US to terminate preferential trade agreement with India. Newmont rejects Barrick’s takeover bid. Zomato sells UAE business to Delivery Hero. Paytm launches loyalty program, Paytm First.
Now to Today's Top Business News Stories in Our End Of Day Wrap Up:
US to terminate preferential trade agreement with India, Turkey. Services PMI rises to 52.5 in Feb.
You May Leave: US President Donald Trump may terminate India’s designation as a beneficiary of the Generalized System of Preferences (GSP), which allows $5.6bn worth of Indian exports to enter the US duty free.
Clash of Interests: The development comes under allegations that India failed to provide assurances that it will give the US equitable and reasonable access to its markets in numerous sectors. Trump insisted that India had implemented a wide array of trade barriers that could create serious negative effects on US trade.
The US goods and services trade deficit with India was $27.3bn in 2017.
Going Strong: India's services sector activity gathered momentum in February as the Services PMI rose to 52.5 from 52.2 in January on back of quicker expansion in new work orders that supported a faster increase in output and job creation.
Nikkei India Composite PMI Output Index, that maps both the manufacturing and services industry, also rose to 53.8 in February from 53.6 in January, indicating acceleration in private sector activity in the country.
Newmont rejects Barrick’s takeover bid. Top lenders of Jet Airways may buy other banks' exposure. Jet pledges FDs worth INR 1,500 cr with SBI.
No Thanks: Newmont Mining has rejected rival Barrick Gold’s c. $18bn takeover offer, stating that the proposal is inferior to its own deal with Goldcorp.
Throwback: Last week, Canada-based Barrick Gold made a $17.85bn bid for US rival Newmont Mining in an all-share deal that would combine the world’s biggest gold miners, valuing the merged entity at c. $42bn.
But Wait: However, a deal is not completely out of question. Newmont’s Chief Executive Gary Goldberg has said that both companies can cuts costs up to $7bn in Nevada by forming a joint venture.
Not Interested: Jet Airways' top lenders, including SBI and PNB might buy out the exposure of other smaller lenders – three Indian and one foreign bank - who are not keen on participating in the debt-equity restructuring process.
Also This: The lenders also seek to increase the size of rights issue to around INR4,000cr, from the earlier proposed INR2,500cr.
Promise: Jet Airways has pledged its fixed deposits with various banks, totaling INR1,500cr, to borrow INR4,225cr from SBI.
Smart Plan: The funds will be used by the airline primarily to run its core businesses, which include cost of flying, parking and paying salaries to the staff, and avoid further grounding of aircraft.
Zomato sells UAE business to Delivery Hero. Paytm launches loyalty program, Paytm First.
Moving On: Online food technology giant Zomato has sold its food delivery business in the UAE to the Delivery Hero Group for around $172m.
Growing Influence: The acquisition will add 1.2m monthly orders and $2m monthly revenue to Delivery Hero’s Far East and North Africa business and will strengthen its leadership position in the UAE.
Delivery Hero is also set to participate in Zomato’s latest $1bn funding round, investing c. $50m, making it one of the top 10 shareholders.
Get Rewarded: Paytm has announced the launch of its premium subscription-based rewards and loyalty program - ‘Paytm First’.
Paytm First subscription is priced at INR750 per year and will include annual memberships for Zomato Gold, Gaana, Sony LIV, Viu Premium, Eros Now and Uber, amongst others.
Many Benefits: Through this program, the company aims to retain customers by rewarding them for their repeat purchase behaviour, while looking to promote further usage and to increase customer retention.
China lowers GDP target to 6-6.5% amid trade war, economic slowdown. Also hikes defense budget by 7.5% to $177.61bn.
Less than Expected: China lowered its economic growth target this year to between 6% - 6.5%, from the 2018 target of c. 6.5%, on back of lowering global and domestic demand, ongoing trade war with the US and a continued economic slowdown.
Opening the annual session of China’s legislature on Tuesday, Premier Li Keqiang said that China’s fiscal policy would become “more forceful”, with planned cuts of nearly 2 trillion yuan in taxes and fees for companies.
China’s GDP last year expanded at its slowest pace since 1990 due to the trade war and Beijing’s crackdown on financial risks, which raised corporate borrowing costs and hurt investment.
More Guns: China has announced a 7.5% increase in its defense budget for this year, hiking it to a whopping $177.61bn.
This is over three times of what India spends.
The hike comes as Beijing steps up its efforts to assert efforts to assert its vast territorial claims in the disputed South China Sea.
Second person reportedly cured of HIV. Pharma sector growth hits 4yr low.
The English Patient: In the history of HIV/AIDS, only a single person is believed to have been cured of the virus. Timothy Ray Brown, an American known as the "Berlin patient". A new paper published in Nature reveals that there might be a second such patient.
Read more on the matter here.
Rock Bottom: Growth of the Indian Pharmaceutical industry hit a four-year low in 2017-18, registering a mere 3.03% increase in 2017-2018 vs 18.53% in 2016-2017.
All is Well: The Department of Pharmaceuticals, however reported that even though the percentage increase has reduced, the annual turnover has increased continuously.
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