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Custom Duty Hiked, Hong Kong's Bitmain Files for IPO et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Sep 27, 2018 1:41 PM 2 min read
Editorial

Good evening reader, 

 

The week began with a pair of Supreme Court opinions gobbling up most news media real-estate effectively demoting the 'Government's Five Point Economic Plan' to a thing of the past. Well considering the Government yesterday hiked custom duties on 19 items to manage an out-of-sync Current Account Deficit, the downgrade didn't last long. While this appears to be the 'non-essential' list that is in extension to the Finance Minister's prior comments, the list as such is somewhat perplexing. Items range from Refrigerators and Washing Machines to Footwear and Aviation Turbine Fuel.

 

An interesting and confusing characterization of 'non-essential', no? But perhaps one needs to buy a pair of socialist tainted sunglasses to appreciate it (by the way sunglasses are not subject to custom hikes, although the box it comes in might be). 

 

With that being said, here's our End of Day Wrap Up, presenting today's Top 6 Business stories:

 

INDIA

 

Government to hike basic custom duty on 19 'non-essential' items to restrict imports.

Government may hike the basic custom duty on 19 items, including air conditioners, washing machines, refrigerators, aviation turbine fuel and even footwear, to limit the amount of imports into the country. This move is expected to help reduce India’s current account deficit and ease pressure on the Rupee.

 

SEBI asks for investment details in IL&FS from fund houses.

In a letter to asset management companies (AMCs) and other financial institutions, SEBI has requested information on mutual funds’ investment in IL&FS, as panic has seeped into the industry over liquidity tightness created by the IL&FS crisis.

 

RBI increases Liquidity Coverage Ratio to allow banks’ access to more funds.

Reserve Bank of India announced a hike in LCR, from 11% to 13%, which will give banks wider access to funds, with effect from October 1. This measure comes after a severe cash crunch in India’s banking sector observed over more than two years.

 

Preparation of a bailout package for Air India at an “advanced stage”.

Jayant Sinha, Minister of State for Civil Aviation, said in a statement that the sale of a major stake in debt-laden Air India is in its final talks i.e. ‘getting government approvals’. The sale failed this year due to lack of interest from buyers.

 

US/INTERNATIONAL

 

World’s largest cryptocurrency mining company files for IPO.

Bitmain, a Hong Kong based cryptocurrency firm is filing for an initial public offering on the Hong Kong stock exchange. The company’s financial statements confirmed Bitmain’s intention to go public in a deal that could raise billions of dollars, as per analysts.

 

Comcast gets ready to buy Fox’s stake in Sky.

21st Century Fox will sell its 39% stake in Sky to Comcast Corp. for c. $15 billion. Walt Disney has given its consent for the deal to be taken forward. The proceeds from Fox’s sale of stake will go to Disney.

 

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