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TVS Motor Company Acquires British Sporting Motorcycle Brand Norton

Professor of Financial Economics and Part-time Value Investor, Transfin.
Apr 19, 2020 3:25 AM 5 min read
Editorial

TVS acquires British sporting motorcycle brand Norton. Eros International to merge with STX Entertainment. Google developing smart debit card to compete with Apple. IT companies defer increments and promotions, but assure of no layoffs. 

 

  

ECONOMY

Centre makes prior Government approval mandatory for FDI from countries that share a land border with India.

The Centre has made prior Government approval mandatory for foreign direct investments (FDI) from countries which share a land border with India. Previously, only investments from Pakistan and Bangladesh faced such restrictions. The move is likely to restrict Chinese investments in the country. 

 

The revised FDI policy is aimed at “curbing opportunistic takeovers/acquisitions of Indian companies due to the current COVID-19 pandemic,” said a press release from the Department for Promotion of Industry and Internal Trade on Saturday. [Livemint]

 

India's forex reserves swell to $476.48bn.

Kitty Swells

India's foreign exchange reserves rose by $1.82bn to $476.48bn in the week ended April 10th.

 

Previously, the forex reserves had declined by $902m to $474.66bn in the week to April 3rd, due to the fall in foreign currency assets. [Moneycontrol]

 

'Additional measures, economic stimulus to be provided soon,' says FM.

We Promise More

India will soon roll out additional measures and economic stimulus to assist the industry and help the poor overcome the financial fallout of coronavirus, assured Finance Minister Nirmala Sitharaman. 

 

Participating in the 101st meeting of the Development Committee Plenary of the World Bank, she also mentioned that India would continue to supply critical medicines to needy countries for the treatment of COVID-19 patients. [NDTV]

 

DEALS

Eros International to merge with STX Entertainment. 

 Lights, Camera, Action

Indian movie producer and distributor Eros International has announced an all-share merger with US-based media and entertainment company STX Entertainment to create an equally-held global entertainment company.

 

The deal will give rise to a new entity named Eros STX Global Corporation worth $1bn. [Variety]

 

TVS acquires British sporting motorcycle brand Norton.

The Road Runner

TVS Motor Company Ltd has acquired the iconic British bike manufacturer Norton Motorcycles (UK) Ltd in an all-cash transaction of £16m ($19m), by acquiring certain assets of Norton Motorcycles, through one of TVS Motor’s overseas arms, the company said in a regulatory filing. [BS]

 

TELECOM

Bharti Airtel and Vodafone Idea extend validity of pre-paid mobile plans till May 3rd. TRAI hikes international call termination rates to 35-65 paise/min. 

Working Hard or Hardly Working?

Bharti Airtel and Vodafone Idea have extended the validity of pre-paid mobile plans till May 3rd for those users who could not recharge their account due to extension in the lockdown period.

 

The extension in validity altogether benefits around 12 crore customers.

 

It will enable customers to continue getting incoming calls even if they are unable to recharge their account till May 3rd.

 

Bharti Airtel and Vodafone Idea had earlier extended validity till April 17th of pre-paid account holders. [Deccan Herald]

 

The Telecom Regulatory Authority of India (TRAI) has raised International Termination Charges (ITC) to 35-65 paise/min from the current 30 paise/min, bringing it under the forbearance regime, in a move to ensure a level-playing field between standalone and integrated International Long Distance Operators (ILDOs).

 

TRAI has also mandated operators to offer non-discriminatory rates for such termination charges to everyone. 

 

ITC is a charge payable by an Indian ILDO that carries the call from outside the country to access provider in the country in whose network the call terminates. [Hindu BusinessLine]

 

COMPANIES

IT companies defer increments and promotions, but assure of no layoffs. 

Your Big Promotion May Be Delayed

IT companies in India have already held back salary increments and promotions or are expected to do so very soon in order to conserve cash as they gear up to battle the crisis triggered by the coronavirus pandemic.

 

While industry leaders Tata Consultancy Services (TCS) and Wipro have already announced deferring wage-hike plans, other players such as Infosys and HCL Technologies are expected to follow suit soon, as per industry insiders.

 

This is vastly different from the approach undertaken by global peers, couple of whom have announced salary hikes for a large portion of their employee base in India. For instance, French IT services and consulting major Capgemini and US-headquartered Cognizant have effected salary hikes, apart from giving out of turn increments, to help employees during this time of crisis. [BS]

Consumer-products giant Procter & Gamble reported its biggest US sales increase in decades as Americans stocked up on household essentials in wake of the coronavirus pandemic.

 

P&G reports US sales increase in decades.

P&G said organic sales, a measure that excludes currency moves and deals, rose 6% for the quarter. Sales rose 10% in the US and fell 8% in China, a far less severe decline than the company said it expected. [CNBC]

 

 

PERSONAL FINANCE

Google developing smart debit card to compete with Apple.

Mirror Mirror on the Wall...Who's the Smartest of All?

Tech giant Google is reportedly developing its own smart debit card to compete with that of Apple's. 

 

The Google card and associated checking account is expected allow users to buy things with a card, mobile phone or online.

 

It is expected to connect to a Google app with new features that let users easily monitor purchases, check their balance or lock their account. The card will be co-branded with different bank partners, including CITI and Stanford Federal Credit Union. [TechCrunch]

 

Health insurance to cost up to 25% more, cover more diseases.

Health with an Increased Price Tag

Health insurance policies in India are poised for an overhaul that will make them more customer friendly.

 

Getting a health insurance might be a tricky business. And taking cognisance of this fact, the Insurance Regulatory and Development Authority has set September 30th as the deadline for all health policies to be standardised across health insurers with similar inclusions and exclusions and uniform language in policy documents and brochures.

 

Besides this, the coverage will widen, including diseases such as mental illness, obesity, menopause, Alzheimer, Parkinson and even robotic surgeries. [Business Today]

FIN.

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