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Shanghai expands COVID-19 lockdown as new daily caseload surges by a third

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

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Summary

On Wednesday, Shanghai reported a record 5,656 asymptomatic COVID cases and 326 symptomatic cases for March 29, up from 4,381 new asymptomatic cases and 96 new cases with symptoms for the prior day.

Authorities began locking down some western areas of Shanghai two days ahead of schedule, as new COVID-19 cases in China’s most populous city jumped by a third despite stringent measures already in place to try to stop the virus spreading.

Home to 26 million people, China’s financial hub is in its third day of a lockdown, officials are imposing by dividing the city roughly along the Huangpu River, splitting the historic centre west of the river from the eastern financial and industrial district of Pudong to allow for staggered mass tests.

While residents in the east have been locked down since Monday, those in the west were previously scheduled to start their four-day lockdown on Friday.

Locking down a major metropolis like Shanghai full-scale would result in a 4 percent reduction in the national real gross domestic product, economists at the Chinese University of Hong Kong, Tsinghua University and other institutes estimated in mid-March.

On Wednesday, Shanghai reported a record 5,656 asymptomatic COVID cases and 326 symptomatic cases for March 29, up from 4,381 new asymptomatic cases and 96 new cases with symptoms for the prior day. China reclassifies asymptomatic cases if and when they later develop symptoms.

Several residents living in western districts on Tuesday received notice from their housing committees that they would be stopped from leaving their compounds for the next seven days.

“We will resume normal life soon, but in the next period of time we ask everyone to adhere closely to pandemic control measures, do not gather, and reduce movements,” said one housing committee notice seen by Reuters.

Meanwhile the city’s southwestern district of Minhang, home to more than 2.5 million people, said it would suspend public bus services until April 5.

Shanghai authorities told a press conference on Wednesday that since the lockdown began on Monday they had conducted 9.1 million nucleic acid tests.

They also said they were starting to disinfect places such as office buildings, construction sites, wet markets and schools in a month-long campaign.

Pudong pandemic

Business life has already been seriously disrupted.

The lockdown has roiled auto production in the city as two major components suppliers, Aptiv and Thyssenkrupp joined Tesla in shutting plants due to COVID control measures.

Meanwhile, Chinese firms have halted a wave of planned domestic initial public offerings, filings show, as the current case surge hampered due diligence and information gathering — affecting an estimated $9 billion-plus in fundraising.

The Shanghai government said on its official WeChat account late on Tuesday that those who refused to comply with nucleic acid testing could be found legally liable. It also warned it would crack down on any price gouging, after people rushed to stock up on food and medical items in anticipation of the lockdowns.

Across mainland China, the daily numbers of new local infections in the past two weeks were much higher than those seen in the first two months this year, marking the biggest case wave since the 2020 one centred on Wuhan.

The eastern city of Xuzhou, which reported a total of less than 20 local infections in the past week, has imposed a three-day lockdown in most areas starting Wednesday.

The Xuzhou government said each household in those areas should only send one person to go out to shop for necessities every other day, while non-essential companies should either shut operation, have employees work from home, or operate in a closed-loop manner.

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

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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

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

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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 5 Minutes Read

Shanghai starts China”s biggest COVID-19 lockdown in 2 years

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

 Listen to the Article (6 Minutes)

Summary

China began its most extensive lockdown in two years Monday to conduct mass testing and control a growing outbreak in Shanghai as questions are raised about the economic toll of the nation’s zero-COVID strategy. China’s financial capital and largest city with 26 million people, Shanghai had managed its smaller, past outbreaks with limited lockdowns of housing compounds and workplaces where the virus was spreading. But the citywide lockdown that will conducted in two phases will be China’s most extensive since the central city of Wuhan, where the virus was first detected in late 2019, confined its 11 million people to their homes for 76 days in early 2020.

China began its most extensive lockdown in two years Monday to conduct mass testing and control a growing outbreak in Shanghai as questions are raised about the economic toll of the nation’s zero-COVID strategy. China’s financial capital and largest city with 26 million people, Shanghai had managed its smaller, past outbreaks with limited lockdowns of housing compounds and workplaces where the virus was spreading. But the citywide lockdown that will be conducted in two phases will be China’s most extensive since the central city of Wuhan, where the virus was first detected in late 2019, confined its 11 million people to their homes for 76 days in early 2020.

Shanghai’s Pudong financial district and nearby areas will be locked down from Monday to Friday as mass testing gets underway, the local government said. In the second phase of the lockdown, the vast downtown area west of the Huangpu River that divides the city will start its own five-day lockdown Friday. Residents will be required to stay home and deliveries will be left at checkpoints to ensure there is no contact with the outside world. Offices and all businesses not considered essential will be closed and public transport suspended.

Already, many communities within Shanghai have been locked down for the past week, with their housing compounds blocked off with blue and yellow plastic barriers and residents required to submit to multiple tests for COVID-19. Shanghai’s Disneyland theme park is among the businesses that closed earlier. Automaker Tesla is also suspending production at its Shanghai plant, according to media reports. Panic-buying was reported on Sunday, with supermarket shelves cleared of food, beverages and household items. Additional barriers were being erected in neighborhoods Monday, with workers in hazmat suits staffing checkpoints.

Shanghai detected another 3,500 cases of infection on Sunday, though all but 50 were people who tested positive for the coronavirus but were not showing symptoms of COVID-19. While people who are asymptomatic can still infect others, China categorizes such cases separately from confirmed cases those in people who are sick leading to much lower totals in daily reports. Nationwide, 1,219 new confirmed cases of domestic infection were detected on Sunday, more than 1,000 of them in the northeastern province of Jilin, along with 4,996 asymptomatic cases, the National Health Commission reported on Monday.

Also Read | Colombo Port City: A Chinese White Elephant as Sri Lanka desperately seeks India’s help to tide over economic crisis

China has reported more than 56,000 confirmed cases nationwide this month, with the surge in Jilin accounting for most of them. Jilin province is enforcing travel bans and partial lockdowns in several cities, including Changchun, one of the centers of the Chinese auto industry. Although the province has seen more than 1,000 new confirmed cases per day, prevention and control measures taken there do not appear to have been as extreme as in other places.

As has become customary, Jilin has been building pre-fabricated temporary wards to house COVID-19 patients and those under observation as suspected cases. The city of Suzhou, about an hour from Shanghai, as well as Changsha in the country’s center and Shenyang in the northeast are also erecting such structures capable of housing more than 6,000 people. China has called its long-standing zero-tolerance approach the most economical and effective prevention strategy against COVID-19.

The new measures being enforced in Shanghai aim to curb the virus spread, protect people’s life and health, and achieve the dynamic zero-COVID target as soon as possible, the city’s COVID-19 prevention and control office stated in an announcement Sunday evening. That requires lockdowns and mass testing, with close contacts often being quarantined at home or in a central government facility. The strategy focuses on eradicating community transmission of the virus as quickly as possible.

While officials, including Communist Party leader Xi Jinping have encouraged more targeted measures, local officials tend to take a more extreme approach, concerned with being fired or otherwise punished over accusations of failing to prevent outbreaks. Most recently, Hunan province, which has seen relatively few cases, ordered punishments against 19 officials for failure to vigorously consolidate anti-pandemic policies,” state broadcaster CCTV reported Monday.

Also Read | Japan to revise foreign exchange law to end crypto loophole for sanctions on Russia

With China’s economic growth already slowing, the extreme measures are seen as worsening difficulties hitting employment, consumption and even global supply chains. With a 21-day curfew in place for all foreigners arriving from abroad, travel between China and other countries has fallen dramatically. On Friday, the International Air Transport Association announced it was moving its annual general meeting from Shanghai to Doha, citing continuing COVID-19 related restrictions on travel to China.” It is deeply disappointing that we are not able to meet in Shanghai as planned,” IATA Director General Willie Walsh said in a news release.

Still, Shanghai’s announcement of the dates when the two lockdowns would be lifted appeared to show a further refinement in China’s approach. Previous citywide lockdowns had been open-ended. Although China’s vaccination rate is around 87per cent, it is considerably lower among older people.

National data released earlier this month showed that over 52 million people aged 60 and older have yet to be vaccinated with any COVID-19 vaccine. Booster rates are also low, with only 56.4per cent of people between 60-69 having received a booster shot, and 48.4per cent of people between 70-79 having received one. Older and unvaccinated people are more likely to become seriously ill if they contract the virus.

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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

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

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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Much of Shanghai locked down as mass COVID-19 testing begins

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

 Listen to the Article (6 Minutes)

Summary

China has reported more than 56,000 infections nationwide this month, with a surging outbreak in the northeastern province of Jilin accounting for most of them. Shanghai has had relatively few of those cases, with just 47 recorded on Saturday.

China began locking down most of its largest city of Shanghai on Monday as part of its strict COVID-19 strategy, amid questions over the policy’s economic toll on the country.

Shanghai’s Pudong financial district and nearby areas will be locked down from early Monday to Friday as citywide mass testing gets underway, the local government said. In the second phase of the lockdown, the vast downtown area west of the Huangpu River that divides the city will then start its own five-day lockdown on Friday.

Residents will be required to stay home and deliveries will be left at checkpoints to ensure there is no contact with the outside world. Offices and all businesses not considered essential will be closed and public transport suspended.

Already, many communities within the city of 26 million have been locked down, with their residents required to submit to multiple tests for COVID-19. And Shanghai’s Disney theme park is among the businesses that closed earlier.

China has reported more than 56,000 infections nationwide this month, with a surging outbreak in the northeastern province of Jilin accounting for most of them. Shanghai has had relatively few of those cases, with just 47 recorded on Saturday.

But in response to China’s biggest outbreak in two years, Beijing has continued to enforce what it calls the “dynamic zero-COVID” approach, calling that the most economical and effective prevention strategy against COVID-19.

That requires lockdowns and mass testing, with close contacts often being quarantined at home or in a central government facility. The strategy focuses on eradicating community transmission of the virus as quickly as possible, sometimes by locking down entire cities.

While officials, including Communist Party leader Xi Jinping have encouraged more targeted measures, local officials tend to take a more extreme approach, concerned with being fired or otherwise punished over accusations of failing to prevent outbreaks.

While China’s vaccination rate stands at around 87 percent, it is considerably lower among older people.

National data released earlier this month showed that over 52 million people aged 60 and older have yet to be vaccinated with any COVID-19 vaccine. Booster rates are also low, with only 56.4 percent of people between 60-69 have received a booster shot, and 48.4 percent of people between 70-79 have received one.

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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China lockdown severe, will impact supply chains: William O’Neil India

CONCOR Q2FY20 revenues

Lockdown in Shenzhen (a city in China) is pretty severe and it will impact supply chains, said Vipin Khare, director-research at William O’Neil India, on Wednesday.

“Supply chains are already under pressure because of everything that is going on in Europe and with China seeing lockdowns again – that’s something most people may not be prepared for and hence could put pressure on the supply chain, ” Khare told CNBC-TV18.

Also Read: India need not worry: Dr Agrawal on China COVID surge

Talking about India, he advised investors to stay away from bottom fishing. “Anything that is below the 200-day moving average (DMA), approach it very carefully,” said Khare.

Catch all the live updates on Russia-Ukraine war here

For the entire interview, watch the accompanying video

Catch minute-by-minute updates on the stock market, and more, here:

Crude oil price below $100 for first time in nearly 3 weeks, down 25% from 14-year high

brent crude oil

The last couple of days have been nothing short of a complete meltdown in the case of commodities and with a 25 percent decline in crude oil prices. This is a bearish market once it’s below 20 percent from its high.

The prices continue to decline because the war premium (Russia-Ukraine) seems to be coming off; markets have factored all of that in, but China implementing lockdowns across the country could lead to lower demand going forward and that’s what the markets are worrying about and the prices have come down.

Russia also said that they are in favour of the Iran nuclear deal. And the US inventories, in the previous week, saw a surge and all of that also added to some more pressure.

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Watch the accompanying video of CNBC-TV18’s Manisha Gupta for more details.

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 5 Minutes Read

It may be late to chase the unlock theme now, but a few pockets to consider

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

 Listen to the Article (6 Minutes)

Summary

Unlock theme stocks are back in the spotlight with the lifting of pandemic-related restrictions in parts of the country. What to do with COVID unlock theme stocks like Indian Hotels, Chalet, PVR, Inox Leisure, Mahindra Holidays now? Find out

Unlock theme stocks are in focus on Dalal Street once again with the lifting of COVID-related restrictions in parts of the country. Through the three waves of the coronavirus pandemic, restrictions imposed to curb infections have led to wild swings in stocks from spaces such as restaurants and hotels, tourism, cinema and consumption.

Are the best opportunities in the unlock theme now behind? Most analysts think so. They believe the unlock theme is already approaching a climax on the Street.

“Given the strong growth and rebound in demand reported in the previous quarter, stock prices seem to have already factored in the fast recovery… The pandemic has certainly led to constructive changes in the business models of many companies linked to the unlock theme and these are expected to bode well in the long term,” Yesha Shah, Head of Equity Research at Samco Securities, told CNBCTV18.com.

Yet, there may be spaces investors can bank on.

Shah’s advice: Investors should keep a long-term horizon and seek out opportunities in quality names within the theme, where the multiples have room to expand and the risk-reward has turned favorable amid correction.

“There are multiplexes and hotels focusing on asset light models in order to improve their margins as well as to drive faster expansion,” she pointed out.

And she’s not the only one eyeing themes within the unlock play.

“Hotels as an industry look very good at the current juncture… Otherwise, everything related to the unlock theme has played out or might correct due to price increases,” AK Prabhakar, Head of Research at IDBI Capital Markets, told CNBCTV18.com.

In the current scenario, he likes Indian Hotels, Mahindra Holidays Resorts, Chalet Hotels, PVR and Inox Leisure.

Here’s how some of these stocks have performed in the past one year:

Stock Change (%)
Specialty Restaurants 221.4
IRCTC 130
Oriental Hotels 100.6
Indian Hotels 62.4
Chalet Hotels 57.9
Mahindra Holidays 39.4
Thomas Cook 34.9
EIH 34.2
Inox Leisure 33.3
Lemontree 22.9
PVR 20.1
Godfrey Philips 13.9
ITC 5.9
Jubilant FoodWorks -2.8
Westlife Development -7.9
Restaurant Brands Asia -26

Indian equity benchmarks have come within one percent of their all-time highs reached in October 2021, and retreated thanks to heightened geopolitical tensions after Russia’s invasion of Ukraine, and fluctuations in crude oil. A near one-sided 18-month-long run in the Indian market till October 2021 had taken equity valuations in many pockets to unprecedented heights.

The Russia-Ukraine conflict sent the India VIX index — also known as the fear gauge — soaring to levels last seen 20 months ago.

And the wild swings in the markets came amid predominant fears about faster-than-expected rate hikes. Any aggressive rate increases in the developed markets such as the US may worsen foreign institutional investor outflows from emerging markets such as India.

It was not so long ago that hopes around the reopening of economy and the return to normalcy from the ravages of the pandemic were playing out in a big way.

A missed bus indeed

Right now, there is positivity all around as far as the end of COVID is concerned, and unlock theme stocks may not provide the biggest bang for your buck. That is the message from Rahul Shah, Co-Head of Research at  Equitymaster.

“It is said that in the stock market, you either get good news or good prices but never both. So, if the news is good, chances are that it is already reflected in the stock prices,” he told CNBCTV18.com.

The time to bet on unlock theme stocks was “when negativity (with respect to COVID-19) was at its peak and when there was fear all around”, he explained.

“This doesn’t seem to be the case currently. In fact, smart money is perhaps already moving in the other direction with sectors such as technology correcting more than others,” added Shah.

Catch latest stock market updates with CNBCTV18.com’s 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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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Answer Anonymously

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 5 Minutes Read

100% Work From Office may well be history even as COVID ebbs

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

 Listen to the Article (6 Minutes)

Summary

Companies are breaking down large offices to create smaller workstations apart from offering employees freedom to choose their way of working and even creating digital clones of factories — something HR managers say would have taken 15 more years if not for COVID.​

When the COVID-induced lockdowns started in 2020, companies faced an unprecedented crisis and scrambled to rethink work boundaries almost overnight. As deaths mounted and infections spread rapidly in closed spaces, working from home (WFH) was an uneasy arrangement managements had to embrace despite initial tech constraints.

Every time infections dropped, businesses tried to bring back employees to formal office set-ups, but the emergence of new COVID variants have marred those plans, giving way to a new normal. Going to office or working from home became a decision guided by the COVID curve, corresponding government guidelines and employees’ comfort. A balance had to be struck, given the uncertainties around how the virus might behave.

The new era of work had its advantages and drawbacks—both for employees as well as employers. For employees, particularly in big cities, it easily saved 2-3 hours of commute everyday, plus savings in transport costs. Many returned to their home towns, saving on rent, others were able to pursue hobbies they had previously been unable to, devote more time to family, look after ageing parents, punt on stocks and crypto, and for the enterprising, take up a part time job without their employer’s knowledge.

It worked well for the companies as well, which were able to get more work out of their staff, in some cases, cut monthly allowances, and most important, save a big sum on rent.

With the third wave of COVID receding, employees and employers are grappling with the same set of questions: 100% Work From Office? 100% Work From Home? Hybrid model?

Taking boundary-less approach

Many firms — such as Tata Steel and Meesho and global companies like Meta, Twitter and Microsoft — trashed the age-old norm of calling everyone to office and opened their hearts to letting their staff work from their living rooms.

Apart from letting employees choose to work from anywhere up to 365 days a year, Tata Steel is building digital clones of its factories. The firm started a pilot in Jamshedpur where staff can access the control room anywhere.

“This policy is a shift in mindset from monitoring to creating a trust and outcome-based work culture,” said Suresh Dutt Tripathi, vice-president, HR management, Tata Steel.

Also Read | How HR automation can help organisations retain millennial workforce

Meesho said the company had studied multiple future work models to arrive at the “boundary-less approach”. “This will also give talent across the globe an opportunity to build for Bharat with Meesho,” Ashish Kumar Singh, chief HR officer, Meesho, said.

Putting hybrid model to test

Most other firms are looking to adopt a hybrid work environment and insist not all functions can be serviced remotely.

Tata Consultancy Services (TCS), one of India’s largest private-sector employers and the fourth-largest employer among listed firms, wants to see its campuses bustling with youthful energy in the coming months.

Milind Lakkad, chief HR officer, TCS, said that since the COVID situation was improving, the company would be getting its employees back to office. Still, no more than 25 percent of their associates would work from an office at the same time.

“We are committed to adopting the 25×25 model. An important part of the 25×25 journey is to bring people back to physical offices and gradually transition into the hybrid work model,” Lakkad said.

Rival IT firm Wipro will adopt a flexible approach, too. “From March 3, fully-vaccinated employees who are managers and above will have the option to return to work twice a week. We will continue to extend the work-from-home arrangement for others,” Wipro said.

‘Full strength in office is history’

HR managers now say having a dedicated place of work and expecting employees to operate from there is a “thing of the past”. In part, this trend may have been forced by the talent in many sectors—particularly IT, and that the fact that many employees are now insisting that they be allowed to work from anywhere they choose. With many companies willing to give that flexibility, employers who take a rigid approach may find themselves at a disadvantage.

“Work-life balance has improved, and people have new hobbies, etc. They don’t want to change this lifestyle now,” Rajendran Dandapani, director of technology, Zoho Corp, said

Agrees Ashwini Kumar, general manager (India) and vice-president, MPOWER Financing.

“We have seen a high demand for work from home from our employees, said, adding there were no immediate plans for a full-fledged back to office, since performance and productivity have not been impacted.

Also Read: How remote work, online schooling is eating into the downtime of students, professionals

Sameer Bendre, chief people officer, Persistent Systems, says pandemic has changed the way in which employees view work, but there needs to be a balance as well.

“The flexibility of WFH has increased employees’ expectations,” he said. “But organisations would love to have employees WFO. It has advantages ranging from team camaraderie, employee engagement, better innovation, etc. Still, we have an opportunity to achieve a golden mean, that is partial WFO – balance WFH.”

It is a balance which IVM Podcasts is also looking to achieve, given that the nature of work demands that.

“Some of our employees will continue to WFH should they prefer it,” Kavita Rajwade, co-founder, said. “However, some functions of our business require a high degree of collaboration and technical assistance,” of IVM Podcasts, said.

Incentives for resuming on-site jobs

Some companies are giving incentives to employees who want to resume working from office.

Sapna Sukumar, vice-president of HR at Cashfree Payments, said they had a hybrid work model. Still, they are “facilitating relocation” through benefits like house settlement leaves, accommodation in hotels, airfare tickets, reimbursements for relocation, etc., for those who want to return to the formal work environment.

Employees are also forcing organisations to provide flexibility, time-based working, contract working, etc.

With employees looking at their work life in a new light, employers are being forced to follow suit.

“There was a time when coming to the office was the only way to establish that one was truly working.,” Pia Shome, chief people officer, U GRO Capital, said. We all were forced to drop that notion when the pandemic taught us that right from hiring new people, training them, getting new clients, and opening branches were all possible online,” she said.

And it is evident that companies are trying to adapt to the new reality.

“We have invested significantly to upgrade our systems to prepare better for long-term hybrid working,” Amir Bharwani, Head HR, eClerx Services, said.

What do staff surveys say?

Cisco undertook an internal survey and found that almost 80 percent of its global staff preferred to work outside of the office on most days.

“The switch to remote work wasn’t challenging for Cisco. However, the pandemic period revealed how productive teams can be without being in the same room, maybe ever,” Minhaj Zia, director for collaboration sales, Cisco India & SAARC, said. “So, we have permanently moved to a hybrid work model.”

Also Read: Remote working new normal; 82% employees prefer working from home: Study

According to an internal dip-stick survey conducted by Provana, around 45 percent of their employees were willing to work from the office. Still, Dipankar Kalita, head of HR at Provana, said the firm follows the hybrid model to give freedom to its employees.

Holding on to cost savings

Dandapani of Zoho Corp says it has also realised one size does not fit all.

He said firms want to return to the way things were in 2019, but they are also looking at the benefits of hybrid working, apart from cost savings.

“We are still debating what the right formula is like everyone else across the world,”, he said, adding, “we expect our managers to use common sense in making decisions on this.”

Rethinking future of offices

“We open offices on Monday, but we continue to be predominantly hybrid,” Suman Gopalan, chief HR officer, FreshWorks, said. “What we haven’t done? Force people to make a choice.”

Gopalan said 50 percent of their staff wanted to come back to office in October 2020. But nearly 16 months down the line, the sentiment is changing. “Many are bored of working from home,” she said.

The firm is now thinking of a hub strategy.

“We used to have large offices. Looking at how talent is spread now, we are trying to create hubs in parts of the country where employees can gain in-office experience,” Gopalan said, adding the policy was evolving.

And while savings on office rent is a big factor, some companies seem to be thinking beyond it.

“Corporate occupiers are seeking to bring their workforce back to the office to deal with the significant increase in hiring, up by about 20 percent, and to counter the increased attrition caused, in part, by disconnection from the workplace,” Michael Holland, CEO, Embassy REIT, said.

“There has also been some concerns on data privacy and moonlighting, which is leading to misuse of productive time.”

(With inputs from Reema Tendulkar, Shilpa Ranipeta, and Jude Sannith)

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

 Daily Newsletter

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

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index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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 5 Minutes Read

Online food delivery picks up again as Omicron drives the third COVID-19 wave

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

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Summary

As COVID-19 infections soar again, restaurants and eateries are witnessing a jump in demand for online food delivery. The Delhi government has banned dine-in in the national capital to contain a surge in new infections. Restaurants, however, are permitted to offer home delivery and takeaways.

Amid rising COVID-19 cases and curbs to restrict movement, especially on weekends in various states, restaurants and eateries are yet again witnessing a jump in demand for online food delivery.

The Delhi government has banned dine-in in the national capital to contain a surge in new infections. Restaurants, however, will be able to offer home delivery and takeaways.

The new restrictions are part of the city’s Graded Response Action Plan, which started last week with the implementation of a weekend curfew.

According to multiple restaurateurs, the industry which was previously hit hard by the COVID-19 pandemic is staying operational by depending on online delivery as dine-in suffers once again. They anticipate that the growth in online demand will be temporary and that it will return to normal once the restrictions are relaxed.

Restaurant owners, however, caution that if the restrictions last longer than four to six weeks, it is going to be disastrous for the industry.

According to Aseem Grover, owner of Big Chill, how long the variant lasts will be critical. This wave comes just as unexpectedly and suddenly as the first and second waves. However, in the first wave, people who had been in business for a long time had savings and backups. In the second wave, it was greatly reduced, and in the third, it is completely absent.

Ready-to-eat food delivery has emerged as a major category thanks to several user-friendly applications. Early on in the pandemic, lockdowns and physical separation requirements gave this category a huge boost, with delivery becoming a lifeline for many. It is expected to become a permanent fixture in the dining scene in the coming years.

While there may be some impact on the numbers of food deliveries due to apprehensions regarding the spread of the Omicron variant, the industry will still grow on quarter-on-quarter basis, according to management consultancy Redseer.

Read Also | No lockdown in Delhi if people wear masks, says CM Arvind Kejriwal

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
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 5 Minutes Read

Rise in COVID-19 cases, restrictions trigger fears of NPA surge 

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

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Summary

A surge in COVID-19 cases coupled with movement restrictions may increase bad debts again, fear economic experts. The loans given by banks to MFIs, small businesses and unsecured loans are most vulnerable and likely to turn into non-performing assets (NPAs). The NPAs were down from 7.48 percent in March 2021 to 6.9 percent in September 2021.

A surge in COVID-19 cases across the nation and restrictions to prevent further spread may increase bad debts again, fear economic experts. The loans given by banks to microfinance institutions, small businesses and unsecured loans like credit cards and personal loans are most vulnerable and likely to turn into non-performing assets (NPAs).
The gross NPAs had been going down in the latter half of 2021 as the country moved past the second wave of the pandemic. The NPAs were down from 7.48 percent in March 2021 to 6.9 percent in September 2021. However, the percentage may shoot up again if restrictions on movement are imposed.
In a December 30 note to clients, Emkay Global Financial Services said, “SME/MFI remain the most vulnerable segments, and thus banks with relatively higher exposure to these segments like Bandhan Bank, Ujjivan Small Finance Bank, IndusInd Bank, Axis Bank, RBL Bank, City Union Bank and DCB Bank could be at relatively higher asset quality risk.”
Looking at the current trend of rising COVID-19 cases, experts say there is every possibility of more restrictions being put in states to check community transmission of the virus.
Acknowledging the likelihood of a rise in NPAs, public sector banks are taking utmost caution while doling out loans. The portfolios of loan seekers are being assessed thoroughly to ensure their capability to repay.
However, there is a silver lining. This time around, more people are vaccinated, and thus, most of those catching COVID are recovering without needing hospitalisation. Analysts feel state governments won’t go for a hard lockdown if hospitals don’t get overwhelmed.

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

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Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
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News Wrap Jan 5: ‘Omicron not mild for those at high risk’; Cairn withdraws lawsuits against India; BPCL divestment delayed and more

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

 Listen to the Article (6 Minutes)

Summary

Here are the top news from the world of business, economics, politics, and more, handcrafted for you by the CNBC-TV18.com team

While several experts have said the Omicron variant of COVID-19 is mild when compared to the Delta strain, top virologist Dr SK Sarin on Wednesday said such may not be the case for those at high health risks. The Maharashtra government has, however, ruled out the possibility of a lockdown now and other states have imposed a slew of restrictions to curb the spread of coronavirus. In the stock market, the shares of IT companies witnessed a slump in an otherwise positive trading session. Cairn Energy has withdrawn all lawsuits against India to get a tax refund of Rs 7,900 crore. Here are some more top news of the day

BUSINESS/ECONOMY

Privatisation of BPCL delayed, may happen next fiscal: Report

Privatisation of Bharat Petroleum Corporation Limited (BPCL) is a huge part of the Centre’s disinvestment plan. However, with just three months left in the current fiscal, it is unlikely it would be able to wrap up the privatisation in time. Read more

Cairn withdraws all lawsuits against India, to get Rs 7,900 cr tax refund

Britain’s Cairn Energy has dropped all lawsuits against the Indian government and its entities in courts from the US to France and to Singapore, to now be entitled to about Rs 7,900 crore refund of taxes that were collected to enforce a retrospective tax demand. Read more

India questions China’s claim of being a developing nation

India has questioned China’s claim that it is a developing country in the latest round of its trade policy review at the World Trade Organisation (WTO). Check more details

MARKET

At record $3 trillion, Apple’s market cap is higher than the GDP of UK, India

Apple made history earlier this week by becoming the first IT company to break the $3 trillion market valuation barrier when the iPhone manufacturer’s stocks briefly hit $182.86. Read more

TCS, Infosys, Wipro, other IT stocks drop; worst day for Nifty IT in 2 weeks

IT stocks from the likes of Tata Consultancy Services (TCS), Infosys and Wipro succumbed to selling pressure, as investors geared up for the onset of the quarterly earnings season. Read more

AU Small Finance Bank hits 10% upper circuit

Shares of AU Small Finance Bank jumped 10 percent hitting the upper circuit at Rs 1204.10 on BSE after the lender reported good provisional figures. Read more

INDIA

Omicron not mild for those at high health risk, says top virologist

According to the assessment of the pandemic situation by Dr SK Sarin, Vice Chancellor at the Institute of Liver and Biliary Sciences, the number of cases are likely to double up, maybe every two to three days and the reasons are two-fold. Dig deeper

Maharashtra govt rules out lockdown, mulls augmented restrictions

Maharashtra Health Minister Rajesh Tope has said there will be restrictions to curb the spread of coronavirus but a lockdown is not needed as of now. The home quarantine has been reduced to seven days from 10 days earlier. Read more

PM Modi skips Punjab rally over ‘serious’ security lapse

The Ministry of Home Affairs said Prime Minister Narendra Modi has skipped a rally in Punjab’s Ferozepur over a ‘serious’ security lapse and a detailed report has been sought from the state government. Read more

WORLD

North Korea fires suspected ballistic missile in first launch of 2022

North Korea fired a suspected ballistic missile off its east coast on Wednesday, underscoring leader Kim Jong Un’s New Year vow to bolster the military to counter an unstable international situation. Read more

Multivariant COVID vaccine booster shows promise, early data suggests

A COVID-19 vaccine booster aimed at tackling multiple coronavirus variants shows promise in inducing a comprehensive immune response, early data suggests. More details here

Joe Biden urges concern, not alarm as Omicron rises

US President Joe Biden urged concern but not alarm as the US set new records for daily reported COVID-19 cases and his administration struggled to ease concerns about testing shortages, school closures and other disruptions. Read more

YOU & ME

What should gold investors do when US Fed starts raising rates?

Many analysts believe gold prices have an inverse relationship with interest rates. When the interest rates fall, people don’t get good returns on their deposits causing an increase in gold demand and so the price. Here’s what you can do

How multi-asset allocation can emerge as effective strategy for 2022

Multi-asset allocation is an investment style where investors diversify by investing in different uncorrelated asset classes. Here’s why it may be effective in 2022

Key benefits of choosing EMI option for health insurance policy

Health insurance policy, a vital investment, is still far from most people in India owing to high one-time payment against the coverage. To make it cost-effective for all, in 2019, the Insurance Regulatory and Development Authority of India (IRDAI) directed coverage companies to start accepting premium payments in EMI. Here’s how it helps

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

 Daily Newsletter

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

Previous Article

Oil Fluctuates as Traders Assess China’s Vow, Unrest in Libya

Next Article

Shanghai residents turn to NFTs to record COVID lockdown, combat censorship

LIVE TV

today's market

index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -72.15
sensex ₹1,882.60 +28.30
nifty IT ₹2,206.80 +30.85
nifty bank ₹1,318.95 -14.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95
index Price Change
nifty 50 ₹16,986.00 -7.15
sensex ₹1,882.60 +8.30
nifty IT ₹2,206.80 +3.85
nifty bank ₹1,318.95 -1.95

Currency

Company Price Chng %Chng
Dollar-Rupee 73.3500 0.0000 0.00
Euro-Rupee 89.0980 0.0100 0.01
Pound-Rupee 103.6360 -0.0750 -0.07
Rupee-100 Yen 0.6734 -0.0003 -0.05
Quiz
Powered by
Are you a Crypto Head? It’s time to prove it!
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Win WRX (WazirX token) worth Rs. 1500.
Question 1 of 5

What coins do you think will be valuable over next 3 years?

Answer Anonymously

Should Elon Musk be able to buy Twitter?