Vodafone Idea and Airtel set to increase tariffs beginning December 1. ArcelorMittal expected to complete acquisition of Essar Steel by year end. Ford unveils its first ever electric car - and it's a Mustang crossover. Donald Trump meets Jerome Powell to discuss Fed's interest rates and state of US economy.
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Policy is King: The Winter Session of the Indian Parliament has begun, and the economic legislative agenda is quite heavy-duty. Some of the economic Bills that will be taken up in the coming days include the Companies (Amendment) Bill, the Taxation Laws (Amendment) Bill, the Insolvency and Bankruptcy (Second Amendment) Bill, the Competition (Amendment) Bill and the Multi-State Cooperative Societies (Amendment) Bill. An analysis of these Bills and their provisions can be read here.
Donald and Jerome Sitting on a Tree: US President Donald Trump and Federal Reserve Chairman Jerome Powell haven't exactly been best buds. Not that they ought to - the Central Bank of any country should not be pliable and influenced by the Executive, of course. But Trump's history of Twitter tirades against the Fed for not cutting interest rates further or not going negative are unheard of in recent American history. This added chemistry...or lack of it?...meant there was more interest than usual when the two men met on Monday to discuss the economy.
Trump said the meeting was "good & cordial" and that the two of them discussed interest rates, negative interest, low inflation, easing, Dollar strength & its effect on manufacturing, trade with China, EU & others, etc. Powell in his statement reiterated that the Fed's future decisions will remain non-political. And in separate meetings with panels on Capitol Hill, Powell said he felt that monetary policy was appropriate and likely to hold steady unless there are some significant changes in the economic outlook. CNBC
Shelling Out Cash: Telecom operators Vodafone Idea and Bharti Airtel are set to hike prices from December 1.
The move is perhaps an attempt to keep their businesses viable, after the two reported massive losses in the quarter ending September 2019, with combined losses standing at INR74,000cr. Here's a look at the tariffs both the players are currently offering.
Airtel noted that the telecom sector was highly capital intensive with fast changing technology cycles that require continuing investments. It was, therefore, extremely important that the industry remains viable to support the vision of Digital India.
However, despite of posting massive losses in the previous quarter, shares of both Vodafone Idea and Bharti Airtel have offered double-digit returns in the past three sessions.
Vodafone Idea share price climbed c. 38% in today's trade before closing at INR6.15 (+38.20%). Airtel share price gained nearly 19% before closing at INR444.65 (+8.66%). The gains were likely on the back of the telcos announcement of a tariff hike. ET Markets
Happy Ending: Global steel giant ArcelorMittal is expected to complete the acquisition of debt-ridden company by the end of this year following the Supreme Court's verdict on Essar Steel resolution plan.
The Supreme Court had on Friday asked ArcelorMittal to pay creditors for Essar Steel India, in the process scrapping a bankruptcy appellate tribunal’s order that had given secured and unsecured lenders equal right over the sale proceeds. Moneycontrol
Maybe Not: Tata Steel is planning to cut 3,000 jobs in its European operations, the company reported. The Indian steel giant cited oversupply and flat demand as the primary drivers. Reuters
No Rescue: NBFCs in India continue to suffer on the back of the credit crisis that rages on. Among four indicators compiled by Bloomberg News including liquidity and share performance, three were stuck in the same position as the previous month, with two at levels indicating weakness. Another gauge showed total outstanding debt increased at 50 financial firms and other companies impacted by the crisis.
Meanwhile, the government has taken more steps in the recent past to provide the shadow banks of India with the much needed fillip. Livemint
Bonus Read: Read here a recent speech delivered by the RBI Governor Shaktikanta Das at the First Annual Economics Conference, Amrut Mody School of Management, Ahmedabad University which discussed how the banking system in India is at a crossroads.
A New Horse Joins the Stable: "The day we decided this would be Mustang-inspired ... Everybody lit up."
That's what Darren Palmer, Ford's global head of product development for BEVs, said at Ford's all-electric, Mustang-inspired SUV.
The automobile was unveiled on Sunday ahead of the 2019 Los Angeles Auto Show. This battery-powered utility vehicle seeks to hit the EV market's sweet spot - off all the advanced technological benefits at an affordable price tag. But this wasn't always the plan.
Yesterday You Said Tomorrow, Tomorrow You Will Say Yesterday: For Ford, the future lies in its past. It's been 55 years since the first Mustang debuted. And at the launch of the new iteration of the iconic automobile - as an electric SUV - Ford leaned on its history to sell its future, exploiting the cult status of its brand name to sell its first crossover vehicle. Quartz
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