World Market Entered Bear Phase... Are we heading towards another recession?

World Market Entered Bear Phase

Are we heading towards a double dip recession?

Stocks fell today pushing the MSCI All- Country World Index of 45 nations into a bear market for the first time in more than two years, after the worsening European debt crisis and threat of a U.S. recession erased more than $10 trillion from equities since May.

The MSCI index, which slipped 0.3 percent in Hong Kong today, has lost more than 20 percent since peaking on May 2, meeting the common definition of a bear market. It tumbled 4.5 percent to a 13-month low of 277.38 yesterday. The MSCI World (MXWO) Index of shares in developed nations also fell into a bear market yesterday, plunging 4.2 percent. The MSCI Emerging Markets Index reached the 20 percent threshold on Sept. 13.

The world is poised for a financial crisis, Mohamed El- Erian, chief executive officer of Pacific Investment Management Co., said in Washington yesterday. Finance chiefs from the Group of 20 nations pledged late yesterday to address “heightened downside risks” to the global economy, echoing language used by the Federal Reserve on Sept. 21 when it announced a $400 billion plan to spur growth as the recovery from the worst contraction since the Great Depression falters.

The market is pricing in a recession. “Stocks are looking cheap, but it will take a lot of courage to believe that. Things could get worse. The risk of a sovereign-debt default in Greece is the most significant concern.”

 Valuations Sink

The MSCI All-Country World Index has retreated 19.8 percent since July 22. It fell after Standard & Poor’s cut the U.S. credit rating following a debate over raising the nation’s borrowing limit, speculation Greece will default intensified, and Chinese inflation accelerated to a three-year high. The slump pushed the price-earnings ratio for the index down to 11.4, the lowest since March 2009 and 46 percent less than the 16-year average, data compiled by Bloomberg show.

The Standard & Poor’s 500 Index extended its drop since its peak on April 29 to 17 percent. The gauge has retreated even as analysts raise projections for 2011 profit to a record $99.34 a share this year from $98.73 on April 29.

Benchmark measures for five out of 24 developed markets haven’t posted a 20 percent slump from their highs: the U.S., U.K., Canada, Singapore and New Zealand. Eight out of 21 developing nations aren’t in bear markets, including South Africa. The MSCI Emerging Markets Index has retreated 27 percent since its 2011 high on May 2.

 Europe, Asia

The 15 national stock gauges with the biggest losses since the MSCI All-Country World peaked on May 2 are for European countries. Greece’s ASE Index has lost 42 percent, Italy’s FTSE MIB Index has plunged 40 percent and Hungary’s Budapest Stock Exchange Index has retreated 38 percent.

Policy makers are “committed to a strong and coordinated international response to address the renewed challenges facing the global economy,” G-20 finance ministers and central bank governors said in a previously unplanned statement in Washington. Many urged Europe to implement a July promise to expand the powers of a rescue fund.

The Euro Stoxx 50 Index has tumbled 28 percent since July 22 as Greece edged closer to defaulting on its sovereign debt and the cost of insuring western European countries’ loans rose to records. The MSCI Asia Pacific Index has fallen 19.7 percent since its 2011 high on May 2.China’s Shanghai Composite Index has tumbled 23 percent since its peak in November, and Japan’s Topix has slumped 25 percent since April 2010.

 Bad Ending 

Europe is going to continue to unwind and eventually end up badly for the global economy, There are so many questions, so many uncertainties.

The 20 percent decline in global equities ended the bull market that began in March 2009. The MSCI All-Country World Index climbed as much as 107 percent during the rally. The measure avoided a bear market in 2010, when it fell 16 percent between April 15 and July 5. The index rebounded after Federal Reserve Chairman Ben S. Bernanke foreshadowed $600 billion in bond purchases meant to prevent deflation and stimulate growth at an Aug. 27, 2010, meeting in Jackson Hole, Wyoming.

Financial stocks, which posted the biggest losses in the last bear market, are leading declines again amid growing concern that European banks will have to write down their holdings of government debt. Banks, brokerages and insurers in the MSCI All-Country World have collectively lost 31 percent since May 2.

 SocGen’s Slide

 Societe Generale SA of Paris has retreated 66 percent since May 2, the second-biggest loss among financial stocks in the MSCI All-Country behind Athens-based EFG Eurobank Ergasias. UniCredit SpA, based in Milan, has retreated 62 percent. Banks in Europe hold 98.2 billion euros ($132 billion) of Greek sovereign debt, 317 billion euros of Italian government debt and about 280 billion euros of Spanish bonds, according to European Banking Authority data.

Financial companies in the worldwide index sank 77 percent during the last bear market as government bailouts rescued the biggest U.S. banks from collapse and Lehman Brothers Holdings Inc., once the nation’s fourth-biggest securities firm, filed the nation’s largest bankruptcy in September 2008.

More than $37 trillion was erased from global equity values in the previous bear market that lasted for 16 months after the MSCI All-Country World peaked on Oct. 31, 2007. The index fell as much as 60 percent amid the first global recession since World War II and more than $2 trillion in losses and write downs at financial companies worldwide after housing prices dropped.

We could be on the eve of the next financial. We shouldn’t be because there are things that could be done to avert it, but they haven’t been done. There are no signs that the authorities are going to do them. Perhaps government has not yet learned from its previous mistake or they fail to understand the depth of the ongoing crisis. If no steps are taken to boost the economy the world will sink into another recession in next 6 month and this one is going to be far more catrostropic than that of 2008.

Capital Iq Aptitude Test Questions

Capital IQ Aptitude Questions

        Research Associate at Capital IQ (2010 and 2011)

·                     After a basic test with simple math and English problems and a write up about why you want to join the company.

·                      

·                     2nd aptitude test is conducted. It is for 80 min. and usually has 4 sections.

 a. General  Knowledge

 b. A write up

 c. Passage (Very easy)

 d. CAT kind of Logical reasoning and English

  

 Q 1 Eurodollars are best described as 

1.                The new currency of the European union to US banking regulation.

2.               A U.S dollar denominated deposit ….generally in a bank located outside the United States …that is not subject

3.               A currency deposited outside its country of origin

4.               A foreign Denominated deposit subject to US banking regulations

Q 2  If the real gross domestic product of US has increased, but the production of goods remained the same, then the production of services has; 

a) Increases b) Decreases c) Remained same d) Would vary

Q 3 Raj has a jewel chest containing Rings, Pins and Ear-rings. The chest contains 26 pieces. Raj has 2 1/2 times as many rings as pins, and the number of pairs of earrings is 4 less than the number of rings. How many earrings does Raj have?

Q 4 A train travels a certain distance taking 7 hrs in forward journey, during the return journey increased speed 12km/hr takes the times 5 hrs.What is the distance traveled.
 A.) 210 kms
 B.) 30 kms
 C.) 60 kms 
 D.) 90 kms 


Q 5:  When the cost of petrol increases by 20%, a man reduces his monthly consumption by 15%. The 
percentage change in his monthly expenditure on petrol will be: 
 (a)  10%       (b)  2% 
(c)  3%      (d)  4% 


Q 6 A train leaves New York at 9 A.M and travels east at a constant speed of x mph. If another train leaves 
New York at 10 A.M and travels east, at what constant rate of speed will the second train have to travel in 
order to first catch train at exactly 1:30 P.M.? 

(a) 5/6*X
(b) 9/8*x

Q 7 A clock is set right at 5 am. The clock loses 16 minutes in 24 hours. What will be the true time when the clock indicates 10 pm on 4th day? 

  (a) 10:48 pm  (b) 11 pm 

(c) 10 pm  (d) 11:23 pm

 Q 8 Company X owns 40% of the stock in the ABC Corporation. Company Y owns 15,000 shares. Company Z owns all the shares not owned by companies X or Y. How many shares of stock does company X own if 
company Y has 25% more shares than company X? 
  (a) 45, 000  (b)  50, 000 
  (c) 60,000  (d)  75,000 

Q 9 There are 50 student enrolled in a MBA program of the enrolled students, 90% took the final exam. Two thirds of the students who took the final exam passed the final exam. How many students passed the 
final exam? 
(a) 30  (b) 33 
(c) 34  (d) 35

Q 10 The cost of a precious stone varies as the square of its weight. A diamond weighing 10 decigrams costs Rs. 2600. The loss incurred when it break into two pieces whose weights are in the ratio 3:2 is 
 (a) Rs 168  (b) Rs. 872 
(c) Rs. 1352  (d) Rs. 2000

Q 11 WALL : NECK   
  (a) valance : pendant  (b) curtain : ruffle 
  (c) tie : pleat  (d) valence : cravat 
Q 12 SPEECH : RAMBLE (a) river : meander  (b) mountain : erode(c) flower : blossom (d) plan : fail 

Q 13 BANKRUPTCY : SOLVENT 

(a) dehydration : wet  (b) antagonism : quarrelsome

(c) colonization : new (d) modernization : destructive 

Q14 BEWITCHED : SPELL 
(a) tricked : hoax  (b) amused : audience
(c) expelled : school (d) discovered : fraud 

Q15 ASYLUM : REFUGEE   
(a) flight : escape  (b) destination : traveler
(c) lunatic : insanity (d) accident : injury

                  Some More Interview questions

1.               What is Money market & Capital Market?

2.               What is the difference b/w acquisition by subsidy & acquisition by a company? Who is the governor of RBI

3.                Name 2 stock exchanges of U.S.A

4.                What is subordinated debt? 

5.                What is Contra Entry? 

6.                What is capital expenditure? 

7.                What is bonus shares? 

8.                THE DEBIT BALANCE OF THE P&L A/C IS SHOWN IN WHICH COLUMN OF BALANCE SHEET 

9.               BY WHOM THE BANK RECONCILIATION STATEMENT IS PREPARED 

10.          What is the capital

11.          What is reserve capital

12.         what is private placement?     

13.         what is capital reserve? 

14.         What is the new name for Stock exchanges ? (recently)        

15.         What is Contribution?    

16.         what is portfolio management?    

17.         What are quick assets? Give me some examples  

18.         Differences between forward contract and futures contract?      

19.         What is goodwill? How do u calculate it?      

20.         What do u you mean by deferred revenue expenditure?     

21.         What is the difference between Income and Revenue?        

22.         What is the difference between Capital expenditure and Revenue expenditure?

23.         What are quick assets? Give me some examples

24.         Differences between forward contract and futures contract?

25.         What is goodwill? How do u calculate it?

26.         What do u you mean by deferred revenue expenditure?

27.         What is the difference between Capital expenditure and Revenue expenditure?

28.         What is the difference between Income and Revenue?

               Some HR round interview Questions

1.               What do know about the company?

2.               what do you know about the position you applying?

3.               what modules did you like at university?

4.               what modules you disliked?

5.                Tell me about your background?

6.                What do you think about corporate culture?

7.                Tell me about your job experience?

8.               People say its a monotonous job.. do u still want to be hired?

9.               Why do you want to work for Capital IQ ?

For more information refer the following website:
                     http://www.capitaliq.com

Capital Iq: Company Profile Interview Tips and Questions

Capital Iq: Company Profile Interview Tips and Questions

About Capital IQ , Its Interview Questions and Its Campus Recruitment Process

First of All let us Know a bit about the Company Capital IQ.

• The Company Profile (www.capitaliq.com)

Capital IQ, a Standard & Poor's business (a McGraw-Hill Company), provides High-impact Information and Work flow Solutions to over 4200 client firms including many of the world's most successful investment banks, investment management firms, private equity firms, consultants, and corporations.

Founded in 1999, we are headquartered in New York City with offices located in San Francisco, Chicago, Los Angeles, Houston, Boston, London, Hyderabad and Gurgaon.

Our solutions are based on the Capital IQ Platform, Computation, Clarify, and Alpha Works products through which we offer an array of powerful applications for desktop research, screening, real-time market data, back-testing, portfolio management, financial modeling, and quantitative analysis.

We help client’s access deep information on companies, people, securities, industries, and markets worldwide. Our solutions are provided through our web and Excel-based applications as well as client-side systems.

People strength- 4500+ 

Competitors of Capital IQ are:

Bloom berg L.P,Lexis Nexis,Thomson Reuters

Campus Recruitment Process:

The Recruitment Process (Steps Involved):

Capital IQ shares the Job Description and other details like Compensation, Work timings, Place of work etc. Also shares the initial selection criteria for the interested candidates. The following Criteria should be fulfilled:

Class X- 70% and above

Class XII-70% and above

Graduation- Aggregate of 50% and above

MBA/Masters- 60% and above.

Hiring Process:

On the Campus

Ø Aptitude Test for the shortlisted candidates

Ø Company Presentation

Ø Shortlisted Candidates via aptitude test go through an HR round of Interview

Ø Candidates from the HR round undergo a Level II test. Candidates shortlisted from  Level II Test undergo TL/Manager Level round of  Interview  

Ø Candidates shortlisted from TL/Manager Level round of Interview undergo Director level round of Interview

Ø  Final List of HIRES communicated to the     Placement Coordinator

Ø Process Closed 

 Q 1 What is the difference between charge and appropriation ?

Ans: The difference between charge and appropriation cab be stated with the following example:

For charge depreciation can be an example....  whether there

is a profit or loss the depreciation is charged to the

Profit and loss account..For appropriation.. Reserves or tax

can be taken as an example.. it can be only appropriated

when there is a profit.. Otherwise there is no

Appropriation.. For charge let there be a profit or loss it

is valid.. Appropriation is only valid when there is a profit.

Q2. What is bank reconciliation statement?

Ans: A form that allows individuals to compare their personal bank account records to the bank's records of the individuals account balance in order to uncover any possible discrepancies.

Q3.What is nifty?
Ans: Nifty is an indicator of all the major companies of the

NSE.Actual this is stock exchange place where all company

and investors see the actual gain/loss which they have got.

Q4.What do you mean by margin of safety?
Ans: IT IS THE DIFFERENCE B/W ACTUAL SALES&BREAK EVEN SALES.IT

CAN BE REPRESENTED BY THE FOLLOWING FORMULA.

MARGIN OF SAFETY=ACTUAL SALES - BREAK EVEN SALES

Q5.Difference between Reserve capital and capital reserve?
Ans: Reserve capital if that part of reserve which may use on

the event of winding off the company .... but capital

Reserve is a part of profit.......

Q6.What is share premium?
Ans:Share Premium means excess issue price over the face value.
Q7.What is debt equity ratio?
Ans: A measure of a company's financial leverage calculated by dividing its total liabilities by stockholders' equity. It indicates what proportion of equity and debt the company is using to finance its assets.

Note: Sometimes only interest-bearing, long-term debt is used instead of total liabilities in the calculation.

Also known as the Personal Debt/Equity Ratio, this ratio can be applied to personal financial statements as well as corporate ones.
 Q8. What is ADR DEFINE ?Ans: It is American Depository receipt issued by non American
company to raise capital in US
Q9. Tell me about some accounting concepts?
Ans: There are 10 concepts.They are as follow:

1.Business Entity concept

2.Going Concern concept

3.Money Measurement concept

4.Cost concept

5.Accounting Period concept

6.Dual Aspect concept

7.Matching concept

8.Realization concept

9.Accrual concept

10.Objective Evidence concept.

Q10.What are bills of exchange?
Ans: Definition

An unconditional order issued by a person or business which

directs the recipient to pay a fixed sum of money to a third

party at a future date. The future date may be either fixed

or negotiable. A bill of exchange must be in writing and

signed and dated. also called draft.

Q11.What is private placement?
Ans: The sale of securities to relatively small number of selected

investors as a way of rising capital. It was an opposite of

public issue.

Q12.What is net worth ?
Ans: The amount by which assets exceed liabilities,

This term can be applied to companies and individuals

Q13.What is zero-base budgeting?
Ans: A method of budgeting in which all expenses must be justified for each new period. Zero-based budgeting starts from a "zero base" and every function within an organization is analyzed for its needs and costs. Budgets are then built around what is needed for the upcoming period, regardless of whether the budget is higher or lower than the previous one.

ZBB allows top-level strategic goals to be implemented into the budgeting process by tying them to specific functional areas of the organization, where costs can be first grouped, then measured against previous results and current expectations.
Q15.What is the meaning of the capital IQ?
Ans: A research and analysis company that offers a variety of software and data feeds to thousands of investment managers, investment banks, private equity funds, advisory firms, corporations and universities. Its major products are the Capital IQ platform, which provides fundamental analysis, and Compustat, Money Market Directories (MMD), Xpressfeed and SystematIQ, which provide quantitative research


Q16.What is the difference between single entry system &double entry system?
Ans: In the single entry system only one aspect of the business transaction will be recorded in the books of accounts.
but in the double entry system both aspects of the business transaction will be recorded,
for example i am selling the machinery to kiran.
in this two accounts are involved.
i,e:kiran a/c and machinery a/c.
so in the single entry system we will record only kiran a/c as a debtorand we dont record the a/c regarding the machinery.
but in the double entry system we will record both aspects of the transaction.
it means we will record
kiran a/c ---dr
to machinery a/c.
so it wil give complete information about the business transaction.

 Q17. What Amount taken if company get  asset free?      
Ans: As per accounting rule if cost of asset is below 5000 you sgould book it in to your books of account as Re/- 1/.


                                  2011 Capital IQ Placement Paper I

1.In recommendations to the board of trustees a tuition increase of $500 per year, the president of the university said "There were no student demonstrations over the previous increases of $300 last year and $200 the year before".
If the president’s statement is accurate then which of the following can be validly inferred from the information given:
I. Most students in previous years felt that the increases were justified because of increased operating costs.
II. Student apathy was responsible for the failure of students to protest the previous tuition increases.
III. Students are not likely to demonstrate over new tuition increases.

(a) I only
(b) II only
(c) I or II but not both
(d) I, II and III
(e) None

Ans. (a)

2. When the democratic party holds presidency, the staff of the prime minister’s deputies are composed

I. One-fourth of democratic party members
II. One-half of justice party members and one-fourth of conservative party members
III. One-half of conservative party members and one-fourth of justice party members.

(a) I only
(b) I and II only
(c) II or III but not both
(d) I and II or I and III
(e) None of these

Ans. (a)

3. Which of the following is allowable under the rules as stated:

(a) More than half of the staff within a given office belonging to a single party
(b) Half of the staff within a given office belonging to a single party
(c) Any person having a member of the same party as his or her immediate superior
(d) Half the total number of staff members in all three offices belonging to a single party
(e) Half the staff members in a given office belonging to parties different from the party of the top office holder in that office.

Ans. (a)

4. The office of the Army Chief passes from Conservative to Justice party. Which of the following must be fired.

(a) The democratic deputy and all staff members belonging to Justice party
(b) Justice party deputy and all his or hers staff members
(c) Justice party deputy and half of his Conservative staff members in the chief of staff office
(d) The Conservative deputy and all of his or her staff members belonging to Conservative party
(e) No deputies and all staff members belonging to conservative parties.


5. what is NSE free float capitalization

6. what is exact difference between copy rights and patent rights?

7. what is by brs?

8. why the debit balance of p&l a/c shows in asset side of balance sheet    

9. what is minut      

10. what is capita employed?      

11. what do you mean by semi-variable cost?      

12. what do you mean by working capital?

13. what is zero based budgetting    

14. what is delapidation

15. what are share warrants?      

16. what are the types of the Balance sheets ?      

17. what is zero base budgeting

18. what is debentures, types of debentures

19. what is meant by bridge finance

20. what is brs?

21. what is sharesplit and types of it explain?

22. what is the difference between take over and aquisation?          

23. what is the formula for profit margin?      

24. what is deference between Revenue and Income

25. what perposs calculate the fixed assets?
  
              2011 Capital IQ Placement Papers - II

1. what is treasury stock      

2. what are fictious assets? give some examples?

3. what is debenture ?

4. what about the company background?          

5.What is the entry for forfeiture of shares?      

6. What is contingent event?           

7. What is Break Even Point?          

8. What is marginal costing?           

9. Difference between operating profit and netprofit.          

10. Company A is having operating cycle of 15days...b is having operating cycle of 10 days which company is having better position      

11. what is deferred revenue expenditure?

12. what is assets

13. what is the meaning of the capital ique

14. what is brench finance please telL me immediately           

15. define finance

16. what is the difference between npv and irr method of capital budgeting and which one is better?      

17. Types of Debentures

18. what is float discuss?      

19. Company why should issue Debentures and shares, Which one should issue better for company and why?           

20. what is fixed cost?
           
21. In Banking industry difference between interest income and interest expenses is called as .............

22. what is the effect of crr hike on market?      

23. how cash enters in market?
 
24. What Are Hedge Funds?
25. What do you understand by Private Equity? What is the difference b/w PE and Venture Capital                                     

                                             BEST OF LUCK