India's April-Aug fiscal deficit passes 109% of full year budget target

 India's fiscal deficit in the five months to end August stood at Rs 8.7 trillion ($117.98 billion), or 109.3% of the budgeted target for the current fiscal year, government data showed on Wednesday.

Net tax receipts were Rs 2.84 trillion, while total expenditure was Rs 12.5 trillion, the data showed, indicating the government was facing a fall in tax receipts amid a rise in spending to combat the impact of the coronavirus.

The deficit is predicted to exceed 8% of GDP in the 2020/21 fiscal year that began in April, economists said, from initial government estimates of 3.5, mainly due to a sharp economic contraction triggered by the pandemic.

JPMorgan to pay $920 mn for manipulating precious metals, treasury market

 By Abhishek Manikandan and Michelle Price

(Reuters) - JPMorgan Chase & Co has agreed to pay more than $920 million and admitted to wrongdoing to settle federal U.S. market manipulation probes into its trading of metals futures and Treasury securities, the U.S. authorities said on Tuesday.

The landmark multi-agency settlement lifts a regulatory shadow that has hung over the bank for several years and marks a signature victory for the government's efforts to clamp down on illegal trading in the futures and precious metals market.

JPMorgan will pay $436.4 million in fines, $311.7 million in restitution and more than $172 million in disgorgement, the Commodity Futures Trading Commission (CFTC) said on Tuesday, the biggest-ever settlement imposed by the derivatives regulator.

Between 2008 and 2016, JPMorgan engaged in a pattern of manipulation in the precious metals futures and U.S. Treasury futures market, the CFTC said. Traders would place orders on one side of the market which they never intended to execute, to create a false impression of buy or sell interest that would raise or depress prices, according to the settlement.

This manipulative practice, which is designed to create the illusion of demand, or lack thereof, is known as "spoofing."

Some of the trades were made on JPMorgan's own account, while on occasions traders manipulated the market to facilitate trades by hedge fund clients, the CFTC said. The bank failed to identify, investigate, and stop the behavior, even after a new surveillance system flagged issues in 2014, the agency said.

"The conduct of the individuals referenced in today's resolutions is unacceptable and they are no longer with the firm," said Daniel Pinto, co-president of JPMorgan and CEO of the Corporate & Investment Bank.

He added that the bank had invested "considerable resources" in boosting its internal compliance policies, surveillance systems and training programs.

In parallel settlements, the bank entered into a Deferred Prosecution Agreement with the Department of Justice and the United States Attorney's Office for the District of Connecticut, staving off criminal prosecution on charges of wire fraud.

It also agreed to pay $35 million to settle related charges with the Securities and Exchange Commission, although the bank's payment to the CFTC would offset that fine, it said.

In an unusual concession, JPMorgan also admitted wrongdoing in agreeing to the SEC and Justice Dept. settlements.

"This record-setting enforcement action demonstrates the CFTC's commitment to being tough on those who intentionally break our rules, no matter who they are. Attempts to manipulate our markets won't be tolerated," said CFTC Chairman Heath Tarbert.

The CFTC and Justice Department have taken aim at spoofing in recent years, using sophisticated data analysis tools to spot potential wrongdoing that it could not previously detect.

Reuters has reported that around 2017, the agency began using techniques it originally developed to spot healthcare fraud schemes to identify suspicious trading patterns, including by scanning activity on exchanges.

"The idea was: let's mine this data source to see who the worst actors are," Robert Zink, a top Justice official who helped lead the effort, told Reuters in May https://www.reuters.com/article/us-usa-doj-trading-insight/traders-beware-u-s-taps-new-tools-to-find-fraud-in-volatile-commodities-market-idUSKBN22X14E.

The agency has already charged six JPMorgan traders for manipulating metals futures between 2008 and 2016. On Friday, meanwhile, two former Deutsche Bank AG traders were found guilty https://www.reuters.com/article/us-deutsche-bank-traders-convicted/two-ex-deutsche-bank-traders-convicted-in-u-s-over-fake-orders-idUSKCN26H00X by a federal jury of spoofing, the agency said.

 

(Reporting by Abhishek Manikandan in Bengaluru; additional reporting by Jonathan Stempel, editing by Patrick Graham, Arun Koyyur, Nick Zieminski)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Explained: The story behind the Apple versus Fortnite App Store battle

 Perhaps it’s a sign of our times that a potentially landmark battle with antitrust implications is shaping up over digital pickaxes. The court case involving Apple and Epic Games, the maker of the video game Fortnite, is the result of the gamemaker’s rebellion against rules and fees set by Apple in its role of gatekeeper for apps on its iPhones and iPads.

What’s the case about?

In August, Epic’s billionaire founder, Tim Sweeney, announced that he would no longer abide by Apple’s rule that all purchases of apps and items within apps designed for its iOS-based devices go through Apple’s payment system. After he activated Epic’s own payment system, Apple kicked Fortnite out of its app store. It also threatened to make it hard for developers using Epic’s tools to build games. In response, Epic sued in federal court; it also sued Google over the same issue Apple soon counter-sued.

What was Epic unhappy about?

That Apple and Google charge fees of up to 30 per cent to developers using their app stores. Consumers spent $50 billion worldwide on the App Store and Google Play in the first half of 2020, according to Sensor Tower estimates. That generated billions of dollars in highly profitable revenue for the companies. Some developers have derided this as an unfair and unwarranted tax, especially since it applies not just to the purchase of an app, but to anything bought within one.

Why does Apple do that?

Apple says that the App Store’s success is directly related to its iron-clad rules because it spends significant resources to police apps and maintain high quality standards. Its payment system ensures that consumers using the store have a seamless and easy experience and are protected from fraud. But a growing number of developers say Apple is simply finding excuses to maximise profits.

What are app makers doing?

Spotify, the music-streaming company, and Match Group, which runs dating services including Tinder, joined Epic and 10 other organisations to launch the Coalition for App Fairness to push Apple and Google, to change their app-store rules. The group launched a website outlining 10 “App Store Principles”, including one asserting that developers should not be required to exclusively use a particular app store or payment system. The group also criticised Apple’s 30 per cent cut for most paid apps and subscriptions.

First batch of Apple iPhone 12 to reach distributors on October 5: Report

 As the world awaits Apple to announce the launch date for its much-awaited and slightly-delayed iPhone 12, new reports have emerged that claim the first shipment of final units is going out to distributors on October 5.

According to Apple insider and tech analyst Jon Prosser, the shipment includes "iPhone 12 mini 5.4 (definitely the final marketing name) in 64GB/128GB/256GB and iPhone 12 6.1 (64GB/128GB/256GB)."

"Event on October 13, as I mentioned before," he said in a tweet late on Tuesday.

He claimed that the first iPhones to hit the stores are going to be the iPhone mini, which is the 5.4-inch version and the 6.1-inch iPhone 12 Max.

Apple is expected to launch four new devices under the iPhone 12 series.

All four models are expected to feature OLED displays and 5G support, as another analyst Ming-Chi Kuo claimed previously.

Apple is expected to launch its new iPhone 12 series in South Korea earlier than its usual schedule. According to officials at local telecom operators, they are preparing to sell the iPhone 12 in late October or early November, reports Yonhap news agency.

Foreign tech reviewers predicted that the iPhone 12 could be unveiled on October 13 and go on sale on October 23 in select markets.

Apple is expected to release four models of the iPhone 12 -- the 5.4-inch iPhone 12 Mini, the 6.1-inch iPhone 12, the 6.1-inch iPhone 12 Pro and the 6.7-inch iPhone 12 Pro Max.

Recently, it was revealed that the upcoming iPhone 12 could cost somewhere between $699 to $749 while the iPhone 12 Max could be priced around $799-849.

The Pro and Pro Max models are expected to be priced between $1,100 to $1,200.

--IANS

na/

 

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Google to force apps to pay 30% Play Store tax; gives one year to comply

 Google on Tuesday said all apps that sell digital goods within Play Store have to use its billing system, which allows the tech giant to collect a percentage of in-app purchases as a fee. The firm said it was only providing clarity on its billing policy as there was some confusion.

Google's clarification comes as the firm faces accusations of having anti-competitive policies worldwide, most recently by Fortnite-maker Epic Games, which has sued the firm after being banned from the Play Store. Closer home, Paytm last week slammed the tech giant’s policies after its app, too, was delisted from the app store.

“We want to be sure our policies are clear and up to date so they can be applied consistently and fairly to all developers,” said Sameer Samat, vice-president for product management at Google, in a blog post.

Policy not new

The tech giant clarified that this policy is not new and Google Play billing has always taken a 30 per cent commission on these transactions. This will only apply to less than 3 per cent of developers with apps on Play Store, as 97 per cent are already using Google Play billing.

Non-compliant apps that may require technical work to integrate the billing system have been given a year (until September 30, 2021) to complete any needed updates.

Play’s billing system is not required for apps that sell physical goods, for example, ride-hailing services, or apps that don’t require any transactions.

For new apps submitted to the Play Store, this policy comes into effect from January 20, 2021, and includes categories such as fitness, game, dating, education, music, video, and other content subscription services.

Google said its Play Store continues to help Indian developers scale and reach wider audiences.

Consumer spending on apps and games created by Indian developers doubled year to date, compared to the corresponding period last year. Indian developers also saw growth of more than 80 per cent in consumer spending from users outside of India, compared to the corresponding period last year.

Row with Paytm

Noida-based Paytm last week accused the firm of making policies that are over and above the laws of the country after its app was briefly delisted from the Play Store for violating Google’s policy on sports-betting activities.

Asked about the issue, Purnima Kochikar, director, Google Play, said the incident shows “we need to continue to have this dialogue, clarify and apply our policy uniformly and equitably”.

Kochikar said the company has an active conversation with all the developers and the firm is trying its best not to disrupt the user experience. “We have had multiple conversations (with Paytm) and we will continue to do that, because at the end of the day, Paytm is an important partner,” said Kochikar. “We know a lot of our users use Paytm and we will continue the conversation.”

Paytm had launched a UPI cashback and scratch cards campaign on September 11. Its payments app was delisted on September 18 from Play Store.

Paytm had said Google, too, regularly runs similar scratch card campaigns in India. However, Google had said offering cashback and vouchers alone do not constitute a violation of its gambling policies.

LIVE: SC dismisses UPSC Prelims 2020 postponement plea; exam on October 4

 The Supreme Court of India dismissed UPSC Prelims 2020 postponement plea. At the same time, the apex court directed the Centre to consider concessions for those aspirants who are on their last attempt. SC had earlier asked UPSC to file a reply as to why the examination cannot be postponed. Meanwhile, coronavirus patients will not be allowed to appear for the prelims, ruled SC.

The family of the 19-year-old Dalit woman, who died in a Delhi hospital a fortnight after she was gang-raped here, alleged on Wednesday that the UP police forcibly cremated the body in the middle of the night.

 

A special court in Lucknow will deliver the much-awaited judgment today in the 1992 Babri Masjid demolition case in which BJP veterans L K Advani and Murli Manohar Joshi are among the accused.

 

The Congress will today hold internal discussions on the seat-sharing arrangements with like-minded parties for the upcoming Bihar Assembly elections.

 

Stay tuned for the latest news of the day.

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03:19 PM 

India posts current account surplus of $19.8 bn as trade deficit narrows

India’s current account balance (CAB) recorded a surplus of $19.8 billion (3.9 per cent of GDP) in Q1 of 2020-21. This contrasts with a deficit of $ 15 billion (2.1 per cent of GDP) in April-June 2019 (Q1Fy20).

 

The surplus in April-June 2020 (Q1Fy21) comes on top of a surplus of $0.6 billion (0.1 per cent of GDP) in the preceding quarter (Q4 Fy20), said the Reserve Bank of India in a statement. The surplus was due to a sharp contraction in the trade deficit to $10 billion, as the country’s merchandise imports declined sharply relative to exports on a year-on-year basis. Read more

03:03 PM 

Hathras rape case: Congress demands UP CM's resignation

The Congress Wednesday slammed the BJP government in Uttar Pradesh over the Hathras gang-rape victim's family being allegedly denied the right to properly perform her last rites, demanding Prime Minister Narendra Modi ask for Chief Minister Yogi Adityanath's resignation.

"The way she was cremated is a gross violation of her human rights, a Congress spokesperson said in Delhi.

The 19-year-old Dalit woman, who died in a Delhi hospital a fortnight after she was gang-raped in Uttar Pradesh's Hathras, was cremated in the early hours of Wednesday, with her family alleging the local police forced them to conduct the last rites in the dead of the night.

 

02:47 PM 

NTPC eyes Rs 98,000 cr revenue in FY21

NTPC is eyeing Rs 98,000 crore revenue from operations and about 15 million metric tonne of coal output from its mines in the current fiscal year.

The state-owned power giant is also aiming 340 BU (billion units) of electricity generation in 2020-21 as part of its Memorandum of Understanding (MoU) with the Ministry of Power, a company statement said.

As per the MoU, NTPC will aim to achieve capital expenditure of Rs 21,000 crore and coal production of 15 million metric tonne in the current fiscal year.

 

02:38 PM 

BrahMos supersonic cruise missile test-fired off Odisha coast

02:23 PM 

Govt extends BPCL bid deadline to Nov 16

The government has for the fourth time extended the deadline for bidding for privatisation of India's second-biggest oil refiner Bharat Petroleum Corp Ltd (BPCL) by one and a half months to November 16.

While the Cabinet, in November last year, had approved the sale of the government's entire 52.98 per cent stake in BPCL, offers seeking expression of interest (EoI) or bids showing interest in buying its stake were invited only on March 7.

Initially, the EoI submission deadline was May 2, but it was first was extended up to June 13, then to July 31 and later to September 30.

 

02:05 PM 

Jai Shri Ram: Advani on being acquitted from Babri demolition case

Veteran BJP leader LK Advani, who was acquitted by a special CBI court on Wednesday in the Babri mosque demolition case, welcomed the court verdict by chanting 'Jai Shri Ram', and said it came in "footsteps of another order which paved the way for my dream of seeing a Ram Mandir in Ayodhya".

 

Advani, who was the face of the Ram Janambhoomi Movement in 1992, was acquitted along with all other 31 accused in the case.

 

"It is a very important decision and a matter of happiness for us. When we heard the news of the court's order, we welcomed it by chanting Jai Shri Ram, Advani said in a video message.

02:00 PM 

Govt extends FY19 GST annual return filing deadline by 1 month

The government has extended the deadline for filing GST annual return and audit report for 2018-19 fiscal year by a month till October 31.

 

After obtaining due clearances from the Election Commission in view of the Model Code of Conduct, Government has extended due date for furnishing Annual Return in GSTR-9 and GSTR 9C for 2018-19 from 30.09.2020 to 31.10.2020, the Central Board of Indirect Taxes and Customs (CBIC) tweeted.

 

In May, the government had extended thelast date for filing annual GST return for 2018-19 by three months till September 2020.

 

GSTR-9 is an annual return to be filed by taxpayers registered under the Goods and Services Tax (GST) regime. It consists of details regarding the outward and inward supplies made or received under different tax heads.

01:51 PM 

Amazon creates over 100,000 jobs ahead of festive season

Amazon India on Wednesday said that it has created more than 1 lakh seasonal job opportunities across its operations network in the country ahead of the festive season.

The new associates will join Amazon's existing network of associates and support them to pick, pack, ship and deliver customers' orders safely and efficiently, the company said in a statement.

"The new seasonal positions will help elevate its delivery experience and boost the company's fulfilment and delivery capabilities to meet the surge in customer demand this festive season," it said.

 

01:12 PM 

UPSC Prelims 2020: Summary of SC directions

1. No postponement of UPSC Prelims 2020

2. UPSC asked to consider granting an extra attempt to candidates who miss the exam due to coronavirus but without extending the upper age limit.

01:06 PM 

Supreme Court dismisses the plea seeking for postponement of the UPSC examination

VA Tech Wabag soars 7% on allotment of 5 mn shares to Rekha Jhunjhunwala

 Shares of VA Tech Wabag surged 7 per cent to Rs 204.65 on the BSE in the intra-day trade on Wednesday after the company allotted 5 million equity shares to Rekha Rakesh Jhunjhunwala, wife of ace investor Rakesh Jhunjhunwala on preferential basis.

VA Tech Wabag, the Indian multinational player in the water treatment industry, had decided to raise Rs 120 crore via preferential issue on August 25.

Consequently, the board had approved issue of 7.5 million equity shares at price of Rs 160 per share, the company said in its BSE filing.

On Tuesday, the board allotted 5 million shares to Rekha Rakesh Jhunjhunwala, 1.5 million shares to Basera Home Finance, and 1 million shares to Sushma Anand Jain and Anand Jaikumar Jain. READ HERE

In the past three months, the market price of VA Tech Wabag has rallied 87 per cent, as compared to 8.6 per cent rise in the S&P BSE Sensex.

At 09:50 am, the stock was up 5 per cent at Rs 200 on the BSE, as against 0.26 per cent decline in the S&P BSE Sensex. A combined around 660,000 equity shares had changed hands on the counter on the NSE and BSE till the time of writing o this report.