The Wall Street was quite nervous after the bailing out of Bear Sterns by Federal Reserve. There is genuine fear of further pull down of the market.

The Economic Times reports :

With a deal in place to save Bear Stearns from bankruptcy, the company’s shares traded above the offer price Monday even as investors began turning a critical eye to other investment banks amid worries about how far the credit contagion could spread.

Despite the weekend deal in which JPMorgan Chase & Co bought Bear Stearns for a fraction of its value last week, worries that other banks had sizable exposure to troubled credit markets sent global markets tumbling. Wall Street managed to rally from sharp losses Monday as investors went bargain-hunting.

A complete collapse of Bear Stearns might have completely crushed the already-dwindling confidence in the global financial system, which has frozen up after last year’s collapse of the subprime mortgage market.

Bear Stearns was the most exposed to risky bets on the loans; it is now the first major bank to be undone by that market’s collapse. But the fact that a major investment bank could reach the verge of buckling — and be sold at such a discount — sent dismay through Wall Street and beyond.

Read the rest of this entry »

As the economy grows in India despite US slowdown, Salaries are set to be raised once again.

Financial Express reports

India is likely to top salary hikes in Asia for a fifth year in 2008, but Companies in India are finding it hard to retain talent, a new survey said Tuesday.

Indian salaries are expected to rise by an average 15.2 percent in 2008 after rising 15.1 percent last year, according to an annual survey conducted by global human resource company Hewitt Associates.

Real estate and energy Companies were seen offering the biggest hikes of 25 percent and 17.5 percent respectively.

China is expected to come in second with projected raises of about 8.5 percent, followed by the Philippines with 8.3 percent, the survey said.

However, the high salary growth is fueled by a talent demand and supply mismatch, it said.

Read the rest of this entry »

IANS news in Economic Times

The world may fret over a possible US recession but the strong economies of India and China can act as “two engines of growth” to counter its global effects, India’s Commerce Minister Kamal Nath said here Wednesday.

Nath, who is in a power-packed Indian delegation of 80 at the annual meeting of the World Economic Forum (WEF) in this snow-clad Swiss mountain resort, also coupled his comments with guarded optimism over the stalled Doha Round of trade talks.

“I am optimistic this Davos will create a greater momentum towards conclusion,” Nath said, referring to process to restart talks at the World Trade Organisation (WTO) that have made little headway due to charges of protectionism by rich and developing nations.

“I am also realistic that there is an election in the US. I am realistic that Europe is in a new phase of protectionism,” he said, even as he sought to spell out the importance of India and China to the world economy today.

“This is the first time the world is looking at a possible recession with two engines of growth - India and China,” he said, in the first significant comment by a political leader to the 2,500 delegates gathered here.

“No economy can totally decouple itself from the US.”

Although the US economy consumed goods and services worth $9.5 trillion last year, Nath said it would be important to see how much of that was wiped out by the “current crisis”.

But with greater South-South trade between developing countries, particularly India and China, he said “the magnitude of the trade can’t be the same as in the past.” Read the rest of this entry »

Economic Times reports

India has the most number of private equity (PE) funds operating amongst the BRIC markets, considered the emerging hotbed of PE action.

According to Emerging Markets Private Equity Association (EMPEA) estimates, there are some 89 VC/PE firms managing 153 funds in Brazil, about 28 firms in Russia and 115 in China while India has over 160 firms.

About 120 of these India-focused firms are either those who have raised money from outside India or are subsidiaries of non-Indian VC/PE firms. Experts opine that a growing economy, especially on the domestic side, increased entrepreneurial activity and the IT/ITeS effect is attracting newer investors to the country.

The huge number of experienced techies returning to India and setting up companies has also increased the exposure of Silicon Valley venture firms to the country.

Evalueserve’s chairman Alok Aggarwal said the regions that have traditionally received large amounts of VC/PE funding include US, UK, Canada, Germany, France, Nordics (i.e., Sweden, Finland and Denmark put together) and Taiwan. With the 2007 investment figures of $13.5 billion, India will leapfrog into the top seven regions in the world.

This increased deal activity is having its effect. “Another 40 firms are in the process of raising money for investing in Indian market,” he adds. For the record, there are different estimates by different agencies on total investments into India for 2007 ranging from $9.9 billion to $14.2 billion.

While India saw the arrival of billion dollar plus funds during the year 2007, analysts expect the country to see PE commitments of around $40 billion by 2010-11.

Alok Mittal of Canaan Partners argued that more funds could be operating in India because of the bigger investment opportunities available, compared to China or Russia, for instance. “Probably more sectors in India are open to private fund raising,” he added, explaining that a sector-wise comparison between markets like China and India could throw up interesting data.

Finally Ratan Tata’s dream has come to reality. He said ” A promise made is a promise made ” while driving the car to the podium at the auto expo in New Delhi. The car looks cute and comes in three different colours. Despite all odds and critical remarks the Tata team has overcome all conflicts and dilemmas to shape their first release. Hats off Tata Motors.

More info on www.tatapeoplescar.com

PTI News

Indian conglomerate Tatas are set to be named on Friday the top choice for buying the US auto giant Ford’s iconic British brands Jaguar and Land Rover, according to a media report.

“The group has had its 1-billion pound bid accepted by Ford, the firm has beaten off competition from rival Indian firm Mahindra and Mahindra and private equity group One Equity Partners,” Birmingham Post reported on Thursday.

The report quoted unnamed sources at Land Rover as saying, “It is definitely Tata. There is one final meeting and so long as there is no last minute hitches, which are not expected, then an announcement will be made on Friday.” The final details would be worked out in the next six weeks, it added.

The report also quoted a union official as saying that Mahindra’s bid fell flat because of links to a private equity firm as the Indian firm was working with Apollo.

“When a private equity firm buys a company, the cost of buying it often goes onto the companies books. If anything then goes wrong how do you refinance the business?” industry officer for the Transport and General Workers’ Union section of Unite, Des Quinn, said. Read the rest of this entry »

After few weeks of speculation the Citigroup board has finally appointed Vikram Pandit to head its global operations. Pandit replaces Prince was the buzz at the Wall street.

Vikram Pandit, a Nagpur-born NRI who wowed Wall Street before intense flames began licking the financial world, was on Tuesday named CEO of Citigroup, the world’s largest bank, in what many see as a crisis rescue mission.

Pandit, whose elevation had been in the air for several days, replaces the charismatic Charles O.

“Chuck” Prince III, who was forced out after the giant bank in November this year after it reported its first loss in 17 years amid a massive financial crisis. Prince had brought him into Citigroup only a few months earlier.

On Tuesday, the Citigroup board led by its chairman, former Treasury Secretary Robert Rubin fulfilled Wall Street expectation by picking Pandit as CEO, while naming Win Bischoff, who was functioning as interim CEO after Prince left, as chairman. Rubin, also a stand-in, returns to his previous duties as Citi director and chairman of the executive committee of the board.

Pandit, who is 50, is the first person of Indian origin to scale such heights in the financial world, which has many well-regarded Indian executives.  Read more Economic Times

India is next to US and Switzerland in terms of intangible assets. In today’s world intellectual capital, customer relationship, brand and mature financial markets play an upper role than fixed assets, land, machinery etc..

Economic Times reports

World champion in Tennis Roger Federer and Cricket’s Master Blaster Sachin Tendulkar  are joining hands in fighting drug addiction and criminality in youth. This is a Grand Slam event. As Tennis and Cricket put together represents the whole world.

Every Indian youth admires Sachin and worldover cricket followers rate him the best Batsman and probably next only to the legendary Sir Don Bradman. Federer is the cool, solid and talented champ of the Tennis world,..a mix of Bjorn Borg and Pete Sampras

Mid-day reports

Sachin, Federer  join hands to fight drugs, crime among youth

Vikram Pandit, head of institutional clients at Citigroup Inc, is a front-runner for the bank’s chief executive spot, according to media reports. If Pandit were made chief executive, his ascent at Citi would be fast. He joined in July, when the largest US bank closed on its purchase of his hedge fund, Old Lane Partners LP in a deal worth an estimated USD 800 million. Read more

Reuters news in Financial Express

Also read our previous article about Citibank in Bricwire

Next CEO of Citigroup Indian ?

Citigroup gets 7.5B from Abu Dhabi