1. Oil’s Slide Below $30 Sends Shockwaves Far and Wide: Reuters
US oil stumbled below $30 for the first time in 12 years to levels that threaten the survival of many US shale firms, spur more belt-tightening by oil majors and spell more pain for crude-producing nations and regions.
A seven-day losing streak fuelled by concerns about a continued supply glut and fragile demand from China, the world’s No. 2 consumer, wiped out almost a fifth of crude prices this year and 70 percent since mid-2014.
Traders have all but given up attempting to predict where the new-year rout will end, with momentum-driven dealing and overwhelmingly bearish sentiment engulfing the market. Some analysts warned of $20 a barrel; Standard Chartered said fund selling may not relent until it reaches $10.
Read more here.
2. Amazon and Future Group Partnership on Rocks over Funding of Discounts : ET
The high-profile exclusive partnership between Amazon and Kishore Biyani’s Future Group, once touted as a grand offline and online marriage that would usher in a new era of retailing in India, is on the rocks, the Economic Times reports.
Differences have cropped up over funding of discounts — a regular feature on online shopping in India — on Future Group’s portfolio of fashion brands sold on Amazon.
3. Strategic Debt Recast May Hit Banks’ Credit Growth: BS
The Nifty PSU Bank index comprising public sector banks (PSBs) hit a fresh 22-month low on asset quality concerns and probable losses from the strategic debt restructuring (SDR) scheme announced by the Reserve Bank of India (RBI) in June 2015, according to a Business Standard report.
Though SDR provides hope to investors of debt-laden entities, experts believe the burden on banks is set to swell. Under SDR, banks can convert their debt to equity and take controlling stake of 51 percent (or more) in these companies; a move which would vest more power with banks to revive operations of these businesses.
4. SC Reserves Verdict on PIL Against 4G Licences to Reliance: FE
The Supreme Court has reserved its verdict on a PIL by an NGO challenging the grant of 4G licences to Mukesh Ambani’s Reliance Jio Infocomm (RJIL), with the Centre refuting the allegation of any wrongdoing.
According to a Financial Express report, the case alleged that spectrum bid was a ‘benami’ bid submitted by company named Infotel, which was acquired by Reliance group hours after it had won the 20 MHZ spectrum. Infotel had submitted a bid of Rs 12,000 crore and the company was transfered to Reliance on the day of the bidding.
5. Govt, RBI Wary as Factory Output Declines, Retail Inflation Increases: Livemint
A sudden drop in factory output in November indicating the weakness of what seemed like a revival in growth and a rise in retail inflation fuelled by rising food prices could complicate matters for the government in the run-up to Budget and for the Central bank ahead of its bi-monthly monetary policy review next month, the Livemint reports.
India’s Index of Industrial Production (IIP) contracted 3.2 percent in November after rising to a five-year high in the previous month, while retail inflation accelerated to a 15-month high of 5.61 percent in December.
6. TCS Numbers Disappoint Yet Again: BS
Tata Consultancy Services, India’s largest IT services company, on Tuesday reported financial numbers mostly in line, though the revenue narrowly missed the consensus analysts’ estimates, in a traditionally weak December quarter. This is for the sixth quarter in a row that the Mumbai-headquartered company misses the Street’s revenue estimates even as analysts had scaled down their expectations. However, it beat analysts’ net profit estimates.
In the quarter ended December 31, 2015, TCS reported a net profit of Rs 6,109.5 crore, a growth of 12.2 per cent compared to the same period last year. The revenue at Rs 27,364 crore grew 11.7 per cent on a year-on-year (y-o-y) basis.
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7. Shopclues Joins Billion-Dollar Club With Funding Valuing Co at Rs 7,300 Cr: ET
ShopClues became the latest Indian ecommerce firm to enter the coveted billion dollar valuation club, snapping at the heels of Snapdeal and Paytm with an online bazaar that sells anything from unboxed mobile phones to cow dung, reports the Economic Times.
ShopClues estimated that it is now valued at more than $1.1 billion (Rs 7,300 crore) following undisclosed funding led by Singapore’s sovereign wealth fund GIC. The online retailer said this was its last fundraise before a public listing of its shares next year.
8. Rafale Deal in Last Lap, May Cost Rs 60,000 Crore for 36 Fighters: ET
India is closing in on the final details of the Rafale fighter deal ahead of French President Francois Hollande’s visit, with the cost of the contract for 36 fighters expected to cross Rs 60,000 crore, sources told Economic Times.
A high-powered delegation, which includes National Security Advisor Ajit Doval, is currently in Paris. Doval was instrumental in India’s decision to opt for the purchase of the French fighters last year. Most of the trickier parts of the deal- including offsets and the weapons package— are said to have been resolved.
9. Jewellery Trade May See 20-30% Sales Loss over New PAN Norms: FE
The jewellery industry is likely to suffer a business loss of 20-30 percent across the country with the implementation of mandatory quoting of permanent account number (PAN) by consumers according to a Financial Express report. The new norm has come into effect from January 1, 2016 for all transactions worth Rs 2 lakh and above.
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