min-myinnersoul

The principle of jurisdiction is a basic tenet in law. Jurisdiction refers to the  law, the court, the authority that is applicable to you . You are then required to follow that law and be subject to  oversight by that authority and that court. In the good old days, jurisdiction was simple - where you were decided who had jurisdiction over you.  I live in India and so the laws of India apply to me. The government of India is the authority that has jurisdiction over me and the courts in India  are the forum I can go to. Simple. As the world started to globalise, the issue of jurisdiction started to become more complicated. If I did a commercial transaction with say an Australian company - who would have jurisdiction ?  Australia ? India ? That is why in contracts involving multiple countries it is always stated which law would apply and which courts would have jurisdiction. But physical presence or assets always enables that country to have jurisdiction . Althoug...

Mergers & Acquisitions are often the glamorous side of business. CEOs love  them - you go through the excitement of doing a deal, get on to the papers and TV, become famous etc etc. Most of the haggling on the deal is on the price - how much the buyer is willing to pay the seller. But how about a M&A transaction where the seller has to pay the buyer in order for the buyer to buy the business !! Fanciful ? Well, that's exactly what has happened with the sale of Fresh & Easy by Tesco to Ron Burkle . Tesco is an UK based grocery retail giant; it is the third largest retailer in the world. From the UK, where it is a household name, it has expanded in Europe and Asia. But in the US, the largest retail market in the world, Tesco was non existent. In 2006, it decided to foray in to the US with the branding  of Fresh & Easy - in small store grocery format, primarily in the Western states. It never took off and Tesco faced mounting losses despite opening some 200 stores...

The story that two garbage cleaners in New York were fined and forced to retire after being caught accepting a tip of $ 5 caught my eye.  Not for the reason you might think. This story would provoke hoots of laughter in my country where nothing happens in the public service without a gratuity.  Even in NY, this must be an incredulous story - every man and a dog demands tips shamelessly for just existing in the same space as you. But the real reason this story has prompted this post was buried somewhere in the middle.   The two garbage men apparently netted $100,000 each, including overtime. Granted that they had put in long years of service. Granted that they probably earned lots of overtime. But still a wage of $ 100,000 for a garbage collector shows everything that is wrong about the United States. No wonder they lose jobs by the droves to India and China. No wonder unemployment is a stubborn problem.   But this post is not to highlight the completely unreali...

If you have been following the news in the US, you might have noticed an almighty hullabaloo over the the IRS (their tax man) having targeted Tea Party and Conservative groups. Much hot air and righteous indignation is being spouted and Obama has fired the IRS chief yesterday. Almost everybody on earth loves to bash the taxman (rightfully so !) and this is all good fun. Except that I believe that in this case the bashing is wrong. Or at least much exaggerated. What happened is this. The IRS admits that it subjected groups which bore the name tea party, or patriot to extra scrutiny. The fact that such groups are exclusively Republican and that the President is a Democrat seems to indicate political targeting. That is, of course, against the law. Hence all this noise. But why did the IRS do this - after all, they are not fools. If you try and answer this question, a different picture emerges. The problem all started with, in my view,  the appalling judgement by the US Supreme Court i...

So says Huawei. Really ?? No, not really. They are very interested in the US. Its just that they have realised that the doors to the US are simply shut for them. There has been a spat going on between the US politicians and Huawei for some time. It looks like the politicians have won.  And it begs the bigger question - can any company in the world be exclusively in one country or region (however big that might be) and hope to be a major player in the world. Huawei is a telecoms company. They sell networking equipment significantly cheaper than say Cisco. They used to be crappy ( Cisco would snigger at the mention of their name). Not any longer. Same quality, half the price. In an uncomplicated world, companies  should be falling over themselves to buy from them.  But then, the world is not an uncomplicated place. Huawei is a Chinese company. So what, you might ask ? Huawei's founder and leader was formerly in the Chinese army. Still so what ? Well, the ties with the Chine...

OK - the title is pure hyperbole. The New York Stock Exchange (NYSE) is going nowhere. But the company that owns NYSE is just being bought over. The curious part of the story is that the acquirer does not really want the NYSE, but it comes as part of the package- so he has to take it ! Here's the deal. NYSE is part of a conglomerate called NYSE Euronext. The conglomerate consists of NYSE itself, Euronext, which is a combination of three European stock exchanges and Liffe which is a London based derivatives exchange. NYSE and Euronext are ugly spinsters nobody wants. The beauty amongst the beasts is Liffe. For it is the sexy new hottie - a derivatives exchange. And therein lies the story. In the modern day casino , that is finance , equity exchanges like NYSE are worthless as businesses. Margins are supposedly low. Stock exchanges are the places where almost all companies that require capital list and that's where investors channel their savings into productive investment. One w...

I am getting tempted to write political posts, despite all my resolutions to stay away from that area. The culprit is my good friend Sriram who continuously tempts me in that direction with incisive writing in his excellent blog. We then debate and counter debate on email !! So made a guest post there - taking the crazy liberty of  writing a letter to the President of the United States !

If ever there was a nonsensical piece of legislation addressing a farcically trivial issue it is the introduction of the "Team USA Made in America Act". If ever there was proof that US senators and congressmen do nothing useful, here it is. A hullabaloo started when it was discovered that the US Olympic Team's uniforms for the London Olympics were actually made in China. Senators clambered over each other in expressing righteous indignation at this outrage. They are now passing a law that seeks to mandate that future olympic team uniforms have to be made in the US of A. This triggered some admittedly nostalgic memories of my first ever post when I took up blogging three plus years ago. My very first post addressed precisely this issue; so much so that I couldn't resist dredging it up.  Has much changed in three years ?

Its the world's ninth largest economy. Its six times the size of Greece. Its actually bigger than India. And its hopelessly bust . Yet; we aren't hearing much about it. Only because ,  its not a country. Its a state. The State of California. The world's biggest basket case ! This has been a favourite topic of mine having blogged before here and here . California has a state budget of some $90 bn. And it just projected a deficit of $15 bn. What sort of an economy runs a deficit of 18% of the budget ?? This has been going on for years . And what does that state do - simply borrow . And borrow. And borrow.  And with no hope of ever bridging that gap. If California had its own currency, I would be merrily shorting it. It would be a prime candidate for begging at IMF's door.  For once you can't blame the political leaders for the mess, although they are the ones being vilified and quartered. The blame must squarely rest on the citizens of California. For they are the on...

You have a billion dollars burning a hole in your pocket ( Gils , Zeno , and a few others have that problem !). Take your pick. What would you buy ? 800 patents, dating back to the early days of the Internet. Or a red hot new internet rage that everybody is talking about but which has no revenues. Or boring old Yellow Pages. What would you take ? These are three transactions that actually happened in the last couple of weeks for about $1 bn.  Microsoft bought the 800 patents from AOL for $1.1 bn. The patent world has become completely crazy for tech companies in the last few years. Everybody is suing everybody else for patent infringement. Some 800 plus patents are given simply for what goes into a mobile phone. Its impossible these days to launch anything without infringing on somebody's patent.The US patent office has gone crazy as I wrote about here - Patents have now become innovation stifling rather than innovation building. Anyway Microsoft believes its better to pay $1.1 bn...

Schweddy Balls ice cream is brewing up a storm. It has caught the ire of One Million Moms, who are protesting about it. Wow ! Ben & Jerry's seems to be the flavour of the month on this blog. They are the lot who are churning our a limited edition Schweddy Balls ice cream, which they claim has risen to the top of the charts - presumably charts exist for ice cream flavours too.  Apparently it is "fudge covered rum balls" , whatever that means. Schweddy Balls is a take on a Saturday Night Live skit (a television show in the US). An innuendo laced old skit aired on that programme has the "memorable" tag line - no one can resist my Schweddy Balls. On Million Moms is some obscure conservative organisation based in Mississippi of all places. They are up in arms. They say the language is unsuitable for children. They have forced some supermarket chains not to carry Schweddy Balls and are petitioning the company to stop the production. Little wonder Ben & Jerry...

Even if you didn't suffer from aerophobia, there are some non trivial hazards of flying. Missing baggage for example. Or delayed or cancelled flights leaving you stranded in some god forsaken land. Some even allege deep vein thrombosis. Insomnia due to your neighbour's high affliction of stertor could be another. But even the most wildly imaginative sort could not have thought of adding "going to the loo" in that list. But it is now conclusively established that this is a real hazard. Consider the evidence. Last Sunday Frontier Airlines flight 623 from Denver to Detroit was escorted by F16 fighter jets. Why ?? Apparently two men and a women were seated in a three seater. One guy got up to go to the loo. The other guy stood up.  And the guy spent a "long time" there. That was it. F16s escorted the plane and on landing the three were handcuffed and led off to be questioned. The poor lady did nothing. She was simply sitting and yet was considered suspicious b...

Of all the great mysteries of the universe, none is more confounding than that of consumer behaviour. You would have thought that it shouldn't be an unfathomable mystery - after all you and I are consumers too.  But no. It is inarguably established that you can even hope to nail down the Higgs boson , but cannot begin to understand this mysterious creature called the consumer. Take the example of the Missoni collection and the outage at Target yesterday. Missoni is an outrageously priced design house - designing everything from clothes to patio sets each costing hundreds or thousands of dollars. I cannot imagine why anybody should pay thousands of dollars for something that is essentially similar and available for $49.99, but we shall pass over that lightly. Target is a discount store in the US. At first glance, its not sure what the two have in common - you would have expected that one would wrinkle its nose at the other and the other should be showing its finger at the worthy. ...

The end of the world is near. On Aug 2 to be precise. Repent and thou shall be saved. Every year, some nutter prophecies the end of the world on some artificial date and his followers prepare for Armageddon. Come the day and nothing happens. We live on till the next prophecy. Is this what is going to happen on August 2nd, the latest doomsday deadline ? Somewhere on August 1st or so, America will reach its legally approved debt ceiling of $ 14.3 trillion. Ninety times in the past, this ceiling has been raised by the US Congress and the Senate and life goes on. This time however, there is a real possibility that it may not be raised. Hence the doomsday. Do I see you yawning ? Surely some technicality of American debt ceiling cannot affect you and me. Who cares ? Unfortunately you should. You should care very much, wherever in the world you are. It won't be the end of the world, but you will have a vision of what the end of the world might look like. For this is what will happen if th...

Vanity thy name is Chinese Internet Company, went the title of an earlier post of mine here . I should correct this now to Vanity thy name is Chinese Internet Company. How else can you explain the rush of Chinese non Internet companies who want to list in the US ? There are 900 companies with businesses mainly, or only, in China listed in the US. Compared to that there are only some 2000 odd companies listed on the Chinese mainland. Does this make any sense ? Why are Chinese companies falling over each other to list in the US ? Usual reasons - Greed and Vanity. Greed first. Anything beginning with the letter C is now hot in the US. Never mind that the investor does not know, or care, whether China is to the East or West of Topeka KS. Anything even remotely related to China must be leading to a pot of gold. Hence the stampede towards China stocks. A scene reminiscent of the wildebeest crossing the Mara river. The expert analysts, investors, fund managers all seem to possess exactly the...

On June 16th, IBM turned 100. Yes, 100 years old. That is a colossal achievement by any standards. As with living beings, so with corporations - the primary motive, and a great achievement,  is survival. Time to bring out the cake and sing Happy Birthday. The company started life in 1911 as Computing Tabulating Recording Corporation, formed by a merger of three small companies. A decade or so later it changed its name to a more catchy International Business Machines, the name by which it is still known. And over the decades it has weathered many a storm, made many a significant achievement and today, even at a ripe old age, is strong, robust and dancing. That is has done so in the field of information technology, where the pace of change is far more rapid than in other sectors, adds a special gloss to the achievement. Look at the inventions it has to its credit. The punch clock to record time, the electric tabulating machine, the ATM, the floppy disk, the hard disk, the magnetic st...

Why does a Chinese internet company wish to get listed in the US ? I can't fathom the logic. Hence this post. The Chinese internet landscape is a strange one. Almost every one of the global majors is blocked. Facebook, YouTube, Twitter, Blogger, you name it and it is blocked. Instead there is a carbon copy of each one of them locally in Chinese. For Google, read Baidu . For Facebook, read Renren , for YouTube read Youku or Tudou , for Twitter read Sina Weibo or the dozens of similar clones. These are the ones that are wildly popular, having millions of users, only in Chinese and therefore almost exclusively used by Chinese. Never mind that these  are all censored , watched, bullied, etc etc by the jīndùn gōngchéng (The Great Firewall). This post is not about that cursed censorship. These sites are all by entrepreneur led start up companies , similar to the American originals.  And they all want to list and make huge money. Fair enough. But they seem to want to list in the U...

Businesses have to anticipate and plan for all sorts of eventualities. A business continuity plan for an ebola outbreak or a response to gang warfare in the Niger delta may raise an eyebrow as to the extremes businesses go. But surely, planning a national response to an itsy bitsy spider takes the cake. And yet this is precisely what Mazda is discovering it ought to have done in the US of A. The problem is this. Apparently a common spider called yellow sac spider has taken a distinct liking for Mazda cars. Or more precisely, the rubber hoses that are connected to the fuel tank. The spiders being rather fond of a long siesta during day time, find the inside of a tube the perfect place for somnolence in the hours of light. For some reason, the Mazda car tubes seem a superior choice to a Chevy tube, for instance.This apparently can lead to pressurisation or ventilation problems and in extreme cases could also crack the gas tank. So, Mazda has a problem on its hands. Reportedly 20 such in...

When Hu Jintao, the leader of China, visited Washington recently, there was a flurry of deals signed. Predictably, most were economic. One tiny deal, lost from the public glare may be far more important than most of the bigger ones signed amidst much fanfare. This was the acquisition by ICBC, the world's most valuable bank from China, of the tiny retail network of the Bank of East Asia in New York and California. All bank takeovers in the US need regulatory approval. Given the circumstances under which this deal was signed, its expected that it would be approved. And therein lies the breakthrough. The regulatory approval is given only if the US believes that the regulatory mechanism in the home country of the bank is "sound". This is classical American overreach of dictating to the world. Now if this deal is to be approved, that is a tacit endorsement of China's banking system, which is entirely state controlled and , to even the most neutral of observers, dodgy. Ame...

Californians are the best example of the concept that it is a thin line separating genius from madness.  The genius of Californians is well known. If there is one single place that is deemed to be the most creative in the world, it has to be somewhere in California. Many of the world's greatest inventions originate from there. Maybe its in the water; maybe its in the air, but something makes creativity flourish in California. It is then a mystery as to why such creative people are adept at scoring own goals. California adopts a particularly virulent form of voter activism. All sorts of ideas are presented to voters in referendums and if passed, have to be observed. A series of such voter passed Propositions have made California virtually ungovernable, at least financially. Witness the annul ritual of theatre in passing of their budget. In keeping with that tradition, California voters  passed two years ago Proposition 2, designed to create humane standards for farm animals. La...