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US Govt Shutdown, Suzuki and Toyota to Deepen Alliance, Govt to rein in the Social Media Giants et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Dec 26, 2018 2:38 PM 3 min read
Editorial

US shutdown enters fourth day as President Trump remains persistent on his demand for the long-promised border wall. To curb the rising menace of fake news and rein in the social media giants, the India govt calls for public consultation on recently proposed social media regulations. Vedanta Resources announces big plans as the year comes to a close.

 

Now to today's Top Business Stories:

US Govt Shutdown, Suzuki and Toyota to Deepen Alliance, Govt to rein in the Social Media Giants et al.

CRUDEOIL

 

Oil rises to $51/bbl after dropping more than 6% to the lowest level since June 2017 on back of fears of a global economic slowdown. 

 

Up Close: Brent crude up at $51.17 from $49.93 - the lowest since July 2017, after posting a 6.2% slide in the previous session. US crude up at $43.21.

 

A slippery slope: The rapid decline in crude oil prices is believed to be driven by the ongoing US govt shutdown, the US-China trade war and an increase in US interest rates which have brought global stocks down from this year’s record high.

 

STEEL

Vedanta Resources to set up mega steel project adjacent to Electrosteel Steels in Bokaro; also to scale up its oil and gas portfolio at an investment of c. $5bn.

 

Level up: Vedanta Resources to also inject c. $4bn in newly acquired Electrosteel Steels besides setting up a mega steel project in the vicinity to ramp up combined production to 7 million tonne per annum.

 

Oil and Gas remain key focus areas: As per a Business Standard report, the metals and mining company has also lined up investments worth c. $5bn to scale up its oil production four times the current output. Cairn Oil & Gas, the Group's energy arm operates around 25% of India's domestic crude oil production.

 

AUTO

Suzuki and Toyota to deepen alliance; to cross-badge Corolla, Baleno and Vitara Brezza models.
 


What’s the deal?: As per a Livemint report, the talks between the two auto giants include exchange of expertise in manufacturing and sales practices, common service centres, royalty payments on models supplied to each other and alignment of their cultures.

 

Zoom Out: The ongoing discussions can be seen as part of dialogues which have been taking place since Suzuki and Toyota first announced their partnership covering areas such as green energy, safety, information technologies and mutual supply of products and components over two years back.

 

TECH

Govt kicks off public consultation on recently proposed social media regulations.
 

The What: The Ministry of Electronics & IT (MeitY) opens public consultation on a draft Information Technology (Intermediary Guidelines) Rules 2018 which seek to make social media giants more accountable.

 

Rules first:

 

  • The draft amendments will require companies to trace and report the origin of messages within 72 hours of receiving a complaint from law enforcement agencies
  • They also have to “disable access” within a day to content deemed defamatory or against national security and other clauses under Article 19 (2) of the Indian Constitution
  • These platforms will also be required to have a registered entity in India under the Companies Act, appoint a nodal officer in the country to deal with law enforcement agencies and send communication to users once a month about their privacy policies

 

US Govt Shutdown, Suzuki and Toyota to Deepen Alliance, Govt to rein in the Social Media Giants et al.

 

US

US Govt shutdown enters fourth day as President Trump remains persistent on his $5bn demand for building the long-promised border wall. Blames Fed for all that is wrong with the US markets.
 

Freshly brewed: Trump insisted that $25bn for border security is different from funds for a border wall and that funds for border security are wasted if a border wall isn’t included in the package.

Also: Trump blames the Fed for increasing interest rates too fast, resulting in a downfall in the markets and blames the Democrats for the partial government shutdown.

 

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