1. News
  2. Explained

SBI To The Rescue, Huawei Reveals AI Chips et al

Professor of Financial Economics and Part-time Value Investor, Transfin.
Oct 10, 2018 1:39 PM 3 min read

Good evening reader,


'Festival' season is creeping in, bringing with it trimmed work hours, extended vacations and an overall distracted workforce ;)


Apologies for the buzzkill. Let's hope the losses in productivity would hopefully get balanced by heightened consumption, so net-net from an economic perspective there is no reason to lose heart. Better?


The government agrees. In spite of the recent liquidity crunch, lofty fuel prices, Rupee woes, and volatile markets - consumption drives its festive narrative. Two initiatives:


First, the RBI announced an INR12,000cr injection into the economy via purchase of government bonds. This injection is part of open market operations aimed to manage liquidity in the system which is facing tightness. One wonder's if this should be viewed in conjunction with last week's zero basis point repo rate review.


Second, for our gold-obsessed nation, a Sovereign Gold Bond Scheme is launched - open for subscriptions from October 15th. This Scheme is largely positioned as a substitute for investing in physical gold, and comes across as an effort to reduce gold imports, limit current account deficit, and deter a Rupee sell-off while the masses chase the bullion, at least metaphorically.


Moving on to today’s Top 6 Business News in our End Of Day Wrap Up:




SBI offers to buy NBFC assets worth INR45,000cr in the aftermath of the IL&FS crisis.

State Bank of India offers to buy ‘good quality assets’ worth INR45,000cr from Non Banking Finance Companies (NBFCs) affected by IL&FS loan payment default. The bank had initially planned to purchase assets worth INR15,000cr, which has now been increased.
WhatsApp to store data locally, to comply with RBI's rule of data localization.
WhatsApp confirmed compliance with Reserve Bank of India’s rule to store transaction data within India for its payment gateway that has a million users in the country. It is the only major overseas player affected by the rule, which has agreed to the RBI guideline. The regulation was announced in April with a deadline of October 15.


Serious Fraud Investigation Office centers in on five subsidiaries of IL&FS for involvement in mismanagement and fund diversion.

These include IL&FS Transportation Networks Ltd, IL&FS Financial Services, IL&FS Energy Development, IL&FS Tamil Nadu Power and IL&FS Engineering and Construction. Together, these companies constitute more than 50% revenue of the group. SFIO was prompted into action last week after the government took over the management of IL&FS.


Russia based financial corp, VTB Group may seek independent bid for debt-laden Essar Steel.

VTB Group, a major partner in Numetal, may file for an application to bid independently for Essar Steel. This move comes after VTB’s initial plan to take over the company through Numetal Mauritius. The Supreme Court had earlier during the year ordered the parties interested in the takeover, Numetal Mauritius and ArcelorMittal, to clear all Non Performing Assets (NPAs) to be eligible for bidding of Essar Steel.




SoftBank plans to invest $15-20bn in WeWork for majority stake.

Japan-based SoftBank is in talks to buy majority stake in co-working space company, WeWork. The investment worth $15-$20bn is likely come from the company’s Vision Fund. A $4.4bn investment in August had given SoftBank a 20% ownership stake in WeWork.


Huawei reveals new artificial intelligence chips, pitting itself against Qualcomm and Nvidia.

Tech giant Huawei unveils two AI chips for cloud computing in an attempt to expand its presence in the AI industry, which is dominated by American players. The company claims that the new chipsets, Ascend 910 and Ascend 310 can process more data in lesser time, as compared to its competitors.


(We are now on your favourite messaging app – WhatsApp. We highly recommend you SUBSCRIBE to start receiving your Fresh, Homegrown and Handpicked News Feed.)