BSE Sensex and Nifty Gain Ahead of FM's Meeting, Coffee Day Share Price Plunges 5%, Uber Reports Largest Quarterly Loss Ever

BSE Sensex and Nifty gain ahead of FM's meeting today. Finance Minister set to meet FPIs, NBFCs, mutual funds today as government prepares to combat economic slowdown. Coffee Day share price plunges 5% as company appoints EY for audit. Uber share price plummets 11% as it reports its largest quarterly loss and slowest growth ever. Facebook is in talks with news publishers to launch a “News” tab on its platform. Huawei launches its own version of Android.
 

Moving on to the top Business news of the day.

 

 
 MARKETS 
 
Chinese markets plummet as trade tensions send tech stocks plunging. BSE Sensex and Nifty gain.
 
 
China Down: Chinese markets on Friday witnessed a downward slump as tech stocks declined on back of the escalating US-China trade war. 
 
 
China's Shanghai Composite Index (SHCOMP) dropped 0.7%, while Hong Kong's Hang Seng Index (HSI) fell 0.7%.
 
 
The Losers: Amongst the tech stocks, ZTE fell c. 8%. The steep losses came after the United States moved ahead with a ban that restricts federal purchases from five Chinese tech companies, including Huawei and ZTE, in an escalating confrontation between the two countries.
 
 
India Up: Sensex soared 480 points intra-day to 37,807.5 before closing at 37,581.91 (0.68%), while the Nifty50 zoomed 149 points to 11,181 before ending at 11,110 (0.70%), ahead of the Finance Minister’s meeting with foreign portfolio investors (FPIs) and representatives from the financial sector to discuss measures to accelerate the slowing economy.
 
The Winners: The top gainers belonged to the auto and banking sectors (Maruti Suzuki, Vedanta, Bajaj Finance and HDFC Bank).
 
 
 FM FPI MEETUP 
 
Finance Minister set to meet FPIs, NBFCs, mutual funds today as government prepares to combat economic slowdown. 
 
Get it Rolling: Following a detailed meeting with India Inc leaders yesterday, Finance Minister Nirmala Sitharaman is scheduled to meet capital market representatives today, including foreign portfolio investors, NBFCs and mutual funds.
 
 
What’s on your Mind Today?: The agenda would be to discuss the issues plaguing the economy and hampering industrial growth and suggest steps to spur growth and consumption including a public transportation initiative along the lines of the erstwhile National Urban Renewal Mission (JN-NURM) for the automobile sector and a tax overhaul through the direct tax code. 
 
 
The meeting is also speculated to deliberate upon the rollback of new surcharges for FPIs along with scrapping long-term capital gains (LTCG) tax after the three-year holding period and easing of dividend distribution (DDT) tax.
 
 
 COFFEE DAY 

Coffee Day share price plunges 5% as company appoints EY for audit. Coffee Day Enterprises to sell Bengaluru IT park to reduce debt burden. 

 
CCD is Losing Steam: Shares of Coffee Day Enterprises slipped c. 5% as the company appointed Ernst & Young (EY) to scrutinise its books and those of its subsidiaries in light of the purported letter written by the chain’s late founder V G Siddhartha. 
 

The Board also decided to appoint a person of eminence or a reputed firm as its strategic corporate advisor for determining the strategic direction for the firm.
 

Clutch at Straws: The Board of Coffee Day Enterprises Ltd (CDEL), the holding company of Coffee Day group firms, has decided to sell the group’s 90-acre technology park in Bengaluru to reduce its debt burden.
 

As per reports, New York-based private equity giant Blackstone Group is one of the top contenders to buy the Global Village Park, currently owned by Tanglin Developments Ltd, a unit of CDEL.
 
  
 UBER 

Uber reports its largest quarterly loss and slowest growth ever. Shares plummet by 11%.
 

Surge Losing: Uber is decelerating. The ride-hailing giant disclosed earnings for the second time since becoming a public company and it reported its largest ever quarterly loss. Q2 losses stood at $5.2bn while revenue is up by only 14%, representing slower-than-ever growth. The company’s GAAP net loss (losses including all costs from the quarter) came to $4.72 per share, larger than the expected loss of $3.12 per share.
 

All of these unflattering numbers led to Uber’s share price nose-diving 11%. An analysis can be read here.
 
 
 TECH 

Facebook is in talks with news publishers to launch a “News” tab on its platform. Huawei launches its own version of Android.
 

Zuckerberg News Network: Facebook is planning to launch a “News” tab on its service and is reportedly willing to pay news publishers as much as $3mn a year to license their content on its site. The social media giant is reportedly in talks to license headlines and article previews of news outlets like ABC News, The Wall Street Journal, The Washington Post and Bloomberg.
 

Facebook has long been criticised by the news industry for its dominance in digital advertising. Along with Google, it commands 60% of all digital advertising revenue, slurping in ad dollars while using news outlets’ content for free.
 

Harmony, by Huawei: The world’s second largest smartphone maker just launched its challenge to Android (and Windows). Its new smartphone OS is named Harmony OS and is based on the same functionality as the Android Open Source Project. This OS will be available on Huawei’s smartphones and while it is rumoured to also be a substitute for Microsoft Windows, the OS will not yet be available for laptops and PCs due to “consideration of partnerships and the ecosystem”.
 
 
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