IMF cuts India’s growth HIGHLIGHTS: India’s growth projection revised to 6.1 per cent in 2019

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Updated:Oct 15, 2019 7:14:52 pm

The International Monetary Fund (IMF) on Tuesday cut India's GDP growth projection for the year 2019 to 6.1 per cent, which is 1.2 per cent down from its April projections.

trade, export, import, balance of trade, trade deficit, current account gap, US-China trade war

The International Monetary Fund (IMF) on Tuesday cut India’s GDP growth projection for the year 2019 to 6.1 per cent, which is 1.2 per cent down from its April projections. The global institution in April said India will grow at 7.3 per cent in 2019. However, three months later it projected a slower growth rate for India in 2019, a downward revision of 0.3 per cent. As against India’s real growth rate of 6.8 per cent in 2018, the IMF in its latest World Economic Outlook projected India’s growth rate at 6.1 per cent in 2019 and noted that the Indian economy is expected to pick up the next year at 7.0 per cent in 2020.

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Highlights

    19:14 (IST)15 Oct 2019
    Trade deficit decreases in September

    The trade deficit in September decreased at $10.86 billion with exports at $26.03 billion and imports amounting to $36.89 billion. The government released the trade data for September on Tuesday late evening. India's trade deficit narrowed to $13.45 billion in August 2019 from $17.92 billion in the same month last year and below market expectations of $13.60 billion. The exports fell 6.05 per cent to $26.13 billion, due mainly to a 12.29 per cent slump in sales of gems and jewellery. On the other side, low demand in the economy has pulled down the imports. The imports in India tumbled 13.45 percent from a year earlier to $39.58 billion in August 2019, as purchases fell for coal, coke & briquettes (-23.75 percent), organic & inorganic chemicals (-14.95 percent), petroleum, crude & products (-8.90 percent), machinery, electrical & non-electrical (-8.80 percent) and electronic goods (-4.12 percent).

    19:04 (IST)15 Oct 2019
    IMF on cyclical weakness

    In its report, the IMF said that in India, monetary policy and broad-based structural reforms should be used to address cyclical weakness and strengthen confidence. A credible fiscal consolidation path is needed to bring down India's elevated public debt over the medium term.

    19:00 (IST)15 Oct 2019
    IMF on slowdown

    IMF says that momentum in manufacturing activity has weakened to levels not seen since global financial crisis.

    18:58 (IST)15 Oct 2019
    IMF on hiring reforms

    Reforms to hiring and dismissal regulations would help incentivize job creation and absorb the country's large demographic dividend. Land reforms should also be enhanced to encourage and expedite infrastructure development, the IMF said.

    18:52 (IST)15 Oct 2019
    China to grow at 6.1% in 2019

    China, whose GDP grew at 6.6 per cent in 2018, is now projected to grow at 6.1 per cent in 2019 and 5.8 per cent in 2020, IMF said.

    18:49 (IST)15 Oct 2019
    Growth will be supported by the lagged effects of monetary policy easing

    "Growth will be supported by the lagged effects of monetary policy easing, a reduction in corporate income tax rates, recent measures to address corporate and environmental regulatory uncertainty, and government programs to support rural consumption,” the IMF said.

    18:46 (IST)15 Oct 2019
    IMF revises growth projections

    On Sunday, the World Bank in its latest edition of the South Asia Economic Focus said India's growth rate is projected to fall to 6 per cent in 2019 from 6.9 per cent of 2018.

    18:41 (IST)15 Oct 2019
    IMF cuts India's growth projections

    The IMF on Tuesday slashed India's GDP growth projection for the year 2019 to 6.1 per cent, which is 1.2 per cent down from its April projections.The International Monetary Fund (IMF) in April said India will grow at 7.3 per cent in 2019. However, three months later it projected a slower growth rate for India in 2019, a downward revision of 0.3 per cent.

    18:28 (IST)15 Oct 2019
    Imports fell in August

    The imports in India tumbled 13.45 percent from a year earlier to USD 39.58 billion in August 2019, as purchases fell for coal, coke & briquettes (-23.75 percent), organic & inorganic chemicals (-14.95 percent), petroleum, crude & products (-8.90 percent), machinery, electrical & non-electrical (-8.80 percent) and electronic goods (-4.12 percent). 

    18:20 (IST)15 Oct 2019
    Trade deficit in August

    India's trade deficit narrowed to $13.45 billion in August from $17.92 billion in the same month last year and below market expectations of $13.60 billion.

    17:59 (IST)15 Oct 2019
    What is important to take credit? Requirement or low-interest rate

    Businesses run on credit and its crisis slows down the entire operation. The contraction in the credit growth despite the availability of liquidity with the banks also indicates the slump in demand from the businesses and the theory that the credit will be taken when there will be a requirement, not when the interest rates are comparatively lesser.

    17:50 (IST)15 Oct 2019
    Credit growth in export credit contracts by 15.6 per cent

    Trade is an area that has supposedly suffered the maximum hit with the credit growth contracting by 11.8 per cent in the wholesale trade; and 15.6 per cent in the export credit. The export credit empowers the exporters to export more to get maximum benefits but the contraction here may further pull down India’s trade. “The government should work at facilitating export credit to the exporters and faster processing of the GST returns to leave more cash in the hands of exporters,” Sharad Kumar Saraf, President, FIEO, said Financial Express Online recently.   Click here to know more: https://www.financialexpress.com/economy/credit-to-industry-services-priority-sector-contract-despite-govts-attractive-measures/1735866/

    17:45 (IST)15 Oct 2019
    Trade declines amid global slowdown

    Imports in India fell drastically in August, taking cues from the demand crisis. The imports in India tumbled 13.45 percent from a year earlier to USD 39.58 billion in August 2019, as purchases fell for coal, coke & briquettes (-23.75 percent), organic & inorganic chemicals (-14.95 percent), petroleum, crude & products (-8.90 percent), machinery, electrical & non-electrical (-8.80 percent) and electronic goods (-4.12 percent). 

    16:51 (IST)15 Oct 2019
    Wipro Q2 profit up at Rs 2,562 crore, beats street estimates; key figures in a nutshell

    IT major Wipro on Tuesday posted 35 per cent rise to Rs 2,552 crore in the second quarter of the ongoing fiscal as against compared with 1,889 crore in the corresponding period of the last year. The software exporter recorded better-than-expected results amid global spending squeeze among its clients. Analysts on an average were expecting the company to earn profit of Rs 2, 273 crore, according to Refinitiv data. The results come days after larger rival Tata Consultancy Services quarterly profit missed expectations. Infosys only managed to meet estimates. The revenue stood at Rs 15,125.6 crore for the quarter, marking a rise of 2.78 per cent compared to Rs 14,716.10 crore the previous quarter.

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    15:43 (IST)15 Oct 2019
    BSE live: Sensex ends 291 points higher, Nifty above 11,400; Maruti Suzuki, VEDL top gainers

    The headline indices Sensex and Nifty extended ended higher on Tuesday, led by a rally in financial heavyweights. The Sensex closed 292 points higher at 38,5096, while the Nifty ended above the 11,400-mark. VEDL, ONGC, Maruti Suzuki were among the biggest Sensex gainers, surging up to 4%. After its blockbuster listing yesterday, railway PSU IRTC shares retained gains on Tuesday. IRCTC shares closed at 1.64% down at 716.65. A look at LIVE Sensex heatmap.

    15:32 (IST)15 Oct 2019
    IOC to raise Rs 3000 crores via rupee denominated bond issue

    Indian Oil Corp (IOC), the nation’s biggest oil firm, plans to rais?e Rs 3,000 crore in rupee borrowings this month to meet its general corporate financing needs, IOC Director (Finance) Sandeep Kumar Gupta said on Tuesday. “We plan to raise through a rupee denominated bonds issue up to Rs 3,000 crore. A similar amount may be raised later in the financial year,” he said here. The bond issue will be of Rs 1,000 crore with a greenshoe option of another Rs 2,000 crore, he said and added that “we may retain or not retain over-subscription of up to Rs 2,000 crore.” The bond issue will be of 10 year tenure. IOC plans to use the money raised though the bond issue for general corporate financing, he said adding the company had a borrowing of Rs 81,000 crore at the end of September quarter. The company is aggressively expanding refining and petrochemical capacity and laying infrastructure to meet rising energy demand in the country. “We had a planned capital spending of Rs 25,000 crore during current fiscal.

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    15:19 (IST)15 Oct 2019
    Economic slowdown cyclic in nature; right time to invest in India: Piyush Goyal

    Commerce and Industry Minister Piyush Goyal on Tuesday said that the recent economic slowdown is a cyclic structural adjustment, and it is the right time to invest in India before growth bounces back. Admitting that the country’s economic growth has slowed down in past two quarters (January-March and April-June in 2019) to a six-year low of 5 per cent, Goyal said that India is no longer the fastest-growing major economy. “India, being an economy with huge opportunities, could do well without this kind of a slowdown… Our economy is like any other economy in the world… challenges have grown (in recent times),” Goyal said during a panel discussion at India Energy Forum CERAWeek here. He further said, “We had a pretty good run for almost four to five year before the last two quarters. It (the slowdown) is rightsizing of certain sectors or opportunities in different areas.”

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    14:55 (IST)15 Oct 2019
    Jio says TRAI’s IUC review will harm users, punish efficient telcos, reward defaulters

    Terming TRAI’s review of call connect charges “retrograde”, Reliance Jio has said the regulator’s consultation paper is neither warranted nor sustainable and that retention of such charges will harm subscribers and punish efficient operators. Jio alleged that any deferment of sunset clause for inter-operator termination charges will end up rewarding “designed defaulters” who have deliberately stayed away from new and efficient technologies. Jio has shot off a letter to TRAI saying the present Consultation Paper “subsidises and incentivises the telecom service providers who, by design and astute planning, do not want to shift to IP based technology”. Jio has questioned TRAI’s jurisdiction and reasons to tinker with the original schedule for implementation of zero termination charge regime from January 1, 2020.

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    14:44 (IST)15 Oct 2019
    Warehousing space sees $500 million investment since 2017 as demand rises post GST: CBRE

    The industrial and logistic segment has attracted USD 500 million (about Rs 3,500 crore) investment since 2017, as demand for quality warehousing space is growing rapidly post the implementation of GST, property consultant CBRE said on Tuesday. In its report, the consultant highlighted that several policies (both proposed and implemented), along with the grant of infrastructure status to the logistics sector, led to more than USD 500 million being invested in acquiring industrial and logistics assets in India during 2017-H1 2019. In its survey of warehousing clients post GST, CBRE found that almost 70 per cent of respondents indicated an improvement in ease of doing business mainly on account of e-way billing, which has removed a lot of bottlenecks in cargo storage and transport processes.

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    14:18 (IST)15 Oct 2019
    SBI Recruitment 2019: Multiple posts on offer with salary upto Rs 15 lakh | Check details

    SBI Recruitment 2019: The State Bank of India (SBI) has invited candidates to apply for a number of posts at sbi.co.in. Candidates interested in the posts on offer can visit the official website of the bank now and fill the application form. It is to be noted that the application process started today and candidates need to fill the form on or before the last date, i.e November 6, 2019. The applications have been invited for the selection of candidates for appointment in the below mentioned Specialist Cadre Officer posts on regular/ contract basis. Interested candidates can go through the below mentioned information nad then fill the application form on the official website.

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    14:07 (IST)15 Oct 2019
    ISRO Recruitment 2019: Indian Space agency invites application for multiple posts | Check details at isro.gov.in

    The Indian Space Research Organisation (ISRO) has invited application from interetsed and eligible candidates at isro.gov.in. Candidates can visit the official website of ISRO now to fill the application form before the link for the same deactivates. The applications have been invited for Engineer (LPSC Unit) posts and the last date to fill the offline application form is October 25, 2019. Candidates can download the form from the official website of ISRO and then fill the same to take part in the recruitment process. Candidates can go through the details mentioned below to know more.

    Check here

    13:58 (IST)15 Oct 2019
    PMC Bank crisis: Ex-Jet Airways employee with Rs 90 lakh savings in troubled bank dies of heart attack

    A former employee of the now shut Jet Airways, who had savings of nearly Rs 90 lakh in the crisis-riden Punjab and Maharashtra Cooperative Bank, died after suffering a heart attack soon after he attended a protest in Mumbai. According to reports, Sanjay Gulati, a resident of Mumbai’s Oshiwara, attended a protest against PMC Bank at the Killa Court where the prime accused in the PMC Bank fraud were produced on Monday afternoon. After returning home, he asked his wife for food. Gulati, 51, suffered a heart attack while having his food. He was rushed to a hospital nearby but doctors declared him ‘brought dead’.

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    13:44 (IST)15 Oct 2019
    Small business listings: Will SME exchanges continue to outshine main board this Diwali

    Despite the MSME sector assiduously acting as the bulwark for the Indian economic structure, MSMEs continue to lack access to timely and adequate finance at a reasonable cost, which is essential for its growth. RBI through its Expert Committee Report (2019) has estimated that the overall credit gap in the MSME sector currently stands in the range of Rs 20-25 trillion. To bridge this, SMEs have been raising funds by publicly listing their equity on stock exchanges devoted to SMEs. SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, permits an entity to make an IPO on dedicated SME Exchanges if its post-issue paid-up capital is less than or equal to Rs 10 crore. Moreover, an entity with a post-issue paid-up capital above Rs 10 crore but below Rs 25 crore has the option to list on the main board or the SME Exchange. 

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    12:59 (IST)15 Oct 2019
    Missed IRCTC's blockbuster IPO? Wait before you jump in to buy this railway PSU stock

    While investors maybe ruing the lost opportunity, analysts caution against jumping in to buy at current levels. "I do not believe that investors need to rush in to buy. The ideal strategy will be to wait out for some time, watch incoming results and then invest," investment advisor Sandip Sabharwal told Financial Express Online. IRCTC shares are trading at Rs 719.60 on BSE, or more than 2.25 times the issue price of Rs 320. According to Astha Jain, Senior Analyst at HEM Securities said that retail investors should not buy at current levels, and look to enter IRCTC shares around Rs 400-450 level. "Given its robust profitability and debt-free status, IRCTC is a good bet for the long-term," Astha Jain told Financial Express Online.

    12:01 (IST)15 Oct 2019
    OPINION: BPCL disinvestment: Will the buck stop with Indian Oil?

    The Modi government’s plan to privatise BPCL hasn’t received an enthusiastic response from prospective buyers. News reports suggest that Mukesh Ambani-led Reliance Industries is unlikely to bid for India’s second largest fuel retailer. Apart from the UK-based BP that gave a measured response to the sale offer, no international oil company has expressed interest in buying BPCL after a group of secretaries approved the sale of the government’s 53.29 per cent stake last month. If the government is unable to find a buyer, the onus to buy BPCL could fall on Indian Oil, the country’s largest fuel retailer. The government did not issue a denial when a newspaper reported last month that the Prime Minister’s Office discussed the possibility of merging Indian Oil and BPCL at a meeting with officials of the department of economic affairs and the ministry of petroleum and natural gas.

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    11:51 (IST)15 Oct 2019
    Ayushman Bharat: Over 50 lakh citizens benefited from free treatment in one year, says PM Modi

    Prime Minister Narendra Modi on Tuesday highlighted the progress made by the government’s flagship Ayushman Bharat programme under which 50 lakh beneficiaries have been treated free of cost. He described it as an “important milestone” towards a healthy India. “It would make every Indian proud that in a year, over 50 lakh citizens have benefited from free of cost treatment thanks to Ayushman Bharat,” he tweeted.

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    11:29 (IST)15 Oct 2019
    HUL remains skeptical about rural demand even after Q2; says, trusts govt to improve agrarian wages

    FMCG major Hindustan Unilever Limited remained sceptical about the revival of rural demand in the near future despite posting a double-digit profit rise on-year. “The near-term outlook for demand especially in rural India remains challenging,” HUL said announcing its Q2 results. However, the company has put hopes in the government to improve rural incomes as the same is likely to spur demand for FMCG companies. Despite the slowdown in Indian consumer goods industry and acknowledging the “short-term challenges”, the British-Dutch company is bullish about the potential of the FMCG segment and said that it is “well-positioned” to leverage the same.

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    11:12 (IST)15 Oct 2019
    Post Office Plan: Double money guaranteed! Turn Rs 50,000 to Rs 1 lakh in 113 months – Here’s how

    The humble post office near you is probably the only place that can guarantee to double your money. While investments in stocks and mutual funds can also double the money, probably in less time, risks associated with them keep small and vulnerable investors away. This is not the case with small savings schemes offered by the Post Office. The investment in the Small Savings Scheme enjoys sovereign guarantee, i.e. the money deposited in small savings schemes will be returned to the investor by the Government in case of default. So, even if the post office shuts down, the investor would not suffer any loss.

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    11:09 (IST)15 Oct 2019
    BPCL disinvestment to be cleared in 2 weeks; Cabinet puts stake sale in 5 PSUs on fast track

    The Union Cabinet will approve the strategic disinvestment of five PSUs, including Bharat Petroleum (BPCL), as well as a proposal to bring down direct government holding in PSUs to below 51%, in the next two weeks. This would serve as a booster for efforts to garner the bulk of the budgeted `1.05-lakh-crore disinvestment receipts from privatisation and exchange traded funds (ETFs). While strategic disinvestment and ETFs would contribute the most to achieve the disinvestment target this year, mobilisations from initial public offers (IPOs), buybacks, offer for sales and asset monetisation would be minimal this year, official sources said.

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    10:47 (IST)15 Oct 2019
    IRCTC shares extend gains after blockbuster listing

    After its blockbuster listing yesterday, railway PSU IRTC shares exteded gains on Tuesday morning. IRCTC stock price was quoting at Rs 748.90 on BSE, 138% higher than the issue price of Rs 320. Yesterday, Indian Railway Catering and Tourism Corporation (IRCTC) listed at Rs 644 on the BSE, more than doubling investor wealth since its IPO. After the stellar listing, analysts say that investors should not join into the euphoria now.  "I do not believe that Investors need to rush in to buy. The ideal strategy will be to wait out for some time, watch incoming results and then invest," investment advisor Sandip Sabharwal told Financial Express Online.

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    10:25 (IST)15 Oct 2019
    Jet Airways resolution gets new lifeline: Synergy gets more time to finalise plan

    The committee of creditors of Jet Airways on Monday decided to give the Synergy Group, the only entity interested in buying the beleaguered airline, time till November 15 to finalise a resolution plan. The Colombian group is understood to have held discussions with the Bird Group for investment into the ailing airline, sources told FE. Bird provides aviation management and other services in India and abroad. With the additional time given to Synergy, the resolution will likely be pushed to December, sources close to the proceedings said.

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    10:07 (IST)15 Oct 2019
    On fast track: IRCTC shares make stellar debut with 128% listing gains

    Shares of state-owned mini ratna Indian Railway Catering and Tourism Corporation (IRCTC) made a stellar debut on Monday with listing gains of 128%. The stock ended the day at `728, which is more than double its issue price of `320. At closing, the newly-listed company’s market capitalisation stood at `11,658 crore, which makes it more valuable than other leading listed financial companies. This is the best listing in two calendar years, even as five other companies have clocked listing gains over 100%, including Avenue Supermarts, which had jumped 114% on the listing day. IRCTC is a monopoly and provides catering services to Indian Railways, sells tickets online and packaged drinking water.

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    09:54 (IST)15 Oct 2019
    Outreach by banks: Loans of Rs 82,000 cr disbursed in just 9 days, says FM Sitharaman

    Loans to the tune of `81,781 crore were disbursed by the public-sector banks (PSBs) in just nine days through October 9 when the first phase of the outreach programme was organised in various districts, with advances to new customers having made up for as much as `34,342 crore, the finance ministry said on Monday, calling the programme a major success in improving the flow of credit to support economic growth. After a meeting with chiefs of PSBs and top government officials, finance minister Nirmala Sitharaman said the drive saw disbursement to all critical segments of the economy ahead of the Durga Puja festival.

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    09:53 (IST)15 Oct 2019
    Negative outlook: Moody’s downgrades Indiabulls Housing Finance

    Rating agency Moody’s Investors Service on Monday downgraded the corporate family rating (CFR) and the foreign-currency senior secured rating of Indiabulls Housing Finance to B2 from Ba2, citing the company’s ongoing challenges in terms of accessing funds. Moody’s also downgraded Indiabulls’ foreign and local currency senior secured medium-term note (MTN) programme ratings to (P)B2 from (P)Ba2. The outlook on all ratings, where applicable, remains negative, the rating firm said in a statement. This means that Moody’s does not expect the ratings to be upgraded.

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    09:45 (IST)15 Oct 2019
    Gold prices steady ahead of crucial Brexit talks

    Gold prices held steady below the $1,500 per ounce level on Tuesday as markets braced for talks between Britain and the European Union that will determine how smooth Britain’s departure will be from the trading bloc.  Spot gold were flat at $1,492.83 per ounce, as of 0105 GMT. U.S. gold futures were a shade lower at $1,496.90.

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    09:44 (IST)15 Oct 2019
    In lenders’ interest: VTB Capital secures right to monetise 10.71% stake in Zee Entertainment

    VTB Capital, representing a clutch of lenders to the Essel Group, on Monday said that it had secured the right to potentially monetise the 10.71% stake in Zee Entertainment Enterprises. Last week, VTB Capital had disclosed that the said stake in Zee was pledged with it against a loan facility entered in September 2017. On Monday, VTB Capital said that it had enforced certain security rights granted to lenders in order to protect their interests in accordance with the terms of the financing arrangement.

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    09:43 (IST)15 Oct 2019
    Oil prices extend losses as weak China data compounds US-China trade deal doubts

    Oil prices dropped again on Tuesday after falling heavily in the previous session, as weak Chinese economic data for September added to lingering concerns about the feasibility of the U.S.-China trade deal announced by President Trump late last week. Brent crude futures fell 30 cents, or 0.5%, to $59.067 barrel by 0142 GMT, while U.S. West Texas Intermediate (WTI) crude futures was at $53.38 a barrel, down 21 cents or 0.4%.

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    09:42 (IST)15 Oct 2019
    Paytm close to score $2 billion funds from SoftBank, Ant; valuation to soar to $16 billion

    Paytm is close to scoring $2 billion of new financing from investors including Jack Ma’s Ant Financial and SoftBank Group Corp., a person familiar with the matter said, describing a mega-deal that will raise the temperature in India’s increasingly heated financial payments arena. Rob Citrone’s Discovery Capital Management is also in discussions to join a funding round that values the country’s top online financial services firm at $16 billion, the person said, asking not to be identified talking about a private deal. The funding will be split evenly between equity and debt and is aimed at helping Paytm fend off an influx of rivals, the person said. Talks are in their final stages but the terms could still change, the person added.

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