Order violation will send ex-Ranbaxy promoters to jail, warns SC. Jeff and McKenzie Bezos reveal divorce settlement. DGCA temporarily reallocating Jet Airways unused slots in Mumbai and Delhi airports; lenders invite expression of interest for stake sale. Swiggy-UberEats merger stalls over disagreements. One in five deaths globally is associated with poor diet, as per a Lancet study.
Moving on to the top Business stories of the day.
Order violation will send ex-Ranbaxy promoters to jail, warns SC. Jeff and McKenzie Bezos reveal divorce settlement. At least 10 Day jail for Carlos Ghosn.
Dissatisfied: SC on Friday was displeased with the replies of former Ranbaxy promoters, Malvinder and Shivinder Singh on payment of arbitral award amount to Japanese drugmaker Daiichi Sankyo.
Earlier: The Singh brothers were asked by the court to submit a concrete plan for paying INR 3,500cr to Daiichi Sankyo as directed by a Singapore tribunal, earlier in March.
History: Daiichi had bought Ranbaxy in 2008. Later, it moved to Singapore arbitration tribunal accusing the brothers of concealing information while selling its shares. Daiichi accused the brothers of hiding the fact that Ranbaxy was facing a probe by the US Food and Drug Administration and the Department of Justice at the time of the deal.
A hearing has been fixed on April 11, 2019, on a contempt petition against the Singh brothers. And if a violation of the court’s orders is established then the brothers could be sent to prison.
Terms and Conditions: The world’s richest couple, Jeff and McKenzie Bezos have revealed their terms of their divorce agreement.
Stake: Following the divorce MacKenzie has now become the 4th richest woman in the world. Currently, she holds stakes at an estimation of $36bn of the current market prices.
Offers: As a part of agreement, Bezos retains 75% of the stake in Amazon along with all voting rights in the company.
Note: Mackenzie will relinquish her interests in the Washington Post along with rocket company Blue Origin.
Again: Carlos Ghosn set to spend 10 days in prison following a ruling by a Tokyo court. Ghosn was arrested again on Thursday following new allegations that accused him of misusing company funds.
Fresh: The new allegations come less than a month after his last bail. He is suspected to abuse his position of power at Nissan for personal gain.
Suspected: Prosecutors accuse Ghosn of using Nissan funds for personal use. They allege that from 2015 to 2018, Nissan sent payments to an overseas dealer that was actually controlled by Ghosn. According to prosecutors, this resulted in Nissan losing about $5m.
DGCA temporarily reallocating Jet Airways unused slots in Mumbai and Delhi airports; lenders invite expression of interest for stake sale.
Free Real Estate: Aviation regulator, DGCA, has begun reallocating flight slots of Jet Airways that were left unused as a result of the grounding of 75% of its fleet. The move will provide a boost to domestic players who are likely to experience a rise in demand and possibly moderating fares that have surged.
Peak Time: The slots are being allocated for flights between April 16 and July 15, covering the peak summer travel season, when demand for leisure travel increases.
Cashing In: Mumbai airport has allocated close to 40 departure slots for domestic and international flights to IndiGo (13), SpiceJet (10), AirAsia India (7) and Vistara (8), discussions over slots in Delhi Airport are still ongoing. In all, Jet is estimated to have close to 400 unused departure slots across the country.
Emergency Provision: The allocation of slots is temporary, which means Jet should be able to get them back once its planes start flying again.
Chasing Ghosts: The investors of Jet Airways will start inviting Expression of Interests (EOIs) for a stake sale on April 6th. They have set April 9 as the deadline for receiving EOIs, giving investors three days to respond.
One Tenth: To prevent Jet from being grounded, lenders’ consortium led by State Bank of India will release INR150cr as an emergency fund to the airline. However, initially the resolution plan prepared by the lenders had estimated an emergency fund of INR1,500cr for the airline.
On Support: With the additional funds the airline will be able to manage operations of its remaining fleet of 26 planes, for the next few days. Jet has also assured the government that there will be no further groundings.
Hiding in Plain Sight: Credit Rating agency Fitch has commented that the grounding of Boeing 737 Max jets has had a muted impact on the airline industry in Asia. However, they predict that it may worsen in the second quarter of 2019.
DPIIT instructs post offices and courier firms to monitor Chinese shipments. Swiggy-UberEats merger stalls over disagreements.
Chinese’s Gifts: In a bid to crack down on Chinese e-tailers escaping customs duty, the Department for Promotion of Industry and Internal Trade (DPIIT) has asked post offices and courier firms across India to closely monitor shipments from China.
According to customs officials, Chinese e-tailers have been using the gifting route to get their goods into the country. These goods ordered by Indian customers are sent to them as gifts in a bid to escape custom duties, as gifts up to INR5,000 for personal use are exempted for customs duties.
Under the Radar: In the last couple of years, e-tailers from China including the likes of Club Factory, Shein and AliExpress have become popular in India using this tactic.
Roadblock: Merger talks between Swiggy and UberEats have stalled following a disagreement over taxation clauses of the proposed deal. Additionally, SoftBank, an existing investor in Uber, had proposed to infuse primary capital at a reduced valuation in Swiggy, which could also have negatively impacted the deal.
Hungry Dutchman: Dutch firm Uber directly owns UberEats India. Given the tax treaty between India and the Netherlands, the company is exempt from GST and dual taxation in India. This structure will have to significantly change to make the deal with Swiggy viable.
Read of other possible hindrances here.
Samsung Electronics expects 60% fall in Q1 profits. Ad spending on Amazon, on the rise.
As Expected: Samsung Electronics announced its earnings guidance for Q1 of 2019, estimating a fall in profits by 60% to 6.2tr won ($5.5bn) vs 15.64tr won in Q1 2018. The sharp decline in profits estimates come on the back of slump in its memory and display businesses.
Good Reason: A slowdown in data center companies buying memory chips, as well as slowing of smartphone sales has been attributed to have caused the decline of Samsung's memory chips business.
Not Over Yet: Analysts at brokerage firm, CLSA predict that Samsung's earnings are set to take further hits in the coming months with expectations of the average selling price for memory chips falling as much as 20% in the next quarter.
Called It: Samsung shares dipped 0.21 on Friday following the announcement.
Switching Alliance: WPP, the world’s largest ad buyer, spent about $300m on behalf of its clients on Amazon search ads last year. What’s interesting to note is that about 75% of that money came from Google search budgets. To put things into context, WPP spent between $100m and $150m on Amazon search in 2017.
Find out why increasing number of advertisers are switching over to Amazon for ad listings here.
One in five deaths globally is associated with poor diet, as per a Lancet study.
Around the World: Lack of nutrition accounts for over 11 million deaths and chronic diseases worldwide.
Low Intake: Low whole grain intake, below 125gms per day is a leading dietary risk factor in countries like India, the US, Brazil, Pakistan, Nigeria, Russia, Egypt, Germany, Iran, and Turkey. With 310 deaths per 100,000 people India ranks 118th globally.
Evaluation: The report which tracked consumption of major foods and nutrients across 195 countries measured the effect of poor diets on death and non-communicable diseases specifically cancers, cardiovascular diseases, and diabetes.
Overall: In 2017 diets high in sodium, low in whole grains, and low in fruit resulted in half of all diet-related deaths globally. The causes of these deaths included for 10 million deaths because of cardiovascular disease, 913,000 cancer, and almost 339,000 deaths from diabetes.
New Study: As per the study published in Frontiers in Psychology, participants who immersed themselves in a "nature experience" for at least 20 minutes per outing experienced a significant decrease in their levels of the stress hormone cortisol.
Vision: Authors of the study envision developing a “nature prescription” or “nature pill” to offer low cost, and a preventive mental health treatment.
Read more about the study here.
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