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Rupee Hits Record Low, Amazon Hikes Minimum Wage et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Oct 3, 2018 12:25 PM 3 min read
Editorial

Good evening reader,

 

Today we'll talk of something away from our daily staple. The Judiciary. And rightly so. 

 

From striking Section 377 down, to upholding the constitutional validity of Aadhaar, quickly followed by an accelerated pathway for the Ayodhya Proceedings, the Supreme Court has been quite busy.  

 

Appears like an achievement considering the bitter environment plaguing the Apex Court when the year started. The press conference called in by Justices Chelameswar, Gogoi, Lokur and Joseph in January to articulate their displeasure with the way the then CJI Dipak Misra was appointing cases, was unprecedented. That now appears to be well and truly behind us and reminiscent of a distant past.

 

In that context, Justice Ranjan Gogoi was sworn in earlier today as Chief Justice, becoming number 46th but the first one to face a camera inside courtroom for live-streaming of proceedings. With 28m pending cases in subordinate courts, 3.2m in pending in high courts, and 54,000 pending in the Supreme Court, his statement saying "...pendency of cases...brings a lot of disrepute to the judicial system...I have a plan and will soon unfold it", is welcome! 

 

We're listening. 

 

Presenting Today's Top 6 Business Stories through our End Of Day Wrap Up:

 

INDIA

 

INR reaches its record low at 73 against USD for the first time.

The Indian Rupee recorded its lowest today as it breached the 73-mark against the US dollar, owing to surging crude oil prices and a broadening current account deficit. It has depreciated more than 13% so far this year.

 

Sensex drops 500 points and Nifty stays below 10,900 as auto and telecom stocks bear losses.

Auto companies like Mahindra (-7.03%), Eicher Motors (-6.79%) and Maruti Suzuki (-3.31%) traded losses after car sales fell for the consecutive third month, on back of declining INR and increasing crude oil prices. Sensex closed 1.51% lower and Nifty fell 1.36% today.

 

Special NRI scheme in pipeline to boost dollar inflow.

India may plan a special deposit scheme for non-resident Indians to improve the inflow of dollars. Economic Affairs Secretary, SC Garg had said in June that the government could raise funds through foreign currency non-repatriable (FCNR) deposits, sovereign bonds and other methods to increase foreign exchange reserves.

 

Government to put in effect an ordinance to amend Companies Act.

A Committee set up by the Ministry of Corporate Affairs to amend the Companies Act, may decriminalize 83 offenses under the Act and limit compensation to independent directors. The government plans to put in place a stricter disclosure framework for independent directors. The committee has also submitted suggestions regarding an in-house e-jurisdiction framework.

 

US/INTERNATIONAL

 

Amazon increases its minimum wage for US and UK employees.

Amazon said to increase its minimum wage for its US employees to $15/hour, and UK employees to £10.50 in London and £9.50 in other parts of the country, with effect from next month. The change will apply to all current and seasonal employees. The company said that it would also start advocating for an increase in the federal minimum wage.

 

Tesla meets its third quarter production goal for Model 3.

Tesla reported that it had met its Q3 production goal as it rolled out 53,239 vehicles within the period surpassing Q2 production by 28,578 vehicles, notwithstanding operational challenges. After its run in with the US securities regulator, Tesla is turning its attention back to being reliably profitable.

 

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