As per the data released by the National Statistical Office (NSO), India’s Gross Domestic Product (GDP) for the April-June quarter (Q1) slipped by a sharp 23.9 per cent.

First GDP numbers during COVID times

The central bank will tolerate an inflation rate that exceeds its 2% target for an extended period before raising interest rates.

Federal reserve is taking a new approach to inflation

United Airlines is preparing for the biggest pilot furloughs of its history after announcing on Thursday the need to cut 2,850 pilot jobs.

United Airlines announces biggest pilot job cut in its history

The Middle East’s 21 billionaires have amassed US$63 million every day since March

Wealth of 21 billionaires in Mena region shoots up

China's Alibaba Group has put on hold plans to invest in Indian companies, two sources aware of the plans told Reuters, amid souring business relations and rising political tension between the two nations after a clash on their Himalayan border.

Alibaba, which has fuelled the growth of several Indian start-ups, will not put in fresh funds to expand its investments in the country for at least six months, the sources said.

However, there are no plans to reduce its stakes or exit investments, they added. The sources declined to be identified as the talks are private.

Alibaba did not respond to a request for comment.

The Chinese conglomerate and its affiliates Alibaba Capital Partners and Ant Group have invested more than $2 billion in Indian companies since 2015 and participated in funding rounds of at least another $1.8 billion, according to data from PitchBook, which tracks private market financing.

Hitting the brakes could slow fundraising plans for some of Alibaba's investee companies in India, which include payments platform Paytm, restaurant aggregator and food delivery service Zomato, and e-grocer BigBasket.

Ant Group, which is preparing for an IPO, on Tuesday called out the challenges it faces in India.

In its IPO filing, Ant said a change in foreign investment rules in India had led to a "further evaluation of the timing" of its additional investment in Zomato.

Ant also said it counted Paytm owner One97 Communications, in which it has a 30% stake, as an associate or joint venture partner over which it has "significant influence".

India, in April, put investments from China and other bordering countries under greater scrutiny to prevent opportunistic takeovers amid the COVID-19 pandemic.

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&nbsp;

However, a border clash in June, in which 20 Indian soldiers were killed, escalated tensions, and India imposed stricter curbs on Chinese goods and businesses amid calls for boycotts.

"Alibaba and a few others have put on hold their India investment plans for six months and they are hoping that things would cool off a bit after that," said one of the sources.

Also Read:&nbsp;<a href="https://www.wionews.com/business-economy/in-a-move-aimed-at-placating-trump-alibaba-claims-to-support-us-businesses-322114">In a move aimed at placating Trump, Alibaba claims to support US businesses</a>

"No one is planning to put their stakes in Indian ventures on the block given the market condition and the fact that there aren't many buyers," the person said.

Indian start-ups are heavily funded by Chinese investors such as Alibaba and Tencent &lt;0700.HK&gt;. Bankers have previously said they were looking to bolster their presence in the country with an aim to grow their revenues outside China.

There is a lot of interest from European and U.S.-based investors to fill the gap left by the Chinese, said Arjun Sinha, partner at Indian law firm, AP &amp; Partners.

"Deal making, however, may take slightly longer as these will be new relationships as opposed to further funding rounds," said Sinha.

China's Alibaba Group has put on hold plans to invest in Indian companies, two sources aware of the plans told Reuters, amid souring business relations and rising political tension between the two nations after a clash on their Himalayan border.

China's Alibaba Group has put on hold plans to invest in Indian companies, two sources aware of the plans told Reuters, amid souring business relations and rising political tension between the two nations after a clash on their Himalayan border. Alibaba, which has fuelled the growth of several Indian start-ups, will not put in fresh funds to expand its investments in the country for at least six months, the sources said. However, there are no plans to reduce its stakes or exit investments, they added. The sources declined to be identified as the talks are private. Alibaba did not respond to a request for comment. The Chinese conglomerate and its affiliates Alibaba Capital Partners and Ant Group have invested more than $2 billion in Indian companies since 2015 and participated in funding rounds of at least another $1.8 billion, according to data from PitchBook, which tracks private market financing. Hitting the brakes could slow fundraising plans for some of Alibaba's investee companies in India, which include payments platform Paytm, restaurant aggregator and food delivery service Zomato, and e-grocer BigBasket. Ant Group, which is preparing for an IPO, on Tuesday called out the challenges it faces in India. In its IPO filing, Ant said a change in foreign investment rules in India had led to a "further evaluation of the timing" of its additional investment in Zomato. Ant also said it counted Paytm owner One97 Communications, in which it has a 30% stake, as an associate or joint venture partner over which it has "significant influence". India, in April, put investments from China and other bordering countries under greater scrutiny to prevent opportunistic takeovers amid the COVID-19 pandemic. × However, a border clash in June, in which 20 Indian soldiers were killed, escalated tensions, and India imposed stricter curbs on Chinese goods and businesses amid calls for boycotts. "Alibaba and a few others have put on hold their India investment plans for six months and they are hoping that things would cool off a bit after that," said one of the sources. Also Read: In a move aimed at placating Trump, Alibaba claims to support US businesses "No one is planning to put their stakes in Indian ventures on the block given the market condition and the fact that there aren't many buyers," the person said. Indian start-ups are heavily funded by Chinese investors such as Alibaba and Tencent <0700.HK>. Bankers have previously said they were looking to bolster their presence in the country with an aim to grow their revenues outside China. There is a lot of interest from European and U.S.-based investors to fill the gap left by the Chinese, said Arjun Sinha, partner at Indian law firm, AP & Partners. "Deal making, however, may take slightly longer as these will be new relationships as opposed to further funding rounds," said Sinha.

Alibaba puts India investment plan on hold amid China tensions - Sources

Alibaba’s decision could impact the fundraising plans of some of its Indian investee companies.

China's Alibaba Group puts India investment plan on hold

Japanese automaker Honda has agreed to pay $96.5 million to settle a probe centered on defective airbags in some of its vehicles.

Honda reaches $85 Million settlement over faulty airbags

American Airlines said Tuesday it will cut more than 40,000 jobs, including 19,000 through furloughs and layoffs

American Airlines plans over 40,000 job cuts

Brazil's economy likely cratered 9.4% under the impact of the coronavirus outbreak in the country during the second quarter,

Brazil's GDP Probably Crumbled 9.4% in Second Quarter

French luxury goods giant LVMH and U.S. jewelry chain Tiffany will give themselves another three months to complete their $16.2 billion tie-up

LVMH and Tiffany push back deal deadline by 3 months

The FBI wants American businesses to stop dealing with the Chinese companies. According to the FBI report,&nbsp;Chinese businesses lie, cheat and steal from American businesses.

Counterfeit goods, pirated software, and stolen trade secrets cost the United States&nbsp;well over 200 billion dollars every year.

Now, the FBI is blaming China for this. America's Federal Bureau of Investigation has issued a warning to corporates. &nbsp;A new FBI report exposes how China has been stealing American innovations targeting every potential source from businesses to even universities.

China steals original ideas through joint ventures between American and Chinese companies.

The FBI feels that such tie-ups provide an opportunity for a competing company to obtain restricted information.

Academic collaborations can be used to gain access to useful scientific research.

China runs talent recruitment programs, through which the country targets scientists, engineers, professionals, foreign government employees and contractors. The aim is to gather foreign research and technology. It is used to target military and civilian programs.

China uses trade shows and conferences as hunting grounds for intelligence.

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Attention, American business owners! <a href="https://twitter.com/hashtag/DYK?src=hash&amp;ref_src=twsrc%5Etfw">#DYK</a> the Chinese government steals intellectual property and trade secrets from U.S. companies and researchers? Learn more about the risks the Chinese Communist Party poses to corporate America at <a href="https://t.co/eR7Xqxh4Mw">https://t.co/eR7Xqxh4Mw</a>.
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The FBI has advised American businesses against working with Chinese companies.

It says the threat posed by Chinese interests is much bigger. Foreign travel can leave US employees vulnerable. The FBI says spies gather information through covert searches of luggage and hotel rooms.

Electronics can be confiscated and Americans workers can be subjected to extensive questioning. Even pushed into compromising situations. All in an effort to steal information.

The FBI now defines China as the world’s principal infringer of intellectual property.

Christopher Wray, FBI director said: "Over the past decade, we've seen economic espionage cases with a link to china increase by approximately 1,300 percent. The stakes could not be higher and the potential economic harm to american businesses and the economy as a whole almost defies calculation."

After losing billions --- the United States is now waking up to China’s theft. China has also been compelling European companies to hand over patents.

According to a survey, one in five firms has been forced to transfer technologies for market access.&nbsp;

The FBI wants American businesses to stop dealing with the Chinese companies. According to the FBI report, Chinese businesses lie, cheat and steal from American businesses.

The FBI wants American businesses to stop dealing with the Chinese companies. According to the FBI report, Chinese businesses lie, cheat and steal from American businesses. Counterfeit goods, pirated software, and stolen trade secrets cost the United States well over 200 billion dollars every year. Now, the FBI is blaming China for this. America's Federal Bureau of Investigation has issued a warning to corporates. A new FBI report exposes how China has been stealing American innovations targeting every potential source from businesses to even universities. China steals original ideas through joint ventures between American and Chinese companies. The FBI feels that such tie-ups provide an opportunity for a competing company to obtain restricted information. Academic collaborations can be used to gain access to useful scientific research. China runs talent recruitment programs, through which the country targets scientists, engineers, professionals, foreign government employees and contractors. The aim is to gather foreign research and technology. It is used to target military and civilian programs. China uses trade shows and conferences as hunting grounds for intelligence. Attention, American business owners! #DYK the Chinese government steals intellectual property and trade secrets from U.S. companies and researchers? Learn more about the risks the Chinese Communist Party poses to corporate America at https://t.co/eR7Xqxh4Mw. — FBI (@FBI) August 23, 2020 × The FBI has advised American businesses against working with Chinese companies. It says the threat posed by Chinese interests is much bigger. Foreign travel can leave US employees vulnerable. The FBI says spies gather information through covert searches of luggage and hotel rooms. Electronics can be confiscated and Americans workers can be subjected to extensive questioning. Even pushed into compromising situations. All in an effort to steal information. The FBI now defines China as the world’s principal infringer of intellectual property. Christopher Wray, FBI director said: "Over the past decade, we've seen economic espionage cases with a link to china increase by approximately 1,300 percent. The stakes could not be higher and the potential economic harm to american businesses and the economy as a whole almost defies calculation." After losing billions --- the United States is now waking up to China’s theft. China has also been compelling European companies to hand over patents. According to a survey, one in five firms has been forced to transfer technologies for market access.

FBI warns American businesses to stop dealing with Chinese companies

Most oil rigs around the world are temporarily idle and the&nbsp;situation could soon turn permanent.&nbsp;

Oil consumption has dropped as&nbsp;lines at fuel pumps remain&nbsp;thin amid&nbsp;travel restrictions due to the virus worldwide.

Global demand fell 30 per cent during the pandemic as oil prices touched historic lows in April. For the first time, US oil prices slipped into negative and&nbsp;there was panic in major oil-producing countries.&nbsp;So, the oil bloc got together and cut production to keep up the prices.

The move worked but it left a big hole in the income statement. Without sufficient revenue, it is becoming expensive to stay in business.

In the last quarter, Saudi Aramco's&nbsp;profit plunged over 70 per cent. Royal Dutch Shell profit was down by 80 per cent. BP's efforts to stay over the red line is failing.

British oil firm has reported a loss of $17 billion. Exxon Mobil too has turned into a loss-making entity.&nbsp;A depressed stock market has made&nbsp;fundraising difficult.

Also, companies have been trying to save&nbsp;money&nbsp;laying off staff and cutting budgets. At least one million oil and gas employees are out of work.

Many distressed oil firms&nbsp; have been shutting down rigs and refineries.

In recent weeks caps have been put on at least eight rigs in America alone. Oil refiners are permanently closing processing plants in Asia and North America.

High-cost refineries in Europe could be the next in line. Plants in Australia and New Zealand face the same fate.&nbsp;According to the IMF, Gulf oil-producing countries' fate is sealed too. Their financial wealth will be depleted in the next 15 years if non-oil revenues don't make up for the losses.

According to a case study, Marathon Petroleum is America's largest refiner by volume. It is planning to halt some operations in California and New Mexico and intends to use the larger plant as an oil-storage facility and in the future produce renewable diesel&nbsp;from industrial waste and used cooking oil.

Even before the pandemic, six oil majors - BP, Shell, Chevron, Total, Eni and Exxon were pumping billions into clean energy.

However, it was just one per cent of their combined wealth.&nbsp;BP, one of the earliest oil explorers says the pandemic has changed the industry dynamics and&nbsp;quickened the shift away from fossil fuels.&nbsp;

Most oil rigs around the world are temporarily idle and the situation could soon turn permanent. Oil consumption has dropped as lines at fuel pumps remain thin amid travel restrictions due to the virus worldwide.

Most oil rigs around the world are temporarily idle and the situation could soon turn permanent. Oil consumption has dropped as lines at fuel pumps remain thin amid travel restrictions due to the virus worldwide. Global demand fell 30 per cent during the pandemic as oil prices touched historic lows in April. For the first time, US oil prices slipped into negative and there was panic in major oil-producing countries. So, the oil bloc got together and cut production to keep up the prices. The move worked but it left a big hole in the income statement. Without sufficient revenue, it is becoming expensive to stay in business. In the last quarter, Saudi Aramco's profit plunged over 70 per cent. Royal Dutch Shell profit was down by 80 per cent. BP's efforts to stay over the red line is failing. British oil firm has reported a loss of $17 billion. Exxon Mobil too has turned into a loss-making entity. A depressed stock market has made fundraising difficult. Also, companies have been trying to save money laying off staff and cutting budgets. At least one million oil and gas employees are out of work. Many distressed oil firms have been shutting down rigs and refineries. In recent weeks caps have been put on at least eight rigs in America alone. Oil refiners are permanently closing processing plants in Asia and North America. High-cost refineries in Europe could be the next in line. Plants in Australia and New Zealand face the same fate. According to the IMF, Gulf oil-producing countries' fate is sealed too. Their financial wealth will be depleted in the next 15 years if non-oil revenues don't make up for the losses. According to a case study, Marathon Petroleum is America's largest refiner by volume. It is planning to halt some operations in California and New Mexico and intends to use the larger plant as an oil-storage facility and in the future produce renewable diesel from industrial waste and used cooking oil. Even before the pandemic, six oil majors - BP, Shell, Chevron, Total, Eni and Exxon were pumping billions into clean energy. However, it was just one per cent of their combined wealth. BP, one of the earliest oil explorers says the pandemic has changed the industry dynamics and quickened the shift away from fossil fuels.

Pandemic effect: Oil rigs face closure worldwide amid shift towards clean energy

India's ease of doing business ranking has improved significantly but Indian companies continue to pay a high cost for compliance. Coronavirus has added more safety rules that will increase the compliance burden. Watch report.

Center, states have separate laws on business: Ease of doing business improved significantly

Spot gold briefly touched a record high of $2000 an ounce on Tuesday amid a rally for the commodity

Gold tops $2000 for the first time in history of U.S | U.S Markets | Yellow Metal | WION

Virgin Atlantic has filed for bankruptcy in the United States as the global airline industry reels from the coronavirus pandemic.

Virgin Atlantic files for bankruptcy in US

Italian fashion group Prada said on Wednesday sales had recovered sharply in Asia since June after the fallout from the coronavirus pandemic triggered

Sharp sales recovery in Asia | Luxury group hit by store closures | WION

Indonesia’s government will propose to parliament expanding its 2021 fiscal deficit assumption in Southeast Asia’s biggest economy to 5.2% of gross domestic product

Indonesia's 2021 fiscal deficit seen expanding to 5.2% of GDP

A small village of the Miao ethnic group in central China's Hunan Province has shaken off poverty and achieved rapid development in recent years, attracting many youths to come back and start businesses in their hometown.

Miao village out of poverty attracts youths back to start business in hometown

Smartphone shipments in China fell 16% in June compared with a year earlier, according to government data released on Tuesday.

The numbers suggest that handset demand in China remains lukewarm despite the country's recovery from the coronavirus pandemic, boding poorly for Apple Inc and its local rivals like Huawei Technologies Co Ltd.

Also read:&nbsp;<a href="https://www.wionews.com/world/severe-floods-in-china-leave-over-38-million-affected-141-dead-or-missing-312838" hreflang="en">Severe floods in China leave over 38 million affected, 141 dead or missing</a>

Phone makers shipped 27.7 million handsets in June, down from 32.7 million in June 2019, according to the China Academy of Information and Communications Technology (CAICT), a state-backed think tank.

That follows a similar decline in May, when shipments dropped more than 10% annually, from 36.4 million in May 2019 to 32.6 million one year later.

Also read:&nbsp;<a href="https://www.wionews.com/world/majority-of-us-firms-in-hong-kong-concerned-about-security-law-312843" hreflang="en">Majority of US firms in Hong Kong concerned about security law</a>

In April, after a slump in the previous months due to the health crisis, CAICT reported that smartphone shipments grew an unexpected 17% percent annually.

At the time, the jump suggested potential for a rebound in the China's smartphone brands, which for years have wrestled with shrinking growth at home.&nbsp;

China is one of the few countries where retail outlets have re-opened almost fully after a lockdown period as COVID-19 spread.

Apple and its rival smartphone brands do not publicly release regional shipments.

Smartphone shipments in China fell 16% in June compared with a year earlier, according to government data released on Tuesday. The numbers suggest that handset demand in China remains lukewarm despite the country's recovery from the coronavirus pandemic, boding poorly for Apple Inc and its local rivals like Huawei Technologies Co Ltd.

Smartphone shipments in China fell 16% in June compared with a year earlier, according to government data released on Tuesday. The numbers suggest that handset demand in China remains lukewarm despite the country's recovery from the coronavirus pandemic, boding poorly for Apple Inc and its local rivals like Huawei Technologies Co Ltd. Also read: Severe floods in China leave over 38 million affected, 141 dead or missing Phone makers shipped 27.7 million handsets in June, down from 32.7 million in June 2019, according to the China Academy of Information and Communications Technology (CAICT), a state-backed think tank. That follows a similar decline in May, when shipments dropped more than 10% annually, from 36.4 million in May 2019 to 32.6 million one year later. Also read: Majority of US firms in Hong Kong concerned about security law In April, after a slump in the previous months due to the health crisis, CAICT reported that smartphone shipments grew an unexpected 17% percent annually. At the time, the jump suggested potential for a rebound in the China's smartphone brands, which for years have wrestled with shrinking growth at home. China is one of the few countries where retail outlets have re-opened almost fully after a lockdown period as COVID-19 spread. Apple and its rival smartphone brands do not publicly release regional shipments.

Smartphone shipments in China fall 16% in June

On Monday, the rating agency&nbsp;Moody's downgraded India's ratings from Baa2 to Baa3, citing that the coronavirus pandemic wasn't the primary factor playing into consideration.

The agency said that the period of slower growth could trigger problems for the policymaking institutions, with financial sector susceptible to increased debt and pressure.

Also read:&nbsp;<a href="/business-economy/india-may-see-0-gdp-growth-this-fiscal-year-says-moodys-report-297398" hreflang="en">India may see 0% GDP growth this fiscal year, says Moody's report</a>

"Measures to improve India's fiscal strength, which were at the heart of the government's policy framework a few years ago, have underwhelmed," the ratings agency claimed&nbsp;in a statement.

Even though coronavirus may be one of the factors, the agency asserted that the pandemic has magnified preexisting issues in the country's credit profile, news agency Reuters reported.

The agency further maintained its outlook on the country as "negative".

<h6><img alt="ii" data-entity-type="file" data-entity-uuid="19660b9b-3599-46a2-bec0-8bc0e2cb3a05" src="//cdn.wionews.com/sites/default/files/inline-images/Untitled%20design-6_1.jpg" /> 
Pedestrians walk past a mural in Mumbai | AFP 
&nbsp;</h6>

On May 8, analysts at Moody's claimed that the pandemic will impact the rate of growth, with the country set to witness 0 per cent growth in the ongoing fiscal year.

The ratings agency claimed it does not expect&nbsp;India to see any&nbsp;growth in financial year 2021.

The coronavirus&nbsp;spread in the country has&nbsp;"significantly reduced the prospects of a durable fiscal consolidation," Moody's&nbsp;said in a report.

Moody's Investors Service in November 2019 had&nbsp;cut India's ratings outlook to "negative" from "stable", citing increasing risks, and while claiming&nbsp;that growth in Asia's third-largest economy will remain lower than in the past.

(with inputs from Reuters and AFP)

On Monday, the rating agency Moody's downgraded India's ratings from Baa2 to Baa3, citing that the coronavirus pandemic wasn't the primary factor playing into consideration.

On Monday, the rating agency Moody's downgraded India's ratings from Baa2 to Baa3, citing that the coronavirus pandemic wasn't the primary factor playing into consideration. The agency said that the period of slower growth could trigger problems for the policymaking institutions, with financial sector susceptible to increased debt and pressure. Also read: India may see 0% GDP growth this fiscal year, says Moody's report "Measures to improve India's fiscal strength, which were at the heart of the government's policy framework a few years ago, have underwhelmed," the ratings agency claimed in a statement. Even though coronavirus may be one of the factors, the agency asserted that the pandemic has magnified preexisting issues in the country's credit profile, news agency Reuters reported. The agency further maintained its outlook on the country as "negative". Pedestrians walk past a mural in Mumbai | AFP On May 8, analysts at Moody's claimed that the pandemic will impact the rate of growth, with the country set to witness 0 per cent growth in the ongoing fiscal year. The ratings agency claimed it does not expect India to see any growth in financial year 2021. The coronavirus spread in the country has "significantly reduced the prospects of a durable fiscal consolidation," Moody's said in a report. Moody's Investors Service in November 2019 had cut India's ratings outlook to "negative" from "stable", citing increasing risks, and while claiming that growth in Asia's third-largest economy will remain lower than in the past. (with inputs from Reuters and AFP)

Moody's downgrades India's ratings, warns of stress in financial sector

The UK’s hospitality sector has taken a dramatic financial hit since they were ordered to close down in the month of March.

UK: Cafes struggle to stay afloat

The Union Finance Minister Nirmala Sitharaman on Tuesday (March 24) said that last date for the income tax return for the financial year 18-19 has been extended to June 30, 2020. The finance minister also extended Aadhar-PAN linking date.

Indian Finance Minister extends deadlines to provide relief

Asian shares struggled to find their footing on Wednesday and bonds held stunning gains, as an emergency rate cut from the U.S. Federal Reserve seemed to stoke rather than soothe fears over the coronavirus' widening global economic fallout.

Also read: <a href="https://www.wionews.com/business-economy/nifty-sensex-slip-as-fed-rate-cut-fails-to-boost-confidence-284125">Nifty, Sensex slip as Fed rate cut fails to boost confidence</a>

The surprise 50 basis point cut, the Fed's first off-schedule move since the depths of the financial crisis more than a decade ago, came with comments highlighting both the scale of the challenge and the limits of monetary policy.

MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%, though most of the gains were confined to South Korea where the government announced a big stimulus package.

Also read: <a href="https://www.wionews.com/business-economy/world-bank-announces-up-to-12-billion-in-immediate-funds-for-coronavirus-284072">World Bank announces up to $12 billion in immediate funds for coronavirus</a>

European futures pointed to a steady open, with FTSE futures flat and EuroSTOXX 50 futures up 0.3%.

After Wall Street tumbled overnight, futures for the S&amp;P 500 rose 1.4% on the resurgent performance of Joe Biden in Democratic Party primaries. A moderate, Biden is now set up as the main challenger to self-described democratic socialist Bernie Sanders.

Currencies and bonds showed little such exuberance. The dollar remained on the back foot and the yield on benchmark 10-year U.S. Treasuries, which falls when prices rise, held at 0.9748% - not far over the once-unimaginable low of 0.9060% hit overnight.

"U.S. Treasuries are moving even lower and credit spreads are widening in Asia today. That is not the usual effect that you would see from a movie like this," said Rishi Jalan, Citigroup co-head of debt capital markets syndication.

"This decision shows the coronavirus impact is real and could have a material impact on growth. For market participants, it shows thinking of 'The Fed is expecting something that we have not yet priced in.'"

Japan's Nikkei closed flat, while Australia's S&amp;P/ASX 200 fell 1.7%. Stocks in Hong Kong and China traded either side of flat.

Korean stocks bucked broader weakness, rising 2% after the government announced a $9.8 billion stimulus package to mitigate the impact of the virus outbreak.

The dollar touched a five-month low against the safe-haven Japanese yen and slipped against most other Asian currencies.

"Given the way that the market's reacted, it's telling you that there's a little bit of panic," said Andrew Gillan, head of Asia ex-Japan equities at Janus Henderson in Singapore.

"They're a bit worried that interest rate cuts are not going to make a massive difference...and what's going to be required is probably going to be more fiscal stimulus," he said, his fund having invested, for example, in Chinese cement and construction stocks in anticipation of more government support measures.

The Fed's surprise move followed a massive shift in money market pricing late last week.

Futures swung rapidly to expect such a cut at the Fed's March meeting.

Now they imply another 50 basis points of easing by July, even as the investors and the Fed itself raise questions about the efficacy of easing to deal with a public health crisis.

"We do recognize that a rate cut will not reduce the rate of infection, it won't fix a broken supply chain; we get that," Fed Chairman Jerome Powell told reporters at a press conference.

More than 3,000 people have been killed by the coronavirus, about 3.4% of those infected - far above the seasonal flu's fatality rate of under 1%.

It continues to spread quickly beyond the epicenter in China, with Italy overnight reporting a jump in deaths to 79 and South Korea reporting more than 500 new cases on Wednesday.

"The question here is whether a conventional interest rate response is sufficient," said Sameer Goel, chief strategist, Asia macro, at Deutsche Bank in Singapore.

"It's still not clear how big the problem ultimately is, or could be, and until you know that, it's hard to know how much medicine to apply to it."

In currencies, the U.S. dollar clawed back some of its losses on the euro and yen but was broadly on the back foot.

It last traded at $0.6596 per Australian dollar and $1.1160 per euro. After falling to as low as 106.84 yen, the dollar pared losses to buy 107.42 yen by midafternoon.

Oil prices firmed on expectations of production cuts, with Brent rising 90 cents to $52.79 per barrel and U.S. crude up 1.9% at $48.06 a barrel.

Gold rose 0.2% to $1642.21 an ounce.

Asian shares struggled to find their footing on Wednesday and bonds held stunning gains, as an emergency rate cut from the U.S. Federal Reserve seemed to stoke rather than soothe fears over the coronavirus' widening global economic fallout.

Asian shares struggled to find their footing on Wednesday and bonds held stunning gains, as an emergency rate cut from the U.S. Federal Reserve seemed to stoke rather than soothe fears over the coronavirus' widening global economic fallout. Also read: Nifty, Sensex slip as Fed rate cut fails to boost confidence The surprise 50 basis point cut, the Fed's first off-schedule move since the depths of the financial crisis more than a decade ago, came with comments highlighting both the scale of the challenge and the limits of monetary policy. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.2%, though most of the gains were confined to South Korea where the government announced a big stimulus package. Also read: World Bank announces up to $12 billion in immediate funds for coronavirus European futures pointed to a steady open, with FTSE futures flat and EuroSTOXX 50 futures up 0.3%. After Wall Street tumbled overnight, futures for the S&P 500 rose 1.4% on the resurgent performance of Joe Biden in Democratic Party primaries. A moderate, Biden is now set up as the main challenger to self-described democratic socialist Bernie Sanders. Currencies and bonds showed little such exuberance. The dollar remained on the back foot and the yield on benchmark 10-year U.S. Treasuries, which falls when prices rise, held at 0.9748% - not far over the once-unimaginable low of 0.9060% hit overnight. "U.S. Treasuries are moving even lower and credit spreads are widening in Asia today. That is not the usual effect that you would see from a movie like this," said Rishi Jalan, Citigroup co-head of debt capital markets syndication. "This decision shows the coronavirus impact is real and could have a material impact on growth. For market participants, it shows thinking of 'The Fed is expecting something that we have not yet priced in.'" Japan's Nikkei closed flat, while Australia's S&P/ASX 200 fell 1.7%. Stocks in Hong Kong and China traded either side of flat. Korean stocks bucked broader weakness, rising 2% after the government announced a $9.8 billion stimulus package to mitigate the impact of the virus outbreak. The dollar touched a five-month low against the safe-haven Japanese yen and slipped against most other Asian currencies. "Given the way that the market's reacted, it's telling you that there's a little bit of panic," said Andrew Gillan, head of Asia ex-Japan equities at Janus Henderson in Singapore. "They're a bit worried that interest rate cuts are not going to make a massive difference...and what's going to be required is probably going to be more fiscal stimulus," he said, his fund having invested, for example, in Chinese cement and construction stocks in anticipation of more government support measures. The Fed's surprise move followed a massive shift in money market pricing late last week. Futures swung rapidly to expect such a cut at the Fed's March meeting. Now they imply another 50 basis points of easing by July, even as the investors and the Fed itself raise questions about the efficacy of easing to deal with a public health crisis. "We do recognize that a rate cut will not reduce the rate of infection, it won't fix a broken supply chain; we get that," Fed Chairman Jerome Powell told reporters at a press conference. More than 3,000 people have been killed by the coronavirus, about 3.4% of those infected - far above the seasonal flu's fatality rate of under 1%. It continues to spread quickly beyond the epicenter in China, with Italy overnight reporting a jump in deaths to 79 and South Korea reporting more than 500 new cases on Wednesday. "The question here is whether a conventional interest rate response is sufficient," said Sameer Goel, chief strategist, Asia macro, at Deutsche Bank in Singapore. "It's still not clear how big the problem ultimately is, or could be, and until you know that, it's hard to know how much medicine to apply to it." In currencies, the U.S. dollar clawed back some of its losses on the euro and yen but was broadly on the back foot. It last traded at $0.6596 per Australian dollar and $1.1160 per euro. After falling to as low as 106.84 yen, the dollar pared losses to buy 107.42 yen by midafternoon. Oil prices firmed on expectations of production cuts, with Brent rising 90 cents to $52.79 per barrel and U.S. crude up 1.9% at $48.06 a barrel. Gold rose 0.2% to $1642.21 an ounce.

Asian shares struggle despite Fed cut; resurgent Biden boosts US futures

Growth in India’s dominant service sector accelerated at a pace not seen in over seven years last month, boosted by a recovery in foreign demand and solid business confidence, a private survey showed on Wednesday.

Also read: <a href="https://www.wionews.com/india-news/india-services-activity-returns-to-growth-in-sept-on-stronger-demand-pmi-21028">India services activity returned to growth in September: Study</a>

The Nikkei/IHS Markit Services Purchasing Managers’ Index climbed to 57.5 in February from January’s 55.5. It was the highest reading since January 2013 and comfortably above the 50-mark separating growth from contraction for a fourth month.

“Behind the resilience in the trend for business activity stands healthy demand for services from both the domestic and international markets,” Pollyanna De Lima, principal economist at IHS Markit, said in a release.

Also read:<a href="https://www.wionews.com/business-economy/indias-overall-export-shows-151-growth-during-april-october-262444"> India's overall export shows 1.51% growth during April-October</a>

“Positive gains in new work across the manufacturing and service sectors suggest that private-sector output will likely increase markedly again in March, boding well for final quarter GDP following expectations of a flat growth rate in Q3 FY 2019/20.”

The pace of expansion in a sub-index tracking new business slowed slightly from January’s seven-year high but remained above the long-term average since the index was first published in December 2005.

Also read:<a href="https://www.wionews.com/south-asia/indian-services-activity-plunges-into-contraction-in-november-on-cash-crackdown-9749"> Indian services activity plunges into contraction in November on cash crackdown</a>

New export business - a proxy of foreign demand - returned to expansion territory last month after contracting for the first time in 11 months in January. However, firms failed to significantly increase the pace of hiring.

“Service providers experienced a marked improvement in workforce productivity, with the sharp rise in business activity happening despite a softer and only modest increase in employment,” De Lima said.

A sister survey on Monday showed factory activity growth slowed in February from January’s eight-year high due to a modest weakening in demand and output.

&nbsp;

However, the composite PMI, which includes both manufacturing and services, rose to 57.6 in February from January’s 56.3, its highest in eight years.

Service providers remained optimistic about growth in the year ahead and the expectations index strengthened to a six month high.

On the price front, growth in both input cost and prices charged weakened only modestly in February, suggesting retail inflation is unlikely to slow significantly anytime soon.

Growth in India’s dominant service sector accelerated at a pace not seen in over seven years last month, boosted by a recovery in foreign demand and solid business confidence, a private survey showed on Wednesday.

Growth in India’s dominant service sector accelerated at a pace not seen in over seven years last month, boosted by a recovery in foreign demand and solid business confidence, a private survey showed on Wednesday. Also read: India services activity returned to growth in September: Study The Nikkei/IHS Markit Services Purchasing Managers’ Index climbed to 57.5 in February from January’s 55.5. It was the highest reading since January 2013 and comfortably above the 50-mark separating growth from contraction for a fourth month. “Behind the resilience in the trend for business activity stands healthy demand for services from both the domestic and international markets,” Pollyanna De Lima, principal economist at IHS Markit, said in a release. Also read: India's overall export shows 1.51% growth during April-October “Positive gains in new work across the manufacturing and service sectors suggest that private-sector output will likely increase markedly again in March, boding well for final quarter GDP following expectations of a flat growth rate in Q3 FY 2019/20.” The pace of expansion in a sub-index tracking new business slowed slightly from January’s seven-year high but remained above the long-term average since the index was first published in December 2005. Also read: Indian services activity plunges into contraction in November on cash crackdown New export business - a proxy of foreign demand - returned to expansion territory last month after contracting for the first time in 11 months in January. However, firms failed to significantly increase the pace of hiring. “Service providers experienced a marked improvement in workforce productivity, with the sharp rise in business activity happening despite a softer and only modest increase in employment,” De Lima said. A sister survey on Monday showed factory activity growth slowed in February from January’s eight-year high due to a modest weakening in demand and output. However, the composite PMI, which includes both manufacturing and services, rose to 57.6 in February from January’s 56.3, its highest in eight years. Service providers remained optimistic about growth in the year ahead and the expectations index strengthened to a six month high. On the price front, growth in both input cost and prices charged weakened only modestly in February, suggesting retail inflation is unlikely to slow significantly anytime soon.

India services growth at over seven-year high on strong export demand

Apple Inc's plea to avoid paying $440 million in damages to VirnetX Inc for using the patent licensing firm's security technology without permission in features such as FaceTime video calling was denied by the US Supreme Court.

Apple Inc's plea to avoid paying $440 million in damages to VirnetX Inc for using the patent licensing firm's security technology without permission in features such as FaceTime video calling was denied by the US Supreme Court. Apple's appeal was rejected by the judges in this case which spans a decade, wherein a Texas jury had discovered in 2016 that the iPhone manufacturer had infringed VirnetX's patents, following which the patent licensing firm was awarded $302 million. The amount was increased to $439.7 million including interest and other costs. Also Read: US jury asks Apple to pay $145 million in damages to Canada's WiLan In 2010, the Nevada-based VirnetX filed a lawsuit against California-based Apple of infringing four patents for secure networks, known as virtual private networks, and secure communications links. VirnetX was adamant that Apple infringed with its FaceTime and VPN on Demand features in products such as the iPhone and iPad. The judgement against apple was upheld last year by the US Court of Appeals for the Federal Circuit in Washington. During the hearings, Apple and other tech titans requested a review of the validity of VirnetX patents by a tribunal of the US Patent and Trademark Office. Also Read: Samsung to pay $539 million to Apple for copying patented smartphone designs, features Key parts of the patents at issue, in this case, were cancelled by the Tribunal but in separate decisions issued last year, the Federal Circuit set aside certain of the tribunal's rulings which brought VirnetX closer to collecting damages from Apple. The world-renowned mobile phone manufacturer appealed to the Supreme Court, arguing that the damages should be recalculated because the specific patents VirnetX accused it of infringing with FaceTime were nearly wiped out. Also Read: Top US court rejects Samsung's appeal on patent loss to Apple In a court filing, Apple called the Federal Circuit's opposition to indulge its demands "legally wrong and grossly unfair." The company also stated that lower courts unlawfully granted requests from VirnetX and granted them compensation for damages far beyond the value of the patented invention. VirnetX issued a statement saying that "The entire damages award ... remains supported by claims that a jury - and the Federal Circuit - found valid years ago and that have not been cancelled since."

Apple appeals rejected by US Supreme Court in legal battle with VirnetX

New microprocessors have been launched by Intel Corp, a device which includes a second-generation Xeon processor for data centres and a 10nm chip for wireless 5G base stations.

New microprocessors have been launched by Intel Corp, a device which includes a second-generation Xeon processor for data centres and a 10nm chip for wireless 5G base stations. Sales of server chips have been boosted after an increase in demand from cloud-computing companies, which has resulted in strong results from Intel and its rival AMD Corp. Also Read: Apple, Intel file antitrust case against SoftBank- Owned firm over patent practices The market for server chips has been dominated by Intel's Xeon chips, but the debut of its rival EPYC processors that earned positive reviews has allowed AMD to gain ground in the business. Though the new Xeon chips afford a better performance on the dollar as compared to its previous generation, Intel is confident that the 10nm chip, P5900, will help it become the leading silicon provider in base stations by 2021. 10nm and 7nm products will be launched by Intel in 2020, while AMD has already launched several chips based on the smaller 7nm architecture. Also Read: Wall Street falls as investors cautious on trade; Intel slides 10nm chip technology sale by Intel has been facing a lot of struggles, which has cost the company its lead to rivals in the race to supply to the new data economy which includes 5G chips, 5G devices, artificial intelligence and autonomous vehicles. Though the company had intended to launch the new chip in Barcelona during the Mobile World Congress, the event was cancelled due to rising paranoia over the COVID-19 outbreak all over the world.

Intel unveils new Xeon chip, COVID-19 delays product

PepsiCo Inc has agreed to buy Chinese snack brand Be & Cheery from local jujube maker Haoxiangni Health Food Co Ltd for $705 million, the companies said. The US multinational food and beverage maker said the acquisition of Be & Cheery, which sells snacks from nuts to dried fruits mainly on Chinese e-commerce platforms, was an important step in its goal to become China's leading consumer-focused food and beverage company.

PepsiCo Inc has agreed to buy Chinese snack brand Be & Cheery from local jujube maker Haoxiangni Health Food Co Ltd for $705 million, the companies said. The US multinational food and beverage maker said the acquisition of Be & Cheery, which sells snacks from nuts to dried fruits mainly on Chinese e-commerce platforms, was an important step in its goal to become China's leading consumer-focused food and beverage company. Also Read: Pepsi Co's advertising blitz drives profit beat, solid forecast "Be & Cheery adds direct-to-consumer capability, positioning us to capitalise on continued growth in e-commerce, and a local brand that can stretch across a broad portfolio of products, through both online and offline channels," Ram Krishnan, CEO of PepsiCo Greater China, said in a statement on Sunday. "We also expect to leverage Be & Cheery's innovation and consumer insights capabilities to drive innovation in other key PepsiCo growth markets." Also Read: In a bid to curb plastic pollution, Pepsi and Coca Cola sever ties with Plastics Industry Association Haoxiangni, which is based in the eastern city of Hangzhou, said in a separate filing that it had decided to sell as it wanted to focus on the jujube business. Founded in 2003, Be & Cheery is one of the largest online snack companies in China and reported revenues of about 5 billion yuan ($711.7 million) in 2019, the companies said. The transaction is subject to a Haoxiangni shareholder vote, certain regulatory approvals and other customary conditions, they said.

Chinese snack brand Be & Cheery sold to Pepsico for $705 million

German sportswear makers Adidas and Puma both said on Wednesday that the coronavirus outbreak was hurting their business in China due to store closures and fewer Chinese tourists travelling and shopping in other markets.

German sportswear makers Adidas and Puma both said on Wednesday that the coronavirus outbreak was hurting their business in China due to store closures and fewer Chinese tourists travelling and shopping in other markets. Adidas and Puma make almost a third of their sales in Asia, which has been the market for the sporting goods industry in recent years. The region is also a key sourcing hub, with many sneakers produced in China and other Asian countries. Adidas said in a statement that its business in the Greater China area had dropped by about 85 per cent year-on-year in the period since Chinese New Year on January 25. Also Read: Coronavirus toll leaps past 1850 with 93 new deaths in China's Hubei province Adidas said it had also seen lower shopper traffic, mainly in Japan and South Korea, but added that it had not yet registered any major business impact beyond Greater China. "The magnitude of the overall impact on our business for the full-year 2020 cannot be quantified reliably at this point in time," it said, adding it would give more details when it publishes 2019 results on March 11. Adidas sells its products from about 12,000 stores in China, most of them franchises plus less than 500 own-operated stores. Puma said it expected the virus outbreak to hit its sales and profits in the first quarter but it still hopes to reach its targets for 2020. Watch: Coronavirus: Tourists Disappear from Chinatown, business down Puma said more than half of its stores in China were temporarily closed and the decline of the Chinese tourism business was also hurting other markets, especially in Asia. It said the uncertainty about the duration of the virus made it difficult to forecast but it is working under the assumption that the situation will normalise in the short-term. In the fourth quarter, Puma reported its strongest sales growth in the Asia/Pacific region of a currency-adjusted 23 per cent.

Puma, Adidas fear impacts of COVID-19 on China business

Oil prices rose on Wednesday, with Brent gaining for a seventh straight day after a slowing of new coronavirus cases in China eased demand worries and supply was curtailed by a US move to cut more Venezuelan crude from the market.

Oil prices rose on Wednesday, with Brent gaining for a seventh straight day after a slowing of new coronavirus cases in China eased demand worries and supply was curtailed by a US move to cut more Venezuelan crude from the market. Brent crude was up by 75 cents at $58.50 a barrel by 1003 GMT, while US oil was up 66 cents at $52.71 a barrel. China, the world's second-largest economy, has imposed city lockdowns and travel restrictions to contain a virus that has now killed more than 2,000 people, stoking concern over an economic slowdown and a hit to oil demand. Also Read: Oil prices fall on oversupply worries as virus hits China demand "Those in doubt of the economic impact from the virus should take heed from Apple's surprise sales warning ... Put simply, this is the surest sign yet of the coronavirus fallout on the global economy," said PVM analysts in a note. S&P Global Ratings said it expected coronavirus would deliver a "short-term blow" to economic growth in China in the first quarter, echoing findings by the International Energy Agency. Official data showed new cases in China fell for a second straight day, although the World Health Organisation has cautioned there is not enough data to know if the epidemic is being contained. Brent has risen nearly 10 per cent since falling last week to its lowest this year. The market structure is also showing signs of prompt demand for oil picking up, as the front-month Brent futures market is moving deeper back into backwardation when near-term prices are higher than later-dated prices. Also Read: China virus could hit oil prices by $3 per barrel: Goldman This week, oil prices were also buoyed by a US decision to blacklist a trading subsidiary of Russia's Rosneft which President Donald Trump's administration said provided a financial lifeline to Venezuela's government. The grouping, known as OPEC+, has been withholding supply to support prices and meets next month to decide a response to the downturn in demand resulting from the coronavirus epidemic. But in the United States, which is not party to any supply cut agreements, crude oil production has been rising as shale output grows. US shale production is expected to rise to a record 9.2 million barrels a day next month, according to the Energy Information Administration.

Oil up on slowing pace of coronavirus, Venezuela sanctions

Samsung Electronics has launched smartphone delivery services for customers to test its new products, as the spread of the coronavirus has prompted the tech giant to cancel promotional events and brace for weak store sales.

Samsung Electronics has launched smartphone delivery services for customers to test its new products, as the spread of the coronavirus has prompted the tech giant to cancel promotional events and brace for weak store sales. The move highlights efforts made by the global smartphone industry, one of the tech sectors most hurt by the virus outbreak in China, to minimise the impact on business. Analysts say the virus may slash demand for smartphones by half in the first quarter in China, the world's biggest market for the devices. Also Read: Apple prepares for Coronavirus fallout, Samsung fears it may affect earnings Apple Inc warned on Monday it was unlikely to meet a sales target set just three weeks ago, while Xiaomi Corp had to live-stream its smartphone launch event last week because of nationwide restrictions on travel and large gatherings. Samsung, which unveiled a new foldable smartphone and a trio of its flagship Galaxy S20 models last week, is also curtailing brick-and-mortar marketing. The South Korean smartphone maker has decided to sharply cut the number of in-store "experimental zones," where consumers can try out the latest phones, and skip promotional events such as "Galaxy fan parties" for the latest device over worries about the spread of the virus, dubbed SARS-Cov-2. [ The logo of Samsung Electronics is seen at its office building in Seoul, South Korea (Courtesy: Reuters) ] There will only be nine such zones for the Galaxy S20, compared with the 130 it had for Galaxy Note 10 series in South Korea, according to Samsung's website. Samsung customers who want to try out the Galaxy S20 can have one delivered to their door and can use it for up to 24 hours. A delivery worker will reportedly pick it up after that. "We are introducing a new service, as coronavirus-related issues could result in less in-store experience," one of the people said, adding that the service is expected to be available only in some parts of South Korea.

Samsung offers phone delivery service for test use to ride out COVID-19 impact

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