Union Cabinet approves recapitalisation of RRBs

Centre’s share fixed at of ₹670 crore

The Centre has approved a ₹1,340-crore recapitalisation plan for regional rural banks (RRBs) to improve their capital-to-risk weighted assets ratio (CRAR), strengthening these institutions that are critical to the provision of credit in rural areas.

On Wednesday, the Cabinet Committee on Economic Affairs gave its nod for an outlay of ₹670 crore as the central share for the scheme on the condition that the release of the funds will be contingent upon the release of the proportionate share by the sponsor banks, an official statement said.

This would provide minimum regulatory capital for one more year viz. up to 2020-21 for those RRBs that are unable to maintain the minimum CRAR of 9%. This has been an ongoing scheme since 2011.

The RRBs are required to provide 75% of their total credit as priority sector lending with primary focus on agricultural credit, including small and marginal farmers, as well as micro entrepreneurs and rural artisans.

At a time of lockdown due to the COVID-19 crisis, financially stronger rural banks could also be crucial to ensuring liquidity in rural areas.

The world ‘squandered’ its first opportunity to stop coronavirus: WHO

The time to act to fight the novel coronavirus was one or two months ago, and countries “squandered” the opportunity, according to the director-general of the World Health Organization.

Speaking at a press conference Wednesday, WHO director-general Dr. Tedros Adhanom Ghebreyesus said his organization had been warning for months about the dangers of COVID-19, but countries didn’t take action.

Spirit of sharing spreads in Metro Vancouver during coronavirus crisis

VANCOUVER — While panicked shoppers have been buying stores out of toilet paper and flour stocks, two tables have appeared on streets in the Vancouver area stacked with essential items and a sign that says “free.”

Raymond Liu, who is part of a group that set up the tables, said the idea behind them is simple: “Do not spread the virus, just spread love.”

Virus pandemic: Volunteers, Prince Charles and stranded Britons

On this edition of the Sky News Daily podcast with Jonathan Samuels, we look at help for the NHS and testing in the UK fight against COVID-19 after Prince Charles was diagnosed.

We also discuss the plight of British people abroad trying desperately to get back to the UK – with The Sun’s travel editor Lisa Minot and Claire Fox, director of the Academy of Ideas think tank joining our correspondents.

Amazon’s Sick Leave Called Inadequate by State Attorneys General

Attorneys general in 14 states and Washington D.C. said Amazon.com Inc.’s sick leave policies are “inadequate to protect the public health during the developing COVID-19 crisis,” according to a letter they sent to the e-commerce giant Wednesday.

Amazon is promoting itself as an essential service that helps vulnerable people avoid crowded stores, while some government and health officials fear the company is putting warehouse, supermarket and delivery workers at risk. Amazon has said it will provide up to two weeks of paid leave for employees who have confirmed cases of the virus or are placed in quarantine.

That isn’t enough, Massachusetts Attorney General Maura Healey wrote in the letter, which was signed by other attorneys general from states including California, New York, Pennsylvania and Amazon’s home state of Washington.

“We urge you to adopt a more generous paid leave policy for the Companies’ employees and independent contractors,” the letter stated. It was written to Amazon Chief Executive Officer Jeff Bezos and John Mackey, the CEO of Whole Foods, Amazon’s grocery store business. Amazon didn’t immediately respond to a request for comment.

Wall Street Bonuses Could Fall 40% This Year in ‘Perfect Storm’

Bonuses could drop 40% or more across the financial industry this year as the coronavirus pandemic causes economic tumult around the world, according to compensation consultant Alan Johnson.

A “perfect storm” is taking shape, with a global recession looming and broader industry shake-ups coming as well, the managing director of Johnson Associates Inc. said.

“It looks like it’s going to be a very, very tough compensation year,” he said in an interview Wednesday. “This is a shock to the system that you see about every 10 years.”

Financial firms are among the companies suffering as the pandemic upends credit availability, roils stock markets and cuts consumer spending with businesses forced to shut their doors and people stuck at home. Banks are “squarely in the crosshairs,” private equity “is going to take a huge hit” and “investors are getting tired” of hedge funds, Johnson said, adding that asset managers also will feel the pain.

“The one silver lining is it’s going to change attitudes about working from home, which truthfully in financial services is long overdue,” he said.

Micron Technology Q2 adjusted earnings Beat Estimates

Micron technology (MU) reported a profit for second quarter that declined from the same period last year.

The company’s earnings totaled $0.41 billion, or $0.36 per share. This compares with $1.62 billion, or $1.42 per share, in last year’s second quarter.

Excluding items, Micron Technology reported adjusted earnings of $0.52 billion or $0.45 per share for the period.

Analysts had expected the company to earn $0.37 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 17.8% to $4.80 billion from $5.84 billion last year.

Micron Technology earnings at a glance:

-Earnings (Q2): $0.52 Bln. vs. $1.97 Bln. last year.
-EPS (Q2): $0.45 vs. $1.71 last year.
-Analysts Estimate: $0.37
-Revenue (Q2): $4.80 Bln vs. $5.84 Bln last year.

-Guidance:
Next quarter EPS guidance: $0.40 – 0.70
Next quarter revenue guidance: $4.6 – $5.2 Bln