July 25, 2013

Importer Nation – How a Billion Lives are being Destroyed

India imports billions of dollars of goods and services despite having the resources and manpower to manufacture the goods/services at lower costs on its shores. India’s […]
April 3, 2013

Quick Guide to India's Education Industry

Indian Education Industry Literacy in India is one of the key deterrents to socioeconomic progress of the country. The Indian literacy rate currently stands at 74%, […]
March 25, 2013

The Rise of the Robots – Global Labor in more trouble

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 […]
March 12, 2013

3 Major Verticals affecting the International Business

International Business After globalization becoming the buzzword in today’s world, international business has given a new shape and has also created a new dimension in the […]
November 27, 2012

Student Loan – The Cause of next Financial Crisis?

Is student Loan really the cause of next financial crisis The question might seem a little absurd, but it’s worth taking a look. It is reported […]
May 14, 2012

Pros & Cons of Globalization

Globalization refers to the increase in international trade & commerce amongst the different countries, through the  reduction of geographic barriers. With the rapid innovation of smart […]
February 7, 2012

Global Stock Brokers Shut and Cut as Financial Industry Downsizes

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

Australia & New Zealand Banking Group Joins in the Banking Job Elimination Party , BoFa trillion dollar basket case inline to cut more thousands

Australia & New Zealand Banking Group , is going to cut 900 jobs are the Australian real estate market slumps. Financial Jobs are facing a carnage with banks cutting down left , right and centre .ANZ which is one of the 4 largest banks in Australia joins its couterparts around the world in sharply cutting banker jobs as the global slowdown bits the financial industry. Note the outlook in the Financial Industry is that of a Depression even as the world economy faces some hiccups from the European Debt Crisis . Real Estate Markets have been distorted globally by bad regulation , low interest rates etc. While China is seeing the first signs of a troubled real estate market, USA has been feeling the effects since the last 3-4 years. Australia has also joined in with the popping of the real estate bubble. Alongwith construction and real estate companies , financial companies who make the real estate mortgages are the worst hit in general.
January 12, 2012

Financial Industry in a Depression of its Own RBS Firing 45% of pre crisis Global Banking and Markets Headcount

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 9, 2012

Investment Banking Job Carnage continues as Bank of America Fires 20% of its Asian Managing Directors

Bank of America had already announced thousands of job cuts earlier.Today it cut 20% of its Asian MDs as it tries to cope with the sinking of investment banking revenues.Other investment banks like RBS,Nomura,BNP Paribas,Societe Generale are also cutting jobs with a vengeance.Goldman Sachs also announced big time salary cuts for its partners and fixed income trading.
January 7, 2012

Financial Jobs Killed in Tens of Thousands as Industry Shrinks, Global Oversupply of Labor Globalization Consequence

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 5, 2012

Massive Job Cuts (RBS,Pepsi) announced globally as World Economy continues to Falter

Seeing Stocks Markets these days would make one think that the world economy has managed surpass the problems of the European Union Debt Crisis,the slowing of China,India's governance led slowdown etc.However big global companies continue to bunker down reducing job headcount and reducing investment.Despite record levels of cash and big profits,MNCs are not increasing their investment giving a thumbs down to efforts by policymakers to boost growth through record low interest rates.RBS has been rumored to cut 10,000 jobs in its investment banking division while Pepsi which has a mostly recession proof business too is cutting down.India's beleagured airline Kingfisher is set to cut 2000 jobs as well.
July 5, 2011

Education Companies in India – Bad Government School Education offers Huge Market (Everonn,Educomp,CPIL,NIIT,Manipal)

Education is a critical requirements for India today as it lags behind other Asian countries in education indices with vast swathes of its population being illiterate.India's hopes of becoming a major power will remain a pipedream till most of its labor force is educated and productive. As the country strives to become an economic superpower, need for high-quality education, at all levels, will increase. Not only is India deficient in providing primary eduction but due to the higher education costs, many students give up their decisions of pursuing higher studies. But, the emergence of education companies in India has led to a significant change in the scenario. They provide need based education solutions to facilitate the process of interaction between students, teachers and parents. These companies are coming up with technology based educational solutions to meet the educational needs of schools and colleges. These contents can be accessed from any part of India and other countries by interested individuals. They offer digitized content which can be disseminated through 3G spectrum mobile phones, broadband and other sources.
June 30, 2011

China lowers Tax on Poor as Rising Inflation,Income Inequality (Gini Coefficient at 0.47) reaches Dangerous Levels

China has increased the tax exemption limits for urban workers by 80% to $540 a month as soaring inflation and rising income inequalities has reached dangerous levels.Note increasing corruption and vast income inequalities have led to increasing incidences of violence and riots in the country.The prices of essential commodities like food and fuel have been increasing rapidly like in the rest of the developing world.Despite the central bank increasing interest rates,the prices have hardly moderated.Pork prices have touched new records making the life of the poorest quite unbearable.Note Gini's coefficient in China has reached 0.47 which is very high.While economic prosperity has increased,a vast section of the population remains poor.This is apparent in the fact that only 24 million workers out of 300 million urban workers earn more than $6500 per year .
February 7, 2011

India's Desperate,Growing Unemployment as more than 100,000 jostle for 400 Four Dollars a Day Jobs

India's Fast 8-9% GDP Growth has become the envy of the developed world groping with anemic growth rates of 1-2% and rising sovereign debt burdens.Asia led by India and China are the new engines of growth of the global economy.However a close examination of the growth shows the rising strains and inequality.Most of the growth in India has been a jobless one with capital intensive sectors leading the way.While some service sectors like the IT and BPO Industry have also grown at a rapid pace,it has only affected a minuscule portion of the Indian population.The rest continue to wallow in misery and poverty which is reflected in the growth of Naxalism.India's education infrastructure is quite woeful with majority of graduates unemployable.This has led to a growing army of unemployed half education youth fighting to get low end jobs.Unlike China,India's industry forms just 30% of India's GDP and majority are still employed in agriculture.Most of India's service industry too constitutes of low value add,low paying jobs.With growing communication and information,the few good low end jobs on offer leads to a desperate jostling.Public sector jobs in railways,paramilitary are especially lucrative offering job security and a decent social position.This has led to increasing clashes.
November 21, 2010

Rise of Social Networking in India – An Incredible 8 out of 10 School Students Hooked

A Recent Survey conducted by TCS shows that 85% of School Students were hooked on to Social Networking.With poll of 10,000 students taken amongst students in the range of 12-18 from 11 cities,the sample may not be an exact one.However it shows that around 8 out of 10 school students are members of Networking sites such as Myspace,Facebook,Orkut and others.Orkut continues to be the dominant SN website despite its poor performance globally.Facebook has been rising exponentially with some students spending 2 hours or more everyday on Facebook.The rise of Social Networking portends important changes for marketers and educationists.Note Google and Wiki are also well represented with school students using them increasingly to access information and entertainment.
September 15, 2010

Career Point (CPIL) IPO – Shady Management,Falling Margins,Regulatory Risk and Expensive Valuation

Shady Management - Income Tax Raids on the company and its promoters found $1.3 million in unaccounted cash and jewelery,cash and documents were impounded.The promoters have been accused of falsifying accounts,evading tax and Registrar of Companies (ROC) and Service Tax Department have also served notices. Expensive Valuation - The company will come out with a valuation of P/E of 30-32x which is more expensive than other listed education companies.At least Prakash Steelage with a corrupt management had the decency to come with a discount Summary The only thing to like about this company is the sector that it operates in.However Shady Management,Super High Valuation and Regulatory Risk makes this company a strictly no subscribe.However given the shenanigans being openly perpetrated in the Indian Stock Market don't be surprised to see a 100% Listing Gain.
September 8, 2010

In China and India,it Pays to be a Skilled Blue Collar Worker than a While Collar one

Increasing College Education in Developing Countries has led to Unemployement and Low Wages for White Collar Workers.The increasing number of people armed with College Degrees has […]
May 30, 2010

Asian White collar workers face Unemployment and Low Wages due to Increasing College Education

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 […]