When Going gets tough, the Fed Gets going …It been over a year and a half since all have been looking out for [some are watching out for] the Fed Res to bring in the new regulatory regime looking to rescue the US economy and the lot of others that the US effects, from major collapses extending the ‘too big to fail’ notion.
Senator Dodd’s new proposal got to the table a bill to empower Fed Res over all major FIs vis-à-vis just banks, against which oversight assets of about $50 billion will be delegated from Fed Res to other federal agencies. And the US President’s office would name the Fed Res President…. [think jazz like Independence of a regulating agency or Non politicizing them?.... too bad, American law makers think otherwise, under the pretext that tax payers don’t end up funding bail outs]. FYI… the Dodd Bill is widely opposed by both the Treasury and Industry for obvious reasons.
While this happens in the Yankee land, in India just a few years ago oversight of a lot of businesses for FI which rested in the Central Bank moved to the Market Regulator. Down stream flow to the Dodd bill.
Instance 2, another proposed bill to curb Prop trading by FHCs, thank fully yet a bill and so far not feasible was last heard about this. This one again, wasn’t too welcomed by the Industry and was seen as a defensive move.
About the same time, our side of the globe, a lot of firms evaluate more active prop trading that has a financially lucrative taint and authorities don’t mind.
Moral of the story, the minds at opposite sides of the globe think opposite, owing to either fundamental differences in the kind of economies that the two of these are…. or is it basic difference in their standing on the growth/ development curve. It continues to be you go north I go south story.
Monday, March 22, 2010
Sunday, March 14, 2010
High on Speed.... Higher on Drama
Last evening marked a more eventful than expected beginning to this Formula 1 season.
The Bahrain Grand Prix being the onset of this year's World Championship turned out to mark numerous must watch moments.... for the ones who lacked time... Thank me...
The drama on the track begin as soon as turn 1 of Lap 1 when Webber’s [Red Bull] engine emitted clouds spinning Kubica [Renault] and Sutil [Force India] out of the points spots.
If that was not enough, Lap 2: Chandhok [HRT] crashed out of the race. Followed by BMW Sauber not making it to the end alongwith Debutants Glock and Di Grassi [Virgin] grace a` mechanical failures. The list continued with Petrov [Renault] facing a suspension problem which was detected during tyre stop at Lap 13.
Vettel starting at pole maintained an unbeatable lead till lap 34 going to dust that late owing to a spark plug failure ,this was when the face of the race changed with F. Alonso [started 2nd on the grid] finally overtaking Red Bull with fastest lap record ~ 1 min 58 secs followed by team mate Massa [started 3rd on the grid] following suit and finally Hamilton [started 4th] making a third place finish for Mc Lauren.
Vettle till lap 49 despite machine’s give up maintained his position 4 against Roseburg [Merc] finishing 5th [started 5] and Schumi finishing 6 [started 7th].
The final score Board showed:
Ferrari with 43 points
McLaren with 21,
Mercedes GP with 18
Red Bull with 16.
As for Racers: Alonso: 25 points, Massa: 18, Hamilton: 15, Vettel: 12, Rosberg: 10 and Schumacher: 8.
After the dramatic Bahrain GP, eyes are set already southwards for the Aussie GP [March 26-28].
- The God of F1, Schumacher made a come back from his 3 year old semi-retirement with Mercedes Benz GP Petronas.
- The Track was more complex with 8 new corners added reducing the laps to 49 [circuit length ~ 6.29 km and race distance ~ 308.41 km].
- And the Much talked about new points system….
Ferrari with 43 points
McLaren with 21,
Mercedes GP with 18
Red Bull with 16.
Sunday, March 7, 2010
Vacances à Pondicherry [quick travel guide]
In fond memory of the very little good time i had in life!
Day T: After dodging [read surviving] the stardom and celebrity like attention from Men, Women and Animals in Bangalore, me and my Comrade, headed to the UT of Pondicherry on our so claimed 'Brave' Excursion.
Day: T+1: Location: Pondy [5.30 hrs] the two dames set out in the unknown.... combatting a sudden attack of 'tamil', with a "? + Grin" look [no understanding a jack]. Urgent Note to self: Paitence is virtue! Reaching the Hotel was cool.. since we weren't aware of the cardinal rule on travelling around in Pondy, "BARGAIN"... so far so good.
Experiment:
Aim: Travel around in pondy
Procedure: There we were hiring the Hotel travel guy to show us around on day 1.
Result: We showed the guy around... yes, yes, his own city which is a tourist place. [pl. check my picasa to believe this]
Observation: South Indians is that they aren't too familiar to places other than 'how to get to work from home and back' or at the most 'the one place where they " supposedly party" and dude they're more confused than me. [if u know me, u know how bad that is].
EOD: Seen the entire city around in a day.
T+ 2: The Car converts into Auto Rickshaw.. what a ride man, hero of a rickie... btw, before you start pl. bargain om fare... awesome fun....
T+3:Saw around on foot mostly.... there was so much to explore... roamed around a lot and left the town that evening to head back.
Food: Vegetarians pl. carry meals [read my Guju mates pl. carry your 'theplas']. The town doesn't offer much to eat, atleast for the vegetarians.. not many French are gourmets i guess.
Eateries:
1. Baker Street [a French Boulangerie....try out the authentic french breads and cheeses, Meringue cookies, quiches, florentins etc.]
2. Rendevous Cafe [cheap spirits, not so good service, pl. ask the Maitre d' to explain what you choose to order should you not be prepared for unwanted surprises]
3. Le Cafe [good to look at.. nicely made overlooking the pondy beach.... that's it]
4. Le Soliel [looks neat]
5. Most hotels you'd put up in, might be the safest food around.
What to do there:
1.A view to the following if you like photography [located at a distance of 5 mins. walk from each other alongside the pondy beach nr the french quarters and the eatries]: The French War Memorial, Gandhi Memorial, the Light House.
2. Visit the Kaps church [Notre Dame Des Anges]... this is not a well maintained heritage but has a cute French officers' memorial/ tennis court right across.. a total delight.
3. A few temples off the French quarters... [frequented by a lot of crowd...we well did without those]
4. Trip to Plago Paradiso [Paradise Beach]- the beach has a creek on its mouth for padel boats, speed boats, tiny expensive jet ski rides.. a ferry takes you to this regular beach on the other side [we @ mumbai dont treasure beach trips much.....though the creek is a good visit].
5. Auroville- a MUST VISIT, a photogenic place with a spiritual incline. Maitri Mandir [the golden spherical concentration hall] makes the visual attraction.
6. Good amount of shopping in auroville and even around pondy beach [we even patronised this shop called 'padumai'] for good deals remember to master the act of polite bargain till you drop. Shopping could include: Leather clutches/ pouches, paper mache articles, aroma candles, insence sticks, cloth bags, summer ware [woof!! its not even the half of the things i can think of]
All in all, this place is a must visit... pl. be adventures enough to hire a bike or atleast a bi-cycle to see around on your own on day 2. Also, remember to carry sun block [i got back along with a crazy tan]... Frequent buys must include mineral water. Pl. check your calendars before you head there, pl. avoid all religious festivals and so to say spirit absent days.
Day T: After dodging [read surviving] the stardom and celebrity like attention from Men, Women and Animals in Bangalore, me and my Comrade, headed to the UT of Pondicherry on our so claimed 'Brave' Excursion.
Day: T+1: Location: Pondy [5.30 hrs] the two dames set out in the unknown.... combatting a sudden attack of 'tamil', with a "? + Grin" look [no understanding a jack]. Urgent Note to self: Paitence is virtue! Reaching the Hotel was cool.. since we weren't aware of the cardinal rule on travelling around in Pondy, "BARGAIN"... so far so good.
Experiment:
Aim: Travel around in pondy
Procedure: There we were hiring the Hotel travel guy to show us around on day 1.
Result: We showed the guy around... yes, yes, his own city which is a tourist place. [pl. check my picasa to believe this]
Observation: South Indians is that they aren't too familiar to places other than 'how to get to work from home and back' or at the most 'the one place where they " supposedly party" and dude they're more confused than me. [if u know me, u know how bad that is].
EOD: Seen the entire city around in a day.
T+ 2: The Car converts into Auto Rickshaw.. what a ride man, hero of a rickie... btw, before you start pl. bargain om fare... awesome fun....
T+3:Saw around on foot mostly.... there was so much to explore... roamed around a lot and left the town that evening to head back.
Food: Vegetarians pl. carry meals [read my Guju mates pl. carry your 'theplas']. The town doesn't offer much to eat, atleast for the vegetarians.. not many French are gourmets i guess.
Eateries:
1. Baker Street [a French Boulangerie....try out the authentic french breads and cheeses, Meringue cookies, quiches, florentins etc.]
2. Rendevous Cafe [cheap spirits, not so good service, pl. ask the Maitre d' to explain what you choose to order should you not be prepared for unwanted surprises]
3. Le Cafe [good to look at.. nicely made overlooking the pondy beach.... that's it]
4. Le Soliel [looks neat]
5. Most hotels you'd put up in, might be the safest food around.
What to do there:
1.A view to the following if you like photography [located at a distance of 5 mins. walk from each other alongside the pondy beach nr the french quarters and the eatries]: The French War Memorial, Gandhi Memorial, the Light House.
2. Visit the Kaps church [Notre Dame Des Anges]... this is not a well maintained heritage but has a cute French officers' memorial/ tennis court right across.. a total delight.
3. A few temples off the French quarters... [frequented by a lot of crowd...we well did without those]
4. Trip to Plago Paradiso [Paradise Beach]- the beach has a creek on its mouth for padel boats, speed boats, tiny expensive jet ski rides.. a ferry takes you to this regular beach on the other side [we @ mumbai dont treasure beach trips much.....though the creek is a good visit].
5. Auroville- a MUST VISIT, a photogenic place with a spiritual incline. Maitri Mandir [the golden spherical concentration hall] makes the visual attraction.
6. Good amount of shopping in auroville and even around pondy beach [we even patronised this shop called 'padumai'] for good deals remember to master the act of polite bargain till you drop. Shopping could include: Leather clutches/ pouches, paper mache articles, aroma candles, insence sticks, cloth bags, summer ware [woof!! its not even the half of the things i can think of]
All in all, this place is a must visit... pl. be adventures enough to hire a bike or atleast a bi-cycle to see around on your own on day 2. Also, remember to carry sun block [i got back along with a crazy tan]... Frequent buys must include mineral water. Pl. check your calendars before you head there, pl. avoid all religious festivals and so to say spirit absent days.
Wednesday, February 10, 2010
Bring it on...….
Reuters report Renault dialogues with M&M to re-look at the JV, mother to the powerful sedan, the Logan which faced dropped sales after a jump start back in ’08. [the Logan deserved much better in spite of the positioning and pricing glitch]
The talks are expected to conclude in a month and a half.
Renault the power engine expert is also reported to want to enter India via their own dealer network to the tune of 15 by first half of 2011 growing to 150 by first half of 2014. [woof!!!!!]
If grapevines are to be believed Renault + Nissan are foreseen to team with Bajaj for a low cost 4 wheeler in addition to the new plant in Chennai in the pipeline [expected investment ~ INR 45 Bln, expected capacity 400,000 units] and Nissan was keener than Renault here.
That doesn’t just bring us good cars but indicates positivity in the global outlook towards the local consumer base. While India Inc. stays young the coming decade and after, the consumer base the Renault India chief predicts could grow to ~ 300% of now.
Hoping that happens soon and we finally see some Clios and Magane on desi roads. [secretly wish and pray to see the Niss. Teana more often- this is notional extension of thots]
With keen interest from other bigwies like Volkswagen doing omnipresent PR with their ‘DAS AUTO’ campaign; Auto expo frenzy by Honda [with its small car], the Electric Hyundai i10, the India market surely comes out shining [and ofcourse Banks die to fund these buys for you].
As the gadi market sees up and secret prayers for stability in oil prices remain unanswered, a fleet of the new makes is so welcomed!
JIC info: Yesterday has seen a ~ 3% up in prices of the French Renault S.A. and their ownership the Jap Nissan Motor Co. and while M&M saw a drop.
The talks are expected to conclude in a month and a half.
Renault the power engine expert is also reported to want to enter India via their own dealer network to the tune of 15 by first half of 2011 growing to 150 by first half of 2014. [woof!!!!!]
If grapevines are to be believed Renault + Nissan are foreseen to team with Bajaj for a low cost 4 wheeler in addition to the new plant in Chennai in the pipeline [expected investment ~ INR 45 Bln, expected capacity 400,000 units] and Nissan was keener than Renault here.
That doesn’t just bring us good cars but indicates positivity in the global outlook towards the local consumer base. While India Inc. stays young the coming decade and after, the consumer base the Renault India chief predicts could grow to ~ 300% of now.
Hoping that happens soon and we finally see some Clios and Magane on desi roads. [secretly wish and pray to see the Niss. Teana more often- this is notional extension of thots]
As the gadi market sees up and secret prayers for stability in oil prices remain unanswered, a fleet of the new makes is so welcomed!
JIC info: Yesterday has seen a ~ 3% up in prices of the French Renault S.A. and their ownership the Jap Nissan Motor Co. and while M&M saw a drop.
Sunday, January 31, 2010
Soros on Gold…… But is India different??
G. Soros the legend that he is puts his finger on gold [not that he lacked the much proven Midas touch anyway]. Views say Gold in due for a fall…. although, the world can’t see that happen till the markets own handsome liquidity and/or inflations at refuel.
While this in Tout Le Monde, how do we look locally…..?
• Jan 29 sees our dear RBI hiking the interest rate [CRR up 75 bps- which more than market expectations] i.e. supply of money reduces beyond anticipation.
• The above is also supposed to curb inflation [NO giggling please- not that most see that happen].
• So the asset bubble that the gold is seen as, the above should lead to break.
Why that ain’t happening in India:
• We have enormous fantasy for the yellow metal [read Jewellery….. ask your women], this translates into constant demand.
• Indians don’t buy gold as investments; they buy them as ‘personal assets’ i.e. a chunk of household savings are mobilised in this direction.
• Both the above make things very hopeful for the seller to see a multiplier in rise of prices and divider for fall… so it’s a rise and rise story atleast in the short term.
So what do we do now…… continue buying either ways. Needless to mention watch out for marginal falls and time your buy accordingly. A drastic fall or the bubble break ain’t happening in our land any soon.
While this in Tout Le Monde, how do we look locally…..?
• Jan 29 sees our dear RBI hiking the interest rate [CRR up 75 bps- which more than market expectations] i.e. supply of money reduces beyond anticipation.
• The above is also supposed to curb inflation [NO giggling please- not that most see that happen].
• So the asset bubble that the gold is seen as, the above should lead to break.
Why that ain’t happening in India:
• We have enormous fantasy for the yellow metal [read Jewellery….. ask your women], this translates into constant demand.
• Indians don’t buy gold as investments; they buy them as ‘personal assets’ i.e. a chunk of household savings are mobilised in this direction.
• Both the above make things very hopeful for the seller to see a multiplier in rise of prices and divider for fall… so it’s a rise and rise story atleast in the short term.
So what do we do now…… continue buying either ways. Needless to mention watch out for marginal falls and time your buy accordingly. A drastic fall or the bubble break ain’t happening in our land any soon.
Sunday, January 24, 2010
Yes, Mr. President!!
This happened when the Nobel peace winning President hinted proposed [tough] limits [if not a ban] on trading activities by FHCs.
A Brief: FHC [Financial Holding Companies] are Banks designated by the US Fed Res. allowed to do a few more business than mere Banks. FHCs have an access to Fed borrowing window against which the Federal Reserve becomes a Regulator for such entities.
Last fall witnessed a few bigwie FIs in the US being designated as FHCs owing to the economic downturn to the Securities businesses [read spreading to the entire US economy = most of the world]. While these new FHCs celebrate [or otherwise] their anniversary, the Presidential office announced they might shortly not be trading prop + not even sponsor PE and Hedge funds = STUNTED/ NO GROWTH.
World over this is seen as a very defensive and arbit move on Government’s part to attempt cutting down of activity as against actually building a robust risk regulating mechanism.
While this happens far in the US, we in India consequently saw a 112 bps fall in the Sensex end of last week and recovering from a 100 fall to ~ 40 bps fall as this post was published, ofcourse the speculation over Jan 29 from RBI also contributed to this, leading to a lot of banking stocks falling well over 100 bps [time to buy for a long term view]
Views from Regulators get increasingly defensive not just in the US even locally, as lot actually expect interest rate hike as the Cen. Bank's answer to inflation and even graver supply side issues that we as an economy face uniquely as compared other EMs.
Follows suit is SEBI with rather futuristic plans for the Investment Management Industry each new day. These are great plans and noble thots but are viewed as ‘jaw dropping to the floor’ moves in the current scenario with the industry not even skimming the markets leave alone penetrating in terms of savings mobilizations in about 2 formal decades of existance.
Anyways, there's not too much we can do about Regulators but say YES and follow!! Adieu :( !
A Brief: FHC [Financial Holding Companies] are Banks designated by the US Fed Res. allowed to do a few more business than mere Banks. FHCs have an access to Fed borrowing window against which the Federal Reserve becomes a Regulator for such entities.
Last fall witnessed a few bigwie FIs in the US being designated as FHCs owing to the economic downturn to the Securities businesses [read spreading to the entire US economy = most of the world]. While these new FHCs celebrate [or otherwise] their anniversary, the Presidential office announced they might shortly not be trading prop + not even sponsor PE and Hedge funds = STUNTED/ NO GROWTH.
World over this is seen as a very defensive and arbit move on Government’s part to attempt cutting down of activity as against actually building a robust risk regulating mechanism.
While this happens far in the US, we in India consequently saw a 112 bps fall in the Sensex end of last week and recovering from a 100 fall to ~ 40 bps fall as this post was published, ofcourse the speculation over Jan 29 from RBI also contributed to this, leading to a lot of banking stocks falling well over 100 bps [time to buy for a long term view]
Views from Regulators get increasingly defensive not just in the US even locally, as lot actually expect interest rate hike as the Cen. Bank's answer to inflation and even graver supply side issues that we as an economy face uniquely as compared other EMs.
Follows suit is SEBI with rather futuristic plans for the Investment Management Industry each new day. These are great plans and noble thots but are viewed as ‘jaw dropping to the floor’ moves in the current scenario with the industry not even skimming the markets leave alone penetrating in terms of savings mobilizations in about 2 formal decades of existance.
Anyways, there's not too much we can do about Regulators but say YES and follow!! Adieu :( !
Sunday, January 17, 2010
HAITI - yet again
Yet Another Natural Disaster [Earthquake @ 7 on the Ritcher's scale, abt 200 yrs worst, with death toll ~ 500,000] makes The Republic of Haiti [~'Ayiti'] visible on world's focal map... here's some trivia......
Haiti and World Topography:
The Republic of Haiti is a French speaking Carribean country. Sharing borders with Cuba and Dominican Republic. The Peninsula is surrounded by Atalntic Ocean on one side and Carribean Sea on two.
Haiti and World History:
Haiti is splended with inspiring independence tales being the first independent nation in Lat-Am. The only colony with a with a successful slave rebel, other rebels against the Polish and French,US occupancy and Dictatorship. The country not owns rich cultural heritage, the history justifies the national motto of 'unity'.
Haiti and Disaster Map:
4 Tropical Hurricanes [2008]
Killer storms in 2005 and 2004
Floods in 2007, 2006, 2003 (twice) and 2002
Reasons known to be a deadly combination of poverty, the topography of the country, socio-economic problems, close to 'zero' building standards/ disaster management/ environmental standards and poverty again.
Additonally, Haiti suffers from massive social deprivation and a high HIV/AIDS rate [~ 4.5 percent of the population] coupled with life expectancy of just ~52 years and scarce job scene.
Haiti and World Economics:
GDP: USD 11.57 Bln [nominal: 6.9 bln]
PCI: USD 1317 [nominal: 790]
making Haiti the poorest country in the western hemisphere.
World Bank sources that per capita income is considerably less than one-tenth the regional average. Half the population survives on subsistence agriculture and remittances from relatives working in the US and EU [flip side retaining HR for local infrastructural development is a 'to be or not to be' situation dropping disaster management way down government's priority list].
Lessons Haiti has taught us:
Say yes to:
1. Technology to detect early warning signals to disasters make new governmental focus [also a must in India though better we're not too far here]
2. Norms for building structures providing scope as disaster getaways.
Say no to:
1. Deforestation [in light of constantly forests shrinking to green zones and green zones shrinking to 'parks', its wake up time]
2. Concentrated population ['urbanisation' due to concentration of opportunites ---> densified population ----> weak disaster management performance]
Disaster Aid:
1. TPS:
US to grant Haitians the Temporary protected status apart from the much talked about financial aid. [TPS is an American provision that grants temporary protection from deportation to nationals of a country in which environmental or political events have occurred which make it temporarily unsafe to deport them or when armed conflict poses a serious threat to public safety.]
2. Red cross - IFRC is all over the place for non- governmental disaster aid operation and UN leaves no stone unturned in aid of and on behalf of member nations.
3. For helps you'd like to extend: [each drop makes the ocean]
Haiti and World Topography:
The Republic of Haiti is a French speaking Carribean country. Sharing borders with Cuba and Dominican Republic. The Peninsula is surrounded by Atalntic Ocean on one side and Carribean Sea on two.
Haiti and World History:
Haiti is splended with inspiring independence tales being the first independent nation in Lat-Am. The only colony with a with a successful slave rebel, other rebels against the Polish and French,US occupancy and Dictatorship. The country not owns rich cultural heritage, the history justifies the national motto of 'unity'.
Haiti and Disaster Map:
4 Tropical Hurricanes [2008]
Killer storms in 2005 and 2004
Floods in 2007, 2006, 2003 (twice) and 2002
Reasons known to be a deadly combination of poverty, the topography of the country, socio-economic problems, close to 'zero' building standards/ disaster management/ environmental standards and poverty again.
Additonally, Haiti suffers from massive social deprivation and a high HIV/AIDS rate [~ 4.5 percent of the population] coupled with life expectancy of just ~52 years and scarce job scene.
Haiti and World Economics:
GDP: USD 11.57 Bln [nominal: 6.9 bln]
PCI: USD 1317 [nominal: 790]
making Haiti the poorest country in the western hemisphere.
World Bank sources that per capita income is considerably less than one-tenth the regional average. Half the population survives on subsistence agriculture and remittances from relatives working in the US and EU [flip side retaining HR for local infrastructural development is a 'to be or not to be' situation dropping disaster management way down government's priority list].
Lessons Haiti has taught us:
Say yes to:
1. Technology to detect early warning signals to disasters make new governmental focus [also a must in India though better we're not too far here]
2. Norms for building structures providing scope as disaster getaways.
Say no to:
1. Deforestation [in light of constantly forests shrinking to green zones and green zones shrinking to 'parks', its wake up time]
2. Concentrated population ['urbanisation' due to concentration of opportunites ---> densified population ----> weak disaster management performance]
Disaster Aid:
1. TPS:
US to grant Haitians the Temporary protected status apart from the much talked about financial aid. [TPS is an American provision that grants temporary protection from deportation to nationals of a country in which environmental or political events have occurred which make it temporarily unsafe to deport them or when armed conflict poses a serious threat to public safety.]
2. Red cross - IFRC is all over the place for non- governmental disaster aid operation and UN leaves no stone unturned in aid of and on behalf of member nations.
3. For helps you'd like to extend: [each drop makes the ocean]
The Haitian Embassy : Vellard View, Pedder Road, Mumbai- 400026. Telephone : (+91-22) 24973844 Faximile : (+91-22) 26326604
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