Yes Bank reports quarterly loss for the first time in 14 years. US GDP rises 3.2% in Q1, strongest rate of first-quarter growth in four years. India may extend deadline for imposing retaliatory tariff on 29 US items. RBI to issue new Rs 20 denomination notes. Elon Musk and SEC reach agreement on use of Twitter. Naspers exits MakeMyTrip, as Ctrip raises stake to 49%.
Moving on to the top Business stories of the day.
Yes Bank reports quarterly loss for the first time in 14 years. Air India's software shuts down for more than 5 hrs, 155 flights delayed. Ajay Piramal deliberates exiting Shriram.
A Huge Loss: Yes Bank reported its biggest quarterly loss in 14 years at INR1,507cr for the quarter ended March 31, on back of spike in provisions against bad loans, primarily to IL&FS Group and Jet Airways.
Provisions jumped to INR3,6612cr in Q4 vs INR400cr last year.
Previously: The bank had posted a net profit of INR1,179.44cr in Q4 FY18.
We Regret the Inconvenience Caused: 155 Air India flights were delayed due to the shutdown of its check-in software for more than five hours due to a technical snag.
Breaking Ties: Ajay Piramal, Chairman of both Shriram Capital and the Piramal Group, is evaluating options to exit Piramal Enterprises' seven-year-old strategic investments in the Shriram Group.
The Plan: The exit is likely to follow a restructuring of Shriram Group with consolidation of the lending business. Shriram Group is evaluating the merger of the unlisted holding company of the Shriram Group, Shriram Capital with the listed Shriram Transport Finance Company and Shriram City Union Finance, to create value for its investors. The merger is likely to enable exit of its investors like TPG and Piramal.
A deep dive into the matter here.
We are looking to create maximum value for the shareholders of both Piramal as well as Shriram groups, says Ajay Piramal. Read an interview with the Chairman here.
India may extend deadline for imposing retaliatory tariff on 29 US items. RBI to issue new Rs 20 denomination notes.
Delayed: India is likely to extend the deadline for imposing retaliatory customs duties on 29 US products, including almond, walnut and pulses, by another 14 days.
Backstory: This development becomes relevant as US recently announced that it may withdraw export incentives provided by them to India under the Generalised System of Preferences (GSP) programme. The withdrawal is expected to come into force from May 2.
India's exports to the US in 2017-18 stood at $47.9bn, while the total imports were worth $26.7bn.
Minting Cash: The RBI has announced that it will shortly issue Rs 20 denomination notes, in the Mahatma Gandhi (New) series, bearing the signature of the Central Bank's governor Shaktikanta Das.
The new note will be greenish-yellow in colour with a motif of Ellora Caves on the reverse.
Naspers exits MakeMyTrip, as Ctrip raises stake to 49%. Renault may propose merger with Nissan.
When the Giants Meet: Ctrip.com, China's largest online travel company, has increased its stake in MakeMyTrip (MMT) to 49% through a share swap deal that will see the exit of Naspers from the firm.
The deal will see Ctrip.com’s stake in MMT increase to around 49%, along with 4% of total voting rights, while Naspers will end up owning 5.6% of the Chinese company’s shares.
FYI: MMT’s market capitalization is around $2.69bn, whereas that of Ctrip is at $23.5bn.
Ctrip and Naspers invested $330m in MMT around two years ago, after its portfolio company, Ibibo Group, merged with MMT in January 2017.
The Proposal: As per reports, Renault is likely to propose to Nissan a plan to create a joint holding company, which would be evenly split between Nissan shareholders and Renault shareholders with roughly an equal number of directors from each side.
The proposal, if it goes through, would effectively dilute the stake held by the French government in Renault to around 7-8%, from its current 15%. The new company would be headquartered in a third country, such as Singapore.
Elon Musk and SEC reach agreement on use of Twitter.
Reaching a Truce: Tesla CEO Elon Musk and the US Securities and Exchange Commission (SEC) have reached an agreement that will give Musk freedom to use Twitter, however with certain limitations.
As per the agreement, Musk is free to tweet except when it’s about certain events or financial milestones.
Forbidden Topics: Some instances wherein Musk must seek pre-approval are if his tweets include:
Read the full list of the forbidden topics here.
The news comes following the ongoing tussle between Musk and the SEC regarding his previous tweets on taking Tesla private and in August last year and another one in February 2019 which stated that Tesla would produce “around” 500,000 cars this year, only to clarify hours later that he meant that the company would be producing at an annualized rate of 500,000 vehicles by year end.
Bonus: With a multitude of streaming services launching in 2019 from the likes of Disney and Apple, along with extant options from Netflix, Amazon, Hulu and others, what used to be a simple affair of channel surfing has become the stuff of complex introspection (and math). Here’s a guide to the best, most affordable strategies.
US GDP rises 3.2% in Q1, strongest rate of first-quarter growth in four years.
Bouncing Back?: The US economy grew at 3.2% rate in Q1 - the strongest rate of first-quarter growth in four years.
The expansion was driven by rising exports, falling imports and higher inventory investment which helped offset weaker gains in consumer spending and business investment.
The robust numbers are likely to be suggestive of the US economy recovering from a gloomy start to the year, due to challenges which included a partial US government shutdown, market turmoil in late 2018 and slowing global growth.
All's Not Well: Yet that’s not to say it’s an entirely rosy picture. Read this article to know why.
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