Month: November 2020

5G connection to reach 3.5 billion globally, 350 million in India by 2026: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

5G connections across the globe are estimated to be 3.5 billion and India will account for 350 million subscriptions by 2026, according to a report by telecom company Ericsson.

India may get its first 5G connection in 2021 if spectrum auctions are held early next year, said Ericsson Head of Network Solutions (Southeast Asia, Oceania and India) Nitin Bansal.

Globally, more than 1 billion people, 15 percent of the world’s population, are expected to live in an area that has 5G coverage rolled out, according to the ‘Ericsson Mobility Report 2020’ released on Monday.

“In 2026, 60 percent of the world’s population will have access to 5G coverage, with 5G subscriptions forecast to reach 3.5 billion. In India, 5G subscriptions will surpass 350 million, accounting for 27 percent of all mobile subscriptions in 2026,” the report said.

Bansal said that based on the reported timeline for spectrum auction for 5G services, he expects India to have its first 5G connection in 2021.

According to the report, India has the highest average traffic per smartphone user per month at 15.7 gb per month.

“Low prices for mobile broadband services, affordable smartphones, and increased time spent by people online contribute to monthly usage growth in India. Accordingly, total traffic is projected to quadruple in India, reaching 35EB (exabyte) per month in 2026,” Ericsson Mobility Report Editor and Head of Strategic Marketing Insights States Patrik Cerwall said.

The report said LTE (4G) remains the dominant technology in India in 2020, accounting for 63 percent of mobile subscriptions and 3G is expected to be phased out by 2026.

“In the India region, LTE subscriptions are forecast to increase from 710 million in 2020 to 820 million in 2026, increasing at a compound annual growth rate (CAGR) of 2 percent,” the report said.

It added that mobile broadband technologies accounted for 67 percent of mobile subscriptions in 2020, and this figure is predicted to reach 91 percent by 2026. “The total number of mobile broadband subscriptions is set to reach close to 1.2 billion by 2026.”

According to an annual report, the number of smartphone subscriptions has increased to 760 million in 2020 in the country and is expected to grow at a CAGR of 7 percent to reach close to 1.2 billion by 2026.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Passenger vehicle, 2-wheeler wholesales to decline over next few months: India Ratings

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Domestic passenger vehicle and two-wheeler wholesales will come down in the next few months as inventory levels remain high at dealer level, according to rating firm India Ratings and Research (Ind-Ra).

The overall auto industry would however continue to grow in the next few months, it noted.

“With the festive season now over in India, the rating agency expects wholesale billings to moderate in the next couple of months, given that the inventory at dealer level for passenger vehicles (PVs) and two-wheelers is already at higher than the 21 days recommended by Federation of Automobile Dealers Association (FADA),” Ind-Ra said in a statement.

However, it expects the overall automotive industry to continue to revive in the next two to three months, in line with improving economic indicators, it noted.

Over the past two-three months, original equipment manufacturers (OEMs) had been focusing on stocking-up at dealership level ahead of the peak demand expected during the festive season in October-November, Ind-Ra said.

Consequently, production levels had surged since August 2020, with production volumes for PVs and two-wheelers up 32 percent and 40 percent (year-on-year), respectively, in October this year, it added.

“However, the continued higher wholesale billings than retail registrations during August-October have led to a considerable inventory build-up at the dealership level, particularly for two-wheelers, with the retail sales lagging behind wholesales during this period,” Ind-Ra noted.

At October-end this year, average inventory for PVs at dealership level stood at 35-40 days as compared with 25-30 days in the same period last year.

Similarly, average inventory for two-wheelers at dealer level at October-end remained high at 50-55 days as against 35-40 days in October-end last year, Ind-Ra said.

Retail registrations of PVs fell 9 percent (year-on-year) in October this year, while the decline was much higher for two-wheelers, commercial vehicles and three-wheelers at 27 percent, 30 percent, and 65 percent (year-on-year), respectively, the rating agency said.

It suggests that demand at the consumer level is yet to reach the pre-COVID levels despite the festive season tailwind, it added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

S&P Global nears mega deal to buy IHS Markit: Source

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Data giant S&P Global Inc is nearing a deal to buy IHS Markit Ltd, according to a person familiar with the matter, creating a heavyweight in the increasingly competitive market for financial information.

The deal could be announced as soon as Monday, with S&P set to pay around $44 billion in stock, according to a report in the Wall Street Journal.

S&P Global and IHS did not immediately respond to Reuters’ requests for comment.

At that price, it would be the biggest deal of 2020 and a signed deal-making activity is accelerating as breakthroughs in COVID-19 vaccine-related developments improve the economic outlook.

S&P Global is renowned for providing debt ratings to countries and companies, as well as data on capital and commodity markets worldwide. It became a standalone business in 2011 when its then parent McGraw-Hill separated S&P from its education business.

IHS Markit was formed in 2016 when IHS, whose businesses range from data on automotive and technology industries to publishing Jane’s Defence Weekly, bought Markit Ltd in 2016 for around $6 billion. Markit, founded by former credit trader Lance Uggla, provides a range of pricing and reference data for financial assets and derivatives.

IHS has a market value of around $36.88 billion based on the stock’s last close on Friday, Reuters calculations showed, with its share price up around 22 percent so far this year.

The transaction is likely to face close examination from competition watchdogs, as the market for financial information becomes increasingly concentrated.

The London Stock Exchange is in the final stage of trying to win clearance for its planned $27 billion acquisition of data provider Refinitiv, which has been through a long review process by the European Union’s Competition Commissioner.

Refinitiv was carved out of Thomson Reuters by private equity giant Blackstone in 2018 when it bought a 55 percent stake in the business in its biggest bet since the 2008 financial crisis. Thomson Reuters, the parent of Reuters News, retains a 45 percent holding in the business.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Ola appoints GM veteran Jose Pinheiro to head operations of electric business

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Ola on Monday said it has appointed former General Motors executive Jose Pinheiro as Head of Global Manufacturing and Operations for its electric business.

In this role, Pinheiro will spearhead Ola’s ambitions to build world-class manufacturing facilities, starting with the world’s largest scooter factory, and then expanding to multiple such facilities across India, a statement said.

These manufacturing facilities will enable Ola to rapidly bring to market its wide range of two-wheeler products currently under development, it added.

His deep manufacturing expertise will be critical in building Ola’s entire range of two-wheeler products, starting with the soon to launch electric scooter, it noted.

Pinheiro was earlier the Vice President of Manufacturing for General Motors Latin America, based out of Sao Paulo and has over 45 years of leadership experience. He managed 16 GM industrial complexes across nine countries.

“I am excited to have Jose join our leadership team at Ola. His deep domain expertise will help us deliver the game-changing Ola electric scooter at scale and will help catalyse the Indian EV ecosystem. At Ola, we will continue to strive towards building in India for India and the world,” Ola Chairman and Group CEO Bhavish Aggarwal said.

Aggarwal said he was looking forward to working closely with Pinheiro to build world-class manufacturing facilities and accelerating the world’s movement towards sustainable mobility.

Speaking on his appointment, Pinheiro said the rapid pace of progress at Ola is impressive and energising.

“I am looking forward to contributing to Ola’s mission of sustainable mobility. More than anything else I am very excited to be in India and work with this passionate group of people,” he added.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vaccine optimism puts gold on course for worst month in four years

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Gold slid more than 1 percent on Monday and was set for its worst month since November 2016, as hopes of a coronavirus vaccine-led economic rebound lured investors into buying risk assets.

Spot gold fell 0.7 percent to $1,775.11 per ounce by 0650 GMT, shedding 5.4 percent this month. The metal also hit its lowest since July 2 at $1,764.29 earlier in the session. US gold futures dropped 0.7 percent to $1,775.70.

“Vaccine-inspired optimism about an economic bounce is really eroding the attraction of safe-haven investments like gold,” said Michael McCarthy, chief strategist at CMC Markets.

Vaccine optimism drove the dollar to a more than two-year low and put world stocks on course for a record month.

“Gold looks bearishly biased and I don’t see any signal of a trend reversing anytime soon,” said Margaret Yang, a strategist at DailyFX.

Though gold has reached over-sold territory, the overall trend is so bearish that a technical rebound may not last for long and be sustainable, she added.

Data showing China’s factory activity expanded at the fastest pace in more than three years in November also aided risk sentiment.

Investors await congressional testimony by U.S. Federal Reserve Chairman Jerome Powell this week.

“The risks are that the Fed will slow down or even halt its bond purchasing programme and that’s another reason to be cautious about the outlook for gold,” CMC’s McCarthy said.

But Citi said it expected bullion’s sell-off to taper in December with support in the mid-$1,700s.

“A renewed push above $2,000/oz in the next three-six months seems likely,” the bank said in a note, citing its bearish dollar outlook and low-interest rates as tailwinds.

Lower interest rates reduce the opportunity cost of holding gold.

Silver fell 2.2 percent to $22.19 an ounce, after dropping as much as 3.5% earlier in the session. Platinum fell 0.7 percent to $957.04, while palladium slipped 0.5 percent at $2,413.08.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government sees spend on priority vaccination for COVID-19 at Rs 18,000 cr; could cover 30 crore people

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The government’s back of the envelope calculation suggests the first phase of priority vaccination for COVID could entail a spend of Rs 18,000 crore. Sources say a double dose vaccination drive could fall in the range of Rs 600 per person, including the delivery and administration costs.

With the expert panel on vaccine administration comprising Niti Aayog and health ministry officials, in the process of identifying 30 crore priority beneficiaries like health care and sanitation workers, police, people with co-morbidities and the elderly, the projected cost of vaccination in the initial phase could settle around Rs 18,000 crore.

However, these are approximations as the actual cost of the vaccination have not been firmed up, sources cautioned. With the actual covid vaccine yet to pass human trials and receive regulatory approvals, it could be some time before India is able to procure the projected, priority 60 crore doses for the high-risk population.

Hence, the government hasn’t decided yet, on how much needs to be set aside for the COVID vaccination, either for this year or the next, sources explained.

But funds are not an issue at all. For an economy of India’s size, the vaccination budget is the least of the concerns, sources explain. “Whatever is the amount it will be provided”, sources say.

For a larger population, the government may look at a projected spend of Rs 48,000 crore – Rs 50,000 crore, including the high-risk groups. Depending of course on the efficacy and availability of the vaccine.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Banks in India to see capital decline over 2 years without fresh infusion: Moody’s

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Moody’s Investors Service on Monday said the bank capital will moderately fall in emerging Asia over the next two years, with India seeing larger capital decline without further infusion.

In a report, Moody’s said the uncertain trajectory of asset quality is one of the biggest threats for emerging market banks, as operating conditions remain challenging amid the current COVID pandemic.

The 2021 outlook for banks in emerging markets is negative, while the outlook for insurers is stable, it said.

“In the Asia Pacific region, banks’ rising nonperforming loans and insurers’ volatile investment portfolios are in focus. Capital will moderately fall in emerging Asia over the next two years, and banks in India and Sri Lanka will post larger capital declines without public or private injections,” Moody’s said.

It said non-performing loans (NPLs) will rise most for banks in India and Thailand because of the greater shock to their economies and historically poor performance of certain loan types.

In India, stress among non-bank financial institutions will also curtail their capacity to lend, Moody’s noted.

“Profit growth will be modest because of low-interest rate and subdued lending, but lower loan volumes should aid capital,” Moody’s Managing Director Celina Vansetti-Hutchins said in the ‘Emerging Markets Financial Institutions Outlook’ report.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Government calls all-party meet to discuss COVID-19 situation

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The government has called an all-party meeting to discuss the COVID-19 pandemic situation on December 4 that will be chaired by Prime Minister Narendra Modi, sources said on Monday.

Floor leaders of all parties from both houses of parliament have been called for the meeting, which will be held virtually on Friday at 10.30 am, sources told PTI.

The Parliamentary Affairs Ministry is coordinating the meeting and has reached out to floor leaders of all parties, they said.

This will be the second all-party meeting called by the government to discuss the COVID-19 situation since the outbreak of the pandemic.

The top brass of the government including Defence Minister Rajnath Singh, Home Minister Amit Shah, Health Minister Harsh Vardhan are expected to attend the meeting.

Parliamentary affairs minister Pralhad Joshi and minister of state Arjun Ram Meghwal will also attend the meeting.

The meeting is being held at a time when it is being contemplated to merge the winter session of parliament with the budget session in wake of rising COVID-19 cases in the national capital.

The meeting also assumes significance as it is being held after Modi’s visit to pharmaceutical companies in Ahmedabad, Hyderabad and Pune to review coronavirus vaccine development work there.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

After Cyclone Nivar, another storm likely to affect Tamil Nadu: IMD

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Less than a week after Cyclone Nivar battered Tamil Nadu, another storm is expected to affect the southern state, the India Meteorological Department (IMD) said on Monday.

The cyclone will cross the Sri Lanka coast on December 2 and will bring heavy rain over Tamil Nadu and Kerala, it said.

Last week, “very severe cyclonic storm” Nivar had hit Tamil Nadu. While there were no reports of loss of life, about 2.5 lakh people were housed in cyclone shelters in the state as part of safety measures.

The IMD has issued a red-colour coded warning for the southern areas of Tamil Nadu Kerala in view of the brewing storm and said that these areas are expected to receive heavy to very heavy rainfall.

As the sea is expected to become rough due to the weather system, fishermen are advised not to venture into the southeast and adjoining southwest Bay of Bengal from the night of December 1 and along and off east Sri Lanka coast, Comorin area, Gulf of Mannar and Tamil Nadu-Kerala coasts from forenoon of December 2 for the subsequent 24 hours.

Also, those who are out at sea are advised to return to the coast by November 30, it said.

According to the IMD, a well-marked low pressure area in the Bay of Bengal intensified into a depression.

“It is very likely to intensify further into a deep depression during the next 24 hours. It is also likely to intensify further into a cyclonic storm. It is very likely to move west-northwestwards and cross the Sri Lanka coast around the evening of December 2,” the IMD said.

“It is very likely to move nearly westwards thereafter and emerge into the Comorin area on December 3 morning, the Cyclone Warning Division of the IMD said.

The IMD said squally weather with wind speed would gradually increase becoming 55-65 kilometres per hour gusting to 75 kmph over southeast and adjoining southwest Bay of Bengal from the night of December 1 and 70-80 kmph gusting to 90 kmph over southwest Bay of Bengal, along and off Sri Lanka coast.

Winds with a speed of 45-55 kmph gusting to 65 kmph are likely over the Comorin area, Gulf of Mannar and Tamil Nadu-Kerala coasts from December 2 forenoon for subsequent 24 hours.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

COVID-19 impact: Office space leasing by co-working players to fall 58% in 2020, says report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Leasing of office space by co-working players is expected to fall 58 percent year-on-year to 3.4 million sq ft in 2020 across six major cities due to lower demand of flexible spaces from corporates, according to property consultant Savills India.

In 2019, the co-working operators had leased 8.1 million sq ft office space across six major cities — Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Chennai and Pune.

In its report, Savills said it “expects 3.4 million sq ft of take-up by coworking players in 2020, recording an 11 percent share of the total office leasing activity”.

The overall leasing activity is expected to reduce significantly in 2020 as against 2019, owing to delayed decision making by the occupiers, the consultant said but expected the numbers to increase steadily over the next two years.

As per the data, leasing of office space by co-working players in Bengaluru is estimated to fall at 1.1 million sq ft in 2020 from 2.3 million sq ft last year.

In Hyderabad, it is likely to drop to 1.1 million sq ft this year from 2.1 million sq ft.

The Delhi-NCR market will see co-working players leasing at 0.2 million sq ft in 2020 as against 1.5 million sq ft last year.

Leasing of office space by co-working segment in Pune and Mumbai is estimated to drop to 0.4 million sq ft during this year. Pune witnessed 1 million sq ft and Mumbai 0.6 million sq ft absorption in 2019.

In Chennai, 0.2 million sq ft is expected to be leased by co-working segment this year as against 0.6 million sq ft in 2019.

However, Savills India estimated the leasing activity by co-working operators to increase 42 percent to reach 4.9 million sq ft in 2021 over 2020.

The share of coworking space take-up in overall office leasing activity is poised to rebound to about 15 percent share in 2021, similar to the 2019 level.

In the year 2022, the number is expected to witness a further 25 percent annual growth and register leasing activity of 6.1 million sq ft.

“Over the years, shared office space has emerged as a separate asset class, bringing significant cost-advantages to occupiers,” Savills India MD, Research and Consulting, Arvind Nandan said.

At a juncture when co-working spaces were seeing strong growth, the outbreak of COVID-19 has changed the rules with social distancing and de-densification of workspace becoming imperative, Naveen Nandwani, Managing Director – Commercial Advisory & Transactions, Savills India said.

“However, we believe that flexible workspaces will reinvent and reposition themselves, emerging stronger on the other side of the pandemic,” Nandwani added.

UK-based Savills began its India operations in early 2016.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow