30 September 2008

Daily Capital Markets Review: Markets Rebound but
US Housing Prices Continue to Decline

Corporate Executive Board, 30 September 2008

This five page summary includes news items impacting global liquidity, the TED spread (negative indicator of bank willingness to lend to one another), commercial paper and T-bill rates, currencies and commodities, and corporate debt spreads.

Staff Caliber Threatens Indian BPO Service Levels

BBC News, 29 September 2008

Marred by poor working conditions and career prospects, India’s $11 billion business process outsourcing (BPO) industry faces an exodus of its best talent. With US companies sending 70% of their BPO business to India, executives should monitor BPO costs and service quality as the industry consolidates and lowers recruitment standards.

Apple Shares Slide and Concerns Over Luxury Brands

Financial Times, 30 September 2008

Amid Monday's and Tuesday's coverage of the financial crisis were signs that analysts and pundits are starting to seriously consider the dangers faced by 'Main Street'. Two stories from the Financial Times discuss, first, how Apple's shares slid by almost 20% on Monday following concerns that the turmoil would cause consumer spending to drop; consumer darlings such as Google, Yahoo and Ebay all saw sharp falls too. Second, the FT reports worries that Monday's nationalization of the Icelandic Glitnir Bank could cause problems for the controlling company of luxury brands such as Saks in the US and Karen Millen and Hamleys in the UK. The entrepreneur that owns the retail brands was the bank's largest shareholder.

Our View: Ongoing Corporate Executive Board research shows one of the greatest risks to company growth is a failure to closely monitor shifts in customer demand and sentiment. Learn more about our ‘Stall Points’ research and how leading companies monitor change in the external environment.

The Exit Slowdown and the New Venture Capital Landscape

The MoneyTreeTM Report by PwC and the National Venture Capital Association,
September 2008

A recent survey shows that the VC-backed IPO market has abruptly halted, with no VC-backed IPOs at all in the 2nd quarter of 2008. This new development could mean longer life cycles for VC-backed companies as well as a trend toward bigger IPOs but fewer of them.

Financial Crisis Takes Emotional Toll on Employees

MarketWatch, 26 September 2008

As the credit crisis spreads, employees are feeling increasingly stressed, leading to decreased productivity and bad decision making at work. Companies are proactively working to manage employee stress levels and keep people engaged.

CEO-Bank of America: On the Future of Financial Services

CNN Money, 29 September 2008

Despite Bank of America (BofA) becoming the world’s largest brokerage firm by assimilating Merrill Lynch, its CEO Ken Lewis states that the glory days of the financial services sector are over. With an end to inflated pay, revenues being harder to achieve, and big write-downs to occur he predicts only a few great victors will remain in this space.