OPINION, P8 COMPANIES, P6 EDITORIAL India must follow China in using AI to boost healthcare INTERNATIONAL, P16 SHUBHRANSHU SINGH ARBITRATION CASE NATIONAL SECURITY ADVISER India needs political campaigns built around progress rather than caste Delhi HC orders attachment of Singh brothers’ assets Trump picks hardliner John Bolton to replace McMaster MUMBAI, SATURDAY, MARCH 24, 2018 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOLUME XXXXXV NO. 314, 30 PAGES, `8.00 P U B L I S H E D F R O M : A H M E D A B A D , B E N G A L U R U , C H A N D I G A R H , C H E N N A I , H Y D E R A B A D , K O C H I , K O L K ATA , L U C K N O W, M U M B A I , N E W D E L H I , P U N E SENSEX: 32,596.54 ▼ 409.73 NIFTY: 9,998.05 ▼ 116.70 NIKKEI 225: 20,617.86 ▼ 974.13 HANG SENG: 30,309.29 ▼ 761.76 `/$: 65.02 ▲ 0.09 `/€: 80.19 ▲ 0.05 BRENT: $69.03 ▲ $0.12 GOLD: `30,700.00 ▲ `205.00 IN THE NEWS With Saavn buy, Jio now takes on Bharti in music HEIGHTENED TENSIONS FE BUREAU New Delhi, March 23 Says plans tariffs up to 25% on imports of US goods; also plans legal action at the WTO China hits back on Trump tariffs $ billion $ billion 375.2 China THE TRADE CONFLICT betweenChinaandtheUSescalated,with Beijing announcing itsfirstretaliationagainstmetals levies hours after President Donald Trump outlined fresh tariffson$50billionofChinese imports and pledged there’s more on theway. On Friday, China unveiled tariffs on $3 billion of US importsinresponsetosteeland aluminium duties ordered by Trump earlier this month.The White House then declared a temporary exemption for the European Union and other nations on those levies,making thefocusonChinaclear.Though Beijing’s actions so far are seen by analysts as measured, there maybe more to come. Equity indexes from Tokyo to Shanghai tumbled more than 3% and US stock futures fell,signalling a furtherretreat for the S&P 500 Index after it Continued on Page 2 71.1 Japan BLOOMBERG Washington/Beijing, March 23 Mexico 68.8 Germany Vietnam 64.3 258.5 268 226.9 273 295.2 315.1 318.7 344.8 367.3 347 375.2 ...and its deficit with India’s deficit with China steadily worsens China worrisome too 60 $ billion 52.94 50 40 30 Total deficit 810 10 38.3 India shares the 9th spot with S Korea 0 0.67 2000-01 2017-18* *Apr-Jan period Source: Ministry of commerce ILLUSTRATION: ROHNIT PHORE fell 2.5%, on risks a further escalation in trade tensions will undermine an unusual phase of synchronised global economic growth. Suppliers to Apple were among the hardest hit in Hong Kong and mainland markets on Friday,as investors focused on potential losers from the trade spat. “China’sresponseissurprisingly modest in light of the US actions,suggesting there could be a good deal more to come,” said Stephen Roach, a former non-executive chairman for MorganStanleyinAsiaandnow aseniorfellowatYaleUniversity. “As America’s third largest and most rapidly growing export market and as the largest foreign ownerofTreasuries,China has considerablymore leverage over the US than Washington politicians care to admit.” InarampingupofhisAmericaFirstethos,TrumpThursday ● CHINESE CHECKERS India to talk tough on trade deficit BANIKINKAR PATTANAYAK New Delhi, March 23 20 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 RELIANCEJIOANDBhartiAirtel will now compete on yet another front. On Friday, Reliance Industries (RIL) announced a strategic merger of its digital music service JioMusic with music over-thetop platform Saavn which will see RIL acquiring a 75-80% stake in the merged entity.The company said that the combinedentityisvaluedatover$1 billion,withJioMusic’simplied valuation at $670 million. “The integrated business will be developed into a media platform of the future with global reach,cross-borderoriginalcontent, an independent artist marketplace,consolidateddata and one of the largest mobile advertisingmediums,”RILsaid in a statement. The organised music app markethasthreemainplayers: Bharti Airtel’s Wynk, Times Internet Gaana and Saavn. With Saavn coming into RIL’s fold the country’s largest two telecom operators will now directly compete in the music app market also. US trade deficit hits new high in 2017... said he had ordered tariffs on $50 billion of Chinese imports asrecompenseforallegedintellectual property abuses. Hours later, China announced planned tariffs on imports of US pork, recycled aluminium, steel pipes, fruit and wine, according to a commerce ministrystatement on Friday. Continued on Page 2 Related reports on Pages 2, 14, 16 AMIDATRADEwarwiththeUS, Chinawillhavetobraceforsome toughtalksonitsmassive—and rising—tradesurpluswithIndia when its commerce minister Zhong Shanvisits NewDelhi on Monday.At the same time,both thenationsareexpectedtofind some common ground in their united opposition to unilateral trade protectionism bythe US. In his meeting with Zhong under the aegis of India-China joint economic forum, commerce and industry minister Suresh Prabhu will impress upon China to take concrete measures to set right the massive trade imbalance,an official said. India will express its deep concernovernon-tariffbarriers (NTBs)andinadequateaccessto the Chinese market in sectors ranging from agriculture and marineproductstopharmaand IT, despite several rounds of talks in recent years to achieve trade balance,said the official. Continued on Page 2 BIG BOOST FOR IBC Tata Steel accepts LoI for Bhushan Proposal is now subject to necessary regulatory approval from NCLT, CCI FE BUREAU Mumbai, March 23 IN A FIRST big result of the government instituted insolvency resolution process, and in a major step forward for steel behemoth Tata Steel, the company has accepted the letter of intent (LoI) for Bhushan Steel under the Corporate InsolvencyResolution Process of the Insolvency and Bankruptcy Code 2016 (IBC), according to a stock exchange filing on Friday.The proposal is nowsubject to necessaryregulatory approval from the National Company Law Tribunal (NCLT) and the Competition Commission of India (CCI). After being declared the highest bidderbythe committee of creditors (CoC) of BhushanSteelearlierinMarch, this formal acceptance marks an historic moment for the company and the resolution process, which in many other cases has got mired in controversy. Tata Steel was already STEELING THE DEAL ■ Tata Steel accepts LoI for Bhushan Steel ■ Sweetens the deal by providing for payments to operational creditors ■ 12% equity stake offered to existing Bhushan Steel promoters ■ To bring in `1,200 cr as working capital ■ Final resolution to entail 25% haircut for lenders declared the highest bidderfor the beleaguered companyearlier in March. FE has learnt from senior bankersthatTataSteelhasfurther sweetened the offer to include payments to operational creditors.While the precise amount could not be immediately ascertained, the claims of these creditors admitted by NCLT amount to `831 crore, according to Bhushan Steel’s website. Continued on Page 2 TRADE WAR TREMORS Special Features Goa Form483 is not a serious event Cipla remains the preferred pick in a challenging environment, on a comfortable India and EM base and strong growth outlook for the United States market ■ Investor, P15 The behavioural ecology of machines Understanding algorithms’ behaviour is particularly urgent in today’s digital-advertising “ecosystem”, in which users of software are in their own Skinner boxes ■ Science & Tech, P15 QuickPicks Govt notice to Cambridge Analytica in data breach case THE GOVERNMENT on Friday issued a notice to Cambridge Analytica, the firm at the centre of Facebook users' data breach, seeking its response by March 31 on whether it was involved in misuse of data to profile Indians and influence their voting behaviour, reports PTI. The notice also sought the company's response on the entities that engaged Cambridge Analytica, the method used by it for possession of data and whether consent was taken from users. PAGE 3 Markets sink but negotiation window offers some hope FE BUREAU Mumbai, March 23 EQUITIES GOT PUMMELLED across the globe on Friday as fearsofatradewarheightened. Indian benchmark indices ended the session on Friday at five-month lowswith the Sensex shedding 1.24% (409 points down) to end at 32,596.54, while the Nifty slipped 1.15% (116.70 points) to 9,998.05 — its first close below 10,000 since October 11,2017. Weak cues from Asia (the Nikkei fell by 4.5%, Kospi 3.25% and Hang Seng 2.5%) led to selling as the session began (with the SGX Nifty already 1% down before the morning bell), but saw some recoverylaterin the afternoon as European cues were not as weak (Germany’s DAX was down 1.7%, France’s CAC 1.51% and UK’s FTSE by 0.61%),given some reasoning that the announcement of the imposition of tariffs by US President Donald Trump on $50 billion of imports from China on Thursday may not go through without negotiations BSE SENSEX Intra-day, Mar 23 Bank Nifty Intra-day, Mar 23 32,750 32,650.89 23,800 32,596.54 32,550 23,650 32,450 Previous close 33,006.27 32,350 Open 23,670.4 23,725 23,575 Previous close 24,141.50 23,500 Open Close Close Fall (%) Fall (%) 0.1 Kospi Shanghai Comp 3.4 Taiwan TAIEX 1.7 Hang Seng 2.5 Sensex 1.2 Nikkei 225 4.5 DAX* 1.5 Dow Jones Futures* Close: 23,935.00 Close: 3,152.76 Close: 30,309.29 Close: 20,617.86 Close: 2,416.76 Close: 10,823.33 Close: 32,596.54 Close: 11,922.82 *@IST18.34 HRS 3.2 Historic flight An Air India plane lands at the Ben Gurion International Airport near Tel Aviv on Thursday. Air India's maiden flight to Israel reduced travel time substantially after Saudi Arabia for the first time allowed a commercial flight to Israel to use its airspace Source: Bloomberg that maywater it down significantly.However,in retaliatory fire, China unveiled indications to levy tariffs on $3 billion of US imports, focusing specifically on certain commodities of importance to states that voted for Trump, according to agency reports. China also said it would pursue legal action against the US at the World Trade Organi- sation in response to the planned tariffs on steel and aluminium imports. “It is worrisome without any doubt and once it gains momentum it becomes an uncharted thing,” said Shankar Sharma, co-founder and chief global strategist of First Global. Continued on Page 2 CFO NEWSMAKER: ANSHULA KANT CBI books Jignesh Shah in 2003 matter, carries out searches THE CBI has registered a case against former Multi Commodity Exchange (MCX) MD Jignesh Shah, four former chairpersons of the Forward Market Commission and others for allegedly facilitating nationwide exchange status for MCX in 2003, officials said on Friday, reports PTI. Searches were carried out at the offices of Shah and others in nine locations in Mumbai, Gwalior and Shimla, the officials said. PAGE 11 CARICATURE: ROHNIT PHORE ● RAJYA SABHA ELECTIONS Cross-voting charges fly thick and fast EXPRESS NEWS SERVICE New Delhi, March 23 CLAIMS OF CROSS-VOTING marred elections to the Rajya Sabha in Uttar Pradesh, KarnatakaandJharkhandonFriday and the Jharkhand Opposition even approached the Election Commissionofaboutcross-votingfromtheirranks.InUP,atantalising numerical contest was onbetweentheBJPandSP-BSPCongress combine for one seat. Oftheothernineseats,BJPcandidates were set to take eight and SP one on the basis of secured numbers required to win on first preferencevotes. Continued on Page 2 Of music and margins SHOBHANA SUBRAMANIAN New Delhi, March 23 Telcos lose 15.5 m subscribers in Jan, second highest in a year TELECOM OPERATORS lost more than 15 million subscribers on a net basis during January 2018 as numbers of Reliance Communications (RCom) and small operators fell by a whopping 28.1 million during the month, reports fe Bureau in New Delhi. This is also the second highest loss incurred by the sector in terms of subscriber numbers since January 2017. According to the latest data by the Telecom Regulatory Authority of India, the industry’s net subscriber loss stood at 15.7 million. PAGE 6 23,785.65 32,650 AS A YOUNG girl growing up near the Himalayas, she never imagined she would climb so high. But Anshula Kant is as grounded as it gets.“Down to earth”ishowthechieffinancial officer(CFO)attheStateBankof India (SBI) describes herself. Her colleagues agree. Kant goes about herworkwith minimum fuss,accepting a compliment gracefully. The Roorkee girl could have got any job she wanted given her bachelor’s degree in economicsfromLadyShriRamcollege and a master’s from the Delhi School of Economics.But Kant’s happyshe chose towork withthecountry’sbiggestbank. The merger of the five associate banks of SBI with the parent,which created a `35lakh-crorebalance sheet,was a tough but satisfying effort even if took all her skills to stitch it together. Balancing the books of SBI can be back-breaking but Kant makes sure she doesn’t get boggeddownbywork;athriller before bed works well as does some Hindustani classical music. On the odd occasion that she’s able to get off workearlyenough, Kantcatchesafilm oraconcertthough she doesn’t get to listen to her favourite artiste Pandit Jasraj too much anymore. Unfortunately,althoughatrainedmusician herself, she isn’t able to devote any time at all to either playing the sitarorsinging. But she’s determined to do bothonceshe’sbackinVaranasi with her husband. And also shopforBenarasisilks,chiffons and cottons.Refusing to reveal how large her collection of sarees is because “my husband will kill me”, Kant says it is her best-kept secret. Right now though there’s little time to go shopping, even online.To fight thefatiguethatcomeswithfrequent travelling,Kant makes it to the gym at least four times a week. She also eats light — a simple rice and dal for lunch — secretly craving some of her mother’s delicious kali urad ki dal ki khichdi. Continued on Page 2
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