Facebook looking to invest in tech startups in India. Tata Motors share price dips following reports of a temporary shutdown of JLR plant. Tesla expected to make record deliveries in Q3. Apple plans theatrical release for its movies.
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Setting New Records: As per an email sent by CEO Elon Musk to his employees, Tesla "has a shot" at achieving 100,000 car deliveries this quarter- well above the record 95,356 vehicles it delivered in Q2.
This would also put Tesla on track to achieve its full-year guidance of delivering 360,000-400,000 vehicles this year.
However, smooth execution on delivery logistics remains key. The Motley Fool
Downhill: Tata Motors share price fell over 5% following reports that its subsidiary Jaguar Land Rover (JLR) would suspend production at its UK plants for one week after the planned Brexit date of October 31 to adjust to adverse market conditions, including uncertainty over Brexit.
Both BMW and Toyota have also reported that they will not build cars at their British factories on the day after Brexit. Moneycontrol
Sound the Death Knell: The collapse of the world’s oldest tour operator, Thomas Cook, has now drawn focus on the struggling Indian tours and travel company Cox and Kings.
The travel company has defaulted on most of its debt repayment obligations since June. Cox & Kings first defaulted on commercial papers worth INR150cr in June 2019. Since then, the defaults have been a recurring occurrence. Latest, the company has defaulted on payments worth INR30cr on September 20, according to a regulatory filing.
Stock price has eroded 98% of its market value this year alone. CNBC
Death of the Bricks: The All India Mobile Retailers Association (AIMRA), which represents thousands of brick-and-mortar stores across the country is pushing the government to curb the practice of e-tailers forging exclusive tie-ups with smartphone makers and offering lower prices, which has resulted in more than 30,000 mobile phone retail outlets shutting down in the past one year. ET
S&P Global downgrades WeWork’s credit rating deeper into junk territory. “WeWork may have only enough cash to last for six months.”
Stock Junkyard: S&P Global Ratings has further downgraded WeWork’s credit rating deeper into junk territory following the companies failed plans for an IPO and the stepping down of co-founder Adam Neumann as CEO.
S&P Global has reduced WeWork’s credit rating one notch to B- with a negative outlook, putting it at the edge of the market’s weakest tier of borrowers.
“The downgrade reflects heightened uncertainty around The We Company's ability to raise capital to support aggressive growth and the pressure this places on liquidity," said S&P. Business Insider
Dead-end: As per reports, WeWork is losing millions of dollars a day and has only enough cash to last the next six months. ET Rise
Now Playing in Theatres Near You: Apple is set to launch its new streaming service, Apple TV+ in November to take on the likes of Netflix and Hulu.
However, as per the latest reports, Apple may screen some of the movies on the silver screen first before steaming them on its own platform.
This is akin to Amazon’s strategy, where it releases some of its original film productions in theatres before they air on Amazon Prime Video. Netflix is also planning something similar with 10 of its upcoming films. WSJ
Swipe Right: Social media giant Facebook is gearing up to make substantial investments in technology startups in India.
While addressing the opening session of the second edition of ‘Huddle Kerala 2019,’ one of Asia’s largest congregations on the startup ecosystem in Thiruvananthapuram, Ajit Mohan, Vice President and Managing Director, India Facebook, said that the company has “shown willingness to make direct investments in technology start-ups in India.”
Facebook had recently made a minority investment in Bengaluru- and California-based online marketplace for resellers, Meesho. Financial Express
Things Fall Apart: Consumer spending - the driving force behind the US economy, accounting for more than two-thirds of total economic output barely rose 0.1% in August.
Another key source of demand in the economy, business investment, continued slump in August. Orders for long-lasting equipment and machinery, a proxy for business investment, fell 0.2% last month from July and 1.7% from August 2018. Reuters
In Other News...: In a move that could severely escalate the ongoing trade wars, President Donald Trump's administration is considering delisting Chinese companies from US stock exchanges.
Shares of Hangzhou, Zhejiang-based Alibaba ended down 5.15% on the back of the news. JD.Com fell 5.95% and Baidu Inc declined 3.67%. The iShares China Large-Cap ETF shed 1.15%. Shares of New York Stock Exchange-owner Intercontinental Exchange Inc ended down 1.88% and shares of Nasdaq Inc declined 1.70%.
As of February, 156 Chinese companies were listed on the NASDAQ and New York Stock Exchanges, says US government data, including at least 11 state-owned firms. NYT
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