Friday, 24 August 2018

Reliance Communications gets relief from bondholders as deadline looms

Reliance Communications Ltd., the embattled Indian phone company headed by billionaire Anil Ambani, clinched the approval of its overseas bondholders to ease the carrier’s debt burden, putting the company a step closer to averting bankruptcy.
The Indian phone operator, which defaulted last year on a $300-million bond, got 83 percent of bondholders to approve the plan, the company said in an exchange filing.

ALSO READ: RCom completes sale of some assets to Reliance Jio for Rs 20 billion
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The vote was crucial for Ambani because settling the matter was a precondition for RCom to reorganise its larger local debt. The company has been working against the clock to reach agreements with all its creditors by Aug. 27 or face insolvency proceedings.
RCom is also in the midst of completing its sale of airwaves, towers and fiber to a rival controlled by Ambani’s older brother, who’s India’s richest man. The brothers wrapped up a smaller deal involving transmission nodes, worth 20 billion rupees, on Aug. 23.

Foreseer of financial crisis Raghuram Rajan warns of toxic mix on trade

Raghuram G Rajan, who warned of a credit crisis in 2005 before it hit, is now cautioning that trade wars, when combined with a build-up in leverage and high asset prices, could result in a toxic mix that dragged global growth.
“We are all very well aware that two things have built up, which had built up before the previous crisis, leverage and asset prices,” Rajan, a former governor of the Reserve Bank of India, said in a Bloomberg Television interview Thursday. “Trade is an issue for the world to be concerned about. It is extremely important that we have good outcomes there. By all means, negotiate, but don’t pull the nuclear trigger there.”
While global growth has been strong in recent years, the concern is how long can it continue, and whether elevated asset prices are justified on the basis of it, Rajan said at Jackson Hole, Wyoming, the same place where he warned of credit risks in 2005. Moves by the U.S. or China on trade threaten that growth at a time when underlying conditions are fragile, and some emerging market nations are highly levered, he said.
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The U.S. and China returned to the negotiating table this week after more than two months, but a lack of progress after two days of talks renews the threat of escalation in the trade war. While U.S. stock prices hit a new high this week, emerging market gauges have fallen, with the Shanghai Stock Exchange Composite Index dropping about 17 percent year to date.
Turkey and Argentina have experienced asset routs this year, though “my sense is that it is not a systemic issue yet among emerging markets,” according to Rajan. Tariffs on China, however, have potential ripple effects for other emerging market nations, many of whom are dependent on trade and export directly or indirectly through China, he said.
ALSO READ: Can the Trump trade war weaken Xi Jinping's authority and grip in China?
Emerging market countries like India and Brazil that are heading into elections should focus on maintaining macroeconomic stability, added Rajan. For India, the rupee’s recent fall isn’t too worrying, and is attributable in part to overall “dollar strength,” he said. The currency hit an all-time low of 70.3950 against the greenback on Aug. 16, and is the worst performing major Asian currency so far this year.

Kerala flood: No aid finalised officially for relief, say UAE officials

No specific amount for financial aid to flood-ravaged Kerala has been finalised officially by the United Arab Emirates and there was no announcement on donation to the state, officials in UAE embassy said in New Delhi on Friday, amid a row over the Centre deciding not to accept any foreign donations for flood relief.
UAE ambassador Ahmed Albannam, without mentioning financial aid, said his government only set up a national emergency committee to provide relief assistance to people affected by flash floods in Kerala.

"The UAE has not officially announced any financial aid for Kerala flood relief. We have not conveyed anything to India on any assistance," said a senior official in the UAE embassy here.
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He said the UAE may come out with its plan in the next few days to extend assistance to flood victims.
Kerala Chief Minister Pinarayi Vijayan earlier this week said that the UAE has decided to extend a financial assistance of Rs 7 billion (Rs 700 crore) to Kerala, considering the Gulf nation's special relationship with Kerala.
Around three million Indians live and work in the UAE, out of which 80 per cent are from Kerala, according to official figures.
On August 18, Prime Minister and ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum tweeted that his country has formed a committee for extending help to flood-affected people in Kerala.
"UAE and the Indian community will unite to offer relief to those affected. We have formed a committee to start immediately. We urge everyone to contribute generously towards this initiative," he tweeted.
Days after the Kerala CM said the UAE has offered to give Rs 7 billion (Rs 700 crore) to his state, the Ministry of External Affairs made it clear that the Centre will not allow any financial assistance from foreign governments for Kerala in sync with an existing policy.
ALSO READ: Kerala flood less intense than deluge of 1924, so why was damage as great?
The MEA, however, said contributions to the Prime Minister's Relief Fund and the Chief Minister's Relief Fund from NRIs (Non Resident Indians, PIOs (Persons of Indian Origin) and international entities such as foundations will be welcomed.
While refusing foreign aid, the government invoked a policy decision taken by the Manmohan Singh government in 2004 in the aftermath of the Tsunami for not accepting foreign assistance.
ALSO READ: Lessons from Kerala floods: The need to change our development approach
After the MEA said India will not accept donations from foreign nations, an unhappy Vijayan said the National Disaster Management Authority (NDMA) had in 2016 suggested that assistance offered as a goodwill gesture "may" be accepted, asserting that there is no blanket ban on receiving such assistance.
Vijayan said he would approach Prime Minister Narendra Modi on the issue.

Rupee has not depreciated to a worrying level, govt should watch CAD: Rajan

Former RBI Governor Raghuram Rajan has said that the rupee has not depreciated to 'too worrying levels', though the government needs to take care of the widening current account deficit (CAD).
The rupee on August 16 had slumped to a life-time low of 70.32 on strong demand for the US dollar.
The rupee today staged a good recovery to end higher by 20 paise at 69.91 against the US currency on bouts of dollar selling by exporters and corporates.
"Well just to be fair, the Indian authorities have brought down the fiscal deficit. What has expanded is the current account deficit. A lot of it driven by higher oil prices," he said.
"The rupee has not depreciated to too worrying levels, its sort dollar strength around the world," Rajan told a TV channel.
Rajan, who was RBI governor for three years till September 2016, said further that this is a time where countries should be focusing on getting the macro stability in order.
ALSO READ: Rupee makes strong comeback, rises 20 paise to 69.91 versus dollar
"Going into election year, countries like India and Brazil should try their level best to look as good as possible," he said.
On the controversy over back series GDP data which showed that the growth was better during UPA regime, Rajan said: "What we have to do right now is to look forward...its growing at about 7.5 per cent."

India, he added, has to make sure that CAD does not grow out and fiscal stability is maintained.
Replying to a query on rising bad loans, Rajan said there is a need to improve governance in the banks.
ALSO READ: High borrowing costs, weak rupee likely to impact corporate India: Report
"My sense is that whichever new administration comes this will be task number one for them," Rajan, who is currently the Katherine Dusak Miller Distinguished Service Professor of Finance at Chicago Booth School of Business said.
India's trade deficit soared to a near five-year high of $18 billion in July, raising concerns on the current account front.
Recently, a top finance ministry official said that the government will meet the fiscal deficit target for the current fiscal but is also expecting some slippage in the CAD on higher crude oil prices.

Resolution soon on 7-8 stressed power assets worth Rs 170 bn: SBI MD

State Bank of India managing director Arijit Basu said on Friday that about 7-8 power sector projects worth Rs 170 billion (Rs 17,000 crore) are expected to be resolved soon as lenders are nearing consensus on these.
There are about 34 stressed power projects and the combined value of their outstanding loans is about Rs 1.74 trillion (Rs 1.74 lakh crore).

"We have looked at 13-14 accounts which would entail changes in management, investment etc. Out of these, 7-8 accounts we are looking at very closely, to get some consensus among the banks," Basu said on the sidelines of an event here.
"There are investors who have expressed interest and we are in very very advanced stage as far as these accounts are concerned. Some of these we should be able to conclude very soon," he said.
When asked how many cases are being referred to NCLT by the end of the August 27 deadline, he said: "We don't see major spurt in accounts being referred to National Company Law Tribunal (NCLT). We have been bringing out the stress in the system...we have worked at resolution. We have not waited for deadline."
Banks have already referred many cases to NCLT, he said.
The Reserve Bank of India (RBI), in a circular in February, mandated banks to identify projects with even a day's default as stressed asset and conclude the resolution proceedings in 180 days. The circular came into effect on March 1 and the 180-day deadline concludes on August 27.
On provisions against non-performing assets (NPAs) or bad loans, Basu said that some guidance has been given and the bank has already provided for them significantly in the first quarter and will continue to provide as per the norms.
"As far as recoveries are concerned this particular financial year has been significantly better than what we were doing in 2017-18. It is almost 80-90 per cent more than what we were doing in 2017-18," he said.
Asked about talks of public sector banks being given more autonomy, Basu said SBI is a well governed bank with a very strong board.
"The board has not only strong internal directors but strong external directors. So all decisions are board driven. Corporate governance in SBI is strong and regulator is also very clear on how bank should be regulated," he said.

Thursday, 23 August 2018

Meet these 15 people who are helping Apple CEO Tim Cook run the company

On Friday, Tim Cook will mark the seventh anniversary of his ascension as Apple Inc.’s seventh chief executive officer. At 57, he’s in his prime, and all signs point to a durable tenure. When Apple’s board named Cook CEO back in 2011, the directors signed him on for a decade with massive stock awards that finish vesting in the summer of 2021. (On his anniversary, Cook is set collect stock worth about $120 million thanks to a run-up in Apple shares.)
Cook is the face of Apple. And design supremo Jony Ive is arguably the next-most important executive. But more than 100 other folks collectively help run the world’s most valuable company.
Apple rarely discusses succession planning, and when asked about it at the company’s most recent shareholder meeting, Cook said “passing the baton” wisely is one of his most crucial responsibilities. He also said succession planning for all key executive roles has been on the agenda at every Apple board meeting in recent years, though he didn’t identify any potential candidates.

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If Cook were to leave his post in the near term, potential successors would include Chief Operating Officer Jeff Williams, whose profile has risen steadily inside and outside Apple, and marketing boss Phil Schiller.
Other skilled leaders include services head Eddy Cue, software leader Craig Federighi, top chip engineer Johny Srouji, hardware leader Dan Riccio, semi-retired car project chief Bob Mansfield and, of course, Ive. Chief Financial Officer Luca Maestri, retail head Angela Ahrendts and General Counsel Kate Adams, a relative newcomer, all brought leadership experience from other companies.
Beneath them are dozens of vice presidents, and Bloomberg picked 15 who are crucial to the Apple of today and the company of tomorrow. Apple declined to comment.
Greg Joswiak | VP, Product Marketing
Joswiak—or Joz as he’s known at Apple—may be the most important executive not featured on the company’s executive profiles page. He’s become central to product launches and recently debuted a low-priced iPad for students. A couple of years ago, Joz got oversight of marketing for all Apple products, ranging from iPhones to iPads to the Apple TV, Apple Watch and applications.

ALSO READ: Apple patents futuristic AR windshield system that will support FaceTime
Joswiak helps dream up new products and is considered critical to the company’s success. He reports directly Schiller, and insiders believe he could eventually succeed his boss. Joswiak got his start at Apple decades ago running marketing for the PowerBook laptop, gaining more responsibility and eventually taking over iPod then iPhone and iOS marketing. “If there’s ever another major shakeup at Apple,” says someone familiar with the company, “he’s the guy to keep an eye on.”
Tim Twerdahl | VP, Apple TV Marketing
Twerdahl joined Apple in 2017 from Amazon, where he ran the Fire TV business. While Apple TV never became the hit Steve Jobs hoped it would, the set-top box is doing better. On the company’s last earnings call, Cook said the 4K version was enjoying double-digit growth. Twerdahl is in charge of turning the Apple TV product, along with the TV app pre-installed across Apple devices, into the ideal stage for Apple’s upcoming original content efforts. He reports to Joswiak.
Stan Ng | VP, Wearables Marketing
Ng has been at Apple for nearly 20 years, moving from a Mac marketing manager to more senior iPod and iPhone marketing roles before taking on responsibility for the Apple Watch. Ng used to appear in iPod promotional videos and talk to the press about the music player’s latest features. At Apple, marketing isn’t just about portraying a product in ads or figuring out what to call it; the marketing group helps envision new products, dream up new features and then tweaks them to be beloved by consumers. The Apple Watch, AirPods and other wearables that fall under Ng’s purview are just a side business but it’s one that helps sell iPhones and is the envy of other technology companies.
ALSO READ: What changed the tide for Apple in India and how it is planning for revival
Susan Prescott | VP, Apps Marketing
Prescott became one of the first female Apple executives to speak on stage at a product announcement when the Apple News app was launched in 2015. Today, she oversees marketing for Apple’s bevy of apps, and recently announced the new Mac Stocks, Voice Memos, Home, and News apps at the company’s 2018 software developer conference. While Apple generates most of its revenues from hardware and services, apps are key to gluing together the Apple ecosystem.
Sabih Khan | VP, Operations
Khan is the wingman to chief operating officer Williams (much as Williams was to Cook when the latter was COO). In recent years Khan has inherited more responsibility for global supply chain operations that churn out hundreds of millions of devices per year—tasks once handled by Williams. Khan runs day-to-day manufacturing of the iPhone, as well as other devices, and his team has gotten involved increasingly early in the design process. Besides Cook and Williams, he’s key to “keeping the trains running on time,” says someone familiar with his work.
Mike Fenger | VP, IPhone Sales
With over a billion units sold, it may seem like the iPhone can sell itself. But the responsibility of striking deals to actually sell the iPhone globally falls on the shoulders of Fenger, a sales executive who left Motorola for Apple in 2008. During his tenure at Apple, Fenger has also overseen key enterprise sales deals with General Electric Co. and Cisco Systems Inc.
ALSO READ: How the entourage of suppliers, partners are part of Apple's $1-trn journey
Isabel Ge Mahe | VP, China
Ge Mahe worked for years as an Apple software engineering executive until Cook handpicked her to run China last year. It’s a crucial role because China generated about 20 percent of Apple's sales last year, making it the company’s third most important market behind the Americas and Europe. After losing momentum there, Apple has tailored its offerings to Chinese consumers—including a gold iPhone and mobile payments—and is banking on strong services growth. One of Ge Mahe’s most difficult challenges: continuing Apple’s nascent comeback in China without running afoul of Beijing.
Doug Beck | VP, Americas and Northeast Asia
Beck reports directly to Tim Cook and makes sure products are selling into the right places and coordinates the deals that get Apple’s devices in stores and used at businesses in the Americas and Asian countries including Japan and South Korea. He’s been at Apple for almost a decade, gradually expanding his purview over sales efforts. He’s also a U.S. Navy Reserve Officer and served overseas.
Sebastien Marineau | VP, Software
The software engineering leadership is stacked with company vets, but BlackBerry transplant Marineau has risen quickly. Marineau joined Apple in 2014 and oversees key device software for the Camera and Photos apps and system security—two areas that are critical to his employer. Marineau’s almost two decades of experience got him into Federighi’s inner circle, and Marineau is increasingly the main representative for the developer-centric portions of Apple’s annual software conference.
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Jennifer Bailey | VP, Apple Pay
Bailey is a key Apple services executive. She oversaw the launch and development of Apple Pay in 2014 and continues to be its driving force in meetings with retailers and financial partners. So far, Apple Pay has amassed over 127 million active users, according to analysis from Loup Ventures, but its global penetration in retail outlets still has room to grow. If Apple is going to achieve its goal of turning services into a $50 billion per year business by 2021, it's going to need products like Apple Pay to continue to excel. Before booting up Apple Pay, she ran Apple’s online store, perhaps the company’s most important sales channel.
Peter Stern | VP, Services
Stern joined Apple a couple of years ago from Time Warner Cable. Earlier this year, as part of a small re-organization in Cue’s services division, Stern was given oversight of video, news, books, iCloud and advertising services. All of these products are critical to Apple’s transition into more of a services company in the coming years. Look for Stern to take on an even bigger role at Apple as it pushes further into original content and streaming video.
Richard Howarth | VP, Industrial Design
For most of his career at Apple, Howarth flew under the radar on the famous design team that dreams up the look of the company’s gadgets. He has been key to the development of each iPhone model and the original Apple Watch. Then in 2015, Howarth took on a more public role when Ive relinquished day-to-day design team management to focus on the development of the new Apple Park campus. During that time, Howarth oversaw the design of the iPhone X, one of Apple’s most important recent products. Ive returned full time to running the design team at the end of 2017, but were he to step away again, Howarth would be the obvious candidate to inherit the top design job.
Mike Rockwell | VP, AR/VR
A Dolby Labs veteran, Rockwell is in charge of augmented reality. It’s a big job because Cook is convinced AR will be bigger than virtual reality, which he believes isolates users. AR lays digital information over the real world, offering countless potential consumer and commercial applications—streaming basketball stats to fans during games, say, or sending instructions to mechanics repairing complicated equipment. Apple is working on AR glasses that Cook is banking on to replace the iPhone. If Rockwell pulls it off, he’ll be the star of Apple product announcements for years to come.
Greg Duffy | Special Projects Hardware
Like Rockwell, Duffy is working on an Apple moonshot. Previously CEO of camera hardware company Dropcam and an executive at Alphabet Inc.’s Nest unit, Duffy joined Apple a couple of years ago to form a secretive hardware team filled with satellite experts. Last year, he poached Google’s top two satellite imagery executives, suggesting his new hardware team is working on an initiative that potentially could include satellites that take images for Apple maps. On his Twitter profile, Duffy simply says, “working on something new!”
John Ternus | VP, Hardware Engineering
Ternus has recently become a public face of Apple’s Mac hardware efforts, announcing new versions of its iMac desktop and MacBook Pro laptops at last year’s developers conference. He’s also been the executive explaining Apple’s renewed focus on professional Mac users, who had been feeling increasingly ignored by the company. In addition to overseeing development of new Macs, he also leads development of the iPad and key accessories like the AirPods. The prior head of iPad hardware engineering, Dan Riccio, is now the senior vice president leading all Apple hardware efforts. Ternus could be one of the executives eventually in line for the top hardware job.

Trade war: US, China slap 25% tariffs on $16 bn of each other's goods

The US and China implemented 25 per cent tariffs on $16 billion worth of each other's goods on Thursday, ratcheting up the trade war between the world's two largest economies.
The latest trade escalation came as officials from both the countries met for tariff negotiations in Washington. So far, both the countries have taxed each other's goods worth $100 billion in total.

The US imposed 25 per cent tariffs on another $16 billion of Chinese goods just after midnight. The tax targeted 279 Chinese products, including chemical products, motorcycles, speedometers and antennas, the US media reported.
Beijing responded immediately with 25 per cent tariffs on an equal amount of American goods such as chemical products, diesel fuel, medical instruments, cars and buses.
ALSO READ: US, China resume trade talks before fresh tariffs take effect on Thursday
The Chinese Commerce Ministry said in a statement that it "has no other alternatives but to take counter-measures".
It added that it will file a complaint with the World Trade Organization (WTO). Beijing filed an initial complaint at the WTO in July during the imposition of Washington's first round of tariffs.
China's Vice Commerce Minister Wang Shouwen is already in Washington for low-level talks, but hopes are not high that they will bring the dispute to an end, reports said.
US President Donald Trump initiated the trade spat in July in an effort to punish China for what he says were unfair trade practices, such as stealing intellectual property.
ALSO READ: Can the Trump trade war weaken Xi Jinping's authority and grip in China?
In the first round of tariffs that month, Washington imposed taxes on Chinese goods worth $34 billion. Beijing had responded in kind.
The second round of tariffs came despite testimony to the US Trade Representative's Office by dozens of US companies and industry groups.
Many said the new tax would hurt their businesses and warned that they would not be able to absorb another tax without raising prices for US consumers.
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Earlier, Trump indicated that he was ready to impose duties on over $500 billion of Chinese goods exported annually to Washington unless China agrees to sweeping changes in its intellectual property practices, industrial subsidy programmes and tariff structure.
Beijing denies Washington's allegations and insists it adheres to WTO rules.