OPINION, P8 ECONOMY, P2 NIR KAISSAR Facebook helps explain why ESG investing matters BACK PAGE, P20 EDITORIAL MEETING WITH FM 'IMPORTANT DIGITAL POWER' A Covid 19 vaccine by August 15 would feel good, but more important to ensure it works and is safe Sitharaman asks CPSEs to meet capex targets without fail India won't compromise on data sovereignty: Prasad NEW DELHI, WEDNESDAY, JULY 8, 2020 FOLLOW US ON TWITTER & FACEBOOK. APP AVAILABLE ON APP STORE & PLAYSTORE WWW.FINANCIALEXPRESS.COM READ TO LEAD VOL. XLVI NO. 110, 20 PAGES, `6.00 (PATNA `6.00, RAIPUR `7.00) 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: 36674.52 ▲ 187.24 NIFTY: 10799.65 ▲ 36.00 NIKKEI 225: 22614.69 ▼ 99.75 HANG SENG: 25975.66 ▼ 363.50 `/$: 74.94 ▼ 0.25 `/€: 84.48 ▼ 0.18 BRENT: $42.96 ▼ $0.14 GOLD: `48235.00 ▲ `67.00 COVID INFECTIONS IN THE NEWS Two-thirds of cases added in last month ED files case against GVK group, MIAL THE ENFORCEMENT Directorate (ED) has filed a money-laundering case against the GVK group, the Mumbai International Airport and others to probe alleged irregularities to the tune of `705 crore in running the Mumbai airport, officials said on Tuesday, reports PTI. The agency has filed an enforcement case information report under the Prevention of Money Laundering Act after studying a CBI FIR filed against the same entities. Thanks to high and rising ‘positivity’, as testing increases, so do the number of fresh infections Face masks no more essential items: Centre SARTHAK RAY New Delhi, July 7 THE WORLD MAY have 11.6 million Covid-19 infected persons and 5.4 lakh deaths, butaccordingtorecentanalysisbyresearchersattheMass- FE BUREAU New investments on slippery slope Over the next one year, private equity and venture capital players will focus on managing existing portfolios and will be less aggressive on new investments PE and VC investments clocked a robust 22% CAGR since ﬁscal 2015 1st quarter FY21: Very low investments barring by Jio platforms $ billion 50 $ bn 20 22% 10 20 5 10 0 FY15 Investments Jio Platforms Reliance Jio’s tower arm 15 30 FY16 FY17 FY19 FY18 FY20 80 (%) Monthly investments in March-June, 0 60-70% lower than avg of the last 3 years -80 Karnataka Mumbai India India pips Brazil to second spot for daily cases, but just for now ISHAAN GERA New Delhi, July 7 ON MONDAY, INDIA crossed Brazil for the first time, taking the second spot in terms of new case additions. India added 22,252 cases on Tuesday taking its tally to 7,19,665 cases. In contrast, Brazil,which has been adding nearly 35,000 cases daily, added only 20,229 cases. On Monday, Brazil’s daily additions had slipped to 26,051, whereas India had added 24,248 cases.The only country to add more cases than India is the United States, which is adding 50,000 cases every day. This could, however, just be a one-time event for the time being. An analysis of data trends shows that Brazil’s daily additions dip every 4-5 days before picking up again. US to ban TikTok, Tough conditions others: Pompeo may trip Chinese Remarks come after US-China tensions spilled to areas like national security, IP protection and trade KANISHKA SINGH & SHUBHAM KALIA July 6 US SECRETARY OF state Mike Pompeo said on Monday that the US is “certainly looking at” banning Chinese social media apps,includingTikTok,suggesting it shared information with the Chinese government, a charge it denied. “I don’t want to get out in front of the President (Donald Trump),butit’ssomethingwe’re looking at,” Pompeo said in an interview with Fox News. US lawmakershaveraisednational security concerns overTikTok’s handling of user data, saying they were worried about Chinese laws requiring domestic companies “to support and cooperate with intelligence work controlled by the Chinese Communist Party.” Pompeo said Americans should be cautious in using the short-formvideo app owned by China-based ByteDance.“Only if you want your private information in the hands of the Chinese Communist Party,” Pompeo remarked when asked if he would recommend people to downloadTikTok.Inresponseto his comments, TikTok told Reuters it has never provided userdata to China. Continued on Page 2 Only if you want your private information in the hands of the Chinese Communist Party —MIKE POMPEO US SECRETARY OF STATE, WHEN ASKED IF HE WOULD RECOMMEND PEOPLE TO DOWNLOAD TIKTOK Continued on Page 2 IB hardens stance on remote access and data storage that Chinese vendors will find tough to fulfil KIRAN RATHEE New Delhi, July 7 Every telco has partnered with Chinese vendors for 5G trials: ■ Bharti Airtel & Vodafone Idea: Nokia, Ericsson, Huawei and ZTE ■ Reliance Jio: Ericsson, Nokia, Huawei, and Samsung ■ BSNL/MTNL: ZTE and C-DoT THERE MAY HAVE been some diplomaticbreakthroughinthe borderstand-offwithChinabut the same cannot be said about the impending 5G trials for whichalloperatorsarepartneringwithoneofthetwoChinese vendors — Huawei and ZTE. Although the trials take place with very limited spectrum and a few base stations and are aimed at fixing the glitches, the Intelligence Bureau (IB) is understood to have hardened its stance on two counts — remote access and data storage.The agencyis reportedly against data going outside the countryduring the trials and it also does not want remote access to be granted to the Chinese vendors. If the government doesn’t alter its stance, Chinese ven- ■ Currently no Chinese vendor presence in Jio's network ■ For Bharti: Chinese share at 30% ■ For Vodafone Idea Chinese share at 40% ■ For BSNL: Chinese share at 40% dors like Huawei and ZTE will notbe able to participate in the trials.All foreign telecom vendors have their hubs located abroad,from where they oversee the network and remedy the glitches from time to time. Continued on Page 2 MIT researchers predict 249 million cases by next March PE-VC R CAG Gujarat Telangana Continued on Page 2 FACE MASKS and hand sanitisers are no more essential products as their supply is sufficient in the country and, therefore, are now kept out of the purview of the Essential Commodities Act, 1955, Consumer Affairs Secretary Leena Nandan said on Tuesday, reports PTI. 40 74.1 69.9 43.0 75.5 57.2 70.1 84.7 40.7 61.8 Delhi Tamil Nadu INCREASE IN TESTING and a corresponding increase in positivity — number of new infections as a share of new tests — forIndiahasmeantthat62%of its 720,000 caseswere actually added in just the last one month.Amonth ago,on June 7, India had 247,000 cases and a positivity rate of 7.3%; today, the positivityis up to 9.2%. A similar trend can be seen inseveralotherstatesaswell.In the case of Maharashtra,which accounted for over a fourth of the increased infections in the country in the last month, the positivity is 21.2%; as a result, 57%ofMaharashtra’s212,000 infectionswere those that took place in the last one month. THE SUPREME Court on Tuesday granted bail to embattled Unitech's promoter Sanjay Chandra for a month, as both his parents are hospitalised for Covid-19 infection, reports fe Bureau in New Delhi. He informed the court that both his parents are Covid-19 positive and hospitalised and he needs to be with them. Cases added in the last month as a share of total infections (%) Andhra Pradesh Maharashtra ISHAAN GERA New Delhi, July 7 SC grants bail to Unitech promoter Headed south 5G TRIALS DATA CONCERNS Oct 2019 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 FY19 FY20 FY21 Variation in investments w.r.t to average monthly investments for last 12 months June 2020 Note: Excluding Jio Platforms Note: India-based AIFs and domestic funds, International funds, pension and sovereign funds investments are considered for total investments Source: Crisil Research achusetts Institute of Technology(MIT),thetruenumber of infections could be 12 times higher and the number of deaths could be 50% higher. The researchers project 249millioncasesand1.8million deaths by spring 2021 if there are no effective cures. Theyarguethatthebenefitof testing as a measure to contain the pandemic gets furtherandfurtherdilutedasthe virus spreads in a population. PROMISE OF RAIN OVER CAPITAL Continued on Page 2 Monsoon clouds hover over Humayun’s Tomb in New Delhi on Tuesday. Delhi recorded a fresh bout of rains on Tuesday and more showers are likely in the next three to four days SERVICES EXPORTS As imports grow faster, surplus falls BANIKINKAR PATTANAYAK New Delhi, July 7 INDIA’S FAMED SERVICESsectorseems to be losing momentum. Imports of services have risen at a faster pace than exportsinrecentyears,leading to a shrinking of the share of surplus in the overall services trade. From 29.2% in FY16, share of the services trade surplusinoverallservicestradefell to 24% in FY20. Of course,in absolute term, the surplus has risen from $70 billion to $83 billion during this period. If the trend continues, shrinking services trade surplus will gradually erode the country’soveralltradebalance, given that growth in good exports has remained stunted inrecentyears,thankstoexternal headwinds and internal structural bottlenecks. This addstothewoesofpolicy-makers already concerned about the impact of the pandemic on the country’s trade. Merchandise trade deficit haswidenedfrom$119billion, or 18.5% of the overall goods trade, in FY16 to $161 billion (20.4% of such trade) in FY20. Continued on Page 2 LIMITED SERVICE Exports ($ billion) Imports Surplus as % of services trade (RHS) 250 200 Govt to develop lighthouses as major tourist attractions THE SHIPPING ministry has chalked out a plan to develop around half of 194 existing lighthouses, located across the country, into tourist destinations with an estimated investment of `1,500 crore, reports fe Bureau in New Delhi. According to an official statement, shipping minister Mansukh Mandaviya held a meeting on Tuesday with the senior officials of the organisations associated with the shipping ministry, who gave a detailed action plan to develop lighthouses as tourism spots. 214.6 131.6 0 24 208 126.1 50 24.5 195.1 117.5 THE UNEMPLOYMENT RATE in the country more than halved to 11% in June from 23.5% in May, reports fe Bureau in New Delhi. The employment rate also improved handsomely from 29.2% in May to 35.9% in June, implying an addition of 70 million jobs, the Centre for Monitoring Indian Economy (CMIE) said. CMIE said the declining trend in the unemployment rate seen in June seems to be flattening out. The rate began to fall in the week ended May 31 when it fell to 20.2%, after hovering around 24% in the three preceding weeks. The recovery in labour participation rate is slowing down also. PAGE 2 100 24.8 164.2 95.9 Unemployment rate halves in June from May level: CMIE 150 26.3 154.3 84.6 QuickPicks 40 29.2 FY16 FY17 FY18 FY19 FY20 32 24 16 8 0 Source: Ministry of Commerce dashboard PTI MGNREGA ● AIR POCKET In just 100 days, created half the jobs in all of FY20 Person days till July 7 this fiscal (crore) SURYA SARATHI RAY New Delhi, July 7 TILL JULY 7 this fiscal, i.e., in the first 98-odd days of the year,aroundhalfadozenstates in the country have created person days 50% or more of such dailyjobs produced in the whole of FY20 under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MG-NREGS),according to official dashboard. Moreover, Telangana is withinstrikingdistanceofsurpassing last year’s level of person days (96%), while Andhra Pradesh (79%) and Gujarat (71%) have also seen an excep- Person days till July 7 against these in FY20 (%) Telangana 10.36 97 Andhra Pradesh Gujarat 15.85 2.52 79 71 Uttar Pradesh Bihar 14.46 7.25 59 51 9.47 5.38 49 48 Madhya Pradesh Odisha groups say threaten freedoms enjoyed for decades. Facebook, whichalsoownsWhatsAppand Instagram, said in a statement on Monday it was pausing reviewsofuserdatarequestsfor all of its services “pending furtherassessmentoftheNational SecurityLaw”.GoogleandTwitter said they had suspended their reviews of data requests from Hong Kong authorities immediately after the lawwent into effect lastweek. Continued on Page 2 Continued on Page 2 Person days till July 7 this fiscal (pan-India) – Source: Ministry of Rural Development the immediate aftermath of the Covid-19 lockdown, have generated123.36croreperson days till July 7 this fiscal. Continued on Page 2 HONG KONG Tech giants suspend processing data requests; TikTok to exit ECHO WANG & PEI LI New York/Hong Kong, July 7 CHINESE-OWNED SOCIAL MEDIA platform TikTok announcedonTuesdayitwould pull out of Hong Kong within days,asglobaltechgiantsstruggle to figure out how to operate in the city under sweeping new security rules imposed by Beijing. Major US internet companies including Facebook, Microsoft, Google,Twitter and Zoom have all announced they Facebook, Google , others suspend processing govt requests for user data in Hong Kong This follows China’s establishment of a sweeping new national security law for the semiautonomous city have suspended the processing of requests for user data from theHongKongauthoritieswhile they study the new law.The US TikTok, the short-form video app owned by China-based ByteDance, said it would pull out of the Hong Kong market within days Google,Twitter said they suspended reviews of data requests from Hong Kong authorities immediately after the law went into effect last week companies’ social media platforms are generally banned in China,where access is blocked byBeijing’s“greatfirewall”.Most Twitter cited 'grave concerns' about the law’s implications. have operated freely in Hong Kong,butwillnowhavetodetermine how to comply with new rules for the city,which rights ADITI SHAH New Delhi, July 6 AIRLINE VISTARA IS in talks with planemakers and leasing companies to delay taking delivery of some aircraft, the carrier’s chief commercial officer said on Monday, as Covid-19 hits demand for air travel. Vistara,owned byTata Sons and SingaporeAirlines,placed an orderfor13A320-neo family aircraft from Airbus SE in 2018 and said it would take another37Airbus planes from leasing companies — all due fordeliverybetween 2019 and 2023. It also has six Boeing 7879 Dreamlinerwidebodyplanes on order, primarily for international flights, due to be delivered in 2020 and 2021. Delivery of some planes have already been pushed back due to logistics issues and production delays at the planemakers, as countries went into lockdown due to the coronavirus pandemic, Vinod Kannan, chief commercial officer at Vistara told reporters.“We are looking to see how we can push back some of the deliveries not just because of the delays in production but also from a commercial perspective,”said Kannan. 123.36 crore or 46.5% of last year’s total tionally brisk pace this year in providing MG-NREGS jobs to the needy. At the all-India level, the popularrural jobs scheme that have seen a lot of traction in Vistara tries to delay deliveries of aircraft
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