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Cover
Story
Deflation:
The New Damocles' Sword -- D
G Prasuna
After
more than five decades of relentless fight against inflation,
central bankers world over face a new enemy, deflation. The
prospects of a fall in price levels threatens to push the
already weak economies further down and make the likelihood
of a recovery bleak. The bitter experience of Japan, only
adds to the ever-increasing anxiety. The Fed and ECB have
taken a public stance to use every weapon in their arsenal
to avoid deflation. For many economies across the world, deflation
is the new Damocles' Sword.
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Spotlight
Currency
Markets : Beyond the greenback -- Satish
D
The
currency markets are going through some interesting times
with the dollar losing ground and other currencies gaining.
What does all this mean and what is in store?
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Case
Study
Southwest Airlines : Flying high -- N
Janardhan Rao
At
a time when the entire airline industry is struggling, Southwest
Airlines stands apart. At the core of the company’s strategy
is its ability to create a culture that fosters a sense of
commitment among employees.
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Financial
Markets
CoOperative
Bank Regulation :Enter RBI -- Ramakrishna Neti
The
Government of India had announced plans to bring the cooperative
banks under RBI and remove regulatory exemptions thereby putting
an end to an era of freeraj.
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Pension
Crisis : Looming large --
Y Chandra Sekhar
Over
the last century, pensions have extended financial support
to millions retired. However, due to the continuous bearish
trend in the financial markets, most of the pension funds
have turned red. The growing mismatch of assets and liabilities
in pension funds raised serious concerns about the future
of the retirees.
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Corporate
Strategy
MNC
SUBSIDIARIES : Making parents proud -- Anindya
Roy
Given
the poor economic conditions in various markets across the
world, many global companies are finding it difficult to be
in the black. In stark contrast, some of the Indian subsidiaries
of Multinational Companies (MNCs) are churning out profits
at rates better than their parent companies. How?
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CEO
Compensation : Frankenstein phenomenon! -- CSV
Ratna
During
the bull run of the 1990s through the 2000s, nobody bothered
to raise the issue of CEO compensation. But with slumping
times and waning earnings, shareholders are revolting against
unjustifiable CEO pay policies
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International
Finance
Bush's
Dividend Tax Cut : No Panacea -- D
G Prasuna
The
much debated dividend tax cut is finally announced. It delivers
only half of the original promise.
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Business
Environment
Labor
markets of Europe : The reforms agenda --Phani
Madhav
Mired
in economic problems, the last thing that Europe wants is
striking workforce opposing reforms.
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Conditional
Access System : Chaos or clarity? --
CSV Ratna
Broadcasters
of pay channels run the risk of losing their subscription
fee as well as advertising revenue once Conditional Access
System (CAS) comes into effect. That is why they want it to
be deferred.
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Industry
E-Business
: From hype to profits --N Janardhan
Rao
Thanks
to the brick-and-click structure, profits are in. E-business
now looks promising.
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Technology
Information
to intelligence --Amit Singh Sisodiya
Having
equipped themselves with IT infrastructure, businesses have
begun managing information. The next challenge is to convert
the information into intelligence and use the knowledge to
their competitive advantage.
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Debate
Credit
Derivatives : Is Indian banking Sector Ready?
--
Amit Singh Sisodiya
Indian
banking industry would soon be ushering into credit derivatives
regime, if the recent draft guidelines by the Reserve Bank
of India, issued on March 26, 2003, are any indication. In
a move towards improving and fine-tuning the existing risk
management practices in banks, the apex bank has decided to
allow banks to deal in credit derivatives. As per the guidelines,
the banks would be allowed to use credit derivatives to manage
risks such as those relating to lending, including buying
protection on loans and investments. For the uninitiated,
credit derivatives are over-the-counter financial contracts,
usually `off-balance sheet', that permit one party to transfer
credit risk of a reference asset, which it owns, to another
party without actually selling the asset.
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