Global Finance

A monthly publication providing news and analysis of global market and economy. Focuses on corporate finance, capital markets, and more.

Articles from Vol. 20, No. 6, June

Bank Consolidation Draws to a Close
BRAZILA surge in Brazilian banking M&As may mark the end of a sector consolidation drive begun in 1994. Recent deals leave few major banks up for grabs, at a time when lower interest rates are boosting lending activity. Bank lending rose by 1.4%...
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Banking in Brazil
Global Finance brings together some of the leading players in the Brazilian banking industry to discuss the prospects for the industry in the coming years.GLOBAL FINANCE: What has been the recent performance of the Brazilian banking system and its leading...
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Bank of China's IPO Attracts Big Demand
State-controlled Bank of China, the country's second-largest lender, plans to list its shares in Hong Kong on June 1 in what is expected to be the largest initial public offering ever by a Chinese company. If the bank exercises its option to increase...
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Bernanke May Be Tightening Too Far
UNITED STATESFederal Reserve chairman Ben Bernanke has been a long-term promoter of inflation targeting, advocating an increase of 1% to 2% in the core inflation rate as an ideal range. The overall rate of consumer price inflation increased to 3.5% in...
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Best Investment Banks
The biggest wave of mergers and acquisitions since 2000 and record worldwide underwriting of securities are producing strong gains in revenue and earnings at the leading investment banks. The banks also are making hefty trading profits in global stock...
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Betting on A Losing Hand
It is not difficult to be bearish on the prospects for the US economy these days. By late May, consumer confidence was tailing off, and there were clear signs that the housing market-long employed as a virtual cash machine by US homeowners-was softening...
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Bolivia Gets Brazil over a Barrel
BRAZIL/BOLIVIAHours after Bolivian president Evo Morales moved to nationalize his country's gas and oil fields, Brazil's state-owned Petrobras oil company suspended its Bolivian investment program and blocked funds to expand a gas pipeline between both...
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Dark Horse Becomes New Frontrunner
MEXICOJust a year ago, former Mexico City mayor Andrés Manuel López Obrador of the opposition PRD party, and a center-left populist, held a firm lead in Mexico's presidential race. Recent polls, however, show ruling PAN party candidate Felipe Calderón,...
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Delayed Decision Highlights Doubts about Eu Enlargement
EMERGING EUROPE/EUThere will be difficult times ahead for southern European countries wanting to join the EU, according to Martin Stelzeneder, an analyst with RZB in Vienna. "The southeastern countries still have a lot of reforms to do," he says. "There...
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Derived Value
Corporate use of derivatives is becoming increasingly commonplace, but while they are easier than ever to use, the risks still remain.Last June the gross market value of outstanding over-the-counter derivatives soared to a whopping $10.7 trillion, as...
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Eastern Promise
Kazakhstan's abundant natural resources and stable political environment have made it a favorite among international investors.With a strong economy, a highly stable political environment and a history of sensible economic reforms and conservative fiscal...
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European Companies Merge at Record Pace
Europe's utilities, phone companies and banks are increasingly finding themselves to be the targets of takeovers, with mergers and acquisitions in the region running at a record pace and surpassing the level in the United States so far this year.European-targeted...
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Europe Banks on Brains Not Brawn
The European Union wants to create a region-wide knowledge-based economy. Realizing that vision is proving to be a major headache.In recent months as political and economic events have unfolded within Europe, the EU has come to resemble a recalcitrant...
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Fed's Shift from Automatic to Neutral Leaves Next Move Up in the Air, Analysts Say
CORPORATE FINANCING FOCUSWhen the Federal Open Market Committee (FOMC) concludes its next meeting on June 29, it could raise interest rates for the 17th consecutive time, or it could pause in its long series of tightening moves to assess more incoming...
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FX Update
A long, hot summer in the currency marketsOne of the more interesting developments since March of this year has been an apparent cooling in the relationship between the US Treasury and Japan's Ministry of Finance. Given the importance of these two institutions...
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Housing Slowdown Could Tip Economy into Recession
UNITED STATESThe roof hasn't caved in yet on the US housing market, but home prices are slipping, and inventories of unsold homes are piling up, sending shock waves through the economy. With all-important consumer spending threatened by declining home...
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Investors Push Indian Markets to an All-Time High
INDIAThe Indian stock markets raced to a new all-time high in early May backed by very strong inflows from foreign institutional investors. In the first five trading days in May foreign investors brought in nearly $800 million. Up to this point foreign...
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New Dawn
After more than a decade in the doldrums, Japan's economy is set for a robust recovery.Cherry blossom time is always a festive time in Japan as salarymen and students alike gather to drink alfresco while admiring the beauty of the trees. This year, however,...
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No More Hot Air
Businesses are recognizing the heightened importance of minimizing both their impact on the environment and the impact that environmental legislation has on them.Five years ago any NGO trying to take company CEOs or investment banks to task over the...
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Security Complex
Changes in regulations are forcing top corporate executives to focus on beefing up their companies' data security.As IT and information security become ever more critical to the success of any organization, they are no longer just the concern of the...
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The Benefits of Being Single
Banks and regulators are working together to cut the costs of cross-border payments in Europe.Since its inception, the European single currency has been fraught with economic and political problems, with some countries threatening to pull out of the...
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Turning Point
After enduring several tough years, the German economy is finally showing fresh signs of life.A few months ago, reeling from an inconclusive general election, Germany was facing an uncertain future. Undaunted, the country's new chancellor, Angela Merkel,...
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US Treasury Needs China to Buy Bonds
The US Treasury let China off the hook on a technicality last month, saying it didn't meet the definition of a currency manipulator. While howls of protest were heard from Congress, the executive branch signaled that it wanted no part of a trade confrontation...
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