Tag: coronavirus crisis

US Fed keeps interest rates near zero amid Covid-19 resurgence

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

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The US Federal Reserve on Wednesday kept its benchmark interest rate unchanged at the record-low level of near zero amid a recent resurgence in Covid-19 cases nationwide. “Following sharp declines, economic activity and employment have picked up somewhat in recent months but remain well below their levels at the beginning of the year,” the Fed said in a statement after concluding a two-day policy meeting, Xinhua reported.

“The path of the economy will depend significantly on the course of the virus. The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term,” the Fed said, adding the central bank decided to maintain the target range for the federal funds rate at 0-0.25 percent.

“The Committee expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals,” the Fed said, referring to the Federal Open Market Committee, the Fed’s policy-making body.

The Fed cut interest rates to near zero at two unscheduled meetings in March and began purchasing massive quantities of US treasuries and agency mortgage-backed securities to repair financial markets. It also unveiled new lending programs to provide up to USD 2.3 trillion to support the economy in response to the coronavirus outbreak.

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 prompts Indian consumers to go digital

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

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The coronavirus pandemic has shifted focus of Indian consumers towards digital experience and they intend to use it to procure products, including discretionary purchases, going forward as the number of infections increase, says a study.

As per Deloitte Global State of the Consumer Tracker survey, the net spending intention for India stood at 55 per cent for groceries, 49 per cent for household, 44 per cent for medicines and 26 per cent for books.

The study defined net spending intention as how consumers plan to spend over the next four weeks compared to the previous four week.

“There is also a growing trend of using online/e-commerce for the purchase of select discretionary items such as apparel (53 per cent) and electronics (50 per cent) over next four weeks,” the study by global consultancy firm Deloitte said.

The survey findings highlighted how with the number of rising infections, consumers are focused on reducing exposure to infection by avoiding the point of sale terminals and cash transactions.

The survey was conducted between April 15 and July 15 across 18 countries, targeting 1,000 per country with feedback taken from consumers over 18 years old.

“Already consumer-facing companies are adopting automation to better manage their stocks by reducing congestion in stores, and restocking efficiently. Using online channels, consumer expectations for seamless shopping experience are poised to grow and companies are fast catching up with this eventuality,” Deloitte India Partner and Leader, Consumer Industry Porus Doctor said.

The survey also found that with the fear of using public transportation (81 per cent) or ride-hailing services (75 per cent), the intent of respondents to buy their next vehicle online has gone up. Also, 79 per cent of Indians would like to keep their current vehicles longer than originally expected.

However, Indians have shown an intent to travel for leisure which is higher than the other countries, it said adding 58 per cent of respondents were willing to take domestic flights while 55 per cent were willing to take International flights over the next three months.

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

UK PM Boris Johnson: We’ll be past coronavirus by mid-2021

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

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British Prime Minister Boris Johnson said on Friday he thought the country would be through the coronavirus crisis by mid-2021 but feared there may be a second spike that could overwhelm the health service.

“Whether it came from… a bat, a pangolin or however it emerged, it was a very, very nasty thing for the human race. And I think by the middle of next year we will be well on the way past it,” he told reporters.

“This country is going to bounce back stronger than ever before,” Johnson said. “We’ve still got the threat of a second spike.”

On a visit to a doctor’s surgery, Johnson said he hoped everybody would get a flu vaccine to lower the pressure on the health service during the winter months.

“There’s all these anti-vaxxers now,” Johnson told medical workers. “They are nuts, they are nuts.”

In the year since Johnson became the British leader, he has won a landslide election victory, delivered on his pledge to lead Britain out of the European Union and came close to death with COVID-19.

But opposition parties say Johnson was too slow to impose a lockdown, failed to identify care homes as a vulnerability, botched the test-and-trace system and failed to sack his senior adviser, Dominic Cummings, for travelling during lockdown.

Speaking a year since he became prime minister, Johnson said his experience was that government needed “to move faster and be more responsive to the needs of the people.”

He mentioned that people were unable to get their passports or birth certificates in time and that there was a backlog of court cases.

“Sometimes government can be slow,” Johnson told reporters while reflecting on his year in power. “We are learning the whole time.”

He added that proposals would be brought forward on the funding of social care to protect people from the risk of having to sell their homes to fund care.

Asked how long people would have to wear face masks, Johnson said he would rely on the common sense of the British people but refused to give any sense of when the COVID-19 measures would be relaxed.

Johnson, who has complained that the British are far fatter than any other nation in Europe bar the Maltese, said people should lose weight.

“I’m not normally a believer in nannying, bossing politics but the reality is that obesity is one of the comorbidity factors,” Johnson said. “I’ve lost about a stone and a bit, primarily by eating less but also by a lot of exercise.”

Asked why he never apologised, Johnson quipped: “I am sorry if I don’t apologise.”

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’s second-quarter GDP grows 3.2%, beats expectations

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

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China’s economy grew 3.2 percent in the second quarter from a year earlier, data showed on Thursday, recovering from a record contraction as lockdown measures ended and policymakers stepped up stimulus to combat the shock from the coronavirus crisis.

The growth was faster than the 2.5 percent forecast by analysts in a Reuters poll, and followed a steep 6.8 percent slump in the first quarter, the first such contraction since at least 1992 when quarterly gross domestic product (GDP) records began.

On a quarter-on-quarter basis, GDP rose 11.5 percent in April-June, the bureau said, compared with expectations for a 9.6 percent rise and a 9.8 percent decline in the previous quarter.

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

NGT dismisses plea to allow petrol vehicles over 15 years old during corona pandemic

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

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The National Green Tribunal Wednesday refused to entertain a plea seeking modification of its order banning vehicles over 15 years old from plying on Delhi roads on the ground that it will save lives of senior citizens during corona pandemic.

A bench headed by NGT Chairperson Justice Adarsh Kumar Goel dismissed the plea filed by Delhi resident and senior citizen Kamal Sahai and said it had junked similar petitions in the past and even the Supreme Court has upheld its order.

The plea said that in view of the present pandemic that the country is facing, the NGT directions be modified in order to permit the use of old vehicles on public roads till the spread of virus is under control.

“This measure, in the submission of the applicant, will go a long way in curbing the spread of the virus and save lives; especially of senior citizens who are the most vulnerable category of persons to the virus as per various health advisories issued by the government from time to time,” the plea, filed through advocates Shaan Mohan and Tushar Gupta, said.

The NGT in its order dated November 26, 2014 had said that all vehicles, diesel or petrol, which are more than 15 years old, shall not be permitted to ply on the roads and whenever such vehicles of this age are noticed, the concerned authorities shall seize them.

The vehicles which are more than 15 years old, will not be permitted to be parked in any public area and they shall be towed and challaned by the police in accordance with law, the NGT had said.

According to the petition, due to the massive spread of the coronavirus and the daunting increase in the number of cases, the directions of the tribunal require modification to the extent that owners of old vehicles be permitted to use their vehicles on public roads till the time spread of virus is contained in the entire country and the orders be kept in abeyance for a period of six months.

“The directions of the tribunal will greatly impact the people, especially the senior citizens of Delhi and NCR at this time who are also the most vulnerable and susceptible to the virus.

“The orders have the effect of putting the citizens to hardship during this time when the governments are advising restraint and minimal external interaction. There are many senior citizens who are living independently, some of whom may even be living alone,” the plea said.

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

Global oil demand, CO2 emissions likely peaked in 2019: Energy consultancy

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

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Global oil demand and carbon dioxide emissions probably peaked in 2019 as the COVID-19 pandemic will have a lasting impact on both, energy consultancy DNV GL said on Wednesday.

The Norway-based consultancy, which advises both petroleum and renewable energy companies on risk management and technology, said global energy use would be 8 percent lower in 2050 than previously expected due to the impact of the pandemic.

“Lasting behavioural changes to travel, commuting and working habits will also decrease energy usage and lessen demand for fossil fuels from the transport sector as well as from iron and steel production,” DNV GL said in a statement about its research on the impact of the pandemic on oil demand and emissions.

“While we expect oil demand to recover next year, we think that it’s likely that it will never reach the levels seen in 2019,” Sverre Alvik, head of DNV GL’s Energy Transition Outlook, told Reuters.

The International Energy Agency said on June 16, it did not expect oil demand to return to pre-pandemic levels before 2022 due to a slump in air travel.

DNV GL has previously predicted oil demand would plateau in 2022. Growing scepticism about long-term global oil demand in a post-pandemic world is putting pressure on oil companies to revalue their assets.

Shell said on Tuesday it would write off assets worth up to USD 22 billion after the coronavirus crisis knocked oil and gas demand and weakened the outlook for energy prices.

Renewable energy is seen benefiting from the crisis, because when total energy demand falls, the cheapest sources, such as wind and solar, are preferred to fossil fuels, Alvik said.

While global CO2 emissions also likely peaked in 2019, the expected decline in future would not be steep enough to meet the Paris climate agreement goals, so other measures such as carbon capture and storage (CCS) and greater use of hydrogen were needed, DNV GL said.

“COVID-19 has shown that behavioural changes are indeed possible, and we can use this opportunity to make a change which is good for (the) climate,” Alvik said.

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

Indian economy in deep trouble, growth expected to contract by 5% this fiscal : S&P

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

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S&P Global Ratings on Thursday said Indian economy is in deep trouble with growth expected to contract by 5 per cent this fiscal.

“India’s economy is in deep trouble. Difficulties in containing the virus, an anemic policy response, and underlying vulnerabilities, especially across the financial sector, are leading us to expect growth to fall by 5 per cent this fiscal year before rebounding in 2021,” S&P said in a report.

In its report titled ‘Asia-Pacific losses near USD 3 trillion as balance sheet recession looms’, S&P projected the region’s economy to shrink by 1.3 per cent in 2020, but grow by 6.9 per cent in 2021.

This implies a loss nearing USD 3 trillion output over these two years.

“Asia-Pacific has shown some success in containing COVID-19 and, by and large, responded with effective macroeconomic policies,” said Shaun Roache, chief economist for Asia-Pacific at S&P Global Ratings.

“This can help cushion the blow and provide a bridge to the recovery. The recovery looks set to be weighed down by indebted balance sheets, however.”

One risk now looming larger is yet another “balance sheet recession” in which at least one important sector of the economy — the government, firms, or households — tries to bolster its weak financial position by saving more, paying down debt, and spending less, S&P said.

“The downturn caused by COVID-19 did not start as a balance-sheet recession but may end up as one,” Roache said. “This means less investment, a slower recovery, and a permanent hit to the economy that will last even after a vaccine is found.”

The pandemic caused a sudden stop in activity and to prevent a collapse, policymakers, helped by banks, have provided extraordinary financial support to firms and households.

Banks may lend less than they normally would in a recovery to focus on the overhang from the pandemic. Private firms may prefer to stabilize debt rather than ramp up spending on new investments, even though demand is improving.

S&P Global Ratings kept its forecasts for growth in Chinese economy at 1.2 per cent and 7.4 per cent for 2020 and 2021, respectively.

The economy is healing but private sector confidence remains fragile. If private sector spending does not improve quickly, more stimulus may be unleashed, S&P said.

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

CSR in times of COVID-19: India Inc. rising to the occasion

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

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Today, the entire world is facing and fighting a crisis of a magnitude which no one had anticipated. The much-dreaded Coronavirus (COVID-19), a pandemic declared by the World Health Organization has prompted governments and the private sector to wholeheartedly contribute towards this war on COVID-19.

The recent announcement to allow funds spent on COVID-19 relief work as CSR spend has created a win-win situation for companies. Through this special series, Mridu Bhandari, Editor, Special Projects, Network18 had the opportunity to engage with Ashwini Kumar Choubay, Minister of state for health & family welfare who highlighted the importance of stronger & innovative partnerships between the public and private sectors to improve healthcare services in the country. He also hinted at testing traditional medicinal systems simultaneously along with experts trying day and night to arrive at a vaccine for coronavirus.

Further, on the show, Mridu Bhandari led the panel of distinguished leaders of India Inc. who have all been using their CSR funds to battle the several facets of the pandemic like access to medical supplies, the migrant worker crisis and most importantly, the protection of healthcare workers on the frontline and many more pertinent questions, whose answers are the need of the hour. Among the panelists for this special episode were Rajiv Chaba, MD, MG Motor India, Parag Satpute, MD, Bridgestone India and Haresh Nayak Group MD – South Asia & COO, Dentsu Aegis Network who had some really good insights on how brands should strengthen their social good divisions.

The last leg of the show was joined by some self-driven crusaders and celebrities who have taken it upon themselves to contribute to the COVID war. This insightful segment included Sonu Sood, an actor who has helped migrant workers from across the country reach home safely, Ravi Goenka, MD, Laxmi Organics and Sahil Arora, AVP & Head – CSR, Dentsu Aegis Network talk about trying to create a collective, sustainable social response to the pandemic by mobilizing volunteers, spreading awareness in villages, raising funds online and coordinating the delivery of food and medicines to the needy, especially the elderly and daily wagers. Further, organizations like Indeed – the CSR division of Dentsu Aegis Network, are working closely with both, corporates and the Government, to channelize CSR support in the most effective and transparent manner and deliver real value on the ground.

Take a look at the engaging conversation on The Social Contract:

–This is a partnered post

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

EY ‘India Divestment Study’: 58% companies plan to divest within next 12 months

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

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The COVID-19 outbreak and the subsequent nationwide lockdown in India has triggered an economic crisis, forcing companies to look at restructuring their businesses.

The bottomline is that businesses are moving towards a technologically enabled future by cultivating partnerships that will strengthen their operational capabilities. Naveen Tiwari, partner and head of carve-out and integration, EY India, shared his views and outlook.

According to the EY’s India Divestment Study, based on responses from more than 40 corporates, 58 percent of the companies are planning to divest in the next 12 months. That’s not all, the study also highlights that most companies understand the need to divest their assets as COVID-19 is having a significant impact on their finances. Debt repayment and raising capital are some of the key challenges.

Further, companies are looking to make their businesses more agile and resilient to face the hurdles that could crop up in the post-COVID era – companies are looking at restructuring their balancesheet, cutting down debts and looking at divestment proceeds from the non-core businesses to strengthen their balancesheets.

Watch this video for details

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

SIP inflows hit 11-month low in May amid market volatility

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

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Investment in mutual funds through Systematic Investment Plans (SIPs) hit a 11-month low of Rs 8,123 crore in May amid market volatility and uncertain economic environment due to the coronavirus pandemic.

Notably, this was the 18th consecutive month when SIP inflows remained over Rs 8,000-crore mark.

The mutual fund industry raised Rs 8,123 crore though the SIP route last month, lower than Rs 8,376 crore mopped up in April, according to the latest data from the Association of Mutual Funds in India (Amfi).

In May last year, SIP collection stood at Rs 8,183 crore. The inflow in May 2020 was the lowest since June 2019, when investment through SIP route stood at Rs 8,122 crore.

Inflows into equity mutual funds, which mainly depend on SIP, also declined to a five-month low of Rs 5,256 crore in May, the data showed.

Market experts attributed the lower inflows via SIP to market volatility and uncertain economic environment due to the coronavirus pandemic.

They said SIP still continues to be the preferred route for retail investors to invest in mutual funds as it helps them reduce market timing risk.

Currently, mutual funds have 3.2 crore SIP accounts through which investors regularly invest in Indian mutual fund schemes.

Investment through SIPs have been rising for the last few years.

SIP investment stood at over Rs 1 lakh crore in 2019-20, almost Rs 92,700 crore in 2018-19, over Rs 67,000 crore in 2017-18 and over Rs 43,900 crore in 2016-17.

Harsh Jain, co-founder of Groww, said that Indian SIP investors are showing immense resilience amidst the ups and downs in market.

Clearly, SIP as a medium has gained immense popularity, he said.

SIP is an investment plan offered by mutual funds, wherein one can invest a fixed amount in a mutual fund scheme periodically at fixed intervals, once a month, instead of making a lump sum investment.

It is similar to a recurring deposit where an investor deposits a fixed amount every month.

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