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Fitch downgrades India’s GDP forecast, Zomato acquires TechEagle Innovations, China and US agree on 90-day Trade War Truce Period et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Dec 6, 2018 2:11 PM 3 min read

Good evening reader,


There's nothing fun about filing taxes. They're however a "societal hazard" we all need to bear to enjoy the benefit of living in a civilized world.


In that context the initial noise emerging over how populating online income tax (IT) returns may get easier going forward definitely caught our ear. 


We've earlier published how the government's Digital India Mission often misses the point, where the writer asserted:


"Too often, tax-paying citizens have felt let down by much-hyped digital services that end up being ineffectual due to shoddy application design and hasty implementation by the government." 


It is hence natural how recent murmurs around the possibility of "pre-filled" and "single page" online IT return forms seem like music to our ears.


Can't believe we're saying this but in that regard (and that regard only!), more power to the tax man :)


Now to today’s Top 6 Business Stories through our End of Day Wrap Up:


Fitch downgrades India’s GDP forecast from 7.4% to 7.2% for FY19.


The What: Fitch Ratings downgrades GDP projections from earlier estimated 7.4% to 7.2% for current fiscal year on back of weaker-than-expected GDP growth, higher financing cost and reduced credit availability.


Also, this: Fitch has projected the growth for FY20 and FY21 at 7% and 7.1% respectively.


Jet Airways promoters close to striking a deal with a consortium of lenders led by SBI.


The What: As part of the deal, the lenders have agreed in principle to convert a part of their loans into equity under the proposed debt restructuring plan.


The Bigger Picture: Naresh Goyal, who owns 51% of the airline, may be asked to bring his stake down to 25% or below by partly selling it to Etihad Airways. Jet's promoters are also seeking an increase in stake by Etihad from the current 24% to up to 49%.


Tata Trusts may consider bringing in Noel Tata on board as it looks to rejig composition.


The What: Noel Tata, Ratan Tata’s half-brother, is currently the Chairman of Trent and Managing Director of Tata International.


What Else: Besides fresh inductions, Tata Trusts, which holds 66% stake in Tata Sons could even decide on a vice-chairman.


Zomato acquires TechEagle Innovations, to boost drone-based delivery. Swiggy suffers disruptions in Chennai following strike by delivery personnel.


The What: Zomato said that the acquisition will help them pave the way towards drone-based food delivery in India.


What Else: This is Zomato's second delivery focused acquisition in India after buying hyperlocal logistics startup Runnr in an all stock deal in September last year.


Also, this: Food-delivery platform Swiggy suffered disruptions in Chennai as delivery personnel pushed for restoration of incentive amounts that had been reduced recently, regularisation of per mile compensation, amongst others.




Canadian Authorities arrest CFO of Huawei Technologies for alleged violations of Iran sanctions.


The What: US authorities have been investigating Huawei, the world's largest telecoms equipment maker, since 2016 for allegedly violating US export and sanctions laws by shipping US-origin products to Iran and other countries. The company is also believed to pose a national-security threat to US because of its alleged ties to the Chinese government.


Zoom Out: Stock markets fell sharply following the arrest. S&P 500 plunges c. 1.9%. Dow Jones drops around 800 points.


China and US agree on 90-day trade war truce period.


The What: As part of the deal, Chinese officials have suggested that they will increase purchase of US farm and energy products such as soybeans and natural gas in order to reduce its trade surplus. Trump added that China would roll back tariffs of 40% on cars.


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