Following arrest of HDIL promoters, Ex-MD of PMC BANK arrested. Amazon and Flipkart report record sales in festive sales. PayPal backs out of Facebook's cryptocurrency network. Uber launches new app - Uber Works. US unemployment rate falls to 50-yr low.
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The What: Suspended Managing Director of Punjab and Maharashtra Cooperative (PMC) Bank, Joy Thomas was arrested yesterday in the INR4,355cr scam. ToI
Previously: The news comes days after promoters of debt-ridden Housing Development and Infrastructure Ltd (HDIL) Rakesh and Sarang Wadhawan were arrested on Thursday on charges of financial fraud for their role in the scam.
Ghost from the Bank: PMC Bank allegedly extended privileges to the promoters of HDIL, including allowing them to operate ghost accounts through which loans were extended to at least 44 borrowers linked to HDIL. These were then camouflaged using another 21,049 fictitious accounts. ET Banking
Confessions of a Shopaholic: Ecommerce giants Amazon and Flipkart have clocked record sales in the festive season sale that lasted from 29th September to 4th October.
Demand surged particularly from Tier II, Tier III cities - with orders for consumer electronics, smartphones, fashion and large appliances increasingly manifolds, especially from new customers.
Nearly 15,000 sellers more than doubled the sales while millionaire sellers including "crorepati" sellers exceeded 21,000 sellers in the sale, reported Amazon. Flipkart’s "The Big Billion Days" sale witnessed c. 50% growth in the number of new customers vs last year. NDTV Profit
Shutting Down: Commercial vehicle major, Ashok Leyland has said that it will suspend production at its plants at various locations for up to fifteen days this month, in order to correct the mismatch between production and sales in the wake of slowdown in the domestic automobile industry.
Last month, the Chennai-based firm had announced 16 non-working days for its facility in Ennore, 5 days at Hosur (Tamil Nadu) unit, 10 days each in Alwar (Rajasthan) and Bhandara (Maharashtra) unit and 18 days in Pantnagar (Uttarakhand) facilities. Business Today
Trouble Brewing: In a blow to Facebook’s ambitions of reinventing money and disrupting global finance, San Jose-based payments company PayPal has decided to withdraw from the Libra Association, the 28-member nonprofit organization formed to oversee Facebook’s cryptocurrency project.
Zooming Out: The development comes days after reports of other financial partners reconsidering their involvement in the project following a backlash from US and European government officials surfaced. The Verge
In Other News: In an attempt to expand the scope and reach of credit in the economy to spur aggregate demand, the RBI has raised the lending limit of microfinance institutions to INR1.25L from the current INR1L. The Asian Age
You’ve Got A Match: Uber Technologies has launched a new app - Uber Works aimed at pairing businesses with gig workers. The move is perhaps “an effort to bring in more revenue as the company struggles to turn profitable amidst increasing legal and regulatory attack." TechCrunch
Currently launched in Chicago, the app is designed to match workers such as chefs and cleaners with companies looking to fill a temporary opening.
Fireworks at Google: With short videos gaining immense popularity, tech giant Google is in talks to acquire Redwood City-based TikTok rival, Firework.
Firework was valued at more than $100mn in a fundraising round earlier this year. Weibo, China’s version of Twitter, has also expressed interest in the company. WSJ
Silver Lining: In a minor relief to the US economy amidst concerns of a deepening slowdown on the back of the ongoing US-Sino trade war, the jobless rate in the US dropped to a 50-year low of 3.5% in September from 3.7% in August with the economy adding 136,000 jobs last month. The previous lowest rate was recorded in December 1969 when it also logged in at 3.5%. BBC
The FTSE 100 climbed 0.7% to 7126.46 as the news came in. Morningstar
WTI Crude was up 1.22% at $53.09, and Brent Crude was trading up 1.73% at $58.71. OilPrice.Com
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