Arun Jaitley Opts Out of Modi Sarkar 2.0, IMD Expects Monsoon in India to Advance in Next 3 Days, DHFL Share Price Falls c. 4% and Other Top Business News Today

Amidst contrasting signals regarding the onset of the southwest monsoon due to fast-changing weather patterns in the Indian Ocean, the Arabian Sea and the Equatorial Pacific, IMD expects monsoon to advance in next 3 days. DHFL share price falls nearly 4% as Ministry of Home Affairs issues look out notice against the promoters. Tesla likely to make a surprise announcement regarding Model 3 in China. Arun Jaitley opts out of ministerial position in Narendra Modi Sakar 2.0. Supreme Court agrees to examine power of GST authorities to arrest invaders.  US removes India from its currency monitoring watchlist. Narendra Modi to host Chinese President Xi Jinping this year for an informal summit. Tesla plans to make a surprise announcement in China. Is the end of the company imminent?

 

Moving on to the top Business news of the day.

 

 GOVERNMENT 


Arun Jaitley opts out of ministerial position in Narendra Modi Sarkar 2.0. Supreme Court agrees to examine power of GST authorities to arrest invaders.
 

Opting Out: A day before the swearing-in ceremony of the Council of Ministers in the National Democratic Alliance (NDA) government, former Finance Minister Arun Jaitley today asked Prime Minister Narendra Modi not to give him any responsibility in the new government on back of his continuing health challenges. 
 

View the letter here which was sent by Mr. Jaitley to the Prime Minister through his Twitter handle.
 

In Other News...: The Supreme Court has agreed to hear the government's plea to clarify whether arrests can be made under the Central Goods and Services Tax (CGST) Law. 
 

The Centre had filed a plea seeking clarification regarding the power of tax officials under the CGST Act to arrest accused persons without filing a First Information Report.

 

 MONSOON 

 
Amidst contrasting signals regarding the onset of the southwest monsoon in India due to fast-changing weather patterns in the Indian Ocean, the Arabian Sea and the Equatorial Pacific, IMD expects monsoon to advance in next 3 days. 
 
 
Advancement: The southwest monsoon, which has been stuck on the Andaman and Nicobar Islands since May 18 due to a lack of momentum, will further advance in the next 72 hours into more regions in south Bay of Bengal, Andaman Islands, and the north Andaman Sea, as per the Indian Meteorological Department (IMD). 
 
 
According to IMD, the monsoon was expected to hit the coast of Kerela on June 6, five days post its normal onset. However, due to some mid-latitude activity, it is expected to gain momentum and effect widespread rainfall with isolated heavy rain over the Andaman and Nicobar Islands during the next five days.
 
 
Conflicting Signals: The Australian Bureau of Meteorology (BoM), however, said on Tuesday that an incoming, moderate-strength Madden-Julian Oscillation (MJO) wave (a crucial determinant of onset dynamics) lost pace in Africa, and if it stalled or completely dissipated prior to reaching India, the monsoon could get further delayed.
 
 
Both the IMD and the BoM also stated, though, that the turning of the Indian Ocean Dipole (IOD) from neutral to positive might be favourable to an early onset. A positive IOD signifies a warmer than normal western Indian Ocean, which brings high precipitation in the country, while a cooler-than-normal western Indian Ocean dries the weather.
 
 
 
 STRESSED 
 
 
Ministry of Home Affairs issues look out notice against the promoters of DHFL; shares fall nearly 4%.
 
 
Shares of Dewan Housing Finance Corporation Ltd (DHFL) fell c. 4% before closing at INR114.80 on Tuesday on back of reports that the Ministry of Home Affairs (MHA) has issued a look out notice against the company's promotersover non-existent shell companies. 
 
 
Pleading Innocence: DHFL however was quick to clarify that neither the company nor the promoters have received any communication related to such a notice. It also denied all allegations of existence of any shell firms.
 
 
Previously: Investigative news portal Cobrapost had alleged that DHFL through layers of shell companies had siphoned off over INR31,000cr of public money through secured and unsecured loans and advances to shell companies, that were related to its own primary stakeholders through their proxies and associates.
 
 
Bonus Read: Jet Airways asking SBI and its consortium of banks to take the densest haircut possible — nearly 100% write-off of the massive INR8,500cr plus dues as part of its revival strategy is unfairness at its worst. As per a Firstpost report, under no circumstances should creditors be expected to indulge in self-abnegation. More on this here. 
 
 
 
 INDIA 
 

US removes India from its currency monitoring watchlist. Narendra Modi to host Chinese President Xi Jinping this year for an informal summit.
 
 
Out of Sight…Out of Mind: In its semi-annual report to US Congress on International Economic and Exchange Rate Policies, the Treasury Department on Tuesday removed India and Switzerland from the previous currency watch list of countries with potentially questionable foreign exchange policies. 
 
 
It, however, continues to keep China on its watch list.
 
 
The list currently includes China, Japan, South Korea, Germany, Italy, Ireland, Singapore, Malaysia, and Vietnam.
 
 
India, along with China, Japan, Germany, Switzerland and South Korea, was placed in the bi-annual currency watch list in October last year.
 
 
 
Both leaders have met several times over the past year to defuse tensions and bolster trade ties after a military standoff in Doklam in 2017 renewed fears of war between the two countries.
                                             
 
Modi may also hold his first bilateral meeting with US President Donald Trump in over two years on the sidelines of the G20 summit in June this year in Osaka, Japan.
 
 
 
 TESLA 
 

Tesla plans to make a surprise announcement in China. Is the end of the company imminent?
 
 
Surprise!: According to a post by car maker Tesla on Chinese social media platform Weibo, the electric car company is planning to make a surprise announcement in China on May 31, Friday, seemingly about a Chinese version of its Model 3 vehicle. 
 
 
The announcement comes in the light of significant progress being made on its Gigafactory 3, a factory for building Model 3 vehicles in Shanghai, whose construction began in January.  
 
 
The second-generation Model 3 line built in China is expected to be at least 50% cheaper per unit of capacity than their Model 3-related lines in Fremont and at Gigafactory 1. The move will also help to bypass Chinese import tariffs. 
 
 
Impending Doom: Tesla might soon lose steam owing to the fact that car companies make only 6% margin on every car they sell; it needs to scale up to increase profits, but scaling up is what is bringing it closer to its end, and its CEO’s propensity to take up new projects at the drop of a hat is not helping either. Increasing competition in the electric vehicle market, as well as its exorbitant spending are proving dangerous for the company. 
 
 
An acquisition seems to be the future for Tesla, though it’ll no doubt be touted as a merger owing to its valuable brand name. 
 
 
 
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