dfa-26-aug

Daily Financial News Analysis – 26th August’20 – Free PDF Download

 

Ant

  • Ant to go for a stock market debut.
  • Ant is a Chinese fintech and it is looking to raise $30 billion.
  • It will sell shares in Hong Kong and Shanghai.
  • Ant was launched in 2004 by e-commerce giant Alibaba and its founder Jack Ma.
  • Ant is best known in China for the mobile payments powerhouse Alipay.
  • Along with mobile payments, more than 700m people a month and 80m businesses use the service to pay bills, buy insurance and invest in mutual funds.
  • Together with Tencent, Ant processes some 200 trillion RMB (£22.5tn; $28.8tn) of payment and transfers annually. That’s more volume than Visa and Mastercard combined.
  • Analysts: the firm being worth as much as $300bn.
  • Ant will raise around $30bn and I think will be the world’s largest IPO ever, beating out Saudi Arabia’s Aramco from last year that went public just north of $29bn.

Global crude oil

  • Global crude oil prices have risen to a five-month high as US producers shut most offshore output in the Gulf of Mexico ahead of Hurricane Laura.
  • Brent futures, the global benchmark for crude oil, rose 73 cents, or 1.6 percent, to 45.86 a barrel US dollar, while US West Texas Intermediate crude rose 73 cents, or 1.7 percent, to settle at 43.35 per barrel US dollar.
  • That puts both benchmarks on track to settle at their highest since March 5.

Rs 2,000 currency notes

  • Reserve Bank of India has said that it did not print currency notes of 2,000 rupee denomination in 2019-20.
  • RBI said the circulation of these high denomination currency notes has been on a decline.
  • The circulation of currency notes of 500 and 200 rupee denomination has gone up substantially, both in terms of volume and value over the three years beginning 2018.
  • The report also said, a total of 2.96 lakh of counterfeit currency notes was detected by the banking sector in the last fiscal year.
  • RBI also said it has undertaken several initiatives to introduce varnished banknotes in 100 rupee denomination on a field trial basis.

2nd set of fiscal stimulus measures

  • A top Finance Ministry official has said that the government may look at introducing a second set of fiscal stimulus measures once the COVID-19 infections abate and the psychological fears in people’s minds ebb.
  • Union Expenditure Secretary TV Somanathan said normal economic activity is in “abeyance” right now and it has nothing to do with what the government has done or not done, but attributed the same to fears among the people.
  • Mr. Somanathan also said the health situation remains very vulnerable in many parts of the country and all personal services activity beyond finance and insurance, like cinema halls, malls and restaurants have been severely impacted.
  • He also shared that 40% of cash transfers done directly into the beneficiaries’ account recently have been saved and not spent.

PSUs & Customs Duty

  • Government has announced a major initiative to allow the Public Sector Undertakings to first clear the goods imported by them through Customs and then pay Customs duty later, within 14 days.
  • Central Board of Indirect Taxes and Customs (CBIC) said, this measure is expected to result in speedier clearance of the good imported by the PSUs.
  • CBIC said the scheme of deferred payment of Customs duties was first introduced in November, 2016 for importers recognized by the CBIC as Authorized Economic Operators.
  • These importers are approved by the Customs on the basis of certain compliance parameters such as proper maintenance of records, secure internal controls and a good track record of legal compliance.
  • The facility of deferred payment of Customs duties is a part of CBIC’s on-going next generational reform ‘Turant Customs’ which envisages a Faceless, Contactless and Paperless Customs environment.
  • The objective is to enhance the ease of doing business and bring in more efficiency.

DBT Payouts

  • Facial recognition and iris scans could soon be used for Aadhaar authentication of beneficiaries using Jan Dhan bank accounts to access government Direct Benefit Transfer (DBT) payouts and domestic transfers.
  • NPCI and UIDAI are considering how to expand authentication factors used to vet customers using the Aadhaar Enabled Payment System (AePS) amid an increased push toward contactless transactions.
  • It’s being tested on non-financial transactions in the first phase.
  • Failure rates are high as the fingerprint patterns of those engaged in manual labour fade and become less distinctive over the years.
  • The failure rate on AePS transactions due to fingerprint mismatches is currently 19-20%.

 

 

 

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