“The headcount reductions have begun and will continue into 2009… the company also plans to forgo 2009 salary increases in most of the company’s markets,” Unisys Corporation said in a statement.

Unisys said that it is exploring a wide range of cost-reduction options and that actions currently underway are expected to reduce its annual cost structure by more than USD 225 million.

The cost-reduction actions –led by new Unisys Chairman and CEO Ed Coleman — are part of an overall programme to simplify the company’s business structure, concentrate its resources more effectively and drive improved market success and profitability, Unisys added.

The initial cost-reduction actions are focused on reducing selling, general and administrative (SGandA) expenses and controlling or reducing labor costs across the board.

“The company plans to reduce its spending on third-party expenses, facility consolidations, head-count reductions and a suspension of company matching contributions to the US 401(k) plan, which had been costing about USD 50 million annually,” the statement added.

http://in.news.yahoo.com/241/20081223/1265/tbs-unisys-to-axe-1-300-jobs-suspends-sa.html

In an interview with Reuters, Rachid Benmessaoud, the Bank’s acting country director to India, said some $3 billion of the loan will focus on areas most affected by the global financial crisis, including state-owned and housing banks, small- and medium-sized enterprises and infrastructure.

“The capital market is drying up in India and we have seen that a number of commercial state banks are not able to access long-term financing,” Benmessaoud told Reuters on Friday.

“Because of the financial distress, certain companies will not be able to repay these banks so their non-performing assets are likely to increase.”

He said the World Bank would evaluate the needs of the 27 state-run banks over the next month.

The $14 billion injection over three years comes as India’s economy, which was expected to avoid the worst of the global financial crisis, is rapidly losing steam, with industries such as automobiles, real estate and exports reeling as the world’s major economies tip into recession and credit remains tight.

Factory output in India fell for the first time in more than 13 years in October, the latest evidence of a rapid economic slowdown.

In many emerging market economies, the issue is that global markets have malfunctioned so severely that they cannot quickly access the capital they need, as banks hoard money and refuse to lend to each other.

In an attempt to ease the cash crunch in the system, the Reserve Bank of India has cut banks’ cash reserve requirements by 350 basis points since August and lowered its key lending rate.

CREDIT CRUNCH

Benmessaoud said despite government action to contain the effects of the global financial squeeze, state banks remained reluctant to lend to companies.

“As a result some companies may not be able to have access to financing for their investments,” he said.

The World Bank’s growth projections for developing countries this week forecast India’s economy would slow dramatically to 5.8 percent from 6.3 percent in 2008, with a recovery to 7.7 percent in 2010.

“Growth is a concern,” Benmessaoud added.

He said the World Bank lending strategy would target increased assistance to India’s seven poorest states including Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Orissa, Rajasthan and Uttar Pradesh, which account for a large number of India’s poor.

Benmessaoud said lending will focus on infrastructure development, especially providing India’s poorest with electricity and water, and strengthening the capacities of local authorities to use federal money more effectively.

No Indian city provides water 24 hours a day, 7 days a week, and only half the population has access to safe drinking water, while 40 percent of India’s 600,000 villages are not connected to a road.

World Bank funding will also support middle-income states like Andhra Pradesh, Karnataka, Punjab, Tamil Nadu, Haryana, Gujarat, and Maharashtra by tackling poorer regions, and addressing the challenges emerging from rapid growth, compounded now by the global economic downturn.

http://in.news.yahoo.com/137/20081215/738/tnl-world-bank-to-aid-india-banks-in-new.html

The cuts announced by Chief Executive Vikram Pandit on Monday affect 15 percent of Citigroup’s workforce, and are in addition to 23,000 jobs eliminated between January and September.

Citigroup plans to slash expenses by as much as 20 percent, and spend a total of $50 billion to $52 billion in 2009. That compares with $61.9 billion over the last four quarters.

The cuts will be global, affecting many regions and business lines, including the retail and investment banks, a person close to the matter said. About one-half will come from layoffs and attrition, and the rest from the sale of units, such as the German retail banking business.

Pandit became Citigroup’s chief executive last December, and has faced much criticism from investors and others for failing to implement a workable turnaround plan. The New York-based bank has lost $20.3 billion in the last year, and some analysts do not expect it to make money before 2010.

“As the economy continues to weaken they will have greater credit losses,” said Michael Holland, founder of money manager Holland & Co in New York. “Cuts will lessen the losses, but they in no way guarantee profitability.”

Pandit told employees in a memo that Citigroup has spent the last year “getting fit,” and projects a “difficult” 2009 for clients and customers.

Citigroup’s latest cuts are the most by any U.S. company since the global credit crisis began last year. They are also the second most ever, trailing the 60,000 that International Business Machines Corp <IBM> announced in 1993, according to outplacement firm Challenger, Gray & Christmas Inc.

The latest cuts would leave Citigroup with about 300,000 employees, down 20 percent from the end of 2007 and about the same number it had at the end of 2005. People at the bank said the cuts should be made by the first couple of months of 2009.

STOCK UNDER PRESSURE

Shares of Citigroup, a component of the Dow Jones industrial average, fell 19 cents, or 2 percent, to $9.33 in afternoon trading on the New York Stock Exchange.

Last week, Citigroup stock fell into the single digits for the first time since Sanford “Sandy” Weill created the bank in 1998 from the merger of Travelers Group Inc and Citicorp.

Well over 100,000 jobs have been lost at the world’s largest banks and brokerages since the global credit crisis began. In the last month, Goldman Sachs Group Inc began cutting 3,200 jobs, and Morgan Stanley said it will cut 10 percent of jobs in the unit housing its investment bank.

Citigroup said it has a “very strong” capital position, and according to the person close to the matter has no need to further cut its dividend, which has already been reduced twice this year.

Still, many investors remain wary. Through Friday, the bank’s stock was down 68 percent this year, leaving Citigroup with a market value of $51.9 billion.

That’s barely twice the $25 billion of capital it received from the U.S. Treasury Department’s bank bailout plan, and down from more than $270 billion in late 2006.

“We have a bull market in fear,” said Henry Asher, president of Northstar Group Inc in New York.

Citigroup also said its board will make decisions on executive compensation after Dec. 31.

That prompted criticism from New York Attorney General Andrew Cuomo, who urged the bank to follow Goldman’s decision on Sunday not to pay bonuses to top executives this year.

“It seems only fair that top executives should shoulder their fair share of these difficult economic times,” Cuomo said. “It would send exactly the wrong message for Citigroup’s top brass to collect bonuses while investors, taxpayers and now Citigroup’s own employees suffer.”

DIVERSIFICATION DOESN’T HELP

Citigroup was built principally by Weill, who ceded control to Pandit’s predecessor, Charles Prince, in 2003. Analysts have said Citigroup never invested enough in technology or to make the bank’s various parts work well together.

Its geographic diversity, including operations in more than 100 countries, is now also working against it as customers in such countries as Brazil, India and Mexico find it harder to stay current on payments.

At the same time, Citigroup’s ability to grow at home is relatively limited. Last month, Wells Fargo & Co derailed Citigroup’s attempt to buy Wachovia Corp and its $418.8 billion in deposits.

The bank has tried to downplay reports of dissension among directors regarding the performance of Pandit and the bank’s chairman, Sir Win Bischoff. Last week, lead director Richard Parsons said the board supported management’s plans.

http://in.news.yahoo.com/137/20081118/736/tnl-citigroup-to-slash-52-000-jobs-sees.html

——————————-
WITH personal account deposit bank of $1500 billion in foreign reserve which have been misappropriated, an amount 13 times larger than the country’s foreign debt, one needs to rethink if India is a poor country?.

DISHONEST INDUSTRIALISTS, scandalous politicians and corrupt IAS, IRS, IPS officers have deposited in foreign banks in their illegal personal accounts a sum of about $ 1500 billion, which have been misappropriated by them. This amount is about 13 times larger than the country’s foreign debt. With this amount 45 crore poor people can get Rs 1,00,000 each. This huge amount has been appropriated from the people of India by exploiting and betraying them.

Once this huge amount of black money and property comes back to India , the entire foreign debt can be repaid in 24 hours. After paying the entire foreign debt, we will have surplus amount, almost 12 times larger than the foreign debt. If this surplus amount is invested in earning interest, the amount of interest will be more than the annual budget of the Central government. So even if all the taxes are abolished, then also the Central government will be able to maintain the country very comfortably.

Some 80,000 people travel to Switzerland every year, of whom 25,000 travel very frequently. ‘Obviously, these people won’t be tourists. They must be travelling there for some other reason,’ believes an official involved in tracking illegal money. And, clearly, he isn’t referring to the commerce ministry bureaucrats who’ve been flitting in and out of Geneva ever since the World Trade Organisation (WTO) negotiations went into a tailspin!

Just read the following details and note how these dishonest industrialists, scandalous politicians, corrupt officers, cricketers, film actors, illegal sex trade and protected wildlife operators, to name just a few, sucked this country’s wealth and prosperity. This may be the picture of deposits in Swiss banks only. What about other international banks?

Black money in Swiss banks — Swiss Banking Association report, 2006 details bank deposits in the territory of Switzerland by nationals of following countries:

Top five

India—- $1,456 billion
Russia—$ 470 billion
UK ——-$390 billion
Ukraine – $100 billion
China —–$ 96 billion

Now do the maths – India with $1456 billion or $1.4 trillion has more money in Swiss banks than rest of the world combined. Public loot since 1947: Can we bring back our money? It is one of the biggest loots witnessed by mankind — the loot of the Aam Aadmi (common man) since 1947, by his brethren occupying public office. It has been orchestrated by politicians, bureaucrats and some businessmen. The list is almost all-encompassing. No wonder, everyone in India loots with impunity and without any fear.

What is even more depressing in that this ill-gotten wealth of ours has been stashed away abroad into secret bank accounts located in some of the world’s best known tax havens. And to that extent the Indian economy has been stripped of its wealth. Ordinary Indians may not be exactly aware of how such secret accounts operate and what are the rules and regulations that go on to govern such tax havens. However, one may well be aware of ‘Swiss bank accounts,’ the shorthand for murky dealings, secrecy and of course pilferage from developing countries into rich developed ones.

In fact, some finance experts and economists believe tax havens to be a conspiracy of the western world against the poor countries. By allowing the proliferation of tax havens in the twentieth century, the western world explicitly encourages the movement of scarce capital from the developing countries to the rich.

In March 2005, the Tax Justice Network (TJN) published a research finding demonstrating that $11.5 trillion of personal wealth was held offshore by rich individuals across the globe. The findings estimated that a large proportion of this wealth was managed from some 70 tax havens.

Further, augmenting these studies of TJN, Raymond Baker — in his widely celebrated book titled ‘Capitalism’s Achilles Heel: Dirty Money and How to Renew the Free Market System’ — estimates that at least $5 trillion have been shifted out of poorer countries to the West since the mid-1970.
It is further estimated by experts that one per cent of the world’s population holds more than 57 per cent of total global wealth, routing it invariably through these tax havens. How much of this is from India is anybody’s guess.

What is to be noted here is that most of the wealth of Indians parked in these tax havens is illegitimate money acquired through corrupt means. Naturally, the secrecy associated with the bank accounts in such places is central to the issue, not their low tax rates as the term ‘tax havens’ suggests. Remember Bofors and how India could not trace the ultimate beneficiary of those transactions because of the secrecy associated with these bank accounts? IS THERE ANY ONE WHO WOULD SAVE INDIA ?God… only should ….

http://kriyer.sulekha.com/blog/post/2008/09/is-india-poor-who-says-ask-swiss-banks.htm

Currently there are some mutual funds which invests in Treasury Bills, Commercial Paper and Bank Call Money. All these investments are safe. Government and bank do not default. Company with high financial rating can only sell commercial paper. So this investments are safe.

Interest rate varies between 8-9%. This is well above savings bank interest rate. Suppose you are keeping Rs. 1 Lakh in savings bank. You can earn Rs. 6,000 from this funds compare to savings bank.

This funds need to bought by yourself online. This absolute necessary for liquidness. If you go for any agent or other you will may not get money when you require. You need to have a account in any online site for buying this.

Mutual fund customer account is free in all sites. I buy through indiainfoline.com. You can try any online site.

Procedure of buying: I login to the site. Choose the fund you want to buy. Then this site will redirect it to your banking site. Money will be deducted from your account automatically.

Procedure of Selling: Choose the fund you want to sell. Money will be automatically credited to your account. First time you need to send PAN card photocopy and form (available in the site itself) to the site address.

How to choose fund: I choose fund from valueresearchonline.com. Go to the fund section. In the drop down of the “Category Compare” choose “Open End” in the first drop down and “Debt Ultra Short Term” in the second drop down. Chose best rated fund. I invest in HDFC Cash Mgmt Firm Savings.

One more interesting feature of the funds is that you can get your statement from camsonline.com anytime. Here statement will tell you how much you have invested and also the current value of your savings. All you need to give is open camsonline.com. Go to Investors section. Then click on “Mail Back Service–Check it out”. Click on “Portfolio Account and Statement” and give your mail id to send the statement. You also have choose fund house name from the list. In my case it is HDFC.

This fund is also useful to be used as a parking site for your short term financial commitment like insurance premium etc. You can park your money for 3-4 months before giving the premium.

Happy Investing!!

http://raktimb.sulekha.com/blog/post/2008/09/lazy-money-in-savings-account.htm

Monopoly Money

Money

by Harry Kottler

When you’re in another country

The money there seems just for play.

Like money used in the game, Monopoly,

You’re not sad when it goes away.

You’re not sad when you have to spend it.

You’re not sad when you go to jail.

You’re not sad that you have to tend it.

When you lose it, you do not wail.

Actually, all money is just play money.

Actually, all money is just on loan.

Actually, it is very funny

That we sometimes feel money’s all we own.

We sometimes cry over lack of money.

We sometimes cry even when it’s in hand.

We sometimes cry that we might just lose it.

We stay up nights thinking money plans.

Jesus said, “Consider the lilies of the field.

They neither toil nor spin.

If God provides for the little lilies,

Why can’t you put your faith in Him?”*

I’ve been learning to have faith in my Lord.

When I had fear about money, I would pray and pray.

I cut my fear with the Lord’s great sword

And found that fear just went away.

When I was needing to get a new job,

I’d say The Lord Is My Shepherd for an hour or two.

Just before the time I needed that new job

The Lord, in His majesty, did come through.

No one’s alone in this world of objects.

No one’s alone in this world of stuff.

God’s inside us, and, in His pocket

He has plenty; He has enough

To suit our needs and to still our worries,

To tend our hearts and to make us great,

To hear our pleas when we feel quite troubled,

To give us food on tin or golden plates.

All we need do is remember money

Is fake like money in Monopoly,

And pray and pray when we fret over money,

And pray to the Lord that He set us free

From believing in only the gross and transient,

From believing in only what eyes can see.

Miracles come to the heart that’s willing

To challenge fears and find true belief.

* The exact quote from the King James Bible is “Consider the lilies of the field, how they grow; they toil not, neither do they spin: And I say unto you, That even Solomon in all his glory was not arrayed like one of these. Wherefore, if God so clothe the grass of the field, which today is, and to morrow is cast in the oven, shall He not much more clothe thee, ye of little faith? Therefore take no more thought saying, What shall we eat? Or, What shall we drink? Or wherewithal all shall we be clothed…”

http://harryandhelen.sulekha.com/blog/post/2008/08/money.htm

If you deposit 5000 bucks every year, for 20 years @ 10% p.a. How much you will get in returns after 20 years can you guess…….?
That means you deposit 5000 bucks every year @10% p.a. for the period of 20 years.
At the end of 20th year you will have 315,012 Bucks!!! It’s 3 times your investment!!

So now I will share with you the success formula of multiplying your money via stock market.

Few things before I start, you need to take of the few things below listed,
1. Patience
2. Implementing the formula as per the rule.
3. Don’t go out of the Box.
4. Don’t be greedy as time goes on.

So here we go now.
Select a stock which should be an integral part of index.
The reason to select the stock from index is because the index stock is very liquid and fundamentally strong stocks.
The stocks must have an intraday moment of at least 2%-5% up or down.
These were the eligibility criteria for selecting the right stock.

Now suppose your selected stock is X and the current value of the stock X is 100 bucks.
And you only have 50,000 bucks with you in your account.

We need to segregate our investment in such a way that we should be able to buy the stocks even if it falls 50% from the current value (100) (i.e. we can buy the stocks at 50 bucks also).

Your capital is 50,000 and the stock value is 100, now 50,000/100 = 500.
You can buy 500 stocks in all.

You have to buy the stock in lot size of 50.
Every 5% fall, you have to buy 50 shares of stock X, and hence you can buy the stock till the maximum fall of 50%.

As the stocks falls you keep buying the lot size. And as the stocks rises 5% you release the stocks. That will keep booking profit at every 5% level rise and fall of the stock.
E.g. Day 1
Stock Value 95, Buy 50 shares.
Day 2
Stock value 90, Buy 50 shares
Day3
Stock value 95, Sell the last buy, i.e. 50 shares bought at 90 and hence you have booked 5% profit.

Keep following this buying and selling and you see enormous growth in your account.

http://sameer17.sulekha.com/blog/post/2008/08/how-to-multiply-your-money.htm

The S&P CNX Nifty index of the National Stock Exchange, which opened at 4,331.60 points, closed at 4,413.55 points. It went up by 80.60 points or 1.86 per cent from its previous close.

http://www.hindustantimes.com/StoryPage/StoryPage.aspx?sectionName=&id=73bcc4ee-caac-4590-87b0-da2482a6405a&MatchID1=4736&TeamID1=8&TeamID2=6&MatchType1=1&SeriesID1=1194&MatchID2=4727&TeamID3=2&TeamID4=3&MatchType2=1&SeriesID2=1191&PrimaryID=4736&Headline=Sensex+closes+300+points+up&strParent=strParentID

Few days back I went to Hyderabad, my home-town. As I had luggage with me, I took an autorickshaw from Secunderabad Railway Station to my home in Dilsukhnagar. I paid Rs 100/- to the autowala. Earlier, I used to pay Rs 60/- for the same distance.

We spent more and ate less.

The next day my wife took me to the market to buy some essentials. Cost of fine Sona Masoori rice went up from Rs 18 per kg to Rs 25 per kg. My wife wanted to buy 15 kgs of rice, but she ended up buying only 10 kgs.
From there we went to a vegetable market, where vegetable prices shot through the roof. Instead of buying five varieties of vegetables (leafy or non-leafy), we ended up purchasing only alu (potato) and pyaz (onion).

We paid more for less power consumption.

During my stay at home, we also received the power bill. It gave me a jolt. My power consumptions expenses went up from Rs 200 a month to Rs 500 a month. I was confused. We spend just 12 hours of our daily life at home. Which means we don’t use power for 12 hours in a day. Next, the AP Power Transmission Company resorts to unscheduled power cuts ranging from 3 hours to 5 hours per day. Meaning, we actually consume power for only 8 hours a day. We don’t have any heavy duty power consuming products at home. We just have one idiotbox – which we switch on for just one hour a day – three ceiling fans and three tubelights. Still, the power bill shock was quite strong.

Paying more for same education.

Last year we paid Rs 9,000/- for my younger daughter’s education. This year I am shelling out Rs 15,000. Last year I paid Rs 15,000 for my elder daughter’s education. This year, I am paying Rs 2.5 lakhs towards tuition fees alone.

Pay more and get less health care.

I am an asthma paitent. Earlier, I used to spend Rs 45 to buy one Asthalin inhaler. Today, the same inhaler costs Rs 86.

Working more for same salary.

Last year for 12-hour per day work my income was Rs 30,000 per month. This year, my per day work hours have gone up to 15, but my salary is stuck at Rs 30,000 pm.

End result

1. Working more for less income.
2. Spending more and gaining less.

Conclusion

Expenditure up, income down.
Tensions up, health down.

http://askvenkat.sulekha.com/blog/post/2008/07/aam-admi-and-inflation.htm

Whether you are getting married, buying your first home or starting a new job, you will be worried about how this will affect your financial picture. As you approach each of these major life events, it is important to consider the financial side of each situation. You can continue to make great financial decisions, but you may need to adjust your current spending habits in order to reach your new goals.

1. Getting Married

One of the most exciting times in when you are about to get married. It is thrilling to begin planning and preparing for the wedding. After the wedding you will begin your financial life together. Money is one of the most difficult topics to deal with in a marriage. It is important to address this issue from the very beginning of your marriage. This will help you and your spouse work towards the same goals. Open communication about your finances will help your marriage be successful.

2. Buying Your First Home

Another big and exciting time is when you purchase your first home. This is a big decision and commitment. You need to be sure that you are ready to purchase a new home. Additionally you need to understand the terms of your mortgage. You should have enough money set aside to cover emergencies home repairs. It is also important to consider the additional cost of insurance and property taxes. If you plan carefully you should be able to transition into home ownership easily.

3. Finding a New Job

After a few years in the workforce, you may be ready to move onto a new career. You can look for promotions inside your company, or you may look elsewhere to find better benefits and a more lucrative salary. This is an important step. You want your income to continue to grow, and making the move at the right time is part of that. You should make sure that you are prepared to make the changes a new job would require. You can also take additional classes or certification training to make yourself more marketable.

4. Buying a New Car

You may also reach a point where you want to buy a new car. A car is necessary in most cities. It is important to prepare yourself for this purchase. If possible you should pay cash for your car, but if you can’t you need to shop for the best loan options available. Additionally you should be careful on how much you spend on your car, because a payment can limit what you can do in the future.

5. Getting Out of Debt

Once you begin to settle down in the working world, you should get serious about getting out of debt and using your money wisely. Once you are debt free you can begin to accumulate real wealth. This will help you to achieve your dreams and move forward. If you continue to make payments you are limiting what you can do with your money.

6. Investing Your Money

Additionally you should begin to seriously invest your money. You will be responsible for your own retirement costs. Investing is essential if you want to live comfortably and not worry about your later years. It can also help you pay for your children to attend college. Investing your money can be intimidating if you do not understand what you are doing. However, if you find a good financial planner, he should be able to explain everything to you in detail.

http://moneyfor20s.about.com/od/moneyinyour20sbasics/tp/Major-Financial-Milestones.htm