Mukesh Ambani loses Asia wealth crown to Jack Ma in $5.8 billion rout

News Network
March 10, 2020

Mar 10: Indian energy tycoon Mukesh Ambani is no longer Asia’s richest man, relinquishing the title to Jack Ma after oil prices collapsed along with global stocks.

The rout, exacerbated by mounting fears that the spread of the novel coronavirus will thrust the world into a recession, erased $5.8 billion from Ambani’s net worth on Monday and pushed him to No. 2 on the list of Asia’s richest people, according to the Bloomberg Billionaires Index. Ma, the Alibaba Group Holding Ltd. founder who relinquished the No. 1 ranking in mid-2018, is back on top with a $44.5 billion fortune, about $2.6 billion more than Ambani.

Oil plunged the most in 29 years on Monday as Saudi Arabia and Russia vowed to pump more in a struggle for market share. The slump comes just as the coronavirus is spurring the first decline in demand in more than a decade. That raises questions about whether Ambani’s flagship Reliance Industries Ltd. will be able to cut net debt to zero by early 2021, as he has pledged. The plan hinges on a proposal to sell a stake in the group’s oil and petrochemicals division to Saudi Arabian Oil Co., the world’s biggest crude producer.

While the coronavirus has curtailed some of tech giant Alibaba’s businesses, the damage has been mitigated by increased demand for its cloud computing services and mobile apps.

Reliance Industries, by comparison, has no such silver lining. The Indian conglomerate’s shares plunged 12% on Monday, the most since 2009, extending this year’s decline to 26%. Alibaba’s American depositary receipts have slipped 6.8% so far in 2020.

Ma reclaims crown after Reliance shares were pummeled in 2020.

Few of the world’s billionaires fared well in Monday’s collapse as the S&P 500 Index and Dow Jones Industrial Average each plunged more than 7.5%, the most since the 2008 financial crisis, threatening to end the longest bull market in history. But no one did worse than those whose fortunes are underpinned by oil. Wildcatter Harold Hamm’s fortune was cut almost in half to $2.4 billion and fellow oil magnate Jeff Hildebrand lost $3 billion, bumping both from Bloomberg’s 500-member wealth ranking.

In a pivot toward new businesses such as telecommunications, technology and retail, Ambani’s Reliance Industries has piled on billions of dollars of debt over the years.

It spent almost $50 billion -- most of it funded by borrowings -- to build Reliance Jio Infocomm Ltd., which became India’s No. 1 wireless carrier within about three years of its debut. As the mobile venture took off, Ambani also unveiled plans for an e-commerce empire to rival Amazon.com Inc. in India.

Addressing concerns over the liabilities, Ambani pledged in August to cut the group’s net debt to zero from about $21 billion as of last March. The Aramco deal is crucial to that plan for which Reliance Industries has valued its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the 20% stake that’s for sale.

Signs of a potential delay to that deal unnerved some investors, hammering the stock since it touched a record high on Dec. 19.

Reliance Industries expected the Aramco transaction to be completed by March, but people familiar with the matter said in February that talks were still ongoing to bridge differences between the two parties over the deal’s structure.

Adding to the uncertainty, Indian Prime Minister Narendra Modi’s administration has petitioned a court to halt the proposed stake sale, threatening a key source of funds needed to pare net debt.

But Ambani, 62, may soon bounce back from the setback, said Harish H.V., managing partner at ECube Investment Advisors in Bengaluru, India.

“The game isn’t over,” he said. “Ambani has successfully built a robust business model which would keep him in the game. Moreover, his telecom business will start yielding results in coming years.”

Comments

SmR
 - 
Tuesday, 10 Mar 2020

The curses of the bank depositors savings which vanished with collapsing economy and fraudlent seems to have gradully affecting riches of Ambani's.

 

AU
 - 
Tuesday, 10 Mar 2020

in Holy Quran Allah says; but they plan and Allah plans, and Allah is the best planners..(Surah Al Anfal 8:30)

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News Network
February 26,2020

Feb 26: In his first reaction to incidents of violence in Delhi which have left at least 20 people dead, Prime Minister Narendra Modi on Wednesday appealed for peace and brotherhood, and said he has held an extensive review of the prevailing situation in various parts of the national capital.

He also said it was important that calm and normalcy was restored at the earliest.

“Had an extensive review on the situation prevailing in various parts of Delhi. Police and other agencies are working on the ground to ensure peace and normalcy,” Modi tweeted.

Stressing that peace and harmony are “central to our ethos”, Modi said, “I appeal to my sisters and brothers of Delhi to maintain peace and brotherhood at all times.”

At least 20 people have been killed since Sunday in communal violence in Northeast Delhi, triggered after clashes between pro and anti-CAA protestors over the Citizenship (Amendment) Act.

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News Network
January 13,2020

Jan 13: India lost more than $1.33 billion to internet restrictions in 2019 as Prime Minister Narendra Modi’s government pushed ahead with his party’s Hindu nationalist agenda, raising tensions and sparking nationwide protests.

The worst shutdown has been in Kashmir, where after intermittent closures in the first half of the year, the internet has been cut off since Aug. 5 following the government’s decision to revoke the special autonomous status of the country’s only Muslim-majority state, a study said. The prologued closure was criticized by India’s highest court, which ruled Friday that the “limitless” internet shutdown enforced by the government for the last five months was illegal and asked that it be reviewed.

India imposed more internet restrictions than any other large democracy, according to the Cost of Internet Shutdowns 2019 report released by Top10VPN, a U.K.-based digital privacy and security research group. The South Asian nation recorded the third-highest losses after Iraq and Sudan, which lost $2.31 billion and $1.86 billion respectively to disruptions. Worldwide internet restrictions caused losses worth $8.05 billion, the report said.

The cost of internet blackouts was calculated using indicators from groups including the World Bank, International Telecommunication Union, and the Delhi-based Software Freedom Law Center. It includes social media shutdowns in its calculations.

India’s ministry of information and technology didn’t respond to an email seeking a response to the report’s findings.

‘Conservative Estimates’

Through 2019, India shut access to the internet for over 4,000 hours. The report added shutdowns in India were often narrowly targeted, down to the level of blocking city districts for a few hours to allow security forces to restore order. Many of these incidents were not included in the report.

“These are conservative estimates,” said Simon Migliano, head of research at U.K.-based Top10VPN. “Internet shutdowns are increasing and it shows a damaging trend.”

India’s other major internet disruptions coincided with two moves by the government that affect India’s Muslim minority. The first disruption took place in November in the states of Uttar Pradesh and Rajasthan after the Supreme Court handed a victory to Hindu groups over Muslim petitioners in a long-simmering dispute over a plot of land.

There were further disruptions in December when protests erupted against the introduction of a religion-based law that allows undocumented migrants of all faiths except Islam from neighbouring countries to seek Indian citizenship. The government enforced shutdowns across Uttar Pradesh and some Northeastern states in order to quell the protests, the report said.

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News Network
February 29,2020

Feb 29: The "Dadi of Shaheenbagh" on Friday said that Prime Minister Narendra Modi does not understand the pain of losing children, as speakers at an anti-CAA rally here called on protesters to maintain peace and not give in to any provocation.

Tushar Gandhi, the great-grandson of Mahatma Gandhi, said that the battle is not for a day or two, but the protesters will have to be prepared to continue it for years to come.

Asma Khatoon, who has earned fame as the "Dadi of Shaheenbagh" in Delhi, asked how can a person take care of the whole country when he cannot maintain his own family.

"He would have realised how it feels to lose a child if he had his own children," she told a gathering at the Park Circus Maidan, which is being termed as the Shaheenbagh of Kolkata with women holding a sit-in for the last 53 days to protest the Citizenship (Amendment) Act, proposed nationwide NRC, and the NPR.

The death toll Delhi's communal violence has gone up to 42.

She said it is not biryani that has attracted women to the protest at Shaheen bagh while holding that such vilification campaigns will have no effect on the agitation.

State BJP president Dilip Ghosh has claimed that "uneducated men and women" are protesting at Delhi's Shaheen Bagh and Kolkata's Park Circus as they get money and biryani purchased with foreign funds.

"Home Minister Amit Shah has called 20 protesters to meet him, but I want to tell him that we are one lakh and I want him to mention the place where he wants us to go for the meeting," she said.

Tushar Gandhi said, "People should stay united and not give in to any provocation," he said.

Gandhi said that the people of West Bengal are lucky to have Mamata Banerjee as their chief minister.

"They will try to break her also and it is necessary that you continue to give her support," he said.

Gandhi claimed that no one can harm a country where its mothers and sisters come out to save it.

He claimed that the CAA is not about Hindus or Muslims, but will really affect the poor people, who will be made to run around to get their papers instead of earning for their basic and daily needs.

"It's a dichotomous government that we have at the Centre. On the one hand, they want us to provide documents to prove our citizenship, while on the other they refuse to accept the papers that one produces before it for the purpose," he said.

He claimed that the government is forcing its people to resort to lies and declare that they are political refugees from countries like Bangladesh and Pakistan.

Gandhi claimed that time and again documents with the government like electoral rolls and land documents have been used to identify people of certain communities during riots.

"So it is dangerous to give too much information to the government," he said.

He called on the people to have faith in non-violence and asked them to maintain peace and harmony.

B R Ambedkar's great-grandson Rajratna Ambedkar claimed that it is the Adivasis who will also be affected by the CAA.

"I want to tell Modi and Shah that the country runs on the Constitution by Ambedkar and not M S Golwalkar (of RSS)," he said, adding that because of the rights conferred on people by the Constitution, those backward people who did not have the right to sit on a bullock cart are now flying jet planes.

He said that Modi and Shah committed an error by enacting the CAA as it has turned the people of the country into Indians only, instead of Hindus, Muslims, Christians or Sikhs.

"Every machinery of the country has been taken control of by the RSS. If one Modi or one Shah goes, they will bring in several more Modi or Shah," he said.

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