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RCom Plunges c. 50% as it Files for Bankruptcy, WhatsApp Introduces Biometric Authentication Feature, US Sanctions on Venezuela Crude Hits Fuel Makers et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Feb 4, 2019 2:53 PM 3 min read
Editorial

RCom plunges c. 50% as it files for bankruptcy. Twitter CEO hints at edit tweet option. WhatsApp introduces biometric authentication feature. US sanctions on Venezuela crude hits fuel makers. 

 

Now to Today's Top Business News Stories in Our End Of Day Wrap Up:

 

ECONOMY

RBI likely to hold rates in the upcoming MPC review. FDI declines 11% to $22.66bn during April-Sept. 

 

In its first policy meeting under Governor Shaktikanta Das, the RBI is likely to hold rates, second time in a row. 

 

What We Know: Retail inflation in Q3 stood at 2.6% against RBI's projected trajectory of 3.8%. This, along with a global slowdown narrative, gives the Central Bank some room for a hike in rates. However, against the background of increasing fiscal challenges and rising crude oil prices, RBI is unlikely to change its monetary policy stance.

 

If Not Cut Now, When?: Read this insightful article by Bloomberg Quint which argues that now is perhaps the best time for RBI to cut rates. 

 

FDI: FDI into India declined 11% to $22.66bn during April-September period vs $25.35bn during the same period in FY2017-18.

 

RCOM

RCom plunges c. 50% as it files for bankruptcy.
 

Backstory: Anil Ambani’s Reliance Communications fell by over 50% as it filed for bankruptcy on Saturday, unable to sell its spectrum assets to Mukesh Ambani’s Reliance Jio. 

RCom closed at INR7.55, down 34.91%.

Going, Going, Gone: With RCom finally filing for insolvency, the government is staring at a potential loss of spectrum dues worth INR2,900cr. Read this fascinating piece by Bloomberg which discusses how failing to take the initiative before the inevitable bankruptcy of RCom has cost the Indian banks dearly. 

 

STARTUP

Swiggy acqui-hires Bengaluru-based AI startup Kint.io
 

Food-delivery platform Swiggy acqui-hires Bengaluru-based AI startup Kint.io.As part of the acquihire, the founding members Pavithra Solai Jawahar and Jagannathan Veeraraghavan will join the Swiggy team.
 

Kint.io specializes in applying deep learning and computer vision for object recognition in videos. The acquisition will augment the work Swiggy has been doing in AI, machine learning and big data as it seeks to improve discovery for consumers and enable faster, more efficient deliveries.
 

Startup on your mind?: Read this article to know why a Limited Liability Partnership (LLP) could be the way to go.

 

OIL

US sanctions on Venezuela crude hits fuel makers. 

In a tussle against Venezuelan President Nicolás Maduro, US last week imposed sanctions on Venezuela’s state-owned oil giant. This would prevent the proceeds of crude sales to the US from reaching Venezuela. However, the sanctions which affect delivery of more than 500,000 barrels a day of Venezuelan oil to the US may leave US fuel makers short on the supplies they need.

A Double-Edged Sword: This is because US shale companies produce crude that is low in sulfur and has a low-density vs the dense oil that Venezuela provides. Many American refineries are configured to process a mix of heavy and light barrels and need both kinds to produce fuels like gasoline and diesel efficiently.
 

Will Venezuela oil sanctions be the silver bullet to take down the Maduro regime? Read this article to know more.

 

TECH

Twitter CEO hints at edit tweet option. WhatsApp introduces biometric authentication feature.

Twitter CEO Jack Dorsey in a recent interview hinted at how editing tweets would potentially work.

"You could build it as such so maybe we introduce a 5-second to 30-second delay in the sending" he said. 
 

In order to maintain the dynamic nature of the social media platform, while giving the users the option to edit, Dorsey is likely to consider making editability dependent on the context.
 

Privacy First: WhatsApp introduces new features for its users on iOS wherein they can now add an additional layer of security by requiring either their facial biometric or a fingerprint to unlock the messaging app. 
 

Brownie Points: Here are 7 lessons from a generation that’s never known a world without smartphones and social media in a tech-obsessed world.

 

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