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Facebook yet to decide which political advertising rules it will roll out in Australia

by www.abc.net.au Leave a Comment

Facebook will wait until Australia’s federal election date is revealed to decide which, if any, of its planned political advertising restrictions it will roll out in a bid to reduce potential interference.

Key points:

  • Australia, Indonesia, Israel and the Philippines among the nations holding key votes this year
  • Facebook’s directors say they know rules will not be perfect and want ongoing improvements
  • Different policies and transparency measures will be developed to reflect local laws after speaking with governments

As the largest social media service in nearly every big country, Facebook since 2016 has become a means for politicians and their adversaries to distribute fake news and other propaganda.

Buying Facebook ads can widen the audience for such material, but some of those influencing efforts may violate election rules and the company’s policies.

Under pressure from authorities around the world, Facebook last year introduced several initiatives to increase oversight of political ads.

This year, it will extend some of its political advertising rules and tools for curbing election interference to India, Nigeria, Ukraine and the European Union before significant votes.

Beginning on Wednesday (local time) in Nigeria, only advertisers located in the country will be able to run electoral ads.

The move mirrors a policy unveiled during an Irish referendum last May, said Katie Harbath, Facebook’s director of global politics and outreach.

The same policy will take effect in Ukraine in February.

Nigeria holds a presidential election on February 16, while Ukraine will follow on March 31.

In India, where elections are due between April and May, Facebook will place electoral ads in a searchable online library starting in February, according to Rob Leathern, a director of product management at the company.

What about Australia?

Australia, Indonesia, Israel and the Philippines are among the nations holding key votes this year for which Facebook said it is still weighing policies.

Facebook expects to provide more information around plans for Australia’s federal election when the date on which it will be held has been announced.

“We’re learning from every country,” Mr Leathern said.

“We know we’re not going to be perfect, but our goal is continuing, ongoing improvement.”

Facebook believes that holding the ads in a library for seven years is a key part of fighting interference, he added.

The library will resemble archives brought to the US, Brazil and Britain last year.

The newfound transparency drew some applause from elected officials and campaign accountability groups, but they also criticised Facebook for allowing advertisers in the US to obfuscate their identities.

The Indian archive will contain contact information for some advertising buyers or their official regulatory certificates.

For individuals buying political ads, Facebook said it would ensure their listed name matches government-issued documents.

The European Union would get a version of that authorisation and transparency system ahead of the bloc’s parliamentary elections in May, Mr Leathern said.

What is Facebook planning?

The ad hoc approach, with varying policies and transparency depending on the region, reflects local laws and conversations with governments and civil society groups, Ms Harbath said.

That means extra steps to verify identities and locations of political ad buyers in the US and India will not be introduced in every big election this year, Mr Leathern said.

In addition, ad libraries in some countries will not include what the company calls “issue” ads, Mr Leathern said.

Facebook’s US archive includes ads about much-debated issues such as climate change and immigration policy, even though they may not directly relate to a ballot measure.

Mr Leathern and Ms Harbath said they hoped to have a set of tools that applies to advertisers globally by the end of June.

“Our goal was to get to a global solution,” Ms Harbath said.

“And so, until we can get to that in June, we had to look at the different elections and what we think we can do.”

Other Facebook teams remain focused on identifying problematic political behaviour unrelated to ads.

In December, researchers working for a US Senate committee concluded that the Russian Government’s Internet Research Agency used social media ads and regular posts on inauthentic accounts to promote then presidential candidate Donald Trump to millions of Americans.

Russia denied the accusation.

Reuters/ABC

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How a soaring Akasa Air got into a wrangle with its pilots

by economictimes.indiatimes.com Leave a Comment

Synopsis

Akasa Air, the airline launched by Rakesh Jhunjhunwala, overtook SpiceJet in terms of domestic market share in June 2023. However, the airline faced trouble when 43 pilots quit without serving the mandatory notice period, leading to flight cancellations and loss of market share. Akasa Air sued the pilots and the aviation regulator, seeking action against the pilots. The courts ruled in favor of Akasa Air, allowing the airline to take legal action against the pilots.

When legendary investor Rakesh Jhunjhunwala launched Akasa Air in August, days before he died, it was considered a gamble, given the highly challenging aviation sector in India. But in less than a year, when it was 11 months old, it overtook SpiceJet in terms of domestic market share in June 2023. While Akasa flew 6.2 lakh passengers last month, SpiceJet was at 5.5 lakh. Akasa gained the fifth spot, pushing SpiceJet down to the sixth. It was quite an achievement for a new airline.

But just around the time Akasa celebrated its first birth anniversary in August, it landed into trouble with 43 of its pilots quitting, leading to cancellation of flights and consequent loss of market share too. It sued the pilots in Mumbai as well as dragged the Directorate General of Civil Aviation (DGCA) to court in Delhi, seeking the aviation regulator to take coercive action against the pilots who quit without serving the notice period.

On September 27, the courts allowed Akasa Air’s suit against the pilots in Mumbai and ruled that the aviation regulator can take necessary action.

How the turbulence began

The pilot trouble at Akasa started with 19 resignations coming in by the end of July. So far, a total of 43 pilots have quit without serving the mandatory notice period, which was part of the company’s agreement and as per DGCA rules. As per the Civil Aviation Requirements (CAR) 2017, the captains are required to serve a 12-month notice period, while the first officers must serve a six-month notice.

Akasa Air requested intervention from the aviation regulator and the Ministry of Civil Aviation in August. The two bodies refused to intervene as the rule has been challenged by multiple pilot unions and the issue is currently pending in the Supreme Court.

“The parties need to sort it out among themselves as we can’t intervene until the court decides on the validity of the rule,” a senior DGCA official had told ET.

The airline also sent a letter to the Bureau of Civil Aviation, claiming that the pilots who resigned without serving their notice period still possessed their Aerodrome Entry Permits (AEPs) and made no indication that they would be willing to return them. The company, SNV Aviation Pvt Ltd, requested the said authority to add these pilots to its “Stop-list” for breaking AEP norms, claiming that the pilots’ continuing possession of the licences was unlawful.

Did Air India Express make Akasa Air’s blood run cold?

Low-cost airline Akasa Air accused Air India Express of poaching its Boeing Max 737 pilots, after which the airline sent legal notices in August to 19 pilots who joined the Tata-owned airline before they completed a notice period of six months, ET reported. Senior executives of Akasa Air, including chief executive Vinay Dube, approached the DGCA, saying that hiring of their pilots by Air India Express was in violation of the aviation regulator’s norms and was hurting their operations.

Air India Express, however, has refuted the allegations, claiming that pilots who were hired from Akasa had paid the necessary bond amount of up to Rs 50 lakh, which covered their training expenses. Less than 10 per cent of Air India’s fresh hires are from Akasa, while bulk of the appointments were through internal upgrades and transfers and hiring of fresh licence holders and former military pilots, an Air India Express executive told ET.

Since both are no-frill airlines and operate the Boeing 737 Max aircraft, while also having similar training and procedure, it becomes easier to hire from each other.

“Choice of multiple bases, a flexible work pattern and an opportunity to operate widebody aircraft and legacy of the Tata Group are attracting pilots to work for the airline,” a spokesperson for the Tata-owned airline had said.

Both the airlines decided to move court after mediation efforts failed.

Akasa Air had filed a writ petition against the DGCA in the Delhi High Court, after the regulator had refused to intervene in the matter. The court on September 27 held that the aviation watchdog can act against the non-compliant pilots under CAR rule. The court said that there are no restrictions on the DGCA for taking necessary action in this case.

Akasa Air left hung out to dry by pilots?

Akasa Air was forced to abruptly cancel and reschedule a number of flights as the pilots left, causing the company financial and reputational loss. The low-cost airline cancelled up to 632 flights in August, and 24 flights each day in September.

Amid pilot resignations, Akasa’s market share slipped to 4.2% in August from 5.2% a month earlier. In August and July, it carried 5,27,000 and 6,24,000 passengers, respectively.

CEO Dube said in an internal memoon September 20, “When a small set of pilots abandoned their duties and left without serving their mandatory contractual notice period, it forced a disruption of flights between July and September, necessitating last-minute cancellations.”

The company said it has rationalised its network in the last 30 days.

As remedial measures, the airline also hiked the salaries of the pilots twice in two months. Beginning in October, Akasa increased pilot pay by an average of 60%; captains will now start at Rs 4.5 lakh per month and first officers at Rs 1.8 lakh. Currently, the amounts are Rs 2.79 lakh and Rs. 1.11 lakh, respectively.

Further, pay may be increased depending on experience and flight hours. A captain can make Rs 8 lakh, or roughly 28% more than Rs 6.25 lakh presently, if they work the maximum of 70 hours per month.

What the pilots say

Akasa Air’s alteration of the pay system, according to pilots who have quit, violated contracts. They claim the airline violated contractual agreement by altering salary structure in June when it reduced the payment to Rs 7,500 from Rs 10,000 for every hour flown by a pilot beyond the monthly quota of 40 hours.

The airline moved the Bombay High Court against a set of pilots and also sought monetary compensation of Rs 21 crore from six pilots which is inclusive of the cost of training and reputational damage.

Five of the six pilots argued that the suit cannot be proceeded with in the city as they do not reside here, thus raising the issue of jurisdiction. But the court on September 27 allowed Akasa Air to continue with the suit in Mumbai.

CEO to settle at ‘low market share’

In an internal memo to its employees, CEO Dube said that the airline is flying less and will give up market share as a temporary measure to ensure it runs a reliable operation. The CEO told the employees that while a shortage of pilots has forced it to cut flights, they should not be alarmed about it as it was a short-term measure.

“A shortage of pilots is an issue that the airline industry has faced for decades. We are prepared for unforeseen circumstances and have contingency measures in place. As of today, we have enough pilots who are at various phases of their training to operate over 30 aircraft,” Dube wrote in a note, reviewed by ET.

As for the future of the airline, Dube’s email mentioned that the company is on track to announce a new “three-digit” plane order before the end of the year. With the count of aircraft in its fleet reaching 20 in September, the low-cost airline was granted permission to fly on international routes. With its first destination in the Middle East countries, the airline is likely to start international flights by December.

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Nifty may bounce back from 19,500 level but won’t sustain above 19,900-20,000: Aamar Singh Deo

by economictimes.indiatimes.com Leave a Comment

Synopsis

Nifty is facing a crucial support zone at 19,500-19,600. While there may be a bounce back, it is likely to be limited and not sustain above the 19,900, 20,000 level due to selling pressure. The Bank Nifty is also seeing similar patterns of selling pressure and is technically weaker than the Nifty. Additionally, the FMCG and IT sectors are facing consolidation and lack of upside momentum.

Aamar Singh Deo , Senior Vice President – Equity, Commodity & Currency, Angel One , says “for Nifty right now, 19,500-19,600 is a crucial support zone, from where we could expect some bounce back. But the bounce back is likely to be subdued and we do not see that sustaining above the 19,900, 20,000 level because that was the earlier record high which the market had respected and then the market took off post that level in the first week of September. So, clearly there is some sort of selling pressure .”

How are you looking at markets? A wee bit of weakness coming in and 19600 is starting to become visible again.
The markets have been witnessing some selloff at higher levels backed by global cues. The crude oil prices have been sustaining above the $90 mark and that is a cause of concern because that would put up a roadblock for any rate cut by central banks in the near future.

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The turmoil in the Chinese real estate sector is also having an impact. Our markets were anyway ripe for some sort of selling in the largecaps because be it Reliance , be it HDFC or ICICI, we have seen some selling pressure being built there. Technically, there were clear signs of a decline in momentum post the record highs that were made.

For Nifty right now, 19,500-19,600 is a crucial support zone, from where we could expect some bounce back. But the bounce back is likely to be subdued and we do not see that sustaining above the 19,900, 20,000 level because that was the earlier record high which the market had respected and then the market took off post that level in the first week of September. So, clearly there is some sort of selling pressure.

Also, on the open interest side, we have seen some sort of short build-up taking place. That tells us that there would be some selling pressure as far as Bank Nifty is concerned. In Bank Nifty also, we are seeing similar patterns. Bank Nifty has got strong support coming out on the 44,000 levels with upside resistance at around the 45,000-45,200 levels. Technically, Bank Nifty is on a weaker wicket compared to Nifty. That needs to be taken into account. We would say that in Bank Nifty, we have got a double top formation and in Nifty, we are seeing some sort of consolidation . But one needs to be slightly cautious. The silver lining is we do not see much of an upside or spike in the India VIX.

Nifty FMCG is languishing in trade today. It is nine-tenths of a percent lower and Nifty IT is down 1% plus. Now, this is a dichotomy because on the one hand, FMCG is a proxy for the domestic consumption story playing out. IT, of course, is under pressure on the back of global cues. Do you expect continued pressure on some of these sectoral indices?
Yes, I would. Nifty FMCG had a dream run. Over the last six to eight weeks, we have seen some sort of consolidation. The long-term trend still remains positive but the intermediate term trend, the short-term trend points toward more consolidation. There is a clear lack of upside momentum. Having said that, most of the FMCG stocks are likely to trade in a consolidation zone. We could see some sort of profit booking as well.

As far as Nifty FMCG is concerned, a very crucial support zone is around the 50,000 levels, whereas again, on the upside, resistance would be around 52,200. So it is more of a consolidation for Nifty FMCG.

Talking about IT, I would say even the long-term charts are not very bullish, meaning they are positive but they do not really inspire that much confidence. Some of the IT stocks would perform better but in largecaps, till the time we do see Infosys and TCS really firing, there could be some sort of consolidation as well.

How do you look at the broader markets because those have been on a tear this year? You seem to suggest that the benchmark indices are going to be under pressure. How do you view the broader markets, maybe the midcaps and the smallcaps?
Talking about the smallcaps, the market structure is completely different compared with largecaps or Nifty. Here the momentum is very strong. We have seen some sort of consolidation in the smallcap index. Still, it would be too early to say that there is a trend change or a top has been made and that is something of very great importance.

Among the midcaps, so the Nifty Mid Cap is also very strong technically on the chart. One of the technical indicators points towards overheated markets. What it effectively means is that the upside is likely to meet with some sort of resistance because investors would also be looking at the risk reward ratio and the smart money would definitely look at how the risk reward ratio plays out, whether it is a good time to enter or waiting for a correction.

But if you ask me, as far as the structure is concerned, midcaps and largecaps continue to be very strong technically on the charts. In the short term, we are seeing some sort of consolidation which effectively means that there could be some sort of correction or consolidation but there is no trend change from a medium or long term perspective.

CE Infosystem is buzzing away in trade. Anything on the technical front that is looking interesting for something like this?
The stock is trading at record highs and very strong technically on the charts. And what we have been witnessing in the last couple of days is that the volume has increased significantly. That is significantly higher because this sort of volume was once witnessed on 14th of July and post that, we are seeing extreme high volume. This is one stock which is quite strong on the charts. Technically, it is around 2030 levels odd. The stock has more than doubled since April and one needs to be cautious here. But the trend continues to be positive for the stock.

What are your top picks? Anything from the PSU Banks?
I would say we have been bullish on PSU banks for quite some time and they are still not showing any signs of decline in momentum. So one stock one can look at is UCO Bank . It is currently priced around Rs 44-45. It is trading at significant highs. So this is one stock. Technically, the best part is that the structure of most of the PSU banks continue to be very strong across timeframes. So that is a very strong aspect.

Also, we have seen some significant volumes built up over the last couple of weeks of PSU Banks. One can buy UCO Bank at around current levels with a stop loss of Rs 41.30 and a target of Rs 53 on the upside. The other stock to buy from the PSU space is BHEL . The stock rallied towards 150. Currently, it is around 130. It is very strong on the charts. Short term, yes, we are seeing some sort of consolidation. This consolidation could last. That could be a buying opportunity here. So anywhere around the current levels, Rs 128-130 is a good buying opportunity with a stop loss of Rs 121 and a target of Rs 145 on the upside.

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Cred launches vehicle management platform Garage, makes first move into motor insurance distribution

by economictimes.indiatimes.com Leave a Comment

Synopsis

Fintech startup Cred has launched a new platform called Garage, which aims to help users with vehicle management tasks such as renewing car insurance and recharging FASTags. Garage will offer users a single dashboard for roadside assistance, managing documentation, and providing insights on vehicle spends.

Fintech startup Cred has entered the vehicle management space and launched a new platform, called Garage , through which it will seek to help users renew their car insurance , and recharge FASTags, among other activities.

Through Garage, Cred is looking to offer users a single dashboard that will allow them to access a round-the-clock concierge service for roadside assistance, help them manage documentation, including their driver’s licence and registration certificate. It will also provide insights on their vehicle spends.

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Garage will also hold maintenance records, performance insights, and track fuel spends to help users tune their vehicle usage on the basis of these insights.

Laying a foundation for insurance distribution
According to at least two people in the know, Cred’s move towards vehicle management is also aimed at providing a strong car insurance distribution platform for its financial partners, as the fintech looks to open newer revenue streams.

— kunalb11 (@kunalb11)

Collecting data from users on their vehicles will allow it to provide a more premium data set to insurance partners.

“As expected from Cred, members will also enjoy rewards, offers, and deals across transactions. Members can also renew motor insurance (through the platform) and get member-exclusive perks,” the company said in a press statement.

Today, Cred already acts as a credit distribution platform for its lending partners and hinges its differentiation on high credit score customers.

Taking on Park+
It will also be taking the fight to Peak XV and Matrix-backed Park+, as the fintech looks to provide granular data on parked cars in an easy-to-read dashboard.

Further, Cred has been pushing to ensure stickiness on its platform, diversifying from just offering credit card bill payments, and has launched newer features such as the Unified Payments Interface (UPI) on its platform in recent months. Garage is another effort by the company to boost user stickiness as it looks to offer new financial products to its user base.

Cred did not directly respond to ET’s queries around its car insurance distribution plans.

“While cars are an emotional asset for Indians, ownership is complex, time-consuming, and high-friction, with a number of tasks that need to be addressed regularly, such as paying challans, renewing insurance, and getting the car serviced,” the company said in response to ET’s queries. “There is a significant overlap between unique credit card holders and car owners—both belonging to the top 10% of high-spending individuals with higher disposable income.”

The Garage platform will have DigiLocker integration, which will allow users to access essential documents such as their driver’s licence, registration certificate, and insurance papers.

The platform is also expected to provide reminders to users for essential tasks such as pollution checks, emission tests, and insurance renewals to ensure their vehicle stays in mint condition.

Cred will roll out Garage to its entire user base starting Thursday. The service will be housed on its main app.

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Increased monthly GST collections mainly on account of higher compliance: CBIC chief

by economictimes.indiatimes.com Leave a Comment

Synopsis

The Goods and Services Tax (GST) collection was Rs 1.87 lakh crore in April and in the first four months of the current fiscal, the collections have averaged Rs 1.67 lakh crore.

CBIC chief Sanjay Kumar Agarwal on Thursday said increased monthly GST collections are mainly on account of higher compliance, and the GST Council’s decision to tighten return filing and registration process would help reduce fake ITC claims in evasion prone sectors, including iron and steel. Agarwal said the Central Board of Indirect Taxes and Customs (CBIC) has received suggestions regarding streamlining tax rates in evasion-prone sectors and all that is being discussed.

The Goods and Services Tax (GST) collection was Rs 1.87 lakh crore in April and in the first four months of the current fiscal, the collections have averaged Rs 1.67 lakh crore.

“The buoyancy of revenue is 1.43 of nominal GDP growth meaning thereby revenue collection is not entirely on account of growth in GDP, but a major contribution is made by increased compliance level,” the CBIC chief said at the Ficci Cascade event here.

Tax buoyancy explains the relationship between changes in government tax revenue growth and changes in GDP.

To enhance compliance, the department has taken a soft approach of nudging taxpayers for timely and accurate filing of returns and selecting taxpayers for scrutiny and audit by risk analysis.

“Less than 1 per cent of taxpayers are selected for scrutiny by way of audit based on risk behaviour analysis,” Agarwal said.

Agarwal said the government is taking all possible measures to encourage tax compliance and dissuade fraudsters from entering the GST system.

“The recent decisions in successive council meetings to make changes in return filing are in that direction so that menace of fake ITC can be curbed,” he said, adding that many sectors, like that of iron and steel, are impacted by the menace of fake input tax credit to a large extent.

Agarwal said that the solution to deal with fake ITC generation is quite complex and the department has received various suggestions regarding rates.

“It is being discussed. It’s not just iron and steel but other sectors also,” he said, adding that the GST Council’s recent decision on the return filing and registration process would help in solving the problem of fake ITC and fake businesses.

In June, CBIC introduced validation and risk rating for GST registrations, as it looks to curb fake entities issuing fake bills just to claim ITC benefits and defraud the exchequer.

In a two-month-long special drive to detect fake registration, the CBIC officers have identified over 9,000 bogus entities and detected about Rs 11,000 crore worth of GST. Recovery of over Rs 45 crore was made.

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