Finance Placement Scenario in Engineering college

BITS Pilani. The name is a class and a brand in itself. It is one of the most prestigious engineering institutes in India boasting of education as worthy as IITs and an overall development of students.

 Still it does not register, why would I talk about an engineering college for a finance blog. Believe it or not, these engineering colleges supply the manpower for the growing finance world. Hence today we walk you through the placement scenario of finance sector in BITS Pilani Hyderabad.

BITS Pilani Hyderabad Campus

 Placements are like the stamp of agreeability after all the years of hard work you have put since your kindergarten. While we admire the difficulty of the whole scenario  for the students, lets take a minute to appreciate all the hard work put in by the placement unit of the college to make dreams into reality. 

Today we connected with  Ms. Visishta Karasani, Placement Co-ordinator at BITS Pilani Hyderabad, over the phone. She has been associated with the unit for close to 4 years. She has led the pitching team for Finance and banking and now looks over the working of the unit.  She helps us view the reality behind the entire scene and how difficult is it for an engineering student to get placed in Finance sector.

Ms. Visishta Karasani

'Investigate your interest and chase it. Increase your exposure and you will definitely increase your chances in this world. It is also a must to be aware of what is happening around you.'

Finance for Newbies(FfN) : Hi Visishta. We are glad that you got time from your busy schedule for the interview.

Visishta: I am grateful for this opportunity and I feel it is very important that people are more aware of the placement scene long before they are face to face with it. The placements in the core, IT as well as finance sectors have been remarkable. The inflow of companies for recruitment has improved a lot, given we are just a 4year old campus.

FfN: Could you throw more light on the companies in the finance sector which visited the campus?

Visishta: I can be more specific about the placement semester going on presently. We had corporate giants like McKinsey, Futures First, MuSigma, Latent View , etc. turn up for jobs in analytics, banking or core finance sectors. Fractal Analytics was another great name we added to the list this semester only. Fidelity was one of the companies which had complete focus on banking and finance.

FfN: How does the unit convince finance companies to hire students with engineering background?

Visishta: This is the first challenge that we face. We have a pitching team completely dedicated to approaching companies in this sector.Our college curriculum and flexibilities help us a lot here. Our campus believes in diversified education and an overall development. Hence students enjoy electives in finance while studying core electrical machines. The college offers a Minors in Finance which also goes a long way in convincing the companies of financial background. 

At the same time engineering improves an individual's analytical skills and most of these companies are looking for smart people. It is not about the subjects or the couses but the presence of mind and lateral thinking of the students which helps in the further processes. Our alumni are also making big in finance sectors and it provides credibility to the college.

FfN: You mentioned courses and electives. Could you specify some must do courses  for students aiming at a shot in finance ?

Visishta: As far as the recruiters are concerned the subjects/ courses are not of importance as long as you are aware of the basics. Yet the courses offered in our college like Fundamentals of Finance and Accounting, Derivatives and Risk Management, Banking and Finance Management, and Project Appraisal give you a great exposure. I  guess experience takes you further towards success. An internship before hand is a useful way to spend your time, gain exposure and a perfect resume booster. Our strong alumni network can be of great help here. Patience and a lot of dedication is needed. Keep updated with the country's economy and global economy / current affairs. It adds a lot.

FfN: It was great talking to you Visishta. We wish your campus further luck for placements. Last word for our Readers ?

Visishta: I would say 'Investigate your interest and chase it. Increase your exposure and you definitely increase your chances in this world.' Thanks a lot for your good wishes.

I hope the interview was useful and as informative for you, readers. We love to keep you updated and would love to know if you have any more queries. Stay positive and dedicated. Some company would soon be lucky to have you.

Free Markets

Before we talk about the Free Markets, let us understand what they are.
Free Markets are a type of market economies that operate on little or no government interference and are driven by supply and demand. An Ideal Free Market is where buyers and sellers can transact freely based on the  mutually agreed prices without any taxes, subsidies and regulations.

Every time two people enter a deal, both of them benefit from it. John Stossel coined a phrase, 'Double Thank You Moment' to explain this. Suppose you enter a book store and buy a book, you say thank you. So does the seller. Indeed in any transaction that happens across the world, both benefit or, they wouldn't have entered the transaction. This is how societies grow and prosper. We witnessed a drastic progress during the 18th century when Free Markets started becoming common. And since both the parties are benefiting from the transaction, anyone that comes in the way of a free trade is sinning.

Why are Free Markets better?
Human beings can make money only by increasing the value in the lives of others. So, you can only enrich yourself by enriching others. This is exactly what business is. The more value you create for others, the more value you create for yourself. Thus it is nonsensical to speak of a system where the rich get richer and the poor get poorer. In a free market, that's not possible. The rich can only get richer if the poor also get richer.

Money Trickles up, not down
In a free market, money trickles up, not down. In a business, it is the suppliers and the workers who get paid first, and the consumers who get served and only then, right at the end, do the owners make any money. They are at the end of the chain.

As a whole, Free Markets will provide the greatest benefit to workers, employers and consumers. The product innovation and price are under control and are mutually beneficial.

How Crude Oil price change may lead to World War 3

The Cold War 2.0 is going hot, and while it may someday be fought with planes, tanks, guns and bombs, the first front is being fought with oil and shale gas.The U.S. and European sanctions against Russia have become very severe and crippling in the face of drastically falling oil prices – prices which are falling drastically because of the unprecedented boom of shale gas fracking both domestically in the U.S. and abroad in Ukraine and other locales. The oil & gas giants like Chevron and Exxon Mobil have created revolutionary conditions with now direct consequences on U.S. foreign policy and global war for dominance. 

Oil's decline is proving to be the worst since the collapse of the financial system in 2008 and threatening to have the same global impact of falling prices three decades ago that led to the Mexican debt crisis and the end of the Soviet Union. Russia, the world's largetst producer, can no longer rely on the same oil revenues to rescue an economy suffering from European and US sanctions.

The destabilization in Ukraine and numerous spots in the Middle East – including the ISIS-threatened Iraq and Syria – have been mere preludes to what is coming.The OPEC countries, led by Saudi Arabia, are allowing oil prices to fall drastically, in clear coordination with its Anglo masters, and in response to the sudden rise of shale gas production obtained through fracking. These Arab states will not lose power with the falling oil prices, while many other regimes will face pressure in all sectors.

Targeted at the center of this web of intrigue is, of course, Russia. Natural gas is at the center of the Ukrainian conflict – with Russia’s Gazprom supplying some 25% of Europe’s natural gas. U.S. operatives are working overtime to undermine that by cutting off Russian gas and supplying Europe, instead, with booming shale gas from fracking in and around Ukraine and its rich mineral holdings. Between rising U.S. domestic production, falling OPEC oil prices and U.S.-led production and exploration in Ukraine, gas could prove a trump card against Russia, though Putin has downplayed these consequences. An important secondary consequence of falling oil prices will come in the form of disruptions to social services in countries that have been supporting citizens with money from high oil prices – including Russia, Iran, Venezuela, Nigeria and others.

The “sudden rise” of shale natural gas has been a planned, coordinated and highly strategic move. Plummeting oil prices are indeed an economic weapon against Russia, as many analysts have shown, and act to call the bluff of the other players at the table as well. It poses serious challenges to tensions with Russia, and will have immediate consequences for many other economies based on oil. 

Bloomberg explains the positions.To be sure, not all oil producers are suffering. The International Monetary Fund in October assessed the oil price different governments needed to balance their budgets. At one end were Kuwait, Qatar and the United Arab Emirates, which can break even with oil at about $70 a barrel. At the other extreme: Iran needs $136, and Venezuela and Nigeria $120. Russia can manage at $101 a barrel, the IMF said.“Saudi Arabia, U.A.E. and Qatar can live with relatively lower oil prices for a while, but this isn’t the case for Iran, Iraq, Nigeria, Venezuela, Algeria and Angola,” said Marie-Claire Aoun, director of the energy center at the French Institute for International Relations in Paris. “Strong demographic pressure is feeding their energy and budgetary requirements. The price of crude is paramount for their economies because they have failed to diversify.”

The BRICS have been succesful in undermining the use of the Petrodollar in places like Iran and Venezuela. The Petrodollar is on the ropes. However, with these low oil prices, the worm has turned and the major reason that Russia and her allies are under an economic attack is due to the Ukrainian situation. Ukraine was pivotal in Putin's desire to rebuild the Soviet Union empire because 60% of Russian gas flowing in to Europe, first flows through Ukraine. Conversely , the Western banking establishment wants Ukraine to join the European Union and, as such, control the price and flow of gas. Both sides are willing to sponsor a civil war in Ukraine and risk World War 3. Putin has effectively stalemated the West and the West has retaliated with low oil prices If events continue in the present direction, we could witness an economic collapse that will come like a thief in the night unparalleled civil unrest and movement down the road towards World War 3. In short, low oil prices could indeed lead to World War 3.

References : http://oilprice.com/Finance/investing-and-trading-reports/Low-Oil-Prices-Could-Start-World-War-III-Interview-With-Bob-Moriarty.html, http://www.thecommonsenseshow.com/2015/01/07/plunging-oil-prices-lead-world-war-iii/ , http://www.thelastgreatstand.com/lgs/2015/01/13/how-plunging-oil-prices-could-lead-to-world-war-iii/ , http://www.shtfplan.com/headline-news/falling-oil-prices-could-cripple-vulnerable-russia-cant-rely-on-oil-revenues-to-rescue-economy-hit-by-sanctions_12012014

"Just Plane Smart" to "Just Plane Terrific"

 Corporate legal dispute solved by .... arm wrestling !

March 23, 1992

Dear Herb,

Just Plane Terrific! Your clever arm wrestling match with Kurt Herwald was a win/win, not mention great comic relief to serious watchers of nightly news. Congratulations on your “loss,” and best wishes.

Sincerely,

George Bush.

It is not a daily coincidence that the President congratulates you on your "loss" or congratulates you. Period. Well neither is an arm wrestling match to solve legal issue between two giant airlines.

MALICE IN DALLAS was an event of its kind. The constant crowd cheering, in a small run-down forgotten wrestling arena in the hearts of Dallas, was witness to a match that marked the history of corporate world. Nothing so scary, it was just a friendly contest between Stevens Aviation, represented by chairman Kurt Herwald and Southwest Airlines, headed by Herb Kelleher. The former aviation sales and maintenance company had been using the slogan "Plane Smart" one year before Southwest unknowingly started their ad-campaign with "Just Plane Smart". The issue which could have been a legal spat, going through trials for years while feeding corporate lawyers, became the root for an idea Stevens Aviation proposed - AN ARM WRESTLING match.Herb very sportively accepted the challenge.

The legendary charity arm wrestling match between "Smokin'" Herb Kelleher and Stevens Aviation's "Kurtsey" or "Killer" was a one on one , three round match. First round was tactfully won by Kelleher who sent a replacement , none other than J.R. Jones, the 1986 Texas arm wrestling champion, citing medical issue.The second round was Kurt's conquest as Kelleher was bested by Annette Coats, a tiny customer service rep at Stevens'.At a score of 1-1 the match became all the more interesting when finally for round 3 the two executive chiefs were face to face finally.Loud gasp, sheer attention, cheering sounds, knuckles cracking and ten seconds later Killer had outdone Smokin. The Sportatorium roared with his victory but he wanted to be out of the box again when he offered that both the companies keep using the slogan given Southwest Airlines' acceptance of his earlier crazy proposal.

With the end, both heads of the companies agreed that determining the dispute this way was a fantastic idea for publicity, their bottom line, and a way to show the personalities of their companies. Said Herwald,

"There’s too much litigation in business today and not enough leadership. We need more guys like Herb Kelleher who are willing to say we don’t need to go to court all the time."

According to preset rules the loser for respective rounds handed over $5,000 to the Muscular Dystrophy Association or Ronald McDonald House of Cleveland.The two airlines saved their millions from drowning over court trials and had a remarkable publicity.

Except for the lawyers( it just wasn't meant to be! ), true to Bush' statement it was a win/win for all.

 References :

Malice in Dallas : youtube :https://www.youtube.com/watch?v=46osNRJxBks

gizmodo.com : How an arm wrestle resolved a major airline dispute

friebergs.com : Malice in Dallas

Wikipedia: Herb Kelleher.

HEMLINE INDEX, LIPSTICK INDEX : SEXIST BUT TRUE INDICATORS OF THE ECONOMY

Ever heard of Hemline index, it tells that there is a correlation between the length of women s' skirt or pant in a country and its economy.What it propounds is the women's skirt hemline moves with the stock market index. The skirt length goes down as the market booms and vice versa. It seems far-fetched and sexist but has been true many times in history since its inception by economist George Taylor in 1926.

This effect is said to happen due to a psychological effect on the public which basically translates into that when economy is grim, people tend to be less rash and risk taking and become more modest. Some of the times hemline index was observed were, during 1920's the US economy was rising phenomenally increasing the hemline and the crashing of wall street in 1929 reduced the hemline to almost zero. Also during 1960 when the market was up micro mini skirts were in trend but due to Arab Oil embargo in 1973, market went down which in turn resulted in long skirts becoming the new trend. There have been many other examples all over the world which supports this theory.

   

Like hemline effect, lipstick indicator is based on the theory that a consumer turns to less expensive indulgences, such as lipstick, when she feels less than confident about the future. Therefore, lipstick sales tend to increase during times of economic uncertainty or a recession. This term was coined by Leonard Lauder, who found that after September 11 terrorist attacts, his lipstick sales doubled. The speculation is that women substitute lipstick for more expensive purchases like dresses and shoes in times of economic distress.

References :

http://www.investopedia.com/terms/l/lipstickindicator.asp

http://www.economist.com/node/12998233

http://womenshistorynetwork.org/blog/?tag=hemline-index

http://www.financemanila.advfn.com/2009/06/13-market-indicators-that-may-dictate-  stock-market-trends/

http://money.howstuffworks.com/lipstick-indicator.html

http://www.businessinsider.com/hemline-index-2012-2?IR=T

http://en.wikipedia.org/wiki/Hemline_index