RBI Governor Shaktikanta Das told CNBC that trials for the digital rupee may start as early as December. Separately, market indices Sensex and Nifty soared to new highs, continuing the trend this week.
In another development, China plans to propose new rules that would ban companies with large amounts of sensitive consumer data from going public in the U.S.
States' fiscal deficit to moderate to 4.1% of GDP in FY'22: India Ratings
India Ratings and Research Friday said it expects the aggregate fiscal deficit of states in the country to moderate to 4.1% of GDP in the current financial year from its earlier expectation of 4.3%.
In line with the slight moderation in its forecast for fiscal deficit in FY22, the agency expects the aggregate debt/GDP ratio to come in lower at 32.4% in FY22 as against the previous estimate of 34%.
"We expect the aggregate fiscal deficit of Indian states to moderate to 4.1% of the gross domestic product (GDP)," the agency said in a report, according to PTI.
New GSTR-1 rules
Businesses that have not filed GSTR-3B returns in the preceding two months will not be able to file details of outward supplies in GSTR-1 from September 1, GSTN has said, according to a PTI report.
According to the rule, a registered person shall not be allowed to furnish the details of outward supplies of goods or services or both in Form GSTR-1, if he has not furnished the return in Form GSTR-3B for preceding two months.
Sebi disposes of proceedings against Fortis Healthcare’s statutory auditor
Markets regulator Sebi has disposed of proceedings against statutory auditor of Fortis Healthcare in a matter pertaining to its alleged role in diversion of funds, PTI reported.
It was alleged against Rashim Tandon, partner, Deloitte Haskins and Sells LLP, the statutory auditor of Fortis Healthcare Ltd (FHL), that it had indirectly aided in misrepresentation and non-disclosure of material information in consolidated financials of FHL.
Sensex, Nifty soar to lifetime highs
Equity indices Sensex and Nifty soared to fresh highs, continuing the trend this week.
Sensex surged over 175 points to close at 56,124.72, while NSE Nifty gained 68.3 to finish at a record of 16,705.20, PTI reported.
China-backed SPAC buys Forbes Media in $630 million deal
A special purpose acquisition company (SPAC) backed by China’s sovereign wealth fund has bought American publisher of Forbes magazine in a $630 million deal, South China Morning Post reported.
Hong Kong-based Magnum Opus Acquisition will merge with Forbes Global Media Holdings. Forbes would list on the NYSE after the transaction with existing shareholders owning 22% of the combined company, according to the news agency.
Rupee rallies 53 paise to close at 73.69 against U.S. dollar
The rupee surged 53 paise to close at 73.69 (provisional) against the U.S. dollar on Friday, supported by a firm trend in domestic equities ahead of the key speech from U.S. Federal Reserve Chair Jerome Powell.
At the interbank forex market, the local unit opened strong at 74.17 against the greenback, then gained strength and settled for the day at 73.69, higher by 53 paise over its previous close of 74.22.
The local unit moved in a range of 73.69 to 74.20 in the day trade, according to a PTI report.
Govt extends tenures of Central Bank of India, UBI’s exec directors
The government on Friday extended the tenures of the executive directors of public sector lenders Union Bank of India (UBI) and the Central Bank of India.
The terms of UBI’s executive directors — Manas Ranjan Biswal and Gopal Singh Gusain — have been extended vide a notification dated August 26, along with that of Central Bank of India’s executive director Ashok Srivastava, PTI reported.
Gold prices fall on low demand
Gold prices fell by ₹22 to ₹47,215 per 10 gram in the futures trade on Friday, as speculators reduced their positions amid low demand.
On the Multi Commodity Exchange, gold contracts for the October delivery traded lower by ₹22, or 0.05%, to ₹47,215 per 10 gram in a business turnover of 11,425 lots.
Analysts attributed the fall in gold prices to trimming of positions by participants, PTI reported.
Indian Oil Corp to invest ₹1 lakh crore to expand refining capacity
Indian Oil Corp (IOC) said on Friday it will invest nearly ₹1 lakh crore to raise its refining capacity by a third in the next 4-5 years as it sees fuel demand continuing to grow in the near future.
IOC chairman Shrikant Madhav Vaidya addressed the company‘s annual meeting of shareholders and said petrol demand is already back at pre-Covid levels and diesel - the most used fuel in the country - should return to normalcy levels by Diwali, PTI reported.
Technology advancement can make India a superpower: Defence Minister
Defence Minister Rajnath Singh said on Friday that if India achieves advancement in technology, it can become a superpower.
Prime Minister Narendra Modi is committed committed to taking the country on the path of progress and research and innovation, Singh said while addressing students and researchers at the Defence Institute of Advanced Technology (DIAT), according to a PTI report.
Defence Minister Rajnath Singh | Photo Credit: PTI
Barclays buys $3.8 billion credit card portfolio in the U.S.
Barclays on Friday said its U.S. arm willl buy or $3.8 billion credit card portfolio from Synchrony Bank, as the British lender seeks to grow its U.S. profits and diversify further into fee-earning businesses.
The deal comes at a time and banks worldwide are trying to grow fee-earning businesses such as credit cards, amid rock bottom central bank interest rates that have squashed profits from their own main business of lending, Reuters reported.
Microsoft wants thousands of cloud customers of data vulnerability
Technology giant Microsoft on Friday warned thousands of its cloud computing clients of a recently discovered flaw that has left their data vulnerable for an extended period.
The flaw involved key is used to access Microsoft Azure’s flagship database service Cosmos DB, and was discovered two weeks ago by cybersecurity company Wiz.
Major companies including Coca-Cola and Exxon Mobil also use Kosmos DB to manage massive volumes of data around the world in real-time, AFP reported citing Wiz.
RBI may begin digital rupee trials by December: governor
The Reserve Bank of India may begin trials of the digital rupee in the country as early as December this year, Governor Shaktikanta Das told CNBC.
“We are being extremely careful about it because it’s completely a new product, not just for RBI, but globally,” Das told CNBC on Thursday.
The RBI is studying various aspects of a digital currency including its security, impact on India’s financial sector as well as how it would affect monetary policy and currency in circulation, according to the governor.
Moody’s assigns Ba3 rating to Adani Green Energy's proposed USD notes
Credit rating agency Moody’s has assigned a Ba3 rating to Adani Green Energy Ltd's (AGEL)proposed USD senior secured notes, adding the outlook is stable.
According to Moody’s scale of ratings, obligations named Ba are said to be speculative and subject to substantial credit risk.
AGEL will primarily use the proceeds from the USD notes to lend to its direct and indirect subsidiaries for them to fund the development of utility scale renewable power projects, PTI reported.
China issues guidelines on medical aesthetics advertising
China’s market regulator on Friday issued draft guidelines on regulation of the medical aesthetic sector’s advertising, and said it will crack down on ads that create anxiety over people’s looks.
The regulator added it is inappropriate to equate a person’s poor looks with there being in capable, lazy or poor, and it was forbidden to compare images of people before and after plastic surgery, Reuters reported.
India, Australia direct officials to speed up negotiations for trade pacts
India and Australia have directed their officials to speed up the negotiations and aim at making an announcement by December 2021, to further enhance trade ties between the two countries, PTI reported citing a joint statement released on Friday.
This was agreed upon in a meeting held between the Commerce and Industry Minister Piyush Goyal and his Australian counterpart Dan Tehan MP on Thursday.
The officials discussed the way forward for an early conclusion of a Bilateral Comprehensive Economic Cooperation Agreement (CECA).
China imposes limits on use of algorithms that drive consumer choices
China on Friday set new rules to limit the power of computer programmes or algorithms that influence the choices of consumers, stating that users must instead be encouraged to use online culture to “spread positive energy”.
The measures are part of a broader crackdown by Beijing on the tech sector and mega-apps including gaming, personal finance and ride hailing.
Users must not be shown discriminatory prices based on their past behaviour and must have the option to turn off recommendations, AFP reported citing a statement by China’s cyberspace administration.
International Sugar Organisation sees global sugar deficit of 3.8 million tonnes in 2021-22
The International Sugar Organisation (ISO) on Friday forecast a global sugar deficit of 3.8 million tonnes in the 2021-22 season.
The intergovernmental body in a quarterly market outlook saw production rising a marginal 0.2% in the upcoming season, which begins in October, while consumption is expected to increase by 1.6%.
The current forecast is up from an ISO forecast in May for a 2.6 million tonne deficit and wider than the median forecast and Reuters poll issued last week of 2.0 million tonnes, Reuters reported.
Power Minister urges union ministers, CMs to switch to EVs
Power minister R. K. Singh has urged all union and chief ministers to switch over to using electric vehicles for all official purposes, attempting to promote EVs in the country.
Singh has sent letters to his union cabinet colleagues and chief ministers in this regard, PTI reported citing a power ministry statement.
The minister has also asked the union and chief ministers to advise their respective ministries/departments to convert their fleet of official vehicles from the present internal combustion engine/petrol/diesel vehicles to EVs for all official purposes.
Indian Oil expands JV with Malaysia’s Petronas to build LNG terminals
Indian Oil Corp Chairman S. M. Vaidya said on Friday the company is expanding its joint venture with Malaysia state-run Petronas to build liquefied natural gas (LNG) terminals, and expand fuel retailing and gas distribution.
The country’s top fuel retailer imports liquefied petroleum gas (LPG) through Indian Oil Petronas Pvt Ltd, its equal joint venture with Malaysian firm, PTI reported.
The state-run firm has been keen to tie-up with global firms, as it attempts to strengthen its grip in cleaner energy areas like hydrogen.
BlackRock faces key test in $15 trillion China asset market
BlackRock Inc. is gearing up for the first test of Chinese investor appetite for its own mutual fund products, more than 15 years after entering the world’s most promising wealth market, Bloomberg reported.
The world’s largest money manager is leading a global foray into China’s 100 trillion-yuan ($15.4 trillion) asset management industry after regulators eased curbs on foreign control last year, according to the report.
Ami Organics IPO to open on Sep 1
Speciality chemicals maker Ami Organics on Friday said it has fixed a price band of ₹603-610 a share for its ₹570-crore initial share sale. The three-day initial public offer (IPO) will open on September 1 and conclude on September 3, PTI reported.
The IPO comprises a fresh issue of equity shares worth ₹200 crore and an offer for sale of up to 60,59,600 equity shares by existing shareholders. The company has raised ₹100 crore in a pre-IPO placement.
SC asks Sebi not to take coercive steps against NDTV promoters
The Supreme Court Friday asked markets regulator Sebi not to take any coercive steps against NDTV promoters Prannoy Roy and Radhika Roy till it hears their pleas on September 3 against the penalty proceedings related to alleged violation of securities norms by concealing information from shareholders on certain loan agreements, PTI reported.
A bench headed by Chief Justice N V Ramana was requested by the Securities and Exchange Board of India (Sebi) that the hearing on the pleas of the NDTV promoters be adjourned till next Friday, according to the report.
Indiagold to raise $12 million in funding from PayU, others
Indiagold, a gold-focused digital alternative credit platform, on Friday said it will raise $12 million (about ₹89 crore) in funding. PayU and Alpha Wave Incubation fund will lead the investment round, PTI reported.
The firm offers gold-backed loans, gold savings, and gold locker services to over a million consumers in India, the report noted. Indiagold co-founder Nitin Misra said India offers a $650 billion addressable gold loan market.
China plans to ban U.S. IPOs for data-heavy tech firms
China plans to propose new rules that would ban companies with large amounts of sensitive consumer data from going public in the Unites States, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Officials from China’s stock regulator have told some companies and international investors in recent weeks, that the new rules would prohibit internet firms holding a swath of user-related data from listing abroad, according to the report.
Oil jumps as storm approaches Gulf of Mexico production hub
Oil prices rose on Friday, on track to post big gains for the week, on worries about supply disruptions as energy companies began shutting in production in the Gulf of Mexico ahead of a potential hurricane forecast to hit on the weekend, Reuters reported.
Brent crude futures rose 1.4%, to $72.05 a barrel, while U.S. West Texas Intermediate crude futures climbed 1.4%, to $68.35 a barrel.
Brent is on track for a rise of nearly 11% this week, its biggest weekly jump since June 2020, and WTI is headed for a weekly gain of nearly 10%, which would be its strongest rise since August 2020, according to the report.
Dell beats revenue estimates as remote work fuels demand
Dell Technologies Inc beat market estimates for second-quarter revenue as the shift to hybrid work kept demand strong for its laptops, desktops and cloud services, Reuters reported.
Revenue at Dell’s client solutions unit - home to its hardware devices - surged 27% to a record $14.3 billion. The company’s total revenue jumped 15% to $26.12 billion, beating the analysts’ average estimate of $25.53 billion, according to Refinitiv data.
Apple loosens app store payment rules in lawsuit settlement
Apple has agreed to let developers of iPhone apps email their users about cheaper ways to pay for digital subscriptions and media by circumventing a commission system that generates billions of dollars annually for the iPhone maker, PTI reported.
The concession, which covers emailed notifications but does not allow in-app notifications, is part of a preliminary settlement of a nearly 2-year-old lawsuit filed on behalf of iPhone app developers in the U.S, according to the report.
Rupee rises 7 paise to 74.15 against U.S. dollar in early trade
The Indian rupee gained 7 paise to 74.15 against the U.S. dollar in opening trade on Friday, amid a muted trend in the domestic equities.
At the interbank foreign exchange, the rupee opened at 74.17 against the dollar, then inched higher to 74.15, up 7 paise over its previous close, a PTI report noted.
Forex traders said the domestic unit is trading in a narrow range as investors are awaiting cues from the key speech from U.S. Federal Reserve Chair Jerome Powell.
Judge allows Johnson & Johnson to split talc liabilities from main business
A U.S. federal judge has cleared the way for Johnson & Johnson to split its talc-related liabilities from the rest of its business, a decision that could allow the drugmaker to move thousands of claims by people who used its Baby Powder and other talc products into bankruptcy, Reuters reported.
The ruling came over the objections of lawyers for people who claimed that J&J’s talc products contained asbestos and caused them or family members to develop cancer.
EU set to launch formal probe into Nvidia's takeover of Arm
The European Union is set to launch a formal competition probe into Nvidia’s planned $54 billion takeover of British chip designer Arm early next month, the Financial Times reported on Friday, citing two people with direct knowledge of the process.
The investigation is likely to begin after Nvidia officially notifies the European Commission of its plan to acquire Arm, according to the report.
Processing about 1.5 billion transactions a month: PhonePe
Fintech major PhonePe said it is processing almost 1.5 billion transactions a month, and about 80% of its users are from tier-II cities and beyond.
PhonePe founder and CEO Sameer Nigam said an increasing number of customers in the country are embracing digital financial services. The company has about 20 million merchants on the platform and 16 million of them are from tier-II towns and beyond, according to a PTI report.
SAIL aims at reducing net debt to ₹15,000-20,000 crore in FY22
Steel Authority of India Ltd is aiming at reducing its net debt to a range of ₹15,000-20,000 crore in the current fiscal if the prices and demand for the commodity remain stable, a top company official said on Thursday.
The Maharatna PSU has around ₹30,000 crore net debt as of June 30, 2021, down from ₹35,350 crore by end of the previous fiscal, a PTI report noted.
Cuba to recognise and regulate cryptocurrencies
Cuba’s government said August 26 it will recognise — and regulate — cryptocurrencies for payments on the island.
A resolution published in the Official Gazette said the Central Bank will set rules for such currencies and determine how to license providers of related services within Cuba.
Boeing 737 Max jets to fly again in India
The Directorate General of Civil Aviation on Thursday cleared the decks for operating Boeing 737 MAX airplanes upon satisfactory compliance to applicable requirements for return of service. The order ending more than two years of grounding would come into immediate effect, aviation sources said.
Indian benchmark indices dip in early trade
Indian indices opened on a flat note on Friday. BSE Sensex opened at 55,862.93, down 86.17 points, while Nifty opened at 16,642.55, up 5.65 points.
In Friday’s early trade (at 9:30 A.M.), Sensex fell 234.05 points or 0.42% to reach 55,715.05, while Nifty dropped 59.55 points or 0.36% to reach 16,577.35.
On Thursday, the 30-share BSE Sensex ended 4.89 points or 0.01 per cent higher at 55,949.10, while the broader NSE Nifty advanced 2.25 points or 0.01 per cent to its fresh closing peak of 16,636.90.
Asian shares on edge as day of Fed chair speech arrives
Asian shares were mixed on Friday morning as slight gains in China were balanced by declines elsewhere and investors globally turned cautious ahead of a long-awaited speech by Fed Chair Jerome Powell, a Reuters report noted.
MSCI’s broadest index of Asia-Pacific shares outside Japan lost 0.1% while Japan’s Nikkei shed 0.46%. Australian shares fell 0.18%, and Hong Kong and Korea were flat. Chinese blue chips gained 0.57%.
Wall Street closes lower, ending rally on Afghanistan, Fed concerns
Wall Street lost ground on Thursday, ending a streak of all-time closing highs on concerns over developments in Afghanistan, while fears of a potential shift in U.S. Federal Reserve policy prompted a broad but shallow sell-off the day before the Jackson Hole Symposium, Reuters reported.
All three major U.S. stock indexes ended the session modestly lower, with the S&P and the Nasdaq notching their first down day in six.
The Dow Jones Industrial Average fell 191.2 points, or 0.54%, to 35,214.3, the S&P 500 lost 26.27 points, or 0.58%, to 4,469.92 and the Nasdaq Composite dropped 96.88 points, or 0.64%, to 14,944.98.
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