Month: February 2021

Military coup in Myanmar, Suu Kyi detained: Reports

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

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Reports say a military coup has taken place in Myanmar and State Counsellor Aung San Suu Kyi has been detained under house arrest. Online news portal Myanmar Now cited unidentified sources about the arrest of Suu Kyi and her party’s chairperson early Monday and did not have further details.

All communications to Naypyitaw appeared to have been cut and Suu Kyi’s National League for Democracy party could not be reached. Myanmar lawmakers were to gather Monday in the capital Naypyitaw for the first session of Parliament since last year’s election, with tension lingering over recent comments by the military that were widely seen as threatening a coup.

Suu Kyi captured 396 out of 476 seats in the combined lower and upper houses of Parliament, far above the 322 needed to secure a majority. But the army-drafted constitution of 2008 grants the military 25 percent of the total seats, enough to block constitutional changes. Several key ministerial positions are also reserved for military appointees. The 75-year-old Suu Kyi is by far the country’s most dominant politician and became the country’s leader after leading a decades-long nonviolent struggle against military rule.

The military, known as the Tatmadaw, charged that there was massive voting fraud in the election, though it has failed to provide proof. The state Union Election Commission last week rejected its allegations. Amid the bickering over the allegations, the military last Tuesday ramped up political tension when a spokesman at its weekly news conference, responding to a reporter’s question, declined to rule out the possibility of a coup. Maj. Gen. Zaw Min Tun elaborated by saying the military would follow the laws in accordance with the constitution.

Using similar language, Commander-in-Chief Senior Gen. Min Aung Hlaing told senior officers in a speech Wednesday that the constitution could be revoked if the laws were not being properly enforced. Adding to the concern was the unusual deployment of armored vehicles in the streets of several large cities. On Saturday, however, the military denied it had threatened a coup, accusing unnamed organizations and media of misrepresenting its position and taking the general’s words out of context.

On Sunday, it reiterated its denial, this time blaming unspecified foreign embassies of misinterpreting the military’s position and calling on them not to make unwarranted assumptions about the situation. U.S. officials at the National Security Council and the State Department said they were aware of the reports but could not confirm a coup and detentions had taken place.

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

Five reasons why fractional ownership is the future of India’s real estate

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

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Authored by Shiv Parekh

If there is one thing this pandemic has done, it has compelled us to re-evaluate how we make financial decisions; particularly how we save and invest. 2020 was a year of hardship and uncertainty; as if the pay cuts and lay-offs weren’t bad enough, thousands of people lost their hard-earned investments in stock markets and mutual funds, while some had to resort to breaking their fixed deposits or selling off property to access their funds.

The questions lie on how to make an investment that is pandemic-proof and stable, provides regular and liquid returns, straight to our pockets, and provides long-term capital appreciation. Interestingly, one investment form stood out on all three counts in the past year — fractional ownership of commercial real estate (CRE). In India, it is still at a nascent stage, but the market is already estimated to be worth $5 billion and growing. Fractional ownership is tipped to be the future of the real estate market because it solves one of the biggest problems with the commercial property — the high entry barrier or capital investment required.

Making real estate affordable

Imagine a premium office space on sale for Rs 100 crore. Normally, such a big investment would only be within the reach of High Net Worth Individuals (HNWI). But with fractional ownership, one can now invest as little as Rs 10 lakh and be part-owner of the property and enjoy rental returns as high as 6 percent-10 percent per annum. Such an investment could fetch an investor Rs 60,000 to Rs 1 lakh per year in rental yield. Compare this to residential property, where an investment of the same amount would have yielded just 1.5 percent-3 percent (or Rs 15,000 to Rs 30,000 per year). Not to mention, residential realty was hit badly by the pandemic, with property values falling by 2 percent-7 percent in the past year.

Stable asset, growing market

Unlike the rest of the financial market, the commercial property only witnessed a slight slowdown during the early months of the lockdown last year and quickly bounced back in Q3. Since then, net absorption of CRE increased by 63 percent, while new completions grew by 59 percent when compared to the preceding quarter.

Elsewhere in the world, in major cities like London, Dubai, Stockholm, etc., real estate took a hit following the Covid-19 outbreak, but industry experts have reported that office leasing continued to grow in India during the same period due to its strong outsourcing sector. In fact, international companies (mostly based in the US and EMEA) account for more than 63 percent of office space leased in our country. This should serve as a healthy indicator to Indian investors — both resident and NRIs — that it’s time they grab a slice of the real estate pie as well. In fact, this is the right time to invest, with CRE prices set to boom in the future.

Long-haul tenants

In residential property, tenants tend to vacate the house frequently, and the owner loses out on rental income until they find another tenant. In commercial property, the rental lease generally lasts three years, and sometimes longer. With Grade A properties, the tenants are usually MNCs, banks, or IT companies with deep pockets; such tenants do not default on rent but make timely payments. They also prefer to decorate the premises on their own, as per their preferences. Further, such tenants also tend to extend the rental lease due to the time, money and effort they put in to convert the property into their offices. It is advisable to buy into a property that is pre-leased for better returns.

Straight to your pocket

Every month, the rental returns will be credited straight to your bank account. This is unlike bank deposits or bonds, where you have to wait for the investment to mature and the lock-in period to expire before you can access your earnings.

The increasing rate of returns

Fractional ownership of commercial property ensures an increasing rate of returns both in terms of the regular rental yield and capital appreciation as well. Commercial property has provided 16 percent CAGR over the past five years in India. Apart from the growth of capital value, if you invest with a reputable real estate company, you can also be assured of a hike of 15 percent in the rental returns every three years. This increase is built into the rental agreement, to hedge against inflation in the future, keeping your investment stable over the long haul.

Fractional real estate is what you could call a unicorn investment — that rare combination of high returns but low risk. It brings the hefty returns of commercial property within reach of the common man. The investors have to do due diligence on the property, vis a vis location, the local zoning laws, rental yield, potential for capital appreciation and the kind of tenants it will attract.

Shiv Parekh is a real estate tech entrepreneur and founder of hBits, a fractional real estate platform

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: All 20 districts in J&K declared as ‘Green Zone’

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

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Jammu and Kashmir government on Sunday notified all the 20 districts in the Union territory as ‘Green Zone’. An official statement said that the government has notified all Jammu and Kashmir districts as ‘Green Zone’ areas with the exception to Lakhanpur containment zone.

“The circular has been issued in exercise of powers conferred under Section 24 of Disaster Management Act, 2005 by State Executive Committee after a ‘detailed review of the current COVID situation with the Financial Commissioner, Health; Divisional Commissioner Jammu/Kashmir”, the statement said.

Citing the “trend in new cases particularly the recent fall in new cases even after significant movement of persons travelling to J&K and between provinces/districts with the risk perception of the Health Department vis-A-vis each district and the need to control further spread of COVID-19”, the circular said that, all the districts of Jammu and Kashmir provinces will fall under ‘Green Zone’ category, however with Lakhanpur containment zone on NH-44 with a buffer of 500 meters radius and Jawahar Tunnel area, on either sides as ‘Red Zone’ demarcated areas.

“The categorization of districts into Red and Green Zones/Districts will be followed for the purposes of implementation of permitted activities in the respective districts as per separate directives issued by State Executive Committee (SEC).”

“The classification of the districts, as per the circular, will be reviewed periodically and any further modifications will be made by the Government of Jammu and Kashmir”, the statement 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

Aung San Suu Kyi and other Myanmar leaders arrested, says party spokesman

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

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Myanmar’s leader Aung San Suu Kyi and other senior figures from the ruling party have been detained in an early morning raid, the spokesman for the governing National League for Democracy (NLD) said on Monday.

The move came after days of escalating tension between the civilian government and the powerful military that stirred fears of a coup in the aftermath of an election the army says was fraudulent.

NLD spokesman Myo Nyunt told Reuters by phone that Suu Kyi, President Win Myint and other leaders had been “taken” in the early hours of the morning.

“I want to tell our people not to respond rashly and I want them to act according to the law,” he said, adding that he expected to be arrested himself. Reuters was subsequently unable to contact him.

Phone lines to Naypyitaw, the capital, were not reachable in the early hours of Monday. Parliament had been due to start sitting there on Monday after a November election the NLD had won in a landslide.

A military spokesman did not answer phone calls seeking comment.

A witness said soldiers had been deployed outside city hall in the main city of Yangon.

State-run MRTV television said in a Facebook post that it was unable to broadcast due to technical issues.

An NLD lawmaker, who asked not to be named for fear of retaliation, said another of those detained was Han Thar Myint, a member of the party’s central executive committee.

Nobel Peace Prize winner Suu Kyi, 75, came to power after a 2015 landslide election win that followed decades of house arrest in a struggle for democracy that turned her into an international icon.

Her international standing was damaged after hundreds of thousands of Rohingya fled army operations into a refuge from Myanmar’s western Rakhine state in 2017, but she remains hugely popular at home.

Myanmar’s military had said on Saturday it would protect and abide by the constitution and act according to law after comments earlier in the week had raised fears of a coup.

Myanmar’s election commission has rejected the military’s allegations of vote fraud, saying there were no errors big enough to affect the credibility of the vote.

The constitution reserves 25 percent of seats in parliament for the military and control of three key ministries in Suu Kyi’s administration.

Murray Hiebert, a Southeast Asia expert at Washington’s Center for Strategic and International Studies think tank, said the development was a challenge for the new U.S. administration of President Joe Biden.

“The U.S. as recently as Friday had joined other nations in urging the military not to move forward on its coup threats. China will stand by Myanmar like it did when the military kicked out the Rohingya,” he said.

“The Biden Administration has said it will support democracy and human rights. But the top military officers are already sanctioned so it’s not clear immediately clear what concretely the US can do quickly.”

John Sifton, Asia advocacy director for Human Rights Watch, said Myanmar’s military had never submitted to civilian rule and called on the United States and other countries to impose “strict and directed economic sanctions” on the military leadership and its economic interests.

Stay tuned with all the live action and updates with our Budget 2021 Live blog.

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

Trump announces legal defence team for Senate impeachment trial

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

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Former US president Donald Trump has announced his legal defence team for his Senate impeachment trial which is scheduled to begin on February 8. Trump became the first president in the US history to be impeached twice when 10 of his fellow Republican Congressmen joined Democrats in the House of Representatives on January 13 to charge him with inciting an unprecedented insurrection at the US Capitol on January 6.

The Democrats need two-thirds of the vote for the Senate impeachment. If convicted, he could face being barred from ever holding office again. Trump is the first US president facing an impeachment trial after he left the presidency. This is for the second time in about a year that he is likely to be acquitted by the Senate, as the Democrats do not have enough votes.

Currently, both the Democrats and the Republicans have 50 members each in the 100-seat Senate. The Democrats need the support of at least 17 Republican Senators to reach the two-thirds majority mark. Trial lawyers David Schoen and Bruce L Castor Jr will head Trump’s impeachment defence legal team, bringing national profiles and significant trial experience in high-profile cases to the effort, according to a statement issued by the office of former President Trump.

Notably, Schoen has already been working with Trump and other advisors to prepare for the upcoming trial, and both Schoen and Castor agree that this impeachment is unconstitutional – a fact 45 Senators voted in agreement last week, the statement said. It is an honour to represent the 45th President, Donald J Trump, and the United States Constitution said Schoen.

Castor said: I consider it a privilege to represent the 45th President. The strength of our Constitution is about to be tested like never before in our history. It is strong and resilient. A document written for the ages, and it will triumph over partisanship yet again, and always. Last month, Senate Majority Leader Chuck Schumer said that the United States Senate would begin the impeachment trial of former president Trump on February 8.

Also Read: Republicans press Biden to downsize $1.9 trillion COVID-19 relief plan

In a bipartisan vote on January 13, the Democratic-controlled House impeached 74-year-old Trump for ”incitement of insurrection” for his actions on January 6, when he delivered a speech inciting his supporters to storm the US Capitol. The violence temporarily halted the counting of Electoral College votes and resulted in the deaths of five individuals, including a police officer.

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

Agriculture Minister not giving correct facts on farm bills, Pawar counters Tomar

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

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NCP president Sharad Pawar said on Sunday that Agriculture Minister Narendra Singh Tomar is not bringing out ”correct facts” on the three farm bills. His reaction came after Tomar expressed dismay over Pawar’s tweets criticising the farm laws, saying they were a mix of ”ignorance and misinformation”, and hoped that the veteran leader will change his stand after knowing the ”facts”.

In a series of late-night tweets in Hindi, Pawar said, ”@nstomar ji is not bringing out correct facts before people. He has been assuring that the new laws will not affect the mandis but farmers unions are of opinion that the provisions under law favour rival companies.” ”Under the new laws, farmers can sell their produce outside mandis but have no protection of MSP when they sell their produce to private buyers. This is what the protesting farmers have been saying since the beginning. It has not been assured that farmers will get the right price from the corporate sector in long term.” Pawar said last year the government, without taking any political party or farmers into confidence passed the three farm bills. He said it is the duty of the government to assure the farmers and appropriate discussions had to take place at the right time.

In a series of tweets, Pawar had on Saturday said the new agriculture laws of the Union government will adversely impact the Minimum Support Price (MSP) procurement and weaken the ’Mandi’ system. Responding to the NCP leader’s remarks, Tomar said Pawar, who is a veteran leader, is also considered well-versed with the issues and solutions relating to agriculture. ”Pawar himself tried hard to bring the same agriculture reforms earlier.” ”Since he speaks with some experience and expertise on the issue, it was dismaying to see his tweets employ a mix of ignorance and misinformation on the agriculture reforms. Let me take this opportunity to present some facts,” Tomar said on Twitter.

The minister countered Pawar’s tweet which said that the amended Essential Commodities (EC) Act ”may lead to apprehensions that corporates may purchase commodities at lower rates and stockpile and sell at higher prices to consumers.” ”The apprehension has no basis. Under the EC Act, the central government can intervene in case of extraordinary circumstances including war, famine, extraordinary price rise and natural calamities of grave nature,” Tomar said.

Also Read: Govt offer on farm laws still stands; phone call away for talks: Modi in all-party meeting

He said the new laws encourage additional choice channels for farmers as they can sell their produce to anyone, anywhere with a hassle-free movement in and outside the state to realise a competitive and better net price for their produce. ”This doesn’t affect the current MSP (minimum support price) system,” he added.

Under the new ecosystem, the minister said, the mandis are not affected. Instead, they will be more competitive and cost-effective in terms of services and infrastructure; and both the systems will synergistically co-exist for the common interest of farmers. Tomar said, ”As he (Pawar)is such a veteran leader, I would like to believe that he was genuinely misinformed of the facts. Now that he has the right facts, I hope he will also change his stand and also explain the benefits to our farmers.”

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

Stock Market Highlights: Indices cheer Budget annoucements; Sensex, Nifty end 5% higher; Banking index up 8%

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

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Stock Market Highlights: Indian indices settled over 5 percent higher on Monday as investors cheer Budget announcements. Gains in the domestic indices were mainly led by banking, financial and auto stocks. The Nifty Bank rose 8 percent after the FM announced measures to clean up the NPAs in the sector.

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

Exxon, Chevron CEOs discussed merger in early 2020

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

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The chief executives of ExxonMobil Corp and Chevron Corp held preliminary talks in early 2020 to explore combining the two largest US oil producers in what would have been the biggest merger of all time, according to people familiar with the matter.

The discussions, which are no longer active, are indicative of the pressure the energy sector’s most dominant companies faced as the COVID-19 pandemic took hold and crude prices plunged.

The talks between Exxon Chief Executive Darren Woods and Chevron CEO Mike Wirth were serious enough for legal documents involving certain aspects of the merger discussions to be drafted, one of the sources said. The reason the talks ended could not be learned.

The sources requested anonymity because the matter is confidential. Exxon and Chevron, which have market capitalizations of $190 billion and $164 billion, respectively, declined to comment.

Exxon and Chevron’s shares nosedived last year after a Saudi-Russian price war and the fallout from the novel coronavirus outbreak caused the value of oil to the crater. Exxon’s stock was hit hardest, as investors raised concerns about the company’s long-term profitability and spending decisions.

In their talks, the CEOs of Exxon and Chevron envisioned achieving synergies through massive cost cuts to help weather the downturn in energy markets, one of the sources said. At the end of 2019, Exxon employed about 75,000 people and Chevron roughly 48,000.

Following the aborted talks with Exxon, Chevron went on to acquire oil producer Noble Energy in a $5 billion cash-and-stock deal that was completed in October.

A combination of Exxon and Chevron would have faced significant hurdles, including antitrust concerns and objections from corporate rivals. Some U.S. lawmakers, mainly Democrats, have faulted Big Oil for contributing to climate change, which President Joe Biden’s administration has made a top priority.

News of the unsuccessful talks emerged as Exxon has come under pressure from some of its shareholders over its strategic direction.

Engine No. 1, an investment firm based in San Francisco, last week nominated four directors to Exxon’s board and is pushing the company to spend its cash better, preserve its dividend, and invest more in clean energy. Exxon is also in the crosshairs of hedge fund D.E. Shaw, which is pressuring the company to cut costs and improve performance.

Exxon reports fourth-quarter results on February 2. Chevron last week reported a surprise $11 million fourth-quarter loss as low margins on fuel, acquisition costs and foreign currency effects overwhelmed improved drilling results.

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