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Mark Zuckerberg Plans to Integrate WhatsApp, Instagram and Facebook Messenger, Zee Group Shares Crash, Trump Signs Bill to End US Govt Shutdown et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Jan 26, 2019 2:20 PM 4 min read
Editorial

Mark Zuckerberg plans to integrate WhatsApp, Instagram and Facebook Messenger. Zee Group shares crash after allegations of link to company under fraud investigation. Trump signs Bill to end US Govt shutdown; no mention of Border Wall money.

 

Now to Today's Top Business News Stories in Our End Of Day Wrap Up:

Mark Zuckerberg Plans to Integrate WhatsApp, Instagram and Facebook Messenger, Zee Group Shares Crash, Trump Signs Bill to End US Govt Shutdown et al.

JET

Jet’s lenders may propose a revised plan which could see massive cut in Founder and Chairman Naresh Goyal’s stake in the beleaguered airline.

 

Jet Set Go: As per a Business Standard report, lenders of the domestic airline, led by State Bank of India are now working on a revised plan, which could possibly see Founder and Chairman Naresh Goyal’s stake go down below 20% from the current 51%.

 

As per the plan: 

 

  • Etihad Airways (which currently holds 24% in Jet) may up its stake to c. 40%
  • Goyal’s holding could be reduced to c. 18% 
  • Lenders (primarily SBI) who are planning to convert their debt into equity as well as make fresh infusion are likely to have about 30% stake

 

The development comes days after Jet’s lenders had proposed a $900m turnaround plan for the debt-laden airways. 
 

While Jet grapples with its financial issues, Aviation Ministry refuses to intervene, stating that the issue is beyond its purview.

 

US

Trump signs Bill to end US Govt shutdown; no mention of Border Wall money.
 

Trump Caves: President Donald Trump on Friday signed a Bill that would temporarily end the partial US govt shutdown and fund federal agencies for three weeks until 15th February.
 

What's the Catch: The Bill, however, does not include the $5.7bn, Trump has been demanding for building the border wall, without which he insisted that he would not reopen the government.  
 

Trump's Insistence Came With a Price: The 35-day long partial shutdown has cost the US economy at least c. $6bn due to lost productivity from furloughed workers and economic activity lost to outside business, as per S&P Global Ratings.
 

She’s not one to bluff: Click here to read how House Speaker Nancy Pelosi won the shutdown battle against Trump.

 

ZEE

Zee Group shares crash after allegations of link to company under fraud investigation.
 

Up Close: Zee Group on Friday suffered a loss in market capitalisation to the tune of INR14,000cr after shares of its entertainment arm crashed over 30% in light of a media report, which alleged links between its promoter company Essel Group and Nityank Infrapower and Multiventures, a company that is under the scrutiny of the Serious Fraud Investigation Office (SFIO) for deposits of over INR3,000cr after demonetisation. 
 

Zee Enterprises fell c. 31%, Dish TV fell c. 37% and Essel Propack slumped c. 11%.
 

Read full copy of Essel Group Chairman Subhash Chandra's letter where he claims that the 'negative forces' are sabotaging Zee Entertainment's strategic sale process here
 

Read the original story of The Wire which caused all the fuss here.

Mark Zuckerberg Plans to Integrate WhatsApp, Instagram and Facebook Messenger, Zee Group Shares Crash, Trump Signs Bill to End US Govt Shutdown et al.

ECOMMERCE

76 WTO members push for global ecommerce rules; India stays off. US voices concern as India's new e-commerce FDI rules are set to kick in from February 1.

 

What You Need to Know: Given the lack of a consolidated rule to govern the explosive growth of ecommerce giants, 76 WTO members – including the United States, China, the European Union and Japan agreed to negotiate a new framework.

 

India did not join the initiative having previously said that the WTO should finish off the stalled development-oriented “Doha Round” of talks before moving into new areas.

 

Perspective: WTO’s 164 members were unable to consolidate over 25 separate e-commerce proposals at the body’s biennial conference at Buenos Aires in December, including a call to set up a central e-commerce negotiating forum.

 

Backlash: US voices concern as India's new e-commerce FDI rules, which are set to kick in from February 1 will hinder the investment plans of Amazon and Walmart in the country.

 

India's new e-commerce FDI rules ban companies from selling products via firms in which they have an equity interest and also bar them from making deals with sellers to sell exclusively on their platforms.

 

TECH

Mark Zuckerberg plans to integrate WhatsApp, Instagram and Facebook Messenger.

 

The Plan: Facebook is reportedly considering a merger of its three messaging platforms– WhatsApp, Instagram and Facebook Messenger, allowing users to send messages across the platforms.

 

The Outcome: After the proposed changes including an end-to-end encryption are deployed, a Facebook user could send an encrypted message to someone on WhatsApp or Instagram, without having either of those platforms. The services will continue to operate as stand-alone apps, but their underlying technical infrastructure will be unified.

 

The Motive: By stitching the apps’ infrastructure together, Zuckerberg seeks to increase the utility of the social network, keeping its users engaged within its ecosystem.

 

View an analysis video by Euronews here.

 

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