OYO to lay off 2,000 employees by January. Patanjali Ayurved completes acquisition of Ruchi Soya. Apple, Amazon and Google announce major partnership to build smart devices compatible with each other. US House of Representatives votes along party lines to impeach Donald Trump.
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Oyo-No!: Hospitality giant OYO is reportedly in the process of laying off about 2,000 employees across India by the end of January in order to save manpower costs and make some of its processes “more tech-enabled”. The divisions hit the most will be sales, supply and operations. ET Rise
Ayyo Rooms: SoftBank-controlled Yahoo Japan has quit its Japanese room rental venture, OYO (which is also backed by SoftBank) said on Thursday. It has now bought back the shares in Japanese apartment rental company OYO Life, held by Yahoo Japan. More details here.
How to Manage Wealth: Standard Chartered Bank's Wealth Expectancy Report 2019 showed that India's rich have a wealth expectancy of $518,000 (wealth expectancy is the net worth that rich individuals are estimated to have at the age of 60).
As per the report, High Net Worth Individuals (HNWIs) have a wealth expectancy of $986,000 followed by $374,000 for the affluent and $195,000 for the emerging affluent.
“India remains one of the most buoyant economies in the world, with a growing class of wealthy citizens to match. Yet Indian wealth creators have relatively small wealth expectancy, including a low level of statutory pensions, resulting in a large wealth expectancy gap: only 32% will achieve more than half of their aspirations, and 68% will be less than halfway there," said the report. Livemint
All Fall Down: Caught in a credit squeeze, India Inc began to pledge shares to raise money. Now, caught in a credit squeeze, as mutual funds have assumed the rule of lenders, that deck of cards could be collapsing with an overuse of loans against shares. Read more here.
Entry by Invitation Only: Baba Ramdev-led Patanjali Ayurved hascompleted the acquisition of debt-ridden edible oil firm Ruchi Soya in a INR4,350cr resolution plan.
Patanjali has settled INR4,350cr of dues Ruchi Soya towards its financial creditors by infusing INR1,100cr equity and arranging another INR3,250cr via debt.
The National Company Law Tribunal (NCLT) had in December 2017 ordered start of insolvency proceedings against Ruchi Soya on application of Standard Chartered Bank and DBS Bank. CNBC TV18
The National Company Law Appellate Tribunal (NCLAT) yesterday restored former Tata Group Chairman Cyrus Mistry as the Chairman of the Group. It also held the appointment of N Chandrasekaran, the current Chairman of Tata Sons, as Executive Chairman as "illegal".
Won't Sit Back: The Ministry of Corporate Affairs (MCA) plans to challenge the ‘illegal’ order of the National Company Law Appellate Tribunal (NCLAT) order, which allowed conversion of Tata Sons from a public entity to a private one, in the Supreme Court.
The NCLAT order clearly mentions that “the decision of the Registrar of Companies (RoC) changing the company (‘Tata Sons’) from a ‘public company’ to a ‘private company’ is declared illegal and is set aside. The company (‘Tata Sons’) shall be recorded as a ‘public company’. RoC will make correction in its record showing the company (‘Tata Sons’) as ‘public company’.” Moneycontrol
Arch-Rivals Apple, Amazon and Google have announced that they’re working with the Zigbee Alliance, a foundation that promotes standards for the Internet of Things, and its members including Samsung Electronics, Somfy SA and IKEA, on a new standard that will ensure their products work with one another.
The plan is to develop and promote the adoption of of a new, royalty-free connectivity standard to increase compatibility among smart home products, with security as a fundamental design tenet. Business Insider
American designer, developer, manufacturer and global supplier of semiconductor and infrastructure software products Broadcom is looking to sell one of its wireless-chip units, a move that would accelerate the company’s shift away from its roots as a semiconductor maker.
Broadcom is working with Credit Suisse to find a buyer for its radio-frequency unit, a segment of its wireless-chip business that makes filters used in cellphones to clarify signals, which could be worth $10bn. Reuters
Trump Stumped: As expected, the US House of Representatives has voted to impeach President Donald Trump. And as expected, it has voted almost entirely along party lines.
The charges against Trump – abuse of power and obstruction of Congress – relate to his pressing the Ukrainian government to investigate Joe Biden (former US Vice President and Democratic Presidential rival).
On the first charge, the vote stood at 230-197 while on the second charge it was 229-198. WSJ
The matter now moves to the Senate, which, unlike the House, is controlled by Trump’s Republican Party. Therefore, Trump is likely to be acquitted after the January trial ends. Presently, Trump remains very much President of the United States.
Throughout American history, only two Presidents have been impeached – Bill Clinton and Andrew Johnson. Both were acquitted by the Senate.
How Markets Reacted: Globally, market reaction to Trump’s historic impeachment has been limited since investors and observers widely expect the Republican-majority Senate to acquit him. More details here.