- The document provides a summary of news from India and around the world between October 14th and 27th, 2014. It covers topics like India's exports and unemployment, labour reforms in India, drops in inflation rates, and world events like the Ebola outbreak and falling oil prices. It also summarizes scandals involving DLF and Swiss bank accounts, as well as updates on sectors like retail, aviation, IT and automobiles.

1. NEWS UPDATE
Oct 14th - Oct 27th 2014

2. Agenda
 India Update
 World Events - International Business News
 Scams – DLF and Swiss Accounts
 Indian Company updates

3. India Update

4. Keep an eye on India’s Exports
 Unemployment of 6%
 Retail sales fell for the first time
in 2014 in Sep
 Germany 2014
growth outlook
down to 1.2% from
1.8%
 Europe looking
sluggish
Affected sectors
– Auto
Ancillaries,
textiles,
chemicals

5. Changes in Finance
Governance
Arvind Subramanian appointed as Chief
Economic Advisor
Push to Reform agenda
 Arvind Mayaram out to Tourism
 He was Economic Affairs
Secretary – UPA appointee
 Now replaced by Rajiv Mehrishi

6. Labour Reforms – Shrameva Jayate
 Ending harassment of
businessmen by officials
 End of Inspector Raj
 Inspection lists will be computer
generated as well as which inspector to
go for inspection
 Easier submission of compliance
documentation
 16 Forms reduced to 1
 Making it easier for labour
 Universal PF number
 Centre to contribute 50% of stipend for
training 100,000 people in the first 2 years
of Apprentice Protshan Yojana

7. Suggested Reading
 http://economictimes.indiatimes.com/industry/a
uto/news/industry/PM-Narendra-Modi-unveils-labour-
reforms-launches-Universal-Account-
Number-for-employees/
articleshow/44833803.cms
 http://economictimes.indiatimes.com/news/eco
nomy/policy/labour-reforms-will-boost-investor-sentiment-
india-inc/articleshow/44837800.cms

8. Sep WPI falls to 5 year low
 2.38%
 Fuel and Food
 Pressure on RBI to decrease rates?
 CPI target of 6%
 Sluggish growth – car sales contracted again
in Sep

9. Suggested Reading
 http://www.financialexpress.com/news/is-cpi-a-better-
inflation-indicator-than-wpi-/1176955

10. Rate cuts – WHEN?
 WPI< 3%
 CPI – Target is < 6%
 Huge fall in world commodity prices
 December Monetary Policy announcement will
rates be cut
 Is the benefit of rate cut going to the
consumer?

11. Environment Clearances …
 Positive changes ushered in
 Project promoters can now attend hearings for
forest clearances
 Changes in CSR spend norms of 5% of
Project Costs which contradicts CSR spend of
2% of Profits as per company law.

12. World Updates

13. Why World events are relevant?
 Russian Rouble has
devalued
 Goa will see 15% drop in
charter flights from Russia
 Leela Goa does 40% of its
annual business between
Oct and April from Charters
– 60% are Russian
Charters

14. Ebola
 West Africa – may
spread to Liberia,
Sierra Leone, Guinea
 Treatment may cost in
excess of 30 B $
 Isolate Ebola not
countries – affected
countries may see
decrease in trade
 Airlines impacted

15. Citi Shrinks Consumer Banking
 Will exit Consumer Banking in 11 more
markets
 Will continue serving Institutional Clients in
these markets
 Third largest US Bank
 Commitment of finite resources

16. Oil Prices Fall – Worry for Saudi
 International Oil prices down –
Reasons?
 Production and drilling frenzy in North
America – 70% increase in Oil
Production since 2008
 Reduced consumption in Europe and
Japan
 Saudi options
 Cut production as they did in 1980s
 Maintain lower margins
 Lower Oil prices also affecting Iran and

17. Suggested Reaing
 http://in.reuters.com/article/2014/10/20/market
s-oil-idINKCN0I91QX20141020

18. Scams and Scandals

19. DLF Fiasco
 SEBI charges promoters with
improper disclosure in IPO -
2007
 Shares fell 28%
 Wealth decreased
 Promoter versus Company
 Leak leading to bearish bets?
 19,000 Cr debt

20. The man who made Gurgaon
 Creator of Gurgaon
 Almost sold DLF for 26 L
 Peak value of 187,000 Crores –
now 14,000 Cr
 Wrote a book “Whatever the Odds”
 Friends in high places
 Partnership with farmers

21. Suggested Reading
 http://articles.economictimes.indiatimes.com/2
014-10-22/news/55318731_1_realty-giant-dlf-today-
dlf-stock-sebi-counsel

22. Swiss Bank Lists
 NDA has also not divulged the list
 Recall it is an election promise
 HSBC list got from France – Swiss do not
recognize this – “stolen data
 Agreement between India and Switzerland
 Indian Tax authorities can keep tabs
 Accounts where investigations are being
conducted can be accessed
 Same position as UPA

23. Swiss Bank Lists contd…
 Dubious account holders being told to shut
down.
 Swiss Banks are not under any obligation to
divulge details of closed accounts
 UBS, Credit Suisse, Julius Baer are some of
the banks concerned
 Supreme Court orders lists to be divulged
 Centre submits list to SIT

24. Suggested Reading
 http://economictimes.indiatimes.com/news/poli
tics-and-nation/has-the-government-really-scored-
a-major-victory-in-the-hunt-for-black-money-
in-swiss-banks/
etvertical_articleshow/44934781.cms

25. Sector and Company
Updates

26. RBS exits India
 RBS exits private Banking
Business in India, UAE, HK,
Singapore
 Private Banking arm called
Coutts
 81% state owned Bank
 RBS also acquired part of
ABN Amro Indian Business

27. More Investments in E Comm
Soft Bank Japan
Masayoshi Son
650 Million
35% Stake
Recall
1. Tiger Global US putting 1 B $ in Flipkart
2. Amazon putting 2 B $ into India
3. Azim Premji and Ratan Tata have invested in Snapdeal

28. Brick and Click ….
 Future Group may sell 45 own apparel labels through
On Line
 Looking at deeper synergies – Data sharing, co-branding,
cross promotion and Distribution
 Looking at 1 B $ of Joint Sales

29. Retail – E tail Updates
 Emergence of Price comparison Portals –
mysmartprice.com, buyhatke.com
 Snapdeal to build a Big Data platform
 Will help their partners to draw market insights

30. Brick Versus Click
 Shopping Malls trying to focus on being
“Experiential” destinations
 Restaurants
 Spa
 Malls selling online but delivery to be taken
personally – Infiniti Mall in Mumbai

31. Indigo and Airbus
 Airbus signs largest ever deal with Indigo
 250# Airbus A320
 Potentially a 25 B$ Deal

32. TCS Q2 Results
 Revenue up but misses estimates
 Profits higher than expected
 Announced completion of its take over of CMC
– may help in domestic sales
 Acquisition in Japan of Mitsubishi’s IT arm
taking shape
 Hired 20,000 plus people

33. Tata Steel exiting Europe Business
 Tata steel had bough Corus for 12 B $ in 2007
 Following year US and Europe crisis
 Now planning on selling parts of the Business
 May lead to serious Union Problems
 Distress sale?

34. Auto Recall – now Honda
 5th recall of 2014
 Over 400,000 cars recalled on Faulty Air Bag
 4 deaths recorded
 Top Management takes pay cut

35. Car Makers fined
 14 Car makers are fined for exorbitant and
restrictive spare pricing
 Car makers defence is to cut down spurious
spares
 List includes
 Tata Motors
 M and M
 Maruti
 Toyota Kirloskar
 GM
 Honda
 Fiat
 Skoda