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Yes Bank Acquires 30% Stake in Reliance Power Arm and Other Top Business News Today

Yes Bank share price rises nearly 7% as it acquires 30% stake in Reliance Power arm. Government could offer incentives to Apple and Samsung suppliers to open factories in the country. US, China set to sign massive purchases deal as trade war shows signs of easing.

 

TECH

As Amazon's Jeff Bezos arrives in India, protests and an antitrust investigation welcome him.

Bezos in India: Jeff Bezos is in India this week and he had some important announcements to make.

 

“Over the next five years, Amazon will invest an incremental $1bn to digitise micro and small businesses in cities, towns, and villages across India, helping them reach more customers than ever before,” Amazon's founder said in a statement. “This initiative will use Amazon’s global footprint to create $10bn in Indian exports by 2025."

 

India is an important emerging market for global players like Amazon. According to the company, it has amassed over 500,000 sellers in India, whose e-commerce market is projected to grow to $150bn in the next three years.

 

But Bezos was welcomed with more than a red carpet. Protests and an antitrust probe also greeted the world's richest man.

 

The Confederation of All India Traders (CAIT), a trade group representing 60m merchants across the country, said it was organising protests in 300 cities to publicise what they describe as predatory pricing and anti-competitive practices of Amazon (and Flipkart). And only two days ago, the Competition Commission of India (CCI) opened an antitrust probe into the e-commerce giants to find whether they have exclusive arrangements with smartphone vendors and are giving preferential treatment to some sellers. TechCrunch

 

Government could offer incentives to Apple and Samsung suppliers to open factories in the country.

Inciting Incentives: India is considering a plan to offer subsidised loans to mobile handset manufacturers in a bid to attract Apple And Samsung suppliers to open factories in the country. Click here to read more details.

 

BANKING

Yes Bank share price rises nearly 7% as it acquires 30% stake in Reliance Power arm.

Rising from the Ashes: Yes Bank share price today rose nearly 7% before closing at ?39.90 (+3.50%) following news that the private lender has acquired 30% stake in a Reliance Power subsidiary Rosa Power Supply Company through invocation of pledged shares.

 

Yes Bank has acquired 12.7cr shares, having a nominal value of ?10 each per share, worth 29.97% stake in Rosa Power Supply Company Ltd (RPSCL), a wholly owned subsidiary of Reliance Power. Moneycontrol

 

Top banks in India are set to roll out a system that will give consumers access to their financial data, also allowing them to share it instantly.

Banking Together: Backed by the RBI, top banks in India are gearing up to roll out a system that would give consumers access to their financial data, also allowing them to share this information.  

 

How Would This Work?: The “account aggregator” system will be offered by banks and licensed by RBI. The RBI will also be regulating the process of data collection and sharing. By logging into authorized apps, users will be able to pull together all kinds of financial data, including spending patterns, bill repayment, tax returns, business transactions, which they can then choose to share instantly and temporarily in pursuit of loans, investment products or even insurance. Click link for the full scoop. 

 

COMPANIES

OYO to lay off nearly half its employees in the cloud kitchen vertical.

We Have to Let You Go: Hospitality platform OYO will lay off near 45%-50% of the total of 300 employees in its cloud kitchen vertical, as per sources. 

 

The news comes shortly after OYO reported that it plans to shed over 1,200 employees in India over the next three to four months in a bid to control burn rate, get rid of over-hiring and explore a sustainable path this year. Entrackr

 

OYO had launched several brands including Adraq, O Biryani under its cloud kitchen business in February last year.

 

Jio and UVARC emerge as top bidders for RCom assets and subsidiaries.

A Bid You Can't Resist: Reliance Jio and and Delhi-based UV Asset Reconstruction Company (UVARC) are learnt to have emerged the highest bidders for the assets of Reliance Communications (RCom) and its subsidiaries. The combined bid amount is ?21,000cr ($2,968m).

 

UVARC has offered to pay about ?16,000cr ($2,261m) for the spectrum, real estate, and enterprise and data centre businesses of RCom and Reliance Telecom, which houses these assets. BS

 

MARKETS

2019 might have boded well for Wall Street, but fear of lower interest rates cutting into profits looms large.

2019 seems to have been a rather good year for Wall Street. "Trading of stocks and bonds rebounded after a terrible end to 2018 and consumers spent tons of money on their credit cards, buoyed by a strong job market and steady economic growth", reported AP news. To add to this, JPMorgan Chase reported a record annual profit, while Citigroup posted its best results since before the Great Recession.

 

Inspite of this, there is an underlying fear that going forward, lower interest rates will slow down Wall Street, especially considering that The Federal Reserve cut interest rates three times in 2019, each time by a quarter of a percentage point, which has started to cut into banks’s interest income - the difference between what a bank charges for loans and what it pays out on deposits — which has been a major profit driver in the last couple of years. Click here for a deep dive into the matter. 

 

Extra Crunch: In an interview with ETNOW, Aswath Damodaran, Professor of Stern School of Business at New York University, said that we now live in a world that’s different from what it was before the 2008 crisis, and we may live in a world of low interest rates and high risk premiums for a long time. Read the full interview here.

 

US-CHINA

US, China set to sign massive purchases deal as trade war shows signs of easing.

Calling Truce?: After 18 months of a bitter trade conflict, the US and China are looking to reduce tensions as they sign Phase One of a trade deal on Wednesday.

 

Details about the deal have begun to emerge. China has pledged to purchase an additional $200bn worth of US goods over two years to cut a bilateral trade deficit that peaked at $420bn in 2018. Beijing will boost energy purchases by some $50bn and services by $35bn, while agricultural purchases will get a $32bn lift over the two years, all compared to a 2017 baseline of US exports to China. The goods China will buy more of from the US include aircraft, autos and car parts, agricultural machinery and medical devices.

 

US President Donald Trump and Chinese Vice Premier Liu He are scheduled to sign the 86-page document at the White House on Wednesday. Reuters

 

Not the End: A preliminary trade deal won't completely normalise relations between the world's two largest economies. Many issues remain. One of the main ones is technology. Washington regards Huawei as a national security threat, is cracking down on firms using Chinese telco equipment in the US and abroad, and is mulling restrictions on sales of any US technology to China. WSJ

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