Leading wealth management firm Merrill Lynch is betting on fast growing economies in the Asia Pacific, India in particular, to bolster its flagging fortunes back home. "The Asia Pacific region, particularly India, is one of the most attractive places for us to grow our business," said John Thain, chairman and chief executive officer Merrill Lynch, at a press briefing here. "There is a lot of wealth being created in India and we would like to manage that for those creating it," Mr Thain said. The former NYSE Euronext CEO got into the hot seat at Merrill Lynch in November last year, replacing Stanley O'Neal, who had been forced to resign after subprime assets-related write down led to Merrill's highest ever quarterly loss. Mr Thain sees arranging capital for companies looking to go public, infrastructure financing and cross-border mergers and acquisitions as the key areas of opportunity for Merrill in India. Merrill Lynch has doubled its head count in India over the last couple of years, while revenues have grown four times in the last two and a half years. The New York headquartered firm manages roughly $1.8 trillion worth of its clients funds, but has been facing testing times because of the ongoing crisis in the credit markets. Along with other leading global banks, Merrill too has suffered bruising writedowns on some of its dealings in subprime assets. While the firm is looking to cut about 4,000 jobs - much of it in the US - Mr Thain pointed out that the company would not be restricting growth or investment opportunities in fast growing markets. "Our headcount in India will continue to rise," he said.

Mr Thain said Merrill Lynch has been active both in the traditional form of private equity investments as well as private equity investments in areas like commercial real estate in India and other rapidly expanding economies of the world. "The reason you don't hear about them is because they are done on our own balance sheet. One of the things we are now looking at is a third party fund format. We recently completed the first closing of a Asia Pacific real estate fund, which mobilised close to $2.5 billion," he said. He expects the US economy to struggle for the next 6-12 months because of a combination of falling home prices, rising energy costs and job cuts. Mr Thain does not believe in the theory of decoupling, but is of the view that India will be less affected by a slowdown in the US. "Because of strong domestic demand that continues to grow, its companies expanding globally, and continuing investment in infrastructure, India will be more immune to a slowdown in the US," he said. There is persistent speculation that Merrill may have go in for another round of capital raising soon. But Mr Thains avers that is not the case. During the first quarter of this year, Merrill's level 3 assets - those hard to price in the markets - rose 69%, stoking concerns that more writedowns could be in the offing. The company has written down roughly $30 billion under Mr Thain's captaincy so far. "I think we are in the process of fixing the problems and have made good progress; we have fixed most of them," Mr Thain said when asked how long it would take him to stanch the subprime triggered haemorrhage at Merrill. He said the company's equity capital was about $44 billion, just a little short of its record high. The firm's liquidity position at the end of the first quarter was $82 billion, a record high. "So we have fixed our capital and liquidity issues," Mr Thain said. "We have added to the risk management team; they now report directly to me. We have significantly reduced the risk profile of our trading desk. We have added more senior personnel in our organisation and changed the compensation philosophy," he outlined the other measures. "I am now optimistic that we can now pretty much focus on our clients and our business," Mr Thain concluded.

Courtesy: www.economictimes.indiatimes.com, May 08, 2008

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Mumbai, May 7 India is one of the most attractive places for investments, in relation to the rest of the world, said Mr John Thain, Chairman & CEO of Merrill Lynch, at a news briefing here on Wednesday. India will be relatively less affected by the US slowdown, said Mr Thain, who does not believe in the decoupling theory. "The degree is different for different countries, depending on the domestic demand. And in India, there is a very high level of domestic demand, while there are large investments happening in infrastructure," he said.

Massive write-downs
The US economy will continue to drag for at least four to six months, as rising energy prices and unemployment lead to a pull back on the part of the US customers, said Mr Thain. His bank had made massive write-downs relating to the US sub-prime mortgage crisis and had cut 4,000 jobs in the US. The financial institutions in the US have written off $300 billion in losses in the sub prime crisis, but going forward, one is not likely to see losses anywhere near to this. But those banks with exposure to consumer credit are likely to report more write offs, he said. The bank has doubled its headcount in India over the last two years at investment banking and brokerage DSP Merrill Lynch, in which it owns a 90 per cent stake, he said. Here, the bank is focussed on high networth individuals, through its wealth management business, and sees opportunity in advising the growing domestic businesses, which were looking outward, he said. While it has been active in private equity and real estate investments in India, doing it on its own balance sheet, Merrill Lynch was moving to a third party format, and had recently made a first closing of an Asia Pacific real estate fund, in which its contribution was over $700 million. It was also in the process of raising money for a traditional private equity fund in the region, he said.

Courtesy: www.thehindubusinessline.com, May 08, 2008

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With News Corp's MySpace having launched in India, can Google-owned YouTube be far behind? The popular video-sharing Web site today launched its local Indian version at www.youtube.co.in. YouTube India is different in that it features a localized home page plus search functions, allowing users create and share videos, discover the most popular/relevant videos in India, and generally connect with other Indian and global users. Over time, YouTube India is expected to have an entirely 'local' flavor and feature content and functionality that is most desired by Indian users. Speaking at the launch, Steve Chen, chief technology officer and co-founder of YouTube, said, "We are very excited to bring a local version of YouTube to India considering the passion of users here for music and entertainment. For a culture that is steeped both in video and in storytelling, and where everyone has a voice -- YouTube India will not only offer Indian users more relevant content but also provide a platform to share India's unique and diverse culture and lifestyle with the largest online video community in the world." Adding to it, Sakina Arsiwala, international manager of YouTube, said, "YouTube allows anyone with a simple Web camera or even a cell phone to create content, connect, and converse with each other through the medium of video. It provides a powerful way for people to express themselves. From a home video to a magic show to classroom lectures or working professionals connecting with their families in another city, YouTube is about communication and not just entertainment." YouTube India sports local features like promoted videos, featured videos, home page promotions, localized user interface and help center, user support and community features (video ratings, sharing, and content flagging), and intends making easier for the Indian YouTube community to search and view videos from India. In addition, content uploaded by users in India would show up as 'top favourites' and 'recommended content' on the local YouTube Web site. YouTube India also aims at facilitating exchange amongst the large Indian NRI community. Meanwhile, YouTube India has already inked partnerships with the likes of UTV, NDTV, India TV, Zoom TV, Rajshri Films, Eros Entertainment, IIFA, the Ministry of Tourism, IIT Delhi, and KrishCricket to name a few, with the objective of bringing exclusive Indian content to users in newer ways.

Courtesy: www.techtree.com, May 08, 2008

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With the swearing in of Dmitry Medvedev as Russia's president, the Kremlin leadership now mirrors one of its most potent symbols - the double-headed eagle. Standing next to the new president during a ceremony Wednesday in a gilded Kremlin hall was his predecessor, Vladimir Putin, the man who nurtured Medvedev's rise to power and who will now be his prime minister. The world waits to see whether the two can jointly rule this sprawling country, or whether, like the Byzantine crest, they will gaze in opposite directions. Medvedev has promised to strengthen democratic freedoms and suggested he will move Russia in a more pro-Western direction, raising the hopes of those who want to see the country shift away from Putin's authoritarian rule. But Putin spent his last weeks as president planning to strengthen the prime minister's role and assuming the chairmanship of the United Russia party, which dominates politics from the municipal level to the parliament. Both Medvedev and Putin have dismissed concerns the dual leadership will lead to conflict and instability. But Wednesday's ceremony in the glittering Andreyevsky Hall of the Kremlin Grand Palace, which overlooks the Moscow River, only emphasized the apparent contradictions between the 42-year-old president and his future prime minister. While Medvedev spoke of economic and democratic development after taking the oath of office, Putin said in his own brief remarks that the Russian people "have many times defended their own path and their sovereignty."

Despite the martial overtones, the ceremony marked a rare constitutional succession in a country where changes in leadership have often resulted from illness, political unrest or violence. Shortly after noon, Medvedev strode up a red carpet and took the oath of office. The brief statement included a pledge "to protect the rights and liberties of every citizen." Later in a speech, Medvedev declared that "human rights and freedoms ... are deemed of the highest value for our society and they determine the meaning and content of all state activity." The new president, who worked as Putin's assistant in St. Petersburg City Hall in the 1990s, inherits a robust economy that has experienced a decade of rapid growth thanks to high world prices for Russia's oil, natural gas and other commodities. But he must also grapple with double-digit inflation, tight credit markets overseas and the possibility that the price of natural resources will not grow as fast as they did under Putin. Medvedev promised in his speech to modernize industry and agriculture, encourage the development of new technologies and attract investment. He also pledged to keep Russia open to the rest of the world and to participate in "constructive and equal dialogue" with other nations. Putin, 55, endorsed Medvedev as his successor in December, rallying the Kremlin and the United Russia party behind his candidate. Medvedev was elected March 2 with just over 70 percent of the votes. Medvedev's victory was aided by Russia's major TV networks, which are all formally or informally controlled by the state and lavished coverage on Medvedev while paying little attention to his challengers. Many voters said they were pressured by employers and government officials to support the Kremlin favorite, and there were allegations of ballot stuffing and other irregularities. The leader of the main European election monitoring mission said the vote was neither free nor fair. Despite Medvedev's vows to protect democracy, anti-government demonstrations were prohibited, broken up or harassed by police both before and after his election. Police detained dozens of anti-Kremlin protesters Tuesday as they tried to stage a rally. State-owned Channel One television provided elaborate coverage of Wednesday's event, broadcasting sweeping aerial shots of the Kremlin's crenelated walls, its cluster of gilded onion domes and the cloistered courtyards where ranks of blue-uniformed soldiers waited for the arrival of Medvedev. Television viewers watched the progress of the black Mercedes Pullman limousine carrying Medvedev through the deserted streets of the city center - evidence of the high level of security for the inauguration. The president-elect was driven along the banks of the Moscow River, up into Red Square and through the Kremlin's Spassky Gate, with its famous clock tower facing St. Basil's Cathedral. Later, the crowded czarist-era Andreyevsky Hall, with its huge doors and intricate chandeliers, shimmered with gold leaf and bright television lights as Medvedev was sworn in.

Courtesy: www.google.com, May 08, 2008

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Vladimir Putin is set to be sworn in as Russia's new prime minister, a day after his protege Dmitry Medvedev replaced him as president of the country. Russia's lower house of parliament will meet on Thursday to confirm Putin's nomination, with his United Russia party possessing enough seats to carry the vote alone. Medvedev nominated Putin as the prime minister shortly after taking over as the president. Putin, to be formally appointed by Medvedev after the parliament vote, has said he will work closely with the new president. Putin will set up a new cabinet, which is expected to be broadly similar to one that was in place during his eight-year presidency.

Close partnership
Many Russians believe that Putin will still exercise formidable power despite no longer being the country's president. He selected Medvedev as United Russia's candidate for a presidential election in March, which Medvedev won by a wide margin. But although Putin and Medvedev are political allies, some analysts have said that the partnership could be unstable. After he won the presidency in March, Medvedev said only the president would determine foreign policy, but Putin has called the prime minister's office the "highest executive power in the country". In his inaugural speech on Wednesday, Medvedev promised to bring greater "civil and economic freedom" to Russia. He also said he would strive to ensure that the rule of law is upheld. Shortly after he took the presidential office, Medvedev was presented with a briefcase containing controls for Russia's nuclear arsenal. Both Medvedev and Putin will attend a military parade in Moscow's Red Square on Friday, where Russia's new Topol-M intercontinental ballistic missiles will be displayed. The Victory Day parade is the biggest display of Russia's military might since the end of the Soviet era in 1991.

Courtesy: www.english.aljazeera.net, May 08, 2008

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India with its increasing number of millionaires is projected to be in the 8th position among the world's top 10 wealth centres by 2017, says a report by banking giant Barclays. The report further says that emerging markets like India, China and Russia are fast catching up with the rich countries in terms of their wealth. "Over the coming decade, the gap in wealth between the world's most developed countries and the leading emerging markets will continue to narrow with many new millionaires being created in India, China, Russia and other countries which are undergoing rapid development," says Barclays Wealth Report. Moreover, by 2017 the four emerging markets-- India, China, Brazil and Russia-- will have so many millionaires that it would be inappropriate to call them emerging markets, Barclays added. The second fastest growing economy India is expected to join the league of top 10 wealth centres by 2017 by that time its neighbour China is likely to move up to third rank from its present seventh place. While Russia could experience considerable growth, moving to 11th place from 19th, Brazil will also move up the ladder to 12th from 15th. The report says a sudden spurt in the wealth of emerging markets has displaced more developed economies such as Australia, South Korea and Portugal from the list. Australia's ranking fell from 10th to 16th, while South Korea dipped to 12th from 15th and Portugal came down to 34th from 25th. In 2007, G7 countries -- Canada, France, Germany, Italy, Japan, the UK and the US -- contained more than one million millionaire households.

Courtesy: www.indianexpress.com, May 07, 2008

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