill also proposes that declarants would have to deposit 25 per cent of the unaccounted cash deposited into a scheme, which will be used to upgrade the country&#39;s infrastructure such as irrigation, primary education, primary health and housing projects.

The federal government is pulling out all stops to plug loopholes in the system as critics of the demonetisation plan say the purpose of the entire move will be defeated if people can legalise unaccounted cash through proxy bank accounts.

In recent days, there has been an unprecedented surge in cash deposits in zero-balance bank accounts. Indian media reports suggest that roughly Rs 21,000 crore (roughly $ 3 billion) has been deposited ever since the Indian government made the sudden announcement to annul mid to high-value bank notes.

The Bill is likely to become law in the next few weeks if the lower house of the Parliament functions smoothly and the opposition decides to end their protests.

The Indian government had announced the scrapping of Rs 500 and Rs 1,000 notes on November 8.

(WION)

&nbsp;

If the Bill is passed, people who have deposited undisclosed cash will be taxed 50% and those who get caught by taxmen will be taxed 85%

The Indian government is looking to enshrine new laws to crack down on people who have deposited undisclosed income post the announcement of demonetisation. India's Finance Minister Arun Jaitley introduced a Bill on Monday to amend the Income Tax Act -- it seeks to impose a 50 per cent tax on cash deposits that is above a certain limit, which is yet to be specified. Further, people with unaccounted wealth who are caught by taxmen in raids will have to pay a 70 per cent tax and a 15 per cent penalty. A 30 per cent penalty will be imposed if the source of the undisclosed cash cannot be explained. The amended Bill also proposes that declarants would have to deposit 25 per cent of the unaccounted cash deposited into a scheme, which will be used to upgrade the country's infrastructure such as irrigation, primary education, primary health and housing projects. The federal government is pulling out all stops to plug loopholes in the system as critics of the demonetisation plan say the purpose of the entire move will be defeated if people can legalise unaccounted cash through proxy bank accounts. In recent days, there has been an unprecedented surge in cash deposits in zero-balance bank accounts. Indian media reports suggest that roughly Rs 21,000 crore (roughly $ 3 billion) has been deposited ever since the Indian government made the sudden announcement to annul mid to high-value bank notes. The Bill is likely to become law in the next few weeks if the lower house of the Parliament functions smoothly and the opposition decides to end their protests. The Indian government had announced the scrapping of Rs 500 and Rs 1,000 notes on November 8. (WION)

Demonetisation: Government tables Bill to impose high taxes & penalties on unaccounted cash deposits

Anticipating a more protectionist US&nbsp;technology visa programme under a Donald Trump administration, India&#39;s $150 billion IT services sector will speed up acquisitions in the United States and recruit more heavily from college campuses there.

Indian companies including Tata Consultancy Services (TCS), Infosys and Wipro have long used H1-B skilled worker visas to fly computer engineers to the US, their largest overseas market, temporarily to service clients.

Staff from those three companies accounted for around 86,000 new H1-B workers in 2005-14. The US&nbsp;currently issues close to that number of H1-B visas each year.

President-elect Trump&#39;s campaign rhetoric, and his pick for Attorney General of Senator Jeff Sessions, a long-time critic of the visa programme, have many expecting a tighter regime.

&quot;The world over, there&#39;s a lot of protectionism coming in and push back on immigration. Unfortunately, people are confusing immigration with a high-skilled temporary workforce, because we are really a temporary workforce,&quot; said Pravin Rao, chief operating officer at Infosys, India&#39;s second-largest information technology firm.

While few expect a complete shutdown of skilled worker visas as Indian engineers are an established part of the fabric of Silicon Valley, and US&nbsp;businesses depend on their cheaper IT and software solutions, any changes are likely to push up costs.

And a more restrictive programme would likely mean Indian IT firms sending fewer developers and engineers to the United States, and increasing campus recruitment there.

&quot;We have to accelerate hiring of locals if they are available, and start recruiting freshers from universities there,&quot; said Infosys&#39; Rao, noting a shift from the traditional model of recruiting mainly experienced people in the US.

&quot;Now we have to get into a model where we will recruit freshers, train them and gradually deploy them, and this will increase our costs,&quot; he said, noting Infosys typically recruits 500-700 people each quarter in the US&nbsp;and Europe, around 80 per cent of whom are locals.

Trump&#39;s election win and Britain&#39;s referendum vote to leave the European Union are headwinds for India&#39;s IT sector, as clients such as big US&nbsp;and British banks and insurers hold off on spending while the dust settles.

In India&#39;s IT hub of Bengaluru and the financial capital Mumbai, executives expect a Trump administration to raise the minimum wage for foreign workers, pressuring already squeezed margins.

Buying US&nbsp;companies would help Indian IT firms build their local headcount, increase their on-the-ground presence in key markets and help counter any protectionist regulations.

Indian software services companies have invested more than $2 billion in the United States in the past five years. North America accounts for more than half of the sector&#39;s revenue.

&quot;We have to accelerate acquisitions,&quot; said Rao at Infosys, which in the past two years has bought companies including US-based Noah Consulting and Kallidus Technologies.

Jatin Dalal, Wipro&#39;s chief financial officer, said his growth strategy is to buy companies that offer something beyond what Wipro already does, or new, disruptive firms - such as Appirio, a US&nbsp;cloud services firm.

The chief executive of Tech Mahindra, CP&nbsp;Gurnani, said his firm, which two years ago bought network services management firm Lightbridge Communications Corp, is on the look-out for more US&nbsp;acquisitions, particularly in healthcare and fin tech - financial technology firms that are disrupting traditional banking services.

In a broader shift from labour intensive onsite projects, Indian IT firms are also turning to higher-tech services such as automation, cloud computing and artificial intelligence (AI) platforms.

With better technology and faster networks, IT firms are encouraging Western clients to adopt more virtual services.

Infosys CEO Vishal Sikka says he has focused on automation and AI as growth drivers since 2014. &quot;The AI platform is 5-6 per cent of our revenues,&quot; he told Reuters. &quot;Three years ago, it was zero.&quot;

More automation would mean fewer onshore developers.

&quot;The &#39;Plan B&#39; would be to accelerate the trend ... to reduce their reliance on people and increase their focus on delivering automation, leveraging the cloud for their clients,&quot; said Partha Iyengar, Gartner&#39;s head of research in India.

(Reuters)

Trump's pick for attorney general of senator Jeff Sessions, a long-time critic of the visa programme, have many expecting a tighter regime

Anticipating a more protectionist US technology visa programme under a Donald Trump administration, India's $150 billion IT services sector will speed up acquisitions in the United States and recruit more heavily from college campuses there. Indian companies including Tata Consultancy Services (TCS), Infosys and Wipro have long used H1-B skilled worker visas to fly computer engineers to the US, their largest overseas market, temporarily to service clients. Staff from those three companies accounted for around 86,000 new H1-B workers in 2005-14. The US currently issues close to that number of H1-B visas each year. President-elect Trump's campaign rhetoric, and his pick for Attorney General of Senator Jeff Sessions, a long-time critic of the visa programme, have many expecting a tighter regime. "The world over, there's a lot of protectionism coming in and push back on immigration. Unfortunately, people are confusing immigration with a high-skilled temporary workforce, because we are really a temporary workforce," said Pravin Rao, chief operating officer at Infosys, India's second-largest information technology firm. While few expect a complete shutdown of skilled worker visas as Indian engineers are an established part of the fabric of Silicon Valley, and US businesses depend on their cheaper IT and software solutions, any changes are likely to push up costs. And a more restrictive programme would likely mean Indian IT firms sending fewer developers and engineers to the United States, and increasing campus recruitment there. "We have to accelerate hiring of locals if they are available, and start recruiting freshers from universities there," said Infosys' Rao, noting a shift from the traditional model of recruiting mainly experienced people in the US. "Now we have to get into a model where we will recruit freshers, train them and gradually deploy them, and this will increase our costs," he said, noting Infosys typically recruits 500-700 people each quarter in the US and Europe, around 80 per cent of whom are locals. Trump's election win and Britain's referendum vote to leave the European Union are headwinds for India's IT sector, as clients such as big US and British banks and insurers hold off on spending while the dust settles. In India's IT hub of Bengaluru and the financial capital Mumbai, executives expect a Trump administration to raise the minimum wage for foreign workers, pressuring already squeezed margins. Buying US companies would help Indian IT firms build their local headcount, increase their on-the-ground presence in key markets and help counter any protectionist regulations. Indian software services companies have invested more than $2 billion in the United States in the past five years. North America accounts for more than half of the sector's revenue. "We have to accelerate acquisitions," said Rao at Infosys, which in the past two years has bought companies including US-based Noah Consulting and Kallidus Technologies. Jatin Dalal, Wipro's chief financial officer, said his growth strategy is to buy companies that offer something beyond what Wipro already does, or new, disruptive firms - such as Appirio, a US cloud services firm. The chief executive of Tech Mahindra, CP Gurnani, said his firm, which two years ago bought network services management firm Lightbridge Communications Corp, is on the look-out for more US acquisitions, particularly in healthcare and fin tech - financial technology firms that are disrupting traditional banking services. In a broader shift from labour intensive onsite projects, Indian IT firms are also turning to higher-tech services such as automation, cloud computing and artificial intelligence (AI) platforms. With better technology and faster networks, IT firms are encouraging Western clients to adopt more virtual services. Infosys CEO Vishal Sikka says he has focused on automation and AI as growth drivers since 2014. "The AI platform is 5-6 per cent of our revenues," he told Reuters. "Three years ago, it was zero." More automation would mean fewer onshore developers. "The 'Plan B' would be to accelerate the trend ... to reduce their reliance on people and increase their focus on delivering automation, leveraging the cloud for their clients," said Partha Iyengar, Gartner's head of research in India. (Reuters)

Fearing a tighter US visa regime under Donald Trump, Indian IT firms rush to hire, acquire

Anticipating a more protectionist US technology visa programme under a Donald Trump administration, India&#39;s $150 billion IT services sector will speed up acquisitions in the United States and recruit more heavily from college campuses there.

Indian companies including Tata Consultancy Services (TCS), Infosys and Wipro have long used H1-B skilled worker visas to fly computer engineers to the US., their largest overseas market, temporarily to service clients.

Staff from those three companies accounted for around 86,000 new H1-B workers in 2005-14. The US currently issues close to that number of H1-B visas each year.

President-elect Trump&#39;s campaign rhetoric, and his pick for Attorney General of Senator Jeff Sessions, a long-time critic of the visa programme, have many expecting a tighter regime.

&quot;The world over, there&#39;s a lot of protectionism coming in and push back on immigration. Unfortunately, people are confusing immigration with a high-skilled temporary workforce, because we are really a temporary workforce,&quot; said Pravin Rao, chief operating officer at Infosys, India&#39;s second-largest information technology firm.

While few expect a complete shutdown of skilled worker visas as Indian engineers are an established part of the fabric of Silicon Valley, and US businesses depend on their cheaper IT and software solutions, any changes are likely to push up costs.

And a more restrictive programme would likely mean Indian IT firms sending fewer developers and engineers to the United States, and increasing campus recruitment there.

&quot;We have to accelerate hiring of locals if they are available, and start recruiting freshers from universities there,&quot; said Infosys&#39; Rao, noting a shift from the traditional model of recruiting mainly experienced people in the U.S.

&quot;Now we have to get into a model where we will recruit freshers, train them and gradually deploy them, and this will increase our costs,&quot; he said, noting Infosys typically recruits 500-700 people each quarter in the U.S. and Europe, around 80 percent of whom are locals.

Acquisitions in US to increase

Trump&#39;s election win and Britain&#39;s referendum vote to leave the European Union are headwinds for India&#39;s IT sector, as clients such as big U.S. and British banks and insurers hold off on spending while the dust settles.

In India&#39;s IT hub of Bengaluru and the financial capital Mumbai, executives expect a Trump administration to raise the minimum wage for foreign workers, pressuring already squeezed margins.

Buying U.S. companies would help Indian IT firms build their local headcount, increase their on-the-ground presence in key markets and help counter any protectionist regulations.

Indian software services companies have invested more than $2 billion in the United States in the past five years. North America accounts for more than half of the sector&#39;s revenue.

&quot;We have to accelerate acquisitions,&quot; said Rao at Infosys, which in the past two years has bought companies including U.S.-based Noah Consulting and Kallidus Technologies.

Jatin Dalal, Wipro&#39;s chief financial officer, said his growth strategy is to buy companies that offer something beyond what Wipro already does, or new, disruptive firms - such as Appirio, a U.S. cloud services firm.

The chief executive of Tech Mahindra, C.P. Gurnani, said his firm, which two years ago bought network services management firm Lightbridge Communications Corp, is on the look-out for more U.S. acquisitions, particularly in healthcare and fintech - financial technology firms that are disrupting traditional banking services.

Offshoring and automation

In a broader shift from labour intensive onsite projects, Indian IT firms are also turning to higher-tech services such as automation, cloud computing and artificial intelligence (AI) platforms.

With better technology and faster networks, IT firms are encouraging Western clients to adopt more virtual services.

Infosys CEO Vishal Sikka says he has focused on automation and AI as growth drivers since 2014. &quot;The AI platform is 5-6 percent of our revenues,&quot; he told Reuters. &quot;Three years ago, it was zero.&quot;

More automation would mean fewer onshore developers.

&quot;The &#39;Plan B&#39; would be to accelerate the trend ... to reduce their reliance on people and increase their focus on delivering automation, leveraging the cloud for their clients,&quot; said Partha Iyengar, Gartner&#39;s head of research in India.

(Reuters) 
&nbsp;

India's IT sector is anticipating more visa restrictions under the Trump administration

Anticipating a more protectionist US technology visa programme under a Donald Trump administration, India's $150 billion IT services sector will speed up acquisitions in the United States and recruit more heavily from college campuses there. Indian companies including Tata Consultancy Services (TCS), Infosys and Wipro have long used H1-B skilled worker visas to fly computer engineers to the US., their largest overseas market, temporarily to service clients. Staff from those three companies accounted for around 86,000 new H1-B workers in 2005-14. The US currently issues close to that number of H1-B visas each year. President-elect Trump's campaign rhetoric, and his pick for Attorney General of Senator Jeff Sessions, a long-time critic of the visa programme, have many expecting a tighter regime. "The world over, there's a lot of protectionism coming in and push back on immigration. Unfortunately, people are confusing immigration with a high-skilled temporary workforce, because we are really a temporary workforce," said Pravin Rao, chief operating officer at Infosys, India's second-largest information technology firm. While few expect a complete shutdown of skilled worker visas as Indian engineers are an established part of the fabric of Silicon Valley, and US businesses depend on their cheaper IT and software solutions, any changes are likely to push up costs. And a more restrictive programme would likely mean Indian IT firms sending fewer developers and engineers to the United States, and increasing campus recruitment there. "We have to accelerate hiring of locals if they are available, and start recruiting freshers from universities there," said Infosys' Rao, noting a shift from the traditional model of recruiting mainly experienced people in the U.S. "Now we have to get into a model where we will recruit freshers, train them and gradually deploy them, and this will increase our costs," he said, noting Infosys typically recruits 500-700 people each quarter in the U.S. and Europe, around 80 percent of whom are locals. Acquisitions in US to increase Trump's election win and Britain's referendum vote to leave the European Union are headwinds for India's IT sector, as clients such as big U.S. and British banks and insurers hold off on spending while the dust settles. In India's IT hub of Bengaluru and the financial capital Mumbai, executives expect a Trump administration to raise the minimum wage for foreign workers, pressuring already squeezed margins. Buying U.S. companies would help Indian IT firms build their local headcount, increase their on-the-ground presence in key markets and help counter any protectionist regulations. Indian software services companies have invested more than $2 billion in the United States in the past five years. North America accounts for more than half of the sector's revenue. "We have to accelerate acquisitions," said Rao at Infosys, which in the past two years has bought companies including U.S.-based Noah Consulting and Kallidus Technologies. Jatin Dalal, Wipro's chief financial officer, said his growth strategy is to buy companies that offer something beyond what Wipro already does, or new, disruptive firms - such as Appirio, a U.S. cloud services firm. The chief executive of Tech Mahindra, C.P. Gurnani, said his firm, which two years ago bought network services management firm Lightbridge Communications Corp, is on the look-out for more U.S. acquisitions, particularly in healthcare and fintech - financial technology firms that are disrupting traditional banking services. Offshoring and automation In a broader shift from labour intensive onsite projects, Indian IT firms are also turning to higher-tech services such as automation, cloud computing and artificial intelligence (AI) platforms. With better technology and faster networks, IT firms are encouraging Western clients to adopt more virtual services. Infosys CEO Vishal Sikka says he has focused on automation and AI as growth drivers since 2014. "The AI platform is 5-6 percent of our revenues," he told Reuters. "Three years ago, it was zero." More automation would mean fewer onshore developers. "The 'Plan B' would be to accelerate the trend ... to reduce their reliance on people and increase their focus on delivering automation, leveraging the cloud for their clients," said Partha Iyengar, Gartner's head of research in India. (Reuters)

Trump win spurs India's IT firms to speed up recruitments from US campuses

The government is considering increasing the amount of bonds issued under the so-called market stabilisation scheme (MSS) to drain out excess cash from the banking system, economic affairs secretary Shaktikanta Das said on Monday.

The government will study a current central bank proposal to increase the limit of MSS bonds issued this year and will take a decision accordingly, Das told reporters in New Delhi.

India has budgeted the issuance of 200 billion rupees ($2.91 billion) of MSS bonds in the year ending in March.&nbsp;

Banks have been flush with deposits after the government abolished 500 and 1,000 rupee notes earlier this month, forcing the RBI on Saturday to temporarily increase the amount of funds banks must deposit under the cash reserve ratio.&nbsp;

RBI Governor Urjit Patel on Sunday said the measure to raise CRR would be reviewed once the government issues more MSS bonds, Press Trust of India reported in a story carried by several local media.&nbsp; 
 
(Reuters)

The government will study an RBI proposal to increase limit of MSS bonds issued this year, economic affairs secretary Shaktikanta Das said

The government is considering increasing the amount of bonds issued under the so-called market stabilisation scheme (MSS) to drain out excess cash from the banking system, economic affairs secretary Shaktikanta Das said on Monday. The government will study a current central bank proposal to increase the limit of MSS bonds issued this year and will take a decision accordingly, Das told reporters in New Delhi. India has budgeted the issuance of 200 billion rupees ($2.91 billion) of MSS bonds in the year ending in March. Banks have been flush with deposits after the government abolished 500 and 1,000 rupee notes earlier this month, forcing the RBI on Saturday to temporarily increase the amount of funds banks must deposit under the cash reserve ratio. RBI Governor Urjit Patel on Sunday said the measure to raise CRR would be reviewed once the government issues more MSS bonds, Press Trust of India reported in a story carried by several local media. (Reuters)

Demonetisation: Government considers issuing bonds under market stabilisation scheme

Stepping up its efforts to trace black money parked abroad, India has shot off at least 20 administrative assistance requests to Switzerland in recent months seeking details of Indians suspected to have misused the famed high-secrecy walls of Swiss banks to evade taxes.

The individuals and companies about whom India has requested for information include at least three listed companies, former CEO of a real estate major, the wife of a Delhi-based former bureaucrat, a Dubai-based Indian origin investment banker, a high-profile fugitive along with his wife, an UAE-based holding company, and also some Gujarati businessmen settled abroad and presumably in the trading business.

Many of these are suspected to have maintained accounts in Swiss banks through offshore entities, including in Panama and the British Virgin Islands.

These requests for administrative assistance, which typically involves exchange of information on submission of proof by the requesting country about the account holders&#39; wrongdoing, have been documented by Swiss authorities in their Federal Gazette as per local laws to give the concerned person or entity a last chance to appeal against sharing of data.

While India and Switzerland last week signed a new pact for automatic exchange of information about account details from September 2018, the pending requests have been made under their existing bilateral tax treaty.

In the past also, names of some Indian nationals figured in Switzerlands Federal Gazette notifications after the Swiss authorities were approached by India for information about those people with regard to the pending tax-related probes against them.

After following the due process prescribed under Swiss law, the information has been shared by Switzerland with India in some cases, pursuant to which the Indian authorities -- including the tax department and the Enforcement Directorate -- have proceeded with their prosecution and other actions.

However, the pace of seeking such details seems to have quickened in the recent months, going by the sudden spurt in the number of Indian names figuring in such notifications.

So far in November alone, five Indian names have been disclosed, while a similar number of administrative assistance requests were notified in October as well. Since June this year, at least 20 such requests have been disclosed by the Swiss authorities.

Typically, these notifications include name, nationality and date of birth of the concerned individual, while in case of companies, their names and the country of registration are mentioned.

For long, Switzerland has been known for strict secrecy clauses about details of foreigners with accounts in Swiss banks. However, under growing global pressure, Switzerland has begun sharing information in cases where other countries have been able to present some evidence of suspected illegalities.

Under Swiss law, a prescribed procedure is followed for any administration assistance or information exchange by the FTA (Federal Tax Administration of Switzerland) with India or any other country with which the Alpine nation has tax treaties about their respective nationals.&nbsp;

Among other provisions, this procedure also seeks to safeguard &quot;the right to be heard&quot; of the person about whom information is sought by a foreign country.&nbsp;

&quot;If the person concerned has not designata person authorised to receive the notifications, the FTA shall inform this person about the pending administrative assistance procedure through the requesting authority.&nbsp;

&quot;Simultaneously, the FTA shall set a period of time for the person concerned to designate a person authorised to receive notifications. The FTA may inform the concerned person directly provided that the requesting authority expressly consents to this procedure in that case,&quot; the rules say.&nbsp;

If the person concerned is found to be entitled to appeal, he or she may participate in the procedure and inspect the files. The information can be shared with the foreign authorities after the appeal is rejected.&nbsp;

As per the latest data by Swiss National Bank (SNB), money held by Indians in Swiss banks fell to to a record low of 1.2 billion franc (about Rs 8,392 crore) at the end of 2015.&nbsp;

The funds held by Indians with Swiss banks stood at a record high of CHF 6.5 billion (Rs 23,000 crore) at the end of 2006.&nbsp;

However, the quantum of these funds has been falling since then, except for in 2011 and in 2013 when Indians&#39; money had risen by over 12 per cent and 42 per cent, respectively.&nbsp;

The funds, described by SNB as &quot;liabilities&quot;&nbsp;of Swiss banks or &#39;amounts due to&#39; their clients, are the official figures disclosed by the Swiss authorities and do not indicate the quantum of the much-debated alleged black money held by Indians in the safe havens of Switzerland.

SNB&#39;s official figures also do not include the money that Indians or others might have in Swiss banks in the names of entities from different countries.&nbsp;There are more than 250 banks in Switzerland and they together have an estimated 1.24 lakh full-time employees. Last week, Switzerland agreed to automatic sharing of information with India on Swiss bank accounts of Indians.&nbsp;

The &quot;Joint Declaration&quot;&nbsp;in this regard provides that both countries will start collecting data in accordance with global standards in 2018 and exchange it from 2019 onwards.&nbsp;

While Switzerland has conformed to the global standards on automatic exchange of information with the signing of the declaration, India, on its part, has promised to safeguard the confidentiality of the data.&nbsp;

(PTI) 
&nbsp;

India has sought details of those suspected to have misused their Swiss bank accounts for evading taxes

Stepping up its efforts to trace black money parked abroad, India has shot off at least 20 administrative assistance requests to Switzerland in recent months seeking details of Indians suspected to have misused the famed high-secrecy walls of Swiss banks to evade taxes. The individuals and companies about whom India has requested for information include at least three listed companies, former CEO of a real estate major, the wife of a Delhi-based former bureaucrat, a Dubai-based Indian origin investment banker, a high-profile fugitive along with his wife, an UAE-based holding company, and also some Gujarati businessmen settled abroad and presumably in the trading business. Many of these are suspected to have maintained accounts in Swiss banks through offshore entities, including in Panama and the British Virgin Islands. These requests for administrative assistance, which typically involves exchange of information on submission of proof by the requesting country about the account holders' wrongdoing, have been documented by Swiss authorities in their Federal Gazette as per local laws to give the concerned person or entity a last chance to appeal against sharing of data. While India and Switzerland last week signed a new pact for automatic exchange of information about account details from September 2018, the pending requests have been made under their existing bilateral tax treaty. In the past also, names of some Indian nationals figured in Switzerlands Federal Gazette notifications after the Swiss authorities were approached by India for information about those people with regard to the pending tax-related probes against them. After following the due process prescribed under Swiss law, the information has been shared by Switzerland with India in some cases, pursuant to which the Indian authorities -- including the tax department and the Enforcement Directorate -- have proceeded with their prosecution and other actions. However, the pace of seeking such details seems to have quickened in the recent months, going by the sudden spurt in the number of Indian names figuring in such notifications. So far in November alone, five Indian names have been disclosed, while a similar number of administrative assistance requests were notified in October as well. Since June this year, at least 20 such requests have been disclosed by the Swiss authorities. Typically, these notifications include name, nationality and date of birth of the concerned individual, while in case of companies, their names and the country of registration are mentioned. For long, Switzerland has been known for strict secrecy clauses about details of foreigners with accounts in Swiss banks. However, under growing global pressure, Switzerland has begun sharing information in cases where other countries have been able to present some evidence of suspected illegalities. Under Swiss law, a prescribed procedure is followed for any administration assistance or information exchange by the FTA (Federal Tax Administration of Switzerland) with India or any other country with which the Alpine nation has tax treaties about their respective nationals. Among other provisions, this procedure also seeks to safeguard "the right to be heard" of the person about whom information is sought by a foreign country. "If the person concerned has not designata person authorised to receive the notifications, the FTA shall inform this person about the pending administrative assistance procedure through the requesting authority. "Simultaneously, the FTA shall set a period of time for the person concerned to designate a person authorised to receive notifications. The FTA may inform the concerned person directly provided that the requesting authority expressly consents to this procedure in that case," the rules say. If the person concerned is found to be entitled to appeal, he or she may participate in the procedure and inspect the files. The information can be shared with the foreign authorities after the appeal is rejected. As per the latest data by Swiss National Bank (SNB), money held by Indians in Swiss banks fell to to a record low of 1.2 billion franc (about Rs 8,392 crore) at the end of 2015. The funds held by Indians with Swiss banks stood at a record high of CHF 6.5 billion (Rs 23,000 crore) at the end of 2006. However, the quantum of these funds has been falling since then, except for in 2011 and in 2013 when Indians' money had risen by over 12 per cent and 42 per cent, respectively. The funds, described by SNB as "liabilities" of Swiss banks or 'amounts due to' their clients, are the official figures disclosed by the Swiss authorities and do not indicate the quantum of the much-debated alleged black money held by Indians in the safe havens of Switzerland. SNB's official figures also do not include the money that Indians or others might have in Swiss banks in the names of entities from different countries. There are more than 250 banks in Switzerland and they together have an estimated 1.24 lakh full-time employees. Last week, Switzerland agreed to automatic sharing of information with India on Swiss bank accounts of Indians. The "Joint Declaration" in this regard provides that both countries will start collecting data in accordance with global standards in 2018 and exchange it from 2019 onwards. While Switzerland has conformed to the global standards on automatic exchange of information with the signing of the declaration, India, on its part, has promised to safeguard the confidentiality of the data. (PTI)

India steps up efforts to trace details of Indian Swiss bank account holders

Tata Steel today clinched a pact with UK-based Liberty House Group that allows it to start exclusive talks for potential sale of its Speciality Steels business for an enterprise value of 100 million pounds subject to due diligence and corporate approvals.

The signing of the letter of intent (LoI) is in line with the company&#39;s overall restructuring strategy of the UK portfolio.

Liberty House Group, led by India-origin businessman Sanjeev Gupta, had emerged as the frontrunner for the Indian steel giant&#39;s UK plants when these were put on the block earlier this year.

The agreement covers some of Tata Steel&#39;s South Yorkshire-based assets, including the Rotherham electric arc steelworks, the steel-purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury in the UK and in Suzhou and Xi&#39;an in China.

Speciality Steels employs nearly 1,700 people making steel for aerospace, automotive and oil and gas industries.

&quot;The Speciality Steels business is independent of the pan-European strip products supply chain and today&#39;s announcement is in line with the overall restructuring strategy of the UK portfolio,&quot; said Bimlendra Jha, CEO of Tata Steel UK.

&quot;This is an important step forward in seeking a future for Speciality Steels and we have reached this stage, thanks to the efforts of employees, trade unions and management. We now look forward to working with Liberty on the due diligence and other work streams so that the sale can be successfully concluded.&quot;

The firm on Monday also revealed plans to pursue 85 million pounds worth of capital investments covering a range of &quot;sustenance and improvement schemes&quot;.

Jha also expressed the intent to continue to work closely with trade unions and communicate any material news on this issue to the employees on an ongoing basis.

The Liberty Group said its latest acquisition is expected to be complete by the first quarter of 2017, subject to various clearances, and will mark a significant step in realising Liberty&#39;s GreenSteel vision, which promotes widespread melting and upcycling of UK domestic scrap metal, using arc furnaces powered from renewable energy sources.

Gupta, Executive Chairman of the Liberty House Group, said: &quot;We look forward to working with Tata Steel over the coming weeks to complete this hugely important milestone transaction. We recognise the world-class skills of the Speciality Steels workforce and are eager to join with them to develop the business and increase market share, both domestically and internationally, using our global presence.&quot;

The planned purchase of Tata Steel&#39;s Speciality Steels business is the latest in a succession of key acquisitions undertaken by Gupta over the past year, including assets in South Wales, the West Midlands, Scotland and Kent.

Meanwhile, Tata Steel stated that it is actively seeking solutions to the structural challenges. 
There has been speculation in the UK media over the company&#39;s plans to retain the bulk of its steel business under the interim chairmanship of Ratan Tata.&nbsp;

The challenges is the need to develop a more sustainable business in the UK as well as a self-sustaining future for the British Steel Pension Scheme.

&quot;As part of that process, we will now engage fully with the trade unions and the local community. We are counting on their full support,&quot; Gupta said.

The British Steel Pension Scheme has been a major obstacle to the future of the Tata Steel business in the UK. It has liabilities of more than 15 billion pounds and 130,000 members, making it one of the biggest retirement schemes in the UK.

Tata Steel said it has recently approved schemes focused on improving manufacturing capability to enable production of premium steels in Shotton, Llanwern, Trostre, Orb in Newport, and other downstream operations as well as environmental schemes for Port Talbot&#39;s power plant.

&quot;Investments in packaging steels, electrical steels, an automotive finishing line, laser welding and next-generation coated products are in line with the company strategy to enhance premium product focus for its UK strip products supply chain,&quot; Tata Steel UK said.

Highlighting its track record in the UK, Tata Steel said it has invested 1.5 billion pounds of capital over the last nine years.

&quot;The company&#39;s board considers technical feasibility and economic returns of investments while taking decisions as well as their affordability. The company is pursuing a transformation plan to create a sustainable future for its UK strip products business. The success of this plan is likely to influence decisions on future investments,&quot; the firm said.

Tata Steel is Europe&#39;s second-largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe.&nbsp;

 
&nbsp;

Speciality Steels employs nearly 1,700 people making steel for aerospace, automotive and oil and gas industries

Tata Steel today clinched a pact with UK-based Liberty House Group that allows it to start exclusive talks for potential sale of its Speciality Steels business for an enterprise value of 100 million pounds subject to due diligence and corporate approvals. The signing of the letter of intent (LoI) is in line with the company's overall restructuring strategy of the UK portfolio. Liberty House Group, led by India-origin businessman Sanjeev Gupta, had emerged as the frontrunner for the Indian steel giant's UK plants when these were put on the block earlier this year. The agreement covers some of Tata Steel's South Yorkshire-based assets, including the Rotherham electric arc steelworks, the steel-purifying facility in Stocksbridge and a mill in Brinsworth as well as service centres in Bolton and Wednesbury in the UK and in Suzhou and Xi'an in China. Speciality Steels employs nearly 1,700 people making steel for aerospace, automotive and oil and gas industries. "The Speciality Steels business is independent of the pan-European strip products supply chain and today's announcement is in line with the overall restructuring strategy of the UK portfolio," said Bimlendra Jha, CEO of Tata Steel UK. "This is an important step forward in seeking a future for Speciality Steels and we have reached this stage, thanks to the efforts of employees, trade unions and management. We now look forward to working with Liberty on the due diligence and other work streams so that the sale can be successfully concluded." The firm on Monday also revealed plans to pursue 85 million pounds worth of capital investments covering a range of "sustenance and improvement schemes". Jha also expressed the intent to continue to work closely with trade unions and communicate any material news on this issue to the employees on an ongoing basis. The Liberty Group said its latest acquisition is expected to be complete by the first quarter of 2017, subject to various clearances, and will mark a significant step in realising Liberty's GreenSteel vision, which promotes widespread melting and upcycling of UK domestic scrap metal, using arc furnaces powered from renewable energy sources. Gupta, Executive Chairman of the Liberty House Group, said: "We look forward to working with Tata Steel over the coming weeks to complete this hugely important milestone transaction. We recognise the world-class skills of the Speciality Steels workforce and are eager to join with them to develop the business and increase market share, both domestically and internationally, using our global presence." The planned purchase of Tata Steel's Speciality Steels business is the latest in a succession of key acquisitions undertaken by Gupta over the past year, including assets in South Wales, the West Midlands, Scotland and Kent. Meanwhile, Tata Steel stated that it is actively seeking solutions to the structural challenges. There has been speculation in the UK media over the company's plans to retain the bulk of its steel business under the interim chairmanship of Ratan Tata. The challenges is the need to develop a more sustainable business in the UK as well as a self-sustaining future for the British Steel Pension Scheme. "As part of that process, we will now engage fully with the trade unions and the local community. We are counting on their full support," Gupta said. The British Steel Pension Scheme has been a major obstacle to the future of the Tata Steel business in the UK. It has liabilities of more than 15 billion pounds and 130,000 members, making it one of the biggest retirement schemes in the UK. Tata Steel said it has recently approved schemes focused on improving manufacturing capability to enable production of premium steels in Shotton, Llanwern, Trostre, Orb in Newport, and other downstream operations as well as environmental schemes for Port Talbot's power plant. "Investments in packaging steels, electrical steels, an automotive finishing line, laser welding and next-generation coated products are in line with the company strategy to enhance premium product focus for its UK strip products supply chain," Tata Steel UK said. Highlighting its track record in the UK, Tata Steel said it has invested 1.5 billion pounds of capital over the last nine years. "The company's board considers technical feasibility and economic returns of investments while taking decisions as well as their affordability. The company is pursuing a transformation plan to create a sustainable future for its UK strip products business. The success of this plan is likely to influence decisions on future investments," the firm said. Tata Steel is Europe's second-largest steel producer, with steelmaking in the UK and Netherlands, and manufacturing plants across Europe.

Tata Steel signs  ?100 million deal for sale of UK speciality steels business

The American shopping fest known as Black Friday lured more buyers this year but they spent less per person thanks to great bargains, an industry group said Sunday.

More than 154 million people made purchases during the four-day retail extravaganza that began Thursday on Thanksgiving, compared to 151 million last year, the National Retail Federation said.

Shoppers spent an average of $289.19, compared to $299.60 in 2015.

Sales over the Thanksgiving holiday, which extends into so-called Cyber Monday, are a good indicator of the health of US consumer spending.

Online sales dominated. A total of 44 per cent of those who took part in the NRF survey said they had bought via the internet while 40 per cent went to a brick-and-mortar store.

&quot;It was a strong weekend for retailers, but an even better weekend for consumers, who took advantage of some really incredible deals,&quot; NRF president Matthew Shay said.

The most popular day to shop online was Black Friday itself, the day after the Thanksgiving holiday. Of those who purchased online over the four-day period, 74 per cent did so on Friday, up 1.3 per cent from last year.

And of the people who went to actual stores over this shopping period, 75 per cent did so on Black Friday, up 3.4 per cent from last year, the NRF said.

Millennials, aged 18-34, drove the increase in shopping, with eight out of ten buying something over the long weekend.

Around 56 per cent of smartphone owners and 53 per cent of tablet owners used these devices to assist with their shopping.

The study was carried out by Prosper Insights &amp; Analytics with a sample of 4,330 people on November 25-26 and has a margin of error of 1.5 percentage points.

(AFP)

More than 154 million people made purchases during the four-day retail extravaganza that began Thursday on Thanksgiving

The American shopping fest known as Black Friday lured more buyers this year but they spent less per person thanks to great bargains, an industry group said Sunday. More than 154 million people made purchases during the four-day retail extravaganza that began Thursday on Thanksgiving, compared to 151 million last year, the National Retail Federation said. Shoppers spent an average of $289.19, compared to $299.60 in 2015. Sales over the Thanksgiving holiday, which extends into so-called Cyber Monday, are a good indicator of the health of US consumer spending. Online sales dominated. A total of 44 per cent of those who took part in the NRF survey said they had bought via the internet while 40 per cent went to a brick-and-mortar store. "It was a strong weekend for retailers, but an even better weekend for consumers, who took advantage of some really incredible deals," NRF president Matthew Shay said. The most popular day to shop online was Black Friday itself, the day after the Thanksgiving holiday. Of those who purchased online over the four-day period, 74 per cent did so on Friday, up 1.3 per cent from last year. And of the people who went to actual stores over this shopping period, 75 per cent did so on Black Friday, up 3.4 per cent from last year, the NRF said. Millennials, aged 18-34, drove the increase in shopping, with eight out of ten buying something over the long weekend. Around 56 per cent of smartphone owners and 53 per cent of tablet owners used these devices to assist with their shopping. The study was carried out by Prosper Insights & Analytics with a sample of 4,330 people on November 25-26 and has a margin of error of 1.5 percentage points. (AFP)

US Black Friday: More shoppers this year but less spent per head

The rupee today tumbled by 30 paise to end at a fresh 2016 low of 68.76 due to deteriorating sentiment in the midst of worsening impact of fund outflows.

Frantic dollar demand from corporates along with aggressive hedging strategy adopted by importers in the wake of currency volatility predominately took a toll on domestic unit despite moves by the central bank to stabilise the currency.

Massive funds outflows in the wake of impending US Fed rate hike and a bullish dollar overseas have hit the rupee sentiment, a forex dealer commented.

Ongoing redemption pressure on foreign currency non-resident (FCNR) deposits also aided to the rupee woes, the dealer said further.

At the Interbank Foreign Exchange (forex) market, the local unit opened modestly higher at 68.42 from last Friday&#39;s closing value of 68.46.

However, the initial positive momentum failed to gain ground with the currency retreating sharply to hit a intraday low of 68.80 before ending at 68.76 - its lowest closing level so far this year - showing a steep loss of 30 paise, 0.44 per cent.

The rupee has shed 3.95 per cent of its value since the beginning of 2016.

The rupee had plunged to a record low of 68.8650 in day trade last Thursday before recovering on RBI intervention to settle at 68.74 -- the lowest level in 39 months.

It had closed at a record low of 68.80 on August 28, 2013 impacted by the so-called taper tantrum after the Fed&#39;s signal to end its unprecedented bond purchases.

Foreign investors have pulled out close to USD 5 billion from the capital markets in November so far amid concerns over the impact of demonetisation coupled with fears of rate hike by the US Federal Reserve.

In worldwide trade, the greenback fell back modestly against all its major rivals at the beginning of the week after its longest winning streak in three years.

The dollar has strengthened nearly 6 per cent so far this month after the US presidential election outcome as markets speculated buoyant fiscal stimulus to boost economy that will boost inflation and aggressive Fed rate hike cycle.

The US dollar index was quoted higher at 101.51 in late afternoon.

Meanwhile, RBI today fixed the reference rate for the dollar at 68.7235 and euro at 73.1768.&nbsp;

In cross-currency trades, the rupee firmed up further against the pound sterling to settle at 85.26 from 85.28 in previous close. But it fell back against the euro to finish at 72.92 as compared to 72.53 previously. It also drifted down against the Japanese yen to conclude at 61.22 from 60.66 per 100 yens earlier.

Country&#39;s foreign exchange reserves fell sharply by USD 1.542 billion to USD 365.499 billion in the week to November 18.

The outflows on account of selling by foreign investors and hedge funds remained unabated for the fourth straight week with USD 737.49 million of outflows from equities and debt markets.

In the forward market, premium for dollar edged up further due to sustained paying pressure from corporates.

The benchmark six-month premium for April rose to 103-105 paise from 99-103 paise and the far-forward October 2017 contract also firmed up to 251-253 paise from 248-252 paise from 230-233 last weekend.

Meanwhile, the BSE Sensex rose nearly 34 points to close at 26,350.17, while the broder Nifty added 12.60 pts to 8,126.90.&nbsp;

(PTI)

Frantic dollar demand from corporates along with aggressive hedging strategy adopted by importers took a toll on domestic unit

The rupee today tumbled by 30 paise to end at a fresh 2016 low of 68.76 due to deteriorating sentiment in the midst of worsening impact of fund outflows. Frantic dollar demand from corporates along with aggressive hedging strategy adopted by importers in the wake of currency volatility predominately took a toll on domestic unit despite moves by the central bank to stabilise the currency. Massive funds outflows in the wake of impending US Fed rate hike and a bullish dollar overseas have hit the rupee sentiment, a forex dealer commented. Ongoing redemption pressure on foreign currency non-resident (FCNR) deposits also aided to the rupee woes, the dealer said further. At the Interbank Foreign Exchange (forex) market, the local unit opened modestly higher at 68.42 from last Friday's closing value of 68.46. However, the initial positive momentum failed to gain ground with the currency retreating sharply to hit a intraday low of 68.80 before ending at 68.76 - its lowest closing level so far this year - showing a steep loss of 30 paise, 0.44 per cent. The rupee has shed 3.95 per cent of its value since the beginning of 2016. The rupee had plunged to a record low of 68.8650 in day trade last Thursday before recovering on RBI intervention to settle at 68.74 -- the lowest level in 39 months. It had closed at a record low of 68.80 on August 28, 2013 impacted by the so-called taper tantrum after the Fed's signal to end its unprecedented bond purchases. Foreign investors have pulled out close to USD 5 billion from the capital markets in November so far amid concerns over the impact of demonetisation coupled with fears of rate hike by the US Federal Reserve. In worldwide trade, the greenback fell back modestly against all its major rivals at the beginning of the week after its longest winning streak in three years. The dollar has strengthened nearly 6 per cent so far this month after the US presidential election outcome as markets speculated buoyant fiscal stimulus to boost economy that will boost inflation and aggressive Fed rate hike cycle. The US dollar index was quoted higher at 101.51 in late afternoon. Meanwhile, RBI today fixed the reference rate for the dollar at 68.7235 and euro at 73.1768. In cross-currency trades, the rupee firmed up further against the pound sterling to settle at 85.26 from 85.28 in previous close. But it fell back against the euro to finish at 72.92 as compared to 72.53 previously. It also drifted down against the Japanese yen to conclude at 61.22 from 60.66 per 100 yens earlier. Country's foreign exchange reserves fell sharply by USD 1.542 billion to USD 365.499 billion in the week to November 18. The outflows on account of selling by foreign investors and hedge funds remained unabated for the fourth straight week with USD 737.49 million of outflows from equities and debt markets. In the forward market, premium for dollar edged up further due to sustained paying pressure from corporates. The benchmark six-month premium for April rose to 103-105 paise from 99-103 paise and the far-forward October 2017 contract also firmed up to 251-253 paise from 248-252 paise from 230-233 last weekend. Meanwhile, the BSE Sensex rose nearly 34 points to close at 26,350.17, while the broder Nifty added 12.60 pts to 8,126.90. (PTI)

Rupee cracks to 2016-low on funds exodus; ends at 68.76