European Union and China on Wednesday agreed "in principle" to strike a major investment deal despite concerns over labour and human rights. The deal gives EU firms better access to Chinese market. EU-China deal may be European Union's first big deal after it successfully negotiated post-Brexit&nbsp;trade deal with UK recently.

"Today, the EU and China concluded in principle negotiations on an investment agreement," European Commission President Ursula von der Leyen tweeted after a video call with Xi.

Calling the deal "of major economic significance", an EU statement said: "China has committed to an unprecedented level of market access for EU investors."

Also Read | <a href="https://www.wionews.com/world/british-mps-overwhelmingly-back-post-brexit-trade-deal-with-european-union-353438">British MPs overwhelmingly back post-Brexit trade deal with European Union</a>

China's state news agency Xinhua confirmed that the two sides had "completed investment agreement negotiations as scheduled."

In addition, the EU said China has committed to "effectively implement" International Labour Organization rules it has already ratified "and to work towards the ratification of the ILO fundamental conventions, including on forced labour."

Talks on the deal had begun as early as 2014 but EU previously said China did little to lift curbs on European investment in the country. However, reports suggest that trade war between China and the US may have brought about change in Chinese position

(With agency inputs)

European Union and China on Wednesday agreed "in principle" to strike a major investment deal despite concerns over labour and human rights. The deal gives EU firms better access to Chinese market.

European Union and China on Wednesday agreed "in principle" to strike a major investment deal despite concerns over labour and human rights. The deal gives EU firms better access to Chinese market. EU-China deal may be European Union's first big deal after it successfully negotiated post-Brexit trade deal with UK recently. "Today, the EU and China concluded in principle negotiations on an investment agreement," European Commission President Ursula von der Leyen tweeted after a video call with Xi. Calling the deal "of major economic significance", an EU statement said: "China has committed to an unprecedented level of market access for EU investors." Also Read | British MPs overwhelmingly back post-Brexit trade deal with European Union China's state news agency Xinhua confirmed that the two sides had "completed investment agreement negotiations as scheduled." In addition, the EU said China has committed to "effectively implement" International Labour Organization rules it has already ratified "and to work towards the ratification of the ILO fundamental conventions, including on forced labour." Talks on the deal had begun as early as 2014 but EU previously said China did little to lift curbs on European investment in the country. However, reports suggest that trade war between China and the US may have brought about change in Chinese position (With agency inputs)

EU-China agree on a major investment deal

Spain is fighting an odd crisis it's high on cash, but low on ideas. Spain does not know how to spend.

It's got 166 billion dollars in grants and loans is from the European Union recovery fund for the covid-19 crisis and the crisis is severe.

Spain's economy slumped 18.5% in the second quarter the second worst in the region after the UK. Spain's ailing economy will receive around 140 billion euros or $166 billion out of the EU's 750-billion-euro coronavirus recovery package.

This includes 43 billion Euros in grants in the next two years alone — this is equivalent to about 8% of Spain’s annual expenditure.

Spain needs concrete investment projects to rescue the economy coming in the way is a prolonged political paralysis.

The country has not been able to approve a full-year budget since 2016, so suddenly absorbing all that extra cash is a challenge. There are concerns over how to set up the machinery to take on this amount of liquidity and this by the way is cash that the Prime Minister Pedro Sanchez fought hard for at an EU summit in July.

He has now put his office in charge and the economy minister is finalising a plan to be presented to Brussels by October 15.There are many countries that would love to be in Spain’s position.

In April when the pandemic began. Over 90 countries requested the international monetary fund for emergency funds and then, you have war-torn countries like Afghanistan and Yemen that have been combating covid-19 amid the raging conflicts. Spain's crisis sounds like a luxury.

(With inputs from agencies)

Spain is fighting an odd crisis it's high on cash, but low on ideas. Spain does not know how to spend. It's got 166 billion dollars in grants and loans is from the European Union recovery fund for the covid-19 crisis and the crisis is severe.

Spain is fighting an odd crisis it's high on cash, but low on ideas. Spain does not know how to spend. It's got 166 billion dollars in grants and loans is from the European Union recovery fund for the covid-19 crisis and the crisis is severe. Spain's economy slumped 18.5% in the second quarter the second worst in the region after the UK. Spain's ailing economy will receive around 140 billion euros or $166 billion out of the EU's 750-billion-euro coronavirus recovery package. This includes 43 billion Euros in grants in the next two years alone — this is equivalent to about 8% of Spain’s annual expenditure. Spain needs concrete investment projects to rescue the economy coming in the way is a prolonged political paralysis. The country has not been able to approve a full-year budget since 2016, so suddenly absorbing all that extra cash is a challenge. There are concerns over how to set up the machinery to take on this amount of liquidity and this by the way is cash that the Prime Minister Pedro Sanchez fought hard for at an EU summit in July. He has now put his office in charge and the economy minister is finalising a plan to be presented to Brussels by October 15.There are many countries that would love to be in Spain’s position. In April when the pandemic began. Over 90 countries requested the international monetary fund for emergency funds and then, you have war-torn countries like Afghanistan and Yemen that have been combating covid-19 amid the raging conflicts. Spain's crisis sounds like a luxury. (With inputs from agencies)

Covid effect: Spain needs concrete investment projects to rescue the economy

India is a favorable destination to invest and the country has received over $20 billion of foreign investment inflows this year, said PM Modi while addressing the US-India Strategic Partnership Forum.

"The government has taken steps to provide banking credit, digital payments and insurance to millions of people using world-class technology and global best practices," said PM.

Highlighting the government’s schemes during pandemic, the PM said that for development in India, the country needs the government who believes in delivering results as ease of living is as important as ease of doing business.&nbsp;

The current situation demands a fresh mindset, where the approach to development is human-centric, he added.&nbsp;

Meanwhile, Mahindra Group Chairman Anand Mahindra and Shantanu Narayen, Chairman, President, and CEO of Adobe group, received the USISP Forum 2020 Leadership Award. The award recognises the exemplary vision of business leaders towards promoting U.S-India bilateral ties.

(With inputs from agencies)

India is a favorable destination to invest and the country has received over $20 billion of foreign investment inflows this year, said PM Modi while addressing the US-India Strategic Partnership Forum.

India is a favorable destination to invest and the country has received over $20 billion of foreign investment inflows this year, said PM Modi while addressing the US-India Strategic Partnership Forum. "The government has taken steps to provide banking credit, digital payments and insurance to millions of people using world-class technology and global best practices," said PM. Highlighting the government’s schemes during pandemic, the PM said that for development in India, the country needs the government who believes in delivering results as ease of living is as important as ease of doing business. The current situation demands a fresh mindset, where the approach to development is human-centric, he added. Meanwhile, Mahindra Group Chairman Anand Mahindra and Shantanu Narayen, Chairman, President, and CEO of Adobe group, received the USISP Forum 2020 Leadership Award. The award recognises the exemplary vision of business leaders towards promoting U.S-India bilateral ties. (With inputs from agencies)

India received $20 billion FDI this year, says PM Modi

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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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

The Indian government is reviewing around 50 investment proposals involving Chinese companies under a new screening policy, three sources familiar with the matter told Reuters.

Under new rules announced by India in April, all investments by entities based in neighbouring countries need to be approved by the Indian government, whether for new or additional funding. China is the biggest of these investors and the rules drew criticism from Chinese investors and Beijing, which called the policy discriminatory.

<a href="https://www.wionews.com/india-news/india-china-face-off-chinese-troops-pull-back-2-kms-from-galwan-clash-area-sources-310992">Also read|&nbsp;Chinese troops remove tents, move back from Galwan Valley: Sources</a>

The new investment rules were aimed at curbing opportunistic takeovers during the coronavirus outbreak. However, industry executives say a deterioration in bilateral relations since a clash along the countries` contested border last month, in which 20 Indian soldiers were killed, could further delay approvals.

"Various clearances are required. We are being a bit more cautious as one would imagine," said a senior Indian government official in New Delhi, when asked about the impact on investment applications since the border clash. 
India`s industries department under the commerce ministry, which drafted the new policy, did not respond to a request for comment.

The sources declined to name the companies whose investments are pending approvals, due to confidentiality concerns.

<a href="https://www.wionews.com/india-news/india-china-standoff-pm-narendra-modis-ladakh-visit-gives-a-clear-message-to-beijing-310522">Also read|&nbsp;India-China standoff: PM Narendra Modi's Ladakh visit gives a clear message to Beijing</a>

The official, and two other sources, said about 40-50 applications involving funding from Chinese investors have been filed since the rule change and are currently under review.

One of the sources said that multiple Indian government agencies, including the Indian consulates in China, have been communicating with investors and their representatives to seek clarifications on the proposals.

Alok Sonker, a partner at Indian law firm Krishnamurthy &amp; Co, said at least 10 Chinese clients had sought his advice in recent weeks for investing in India, but were waiting for more clarity on the policy outlook in India.

"Uncertainty in timelines for the investment approval is dissuading parties, both Indian and Chinese, from proceeding with business as usual," Sonker said.

Last week India banned 59, mostly Chinese, mobile apps including Bytedance`s TikTok and Tencent`s &lt;0700.HK&gt; WeChat, in its strongest move yet targeting China in the online space since the border crisis erupted last month. The move has potentially dented big Chinese businesses` expansion plans for the South Asian market.

Chinese companies` existing and planned investments in India stand at more than $26 billion, research group Brookings said in March.

The Indian government is reviewing around 50 investment proposals involving Chinese companies under a new screening policy, three sources familiar with the matter told Reuters.

The Indian government is reviewing around 50 investment proposals involving Chinese companies under a new screening policy, three sources familiar with the matter told Reuters. Under new rules announced by India in April, all investments by entities based in neighbouring countries need to be approved by the Indian government, whether for new or additional funding. China is the biggest of these investors and the rules drew criticism from Chinese investors and Beijing, which called the policy discriminatory. Also read| Chinese troops remove tents, move back from Galwan Valley: Sources The new investment rules were aimed at curbing opportunistic takeovers during the coronavirus outbreak. However, industry executives say a deterioration in bilateral relations since a clash along the countries` contested border last month, in which 20 Indian soldiers were killed, could further delay approvals. "Various clearances are required. We are being a bit more cautious as one would imagine," said a senior Indian government official in New Delhi, when asked about the impact on investment applications since the border clash. India`s industries department under the commerce ministry, which drafted the new policy, did not respond to a request for comment. The sources declined to name the companies whose investments are pending approvals, due to confidentiality concerns. Also read| India-China standoff: PM Narendra Modi's Ladakh visit gives a clear message to Beijing The official, and two other sources, said about 40-50 applications involving funding from Chinese investors have been filed since the rule change and are currently under review. One of the sources said that multiple Indian government agencies, including the Indian consulates in China, have been communicating with investors and their representatives to seek clarifications on the proposals. Alok Sonker, a partner at Indian law firm Krishnamurthy & Co, said at least 10 Chinese clients had sought his advice in recent weeks for investing in India, but were waiting for more clarity on the policy outlook in India. "Uncertainty in timelines for the investment approval is dissuading parties, both Indian and Chinese, from proceeding with business as usual," Sonker said. Last week India banned 59, mostly Chinese, mobile apps including Bytedance`s TikTok and Tencent`s <0700.HK> WeChat, in its strongest move yet targeting China in the online space since the border crisis erupted last month. The move has potentially dented big Chinese businesses` expansion plans for the South Asian market. Chinese companies` existing and planned investments in India stand at more than $26 billion, research group Brookings said in March.

India reviewing around 50 investment proposals from Chinese firms - sources

The longest-running US stock market bull in history is now over, with the coronavirus outbreak proving severe by the end of 11 years of an almost unprecedented financial crisis.

Global market seems to "nose-dive" by the COVID-19 fear

The global stock market continued its recession on Friday amid panic created by the outbreak of the novel coronavirus.

Big blow to global stock market by COVID-19, India halts trading for 45 minutes

Watch today in WION Wallet: Sensex tanks 3000 points, Nifty hits the lower circuit.

WION Wallet: Sensex tanks 3000 points, Nifty hits the lower circuit | WION | World News

Spot gold was flat at $1,476.55 per ounce at 0354 GMT. US&nbsp;gold futures were little changed at $1,480.80.

"Gold is in sort of a <a href="https://www.wionews.com/business-economy/gold-holds-firm-as-optimism-fades-for-us-china-trade-talks-254716">holding pattern</a> and one of the key reasons behind this is that the macro picture has been positive on the trade deal and it has obviously capped gold prices," said ING analyst Warren Patterson.

"But the main issue is they are not saying anything significant on the back of this deal and details around the trade deal are still lacking, there's that element of uncertainty."

US&nbsp;Trade Representative Robert Lighthizer on Tuesday said details of Chinese purchases across various sectors in the United States in the "phase one" deal would be detailed in writing, but gave no further details about when the written agreement would be released.

&nbsp;

WATCH: WION Dispatch: US-China reach 'phase one' trade deal

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Bullion's upside remained capped by positive US&nbsp;economic data that underpinned the dollar and stock markets.

The dollar index hovered near a one-week high against a basket of rival currencies, while Asian shares camped out at 18-month peaks having climbed for five straight sessions.

US manufacturing production recovered in November and housing numbers rose beyond expectations with permits for future home construction soaring to a 12-1/2-year high on lower mortgage rates.

Meanwhile, two Federal Reserve policymakers on Tuesday upheld the central bank's stance on leaving interest rates steady and said the bar to cutting or raising them would be high.

"With the FOMC continually reminding us that rates are on hold indefinitely, it adds an element of support for gold but will not necessarily catapult prices higher. For that, we need a dovish Fed impulse," AxiTrader market strategist Stephen Innes said in a note.

&nbsp;

WATCH: US Fed keeps rates on hold, points to 'favourable' economic outlook next year

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Reflecting investor interest in bullion, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.6% on Tuesday.

<a href="https://www.wionews.com/business-economy/deficit-hit-palladium-takes-aim-at-2000-ceiling-in-record-run-268725">Palladium</a> slipped 0.8% to $1,939.91 an ounce, retreating from an all-time peak of $1,998.43 hit in the previous session.

"The market set their sights on the key target, once we did that, we definitely did see some profit-taking - that's the reason we saw that price inflection," ING's Patterson said.

Silver edged 0.1% higher to $17.02 per ounce, while platinum fell 0.1% to $926.65.

Spot gold was flat at $1,476.55 per ounce at 0354 GMT. US gold futures were little changed at $1,480.80. "Gold is in sort of a holding pattern and one of the key reasons behind this is that the macro picture has been positive on the trade deal and it has obviously capped gold prices," said ING analyst Warren Patterson.

Spot gold was flat at $1,476.55 per ounce at 0354 GMT. US gold futures were little changed at $1,480.80. "Gold is in sort of a holding pattern and one of the key reasons behind this is that the macro picture has been positive on the trade deal and it has obviously capped gold prices," said ING analyst Warren Patterson. "But the main issue is they are not saying anything significant on the back of this deal and details around the trade deal are still lacking, there's that element of uncertainty." US Trade Representative Robert Lighthizer on Tuesday said details of Chinese purchases across various sectors in the United States in the "phase one" deal would be detailed in writing, but gave no further details about when the written agreement would be released. WATCH: WION Dispatch: US-China reach 'phase one' trade deal × Bullion's upside remained capped by positive US economic data that underpinned the dollar and stock markets. The dollar index hovered near a one-week high against a basket of rival currencies, while Asian shares camped out at 18-month peaks having climbed for five straight sessions. US manufacturing production recovered in November and housing numbers rose beyond expectations with permits for future home construction soaring to a 12-1/2-year high on lower mortgage rates. Meanwhile, two Federal Reserve policymakers on Tuesday upheld the central bank's stance on leaving interest rates steady and said the bar to cutting or raising them would be high. "With the FOMC continually reminding us that rates are on hold indefinitely, it adds an element of support for gold but will not necessarily catapult prices higher. For that, we need a dovish Fed impulse," AxiTrader market strategist Stephen Innes said in a note. WATCH: US Fed keeps rates on hold, points to 'favourable' economic outlook next year × Reflecting investor interest in bullion, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.6% on Tuesday. Palladium slipped 0.8% to $1,939.91 an ounce, retreating from an all-time peak of $1,998.43 hit in the previous session. "The market set their sights on the key target, once we did that, we definitely did see some profit-taking - that's the reason we saw that price inflection," ING's Patterson said. Silver edged 0.1% higher to $17.02 per ounce, while platinum fell 0.1% to $926.65.

Gold prices subdued as investors await trade deal details; palladium dips

Apple said Monday it would commit $2.5 billion over the next two years to help address the shortage of affordable housing in California and reduce homelessness.

The move by Apple follows similar initiatives from Silicon Valley peers Google and Facebook, which each have pledged $1 billion for housing programs.

"Before the world knew the name Silicon Valley, and long before we carried technology in our pockets, Apple called this region home, and we feel a profound civic responsibility to ensure it remains a vibrant place where people can live, have a family and contribute to the community," said Apple chief executive Tim Cook in a statement.

"Affordable housing means stability and dignity, opportunity and pride. When these things fall out of reach for too many, we know the course we are on is unsustainable, and Apple is committed to being part of the solution."

Apple said data showed some 30,000 people left San Francisco between April and June of 2019 and that its efforts are geared to help "community members like teachers, firefighters, first responders and service workers" who cannot find affordable lodging.

Apple said it was working with California Governor Gavin Newsom on several programs to address housing and homelessness.

The iPhone maker said $1 billion will go to the state's affordable housing fund that will extend credit to develop and build additional housing faster and at a lower cost.

Apple also said it would make available land it owns in San Jose worth some $300 million for homes.

The company is committing $200 million to support new lower-income housing in the Bay Area, including $150 for a public-private partnership.

It will also offer $50 million to support the efforts to address homelessness in Silicon Valley with the nonprofit group Destination: Home.

"We have worked closely with leading experts to put together a plan that confronts this challenge on all fronts, from the critical need to increase housing supply, to support for first-time homebuyers and young families, to essential philanthropy to assist those at greatest risk," said Lisa Jackson, Apple's vice president&nbsp;for environment and social initiatives.

Apple said Monday it would commit $2.5 billion over the next two years to help address the shortage of affordable housing in California and reduce homelessness. The move by Apple follows similar initiatives from Silicon Valley peers Google and Facebook, which each have pledged $1 billion for housing programs.

Apple said Monday it would commit $2.5 billion over the next two years to help address the shortage of affordable housing in California and reduce homelessness. The move by Apple follows similar initiatives from Silicon Valley peers Google and Facebook, which each have pledged $1 billion for housing programs. "Before the world knew the name Silicon Valley, and long before we carried technology in our pockets, Apple called this region home, and we feel a profound civic responsibility to ensure it remains a vibrant place where people can live, have a family and contribute to the community," said Apple chief executive Tim Cook in a statement. "Affordable housing means stability and dignity, opportunity and pride. When these things fall out of reach for too many, we know the course we are on is unsustainable, and Apple is committed to being part of the solution." Apple said data showed some 30,000 people left San Francisco between April and June of 2019 and that its efforts are geared to help "community members like teachers, firefighters, first responders and service workers" who cannot find affordable lodging. Apple said it was working with California Governor Gavin Newsom on several programs to address housing and homelessness. The iPhone maker said $1 billion will go to the state's affordable housing fund that will extend credit to develop and build additional housing faster and at a lower cost. Apple also said it would make available land it owns in San Jose worth some $300 million for homes. The company is committing $200 million to support new lower-income housing in the Bay Area, including $150 for a public-private partnership. It will also offer $50 million to support the efforts to address homelessness in Silicon Valley with the nonprofit group Destination: Home. "We have worked closely with leading experts to put together a plan that confronts this challenge on all fronts, from the critical need to increase housing supply, to support for first-time homebuyers and young families, to essential philanthropy to assist those at greatest risk," said Lisa Jackson, Apple's vice president for environment and social initiatives.

Apple offers $2.5 bn to address California housing crisis

Google has agreed to buy Fitbit for $2.1 billion in a move giving the United States tech giant entry into the wearable technology space, the two companies announced Friday.

The move comes with <a href="https://www.wionews.com/business-economy/google-unveils-quantum-computer-breakthrough-critics-say-wait-a-qubit-257805">Google</a> seeking to expand beyond its core business of online search into hardware, and with Fitbit struggling against rivals including Apple.

"We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier, more active life," Fitbit co-founder and chief executive James Park said in a statement by the two firms announcing the deal.

"Google is an ideal partner to advance our mission.&nbsp;Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone. I could not be more excited for what lies ahead."

Rick Osterloh, Google senior vice president for devices and services, said the deal for the wearable tech pioneer is one "bringing together the best hardware, software and AI, to build wearables to help even more people around the world."

While Fitbit was among the first to popularize fitness bands, it has lost ground in recent years to rivals.

A survey by research firm IDC for the second quarter of 2019 found Fitbit in fourth place in a market led by China's Xiaomi leading the global market, followed by Apple, which makes the leading smartwatch, and Chinese-based Huawei.

Fitbit has introduced its own smartwatch in 2017 but it has failed to keep pace with the Apple Watch.

<a href="https://www.wionews.com/world/google-completes-first-drone-delivery-in-united-states-256963">Google</a>, which faces pressure from regulators around the world over its dominance of internet search, has been boosting its hardware offerings, including a line of Pixel smartphones and tablets, along with connected speakers.

Google has agreed to buy Fitbit for $2.1 billion in a move giving the United States tech giant entry into the wearable technology space, the two companies announced Friday.

Google has agreed to buy Fitbit for $2.1 billion in a move giving the United States tech giant entry into the wearable technology space, the two companies announced Friday. The move comes with Google seeking to expand beyond its core business of online search into hardware, and with Fitbit struggling against rivals including Apple. "We have built a trusted brand that supports more than 28 million active users around the globe who rely on our products to live a healthier, more active life," Fitbit co-founder and chief executive James Park said in a statement by the two firms announcing the deal. "Google is an ideal partner to advance our mission. Fitbit will be able to accelerate innovation in the wearables category, scale faster, and make health even more accessible to everyone. I could not be more excited for what lies ahead." Rick Osterloh, Google senior vice president for devices and services, said the deal for the wearable tech pioneer is one "bringing together the best hardware, software and AI, to build wearables to help even more people around the world." While Fitbit was among the first to popularize fitness bands, it has lost ground in recent years to rivals. A survey by research firm IDC for the second quarter of 2019 found Fitbit in fourth place in a market led by China's Xiaomi leading the global market, followed by Apple, which makes the leading smartwatch, and Chinese-based Huawei. Fitbit has introduced its own smartwatch in 2017 but it has failed to keep pace with the Apple Watch. Google, which faces pressure from regulators around the world over its dominance of internet search, has been boosting its hardware offerings, including a line of Pixel smartphones and tablets, along with connected speakers.

Google to buy wearable maker Fitbit for $2.1 billion

South Korea's President Moon Jae-in said <a href="https://www.wionews.com/world/us-south-korea-must-present-new-solutions-for-conflict-north-korea-257194">Seoul would increase military spending</a> and urged the North to return to dialogue in a budget speech Tuesday that could infuriate Pyongyang with nuclear talks gridlocked.

Contact between North and South Korea stalled after the collapse of a February summit between North Korean leader Kim Jong Un and US President Donald Trump in Hanoi.

Since then Pyongyang has excoriated its neighbour over joint military drills with the US, and the acquisition of American fighter jets.

It is a far cry from the cross-border warmth of last year when Moon seized on the Pyeongchang Winter Olympics to broker the North-South discussion process and held three summits himself with Kim.

South Korea will increase defence spending by seven per cent to more than $42 billion&nbsp;next year, Moon told parliament, emphasising that "strong defence" was crucial for "self-determination".

"We will strengthen the core defence system by boosting assets such as next-generation submarines and surveillance satellites."

The announcement came after North Korea this month tested what it said was a submarine-launched ballistic missile that marked a "new phase" in its capabilities -- the most provocative in a series of weapons tests it resumed after an 18-month hiatus.

North Korea is under multiple sets of UN sanctions over its nuclear and missile programmes.

Pyongyang and Washington restarted working-level talks in Sweden this month only for them to quickly break down, with the North blaming the US for not giving up its "old attitude" and setting the end of this year as the deadline for Washington to change its stance.

It has also said it has nothing more to talk about with Seoul and condemned joint South Korea-US drills and the deployment of F-35A fighter jets in the South as&nbsp;rehearsals for invasion and violations of Seoul-Pyongyang agreements.

But Moon,&nbsp;who has long championed engagement with Pyongyang, held out hope for a breakthrough despite the setbacks, claiming that the deadlocked talks were the "last hurdle" before denuclearisation.

A "bright future" for the North would only be possible on the basis of a "peace economy" driven by inter-Korean economic projects, he said. "I urge the North to respond."

South Korea's President Moon Jae-in said Seoul would increase military spending and urged the North to return to dialogue in a budget speech Tuesday that could infuriate Pyongyang with nuclear talks gridlocked.

South Korea's President Moon Jae-in said Seoul would increase military spending and urged the North to return to dialogue in a budget speech Tuesday that could infuriate Pyongyang with nuclear talks gridlocked. Contact between North and South Korea stalled after the collapse of a February summit between North Korean leader Kim Jong Un and US President Donald Trump in Hanoi. Since then Pyongyang has excoriated its neighbour over joint military drills with the US, and the acquisition of American fighter jets. It is a far cry from the cross-border warmth of last year when Moon seized on the Pyeongchang Winter Olympics to broker the North-South discussion process and held three summits himself with Kim. South Korea will increase defence spending by seven per cent to more than $42 billion next year, Moon told parliament, emphasising that "strong defence" was crucial for "self-determination". "We will strengthen the core defence system by boosting assets such as next-generation submarines and surveillance satellites." The announcement came after North Korea this month tested what it said was a submarine-launched ballistic missile that marked a "new phase" in its capabilities -- the most provocative in a series of weapons tests it resumed after an 18-month hiatus. North Korea is under multiple sets of UN sanctions over its nuclear and missile programmes. Pyongyang and Washington restarted working-level talks in Sweden this month only for them to quickly break down, with the North blaming the US for not giving up its "old attitude" and setting the end of this year as the deadline for Washington to change its stance. It has also said it has nothing more to talk about with Seoul and condemned joint South Korea-US drills and the deployment of F-35A fighter jets in the South as rehearsals for invasion and violations of Seoul-Pyongyang agreements. But Moon, who has long championed engagement with Pyongyang, held out hope for a breakthrough despite the setbacks, claiming that the deadlocked talks were the "last hurdle" before denuclearisation. A "bright future" for the North would only be possible on the basis of a "peace economy" driven by inter-Korean economic projects, he said. "I urge the North to respond."

South Korea's Moon ups defence spending, urges North to talk

The <a href="https://www.wionews.com/business-economy/uk-economy-starts-to-shows-cracks-under-brexit-and-global-strains-254409">world economy </a>is slowing to its weakest pace since the global <a href="https://www.wionews.com/opinions/us-china-trade-war-points-to-the-real-crisis-that-global-leaders-must-confront-at-g20-summit-231112">financial crisis</a>, amid continuing trade conflicts that have <a href="https://www.wionews.com/world/global-growth-fragile-under-threat-former-imf-head-christine-lagarde-250693">undercut business confidence</a> and investment, the IMF said Tuesday.

It warned that the outlook is beset by risks, and urged policymakers to work to find resolutions to trade disputes since there are limited tools to respond to a new crisis.

"With a synchronized slowdown and uncertain recovery, the global outlook remains precarious," International Monetary Fund chief economist Gita Gopinath said in her introduction to the latest forecasts.

The IMF for the past year has every three months cut projected growth for 2019 as trade conflicts worsened.

In its latest World Economic Outlook, it trimmed the estimate by another two-tenths, to 3.0 per cent. The report also lowered the 2020 forecast by a tenth to 3.4 per cent.&nbsp;

"At three per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," Gopinath said.

In addition, the trade conflicts and a slowdown in auto sales worldwide means trade growth has slowed sharply, falling in the first half of the year to its weakest since 2012, with an estimated increase of just 1.1 per cent this year after a 3.6 per cent jump in 2018.

Running low on ammo

While the US economy also has been hit by uncertainty — largely created by President Donald Trump's trade offensive — the world's largest economy remains a bright spot on the global stage, the report said.

After upgrading its US outlook in July, the latest WEO reversed course and cutting the US forecast this year to 2.4 per cent — still above trend, but two-tenths below the July forecast.

In 2020, the IMF projects US GDP to expand by 2.1 per cent, unchanged from the prior report.

"For the United States, trade-related uncertainty has had negative effects on investment, but employment and consumption continue to be robust, buoyed also by policy stimulus," Gopinath said.

Major central banks have taken steps to soften the blow to growth by lowering interest rates, without which the downturn would have been worse, she said.&nbsp;

However, she cautioned that monetary policy "cannot be the only game in town" and governments, notably in countries like Germany, should take advantage of low rates to make investments to support growth.

"With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot," Gopinath warned.

The US-China trade war alone is estimated to shrink the world economy by 0.8 per cent in 2020, the IMF said.

The fund warned that risks to the outlook predominate, and the uncertainty around trade policy -- which causes businesses to hold off on investments and undermines confidence — will take a larger chunk out of growth than the tariffs themselves

Slowing auto sales

"To forestall such an outcome, policies should decisively aim at defusing trade tensions, reinvigorating multilateral cooperation, and providing timely support to an economic activity where needed," the report said.

But trade is not the only reason for the global slowdown: the report notes that in China's economy, for example, growth is moderating as intended amid slowing domestic demand.

Other major economies like Brazil, India, Mexico, Russia and South Africa are slowing this year due to "idiosyncratic reasons" but are expected to recover in 2020.

"A notable feature of the sluggish growth in 2019 is the sharp and geographically broad-based slowdown in manufacturing and global trade," the IMF said, which in addition to the higher tariffs and trade uncertainty is the result of the contracting auto industry.&nbsp;

That slowdown has had an impact in Germany, China and India, the report said.

The world economy is slowing to its weakest pace since the global financial crisis, amid continuing trade conflicts that have undercut business confidence and investment, the IMF said Tuesday.

The world economy is slowing to its weakest pace since the global financial crisis, amid continuing trade conflicts that have undercut business confidence and investment, the IMF said Tuesday. It warned that the outlook is beset by risks, and urged policymakers to work to find resolutions to trade disputes since there are limited tools to respond to a new crisis. "With a synchronized slowdown and uncertain recovery, the global outlook remains precarious," International Monetary Fund chief economist Gita Gopinath said in her introduction to the latest forecasts. The IMF for the past year has every three months cut projected growth for 2019 as trade conflicts worsened. In its latest World Economic Outlook, it trimmed the estimate by another two-tenths, to 3.0 per cent. The report also lowered the 2020 forecast by a tenth to 3.4 per cent. "At three per cent growth, there is no room for policy mistakes and an urgent need for policymakers to cooperatively deescalate trade and geopolitical tensions," Gopinath said. In addition, the trade conflicts and a slowdown in auto sales worldwide means trade growth has slowed sharply, falling in the first half of the year to its weakest since 2012, with an estimated increase of just 1.1 per cent this year after a 3.6 per cent jump in 2018. Running low on ammo While the US economy also has been hit by uncertainty — largely created by President Donald Trump's trade offensive — the world's largest economy remains a bright spot on the global stage, the report said. After upgrading its US outlook in July, the latest WEO reversed course and cutting the US forecast this year to 2.4 per cent — still above trend, but two-tenths below the July forecast. In 2020, the IMF projects US GDP to expand by 2.1 per cent, unchanged from the prior report. "For the United States, trade-related uncertainty has had negative effects on investment, but employment and consumption continue to be robust, buoyed also by policy stimulus," Gopinath said. Major central banks have taken steps to soften the blow to growth by lowering interest rates, without which the downturn would have been worse, she said. However, she cautioned that monetary policy "cannot be the only game in town" and governments, notably in countries like Germany, should take advantage of low rates to make investments to support growth. "With central banks having to spend limited ammunition to offset policy mistakes, they may have little left when the economy is in a tougher spot," Gopinath warned. The US-China trade war alone is estimated to shrink the world economy by 0.8 per cent in 2020, the IMF said. The fund warned that risks to the outlook predominate, and the uncertainty around trade policy -- which causes businesses to hold off on investments and undermines confidence — will take a larger chunk out of growth than the tariffs themselves Slowing auto sales "To forestall such an outcome, policies should decisively aim at defusing trade tensions, reinvigorating multilateral cooperation, and providing timely support to an economic activity where needed," the report said. But trade is not the only reason for the global slowdown: the report notes that in China's economy, for example, growth is moderating as intended amid slowing domestic demand. Other major economies like Brazil, India, Mexico, Russia and South Africa are slowing this year due to "idiosyncratic reasons" but are expected to recover in 2020. "A notable feature of the sluggish growth in 2019 is the sharp and geographically broad-based slowdown in manufacturing and global trade," the IMF said, which in addition to the higher tariffs and trade uncertainty is the result of the contracting auto industry. That slowdown has had an impact in Germany, China and India, the report said.

World economy at its weakest pace since global financial crisis: International Monetary Fund

<a href="https://www.wionews.com/world/saudi-visit-showcases-vladimir-putins-growing-middle-east-influence-255779">President Vladimir Putin visited Abu Dhabi on Tuesday</a>, seeking to attract over $1.3 billion worth of investments in Russia's economy.

Putin, who came to the United Arab Emirates a day after signing a key oil deal with Saudi Arabia in Riyadh, was greeted by Abu Dhabi's powerful Crown Prince Mohammed bin Zayed Al-Nahyan.&nbsp;

A dozen agreements worth more than $1.3 billion, notably in the energy, advanced technology and sectors, are expected to be sealed during the visit, according to the Russian sovereign wealth fund.&nbsp;

As Putin made his way to the presidential palace, jets painted the sky white, blue and red,&nbsp;the colours of the Russian flag, and ceremonial cannon salutes were fired.

The streets of Abu Dhabi were lined with Emirati and Russian flags, while road signs typically displaying warnings for motorists greeted Putin in Arabic and Russian.

"The United Arab Emirates welcomes the visit of <a href="https://www.wionews.com/world/putin-says-nothing-compromising-in-trump-call-to-ukraine-leader-253325">the Russian president</a>," read the signs.&nbsp;

"Among the Gulf countries, the UAE is the leader in terms of trade with Russia," Kremlin adviser Yuri Ushakov told the press a few days ahead of the visit.

In 2018, trade between the two countries had reached up to $1.7 billion.

"Relations with the Emirates are very advanced, and they are constantly improving," Russian Economy Minister Maxim Oreshkin told reporters in Riyadh on Monday.&nbsp;

President Vladimir Putin visited Abu Dhabi on Tuesday, seeking to attract over $1.3 billion worth of investments in Russia's economy. Putin, who came to the United Arab Emirates a day after signing a key oil deal with Saudi Arabia in Riyadh, was greeted by Abu Dhabi's powerful Crown Prince Mohammed bin Zayed Al-Nahyan.

President Vladimir Putin visited Abu Dhabi on Tuesday, seeking to attract over $1.3 billion worth of investments in Russia's economy. Putin, who came to the United Arab Emirates a day after signing a key oil deal with Saudi Arabia in Riyadh, was greeted by Abu Dhabi's powerful Crown Prince Mohammed bin Zayed Al-Nahyan. A dozen agreements worth more than $1.3 billion, notably in the energy, advanced technology and sectors, are expected to be sealed during the visit, according to the Russian sovereign wealth fund. As Putin made his way to the presidential palace, jets painted the sky white, blue and red, the colours of the Russian flag, and ceremonial cannon salutes were fired. The streets of Abu Dhabi were lined with Emirati and Russian flags, while road signs typically displaying warnings for motorists greeted Putin in Arabic and Russian. "The United Arab Emirates welcomes the visit of the Russian president," read the signs. "Among the Gulf countries, the UAE is the leader in terms of trade with Russia," Kremlin adviser Yuri Ushakov told the press a few days ahead of the visit. In 2018, trade between the two countries had reached up to $1.7 billion. "Relations with the Emirates are very advanced, and they are constantly improving," Russian Economy Minister Maxim Oreshkin told reporters in Riyadh on Monday.

Putin in Abu Dhabi seeking $1.3 billion in investments

Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Monday said that investment worth $58 billion is expected in&nbsp;<a href="https://www.wionews.com/india-news/india-investing-60-billion-on-gas-grid-to-link-up-nation-by-2024-255711">India's oil exploration and production sector</a> in the next two years, while $60 billion have&nbsp;already been invested to create gas-based infrastructure in the country. 
 
"We have invested around US dollar 60 billion to create a gas-based infrastructure in India. US dollar 58 billion investment is expected in two years in the oil exploration and production sector. New refineries and terminals, expanding the market size, bio-fuel are the priority areas," said Pradhan while addressing the third "India Energy Forum" in the national capital. 
 
He said that the centre is committed to making India a low carbon economy while stating that India's per capita carbon emission is far less than the world average. 
 
"The Central government is committed to making India a low carbon economy, although our per capita carbon emission is far less than the world average, particularly the Organisation for Economic Cooperation and Development (OECD) countries," said Pradhan. 
 
The Union Minister also stressed the need for expediting gas exploration and developing import and distribution infrastructure. 
 
"The oil sector can play a major role in realising the dream of making India a five trillion dollar economy by 2024. Schemes like 'Ujjwala' and 'Saubhagya' have transformed the lives of the people of the country," he said. 
 
Pradhan also batted for bringing the aviation turbine fuel (ATF) and natural gas under the ambit of the Goods and Services Tax (GST).

Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Monday said that investment worth $58 billion is expected in India's oil exploration and production sector in the next two years, while $60 billion have already been invested to create gas-based infrastructure in the country.

Union Petroleum and Natural Gas Minister Dharmendra Pradhan on Monday said that investment worth $58 billion is expected in India's oil exploration and production sector in the next two years, while $60 billion have already been invested to create gas-based infrastructure in the country. "We have invested around US dollar 60 billion to create a gas-based infrastructure in India. US dollar 58 billion investment is expected in two years in the oil exploration and production sector. New refineries and terminals, expanding the market size, bio-fuel are the priority areas," said Pradhan while addressing the third "India Energy Forum" in the national capital. He said that the centre is committed to making India a low carbon economy while stating that India's per capita carbon emission is far less than the world average. "The Central government is committed to making India a low carbon economy, although our per capita carbon emission is far less than the world average, particularly the Organisation for Economic Cooperation and Development (OECD) countries," said Pradhan. The Union Minister also stressed the need for expediting gas exploration and developing import and distribution infrastructure. "The oil sector can play a major role in realising the dream of making India a five trillion dollar economy by 2024. Schemes like 'Ujjwala' and 'Saubhagya' have transformed the lives of the people of the country," he said. Pradhan also batted for bringing the aviation turbine fuel (ATF) and natural gas under the ambit of the Goods and Services Tax (GST).

Investment worth $58 billion expected in India's oil exploration, production sector: Dharmendra Pradhan

Saudi Arabia, the world’s biggest oil exporter is looking at investing $100 billion in India in petrochemicals, infrastructure and mining among many other sectors.

At a time when India is facing an economic slowdown, Saudi Arabia is likely to invest $ 100 billion in different areas, considering the country’s growth potential.

In an interview to a leading Indian news agency, Saudi Ambassador Dr Saud bin Mohammed Al Sati said that the Arab nation is eyeing on having a long term partnership with India in various sectors including oil, gas, agriculture and mining.

This announcement comes days after oil giant Aramco and reliance industries announced a strategic tie-up with Saudi Aramco proposing to invest $44 billion in the west coast refinery and a petrochemical project in Maharashtra.

Saudi Arabia is a key pillar of India's energy security, being a source of 17% crude oil and 32% LPG requirements in India with the current bilateral trade between India and Saudi Arabia at $34 billion.

Saudi Arabia, the world’s biggest oil exporter is looking at investing $100 billion in India in petrochemicals, infrastructure and mining among many other sectors.

Saudi Arabia, the world’s biggest oil exporter is looking at investing $100 billion in India in petrochemicals, infrastructure and mining among many other sectors. At a time when India is facing an economic slowdown, Saudi Arabia is likely to invest $ 100 billion in different areas, considering the country’s growth potential. In an interview to a leading Indian news agency, Saudi Ambassador Dr Saud bin Mohammed Al Sati said that the Arab nation is eyeing on having a long term partnership with India in various sectors including oil, gas, agriculture and mining. This announcement comes days after oil giant Aramco and reliance industries announced a strategic tie-up with Saudi Aramco proposing to invest $44 billion in the west coast refinery and a petrochemical project in Maharashtra. Saudi Arabia is a key pillar of India's energy security, being a source of 17% crude oil and 32% LPG requirements in India with the current bilateral trade between India and Saudi Arabia at $34 billion.

Saudi Arabia looking at $100-billion investment in Indian petrochemicals, infrastructure and mining

<a href="https://www.wionews.com/world/wework-ipo-valuation-likely-below-20-billion-clouding-softbanks-vision-248837">WeWork</a> co-founder Adam&nbsp;Neumann&nbsp;agreed on Tuesday to resign as the Chief Executive and to give up majority voting&nbsp;control, after SoftBank Group Corp&nbsp;and other shareholders turned on him over a plunge in the US&nbsp;office-sharing start-up's estimated valuation.

The decision came after WeWork's parent We Company postponed its initial public offering last week&nbsp;following a push-back from prospective&nbsp;stock market&nbsp;investors, not just over its widening losses, but also over&nbsp;Neumann's unusually firm grip on the company.

This was a blow for <a href="https://www.wionews.com/business-economy/softbank-toyota-autonomous-car-venture-to-launch-in-south-east-asia-next-year-226268">SoftBank</a>, which was hoping for We Company's IPO to bolster its fortunes as it seeks to woo&nbsp;investors for its second $108 billion Vision Fund.

SoftBank invested in We Company at a $47 billion valuation in January. But&nbsp;investor&nbsp;scepticism led to it earlier this month considering a potential IPO valuation of as low as $10 billion, Reuters reported.

We Company had vowed to press ahead with an IPO by the end of the year. But there was little sign that <a href="https://www.wionews.com/world/exclusive-wework-to-press-on-with-ipo-launch-despite-valuation-concerns-sources-248290">IPO&nbsp;investor</a>&nbsp;sentiment would change, threatening the value of the stakes held not just by outside&nbsp;investors, but by&nbsp;Neumann&nbsp;as well.

The size of&nbsp;Neumann's holding has not been disclosed.

What was the venture capital world's biggest upset then morphed into one of corporate America's most high-profile boardroom dramas. SoftBank managed to muster enough opposition to&nbsp;Neumann&nbsp;in a meeting of We Company's seven-member board on Tuesday to convince him to step down. Reuters had reported on Monday that&nbsp;Neumann&nbsp;had engaged in talks about changes to his&nbsp;role.

"In recent weeks, the scrutiny directed towards me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as Chief Executive,"&nbsp;Neumann&nbsp;said in a statement.

Artie Minson, currently the Chief Financial Officer of WeWork's parent We Company, and Sebastian Gunningham, the&nbsp;Vice-Chairman&nbsp;of&nbsp;the New York-based start-up, will become co-chief executives, the company said.&nbsp;Neumann&nbsp;will stay on the board as a Non-executive Chairman, the company added.

Minson, a former Chief Financial Officer at the&nbsp;Time Warner Cable who joined We Company in 2015, will oversee its finance, legal, human resources, real estate and public communications. Gunningham, a former executive at Amazon.com Inc, Apple Inc,&nbsp;and Oracle Corp&nbsp;who joined We Company last year, will take responsibility for product, design, development, sales, marketing, technology and regional teams.

We Company is considering slowing its expansion so it burns through less cash and would require less funding in the absence of an IPO in the nearing&nbsp;team, Reuters reported on Monday.

"While we anticipate difficult decisions ahead, each decision will be made with rigorous analysis, always bearing in mind the company’s long-term interests and health," Minson and Gunningham wrote in an internal company memo seen by Reuters.

Neumann&nbsp;also agreed to reduce the power of his voting shares, losing majority voting&nbsp;control, according to the sources. Each of his shares will now have the same voting rights as three We Company common shares, not the 10 common shares previously, the sources said.

Neumann's shares used to have the same voting power as 20 We Company common shares, before he agreed to reduce his grip slightly earlier this month in an unsuccessful attempt to make the IPO more attractive to&nbsp;investors.

We Company said on Tuesday it was now evaluating the "optimal timing" for an IPO.

Firm Grip

Neumann, whose net worth is pegged by Forbes at $2.2 billion, developed a cult&nbsp;following&nbsp;among many We Company employees, vowing to "elevate the world's consciousness" as he sought to establish WeWork as a brand that transcended office sharing.

While his&nbsp;investors were willing to entertain his eccentricities over the decade he led WeWork since its founding in 2010, his free-whiling ways and party-heavy lifestyle came into focus once he failed to get the company's IPO underway.

During the attempts to woo IPO&nbsp;investors this month,&nbsp;Neumann&nbsp;was criticized by corporate governance experts for arrangements that went beyond the typical practice of having majority voting&nbsp;control&nbsp;through special categories of shares.

These included giving his estate a major say in his replacement as&nbsp;CEO, and tying the voting power of shares to how much he donates to charitable causes.

Neumann&nbsp;had also entered several transactions with We Company, making the company a tenant in some of his properties and charging it rent. He has also secured a $500 million credit line from banks using company stock as collateral.

Late Concessions

Following&nbsp;criticism by potential&nbsp;investors,&nbsp;Neumann&nbsp;agreed to some concessions without relinquishing majority&nbsp;control. He agreed to give We Company any profit he receives from real estate deals he had&nbsp;reached with the New York-based firm.

These changes did little to address concerns about the business model for We Company, which rents workspace to clients under short-term contracts, even though it pays rent under long-term leases. This mix of long-term liabilities and short-term revenue raised questions among&nbsp;investors about how the company would weather an economic downturn.

Neumann, 40, is not the first founder of a major start-up to be forced to step down recently. Uber Technologies Inc&nbsp;co-founder Travis Kalanick resigned as the CEO&nbsp;of the ride-hailing start-up in 2017 after facing a rebellion from his board over a string of scandals, including allegations of enabling a chauvinistic and toxic work culture.

Uber replaced Kalanick with an outsider, former Expedia Group Inc&nbsp;CEO&nbsp;Dara Khosrowshahi, and completed its IPO last May.

WeWork co-founder Adam Neumann agreed on Tuesday to resign as the Chief Executive and to give up majority voting control, after SoftBank Group Corp and other shareholders turned on him over a plunge in the US office-sharing start-up's estimated valuation.

WeWork co-founder Adam Neumann agreed on Tuesday to resign as the Chief Executive and to give up majority voting control, after SoftBank Group Corp and other shareholders turned on him over a plunge in the US office-sharing start-up's estimated valuation. The decision came after WeWork's parent We Company postponed its initial public offering last week following a push-back from prospective stock market investors, not just over its widening losses, but also over Neumann's unusually firm grip on the company. This was a blow for SoftBank, which was hoping for We Company's IPO to bolster its fortunes as it seeks to woo investors for its second $108 billion Vision Fund. SoftBank invested in We Company at a $47 billion valuation in January. But investor scepticism led to it earlier this month considering a potential IPO valuation of as low as $10 billion, Reuters reported. We Company had vowed to press ahead with an IPO by the end of the year. But there was little sign that IPO investor sentiment would change, threatening the value of the stakes held not just by outside investors, but by Neumann as well. The size of Neumann's holding has not been disclosed. What was the venture capital world's biggest upset then morphed into one of corporate America's most high-profile boardroom dramas. SoftBank managed to muster enough opposition to Neumann in a meeting of We Company's seven-member board on Tuesday to convince him to step down. Reuters had reported on Monday that Neumann had engaged in talks about changes to his role. "In recent weeks, the scrutiny directed towards me has become a significant distraction, and I have decided that it is in the best interest of the company to step down as Chief Executive," Neumann said in a statement. Artie Minson, currently the Chief Financial Officer of WeWork's parent We Company, and Sebastian Gunningham, the Vice-Chairman of the New York-based start-up, will become co-chief executives, the company said. Neumann will stay on the board as a Non-executive Chairman, the company added. Minson, a former Chief Financial Officer at the Time Warner Cable who joined We Company in 2015, will oversee its finance, legal, human resources, real estate and public communications. Gunningham, a former executive at Amazon.com Inc, Apple Inc, and Oracle Corp who joined We Company last year, will take responsibility for product, design, development, sales, marketing, technology and regional teams. We Company is considering slowing its expansion so it burns through less cash and would require less funding in the absence of an IPO in the nearing team, Reuters reported on Monday. "While we anticipate difficult decisions ahead, each decision will be made with rigorous analysis, always bearing in mind the company’s long-term interests and health," Minson and Gunningham wrote in an internal company memo seen by Reuters. Neumann also agreed to reduce the power of his voting shares, losing majority voting control, according to the sources. Each of his shares will now have the same voting rights as three We Company common shares, not the 10 common shares previously, the sources said. Neumann's shares used to have the same voting power as 20 We Company common shares, before he agreed to reduce his grip slightly earlier this month in an unsuccessful attempt to make the IPO more attractive to investors. We Company said on Tuesday it was now evaluating the "optimal timing" for an IPO. Firm Grip Neumann, whose net worth is pegged by Forbes at $2.2 billion, developed a cult following among many We Company employees, vowing to "elevate the world's consciousness" as he sought to establish WeWork as a brand that transcended office sharing. While his investors were willing to entertain his eccentricities over the decade he led WeWork since its founding in 2010, his free-whiling ways and party-heavy lifestyle came into focus once he failed to get the company's IPO underway. During the attempts to woo IPO investors this month, Neumann was criticized by corporate governance experts for arrangements that went beyond the typical practice of having majority voting control through special categories of shares. These included giving his estate a major say in his replacement as CEO, and tying the voting power of shares to how much he donates to charitable causes. Neumann had also entered several transactions with We Company, making the company a tenant in some of his properties and charging it rent. He has also secured a $500 million credit line from banks using company stock as collateral. Late Concessions Following criticism by potential investors, Neumann agreed to some concessions without relinquishing majority control. He agreed to give We Company any profit he receives from real estate deals he had reached with the New York-based firm. These changes did little to address concerns about the business model for We Company, which rents workspace to clients under short-term contracts, even though it pays rent under long-term leases. This mix of long-term liabilities and short-term revenue raised questions among investors about how the company would weather an economic downturn. Neumann, 40, is not the first founder of a major start-up to be forced to step down recently. Uber Technologies Inc co-founder Travis Kalanick resigned as the CEO of the ride-hailing start-up in 2017 after facing a rebellion from his board over a string of scandals, including allegations of enabling a chauvinistic and toxic work culture. Uber replaced Kalanick with an outsider, former Expedia Group Inc CEO Dara Khosrowshahi, and completed its IPO last May.

WeWork's Neumann surrenders control and CEO role following investor revolt

UBS Group AG and <a href="https://www.wionews.com/world/us-department-of-justice-investigates-deutsche-bank-over-1mdb-connection-report-234843">Deutsche Bank</a> AG held talks about combining their businesses earlier this year, including discussions in mid-June about an investment banking alliance, the Wall Street Journal reported on Sunday.&nbsp;

A deal could not be reached as the two lenders were not able to sort out issues including structuring and allocating capital, the newspaper reported, citing people familiar with the talks.

Reuters reported in May that discussions stalled between the two banks on a tie-up of their asset management businesses due to differences over who would control the combined entity.

Deutsche Bank declined to comment on the WSJ report.&nbsp;

UBS did not respond to a request for immediate comment on Sunday.

UBS Group AG and Deutsche Bank AG held talks about combining their businesses earlier this year, including discussions in mid-June about an investment banking alliance, the Wall Street Journal reported on Sunday.

UBS Group AG and Deutsche Bank AG held talks about combining their businesses earlier this year, including discussions in mid-June about an investment banking alliance, the Wall Street Journal reported on Sunday. A deal could not be reached as the two lenders were not able to sort out issues including structuring and allocating capital, the newspaper reported, citing people familiar with the talks. Reuters reported in May that discussions stalled between the two banks on a tie-up of their asset management businesses due to differences over who would control the combined entity. Deutsche Bank declined to comment on the WSJ report. UBS did not respond to a request for immediate comment on Sunday.

UBS, Deutsche held talks on investment banking alliance: Report

Infrastructure development, including the construction of roads, bridges, ports, power plants and water supply, are key drivers of economic growth. It facilitates developing countries to boost their manufacturing, services as well as trade.

The fast-paced infrastructure development in India has not only helped the country in becoming one of the fastest growing economies of the world, but also aided in bringing in substantial investment.&nbsp;

Smart Cities Mission has given a boost to infrastructure development. With infrastructure geared towards Smart Cities, the focus is on sustainable infrastructure, which also becomes the need of the hour considering the fact that the planet is suffering from eco-anxiety — due to climate change and diminishing natural resources.

Sustainable infrastructure not just protects the environment, but also adds long-term value to the facilities. It enhances the quality of life for citizens of the country.

Sustainable growth helps in protecting vital natural resources along with promoting efficient use of financial resources.

Pollution is one of the major problems dogging India, whose air quality in India is horrendously bad right now. The problem became so intense that the government had to stop construction at almost all sites.

An increasing number of vehicles, along with industrialisation and a decreasing number of trees, have added to carbon emission.&nbsp;

Sustainable infrastructure can play a role in reducing energy consumption, which helps in minimising carbon dioxide emission. The usage of renewable energy sources directly helps in improving air quality.

Sustainable infrastructure also helps in reducing solid waste. Since the focus has now shifted to solid waste management, companies manufacturing construction materials are coming up with renewable building materials which are easy to recycle.&nbsp;

Various solid waste reduction practices such as construction byproduct management, recyclable management, recycled material usage and waste mitigation have been incorporated. &nbsp;

Owing to rampant exploitation of natural resources, it is high time that we switch to sustainable infrastructure development. This will help reduce dependence on natural resources.&nbsp;

Through building re-purposing, sustainable infrastructure projects will help save natural resources.&nbsp;

Sustainable projects also help to reduce soil erosion as well as water runoff. They assist in preserving indigenous wildlife and open land.

While developing a sustainable infrastructure project, the focus is on less energy consumption. Although the cost of sustainable engineering is higher as compared to traditional building methods, the developer can recover the initial cost due to reduced utility and maintenance expenses.

Apart from bringing down energy consumption, there is a reduction in water consumption too owing to the fact that civil engineers practising sustainable infrastructure design also incorporate water saving- technologies. These projects have water-free urinals — no flush toilets and low flow shower heads.

It also comes with the benefit of improved community health. With improved air quality, reduction in carbon emission, less energy consumption and usage of renewable energy sources, sustainable infrastructure has tremendous health benefits.&nbsp;

Sustainable infrastructure also reduces the risk of damages through unforeseen natural disasters.&nbsp;

Apart from this, the developer of a sustainable project might get insurance discounts through preventive disaster measures, which further offsets emergency equipment expenses.&nbsp;

Structural life spans of the project that are designed keeping in mind sustainability also goes up. This helps developers in cutting down on construction costs. It is safe to say that any sustainable project should remain safe and functional for 200 to 300 years.

Minimalist designs allow property owners to add features as and when needed. The design of sustainable projects is such that it facilitates future additions. The floor plans of sustainable projects ensure that space lends itself to multi-purpose utility.&nbsp;

Sustainable projects also include framework, which includes additional floor levels, as well as accessible wiring conduits that facilitate future improvements.

Apart from providing a better place to live, sustainable infrastructure development also adds to employment prospects. Employment opportunities are created at every step. Job opportunities are aplenty — right from construction to its maintenance. Apart from being the direct source of employment for local labour, it is also a source of income generation for small businessmen who supply materials for construction.

Sustainable infrastructure attracts investment, which ropes in companies providing employment opportunities to local labour and help in controlling rampant inter-state migration.&nbsp; 
 
(This article was originally published on The DNA. Read the <a href="https://www.dnaindia.com/analysis/column-sustainable-infrastructure-the-way-ahead-for-india-2760490">original article)</a>

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)&nbsp; 
&nbsp;

Infrastructure development, including the construction of roads, bridges, ports, power plants and water supply, are key drivers of economic growth. It facilitates developing countries to boost their manufacturing, services as well as trade.

Infrastructure development, including the construction of roads, bridges, ports, power plants and water supply, are key drivers of economic growth. It facilitates developing countries to boost their manufacturing, services as well as trade. The fast-paced infrastructure development in India has not only helped the country in becoming one of the fastest growing economies of the world, but also aided in bringing in substantial investment. Smart Cities Mission has given a boost to infrastructure development. With infrastructure geared towards Smart Cities, the focus is on sustainable infrastructure, which also becomes the need of the hour considering the fact that the planet is suffering from eco-anxiety — due to climate change and diminishing natural resources. Sustainable infrastructure not just protects the environment, but also adds long-term value to the facilities. It enhances the quality of life for citizens of the country. Sustainable growth helps in protecting vital natural resources along with promoting efficient use of financial resources. Pollution is one of the major problems dogging India, whose air quality in India is horrendously bad right now. The problem became so intense that the government had to stop construction at almost all sites. An increasing number of vehicles, along with industrialisation and a decreasing number of trees, have added to carbon emission. Sustainable infrastructure can play a role in reducing energy consumption, which helps in minimising carbon dioxide emission. The usage of renewable energy sources directly helps in improving air quality. Sustainable infrastructure also helps in reducing solid waste. Since the focus has now shifted to solid waste management, companies manufacturing construction materials are coming up with renewable building materials which are easy to recycle. Various solid waste reduction practices such as construction byproduct management, recyclable management, recycled material usage and waste mitigation have been incorporated. Owing to rampant exploitation of natural resources, it is high time that we switch to sustainable infrastructure development. This will help reduce dependence on natural resources. Through building re-purposing, sustainable infrastructure projects will help save natural resources. Sustainable projects also help to reduce soil erosion as well as water runoff. They assist in preserving indigenous wildlife and open land. While developing a sustainable infrastructure project, the focus is on less energy consumption. Although the cost of sustainable engineering is higher as compared to traditional building methods, the developer can recover the initial cost due to reduced utility and maintenance expenses. Apart from bringing down energy consumption, there is a reduction in water consumption too owing to the fact that civil engineers practising sustainable infrastructure design also incorporate water saving- technologies. These projects have water-free urinals — no flush toilets and low flow shower heads. It also comes with the benefit of improved community health. With improved air quality, reduction in carbon emission, less energy consumption and usage of renewable energy sources, sustainable infrastructure has tremendous health benefits. Sustainable infrastructure also reduces the risk of damages through unforeseen natural disasters. Apart from this, the developer of a sustainable project might get insurance discounts through preventive disaster measures, which further offsets emergency equipment expenses. Structural life spans of the project that are designed keeping in mind sustainability also goes up. This helps developers in cutting down on construction costs. It is safe to say that any sustainable project should remain safe and functional for 200 to 300 years. Minimalist designs allow property owners to add features as and when needed. The design of sustainable projects is such that it facilitates future additions. The floor plans of sustainable projects ensure that space lends itself to multi-purpose utility. Sustainable projects also include framework, which includes additional floor levels, as well as accessible wiring conduits that facilitate future improvements. Apart from providing a better place to live, sustainable infrastructure development also adds to employment prospects. Employment opportunities are created at every step. Job opportunities are aplenty — right from construction to its maintenance. Apart from being the direct source of employment for local labour, it is also a source of income generation for small businessmen who supply materials for construction. Sustainable infrastructure attracts investment, which ropes in companies providing employment opportunities to local labour and help in controlling rampant inter-state migration. (This article was originally published on The DNA. Read the original article) (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Sustainable infrastructure the way ahead for India

Uber's autonomous vehicle unit has raised $1 billion from a consortium of investors including SoftBank Group Corp, giving the company a much-needed funding boost for its pricey self-driving ambitions on the eve of its public stock offering.

Uber&nbsp;said on Thursday that the investment values its Advanced Technologies Group, which works to develop autonomous driving technology, at $7.25 billion. SoftBank will invest $333 million from its $100 billion Vision Fund, while Toyota Motor Corp and automotive parts supplier Denso Corp will invest a combined $667 million.

Toyota will also contribute up to an additional $300 million over the next three years to help cover the costs of building commercial self-driving vehicles, Uber said.

Reuters had reported in March talks of the investment in ATG.

Uber CEO Dara Khosrowshahi said that the funding "will help maintain Uber's position at the forefront of" a transforming transportation industry.

The funding allows Uber to transfer some of the substantial cost of developing self-driving cars onto outside investors. That is likely to appease some of Wall Street's concerns over Uber's spending on the autonomous unit, which has topped $1.07 billion since the program started in 2016.

In its filing for an initial public offering this month, Uber cautioned that development of self-driving technology "is expensive and time-consuming and may not be successful" and the company lagged certain competitors.

The self-driving business unit brings in no meaningful revenue for Uber, which last year lost $3.03 billion.

As part of the investment, ATG becomes its own legal entity but remains under the control of Uber. A new ATG board will be formed, with six directors appointed from Uber, one from SoftBank and one from Toyota. Eric Meyhofer, currently the head of ATG, will take the title of CEO and report to the new board.

Such sizeable deals are unusual for companies so close to an IPO, because bringing in large new investors changes the company's capital structure.

Uber is preparing to launch its "roadshow," when it will pitch its company prospective investors, the week of April 29, setting up for an early May debut on the New York Stock Exchange. It is expected to raise $10 billion at a $90 billion to $100 billion valuation.

National security concerns

The transaction is expected to close the third quarter. The deal, however, will almost certainly require approval from the inter-agency regulatory group called the Committee on Foreign Investment in the United States (CFIUS).

A law enacted last year expands that group's powers to review minority stakes by foreign investors in startups with certain sensitive technologies, and self-driving technology is widely considered to have defence applications.

SoftBank's investment in General Motors Co's self-driving car unit Cruise is still under CFIUS review and is likely weeks away from any decision, even though that investment was announced nearly a year ago.

Both SoftBank and Toyota are repeat Uber investors. SoftBank took a more than 16 per cent stake in the company after investing around $8 billion last year, becoming its largest shareholder. Toyota invested in Uber in 2016 and again in August with a $500 million check to work jointly to develop self-driving cars.

The investment comes despite growing disillusion with the self-driving business, which has failed to deliver on bold promises of commercial autonomous cars, and Uber's setbacks. A crash in March 2018 involving an Uber self-driving SUV killed a pedestrian in Tempe, Arizona, and forced the company to shutter its biggest testing operation and halt autonomous driving in other cities.

Uber now has a small number of cars testing in Pittsburgh, during the day and in good weather, with two safety drivers. They do not offer rides to passengers.

The Tempe crash hurt the entire industry, say self-driving company executives, dealing a blow to public confidence in the safety of robot cars.

ATG chief scientist Raquel Urtasun said in an interview with Reuters this month it "is not clear" when self-driving cars will be deployed at a large scale, and for the next decade at least there will be a mix of robot and human-controlled cars.

Uber's autonomous vehicle unit has raised $1 billion from a consortium of investors including SoftBank Group Corp, giving the company a much-needed funding boost for its pricey self-driving ambitions on the eve of its public stock offering.

Uber's autonomous vehicle unit has raised $1 billion from a consortium of investors including SoftBank Group Corp, giving the company a much-needed funding boost for its pricey self-driving ambitions on the eve of its public stock offering. Uber said on Thursday that the investment values its Advanced Technologies Group, which works to develop autonomous driving technology, at $7.25 billion. SoftBank will invest $333 million from its $100 billion Vision Fund, while Toyota Motor Corp and automotive parts supplier Denso Corp will invest a combined $667 million. Toyota will also contribute up to an additional $300 million over the next three years to help cover the costs of building commercial self-driving vehicles, Uber said. Reuters had reported in March talks of the investment in ATG. Uber CEO Dara Khosrowshahi said that the funding "will help maintain Uber's position at the forefront of" a transforming transportation industry. The funding allows Uber to transfer some of the substantial cost of developing self-driving cars onto outside investors. That is likely to appease some of Wall Street's concerns over Uber's spending on the autonomous unit, which has topped $1.07 billion since the program started in 2016. In its filing for an initial public offering this month, Uber cautioned that development of self-driving technology "is expensive and time-consuming and may not be successful" and the company lagged certain competitors. The self-driving business unit brings in no meaningful revenue for Uber, which last year lost $3.03 billion. As part of the investment, ATG becomes its own legal entity but remains under the control of Uber. A new ATG board will be formed, with six directors appointed from Uber, one from SoftBank and one from Toyota. Eric Meyhofer, currently the head of ATG, will take the title of CEO and report to the new board. Such sizeable deals are unusual for companies so close to an IPO, because bringing in large new investors changes the company's capital structure. Uber is preparing to launch its "roadshow," when it will pitch its company prospective investors, the week of April 29, setting up for an early May debut on the New York Stock Exchange. It is expected to raise $10 billion at a $90 billion to $100 billion valuation. National security concerns The transaction is expected to close the third quarter. The deal, however, will almost certainly require approval from the inter-agency regulatory group called the Committee on Foreign Investment in the United States (CFIUS). A law enacted last year expands that group's powers to review minority stakes by foreign investors in startups with certain sensitive technologies, and self-driving technology is widely considered to have defence applications. SoftBank's investment in General Motors Co's self-driving car unit Cruise is still under CFIUS review and is likely weeks away from any decision, even though that investment was announced nearly a year ago. Both SoftBank and Toyota are repeat Uber investors. SoftBank took a more than 16 per cent stake in the company after investing around $8 billion last year, becoming its largest shareholder. Toyota invested in Uber in 2016 and again in August with a $500 million check to work jointly to develop self-driving cars. The investment comes despite growing disillusion with the self-driving business, which has failed to deliver on bold promises of commercial autonomous cars, and Uber's setbacks. A crash in March 2018 involving an Uber self-driving SUV killed a pedestrian in Tempe, Arizona, and forced the company to shutter its biggest testing operation and halt autonomous driving in other cities. Uber now has a small number of cars testing in Pittsburgh, during the day and in good weather, with two safety drivers. They do not offer rides to passengers. The Tempe crash hurt the entire industry, say self-driving company executives, dealing a blow to public confidence in the safety of robot cars. ATG chief scientist Raquel Urtasun said in an interview with Reuters this month it "is not clear" when self-driving cars will be deployed at a large scale, and for the next decade at least there will be a mix of robot and human-controlled cars.

Uber's self-driving unit valued at $7.25 billion in new investment

Afghanistan unveiled 43 tenders for natural resource projects on Monday in a drive to attract investment in a country ravaged by decades of war.

Afghanistan`s mineral assets, estimated to be worth as much as $1 trillion, are seen as key to the country`s economic viability. But development has been blocked by poor security, rampant corruption, and a lack of infrastructure.&nbsp;

The tenders, ranging from mineral to oil and gas projects, were announced in Dubai, a major Middle East investment hub, by Afghanistan`s acting Minister of Mines and Petroleum Nargis Nehan.

"We have a good package of incentives for investors," Nehan told Reuters in an interview.&nbsp;

Afghanistan is opening 14 tenders for large-scale projects to international companies through a competitive bidding process, with the remaining small-scale projects to be awarded to local companies.&nbsp;

The projects have generated interest from US, European, and Gulf companies, Nehan said.

The announcement of the tenders comes amid peace talks between the Taliban and the United States, which wants to exit the country it invaded to overthrow the Taliban nearly two decades ago.

The two sides are scheduled to meet again this month.

"There are two ways of looking at the issue ... the situation might deteriorate," Nehan said amid the uncertainty of what the two sides might agree and whether the United States will soon pull-out.

"There is another perspective to look at it, and that is actually finally having peace," she said.

The government hopes a royalty rate from 2.5 per cent to 7.5 per cent and an import duty exemption on machinery used to work on the projects will encourage investment.

The tenders cover projects in 16 of the country`s 34 provinces and the government estimate $100 million will be spent over the next year on initial assessments, exploration, and evaluation work.

A tender can be awarded within six months and work is expected to start within a further six-month period, Nehan said.

The government will invest in some tender-related infrastructure but expects many companies will choose to do it themselves. Security on the projects will only be provided by local forces, she said.&nbsp;

"The Afghan Public Protection Force ... will asses the areas and based on the needs of the area they will submit a budget and proposal to the company."

Afghanistan unveiled 43 tenders for natural resource projects on Monday in a drive to attract investment in a country ravaged by decades of war. Afghanistan`s mineral assets, estimated to be worth as much as $1 trillion, are seen as key to the country`s economic viability.

Afghanistan unveiled 43 tenders for natural resource projects on Monday in a drive to attract investment in a country ravaged by decades of war. Afghanistan`s mineral assets, estimated to be worth as much as $1 trillion, are seen as key to the country`s economic viability. But development has been blocked by poor security, rampant corruption, and a lack of infrastructure. The tenders, ranging from mineral to oil and gas projects, were announced in Dubai, a major Middle East investment hub, by Afghanistan`s acting Minister of Mines and Petroleum Nargis Nehan. "We have a good package of incentives for investors," Nehan told Reuters in an interview. Afghanistan is opening 14 tenders for large-scale projects to international companies through a competitive bidding process, with the remaining small-scale projects to be awarded to local companies. The projects have generated interest from US, European, and Gulf companies, Nehan said. The announcement of the tenders comes amid peace talks between the Taliban and the United States, which wants to exit the country it invaded to overthrow the Taliban nearly two decades ago. The two sides are scheduled to meet again this month. "There are two ways of looking at the issue ... the situation might deteriorate," Nehan said amid the uncertainty of what the two sides might agree and whether the United States will soon pull-out. "There is another perspective to look at it, and that is actually finally having peace," she said. The government hopes a royalty rate from 2.5 per cent to 7.5 per cent and an import duty exemption on machinery used to work on the projects will encourage investment. The tenders cover projects in 16 of the country`s 34 provinces and the government estimate $100 million will be spent over the next year on initial assessments, exploration, and evaluation work. A tender can be awarded within six months and work is expected to start within a further six-month period, Nehan said. The government will invest in some tender-related infrastructure but expects many companies will choose to do it themselves. Security on the projects will only be provided by local forces, she said. "The Afghan Public Protection Force ... will asses the areas and based on the needs of the area they will submit a budget and proposal to the company."

Afghanistan pushes for investment as it waits for peace

Pakistan and Saudi Arabia on Sunday signed a slew of investment agreements worth $20 billion which will provide welcome relief to the teetering economy of the cash-strapped South Asian country.

At a ceremony in Prime Minister House, Pakistan and Saudi officials signed MoUs for bilateral cooperation in a number of areas — a process overseen by Pakistan premier Imran Khan <a href="http://www.wionews.com/south-asia/saudi-crown-prince-begins-asia-tour-in-pakistan-amid-india-tensions-197947">Saudi Crown Prince Mohammad bin Salman</a>, who arrived here late evening on a two-day visit.

"Today we signed MoUs. The amount of that kind of investment is $20 billion. It is big for phase one and definitely it (Saudi investment in Pakistan) will grow every month, every year in bigger numbers and it will be beneficial for both the countries," the crown prince said. &nbsp; &nbsp;

"Pakistan is going to be very, very important country in the future and we want to be sure we are part of that," he added.&nbsp;

Seven agreements, including MoUs in power, petrochemical and mining sectors, were inked as Prince Salman launched his diplomatic trip to Asia in Islamabad.

After Pakistan, the crown prince will travel to India, where he will meet Prime Minister Narendra Modi and Petroleum Minister Dharmendra Pradhan.

He is expected to finish the trip with a visit to China on Thursday and Friday.

Prince Salman said Saudi "cannot say no to Pakistan, whatever you (Pakistan) want we will do."&nbsp;

"For Pakistanis, this is a great day," the Pakistani premier said while addressing a dinner reception held in honour of the visiting Saudi guests at the PM House.

He said Saudi Arabia has always been there when Pakistan needed friends.&nbsp;

"I want to thank you for the way you helped us when we were in (a) bad situation," Khan told the royal guest, adding that Pakistan and Saudi Arabia were now taking their relationship to a new level, where investment agreements would be mutually beneficial for the countries.

"The future is exciting for both Pakistan and Saudi Arabia after joining hands," he said.

Pakistan and Saudi Arabia on Sunday signed a slew of investment agreements worth $20 billion which will provide welcome relief to the teetering economy of the cash-strapped South Asian country.

Pakistan and Saudi Arabia on Sunday signed a slew of investment agreements worth $20 billion which will provide welcome relief to the teetering economy of the cash-strapped South Asian country. At a ceremony in Prime Minister House, Pakistan and Saudi officials signed MoUs for bilateral cooperation in a number of areas — a process overseen by Pakistan premier Imran Khan Saudi Crown Prince Mohammad bin Salman, who arrived here late evening on a two-day visit. "Today we signed MoUs. The amount of that kind of investment is $20 billion. It is big for phase one and definitely it (Saudi investment in Pakistan) will grow every month, every year in bigger numbers and it will be beneficial for both the countries," the crown prince said. "Pakistan is going to be very, very important country in the future and we want to be sure we are part of that," he added. Seven agreements, including MoUs in power, petrochemical and mining sectors, were inked as Prince Salman launched his diplomatic trip to Asia in Islamabad. After Pakistan, the crown prince will travel to India, where he will meet Prime Minister Narendra Modi and Petroleum Minister Dharmendra Pradhan. He is expected to finish the trip with a visit to China on Thursday and Friday. Prince Salman said Saudi "cannot say no to Pakistan, whatever you (Pakistan) want we will do." "For Pakistanis, this is a great day," the Pakistani premier said while addressing a dinner reception held in honour of the visiting Saudi guests at the PM House. He said Saudi Arabia has always been there when Pakistan needed friends. "I want to thank you for the way you helped us when we were in (a) bad situation," Khan told the royal guest, adding that Pakistan and Saudi Arabia were now taking their relationship to a new level, where investment agreements would be mutually beneficial for the countries. "The future is exciting for both Pakistan and Saudi Arabia after joining hands," he said.

In relief for its economy, Saudi Arabia invests $20 billion in Pakistan

Nepalis have stashed Rs 35.8 billion in <a href="https://www.google.com/url?q=http://www.wionews.com/south-asia/55-businessmen-of-nepal-have-stashed-billions-in-swiss-banks-cij-190961&amp;sa=U&amp;ved=0ahUKEwigmNzV7PTfAhWBzLwKHXhoCM8QFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw2qGPcqBfNelFBhhHYj642q">Swiss bank</a>s, violating the country's law which bars them from transferring funds abroad, according to an investigation carried out by the Centre for Investigative Journalism.

The report 'Nepal-leaks 2019: Illegal Wealth watch', released Wednesday night, also claimed that 55 Nepalis have invested in offshore companies, taking advantage of the country's secretive tax regimes and breaching the law which bars investment in foreign countries.

The report is based on an analysis of over 3,000 financial and court documents and interviews with 70 individuals.

Questions have been raised about the source of their<a href="https://www.google.com/url?q=http://www.wionews.com/business-economy/india-can-lead-in-5g-deployment-but-investments-in-fibre-infrastructure-key-trai-chief-191007&amp;sa=U&amp;ved=0ahUKEwjopcn87PTfAhXRSH0KHTL3AvgQFggFMAA&amp;client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;usg=AOvVaw3n-oFjfZNSxp-UDvM31wE_"> investment</a> since they have invested in offshore companies including lesser known the British Virgin Islands, says the report.

Those who invested money in foreign countries include politicians to high-flying businessman-some of whom are non-resident Nepalis-to doctors and hoteliers.

The investors include renowned businessmen and industrialists Upendra Mahato, Chandra Dhakal, Rajendra Bajgai, and Minu Shah Chhibar.

Majority of the investments were made in businesses registered in the British Virgin Islands, one of the most notorious tax havens in the Caribbean.

The report also revealed how a lot of these investors used their offshore companies to funnel money back into the country under the guise of Foreign Direct Investment.

According to the report, Nepalis have parked Rs 35.8 billion in Swiss banks, violating the country's law, which bars Nepalis from transferring funds abroad.

Nepali account-holders have earned interest of around Rs 774.1 million from the funds they deposited in Swiss banks. Interestingly, the Nepalese started depositing money in the Swiss Bank in 1996, when the decade-long Maoist insurgency began.

The total amount of money deposited by Nepalis in Swiss Bank amounts to 460.8 million Swiss Franc equivalent to Rs 52 billion. Even now, Nepalese have Rs 35.8 billion in the Swiss Bank, adds the report.

Between 1996? when the Maoist insurgency started? and 2006? when the peace agreement was signed? the amount of money deposited by Nepalis in Swiss banks more than doubled from Rs 1.2 billion to Rs 2.7 billion.

The report has named Minu Shah as the individual with the highest savings among Nepali account holders. Shah, who was married to an Indian national, made a deposit of $23 million equivalent to Rs 2.62 billion in the Swiss Bank account.&nbsp;

Nepalis have stashed Rs 35.8 billion in Swiss banks, violating the country's law which bars them from transferring funds abroad, according to an investigation carried out by the Centre for Investigative Journalism.

Nepalis have stashed Rs 35.8 billion in Swiss banks, violating the country's law which bars them from transferring funds abroad, according to an investigation carried out by the Centre for Investigative Journalism. The report 'Nepal-leaks 2019: Illegal Wealth watch', released Wednesday night, also claimed that 55 Nepalis have invested in offshore companies, taking advantage of the country's secretive tax regimes and breaching the law which bars investment in foreign countries. The report is based on an analysis of over 3,000 financial and court documents and interviews with 70 individuals. Questions have been raised about the source of their investment since they have invested in offshore companies including lesser known the British Virgin Islands, says the report. Those who invested money in foreign countries include politicians to high-flying businessman-some of whom are non-resident Nepalis-to doctors and hoteliers. The investors include renowned businessmen and industrialists Upendra Mahato, Chandra Dhakal, Rajendra Bajgai, and Minu Shah Chhibar. Majority of the investments were made in businesses registered in the British Virgin Islands, one of the most notorious tax havens in the Caribbean. The report also revealed how a lot of these investors used their offshore companies to funnel money back into the country under the guise of Foreign Direct Investment. According to the report, Nepalis have parked Rs 35.8 billion in Swiss banks, violating the country's law, which bars Nepalis from transferring funds abroad. Nepali account-holders have earned interest of around Rs 774.1 million from the funds they deposited in Swiss banks. Interestingly, the Nepalese started depositing money in the Swiss Bank in 1996, when the decade-long Maoist insurgency began. The total amount of money deposited by Nepalis in Swiss Bank amounts to 460.8 million Swiss Franc equivalent to Rs 52 billion. Even now, Nepalese have Rs 35.8 billion in the Swiss Bank, adds the report. Between 1996? when the Maoist insurgency started? and 2006? when the peace agreement was signed? the amount of money deposited by Nepalis in Swiss banks more than doubled from Rs 1.2 billion to Rs 2.7 billion. The report has named Minu Shah as the individual with the highest savings among Nepali account holders. Shah, who was married to an Indian national, made a deposit of $23 million equivalent to Rs 2.62 billion in the Swiss Bank account.

Nepalis stash Rs 35.8 billion in Swiss banks: Report

In a series of reforms, capital markets regulator SEBI is planning to expand its Offer For Sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules.

The regulator is also planning to relax its disclosure norms for housing finance companies and systemically important NBFCs regarding pledged shares of listed firms and also provide for cancellation of an Offer For Sale (OFS) in case of limited interest from non-retail shareholders on the first day itself, officials said.

These proposals, along with several others, are likely to be discussed by SEBI's board at its meeting this week.

Officials said the Securities and Exchange Board of India (SEBI) is also considering changes in its regulatory framework for debenture trustees. Besides, it plans to allow custodial services in the commodity derivatives market to enable institutional participation.

Another proposal involves enabling mutual funds to undertake 'side pocketing' of debt and money market instruments in case of a credit event while ensuring fair treatment to all unitholders.

'Side pocketing' is a mechanism to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. It prevents the distressed assets from damaging the returns generated from more liquid and better-performing assets.

As per one proposal to amend the insider trading norms, entities belonging to promoter group will need to make initial and continuous disclosure about their shareholdings and the subsequent share transactions exceeding Rs 10 lakh.

Currently, such disclosure requirements are mandatory for promoters, key management personnel and directors of a company, but there is no obligation on entities belonging to promoter groups.

Officials said that SEBI is also of the view that an earlier proposed exercise for determining a uniform bond valuation methodology to be followed by all regulated entities across the financial sector may not be pursued.

Such an exercise was suggested by a Working Group on Development of Corporate Bond market in India, chaired by H R Khan.

However, SEBI will prescribe high-level principles to be followed uniformly across all mutual funds for strengthening the existing system of valuation of corporate bonds for mutual funds. Regarding the pricing agencies, SEBI plans to evolve a supervisory and regulatory framework.

In another key proposal, SEBI plans to relax the norms for clubbing of investment limits for FPIs.

Currently, the foreign portfolio investors are treated as part of the same investor group and the investment limits of all such entities are clubbed for deriving the investment limit as applicable to a single FPI, in case of the same set of ultimate beneficial owners investing through multiple entities.

Under the proposed norm, multiple entities having common ownership, directly or indirectly, of more than 50 per cent would be treated as part of the same investor group and their investment limits would be clubbed.

Besides, the clubbing of investment limit would not be applicable in case of entities having common control, if the FPIs are appropriately regulated public retail funds. Similar exemptions would be available to FPIs that are public retail funds majority owned by well-regulated public retail funds or those having well-regulated investment managers.

Public retail funds typically include insurance companies, pension funds and mutual funds or unit trusts that are open for retail subscriptions.

Regarding the changes in the OFS framework, officials said the proposed changes have been formulated as per suggestions from the Department of Investment and Public Asset Management (DIPAM) and other stakeholders.

The OFS norms will be eased to allow this mechanism for all companies with market cap of Rs 1,000 crore and above, as against a current limit of top 200 companies.

Also, if the seller fails to get sufficient demand from non-retail investors at or above the floor price on the first day of offer, then the seller may choose to cancel the officer post bidding in full (both retail and non-retail) on the first day itself and not proceed with the offer to retail investors on the second day.

Among other proposals, SEBI is looking at changes in norms requiring the filing of a fresh offer document in case of an OFS where there is a change in the number of shares offered for sale or the estimated issue size by more than 50 per cent.

Besides, norms would be eased for allocation in the net offer in fixed price issues in the SME segment.

Also, housing finance companies and systemically important NBFCs may be exempted from disclosure of increase or decrease in shareholding due to encumbrance or release of the encumbrance of shares. A similar exemption already available to scheduled commercial banks and public financial institutions. 
&nbsp;

In a series of reforms, capital markets regulator SEBI is planning to expand its Offer For Sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules.

In a series of reforms, capital markets regulator SEBI is planning to expand its Offer For Sale framework to more companies, relax its norms for clubbing of investment limits by established foreign investors and tighten insider trading rules. The regulator is also planning to relax its disclosure norms for housing finance companies and systemically important NBFCs regarding pledged shares of listed firms and also provide for cancellation of an Offer For Sale (OFS) in case of limited interest from non-retail shareholders on the first day itself, officials said. These proposals, along with several others, are likely to be discussed by SEBI's board at its meeting this week. Officials said the Securities and Exchange Board of India (SEBI) is also considering changes in its regulatory framework for debenture trustees. Besides, it plans to allow custodial services in the commodity derivatives market to enable institutional participation. Another proposal involves enabling mutual funds to undertake 'side pocketing' of debt and money market instruments in case of a credit event while ensuring fair treatment to all unitholders. 'Side pocketing' is a mechanism to separate distressed, illiquid and hard-to-value assets from other more liquid assets in a portfolio. It prevents the distressed assets from damaging the returns generated from more liquid and better-performing assets. As per one proposal to amend the insider trading norms, entities belonging to promoter group will need to make initial and continuous disclosure about their shareholdings and the subsequent share transactions exceeding Rs 10 lakh. Currently, such disclosure requirements are mandatory for promoters, key management personnel and directors of a company, but there is no obligation on entities belonging to promoter groups. Officials said that SEBI is also of the view that an earlier proposed exercise for determining a uniform bond valuation methodology to be followed by all regulated entities across the financial sector may not be pursued. Such an exercise was suggested by a Working Group on Development of Corporate Bond market in India, chaired by H R Khan. However, SEBI will prescribe high-level principles to be followed uniformly across all mutual funds for strengthening the existing system of valuation of corporate bonds for mutual funds. Regarding the pricing agencies, SEBI plans to evolve a supervisory and regulatory framework. In another key proposal, SEBI plans to relax the norms for clubbing of investment limits for FPIs. Currently, the foreign portfolio investors are treated as part of the same investor group and the investment limits of all such entities are clubbed for deriving the investment limit as applicable to a single FPI, in case of the same set of ultimate beneficial owners investing through multiple entities. Under the proposed norm, multiple entities having common ownership, directly or indirectly, of more than 50 per cent would be treated as part of the same investor group and their investment limits would be clubbed. Besides, the clubbing of investment limit would not be applicable in case of entities having common control, if the FPIs are appropriately regulated public retail funds. Similar exemptions would be available to FPIs that are public retail funds majority owned by well-regulated public retail funds or those having well-regulated investment managers. Public retail funds typically include insurance companies, pension funds and mutual funds or unit trusts that are open for retail subscriptions. Regarding the changes in the OFS framework, officials said the proposed changes have been formulated as per suggestions from the Department of Investment and Public Asset Management (DIPAM) and other stakeholders. The OFS norms will be eased to allow this mechanism for all companies with market cap of Rs 1,000 crore and above, as against a current limit of top 200 companies. Also, if the seller fails to get sufficient demand from non-retail investors at or above the floor price on the first day of offer, then the seller may choose to cancel the officer post bidding in full (both retail and non-retail) on the first day itself and not proceed with the offer to retail investors on the second day. Among other proposals, SEBI is looking at changes in norms requiring the filing of a fresh offer document in case of an OFS where there is a change in the number of shares offered for sale or the estimated issue size by more than 50 per cent. Besides, norms would be eased for allocation in the net offer in fixed price issues in the SME segment. Also, housing finance companies and systemically important NBFCs may be exempted from disclosure of increase or decrease in shareholding due to encumbrance or release of the encumbrance of shares. A similar exemption already available to scheduled commercial banks and public financial institutions.

SEBI to expand OFS framework, relax FPI investment clubbing norms

Prime Minister Narendra Modi said Wednesday that financial inclusion has become a reality for 1.3 billion Indians as he pitched India as a favourite destination for investment at the Fintech Festival here.

<a href="http://www.wionews.com/india-news/live-pm-narendra-modi-delivers-the-keynote-address-at-fintech-festival-177192">Also read: Fintech can be used to make the world a better place, says PM Modi in Singapore</a>

Modi became the first world leader to address the festival which was launched in 2016 and is in its third edition.

"Financial inclusion has become reality for 1.3 billion Indians. We have generated more than 1.2 billion biometric identities- Aadhaar or foundation- in just a few years," Modi said at the event.

The Singapore Fintech Festival (SFF) is already the world's largest event on financial technology&nbsp;or fintech. In 2017, the event drew as many as 30,000 participants from over 100 countries.

The SFF involves a three-day conference, and exhibition of FinTech firms and capabilities, a global competition of FinTech solutions and a platform for matching entrepreneurs and investment capital.

Modi said through Aadhaar and cellphones, his government has launched Jan Dhan Yojana and opened 330 million new bank accounts in three years.

"These are 330 million sources of identity, dignity and opportunities. Less than 50 per cent of Indian had bank accounts in 2014. Now, it is nearly universal. So today, more than a billion biometric identities, more than a billion bank accounts and more than a billion cell phones give India by far the biggest public infrastructure in the world," Modi said.

"We are in an age of a historic transition brought about by technology. From desktop to cloud, from Internet to social media, from IT Services to Internet of Things, we have come a long way in short time," he said.

Prime Minister Narendra Modi said Wednesday that financial inclusion has become a reality for 1.3 billion Indians as he pitched India as a favourite destination for investment at the Fintech Festival here.

Prime Minister Narendra Modi said Wednesday that financial inclusion has become a reality for 1.3 billion Indians as he pitched India as a favourite destination for investment at the Fintech Festival here. Also read: Fintech can be used to make the world a better place, says PM Modi in Singapore Modi became the first world leader to address the festival which was launched in 2016 and is in its third edition. "Financial inclusion has become reality for 1.3 billion Indians. We have generated more than 1.2 billion biometric identities- Aadhaar or foundation- in just a few years," Modi said at the event. The Singapore Fintech Festival (SFF) is already the world's largest event on financial technology or fintech. In 2017, the event drew as many as 30,000 participants from over 100 countries. The SFF involves a three-day conference, and exhibition of FinTech firms and capabilities, a global competition of FinTech solutions and a platform for matching entrepreneurs and investment capital. Modi said through Aadhaar and cellphones, his government has launched Jan Dhan Yojana and opened 330 million new bank accounts in three years. "These are 330 million sources of identity, dignity and opportunities. Less than 50 per cent of Indian had bank accounts in 2014. Now, it is nearly universal. So today, more than a billion biometric identities, more than a billion bank accounts and more than a billion cell phones give India by far the biggest public infrastructure in the world," Modi said. "We are in an age of a historic transition brought about by technology. From desktop to cloud, from Internet to social media, from IT Services to Internet of Things, we have come a long way in short time," he said.

Financial inclusion has become a reality for 1.3 billion Indians, says PM Modi at Fintech festival in Singapore

Saudi Arabia was set to sign deals worth $50 billion on Tuesday at the opening of an investment conference despite being overshadowed by the killing of journalist Jamal Khashoggi which prompted a boycott by Western politicians, top world bankers and company executives.

Energy Minister Khalid al-Falih told a panel that the world's largest oil exporter was passing through a "crisis of a sort" but would power ahead with economic diversification plans.

"Nobody in the kingdom can justify it (Khashoggi's killing) or explain it," he said.

Speaking at the opening session, Saudi businesswoman Lubna Olayan described the killing of the dissident Saudi journalist which has sparked a global outcry and strained Riyadh's ties with the West as "alien to our culture".

"It is natural that our thoughts tend to focus on recent events surrounding the death of Jamal Khashoggi ... may he rest in peace," she said.

Hundreds of bankers and company executives joined officials at a palatial Riyadh hotel for the Future Investment Initiative. But while last year's inaugural conference drew the global business elite, this year's event has been marred by the pullout of more than two dozen high-level speakers.

Khashoggi, a critic of Saudi Arabia's crown prince, vanished after he entered its consulate in Istanbul on October 2. After first denying any involvement in his disappearance, Riyadh on Saturday said Khashoggi died during a fight in the consulate. Later, a Saudi official attributed the death to a chokehold.

Turkey's president said in parliament in Ankara on Tuesday that there was strong evidence the killing was savage and planned. He said he was not satisfied with Riyadh placing the blame on some of its intelligence agents.

Many foreign investors see a risk that the Khashoggi case, which drew global condemnation, could damage Riyadh's ties with Western governments. Saudi Arabia's stock index was down 1.7 per cent in afternoon trading on persistent investor concern.

U.S. Treasury Secretary Steven Mnuchin and senior ministers from Britain and France pulled out of the event along with chief executives or chairmen of about a dozen big financial firms such as JP Morgan Chase and HSBC, and International Monetary Fund chief Christine Lagarde.

NEW DEALS

However, Saudi Arabia is set to sign deals worth more than $50 billion on the opening day in the oil, gas, industries and infrastructure sectors with firms such as Trafigura, Total, Hyundai, Norinco, Schlumberger, Halliburton and Baker Hughes.

Oil giant Saudi Aramco said it signed 15 memoranda of understandings worth $34 billion.

Total Chief Executive Patrick Pouyanné, a panelist on Tuesday, said the French oil and gas producer would announce a retail network in the kingdom with Saudi Aramco.

Russia sent a large delegation led by Direct Investment Fund head Kirill Dmitriev, who said Saudi Arabia's economic transformation was "important for the world" and that partnerships between sovereign wealth funds was a "great opportunity".

The managing director of the kingdom's sovereign wealth fund, the main backer of the event, said the country was becoming more transparent and that the Saudi Public Investment Fund continued to develop new industries under economic reforms launched by Crown Prince Mohammed bin Salman.

Yasir al-Rumayyan said the fund has invested in 50 or 60 firms via SoftBank Group's Vision Fund and would bring most of those businesses to the kingdom. PIF has committed to invest $45 billion in Vision Fund.

Many Western banks and other companies, fearful of losing business such as fees from arranging deals for Saudi Arabia's $250 billion sovereign wealth fund, sent lower-level executives even as their top people stayed away.

Top executives of Asian firms have been hesitant to pull out, so the participation of Chinese and Japanese institutions may help Riyadh claim the three-day conference as a success.

For these reasons, the Western boycott may have little long-term impact on Saudi economic prospects.

Foreigners sold a net 4.01 billion riyals ($1.07 billion) of Saudi equities last week, by far the biggest pull-out of overseas money since the stock market opened to direct foreign investment in mid-2015.

The event is being held at the Ritz-Carlton in Riyadh, where scores of princes, businessmen and officials were detained in a crackdown on corruption soon after last year's conference ended.

Authorities said the crackdown extracted over $100 billion from suspects in financial settlements. But that figure has not been verified, and details of the alleged crimes were never made public, fuelling investors' concern about legal transparency.

Saudi Arabia was set to sign deals worth $50 billion on Tuesday at the opening of an investment conference despite being overshadowed by the killing of journalist Jamal Khashoggi which prompted a boycott by Western politicians, top world bankers and company executives.

Saudi Arabia was set to sign deals worth $50 billion on Tuesday at the opening of an investment conference despite being overshadowed by the killing of journalist Jamal Khashoggi which prompted a boycott by Western politicians, top world bankers and company executives. Energy Minister Khalid al-Falih told a panel that the world's largest oil exporter was passing through a "crisis of a sort" but would power ahead with economic diversification plans. "Nobody in the kingdom can justify it (Khashoggi's killing) or explain it," he said. Speaking at the opening session, Saudi businesswoman Lubna Olayan described the killing of the dissident Saudi journalist which has sparked a global outcry and strained Riyadh's ties with the West as "alien to our culture". "It is natural that our thoughts tend to focus on recent events surrounding the death of Jamal Khashoggi ... may he rest in peace," she said. Hundreds of bankers and company executives joined officials at a palatial Riyadh hotel for the Future Investment Initiative. But while last year's inaugural conference drew the global business elite, this year's event has been marred by the pullout of more than two dozen high-level speakers. Khashoggi, a critic of Saudi Arabia's crown prince, vanished after he entered its consulate in Istanbul on October 2. After first denying any involvement in his disappearance, Riyadh on Saturday said Khashoggi died during a fight in the consulate. Later, a Saudi official attributed the death to a chokehold. Turkey's president said in parliament in Ankara on Tuesday that there was strong evidence the killing was savage and planned. He said he was not satisfied with Riyadh placing the blame on some of its intelligence agents. Many foreign investors see a risk that the Khashoggi case, which drew global condemnation, could damage Riyadh's ties with Western governments. Saudi Arabia's stock index was down 1.7 per cent in afternoon trading on persistent investor concern. U.S. Treasury Secretary Steven Mnuchin and senior ministers from Britain and France pulled out of the event along with chief executives or chairmen of about a dozen big financial firms such as JP Morgan Chase and HSBC, and International Monetary Fund chief Christine Lagarde. NEW DEALS However, Saudi Arabia is set to sign deals worth more than $50 billion on the opening day in the oil, gas, industries and infrastructure sectors with firms such as Trafigura, Total, Hyundai, Norinco, Schlumberger, Halliburton and Baker Hughes. Oil giant Saudi Aramco said it signed 15 memoranda of understandings worth $34 billion. Total Chief Executive Patrick Pouyanné, a panelist on Tuesday, said the French oil and gas producer would announce a retail network in the kingdom with Saudi Aramco. Russia sent a large delegation led by Direct Investment Fund head Kirill Dmitriev, who said Saudi Arabia's economic transformation was "important for the world" and that partnerships between sovereign wealth funds was a "great opportunity". The managing director of the kingdom's sovereign wealth fund, the main backer of the event, said the country was becoming more transparent and that the Saudi Public Investment Fund continued to develop new industries under economic reforms launched by Crown Prince Mohammed bin Salman. Yasir al-Rumayyan said the fund has invested in 50 or 60 firms via SoftBank Group's Vision Fund and would bring most of those businesses to the kingdom. PIF has committed to invest $45 billion in Vision Fund. Many Western banks and other companies, fearful of losing business such as fees from arranging deals for Saudi Arabia's $250 billion sovereign wealth fund, sent lower-level executives even as their top people stayed away. Top executives of Asian firms have been hesitant to pull out, so the participation of Chinese and Japanese institutions may help Riyadh claim the three-day conference as a success. For these reasons, the Western boycott may have little long-term impact on Saudi economic prospects. Foreigners sold a net 4.01 billion riyals ($1.07 billion) of Saudi equities last week, by far the biggest pull-out of overseas money since the stock market opened to direct foreign investment in mid-2015. The event is being held at the Ritz-Carlton in Riyadh, where scores of princes, businessmen and officials were detained in a crackdown on corruption soon after last year's conference ended. Authorities said the crackdown extracted over $100 billion from suspects in financial settlements. But that figure has not been verified, and details of the alleged crimes were never made public, fuelling investors' concern about legal transparency.

Saudi sees deals worth $50 billion at investment conference despite boycotts

Pakistan has slashed China's investment in its railways by as much as US $2 billion citing a massive burden of loans. By doing so, Islamabad has given credence to reports that the new government led by Imran Khan may scrutinise the multi-billion dollar corridor it calls 'CPEC' or 'China-Pakistan Economic Corridor'.

Pakistan's railways minister Sheikh Rasheed Ahmad said that the share of the 'China-Pakistan Economic Corridor' in the country's railways has been reduced from US $8.2 billion to US $6.2 billion.

"Pakistan is a poor country that cannot afford huge burden of the loans," Rasheed told reporters in Lahore.

"Therefore, we have reduced the loan from China under the CPEC for rail projects from US 48.2 billion to US 46.2 billion. The CPEC is like the backbone for Pakistan, but our eyes and ears are open," he said about the corridor that passes through Pakistan-occupied Kashmir or PoK.

The announcement gives credence to reports that the new government led by Imran Khan intends to scrutinise the US US $62 billion infrastructure and power projects, which the previous Nawaz Sharif-led government had initiated under the 'CPEC'.

Pakistani newspaper Express Tribune reported that investment under 'CPEC' for Pakistan Railways was US $8.2 billion, which was to be utilised for upgrading Main Line-1 (ML-1) a colonial-era line stretching 1,872 km from Karachi to Peshawar.

The previous railways minister Saad Rafique had termed the upgrading of ML-1 as vital for railways future as it would bring as many as 171 trains on track per day against the current 32.

Rasheed, who currently heads the ministry, said that the government remains committed to the Karachi-Peshawar project but he would like to further reduce the cost to US $4.2 billion from US $6.2 billion, if possible.

Rasheed said he is the biggest supporter of the 'CPEC', but also wants minimum debt burden on railways as the nation has to pay back all the investments.

He, however, was unable to explain, which projects the management has skipped to bring down the investment.

The changes are part of Islamabad's efforts to rethink the key Belt and Road Initiative (BRI) projects in Pakistan, where Beijing has pledged about $62 billion in financing, but the new government is more cautious about the Chinese investment.

The Pakistani government has pushed for deeply concessional loans for the ML-1 project. It has also invited third countries to join or for the Chinese to be investors in the project through the build-operate-transfer model that would rely less on debt.

The US has criticised projects under Xi Jinping's 'Belt and Road Initiative', warning that Chinese loans could turn into debt traps for poor countries unable to pay them back. Beijing denies these claims, saying the loans are a win-win situation for both the countries. However, such loans have backfired for other countries, most recent of which is the Hambantota Port in Sri Lanka.

The so-called 'CPEC' is the flagship project of the multi-billion dollar Belt and Road Initiative, a pet project of Chinese President Xi Jinping, aimed at enhancing Beijing's influence around the world through China-funded infrastructure projects.

India has protested to China over the so-called 'China-Pakistan Economic Corridor', which is being built through Pakistan-occupied Kashmir, which is part of India's northernmost state Jammu and Kashmir.

Pakistan has slashed China's investment in its railways by as much as US $2 billion citing a massive burden of loans. By doing so, Islamabad has given credence to reports that the new government led by Imran Khan may scrutinise the multi-billion dollar corridor it calls 'CPEC' or 'China-Pakistan Economic Corridor'.

Pakistan has slashed China's investment in its railways by as much as US $2 billion citing a massive burden of loans. By doing so, Islamabad has given credence to reports that the new government led by Imran Khan may scrutinise the multi-billion dollar corridor it calls 'CPEC' or 'China-Pakistan Economic Corridor'. Pakistan's railways minister Sheikh Rasheed Ahmad said that the share of the 'China-Pakistan Economic Corridor' in the country's railways has been reduced from US $8.2 billion to US $6.2 billion. "Pakistan is a poor country that cannot afford huge burden of the loans," Rasheed told reporters in Lahore. "Therefore, we have reduced the loan from China under the CPEC for rail projects from US 48.2 billion to US 46.2 billion. The CPEC is like the backbone for Pakistan, but our eyes and ears are open," he said about the corridor that passes through Pakistan-occupied Kashmir or PoK. The announcement gives credence to reports that the new government led by Imran Khan intends to scrutinise the US US $62 billion infrastructure and power projects, which the previous Nawaz Sharif-led government had initiated under the 'CPEC'. Pakistani newspaper Express Tribune reported that investment under 'CPEC' for Pakistan Railways was US $8.2 billion, which was to be utilised for upgrading Main Line-1 (ML-1) a colonial-era line stretching 1,872 km from Karachi to Peshawar. The previous railways minister Saad Rafique had termed the upgrading of ML-1 as vital for railways future as it would bring as many as 171 trains on track per day against the current 32. Rasheed, who currently heads the ministry, said that the government remains committed to the Karachi-Peshawar project but he would like to further reduce the cost to US $4.2 billion from US $6.2 billion, if possible. Rasheed said he is the biggest supporter of the 'CPEC', but also wants minimum debt burden on railways as the nation has to pay back all the investments. He, however, was unable to explain, which projects the management has skipped to bring down the investment. The changes are part of Islamabad's efforts to rethink the key Belt and Road Initiative (BRI) projects in Pakistan, where Beijing has pledged about $62 billion in financing, but the new government is more cautious about the Chinese investment. The Pakistani government has pushed for deeply concessional loans for the ML-1 project. It has also invited third countries to join or for the Chinese to be investors in the project through the build-operate-transfer model that would rely less on debt. The US has criticised projects under Xi Jinping's 'Belt and Road Initiative', warning that Chinese loans could turn into debt traps for poor countries unable to pay them back. Beijing denies these claims, saying the loans are a win-win situation for both the countries. However, such loans have backfired for other countries, most recent of which is the Hambantota Port in Sri Lanka. The so-called 'CPEC' is the flagship project of the multi-billion dollar Belt and Road Initiative, a pet project of Chinese President Xi Jinping, aimed at enhancing Beijing's influence around the world through China-funded infrastructure projects. India has protested to China over the so-called 'China-Pakistan Economic Corridor', which is being built through Pakistan-occupied Kashmir, which is part of India's northernmost state Jammu and Kashmir.

Pakistan cuts Chinese investment in key railway project

King Abdullah II of Jordan has started his state visit to India today. This will be King Abdullah&#39;s second state visit to India. The visit follows the visit by PM Modi in early February as part of his West Asia tour.

While PM Modi and King Abdullah are expected to jointly address a counter-terror and deradicalisation meet, the subjects that will figure largely on the bilateral agenda includes defence, security and investments.

India&rsquo;s relationship with Jordan has always been characterised by warmth and goodwill based on mutual respect. Cordial relations with Jordan are important for us, as Amman is not only a harbinger of stability in a volatile region and also a key player in the Palestinian question, being among the few Muslim majority countries that are having diplomatic ties with Israel. Jordan plays an important role in protecting Islamic and Christian holy sites in Jerusalem, based on the Hashemite custodianship.&nbsp;

Jordan is also crucial to India&rsquo;s effort to gather regional intelligence and enhance counter-terrorism cooperation. New mechanisms for closer intelligence exchange and cooperation in de-radicalisation have been instituted. King Abdullah has invited India to be part of the Aqaba Meetings against terrorism and radicalisation, and India has actively participated in the event. During this visit, institutionalisation of defence cooperation and signing of several agreements in media cooperation, upgrading of trade and investment targets, diplomatic visa-free travel, etc. are expected to take place.

Jordan is home to more than 10,000 Indians, who are employed in textile, construction and manufacturing sectors, fertiliser companies, health sector, universities, IT, financial companies and multilateral organisation. Jordan also plays an important role in India&#39;s food security through provision of fertilisers and phosphates. It would be desirable to have a long-term agreement for the supply of Jordanian phosphate and other minerals to cater to our agricultural requirements. Since Jordan has one of the largest deposits of oil shale, it would be desirable to initiate a serious dialogue for future exploration. Jordan can easily play a significant role in our food and energy security.

India is Jordan&rsquo;s fourth largest trade partner after Iraq, Saudi Arabia and China. As of January 2016, Indians owned around 25 textile mills in the Qualified Industrial Zones (QIZs) in Jordan at a total investment of USD 300 million. Bilateral trade has been valued at USD 1.3 billion. Indian investors have taken advantage of Jordan&#39;s free trade agreements with the US and are trying to make it a hub of textile exports. India has also extended a USD 100 million line of credit to promote trade and investment with Jordan. Possibilities for joint ventures in the fields of leather, automobile, IT, pharmaceuticals, renewable energy(Solar) and construction sectors can be explored further. The newly constituted Investment Commission is actively pursuing to attract investors from all across the world, including Indian investments in Jordan especially in ICT, Finance/Banking Services, Renewable energy (Solar) and Bio-medical services sectors.&nbsp;

The bilateral relationship between India and Jordan in the 21st century heralds a new era in cooperation. 
&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

It would be desirable to initiate a serious dialogue with Jordon as Jordan can play a significant role in our food and energy security. moreover, oil exploration will be easier since Jordon has large deposits of oil shale.

King Abdullah II of Jordan has started his state visit to India today. This will be King Abdullah's second state visit to India. The visit follows the visit by PM Modi in early February as part of his West Asia tour. While PM Modi and King Abdullah are expected to jointly address a counter-terror and deradicalisation meet, the subjects that will figure largely on the bilateral agenda includes defence, security and investments. India’s relationship with Jordan has always been characterised by warmth and goodwill based on mutual respect. Cordial relations with Jordan are important for us, as Amman is not only a harbinger of stability in a volatile region and also a key player in the Palestinian question, being among the few Muslim majority countries that are having diplomatic ties with Israel. Jordan plays an important role in protecting Islamic and Christian holy sites in Jerusalem, based on the Hashemite custodianship. Jordan is also crucial to India’s effort to gather regional intelligence and enhance counter-terrorism cooperation. New mechanisms for closer intelligence exchange and cooperation in de-radicalisation have been instituted. King Abdullah has invited India to be part of the Aqaba Meetings against terrorism and radicalisation, and India has actively participated in the event. During this visit, institutionalisation of defence cooperation and signing of several agreements in media cooperation, upgrading of trade and investment targets, diplomatic visa-free travel, etc. are expected to take place. Jordan is home to more than 10,000 Indians, who are employed in textile, construction and manufacturing sectors, fertiliser companies, health sector, universities, IT, financial companies and multilateral organisation. Jordan also plays an important role in India's food security through provision of fertilisers and phosphates. It would be desirable to have a long-term agreement for the supply of Jordanian phosphate and other minerals to cater to our agricultural requirements. Since Jordan has one of the largest deposits of oil shale, it would be desirable to initiate a serious dialogue for future exploration. Jordan can easily play a significant role in our food and energy security. India is Jordan’s fourth largest trade partner after Iraq, Saudi Arabia and China. As of January 2016, Indians owned around 25 textile mills in the Qualified Industrial Zones (QIZs) in Jordan at a total investment of USD 300 million. Bilateral trade has been valued at USD 1.3 billion. Indian investors have taken advantage of Jordan's free trade agreements with the US and are trying to make it a hub of textile exports. India has also extended a USD 100 million line of credit to promote trade and investment with Jordan. Possibilities for joint ventures in the fields of leather, automobile, IT, pharmaceuticals, renewable energy(Solar) and construction sectors can be explored further. The newly constituted Investment Commission is actively pursuing to attract investors from all across the world, including Indian investments in Jordan especially in ICT, Finance/Banking Services, Renewable energy (Solar) and Bio-medical services sectors. The bilateral relationship between India and Jordan in the 21st century heralds a new era in cooperation. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Opinion: King Abdullah's visit will benefit both India and Jordan

Prime Minister Narendra Modi on Tuesday cautioned the world against growing protectionism and rise in tariff and non-tariff barriers that are impeding global trade, while pitching for India as a global destination for investment.

The prime minister, however, said that climate change, terrorism and self centrism are the biggest challenges faced by the world.&nbsp;

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Terrorism is a big threat but an even bigger threat is when you give definitions like good terrorism and bad terrorism: PM Modi at <a href="https://twitter.com/hashtag/WorldEconomicForum?src=hash&amp;ref_src=twsrc%5Etfw">#WorldEconomicForum</a> in <a href="https://twitter.com/hashtag/Davos?src=hash&amp;ref_src=twsrc%5Etfw">#Davos</a> <a href="https://t.co/xvDRiN3JN3">pic.twitter.com/xvDRiN3JN3</a>
&mdash; ANI (@ANI) <a href="https://twitter.com/ANI/status/955755669017133056?ref_src=twsrc%5Etfw">January 23, 2018</a></blockquote>
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While addressing the plenary session of the World Economic Forum, PM Modi said there was a need for reform of the international institutions for economic and political security in keeping with the ground realities.

Modi emphasised on the reforms, including GST and demonetisation, &nbsp;brought by his government in the last three years saying his government had replaced red tape with red carpet.&nbsp;

&quot;Today investing in India, travel to India, work in India, manufacture in India, production and exports from India to the rest of the world is easier than before as we have decided to eliminate the `licence-permit raj` and finish the red tape.&quot;&nbsp;

The Prime Minister that said in the last three and a half years, his government has abolished 1,400 outdated laws.

He said the decision has now made foreign direct investment in the country possible in more than 90 per cent of the sectors through the automatic route.&nbsp;

Modi is the first Prime Minister from India to participate in a forum meeting in two decades after H.D. Deve Gowda in 1997.

This is Modi`s second visit to Switzerland in nearly two years. He will interact with 120 members of the International Business Council, which is a part of the WEF.

Modi, in the course of his 24-hour visit to Davos, is also scheduled to hold a meeting with Sweden Prime Minister Stefan Lofven.

PM Modi pitched for India as a global destination for investment.

Prime Minister Narendra Modi on Tuesday cautioned the world against growing protectionism and rise in tariff and non-tariff barriers that are impeding global trade, while pitching for India as a global destination for investment. The prime minister, however, said that climate change, terrorism and self centrism are the biggest challenges faced by the world. Terrorism is a big threat but an even bigger threat is when you give definitions like good terrorism and bad terrorism: PM Modi at #WorldEconomicForum in #Davos pic.twitter.com/xvDRiN3JN3 — ANI (@ANI) January 23, 2018 × While addressing the plenary session of the World Economic Forum, PM Modi said there was a need for reform of the international institutions for economic and political security in keeping with the ground realities. Modi emphasised on the reforms, including GST and demonetisation, brought by his government in the last three years saying his government had replaced red tape with red carpet. "Today investing in India, travel to India, work in India, manufacture in India, production and exports from India to the rest of the world is easier than before as we have decided to eliminate the `licence-permit raj` and finish the red tape." The Prime Minister that said in the last three and a half years, his government has abolished 1,400 outdated laws. He said the decision has now made foreign direct investment in the country possible in more than 90 per cent of the sectors through the automatic route. Modi is the first Prime Minister from India to participate in a forum meeting in two decades after H.D. Deve Gowda in 1997. This is Modi`s second visit to Switzerland in nearly two years. He will interact with 120 members of the International Business Council, which is a part of the WEF. Modi, in the course of his 24-hour visit to Davos, is also scheduled to hold a meeting with Sweden Prime Minister Stefan Lofven.

Rise in tariff, non-tariff barriers impeding global trade: PM Modi

Is there someone who still have not heard about Bitcoin? Or is there someone whose heartbeat hasn&rsquo;t skipped when they heard about the jump in prices of the Bitcoin?

I was reading an article about Mr Kristoffer Koch who invested around $27 in 2009 to buy 5000 bitcoins and in 2017 those bitcoins would be worth $86899725, that&rsquo;s a return of around of more than 4,000,000 per cent in less than 8 years.

If you search back in history, you won&rsquo;t find lot many investments which would have given such yields in such a short span of time. Courtesy his $27 investment,&nbsp;Mr Krishoffer now doesn&rsquo;t need to work ever, and he says that he invested while he was writing a paper on the topic without putting too much thought into it.

So, how many of you are planning to invest? In this article, I want to talk about why I believe Bitcoin is interesting and it&rsquo;s going to stay and, yet, I would stay away from investing in it.

What is Bitcoin: Bitcoin is a cryptocurrency invented in year 2008/2009 by a guy named Satoshi Nakamoto (no one has met him till date). The whole infrastructure of Bitcoin is based on the algorithm, miners, exchanges and the wallets.

So, in short &ndash; Bitcoin is just another currency system but it is not like any other system working currently. I will be talking in detail about cryptocurrency, the role each of these players plays and how to really understand cryptocurrency in the coming weeks.

&nbsp;

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Benefits of Bitcoin. (Others)
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Problem with our current payment system:

Our current payment system is based on Fiat Currency, i.e. it is based on a system where we trust some central authority and because it says so, we accept that the value of money.&nbsp;

Now, while Fiat Currency is just 100 years old, the world is changing rapidly and somehow our Fiat Currency is not able to keep pace with the current requirements and Bitcoin is able to exploit these shortcomings.

For example, over the years, more and more transactions have started happening digital and because these deals are happening virtually, we need a 3rd party to authenticate it. However, with more and more transactions happening over the internet, the banks become the main authority to authenticate these transactions through maintaining a track or ledger.

Moreover, every time you transact, you are passing your information to the bank which it can use to formulate a complete map of your financial health and a lot of people don&rsquo;t want the bank to have all their financial information.

Secondly, Fiat Currency gave enormous power to the governments to print the money at their will which leads to another problem of hyperinflation.

In fact, in the short of history of 100 years, there have been 55 instances of hyperinflation. The most recent example is in 2008 when it was losing half its value in 25 hours. One of the worst was the hyperinflation in Zimbabwe where the value of currency went below a toilet paper itself.

Nationalistic in nature: If you are travelling from one country to another, you need to purchase the currency of the country you are visiting. According to 2015 figures, 6 trillion dollars of ForEx transactions happens every year. If we put a fees of half a percent over 15 per cent&nbsp;(varies based on banks and corporations), then a lot of money just goes only for&nbsp;transacting your money. Moreover, because of transaction charges, it gets very cumbersome to transact small amount of money.

So, if you see there are three main issues with the current set of payment systems:

<ul>
	<li>Hyperinflation</li>
	<li>Nationalistic in nature while the society is becoming globalised.</li>
	<li>Loss of identity in every transaction.</li>
</ul>

Moreover, if you look closely you will understand that all three are serious issues and we do require some better currency and &lsquo;Bitcoin&rsquo; came at the right time to solve all these issues.

Bitcoin is a global currency, thus, you can transact from any country to another country without any currency conversion. It is limited in number, therefore, while its price will increase, there won&rsquo;t ever be hyperinflation as no one can print it infinitely.&nbsp;

Lastly, Satoshi has built a powerful infrastructure at the backend and an incentive mechanism for the miners, due to which, we don&rsquo;t need any 3rd party to keep a record of our transactions.

Isn&rsquo;t Bitcoin just great? If I am so much optimistic about Bitcoin, then why I won&rsquo;t invest?

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Examining Bitcoin for Ponzi scheme signs. (Others)
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Few of the reasons for not investing:

Too much optimistic: Whenever I invest in a company&rsquo;s stock, I always ask myself &lsquo;how much price is due to optimistic nature of people&rsquo;. While people have already compared it to next big development after the Internet, I believe they have valued it way too higher. I say so because the inherent benefits of Bitcoin are also the biggest concerns, which stops it from becoming a mainstream currency.

For example: If no one has the information of the transactions i.e. where the money is moving then it creates a lot of issues. For example, A big usage of Bitcoin currently happens on the Deep Web where people do want to hide their credentials.

Moreover, governments do like to have some control over the finances of the people to stop them from doing something illegal i.e. funding child pornography or terrorism.

Multiple cryptocurrencies: While there are still a lot of questions to be answered, one of the big questions is whether we will all work on a single cryptocurrency or multiple cryptocurrencies and if we decide to work with single cryptocurrency, then which one to choose and who is going to decide that currency. Will it be some Central Government? And if we leave it to the public, then every time a price of a cryptocurrency goes beyond the roof, we will jump to the other one with less value and which will eventually again pop up the problem of conversion of cryptocurrencies.

4,000,000 per cent :&nbsp;People are still saying that Bitcoin can go higher because of its limited number. There is only 21 million bitcoin that can be mined, however, it is more becoming more like Ponzi schemes.

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<div class="media-description">
Bitcoin market price fluctuations (Others)
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In a similar fashion to a Ponzi Scheme, the people who invested in the initial days would surely benefit as the value has risen through time. The people at the bottom (or who will enter last) will get hurt the most as they will buy at a premium and the value will drop drastically when it comes to its real value.

Therefore, my suggestion would be it&rsquo;s good to be informed about Bitcoin and cryptocurrency as they are making the noise for the right reason, however, it&rsquo;s also important to understand the true value of any product and not to invest just because everyone else is talking about it or investing into it.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL).

Investors need to understand the true value of any product and not to invest just because everyone else is talking/investing in it

Is there someone who still have not heard about Bitcoin? Or is there someone whose heartbeat hasn’t skipped when they heard about the jump in prices of the Bitcoin? I was reading an article about Mr Kristoffer Koch who invested around $27 in 2009 to buy 5000 bitcoins and in 2017 those bitcoins would be worth $86899725, that’s a return of around of more than 4,000,000 per cent in less than 8 years. If you search back in history, you won’t find lot many investments which would have given such yields in such a short span of time. Courtesy his $27 investment, Mr Krishoffer now doesn’t need to work ever, and he says that he invested while he was writing a paper on the topic without putting too much thought into it. So, how many of you are planning to invest? In this article, I want to talk about why I believe Bitcoin is interesting and it’s going to stay and, yet, I would stay away from investing in it. What is Bitcoin: Bitcoin is a cryptocurrency invented in year 2008/2009 by a guy named Satoshi Nakamoto (no one has met him till date). The whole infrastructure of Bitcoin is based on the algorithm, miners, exchanges and the wallets. So, in short – Bitcoin is just another currency system but it is not like any other system working currently. I will be talking in detail about cryptocurrency, the role each of these players plays and how to really understand cryptocurrency in the coming weeks. Benefits of Bitcoin. (Others) × Problem with our current payment system: Our current payment system is based on Fiat Currency, i.e. it is based on a system where we trust some central authority and because it says so, we accept that the value of money. Now, while Fiat Currency is just 100 years old, the world is changing rapidly and somehow our Fiat Currency is not able to keep pace with the current requirements and Bitcoin is able to exploit these shortcomings. For example, over the years, more and more transactions have started happening digital and because these deals are happening virtually, we need a 3rd party to authenticate it. However, with more and more transactions happening over the internet, the banks become the main authority to authenticate these transactions through maintaining a track or ledger. Moreover, every time you transact, you are passing your information to the bank which it can use to formulate a complete map of your financial health and a lot of people don’t want the bank to have all their financial information. Secondly, Fiat Currency gave enormous power to the governments to print the money at their will which leads to another problem of hyperinflation. In fact, in the short of history of 100 years, there have been 55 instances of hyperinflation. The most recent example is in 2008 when it was losing half its value in 25 hours. One of the worst was the hyperinflation in Zimbabwe where the value of currency went below a toilet paper itself. Nationalistic in nature: If you are travelling from one country to another, you need to purchase the currency of the country you are visiting. According to 2015 figures, 6 trillion dollars of ForEx transactions happens every year. If we put a fees of half a percent over 15 per cent (varies based on banks and corporations), then a lot of money just goes only for transacting your money. Moreover, because of transaction charges, it gets very cumbersome to transact small amount of money. So, if you see there are three main issues with the current set of payment systems: Hyperinflation Nationalistic in nature while the society is becoming globalised. Loss of identity in every transaction. Moreover, if you look closely you will understand that all three are serious issues and we do require some better currency and ‘Bitcoin’ came at the right time to solve all these issues. Bitcoin is a global currency, thus, you can transact from any country to another country without any currency conversion. It is limited in number, therefore, while its price will increase, there won’t ever be hyperinflation as no one can print it infinitely. Lastly, Satoshi has built a powerful infrastructure at the backend and an incentive mechanism for the miners, due to which, we don’t need any 3rd party to keep a record of our transactions. Isn’t Bitcoin just great? If I am so much optimistic about Bitcoin, then why I won’t invest? Examining Bitcoin for Ponzi scheme signs. (Others) × Few of the reasons for not investing: Too much optimistic: Whenever I invest in a company’s stock, I always ask myself ‘how much price is due to optimistic nature of people’. While people have already compared it to next big development after the Internet, I believe they have valued it way too higher. I say so because the inherent benefits of Bitcoin are also the biggest concerns, which stops it from becoming a mainstream currency. For example: If no one has the information of the transactions i.e. where the money is moving then it creates a lot of issues. For example, A big usage of Bitcoin currently happens on the Deep Web where people do want to hide their credentials. Moreover, governments do like to have some control over the finances of the people to stop them from doing something illegal i.e. funding child pornography or terrorism. Multiple cryptocurrencies: While there are still a lot of questions to be answered, one of the big questions is whether we will all work on a single cryptocurrency or multiple cryptocurrencies and if we decide to work with single cryptocurrency, then which one to choose and who is going to decide that currency. Will it be some Central Government? And if we leave it to the public, then every time a price of a cryptocurrency goes beyond the roof, we will jump to the other one with less value and which will eventually again pop up the problem of conversion of cryptocurrencies. 4,000,000 per cent : People are still saying that Bitcoin can go higher because of its limited number. There is only 21 million bitcoin that can be mined, however, it is more becoming more like Ponzi schemes. Bitcoin market price fluctuations (Others) × In a similar fashion to a Ponzi Scheme, the people who invested in the initial days would surely benefit as the value has risen through time. The people at the bottom (or who will enter last) will get hurt the most as they will buy at a premium and the value will drop drastically when it comes to its real value. Therefore, my suggestion would be it’s good to be informed about Bitcoin and cryptocurrency as they are making the noise for the right reason, however, it’s also important to understand the true value of any product and not to invest just because everyone else is talking about it or investing into it. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL).

Opinion: Bitcoin is interesting but not worth investing

Authors: Co-Pierre Georg and Qobolwakhe Dube*

With the price of a bitcoin reaching record highs of more than $10,000, more and more ordinary people consider investing in the cryptocurrency. The recent price surge, however, comes with tremendous risks. Investors should be prepared for the possibility that they could lose their entire investment.

Bitcoin was launched in 2008 by an anonymous author under the name of Satoshi Nakamoto as a means of transacting among participants without the need for intermediaries. Since the beginning of this year, the price of bitcoin has increased by 1300 per cent as more and more consumers flock to it hoping to profit off its increasing popularity and the associated increase in value.

Cryptocurrencies are not currencies at all. As the Financial Times explains, bitcoin is a string of computer codes which means that new bitcoins can be created &ndash; up to an agreed limit &ndash; by computers that gain the right to do so by solving complex puzzles. Transactions are recorded in a database called a blockchain.

Bitcoin, like other assets like gold, doesn&rsquo;t yield income. You have to sell it to realise any value. And, like gold and other currencies, it can be transferred peer-to-peer.

Part of the nervousness about bitcoin is that, along with other cryptocurrencies, it challenges the traditional role of banks and central banks. In the classical world, banks act as intermediaries by providing loans out of the deposits they took and from funding from the central bank. The central bank uses the rate at which it provides this funding as a lever to ensure price stability. The introduction of cryptocurrencies threatens this model because banks are no longer necessary to intermediate funds and there is no central bank to ensure that prices are stable.

The more immediate fears about bitcoin center on the recent dramatic rise in its value. There&rsquo;s nervousness in the market that a flash crash might be imminent after the cryptocurrency tumble by more than $1,300 in minutes on the bitcoin exchange Bitfinex. It did recover to levels above $10,800.

The flash crash echoes long-standing warnings that the bitcoin party is set to end in tears. Most recently Jamie Dimon, CEO of JPMorgan, one of the world&rsquo;s largest investment banks declared that he would fire any employee trading bitcoin for being stupid.

In a highly unusual alliance, his words were echoed by economics Nobel Laureate Joseph Stiglitz, who has gone even further arguing that bitcoin ought to be outlawed.

All of these are clear warning signs that the professionals do not trust the lofty promises of crypto enthusiasts.

The blockchain factor

There is no doubt that Bitcoin &ndash; and in particular blockchain, the technology behind it &ndash; has the potential to revolutionise the financial services industry.

A blockchain functions as a transparent and incorruptible digital ledger of economic transactions, recorded in chronological order, that operates on a peer-to-peer network.

Fundamentally, the technology allows an exchange of value to occur in an environment of peers with conflicting interests without the need for trusted intermediaries. That, in effect, wipes out the need for banks or financial services companies which fulfil this role.

The use of the technology is not limited to financial transactions. Virtually anything of value can be traded on a blockchain.

But no matter how useful the underlying blockchain technology is, or how widely it can be applied, there are real and substantial risks involved in bitcoin.

Volatility versus returns

The first and most significant risk is that compared to any currency, share, or gold, bitcoin is extremely volatile. The volatility of bitcoin to US dollar is almost six times the volatility of the Rand to US dollar. While this is great in good times, it is potentially devastating for investors in bad times.

When professional investors decide on which assets to hold, they look at both the return and the volatility of the asset. Only investors with a healthy appetite for risk are willing to invest in risky, volatile assets. Usually these are finance professionals, for example in large investment banks or hedge funds.

Investors with a lower risk appetite, such as asset managers or pension funds, prefer assets with a somewhat lower return, but which are less volatile.

The rule of thumb is that the sophistication of an investor increases with the volatility of the asset she invests in. But with bitcoin, this rule of thumb doesn&rsquo;t hold true. More and more private investors have been flocking to bitcoin &lsquo;exchanges&rsquo; that have sprung up all over the internet and that are aggressively advertised on social media.

Overvalued

There is a huge risk that bitcoin is already overvalued.

The practical use cases for bitcoin are limited. It doesn&rsquo;t enable enough transactions to take place per second to be used as a replacement for a modern payment system. And it doesn&rsquo;t offer any functionality other than pseudonymous transactions &ndash; transactions where the true identity of the counterparties is hidden.

Bitcoin is favoured by pyramid schemes, including the infamous MMM pyramid scheme in Nigeria. In a recent article, the Financial Times called bitcoin itself a pyramid scheme, much to the dismay of crypto enthusiasts. (A pyramid scheme is usually an illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants. If no new people come in, it collapses.)

Regulatory risk

The third, and possibly biggest risk is regulatory. In September 2017, the Chinese government outlawed bitcoin exchanges in mainland China, sending the price of bitcoin tumbling.

Despite the claim that bitcoin is a &ldquo;global currency&rdquo;, the reality is that 58 per cent of all bitcoin mining happens in China. If at any point the Chinese government should decide to make Bitcoin mining illegal the price is likely to plunge into oblivion.

Other countries have also voiced concern. The Russian Central Bank recently issued a warning to investors on the risks of investing in cryptocurrencies, citing concerns about a bubble. This suggests that there might be a concerted crackdown.

Cryptocurrencies are banned in India as their use is a violation of foreign exchange rules. The Australian Reserve Bank has taken a different approach. It monitors the cryptocurrency market in a bid understands the underlying technology.

The South African Reserve Bank has expressed its openness to blockchain technologies. But it has also highlighted potential risks to consumers.

A classic bubble

There are real risks that many consumers investing in cryptocurrency don&rsquo;t fully understand. Advertisements promise that bitcoin can make you rich fast. And social media is alive with stories about friends of neighbours or distant cousins who have made a lot of money through bitcoin.

Without a doubt, these cases are real, and those who invested early can reap large benefits. But this is true in every bubble &ndash; from the dotcom bubble to the tulip mania. It&rsquo;s also true in every pyramid scheme.

As always, investors should be extremely wary with any scheme that promises quick returns.

This article was originally published on <a href="http://theconversation.com" rel="nofollow">The Conversation</a>. Read the <a href="https://theconversation.com/bitcoin-is-a-highly-speculative-investment-why-caution-is-required-88440" rel="nofollow">original article</a>.

Qobolwakhe Dube: A PhD student at the African Institute of Financial Markets and Risk Management at University of Cape Town.

(Disclaimer: The author writes here in a personal capacity).

The astronomic rise of the price of bitcoin over the past 12 months raises fears that the cryptocurrency is set to crash which could see many people lose money

Authors: Co-Pierre Georg and Qobolwakhe Dube* With the price of a bitcoin reaching record highs of more than $10,000, more and more ordinary people consider investing in the cryptocurrency. The recent price surge, however, comes with tremendous risks. Investors should be prepared for the possibility that they could lose their entire investment. Bitcoin was launched in 2008 by an anonymous author under the name of Satoshi Nakamoto as a means of transacting among participants without the need for intermediaries. Since the beginning of this year, the price of bitcoin has increased by 1300 per cent as more and more consumers flock to it hoping to profit off its increasing popularity and the associated increase in value. Cryptocurrencies are not currencies at all. As the Financial Times explains, bitcoin is a string of computer codes which means that new bitcoins can be created – up to an agreed limit – by computers that gain the right to do so by solving complex puzzles. Transactions are recorded in a database called a blockchain. Bitcoin, like other assets like gold, doesn’t yield income. You have to sell it to realise any value. And, like gold and other currencies, it can be transferred peer-to-peer. Part of the nervousness about bitcoin is that, along with other cryptocurrencies, it challenges the traditional role of banks and central banks. In the classical world, banks act as intermediaries by providing loans out of the deposits they took and from funding from the central bank. The central bank uses the rate at which it provides this funding as a lever to ensure price stability. The introduction of cryptocurrencies threatens this model because banks are no longer necessary to intermediate funds and there is no central bank to ensure that prices are stable. The more immediate fears about bitcoin center on the recent dramatic rise in its value. There’s nervousness in the market that a flash crash might be imminent after the cryptocurrency tumble by more than $1,300 in minutes on the bitcoin exchange Bitfinex. It did recover to levels above $10,800. The flash crash echoes long-standing warnings that the bitcoin party is set to end in tears. Most recently Jamie Dimon, CEO of JPMorgan, one of the world’s largest investment banks declared that he would fire any employee trading bitcoin for being stupid. In a highly unusual alliance, his words were echoed by economics Nobel Laureate Joseph Stiglitz, who has gone even further arguing that bitcoin ought to be outlawed. All of these are clear warning signs that the professionals do not trust the lofty promises of crypto enthusiasts. The blockchain factor There is no doubt that Bitcoin – and in particular blockchain, the technology behind it – has the potential to revolutionise the financial services industry. A blockchain functions as a transparent and incorruptible digital ledger of economic transactions, recorded in chronological order, that operates on a peer-to-peer network. Fundamentally, the technology allows an exchange of value to occur in an environment of peers with conflicting interests without the need for trusted intermediaries. That, in effect, wipes out the need for banks or financial services companies which fulfil this role. The use of the technology is not limited to financial transactions. Virtually anything of value can be traded on a blockchain. But no matter how useful the underlying blockchain technology is, or how widely it can be applied, there are real and substantial risks involved in bitcoin. Volatility versus returns The first and most significant risk is that compared to any currency, share, or gold, bitcoin is extremely volatile. The volatility of bitcoin to US dollar is almost six times the volatility of the Rand to US dollar. While this is great in good times, it is potentially devastating for investors in bad times. When professional investors decide on which assets to hold, they look at both the return and the volatility of the asset. Only investors with a healthy appetite for risk are willing to invest in risky, volatile assets. Usually these are finance professionals, for example in large investment banks or hedge funds. Investors with a lower risk appetite, such as asset managers or pension funds, prefer assets with a somewhat lower return, but which are less volatile. The rule of thumb is that the sophistication of an investor increases with the volatility of the asset she invests in. But with bitcoin, this rule of thumb doesn’t hold true. More and more private investors have been flocking to bitcoin ‘exchanges’ that have sprung up all over the internet and that are aggressively advertised on social media. Overvalued There is a huge risk that bitcoin is already overvalued. The practical use cases for bitcoin are limited. It doesn’t enable enough transactions to take place per second to be used as a replacement for a modern payment system. And it doesn’t offer any functionality other than pseudonymous transactions – transactions where the true identity of the counterparties is hidden. Bitcoin is favoured by pyramid schemes, including the infamous MMM pyramid scheme in Nigeria. In a recent article, the Financial Times called bitcoin itself a pyramid scheme, much to the dismay of crypto enthusiasts. (A pyramid scheme is usually an illegal operation in which participants pay to join and profit mainly from payments made by subsequent participants. If no new people come in, it collapses.) Regulatory risk The third, and possibly biggest risk is regulatory. In September 2017, the Chinese government outlawed bitcoin exchanges in mainland China, sending the price of bitcoin tumbling. Despite the claim that bitcoin is a “global currency”, the reality is that 58 per cent of all bitcoin mining happens in China. If at any point the Chinese government should decide to make Bitcoin mining illegal the price is likely to plunge into oblivion. Other countries have also voiced concern. The Russian Central Bank recently issued a warning to investors on the risks of investing in cryptocurrencies, citing concerns about a bubble. This suggests that there might be a concerted crackdown. Cryptocurrencies are banned in India as their use is a violation of foreign exchange rules. The Australian Reserve Bank has taken a different approach. It monitors the cryptocurrency market in a bid understands the underlying technology. The South African Reserve Bank has expressed its openness to blockchain technologies. But it has also highlighted potential risks to consumers. A classic bubble There are real risks that many consumers investing in cryptocurrency don’t fully understand. Advertisements promise that bitcoin can make you rich fast. And social media is alive with stories about friends of neighbours or distant cousins who have made a lot of money through bitcoin. Without a doubt, these cases are real, and those who invested early can reap large benefits. But this is true in every bubble – from the dotcom bubble to the tulip mania. It’s also true in every pyramid scheme. As always, investors should be extremely wary with any scheme that promises quick returns. This article was originally published on The Conversation. Read the original article. Qobolwakhe Dube: A PhD student at the African Institute of Financial Markets and Risk Management at University of Cape Town. (Disclaimer: The author writes here in a personal capacity).

Opinion: Bitcoin is a highly speculative investment. Why caution is required

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