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After $20 Billion Jio Frenzy, Ambani Seeks Money for Retail – Yahoo Canada Finance

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After $20 Billion Jio Frenzy, Ambani Seeks Money for Retail

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(Bloomberg) — After raising more than $20 billion for his digital venture in three months, billionaire Mukesh Ambani is readying his retail unit for global partners, as his oil-to-petrochemicals conglomerate turns to India’s billion-plus consumers for growth.

Asia’s richest man and the chairman of Reliance Industries Ltd. told shareholders Wednesday that Reliance Retail Ltd. is getting inquiries from investors and may start bringing some on board in the coming months. The legacy petrochemicals business is also getting attention from potential investors even though a proposed stake sale to Aramco isn’t proceeding as planned, he said.

“We’ve received strong interest from strategic and financial investors in Reliance Retail,” Ambani told the 300,000-plus people who logged into the virtual conference from 41 countries. “We will induct global partners and investors in Reliance Retail in the next few quarters.”

The 63-year-old tycoon has identified technology and retail as future growth areas in a pivot away from the energy businesses he inherited from his father who died in 2002. Retail is the next frontier for Ambani, who just finished selling almost 33% of his digital venture over the past three months to a slew of investors including Silicon Valley giants Facebook Inc. and Google, valuing Jio Platforms Ltd. at $58 billion.

Reliance Retail, which runs supermarkets, India’s largest consumer electronics chain store, a cash and carry wholesaler, fast-fashion outlets and an online grocery store called JioMart, reported 1.63 trillion rupees ($22 billion) in revenue in the year through March 2020. The unit operates almost 12,000 stores in nearly 7,000 towns.

Although Ambani laid out a vision for a technology future for Reliance Industries at the shareholders meeting, shares of the conglomerate slumped. The tycoon confirmed that a planned sale of stake in Reliance’s oil-and-chemicals division to Saudi Arabian Oil Co. for an estimated $15 billion hadn’t progressed as planned, disappointing investors.

Frenzied Fundraising

The stock fell 3.8% Wednesday, its biggest loss since May 14, paring gains from a rally spurred by the frenzied fundraising by Jio. The drop shrank Ambani’s net worth to $69 billion, according to the Bloomberg Billionaires Index, pushing him down the rankings to the world’s 10th richest. Earlier this week, he had briefly rocketed to No. 6, past Elon Musk, Warren Buffett and Google co-founders Sergey Brin and Larry Page.

Most of Ambani’s focus during the 93-minute presentation to shareholders was on technology. He, along with his children Isha and Akash Ambani, unveiled a slew of services, including a fifth-generation wireless network as early as next year and a mega video-streaming platform that will bring Netflix, Disney+ Hotstar, Amazon Prime and dozens of other TV channels under one umbrella. The twins, who have been at the forefront of the fundraising efforts, also demonstrated some of the technologies.

“I believe that the time has come for a truly global digital product and services company to emerge from India, and to be counted among the best in the world,” Ambani said.

Read more: Can Ambani Take on Tencent, Huawei and Xiaomi?: Andy Mukherjee

Jio Platforms, unveiled last year, is now at the center of his ambitions to tap a billion Indians increasingly embracing mobile devices and data plans to shop online. Jio is eyeing an opportunity to shake up retail, content streaming, digital payments, education and health care.

Giant Rivals

Those plans would put Jio in direct competition with e-commerce giant such as Amazon.com Inc. and Walmart Inc.’s local operations. Alphabet Inc.’s Google is the latest to join Jio as an investor, with Wednesday’s announcement of a $4.5 billion investment for a 7.7% stake.

“Each of the new hyper growth engines have high customer acceptance opportunity with scale, and will be multiple times current valuation, making the traditional oil and gas business a less than 20% contributor to valuation going forward,” said Chakri Lokapriya, chief investment officer at TCG Asset Management in Mumbai.

Jio, which started out as a wireless carrier as its first building block back in 2016, will roll out its 5G network once airwaves are available, according to Ambani. Unlike most other carriers, Jio will use a technology developed in-house for 5G, Ambani said, leaving it immune to pressures many global telecommunications companies are facing from the U.S. over Chinese equipment vendors.

Here are some of the plans laid out by Ambani:

Google and Jio are partnering to build an Operating System that could power a cheap 4G/5G smartphone.JioMart, the online shopping portal, and WhatsApp will be working closely to create growth opportunities for millions of Indian small merchants and enable customers seamlessly transact with mom-and-pop storesJio Glass to bring teachers and students together in 3D virtual rooms and conduct holographic classes through our Jio Mixed Reality cloud in real-timeBroadband for enterprises and small businesses; Narrowband Internet-of-Things (NBIoT)

(Updates with slide down the wealth rankings in seventh paragraph)

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Potential COVID-19 exposure identified at six locations in the Halifax area – HalifaxToday.ca

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NEWS RELEASE
NOVA SCOTIA HEALTH
*************************
Nova Scotia Health Public Health is advising of potential exposure to COVID-19 at various locations across Halifax. In addition to media releases, all potential exposure notifications are now listed here.

Anyone who visited the following locations on the specified date and time to immediately visit covid-self-assessment.novascotia.ca/ to book a COVID-19 test, regardless of whether or not they have COVID-19 symptoms. People who book testing because they were at a site of potential exposure to COVID-19 are required to self-isolate before their test and while waiting for test results. You can also call 811 if you don’t have online access or if you have other symptoms that concern you.

  • Stillwell (1672 Barrington St, Halifax) on Nov. 20 between 6 p.m. and 12:30 a.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, Dec. 4.
  • Bearly’s House of Blues and Ribs (1269 Barrington St, Halifax) on Nov. 20 between 8:30 p.m. and 2 a.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, Dec. 4.
  • Highwayman (1673 Barrington St, Halifax) on Nov. 21 between 7:30 p.m. and 12 a.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, Dec. 5.
  • Gahan House (5239 Sackville St, Halifax) on Nov. 21 between 2:30 p.m. and 4:30 p.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, Dec. 5.
  • Princess Nails (1475 Bedford Highway, Bedford) on Nov. 21 between 4 p.m. and 6:30 p.m. It is anticipated anyone exposed to the virus at this location on the above date may develop symptoms up to, and including, Dec. 5.
  • Boston Pizza Dartmouth Crossing (111 Shubie Dr, Dartmouth) on Nov. 20 between 6:30 p.m. and 8:30 p.m. and Nov. 22 between 1:30 p.m. and 3:30 p.m. It is anticipated that anyone exposed to the virus at this location on the named date may develop symptoms up to, and including, Dec. 6.

Please remember:
Do not go directly to a COVID-19 assessment centre without being directed to do so.

Currently, anyone travelling to Nova Scotia from outside of the Atlantic Provinces is expected to self-isolate alone for 14 days after arriving. If a person travelling for non-essential reasons enters Nova Scotia from outside Atlantic Canada, then everyone in the home where they are self-isolating will have to self-isolate as well.

When Nova Scotia Health Public Health makes a public notification it is not in any way a reflection on the behaviour or activities of those named in the notification.

All Nova Scotians are advised to continue monitoring for COVID-19 symptoms and are urged to follow Public Health guidelines on how to access care. Up to date information about COVID-19 is available at novascotia.ca/coronavirus

*************************

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Macklem says bond-buying program about lowering rates, not financing feds – BNN

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OTTAWA – Canada’s top central banker gave MPs a detailed defence of the Bank of Canada’s buying spree of government debt Thursday, saying it is aimed at lowering borrowing costs across the country.

The Bank of Canada has launched an unprecedented bond-buying program that effectively lowers borrowing costs for the federal government as its racks up a historic deficit.

It now holds just under one-third of federal debt, with the bank believing it can scale up those purchases before throwing a wrench into credit markets.

But the purchases have put Bank of Canada governor Tiff Macklem in a political hot seat, with Conservatives on Parliament Hill warning the central bank about appearing too cosy with the governing Liberals.

During an appearance at the House of Commons finance committee Thursday, Macklem said the bank isn’t financing the federal government, but is reducing the cost to borrow for households and businesses.

He said the central bank will stop buying government bonds once the recovery is well underway, which is likely to happen before inflation gets back to the Bank of Canada’s two per cent comfort zone.

“Our actions by lowering interest rates and by buying government bonds are lowering the cost of financing the government. In fact, they’re lowering the cost of borrowing for everybody,” Macklem said.

“We’re not financing the government.”

The bond-buying program is the central bank’s first foray into what’s known as quantitative easing, which is a way for central banks to pump more money into the economy.

The central bank started the program as it dropped its trendsetting policy rate to 0.25 per cent to drive down interest rates. The purchasing program was designed to drive down rates even more on things like mortgages.

What the bank has done is buy up government bonds to spur demand and time lower interest rates, particularly for borrowers using terms of between three and 10 years like homeowners, homebuyers and businesses.

The bank’s balance sheet has swelled since March and now holds about $344 billion in government debt, or roughly 30 per cent of federal debt, after purchasing about $163 billion in bonds.

Macklem said central banks generally can hold between 50 and 70 per cent of debt before it begins to impair credit markets.

The bank has taken its foot off the gas recently for its purchasing program as the market conditions have improved, allowing it to reduce its total minimum weekly purchases to $4 billion.

Conservative finance critic Pierre Poilievre argued the purchases were inflating financial assets, and enriching the mostly affluent people who own them to push up inflation.

“Inflationary costs are borne disproportionately by the poor and the disadvantaged,” Poilievre said. “So you’re effectively transferring an enormous sum of wealth to those who have financial assets, while diluting the wages of working-class people.”

Pressed by Conservatives on the committee for a date when the buying will come to end, Macklem said the uncertain path of the pandemic prevents him from being able to circle a day on the calendar.

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Macklem says bond-buying program about lowering rates – BNN

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OTTAWA – Canada’s top central banker gave MPs a detailed defence of the Bank of Canada’s buying spree of government debt Thursday, saying it is aimed at lowering borrowing costs across the country.

The Bank of Canada has launched an unprecedented bond-buying program that effectively lowers borrowing costs for the federal government as its racks up a historic deficit.

It now holds just under one-third of federal debt, with the bank believing it can scale up those purchases before throwing a wrench into credit markets.

But the purchases have put Bank of Canada governor Tiff Macklem in a political hot seat, with Conservatives on Parliament Hill warning the central bank about appearing too cosy with the governing Liberals.

During an appearance at the House of Commons finance committee Thursday, Macklem said the bank isn’t financing the federal government, but is reducing the cost to borrow for households and businesses.

He said the central bank will stop buying government bonds once the recovery is well underway, which is likely to happen before inflation gets back to the Bank of Canada’s two per cent comfort zone.

“Our actions by lowering interest rates and by buying government bonds are lowering the cost of financing the government. In fact, they’re lowering the cost of borrowing for everybody,” Macklem said.

“We’re not financing the government.”

The bond-buying program is the central bank’s first foray into what’s known as quantitative easing, which is a way for central banks to pump more money into the economy.

The central bank started the program as it dropped its trendsetting policy rate to 0.25 per cent to drive down interest rates. The purchasing program was designed to drive down rates even more on things like mortgages.

What the bank has done is buy up government bonds to spur demand and time lower interest rates, particularly for borrowers using terms of between three and 10 years like homeowners, homebuyers and businesses.

The bank’s balance sheet has swelled since March and now holds about $344 billion in government debt, or roughly 30 per cent of federal debt, after purchasing about $163 billion in bonds.

Macklem said central banks generally can hold between 50 and 70 per cent of debt before it begins to impair credit markets.

The bank has taken its foot off the gas recently for its purchasing program as the market conditions have improved, allowing it to reduce its total minimum weekly purchases to $4 billion.

Conservative finance critic Pierre Poilievre argued the purchases were inflating financial assets, and enriching the mostly affluent people who own them to push up inflation.

“Inflationary costs are borne disproportionately by the poor and the disadvantaged,” Poilievre said. “So you’re effectively transferring an enormous sum of wealth to those who have financial assets, while diluting the wages of working-class people.”

Pressed by Conservatives on the committee for a date when the buying will come to end, Macklem said the uncertain path of the pandemic prevents him from being able to circle a day on the calendar.

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