Thought of the Day:
“Obstacles are those frightful things you see when you take your eyes off your goal.”
Henry Ford
Did you know?
Alfred Nobel, in whose name the Nobel prizes are instituted, was the inventor of dynamite.
India:
International:
“Obstacles are those frightful things you see when you take your eyes off your goal.”
Henry Ford
Did you know?
Alfred Nobel, in whose name the Nobel prizes are instituted, was the inventor of dynamite.
India:
- Mobile tariffs may increase on high bids for spectrum: Your mobile bill may soon go up with top telecom companies such as Bharti Airtel and Vodafone bidding aggressively to bag spectrum in a government auction that assured the cash-strapped exchequer of as much as Rs 61,000 crore. The country’s top two mobile operators will pay nearly 62% of the total government collections. The companies are required to pay Rs 18,000 crore immediately, while the rest has to be paid over a 10-year period starting 2016. “The government is happy and we will see a smile on the finance minister’s face,” telecom minister Kapil Sibal said. “Tariffs going up is inevitable. Operators will either have to take a hit on margins or pass it on to consumers. It will be a balance of these two,” said Sanjay Kapoor, former Bharti Airtel CEO. Jaideep Ghosh of KPMG said companies may cut freebies and discounts.
- Snapdeal.com launches office equipment category: Snapdeal.com, a leading online portal, has added another category on its site. The website has launched the Office Equipment category which will now be available at the click of a button. Note Counting Machines, Paper Shredders, Public Address Systems, Vending Machines, Security Systems, Janitorial Supplies are just some of the many requirements. Tony Navin, VP-Business Development, said, "Often when young entrepreneurs or small enterprises are scaling up, they have trouble locating a place from where they can shop for all their office needs. We want to address this with our new collection of office equipment. With the largest assortment and the best prices, we are not just selling to businesses now but also enabling them." The new range of administrative and office equipment includes over 1,000 products from brands like Canon, Xerox, Brother, Dymo, Casio, Bambalio, Epson, Fellowes, Fiskars, Godrej, Maxsell, Motorola, Mega etc
- Coke to beef up portfolio, enter dairy segment in India: Beverage giant Coca-Cola India is betting on a bevy of new launches to go one up on its rival PepsiCo in the coming season. On the anvil is a low-calorie variation of Coca-Cola called Coke Zero, a relaunch of its energy drink Burn and a pan-India launch of its dairy-based drink Maaza Milky Delite. Interestingly, senior executives at the Atlanta-based company are unfazed by the fact that Diet Coke, a sugar-free soft drink, is already present in the market. "In taste, Coke Zero is nearly identical to Coca Cola, something that Diet Coke is not. It was created with young adults in mind. Its look, positioning, communication is very unlike a diet drink and therefore a lot of young adults, go getters identify with the brand," Venkatesh Kini, head of Coca-Cola India told TOI. Though diet drinks currently have about 1% share of the carbonated soft drinks market in India, Coca-Cola is banking on its new product to become a potential game changer in the category when it is introduced in the second half of this year. Launched in 2005 globally, Coke Zero is estimated to be the seventh largest carbonated soft drink in the world today by retail value. However, Coca-Cola's trump card might well be its foray into India's dairy segment with its milk-based drink Maaza Milky Delite. After being test marketed in Kolkata, the beverage made from milk and mango pulp will now be rolled across the country in 200-ml tetra packs, that will be priced between Rs 15 and Rs 18. "Since, it's a milk-based product we wanted to make sure that it can withstand India's extreme weather conditions. The inputs from our experiment in Kolkata made us go back to the lab and develop a product that could survive without a cold chain," said Kini.
- Leela to sell 2 hotels for 2k cr to pare debt: In one of the biggest deals in the Indian hospitality industry, sovereign wealth funds of Abu Dhabi, Qatar and Malaysia are vying with each other to acquire two of India’s marquee properties. Backed by their cash-rich governments, the funds are in discussions to pick up 74% stake in the Leela Group’s Delhi and Chennai hotels for over Rs 2,000 crore. The deal, if it goes through, will also mark the entry of sovereign fund investment in the sector. The Leela chain, in which ITC Hotels holds 12% stake, has been in the red for the past several quarters, hit by business slump, competition and demand-supply mismatch. As part of its restructuring, the group has decided to hive off the two properties into a separate entity/ies, with Leela retaining 26% stake and continuing to manage the five-star hotels. All the three funds are big time investors in leisure and tourism assets. Abu Dhabi Investment Authority, the world’s third biggest sovereign fund, with $627 billion of assets, recently bought Australia’s largest owner of hotels, Tourism Asset Holdings. Similarly, Qatar Investment Authority, which owns luxury department store Harrods, plans to expand the brand into hotels. And Khazanah Nasional owns themed resorts in Malaysia. The Leela Group is ceding majority ownership in its Chennai and New Delhi hotels to pare liabilities after moving the corporate debt restructuring (CDR) cell. The transaction, managed by IDBI Capital and SBI, is expected to be completed in the next few weeks. SBI is the lead banker for the group’s CDR processes — a mechanism where borrowers seek extension of loan period and adjustment of interest rate. Leela Group CMD Vivek Nair confirmed the stakedivesture discussions, saying it is being done to lower the debt level from the current over Rs 4,000 crore. Unlike an outright sale, as was done in the Kovalam hotel’s case, this time the group prefers to retain some ownership. The move is also in line with the broader industry trend where hotel ownership is separated from hotel management.
- New aviation regulator gets nod: In what might help India regain its higher safety ranking from the US’ Federal Aviation Administration (FAA), the Union cabinet on Wednesday approved amendments to the Bill for replacing the Directorate General of Civil Aviation (DGCA) with a financially autonomous Civil Aviation Authority (CAA). A senior official in the ministry said on Thursday, “The standing committee (of Parliament) on transport had recommended certain amendments to the CAA Bill. Some of these were approved by the cabinet yesterday. The Bill would now be tabled in Parliament. The CAA would be financially independent and, to a large extent, help address the issues raised about India’s safety oversight mechanism by the FAA.” The amendments as approved include appointing a part-time chairperson in the proposed authority. The role would be supervisory; he would preside over board meetings but operational matters would be dealt by the chief executive. Earlier, the Bill had said the chairperson would be appointed for a fixed term of five years. In its amended version, the CAA is also proposed to levy more stringent penalties, at five times the initial specified amount, for rule violations. The amended Bill further allows for creation of posts in the proposed body, with prior approval of the government.
- Airtel Offers 4G on Mobiles in B’lore : The launch is a prelude to the 4G war expected later this year when Mukesh Ambani owned Reliance Jio Infocomm launches similar services. “Existing 3G plans will apply to users who will be migrated to 4G for no extra cost. However, they will have to get a SIM card replacement. Voice networks will continue to run on 2G and 3G net-Bangalore will become the first city in India to experience 4G services on mobile from this month. The country’s largest telecom operator Bharti Airtel is launching 4G services for smartphones such as iPhone 5S, 5C and Xolo, from this month. Works,” said Srini Gopalan, Bharti Airtel’s director for consumer business. “4G network users will be able to download 10 standard movies within 30 minutes,” he claimed. A trial version of 4G-LTE network that ET experienced in Bangalore was gave download speed of about 7.2 MBPS, versus a 2.2 MBPS in a 3G network.
International:
- LG Electronics unveils larger-screen phone to take on Samsung, Apple: South Korea's LG Electronics unveiled a revamped version of its large-screen smartphone G Pro on Thursday, seeking to woo customers ahead of a rival offering from market leader Samsung Electronics later this month. Apple Inc is also widely expected to launch its new iPhone with a bigger screen this year. The G Pro 2 boasts a 5.9-inch screen, bigger than the 5.5 inch screen of the previous model and one of the biggest on the market. It also has a 1-watt speaker system, a first for smartphones and will be powered by a Qualcomm Snapdragon 800 processor. The unveiling of the new G Pro had been expected later this month. LG's earlier timing may have been prompted by market leader Samsung's decision to unveil a version of its flagship Galaxy S smartphone on February 24 at the Mobile World Congress in Barcelona, three weeks earlier than expected. The G Pro 2 will be on the market in Korea in late February. LG, the world's fourth-biggest smartphone maker by sales, did not announce a global sales target for the phone.
- FB’s Privacy Deal Under Attack: Despite a class-action settlement in August that was supposed to ensure that Facebook users clearly consent to their comments, images and “likes” being used in ads, it has been business as usual on the service. If you are among Facebook’s 1.2 billion users, the company says, you are automatically consenting to such social ads. Opting out is impossible for some ads, and for others, the control to stop them is buried deep within the service’s privacy settings. But on Thursday, the non-profit advocacy group Public Citizen will try to step up the pressure on Facebook to change its practices. In a legal brief to be filed with the 9th US Circuit Court of Appeals in San Francisco, the group will contend that the settlement violates the laws of seven states, including California and New York, by failing to require Facebook to receive explicit permission from parents before using the personal information of teenage users in advertising. “The default should be that a minor’s image should not be used for advertising unless the parent opts in. Putting the burden on the parent to opt the child out gets it exactly backward,” said Scott Michelman, a lawyer at Public Citizen, which has filed the appeal on behalf of five parents and their children who use Facebook. In a rare reversal, one child advocacy group that initially supported the $20 million settlement, the Campaign for a Commercial-Free Childhood, has now concluded the deal offers little protection to children and plans to ask the appeals court to reject it.
- Apparel Sales Fall: Apparel and accessories stores, department stores and discounters all posted sales declines in January, the Commerce Department's monthly sales report showed Thursday. Apparel and accessories stores posted a seasonally adjusted 0.9 percent drop in sales to $20.9 billion compared with December, while department stores posted a 1.5 percent decline in sales to $14.1 billion. General merchandise stores, a category that includes discounters and department stores, saw a 0.1 percent decline in sales to $54.9 billion. In the overall economy, retail sales fell 0.4 percent to $427.8 billion, largely driven by a 2.3 percent decline in automobile sales.
- Hermès Says Profitability Beat Plan on ‘Dynamic’ Quarterly Sales: Hermès International SCA, the French maker of Birkin bags, said 2013 profitability beat its forecast after fourth-quarter sales increased 4.6 percent. The current operating margin was probably “slightly above” the record 32.1 percent of revenue achieved in 2012, Paris-based Hermès said today in a statement. In November, the company said the measure could be close to 2012’s level. Hermes will publish earnings figures on March 20. Quarterly revenue advanced to 1.09 billion euros ($1.48 billion), Hermès said. Analysts predicted 1.11 billion euros, according to the median of 11 estimates compiled by Bloomberg. Sales excluding currency moves rose 11 percent, led by gains in the Asia-Pacific region, excluding Japan. Hermès is weathering a slowdown in luxury-goods consumption better than many of its peers as production constraints and controlled distribution reinforce its elitist appeal. The company said today that it will maintain its long-term strategy. Full-year sales climbed 13 percent at constant exchange rates to 3.75 billion euros. Hermès said in November that 2013 revenue growth might exceed 11 percent on that basis. Currency fluctuations had a negative 183 million euro effect on 2013 revenue, Hermès said today. Hermès fell 0.8 percent to 240.65 euros at the close in Paris yesterday. The stock has declined 8.7 percent this year, valuing the saddle-maker part owned by rival LVMH Moet Hennessy Louis Vuitton SA at 25.4 billion euros.
- Avon may spend up to $132m to settle China bribery probe: US cosmetics group Avon Products may spend up to $132m (£79m) to resolve allegations it may have bribed officials in China and other countries. The firm has been under investigation for years over possible violations of the US Foreign Corrupt Practices Act. However, no deal has been reached with the US government and Avon said it had provisionally set aside the money in the event of a settlement. Shares of the loss-making firm fell by more than 3% in US trade on Thursday. The world's largest direct seller of beauty products has also been struggling with slowing growth in many of its major markets. The company reported a net loss of $69.1m in the three months to December, while revenue fell by 10% to $2.67bn. Avon chief executive officer Sheri McCoy said the company was "making headway" towards returning to profit. "Looking back at 2013, we made progress addressing tough legacy issues, identifying and beginning to resolve operational challenges, and rebuilding our management team," she said in a statement. "While much work remains to be done, we continue to make progress toward building a better, simpler and more stable business." Ms McCoy took the helm of the company in 2012 and has undertaken an aggressive cost-cutting plan. Last December, Avon announced plans to cut 650 jobs. It is also exiting unprofitable markets, including Vietnam and South Korea. However, Avon still has had to contend with rising competition, a lack of sales staff and problems with its technology systems.
- Comcast buys rival Time Warner Cable for $45bn: Comcast has confirmed a deal to acquire Time Warner Cable for about $45bn (£27bn), creating a company that could control three-quarters of the US cable industry. Comcast will pay about $159 per share for its rival in an all-stock deal. The deal comes after Time Warner Cable rejected a $60bn bid from Charter Communications last month, calling their offer "grossly inadequate". However, any merger is likely to face tight scrutiny from US regulators.Time Warner Cable has been the subject of an eight-month takeover battle by smaller cable operator Charter Communications.Comcast is the biggest cable television provider in the US and owns the NBC broadcast network, as well as the Universal film studio.
Currency:
· 1 USD= ₹ 62.155
· 1 EUR= ₹ 85.220
· 1 GBP= ₹ 103.749
· 1 AUD= ₹ 56.064
Glitter Meter: India
Gold (INR/10g) | Silver (INR/kg) | |||
City | Current | Change | Current | Change |
Chennai | 30360.00 | 0 | 44945.00 | -375 |
Mumbai | 29880.00 | 0 | 44945.00 | -375 |
Delhi | 29640.00 | 0 | 44945.00 | -375 |
Kolkata | 29760.00 | 0 | 44945.00 | -375 |
World Indices:
Exchange | Last | Change |
DJIA | 16027.59 | +63.65 |
FTSE 100 | 6659.42 | -15.61 |
CAC 40 | 4312.80 | +7.30 |
DAX | 9596.77 | +56.77 |
Nikkei | 14435.07 | -99.67 |
Hang Seng | 22302.24 | +136.71 |
Sensex | 20193.35 | -255.14 |
NASDAQ | 4240.67 | +39.38 |
*Disclaimer:
World One Consulting Pvt Ltd will not accept any liability for loss or damage as a result of reliance on the information contained within this newsletter including data, quotes, charts and buy/sell signals.
World One Consulting Pvt Ltd will not accept any liability for loss or damage as a result of reliance on the information contained within this newsletter including data, quotes, charts and buy/sell signals.