QBiz: Pichai for Free Data Flow; Petrol, Diesel Prices Stay High
Here are the top business stories of the day.
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1. Petrol, Diesel Prices Scale New Highs
Petrol and diesel prices set new records Sunday, 9 September, as they continued their upward march on fall in rupee and surge in global crude oil rates.
Petrol price was, on Sunday, raised by 12 paise a litre and diesel by 10 paise per litre, according to the price notification issued by state fuel retailers. The increase pushed the petrol price in Delhi to Rs 80.50 per litre. Diesel rate touched its highest level of Rs 72.61 a litre.
Fuel prices in Delhi are the cheapest among all metros and most state capitals due to lower taxes. Opposition parties have called for a nation-wide ‘Bharat Bandh’ on Monday (10 September) to protest against the spiralling fuel prices. They blame the government’s unwillingness to cut excise duty for the high fuel prices and consumer burden.
(Source: The Hindu Business Line)
2. Pichai for Free Flow of Data, Writes to Centre
Google CEO Sundar Pichai has written to Union IT Minister Ravi Shankar Prasad that free flow of data across borders will encourage start-ups to innovate.
“Free flow of data across borders — with a focus on user privacy and security — will encourage start-ups to innovate and expand globally and encourage global companies to contribute to India’s digital economy,” Pichai said in a ‘thank you’ letter to the Minister of Electronics and Information Technology, who had visited Google’s headquarters in California recently. BusinessLine has seen the letter.
The proposed Personal Data Protection Bill 2018, which talks about locating a server or a data centre in India, is being criticised by companies and industry bodies such as Nasscom and its Data Security Council, as also the Broadband India Forum. Companies such as Google will be affected as most of its revenues comes from advertisements globally.
(Source: The Hindu Business Line)
3. Here Are New RBI Guidelines to Exchange Post-Demonetisatation Notes
The RBI has issued new guidelines through a gazetted notification for all notes which were issued post note ban. There was a lack of clarity of how to exchange Rs 2000 and Rs 200 notes introduced after demonetisation.
While there are clear rules to replace notes worth Rs 5, 10, 20, 50, 100 and 500, people were unsure how to exchange old Rs 200 and Rs 2000 notes.
For full refund of a damaged Rs 2000 note, the undivided areas of the single largest piece should be at least 88 square cm for full refund and 44 square centimeters for half refund. The 2000 note is currently 109.56 square centimeters.
For damaged Rs 200 note, the criteria is 80 sq cm for a full refund and 40 sq cm for a half refund.
(Source: DNA)
4. Only 33 Percent Indians Save Regularly for Retirement, HSBC Report Says
Only a third in India are regularly saving for their retirement while just 33 percent of working-age respondents globally are putting anything aside for their later life, according to a report.
The lack of saving is likely linked to low knowledge of how much money is needed in retirement, as well as many prioritising their immediate financial situation over planning for their older years, according to HSBC’s the ‘Future of Retirement: Bridging the Gap’ report.
“For many, retirement is thankfully no longer a short period tacked on to the end of our life. It can be a long and very fulfilling part of a person’s life. “But with that, our needs at 65 can be very different from our needs at 75 or 85, with very different financial implications,” HSBC India head of retail banking and wealth management Ramakrishnan S said.
(Source: Livemint)
5. Despite Donald Trump’s Tweet, Ford Says It Won’t Make Hatchback in US
Ford won’t be moving production of a hatchback wagon to the United States from China — despite President Donald Trump’s claim on Sunday, 9 September, that his taxes on Chinese imports mean the Focus Active can be built in America.
Citing Trump’s new tariffs, Ford on 31 August said it was dropping plans to ship the Focus Active from China to America.
Trump took to Twitter Sunday to declare victory and write: “This is just the beginning. This car can now be BUILT IN THE USA and Ford will pay no tariffs!”
But in a statement Sunday, Ford said “it would not be profitable to build the Focus Active in the US” given forecast yearly sales below 50,000.
For now, that means Ford simply won’t sell the vehicle in the United States.
(Source: Financial Express)
6. Indian Insurance to Be $280 Billion Industry by 2019-20: ASSOCHAM
The Indian insurance industry is expected to grow to $280 billion by 2019-20, aided by the Centre’s Ayushman Bharat health insurance scheme, industry chamber Assocham said on Sunday, 9 September, citing a joint study conducted with research firm APAS.
In a statement in Delhi, Assocham said the study indicated insurance penetration in the country to have reached 3.7 percent in 2017, from 2.71 percent in 2001, and that gross premium had increased from Rs 3.2 lakh crore ($49 billion) in 2011-12 to reach Rs 5 lakh crore ($72 billion) in 2017-18.
“The Indian insurance industry is expected to grow to $280 billion by FY2020 with the government’s flagship Ayushman Bharat and other growth drivers like rising disposable incomes, presence of global players and easing of the regulatory regime, helping penetration of the insurance culture in the country,” the study said.
(Source: Financial Express)
7. Essar Steel Insolvency Case: Second Round Bids to Open on Monday
The second round of bids for Essar Steel will be opened in the presence of lenders on Monday, sources close to the development said.
The offers by three bidders — Numetal (minus Aurora Enterprises), ArcelorMittal, and Vedanta — will be opened in line with the 7 September order of the National Company Law Appellate Tribunal (NCLAT). Numetal was joined by JSW as an investor in a step-down subsidiary and ArcelorMittal with Nippon Steel.
In the second round, Numetal had dropped Aurora Enterprises, of which Rewant Ruia is the ultimate beneficiary, which made its bid eligible. Rewant Ruia is the son of Ravi Ruia, a promoter of Essar. According to the NCLAT order, ArcelorMittal has time till 11 September to clear its dues on account of defaulting firms, Uttam Galva Steels and KSS Petron, to become an eligible bidder for Essar.
(Source: Business Standard)
8. India May Impose Anti-Dumping On Certain Type Of Chinese Steel
India may impose anti-dumping duty of up to $185.51 per tonne for five years on certain varieties of Chinese steel with a view to guard domestic players from cheap imports of the commodity from the neighbouring country.
JSW Steel Ltd, Sunflag Iron & Steel Co. Ltd, Usha Martin Ltd, Gerdau Steel India, Vardhman Special Steels Ltd and Jayaswal Neco Industries Ltd. had jointly filed an application for initiation of investigations and levying of anti-dumping duties on the steel.
In its anti-dumping investigations, the Directorate General of Trade Remedies has stated that dumped imports of 'straight length bars and rods of alloy steel' from China have increased in absolute terms during the period of probe (2016-17).
It said that the dumped imports are undercutting the prices of the domestic industry and due to this the domestic industry's profits, return on capital employed and cash profits have declined during 2016-17.
(Source: BloombergQuint)
9. SEBI May Summon ICICI Bank CEO Chanda Kochhar Soon
The Securities and Exchange Board of India (SEBI) may soon summon ICICI Bank Ltd’s on-leave CEO Chanda Kochhar and her husband Deepak Kochhar as part of an investigation into alleged regulatory lapses with regard to his business dealings, officials said on Sunday, 9 September. Other top officials of the bank, as also from Videocon Industries Ltd—which allegedly benefited due to its association with Deepak Kochhar—are also likely to be called for personal hearings.
According to top officials, the multi-agency probe into ICICI Bank and business dealings of Kochhar family will also be discussed by the SEBI board next week. Coordinated efforts are required to be taken by SEBI, the Reserve Bank of India and the government in the Videocon loan case due to ICICI Bank’s systemic importance in the Indian banking.
ICICI Bank and Chanda Kochhar have been maintaining there has been no regulatory violation on their part and that she was not aware of specific business dealings of her husband.
(Source: Livemint)
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