The Nikkei Asian Review reported that Apple Inc plans to cut its production for its three new iPhone models by about 10% for the January-March quarter. The company had last week also cut its quarterly sales forecast. The downward revision in the sales forecast was marked by the slowing demand for iPhones in China, the world’s largest smartphone market. Many analysts and consumers have said the new iPhones are overpriced.
Mercedes Benz India Ltd, the country’s largest luxury car manufacturer, on Wednesday said that it has achieved its best even annual sales in India in 2018. The sales were up by 1.4% to reach 15,538 units as compared to the previous year when the company sold 15,330 units. This was the company’s second consecutive year when the sales crossed the 15,000 mark.
In September 2018, RBI had asked Rana Kapoor, Yes Bank CEO to step down by the end of January 2019, sending its stock plunging and causing several resignations from its board. Yes Bank Ltd said on Wednesday that it has finalised the potential candidates for the position of chief executive officer. They will now seek approval from the Reserve Bank of India (RBI) for the CEO appointment, and will make the relevant disclosures after the RBI’s approval.
As per Federation of Automobile Dealers Associations (FADA), sales of passenger vehicles dropped by 3% to 202,585 units in December compared to a year earlier. December has always been a healthy month for retail sales of automobiles as most firms try to clear inventories at the dealer’s end before the new calendar year begins. The discounts offered during this period are also significantly more compared with the rest of the year.
The RBI has refused to give any special exemption to lenders of Infrastructure Leasing & Financial Services (IL&FS) on asset classification. The central bank has asked them to classify the loans as non-performing (NPA) if they are overdue by more than 90 days. IL&FS owes over Rs 50,000 crore to banks. The lenders had sought a six month moratorium period on asset classification of their exposure to IL&FS since NCLAT had stayed all proceedings against IL&FS group and its 348 firms through an interim order on a petition moved by the government.
Sri Lanka's Central Bank on Wednesday said that the Reserve Bank of India (RBI) has agreed to provide $400 million under a swap arrangement. The apex bank of Sri Lanka said that the arrangement will help the island nation maintain adequate level of external reserves while accommodating outflow related to imports, debt servicing and currency support. The RBI has agreed to provide the funds under its SAARC (South Asian Association for Regional Cooperation) Swap Facility, the Central Bank said.
According to data from the RBI, Foreign Direct Investment (FDI) inflows into India touched a six-month high in October 2018 at $6.54 billion. FDI inflows in April were $6.7 billion. The increased flows were primarily driven by the rupee depreciation which hit a record low of 74.48 a dollar on October 11, making it Asia’s worst-performing currency. In November, according to the World Bank’s Ease of Doing Business Index, India jumped 23 places to rank 77th, becoming the top-ranked country in South Asia for the first time and third among the BRICS nations.
India has initiated payments to Iran for its oil imports in rupees, a senior UCO bank official said on Tuesday. This is the first payment since the new sanctions were imposed against Tehran in November by US. India has been among the eight nations to receive a six-month waiver by US administration to import oil from Iran. India is third largest oil importer in world. India favours oil imports from Iran since it offers free shipping and an extended credit period, while Iran will use the rupee funds to mostly pay for imports from India.
The Bangalore Income Tax Appellate Tribunal (ITAT) has barred auditors from issuing valuation certificates to their auditee companies, particularly for the purpose of share valuation. The ruling is set to affect several tax litigations involving company valuations including angel tax on start-ups. Tax officials have often disputed the high valuation of start-ups which ultimately led to levy of angel tax. The tax department has started issuing show-cause notices to valuation experts questioning the valuations certified by them and subsequent high share premiums received by the start-ups from angel investors even where the revenue and profitability has constantly declined.
Saudi Arabia-based the Arab Petroleum Investments Corporation (APICORP) in a report said that oil prices are likely to trade in the $60 to $70 per barrel range by mid-2019. Oil prices remained stable on Tuesday on the back of a possible trade pact between the world's two largest economies, the US and China, putting an end to the ongoing tariff war. International Brent crude futures were trading at $57.43 per barrel.
Seven of the world’s top 10 economies by 2030 will likely be current emerging markets. As per Standard Chartered Plc. forecasts, China is projected to be the largest economy by 2020 using purchasing power parity exchange rates and nominal GDP. India will likely be larger than the U.S. in the same time period while Indonesia will break into the top 5 economies. Asia’s share of global GDP, which rose to 28 percent last year from 20 percent in 2010, will likely reach 35 percent by 2030, matching that of the euro area and U.S. combined.
The Reserve Bank of India (RBI) has cancelled registration of 45 NBFCs without disclosing any specific reason. West Bengal topped the list with 28 NBFCs, followed by Gujrat(6), Delhi(4), Uttar Pradesh(2), Kerala(2), Tamil Nadu(2) and Telangana(1). The RBI had deregistered close to 1,500 NBFCs in the past two years till December 2018 for reasons such as lower than minimum net-owned fund of Rs 2 crore, non-submission of statutory returns, untraceable address etc. The number of NBFCs registered with the RBI was reduced to 10,102 as of September 30, 2018, from 11,400 at the end of March last year.
Chairman of Gem and Jewellery Domestic Council (GJC), Ananth Padmanabhan said that demonetisation and GST arrested growth in the gold jewellery industry in the last two years. India is the second largest importer of gold yet the sector growth has remained sluggish, he said. He also said that younger generation’s preference for automobiles and travelling has also caused a slowdown in the business.
Mysore born Gita Gopinath became the 11th chief economist of International Monetary Fund and the first ever woman to occupy the top IMF post. Announcing her appointment on October 1, IMF Managing Director Christine Lagarde described her as one of the world's outstanding economists with impeccable academic credentials, a proven track record of intellectual leadership and extensive international experience. Gopinath considers the threats of global trade war and health of the emerging economies as primary challenges.
According to US news website Axios, former PepsiCo head Indra Nooyi is a contender for the World Bank president post after the sudden exit of Jim Yong Kim. World Bank Group president Jim Yong Kim unexpectedly resigned on Monday, more than three years before his term ends in 2022. The president of the World Bank is elected by member states through an "open, merit-based and transparent" process. Traditionally, the World Bank president is an American nominee and the head of the International Monetary Fund (IMF) is always European, according to an informal agreement between the two sides.