Vipin Sondhi appointed as new CEO and MD of Ashok Leyland. Ola reportedly lays off 500 employees to cut down losses. Boris Johnson leads Conservative Party to historic victory in UK general election.
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Press Friends: Union Finance Minister Nirmala Sitharaman, Chief Economic Adviser K V Subramanian and other top officials of the finance ministry addressed a press conference today. They spoke on various issues, including pre-budgetary consultations, GST hikes, the IBC, and the state of the economy. Highlights can be read here.
A Tale of Two Forecasts: S&P Global Ratings has forecasted India's GDP to grow at 5.1% for FY20 and has said that it would downgrade its rating if the economy doesn't recover. S&P however said the country’s long-term economic performance remained intact. BS
Bloomberg Economics has forecast that the Indian economy will see an upturn - but in FY2021. As per its forecast, GDP growth could rise from a possible 5.7% in FY20 to 7.1% in FY21. Business Today
On the Job: On Thursday, Ashok Leyland appointed Vipin Sondhi as its CEO and MD. Sondhi will head the automobile company for five years, with his term ending on 11 December 2024. The announcement comes after the resignation of former CEO Vinod Dasari in November 2018. More details here.
Ashok Leyland’s shares price rose 3.69% by close of bell on the news.
Your Ride has Ended: Ride-hailing service provider Ola has reportedly laid off 500 employees from its workforce to cut down losses. It could also be in the process to lay off up to 1,000 employees in the next six months. An Ola spokesperson said 5-7% of its workforce would be impacted. ET Auto
Jobs, Jobs, Jobs: As per a TeamLease-ET survey, vocational job salaries have consistently risen above salaries of those with engineering and MBA education from tier-3 or tier-4 institutes. For example, while an engineer or MBA graduate with five years of experience earns INR40,000 per month, a gemologist with similar experience earns over INR60,000 per month. But despite this salary difference, the thirst for white collar jobs is skewing India’s job market. Read more here.
Interview With the Robot: AI has penetrated several arenas of everyday and professional life. Hiring is no exception. Parents use AI to scan potential babysitters’ social media and there is no dearth of articles explaining how you can build a résumé that can “beat the bots”.
Recruiters are increasingly relying on AI, too. Last year, 67% of hiring managers and recruiters surveyed by LinkedIn said AI was saving them time. Click here to read how AI is changing the hiring process, and whether it is up to the task.
You’ve Been Served: As per a WSJ report, the US Federal Trade Commission (FTC) is considering seeking a preliminary injunction against Facebook over antitrust concerns over how its products interact. In addition to its core social network, Facebook’s family of apps includes Instagram, Messenger and WhatsApp.
The regulatory action could seek to halt Facebook’s ongoing plans (which it terms “interoperability”) to integrate its apps into one combined experience/platform. This could be argued on the grounds that such an action would be anticompetitive and monopolistic.
Devouring Delivery: As of August 2019, Amazon has delivered 46% of US packages bought on its e-commerce platform through its internal delivery arm Amazon Logistics. This is more than twice 20% figure only last year, as per a Morgan Stanley report released on Thursday.
The emergence of Amazon as a delivery behemoth is shaking the $900bn US logistics sector. Amazon Logistics – founded in late 2014 – is already shipping over 2.5bn packages annually in the country. While this number is lower than other big players in the sector (FedEx delivers 3bn packages and UPS handles 4.7bn), Amazon is catching up swiftly. By 2022, Amazon’s US package delivery volume could more than double to 6.5bn, far ahead of its delivery rivals. Forbes
Where the Money Comes From: Speaking of Amazon, it’s interesting to note that the majority of its profits – 70% – come from Amazon Web Services, which sells data storage and processing to companies. Click here to read more about the most important part of the Amazon empire.
Big Time Lucky: Boris Johnson’s gamble to call a snap December general election has paid him a rich dividend. His Conservative Party has won a resounding majority (they won 364 seats in a House that requires 326 for a majority) and its vote share of 45% is its highest since 1970.
The Labour Party, on the other hand, failed to capitalise on the enthusiasm that propelled it upwards in the 2017 snap election, which saw a hung Parliament in constant and bitter discord. Guardian
Brexit Beckons Bullish Boris: The biggest issue of the election was undoubtedly Brexit. And the biggest takeaway might as well be that the people of the UK are overwhelmingly fed up of years of gridlock and want Brexit to be resolved at the earliest.
And this resolution will involve getting Brexit done (which was also the Conservatives’ campaign slogan). Johnson’s deal with the European Union – which both parties have endorsed – will still need Parliament’s approval.
While this now seems to be an easy task, considering the Conservatives’ massive majority, it only marks the beginning of the Brexit process. Britain will still have to bilaterally negotiate a trade deal with the EU and other countries. CNN
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