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. 8, September

Adapting to Change Is Key to Success
GLOBAL CUSTODYCustodian banks are entering into creative partnerships to adjust to fast-changing conditions in the industry and more-demanding customers.Total assets under custody worldwide have surpassed $80 trillion, according to Globalcustody.net,...
A Hard Habit to Kick
THE BIG CONSUMERSThe world's addiction to fossil fuels is not going to end anytime soon.Blame it on James Watt and the steam engine. Ever since the Industrial Revolution began in Britain more than 200 years ago, global energy consumption has increased...
Analysts Say China May Accelerate Pace of Its Currency Reforms to Cool an Overheating Economy
CORPORATE FINANCING FOCUSChina will allow the yuan to strengthen much more quickly, in the hope that a stronger currency will be in the best interest of its fast-expanding economy by helping to put the brakes on, analysts say. The central bank already...
A Seller's Market
RUSSIAForeign investors have developed an impressive appetite for Russian depositary receipts-and with good reason.The past year-and-a-half has been remarkable for Russian equities. In 2005 they returned about 70%, as measured by Morgan Stanley Capital...
Banks Build on Twin Pillars of Security and Service
BEST INTERNET BANKSIn the first of a two-part series, Global Finance identifies the best online corporate and consumer banks by country and product or service category.For banks, the battle for supremacy on the Internet is one of both perception and...
Brazil's ADRs Still Shine
BRAZILLocal market jitters have failed to dampen investor enthusiasm for the Brazilian ADR market.Geraldo Soares is happy these days. The investor relations manager at Banco Itaú, Brazil's second-largest bank by market value, has seen his company's two...
Brazil's Quest to Make the Grade
BRAZILBrazil is gradually improving its sovereign debt credit rating. When and how will it reach investment grade?Gustavo Franco, a well-respected former president of Brazil's central bank who now works as executive director of Rio Bravo Asset Management,...
Chindia-The Emerging and Merging of Two Asian Giants
As the world's largest developing nations, China and India continue to fuel Asia's economic kgrowth, which the Asia Development Bank estimates at 7.2 percent for 2006. The rise of these two giants within the global economy has led to healthy competition...
Crossing Boundaries
Evolving electronic systems are blurring the lines between trade finance and cash management.International trade is almost as old as mankind itself, and although world trade volumes are constantly growing, some of the processes that support the transfer...
Crunch Time
THE ENERGY ISSUEUntil now, burying their heads in the sand has been the favored option for many corporations contemplating the global energy crunch. But with change in the energy markets encroaching from all sides, the time to act is now.Recent events...
Earnings Growth Revives Markets
EM ROUNDUPINDIAIndia's biggest corporations brought some welcome cheer to the country as they announced interim results this summer. Market sentiment had been hit by a volley of terrorist attacks but rebounded as the first results trickled in. Infosys,...
Economy and Investment Remain Red Hot
CHINAChina's economy continues to grow at a furious pace. In the second quarter it swelled by 11.3% over the same period last year, its highest increase in more than a decade. The faster growth rate comes in spite of new government restrictions on loans,...
Emerging Markets Welcome ETFs Boom
EXCHANGE-TRADED FUNDSEmerging market ETFs are coming into their own as an investment tool. The reason? They provide increased opportunities for both the investor and the underlying market.As emerging market equities become an increasingly important part...
Environmental Impact
CLIMATE CHANGEGlobal investors are turning up the heat under corporate executives to ensure they spell out how climate change and other environmental liabilities will affect their bottom line.As concern grows over the enormity of the corporate world's...
Expanding the Use of Corporate Card Programs to Achieve Maximum Efficiencies
According to a survey of 1,200 large and mid-sized companies conducted by RPMG Associates1, on average, 11% of employees use card programs. The sawiest payments managers are now expanding their card programs to drive increased usage-sometimes using prepaid...
Future Perfect
With both regulatory and market forces demanding more effective and transparent use of cash, treasurers are under increasing pressure to improve-and speed upcashflow forecasting.There are many forces at work on any corporate treasury, both internal and...
Global Equity Issues Setting Record Pace
Global equity capital market volume surpassed the $400 billion level in mid-July, marking an increase of 46% from the same period a year earlier, and was the highest year-to-date volume on record, according to Dealogic. It took only 188 days to reach...
Islamic Funds Flex Their Newfound Muscle
MIDDLE EAST/BRICIn the wake of September 11, 2001, many Middle Eastern investors pulled their money from Western markets and began looking for sound investments closer to home. At the same time, the region has been awash with petrodollars, which have...
Lamy Ruefully Throws in the Towel
FRANCE/GLOBALIt must have been a painful moment for Pascal Lamy, the former French civil servant who has served as director general of the World Trade Organization for the past 12 months. After carefully shepherding the Doha round of the global trade...
Lula Surfs Wave of Economic Progress
BRAZILBrazil's central bank slashed its Selic benchmark interest rate in July to 14.75%, the lowest level since 1986. The cut, the bank's ninth reduction since last September when the Selic stood at a record-high 19.75%, is sparking expectations for...
Peer Pressure Rises for Compensation Regulation
UNITED STATESA recent survey has shown that senior financial executives are surprisingly eager to see more disclosure of the details of executives' compensation. Despite the fact that heightened corporate governance and financial transparency are throwing...
Power Struggle
As many environmentalists predicted it would be, this summer in the northern hemisphere has been another scorcher. Parts of Europe sweltered under record temperatures for weeks while North America saw another epic heat-wave that stretched the capacity...
Power Struggle
REDUCING CONSUMPTIONMost large corporations place huge demands on the world's energy resources. New technology, however, is providing them with multiple ways to cut their power needs.In these times of heightened environmental awareness, it is not uncommon...
Putin Stakes Claim for Key Role on World Stage
RUSSIARussia held its coming-out party in the northern Russian city of St. Petersburg when it hosted the annual meeting of the G-8 in mid-July. Even though events in the Middle East overshadowed the gathering, Russian president Vladimir Putin served...
Rosneft Ipo Leaves Questions Unanswered
RUSSIARussian oil giant Rosneft's listing in mid-June was undoubtedly a landmark event. The $10.4 billion deal was the largest oil IPO, the largest-ever Russian float and the fifth largest in the world. But more important than the deal's size was the...
Supporting Sepa-Turning Theory into Reality
The introduction of the Euro in 1999 changed the face of banking and finance in Europe. However, it is but one step in the move towards the EMU aim of creating a single financial market that allows the free flow of goods, services, capital and citizens...
The Many Faces of Risk
There's no cutting corners when it comes to managing risk. You've established risk committees, appointed risk executives-you're looking at it from every angle. To spare your company the potential losses that come with risk exposure, your approach has...
The Up and Up of Down Under
AUSTRALIAAs Australia's economy emerges from a period of frenzied growth, there is uncertainty over whether it faces a hard or a soft landing.Australia has traditionally prided itself on being "the lucky country." The tag seems rather apt just now. The...
Three-Way Merger Creates Mining Titan
Phelps Dodge, the Phoenix, Arizona-based mining company, agreed with Toronto-based Inco and Falconbridge, a leading producer of copper and nickel, to combine in a $56 billion transaction to create one of the world's top mining companies.With operations...
Treasury & Cash Management Guide 2006
As multinational corporations expand their global footprint into new markets, they are confronting a range of issues-be it demands on liquidity and working capital, risk management or sourcing effective trade financing. In this our second annual Treasury...
When It Pays to Be Different
INVESTING IN ALTERNATIVESNear-panic in global energy markets has spurred an explosion of interest in alternative sources.Spurred by factors from skyrocketing oil prices to escalating concerns over climate change and national security, global investors...
"Who's Who" in Treasury and Cash Management
ANN CAIRNSCEO, transaction bankingABN AMROAnn Cairns runs the global product business unit that develops and delivers payments, liquidity management, trade and supply-chain services and card products to ABN AMRO's clients. The transaction banking unit...
Wired Payments
Electronic invoicing offers benefits to both suppliers and their customers, but a lack of international standards is hindering its adoption.In Lapland, inclement weather conditions means that a journey to the post office, be it by a team of huskies or...
World Bank Urges Asia to Develop Bond Markets
East Asian banking systems have revived since the 1997 financial crisis, but the region needs to develop its bond markets to provide a market price for risk, according to a report by the World Bank."While progress has been made in strengthening the banking...