Alibaba to invest $15 billion to build logistics network

Hong Kong: Chinese e-commerce firm Alibaba Group announced it will invest 100 billion yuan ($15.1 billion) over five years to build a global logistics network and also take control of a $20 billion unit, underpinning an aggressive overseas expansion.

Alibaba is investing 5.3 billion yuan in Cainiao Smart Logistics Network to boost its stake to 51% from 47%. The investment would value Cainiao, a joint venture of top Chinese logistics firms, at around $20 billion.“Our commitment to Cainiao and additional investment in logistics demonstrate Alibaba’s commitment to building the most-efficient logistic network in China and around the world,” Alibaba CEO Daniel Zhang said in a statement on Tuesday.

The announcement comes as Alibaba is rapidly expanding its e-commerce and logistics network abroad, including newly announced direct sales channels in Indonesia, Thailand and the Philippines, facilitated by a $2 billion investment in Southeast Asian online retailer Lazada Group.

Alibaba’s latest investment in Cainiao also signals its intention to boost control over the domestic warehou- sing and delivery market, which has become increasingly competitive as firms seek to capitalise on logistics data assets.

In June top logistics firm SF Holding Co cut ties with the Cainiao coalition, which provides logistics support directly to Alibaba’s top e-commerce platform Taobao, claiming Alibaba had requested data unrelated to the existing partnership agreement. Alibaba denied the claims.

Alibaba said on Tuesday the $15 billion investment will be used to develop its data technology and improve its warehousing and delivery development. Alibaba subscribed to new shares of Cainiao to boost its stake to a majority, according to a person close to the e-commerce firm.

Alibaba will gain a new board seat in Cainiao, and will represent four out of a total seven seats. Despite attrac- ting billions of dollars from equity investors, Chinese logistic firms haven’t fared well in recent public listings.

Shares of ZTO Express Inc, which raised $1.4 billion from its New York IPO last October in the largest US offering by any Chinese company since Alibaba in 2014, are down 22% from the listing price. And Best Inc, a Chinese delivery firm backed by Alibaba, raised $450 million in a US IPO last week, nearly half of what it had initially intended to raise. Cainiao is not currently considering any IPO, the person said. Alibaba did not immediately respond to a request for comment.

Alibaba co-founded Cainiao in 2013, with partners including department store owner Intime Group, conglomerate Fosun Group and a few logistics companies. It oversees roughly 57 million deliveries a day.

GST collection dips 3.6% in Aug on delayed filing

New Delhi: Goods and services tax (GST) collections dipped 3.6% in August from the previous month as delayed filing on account of technical glitches took a toll on the overall collection. Going by the experience in July, the kitty is expected to swell as more taxpayers pay even though the due date is over.

Latest data released by the finance ministry on Tuesday showed that in August, the government managed to rake in Rs 90,669 crore, marginally lower than the revised mop-up of Rs 94,063 crore in July. Initial estimates released on August 29 had estimated the July collections at Rs 92,283 crore. The final returns for August (GSTR 3B) had to be filed by September 20.

The data revealed that there were segments where collections had soared, such as through compensation cess, which is levied on tobacco products, pan masala and automobiles. There was a pick-up in demand for large cars, especially SUVs, as the government had planned to increase the cess on these vehicles.

Till Monday, 37.63 lakh of the 68.2 lakh entities registered for GST had filed their returns. “The above figures obviously do not include GST to be paid by 10.24 lakh assessees, who have opted for the composition scheme. Additionally, there are still a number of assessees who have not filed their return either for July or August, 2017. The increase in the above stated figures will be informed in due course,” the government said in a statement.

Businesses have been complaining about difficulty in filing and submitting returns through the GST Network (GSTN) tax portal with many consultants complaining of regular outages and have blamed the lack of adequate capacity on the IT backbone supporting the new tax regime. The accusation has, however, been trashed by GSTN.

“It is too early to hazard a guess on the overall GST collections as many taxpayers have still not paid GST; there is inconsistency in collections because of transitional credit and exporters not being able to claim refund of GST. Things will settle down only in the next few months wherein a clearer picture on GST revenues would emerge,” said Abhishek Jain, tax partner at consulting firm EY India.

SPORTS

England all-rounder Ben Stokes arrested on suspicion of assault in Bristol & dropped for the fourth ODI

London: England all-rounder Ben Stokes has been arrested on suspicion of causing actual bodily harm in Bristol and dropped for Wednesday’s fourth ODI against West Indies.

The 26-year-old Durham star was arrested early on Monday, following England’s 124-run win in the third ODI in the Clifton district of the city, and released under investigation — without charge — the England and Wales Cricket Board (ECB) announced on Tuesday.

Stokes and Opening batsman Alex Hales, who was with him on Sunday night, will also miss the game at The Oval.

The Oval match takes place just hours after England are due to unveil their squad for the Ashes tour of Australia at the south London ground earlier on Wednesday.

“Ben Stokes and Alex Hales will not be available for tomorrow’s (Wednesday’s) one-day international match against West Indies at The Oval,” ECB director of England cricket Andrew Strauss said while reading out a board statement to reporters at The Oval on Tuesday.

“Stokes was arrested in the early hours of Monday morning, 25 September, following an incident in Bristol,” the former England captain added as he continued to read out the statement.

“He was held overnight and released under investigation – without charge – late on Monday and will not join the team in London.

“Hales, who was with Stokes on Sunday night, did not train this (Tuesday) morning and has returned voluntarily to Bristol today to help police with their enquiries. “You will understand that we cannot offer further detail at this stage but will provide any updates when we can.” Strauss confirmed that both Durham star Stokes — a Test regular — and Nottinghamshire batsman Hales, a fringe candidate, will be considered for the Ashes squad on cricketing grounds alone by the England selectors at this stage.

England captain Eoin Morgan said: “We feel we have a strong enough squad to be able to fill that hole. It’s important we can put this to one side and focus on our cricket.”

Meanwhile a statement issued by Avon and Somerset police said: “We were called to a disorder in Queens Road, Clifton, at around 2:35am (0135 GMT) on Monday.

“A 27-year-old man was found to have suffered facial injuries and was taken to the Bristol Royal Infirmary for treatment.

“A 26-year-old man was arrested on suspicion of causing actual bodily harm and has since been released under investigation.

U.S. nudges Afghan trade

Intensifying trade links tops the agenda as Afghanistan’s Chief Executive Abdullah Abdullah arrives in New Delhi on Wednesday. He will open an India-Afghanistan trade fair, sponsored by a U.S. agency. “Our real hope is that health and education will receive support from Indian companies,” a senior U.S. official said.

Intensifying trade links is at the top of the agenda as Afghanistan’s Chief Executive, Dr. Abdullah Abdullah, arrives in Delhi on Wednesday for talks with Prime Minister Narendra Modi and External Affairs Minister Sushma Swaraj.

Dr. Abdullah, who will be accompanied by several ministers, is here to inaugurate an India-Afghanistan trade fair, sponsored by the United States Agency for International Development.

“India has been partnering with the Government and people of Afghanistan in their efforts to build a stable, peaceful, prosperous united and pluralistic country,” a statement issued by the Ministry of External Affairs said.

The four-day “India-Afghanistan Trade and Investment Show” will be co-inaugurated by Finance Minister Arun Jaitley, Civil Aviation minister Ashok Gajapathi Raju as well U.S. envoys in Delhi — MaryKay Carlson, and Kabul — Hugo Llorens.

During the visit, the air cargo agreement for bilateral trade is expected to be signed by India and Afghanistan as well.

Widening impact

“This is the biggest such event we have had so far,” said a senior U.S. official. “Our real hope is that apart from growing trade figures, the social sector, especially projects in health and education will receive support from Indian companies.”

According to the U.S. official, about 240 Afghan private and social sector businesses and about 800 Indian businesses have registered to participate in the fair, which is being held for the first time at this scale — smaller versions ohave been held seven times since 2003.

“We now hope to hold this event annually, and could hold next year’s trade expo in Mumbai,” the official said. At present, about 40 letters of intent have been received from companies in diverse fields.

Security threat

At about $684 million (201415), India-Afghan trade is far lower than its potential for a number of reasons, the chief being the security situation in Afghanistan with civilian deaths peaking in 2016.

However, Afghan officials say they hope Indian investors and traders will be reassured by the announcement of U.S. President Donald Trump’s new policy for Afghanistan which has committed to keeping troops there without a deadline. “The new U.S. policy is already effecting a change in the security situation. Because there is a clear message of a long-term commitment based on the condition on the ground, not on timelines,” Afghanistan’s Ambassador to India Shaida Abdali told The Hindu.

The other obstacles to trade include Pakistan’s refusal to allow Indian exports to Afghanistan through the road route at Wagah, and delays for goods routed through Karachi port.

Dortmund brace for Ronaldo test

Borussia Dortmund will aim to maintain their unbeaten record at home to Real Madrid in the Champions League on Tuesday and spoil Cristiano Ronaldo’s 150th European appearance.

Dortmund and title holders Real meet in the group stage for the second year running.

The teams drew both games 2-2 last season as the Germans topped the section before bowing out in the last eight while Real went on to win a record 12th title.

Dortmund have won three and drawn three of their meetings at Signal Iduna Park, including their dazzling 4-1 first-leg win in the 2013 Champions League semifinal when Robert Lewandowski scored all four goals.

Defending champions Real opened their group campaign with a 3-0 win at home to APOEL while Dortmund suffered a 3-1 defeat at Tottenham Hotspur a fortnight ago.

The Germans’ main task will be containing four-time Ballon d’Or winner Ronaldo, who has scored 110 goals in European competition but failed to find the net in his last two outings.

Dortmund flexed their muscles ahead of the heavyweight showdown with a 6-1 home drubbing of Borussia Moenchengladbach in the German league on Saturday as Pierre-Emerick Aubameyang netted a hat-trick.

The Gabon striker has now scored eight goals in six league games. He has forged a partnership -- dubbed ‘Philameyang’ by the German media -- with leftwinger Maximilian Philipp, who has scored four goals in his last three games.

“Things couldn’t have gone better,” beamed Dortmund’s World Cup winner Mario Goetze, who is back in form after a metabolic disorder, following the Gladbach win. “However, we know that it will be a mammoth task against Real on Tuesday.”

While Dortmund shone in attack, they struggled at the back against Gladbach, who had half a dozen clear chances to score which went begging. Zinedine Zidane’s Real are unlikely to be as forgiving. Dortmund’s big win came with forwards Marco Reus, Andre Schuerrle and Raphael Guerreiro injured while new signing Andriy Yarmolenko, Nuri Sahin and Gonzalo Castro were not used. Real traditionally have a terrible record in Germany with 19 defeats, seven draws and only five wins.

However, four of those victories have come in their last seven visits and they enjoyed a 2-1 win at Bayern Munich in last season’s quarter-finals.

Madrid’s run of scoring in 73 successive matches in all competitions ended when they lost 1-0 at home to Real Betis on 20 September.

Zidane is without a left-back as Marcelo (hamstring) and Theo Hernandez (shoulder) are both out, so Nacho is set to fill in.

China tightens policy, bans WhatsApp

WhatsApp has been banned in China. Users in China have reported widespread disruptions in recent days to the Facebook-owned service, which previously malfunctioned in the country over the summer. Experts said the problems began on Sunday, but text messaging, voice calls and video calls appeared to be working again on Tuesday, though voice messages and photos were not going through.

WhatsApp provides message encryption technology that likely does not please Chinese authorities, which closely monitor and restrict cyberspace through their “Great Firewall”.

According to TechCrunch, it is possible that the shutdown is in anticipation of the Communist Party’s congress to be held in Beijing next month. WhatsApp may have been targeted because of its strong encryption features lacked by services like Skype and Apple’s FaceTime that are allowed to operate in China.

China has tightened online policing this year, enacting new rules that require tech companies to store user data inside the country as well as imposing restrictions on what is permissible content. Chinese cyberspace regulators said they slapped “maximum” fines on major Chinese tech firms Baidu and Tencent for allowing the publication of pornographic, violent and other sorts of banned material on their social media platforms. The amount of the fines was not disclosed.

Websites such as Facebook, Twitter, Pinterest and a slew of foreign media have been blocked for years. The WhatsApp troubles emerged ahead of the Communist Party congress on October 18.

Justice Patel of Karnataka HC Declines Transfer, Resigns

Justice Patel was part of a division bench of Gujarat HC that ordered a CBI probe into the Ishrat Jahan encounter in 2011, also served as acting chief justice of Gujarat HC ‘I have sent a copy (of resignation letter) to high court chief justice’

New Delhi: Justice Jayant M Patel of the Karnataka high court has resigned after the Supreme Court collegium transferred him to the Allahabad high court. Justice Patel told ET that he was asked by the collegiumtocommentonwhyheshould not be transferred to the Allahabad high court. He declined his consent to be transferred and instead put in his papers. Since he holds a constitutional post, there was no question of anybody accepting or not accepting his resignation, Justice Patel said.

“I have sent a copy (of the resignation letter) to the high court chief justice,” he said, refusing to say anything further. Justice Patel would have been a relatively junior judge in the Allahabad HC. Justice Patel was the second senior-most judge in the Karnataka HC and tipped to become the chief justice after incumbent SN Mukherjee’sretirementonOctober9.

People familiar with the development said the SC collegium decided to transfer Justice Patel on September15.JusticePatelwaspart ofadivisionbenchoftheGujaratHC that ordered a CBI probe into the Ishrat Jahan encounter in 2011. He also served as the acting chief justice of Gujarat before he was transferred to the Karnataka HC. The collegium that recommends appointment and transfer of judges comprises CJI Dipak Misra and justices Jasti Chelameswar, Ranjan Gogoi, Madan B Lokur and Kurian Joseph, the five seniormost judges. It is not known if any collegium member dissented to the decision to transfer Justice Patel.

Legal circles had expected Justice Patel to be elevated to SC in case he was not made chief justice of Karnataka asSChas no representation from Gujarat since Justice AR DavedemittedofficelastNovember.

Ex-presidentoftheGujaratHCBar Association Yatin Oza expressed shock over the decision and said Justice Patel was an outstanding and honest judge. “I am criticising their administrative decision, not their judicial decision. It is not contempt.” The association has decided togoonaday’sstrikeonWednesday against the collegium decision.

PANDEY TO GRIND IT OUT

Bengaluru: Known for his ability to tackle spin and seam alike during the middle overs and accelerate scoring, Manish Pandey is often seen as the ideal batsman for the No. 4 slot in Team India. Having earned two opportunities to bat at the position in the ODI series against Australia, the flamboyant Karnataka cricketer has not been able to make it his own with poor scores of 0 (Chennai) and 3 (Kolkata) in the first two outings.

In the third contest in Indore, Hardik Pandya was preferred ahead of Pandey as No. 4 and the Gujarat allrounder justified his promotion with a match-winning 78. However, Pandey, who stepped in at No. 6, guided the team home with an unbeaten 32-ball 36. With KL Rahul and Ajinkya Rahane — currently opening in the absence of Shikhar Dhawan— waiting to occupy the slot, Pandey will be under pressure to deliver.

Admitting there was intense pressure to deliver coming in at two-down, Pandey was quick to add that he was focussed on making amends and regaining his slot. “Whether you're batting, bowling or fielding, there is always pressure. But I am here to stay, play a lot of games and win them for India. There is a spot for the taking so I'll work hard to try and find a place here. So far I've got No. 4 and there are times when the batting order has changed a bit. I will be looking to play most of the games in that order and do well for the team,” Pandey explained.

Revealing that he was fine with Pandya taking his slot in Indore, Pandey pointed out that the shuffle was part of the team plan. “When the spinners are on, sometimes the plan is that somebody who is a little more aggressive, batsman who can hit the big sixes, will pad up. That’s what Ravi (Shastri) bhai said in the meeting,” Pandey said.

“We all are fine with that and it has paid off. Hardik played well at number four and it’s good for the middle order. I’m ready to bat in any slot,” added the right-hander, who came into the series with impressive scores of unbeaten 50 & 36 (in ODIs) and an unbeaten 51 (T20) during their tour of Sri Lanka in August.

About Australia, Pandey felt they had been let down by their batsmen. “Some things are not clicking for them. The top-order is batting well but they are not getting enough runs. They are a good team and it is always good to beat them,” he said.

All help, but no troops to Afghanistan

India will expand aid to strife-hit nation, Nirmala Sitharaman says after meeting U.S. Defence Secretary

R.V. MOORTHY ■

Meeting of minds: Defence Minister Nirmala Sitharaman with her U.S. counterpart James Mattis at South Block in New Delhi on Tuesday.

India on Tuesday ruled out deploying troops in Afghanistan even as it pledged to expand development and medical assistance for the strife-torn nation.

“We have made it very clear that there shall not be boots from India on the ground,” Defence Minister Nirmala Sitharaman said in response to questions on the issue, at a press conference she addressed along with her U.S. counterpart James Mattis.

The U.S. Defence Secretary is in New Delhi for the first Cabinet-level visit from the Trump administration. For Ms. Sitharaman, it was the first ministerial engagement with a counterpart since she took charge of South Block.

“Indian contribution to Afghanistan has been for a very long time and has been consistently on developmental issues... Medical assistance is also provided by India... So India’s contribution has been on these grounds, and we shall expand if necessary,” Ms. Sitharaman added.

The Defence Minister’s statement puts to rest speculation about India deploying troops in Afghanistan after U.S. President Donald Trump called for greater Indian involvement. India has already extended $3 billion aid to Afghanistan, provides security assistance in the form of training and has also

supplied some utility and attack helicopters.

Kabul has repeatedly sought lethal weapons and ammunition from India.

In their press statements after the talks, the two leaders also resolved to eradicate terrorist safe havens across the globe.

“There can be no tolerance of terrorist safe havens. As global leaders, India and the U.S. resolve to work together to eradicate this scourge,” Mr. Mattis said, but made no direct reference to Pakistan.

Maritime engagements

With increasing Chinese presence in the region, Mr. Mattis said expanding “maritime engagements” was one of his top priorities.

He said India had a “vital role to play in supporting South East Asia’s regional institutions, particularly ASEAN, and in building partner capacity across the region.” Both sides reiterated their support for “freedom of navigation, over-flight and unimpeded lawful commerce” in the Indian Ocean and Asia-Pacific Region.

“We also believe that disputes should be resolved through peaceful means and in accordance with the universally recognised principles of international law,” Ms. Sitharaman said, in an apparent reference to China.

Stating that the recent Malabar trilateral naval exercises demonstrated the progress made in “operational synergies” between the navies, Ms. Sitharaman said, “In our talks today, we agreed to explore additional, specialised exercises.”

This visit was largely a familiarisation trip for Mr. Mattis and also a chance for the leaders to know each other. Later in the day, Mr. Mattis held discussions with National Security Adviser Ajit Doval.

Mr. Mattis called on Prime Minister Narendra Modi later in the afternoon. “The Prime Minister recalled his wide-ranging, candid, and fruitful discussions with President Trump during his visit to the United States in June this year,” a statement issued by the Ministry of External Affairs said.

Mr. Mattis briefed the Prime Minister on the progress in advancing the bilateral agenda and implementing the decisions taken during that visit, the statement said.

“They also discussed enhanced cooperation, regionally and globally, in pursuing shared priorities for peace, stability and combating terrorism. The Prime Minister appreciated the close engagement between the two countries on regional and global issues of mutual concern,” it said.

Dutch gridlock could hold a portent for Germany

Six months since the elections, the Netherlands is yet to get a government as coalition talks grind on

Chancellor Angela Merkel arriving for a meeting on Tuesday.

If German Chancellor Angela Merkel wants to see how tough it can be to form a multi-party government, she needs only look across the border at the Netherlands, where four-party coalition talks are still grinding on more than six months after the election.

Talks resumed here on Tuesday afternoon. On his way in, Dutch Prime Minister Mark Rutte said he did not have any tips for Ms. Merkel. “She’s very wise and will be able to handle it without my advice, no doubt,” he said.

Lengthy talks to form a coalition government are a regular feature in some European democracies — Belgians once had to wait more than 500 days for a new government.

Position weakened

Ms. Merkel’s bloc came in first in Sunday’s vote but its position was weakened. Her Christian Democratic Union (CDU) and its Bavaria-only ally, the Christian Social Union (CSU), won 33% of the vote — down from 41.5% four years ago. Her coalition partner for the last term, the Social Democrats led by Martin Schulz, won 20.5% and vowed to go into Opposition.

The most politically plausible option for Ms. Merkel is a three-way coalition with the pro-business Free Democrats and the traditionally left-leaning Greens.

The current Dutch negotiations are the second-longest on record for them, eclipsed only by a 208-day formation process in 1977.

The parallels

Her position now is similar to that of Mr. Rutte — they both emerged victorious after an election, but lost seats and their coalition partners.

Mr. Rutte initially tried to build an alliance between his free market People’s Party for Freedom and Democracy, the Christian Democrats, the centrist D66 party and Green Left. The Greens, however, pulled the plug on that alliance in May when negotiators failed to bridge the yawning gaps between the parties on immigration policy. Ms. Merkel will likely face a similar problem if she attempts to co-opt the German greens into a coalition.

The talks “will certainly be very complicated and very difficult,” said the Greens’ co-leader, Katrin Goering-Eckardt. “We will negotiate with great responsibility and great seriousness.”