Recession Again ?

[sgiitk]

@srishiva; Yes it may help in the short term, but in the long term they will have to sacrifice some sacred cows, and be willing to face the unions (and Mamta's) wrath.

[Bookkeeper]

Originally Posted by srishiva

RBI has cut interest rates. Hope it will do something good.

For starters it may help to reduce EMI outflow of individual housing loan consumers who have taken loans on floating rate basis. However, to bring back the economy on the track a lot more needs to be done and most of it has to be done by the folks in the legislature.
1.To begin with Pranab uncle needs to take back his statement of introducing a new tax provision to tax with retrospective effect all international transactions that have resulted in transfer of Indian assets.

2. The GAAR guidelines recently introduced need to revised for they have sacred away FIIs from the market

3. Rather than putting major infrastructure projects on the back-burner, the government should give a much needed shot in the arm to this sector by putting them on the fast track rather than delaying them and increasing their cost. I believe the best example would be the dedicated railway freight corridor

4. Government needs to address the issue of fiscal deficit as it most of this deficit is not because of capex but is revenue in nature. Further it should be ensured that the targets set down by the FRBM Act are revised and followed, we do not want a sovereign credit crisis in our own backyard.

5. The public sector undertaking must be allowed to take decisions that are economically viable and sustainable(read Coal India and LIC)

[sgiitk]

Originally Posted by Bookkeeper

1.To begin with Pranab uncle needs to take back his statement of introducing a new tax provision to tax with retrospective effect all international transactions that have resulted in transfer of Indian assets.
2. The GAAR guidelines recently introduced need to revised for they have sacred away FIIs from the market
3. Rather than putting major infrastructure projects on the back-burner ...,
4. Government needs to address the issue of fiscal deficit .....
5. The public sector undertaking must be allowed to take decisions that are economically viable and sustainable(read Coal India and LIC)

1 & 2 forget the foreigners. even Indian corporates are scared. See the Top Ten, most of their planned investment is overseas. It will take only an iota for Tata's to become Irish owned!!
3. For Infra you need money, which is not in abundance.
4 & 5. Get rid of the 'so called' crown jewels (I mean over 50%). Use the money you get the reduce the debt, and not squander it in schemes are MNREGA, NRHM, and the lot. PSUs will get efficient only with the big sword on their heads. Instead pay off the debt, and reduce the deficit. The only reason we have not had a ratings drop is that others are not much better.

As for the media less said the better.

Just came across this link which echoes what I have said in the earlier post.

Don't take India's growth for granted: Ruchir Sharma, Morgan Stanley Investment - The Economic Times

Mods can you please merge with the post above.

[lambuhere1]

594 Bankers Resignations in the world since last Sep and still growing

Source :
American Kabuki: 594 BANKER RESIGNATIONS

[mb_jg]

I heard yesterday from a friend that Infosys is not paying out ANY annual salary hikes this year! Is this true?

[mm403]

Originally Posted by mb_jg

I heard yesterday from a friend that Infosys is not paying out ANY annual salary hikes this year! Is this true?

Yes there were reports in the media regarding the same. Doubt whether any team bhpian from there would be able to confirm as this is something internal to organization

[MutantX]

mm403 - nothing is internal to any organization. If infosys doesnt pay its anual hike, people will leave to join other companies. Recession is the last thing we want in the present global scenario. We are already battered and companies having most of their projects/clients in Europe will face huge hardships.

[anujmishra]

Originally Posted by mb_jg

I heard yesterday from a friend that Infosys is not paying out ANY annual salary hikes this year! Is this true?

Yes, my friend who work for Infy confirms the same. Some, 2 years back they had done same thing but after 4 - 5 months they had given hike comparatively less than market standard.

I feel Wipro, TCS, Infy etc. are money minting company and provides very less to employee. All of them sat on huge huge cash reserves. Regarding Infy, it looks like present leadership are not capable enough as it was there in past (Nandan, NarayanMurthi etc.).

[ssh1979]

Originally Posted by mb_jg

I heard yesterday from a friend that Infosys is not paying out ANY annual salary hikes this year! Is this true?

What's there to know from an Infosys employee? The news is out in the papers, and so are interviews of the CFO.

[kartikk]

This is an Infy only problem, or rather Infy is more affected than say a TCS or HCL, others as it seems are able to manage the lower growth better. Just some data point I was reading on Infy, they have hired about 35K new employees and their current utilization isn't going up.

Given everything else remains as is, to a external person that only means the current management is expecting a higher attrition rate. (Only my view not a fact)

[manolin]

almost finishing a week where I had no billing hours. At a premier corporate law firm. Recession seems to be back.

[Oxy]

Just read this in the Times of India today. HSBC to sack over 300 Indian employees.

HSBC to sack over 300 from banking ops in India - The Times of India

These are sureshot signs of recession coming back I think.

[benbsb29]

Infy has no money to offer hikes to its employees, but has money for acquisitions. Read about this move for an acquisition in the papers a few days back. Interesting.

[sgiitk]

UBS downgrades India's share ratings.

Nero fiddled while Rome burnt!

[MutantX]

All European banks are in RED! "How do I know?" because I work in the world's largest european bank. No American or European bank has the right way to judge asian markets as most of them are biased towards their local markets.

S&P & Moodys usually rate other markets (read european & asian) lesser heavy weights when compared to the US! for obvious reasons. They always want maximum investments to their markets rather than asian markets.

Europe is still not out of trouble. Wait and watch as for french banks, nothing will happen to them as they are considered to pillars of french government.