Japan has 17th straight Current-Account Surplus in November

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, India & International - Corporate updates | 0

A cargo ship is seen behind Japan's national flag at an industrial port in Tokyo March 8, 2012.Japan posted a current account surplus for the 17th consecutive month in November, providing support for Prime Minister Shinzo Abe’s efforts to boost the world’s third-largest economy.

The excess in the widest measure of the nation’s trade was 1.14 trillion yen ($9.7 billion) in November, up from 440.2 yen billion a year earlier, the Finance Ministry said Tuesday in Tokyo. The median estimate of 23 economists surveyed by Bloomberg was for a surplus of 895 billion yen.

The surplus was supported by a rise in income from investments abroad by Japanese companies as well as a gain in services, which came with an influx of tourists after the yen weakened. The boost helps an economy that has been hurt by a slowdown in exports including to China, Japan’s biggest trading partner.

“The wider current account surplus bodes well for Japan’s economy,” said Junko Nishioka, chief economist for Japan at Sumitomo Mitsui Banking Corp. in Tokyo. “Going forward, Japan will likely hold onto the surplus trend.”

Declining oil prices and recent gains in the yen, which may push down import prices and improve the trade balance, is expected to help Japan maintain the current-account surplus in coming months, Nishioka said.

The primary income surplus was 1.54 trillion yen in November, the largest on record for November, according to the report. The services balance had a surplus of 61.5 billion yen, helped by charges for the use of intellectual property rights and travel.

Source: http://www.bloomberg.com/news/articles/2016-01-12/japan-posts-17th-straight-current-account-surplus-in-november

Uber valuation put at $62.5 bn after new investment

by | posted in: Corporate Updates, Cross Border Transactions, M&As, Joint Ventures, Economy, Business Updates, Corporate Affairs, India & International - Corporate updates | 0

Uber’s fund-raising efforts are showing no signs of slowing down. The company, based in San Francisco, is close to completing the raising of a $2.1-billion round of venture capital, according to people briefed on the company’s plans, the company’s single-largest round to date.

Once completed, the investment will value the company at $62.5 billion, according to three people briefed on the plans, securing Uber’s place as the world’s most valuable private start-up.

Tiger Global Management participated in the newest round, led by its partner Lee Fixel, as did T Rowe Price, said the people, who spoke on the condition of anonymity because the terms are still private.

Talks of the funding plans were previously reported by The New York Times in October. On Thursday, Bloomberg News reported the $62.5-billion valuation.

Uber declined to comment on any fund-raising talks, as did T Rowe Price. A Tiger Global spokeswoman declined to comment.
Competition is intensifying in the global ride-hailing market, as rivals like Lyft, Didi Kuaidi and other companies raise billions of dollars in to expand as quickly as possible. Lyft, another ride-hailing start-up, is in talks to raise a further $500 million in funding, according to four people briefed on the round, which could value the company at roughly $4 billion. Didi Kuaidi, to date, has raised more than $4 billion in private investment.

The participation of Tiger Global, however, is particularly interesting. Tiger Global is an investor in Ola and GrabTaxi, two of Uber’s largest competitors in India and Southeast Asia.

It is perhaps the first time a major institutional investor participated in the rounds of both Uber and its major competitors. And on Thursday, Ola and GrabTaxi announced a strategic partnership with Lyft, which is also based in San Francisco and is Uber’s major competitor in the United States.

source: http://www.business-standard.com/article/companies/uber-valuation-put-at-62-5-bn-after-new-investment-115120500045_1.html

India 5th on doing biz in clean energy

by | posted in: Corporate Updates, Economy, Business Updates, Corporate Affairs, India & International - Corporate updates | 0

Considering India’s notable policy reforms in the renewable energy sector, Bloomberg New Energy Finance has ranked the country at fifth place on a list of 30 countries on ease of doing business in the renewable energy space. The ranking done by Bloomberg New Energy Finance’s annual Climatescope report indicates that clean energy’s centre of gravity is shifting from developed to developing countries. The report ranked China in the first place, followed by Chile, Brazil, South Africa and India.

The report said: “The new policy ambitions from the (Narendra) Modi government signal clean energy opportunities in the country.” The strongest parameter in favour of India was value chain, while lower-than-expected investment continues to be the weak link.

As solar energy became more cost-competitive in emerging markets in 2014, there would be a surge of investment and capacity-building in the Asian countries, especially China and India, the report noted. Last year, India added 5 gigawatt (Gw) of clean energy generation capacity.

CLEAN BREAK IN RENEWABLE SPACE
  • $343.2 billion Total clean energy investments (2009-14) in China
  • $52.5 billion Total clean energy investments (2009-14) in India
  • 262.5 Gw Installed power capacity
  • 38,360 Mw Total renewable energy capacity
  • 5,009 Mw Renewable capacity added in 2014
  • 14.6% Renewable share in total installed capacity
  • Top Indian states: Tamil Nadu, Karnataka, Madhya Pradesh, Maharashtra, Rajasthan & Gujarat

“Major reforms in India brought by the Modi administration bring hope of quicker deployment for the country’s eager renewable energy developers,” said Climatescope.

Among the states, Tamil Nadu led the pack with the highest wind energy capacity, followed by Karnataka, Madhya Pradesh, Maharashtra, Rajasthan and Gujarat.

Madhya Pradesh scored the highest among Indian states on growth rate of clean energy investments. The state’s favourable land policy and easy clearances have resulted in attracting projects. Gujarat, which was once a haven of clean energy investments, slipped from the top slot due to policy uncertainty and litigation over tariff.

Maharashtra’s high feed-in tariff led to a surge in wind capacity.

The report noted: “Maharashtra has done relatively little to encourage private investment in solar; it has held no tenders for power contracts and offers no feed-in tariffs.”

Renewable energy in Rajasthan at 4 Gw represents a high share (32 per cent) of total power capacity of 13 Gw, compared to other states. “The overall renewable energy capacity grew 14 per cent in 2014 in the state, but it has done little policy-wise to encourage solar development through incentives and the state’s distribution utilities are among the financially shakiest in India,” said the report.

At 7.4 Gw, Tamil Nadu has more wind installed than any other state. Since 2012, however, annual new-build rates have fallen and in 2014, only 208 megawatt was commissioned. This is largely due to the poor financial health of state-owned distribution utility companies and occasional payment delays to power project owners.

The Indian government’s goal of providing round-the-clock power to 1.25 billion citizens has triggered huge interest from investors. The report noted that a strong energy minister overseeing coal, power, and new and renewable energy sectors could have a positive influence.

The Modi-led government has revised the targets for renewable energy to 175 Gw by 2022.

Source: http://www.business-standard.com/article/economy-policy/india-5th-on-doing-biz-in-clean-energy-115112300009_1.html