Monday, January 31, 2011

World Economic Forum at Davos -2011

Please find a wonderful recap of the World Economic Forum, meet at Davos - 2011
2005 leaders,all at the same place and same time ideating about the world's future!

Thats what really makes World Economic forum click.

2010 WEF had a question -Would the global economy recover?
The 2011 WEF had the question"Is recovery real and stable?

Gerard Lyons: Cheif econmist - Standard Chartered - we are starting to see a supercycle!
Ist super cycle -  Emergence of America
IInd super cycle - Emergence of Japan

India China Indonesia and a host of nations needed to be talked about.

Governments vs Banks.
What saw the tussle between Sarkozy & Dimon from J.P.Morgan over the whole issue of regulation.

Shared norms for the new reality:
2 speed global economy, and to fend this there is a "Call for a Global Trade Pact" - especially by Pascal Lamy - the director of WTO.

Corporate India tried to push the Governance deficit , and a lot of discussion about inflation, Espeically food inflation. Food inflation a growing global concern.
A good point raised by Harish Manwani, President of Unilever ASIA was to address not just the short term issue of food inflation, but to solve the demand supply problem fundamentally. To holistically address the concerns of small farmer, water,climate change and Infrastructure.

Final word goes to George Soros(London school of Economics Alumni) Global warming translates to persistant high food prices. Droughts, Fires & Storms are a great danger to the world and not enough is being done to stop it, and is one of the most disturbing issues.

One thing that also clearly comes out of the meet is that India is making its presence felt, even if its with the contemporary Indain art on the latest meeting hall at Davos.

Peter Sands of Standard Chartered Bank
Single largest profit market for SCB in the world.
If you are not in India, you have missed the bus!

Google's Nikesh Arora - consumer pheonmenon has not taken off as well as it could have, perhaps due to the infrastructure. But is happy with the ramp up done by the telecom companies in putting up the infrastructure in place.

Time to loosen the purses - Melinda Gates Co-Chair Bill & Melinda Gates foundation.

Swiss banks to provide information of Black-money?

Nouriel Roubini Professor of Economics at NYU Stern and Robert Shiller, Professor of Economics at Yale University still seemed mildly concerned..both predicted the 2008 Crash. Especially Shiller, concerned about the US stock markets, the quick rebound would have an impact in the longer run and that crash would have a bigger impact on India. He infact could predict that the P/E ratio is quite high according to his calculations over a longer run,something which is not good for the markets.

A senario where FII inflows are more than FDIs Paul Fletcher, Senior Partner,Actis however bring some cheer by saying that Private Equity is willing to invest both in equity and infrastructure.

Stephen Schwarzman , Chairman & CEO Blackstone group, gives his perspective of the current happenings in India. How usually, growth brings with it inflation and with it the markets are toned down with a check on interest rates, and the markets somehow do not like that and they go down. Ending his note on a quote from  Shakespeare "one man's tragedy is another man's comedy"

30,000 foot high perspective of things!! Perspectives don't get better than that!!

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