ANALYSIS OF THE HINDU AND ECONOMIC TIMES DATED 10/10/2019

• NEWS PAPER ANALYSIS
  ANALYSIS OF THE HINDU AND ECONOMIC TIMES DATED 10/10/2019

• PAGE (1) THE HINDU: SLOW DOWN EFFECT MORE PRONOUNCED IN INDIA: IMF
• ET ( 9) SLOW DOWN IN INDIA MORE PRONOUNCED THIS YR :IMF MD

1. HAS FLAGGED MORE PRONOUNCED SLOW DOWN IN INDIA AS IT CALLED FOR A COORDINATED FISCAL RESPONSE TO ARREST THE SYNCHRONIZED SLOW DOWN
2. MD OF IMF :KRISTALINA GEORGIVEA : 90% OF THE WORLD IS LIKELY TO HAVE SLOWER GROWTH IN 2019,SIGNALLING OUT INDIA ALONG WITH BRAZIL
3. IN SOME OF THE LARGEST ECONOMIES SUCH AND INDIA AND BRAZIL : MORE PRONOUNCED THIS YEAR
4. IN CHINA GROWTH IS GRADUALLY COMING DOWN FROM THE RAPID PACE IT SAW FOR MANY YEARS

5. THE RBI ON FRIDAY LOWERED INDIA ‘S GDP GROWTH ESTIMATE FOR THE YEAR FROM 6.9% TO 6.1%
6. THE IMF  WHICH HAD FORECAST 7% GROWTH FOR INDIA IN JULY LIKELY TO LOWER IT SHARPLY IN THE FRESH ASSESSMENT
7. REASONS FOR SLOW DOWN :
8. SLOW DOWN ON A RANGE OF ISSUES CLUBBED THEM UNDER COMMON THEME FRACTURES
9. TRADE DISPUTES AND TRADE GROWTH HAS COME TO STAND STILL
10. TRADE TENSIONS AND WORLD WIDE MANUFACTURING ACTIVITY AND LOW INVESTMENT

11. TIME FOR COUNTRIES WITH ROOM IN THEIR BUDGET TO DEPLOY TO GET READY TO DEPLOY FISCAL FIREPOWER
12. LOW INTEREST RATE MAY GIVE SOME POLICY MAKERS MORE MONEY TO SPEND
13. STRUCTURAL REFORMS CAN RAISE THE PRODUCTIVITY AND GENERATE ENORMOUS GAINS
14. RIGHT REFORM IN THE RIGHT SEQUENCE

• MODI-XI INFORMAL SUMMIT TO BE HELD IN CHENNAI FROM TOMORROW ( THE HINDU 1)
  LAC,COUNTER TERRORISM TRADE DEFICIT ON AGENDA (ET 2)

1. CHINESE PRESIDENT XI JINPING WILL ARRIVE IN CHENNAI ON FRIDAY FOR THE SECOND INFORMAL SUMMIT
2. THE MEETING BETWEEN THE TWO LEADERS WHICH FOLLOWS THE WUHAN SUMMIT LAST APRIL THAT RESET TIES IS EXPECTED TO ENHANCE THE BILATERAL TIES
3. AGENDA WOULD BROADLY FOCUS BUILDING ON WUHAN CONSENSUS FOR BETTER TIES
4. CONTINUE THEIR DISCUSSION ON :
5. BILATERAL ,REGIONAL AND GLOBAL IMPORTANCE
6. EXCHANGE VIEW ON DEEPENING INDIA CHINA CLOSER DEVELOPMENT PARTNERSHIP
7. MODI-XI INFORMAL SUMMIT TO BE HELD IN CHENNAI FROM TOMORROW ( THE HINDU 1)
   LAC,COUNTER TERRORISM TRADE DEFICIT ON AGENDA (ET 2
8. NO SPECIFIC OUTCOME OR AGREEMENTS
9. BUT THE TWO LEADERS WILL TALK ON BILATERAL ISSUES INCLUDING ENHANCING TRADE
10. RESOLVING THE BOUNDARY DISPUTE AND POSSIBLE NEW CONFIDENCE BUILDING MEASURES AND REGIONAL ISSUES INCLUDING TERRORISM AND OTHER GLOBAL AND BILATERAL TRADE ISSUES
11. WILL MEET AGAIN WITH IN TWO WEEKS AT THE EAST ASIAN AND RCEP SUMMIT N THAILAND AND 16 NATION FTA WILL BE ON THE TABLE FOR TALKS ALONG WITH BILATERAL TRADE ISSUES
12. THE CHOICE OF MAMALLAPURAM AND CHENNAI HAD BEEN MADE DUE TO SEVERAL REASONS :
13. PM HAD GIVEN CLEAR GUIDANCE THAT IT WOULD HAVE TO BE HELD OUTSIDE THE NATIONAL CAPITAL AND AT HISTORICAL PLACE AS PRESIDENT XI’S INTEREST IN HISTORY

• DATA LOCALIZATION PLANS UNCERTAIN ( THE HINDU 1)

1. INDIA’S DATA LOCALIZATION PLANS HANG IN THE BALANCE A IT WILL JOIN THE OTHER REGIONAL COMPREHENSIVE ECONOMIC PARTNERSHIP COUNTRIES ON DISCUSSION THE ECOMMERCE CHAPTER
2. RCEP MEETING WILL TAKE PLACE BANGKOK FROM OCTOBER 10 TO 13
3. IF INDIA AGREES TO THE PROVISIONS OF CHAPTER 10 ON E-COMMERCE AS SPECIFIED BY MOST OF THE OTHER COUNTRIES,IT WILL MEAN IT WOULD NOT ALLOWED TO IMPOSE DATA LOCALIZATION RULES ON COMPANIES LOOKING TO DO BUSINESS IN INDIA
4. IT WOULD GO AGAINST THE RBI’S NORMS ON LOCALIZATION OF PAYMENT OF DATA THAT IT HAD ORDERED IN APRIL 2018
5. SUGGESTED PHRASING BY THE 14 MEMBERS GROUP ( THE RCEP COMPRISES 16 COUNTRIES INCLUDING CHINA) ON CROSS BORDER ELECTRONIC TRANSFER OF INFORMATION BY ELECTRONIC MEANS WHERE SUCH ACTIVITY IS FOR THE CONDUCT OF THE BUSINESS OF COVERED PERSON
6. IN APRIL 2018 NOTIFICATION THE RBI HAS SAID THAT ALL SYSTEM PROVIDERS SHALL ENSURE THAT ENTIRE DATA RELATING TO PAYMENTS SYSTEMS OPERATED BY THEM ARE STORED IN A SYSTEM ONLY IN INDIA
7. THIS DATA TO INCLUDE : FULL END TO END TRANSACTION DETAILS,INFORMATION COLLECTED ,PROCESSED AS PART OF THE MESSAGE OR PAYMENT INSTRUCTION
8. INDIAN NEGOTIATORS ARE TRYING TO DILUTE THE PROVISIONS IN THE CHAPTER BY MAKING RCEP CLAUSES SUBJECT TO DOMESTIC LAWS
9. DATA LOCALISATION PLANS UNCERTAIN ( THE HINDU 1)
10. INDIAN SUGGESTION FOR THE CHAPTER THUS READ : NO PARTY SHALL SUBJECT TO LAWS AND REGULATIONS FRAMED BY IT FROM TIME TO TIME REQUIRE A COVERED PERSON TO USE OR LOCATE  COMPUTING FACILITIES IN PARTY ;S TERRITORY AS CONDITION FOR CONDUCTING BUSINESS IN THAT COUNTRY
11. A SIMILAR CHANGE HAS BEEN SUGGESTED TO CLAUSE ON THE TRANSFER OF ELECTRONIC INFORMATION ACROSS BORDERS SUBJECT TO DOMESTIC LAWS AND NORMS FRAMED FROM TIME TO TIME

• SBI CUTS SAVING INTEREST RATES
  ( THE HINDU 1)

1. STATE BANK OF INDIA DUE TO ADEQUATE LIQUIDITY IN THE BANKING SYSTEM,THE SBI HAS DECIDED TO CUT DEPOSITS RATES AND LENDING RATES
2. SAVING ACCOUNT BY 25 BASIS POINT TO 3.25% FOR DEPOSITS UP TO ONE LACS EFFECTIVE FROM NOVEMBER
3. CUT THE RETAIL TERM DEPOSIT RATE BY 10 BASIS POINT AND CORPORATE BULK DEPOSIT RATES BY 30 BPS FROM OCTOBER 10
4. SBI’S PEAK DEPOSIT FIXED RATES WILL BE 6.4% FOR DEPOSITS MADE FOR A PERIOD OF ONE YEAR TO LESS THAN 2 YEARS
5. ON THE LENDING SIDE MARGINAL COST OF FUNDS BASED ON LENDING RATE (MCLR) WAS CUT BY 10 BASIS POINT
6. THE ONE YEAR MCLR TO WHICH MOST OF LOANS ARE LINKED WILL BE 8.05%

• RBI REJECTS INDIA BULLS HOUSING LAXSHMI VILAS BANK MERGER DEALS (THE HINDU 13)
•  RBI TURNS DOWN INDIABULSS’S HOUSING ‘ MERGER WITH LVB
• (THE ET PAGE 1)

1. REJECTED THE PLAN TO MERGE THE INDIA BULLS HOUSING FINANCE AND LAXSHMI VILLAS BANK AFTER EXAMINING THE PROPOSAL FOR MORE THAN SIX MONTH
2. THE REGULATORY REJECTION WITHOUT MAKING THE REASON PUBLIC THE DECISIONS RAISES FRESH WORRY FOR THE TROUBLED NON BANKING FINANCE COMPANY INDUSTRY WHICH HAS BEEN STRUGGLING FOR FUNDS AFTER THE COLLAPSE OF THE INFRASTRUCTURE LEASING AND FINANCIAL SERVICE YEAR
3. TWO MADE FORMAL ANNOUNCEMENT ABOUT THE PLANNED COMBINATIONS
4. REGULATORY ASPECT OF MERGER GIVEN THAT THE GROUP HAS BEEN PREDOMINANTLY IN REAL ESTATE WHICH THE REGULATOR TREATS AS RISKY
5. INDIA BULL HAS BEEN FINANCIALLY STRONG WITH HIGH CAPITAL ADEQUACY AND LOW BAD LOANS
6. HAMPERED BY ITS ABILITY TO RAISE RETAIL LOANS SINCE IT FACES RESTRICTIONS ON TAKING DEPOSITS AS NBFC
7. LAXMI VILAS HAS ACCESS TO RETAIL DEPOSIT BUT CRIPPLED BY HIGH BAD LOANS AND POOR CAPITAL POSITION AND LOSSES HAVE BEEN DOUBLED TO 237 CRORE IN THE QUARTER ENDED JUNE 2019
8. GROSS NPA WAS 17.3O (PUBLIC SECTOR 10.73%)
9. CAPITAL ADEQUACY NORM IS 8% BUT IT HAS 6,46%

• GOVT MAY GET MORE POWER TO TAX MNC LIKE GOOGLE ,FB ( THE ET 1)

1. COUNTRIES AROUND THE WORLD INCLUDING INDIA WILL GET MORE POWER TO TAX BIG MULTINATIONAL LIKE GOOGLE,APPLE AND FACE BOOK DOING BUSINESS UNDER PROPOSED OVERHAUL OF DECADE OLD RULES
2. THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT HAS PROPOSED TO EXPAND GOVERNMENT RIGHTS TO TAX MNC BY RELEASING A METHODOLOGY TO TAX THEM
3. DIGITAL COMPANIES AROUND THE WORLD WILL HAVE TO PAY MORE TAX THOUGH THE QUANTUM IN INDIA IS YET TO BE DECIDED

• JIO TO CHARGE 6PAISE PER MINUTE FOR CALLS TO OTHER NETWORKS (THE HINDU 13)

1. MORE THAN 350 MILLIONS CUSTOMERS OF RELIANCE JIO WILL HAVE TO PAY INTERCONNECT USAGE CHARGES OF 6 PAISE PER MINUTE FOR MOBILE CLASS MADE TO OTHER NETWORK
2. ORIGINALLY PROMISED FREE,UNLIMITED VOICE CALLS ON THE JIO NETWORK
3. IUC PAID BY ONE OPERATOR TO ANOTHER WHEN ITS CUSTOMER MAKE OUTGOING CALL TO OTHER OPERATOR
4. CALLS ARE KNOWN MOBILE OFF NET CALLS
5. IUC CHARGES ARE FIXED BY THE TELECOM REGULATORY AUTHORITY OF INDIA AND CURRENTLY STAND TO 6 PAISE PER MINUTE

• MAMALLAPURAM AS VENUE MAY BOOST INDIA’A ACT EAST POLICY ( THE ET 2)

1. THE DECISION TO CHOOSE MAMALLAPURAM AS THE VENUE FOR SECOND INDIA-CHINA INFORMAL SUMMIT WAS A CONSCIOUS MOVE THAT WILL PUSH INDIA’S ACT EAST POLICY IN THE BACKDROP OF HISTORICAL CONNECT BETWEEN THE REGION AND FUJIAN EASTERN CHINA
2. CHINESE PRESIDENT XI JINPING ONCE SERVED AS GOVERNOR OF FIJIAN WHICH HAD HISTORIC ALL CONNECTION AND FLOURISHING TRADE WITH MAMALLAPURAM AND HIS VISIT ( THIRD TO INDIA SINCE 2014 AS PRESIDENT)

3. COULD BOOST INDIA’ ACT EAST POLICY CONNECTING SOUTH ASIA’S BIGGEST COUNTRY WITH BEIJING
4. PM AT THE SUMMIT WILL HIGHLIGHT HOW INDO PACIFIC VISION OF WHICH ACT EAST POLICY IS A CRITICAL ELEMENT INCLUDES CHINA ATTEMPTING TO ALLAY BEIJING APPREHENSIONS ON DELHI’S INDIA PACIFIC CONSTRUCT
5. INDIAN AUTHORITIES LOOKED AT MANY LOCATIONS
6. MALLAAPURAM’S WORD HERITAGE TAG WITH STRONG CONNECTION WITH CHINA
7. MAMALLAPURAM AS VENUE MAY BOOST INDIA’A ACT EAST POLICY ( THE ET 2)
8. XI IS AN ENTHUSIAST OF HISTORY AND CULTURE
9. EVIDENT TO PM DURING THE FIRST INFORMAL SUMMIT IN WUHAN SO INDIA WAS LOOKING FOR VENUE WITH WORLD HERITAGE
10. MALLAPURAM IS WORLD HERITAGE SITE AND WAS LISTED IN 1984
11. CHINES BUDDHIST MONK XUANANG HAD VISITED KANCHIPURAM DURING PALLAVA DYNASTY 
12. IT HAS BEEN A MAJOR PORT CITY DURING THE PALLAVA KINGDOM THE 7 TH CENTURY
13. MAJOR TRADING CONNECTION BETWEEN PALLAVA AND CHOLA KINGDOM OF SOUTH INDIA WITH THE SOUTHEASTERN COAST OF CHINA PARTICULARLY THE PROVINCE OF FIJIAN AND CITY OF QUANZHOU