Month: March 2024

Alibaba spurs price war in cloud computing with steep cuts

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

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JD.com Inc. took less than a day to respond to Alibaba Group Holding Ltd.’s price cuts in cloud computing services with its own sharp reductions, an aggressive round of competition that will benefit customers and erode profits at China’s leading technology companies.

Alibaba began slashing prices by as much as 55% on more than 100 services Thursday in a bid to win back customers in the hotly contested market. JD.com, a rival in e-commerce and cloud services, responded later the same day with its own round of price cuts, unveiled on the company’s WeChat account. Alibaba’s stock fell as much as 1.9%, while JD was little changed.

The moves by Alibaba mark one of its more aggressive bids to fend off competition from the likes of Tencent Holdings Ltd., Baidu Inc. and JD.com. Alibaba had planned to spin off its cloud business into an independent, publicly traded unit, but called off the split last year in a reversal that stunned investors.

The company is now focusing on growing the public cloud — the domestic services arm aimed at enterprise customers — given US sanctions curtailing the supply of advanced chips to Chinese firms. Chief Executive Officer Eddie Wu, who took the helm last year, has taken direct control of the unit and revamped major lines.

Alibaba has struggled over the past year to revamp its vast e-commerce, logistics and cloud empire in the face of fierce competition and geopolitical risks. The company is looking to revive growth after two years of regulatory scrutiny and Covid-era economic turbulence. It seeks to hive off non-core assets to raise capital, while dividing its sprawling operations into more clearly defined areas.

But the cloud — the business spawned over a decade ago from the need to support a mammoth e-commerce operation — remains a focal point, particularly as demand for computing power rises alongside a surge in AI development. Yet in recent years, it’s shed clients to not just its usual rivals but also state-backed entrants and relative newcomers like Huawei Technologies Co.

Now Alibaba may have galvanized the competition. In its post on Thursday, JD declared its intent to compete, though with few specifics.

“Cut all you like, let’s fight to the end!” the company proclaimed in a big banner-like declaration.

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

Congress approves interim funds to avert US government shutdown

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

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Congress approved temporary funding to avert a Saturday partial US government shutdown, sending the bill to President Joe Biden for his signature.

The interim measure would extend funds for some departments through March 8 and others through March 22 as lawmakers work out differences on delayed full-year spending packages for the fiscal year that began October 1.

The Senate passed the bill on a 77-13 vote on Thursday night, hours after the House acted on it. The White House has said Biden supports the temporary funding.

House Republican leaders agreed to the fourth interim spending measure of the fiscal year after reaching a deal with Democrats to fund parts of the government through September 30.

“I am happy to inform the American people that there will be no government shutdown on Friday,” Senate Majority Leader Chuck Schumer said in a prepared statement.

Biden said in a statement that the congressional action was good news but added: “I want to be clear: this is a short-term fix.”

“In the days ahead, Congress must do its job and pass full-year funding bills that deliver for the American people,” he said.

The longer-term agreement covers government departments accounting for about 27% of federal agency spending, and Republicans have been told to expect few victories when details of the agreement are released this weekend.

“This is the House GOP conference coming to terms with reality,” Representative Patrick McHenry said, noting the GOP does not control the Senate or White House. “In this environment, singles and doubles are wins.”

The deal doesn’t include any Ukraine aid, which House Republicans are holding up as they demand a range of new restrictions on US immigration and border policies. House Speaker Mike Johnson said he doesn’t expect the House to act on Ukraine aid for at least another three weeks.

Johnson relied on Democrats to pass the stopgap in the House, with 97 Republicans voting against the bill.

Emerging from a morning Republican meeting, several fatigued conservatives expressed discontent with the deal but signaled they would let the speaker keep his job, for now.

Pennsylvania Republican Scott Perry, a member of the ultraconservative Freedom Caucus, said he didn’t see any “wins” for his party in the spending talks, but said the speaker is not going to lose his job over it.

South Carolina Republican Ralph Norman, a vocal opponent of the spending deal, said there is no effort underway to oust Johnson. Texas Republican Chip Roy, another hardliner, dodged the question.

“This is the Swamp doing what the Swamp does,” he said.

It only takes three Republican dissidents to remove the speaker if all lawmakers are present and voting, unless Johnson wins support from Democrats, either by voting for him or abstaining from a vote on the speaker.

The longer-term deal reached this week includes funds for the departments of Agriculture, Transportation, Housing and Urban Development, Veterans Affairs and Energy, along with the Food and Drug Administration. These faced a Saturday shutdown deadline. The deal also includes full-year funding for the the Environmental Protection Agency and departments of Commerce, Justice and Interior.

Funding the rest of the government — including the Defense, Homeland Security and Health and Human Services departments — will be more difficult to negotiate before the new March 22 deadline. Republicans have sought to limit funds for reproductive services and to change US migration laws.

“Those could be problematic,” warned House Democratic Caucus Chairman Pete Aguilar.

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

China factory activity slows as weak demand hampers growth

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

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China’s factory activity shrank for the fifth straight month in February, suggesting weak demand remains an obstacle for the economy.

The official manufacturing purchasing managers index for last month edged lower to 49.1, the National Bureau of Statistics said in a statement Friday. That compares to the median forecast of 49.0 by economists surveyed by Bloomberg News, and January’s reading of 49.2.

A gauge of non-manufacturing activity rose to 51.4, versus an estimate of 50.7, helped by a pickup in travel and tourism during a recent long holiday. Any reading above the 50 mark suggests an expansion from the previous month, while a figure below that denotes contraction.

China’s benchmark CSI 300 Index rose 0.2% on Friday morning, taking its gain for the week to 0.9%. The yuan was down 0.12% at 7.1967 versus the dollar as of 10:20 AM in Shanghai.

The data added to signs of an uneven recovery in the world’s second biggest economy. This will likely add pressure on fiscal and monetary policymakers to act after top leaders vowed to maintain a pro-growth stance in 2024.

China is still grappling with several key issues, including an unfolding property crisis and stubborn deflation. A recent stock market rout has underscored an erosion of investor confidence, despite Beijing’s attempt to turn things around, notably by unleashing more long-term cash for banks and broadening developer access to loans.

Earlier data showed that the nation’s home sales slump dragged on in February, though the figures were also impacted by the holiday break.

Zhiwei Zhang, president and chief economist of Pinpoint Asset Management Ltd., said in an email after the results that the holiday period makes it hard to “get a clear picture of economic momentum.”

Economists expect President Xi Jinping’s government to announce a fairly ambitious 2024 growth goal when the legislature meets next week. That will be a tougher this year than in 2023 given the economy benefited the from the post-pandemic reopening.

The Caixin manufacturing PMI rose to 50.9 from 50.8 in January, beating an estimate of 50.7. The private survey, which covers mainly smaller and export-oriented businesses, is usually more upbeat than the official readings.

“This is particularly true for the manufacturing sector,” Zhang said. “Other data points show a mixed picture, with travel data strong but housing data weak.”

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

What’s cooking? Sharad Pawar invites Shinde, Fadnavis, Ajit Pawar for lunch at Baramati home

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

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Nationalist Congress Party (Sharadchandra Pawar) president Sharad Pawar has invited Maharashtra Chief Minister Eknath Shinde, deputy CMs Devendra Fadnavis and Ajit Pawar to share a meal at his residence in Baramati during their visit to his hometown on March 2.

Shinde along with his deputies Fadnavis and Ajit Pawar, all political rivals of Sharad Pawar, will be attending a job fair, ‘Namo Maharojgar Melava’, in the premises of Vidya Pratishthan college in Baramati town of Pune district.

The surprise invitation to Shinde and the two deputy CMs by senior Pawar comes in the backdrop of a split in the NCP, a party founded by him in 1999, and strained ties with his nephew Ajit Pawar, who parted ways with him and joined the Shiv Sena-BJP government in July last year.

There are also talks to Ajit Pawar, who has got the NCP name and symbol following the split, thinking of fielding a candidate for the Baramati Lok Sabha constituency, currently represented by his cousin and Sharad Pawar’s daughter Supriya Sule.

In the invitation (which is part of a letter dated February 28) extended to Shinde, Fadnavis and Ajit Pawar, the former Union minister stated that as parliamentarians, he and Sule would like to attend the official event in Baramati.

The Rajya Sabha MP, in the letter addressed to Shinde, said as president of Vidya Pratishthan, he would be glad to welcome the CM on the premises of the educational institute.

He urged Shinde along with Fadnavis and Ajit Pawar to accept his invitation for a meal at his residence in Baramati, ‘Govindbaug, after the event at Vidya Pratishthan.

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

Marketbuzz Podcast With Hormaz Fatakia: Here are 10 key talking points

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

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Hello and Welcome to the Marketbuzz Podcast on CNBC-TV18. Lets bring you up to speed with everything you need to be aware of before the day’s trading action.

• GDP data may provide some cheer to the market
• Nifty struggles to cross 22,000 still down for the week
• Nifty Bank the underperformer, down 1.5% so far this week
• Handover from Wall Street positive, Asia opens higher
• GIFT Nifty indicates a flat start for our markets
• Auto sales data to be reported today
• Suven Pharma announces a merger
• Biocon, Aurobindo units get USFDA observations
• Chalet Hotels makes a new acquisition
• No stock in the F&O ban today

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

L&T commissions first indigenously manufactured electrolyser at green hydrogen plant in Hazira

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

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Larsen and Toubro has commissioned its first indigenously manufactured hydrogen electrolyser at the green hydrogen plant in Hazira, Gujarat.

The company said this significes L&T Electrolyser Ltd’s foray into the domestic electrolyser manufacturing.

“Featuring a rated power capacity of 1 MW (expandable to 2 MW), this electrolyser can produce 200 Nm3/Hr of hydrogen. It is equipped with two stacks and an electrolyser processing unit ML-400, and offers exceptional flexibility and thermal stability,” the company said in a stock exchange filing, adding that in the coming weeks, the electrolyser would be undergoing rigorous testing to optimise its performance.

Hydrogen is made by splitting H2O (water) into two molecules — hydrogen and oxygen — via electrolysis, which is an electrical process. The method requires electrolysers, and if the same is powered by renewable energy, then the product formed is green hydrogen — a fuel that is free of greenhouse emissions.

Larsen and Toubro’s newly-incorporated entity L&T Electrolysers focuses on manufacturing pressurised alkaline electrolysers using technology from McPhy Energy in France. It said it is planning on leveraging its upcoming giga-scale Hazira facility to meet the growing green hydrogen demand, maximising product localisation via enhanced local supply chain and automation for cost-competitiveness.

“This advancement significantly bolsters our offerings across the value chain, showcasing L&T as a global force in the clean energy space,” said Subramanian Sarma, the whole-time director and senior EVP (Energy) at L&T.

Meanwhile, Derek M Shah, the senior VP and head of the green energy business at L&T said the company’s commitment to localisation in this project goes beyond just cost-efficiency. “It empowers the Indian supply chain, creates exciting opportunities for skilled professionals, and aligns perfectly with the vision of ‘Aatmanirbhar Bharat’.”

L&T shares ended 0.31% higher at ₹3,481 apiece on Thursday, February 29. The stock has gained 64.56% in the past year.

Also Read: Paytm to discontinue inter-company agreements with its Payments Bank

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

Paytm to discontinue inter-company agreements with its Payments Bank

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

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One 97 Communications Ltd., parent company of payments aggregator Paytm announced on Friday morning that it has mutually agreed to discontinue various inter-company agreements it has with its associate entity Paytm Payments Bank Ltd.

It has also introduced additional measures to ensure independent operations of the Payments bank.

Shareholders of Paytm Payments Bank Ltd. have also agreed to simplify the shareholders agreement (SHA) to support the Payments Bank’s governance, independent of its shareholders.

The termination of the agreements and amendments to the shareholders agreement was approved by One 97 Communications’ board earlier this morning, the exchange filing said.

Paytm has also reiterated that the Paytm app, Paytm QR, Paytm soundbox and Paytm Card machines will continue to work uninterrupted.

On February 1, Paytm had guided for a “worst case impact” between ₹300 crore to ₹500 crore on its annual Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) going forward post the Reserve Bank of India’s directives on its Payments Bank.

On Monday, Paytm also announced that Vijay Shekhar Sharma will step down as the non-executive part-time Chairman and board member of Paytm Payments Bank.

Paytm Payments Bank customers will no longer be able to make deposits or top-ups into their accounts, prepaid instruments, wallets, FASTags, or National Common Mobility Cards (NCMC) after March 15, 2024.

Paytm’s shares ended 1.9% higher at ₹414 on Thursday after receiving inflows worth $8 million post the MSCI adjustments.

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

Oil heads for weekly advance as spreads signal market strength

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

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Oil was on track for a weekly gain as market gauges continued to show signs of strength, with OPEC+ set to decide early this month whether to extend supply cuts into the next quarter.

West Texas Intermediate futures held above $78 a barrel, and were up over 2% for the week. Brent closed below $82 on Thursday. Prompt spreads for both benchmarks expanded in a bullish backwardation structure last month, an indication of tightening physical crude markets.

Oil capped a second monthly increase in February, although prices remain in a tight trading range. Geopolitical tensions including the Israel-Hamas war have helped spur some of the gains, but rising non-OPEC supply and persistent concerns about Chinese demand have kept futures from rallying.

Meanwhile, expectations that the US will hold interest rates steady for longer were bolstered when the Federal Reserve’s preferred inflation gauge rose by the fastest pace in nearly a year. That’s likely a headwind for wider energy demand, which hurts commodities including crude.

Also Read: Asia stocks mixed, US stocks hit record on inflation data

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

Asia stocks mixed, US stocks hit record on inflation data

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

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Asian equities headed for a cautious start on Friday after US stocks ended February with fresh highs as the Federal Reserve’s preferred inflation gauge met consensus forecasts.

Australian and Japanese equities traded within tight ranges while contracts for Hong Kong were slightly lower. The Golden Dragon index of US-listed Chinese companies fell in New York trading Thursday.

US stock futures fell after both the S&P 500 and Nasdaq 100 indexes closed at record levels, helped along by Nvidia Corp., which also set its highest closing price on the day. The two benchmarks ended February with their fourth consecutive monthly advance.

Treasuries steadied in Asian trading after edging slightly higher in US trading for a second session, helped along by jobless claims data that indicated labor-market softening. Traders also pointed to the possibility that short covering was behind the gains. An index of the dollar was little changed.

The Bank of Japan will likely wait until April before terminating the world’s last negative interest rate, rather than moving later this month, according to Kazuo Momma, a former executive director in charge of monetary policy at the central bank. The yen slightly weakened against the greenback Friday.

In Asia, data due Friday include PMIs for Taiwan and China, inflation data for Indonesia and Pakistan, and Hong Kong retail sales. Markets are closed in South Korea.

“China’s PMI surveys for February are likely to show activity pulling back due to disruptions from an eight-day Lunar New Year holiday,” according to Eric Zhu of Bloomberg Economics. That means investors will have to wait for more data to have a clearer picture of the economy, he said.

China’s home sales slump dragged on in February, even as regulators stepped up efforts to salvage the beleaguered property market. The value of new home sales from the 100 biggest real estate companies slid 60% from a year earlier.

US stocks were buoyed by US personal consumption expenditures index data released Thursday. Although it showed underlying inflation running at the fastest pace in a year, the reading met consensus expectations from economists and failed to dent the broader dis-inflationary trend underpinning rate-cut forecasts.

“For markets keenly focused on when the Fed will transition toward easing rates, this report will help restore confidence that it isn’t ‘if’ the Fed will begin to cut rates in 2024, but ‘when’,” said Quincy Krosby at LPL Financial.

Federal Reserve Bank of San Francisco President Mary Daly said central bank officials are ready to lower interest rates as needed but emphasized there’s no urgent need to cut given the strength of the economy. Her Atlanta counterpart Raphael Bostic said the central bank could begin cutting this summer.

Bitcoin held at above $61,000 as fresh appetite for the cryptocurrency rippled across markets while BlackRock Inc.’s iShares Bitcoin Trust netted a record $612 million inflow on Wednesday.

West Texas Intermediate, the US oil price, was little changed Friday. The US Energy Information Administration said oil demand touched a four-year high in 2023 and would likely hold near that level this year. Elsewhere, gold steadied after rising to a three-week high to trade just under $2,044 per ounce.

Also Read: Trade Setup for March 1: 22,000 remains a challenge for the Nifty as new F&O series begins

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: Sensex zooms 1245 points, Nifty 356 points as indices settle at fresh record high

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

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Stock Market HIGHLIGHTS | Indian benchmark indices Nifty 50 and Sensex settled at fresh record highs on Friday, led by bank stocks. The BSE Sensex zoomed 1245 points to settle at 73,745, jumping 1.72%, while the NSE Nifty50 surged 356 points to close at 22,339, rising 1.62%. The Bank Nifty surged 2.5% and the MidCap index also rose nearly a percent.

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