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
March 11,2020

New Delhi, Mar 11: Jyotiraditya Scindia, the Madhya Pradesh politician whose surprise exit from the Congress has brought the Kamal Nath government to the brink of collapse, joined the Bharatiya Janata Party on Wednesday. Scindia joined the BJP at an event in national capital Delhi in the presence of party chief JP Nadda.

Scindia, who was warmly welcomed by Nadda, described 10 March, the day that he exited from the Congress as one of the two life-changing days of his life. The first, he said, was 30 September 2001 when he lost his father. Scindia underscored that the Congress was not the party that it had been and had been living in denial.

Scindia had ended his 18-year-old association with the Congress on Tuesday after meetings with Home Minister Amit Shah and Prime Minister Narendra Modi.

Scindia’s exit from the Congress was followed by resignation letters by about 22 MLAs who had been sequestered in Karnataka. The resignation letters were, however, sent to the Governor and not the assembly speaker, and threatens to upend the Kamal Nath government which has a wafer-thin majority.

If the resignations are accepted, the effective strength of the MP assembly will come down to 206, leaving the Bharatiya Janata Party (BJP) with a slender majority beyond the halfway mark of 103 with its 107 MLAs. For now, the Congress is trying to persuade the MLAs to not pull down the state government.

In his resignation letter to Congress chief Sonia Gandhi that Scindia put out on Twitter soon after, he alluded to his discomfort in the party over the last year or so. “...as you well know, this is a path that has been drawing itself out over the last year,” he had written in his letter.

It was seen as a reference to the Congress settling for Kamal Nath as the chief minister after the 2018 state elections though it was Scindia who had led from the front to oust the BJP from Madhya Pradesh. Scindia’s supporters had hoped that the Congress would tell Kamal Nath to give up his second charge - as the party chief in the state - but this also didn’t happen.

The first hint that something was amiss came in November last year when Scindia removed a reference to the Congress in his Twitter bio and instead wrote “public servant and cricket enthusiast”. He had then explained the change to an effort to make the Twitter bio shorter.

Jyotyiraditya Scindia’s aunt Yashodhara Raje Scindia appeared to declare soon after that the 49-year-old would join the BJP when she welcomed his resignation, calling it “ghar wapsi” or homecoming. “Jyotiraditya was being neglected in Congress,” Yashodhara Raje Scindia said.

Scindia’s grandmother, Vijaya Raje Scindia, was one of the founders of the Jana Sangh, the precursor to the BJP. His aunt Vasundhara Raje is a former Union minister and ex-chief minister of Rajasthan and another aunt Yashodhara Raje is a former minister in the Madhya Pradesh cabinet.

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News Network
May 7,2020

May 7: Two people, including a child, were killed and nearly 70 hospitalised after a gas leak at a chemical plant in Andhra Pradesh's Visakhapatnam in the wee hours of Thursday, officials said.

People in Gopalapatnam area, where the chemical plant, LG Polymers, is located, complained of irritation in eyes, breathlessness, nausea and rashes on their bodies.

District Collector V Vinay Chand said two people were killed due to the gas leak, while some are in a critical condition.

Close to 70 people have been admitted to the King George Hospital after for treatment, he said.

TV channels showed people lying unconscious on roads.

Teams of the National Disaster Response Force (NDRF) have rushed to the spot.

Reports said the gas leak has been contained.

Chief Minister Y S Jagan Mohan Reddy enquired about the incident and directed the Visakhapatnam district collector to ensure proper medical care for the affected people.

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News Network
April 20,2020

New Delhi, Apr 20: The Centre on Monday said that India's COVID-19 doubling rate has improved to 7.5 days from 3.4 days before the lockdown was enforced to check the spread of the coronavirus.

"India's doubling rate before the lockdown was 3.4 days. It has now improved to 7.5 days. As per data on April 19, in 18 States, the rate is better than the national average," said Lav Agarwal, Joint Secretary, Union Health and Family Welfare Ministry, at a daily briefing here.

"The number of districts where no case has been reported in the last 14 days has increased to 59 in 23 States and UTs. Goa is now COVID-19 free," he said.

India's total number of coronavirus positive cases has risen to 17,656 including 14,255 active cases, 2,842 cured/discharged/migrated and 559 deaths, according to the Ministry of Health and Family Welfare.

"Mahe in Puducherry, Kodagu in Karnataka and Pauri Garhwal in Uttarakhand have not reported any COVID-19 case in last 28 days," said Agarwal.

Let us take a look at the top developments of the day regarding the COVID-19 situation in the country:

1. There are 23 active COVID-19 cases in Himachal Pradesh. 11 patients have recovered, four migrated out of the State and one person succumbed to the disease. A total of 2,902 people have been tested for COVID-19 so far, said Himachal Pradesh Health Department.

2. The number of COVID-19 cases has risen to 408 in Karnataka including 16 deaths and 112 discharges, according to the state Health Department. 18 new cases have been reported in the last 24 hours.

3. "14 new COVID-19 cases reported, all from Kashmir. The total number of cases now stands at 368, Jammu-55 and Kashmir-313," said Rohit Kansal, Principal Secretary, Planning, Union Territory of Jammu and Kashmir administration.

4. According to Punya Salila Srivastava, Joint Secretary, Ministry of Home Affairs, the Ministry wrote to Kerala government yesterday, expressing concerns over modified guidelines regarding lockdown. "Kerala has allowed some activities that violate the Ministry's instructions issued under the Disaster Management Act," she said.

5. Five more police personnel from Chandni Mahal police station have tested positive for COVID-19. Till now eight personnel from the police station have tested positive for the virus, according to the Delhi Police.

6. Total 57 new COVID19 cases and two deaths have been reported today. Cumulative positive cases now stand at 1,535, and toll at 25, said Rajasthan's Health Department.

7. Indian Council of Medical Research (ICMR) has said that RTPCR kits are US FDA approved and have good standards and these should be stored under 20-degree temperature for better result.

8. "A total of 283 more COVID-19 cases have been reported in Maharashtra, taking cumulative positive cases in the State to 4,483, as of 11 am today. Of the 283 new cases, Mumbai has recorded 187," said Rajesh Tope, Maharashtra Health Minister.

9. One new COVID-19 positive case was reported today in Bokaro, taking the total number of cases in the State to 42, said Nitin Madan Kulkarni, Jharkhand's Health Secretary.
10. According to Punjab's Health Department, only one person has been tested positive for COVID-19 in the State today. The person is a contact of the COVID-19 patient.

11. "There is only one red zone district in Chhattisgarh. For the last 72 hours, no COVID-19 positive patient has been found even in that red zone district. I am hoping that whole of Chhattisgarh will be green zone soon," said Chief Minister Bhupesh Baghel.

12. Six new COVID-19 cases were reported in Kerala, all from Kannur, of which 5 have foreign travel history. Total cases in the State at 408, including 114 active cases, said Kerala Chief Minister Pinarayi Vijayan.

Meanwhile, the Centre has constituted six Inter-Ministerial Central Teams (IMCTs), two each for West Bengal and Maharashtra and one each for Madhya Pradesh and Rajasthan to make an on-spot assessment of the situation and issue necessary directions to the state authorities for their redressal and submit a report to the Central government in the larger interest of the general public.

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