THE HINDU AND THE ECONOMIC TIMES ANALAYIS 27 TH AUGUST,2019

   NEWS PAPER ANALYSIS
THE HINDU AND THE ECONOMIC TIMES ANALAYIS 27 TH AUGUST,2019

   PM REJECTS SCOPE FOR THIRD PARTY MEDIATION IN KASHMIR

1. PM NARENDRA MODI ON MONDAY CATEGORICALLY REJECTED ANY SCOPE FOR THIRD PARTY MEDIATION BETWEEN INDIA AND PAKISTANT ON KASHMIR
2. MR TRUMP IN THE RECENT PAST HAS OFFERED MEDIATION BETWEEN INDIA AND PAKISTAN
3. ACCORDING TO DONALD TRUMP: HE HAS GOOD RELATIONS WITH BOTHE THE PM( INDIA AND PAKISTAN)
4. TENSIONS BETWEEN INDIA AND PAKISTAN SPIKED AFTER INDIA AND PAKISTAN ABROGATED PROVISIONS OF ARTICLE 370 OF THE CONSTITUTION EVOKING STRONG REACTIONS FROM PAKISTAN.
5. FOREIGN SECRETARY VIJAY GOKHALE BRIEFED REPORTES AFTER TALKS BETWEEN MR MODI AND MR TRUMP, TWO LEADERS HAS A VERY WARM AND POSTIVE METTING WHICH LASTED 40 MINUTES,
6. THIRD INTERACTION SINCE PRIME MINISTER MODI WAS REELECTED IN MAY
7. THEIR MEETING PRINCIPALY FOCUSSED ON TRADE AND ENERGY
8. THE PRIME MISNISTER SPOKE OF THE IMPORTANCE OF ENERGY IMPORTS FROM THE U.S AND REFERRED TO THE FACT THAT 4$ BILLION WORTH OF IMPORTS WERE ALREADY IN THE PIPELINE AND THAT WOULD BE EXPECTED TO BE STEPPED UP.
9. DURING HIS VISIT TO THE US NEXT MONTH TO ADDRESS THE UN GENERAL ASSEMBLY,THE PM IS EXPECTED TO HAVE ROUND TABLE WITH THE TOP CEOS OF THE US ENERGY COMPANIES IN HOUSTON.

§THE OBJECTIVE IS TWO FOLD:

1.       HOW WE CAN IMPORT MORE ENERGY FROM THE US

2.       HOW WE CAN INVEST IN THE ENERGY SECTOR IN THE US

   RBI SHOWERS RS 1.76 LACS CRORE BONANZA ON GOVERNMENT ( THE HINDU)
WINDFALL : RBI TO TRANSFER 1,76 CR TO GOVT FOR FY 20 ( THE ECONOMICS TIMES)

1. THE RBI’S CENTRAL BOARD ACCEPTED THE RECOMMENDATION OF THE BIMAL JALAN COMMITTEE ON CAPITAL TRANSFER AND DECIDED TO TRANSFER AND DECIDED TO TRANSFER 1,76 LACS FOR THE YEAR TO THE GOVERNMENT.
2. RBI HAD FORMED A COMMITTEE CHAIRED BY FORMER GOVERNOR BIMAL JALAN TO REVIEW ITS ECONOMIC CAPITAL FRAMEWORK AND SUGGEST THE QUANTUM OF EXCESS OF PROVISIONS TO BE TRANSFERRED TO GOVERNMENT. THE COMMITTEE WAS FORMED AFTER A DEMAND FROM THE GOVERNMENT FOR MORE MONEY. THE RBI BOARD HAS ACCPETED ALL THE RECOMMENDATIONS OF JALAN COMMITTEE,
3. THE COMMITTEE’S RECOOMMENDATION WERE GUIDED BY THE FACT THAT RBI FORMS THE PRIMARY BULWARK FOR MONETARY,FINANCIAL AND EXTERNAL STABILITY
4. AT BOARD MEETING THE RBI DECIDED TO HAND OVER ITS ENTIRE 2018-2019 SURPLUS OF 1.23 LACS CR TO THE GOVERNMENT AND 52,637 CORE OF EXCESS PROVISIONA
5. RBI SHOWERS RS 1.76 LACS CRORE BONANZA ON GOVERNMENT ( THE HINDU)
   WINDFALL : RBI TO TRANSFER 1,76 CR TO GOVT FOR FY 20 ( THE ECONOMICS TIMES
6. RECOMMENDED A CLEAR DISTINCTION BETWEEN TWO COMPONENTS OF ECONOMIC CAPITAL
1. REALIZED EQUITY
2. REVALUATION BALANCES
7. RECOMMENDED THAT REALIZED EQUITY  COULD BE USED FOR MEETING ALL RISKS AND LOSSES AS THEY WERE PRIMARILY BUILT UP FROM RETAINED EARNING
8. WHILE REVALUATION BALANCES COULD BE RECONED ONLY AS RISK BUFFERS AGAINST MARKET RISKS AS THEY REPRESENTED UNREALIZED VALUATION GAINS AND HENCE WERE NOT DISTRTRIBUTABLE
9. ALSO RECOGNIZED THAT RBI;S PROVISIONING FOR MONETARY,FINANCIAL AND EXTERNAL STABILITY RISKS IS THE COUNTRY’S SAVING FOR RAINY DAY ( A MONEATRY OF FINANCIAL STABILITY) WHICH HAS BEEN CONTINUOUSLY MAINTAINED WITH THE RBI

   MANMOHAN CONTINUE TO HAVE Z+ SECURITY : MHA

1.       THE MINISTRY OF HOME AFFAIRS  : FORMER PRIME MINISTER MANMOHAN SINGH CONTINUED TO HAVE  Z PLUS SECURITY, A DAY AFTER THE HINDU REPORTED THAT THE SPECIAL PROTECTION GROUP WOULD BE WITHDRAWN FROM HIS SECURITY DETAIL SHORTLY

2.       SPOKESPERSON HIGHLIGHTED THAT CURRENT SECURITY COVER REVIEW IS PERIODICAL AND PROFESSIONAL EXERCIES BASED ON THREAT PERCEPTION THAT IS PURELY BASED ON PROFESSIONAL ASSESSMENT BY SECURITES AGENCIES

3.       THE SPG AN ELITE PROTECTION FORCE WAS SET UP IN 1988 AFTER THE ASSAINATION OF FORMER PRIME MINISTER INDIRA GANDHI.

4.       THE FORCE COMPRISING 3000 OFFICERS MEANT FOR THE PRIME MINISTERS AND THEIR FAMILIES WOULD BE TASKED WITH PROTECTING ONLY PRIME MINISTER ,CONGRESS PRESIDENT,SONIA GANDHI,AND HER CHILDREN RAHUL AND PRIYANKA GANDHI VADRA.

   PM HIGHLIGHTS WAR ON SINGLE USE PLASTIC

1.       PM IN HIS ADDRESS TO A G7 SESSION ON ENVIRONMENTAL  HIGHLIGHTED INDIA’S LARGE SCALE EFFORTS TOWARDS ELIMINATING SINGLE USE PLASTIC ,CONSERVING WATER,HARNESSING SOLAR ENERGY AND PRTOTECTING FLORA AND FAUNA FOR SUSTAINABLE FUTURE.

2.       PM IS ATTENDING THE G7 SUMMOT IN FRENCH TOWN BIARRITZ ON SPECIAL INVITATION OF FRENCH PRESIDENT EMMANUEL MACRON

3.       IN HIS ADDRESS TO THE INDIAN COMMUNITY AT THE UNESCO COMMUNITY HEADQUATERES IN PARIS LAST WEEK, INDIA WOULD ACHIEVE MOST OF THE CONFRENECE OF THE PARTIES ( COP 21) CLIMATE CHANGE GOALS SET FOR 2030 IN THE NEXT YEAR AND AHALF

4.       THE 21 SESSION OF THE COP21 OF THE UNITED NATIONS FRAMEWORK CONVENTION ON CLIMATE CHANGES ( UNFCCC) WAS HELD IN PARIS FROM NOV 30 TO DEC 12 ,2015 WITH PARTICIAPTION OF 195 NATIONS.

5.       PM HIGHLIGHTS WAR ON SINGLE USE PLASTIC

6.       THE NATION NEGOTIATED AND ADOPTED THE PARIS AGREEMENT IN WHICH INDIA MADE FOUR COMMITMENTS INCLUDING REDUCING GREEN HOUSE GAS EMISSIONS INTENSITY OF ITS GDP BY 33-35% BELOW 2005 LEVELS BY 2030 UNDER ITS NATIONALITY DETERMINED CONTRIBUTIONS

7.       40 % OF ITS POWER CAPACITY WOULD BE BASED ON NO FOSSILS SOURCES AND THE COUNTRY WOULD CREATE AN ADDITIONAL CARBON SINK OF 2.5 TO 3 BILLION TONNES OF CARBON DIOXIDE EQUIVALENT THROUGH ADDITIONAL FOREST AND TREE COVER BY 2030.

   EDITORIAL : GOLD WINNER

1.       PV SINDH’S VICTORY AT THE BADMINTON WORLD CHAMPIONSHIP OUGHT TO BE REGARDED AS ONE OF THE FINEST ACHIEVMENTS IN THE HISTORY OF INDIAN SPORT.

2.       NO INDIAN SHUTTLER HAD CLAIMED THE WORL TITLE BEOFR,CERTAINLY NO ONE AFTER PRAKASH PAUDKONE AND P GOPICHAND CAME CLOSE TO MATCHING THEIR ALL ENGLAND WIN.

3.       WITH HER BRUTAL 38 MINTES DISMANTLING NOZOMI OKUHARA IN BASEL,HAS BROKEN NEW GROUND AFTER A STRING OF LOSSES IN MAJOR FINALS INCLUDING 2016,2017 AND 2018 WORLD CHAMPIONSHIP AND 2018 COMMON WEALTH AND ASIAN GAMES

4.       THE WORLD CHAMPIONSHIP NOW AGURS WELL FOR SINDHU’C CHANCES OF WINNING GOLD AT THE 2020 OLYMPIC GAMES. IT IS SOMETHING NO INDIAN BADMINTON PLAYER MALE OR FEMALE HAS MANAGED

   TALKING TRADE WITH THE EU

1. AS THE ECONOMY BEGINS TO SUFFER FROM THE US CHINA TRADE WAR,NECESSARY FOR INDIA TO PURUSE A FREE TRADW AGREEMENT WITH EUROPEAN UNION. BOTH SIDE MET IN BRUSSELES
2. THIS IS THE RIGHT TIME FOR INDIA TO ENGAGE THE EU FOR CREATING A FAVOURABLE GEO ECONOMIC ORDER . A SERIES OF ECONOMIC AND GEO STRATEGC FACTORS MAKE THE NEED FOR AN ECONOMIC DEAL WITH THE EU MORE URGENT
3. INDIA IS THE ONLY MAJOR POWER LACKING AN FTA WITH ANY OF THE TOP TRADE PARTNER  INCLUDING THE EU,US,CHINA AND GULF ECONOMICS. THIS SITUATION IS NOT TENTATIVE AS MOST TRADE EITHER BY FTAS AND GLOBAL VALUE CHAINS
4. IN JUNE BRUSSELS,CONCLUDED TRADE DEALS WITH VIETNAM AND HISTORIC FTA WITH THE MERCOSUR COUNTRIES IN SOUTH AMERICA AND INDIA IS HANGING ON MOST FAVOURED NATION STATUS.
5. ITS STATUS UNDER THE EU’S GENERALISED SCHEME OF PREFERNECES WILL FACE COMPETITION FROM PAKISTAN,SRILANKA WHO ALSO ENJOY GSP

6. STUCK IN GREY JONE WITHOUT PREFEENCE FTA TARIFFS OR GSP + STATUS,INDIA WILL STRUGGLE TO KEEP EXPORTS COMPETIVE FOR EUROPE,ITS LARGEST TRADE PARTNER WHERE 20% OF ITS EXPORT LAND UP.
7. GOOD NEWS THAT INDIA;S TALK WITH EU HAVE BEEN ADVANCING SLOWLY BUT STEADILY FROM AGRICULTURE TO INTELLECTUAL PROPERTY RIGHT,THE EU AND INDIA HAVE BEEN QUITELY BEEN EXCHNAGIG AND ALIGNING VIEWS.
8. NEW AREA LIKE E COMMERCE HAVE REGISTERED SIGNIFICANT CONVERGENCE  BECAUSE INDIA’S POSITION ON DATA PRIVACY IS NOT DIFFERENT FROM THE EUS.
9. IT MUST APPROACH EU BEYOND MERE COST AND BENEFIT ANALYSIS.
10. EU NEGOTIATORS ARE NOW MORE WILLING TO MAKE ICONCESSIONS ON LABOUR OR ENVIRONMENTAL REGULATIONS AND ALSO OFFERS A UNIQUE REGULATORT MODEL THAT BALANCES GROWTH,PRIVACY AND STANDARDS
11. INDIA’S GOVERNANCE SHARES THE EUROPIAN NORMS OF DEMOCRATIC TRANSPARENCY AND MULTISTAKEHOLDER PARTICIAPTION ON VARIETY OF NEW TECHNOLOGICAL DOMAINS,FROM REGULATING ARTIFICALLY INTELLIGENCE TO 5 G NETWORKS.
12. INDIA MUST SEE IT AS PREMIUM THAT IS NOT ACCOUNTED FOR IN STRICT COST AND BENEFIT ANALYSIS
13. NEWS FROM THE ECONOMIC TIMES

  GOVT NOTICES AN ISSUE IN TIK TOK’S SHARE CHAT NOTICES

•                        GOVERNMENT TO SEEK CLARITY FROM TIKTOK ON ITS STATUS AS SOCIAL INTERMEDIARY

•                        RIVAL COMPLAINT:

1.       SHARE CHAT HAS WRITTEN TO GOVT ON TIK TOK’S STATUS

2.       IT HAD RECEIVED CONTENT TAKENDOWN NOTICE FROM THE CHINESE APP

3.       SHARECHAT BELIEVES TIKTOK CAN NOT CLAIM CONTENT EXCLUSIVITY IF IT IS AN INTERMEDIARY

4.       IN SUCH A CASE IT WILL BE LIABLE FOR NATURE OF CONTENT HOSTED

5.       CITES GOVT;S POSTION AGAINST SUCH EXCLUSIVE PACTS ON RIDES SHARING AND  E COMMERCE

   DISCRETIONARY URBAN GOODS STAY ON FAST TRACK

1.       THE SLOW DOWN IN INDIA’S CONSUMPTION OF FAST MOVING CONSUMER GOODS IS NOT ACROSS THE BOARD.

2.       URBAN AND DISCRETIONARY PRODUCTS ARE GROWING AT FASTER PACE WHILE SOME GOODS OF MASS MAREKTING HURT

3.       DAILY HOME AND PERSONAL PRODUCTS INCLUDING CREAMS,DETERGENTS,TOOTHPASTE,DEODRANTS,CHOCKLATES,MELTED BEVERAGES AND NOODLES GREW AT HIGHER RATE DURING APRIL TO JUNE.BUT FMCG FELL 60 BASIS POINT TO 10%

4.       CONSUMPTION IN RURAL INDIA WHICH ACCOUNT FOR 1/3 OF MARKET HAS BEEN UNDER STRESS OVER THE PAST THREE QUARTERS

5.       NIELSON IN THEIR REPORT THAT RURAL CONTRIBUTED 57% TO THE SLOW DOWN.

   STOCK CHEERS FM STEPS INDICES STAGE BIGGEST GAIN IN 3 MONTHS

1.       INDIA ‘S KEY STOCKS SOARED OVER BY 2% THEIR BIGGEST SINGLE DAY GAIN IN THREE MONTH ON RENEWAL HOPE THAT THE US AND CHINA WOULD REVIVE TALKS TO EASE THEIR TRADE

2.       THE GOVERNMEN ‘S DECISIONS TO PARTIALLY ROLL BACK THE SURCHARGE ON STOCK TRADES BY FOREIGN FUNDS AND BOOST LIQUIDITY ADDED TO SETIMENTS ON STREET ALTHOUGH FUND MANAGERS AND BROKERS SAID THESE MEASURES WERE NOT ENOUGH TO BRING THE GROWTH

3.       SENSEX GAINED 2,2% AND NIFTY 2,1%.

4.       SENSEX GAINERS WERE : YES BANK,HDFC,BAJAJ FINANCIAL AND HDFC BANK AND SENSEX LOSERS:- TATE STEEL,SUN PHARMA,HERO MOTORS AND VEDANTA

5.       GOLD HITS HIGH OF 40,000 FOR THE FIRST TIME

   NITI AAYOG, MeitY SPAR OVER 7000 CRORE MISSION

1. THE GOVERNMENT’SPREMIER THINK TANK NITI AAYOG AND THE MINISTRY OF ELECTRONICS AND IT ARE SPARRING OVER THE CREATION OF AN ARTIFICIAL INTELLIGENCE MISSION
2. INTERMINISTRIAL MEETING HELD EARLY THIS MONTH MeitY OFFICALS VERBALLY RIASED THEIR CONCERN OVER THE MANY OVERLAPS BETWEEN NITI AAYOG ;S 7000 CRORE AL ROADMAP AND ITS OWN WOK IN THE AREA
3. ACCORDING TO NITI AAYOG,AI MISSION IS NOT MONOPOLY OF ANY MINISTRY AND IS NATIOANL MOVEMENT AND ALL DEPARTMENTS SHOULD ADOPT MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE. BUT NO DUPLICATION OF WORK
4. ROAD MAP INCLUDED SETTING UP OF FIVE CNETRES OF RESEARCH EXCELLENCE 20 INSTITUTIONAL CENTRES FOR TRANSFORMATIONAL AI COULD AND CLOUD COMPUTING PLATFORM CALLED AIRAWAT
5. SUMMARY OF NEWS
6. ONLINE HIRING DIPS 5% IN FIRST HALF
7.  SLOW SIGN BY SECTORS SUCH AS AUTOMOTIVES,AGROBASED INDUSTRY,CONSUMER GOODS AND FAST MOVING CONSUMER GOODS
8. ACCORDING TO THE MONSTER  EMPLOYMENT REPORT SHOWS 5% DECLINE IN ONLINE HIRING ACROSS 27 SECTORS IN INDIA

SLOW DOWN –HIT AUTO COS GET TECH READY FOR TURN OF TIDE :

1.       BRING OUT STRUCTURAL CHANGES AND MOST OF THE COMPANIES HAVE PUT A FREEZE ON THE HIRING ACROSS THE SECTOR SUCH AS MAHINDARA AND MAHINDRA,HYUNDAI MOTORS,HERO MOTOR CORP,TOTYOTA KIRLOSKARE.

2.       THEY WANT TO MAKE SURE THAT THEY ARE FURTUE READY ON TECHNOLOGY AND MANUFACTURING

3.       MORE INTEGRATION AMNUFATURING AND RESEARCH AND DEVELOPMENT

4.       ELECTRONICS,ELECTRICAL AND SOFTWARE CONTENTS HAVE BEEN INCREASING.