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Consumer groups on Wednesday will deliver a petition from more than 350,000 people to the KFC fried chicken chain, calling on the Yum Brands Inc unit to stop the routine use of antibiotics by the companies that supply its poultry. 
 
Several fast-food restaurants, which have been under fire for selling unhealthy meals, are assuming the role of public health change agent by forcing their respective meat suppliers to adopt new practices aimed at keeping vital antibiotics working. 
 
KFC has said that by 2017, antibiotics important to human medicine will only be used to maintain chicken health and only under the supervision and prescription of a licensed veterinarian. But critics say that policy effectively allows for routine use of antibiotics by its chicken suppliers. 
 
As per federal government guidance, KFC does not allow the use of such antibiotics for growth promotion. Medical experts warn that the routine use of antibiotics to promote growth and prevent illness in healthy farm animals contributes to the rise of drug-resistant &quot;superbug&quot; infections that kill at least 23,000 Americans each year and represent a &quot;catastrophic threat&quot; to global health. 
 
More than 70 per cent of medically important antibiotics in the United States are sold for use on livestock and poultry. 
 
McDonald&#39;s Corp last week said it switched to chicken raised without antibiotics important to human health, months ahead of schedule. 
 
Chick-fil-A Inc, which has surpassed KFC to become the No. 1 US fast-food chicken chain by revenue, has vowed to fully transition to chicken raised with any antibiotics by the end of 2019. 
 
KFC &#39;lagging&#39; 
 
&quot;KFC is lagging woefully behind. Diners around the country want KFC to step up,&quot; said Lena Brook, food policy advocate with the Natural Resources Defence Council (NRDC), one of the groups delivering petitions to KFC&#39;s headquarters in Louisville, Kentucky. 
 
Yum, which this year plans to spin off its China business that contributes roughly 40 per cent of the company&#39;s overall operating profit, did not immediately respond to requests for comment. 
 
Yum&#39;s Taco Bell and Pizza Hut restaurants have set 2017 deadlines for switching to chicken raised without antibiotics important to human health. KFC, which purchases more chicken than those two chains, has not matched that commitment. 
 
&quot;These lifesaving drugs should be used only when animals are sick,&quot; said Steven Roach, food safety program director at the Food Animals Concern Trust. 
 
FACT and US Public Interest Research Group Education Fund also sent representatives to deliver the KFC petitions. The Center for Science in the Public Interest and CREDO Action also collected signatures. 
 
That action comes a day after Yum investors submitted a shareholder proposal requesting that the company quickly phase out harmful antibiotic use in its meat supply. 
 
The World Health Organization has warned that the world is moving toward a post-antibiotic era in which many infections would no longer be treatable because of the overuse of antibiotics. 
 
Two US patients are known to have been infected with bacteria carrying the mcr-1 superbug gene that makes germs highly resistant to a last-resort class of antibiotics. 
 
The mcr-1 gene has been found over the past six months in farm animals and people in about 20 countries, including China, Germany and Italy. 
 
Health officials fear the mcr-1 gene will soon be found in bacteria already resistant to all or virtually all other types of antibiotics, potentially making infections untreatable. 
 
Such discoveries have increased the urgency of calls to reduce antibiotic use in beef and pork production. In April, 54 large investors launched a campaign to curb the use of antibiotics in the meat and poultry served by 10 large US and British restaurant groups, including Yum. 
 
(Reuters)

More than 70 per cent of medically important antibiotics in the US are sold for use on livestock and poultry

Consumer groups on Wednesday will deliver a petition from more than 350,000 people to the KFC fried chicken chain, calling on the Yum Brands Inc unit to stop the routine use of antibiotics by the companies that supply its poultry. Several fast-food restaurants, which have been under fire for selling unhealthy meals, are assuming the role of public health change agent by forcing their respective meat suppliers to adopt new practices aimed at keeping vital antibiotics working. KFC has said that by 2017, antibiotics important to human medicine will only be used to maintain chicken health and only under the supervision and prescription of a licensed veterinarian. But critics say that policy effectively allows for routine use of antibiotics by its chicken suppliers. As per federal government guidance, KFC does not allow the use of such antibiotics for growth promotion. Medical experts warn that the routine use of antibiotics to promote growth and prevent illness in healthy farm animals contributes to the rise of drug-resistant "superbug" infections that kill at least 23,000 Americans each year and represent a "catastrophic threat" to global health. More than 70 per cent of medically important antibiotics in the United States are sold for use on livestock and poultry. McDonald's Corp last week said it switched to chicken raised without antibiotics important to human health, months ahead of schedule. Chick-fil-A Inc, which has surpassed KFC to become the No. 1 US fast-food chicken chain by revenue, has vowed to fully transition to chicken raised with any antibiotics by the end of 2019. KFC 'lagging' "KFC is lagging woefully behind. Diners around the country want KFC to step up," said Lena Brook, food policy advocate with the Natural Resources Defence Council (NRDC), one of the groups delivering petitions to KFC's headquarters in Louisville, Kentucky. Yum, which this year plans to spin off its China business that contributes roughly 40 per cent of the company's overall operating profit, did not immediately respond to requests for comment. Yum's Taco Bell and Pizza Hut restaurants have set 2017 deadlines for switching to chicken raised without antibiotics important to human health. KFC, which purchases more chicken than those two chains, has not matched that commitment. "These lifesaving drugs should be used only when animals are sick," said Steven Roach, food safety program director at the Food Animals Concern Trust. FACT and US Public Interest Research Group Education Fund also sent representatives to deliver the KFC petitions. The Center for Science in the Public Interest and CREDO Action also collected signatures. That action comes a day after Yum investors submitted a shareholder proposal requesting that the company quickly phase out harmful antibiotic use in its meat supply. The World Health Organization has warned that the world is moving toward a post-antibiotic era in which many infections would no longer be treatable because of the overuse of antibiotics. Two US patients are known to have been infected with bacteria carrying the mcr-1 superbug gene that makes germs highly resistant to a last-resort class of antibiotics. The mcr-1 gene has been found over the past six months in farm animals and people in about 20 countries, including China, Germany and Italy. Health officials fear the mcr-1 gene will soon be found in bacteria already resistant to all or virtually all other types of antibiotics, potentially making infections untreatable. Such discoveries have increased the urgency of calls to reduce antibiotic use in beef and pork production. In April, 54 large investors launched a campaign to curb the use of antibiotics in the meat and poultry served by 10 large US and British restaurant groups, including Yum. (Reuters)

US consumer groups ask Yum's KFC to tighten antibiotic rules

World stocks hit a new one-year high today, while the dollar and benchmark government bond yields sank and precious metals rose after weak US productivity data again pushed back expectations of a Federal Reserve rate hike. 
 
Wall Street was expected to grind fractionally higher when it resumes, with jobs and housing market data on the agenda. 
 
Europe&#39;s main bourses were struggling with modest 0.3-0.4 per cent losses due to weak company results, although the MSCI&#39;s 46-country All World index remained positive after overnight Asian gains. 
 
With the focus on signs of pressure in the United States economy, demand for bonds firmed again, a factor already highlighted on Tuesday by the Bank of England&#39;s failure to prise enough debt from investors to meet its revamped bond-buying plan.. 
 
US Treasury yields dropped to 1.536 per cent in Europe, while Germany&#39;s 10-year bonds yield fell 1.4 basis points to minus 0.16 per cent as Berlin sold 4 billion Euros of bond at a new record low average yield of -0.09 per cent. 
 
The 10-year UK gilt yield also sank to a record low of 0.54 per cent in the wake of the BoE&#39;s bond buying issues. 
 
&quot;Central banks look increasingly accommodative and no one seems to be going against that trend ... which supports all asset prices,&quot; said Anton Heese, head of European rates strategy at Morgan Stanley in London. 
 
&quot;The growth prospects for the US economy are probably weaker than many anticipate.&quot; 
 
The bond moves had a clear impact on currencies, with the Dollar index, which tracks the US greenback against a basket of other top currencies, seeing its biggest drop in over a week, falling 0.65 per cent to 95.559. 
 
That in turn sent the Euro up 0.6 per cent to $1.1186, extending its recovery from Friday&#39;s one-week low of $1.1046. The Yen climbed to 101.20 per dollar and even the recently buffeted UK pound made ground. 
 
&quot;The release of the third consecutive decline in quarterly US productivity, the worst run since at least 1980, does not bode well for the prospects for the Dollar,&quot; Morgan Stanley head of currency strategy, Hans Redeker, said. 
 
 
Good as gold 
 
The Australian Dollar advanced to a more than three-month peak of $0.7729, having been buoyed this week by Australia&#39;s relatively high yields and stronger investor risk appetite. 
 
&quot;Part of the Australian dollar&#39;s resilience is the lack of follow-through in pricing for a Fed hike in September, limiting the US dollar&#39;s gains,&quot; analysts at Westpac said in a note. They recommended investors buy the Australian Dollar. 
 
The US dollar&#39;s weakness gave gold a lift, with the precious metal gaining 0.9 per cent to $1,352.26 an ounce. 
 
Palladium jumped more than 7 per cent to a 14-month high at one point as bets on lower prices were reversed after the metal, which is used in car catalytic converters among other things, broke above key chart levels. It surged nearly 20 per cent last month in its biggest one-month rise in 8-1/2 years. 
 
That may mean investors who had bet on lower prices could be exposed to heavy losses. 
 
&quot;You can talk about fundamental explanations, strong car sales, a reduction in supply from Russia, but those didn&#39;t happen overnight,&quot; Macquarie analyst Matthew Turner said. 
 
Oil prices slipped for a second straight day as top producer Saudi Arabia revealed its output hit a record 10.67 million barrels per day last month. It came after data had also shown a surprise US crude stockpile build. 
 
Brent futures fell as much as 1.5 per cent to $44.30 per barrel before recovering to $44.95. US crude also slipped 0.4 per cent to $42.62, extending Tuesday&#39;s 0.6 per cent decline. 
 
Emerging market stocks showed little reaction to the crude moves as they rose for a fifth straight day with many EM currencies also strengthening following the dollar&#39;s sell-off. 
 
MSCI&#39;s emerging market index hit a new one-year high as gains across Asia and other markets such as Greece and the Czech Republic helped extend its rise this month to over 3.5 per cent. 
 
(Reuters)

The US Dollar's weakness gave gold a lift, with the precious metal gaining 0.9 per cent to $1,352.26 an ounce

World stocks hit a new one-year high today, while the dollar and benchmark government bond yields sank and precious metals rose after weak US productivity data again pushed back expectations of a Federal Reserve rate hike. Wall Street was expected to grind fractionally higher when it resumes, with jobs and housing market data on the agenda. Europe's main bourses were struggling with modest 0.3-0.4 per cent losses due to weak company results, although the MSCI's 46-country All World index remained positive after overnight Asian gains. With the focus on signs of pressure in the United States economy, demand for bonds firmed again, a factor already highlighted on Tuesday by the Bank of England's failure to prise enough debt from investors to meet its revamped bond-buying plan.. US Treasury yields dropped to 1.536 per cent in Europe, while Germany's 10-year bonds yield fell 1.4 basis points to minus 0.16 per cent as Berlin sold 4 billion Euros of bond at a new record low average yield of -0.09 per cent. The 10-year UK gilt yield also sank to a record low of 0.54 per cent in the wake of the BoE's bond buying issues. "Central banks look increasingly accommodative and no one seems to be going against that trend ... which supports all asset prices," said Anton Heese, head of European rates strategy at Morgan Stanley in London. "The growth prospects for the US economy are probably weaker than many anticipate." The bond moves had a clear impact on currencies, with the Dollar index, which tracks the US greenback against a basket of other top currencies, seeing its biggest drop in over a week, falling 0.65 per cent to 95.559. That in turn sent the Euro up 0.6 per cent to $1.1186, extending its recovery from Friday's one-week low of $1.1046. The Yen climbed to 101.20 per dollar and even the recently buffeted UK pound made ground. "The release of the third consecutive decline in quarterly US productivity, the worst run since at least 1980, does not bode well for the prospects for the Dollar," Morgan Stanley head of currency strategy, Hans Redeker, said. Good as gold The Australian Dollar advanced to a more than three-month peak of $0.7729, having been buoyed this week by Australia's relatively high yields and stronger investor risk appetite. "Part of the Australian dollar's resilience is the lack of follow-through in pricing for a Fed hike in September, limiting the US dollar's gains," analysts at Westpac said in a note. They recommended investors buy the Australian Dollar. The US dollar's weakness gave gold a lift, with the precious metal gaining 0.9 per cent to $1,352.26 an ounce. Palladium jumped more than 7 per cent to a 14-month high at one point as bets on lower prices were reversed after the metal, which is used in car catalytic converters among other things, broke above key chart levels. It surged nearly 20 per cent last month in its biggest one-month rise in 8-1/2 years. That may mean investors who had bet on lower prices could be exposed to heavy losses. "You can talk about fundamental explanations, strong car sales, a reduction in supply from Russia, but those didn't happen overnight," Macquarie analyst Matthew Turner said. Oil prices slipped for a second straight day as top producer Saudi Arabia revealed its output hit a record 10.67 million barrels per day last month. It came after data had also shown a surprise US crude stockpile build. Brent futures fell as much as 1.5 per cent to $44.30 per barrel before recovering to $44.95. US crude also slipped 0.4 per cent to $42.62, extending Tuesday's 0.6 per cent decline. Emerging market stocks showed little reaction to the crude moves as they rose for a fifth straight day with many EM currencies also strengthening following the dollar's sell-off. MSCI's emerging market index hit a new one-year high as gains across Asia and other markets such as Greece and the Czech Republic helped extend its rise this month to over 3.5 per cent. (Reuters)

World stocks hit 1-year high as US data saps dollar, bond yields

Electric vehicle charging companies are calling for independent oversight of the $2 billion Volkswagen AG&nbsp;is required to invest in clean car infrastructure, saying Volkswagen should not have the power to shape the nascent electric car charging space.&nbsp; 
 
The German automaker agreed to invest the money, which includes $1.2 billion nationally and $800 million in California, as part of its penalties for equipping hundreds of thousands of its diesel vehicles sold in the United States with software designed to cheat tailpipe emissions tests.&nbsp; 
 
While charging station companies called the money a potential &quot;game changer,&quot; they worry that if it is misspent, it could hurt competition. 
 
&quot;The agreement shouldn`t pick winners and losers, especially given that this emerging market transition will in no small part define 21st century transportation,&quot; twenty eight companies, including ChargePoint, EV Connect and Electric Vehicle Charging Association, said in a letter to the US Justice Department on Friday.&nbsp; 
 
The letter, seen by Reuters on Tuesday, said an independent administrator is key to ensuring that the programme treats all industry participants, regardless of business model and technology, fairly. 
 
Volkswagen did not immediately respond to a request for comment. 
 
&quot;The programme should be structured to benefit drivers in California and across the nation, not enable the settling defendants to enter or influence the markets for (zero emission vehicle) charging and fuelling equipment and services,&quot; the letter said. 
 
It said regulators should earmark some of the funds for a rebate programme to incentivize employers, apartment owners, workplaces and other facility managers who want to install EV charging stations.&nbsp; 
 
A shortage of charging stations at workplaces and multi-unit apartment dwellings is seen as a key hurdle to the widespread adoption of electric vehicles.&nbsp; 
 
VW`s plan for spending the $2 billion, which has yet to be released, will be overseen by the California Air Resources Board and the US Environmental Protection Agency. 
 
(Reuters)

While charging station companies called the money a potential 'game changer', they worry that if it is misspent, it could hurt competition

Electric vehicle charging companies are calling for independent oversight of the $2 billion Volkswagen AG is required to invest in clean car infrastructure, saying Volkswagen should not have the power to shape the nascent electric car charging space. The German automaker agreed to invest the money, which includes $1.2 billion nationally and $800 million in California, as part of its penalties for equipping hundreds of thousands of its diesel vehicles sold in the United States with software designed to cheat tailpipe emissions tests. While charging station companies called the money a potential "game changer," they worry that if it is misspent, it could hurt competition. "The agreement shouldn`t pick winners and losers, especially given that this emerging market transition will in no small part define 21st century transportation," twenty eight companies, including ChargePoint, EV Connect and Electric Vehicle Charging Association, said in a letter to the US Justice Department on Friday. The letter, seen by Reuters on Tuesday, said an independent administrator is key to ensuring that the programme treats all industry participants, regardless of business model and technology, fairly. Volkswagen did not immediately respond to a request for comment. "The programme should be structured to benefit drivers in California and across the nation, not enable the settling defendants to enter or influence the markets for (zero emission vehicle) charging and fuelling equipment and services," the letter said. It said regulators should earmark some of the funds for a rebate programme to incentivize employers, apartment owners, workplaces and other facility managers who want to install EV charging stations. A shortage of charging stations at workplaces and multi-unit apartment dwellings is seen as a key hurdle to the widespread adoption of electric vehicles. VW`s plan for spending the $2 billion, which has yet to be released, will be overseen by the California Air Resources Board and the US Environmental Protection Agency. (Reuters)

Electric car charging station companies issue warning over Volkswagen settlement

Terming political attacks on him as abominable, outgoing Reserve Bank of India governor Raghuram Rajan today said he was open to staying a bit longer to complete the unfinished work of bank clean-up, but is perfectly happy to go. 
 
Rajan, who had in June decided against seeking a second term after 3-year tenure which ends next month, said the process of dialogue with the government did not reach a stage where he could have agreed to stay on. 
 
He said however that he was never worried about reappointment or a future career in government and did his best in the interest of the country and he was the &quot;best team player&quot;. 
 
Rajan, who plans to return to academia after his term ends on September 4, said his stays at university made him &quot;pretty thick skinned&quot;, but the attacks then were not abominable. 
 
&quot;Some of these (recent) attacks were abominable, that is imputing sort of motives, alleging things completely without any basis,&quot; he told CNBC-TV18, adding that he put them aside and did not pay any attention to them. 
 
Towards the end of his three-year tenure, Rajan faced personal attacks from BJP MP Subramanian Swamy who had alleged that the former IMF chief economist was not &quot;mentally not fully Indian&quot; and sent confidential and sensitive financial information abroad. 
 
Rajan said when people asked him if he was open to the second term, he said that although he had structured all his initiatives at RBI with a three-year horizon, there was some unfinished work like PSU banks&#39; balance sheet clean-up and setting up of monetary policy committee framework. 
 
&quot;That does not mean in any way, that I was absolutely hell bent on having a second term,&quot; he said. &quot;I was open for staying a little while longer to see them complete, but at the same time I was perfectly happy to go.&quot; 
 
Rajan said 90-95 per cent of the job that he had taken on was complete and he had absolute freedom in doing his work. 
 
On his future plans, he said: &quot;I have said again and again, I am fundamentally an academician. This (RBI Governor) is my side job&quot;.&nbsp; 
 
Asked if crony capitalists had a hand in his not getting an extension, Rajan said: &quot;I don&#39;t think you should attribute this to some hidden hand. I feel, I have done what was needed to be done, if they had such power they would have stopped me (from doing) what was needed.&quot; 
 
Stressing that he had absolute freedom in doing, whatever he wanted to do, Rajan said this required lots of work behind the scenes, with government and persuading government. 
 
&quot;So when people say you have been fighting all the time, absolutely not. Great relationship with previous government as well&nbsp;as people who matter in this government,&quot; he said. 
 
Rajan said legitimate criticism like focusing too much on inflation can be addressed and he has tried to convince public about his stand through his speeches. 
 
Stating that the country needs institutional reform to build a platform for strong and sustainable growth, Rajan cautioned against inflationary spiral in trying to push domestic demand-led growth. 
 
&quot;I keep saying, it is a no brainer to generate growth when the rest of the world is growing strong; when it is export-led growth, you don&#39;t need institutional change,&quot; he said. 
 
Stressing that RBI is an entity which has conservative approach as focuses on stability, Rajan said that in taking decisions he did not worry about his future career prospects. 
 
&quot;Wherever we had to say &#39;no&#39;, I have never worried about reappointment, or about whether I will have a future career in the government or anywhere else. I have said &#39;no&#39; when I think it is in the best interest of the country and I think in that way, I am being the best team player that I can possibly be. 
 
&quot;If I go along just for being comfortable, I think we will be building risk for the future which will really hurt the country,&quot; he said. 
Asked if his talking straight attitude went against him, Rajan said: &quot;I am not going to speculate, I think the bottom line is there was no consensus and that&#39;s where it stopped&quot;. 
 
He said after three-and-a-half years at IMF and four years in India, he did not want to label himself as a career bureaucrat, or a career technocrat. 
 
&quot;It is more where I can implement ideas, implement reform programme. This was absolutely a job I wanted to have, we worked together as a team in the RBI, we had a fantastic team and we made a&nbsp;great deal of difference. Did I come in with three years (in mind)? Yes absolutely... I am not saying I had in mind full stop at the end of it. But everything I wanted to do was structured for a three-year horizon,&quot; he said. 
 
(PTI)

Rajan, who decided against a second term, said dialogue with the government did not reach a stage where he could have agreed to stay on

Terming political attacks on him as abominable, outgoing Reserve Bank of India governor Raghuram Rajan today said he was open to staying a bit longer to complete the unfinished work of bank clean-up, but is perfectly happy to go. Rajan, who had in June decided against seeking a second term after 3-year tenure which ends next month, said the process of dialogue with the government did not reach a stage where he could have agreed to stay on. He said however that he was never worried about reappointment or a future career in government and did his best in the interest of the country and he was the "best team player". Rajan, who plans to return to academia after his term ends on September 4, said his stays at university made him "pretty thick skinned", but the attacks then were not abominable. "Some of these (recent) attacks were abominable, that is imputing sort of motives, alleging things completely without any basis," he told CNBC-TV18, adding that he put them aside and did not pay any attention to them. Towards the end of his three-year tenure, Rajan faced personal attacks from BJP MP Subramanian Swamy who had alleged that the former IMF chief economist was not "mentally not fully Indian" and sent confidential and sensitive financial information abroad. Rajan said when people asked him if he was open to the second term, he said that although he had structured all his initiatives at RBI with a three-year horizon, there was some unfinished work like PSU banks' balance sheet clean-up and setting up of monetary policy committee framework. "That does not mean in any way, that I was absolutely hell bent on having a second term," he said. "I was open for staying a little while longer to see them complete, but at the same time I was perfectly happy to go." Rajan said 90-95 per cent of the job that he had taken on was complete and he had absolute freedom in doing his work. On his future plans, he said: "I have said again and again, I am fundamentally an academician. This (RBI Governor) is my side job". Asked if crony capitalists had a hand in his not getting an extension, Rajan said: "I don't think you should attribute this to some hidden hand. I feel, I have done what was needed to be done, if they had such power they would have stopped me (from doing) what was needed." Stressing that he had absolute freedom in doing, whatever he wanted to do, Rajan said this required lots of work behind the scenes, with government and persuading government. "So when people say you have been fighting all the time, absolutely not. Great relationship with previous government as well as people who matter in this government," he said. Rajan said legitimate criticism like focusing too much on inflation can be addressed and he has tried to convince public about his stand through his speeches. Stating that the country needs institutional reform to build a platform for strong and sustainable growth, Rajan cautioned against inflationary spiral in trying to push domestic demand-led growth. "I keep saying, it is a no brainer to generate growth when the rest of the world is growing strong; when it is export-led growth, you don't need institutional change," he said. Stressing that RBI is an entity which has conservative approach as focuses on stability, Rajan said that in taking decisions he did not worry about his future career prospects. "Wherever we had to say 'no', I have never worried about reappointment, or about whether I will have a future career in the government or anywhere else. I have said 'no' when I think it is in the best interest of the country and I think in that way, I am being the best team player that I can possibly be. "If I go along just for being comfortable, I think we will be building risk for the future which will really hurt the country," he said. Asked if his talking straight attitude went against him, Rajan said: "I am not going to speculate, I think the bottom line is there was no consensus and that's where it stopped". He said after three-and-a-half years at IMF and four years in India, he did not want to label himself as a career bureaucrat, or a career technocrat. "It is more where I can implement ideas, implement reform programme. This was absolutely a job I wanted to have, we worked together as a team in the RBI, we had a fantastic team and we made a great deal of difference. Did I come in with three years (in mind)? Yes absolutely... I am not saying I had in mind full stop at the end of it. But everything I wanted to do was structured for a three-year horizon," he said. (PTI)

Rajan says he was open to extension, attacks on him were 'abominable'

China&#39;s factory price deflation moderated further in July, with prices falling at their slowest pace in two years, taking pressure off the central bank to cut rates as policymakers turn their focus to structural reforms and ballooning credit. 
 
A government-led building spree has increased demand for construction materials, but higher prices are also due in part to speculation in China&#39;s commodities futures market, which has pushed up Shanghai rebar futures up by 50 per cent this year.&nbsp; 
 
The producer price index (PPI) fell 1.7 per cent in July from a year ago, the National Bureau of Statistics said today, smaller than June&#39;s 2.6 per cent decline. Analysts expect producer price inflation to turn positive this year for the first time in more than four years, but the recovery at the factory gate is unlikely to lead to a rebound in private investment, which has fallen to record low growth rates. 
 
&quot;The improvement of PPI should benefit the corporate sector&#39;s profitability, but is unlikely to encourage private sector investment, as the main beneficiaries are heavy industries &ndash; which are dominated by state-owned enterprises,&quot; said ANZ economists in a note. 
 
Non-ferrous metals prices rose 2.8 per cent month-on-month in July, while steel prices increased 0.4 per cent.&nbsp; 
 
Downstream prices, however, remained subdued in July with the consumer price inflation accelerating at its weakest pace in six months as food price gains slowed. 
 
The consumer price index (CPI) rose 1.8 per cent in July from a year earlier, compared with a 1.9 per cent increase in June, and matching this year`s low hit in January. Analysts polled by Reuters had expected a 1.8 per cent gain. 
 
Consumer inflation has remained well below China&#39;s official target of around three&nbsp;per cent in 2016, despite concerns that severe summer flooding, which has disrupted public infrastructure and agricultural production, would increase inflationary pressures. 
 
Food prices continued to moderate, rising 3.3 per cent in July compared with a 4.6 per cent gain in June. Prices of pork rose only 16.1 per cent versus a 30.1 pe rcent increase in June as demand for the Chinese staple meat continued to cool from peaks hit earlier this year. 
 
Non-food inflation, however, rose 1.4 per cent, compared with June&#39;s 1.2 per cent gain.&nbsp; 
 
Healthcare costs rose 4.3 per cent year-on-year in July, up from a 3.8 per cent gain in June, which Merchants Securities economist Yan Ling in Shenzhen said reflects a wider improvement in demand for such products. 
 
Similarly, rises in other price categories showed increasing demand for a wider range of consumer goods and services including horticulture, pet care, and retirement services, Yan said. 
 
Low inflation means Beijing has room to loosen monetary policy if needed, but policymakers appear to have disparate views over how much stimulus is needed to stoke economic growth, if any, and what form it should take. 
 
However, strengthening producer prices mean there is likely less need to ease in the short-term, analysts say. China&#39;s central bank has not adjusted interest rates since October 2015. 
 
&quot;Policymakers are likely to focus their attention on more pressing issues, such as addressing credit risks and structural imbalances,&quot; Julian Evans-Pritchard at Capital Economics said in a note.&nbsp; 
 
(Reuters)

Analysts expect producer price inflation to turn positive this year for the first time in more than four years

China's factory price deflation moderated further in July, with prices falling at their slowest pace in two years, taking pressure off the central bank to cut rates as policymakers turn their focus to structural reforms and ballooning credit. A government-led building spree has increased demand for construction materials, but higher prices are also due in part to speculation in China's commodities futures market, which has pushed up Shanghai rebar futures up by 50 per cent this year. The producer price index (PPI) fell 1.7 per cent in July from a year ago, the National Bureau of Statistics said today, smaller than June's 2.6 per cent decline. Analysts expect producer price inflation to turn positive this year for the first time in more than four years, but the recovery at the factory gate is unlikely to lead to a rebound in private investment, which has fallen to record low growth rates. "The improvement of PPI should benefit the corporate sector's profitability, but is unlikely to encourage private sector investment, as the main beneficiaries are heavy industries – which are dominated by state-owned enterprises," said ANZ economists in a note. Non-ferrous metals prices rose 2.8 per cent month-on-month in July, while steel prices increased 0.4 per cent. Downstream prices, however, remained subdued in July with the consumer price inflation accelerating at its weakest pace in six months as food price gains slowed. The consumer price index (CPI) rose 1.8 per cent in July from a year earlier, compared with a 1.9 per cent increase in June, and matching this year`s low hit in January. Analysts polled by Reuters had expected a 1.8 per cent gain. Consumer inflation has remained well below China's official target of around three per cent in 2016, despite concerns that severe summer flooding, which has disrupted public infrastructure and agricultural production, would increase inflationary pressures. Food prices continued to moderate, rising 3.3 per cent in July compared with a 4.6 per cent gain in June. Prices of pork rose only 16.1 per cent versus a 30.1 pe rcent increase in June as demand for the Chinese staple meat continued to cool from peaks hit earlier this year. Non-food inflation, however, rose 1.4 per cent, compared with June's 1.2 per cent gain. Healthcare costs rose 4.3 per cent year-on-year in July, up from a 3.8 per cent gain in June, which Merchants Securities economist Yan Ling in Shenzhen said reflects a wider improvement in demand for such products. Similarly, rises in other price categories showed increasing demand for a wider range of consumer goods and services including horticulture, pet care, and retirement services, Yan said. Low inflation means Beijing has room to loosen monetary policy if needed, but policymakers appear to have disparate views over how much stimulus is needed to stoke economic growth, if any, and what form it should take. However, strengthening producer prices mean there is likely less need to ease in the short-term, analysts say. China's central bank has not adjusted interest rates since October 2015. "Policymakers are likely to focus their attention on more pressing issues, such as addressing credit risks and structural imbalances," Julian Evans-Pritchard at Capital Economics said in a note. (Reuters)

China's slowing wholesale deflation takes pressure off central bank

Foodpanda has become profitable in two of its three operating regions, Central and East Europe, and the Middle East, with profits in Asia a function of how quickly it can grab market share, its chief executive said today. 
 
The emerging markets food delivery specialist said it had become profitable in the Middle East after agreeing to a deal to merge its Hellofood business in Saudi Arabia with Saudi delivery firm Hunger Station.&nbsp; 
 
The combined operation will serve 1 million active customers and 2,000 restaurants across 30 cities in the largest Gulf state. It also runs food delivery services in Egypt as Otlob and in the United Arab Emirates as 24h.ae. 
 
Foodpanda, 49 per cent owned by Berlin-based e-commerce investor Rocket Internet , turned profitable in its nine-country Central and Eastern Europe region earlier this year, the company said. 
 
The global food delivery market is consolidating quickly through acquisitions and asset swaps and as an investment in new start-ups has fallen sharply in the past year. Companies such as Foodpanda are under pressure to produce profits instead of chasing growth at any cost as consumers are increasingly shifting to on-demand food delivery ordered via mobile phones. 
 
&quot;We are profitable in two of our three broad regions,&quot; said Ralf Wenzel, co-founder, and chief executive of four-year-old Foodpanda group. &quot;In Asia, we are focused on improving market share&quot;. 
&nbsp; 
Company-wide, adjusted earnings before interest, taxes, and depreciation, including stock-based compensation, improved to a loss of 13.0 million Euros ($14.40 million) from a loss of 18.7 million Euros a year earlier, Rocket reported in late May.&nbsp; 
 
Foodpanda is market leader in 23 of the 24 markets in which it operates and is working to win more customers to its mobile phone-based delivery service in each market, Wenzel said. 
 
&quot;Over the next couple of months we will turn break-even and then profitable in the first Southeast Asian countries,&quot; Wenzel said. 
&quot;For us, it has become just a matter of scale as we have positive gross margins in all of our countries and positive unit economics. It only becomes a question of the number of orders before we become profitable&quot;.&nbsp; 
 
(Reuters)

'The food delivery app, market leader in 23 of 24 markets where it operates, pursues to win more customers for mobile-phone based delivery'

Foodpanda has become profitable in two of its three operating regions, Central and East Europe, and the Middle East, with profits in Asia a function of how quickly it can grab market share, its chief executive said today. The emerging markets food delivery specialist said it had become profitable in the Middle East after agreeing to a deal to merge its Hellofood business in Saudi Arabia with Saudi delivery firm Hunger Station. The combined operation will serve 1 million active customers and 2,000 restaurants across 30 cities in the largest Gulf state. It also runs food delivery services in Egypt as Otlob and in the United Arab Emirates as 24h.ae. Foodpanda, 49 per cent owned by Berlin-based e-commerce investor Rocket Internet , turned profitable in its nine-country Central and Eastern Europe region earlier this year, the company said. The global food delivery market is consolidating quickly through acquisitions and asset swaps and as an investment in new start-ups has fallen sharply in the past year. Companies such as Foodpanda are under pressure to produce profits instead of chasing growth at any cost as consumers are increasingly shifting to on-demand food delivery ordered via mobile phones. "We are profitable in two of our three broad regions," said Ralf Wenzel, co-founder, and chief executive of four-year-old Foodpanda group. "In Asia, we are focused on improving market share". Company-wide, adjusted earnings before interest, taxes, and depreciation, including stock-based compensation, improved to a loss of 13.0 million Euros ($14.40 million) from a loss of 18.7 million Euros a year earlier, Rocket reported in late May. Foodpanda is market leader in 23 of the 24 markets in which it operates and is working to win more customers to its mobile phone-based delivery service in each market, Wenzel said. "Over the next couple of months we will turn break-even and then profitable in the first Southeast Asian countries," Wenzel said. "For us, it has become just a matter of scale as we have positive gross margins in all of our countries and positive unit economics. It only becomes a question of the number of orders before we become profitable". (Reuters)

Rocket-supported Foodpanda turns profitable in two out of three regions globally

Crude prices fell today as continued worries over a global oil glut and profit-taking on gains of nearly 3 per cent from the previous session beat down upwards momentum from a possible meeting of oil producers.&nbsp; 
 
Venezuelan Oil Minister Eulogio del Pino said on Monday that a meeting between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries may take place &quot;in the coming weeks&quot; as the crisis-stricken South American nation sought support to prop up weak oil markets.&nbsp; 
 
Some OPEC officials have said a global oil output freeze could be discussed at an already scheduled September meeting of the organization, but non-OPEC Russia, the world&#39;s largest oil producer, said it does not see any grounds for holding production at current levels.&nbsp; 
 
Since the plunge in oil prices that began in mid-2014, Venezuela has repeatedly tried to broker deals to freeze production and reduce a supply glut, with limited success.&nbsp; 
 
&quot;Crude prices have been rising, so there may be no deal at OPEC,&quot; Kaname Gokon at brokerage Okato Shoji in Tokyo. &quot;Russia seems to be keeping a distance from OPEC.&quot;&nbsp; 
 
London Brent crude for October delivery was down 30 cents at $45.09 a barrel by 0608 GMT, after settling up $1.12, or 2.5 per cent, on Monday. After falling nearly 15 per cent in July, Brent prices so far this month are up about 6 per cent.&nbsp; 
 
NYMEX crude for September delivery was down 28 cents at $42.74 a barrel, after closing up $1.22, or 2.9 per cent, on Monday. The US benchmark lost about 14 per cent last month and is up about 2.5 per cent in August.&nbsp; 
 
Qatar&#39;s Energy Minister and OPEC President Mohammad bin Saleh al-Sada said on Monday the oil market is on the path to rebalancing despite the recent decline in global oil prices, adding that OPEC was in continuous talks to stabilise the market.&nbsp; 
 
Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to August 5 traders said, even as analysts forecast in a Reuters poll a total U.S. crude inventory drop of 1 million barrels. 
 
Industry group the American Petroleum Institute is due to release its weekly oil data at 4:30 pm EDT (2030 GMT) later on Tuesday.&nbsp; 
 
(Reuters) 
&nbsp;

Non-OPEC Russia, the world's largest oil producer, said it does not see any grounds for holding production at current levels

Crude prices fell today as continued worries over a global oil glut and profit-taking on gains of nearly 3 per cent from the previous session beat down upwards momentum from a possible meeting of oil producers. Venezuelan Oil Minister Eulogio del Pino said on Monday that a meeting between the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC countries may take place "in the coming weeks" as the crisis-stricken South American nation sought support to prop up weak oil markets. Some OPEC officials have said a global oil output freeze could be discussed at an already scheduled September meeting of the organization, but non-OPEC Russia, the world's largest oil producer, said it does not see any grounds for holding production at current levels. Since the plunge in oil prices that began in mid-2014, Venezuela has repeatedly tried to broker deals to freeze production and reduce a supply glut, with limited success. "Crude prices have been rising, so there may be no deal at OPEC," Kaname Gokon at brokerage Okato Shoji in Tokyo. "Russia seems to be keeping a distance from OPEC." London Brent crude for October delivery was down 30 cents at $45.09 a barrel by 0608 GMT, after settling up $1.12, or 2.5 per cent, on Monday. After falling nearly 15 per cent in July, Brent prices so far this month are up about 6 per cent. NYMEX crude for September delivery was down 28 cents at $42.74 a barrel, after closing up $1.22, or 2.9 per cent, on Monday. The US benchmark lost about 14 per cent last month and is up about 2.5 per cent in August. Qatar's Energy Minister and OPEC President Mohammad bin Saleh al-Sada said on Monday the oil market is on the path to rebalancing despite the recent decline in global oil prices, adding that OPEC was in continuous talks to stabilise the market. Market intelligence firm Genscape reported a build of more than 307,000 barrels at the Cushing, Oklahoma delivery hub for WTI futures in the week to August 5 traders said, even as analysts forecast in a Reuters poll a total U.S. crude inventory drop of 1 million barrels. Industry group the American Petroleum Institute is due to release its weekly oil data at 4:30 pm EDT (2030 GMT) later on Tuesday. (Reuters)

Oil falls as glut, profit-taking beat back optimism over OPEC meet

Wal-Mart Stores Inc , vying to better challenge Amazon.com Inc , will pay about $3 billion for internet retailer Jet.com and its innovative pricing software in the largest-ever deal for an e-commerce startup. 
 
The deal disclosed on Monday follows a five-year e-commerce acquisition spree in which Wal-Mart, the world&#39;s biggest traditional retailer, has already bought 15 startups, seeking the talent and technology to make it a dominant player online and narrow the massive gap with market leader Amazon. 
 
Wal-Mart&#39;s online division has underperformed against Amazon, posting its slowest growth in a year in the first quarter as it struggled to gain traction with consumers, especially millennials. 
 
Jet.com was launched by internet entrepreneur Marc Lore in July 2015 and includes software that can offer a customer lower prices as they add items to their shopping cart. 
 
Wal-Mart has said it would integrate that software into its main website while keeping Jet.com as a separate entity. 
 
&quot;One of the things we really like (about Jet) is that the customer is even more in-charge of the price that they pay,&quot; Chief Executive Doug McMillon said on a media call. 
 
McMillon said Wal-Mart will take time in getting the technology and design components from Jet and that they will grow both brands separately in the short-term. 
 
&quot;Over time, piece-by-piece, we will end up running a business that is simpler and not completely independent.&quot; 
 
McMillon said Lore would run its new US&nbsp;e-commerce business. Lore had cofounded Quidsi, the owner of sites like Diapers.com and Soap.com, which was sold to Amazon. 
 
&quot;Marc&#39;s e-commerce experience and success are obviously attractive,&quot; McMillon said. 
 
Wal-Mart&#39;s current head of global e-commerce Neil Ashe will leave the company at the end of the fiscal year. 
 
The decision to run Jet as an independent website is a good step because it can stay focused on growth, but the price Wal-Mart paid is high, UBS retail analyst Michael Lasser said in a note to clients. 
 
Wal-Mart said it would pay around $3 billion in cash and $300 million in shares for Jet, with some of that paid over time. Given Jet`s revenue of about $500 million, the cash purchase price represents six times Jet&#39;s revenue, according to analysts. 
 
Moody&#39;s retail analyst Charlie O`Shea said the acquisition gives Wal-Mart a leg-up on competitors in the race to be the No. 2 online retailer, citing the size of Jet.com`s online offerings and number of customers. Wal-Mart said Jet has added nearly 400,000 new shoppers monthly. 
 
&quot;The impact on Amazon will be fairly benign. However, this acquisition, in tandem with its joint-venture in China with JD.com, demonstrates that Walmart is attacking online retail with significant zeal,&quot; he said. 
 
In June, Wal-Mart said it sold its Chinese online grocery store in return for a stake in JD.com Inc, China&#39;s 2 e-commerce firm.&nbsp; 
 
Billions spent on online efforts 
 
Wal-Mart&#39;s first-quarter online sales grew 7 per cent, a weaker rate than any of the four quarters just before that. In 2015, Wal-Mart`s online sales rose 12.3 per cent to $13.7 billion, compared with a 16 per cent jump to $92.4 billion for Amazon.com. 
 
Wal-Mart has not said what it spent on acquisitions, but prior to the Jet.com deal it disclosed a total of $3.1 billion for e-commerce and digital projects, such as its platform and new warehouses, in the four fiscal years to January 2017. 
 
The deal should give Wal-Mart the scale to bolster its online presence, broaden its assortment of goods and offer the lowest prices at the same time, analysts said. 
 
Wal-Mart noted Jet has offered 12 million items in its first year of operation.&nbsp; 
 
Wal-Mart has said previously it wants to expand its online selection from around 10 million items to the tens of millions over the next few years. Rival Amazon has more than 200 million items for sale online. 
 
(Reuters)

Wal-Mart said it would pay around $3 billion in cash and $300 million in shares for Jet, with some of that paid over time

Wal-Mart Stores Inc , vying to better challenge Amazon.com Inc , will pay about $3 billion for internet retailer Jet.com and its innovative pricing software in the largest-ever deal for an e-commerce startup. The deal disclosed on Monday follows a five-year e-commerce acquisition spree in which Wal-Mart, the world's biggest traditional retailer, has already bought 15 startups, seeking the talent and technology to make it a dominant player online and narrow the massive gap with market leader Amazon. Wal-Mart's online division has underperformed against Amazon, posting its slowest growth in a year in the first quarter as it struggled to gain traction with consumers, especially millennials. Jet.com was launched by internet entrepreneur Marc Lore in July 2015 and includes software that can offer a customer lower prices as they add items to their shopping cart. Wal-Mart has said it would integrate that software into its main website while keeping Jet.com as a separate entity. "One of the things we really like (about Jet) is that the customer is even more in-charge of the price that they pay," Chief Executive Doug McMillon said on a media call. McMillon said Wal-Mart will take time in getting the technology and design components from Jet and that they will grow both brands separately in the short-term. "Over time, piece-by-piece, we will end up running a business that is simpler and not completely independent." McMillon said Lore would run its new US e-commerce business. Lore had cofounded Quidsi, the owner of sites like Diapers.com and Soap.com, which was sold to Amazon. "Marc's e-commerce experience and success are obviously attractive," McMillon said. Wal-Mart's current head of global e-commerce Neil Ashe will leave the company at the end of the fiscal year. The decision to run Jet as an independent website is a good step because it can stay focused on growth, but the price Wal-Mart paid is high, UBS retail analyst Michael Lasser said in a note to clients. Wal-Mart said it would pay around $3 billion in cash and $300 million in shares for Jet, with some of that paid over time. Given Jet`s revenue of about $500 million, the cash purchase price represents six times Jet's revenue, according to analysts. Moody's retail analyst Charlie O`Shea said the acquisition gives Wal-Mart a leg-up on competitors in the race to be the No. 2 online retailer, citing the size of Jet.com`s online offerings and number of customers. Wal-Mart said Jet has added nearly 400,000 new shoppers monthly. "The impact on Amazon will be fairly benign. However, this acquisition, in tandem with its joint-venture in China with JD.com, demonstrates that Walmart is attacking online retail with significant zeal," he said. In June, Wal-Mart said it sold its Chinese online grocery store in return for a stake in JD.com Inc, China's 2 e-commerce firm. Billions spent on online efforts Wal-Mart's first-quarter online sales grew 7 per cent, a weaker rate than any of the four quarters just before that. In 2015, Wal-Mart`s online sales rose 12.3 per cent to $13.7 billion, compared with a 16 per cent jump to $92.4 billion for Amazon.com. Wal-Mart has not said what it spent on acquisitions, but prior to the Jet.com deal it disclosed a total of $3.1 billion for e-commerce and digital projects, such as its platform and new warehouses, in the four fiscal years to January 2017. The deal should give Wal-Mart the scale to bolster its online presence, broaden its assortment of goods and offer the lowest prices at the same time, analysts said. Wal-Mart noted Jet has offered 12 million items in its first year of operation. Wal-Mart has said previously it wants to expand its online selection from around 10 million items to the tens of millions over the next few years. Rival Amazon has more than 200 million items for sale online. (Reuters)

Wal-Mart buying Jet.com to lift online sales, battle Amazon

Apple on Tuesday rejected allegations from Russia&#39;s state competition watchdog it may have been involved in fixing prices for iPhones, saying resellers set their own prices. 
 
Apple reacted a day after Russia&#39;s Federal Anti-Monopoly Service (FAS) said it had opened a case into the allegations after a consumer had pointed out that identical prices had been set for iPhone 6s and iPhone 6s Plus models, which appeared in Russia in October 2015, at 16 major resellers. 
 
Apple, in emailed comments, said it did not oblige Russian resellers to fix prices for its products. 
 
&quot;Resellers set their own prices for the Apple products they sell in Russia and around the world,&quot; the company&#39;s press office said. 
 
FAS said it was looking into the idea that Apple had somehow obliged Russian resellers to treat its recommended product prices as mandatory. It said an investigation had shown that retailers had set identical prices and kept them at that level for a certain time period, including for other models. 
 
FAS has the power to fine firms it finds guilty of price-fixing. 
 
(Reuters)

The Russian state watchdog had opened a case after a consumer pointed out identical prices had been set for the 6s and 6s Plus models

Apple on Tuesday rejected allegations from Russia's state competition watchdog it may have been involved in fixing prices for iPhones, saying resellers set their own prices. Apple reacted a day after Russia's Federal Anti-Monopoly Service (FAS) said it had opened a case into the allegations after a consumer had pointed out that identical prices had been set for iPhone 6s and iPhone 6s Plus models, which appeared in Russia in October 2015, at 16 major resellers. Apple, in emailed comments, said it did not oblige Russian resellers to fix prices for its products. "Resellers set their own prices for the Apple products they sell in Russia and around the world," the company's press office said. FAS said it was looking into the idea that Apple had somehow obliged Russian resellers to treat its recommended product prices as mandatory. It said an investigation had shown that retailers had set identical prices and kept them at that level for a certain time period, including for other models. FAS has the power to fine firms it finds guilty of price-fixing. (Reuters)

Apple dismisses iPhone price-fixing allegations in Russia

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. 
 
Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. 
 
&quot;Today, it seems like whatever oil does, equities will follow,&quot; said Peter Cardillo, chief market economist at First Standard Financial in New York. 
 
The S&amp;P 500 index&#39;s technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&amp;P and the Nasdaq. 
 
Microchip Tech soared 9.4 per cent to $61.980 after the company&#39;s first-quarter revenue beat analysts&#39; estimate. 
 
A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. 
 
At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. 
 
The S&amp;P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. 
 
The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. 
 
Seven of the 10 major S&amp;P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. 
 
Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. 
 
Endo International surged 10.5 per cent to $20.12 after the drugmaker&#39;s second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&amp;P 500 companies. 
 
Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. 
 
The S&amp;P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. 
 
(Reuters)

Oil edged further above $45 on estimates of a drop in US inventories

US stocks traded near record highs today morning as a rise in technology stocks added to the lift from steadying oil prices. Oil edged further above $45 on estimates of a drop in US inventories and speculation of producer action to freeze output. "Today, it seems like whatever oil does, equities will follow," said Peter Cardillo, chief market economist at First Standard Financial in New York. The S&P 500 index's technology index rose 0.17 per cent, helped by gains in Cisco, which rose 0.7 per cent after Citigroup raised its price target. The stock gave the biggest boost to the S&P and the Nasdaq. Microchip Tech soared 9.4 per cent to $61.980 after the company's first-quarter revenue beat analysts' estimate. A forecast-beating payrolls report on Friday has helped bring back some of the risk-on mode in the markets. Safe havens gold and the Japanese yen were lower today. At 9.42 a.m. ET (1342 GMT), the Dow Jones Industrial Average was up 29.2 points, or 0.16 per cent, at 18,558.49. The S&P 500 was up 2.26 points, or 0.1 per cent, at 2,183.15, just 2 points shy of its 2,185.44 record high. The Nasdaq Composite was up 9.67 points, or 0.19 per cent, at 5,222.81. Seven of the 10 major S&P 500 indexes were higher, led by a 0.28 per cent rise in the materials sector. Valeant jumped 11.67 per cent after the company maintained its full-year forecast and said it was evaluating alternatives for its non-core business and geographies. Endo International surged 10.5 per cent to $20.12 after the drugmaker's second-quarter revenue and profit beat estimates. The stock was the top percentage gainer among S&P 500 companies. Advancing issues outnumbered decliners on the NYSE by 1,583 to 1,039. On the Nasdaq, 1,393 issues rose and 908 fell. The S&P 500 index showed 18 new 52-week highs and no new lows, while the Nasdaq recorded 41 new highs and eight new lows. (Reuters)

Wall Street near record highs as oil, tech stocks lift

The Reserve Bank of India (RB) left key policy rates unchanged, mostly on the back of rising inflation, which has been above the 5 per cent level in May and June, with eyes on the impact of the 7th Pay Commission payout and the monsoon. 
 
While the move was largely in line with the expectations put forth by experts, bankers and the markets, this was also RBI Governor Raghuram Rajan&#39;s last monetary policy review. Rajan will be stepping down from the RBI chair on September 4 when his term comes to an end. 
 
In the customary post-policy interaction with the media, Rajan, while answering the questions posed to him, left messages for the public, his critics and supporters, and talked about the RBI job and his future plans. 
 
On RBI job 
 
&quot;This has been a fantastic job. I have enjoyed every minute of it because everyday my RBI colleagues and I sit and work, we manage to move the needle a little bit everyday...there are very few places you can do this. So it has been fantastic. I hope there&#39;s some value add,&quot; he asserted.&nbsp; 
 
 
Advise to successor 
 
&quot;I don&#39;t advise my successors,&quot; Rajan said. 
 
Answering a question whether his successor will be pressurised to cut rates and sharply soon, the out-going Governor said, &quot;the next decision will be made by the monetary policy committee. There will be six people deciding the interest rates path. So it will be an independent decision.&quot; 
 
To his critics and supporters 
 
&quot;I have nothing to say to my critics. At the end of the day (what matters is) do you feel like you have made a useful contribution, are some people are better because of it? There are times I get notes in a plane saying thank you for what you&#39;re doing,&quot; he said. 
 
&quot;The snap judgements by critics or supporters don&#39;t matter. What matters is what plays out the long run -- sustainable growth of the country, job creation, movement to middle income economy,&quot; Rajan added. 
 
Rajan&#39;s message to the public 
 
The RBI will be rolling out a &#39;public awareness and consumer protection campaign&#39; very soon. Highlighting the campaign, Rajan said that there are two main pain points for bank customers and banks
<ul>
	<li>Meeting Know Your Customer (KYC) rules:&nbsp;Rajan said, while the KYC rules have been largely simplified, there may be instances that the local bank branch may not be aware of the changes made by the RBI. To simplify this, the RBI has added a FAQ (Frequently Asked Questions) tab on its website on the morning of August 9, to intimate the customer and the bank branches of the changes made to KYC norms.This includes all the guidelines currently in place to fulfil the KYC norms needed to open and maintain a bank account. A complete list of 24 questions with further links, have been provided by the central bank.</li>
</ul>
While speaking at the conference, Rajan said, according to the revised KYC norms, it&#39;s not necessary to physically go to the bank to get your address changed if you move houses. Your new address can be self certified but the bank branch may not be aware. You can show them the KYC guidelines of RBI&#39;s website, he said.

<ul>
	<li>Rajan&#39;s second warning on fraudulent e-mails in his name:&nbsp;The outgoing RBI chief warned the public about responding or paying service fees to e-mails (or senders) that are sent in his name or any future RBI Governor&#39;s name, promising a huge sum of money, in exchange of a small fee. &quot;Delete the email,&quot; he said, &quot;the e-mails are not from me, and RBI doesn&#39;t give out money to ordinary citizens even though we print plenty of it.&quot;</li>
</ul>
 
On NPA 
 
&quot;I&#39;m comfortable with the recognition process (towards NPA). The banks have taken a lot of steps (to address NPAs), some of them have taken more than required steps. The culture of clean up is embedded and so is the culture of recovery,&quot; he was quoted as saying.&nbsp; 
 
In the future, even after he steps down, Rajan said he was confident there will be no backtracking on NPA. &quot;There has been cooperation all along the way between the government and the RBI. The banks know what needs to be done,&quot; he said. 
 
On impact of GST and 7th Pay Commission 
 
&quot;It is not wise to assume that Goods and Services Tax (GST) implementation will increase inflation. What&#39;s important, is to see whether the impact of the GST implementation will be long term or short term.&quot;&nbsp; 
 
In terms of the 7th pay commission payout, the housing allowance maybe into prices over time but it may be a one time thing, he summed up.&nbsp; 
 
It&#39;s pertinent to mention that salaries for central government employees and pensioners for the years 2016 to 2026 is based on the recommendations of 7th pay commission that comprised a four-member panel and took 21 months to prepare the report.&nbsp; 
 
(This report first appeared in DNA) 
 
 
&nbsp;

Raghuram Rajan, who steps down on September 4, also left messages for critics and supporters and talked about the RBI job after the meet

The Reserve Bank of India (RB) left key policy rates unchanged, mostly on the back of rising inflation, which has been above the 5 per cent level in May and June, with eyes on the impact of the 7th Pay Commission payout and the monsoon. While the move was largely in line with the expectations put forth by experts, bankers and the markets, this was also RBI Governor Raghuram Rajan's last monetary policy review. Rajan will be stepping down from the RBI chair on September 4 when his term comes to an end. In the customary post-policy interaction with the media, Rajan, while answering the questions posed to him, left messages for the public, his critics and supporters, and talked about the RBI job and his future plans. On RBI job "This has been a fantastic job. I have enjoyed every minute of it because everyday my RBI colleagues and I sit and work, we manage to move the needle a little bit everyday...there are very few places you can do this. So it has been fantastic. I hope there's some value add," he asserted. Advise to successor "I don't advise my successors," Rajan said. Answering a question whether his successor will be pressurised to cut rates and sharply soon, the out-going Governor said, "the next decision will be made by the monetary policy committee. There will be six people deciding the interest rates path. So it will be an independent decision." To his critics and supporters "I have nothing to say to my critics. At the end of the day (what matters is) do you feel like you have made a useful contribution, are some people are better because of it? There are times I get notes in a plane saying thank you for what you're doing," he said. "The snap judgements by critics or supporters don't matter. What matters is what plays out the long run -- sustainable growth of the country, job creation, movement to middle income economy," Rajan added. Rajan's message to the public The RBI will be rolling out a 'public awareness and consumer protection campaign' very soon. Highlighting the campaign, Rajan said that there are two main pain points for bank customers and banks Meeting Know Your Customer (KYC) rules: Rajan said, while the KYC rules have been largely simplified, there may be instances that the local bank branch may not be aware of the changes made by the RBI. To simplify this, the RBI has added a FAQ (Frequently Asked Questions) tab on its website on the morning of August 9, to intimate the customer and the bank branches of the changes made to KYC norms.This includes all the guidelines currently in place to fulfil the KYC norms needed to open and maintain a bank account. A complete list of 24 questions with further links, have been provided by the central bank. While speaking at the conference, Rajan said, according to the revised KYC norms, it's not necessary to physically go to the bank to get your address changed if you move houses. Your new address can be self certified but the bank branch may not be aware. You can show them the KYC guidelines of RBI's website, he said. Rajan's second warning on fraudulent e-mails in his name: The outgoing RBI chief warned the public about responding or paying service fees to e-mails (or senders) that are sent in his name or any future RBI Governor's name, promising a huge sum of money, in exchange of a small fee. "Delete the email," he said, "the e-mails are not from me, and RBI doesn't give out money to ordinary citizens even though we print plenty of it." On NPA "I'm comfortable with the recognition process (towards NPA). The banks have taken a lot of steps (to address NPAs), some of them have taken more than required steps. The culture of clean up is embedded and so is the culture of recovery," he was quoted as saying. In the future, even after he steps down, Rajan said he was confident there will be no backtracking on NPA. "There has been cooperation all along the way between the government and the RBI. The banks know what needs to be done," he said. On impact of GST and 7th Pay Commission "It is not wise to assume that Goods and Services Tax (GST) implementation will increase inflation. What's important, is to see whether the impact of the GST implementation will be long term or short term." In terms of the 7th pay commission payout, the housing allowance maybe into prices over time but it may be a one time thing, he summed up. It's pertinent to mention that salaries for central government employees and pensioners for the years 2016 to 2026 is based on the recommendations of 7th pay commission that comprised a four-member panel and took 21 months to prepare the report. (This report first appeared in DNA)

Outgoing RBI chief keeps policy rate unchanged at last review meet; talks about GST, 7th pay commission

India&#39;s bilateral investment pacts happen to be &quot;restrictive&quot; while China is emerging as a major force when it comes to overseas investments, National Institution for Transforming India or NITI&nbsp;Aayog Vice-Chairman Arvind Panagariya said. 
 
&quot;China is now emerging as a provider of outward investment. It is looking out to set rules for outward investment...Our own bilateral investment treaty happens to be rather restrictive,&quot; Panagariya said addressing the International G20 Conference organised by ICRIER here. 
 
According to Chinese government data, in January-April 2016, the Chinese investors made direct investment overseas in 3,434 enterprises of 150 countries and regions. 
 
The direct investment overseas amounted to RMB 391.45 billion (equivalent to $60.08 billion, up 71.8 per cent year on year). 
 
Last month, the deputy assistant to the US President and deputy national security advisor for International Economics Adewale (Wally) Adeyemo had blamed India for not being ambitious enough to conclude the Bilateral Investment Treaty (BIT). 
 
&quot;To be frank, we are far apart on number of issues with regard to trade and investment with India. We feel our colleagues in India have not been as ambitious (on concluding BIT) as we want them to be but we remain open,&quot; Adeyemo had said here at a session on India-US Economic Relations. 
 
In December last year, the cabinet had approved the revised model text for the Bilateral Investment Treaty (BIT) with a view to enhancing protection of foreign investors in India as well as Indian investments abroad, but taxation matters will remain out of its ambit. 
 
Array of issues to be discussed in G20 meet&nbsp;&nbsp; 
 
Elaborating more about the issues to be discussed in the forthcoming G20 meet scheduled next month in China, Panagariya said that there are five sessions expected to be held at leaders level. 
 
The first session will be on growth agenda and Chinese presidency has added investment as a new dimension to it, he noted. 
 
Besides, he said, the other issues that would figure in the meet are climate change and climate financing, refugee crisis and terrorism financing. 
 
Panagariya said the issues pertaining to the jobs market as well as those related to agriculture development will also be discussed at the meet. 
 
(PTI)

At the same time, he added, China is emerging as a major force when it comes to overseas investments

India's bilateral investment pacts happen to be "restrictive" while China is emerging as a major force when it comes to overseas investments, National Institution for Transforming India or NITI Aayog Vice-Chairman Arvind Panagariya said. "China is now emerging as a provider of outward investment. It is looking out to set rules for outward investment...Our own bilateral investment treaty happens to be rather restrictive," Panagariya said addressing the International G20 Conference organised by ICRIER here. According to Chinese government data, in January-April 2016, the Chinese investors made direct investment overseas in 3,434 enterprises of 150 countries and regions. The direct investment overseas amounted to RMB 391.45 billion (equivalent to $60.08 billion, up 71.8 per cent year on year). Last month, the deputy assistant to the US President and deputy national security advisor for International Economics Adewale (Wally) Adeyemo had blamed India for not being ambitious enough to conclude the Bilateral Investment Treaty (BIT). "To be frank, we are far apart on number of issues with regard to trade and investment with India. We feel our colleagues in India have not been as ambitious (on concluding BIT) as we want them to be but we remain open," Adeyemo had said here at a session on India-US Economic Relations. In December last year, the cabinet had approved the revised model text for the Bilateral Investment Treaty (BIT) with a view to enhancing protection of foreign investors in India as well as Indian investments abroad, but taxation matters will remain out of its ambit. Array of issues to be discussed in G20 meet Elaborating more about the issues to be discussed in the forthcoming G20 meet scheduled next month in China, Panagariya said that there are five sessions expected to be held at leaders level. The first session will be on growth agenda and Chinese presidency has added investment as a new dimension to it, he noted. Besides, he said, the other issues that would figure in the meet are climate change and climate financing, refugee crisis and terrorism financing. Panagariya said the issues pertaining to the jobs market as well as those related to agriculture development will also be discussed at the meet. (PTI)

India's bilateral investment pacts restrictive, says NITI Aayog vice-chairman

Britain&#39;s serious fraud office said on Sunday it had opened a criminal probe into Airbus Group, investigating allegations of fraud, bribery, and corruption.&nbsp; 
 
&quot;These allegations relate to irregularities concerning third party consultants,&quot; the SFO said in a statement.&nbsp;The authority said it opened the investigation in July and asked anyone with relevant information to come forward. 
 
A spokesperson for the SFO said additional details of the probe would not be made public until charges were brought or the investigation is dropped.&nbsp;European planemaker Airbus said it was aware of the probe and the aviation firm was working with investigators. 
 
&quot;Airbus Group has been informed by the SFO that it has opened a criminal investigation into allegations of fraud, bribery, and corruption in the civil aviation business of Airbus Group relating to irregularities concerning third party consultants,&quot; the company said in a statement. 
 
&quot;Airbus Group continues to cooperate with the SFO,&quot; the statement concluded.&nbsp;The company was informed on Friday that the authority had launched an investigation, an Airbus spokesman told AFP. 
 
&quot;We ourselves detected this issue and self-disclosed it to the authorities.&nbsp;This is as an effort of our enhanced anti-corruption (policy). Management has taken robust action and is determined to resolve this issue in cooperation with the authorities,&quot; spokesman Jeremy Greaves said. 
 
 
Probe could take years 
 
Airbus informed authorities of the irregularities in April. The same month the UK Export Finance decided to suspend export credits to the firm, a move followed by France and Germany. 
 
The aviation firm said at the time it hoped to resolve the financing problem as soon as possible.&nbsp;The current SFO investigation is expected to take years.&nbsp;The probe was described by the Financial Times newspaper as a &quot;severe blow to the European aircraft maker&quot; which would be exploited by its US rival Boeing. 
 
Airbus is the largest commercial aerospace company in Britain and last month said its net profit rose 15 per cent in the first half of the year.&nbsp;Profits were up 1.76 billion Euros ($1.94 billion), but the gain was due to exceptional items that masked a slide in operating earnings. 
 
The company was hit by charges of just over 1 billion Euros related to its troubled A400M military cargo transporter programme, while adverse currency movements and charges on its widebody A350 aircraft totaled nearly 900 million.&nbsp;However these were compensated for by the sale of shares in Dassault Aviation and the creation of a rocket launcher joint venture with Safran that generated a net gain of nearly 1.9 billion Euros. 
 
Ahead of British voters&#39; decision in June to leave the EU, Airbus said it would reconsider future investment in the country if the referendum took the UK out of Europe.&nbsp;&quot;Airbus Group&#39;s success in the UK is predicated on a highly competitive, integrated European business model,&quot; executives said in a letter sent to employees in April. 
 
(AFP)

Britain's largest commercial aerospace company is being investigated for bribery, fraud and corruption in a probe that could take years

Britain's serious fraud office said on Sunday it had opened a criminal probe into Airbus Group, investigating allegations of fraud, bribery, and corruption. "These allegations relate to irregularities concerning third party consultants," the SFO said in a statement. The authority said it opened the investigation in July and asked anyone with relevant information to come forward. A spokesperson for the SFO said additional details of the probe would not be made public until charges were brought or the investigation is dropped. European planemaker Airbus said it was aware of the probe and the aviation firm was working with investigators. "Airbus Group has been informed by the SFO that it has opened a criminal investigation into allegations of fraud, bribery, and corruption in the civil aviation business of Airbus Group relating to irregularities concerning third party consultants," the company said in a statement. "Airbus Group continues to cooperate with the SFO," the statement concluded. The company was informed on Friday that the authority had launched an investigation, an Airbus spokesman told AFP. "We ourselves detected this issue and self-disclosed it to the authorities. This is as an effort of our enhanced anti-corruption (policy). Management has taken robust action and is determined to resolve this issue in cooperation with the authorities," spokesman Jeremy Greaves said. Probe could take years Airbus informed authorities of the irregularities in April. The same month the UK Export Finance decided to suspend export credits to the firm, a move followed by France and Germany. The aviation firm said at the time it hoped to resolve the financing problem as soon as possible. The current SFO investigation is expected to take years. The probe was described by the Financial Times newspaper as a "severe blow to the European aircraft maker" which would be exploited by its US rival Boeing. Airbus is the largest commercial aerospace company in Britain and last month said its net profit rose 15 per cent in the first half of the year. Profits were up 1.76 billion Euros ($1.94 billion), but the gain was due to exceptional items that masked a slide in operating earnings. The company was hit by charges of just over 1 billion Euros related to its troubled A400M military cargo transporter programme, while adverse currency movements and charges on its widebody A350 aircraft totaled nearly 900 million. However these were compensated for by the sale of shares in Dassault Aviation and the creation of a rocket launcher joint venture with Safran that generated a net gain of nearly 1.9 billion Euros. Ahead of British voters' decision in June to leave the EU, Airbus said it would reconsider future investment in the country if the referendum took the UK out of Europe. "Airbus Group's success in the UK is predicated on a highly competitive, integrated European business model," executives said in a letter sent to employees in April. (AFP)

Airbus group goes under scrutiny for bribe in UK

The French economy is headed for a small rebound in the third quarter after zero growth in the previous three months, the Bank of France said today. 
 
Gross domestic product (GDP) is expected to grow by 0.3 per cent in the current quarter, the central bank said, basing its estimates on a monthly survey of business leaders. 
 
&quot;This rebound concerns most sectors,&quot; the Bank said in a statement, adding however that the automobile industry was an exception, suffering from a slowdown in production. 
 
The services sector was expanding but at a slower pace than previously, it said. 
 
France&#39;s Insee statistics bureau last month said the French economy failed to grow at all in the second quarter, dashing government hopes for a small expansion. 
 
The finance ministry called the flat figure &quot;disappointing&quot;, given that Insee had predicted 0.3 percent growth and the Bank of France 0.2 percent. 
 
According to Insee, 1.1 per cent growth for the full year 2016 is already in the bag, even if the third and fourth quarters turn out to show no growth. 
 
This would, however, fall far short of forecasts by the French government, which last month stood by its 1.5 percent growth estimate for the year. 
 
(AFP)&nbsp; 
&nbsp;

Gross domestic product is expected to grow by 0.3 per cent in the current quarter, the central bank said?

The French economy is headed for a small rebound in the third quarter after zero growth in the previous three months, the Bank of France said today. Gross domestic product (GDP) is expected to grow by 0.3 per cent in the current quarter, the central bank said, basing its estimates on a monthly survey of business leaders. "This rebound concerns most sectors," the Bank said in a statement, adding however that the automobile industry was an exception, suffering from a slowdown in production. The services sector was expanding but at a slower pace than previously, it said. France's Insee statistics bureau last month said the French economy failed to grow at all in the second quarter, dashing government hopes for a small expansion. The finance ministry called the flat figure "disappointing", given that Insee had predicted 0.3 percent growth and the Bank of France 0.2 percent. According to Insee, 1.1 per cent growth for the full year 2016 is already in the bag, even if the third and fourth quarters turn out to show no growth. This would, however, fall far short of forecasts by the French government, which last month stood by its 1.5 percent growth estimate for the year. (AFP)

France headed for small rebound in third quarter?

Oil edged higher to near $42 a barrel in Asia today, but analysts said the increase was unlikely to last as the commodity remains under pressure by a supply glut and a strong dollar. 
 
Prices have been fluctuating since entering a bear market last week, falling more than 20 per cent and closing below $40 a barrel for the first time since April. 
 
Initially recovering as US commercial crude inventory data showed an unexpected draw in gasoline, prices tumbled again later in the week after robust hiring numbers from the US government pushed the dollar higher.&nbsp;A stronger greenback typically makes dollar-priced oil more expensive for consumers using other currencies, denting demand. 
 
Weekly rig count data released Friday also showed that US drillers added seven rigs that week, up for the sixth straight week and indicating higher production activity amid an oversaturated market. 
 
&quot;Modest short covering has probably given oil some boost,&quot; said IG Markets analyst Bernard Aw, adding however, that the bounce was unlikely to last.&nbsp;&quot;Rising US rig additions, low probability of The Organization of the Petroleum Exporting Countries (OPEC) to revive... freeze output talks, and weakening demand present a great barrier for oil prices to move higher,&quot; he told AFP. 
 
At around 0630 GMT, US benchmark West Texas Intermediate for delivery in September was up 28 cents to $42.08 and Brent crude for October gained 29 cents to $44.56 a barrel. 
 
&quot;Upbeat jobs data from the US showed that the jobs growth was much higher in July than estimates, and helped to push the US Dollar (higher), applying pressure on crude prices,&quot; said EY Services oil and gas analyst Sanjeev Gupta. 
 
(AFP)&nbsp;

Analysts said increase was unlikely to last, as the commodity remains under pressure by a supply glut

Oil edged higher to near $42 a barrel in Asia today, but analysts said the increase was unlikely to last as the commodity remains under pressure by a supply glut and a strong dollar. Prices have been fluctuating since entering a bear market last week, falling more than 20 per cent and closing below $40 a barrel for the first time since April. Initially recovering as US commercial crude inventory data showed an unexpected draw in gasoline, prices tumbled again later in the week after robust hiring numbers from the US government pushed the dollar higher. A stronger greenback typically makes dollar-priced oil more expensive for consumers using other currencies, denting demand. Weekly rig count data released Friday also showed that US drillers added seven rigs that week, up for the sixth straight week and indicating higher production activity amid an oversaturated market. "Modest short covering has probably given oil some boost," said IG Markets analyst Bernard Aw, adding however, that the bounce was unlikely to last. "Rising US rig additions, low probability of The Organization of the Petroleum Exporting Countries (OPEC) to revive... freeze output talks, and weakening demand present a great barrier for oil prices to move higher," he told AFP. At around 0630 GMT, US benchmark West Texas Intermediate for delivery in September was up 28 cents to $42.08 and Brent crude for October gained 29 cents to $44.56 a barrel. "Upbeat jobs data from the US showed that the jobs growth was much higher in July than estimates, and helped to push the US Dollar (higher), applying pressure on crude prices," said EY Services oil and gas analyst Sanjeev Gupta. (AFP)

Oil prices rise in Asia

Japan&#39;s Fair Trade Commission has raided the office of Amazon Japan on suspicion of pressuring retailers to offer products on more favourable conditions than on rival sites, the Nikkei business daily reported today. 
 
The paper did not say when the raid took place. 
 
Amazon Japan is suspected of imposing conditions on retailers such as forcing them to sell products at a lower price if they were also advertising on other online shopping sites, the Nikkei said, citing sources with knowledge of the case. 
 
A Fair Trade Commission spokesman said he could not confirm the report but added: &quot;I won&#39;t say the contents are incorrect.&quot; 
 
An Amazon Japan spokeswoman declined to comment. 
 
(Reuters)&nbsp;

The online giant is suspected of forcing retailers to sell products at lower price if they were advertising on other online shopping sites

Japan's Fair Trade Commission has raided the office of Amazon Japan on suspicion of pressuring retailers to offer products on more favourable conditions than on rival sites, the Nikkei business daily reported today. The paper did not say when the raid took place. Amazon Japan is suspected of imposing conditions on retailers such as forcing them to sell products at a lower price if they were also advertising on other online shopping sites, the Nikkei said, citing sources with knowledge of the case. A Fair Trade Commission spokesman said he could not confirm the report but added: "I won't say the contents are incorrect." An Amazon Japan spokeswoman declined to comment. (Reuters)

Amazon Japan raided over antitrust practices: Nikkei

Volkswagen has been slapped with a five-million-Euro ($5.5 million) fine in Italy over the massive engine-fixing scandal, the Italian competition authority said on Monday. 
 
The German carmaker was handed the fine for &quot;improper business practices&quot; after it installed emissions-cheating software in 11 million diesel engines worldwide in a scandal which broke last year, dubbed &quot;dieselgate&quot;. 
 
The antitrust watchdog said the fine related to the marketing in Italy since 2009 of vehicles that tricked pollution tests. 
 
Volkswagen, which owns 12 brands in all, from VW to Audi, Porsche, Seat, and Lamborghini, admitted in September that it had installed software in the vehicles that tricked US emissions tests into showing the cars met environmental standards. 
 
The device switched off after testing, enabling the vehicles to spew up to 40 times the permitted amounts of nitrogen oxides. The still incalculable costs of the affair, including regulatory fines and legal costs, pushed VW into the red for the first time in more than 20 years last year when it booked a loss of 1.6 billion Euros. 
 
In June it agreed to pay out $14.7 billion in a settlement with US authorities and car owners.&nbsp; 
 
(AFP) 
 
Keywords- VW scandal, VW engine-fixing scandal, Volkswagen emissions&nbsp;scandal, VW fined by Italy watchdog, VW fined $5.5 million, Italy watchdog fines VW with 5 million Euros

The fine was for the emissions-cheating software the German carmaker had installed in 11 million of its diesel cars worldwide

Volkswagen has been slapped with a five-million-Euro ($5.5 million) fine in Italy over the massive engine-fixing scandal, the Italian competition authority said on Monday. The German carmaker was handed the fine for "improper business practices" after it installed emissions-cheating software in 11 million diesel engines worldwide in a scandal which broke last year, dubbed "dieselgate". The antitrust watchdog said the fine related to the marketing in Italy since 2009 of vehicles that tricked pollution tests. Volkswagen, which owns 12 brands in all, from VW to Audi, Porsche, Seat, and Lamborghini, admitted in September that it had installed software in the vehicles that tricked US emissions tests into showing the cars met environmental standards. The device switched off after testing, enabling the vehicles to spew up to 40 times the permitted amounts of nitrogen oxides. The still incalculable costs of the affair, including regulatory fines and legal costs, pushed VW into the red for the first time in more than 20 years last year when it booked a loss of 1.6 billion Euros. In June it agreed to pay out $14.7 billion in a settlement with US authorities and car owners. (AFP) Keywords- VW scandal, VW engine-fixing scandal, Volkswagen emissions scandal, VW fined by Italy watchdog, VW fined $5.5 million, Italy watchdog fines VW with 5 million Euros

Volkswagen fined $5.5 million in Italy

Walmart Stores Inc said today it would buy online retailer Jet.com for about $3 billion, the largest-ever deal for an e-commerce startup, as it races to build a web business to better compete with Amazon.com Incorporation. 
 
Walmart&#39;s online business has struggled, posting its slowest growth in a year in the latest quarter, and the Jet deal reflected management&#39;s eagerness to prioritise online growth. 
 
Walmart, the world&#39;s largest retailer, said it would pay around $3 billion in cash for Jet, part of which would be paid over time. They will also pay an additional $300 million in shares over time. 
 
The purchase comes after Walmart said in June it sold a majority stake in Chinese e-commerce firm Yihaodian to JD.com Inc, which is China&#39;s second-largest e-commerce company. Walmart&#39;s sales in the online unit were $13.7 billion in 2015, according to research firm Internet Retailer. 
 
&quot;We&#39;re looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that&#39;s what our customers want,&quot; Walmart chief executive officer Doug McMillon said in a statement. 
 
Jet.com was launched by Marc Lore in July last year. Its initial strategy was to offer large discounts and the lowest prices on items based on a pricing formula that took into account factors such as the number of items customers added to their shopping cart for an annual $50 fee. 
 
But three months after launch, Jet changed strategy and eliminated its subscription model. 
 
While Walmart and Jet will maintain distinct brands, they will leverage technology from both companies to develop new offerings, Walmart said. 
 
Allen &amp; Co and J P Morgan Securities LLC were financial advisers to Walmart for the deal. 
 
Walmart&#39;s shares traded down 1 per cent at $73.09 on Monday. 
 
(Reuters)

Walmart said it would pay $3 billion in cash for Jet. The deal reflects management's eagerness to prioritise online growth

Walmart Stores Inc said today it would buy online retailer Jet.com for about $3 billion, the largest-ever deal for an e-commerce startup, as it races to build a web business to better compete with Amazon.com Incorporation. Walmart's online business has struggled, posting its slowest growth in a year in the latest quarter, and the Jet deal reflected management's eagerness to prioritise online growth. Walmart, the world's largest retailer, said it would pay around $3 billion in cash for Jet, part of which would be paid over time. They will also pay an additional $300 million in shares over time. The purchase comes after Walmart said in June it sold a majority stake in Chinese e-commerce firm Yihaodian to JD.com Inc, which is China's second-largest e-commerce company. Walmart's sales in the online unit were $13.7 billion in 2015, according to research firm Internet Retailer. "We're looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that's what our customers want," Walmart chief executive officer Doug McMillon said in a statement. Jet.com was launched by Marc Lore in July last year. Its initial strategy was to offer large discounts and the lowest prices on items based on a pricing formula that took into account factors such as the number of items customers added to their shopping cart for an annual $50 fee. But three months after launch, Jet changed strategy and eliminated its subscription model. While Walmart and Jet will maintain distinct brands, they will leverage technology from both companies to develop new offerings, Walmart said. Allen & Co and J P Morgan Securities LLC were financial advisers to Walmart for the deal. Walmart's shares traded down 1 per cent at $73.09 on Monday. (Reuters)

Walmart to buy Jet.com in bid to strengthen e-commerce offering

When trader Vivek Mehra buys artwork from the remote corners of India, he braces himself for a world of pain as he navigates the country&#39;s notoriously complex tax system.&nbsp;But Mehra, who makes and sells furniture, is among throngs of business owners hopeful Prime Minister Narendra Modi&#39;s moves this week for a new, single national sales tax will make life much easier. 
 
At the moment, Mehra has to pay different rates of sales tax in different states, a policy that means endless hold-ups when crossing interstate borders. 
 
&quot;You can be stranded behind 300 trucks at the border, and even one single piece of paper missing can mean your load is confiscated,&quot; he said in his New Delhi workshop. 
 
Lawmakers have voted in favour of scrapping India&#39;s jumble of federal and state taxes and introducing a single goods-and-services tax (GST), creating a common market for the first time. 
 
The government said the move, hailed as India&#39;s most significant economic reform in decades, would reduce double taxation, cut red tape and make the system more efficient. 
 
Experts said the tax could eventually help boost India&#39;s already strong economic growth by up to two percentage points. 
 
&quot;Consumption will go up, production will go up, investments will go up, investment into production will go up, so this is a great development,&quot; said Adi Godrej, chairman of consumer goods giant the Godrej Group.&nbsp;&quot;To my mind it is the biggest economic reform after the liberalisation of 1991,&quot; he said, referring to historic moves to open up India to international trade. 
 
 
&#39;Stiff targets&#39;&nbsp; 
 
Modi has battled fiercely to introduce the tax after facing criticism for being too slow to introduce much-needed reforms after storming to power in 2014.&nbsp;The main opposition Congress party, which first proposed a GST a decade ago, blocked the current one in parliament for 12 months before finally agreeing to an amended version. 
 
But experts say the changes needed to win political support may have blunted the overall boost to the economy.&nbsp;States will still be allowed, for example, to separately tax alcohol, petrol and other products that are likely to be excluded from the GST. 
 
The government also faces a race against time to introduce the tax by its deadline of next April, when the new financial year starts. Half of India&#39;s states have to now ratify the move in their parliaments before it can be enshrined in law. 
 
Thousands of tax officials must also be trained in the new regime, government IT systems overhauled and companies themselves briefed on complying with the changes. 
 
&quot;It is always good to set stiff targets and try meet them, rather than have no targets at all,&quot; finance minister Arun Jaitley said of the deadline, which many experts believe is optimistic. 
 
The main rate of the GST must also still be thrashed out by a council of state and central officials.&nbsp;Congress says it wants the rate capped at 18 per cent of any purchase of goods or service to avoid what it calls &quot;creeping taxation&quot;. 
 
&#39;Just one tax&#39; 
 
States with lots of manufacturers may battle to push the rate higher.&nbsp;They stand to lose revenues because the money collected would now go to the state where the product is consumed, although New Delhi has pledged to reimburse them for the first five years. 
 
&quot;We need to wait for details and tax rates to come out before speculating about the GST&#39;s effectiveness,&quot; warned Sujan Hajra, chief economist at Anand Rathi Securities. 
 
But Prakash Tulsiani, chief operating officer with Allcargo Logistics based in Mumbai, is confident the move means increased productivity, with less paperwork and faster delivery of goods. 
 
&quot;Now, we don&#39;t have to worry about multi-level taxation levied by different states,&quot; said Tulsiani.&nbsp;About 150 countries worldwide have some form of GST or VAT (Value Added Tax), according to the Organisation for Economic Cooperation and Development. 
 
Mehra, who employs around 200 artisans and others at his workshops and showrooms in Delhi and neighbouring western state of Rajasthan, hopes the changes will also mean fewer headaches.&nbsp;&quot;Hopefully there&#39;s only one department that we now have to answer to, we don&#39;t have to go to excise, we don&#39;t have to go to VAT and various other departments. We just pay one tax and that&#39;s it,&quot; he said.&nbsp;&quot;That&#39;s what we hope is going to happen. But let&#39;s see what the fine print says.&quot; 
 
(Reuters)

Lawmakers have scrapped India's jumble of federal & state taxes and introducing a single goods-and-services tax

When trader Vivek Mehra buys artwork from the remote corners of India, he braces himself for a world of pain as he navigates the country's notoriously complex tax system. But Mehra, who makes and sells furniture, is among throngs of business owners hopeful Prime Minister Narendra Modi's moves this week for a new, single national sales tax will make life much easier. At the moment, Mehra has to pay different rates of sales tax in different states, a policy that means endless hold-ups when crossing interstate borders. "You can be stranded behind 300 trucks at the border, and even one single piece of paper missing can mean your load is confiscated," he said in his New Delhi workshop. Lawmakers have voted in favour of scrapping India's jumble of federal and state taxes and introducing a single goods-and-services tax (GST), creating a common market for the first time. The government said the move, hailed as India's most significant economic reform in decades, would reduce double taxation, cut red tape and make the system more efficient. Experts said the tax could eventually help boost India's already strong economic growth by up to two percentage points. "Consumption will go up, production will go up, investments will go up, investment into production will go up, so this is a great development," said Adi Godrej, chairman of consumer goods giant the Godrej Group. "To my mind it is the biggest economic reform after the liberalisation of 1991," he said, referring to historic moves to open up India to international trade. 'Stiff targets' Modi has battled fiercely to introduce the tax after facing criticism for being too slow to introduce much-needed reforms after storming to power in 2014. The main opposition Congress party, which first proposed a GST a decade ago, blocked the current one in parliament for 12 months before finally agreeing to an amended version. But experts say the changes needed to win political support may have blunted the overall boost to the economy. States will still be allowed, for example, to separately tax alcohol, petrol and other products that are likely to be excluded from the GST. The government also faces a race against time to introduce the tax by its deadline of next April, when the new financial year starts. Half of India's states have to now ratify the move in their parliaments before it can be enshrined in law. Thousands of tax officials must also be trained in the new regime, government IT systems overhauled and companies themselves briefed on complying with the changes. "It is always good to set stiff targets and try meet them, rather than have no targets at all," finance minister Arun Jaitley said of the deadline, which many experts believe is optimistic. The main rate of the GST must also still be thrashed out by a council of state and central officials. Congress says it wants the rate capped at 18 per cent of any purchase of goods or service to avoid what it calls "creeping taxation". 'Just one tax' States with lots of manufacturers may battle to push the rate higher. They stand to lose revenues because the money collected would now go to the state where the product is consumed, although New Delhi has pledged to reimburse them for the first five years. "We need to wait for details and tax rates to come out before speculating about the GST's effectiveness," warned Sujan Hajra, chief economist at Anand Rathi Securities. But Prakash Tulsiani, chief operating officer with Allcargo Logistics based in Mumbai, is confident the move means increased productivity, with less paperwork and faster delivery of goods. "Now, we don't have to worry about multi-level taxation levied by different states," said Tulsiani. About 150 countries worldwide have some form of GST or VAT (Value Added Tax), according to the Organisation for Economic Cooperation and Development. Mehra, who employs around 200 artisans and others at his workshops and showrooms in Delhi and neighbouring western state of Rajasthan, hopes the changes will also mean fewer headaches. "Hopefully there's only one department that we now have to answer to, we don't have to go to excise, we don't have to go to VAT and various other departments. We just pay one tax and that's it," he said. "That's what we hope is going to happen. But let's see what the fine print says." (Reuters)

GST: Indian business owners hopeful it will make life easier for them

Amazon debuted its first branded air cargo plane during the annual Boeing Seafair&#39;s Air Show on Friday in Seattle, Washington, NBC reported. 
 
Amazon leased several Boeing 767 widebody freighter aircraft to handle more of its own deliveries in the United States.&nbsp;Amazon, which relies on carriers like United Parcel Service Inc and FedEx Corp to deliver most of its packages, spent $11.5 billion on shipping last year. 
 
In a bid to assume more control over its supply chain and reduce costs, Amazon has rolled out thousands of trailers and launched a programme that uses contract drivers to deliver fast orders. 
 
But analysts said the plan to build its own air fleet posed little threat to the leading delivery companies. 
 
UPS, the world&#39;s number one package delivery company, operates about 240 large planes, while FedEx has a fleet of about 370, Barnes noted. FedEx and UPS shares were down about 1.5 per cent. 
 
Amazon has been testing deliveries by drones but has not said when they would be in service. 
 
(Reuters)

Amazon has leased several Boeing 767 wide-body freighter aircraft to handle more deliveries in the US and control supply chain costs

Amazon debuted its first branded air cargo plane during the annual Boeing Seafair's Air Show on Friday in Seattle, Washington, NBC reported. Amazon leased several Boeing 767 widebody freighter aircraft to handle more of its own deliveries in the United States. Amazon, which relies on carriers like United Parcel Service Inc and FedEx Corp to deliver most of its packages, spent $11.5 billion on shipping last year. In a bid to assume more control over its supply chain and reduce costs, Amazon has rolled out thousands of trailers and launched a programme that uses contract drivers to deliver fast orders. But analysts said the plan to build its own air fleet posed little threat to the leading delivery companies. UPS, the world's number one package delivery company, operates about 240 large planes, while FedEx has a fleet of about 370, Barnes noted. FedEx and UPS shares were down about 1.5 per cent. Amazon has been testing deliveries by drones but has not said when they would be in service. (Reuters)

Amazon's debut cargo plane takes flight

Royal Bank of Scotland reported wider first-half losses, 1.3 billion Pounds of new litigation charges and axed plans to turn its Williams &amp; Glyn business into a stand-alone bank today as it braces for post-Brexit shocks to the UK economy. 
 
RBS, which has not made an annual profit since 2007, booked 2.05 billion Pounds ($2.69 billion) of losses for the first half of 2016, against a 179 million Pound loss a year ago. 
 
Chief Executive Ross McEwan is battling to complete a restructuring of the taxpayer-backed bank, which includes asset sales, job cuts and multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct. 
 
Those issues have complicated RBS&#39;s task of finding profitable business in a low interest rate economy with feeble credit demand, which now faces pressures from Britain&#39;s vote to leave the European Union and a possible new referendum on Scottish independence. 
 
&quot;There is more work to be done but we are making progress,&quot; McEwan said, adding that RBS is preparing to detail a new cost-cutting plan at its full-year results in early 2017 that will involve an unspecified number of job cuts and branch closures. 
 
The CEO said RBS had not yet decided whether to pass on the Bank of England&#39;s 25 basis point base rate cut to standard variable rate borrowers, a key part of the central bank&#39;s plans unveiled on Thursday to cushion the economy against Brexit. 
 
McEwan said RBS would look at the BoE&#39;s new Term Funding Scheme aimed at helping banks to boost lending to households and businesses. 
 
RBS shares, which have fallen almost 40 per cent so far this year, were 6.8 per cent lower by 1250 GMT.&nbsp;RBS said it no longer planned to build an independent technology platform for its Williams &amp; Glyn business, citing complexity and the lower interest rate environment. 
 
The bank had originally wanted to turn the small business lender into a &#39;bank within a bank&#39; so it could achieve a clean break when the business was sold under the terms of its 45.5 billion-Pound state bailout in the global financial crisis. 
 
But RBS said the risks and costs inherent in its plan were no longer &quot;prudent&quot; and it would look at other ways to achieve the carve out, which has already cost it 1.5 billion Pounds. 
 
Spain&#39;s Banco Santander has made a formal offer to take over Royal Bank of Scotland&#39;s Williams &amp; Glyn business, two sources familiar with the matter said earlier this week. 
 
Restructuring 
 
Edinburgh-based RBS&#39;s total income fell by almost a fifth to 6.06 billion Pounds in the first half, while the bigger losses were partly driven by a 630 million Pound charge for corporate restructuring, some 345 million Pounds of which related to Williams &amp; Glyn. 
 
&quot;These results show how much work RBS still has on its plate, progress has been made, but it has been slow,&quot; Laith Khalaf, a senior analyst at Hargreaves Lansdown told Reuters. 
 
&quot;If you went back to the financial crisis very few people would have predicted that it would have taken so long to heal the wounds. Whilst RBS is relatively well capitalised, the issue is profitability rather than solvency,&quot; he said. 
 
Impairments rose by more than a quarter to 409 million Pounds and the bank warned a target to reduce its cost to income ratio below 55 per cent by 2019 would be &quot;more challenging&quot;. 
 
RBS said restructuring costs were expected to remain high in 2016, totalling more than 1 billion Pounds. 
 
The bank also set aside an additional 450 million Pounds to compensate customers mis-sold payment protection insurance and made a 180 million Euros ($201 million) provision for redress in its Irish tracker mortgages business. 
 
These came on top of 707 million Pounds of new litigation charges, which analysts at Bernstein said were largely down to a long-running dispute with investors over its 2008 rights issue.&nbsp;Despite the provision, McEwan said RBS had yet to make any deal with claimants, and he still expected the matter to go to court in 2017. 
 
Meanwhile, the bank continues to wait for what analysts broadly expect to be the biggest regulatory penalty in its history for its role in mis-selling US mortgage bonds in the run up to the financial crisis. 
 
(Reuters)

RBS, which has not made an annual profit since 2007, booked 2.05 billion Pounds ($2.69 billion) of losses for the first half of 2016

Royal Bank of Scotland reported wider first-half losses, 1.3 billion Pounds of new litigation charges and axed plans to turn its Williams & Glyn business into a stand-alone bank today as it braces for post-Brexit shocks to the UK economy. RBS, which has not made an annual profit since 2007, booked 2.05 billion Pounds ($2.69 billion) of losses for the first half of 2016, against a 179 million Pound loss a year ago. Chief Executive Ross McEwan is battling to complete a restructuring of the taxpayer-backed bank, which includes asset sales, job cuts and multi-billion dollar charges to settle litigation and pay regulatory fines for past misconduct. Those issues have complicated RBS's task of finding profitable business in a low interest rate economy with feeble credit demand, which now faces pressures from Britain's vote to leave the European Union and a possible new referendum on Scottish independence. "There is more work to be done but we are making progress," McEwan said, adding that RBS is preparing to detail a new cost-cutting plan at its full-year results in early 2017 that will involve an unspecified number of job cuts and branch closures. The CEO said RBS had not yet decided whether to pass on the Bank of England's 25 basis point base rate cut to standard variable rate borrowers, a key part of the central bank's plans unveiled on Thursday to cushion the economy against Brexit. McEwan said RBS would look at the BoE's new Term Funding Scheme aimed at helping banks to boost lending to households and businesses. RBS shares, which have fallen almost 40 per cent so far this year, were 6.8 per cent lower by 1250 GMT. RBS said it no longer planned to build an independent technology platform for its Williams & Glyn business, citing complexity and the lower interest rate environment. The bank had originally wanted to turn the small business lender into a 'bank within a bank' so it could achieve a clean break when the business was sold under the terms of its 45.5 billion-Pound state bailout in the global financial crisis. But RBS said the risks and costs inherent in its plan were no longer "prudent" and it would look at other ways to achieve the carve out, which has already cost it 1.5 billion Pounds. Spain's Banco Santander has made a formal offer to take over Royal Bank of Scotland's Williams & Glyn business, two sources familiar with the matter said earlier this week. Restructuring Edinburgh-based RBS's total income fell by almost a fifth to 6.06 billion Pounds in the first half, while the bigger losses were partly driven by a 630 million Pound charge for corporate restructuring, some 345 million Pounds of which related to Williams & Glyn. "These results show how much work RBS still has on its plate, progress has been made, but it has been slow," Laith Khalaf, a senior analyst at Hargreaves Lansdown told Reuters. "If you went back to the financial crisis very few people would have predicted that it would have taken so long to heal the wounds. Whilst RBS is relatively well capitalised, the issue is profitability rather than solvency," he said. Impairments rose by more than a quarter to 409 million Pounds and the bank warned a target to reduce its cost to income ratio below 55 per cent by 2019 would be "more challenging". RBS said restructuring costs were expected to remain high in 2016, totalling more than 1 billion Pounds. The bank also set aside an additional 450 million Pounds to compensate customers mis-sold payment protection insurance and made a 180 million Euros ($201 million) provision for redress in its Irish tracker mortgages business. These came on top of 707 million Pounds of new litigation charges, which analysts at Bernstein said were largely down to a long-running dispute with investors over its 2008 rights issue. Despite the provision, McEwan said RBS had yet to make any deal with claimants, and he still expected the matter to go to court in 2017. Meanwhile, the bank continues to wait for what analysts broadly expect to be the biggest regulatory penalty in its history for its role in mis-selling US mortgage bonds in the run up to the financial crisis. (Reuters)

Royal Banks of Scotland losses and costs mount as Brexit fallout looms large

Tesla Motors Inc on Friday disclosed $1.1 billion in third quarter cash requirements in payments and planned expenditures, about a third of the cash on hand mid-year, in a new sign of pressure on the electric vehicle maker. 
 
The company is finishing construction of a massive battery factory in Nevada, the Gigafactory, and ramping up for production next year of a mass market sedan, the Model 3. That has raised questions about whether the company will need to raise new cash to reach its goals. 
 
It said in the filing that it had $3.25 billion in principal sources of liquidity as of June 30, 2016, including $1.7 billion from a public offering in May and a $678 million credit line. 
 
The filing also said that in July it had repaid that $678 million credit line and that it intended to repay principle on $411 million of 2018 convertible notes in the third quarter and could spend more on the securities. 
 
&quot;During the third quarter, we will be using substantial amounts of cash in connection with conversions of our 2018 Notes and we could pursue other actions to reduce our outstanding balance of convertible notes, which could require further outlays of cash,&quot; Tesla wrote in the filing with the US Securities and Exchange Commission. 
 
If the two third-quarter payments are subtracted from the mid-year cash balance, Tesla would have $2.1 billion left over. The company on Wednesday told analysts it planned $1.75 million in the second half of the year on capital expenditures. 
 
Tesla declined to comment beyond the filing. 
 
Tesla, which wants to buy solar panel installer SolarCity Corp for $2.6 billion in shares, also disclosed that the value of its secured assets had limited its ability to borrow under its asset-based revolving credit agreement with a syndicate of banks. 
 
Chief executive Elon Musk earlier this week had repeated a projection that if the deal is consummated, the combined Tesla-SolarCity could require a &quot;small equity capital raise&quot; next year. 
 
Regulators&#39; requests 
 
The company also said in its filing that &quot;from time to time&quot; it has received requests for information from regulators and governmental authorities &quot;such as the National Highway Traffic Safety Administration (NHTSA), the National Transportation Safety Board and the Securities and Exchange Commission.&quot; 
 
The federal regulator NHTSA is investigating a May 7 fatality in Florida in which a driver usingTesla&#39;s auto-pilot system crashed into a truck. 
 
The Wall Street Journal reported last month that the SEC was investigating whether Tesla had taken too long to disclose that crash. Tesla at the time said it had received no communication from the SEC. It was unclear from the filing whether the reference to the SEC related to the crash or another matter, and Tesla declined to comment further. 
 
As it warned in its previous quarterly filing in March, Tesla said the cost of building and operating its Gigafactory could exceed the company&#39;s current expectations. 
 
Tesla spent $117.4 million on the Gigafactory construction in the first half of 2016 and targets spending a total of about $520 million in 2016. 
 
(Reuters)

Tesla is completing its massive Nevada battery factory and producing a mass market sedan, but there are signs the company faces pressure

Tesla Motors Inc on Friday disclosed $1.1 billion in third quarter cash requirements in payments and planned expenditures, about a third of the cash on hand mid-year, in a new sign of pressure on the electric vehicle maker. The company is finishing construction of a massive battery factory in Nevada, the Gigafactory, and ramping up for production next year of a mass market sedan, the Model 3. That has raised questions about whether the company will need to raise new cash to reach its goals. It said in the filing that it had $3.25 billion in principal sources of liquidity as of June 30, 2016, including $1.7 billion from a public offering in May and a $678 million credit line. The filing also said that in July it had repaid that $678 million credit line and that it intended to repay principle on $411 million of 2018 convertible notes in the third quarter and could spend more on the securities. "During the third quarter, we will be using substantial amounts of cash in connection with conversions of our 2018 Notes and we could pursue other actions to reduce our outstanding balance of convertible notes, which could require further outlays of cash," Tesla wrote in the filing with the US Securities and Exchange Commission. If the two third-quarter payments are subtracted from the mid-year cash balance, Tesla would have $2.1 billion left over. The company on Wednesday told analysts it planned $1.75 million in the second half of the year on capital expenditures. Tesla declined to comment beyond the filing. Tesla, which wants to buy solar panel installer SolarCity Corp for $2.6 billion in shares, also disclosed that the value of its secured assets had limited its ability to borrow under its asset-based revolving credit agreement with a syndicate of banks. Chief executive Elon Musk earlier this week had repeated a projection that if the deal is consummated, the combined Tesla-SolarCity could require a "small equity capital raise" next year. Regulators' requests The company also said in its filing that "from time to time" it has received requests for information from regulators and governmental authorities "such as the National Highway Traffic Safety Administration (NHTSA), the National Transportation Safety Board and the Securities and Exchange Commission." The federal regulator NHTSA is investigating a May 7 fatality in Florida in which a driver usingTesla's auto-pilot system crashed into a truck. The Wall Street Journal reported last month that the SEC was investigating whether Tesla had taken too long to disclose that crash. Tesla at the time said it had received no communication from the SEC. It was unclear from the filing whether the reference to the SEC related to the crash or another matter, and Tesla declined to comment further. As it warned in its previous quarterly filing in March, Tesla said the cost of building and operating its Gigafactory could exceed the company's current expectations. Tesla spent $117.4 million on the Gigafactory construction in the first half of 2016 and targets spending a total of about $520 million in 2016. (Reuters)

Tesla needs to spend $1.1 billion in cash this quarter

Every day, after she finishes cooking, cleaning and fetching water for her tiny one-room home in India&#39;s financial capital Mumbai, Saubhagya Nadelkari picks up a stack of leather strips and makes her way to her neighbour&#39;s home. 
 
There, in a narrow alley that is covered with plastic, about half a dozen women sit or stand as they braid long strips for use in belts, sandals and bags. They talk and laugh as their fingers fly, knotting each strip at the end when it is done. 
 
&quot;I have been doing this for about 10 years. We used to get more work, now we get less, and get paid less,&quot; said Nadelkari, who makes about 100 pieces a day. She is paid about 24 rupees ($0.40) for a set of 12 finished pieces.&nbsp;&quot;We only get paid once in six months, and they don&#39;t keep proper accounts. But my husband doesn&#39;t let me go out and work, and we need the money, so I can&#39;t say &#39;no&#39; to the work.&quot; 
 
Nadelkari and her friends are among nearly 38 million home-based workers in India, according to a 2012 survey by WIEGO, a global non-profit focused on informal workers. 
 
Restricted to their homes because of limited mobility and lack of childcare, they are engaged in providing low-paid manufacturing or services for local and global supply chains.&nbsp;The women stitch garments, embroider and attach sequins, make shoe uppers, handicrafts, as well as roll incense sticks and prepare food items such as pickles. 
 
Unlike self-employed home-based workers who sell their output directly, sub-contracted homeworkers are dependent on a middleman who drops off and picks up orders and keeps a part of the payment as commission.&nbsp;They are affected by fluctuating demand, cancelled orders, delayed payments and rejected goods. 
 
&quot;These are the most invisible of informal workers,&quot; said Indira Gartenberg, who has researched home based-workers with non-profit LEARN in Mumbai.&nbsp;&quot;Their situation is worse than a sweatshop, because at least in the sweatshop they don&#39;t have to pay for electricity and water and rent and they get paid regularly,&quot; she said. 
 
 
Economic Compulsion 
 
In India, the world&#39;s fastest growing major economy, more than 90 per cent of workers, or about 400 million people, are in the informal economy, according to the Centre for Equity Studies. 
 
Women and children in the informal economy are particularly vulnerable to exploitation.&nbsp;The garment industry is particularly prone to abuse. Of the 38 million home-based workers in India, about 45 per cent are involved in making garments or textiles, and half these workers are sub-contracted homeworkers, according to WIEGO. 
 
The piece-rate work that is common in the industry is low paid and seasonal. While the women do the bulk of the work, children pitch in during busy periods, even skipping school to work. 
 
&quot;Contract work for textiles has been growing exponentially because of the growing popularity of readymade garments and fast fashion, even in India,&quot; said Shalini Sinha, WIEGO&#39;s sector specialist for home-based workers. 
 
&quot;Many leading global brands are outsourcing to homeworkers, even if they are unaware of it. Homeworkers are the most vulnerable in the chain, yet they bear a lot of risks because the economic compulsion is so strong,&quot; she said. 
 
The supply chains of global fashion retailers have come under greater scrutiny since the Rana Plaza disaster in Bangladesh three years ago.&nbsp;Despite pressure from activists, India has not endorsed the International Labour Organization&#39;s convention 177, which requires member nations to adopt a national policy to improve the lives of homeworkers. 
 
That includes counting them as labourers, and providing social security protection and adequate remuneration.&nbsp;Activists including WIEGO are also campaigning for secure contracts, social protection, better remuneration and unions. 
 
For Nadelkari in Dharavi, a sprawling slum that is home to thousands of homeworkers, all of these would be welcome.&nbsp;&quot;Until then, at least I get to do the work with my friends. We talk, we laugh. We forget how hard it is,&quot; she said. 
 
($1 = 66.947 rupees) 
 
(Reuters)

38 million home-based Indian workers provide low-paid manufacturing services for local and global chains, and are badly exploited

Every day, after she finishes cooking, cleaning and fetching water for her tiny one-room home in India's financial capital Mumbai, Saubhagya Nadelkari picks up a stack of leather strips and makes her way to her neighbour's home. There, in a narrow alley that is covered with plastic, about half a dozen women sit or stand as they braid long strips for use in belts, sandals and bags. They talk and laugh as their fingers fly, knotting each strip at the end when it is done. "I have been doing this for about 10 years. We used to get more work, now we get less, and get paid less," said Nadelkari, who makes about 100 pieces a day. She is paid about 24 rupees ($0.40) for a set of 12 finished pieces. "We only get paid once in six months, and they don't keep proper accounts. But my husband doesn't let me go out and work, and we need the money, so I can't say 'no' to the work." Nadelkari and her friends are among nearly 38 million home-based workers in India, according to a 2012 survey by WIEGO, a global non-profit focused on informal workers. Restricted to their homes because of limited mobility and lack of childcare, they are engaged in providing low-paid manufacturing or services for local and global supply chains. The women stitch garments, embroider and attach sequins, make shoe uppers, handicrafts, as well as roll incense sticks and prepare food items such as pickles. Unlike self-employed home-based workers who sell their output directly, sub-contracted homeworkers are dependent on a middleman who drops off and picks up orders and keeps a part of the payment as commission. They are affected by fluctuating demand, cancelled orders, delayed payments and rejected goods. "These are the most invisible of informal workers," said Indira Gartenberg, who has researched home based-workers with non-profit LEARN in Mumbai. "Their situation is worse than a sweatshop, because at least in the sweatshop they don't have to pay for electricity and water and rent and they get paid regularly," she said. Economic Compulsion In India, the world's fastest growing major economy, more than 90 per cent of workers, or about 400 million people, are in the informal economy, according to the Centre for Equity Studies. Women and children in the informal economy are particularly vulnerable to exploitation. The garment industry is particularly prone to abuse. Of the 38 million home-based workers in India, about 45 per cent are involved in making garments or textiles, and half these workers are sub-contracted homeworkers, according to WIEGO. The piece-rate work that is common in the industry is low paid and seasonal. While the women do the bulk of the work, children pitch in during busy periods, even skipping school to work. "Contract work for textiles has been growing exponentially because of the growing popularity of readymade garments and fast fashion, even in India," said Shalini Sinha, WIEGO's sector specialist for home-based workers. "Many leading global brands are outsourcing to homeworkers, even if they are unaware of it. Homeworkers are the most vulnerable in the chain, yet they bear a lot of risks because the economic compulsion is so strong," she said. The supply chains of global fashion retailers have come under greater scrutiny since the Rana Plaza disaster in Bangladesh three years ago. Despite pressure from activists, India has not endorsed the International Labour Organization's convention 177, which requires member nations to adopt a national policy to improve the lives of homeworkers. That includes counting them as labourers, and providing social security protection and adequate remuneration. Activists including WIEGO are also campaigning for secure contracts, social protection, better remuneration and unions. For Nadelkari in Dharavi, a sprawling slum that is home to thousands of homeworkers, all of these would be welcome. "Until then, at least I get to do the work with my friends. We talk, we laugh. We forget how hard it is," she said. ($1 = 66.947 rupees) (Reuters)

India's home-based working women 'most invisible of informal workers'

Global stock markets rose on Thursday, after the Bank of England cut interest rates and revived a bond-buying program to cushion the blow to the economy from Britain&#39;s June 23 vote to leave the European Union. 
 
The launch of the policy-easing measures hammered Sterling and weighed on bond yields. 
 
The Bank of England cut its main rate by a quarter percentage point to a record low 0.25 per cent, and said it would take &quot;whatever action is necessary&quot; to achieve stability in the wake of Britain&#39;s vote to leave the EU. 
 
The rate cut was widely expected but not the other measures. 
 
&quot;The Bank of England has hit a perfect &#39;High Five&#39; at today&#39;s meeting, over-delivering against market expectations and bucking the recent trend of central banks disappointing,&quot; said Nick Gartside, a JP Morgan Asset Management portfolio manager. 
 
MSCI&#39;s world stocks index, which tracks shares in 45 nations, was up 0.30 per cent, on pace to snap a three-day losing streak. 
 
Sterling was down 1.59 per cent at $1.3110 and on track for the largest one-day fall against the Dollar in a month.&nbsp; 
 
&quot;The BoE&#39;s dovish guidance and bearish outlook for growth will leave the Pound at risk of further falls in the months ahead,&quot; said Joe Manimbo, senior market analyst at Western Union Business Solutions.&nbsp; 
 
Wall Street shares were little changed as investors were largely wary of making big bets ahead of Friday&#39;s US nonfarm payrolls report, data that may offer insight into the timing of the next Federal Reserve interest rate increase.&nbsp; 
 
&quot;Given that we&rsquo;ve got a big number coming out tomorrow, any investor willing to make a stand can just wait a day and have a lot more information,&quot; Jack Ablin, chief investment officer at BMO Private Bank in Chicago. 
 
The number of Americans filing for unemployment benefits unexpectedly rose last week, and orders for factory goods fell for a second straight month in June. The labour market, however, remains healthy and will probably continue to support economic growth for the remainder of this year.&nbsp; 
 
In afternoon trading, the Dow Jones industrial average was down 21.75 points, or 0.12 per cent, at 18,333.25; the S&amp;P 500 0.71 point, or 0.03 per cent, lower at 2,163.08, and the Nasdaq Composite was up 5.81 points, or 0.11 per cent, at 5,165.55. 
 
Europe&#39;s broad FTSEurofirst 300 index closed up 0.72 per cent at 1,331.68, its best day in two weeks. Strength in major financial and industrial stocks such as Aviva Plc and Siemens AG boosted the region&#39;s equity markets.&nbsp; 
 
Oil prices rose for a second straight day and US crude advanced firmly above the $40 a barrel mark on short-covering and after a modest stockpile drop at the delivery hub for US crude futures. 
 
Brent crude settled up $1.19, or 2.76 per cent, at $44.29 a barrel, while US crude settled up $1.10, or 2.69 per cent, at $41.93. 
 
In bond markets, the BoE rate cut sent yields on some short- and medium-term US Treasury&#39;s to their lowest in more than three weeks. 
 
The move pushed yields on 10-year UK government bonds, or Gilts, to a record low of 0.639 per cent. 
 
Benchmark 10-year US yields fell to their lowest in three days, 1.484 per cent. 
 
The Dollar gained against a basket of currencies for a second straight session, as investors continued to balance positions ahead of Friday&#39;s jobs report. 
 
The Dollar index, which tracks the greenback against six major currencies, was up 0.20 per cent at 95.750. 
 
Gold prices turned higher on the BoE decision, but the stronger Dollar kept a lid on gains. 
 
Spot gold prices were up 0.26 per cent at $1,361.02 an ounce. 
 
(Reuters)

Sterling was down 1.59% at $1.3110, and on track for the largest one-day fall against the Dollar in a month

Global stock markets rose on Thursday, after the Bank of England cut interest rates and revived a bond-buying program to cushion the blow to the economy from Britain's June 23 vote to leave the European Union. The launch of the policy-easing measures hammered Sterling and weighed on bond yields. The Bank of England cut its main rate by a quarter percentage point to a record low 0.25 per cent, and said it would take "whatever action is necessary" to achieve stability in the wake of Britain's vote to leave the EU. The rate cut was widely expected but not the other measures. "The Bank of England has hit a perfect 'High Five' at today's meeting, over-delivering against market expectations and bucking the recent trend of central banks disappointing," said Nick Gartside, a JP Morgan Asset Management portfolio manager. MSCI's world stocks index, which tracks shares in 45 nations, was up 0.30 per cent, on pace to snap a three-day losing streak. Sterling was down 1.59 per cent at $1.3110 and on track for the largest one-day fall against the Dollar in a month. "The BoE's dovish guidance and bearish outlook for growth will leave the Pound at risk of further falls in the months ahead," said Joe Manimbo, senior market analyst at Western Union Business Solutions. Wall Street shares were little changed as investors were largely wary of making big bets ahead of Friday's US nonfarm payrolls report, data that may offer insight into the timing of the next Federal Reserve interest rate increase. "Given that we’ve got a big number coming out tomorrow, any investor willing to make a stand can just wait a day and have a lot more information," Jack Ablin, chief investment officer at BMO Private Bank in Chicago. The number of Americans filing for unemployment benefits unexpectedly rose last week, and orders for factory goods fell for a second straight month in June. The labour market, however, remains healthy and will probably continue to support economic growth for the remainder of this year. In afternoon trading, the Dow Jones industrial average was down 21.75 points, or 0.12 per cent, at 18,333.25; the S&P 500 0.71 point, or 0.03 per cent, lower at 2,163.08, and the Nasdaq Composite was up 5.81 points, or 0.11 per cent, at 5,165.55. Europe's broad FTSEurofirst 300 index closed up 0.72 per cent at 1,331.68, its best day in two weeks. Strength in major financial and industrial stocks such as Aviva Plc and Siemens AG boosted the region's equity markets. Oil prices rose for a second straight day and US crude advanced firmly above the $40 a barrel mark on short-covering and after a modest stockpile drop at the delivery hub for US crude futures. Brent crude settled up $1.19, or 2.76 per cent, at $44.29 a barrel, while US crude settled up $1.10, or 2.69 per cent, at $41.93. In bond markets, the BoE rate cut sent yields on some short- and medium-term US Treasury's to their lowest in more than three weeks. The move pushed yields on 10-year UK government bonds, or Gilts, to a record low of 0.639 per cent. Benchmark 10-year US yields fell to their lowest in three days, 1.484 per cent. The Dollar gained against a basket of currencies for a second straight session, as investors continued to balance positions ahead of Friday's jobs report. The Dollar index, which tracks the greenback against six major currencies, was up 0.20 per cent at 95.750. Gold prices turned higher on the BoE decision, but the stronger Dollar kept a lid on gains. Spot gold prices were up 0.26 per cent at $1,361.02 an ounce. (Reuters)

Global stocks rally after Bank of England's bond-buying measures, but Pound takes hit

Tesla Motors Inc reported a steeper than expected quarter loss on Wednesday on higher spending at its vehicle and battery factories&nbsp;and said adjusted profitability could be within sight if the company meets its delivery goals.&nbsp; 
 
The 13th straight quarterly loss for the Silicon Valley electric carmaker underscores the financial hurdles that hamper it while it takes on increasingly ambitious goals - a ten-fold ramp of vehicle production in three years and the recent plan to acquire solar panel installer, SolarCity Corp. 
 
Tesla, led by entrepreneur Elon Musk, said it was still on track to deliver about 50,000 new Model S and Model X vehicles during the second half of 2016, and reiterated that it would spend $2.25 billion in capital expenditures in 2016 to prepare for its upcoming Model 3 sedan. 
 
If the company can fulfil those production and delivery goals in the second half of the year, &quot;we`ve got a great chance of being non-GAAP profitable,&quot; chief financial officer Jason Wheeler told analysts on a conference call without specifying a time period. 
 
Tesla reported its first-ever quarterly profit in 2013. 
 
Shares of the company, which had acquired SolarCity for $2.6 billion, were little changed in after-hours trading. 
 
&quot;There&#39;s no doubt Tesla will remain the category leader as electric vehicles become increasingly mainstream, but it could be years before the bottom line justifies any investment in Tesla other than a purely speculative one,&quot; said James Brumley, InvestorPlace.com analyst. 
 
Tesla reported last month it had missed its vehicle delivery target for the second consecutive quarter, raising doubts it would hit its annual target. But Tesla could end the year just shy of its original delivery target of 80,000 to 90,000 vehicles for 2016 if it delivers 50,000 cars in the second half of 2016. 
 
&quot;We were in production hell for the first six months of the year,&quot; Musk told analysts during a conference call. &quot;Man, it was hell. And we managed to climb out of hell partway through June and now the production line is humming and our suppliers mostly have their shit together.&quot; 
 
Musk warned he would fire suppliers and reorganize internal teams who fail to meet a target date of July 1 to begin production of the Model 3, even while acknowledging it will not be possible to meet that date.&nbsp; 
 
The company said it planned to open a new store every four days on average for the rest of the year, including in Taipei, Seoul and Mexico City, but did not disclose the cost. 
 
Excluding items, Tesla lost $1.06 per share in the three months ended June 30, wider than analysts&#39; expected loss of 52 cents per share, according to Thomson Reuters I/B/E/S.&nbsp; 
 
Tesla said its net quarterly loss widened to $293.2 million, or $2.09 per share, from $184.2 million, or $1.45 per share, a year earlier. Total revenue rose 33 per cent to $1.27 billion. 
 
Tesla said gross margins will improve by 2-3 percentage points in the second half of the year, although adjusted operating expenses will increase for the full year by 30 per cent. 
 
Musk sketched out an ambitious plan last month to venture into manufacturing electric trucks and buses, as well as expanding the company&#39;s solar energy business. 
 
He has cast the SolarCity tie-up as a long-term bet on a carbon-free energy and transportation company that provides cars, battery storage, solar panels, and other energy solutions&nbsp;while leveraging technology and cost savings from the combined entity. 
 
SolarCity&#39;s chairman and biggest shareholder, Musk has said the combined company will help save at least $150 million a year and require only a &quot;small equity capital raise&quot; next year. But some analysts are wary of the combination of two companies burning through huge amounts of cash. 
 
Tesla unveiled its massive battery factory, the Gigafactory, in Nevada last week, and on the conference call, Musk said he foresees &quot;exponential growth&quot; in Tesla`s storage battery business. 
 
(Reuters)

Silicon Valley electric carmaker reported the 13th straight quarterly loss while it takes on increasingly ambitious goals

Tesla Motors Inc reported a steeper than expected quarter loss on Wednesday on higher spending at its vehicle and battery factories and said adjusted profitability could be within sight if the company meets its delivery goals. The 13th straight quarterly loss for the Silicon Valley electric carmaker underscores the financial hurdles that hamper it while it takes on increasingly ambitious goals - a ten-fold ramp of vehicle production in three years and the recent plan to acquire solar panel installer, SolarCity Corp. Tesla, led by entrepreneur Elon Musk, said it was still on track to deliver about 50,000 new Model S and Model X vehicles during the second half of 2016, and reiterated that it would spend $2.25 billion in capital expenditures in 2016 to prepare for its upcoming Model 3 sedan. If the company can fulfil those production and delivery goals in the second half of the year, "we`ve got a great chance of being non-GAAP profitable," chief financial officer Jason Wheeler told analysts on a conference call without specifying a time period. Tesla reported its first-ever quarterly profit in 2013. Shares of the company, which had acquired SolarCity for $2.6 billion, were little changed in after-hours trading. "There's no doubt Tesla will remain the category leader as electric vehicles become increasingly mainstream, but it could be years before the bottom line justifies any investment in Tesla other than a purely speculative one," said James Brumley, InvestorPlace.com analyst. Tesla reported last month it had missed its vehicle delivery target for the second consecutive quarter, raising doubts it would hit its annual target. But Tesla could end the year just shy of its original delivery target of 80,000 to 90,000 vehicles for 2016 if it delivers 50,000 cars in the second half of 2016. "We were in production hell for the first six months of the year," Musk told analysts during a conference call. "Man, it was hell. And we managed to climb out of hell partway through June and now the production line is humming and our suppliers mostly have their shit together." Musk warned he would fire suppliers and reorganize internal teams who fail to meet a target date of July 1 to begin production of the Model 3, even while acknowledging it will not be possible to meet that date. The company said it planned to open a new store every four days on average for the rest of the year, including in Taipei, Seoul and Mexico City, but did not disclose the cost. Excluding items, Tesla lost $1.06 per share in the three months ended June 30, wider than analysts' expected loss of 52 cents per share, according to Thomson Reuters I/B/E/S. Tesla said its net quarterly loss widened to $293.2 million, or $2.09 per share, from $184.2 million, or $1.45 per share, a year earlier. Total revenue rose 33 per cent to $1.27 billion. Tesla said gross margins will improve by 2-3 percentage points in the second half of the year, although adjusted operating expenses will increase for the full year by 30 per cent. Musk sketched out an ambitious plan last month to venture into manufacturing electric trucks and buses, as well as expanding the company's solar energy business. He has cast the SolarCity tie-up as a long-term bet on a carbon-free energy and transportation company that provides cars, battery storage, solar panels, and other energy solutions while leveraging technology and cost savings from the combined entity. SolarCity's chairman and biggest shareholder, Musk has said the combined company will help save at least $150 million a year and require only a "small equity capital raise" next year. But some analysts are wary of the combination of two companies burning through huge amounts of cash. Tesla unveiled its massive battery factory, the Gigafactory, in Nevada last week, and on the conference call, Musk said he foresees "exponential growth" in Tesla`s storage battery business. (Reuters)

Tesla loss widens as company works to speed production

Indian bond and share prices rose as investors welcomed the long-awaited passage of the goods and services tax (GST), though gains were tempered by concerns about the amount of work needed to bring the reforms into reality. 
 
The broader NSE Nifty index pared earlier strong gains to rise 0.28 per cent, having risen as much as 0.66 per cent. Meanwhile, the benchmark BSE Sensex 10-year bond yield was down 3 bps at 7.17 per cent. 
 
The GST passage in the Rajya Sabha paves the way for the rollout of India&#39;s single biggest tax reform since independence, one that harmonises 11 state and central levies into a national sales tax and cuts business transaction costs. 
 
Its passage marks a victory for Prime Minister Narendra Modi as he seeks to boost growth in Asia&#39;s third-largest economy, and is a relief for investors, especially overseas, who&#39;d been growing impatient about the pace of reforms. 
 
But the government and companies from sectors such as automakers and logistics will now need to implement new technology structures in preparation for the new taxes. 
 
Nomura analysts also warned the GST could negatively impact the economy in the short-term as higher taxes hit consumption and push up inflation by 20-70 basis points in the first year of implementation. 
 
&quot;Contrary to general perceptions, we believe that the short-term impact of the GST could be mixed, but the long-term impact will be clearly positive,&quot; Nomura said in a research note.&nbsp; 
 
Shares of automakers rose as the heavily taxed sector is expected to be one of the biggest beneficiaries of a unified and national taxation system. Tata Motors surged 4.3 per cent. 
 
Logistics firms also gained, with Shipping Corp of India up 3.8 per cent and Transport Corp of India up 2 per cent. 
 
(Reuters)

The National Stock Exchange index rose by 0.66% while the Bombay Stock Exchange was down by 3bps at 7.17%

Indian bond and share prices rose as investors welcomed the long-awaited passage of the goods and services tax (GST), though gains were tempered by concerns about the amount of work needed to bring the reforms into reality. The broader NSE Nifty index pared earlier strong gains to rise 0.28 per cent, having risen as much as 0.66 per cent. Meanwhile, the benchmark BSE Sensex 10-year bond yield was down 3 bps at 7.17 per cent. The GST passage in the Rajya Sabha paves the way for the rollout of India's single biggest tax reform since independence, one that harmonises 11 state and central levies into a national sales tax and cuts business transaction costs. Its passage marks a victory for Prime Minister Narendra Modi as he seeks to boost growth in Asia's third-largest economy, and is a relief for investors, especially overseas, who'd been growing impatient about the pace of reforms. But the government and companies from sectors such as automakers and logistics will now need to implement new technology structures in preparation for the new taxes. Nomura analysts also warned the GST could negatively impact the economy in the short-term as higher taxes hit consumption and push up inflation by 20-70 basis points in the first year of implementation. "Contrary to general perceptions, we believe that the short-term impact of the GST could be mixed, but the long-term impact will be clearly positive," Nomura said in a research note. Shares of automakers rose as the heavily taxed sector is expected to be one of the biggest beneficiaries of a unified and national taxation system. Tata Motors surged 4.3 per cent. Logistics firms also gained, with Shipping Corp of India up 3.8 per cent and Transport Corp of India up 2 per cent. (Reuters)

Indian market witnessed mixed response from GST clearance