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Gold hits record high of Rs 38,666 per 10 gram

Gold prices also got a boost due to the depreciation in the rupee, making imports more expensive. The rupee closed at Rs 71.39 to a US dollar, weaker by 60 paise from its previous close of Rs 70.79.

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Mumbai, Aug 13 (IANS) Demand for safe haven assets amid uncertain global business environment took the gold price to fresh highs on Tuesday.

The precious metal hit a life-time high of Rs 38,666 per 10 gram after it had surpassed the Rs 38,000 mark for the first time last week.

At the Multi-Commodity Exchange (MCX), the October contract of gold hit a life-time high of Rs 38,666 per 10 gram.

Indian equity indices registered their worst fall on Tuesday in over a month following the decline in Asian peers as turmoil in Hong Kong and Argentina spooked investors.

Gold prices also got a boost due to the depreciation in the rupee, making imports more expensive. The rupee closed at Rs 71.39 to a US dollar, weaker by 60 paise from its previous close of Rs 70.79.

The escalation in the US-China trade tension and US moving to label China a currency manipulator after it allowed the yuan to weaken past the key 7-per-dollar level for the first time in more than a decade, increased fear among investors.

Prices have seen a sharp surge after the US Federal Reserve earlier indicated that its 25 basis point rate cut is a “mid-year-adjustment” and not the beginning of a rate cut cycle.

Fear of a global recession also played its role in the surging gold prices.

Warning signals are also coming via other reliable indicators of recession: the bond yield curve. The yield curve has typically inverted before recessions and it is now nearly similar to what was seen ahead of the 2008 financial crises.

Morgan Stanley believes if the trade war further soars via US further raising tariffs on all goods imported from China to 25 per cent, “we would see the global economy entering recession in three quarters”.

The Reserve Bank of India had also lowered India’s GDP growth projection. RBI Governor Shaktikanta Das said it was warranted by various high frequency indicators pointing to weakening of both domestic and external demand conditions.

Business

Cartelisation? Airtel, Vodafone issue similar tariff hike statements

Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Q2 following provisioning for the AGR pending dues. Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

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New Delhi, Nov 18 : The ongoing telecom crisis is set to hit the customers hard with two of the country’s largest telcos — Bharti Airtel and Vodafone — deciding to hike tariffs from December 1 after they posted historic losses on account of provisioning for the AGR pending dues.

In what smacks of cartelisation shaping up in the sector, Bharti Airtel and Vodafone Idea on Monday came out with strikingly similar statements to announce the tariff hike decision. Both companies also announced the tariff hike within a few minutes of each other and both did not reveal the quantum of hike.

“The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India,” Bharti Airtel said in a statement.

“Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” it added.

Vodafone had also noted that the acute financial stress in the telecom sector has been acknowledged by all stakeholders and a high-level committee of secretaries (CoS) headed by the Cabinet Secretary is looking into providing appropriate relief. It had said it would “suitably increase the prices of its tariffs” effective from December 1.

The quantum of losses incurred by the two telcos have made their operations unsustainable. In fact, Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

In such a scenario, tariff hike has not only become inevitable but a must survival strategy. The two of the hardest hit telcos coming together to announce similar measures seems to be a building up of a strategy where the players would like to explore synergies that could reduce their burden. However, both companies have so far not indicated such a possibility.

Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Q2 following provisioning for the AGR pending dues. Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

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After Vodafone Idea, Airtel to hike tariff

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New Delhi, Nov 18 (IANS) The ongoing telecom crisis is set to hit the customers hard with two of the country’s largest telcos — Bharti Airtel and Vodafone — deciding to hike tariffs from December 1 after they posted historic losses on account of provisioning for the AGR pending dues.

Both the players, however, did not announce the quantum of hike that is expected to be worked out between now and December 1.

“The telecom sector is highly capital intensive with fast changing technology cycles that require continuing investments. It is, therefore, extremely important that the industry remains viable to support the vision of Digital India,” Bharti Airtel said in a statement.

“Accordingly, Airtel will appropriately increase price offerings in the month beginning December,” it added.

Vodafone had also noted that the acute financial stress in the telecom sector has been acknowledged by all stakeholders and a high-level committee of secretaries (CoS) headed by the Cabinet Secretary is looking into providing appropriate relief.

Vodafone Idea Ltd had said that it would “suitably increase the prices of its tariffs” effective from December 1.

Airtel and Vodafone Idea had posted a combined loss of Rs 74,000 crore in Q2 by provisioning for the AGR pending dues. Vodafone has hinted at not being able to remain as a going concern if relief does not come for the sector.

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Musk plans $4.4 billion Tesla plant in Berlin

“Everyone knows that German engineering is outstanding and that’s part of the reason we’re locating our gigafactory Europe in Germany,”

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Berlin, Nov 18 : After Shanghai in China, Elon Musk has chosen Berlin as Tesla’s next gigafactory outside the US where the company is planning to invest 4 billion euros ($4.4 billion) and produce 150,000 cars a year.

The Berlin unit will manufacture SUV Model Y, which could go into production by 2021. The unit could initially employ 3,000 people. The headcount could rise to 7,000, Express.co.uk reported on Sunday.

“Everyone knows that German engineering is outstanding and that’s part of the reason we’re locating our gigafactory Europe in Germany,” Musk said last week.

Recently, Tesla unveiled its first Model 3 made in Shanghai. Tesla Shanghai gigafactory is first wholly-owned foreign auto factory in China.

Tesla is expected to focus on Model 3 production at Shanghai factory, where it plans to produce as many as 3,000 vehicles per week by next year.

Last month, the automaker confirmed production of complete vehicles at Gigafactory Shanghai as part of trial production.

“We are producing full vehicles on a trial basis, from body, to paint and to general assembly, at Gigafactory Shanghai. We have cleared initial milestones toward our manufacturing licence and are working towards finalising the licence and meeting other governmental requirements before we begin ramping production and delivery of vehicles from Shanghai,” the company said.

Additionally, Musk recently announced that he would unveil Tesla electric pickup truck dubbed as ‘Cybertruck’ on November 21 at an event in Los Angeles.

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