Tata Motors posts record loss of $3.8bn in Q3. BigBasket inches closer to unicorn tag. Earth's magnetic north pole drifting east.
Now to Today's Top Business News Stories in Our End Of Day Wrap Up:
Tata Motors posts record loss of $3.8bn in Q3.
What Went Down: Tata Motors posted the biggest-ever quarterly loss in Indian corporate history on Thursday as the automobile manufacturer reported a whopping loss of $3.8bn in Q3 on back of lower Jaguar Land Rover sales in China, Brexit woes and an overall weaker business for diesel cars that account for bulk of its sales in Europe.
FYI: The loss reported is half of Tata’s current market capitalization of $6.1bn. Let that sink in.
…And We All Fall Down: Shares of Tata Motors tanked over 29% on Friday before closing at INR150.15 (-17.88%) as the news came in. No surprises there!
Should You Sell?: Maybe not. See what the experts are saying here.
RBI Governor stands firm on bad loan recognition rules. Risk weights eased for bank loans to NBFCs. Rate cut may not benefit retail lending immediately.
No Compromise: RBI Governor Shaktikanta Das reiterated his stand on the February 12 RBI circular that tightened bad loan recognition rules.
Background: The circular directed lenders to refer any loan account over INR2,000cr under the Insolvency and Bankruptcy Code (IBC), if it is not resolved within 180 days of default.
Relaxation to NBFCs: The Central Bank eased risk weight for bank loans to Non-Banking Financial Companies (NBFCs), permitting banks to assign risk weights to exposures they have to NBFCs depending on ratings given to them by accredited credit rating agencies (which would be lower than the current 100% risk weight).
Also This: RBI is also likely to harmonise categories of NBFCs and bring asset finance companies, infrastructure finance firms and infrastructure debt funds under one category. This is expected to reduce the complexities arising from multiple categories and provide the NBFCs greater flexibility in their operations.
We Regret The Inconvenience Caused: As per a Livemint report,the transmission of cut in policy rates may be a challenge due to margin pressure.
Too Little Too Late: The RBI rate cut announced yesterday may augment the current dispensation’s position in the upcoming elections. However, some say that it is too little and too late to be a decisive factor. Read more here.
BigBasket inches closer to unicorn tag.
Unicorn Buzzer On: Bengaluru-based grocery delivery platform BigBasket is set to raise $150m in fresh round of funding that would value the startup at $1bn, marking its entry into the unicorn club.
Zoom Out: Existing backer Alibaba is leading the latest fundraising, along with new investors UK government-owned CDC Group and South Korea’s Mirae Asset Global Investments.
Today’s Star: Zoho, the Chennai-based software company which offers a cloud software suite and SaaS applications for businesses, is an outlier for many reasons, right from shunning venture capital funding to refusing a $25m+ acquisition offer from Salesforce.com during its early days. Read this article to know how.
Tesla to acquire EV battery manufacturer Maxwell Technologies in a $218m deal.
Pivot: The purchase will mark Tesla's deviation from its longtime approach of building EV batteries in-house, perhaps a necessary strategic pivot as EV competition toughens.
Expanding Presence: In a bit to expand its online presence, Tesla will now sell its branded merchandise on Amazon, which were until now being sold exclusively through the automaker’s own website.
And It Only Gets Better: Tesla's Model 3 claims top spot as the best-selling luxury car in America having sold 146,000 units in 2018. That's surprising for a number of reasons. Click here to know why.
Earth's magnetic north pole drifting east.
Better Check the GPS: Earth's northern magnetic pole is quickly drifting away from the Canadian Arctic towards Siberia at about 34 miles a year. This rapid shift has forced scientists to release an update of where the magnetic north really is, nearly a year ahead of schedule.
But Why?: Scientists believe the reason for this shift to be turbulence in the liquid outer core of our planet. This is part of a larger phenomenon known as Geomagnetic reversal where north and south pole change polarity. It has happened numerous times in Earth’s past, but not in the last 780,000 years.
Is the World Ending?: Well, not really. The most affected from this shift are navigation systems employed by airplanes and ships which rely on the magnetic north as a point of reference. This change also affects birds that use the magnetic field as a means for navigation. Read more on this here.
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