Business News of the Week – Repo Rate Increase – RBI | Adani – 5th wealthiest | Amazon-Glowroad | Elon Musk buys Twitter | L&T-Mindtree merger
Check out below to read the Top 5 Prime Business News of the Week in the NF World Latest News section. In this section, you can read the daily news and updates on Economy, Stocks, Industry and Cryptocurrency related Business News in the week.
RBI: Increasing the repo rate to reduce rising inflation
The Reserve Bank of India (RBI) raised the Repo rate, the primary policy rate, by 40 basis points to 4.40 per cent on May 4 and the cash reserve requirement (CRR) by 50 basis points to 4.50 per cent, to reduce rising inflation and mitigate the impact of geopolitical concerns.
By raising the Repo rate and CRR, the RBI hopes to sustain inflation – which is currently close to 7% – at the right level while also controlling and monitoring money flow into the banking sector.
The increase in the Repo rate – the RBI’s primary policy rate or the rate at which it loans to banks – means that the cost of financing for banks will rise.
This will lead banks and non-bank financial companies (NBFCs) to hike lending and deposit rates in the coming days.
According to analysts, the Repo rate rise may have an impact on supply and demand.
Gautam Adani is now the fifth wealthiest man in the world
According to Forbes data, billionaire industrialist Gautam Adani, who heads the Adani Group, has become the world’s fifth-richest person. He has surpassed veteran Wall Street investor Warren Buffet to reach this position.
According to the Forbes wealthy list, Adani has a total net worth of $123.7 billion, nearly $2 billion more than Buffett’s $121.7 billion.
Adani joined the $100 billion club on April 4 and is now one of the world’s top five wealthiest people.
Elon Musk, CEO of SpaceX and Tesla, presently leads the Forbes list with a net worth of $269.7 billion. According to the statistics, he is followed by Amazon founder Jeff Bezos ($170.2 billion). Then, LVMH owner Bernard Arnault and family ($166.8 billion). And, in the fourth position, Microsoft founder Bill Gates ($130.2 billion).
Elon Musk has acquired Twitter for $44 billion in a single shot
On May 3, Elon Musk, the CEO of SpaceX, invested around $44 billion in Twitter to acquire a 100% stake. With shares valued at $54.20 per share.
Musk has made several remarks about what he plans to do with the social network after the acquisition.
Jack Dorsey, the former CEO of Twitter, was quick to reply. He complimented Musk on assuming control of the social platform.
Dorsey stated that he supported Musk’s deal and that ‘taking it back from Wall Street’ was the right first step.
Twitter CEO Parag Agarwal believes that the social media platform’s future is uncertain after Musk’s deal to take it private.
After acquiring Twitter, Elon Musk has lined up a new Chief Executive for the social media company. Thus, placing a question mark over current CEO Parag Agrawal’s future at the company, reported Reuters.
Amazon buys an Indian Social E-Commerce company, Glowroad
Amazon India has bought the women-focused social commerce firm Glowroad. Aiming to get a start in this emerging area where new competitors have arisen in recent years.
Glowroad, sponsored by venture capital firms Accel and Vertex Ventures, have valued the firm at roughly $75 million.
According to some sources, Amazon paid all cash for the business. This is Amazon’s first inorganic investment in the so-called social commerce industry, where retailers sell their items via networks such as Whatsapp and Facebook.
Following the acquisition, Glowroad’s team of around 170 people will join Amazon. The entity will continue to operate as an autonomous unit for the time being.
Glowroad targets tier II and tier III markets through resellers who are either housewives, temporary employees, or students.
Larsen & Toubro Ltd: L&T Infotech and Mindtree merges
Larsen & Toubro Ltd. announced a merger between two of its publicly traded software subsidiaries, L&T Infotech Ltd. and Mindtree Ltd.
The combination might help unlock potential size and compete for large-scale deals with other IT behemoths.
In a sluggish Mumbai session on May 6, L&T Infotech shares slid 3.69 per cent, while Mindtree shares fell 3.79 per cent. After the transaction, L&T will control 68.73 per cent of L&T Infotech.
L&T Infotech’s Managing Director and Chief Executive Officer Sanjay Jalona and Mindtree CEO Debashis Chatterjee would lead the merged firm.
When the initiative goes into effect, all Mindtree owners will be granted 73 L&T Infotech shares for every 100 Mindtree shares.