Brexit, Rexit, Nikesh Arora resigns – Weekly Digest #2

Monday- 20th June 2016

  • Raghuram Rajan’s refusal to stand for a second term as RBI’s Governer saw a slump in the stocks, bonds, and the rupee market. He has announced his return to academia.
  • Amazon and Walmart are looking to battle for the market in India after an introduction of new FDI policy which allows e-commerce in food products, provided they are processed in India only.
  • The Government has brought about changes in the FDI policy, allowing 100% FDI in airlines. Restrictions have been relaxed for single brand retail and defense. Most sectors have been put to automatic approval route.
  • Prime Minister Narendra Modi and Finance Minister Arun Jaitley to select the next RBI governor, instead of delegating the decision to a panel.

 

Tuesday- 21st June 2016

  • President of SoftBank Group Corporation, Nikesh Arora resigned from his position abruptly, even though he was the frontrunner for the position of CEO. The position of CEO will now continue to be held by Masayoshi Son.
  • ITC’s chief, YC Deveshwar to step down from his position in February 2017. He will stay as non-executive chairman until 2020. Currently, there is no successor for the position
  • In a meeting with the Prime Minister, many top companies like Reliance, Tata, L&T have asked for allowing the private sector to be a participant in the defence sector.
  • Income Tax department to impose penalty initiate prosecution against willful tax evaders and non-filers. The government has denied such report.

 

Wednesday- 22nd June 2016

  • The Union Cabinet has approved the auction of 2200 MHz telecom airwaves, in the biggest ever spectrum auction. It has referred to TRAI for spectrum usage charges (SUC) and method to calculate overall SUC for telecom companies.
  • The Cabinet also announced Rs 6,000 crores package for textile and apparels sector to help it compete in the global market
  • Cabinet has approved the establishment of Rs 10,000 crore fund for funding the startups.
  • LIC’s Chairman, SK Roy has unexpectedly resigned from the position. His term was due to end 2 years from now. A senior official said that the resignation comes due to personal reasons.
  • Tech Mahindra acquires UK-based ‘The BIO Agency’ in a £40 million deal.

 

Thursday- 23rd June 2016

  • TGP Capital is looking to buy ICICI Home Finance in a Rs 2,200 crore deal. This highlights the diminishing value of mortgage companies, as ICICI originally expected it to be a Rs 4,400 crore deal.
  • Sajjan Jindal-controlled JSW Energy is again advancing its negotiations to buy 3 key assets of Jaypee Group. They’re Bina Thermal Power, Vishnuprayag HydroPower and 74% stake in Jaypee Power Grid for Rs 3,400 crores.
  • After being listed in ‘Hall of Shame’ for financing bomb makers, SBI defended itself by saying that investments made are completely legal.
  • The Organization of Petroleum Exporting Countries has declared that their revenue has dropped to a 10 year low which is $518.2 billion, 46% decline from last year’s figures.

 

Friday- 24th June 2016

  • Britain has voted to exit from the European Union, leading to a fall in the value of British Pound against Dollar to a 31 year low of 1.35 against the dollar. Stocks globally were affected negatively.
  • Essar Energy has sold its entire stake of 50% in Kenya Petroleum Refineries to the Kenyan Government. This is a part of a strategy of Essar Energy to shift focus from non-core activities.
  • Reserve Bank of India has announced that its Foreign Exchange Reserves have touched the lifetime high of $363.8 billion.
  • Nokia has appointed Sanjay Malik, the current head of Network Implementations , as the new head of the Indian market. This will be effective from August 1.

 

For more on Brexit, you can click the link below

https://financiallook.wordpress.com/2016/06/25/brexit-what-you-should-know

 

Source: The Economic Times

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