Asia
September 2, 2013
Tupperware Brands Corporation Tupperware Brands Corporation (TUP) is a multi-brand, direct selling company with a market capitalization of ~$4.5 billion. The company owns the iconic Tupperware […]
July 4, 2013
Solar & Wind Energy to rise to 8% by 2018 Solar and Wind energy should double their share of the global electricity generation to 8% by […]
March 29, 2013
Principles of Islamic Banking Islamic Banking is based on the principles of Islamic law which is also known as Shariah and is guided mainly on the […]
March 25, 2013
Global Unemployment The phenomenon of growing unemployment across the world has become a regular feature across daily news stories. This is not restricted to one nation […]
February 26, 2013
As India grows more prosperous and more citizens get educated, the country is facing a major problem. While every country would kill for millions of graduates […]
February 25, 2013
Indonesia A Silent Competitor Indonesia is situated in the largest continent Asia in its south eastern region and consists of a large archipelago between the Indian […]
February 7, 2012
Global Stock Brokers across continents are either firing hundreds of workers or are totally closing down. The reasons for this downsizing of operations by brokerages is
a) The Financial Industry has become too large to the size of the global economy particuarly in countries like USA
b) The reduction in risk and capital means that big financial companies are reducing and selling their operations
c) The Broking Sector has seen a Peak in 2008 and now the only place to go for the next few years is Down
January 14, 2012
China has reported the first decrease in its forex reserves in a qtr since the 1998 crisis. The Chinese Foreign Exchange Reserves which are humongous at over $4 trillion has shown a $100 billion decrease in Nov and Dec 2012 .While the sharp decrease in the Euro may account for some change , there is also anecdotal evidence that the hot money is flowing out of China . Note earlier Hot Money was pouring into China given the potential of yuan appreciation but with the potential of a Chinese Hard Landing ,the opposite may be happening . China has a distorted economy heavily dependent on exports and investment for growth . However changed macro economic conditions make this model unsustainable . How China manages to transition out of this investment export fueled condition is an open question . That they must is in no doubt nor the fact that China's 10% GDP growth days are definitely over.
January 12, 2012
The Financial Industry will shed another 150,000 jobs according to Richard Bove, an analyst at Rochdale Securities LLC . Royal Bank of Scotland the bankrupt UK bank that was taken over the British government is going to kill a number of investment banking divisions and will fire 3500 people. RBS has already fired thousand before in wholesale and corporate banking . Now RBS will completely exit from a number of divisions like M&A, Cash Equities etc. which will mean thousands of firings . In an environment when financial jobs are scarce , this means that the fired thousands will have a tough time getting into the workforce again.RBS is going to fire 3500 people in addition to 2000 already announced. This would bring down the 24,000 pre crisis headcount by almost 45% .
January 7, 2012
Financial Jobs are being let go in the tens of thousands by European and USA Financial Institutions. The Financial Industry has become too huge as a percentage of the global economy with any value creation to say something like the IT industry. The share of the market cap of the stock market had become too high during the boom boom years of 2008 and it is continuing to go down.Despite the best (some would say the worst) effort of the governments to prop up the Too Big to Fail Banks,jobs are being let go as there is not enough work. European Banks are shrinking their balance sheets as they are too leveraged and insolvent. Without the ECB crutch,almost all of them would go under.
January 2, 2012
China faces multiple challenges
1) Slowdown in Europe and USA means that their exports are sputtering and manufacturing has already started contracting
2) Protests in cities and villages grows against rampant corruption and land grabbing by Communist officies.Lack of democracy means violent protests at times.
3) Debt is becoming a huge problem with local government vehicles facing trouble as they can no longer raise money from real estate sales which has fallen by 20-25%
4) Massive industrial overcapacity is being exported outside.This has made the other trading nations put duties and curbs.A big trade war with USA cannot be ruled out.Chinese solar and wind products faced countervailing duties and dumping charges.China has already imposed high duties on US car imports.
April 16, 2011
Labor Cost Arbitrage is the biggest reason for the growth of the Indian outsourcing industry.The outsourcing revolution in India which started though technology outsourcing has spread to the legal,medical and other fields as well.Medical Billing,Coding and Transcription has become a big business besides Legal Outsourcing of work.Globalization of finance and trade has been much more rapid than the globalization of labor which faces many hurdles.The spread of Internet and improvement in Communications has made this hurdle moot as many high cost services in India are being performed virtually over the Internet.However this arbitrage which has bought billions in profits to global corporations and rise of new companies such as Infosys,TCS and others is disappearing.Rising Wage Inflation in India caused by a multitude of factors including the Bernanke Money Printing has led to shrinking of the margins.
August 4, 2010
India looks unlikely to impose capital or currency controls like Asian countries to stem the increasing capital inflows from developed nations.The Indian government and the Central […]
June 1, 2010
China has been called the “savior” of the world’s economy as its massive $586 billion Government Stimulus and Easy Money policies sustained over 10% GDP growth […]
May 31, 2010
Clean Technology is the the Industry that every country in the world is pursuing aggressively to gain an early mover advantage .Singapore which is a financial […]
May 30, 2010
The spectacular growth in Asian economies like China,South Korea,HK,Taiwan over the last two decades has raised millions from poverty to a middle class life.This has led […]
May 27, 2010
The recent sharp correction in the S&P and other US indices has been the biggest since the March 2009 Rally.The US and other Global Stock Markets […]
May 1, 2010
One of my pet theories is that they we see a lot of distortions and oppurtunities for arbitrage is because labor is not globalized while capital […]