Author: Reuters

Trump raises stake in his media firm to nearly 65%

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

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Donald Trump has raised his stake in the company that operates his social media app Truth Social to nearly 65% as of last week, according to a filing on Tuesday.

The former US president and Republican presidential candidate secured 36 million shares of Trump Media & Technology Group (TMTG), increasing his stake from 57.6% as of March.

The stock has surged over 50% to $49.93 in the past five sessions but is still down about 25% from its closing peak on March 27.

Reuters reported last week that Trump would secure a stock bonus worth $1.3 billion from TMTG, equivalent to about half the majority stake he already owns in it, thanks to the wild rally in its shares.

The bonus also reflects the exuberant trading in TMTG’s shares, which have been on a roller coaster ride since the company listed on the Nasdaq last month through a merger with a special purpose acquisition company (SPAC) and was snapped up by Trump supporters and speculators.

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

India says foreign funds at GIFT City can take full investment from non-resident Indians

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

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India’s market regulator said on Tuesday that foreign funds set up at GIFT City in Gujarat state can take full investment from non-resident Indians and other Indian-origin citizens.

However, they will need to make granular disclosures about their investors if the fund holds more than 33% of its equity assets under management in a single Indian group.

The funds will have to either submit their investors’ identity documents such as passport or permanent account number (PAN) to the Securities and Exchange Board of India (SEBI) or adhere to the regulatory framework set by the International Financial Services Regulatory Authority, which regulates financial services in GIFT City.

The regulator also said that asset management companies should put in place a mechanism to prevent front-running and market abuse.

The mechanism should include enhanced surveillance, internal controls and escalation processes to identify, monitor and address specific types of misconduct, including front-running, insider trading and misuse of sensitive information, SEBI said.

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

Lenders to Go First weigh liquidation after court order on planes: Report

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

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Lenders to India’s Go First will meet later this week to discuss options for the bankrupt airline, including liquidation, after a court order allowed lessors of the aircraft to take back their planes, two bankers with Go First’s creditors said on Tuesday.

“There is no value left in the airline after the court order and chances of revival seem very grim,” one of the bankers said.

Go First’s resolution professional did not immediately respond to a Reuters’ email seeking comment.

The airline owes a total of 65.21 billion rupees ($780.88 million) to its creditors, which include Central Bank of India, Bank of Baroda, IDBI Bank and Deutsche Bank.

The Committee of Creditors (CoC) met on Monday and another meeting is scheduled for Thursday, both sources said.

The two bankers did not wish to be identified because they are not authorised to speak with the media.

Also Read: Delhi HC orders DGCA to deregister all Go First aircraft by next week

Go First has received two bids under the formal bankruptcy process – one from a consortium which includes budget carrier SpiceJet’s managing director Ajay Singh and Busy Bee Airways, and the second from Sharjah-based Sky One, Reuters previously reported.

Sky One’s Chairman Jaideep Mirchandani said on Friday the de-registration of aircraft does not alter its plans for the Indian aviation industry.

“If our bid goes through, Sky One can bring in its own assets to run and revive the airline as we are experienced lessors,” said Mirchandani.

Ajay Singh and Busy Bee’s majority shareholder Nishant Pitti did not respond to emails seeking comment.

Lenders may still choose to reject the bids on the table as they are not happy with the sums offered currently by both the applicants, the second banker said.

The bids include the value of a piece of land offered as collateral by the airline’s promoters, the banker said.

Reuters had earlier reported that lenders had sought higher bids.

While liquidation seems to be the most viable option under the present circumstances, it will be put to a vote once the committee formally rejects the two offers or if the applicants back out, both the bankers said.

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

UnitedHealth hackers took advantage of Citrix vulnerabilty to break in, CEO says

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

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Hackers broke into UnitedHealth’s tech unit on February 12 by exploiting a security vulnerability in software from private IT company Citrix that allows employees remote access to their desktop computers, the largest US health insurer will testify before a House panel this week.

UnitedHealth CEO Andrew Witty’s testimony before the House Energy and Commerce Committee, slated for Wednesday, will follow weeks of disruption to American healthcare since the insurer’s Change Healthcare unit was hacked.

On the morning of February 21, the cybercriminal gang AlphV, aka BlackCat, locked up Change Healthcare’s systems and demanded a ransom to unlock them, Witty will tell the House panel, according to a copy of his written testimony posted to the panel’s website on Monday.

“Not knowing the entry point of the attack at the time, we immediately severed connectivity with Change’s data centres to eliminate the potential for further infection,” the testimony says.

The criminals used compromised login credentials to remotely access a Change Healthcare Citrix portal that did not have multi-factor authentication, according to the testimony.

A Citrix spokesman didn’t immediately respond to a request for comment. It’s unclear which specific security flaw at Citrix was exploited by AlphV, but US officials issued multiple warnings about security loopholes in Citrix tools late last year, some of which were being used to breach healthcare groups.

The hearing before the panel’s subcommittee on oversight and investigations will focus on the cyberattack’s impact on patients and providers.

UnitedHealth has been working with the FBI and prominent cybersecurity firms to investigate the hack. Security experts from Google , Microsoft , Cisco and Amazon worked with teams from Mandiant and Palo Alto Networks to secure Change Healthcare’s systems after the breach, according to the testimony.

Last week, Witty said the company had paid the hackers a ransom to ensure the decryption of Change Healthcare’s systems, although the size of the payment is not known.

The company has been scrambling to contain the hit to healthcare payment processing across the country. Change processes 50% of all medical claims in the United States.

As of April 26, UnitedHealth Group had provided more than $6.5 billion in accelerated payments and no-interest, no-fee loans to thousands of healthcare providers, according to Witty’s testimony.

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Logitech posts first positive quarter in over two years

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

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Logitech International increased its sales during its fourth quarter, the computer peripherals maker said on Tuesday, snapping two-and-a-half years of sales downturns after a pandemic-driven boom.

The maker of computer mice and keyboards said its sales increased by 5% in US dollars and constant currency to $1.01 billion during the three months to March.

It was the first positive quarter reported by Logitech since October 2021. The Swiss-American company had been struggling in recent quarters, following an 80% sales surge during the COVID-19 years when people bought its products to work and play from home.

During the fourth quarter, Logitech’s non-GAAP operating profit soared 93% to $159 million.

For the full year to March, Logitech said its annual sales fell 5% in US dollars to $4.30 billion, better than its outlook for sales in the $4.2-$4.25 billion range.

Non-GAAP operating profit rose 19% to $699 million, the company said, better than its guidance for $610 million to $660 million.

Logitech is now aiming to increase its sales by 0%-2% in US dollars to $4.3-$4.4 billion over the next 12 months, while non-GAAP operating income is expected to be $685-$715 million.

Also Read: Apple’s iPad hit by European Union’s digital dominance crackdown

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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

Gold price rally could cut India’s demand to four-year low: WGC

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

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Global gold demand rose by 3% year-on-year to 1,238 metric tons in the first quarter of 2024, marking the strongest first quarter since 2016, due to active over-the-counter (OTC) trading, the World Gold Council (WGC) said on Tuesday.

Safe-haven demand, driven by geopolitical and economic uncertainty, investment in the OTC market, persistent central bank buying, and high demand from Asian buyers caused a rally in gold in March-April, pushing the first-quarter gold price to a record average of $2,070 per ounce.

Demand, excluding OTC, fell 5% to 1,102 tons in the first quarter as jewellery consumption lost 2% and physically-backed gold exchange traded funds (ETFs) experienced outflows – of 114 tons, according to the WGC, an industry body whose members are global gold miners.

Global central banks, which actively bought gold in 2022-2023, added 290 tons to their reserves, up 1% year-on-year and up 69% from the five-year quarterly average.

It was their strongest starting quarter to any year on the basis of WGC’s data going back to 2000. The central banks of China and India led.

WGC expects 2024 central banks to slow purchases slightly compared to last year’s 1,037.4 tons, but that they will remain higher than they were before 2022, Krishan Gopaul, WGC senior EMEA analyst, told Reuters.

”Although the buying momentum from central banks continues, we are taking a cautious look ahead – waiting to see if the recent gold price growth prompts some central banks to slow down purchases or some to sell part of their holdings,” Gopaul added.

Bar and coin investment, another major sector for gold consumption, rose 3% to 312 tons in the first quarter due to high demand for small gold bars in Asia. In China, bar and coin demand jumped by 68% to 110 tons, the strongest in more than seven years.

Physical demand in Asia, traditionally a region of price-sensitive investors, rose in the first quarter despite high prices, marking a shift in behaviour trends, the WGC said.

On the supply side, mine production increased by 4% to 893 tons, its record for the first quarter, while recycling rose by 12% to 351 tons, reaching the highest since the third quarter of 2020, as some holders of old gold jewellery saw an opportunity to cash in on higher prices.

Gold’s April price growth may prompt a further rise in recycling and a fall in jewellery demand, but elevated geopolitical risk and the quasi-investment role of jewellery in some countries would limit the impact, the WGC said.

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

Australian regulator examines possible contamination of Indian spice mixes

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

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Australia’s food safety agency is collecting information on the possible contamination of spice mixes sold by Indian companies MDH and Everest to decide if a food recall is required, it said on Tuesday, the latest regulator to step up scrutiny.

Hong Kong suspended sales this month of three MDH spice blends and an Everest mix for fish curry. Singapore ordered a recall of the same Everest mix as well, flagging high levels of ethylene oxide, which is unfit for human consumption and a cancer risk over long exposure.

“We are working with international counterparts to understand the issue and with federal, state and territory food enforcement agencies to determine if further action is required in Australia,” Food Standards Australia New Zealand said in a statement.

Such action could include a recall, it said, adding, “Ethylene oxide is not permitted to be used as a treatment for foods sold in Australia.”

MDH and Everest did not immediately respond to Reuters’ requests for comment. They have previously said their products are safe for consumption.

Their spice brands, among the most popular in India, are also sold in Europe, Asia and North America.

The US Food and Drug Administration (FDA) said on Friday it is also gathering additional information on the matter, while Indian authorities have recently inspected the plants of MDH and Everest.

In 2019, a few batches of an MDH product were recalled in the US for salmonella contamination. In 2023, the FDA ordered a recall of two Everest spice mixes for the same contamination risk.

India is the biggest exporter, consumer and producer of spices in the world. MDH and Everest are among the biggest companies in India’s spices market, which Zion Market Research estimates was worth $10.44 billion in 2022. The government says India exported products worth $4 billion during 2022-23.

India said last week it had sought data on MDH and Everest exports from authorities in Hong Kong and Singapore after the regulatory action.

On Tuesday, Hong Kong’s Centre for Food Safety said in a statement the Indian embassy there has also been informed “of the test results for follow-up actions,” without elaborating further.

Also Read: MDH says reports on contaminated masalas are baseless, says its spices are safe

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

India’s Tata Sons raises stake in Tata Play, Temasek exits: Report

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

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Tata Sons, the holding company of India’s Tata Group, has increased its stake in satellite TV provider Tata Play to 70% by buying a 10% stake from Singapore state investment firm Temasek for about $100 million, the Economic Times reported on Tuesday.

Tata Play has informed the Ministry of Information and Broadcasting about the change in shareholding, complying with regulations governing direct-to-home (DTH) companies, according to the report, which cited people familiar with the matter.

With Temasek’s exit, Tata Play will operate as a 70:30 joint venture between Tata and Walt Disney, the latter inheriting its stake from the acquisition of Star India via the purchase of 21st Century Fox’s India assets.

Despite a decrease in valuation from its pre-pandemic target of $3 billion to $1 billion, Tata Play, which also offers video streaming, remains crucial for the Tata Group as its main consumer-facing business in the media and entertainment sector.

Talks between Tata Sons and Disney about the latter’s stake are underway, with Disney looking to exit Tata Play since DTH is not core to its business, the Economic Times said.

Plans for both Temasek and Disney to exit Tata Play through an IPO were postponed due to market conditions and challenges in the DTH sector, according to the report.

Tata Play received approval from India’s market regulator for its proposed public issue in May 2023.

In February, Reliance Industries and Disney announced the merger of their India TV and streaming media assets, creating an $8.5 billion entertainment juggernaut.

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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

OpenAI’s ChatGPT targeted in Austrian privacy complaint

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

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Microsoft-backed startup OpenAI on Monday found itself the target of a privacy complaint by advocacy group NOYB for allegedly not fixing incorrect information provided by its generative AI chatbot ChatGPT that may breach EU privacy rules.

ChatGPT, which kickstarted the GenAI boom in late 2022, can mimic human conversation and perform tasks such as creating summaries of long text, writing poems and even generating ideas for a theme party.

NOYB said the complainant in its case, who is also a public figure, asked ChatGPT about his birthday and was repeatedly provided incorrect information instead of the chatbot telling users that it did not have the necessary data.

The group said OpenAI refused the complainant’s request to rectify or erase the data, saying that it was not possible to correct data and that it also failed to disclose any information about the data processed, its sources or recipients.

NOYB said it had filed a complaint with the Austrian data protection authority asking it to investigate OpenAI‘s data processing and the measures taken to ensure the accuracy of personal data processed by the company’s large language models.

“It’s clear that companies are currently unable to make chatbots like ChatGPT comply with EU law, when processing data about individuals,” Maartje de Graaf, NOYB data protection lawyer, said in a statement.

“If a system cannot produce accurate and transparent results, it cannot be used to generate data about individuals. The technology has to follow the legal requirements, not the other way around,” she said.

In the past, OpenAI has acknowledged the tool’s tendency to respond with “plausible-sounding but incorrect or nonsensical answers,” an issue it considers challenging to fix.

Also Read: Italy watchdog says OpenAI’s ChatGPT breaches privacy rules

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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

Tesla CEO Elon Musk kicks off surprise trip to Beijing, sources say

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

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A private jet linked to Tesla CEO Elon Musk landed in Beijing on Sunday, a flight tracking app showed, as two people with knowledge of the matter said the billionaire was kicking off a surprise visit to the automaker’s second-biggest market. Musk is seeking to meet senior Chinese officials in Beijing to discuss the rollout of Full-Self Driving (FSD) software in China and to obtain approval to transfer data collected in the country abroad to train algorithms for its autonomous driving technologies, one of the people said.

Tesla has since 2021 stored all data collected by its Chinese fleet in Shanghai as required by Chinese regulators and has not transferred any back to the United States.

The US electric vehicle maker rolled out FSD, the most autonomous version of its Autopilot software, four years ago but has yet to make it available in China despite customers urging it to do so.

Musk said this month Tesla may make FSD available to customers in China ”very soon”, in response to a query on social media platform X.

Rival Chinese automakers such as Xpeng have been seeking to gain an advantage over Tesla by rolling out similar software.

Musk’s visit to China was not flagged publicly and the people spoke on condition of anonymity because they were not authorised to speak with media. Tesla did not respond immediately to a request for comment.

The trip came just over a week after he scrapped a planned visit to India to meet with Prime Minister Narendra Modi, citing ”very heavy Tesla obligations”.

The company said this month it would lay off 10% of its global workforce as it grapples with falling sales and an intensifying price war for EVs led by Chinese brands.

Also read: Elon Musk is not the only one pouring more money on electric cars

LANDED IN BEIJING

A Gulfstream private jet with tail number N272BG, which is registered to Falcon Landing, a company connected to SpaceX and Tesla, landed at Beijing Capital Airport on Sunday at 0603 GMT, according to Chinese flight tracking app Flight Manager.

The other jet registered under Falcon Landing is N628TS, which is Musk’s main jet that he used to travel to China on his last trip nearly a year ago when he met with Chinese government officials in Beijing and visited Tesla’s Shanghai factory.

Tesla has sold more than 1.7 million cars in China since it entered the market a decade ago and the Shanghai factory is its largest globally.

Musk’s visit coincides with the Beijing autoshow, which opened last week and ends on May 4. Tesla does not have a booth at China’s largest autoshow and last attended in 2021.

Also read: Tesla cuts global prices, full self-driving software now $8,000 amid EV price war

GM CEO Mary Barra made an unannounced visit to the show in the world’s biggest auto market on Friday, according to two people with knowledge of her schedule. GM did not immediately respond to a request for comment.

Also on Friday, Grace Tao, Tesla’s vice president in charge of external relations in China, published a commentary on the social media account of state media outlet People’s Daily, arguing that autonomous driving technologies would be the new growth engine for the EV industry.

Tao said in the article that Tesla was leading autonomous driving research and development with its ”end-to-end neural network” technology and data collected from millions of cars on the road.

China’s complicated traffic conditions with more pedestrians and cyclists than in many other markets provide more scenarios that are key for training autonomous driving algorithms at a faster pace, according to industry experts.

Musk said last week Tesla would introduce new, cheaper models using its current EV platforms and production lines and would offer a new ”robotaxi” with self-driving technology. He said in a post on X this month that he would unveil the robotaxi on August 8.

Tesla shares are down almost a third since the start of the year as concerns have grown about the EV maker’s growth trajectory. Last week, Tesla reported its first decline in quarterly revenue since 2020 when the COVID-19 pandemic slowed production and deliveries.

Also read: US launches probe into Tesla’s 2 million vehicle recall over autopilot concerns

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