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General

On Slack: 1990s Back to Markets, Biggest-ever Layoffs, Challenge Election Results, E-commerce Losses, India’s GDP Revised, Moneymaking Machine, Sterilise Liquidity and more….

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The Slack Discussions

Slack Logo2The Slack group at Capital Mind Premium has been extremely active and if you haven’t been there (Premium subscribers only), pop us a note or login here using your premium credentials.

A brief summary of some of the interesting things discussed there in the last few days:

#general: Inside a Moneymaking Machine Like No Other

The Medallion Fund, an employees-only offering for the quants at Renaissance Technologies, is the blackest box in all of finance. Bloomberg

#macronomics: These Charts Show That Trump Is Bringing the 1990s Back to Markets

Bloomberg

#general: Indian e-commerce industry’s losses may swell on Amazon’s $ 1 billion loss this year

The US retailer is spending up to $80 million a month to acquire customers and grow its market share, nearly a four-fold increase compared to last year. Business Standard

#macronomics: Activists Urge Clinton Campaign to Challenge Election Results in 3 Swing States

The group, which includes voting-rights attorney John Bonifaz and J. Alex Halderman, the director of the University of Michigan Center for Computer Security and Society, believes they’ve found persuasive evidence that results in Wisconsin, Michigan, and Pennsylvania may have been manipulated or hacked. MSN

#stocks: Reliance Jio fails to erode subscriber base of Airtel, Idea, Vodafone : Citi Research

Analysts continue to hold Bharti Airtel as the best-positioned teleco, despite attractive free-service offer from new entrant Reliance Jio. Livemint

#stocks: In one of India’s biggest-ever layoffs, L&T sheds 14,000 employees from its workforce

Larsen & Toubro, India’s biggest engineering firm, has shed 14,000 employees, or 11.2% of its total workforce, in one of the biggest corporate retrenchment exercises in recent times. The $16-billion diversified conglomerate said on Tuesday the step was an attempt to “right size” its strength in the face of business slowdown. Digitisation of operations also caused redundancies that led to downsizing. Economic Times

#general: Demonetisation shaves off $9 billion wealth of Tatas, Birlas & Mahindras; Ambanis relatively safer

A sharp 7% drop in the benchmark Sensex ever since Prime Minister Narendra Modi launched his demonetisation drive on November 8 made desi billionaires poorer by over $1 billion, with Tatas, Birlas and Mahindras taking the biggest hit in value terms. Economic Times
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#stocks: Sun Pharma acquires Russian company for $60 million

Sun Pharma gained ownership of 85% of Biosintez’s equity stake for $26 mn; it also owned a company debt of $36 mn. Business Standard

#macronomics: Demonetisation: Goldman Sachs revises India GDP growth target to 6.8%

Goldman Sachs revises current fiscal’s GDP growth—earlier projected to be 7.6%—to 6.8% as liquidity shortage is likely to hamper domestic activity. Livemint

#macronomics: RBI May Use Short Term Bills To Sterilise Liquidity

The amount of government securities available with the Reserve Bank of India to offer banks in exchange of the spurt in deposits is nearing a critical limit, which may force the central bank to look at alternative means to sterilise liquidity, says India Ratings and Research. Bloomberg Quint

#general: RBI asks Paytm to revise final application for payments bank; central bank not comfortable with Paytm’s capital structure

NewsD

#general: Ola, Uber cabs must have city, state permits to ply on Bengaluru roads: Karnataka govt

The Karnataka government has directed taxi operators and drivers plying with Uber and Ola in the state to acquire either a state or city taxi permit after a High Court verdict backed its decision to regulate cab aggregators. Business Standard

#general: Cess plan could mean 10 different GST rates

The Hindu
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#general: Demonetization triggers Piramal Enterprise’s first ConCall in years!

Whenever there is wild spread ambiguity, i remember Pabrai’s distinction between risk and uncertainty loud and clear. In this specific case, the loan book concerns were about mortgage worthiness (risk) and cash flow/interest payments (uncertainty ). Piramal seems to have put off taking calls from investors all these years as the entire group structure itself was fluid and evolving. Big Investor Blog

#stocks: Rs 1 lakh crore shaved off Tata group cos’ m-cap since Mistry’s ouster

Tata group companies have seen a combined market capitalisation erosion of 15 per cent, or nearly Rs 1.16 lakh crore, in the past one month. Retail investors in the group companies have become poorer by about Rs 11,000 crore from the day the sacking of group chairman Cyrus Mistry was announced. Business Standard

#bonds: Modi’s demonetisation move risks bond shortage for RBI

Banks had a record Rs4.3 trillion parked with the RBI against bonds as of 22 November, fast-approaching all of the Rs7 trillion worth of notes the RBI has on its books to offer. Livemint
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#general: Sebi relaxes Angel Funds investment rules for start-ups

To further develop the alternative investment industry and the start-up ecosystem in India, securities market regulator Sebi on Wednesday enhanced the number of ‘Angel Funds’ in one scheme from 49 to 200. Money Life

#stocks: Sun Pharma’s Mohali unit violated manufacturing norms, finds US FDA

US FDA found breaches of manufacturing standards at Sun Pharma’s Mohali plant during the 7-16 November visit. Livemint

#general: Q&A With Jack Bogle: ‘We’re in the Middle of a Revolution’

Bloomberg

#general: Not just Tesco, Auchan, Walmart, even Biyani & Reliance keen on food FDI: Harsimrat Kaur Badal

The first in the government to take up the Maggi controversy while going against the regulator, Food Processing Minister Harsimrat Kaur Badal has been in the news lately for trying to get in foreign investment in food retail. Badal spoke to Nivedita Mookerji on several issues ranging from FDI to demonetisation. Business Standard

#macronomics: 10 stocks that had double digit gains on Trump’s win that are terrifying

Over 250 stocks on the NYSE and NASDAQ had gains greater than 10% on November 9th, the first day the market was open after Trump won the election. 10% is a huge gain for a stock, so I wanted to see why Wall Street would be so excited about these companies under President Trump.  BullShitist

#general: Why the Ghosts of 2013 Won’t Haunt the Indian Rupee

Bloomberg

#general: Mobikwik takes on Paytm, offers virtual card for payments

Mobikwik claims that it will be a safe way to make payments as users would not be required to share their bank or card details with the merchants and new cards will be generated within their e-wallet, each time for transactions. Money Control

#general: Post demonetization Indian realty valuation of Rs 8 Lakh crore to be wiped off: PropEquity

In the aftermath of demonetization impact on Indian real estate sector, market value of residential property of Rs 802,874 crore is expected to be wiped off in the next 6-12 months. Realty Fact

#general: Flipkart may seek investment banks help to raise funds

Competition from Amazon India has forced Flipkart to turn to investment banks, including Goldman Sachs, to find new investors. Livemint

#general: New disclosure scheme could see 50% tax and 4-year limit on cash use for unaccounted deposits

A disclosure scheme may finally be in place for those depositing unaccounted cash in banks under demonetisation. They will have to pay 50% tax and also forego the use of their money for four years. Economic Times