Financial

Death of a Dictator- Victory for Libyans/ Victory of West

2011-10-20T14:16:00.000-07:00

Today, Libyans are freed from a four long decade of dictatorship of Muammar al -Gaddafi. Year long battle between Gaddafi supporters and rioters along with help of NATO forces (mostly from powerful Western World) came to an end today.

Are Libyans really frustrated by Gaddafi rule, partially may be correct, or it is just another Iraq war fought to have control on Libya oil reserve, which is some what 42 billion barrels, the 9 th largest oil reserve in the world, and the largest reserve in African region.

Libyan people did suffer from atrocities suffered from Gaddafi and his supporter hands, so the death of Gaddafi might brought some reliefs to Libyan people, but will death bring stability in the region and economic prowess to libyans or the natural resources are exploited by west.

The only difference between Libya unrest and Iraq war is , that one is fought by internals with support from outsiders, and other was fought under the banner of War on Terrorism, but both war may have a single motive, getting hold of oil reserves.

Lets wait and see, who will benefit with the Death of Dictator.. Mr Muammar al -Gaddafi

thanks&regards,

Mohit

Greed is Good!!!

2011-01-22T12:35:00.000-08:00

Just watch a movie, Wall Street 2, in the movie the protagonist, Gordon Gekko, played by Michael Douglas. In the movie, to promote his book, Greed is Good, Mr. Gekko mentioned why Greed is good and invincible now.

He said, with each passing day, we are getting greedy and greedy.Now, people want more, which means more money, more car, second house, better education for the children and may be in some case more children also :-).

His point of view is totally correct, just to understand it better and also in the context of emerging markets, esp. India. Today, India is 5th largest economic house in the world, if we go my economist predictions, if it follow annual growth patterns of 10-11% p.a., in 20 years, India will be 3rd largest economy in the world.

But with the great growth patterns, one thing which will be certainly haunting people, esp. poor people(one third of India population live below poverty line) is the high level of inflation. Currently, India's food inflation is hovering around 18%. In a recent cabinet meeting to curb price rice, conducted by India's honorable prime minister, Mr. Manmohan singh, during that meeting one thing came out , the change of eating patterns of Indians. But its not only about the eating patterns, its the whole pattern, they are buying high luxury cars, they are buying houses, I mean multiple houses, and off course bringing up more children. This is where the greed comes and with every changing patterns is getting invincible. These greed may be good for some people, but if you consider lives of other people or environment, its getting worse day by day.
So, lets see how can we make this invincible.

The 'A' mericanization Effect !!

2010-11-07T11:41:00.000-08:00

Last week, I was just taking a stroll at Bahnofstrasse,Zurich. I was literally shocked at looking sooo many people at the street, literally all shops were jam packed by customers, and I can bet that those were real customers and not the window shopping customer like me.

But for some time, I was just thinking why there were so many people, it not sale season and even the Christmas is couple of months, so why people are so crazy in doing shopping.
After scratching my head for couple of minutes, I saw couple of people dressed like ghosts and vampires, and I got my answer, it was a Halloween weekend.

The Halloween is certainly not the European culture and I am 100% sure its certainly not the Swiss culture, so certainly its The 'A'mericanization effect. Every store were with American products, from electronic, fragrances and forgot to mention the Halloween products.

Swiss is known for their secrecy , not Banking in general, but by nature they are quite reserve. But somehow the 'A'mericanization effect invade their secrecy and overcome their reserve nature. But the 'A'meticanization effect is every where, every where people just want to stuck the ipod's in their ear and just want to indulge into the 'A' effect without giving a thought.

I know some of the products or services offered by American businesses are world class, but that effect should be reserve till market place and between trade links. People should not blindly start following the customs and traditions which are not their own, and which only have a economic sense rather than some socio or religious sense.

Lets see how far this 'A'mericanization effect will last.

Thanks & Regards,
Mohit

Is Business Ethics really important for Organization ?

2010-05-13T08:13:00.000-07:00

World Class management schools often have Business Ethics subjects in their curriculum. They often ask their students, the probable future Business leaders, to focus on more on Business relations and ethics.

In short Business Ethics, is as Be true to your clients, maintain their privacy at any cost.
But does companies really follow these basic rules when they really do business with their clients ? From real end scenario, companies often look at their balance sheets profitability rather than business ethics.

Business leaders often give false statements to clients to make them happy, they often make their employees to do task for which they are not entitled for. Often clients information is shared with ad agency and online web agency like in case of Open graph initiative by facebook, a well known Social networking site. They are building their group like anything, but due to monetization their are keeping their business ethics at bay and sharing client information with other members of the online web. Though, in short FB may able to raise its profit books , but in the long run it may lose some edge with its customers.

Ideally, Companies should focus their business on Business Ethics, because that can only help them to sustain in the long run in the business.

Thanks & Regards,
Mohit

Reliance BIG

2010-05-02T08:52:00.000-07:00

BIG Cinema, is one of the flagship company of ADAG, group run my none other than Anil Dhirubhai Ambani. After, the split or Reliance empire, Anil Ambani took over the charge of Reliance Telecommunications. After the charge, Anil Ambani envisioned entertainment as one of the big fortune runner for the group. In order to make his vision real, in 2006, it took a 66% stake in Adlabs films, not only that, to just like his father, he visioned big, he tied with big wigs of Hollywood and Bollywood.

From my opinion, he really tried to own the world's entertainment system, and later on, will try to integrate his telecom business with his entertainment business. Because, certainly in future, it will not the voice which will rule telecom, but the the value added services like entertainment etc. will rule it. Certainly, Reliance BIG cinema, in coming years will really be very BIG.

Thanks & Regards,
Mohit

Greece Meltdown

2010-05-02T08:10:00.000-07:00

Greece,famous for its ancient and rich historical events, is a country in the southeastern Europe.
In recent time, the rise in Greece budget deficit, has raised the doubts among the mind of European Union policymakers, and made the very existence of Euro, a common currency, used by 16 countries of European Union.

Greece national debt is around 300 billion euros, which is much bigger the country's economy. In order, to help Greece and to revive its economy, the EU bigwigs along with International Monetary Fund(IMF), agreed to bailout Greece from this financial and economic crisis. But before providing the helping hand to Greece, they want Greece to reduce its budget deficit to 3 percent of its GDP, which is one of the perquisite to become a member of EU.

Inspite, of facing stiff agitation from its inhabitants, Greece has already tried to bring in some measures to curb its budget deficit. Cut in public employees salaries, raise the taxes on cigarettes and fuel are some of the measures which Greek government is placing into to reduce its budget deficit.

Instead, of just taking measures which are somewhat against the public, Greek government should also try to find out ways about how and where it can generate enough revenue for its people. Tourism is one of the main industry of Greece, but unfortunately, its not the one place which come into tourists mind, Greece, should try to evolve this industry, and try to make make it a front runner, if its come to revenue from tourism. I know, its not that easy to compete against some of the best known nations, but the time of being remain average is over, Greece certainly has to take some drastic measures, in order to cut its budget deficit.

Related articles by Zemanta Thanks & Regards,
Mohit

Is IPL Only Cricket ?

2010-04-25T07:24:00.000-07:00

Indian Premier League, famously known as IPL, is now ever days a BIG DADDY of International Cricket Sports Arena. IPL, just into its 3 year of existence it's a billion dollar sports event.
Developed on the lines of Europe Football league, this subcontinent sports extravaganza has taken everybody by surprise, major investors across the globe are vying their hands to get the grip of IPL.

But where such a money is involved, it controversy cannot be left apart. After, two successful year, the third year of IPL was much more bigger. More money, more team incumbent and more important lines of controversies.

The third IPL year displayed the dark section of the sports league, it showed its not only about sports , players, cheerleaders, or simply entertainment, as marketed by IPL bigwigs BCCI and its Commissioner, Lalit Modi., but its only about money, BIG MONEY. Games are manipulated, TV rights are sold at premium rates, Bookies are involved. The third year took one politician down, multiple tax raids, considering axing IPL commissioner. So, certainly this is not an ordinary Cricket tournament,meant for entertainment, but its a big nexus between, politicians, businessmen, and somewhere underworld also.

Thanks & Regards,
Mohit

Eco Friendly Cars rules 80th International Auto Show at Geneva

2010-03-07T13:50:00.000-08:00

Today, I went to Geneva to see 80th International Auto Show. As expected, the whole auditorium was fully packed. Car lovers of all ages visited the Auto Show, from abled to disabled from old people to new born babies. From mid end brands to high brands covered the Auto Auditorium, from Hyundai, Fiat, Aston Martin, Bentley, you name the brand and the brand is there in the 80th International Auto Show in Geneva, Switzerland.

Eco friendly and hybrid cars rules the Auto Show in Geneva, every other brand in the show come up with the Eco friendly and hybrid car in their kitty. More and more car companies are investing in making their cars eco-friendly, even its appear in their marketing style also. Most of the car manufacturers now even specify the carbon content emitted from their cars. Because this time they knew that, now their customers are getting more environment consciousness, and they will never want to compromise lifestyle with environment degradation. Let's hope that in the next Auto show, they will come up with some additional sales figures of their eco friendly and hybrid cars.

Thanks&Regards,

Mohit

How important is CSR ?

2010-02-21T05:36:00.000-08:00

Corporate Social Responsibility, commonly abbreviated as CSR, is one of the common act which is quite common across Corporate social circle across the globe. More of less every corporate house are involved in every another act of social responsibility. Some are working for poverty alleviation, Forest conservation, wildlife and endangered species protection. The biggest CSR initiative is that of Melinda-Gates foundation, who are working on bringing innovations to health and learning of global community. So, how important is CSR activity for a corporate. I think some time, it can be a marketing stint of some corporate house, in order to build a brand image among the common shareholders, in order to increase their share prices at the bourses. But most of the time, the work done by these corporates are genuine.

Any government around the globe, cannot look into each and every matter which exist in the society, it need volunteers, people, groups who can support them. Corporates are nothing but those volunteers and groups who are providing those helping hand to the government. Corporate consumes resources, so its also their responsibility to give back to the same society what they have consumed. It can be in any form, be it educating less worthy people, or working on save tiger project.

Though with such kind of activity for some time, they might shift from their main line of business, but this is necessary for the proper uplift of the society as a whole.

Thanks&Regards,

Mohit

Another Buzz in the Market

2010-02-11T13:35:00.000-08:00

Amazed by the growing popularity of Facebook and Twitter, Google felt somewhat left out in the race of social networking. In order to compensate the gap and provide a competition to Facebook and Twitter, on tuesday, Google launches one more innovative product call Buzz. Buzz is fully integrated into Gmail, the mail portal of Google. Through, Buzz user can instantly post message their friends, share pics and perform n-number of social networking task. But, though they already have a well known social networking site Orkut, then its very difficult to understand, why they come with an other platform. The reason may be that, instead of offering a separate platform for performing social activities, they wanted to provide an integrated solution, which can easily be merged with their Gmail portal, which is used by 150 million odd customers. But I will say, its an nother Buzz in the Social Networking market, and Google has to be really be innovative, in order to create a massive Buzz, with this Buzz.

Thanks&Regards,

Mohit

2010 : year of financial revival or financial mess

2010-01-09T10:23:00.000-08:00

First of all, I wish everybody a very Happy and Prosperous New Year. 2010, said bye to the first decade of the 21st Century, a decade which was filled with lot of financial downturns and revivals.The decade started itself with Y2K knocking at the doors, everybody in the industry thought that every system which are connected will be doomed, but Y2K surpassed, without creating much waves. But people failed to realize what coming after that, the tech bubble. The 2001-2002 tech bubble took everybody by standstill, and most of the internet startup, even some established brands, were out in the open, filling for bankruptcy.So, start of the decade, itself seen one of the biggest financial debacle.

But as the time moves on, financial stability also props into financial and banking system, but what analyst did not forecast was much bigger bubble. The bubble which did not only tore apart financial and banking stability of one country, but literally affected every country in the globe, in financial community call it as Sub prime Crisis. During these crisis, some of the world's top notch banks went bankrupt within days, which led the whole world economy into doldrums. This financial debacle raised fingers on the financial regulators and their working.

Though, by later half of 2009 things have improved quite a bit, but still its a big question, whether 2010, will be a year of financial revival or will it be again a year of financial mess. Though, people are saying, they have already see a light at the end of the tunnel, so lets wait and watch, how their prediction end.

Thanks&Regards,

Mohit Kumar

Apple Carbon Footprint

2009-11-15T13:25:00.000-08:00

Apple is always known for his environment friendly products, even in one of the Greenpeace forum, apple was praised for its environment friendly products, and how Apple is managing its Carbon footprint.

But from my opinion, this is partially correct. In order to support my argument, just check the Apple Store at Bahnofstrasse, Zurich on Sunday evening. You will be amazed to know that, every electronic and electrical equipment in the store is working 24 hrs. Such kind of electric usage on a sunday, is certainly not an environmental friendly step by Apple Inc.

So, from my opinion Apple should again re-look at its environment friendly strategies, so that it can try to reduce its Carbon footprint, and just like its admired for its innovative products, it should also be admired for its environment friendly strategies.

Thanks&Regards,

Mohit

Business lessons from Lagaan

2009-11-01T13:07:00.000-08:00

Lagaan, an Aamir khan production, was one of the most successful Bollywood movies of the start of the century. Apart from winning numerous accolades, and being India's official Oscar entry, it also teaches some important business lessons.

Lesson1 : Don't be afraid of challenges. Take the challenges in the full spirit, it will certainly give results which are way above expectations.

Lesson2 : In a group of people, one has to step forward to take up the leadership people, and should have the capability to convince people to take up the challenges.

Lesson3 : Never underestimate a people capability, even sometimes weakest of person, is capable of turning the table.

Lesson4 : Believe in your team, because success is not one man show, its due to contribution of each and every member of the team.

Lesson5 : Never under estimate your opponents.

Lesson6 : Keep a close vigil on the team activities, because sometimes, a small distract can ruin the success.

Lesson7 : Keep ample space to your team mates, so that they can come up with their best.

Lesson8 : Never lose hope, because this is the last thing which will certainly bring success.

Lesson9: Sometimes, Miracle do happen.ja

Lesson10 : Celebrate success with your team, as it will motivate the entire team, and help them to set future goals.

Thanks&Regards,

Mohit

Microsoft gears up with Yahoo, against Google

2009-08-16T06:05:00.000-07:00

Microsoft never felt that a 10 year old company will pose a threat to their very existence, and will make them to run for their money. But California based, Search Engine company, Google made them to that, and really posing a big threat to Microsoft monoply.

Since, last year, Microsoft is vying their eye on Yahoo, to combat Google, but somehow the previous valuation did not end as expected. But last month Microsoft announced its partnership with Yahoo, under this partnership, Yahoo and Microsoft search engine, Bing will make their own branding, but Yahoo will use Bing as its internal platform to give search results to consumers. At the same time, Microsoft will pay Yahoo 88% of the revenue it gains from the Yahoo sites.

Though, to some analyst it seems to be very bold move, both from the Microsoft and Yahoo, to take over Search giant, but certainly it will be very difficult to compete with Google in this space, as it already enjoy 67% of all kind of internet search. To move Google from its Search king position will certainly be difficult for the new partners.

Lets wait to see, how this partnership work and how this competition will bring benefit to consumers.

Thanks&Regards,
Mohit

National Health Service (NHS), Obama dream project

2009-08-16T05:27:00.000-07:00

When Barack Obama, took over as the 44th President of United States of America, apart from reviving the Global economy of one of the deep recession they have seen in decades, he also had a dream project, National Health Service(or NHS) which enables free health insurance to everybody in America.

In recent times, Obama is greatly criticized by the opposition which came strongly against this free insurance service to all Americans. They complained that this socialistic behavior will do bad, and not good to already reeling American economy and will certainly hurt the tax payers, as the tax burden will certainly rise on the Tax payers.

I totally agree with the opposition party comments, as there is really no need to provide a free health insurance, they should try to make their economy so strong that every citizen can take care of their health insurance, rather than offering them in free. As its oftenly said, that in life nothing is a free cake. Mr. Obama, should consider this saying, and make every one earn for his/her living.

Thanks&Regards,
Mohit

62nd India's Independence, Challenges ahead.

2009-08-15T02:49:00.000-07:00

India's has travelled a lot ahead, when it gained independence in 1947, from Bristish rule, today India celeberate its 62nd India Independence. From being called as Third world country, or country of Slumdog country, it has made a transformational change and now its among the league of top 20 nations in the World, and possible superpower and fifth largest economy by next decade.
But this figures will certainly be an uphill task for any nation, and in order to achieve these goal its has to change.

Changes which is expected to make India a great nation :
1. Education : Even after 62 years, 40% of India's population is uneducated, this population size is equivalent to population of whole of europe.So, in order to achieve a superpower status, India has to work on its Education programmes.

2. Internal Peace : Before pointing fingures on the troubled neighbour first, India has to maintain first Internal peace, try to resolve issues of North-eastern states, and remove anti-regional activists who are divinding India.

3. Entreprenurship : India should encourage entreprenurship, which certainly helps to people to think out of boxn and enable them to take risk. This also enables them to create employment also.

4. Good ties with Neighbours : India and its neighbours spend a huge amount of money in building weapons, they should sit together and discuss about how to maintain peace in the region. An EU kind of model if implemented in the Asia region, will certainly benefit everybody in the region.

5. Population Control : Though most of the analyst nowever days are saying that India's youth population is really beneficial for the world growth, yeah that is true, but certainly one thing is also true that this population also consume a considerable amount of resources. India really have to put a curb on its population.

I hope this changes will certainly enable India to achieve a great success in the years ahead, and achieve the vision as state by India's ex president Dr. APJ Abdul Kalam.

"A developed India by 2020, or even earlier, is not a dream. It need not be a mere vision in the minds of many Indians. It is a mission we can all take up - and succeed." - A P J Abdul Kalam.

Thanks&Regards,
Mohit

H1NI grips India

2009-08-12T14:54:00.000-07:00

H1N1, popularly known as "Swine flu", grips its eye now on India, especially in Pune. In recent days, 1000 of Swine flu cases are registered in Maharashtra, and arounf 17 odd deaths in few days, with most of them reporting from Pune itself.

The impact of Swine flu with certainly have a negative affect on the Indian economy, which in itself is dealing with number of problems, both natural(drought) and man made(Terrorism). But certainly swine flu will have worse affect on Indian economy.

The sectors which will be affected by Swine flu are :
1. Tourism sector.
2. IT sector.
3. Hospitality sector.
4. Import and Export.
5. Airline.
6. Entertainment.

Though govt. is taking appropriate steps to control spreading the epidemic, or a pandemic as stated by WHO, but still the effort is not enough, the govt. should spread as much awareness as possible to citizens, so that things can be averted before its spread through out the country.

Thanks &Regards,
Mohit

India UUID program

2009-07-25T01:03:00.000-07:00

Last month, Govt. of India roped in Infosys co-chairman Nandan Nilekani to head one of the most prestigious e-gov iniatives Unique Identification program. Under this program the unique id will be provided to every citizen of India.So, in order to run this program in a professional way, India's priminster request Mr. Nilekani to head this prestigious project. Mr. Nilekani without any doubt accepted the offer and step down as the co-chairman of Infosys.

But though India's prime minster Dr Manmohan Singh tried to make this program bureaucratic free, by giving Mr. Nilekani a rank of a Cabinet minister. But this project in itself comes with lot of chalenges. The chalenges which I can identify are :

1. Data collection : India has a population of more than 1 Billion people, spread in rural and urban areas of India, though demographic data is maintained but its never consistent.

2. Data maintenance : Nilekani team has to think how data consistency can be maintained. What will happen when a person is born, when he/she is dead, when somebody submit his/her citizenship, when somebody takes a new Indian Citizenship, what happen in case of dual citizenship? Though there are some dept. who still handle this data, but there are no dept. for other stuff.

3. Forgery : If you have "Juggad", then any thing can be possible in India, from passport, driving license, fake documents anything, so this is the top most uphill task which Nilekani and his team has to take in and how this Jugaad technology can be avoided in this national level presitgious project.

4. Secuirty : Once the data is ready, then this data will be shared to different govt. dept.,but how the govt. can ensure the data security.

Though there are many other challenges which certainly will be coming in the way of Mr. Nilekani when he finally come out with his draft version for this project.

Thanks&Regards,
Mohit

Indian rail budget is out.

2009-07-04T08:26:00.000-07:00

UPA government after winning the General elections with full majority, presented the first railways budget by the current Indian railway minister Mamta Banerjee. According, to Mamta ji, its a budget for the aam aadmi.

The major action items of this budget are :

1. Launch of "ijjat card" at the cost of Rs 25, so that poor people can travel upto 100 km without any hassels.

2. Launch of special double decker AC trains to meet the YUVA generation requirements .

3. Proposal to set up 50 World Class railway stations, which are fully equipped shopping malls, high level of cleanliness and security.

4. Making Tatkal service cheaper and less time consuming.

5. No, change in the passenger and freight charges.

But I think and other people like me certainly think that, how these plans will be implemented. And will Railways ministry provide the same level of revenue margins as during the reign of Mr. Lalu Yadav. How railways ministry can ensure passenger safety and provide sanitation facilities to its passengers.

Thanks&Regards,
Mohit

Air India debacle

2009-07-04T07:08:00.000-07:00

Air India, India's official airline carrier is certainly in a doom state. Last month, it stopped salry of its employees. But the real question is why Air India is a state of debacle, while other Airlinw players in Indian airspace, though not making that much profit, but still performing far better ter than the Indian national carrier.

The reason for a debacle can be :

1. Air India system is surrounded by n numbers of bureaucrat, which are running this organization as a social enterprise rather than a capitalist enterprise.

2. Even in its dismissal economic position, Air India top management still enjoy the free passes not for them but for their entire family. Thus making this institution a debt ridden instituion.

3. Air India, still don't follow any strategic tie ups with other International airlines, thus making them aloof in their business. Look at the other national carrier like Luftansa and Emirates, bith both the carriers are making fablous business.

4. Air India employ more no. of employee per aircraft then any of the airline carrier in the country, which in turn sucking its profits.

I think Air India should bring in top professional to its board, who can try to revive this failing organization.

Thanks&Regards,
Mohit Kumar

Strategy to curb Apple iphone 3G

2009-06-25T13:59:00.000-07:00

Apple iPhone 3G S made a senstational opening last week, kept all the smartphone makers at the bay. But the blog post will not talk about Apple iPhone senstational success, but it will talk about strategies which smartphone company will take over to curb Apple iPhone 3G S success.

1. People says that iPhone is not just a handy, but its something above that. So, mobile makers have to design their cell phones in such a manner so that people can relate it with each other. Easy navigation of cell phone features, multi touch facility.

2. Amalgamation of different features, like, music, video and games.

3. Company should try to make their mobile phones, from resusable and environment friendly material.

4. Company should try to make their cellphone scratch free and much more durable.

5. Just like, Apple iPhone, company should try to provide a free app store, where smartphone users can download different applications.

6. Instant of making proprietary product, company should provide utility where it can interact with different apps. offered by different mobile companies.

7. Cost is one factor where companies can really try hard, if they can provide a product which is comparable in quality as that of iPhone, but much more cost affective, then it can certainly have an edge over iPhone.

Thanks&Regards,
Mohit

Apple made a headstart with iPhone 3G S

2009-06-22T14:44:00.000-07:00

Apple is always known for its staggering design and its outstanding products, it has once again shown its marvellous in design, when it launch Apple iPhone 3G S, a successor og already very successful product iPhone 3G.

Last week Apple launch its newes mobile phone iPhone 3G S in US and European markets, and as predicted, the launch was a runaway hit. According to, Apple sources, Apple iphone 3G S has already sold 1million unit across the globe.

In one of the interviews Apple mentor and CEO Steve Jobs said, "Customers are voting and Apple is winning. With over 50,000 applications available from Apple’s revolutionary App Store, iPhone momentum is stronger than ever.”

iPhone has really revolutionized the way people use smartphone. Lets see, what strategy Apple competitors will follow to counter Apple growing market share.

Thanks&Regards,
Mohit

Iran Unrest-Bad for World Economy

2009-06-21T13:01:00.000-07:00

Recently Iran went for a Presedential election, but unprecedented win by Mahmoud Ahmadinejad created a sudden unrest between the in the region. It leads to clashes between supporters of opposition party and the brutal force controlled by the current President.

But Iran current political unrest will certainly hurt the World economy. Iran is the third largest oil producer in the World and the unrest in the region might affect the oil supply from the region, which put pressure on other oil producing industries to increase the supply and thus result increase in the overall price of the oil, which is is certainly prove harmful to the world economy which is in recession.

Besides, the Iran unrest has already created pain in the neck of UK and USA. Ahmadinejad had clearly given signal to both the foreign economies that, Iran internal matters are their own and nobody's is allowed to interfere in there internal operations. This unrest relationship might proved fatal in the region, and might give US and UK a chance to call a war on Iran. One more war will certainly put World into a much greater recession.

Let's hope this matter be sorted as soon as possible.

Thanks&Regards,
Mohit

Obama protectionist plans for US

2009-06-16T14:08:00.000-07:00

There was a lot of hope among American people and people worldwide, when Obama took over as the 44th US president. As, he took incharge of the most powerful job in the World people were hoping they were relieve them.But, as soon as Obama took up the incharge, he laid out policies, which are totally protectionist in nature.

The first protectionist policies is curbing on outsourcing strategies, and taxing industries and companies which are still supporting offshoring and outsourcing policies.

Obama together with this administration team wants to unveil program which will keep eye on financial and capital markets and check on the financial products which are offered to Consumers.

But one thing Obama and his team should realise that World follow America because of its openess and its anti-protectionist trade policy,and the deep recession and high rate of unemployment exist in US just because of improper regulations of its Financial.

So, instead of making its economy protectionist, it should try to make it more regulated.

Thanks&Regards,
Mohit

Recession proof industries

2009-05-31T07:38:00.000-07:00

Year 2008 is one of the hardest year, it saw one of the biggest fall in the baking and financial industry, and also the biggest failure of Capital markets worldwide. This is the year when global economy felt its biggest recession, which it hadn't seen in decades.

But when the world is grieving under global recession, I want to list down few industry which are purely recession free.

1. Sex Industry : When people lose their jobs, they are more stressful, and sex its always a stress buster. Thus, sex industry is certainly is recession free.

2. Liquor Industry. Just like, Sex industry , Liquor generally helps people to forget their stress for a time being. So, this industry is also recession proof.

3. Pharma Industry : People are more depressed, so they are either ill or they have to take anti depressant drugs. So, during recession pharma industry certainly boom.

4. Media Industry : Media industry certainly have more news during recession time. They have to cover up govt. policies, they have to take interview of Corporate CEO and also of the deprieved layoff workers. Thus, certainly have more work during recession.

5. Govt. Financial Ministry : Offcourse, how can financial industry can be recession, as they during this time, they have an upheaval task to improve financial system and to bring stability in the market.

Thanks&Regards,
Mohit

Bharti Back to Clinch MTN

2009-05-27T14:29:00.000-07:00

It seems that MTN, SA telecom giant is meant to be acquired by an Indian. The whole MTN drama started from last year, first it was India's largest Telecom player, by revenue, Bharti Airtel shown interest in MTN but the deal was finally broken. But things did not end in between, the next offer came of RDAG group MD, Mr. Anil Ambani. But even that effort did not yield positive result, and was broken in between.

But finally after the election in the home country, Bharti again sensed oppurtunity to inlcude MTN into its kitty, and to fullfil its global ambitions plan. Bharti has brought in bankers from Stanchart bank to make the deal and to arrange the money for the deal.

The 23 bn $ worth deal will see both companies, going for both equity sharing and cash dealing. In the end Bharti will shell out 4 bn$ to buy 49% stake in MTN, while MTN like to acquire 36% in Indian telco.

Though just like last time, the deal is facing stiff resistance from shareholders in SA and Bharti has also take in account how things formulate from local telecom perspective, also the power sharing among the top management of current MTN and Bharti.

Thansk&Regards,
Mohit

Task ahead for Singh is King, MS

2009-05-24T13:34:00.000-07:00

Finally, a month long election is over in India, but this time Congress single handedly outperfromed every political party in India. But this time the task will be much difficult for the Manmohan singh and the UPA chairperson Sonia Gandhi. Because, this time its not only a revival of domestic Indian economy but also whole world is looking up at India, and its forthcoming business ploicies.

The upheaval tasks ahead of Singh is King are :
1. Infrastructure Development.
2. Agriculture Reform.
3. Internal and External Security.
4. Talks with Pakistan, and its other neighbour.
5. Disinvestment.
6. FDI policies.
7. Social reforms.
8. Higher Education.
9. Financial Industry Reforms,
10. Capital Market Transparency.

Thanks&Regards,
Mohit

Best Sarcastic statements

2009-05-18T14:40:00.000-07:00

I was going through one of the recent post at knowlege at wharton, and was just going through the comments given by some of the reader of the post.The comments was really very sarcastic and really one of the best sarcastic comments I every came across.

Find below the sarcastic comments by the reader :

1. How Drug Dealers Can Find the Best Spots to Recruit New High School Customers
2. Double Hours, Halve Salaries: Solution for the Crisis without Job Cuts
3. Key Success Factors for Pimps in Latin America: Power, Network and Location
4. Save The Arms Industry: Boosting Demand by Catalyzing Conflict in Sub-Saharan Africa
5. The 10 Best Barely Legal Tricks to Avoid Taxes: Advice from S&P 500 CFOs
6. Make Money By Collecting Money: Best Practices from Bernard Madoff

If you like to read about the post, you can follow below link.
http://knowledge.wharton.upenn.edu/article.cfm?articleid=2239

Thanks&Regards,
Mohit

Obama ostentious tax saving plan

2009-05-06T14:11:00.000-07:00

Barack Obama finally completed his 100 days as US president, apart from making high profile visit to 20 G nations meeting in London, Obama administration did come up with an over ostentious plan of increasing country tax revenue.

In one of his speech, President Obama clearly directed his administration to end tax breaks for American Companies which are outsourcing their work to low cost countries like China, India , Philipines etc. According to Obama this will really help them to increase treasury revenue and also able to increase employment rate in the country Though its really a very ostentious plan by obama to increase tax revenue but will it really help him to meet the goal.

First of nowever days most of the operations of these companies are highly integerated and dependent on each other, so it will be very suprising how these companies will disintegrate their operations and what will the cost of disintegration and who will finally bear it.

Most of these firm operate across the globe and work 24/7 365 days, so at any point of time they have to take help from the people who operate from low cost labour countries like India and China.

Most of the companies which moved their operations to India and China made that decision not only because of tax breaks but because they are able to tap large pool of skilled labour at potentially less cost.

So it may be possible that Obama may able to fullfill his promise but the real question is the operation and economic viability of the companies

Thanks&Regards,
Mohit

Should we believe to analyst words ?

2009-05-04T14:07:00.000-07:00

Analyst are the root or foundation of any sector or business esp. in the banking and finacial industry. Analyst often made some over ambitious predictions and make people to ponder on their analysis. Recent task which worldwide analysts are now taking in is the analysis over the impact of Swine Flu on world economy. Analyst are predicting that if Swine Flu is really a pandemic as marked by WHO, then they can estimate that world economy may shrink by another 2-3 trillion$. But from my point of its a very presumptuous prediction, and things will not be as bad as predicted.

Thanks&Regards,
Mohit Kumar

Cola on wheels

2009-05-03T10:25:00.000-07:00

Corporate lessons are now coming out from boardrooms to the roads, and the first company which shown initiative educating common retailers across India is Coca-Cola. Coca-Cola call this as a global initiative of educating 10 of millions of small kirana holders in the India and its also a promise they want to fullfil.

They call this program as parivartan(change) and it educate small retailers spread across nook and corner of the counrty. The education curriculm of parivartan includes shop layout, basic of financing, importance of discounts, and how and where to display your products?
This initative will certainly put Coca-Cola an edge ahead its major Cola rival Pepsi,

Thanks&Regards,
Mohit

Oppurtunities amongst Swine Flu

2009-04-28T12:37:00.000-07:00

Today, I saw a blog presented by BusinessPundit, the blog covered the sectors or industries, which will benefit from the recent Swine Flu in mexico city (http://www.businesspundit.com/5-companies-industries-benefiting-from-the-swine-flu/).

But apart from the industries listed in BusinessPundit blog, there are certainly few more industries and sector which will benefit from Swine Flu?

1. Research Industry

2. Vegetable Farming

3. Vegi Restaurants

4. NGOs

Thanks&Regards,
Mohit

Social Networks are here to stay..

2009-04-22T14:43:00.000-07:00

Virtualisation is the new buzzword for the coming economic phenomenon. Not only machines wanted to be virtualised, its the human which also wants to be virtualised.

The tremendous growth of Social Networking sites and the Second life are the initial steps which provide human to live life virtually, and connect to different people spread across geographies.

The Web is already filled with plenty of Social Networking sites, like Facebook, Orkut, now a new name is added to that humongous list call as Ning. Ning is a platform which enables a social networker to start it own Social Networking site within itself, thus forming a Social Networks of Networks.

But the real question is how innovators can leverage this concept to different sectors, like Banking, Medicine. Though we have seen some steps where Social Networking is forming a part of Banking industry, but still its a long way to go for the full grasp. That's why I am saying, Social Networking is here to stay..

Thanks&Regards,
Mohit

Satyam handover to TechMahindra

2009-04-13T10:37:00.000-07:00

Once termed as the 4th largest IT company in India, the NASDAQ listed Satyam today finally loss its identity when TechMahindra, a M&M flagship company took controlling stake in Satyam, offered a 58per share, while the nearest bid was laid by Engineering giant L&T, which was Rs46 pershare.

Though TechMahindra won the initial battle of acquiring ailing Software giant, but the revival task will not be that easy.

1. First and foremost task is to improve its international image.

2. Rebuild confidence among its exisiting clients.

3. Retain exisiting talent, and to attract talent from outside.

4. How to get rid of list of liabilities as soon as possible, and make the company operations profitable.

5. How to make best use of its assets so as to reduce operational cost ?

Lets see how Mr. Anand Mahindra and his team will clear up the mess created my the legendary B. Ramalinga Raju.

http://ibnlive.in.com/news/satyam-poses-challenges-says-tech-mahindra/90168-7.html

Thanks&Regards,
Mohit

Germany up for a change..

2009-04-12T11:37:00.000-07:00

Germany one of the europe superpower both in terms of economic and defence, is now up for a change, the change which its always shown relcutant to, but the change which is now necessary to compete against the emerging economies and to stabilize it economic power status.

Germany is always a bellweather in innovation and always a leader filing scientific patents on year on year basis. A good proportion of its economic GDP is spent on research and development centres spread across the country.

But inspite of all these, the change is there to come, and the first and foremost change is the change on the whole eductional system across the country. Germany always followed a long range bound educational system, with 5 years of diploma studies. But its now following the US and UK based educational system, thus breaking its educational system into 3years and 2 years respectively, which actually enables the deployment of educated workforce at very young age.

Besides, its renowned universties which never participate in any kind of rankings are now acitvely participating in the ranking, thus enabling a large pool of international talent pool to look out germany as one of their favourable education option.

Lets see how this change will affect the Germany overall stature in the years to come.

Thanks & Regards,
Mohit

Beware a shoe is coming your way...

2009-04-10T12:06:00.000-07:00

Nowever days politicians are no more concern about the opposition allegations, but somehow they are concern about the size of shoe wear by different personnel attending their meetings.

The first show throwing activity started in Baghdad, when one journlist threw his shoe at then standing U.S. president, Gerorge Bush. But shoe throwing activity did not end over there, but the wave travelled across Indian subcontinent, and over here also, Indians are facing some sort of ameicanization , I can call it as "Shoe Americanization" , and this time Home Minister P.Chidambaram and industrialist and current M.P. Navin Jindal faced the brunt of personnel attending their political proceedings.But this activity may pose "shoe-stopper" in political mileage.

But amidst all this shoe throwing activity atleast one industry will certainly come out of recession pretty fast.

G20 Agenda : Rescue from Financial Crisis

2009-03-30T13:55:00.000-07:00

G20 meeting is round the corner, but this year the G20 meeting would be quite different, as this time world's biggest 20 economies, meet in London to discuss about how to revive Global economy from the crisis.

Apart from financial revival, the World leaders of G2o countries may also discuss about pumping more money into their economy, so that they can revive consumer demand, and to suppress the rise in unemployment rate.

But the question on pumping new money into the global economy, has two different point of views, as US administration is keen into pumping more money into the global economy and to buy out bank's toxic assets, while on the other hands EU nations are reluctant to lend any helping hands to these banks.

What ever be the differences between the EU and US, but certainly, this times, they have to vibe off their differences, and come up with really strong solutions to revive the worldwide economy and to rejuvenate the employment level in the region.

Women Products in time of recession

2009-03-22T14:16:00.000-07:00

I was just going through one of the blog post put up by BusinessPundit, the blog was regarding how Companies are targeting Women, with every another day they are coming up with some other Women centric product.

But in that blog, the blogger only put examples of Product based companies, from McDonalds to PepsiCo, but they forget to mention about the service oriented companies, like Financial industry and IT industry, which also faced severe layoff in this time of recession.

But from my point of view, Financial Industry too can come up with Women Oriented products, especially for Mothers. They can come with product which are less risky, but if one is ready to invest in the long term then can provide sound confirmed returns.

Besides, generally Women lack sound financial knowledge, so Financial Industry can carry out some knowledge seminars to Women population in general, this will not only give them a base to understand financial nuances, but also help them to take wise decision to the product offer by the financial companies .

If somebody has any other idea about how Service oriented companies can target Women customers, then do pour your idea on this blog.

Thanks &Regards,
Mohit

CEO's at recession..

2009-03-21T02:10:00.000-07:00

Recently, Forbes magazine list out World's wealthiest CEO's, which apart from recession , where job cuts are prevailing world wide, but still these CEOs drawing multi million paychecks in their accounts. So is the CEO salary justified ? Experts say, global economy is in turmoil because these high rank CEOs of big banks and corporations did not play their part as expected from them, and they let their employee leverage their positions in the toxic assets. So with these analysis, these CEOs did not command such hefty pay pacakages. Besides, when their fellow companions are under depression of losing their jobs, by very next second, how can these CEOs still enjoy multi million paychecks, and get them listed in forbes Wealthies list.

But, this time they should set up an example among their distress employees, by voluntering a pay cut, as done by Vikram Pandit , CEO Citigroup and Baba Kalyani, Chairman Bharat Forge.
Besides, they should look out for oppurtunties to expand their business, involve their employees in gathering ideas, which in turns result in improving employee motivation level and thus over all utilization. This is the time to follow the saying, Practice what you preach.

Thanks&Regards,
Mohit

AIG Drama..

2009-03-17T14:38:00.000-07:00

Few months ago, American Insurance giant , American International Group (AIG) was in news due to huge losses they have posted in FY 08 and investments in the toxic assets which led to one of major financial crisis in the banking history. At that time, US govt. and treasury came in to the scene with their multi billion dollar rescue plan. The US treasury lend somewhat around 178bn$ to the insurance giant to prevent another major bank failure just like failure of Lehman Brothers.

But this is not the reason, that AIG is in news, they are in news beacause of their so called obligations to pay multi-million dollar bonuses to their employees. This act of AIG received huge outrage from every sector, even President Obama told his counsellors to seek for a legal way to prevent disbursement of bonuses, which is nothing but the money of taxpayers, to the same employees which are responsible for such a financial condition of AIG.

But some of the financial analysis on wall street are saying that AIG is staying with its obligation, because they want to keep their employees, because they want these employees to clean up all the mess created by them.

But whatever reason AIG give to justify their move, they are not in any position to handover money, they received from US treasury to be distributed as bonuses. Instead, they should look out for soultion to improve their market position and once this is done, they can reward their employees for much hefty bonus, but surely not this time.

Thanks&Regards,
Mohit

Bidders identified for Satyam..

2009-03-14T03:48:00.000-07:00

At last Indian Govt. and its new formed Board, is now able to find suitable bidders for the beleaguered Satyam. Currently, there are 8 bidders from different businesses have shown interest in Satyam business and filed Expression of Interest(EOI) to the govt. The bidders include, IT behemoth like IBM and HP and while other firmd include L&T , Spice Telecom, which also shown interest in the company business.

Who ever win the Satyam bid, will certainly take over the board, but at the same time will face with an herculean task of resurrecting Satyam image both at a national and interantional arena, certainly among its clients, who are shifting their business with much stable IT organizations.

Thanks&Regards,
Mohit

Awards Ceremony... Another event recession free...

2009-02-08T12:30:00.000-08:00

It seems that I totally involved in finding sectors, events, people which are not affected by any kind of recession or depression in the economy. this is my third post in recent time which is related to recession. Today, I am targeting to different award ceremony. The question is why do we need different award ceremonies to honor the same set of films? Does not the pompous expenditure on these award ceremony a total wastage of money. When every govt., across the world, are looking for measure to curtail recession fear or take measures to revive the recessionary economy, these award ceremony clearly shows no recession, which is an irony in itself.

Thanks&Regards,
Mohit

Is Sport recession proof?

2009-02-07T11:20:00.000-08:00

When every Industry across are feeling the pinch of global recession, and asking government intervention to rescue them from the global recession. But among all these industries there is one industry or sector which is still posing high level growth and that sector is Sports. So can we say Sport is recession free?

There are many instances which clearly shows that this sector experiencing huge growth, one such instance is the Friday IPL auction. Apart from glamor showcasing , IPL did invite huge money from the team owners. The highest bid was gone for English Captain Kevin Peterson and Andrew Flintoff. Both, English players went for 1.55Mn$(app.. Rs 7.5 Crorers).

When Royal Challenger owner, Vijay Malaya, was questioned about the price money which he paid for English Captain. He clearly mentioned that inclusion of Kevin really help to build his team brand equity.

IPL is one such instance where Indian corporates shown their prowess and money power to buy a player, other instance are the England league matches, Grand Slam titles NFL matches etc.

These matches generally observe huge audience and over above some matches do demand black tickets by the audience. Such behavior clearly shows that really Sport is recession free?

Thanks&Regards,
Mohit

Impact of Recession on World Wealthy..

2009-02-05T13:55:00.000-08:00

Today ITV1, an English channel, was showcasing a show on life at Monaco.On the show, the anchor Piers Morgan, interviewed number of people, in one of the interview the anchor posted a question to , he asked that how would have recession change the life style of Wealthiest ? When I heard this question I was really amused by the question, from my opinion the recession or no recession the wealthiest of wealthy hardly change their life style, they buy all kind of luxury goods, spent their vacations in the grandeur of places. Because these people have enough money which can last for ages, so by spending their money, they really make the better utilization of their stupendous money.

Thanks&Regards,
Mohit

Check your Carbon Footprint

2009-02-01T03:00:00.000-08:00

People usually buy things by looking at the good quality and whether the good is economical or not. But, now they have to focus on other aspect also, how eco friendly that good is, and if its an e-good then how will that good be disposed and recycled.

Recent study of Greeenpeace, an environment NGO, shows that most of the companies failed miserably when it comes for e-disposal management. These multinational companies are still usuing hazardous chemicals in manufacturing their goods, which are really difficult to dispose after it expired.

Most of these e-waste is routed to third world countries like India etc. where these good are recycled with poorest of technologies which led to high level of pollution and land fills.

Though some companies do have started e-waste handling campaign but it is still negligible compared to consumption and disposal.

Some figures from Greenpeace :

1 NOKIA: Creative take-back scheme
2 SONY ERICSSON: New environmental warranty
3 TOSHIBA: Reporting use of renewable energy
4 SAMSUNG: Good on toxic chem, poor recycling
5 FUJITSU SIEMENS: Good on energy, poor e-waste
6 LG – Improved score on recycling & energy
7 MOTOROLA: Improved on energy & recycling
8 SONY: Has room for improvement on energy
9 PANASONIC: Good energy, poor e-waste criteria
10 SHARP: Reporting of energy efficiency of products weak
11 ACER – To improve on cutting toxicity & recycling
12 DELL – Loses on withdrawing from its commitment to eliminate PVC plastic & BFRs by ‘09 end
13 HP: Still needs to improve on e-waste
14 APPLE: Now reporting product carbon footprint , new iPods are free of PVC and BFRs
15 PHILIPS: Scores well on toxics and energy but scores zero on other e-waste criteria
16 LENOVO: Scores well on toxic chemicals, poor on recycling & energy
17 MICROSOFT: Poor score on recycling & energy 18
NINTENDO: Zero on most criteria except chemicals mgmt & energy
Source: Greenpeace

So before you think of buying a good, apart from economical viability, do check the Carbon Footprint.

Thanks&Regards,
Mohit

Innovating at the top

2009-01-25T10:24:00.000-08:00

I was just viewing a video podcast at knowledge@insead, the video was about a book Innovating at Top, published by INSEAD respected professors.

In the interview session, interviewer post series of questions to Soumitra Dutta, about why CEO required innovation, why innovation is required even in the time of crisis? How cultural differences help CEO's to tackle the issue of innovation? Out of large and small corporations, which are the running machines for innovation?

To look out for all the answers given by Mr. Dutta, go to knowledge@insead site (http://knowledge.insead.edu/home.cfm)

Thanks
Mohit

Obamamania couldnot trigger rise in stock market

2009-01-21T14:08:00.000-08:00

On January 20th, Mr. Barack Obama took over as the 44th US president at Capitol Hill in Washington. Amid these recessionary times, or if we go by some economist terms, the depression time, the newly elected president come as a ray of hope for the Americans and for the World Economy.

But it seems that now the recession as loomed over the entire World Economy, that even the ray of hope is not able to pass it. This is what happened, during the Obama inaugural day. Most of the work market either remain flat or fall sharply. So it clearly shows that even Obamamania could not set even the short term positive sentiment in the global market, which can trigger the exchanges world wide.

Tough time ahead for Mr. Obama.

Thanks&Regards,
Mohit

Obama oath = Costliest President Inauguration Ceremony

2009-01-20T13:35:00.000-08:00

In November, when the Detroit Big three automaker CEO approached Fed for a bailout package on their luxurious planes, were greatly criticized by the international media for spending company money in their lavish lifestyle. They were reprimanded everywhere, and told to be more responsible in saving their company liquidity in time of Crisis.

But I think the same criticism is also applicable for President Obama Inauguration Ceremony at Capitol Hill. According to reports this is one of the Costliest Presidential Inauguration Ceremony in the American history, with total expenditure cost is approximately 75million$.

I can understand this may be the historical moment in the American presidential election, with first time an African American will taking on the high profile job. But at this time of financial crisis, when everybody is pressing on saving money and spending money more sensibly. Shouldn't be this Celebration can be delayed, till the US economy become more stabilize.

From my opinion, the Obama Inauguration and CEO spending on the lavish lifestyles, should be comparable and should be criticize equally.

Thanks&Regards,
Mohit

Institutions falling towards Enterprise 2.0

2009-01-18T14:16:00.000-08:00

I was just going through one of the Bankwatch blogs, in one of the blogs they have mentioned that Bank of America(BOFA) and MIT media labs have started a new initiative call as Centre of Future Banking,I went to one of their blogs http://futurebanking.bankofamerica.com, and checked one of their blogs.

In one of the blogs they have mentioned that how BOFA is leveraging Twitter to solve customer related issues. They wrote that social networking site really helped them to listen to customer need and their griefs. They can really learn about the new customer demands which call for new product development and enhancements. The social networking sites, like Twitter enable them to listen to customer needs in more real term. You can read the complet blog at adjacent link : http://futurebanking.bankofamerica.com/twitter-customer-experience-bank-america_696.

This clearly shows now the companies are falling towards enterprise or web2.0, and leveraging and merging their business concepts into their existing business model, so that they can listen to customer demands and take actions without any delay.

Thanks&Regards,
Mohit

Citi's Split

2009-01-18T13:52:00.000-08:00

Citigroup, once considered as the top notch financial institution of the World, is now split into to different legal entities, Citicorp and Citi Holdings. Thus, breaking the one banking or Universal Banking business operational model.

The split news came after when banking giant reported a 8.3billion$ quarterly loss. Out of two split identities Citicorp will have major chunk of business, holding private and investment banking arm. While Citi Holdings will mostly manage the non core banking part of the business.

The newly appointed CEO Vikram Pandit marked that the split will certainly help them to manage the business efficiently and also help them to serve both their clients and customers more effectively.

Lets see how these two identies work indivdually, and how they help Citi to get back on the track.

Thanks&Regards,
Mohit

Satyam failure : A sign of betrayal

2009-01-17T03:25:00.000-08:00

Last week, when the India's fourth largest software company(based on the fake balance sheets), founder and Chairman resigned from the company and shocked the entire economy by telling that he and his key accomplices made a fraud of around 5000+ Crores, and all the figuresdescribed in the company balance sheet is completely inflationary.

Once this news was out in the market, it sent the shock waves at the BSE stock exchange and the Sensex shed more than 700 points in the intra day trade.

But Satyam failure is really a sign of betrayal from one of the key and iconic figure in the country, Mr. B Ramalinga Raju. It really hurt the trust and sentiment of not only international investors but also the small retail investors, who are always advise to go for a blue chip fund in order to safeguard their investments, and to reap good returns. But when a Blue Chip company reveals a multi billion fraud, the trust factor really seems to be void.

Besides Indian Corporates are yelling that this is one of its case, but Satyam fraud will also make global Clients to think twice to outsource their business critical applications to India. It certainly marred India's image as the global IT hub and a safe region to put once investments.

India corporated and politcal system really have to work hard on making Corporate Governance rule more stringent and transparent, and make sure that all culprit involved in this mayhem will be punished in time.

Thanks&Regards,
Mohit

Solution to Current Crisis : Responsible Leadership

2009-01-14T13:36:00.000-08:00

The recent financial crisis, which saw meltdown of some of the mammoth banking institutions, and also saw standstill of the entire world economy. The main reason for such a enormous failure was improper decision, short term vision.

The solution for such a crisis, and to prevent such a crisis in distant future is to look out for Responsible Leadership. The main action item of the Responsible Leadership is to make long term vision for their business, invest in those business which they understand or have a strong team who understand the business very well. The leadership decision should not be a rat race decision, but decision should be made on through analysis of the situation, and safekeeping stakeholders and shareholders interest as far as possible.

Countdown begin for Mr. Obama

2009-01-12T13:39:00.000-08:00

On January 20th, every body around the globe will be glued to all kind of available media, because on this the most awaited event will take place, when Time Person of the Year, the current US President of elect Mr. Barack Obama will take over presidentship from Mr. Bush.

The presidential countdown has already begun, and speculation has already taken place at all available field. Everybody has only one question, how Mr. Obama will keep to his slogan, We the Change. How he and his team will bail out US and World economy from the looming recession. What measures he will take to maintain peace across the globe?

Thanks&Regards,
Mohit

Why Indian Manufacturers Failed Again Global MNC..

2009-01-06T14:25:00.000-08:00

In 18th Century, Herbert Spencer coined the phrase "Survival of the Fittest". This phrase suited perfectly well to Global MNC, who came without any knowledge of Indian markets and taste of Indian Customers, but within a decade they become the market leaders in their domain.

So the question is why Indian manufacturers failed again Global MNC ?

1. Lack Of Innovation products or schemes.

2. Never support after product sale support and services.

3. Lack of long term Customer Relation.

4. No investment in R&D development.

5. No investment in the market research.

6. Never wanted to develop or grow beyond their region.

7. No focus on future customers, basically rural segment.

While every Global MNC which entered the Indian market, came up with a long term vision and kept Customer relationship and focus as the top most priority, which able to them to achieve their defined targets and gave them courage to set new targets.

Thanks&Regards,
Mohit

Economic affect due to Israel-Gaza War..

2009-01-04T05:06:00.000-08:00

The year 2009 started at a very bad note, the main reason is the Israel -Gaza war. Israel forces had totally traumatized Gaza civilians and demolished nook and corner of the entire HAMAS establishment. Israel war on Gaza did receive a huge outcry in Arab world, and also saw huge outcry in every part of the World. The one more reason for this global outcry is that, Israel greater ally, and Security Council Prime Member USA, still did not oppose Israel attacks.

But Israel-Gaza war do have its negative economic affect, as Arab region took these strikes very seriously, which might result in the Oil production by these Oil rich countries, in order to economic repression against the Israel war. The decrease in Oil supply, may result in global inflation.

The Arab region posed a high growth region in the recent times, with no kind of opposition from the US and its ally, which might result in feeling of disregard of Arab nations towards US and its Allys, at direct economic repression by Arab countries.

Though Israel is defending the War by saying its in the benefit for their Citizens, while HAMAS also recite the same poem at their end. But this War will certainly not bring any respite to high tension region.

Thanks&Regards,
Mohit

7% economic growth possible for India

2009-01-03T05:33:00.000-08:00

2009 year will be a year of challenges for every economy in the World. As chiefs of some of the countries had already declared that their economy is in recession, which is also confirmed by rise in job losses, and record dip in the industrial output. The economic growth prediction of some of the countries is somewhat around 1%-2%, while for some countries its is even showing a negative growth. But even during this time the Deputy Chairman of India's Planning Commission Mr. Montek Singh predicted that India may pose an economic growth of around 7%, the prediction of 7% growth is really overwhelming. From my point of view, this time the 7% growth rate will be not be influenced by global factors, but it will be mostly driven by internal factors and consumption.
But India has to take some stringent measures in order to achieve an overwhelming growth of 7%.

Measures required :

1. Security : Investment sentiments were greatly hurt during the 26/11 mumbai attacks, India has to make sure that its citizens and who ever doing the business with it must be secure.

2. Investment in R&D : India share to global R&D is minimal, its less than 1 %. But if India has to achieve a 7% growth rate, and to sustain a high level of growth rate, it has to invest into R&D.

3. Education : India has to improve its education standards by making it more vocational oriented rather than mere a bookish language.

4. Infrastucture : India has to invest heavily on its infrastructure(Road, Rail, Air, Shipping etc.) to sustain a 7% economic growth in this turbulence team.

5. Open trade: India has to relax its policies of more open billateral trade between other countries.

Thanks&Regards,
Mohit

Doing business in Asia

2009-01-02T09:04:00.000-08:00

I was just watching a video from the store of INSEAD knowledge videos. The video was inducted by INSEAD professor, Franz Humer. In this video Prof. Humer talked about doing business in Asia. He mentioned that though the region do offer stupendous return in the range of 20-25 %, but its really not easy to do business in this region. The prime reason he mentioned was,

1. Corruption : According to Prof. Humer Asia suffers from great level of corruption at every level from top to bottom. So any business operating at the global level has to deal with this level of corruption to form their existence in the region.

2. Counterfeit : He also mentioned that the two biggest economies in the region, India and China, are also major manufacture of counterfeit products. If we go by statistical figure, around 8% of counterfeited Medicines in Europe are produced in China, while it goes more than 30% in case of India. This counterfeited trade will certainly affect not only the business of the global firms involved in this trade but also affect the human lives to a much greater extent.

Apart from the above two points mentioned by Prof. Hummer, I would also like to add some more points to the above topic.

1. Unstable boundaries : Unlike EU which did not see the any major conflict since World War 2, while the same is not applicable to Asia. Asia boundaries are always remained tensed, be it the India/Pakistan or china, or may be to some extent Russia. Such kind of tensed environment really harm the overall business development in this region.

2. No common law binding the region : Companies operating out of EU are often governed by some industry specific law like SEPA and MIFID, while no such common laws exist in the region. Thus with every cross of borders the global MNC have to adjust their policies existing in their region, which may increase their overall expenditure also.

So though Asia do pose as next big market for Developed economies, but its certain that doing business in Asia is not that easy as it look.

Thanks&Regards,
Mohit

Things to watch in Year 2009

2009-01-01T08:24:00.000-08:00

Year 2008 ended, the year full of turbulence and events from US Financial meltdown to US Historical Political Elections, also saw the 60 hours gun battle of Indian NSG commandos and terrorists. But the thankfully year 2008 ended. But the aftermath of last year has to bore my current year.

So what are the things to watch in Year 2009.

1. World is watching when Obama will take over the presidency in US, and how his transition team will work to revive the ailing economy and other peace matters.

2. How will India progress itself with its arch rival Pakistan in keeping peace in the subcontinent region?

3. How Pakistan will curb terrorism originating from its soil?

4. World is waiting for the roll out of the world cheapest car, Tata's Nano?

5. How dispute between Israel and Palestine can be resolved?

6. How industry will try to avoid releasing of Greenhouse gases, and reduce the risk of global warming?

7. What measures EU and Japan will take to bring their economies back on track?

8. How US and UN will approach North Korea and Iran to dismantle its Nuclear installations?

9. How will US will handle situation in Iraq and Afghanistan ?

Thanks&Regards,
Mohit

2008: Biggest Business House Failures

2008-12-29T13:52:00.000-08:00

2008 is the year which brought changes, both at the political and economical front, but it also saw some of the biggest wealth meltdown. Reliance Anil Dhirubhai Ambani Group (RADAG) forayed into number of diverse businesses from Telecom, UMPP, Media erc. saw the stock prces of its flagship companies raised to greater heights during 206-2007 . The launch of RelPower IPO marked a history in Indian bourses, and maded him one of the richest man in the Indian soil just behind his elder brother Mukesh Ambani. But just after the IPO launch the Indian bourses faced a greater meltdown in history, and all companies pionered under ADAG groups suffered great losses, with some its companies lost more than 80% of its peak valuation price, thus making Anil Dhirubahi Ambani pauper by multi million dollars, thus also made him one of the biggest business house failure in recent time.

Thanks&Regards,
Mohit

2009 : Astrologers Prediction..

2008-12-28T00:15:00.000-08:00

Its the end time of the year, the year full of turbulence, be it financial turbulence(in form of Subprime Crisis, Stock market meltdown across the globe ), political turbulence(a black man, taking over the World Top most job, End of peace talk between Indian and Pakistan after 26/11 Mumbai Attacks) . But as the year close by, the astrologers across every circle are carrying out prediction for the next year 2009.Several astrolgers predict that 2009 may bring a sigh of relief to financial markets, and markets may experience little bit of rebound by next year. There total analysis is based on the position of stars, and based on their analysis, these stars will be in favorable position to support market upward movement. While economists worldwide have a totally a contradictory point of view, according to them 2009 may to be a smooth year, the aftermath of 2008 will be feel in 2009, with substantial job losses across all sectors. Lets see whose analysis work ahead in next year.

Thanks&Regards,
Mohit

Satyam in a jittery !!

2008-12-20T14:58:00.000-08:00

Satyam Technology Solutions, India's fourth largest Information technology company was in a state of jittery last week. Apart from feeling heat from global meltdown and loosing some of its biggest clients, it faced an allegation under Corporate governance. Last week, Satyam management decided to take over Maytas Infrastructure and Maytas Properties the companies manged by 54 year old Satyam CEO Mr. B. Ramlinga Raju sons.

The Satyam Maytas deal was valued arround 1.6Bn$, and investors doubt that due to economic gloom Satyam wants to shift its interest from Information Technology to infrastructre business.

The announcement of the deal results in the 55% drop in the value of the ADR in NYSE in US. Within an hour Satyam Investors lost about 2Bn$ at NY bourses, even at BSE Satyam shared suffered a huge hit.

After govt. ordered an investigation in Satyam decision, the Satyam mangement retracted their decsion and cancelled their decision for the bid. At the same time in order to improve the investor sentiments, Satyam CEO decided to go for a buyback or a higher dividend.

This decision certainly hurt investors sentiments, not only toward the Satyam company, but towards the entire Indian IT sector.

So the real question is Will other IT companies will use their cash reserve in doing acquistion in their own sphere, or will their diversify in different sectors to improve their revenue options ?

Thanks&Regards,
Mohit

Oil : 200 $ to 25 $

2008-12-18T14:06:00.000-08:00

In this financial meltdown one commodities which is greatly hit is the Oil. During mid year, analyst involved in Oil and other commodity research pointed out that Oil will reach 200$ mark by ear end. But as the year approaches to an end, scenario is totally changed. Now the same commodity is trading below 50 $ mark and some analyst are predicting the it may fall in the range of 25-30 $ mark.

But the question is why there is a pendulum shift in the Oil prices? Is it the speculators who brought the Oil prices at that level ? Or is the speculators now who are bringing the oil level in submissive level. So certainly seems that economic parameters of demand and supply did not fit in determining the price of the oil, rather it was traders who won the race. This may be applicable for other commodities also, but certainly it fit well for Oil.

Lets see at what level the Oil will go in the coming week.

Thanks&Regards,
Mohit

Madoff Havoc on Wall Street..

2008-12-16T14:24:00.000-08:00

Bernard Madoff, the 70 year Wall Street Veteran will be known as the one of the biggest fraudster in the years to come. The guy which was one of the renowned figure in the US banking Industry had created a mess and hurt the reputation of US financial firms which will take years to rectify it. According to market analyst, the investors who had invested into Madoff's so called Ponzi schemes may be ripped up of more than 5obn$, thus making this as one of the biggest financial fraud of its time.

Some of the biggest names which burnt their hands in this fraud are, HSBC , BNP Paribas, Royal Bank of Scotland. Even the Banco Santander, the largest bank in the euro zone, lost a fare amount of money in this fraud.

In this difficult financial year, which saw some of the greatest banking failure, this is the last thing which investors expected.

Thanks&Regards,
Mohit Kumar

No respite for the ailing market..

2008-12-15T14:09:00.000-08:00

Its often said, if bad thing started.. it will not be ended easily. This is something what is happening with the global markets worldwide. Even though every govt. are taking sufficient measures, from declaring multi billion dollar packages, by opening special lending windows for banks, by reducing cash reserve ratio and statutory liquidity ratio, in order to increase liquidity in the market, and relieve global economy from global recession cover.

But somehow it seems that these measures are short lived, and when the markets tries to recover, the next big fraud or disaster comes into picture which subdued the effects of financial relieve packages.

Latest fraud which added fuel to fire is the 50bn$ fraud carried out by Bernie Madoff, a 78 year old Wall Street Veteran.

It now seems that market respite will surely a distant dream.

Thanks&Regards,
Mohit

NRI groom faces the heat of a Market Gloom....

2008-12-09T13:45:00.000-08:00

Recent market recession which caused the meltdown of some of the major sectors from Auto, Banking, IT, but this recession also caused meltdown of demand of NRI groom.

In Indian marriage Industry, the so called Non-Resident Indian, abbreviated as NRI, are the hot pancakes always in demand. But things are not more the same, with regular job cut in the developed market and with no sign of early respite from recession, Indian bride would certainly like to look out for their soul mate at their soil itself.

Though marriage analyst says that this may be the temporary face and NRI grooms will be again in the limelight. But till that time comes this market gloom will certainly deprived NRI groom in finding the right bride. :-)

Thanks&Regards,
Mohit

Week After Mumbai Terror Attack

2008-12-03T14:17:00.000-08:00

26/11 , Mumbai will never forgot this dates for a very long time. The day when terrorist just barged into into Indian Financial capital and left Indian Cosmopolitan City standstill for more than 60 hours.

During the week Indian govt. tried to appease Indian Citizens, which can be seen from the early exodus of inept Home Minister, Shivraj Patil. Constant allegation against Pakistan for promoting terrorism, shown respect to officers who were killed during the mission. Indian defense minister called some highlevel defense meeting and asked for better coordination among the Country defense forces and intelligence agencies. Even the terror strucked Mumbai Citizens paid homage to all those dead and carried out peaceful rallies near the Gateway.

But the question is are they enough? Or even if they are enough, will it last longer ? Will India retaliate more aggressively this time? How will Country put its strategies against terrorism?
The list of question with What, How and When is endless.....

Now there are no question of Wait and See but its now the time for some sporadic actions.

Thanks&Regards,
Mohit

US big 3 meet again

2008-12-02T13:47:00.000-08:00

Last month, 3 US auto giant GM, Ford and Chrysler approached Congress begging for 25Bn$ bailout package for their package. But somehow Congress were not pleased by the request of 3 auto makers, but they were shown the door and asked to come again, but with some concrete plan. Plan containing Company's future vision, company strategies to curb revenue.

Today, 3 US makers come again to meet US congress with their plans. The plan includes salary cut of top executives, sale of corporate jets, while at the same time GM also proposed to sell off its two brands- Pontiac and Saturn.

But at the same time, the auto makers also raised their request for bailout package. GM demanded somewhere around 18Bn$ while Ford demanded somewhere around 9Bn$.

Though in order to maintain desirable employment level in the country, it seems that Congress may sanction the bailout amount to ailing US auto firms. But before they sanction the money they should ask these auto giants for somewhat more concrete plans, and also raise the question how these firms will return the tax payers money, which they are demanding for. Until and unless, these questions are answered Congress should hold their decision of bailing out these firms.

Thanks&Regards,
Mohit

Impact on business after Mumbai Terrorist attack

2008-11-29T06:04:00.000-08:00

Last three days was one of the worst days in India, as India faced one of the worst terror attacks since Independence. Usually, terrorist just plant the bombs in the crowded market place, and just fled away, but this time terrorist action took everybody for surprise. They collaborated and synchronized their tasks and executed them at 9 different places in the city.

But will this really impact the business in India ?

As based on current intelligence report, the main aim of the terrorist attack was to disrupt Indian economy and portrayed as an unsafe country to do business with. But certainly it will certainly harm business sentiments may be for the short time but it certainly will, the most affected sectors will be Airlines, Tourism, Hospitality.Though the affect will be a short term, as terrorism is now a world wide phenomenon, but in this scenario if India decide to face direct with Pakistan, then certainly it will be bad for the entire nation, which certainly will affect the security condition in India, and will certainly show a negative sentiment for doing business in India. So Indian govt. is really need to take both cautionary and strict measures on their next move, as the entire world is watching.

Thanks&Regards,
Mohit

Bailout package sanctioned for Citigroup

2008-11-24T12:16:00.000-08:00

Last weekend was really dramatic for Citigroup, from announcement of 52,000 job cuts, with high probability of filing for bankruptcy, with chances of acquisition or mergers with other banks on the wall street, with Citigroup shares trading at lowest levels in decades. But somehow, Citigroup felt a sigh of relief, when US fed sanctioned a 20bn $ bailout package, and support to underwrite Citi's multibillion dollar toxic assets. The news of bailout package resulted in surge of Citi's stock, with stock trading at 5.87$ up more than 50 % above the previous closing price.

But the question is Will this fund will be sufficient for Citigroup to survive? Besides, other than question of survival, the bigger question is How these funds will be utilised? I think Mr. Pandit has to revisit on the bank policies, and look out for alternate ways to reduce banks expenditure.

Thanks&Regards,
Mohit Kumar

Tough Time for Mr. Pandit, Chief Honcho Citigroup

2008-11-23T04:17:00.000-08:00

In this year we already saw, some of the major fallout of US financial institutions. The year started with Bear Stearn, and by ht mid of year, it already engulfed some of the oldest financial institutions in US, like Lehman Brothers and brokerage firm Meirrill Lynch. But it seems that fallout year is not yet over, and it may be possible that the next bank in the radar can be Mr. Vikram Pandit, run Citigroup.

On friday, Citi stocks on NYSE were trading below 4 $, making its market capitalization somewhere around 20bn$. Though analyst says that it Citigroup financial status is more sound as compare to other failed financial institutions, but somehow, the Citi's current share price doesnot reflect its financial prowess. Overexposure to subprime loans both in the in Mortgage and Credit Cards Lob, really hurt the bank balance sheets.

CEO of Citigroup, Vikram Pandit, and other officials are meeting US fed officials, in order to rescue Citigroup, before it will be difficult for them to prevent US economy for the Worst Financial Crisis. I hope Mr. Pandit will certainly find a solution, so as to make Wall Street cherish on coming Thanks' Giving.

Thanks&Regards,
Mohit Kumar

US Auto majors beg for their survival

2008-11-20T13:45:00.000-08:00

Detroit, the auto hub of the World, and headquarters of major US auto companies like GM and Ford. But nowever days, Detroit streets have a deserted look, as 3 US Auto majors GM, Ford and Chrysler file for their bankruptcy and requested a 25bn$ bailout pie from Fed approved 700Bn$ economy bailout plan.

Its a very old saying in India, "Behti Ganga mein haath dhona" (Wash your hands in the running waters). This is what these auto companies are doing, they are thinking that as US fed is bailing out banks from the financial crisis , they will certainly bailout them. But the real question at the first time is, Why these auto companies are in such a crisis? These are not the companies who lended subprime loans, but these are the companies who are settled in among the auto loving consumers.
So why they are in such a mess? and why now are they begging for survival?

The answer lies in complete mismangement by the senior management of these firms which leads lavish spending by the senior management and lack of timeley decision. ,and second most important thing is lack of innovation by these auto makers. When world auto markets are demanding more fuel efficient and environmental friendly cars, these auto makers are still developing less efficient cars.

So before they ask fed for the bailout plan, they have to provide a viable plan, how will they are going to use the money, what will be their strategy to increase revenues, how will they leverage in house technology or export new technology from outside world? How will they deal with their competitors? What will be their strategy for the emerging economies? How will they decrease their expenditure? How will they increase their utilization rate?

They have to answer many such What? How? and Why? questions before they really ask US fed for the aid.

Thanks&Regards,
Mohit

G20 countries collaborate for Global Financial rescue.

2008-11-16T02:09:00.000-08:00

With World Economy shattering and moving towards recession, it had faced in decades. To rescue the World economy from Global slowdown, leaders from the top 20 countries met in Washington on
Saturday to tackle collaboratively on this problem.

The agenda of the meet is to look out for the causes of the Global crisis and the solutions to fix these problems, and a the solutions or strategies to prevent such kind of problems in future.

The G20 nations discussed about the strategies on utilization of stimulus packages, and talked of economic stimulative measures like decreasing interest rates and bailing out banks and financial institutions.

They added that they have to work collaboratively to boost developing economies, which saw the major meltdown in their crisis. They added that if required, the developing economies, fund channeling may be routed through International Monetary Fund(IMF).

Besides, discussing on financial rescue measures, they also discussed on more regulation for financial and capital markets and to improve oversight of Credit rating agencies and to make investor fully aware of the risk involved in complex financial instruments before financial system posses another level of instability.

The international financial mess is already been created and instead of financial rescue plans from key G7 countries, it really calls for a collaborative effort from all the countries, to clean up this mess, before it pose a major threat to World Security.

G20 Countries :

Argentina
Australia
Brazil
Britain
Canada
China
European Union
France
Germany
India
Indonesia
Italy
Japan
Mexico
Russia
South Africa
Saudi Arabia
South Korea
Turkey
United States

Thanks&Regards,
Mohit Kumar

Biofuels viabilty as a future fuel?

2008-11-12T13:16:00.000-08:00

Biofuels are often considered alternative to both petrol and diesel, terms of price, environment and low production cost. Though somehow now the price of crude oil is moving around 55-60$ (NYMEX) per barrel, which is considerably down when compare to 147$ six months ago. With fear of global recession the price of lowered to considerable low level, but as when global economy again take an upward, analyst crude price prediction of 200$ will then not be a distant dream, at that time the more price sensitive Biofuels will come into picture.

Besides, apart from alternative to fossil fuels, Biofuels also are economical on may fronts, environment, foreign exchange, self reliance, energy sufficient and security.

Thanks&Regards,
Mohit Kumar

Amex changed its profile

2008-11-11T13:57:00.000-08:00

Amidst the financial crisis clouds, American Express, popularly known as Amex, decided to change its line of business from Credit cards, Business services and Travel Services to more traditional commercial banking operations. Thus, after Goldman Sachs and Morgan Stanley, Amex becomes the third bank on Wall Street to change its banking status.

The move will give Amex to increase their deposits- a more stable form of funding, besides it will easily get the more safer access of fed funding and will be under constant scanner of Fed.

Amex (AXP) stocks fell to around 22$ during the Mid-Day trading.

Thanks&Regards,
Mohit Kumar

China billion dollar economy stimulus package

2008-11-10T14:08:00.000-08:00

It's often said, when going gets tough, the tough gets going. But in this economy crisis, even the toughest of all economies failed to survive. China announces a 586 bn$ economy package, which they will spend in coming years in building country's infrastructure and also smooth line lending process in the country financial system.

Though the news of economy stimulus helped stocks surge in Asian economies, while the same news caused stocks plunge in the US markets, with US stocks dropped as a worsening outlook from companies like Glodman Sachs and Google Inc.

Lets wait and see how this economic stimulus package will help revival of the Chinese economy.

Thanks&Regards,
Mohit Kumar

Feeling the financial Pain by BRIC

2008-11-09T06:12:00.000-08:00

BRIC, acronym stands for Brazil, Russia , India and China basically one of the highest growing economy in the recent times, and according to some of the industry experts in coming years, may become biggest economies in the World.

But recent financial crisis in US and Europe recently affected this BRIC economies, while stock markets in this region have almost lost their 50% of their valuations in recent times. Liquidity crisis, credit crunch, inflation , unemployment, layoffs, bad consumer sentiments are looming all over this BRIC economies, thus forming a bad time for these economies.

But this financial crisis, really helped these BRIC industries to remove themselves from the dependencies of developed economies, and instead of more export centric, try to build their own domestic consumption, diversify their business, develop an inhouse R&D facilities.

Though it will be difficult to keep themselves aloof in this flat world, but it will certainly help them to move smoothly in this financial crisis.

Thanks&Regards,
Mohit Kumar

Obama Solution to Economy Crisis : Greener Energy

2008-11-08T06:46:00.000-08:00

After Mr. Obama defeated Mr. Mcain and marked his place as the 44th US President. With the winning of the US presidential race, the next big task which revolves around the new president is revival of the economy and creation of new jobs. While US employment rate is at 14 year low, at 6.5%, the creation of new jobs in this difficult times is really a difficult times.

To all the economy crisis, Obama solution is patronage of Greener Energy soltuions, which included building of Wind Turbines, fitting of solar cells units, leveraging of technolgy in building environmental friendly coal.With inclusion of such a new initiatives he pointed that it will create around 5 million jobs.But the question is where will the funding of such plans will come from? Will the govt. once again put additional tax on the tax payers, and raised the required fund? But raising tax again means, making Obama unfavorable among US voters. So this will be the last thing the new preisdent and his transition team will think of. But currently Obama is pursuing to implement its Cap and trade plan, under which Govt. will auction permit to companies, and with every successive year it will reduce permits, thus reducing the Greenhouse gas emission in the atmosphere. The money generated with this auction will be used for more job creation.

Though Obama greener plans currently sounds more oppurtnistic and in favor of the economy, but lets see what will happen next, when he will put this plans into execution.

Thanks&Regards,
Mohit

Tough task ahead for Mr. Obama

2008-11-06T13:58:00.000-08:00

Ex-Senator of Illinois state, and now the 44th president of United State, the African American Barack Obama will join Us presidential office 10 weeks from now. But it will certainly will not be an easy power transition from Mr. Bush to Mr. Obama.

Some of the key task which the new president have to take care, after he take over the office from Mr. Bush.

1. Economy Revival : Implement new strategies to revive the economy.

2. Maintain peace in the Gulf region .

3. Form strategies and policies to improve situation is Iraq and Afghanistan.

4. Try to form cordial relations with Iran and North Korea, and look out ways to check on their Nuclear ambition.

5. Play a big daddy role in improving bilateral ties between India and Pakistan.

6. Reduce tensions with Russia regarding deployment of Anti-Missile system in Europe.

7. Reduce unemployment figures.

8. Improve health condition of Americans.

9. Work on world peace.

10. Take measures to prevent Global Recession.

Thanks&Regards,
Mohit Kumar

US stock surges on Election Day

2008-11-04T14:12:00.000-08:00

As US 2008 presidential candidate is on the brink, while on one side US voters putting their votes in the ballot boxes, on the other side, US investors came back to bourses, with US stocks surges by more than 300 point on the election day. The Energy and the banking shares were the front end shares in today's rally. The S&P 500 added app. 40 points and closes above 1000 points, while Dow Jones Industrial Index settled above 9600 points. Some Wall Street analysts also pointed out that the Armageddon of Crisis is over, with market may see some better days ahead. But from my opinion, the state of crisis is still not over, this may be short bull run in this highly volatile scenario, and with change of leadership in the US politics may helped bull to come out from the den, but still its a long way to go before market will be in a position to move on smoothly.

Thanks&Regards,
Mohit

Upheaval task for new US president.

2008-11-03T14:09:00.000-08:00

With every passing day, the US presidential race become more exciting, sometimes election polls favored Obama, while next time election poll pendulum moved towards Mcain. But whoever win the US 08 presidential election, it will be certainly a sleepless night for them. As first and foremost task for the new president will be US economy revival from the current Financial crisis, secondly he have to bring back investors back to Capital Market, and make world believe in the sanctity of the US financial system. Besides, they have to make sure that 700bn$ bailout package sanctioned by Bush administration should be spent in a proper way, and try to return money to already oppressed US taxpayers.

Lets wait and see how new US president will formulate his policies.

Thanks&Regards,
Mohit

More Job Cuts in this Financial Downturn

2008-11-02T05:39:00.001-08:00

With financial crisis and the fear of global recession engulf everybody in the world. With financial crisis there are some sectors which are more vulnerable to job cuts.

Some industirs which will suffer the most :

1. Housing : The sector which was the root cause the worst financial crisis after 1929, Great Depression, is now also the most vulnerable in terms of job lost, and will witness more layoff in days to come. Jobs which are more vulnerable in housing sectors are Mortgage brokers, homemakers, mortgage lenders, commercial real estate and real state agencies.

2. Financial : After housing , financial people found their jobs more un-secure in this crisis. With stock market tumbling world over, and no body in the financial markets are lending money to each other, which leads to a bad business for banks and the financial sectors and thus may result in more job cuts.

3. Retail : Even before the financial crisis, retailers were railing with the rising oil prices and rising inflation, which kept the customers out of shopping counters. But after the financial crisis, the thing seems to even worsen for the retailers, with more layoff looking over different sectors, and people want to cut on their spending, in order to save money for the worst time ahead. As more and more customers, spending less, which means hard time for retailers.

4. Autos : Just like retail, first it was oil and now its liquidity crunch which is falling on the revenue of the auto majors in the industry. While sales at big three automakers had already taken a hit this year, and prediction is not that good for the last quarter, which may leads to more job cut in this sector also.

5. Travel : Airline sectors have already started layoff before the crisis, and after the crisis, with customer liked to save their money and corporates liked to cut costs by leveraging technology which kept their employees from traveling. So as less people travel this season, which means more layoff in this industry.

Thanks&Regards,
Mohit

Fed cut rates.

2008-10-29T14:55:00.000-07:00

In order to create liquidity pool in the economy,and to curb credit crunch in the economy, today fed announces another rate cut by 0.5 percent, thus now the offering rate is 1.0%. The rate cut clearly shows the gloomy outlook of the economy, with federal reserve giving out warning sirens and stating that, economic revival make take some time.

The current rate cut matches with the lowest rate cut ever carried out by federal reserve, the last time federal decreased the rate to 1% was in 2003-2004, which clearly triggered the subprime lending and resulted in the one of the largest financial turmoil in decades.

Thanks&Regards,
Mohit

Sensex ended up on Mahurat Trading

2008-10-28T14:22:00.000-07:00

In the grim market situations, when every stocks on the exchange are battering fo their suvival, with some of the stocks are trading way below their offering prices. But some how this Diwali, which also announces the Samvat 2065, bought a sigh of relief to investors. With on Mahurat trading, India BSE sensex, closes with a 5 percent gain, and somehow crosses the 9000 mark.

Thanks&Regards,
Mohit

Recession in US markets

2008-10-27T15:16:00.000-07:00

With the markets throughout the world are moving downwards, and chief of all states are coming together and somehow with cold words stating that their economy is in recession. I was just googling around and found the list of some of the major recessions which had takne place in the recent past.

Recession definition : (Source Bnet)

a stage of the business cycle in which the economic activty is in slow decline. Recessions usually follows a boom, and precedes a depression.It is characteriszed by rising unemployment and falling levels of output and investment.

Here find the list :

1. Post World War Recession [3 Years]

2. 1929 Great Depression [10 Years]

3. Recession of 1953 [1 Year]

4. Recession of 1957 [1 Year]

5. 1973 Oil Crisis [2 Years]

6. Early 1980'2 recession [2 years]

7.Early 1990's recession [1 Year]

8. Early 2000's recession [2 Years]

Thanks&Regards,
Mohit

Common people expression on Financial market

2008-10-26T06:59:00.000-07:00

Markets throughout the world are rallying southwards, the financial turmoil which started with US housing downturn has now starting showing its effects every where in the world. Here find some of the comments from the common people, who are directly affected by this financial crisis.

Expressions like :

1. Sensex is down, its all time low.
2. I have lost 100,00$ in this financial crisis.
3. I think the whole world is in a problem.
4. World economy is tied to US economy, which make even thing harder for the other economy to survive this global turmoil.
5. Besides, the whole world has invested in the US market, they will in the same ride as US is.
6.Stock exchanges are all time low, all major banks in the US are plummeting like anything.
7. How can they lend money, to anybody without any supervision.
8. If subprime mortgage wouldn't happened in US, it would not have happened anywhere else in the world.
9.Next 6-8 months will be tough, will see more downgrades in the unemployment levels etc.
10.Its has to get better,its cannot get worse.

The expression clearly shows hoe badly the crisis are, and how bad it can be if its not rectified in coming months.

Thanks&Regards,
Mohit

Who murdered the Financial System?

2008-10-22T13:35:00.000-07:00

Today, as I was going through the pages of Indian English Daily Times of India, I came across an article, the heading of the article was "Who murdered the Financial System? The article discussed about the people responsible for the such a financial mayhem.

Here find the synopsis of the article.

According to TOI, everyone from makers to consumers to regulators were responsible , but they narrow down there list to 10 murderers of US financial system.

1. Federal Reserve Board : They were responsible for forming bubble economy, and did not notice it when the bubble was on the verge of a bust.

2. US Politicians : They envisioned a house for every American, regardless of their income, and formed unregulated govt. agencies Freddie Mac and Fannie Mae, which disbursed loans like anything.

3. Fannie Mae and Freddie Mac : They resisted regulation, and spent over 2million$ lobbying legislators against any tightening of rules.

4. Financial Innovators : Financial Engineers working at the Wall street, created new structured products backed by subprime mortgages and sold to investors.

5. Regulators : Everybody in the financial markets were sleeping and no body cared to check the worthiness of the CDO's.

6. Banks and mortgage lenders : Instead of keeping the mortgages at their own books, lenders packaged it into security and sold it to other financial players and increase their liquidity, which results in more lending and vice versa. Besides, banks were busy on giving loans to people without checking their financial capabilities, which added fuel to fire in the financial crisis.

7. Investment Banks : Once these financial institutions provided services like underwriting, M&A, IPOs etc. But recently they started borrowing money to trade into their accounts.

8. Rating Agency : They offered ratings which were inappropriate for some of the financial instruments available in the market.

9. Basel Rule for Banks :

10. US consumers : Some times ago, US households savings were 6% of the disposable income, but now its either zero or negative. They have gone on a borrowing spree to spend far more than they earn.

10. Asian and Opec Counties : They undervalued their currency to simulate exports to US markets. They accumulated billions of forex US dollar reserves and put them into dollar securites, thus depressing the US interest rates and increased borrowing.

source, TOI

Thanks&Regards,
Mohit

Wealth Erosion of India's Top 10 business houses

2008-10-18T05:22:00.000-07:00

Recently financial crisis which caused stock market free fall in all the stock markets throughout the World. Indian Stock market is considered to be worst Asian performer in this financial mayhem. On friday 17-10-2008, India's top business houses lost about whopping 139Bn$ of market capitalization, when compared to their market capitalization on January 2008.

Worst Performers :

1 .Anil Ambani : Loss around 32Bn$, erosion of his wealth by whopping 70%.

2. Mukesh Ambani : Current net worth 22bn$, lost about 54% wealth in this financial mayhem.

3. Sunil Bharti Mittal : His stake in Airtel is valued at about 12bn$, and he lost about 30%.

4. K P Singh : DLF promoter saw is state is just now 1/4 of what it was in the starting of the year. His current stake is roughly around 9bn$.

This figures really showed how bear is looming over stock markets in India.

Thanks&Regards,
Mohit

Oil price down on fear of recession.

2008-10-16T12:55:00.000-07:00

In this gloomy financial conditions, where everybody is talking of long term global recession, one commodity which is showing more downturn is i.e Oil. Today, Oil prices at Nymex trade is quoted at 69.85$, which is 52% lower from its peak. With less demand of Oil, stocks in some of the countries like Russia, where Oil is a key economy supporter , fall like anything. Russian bourses down around 9% today. Though low oil price will certainly heal some of the sectors which are already suffering from financial crisis, but the continuous lowering of oil prices clearly shows a recession in the global market.

Thanks&Regards,
Mohit

International markets sinks on fear of Recession

2008-10-15T12:42:00.001-07:00

Monday and Tuesday stock rallied could not be sustained on Wednesday, with all major indices had a free fall, with Japan Nikkei an exception. Even though both US and European govt. have prepared their multi billion dollar bailout plan, but fear of long term global recession are keeping Investors away from the market. Even after a long delay, Mr. Bernanke agreed that the bailout plan will not show its effect soon, the recovery will take some time, before liquidity flows soothens in this recessionary times, but till then the markets will remain volatile throughout the world.

Thanks&Regards,
Mohit

Stock market surge.

2008-10-13T11:53:00.000-07:00

After Friday's stock market meltdown, today Stock Market in all international markets opened positively. The reason behind sudden stock surge is may be due to intervention of all major govts. in financial markets, which include bailing out ailing banks either by buying low rated assets or buying stakes in banks.

Major markets behavior on Monday, 13-10-2008.

Asian Market :

Hong Kong Hang Sang Index soared by 10.2%
India BSE Sensex soared by 7.6%
Australia Benchmark S&P/ASX soared by 5.6%
Singapore Strats Time Index soared by 6.6%
China Shanghai main Index rose by around 4%
Korea KOSPI index rose by around 4%

European Market :
Britain's FTSE 100 jumped by 8.26%
Germany DAX jumped by 11.40%
France CAC 40 jumped by 11.18%
Switzerland SWX jumped by 11.39%

US :
Dow Jones and S&P 500 index both are up by app. 6%.

Thanks&Regards,
Mohit

Stock market meltdown

2008-10-11T04:06:00.000-07:00

Fridays saw the biggest stock market meltdown on every major bourses throughout the world. Even the back up of ailing financial market by govt. and the central banks through the world , but this act even could not satisfy investors, and every where investors tried to pull out money from stock markets, caused a market free fall. Some of the corporations which enjoyed high market capitalization till starting of the months, saw their capitalization fall to a very low level on Friday.

Some stocks behavior at BSE Sensex :

Sensex Stocks :
Worst Opening of the Day

JP Associates -14.24%
Maruti Suzuki - 9.98%
Infosys -8.32%
ICICI Bank -7.33%
Ranbaxy -6.89%

Lets see how the market will behave as it open on Monday morning, hope the worst is over.

Thanks&Regards,
Mohit

Invest your money in Green Economic Sectors.

2008-10-09T12:41:00.000-07:00

In such a turbulence financial times, it is very difficult to predict the future scenario. But if one really want to vest one's investment, he/she can really look for company's making investment in Greener solutions.

Sectors which one can look for Investments :
1. Wind Energy.
2. Solar Energy.
3. Bio fuel.
4. Ocean Energy.

Reason :

1. Pollution free energy.
2. Govt. are putting more stress on greener solutions to combat Global Warming.
3. Govt. are looking for much cheaper solutions for energy generation, and loose their dependency on fossil fuels, which are getting costlier and depleting with every day.

Though these turbulent financial will last for some time and the future will not be rosy as it was before, but suddenly investment in above sectors will reap benefit for investors.

Thanks&Regards,
Mohit

Global Central Banks Cut Rates

2008-10-08T14:08:00.000-07:00

In order to sail through global financial crisis, and maintain high level of liquidity in the market some of the major Central banks cut interest rates.

Find below the modified interest rates.

Federal Reserve Rate : 1.5%

European Central Bank : 3.75%

Canada Central Bank : 2.5%

Bank of England, UK : 4.5%

Sweden Bank : 4.25%

China Central Bank : 6.3%

Analyst said the in order to maintain liquidity in the market and faith in the financial market system, Central banks may decide to lower the interest rates further down.

Thanks&Regards,
Mohit

Tata books Gujarat for Nano Site

2008-10-07T14:09:00.000-07:00

After having at tough times at Singur, W.B. Tata's finally booked Gujarat to develop Nano car.

Some project details :

1. 1100 acres of land have been allocated at Sanand for the project.

2. All Tata auto ancillary vendors will be moved to that area, to support Tata in building world's cheapest cars.

3. Intial rollout of Nano will be done from company's Pune and Pantnagar plants.

4. The official release of Nano has been delayed by 3 months, it will most probably be happen in the last quarter of the year.

Apart from this CM of Gujarat have clarified that it is not a lease agreement, but Tata will be buying the land at prevailing market rates.

Though according to Tata Group Chairman, the Gujarat plant will serve as the Mother plant, while they are still in process to finalize the satellite plant for Nano.

Nano rollout will certainly put Tata amongst the major World Corporate achievers, and at the same time showcase Gujarat as the state for Investment friendliness.

Thanks&Regards,
Mohit Kumar

Corporatize Indian Tourism

2008-10-06T13:56:00.000-07:00

There is one sector in India, which is highly scattered and unorganized but have the potential to reap profits in millions and billions and that sector is Tourism. For tourist, India offers rich cultural heritage, beautiful landscape, mountain ranges, monuments, beaches, wild life . With so much to offer, still revenue wise it is way below world ranking.

Where it is lagging behind?
1. Infrastructure : Hotels, railways, roads, airways,information sites. Go to any place in Europe, the infrastructure to tourist place are simply superb, even a first time tourist don't have to worry about the itinerary, everything is available at anytime at anyplace.

2. Security : Security is the main concern for tourist coming to India.

3. Hygienic and Friendly Environment

4. Centralized Tracking System.

5. Regulated Tourist Agents : Most of the tourist agents in India are not regulated, these agents should be regulated to make things economic for both national and international tourists.

6. Unstable borders and communal problems : Unstable borders and communal tensions often deprived tourist to explore some of the famous places in India like J&K.

How Tourism Corporatism will help?

First of all it will help to build required Infrastructure it may be good roads, railways or hotels. With the help of the central and state govt. tourist data can be maintained in the centralized tracking system.Secondly, at famous tourist place instead of govt. police surveillance, private security guards can be deployed, so that tourist considers them to be safe and feel a be like home environment.

Though some of the problems listed above are even beyond the control of Corporates, but still we have a long way to go in order to tap this multi billion dollar industry, and this cannot be achieve until and unless we corporatize this sector.

Thanks&Regards,
Mohit

Different Govt. wooing Tata

2008-10-05T13:48:00.000-07:00

After Tata's decision of moving out of Singur, different state govt. sensed great opportunity. Many state govt. are now poaching Tata's to invest in their states.Unlike Singur, they know the importance of the project, and what it meant for their state development. They know that their intial relaxation both in terms of tax and other investments, will surely pay for the years to come both for the state development and people over there. It also shows the investment friendliness of the state, without any political bottlenecks.

Govt. wooing Tata :
1. Gujarat : Mundra SEZ is identified as the core place of Tata's Nano project, close proximity to major ports and connectivity to both by rails and roads to major metros, make it one of the ideal place for investments.

2. Andhra Pradesh : AP govt. is wooing Tata's by giving high level of Tax relaxation and place to setup their plants.

3.Karnataka : Same by Karnataka govt.

Such a initative is really needed by any govt. to showcase their Investment friendliness, and with only once concern i.e. development of the region and people over there.

Thanks&Regards,
Mohit

Tata out of Singur

2008-10-04T05:19:00.000-07:00

Now its is sure that Tata's pet project,Nano, will not be executed from Singur. Tata Group chairman Ratan Tata took this decision, and blamed Mamta Banerjee for all these problems. Tata's decision really will affect future investments in West Bengal. Even some of the existing Investors like real estate giant DLF, is also thinking of moving out of W.B.

The loss for W.B. govt.

Pschological Loss :
1. Depecits as a non friendly investment state.
2. Major influence of Communist parties, will defer further investment in state.
3. Business communities disillusioned by the outflow of Tata.

Monetary Loss:
1. Tata is one of biggest business conglomerate in India, if Nano project would have been successfully executed from Singur, which means more chances of getting more business from other business communities also, but now it will be other way round which results in following consequences less employment, no investment, moving of current investments to other friendly state.

2. Tata's Nano project coming out of Singur received huge appreciation from International Business communities, but afterwards Singur issue was really criticized by International media.This critization made Singur/W.B. unfriendly for International Investments, even India invesmtent friendliness is now being questioned.

3. TCS, Tata IT arm is also being operated from W.B., such unfriendly treatment by the govt, might makr Tata think to move their offices to other neighbouring states, which means more losses.

4. Tata Nano project did not bring only Tata motors to Singur, but hundreds of different auto ancillary providers at one place, which means that if this project would have executed then, Singur could have become a major auto hub, or may be an Auto SEZ.

I sincerly think that this is a big loss for W.B. state.

Thanks&Regards,
Mohit

US President urges again for a bailout

2008-10-02T13:04:00.000-07:00

After the first initial bailout bill was rejected at Capitol Hill by the house, US President George Bush urges again the house to revisit the bailout plan. He said, that don't consider it as a bailout plan but consider it as a Investment in American Economy to safeguard US taxpayers and International Economy from a long term recession. The bailout is really required to bring faith in the American economy and keep liquidity in the market and to prevent further breakdown of some of the ailing banks in Wall Street.

Thanks&Regards,
Mohit Kumar

Market Reaction after Congress Bailout Rejection

2008-10-01T14:07:00.000-07:00

The most awaited 700bn$ financial bailout package approved by federal and US treasury on behest of US president George Bush. But somehow the bailout package did not entice US congress and other lawmakers, they totally rejected it. But somehow the global financial markets took this decision positively, with all the major financial markets rose dramatically after a previous day setback. So from the market behavior it is somewhat clear, that market makers or investors want to play a fair game on market and economic sentiments, rather than bailout relief which might give a short term relief from these crisis.

Thanks&Regards,
Mohit

ICICI Bank in jittery

2008-09-30T14:22:00.000-07:00

Last fortnight US financial crisis, will leave its mark through out the financial markets in the World. Today, when ICICI bank, India's largest private bank, overseas exposure to subprime was not revealed correctly, this phenomenon led to sudden negative reaction in the market, as Indian consumers lined in front of the bank's ATM. Even ICICI bank behaved negatively at the BSE bourses, with price quoting at 2 years low.

With such a negative sentiments towards the Bank financial status, led Mr K.V. Kamath to reveal about the financial condition of the bank. He said, that the financial condition of bank is robust, and it has enough balance to sustain depositors withdrawals. Besides, he also asked SEBI to probe into the fall of ICICI bank shares, as according to him it is due to some market makers, which are causing devaulation of the shares, in order to get un wanted advantage into banks operations.

But the question to ask now, touchwood it should not happen, but if ICICI bank fails, what will happen to Indian banking system?

Thanks&Regards,
Mohit