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. 26, No. 2, February

AFTER THE TURMOIL: What Comes Next?
How the European Union will look in 2020 is unclear. Whether it will see tighter union, a tiered eurozone, or will cease to exist altogether is at the center of many an analyst's model and economist's prediction. What is clear is that it will be a different...
Asia's Banks on the Way Up
Asian investment banks are starting to edge out their top-ranking American and European competitors as global investors take risk off the table in Asia.China International Capital Corp may not be a household name on Wall Street just yet, but it made...
Card Tricks
Advanced card solutions are helping companies extend working capital cycles while improving suppliers' cash flow.The drive to automate payments has been a long-term trend, pushed further by the global financial crisis and die need to make best use of...
China Three Gorges Wins EDP Portugal Bid
China Three Gorges, a state-owned company that operates the world's largest hydropower project, bought a 21% stake in EDP, Portugal's largest company and utility. The Chinese company also purchased a 49% interest in EDP's renewables assets to grow its...
Could the Eurozone Crisis Crater Your IT Department?
Preparing for the technological impact of possible eurozone crisis outcomes is a key issue for risk and continuity planning.It has been 10 years since the first Eurozone notes and coins were launched amidst much fanfare. Since then, a lot of time, effort...
Dollar Looks Good versus Euro in LessUgly Contest
The Japanese yen will hold its own as a safe-haven currency in 2012, while me dollar will be less ugly than the euro, analysts forecast. Based on relative economic growth and expected policy rate moves, the outlook for the greenback is encouraging in...
DR Capital Raising in 2012 Starts with Full Pipeline
Corporate Finance FocusDepositary receipt investors ipushed trading to a record high last year, demonstrating the continued popularity of DRs, despite challenging market conditions. While the amount of capital raised by corporate issuers was down from...
Ford Motor Credit, GE Race to Market
Ford Motor Credit, the finance arm of the secondlargest US automaker, and General Electric, the world's biggest maker of diesel locomotives and jet engines, were first out of the gate with big new corporate bond issues in January. GE sold $4 billion...
Hildebrand out at SNB after Wife's FX Trading Binge
SWITZERLANDIn the midst of Europe's sovereign debt crisis, a scandal hit the beleaguered continent's financial system in January. The head of Switzerland's central bank, Philipp Hildebrand, resigned after being tainted by allegations about foreign exchange...
India Takes Steps to Curb Falling Currency
INDIAThe Indian government finally took steps to bolster inflows of US dollars after the rupee fell by 13% during the last three months of 201 1 . Indian foreign exchange reserves dropped $24 billion during September-to-December 201 1 , to $2g7 billion....
Keeping It Vanilla
Corporate users of equity derivatives continue to seek out simple, transparent products. Until regulatory overhaul is complete, this tack is unlikely to change.The ripples from the 2008 financial crisis continue to flow, even into equity derivatives....
Liquidity and Regulations Squeeze Trade Finance
The global economy is threatened by a shortage of financing for international trade, as banks reassess their business models.The availability and cost of trade financing could be key factors in determining whether or not the global economy can continue...
Mezouar Takes His Post as Opposition Leader
MOROCCOMinister until recently in the reigning government's cabinet in Morocco, Salaheddine Mezouar is now the official leader of the opposition party in the country's parliament.Mezouar helped drive an era of unprecedented financial reform and opened...
New Tariffs to Cost Foreign Automakers
CHINAAmid charges that US companies sold automotive parts at prices below production costs, the Chinese government has said it will impose tariffs on imported US-made products. Plus, it has removed the automotive industry from its list of strategic industries...
New Year, New Fed with Rates Forecasts and Clear Targets
UNITED STATESThe Federal Reserve has found a new way to communicate its intentions to the markets. It will publish forecasts for the federal funds rate, the key short-term interest rate under its direct control. Fed policymakers already told market participants...
Nigeria Builds Biofuel Capacity as Zimbabwe Braces for Energy Shortage
AFRICAThe Nigerian government has signed a memorandum of understanding with Global Biofuels, a Nigerian biofuels producer, for the construction of 15 integrated biofuels refineries at an investment of $2.55 billion.According to die company, 70% of financing,...
No Hand at the Helm
As part of its Salon series, Global Finance sat down on January 1 1 with Ian Bremmer, president and founder of political risk analysis firm Eurasia Group, to discuss increasing geopolitical upheaval and how global policymakers may find their way through...
Open for Business
Saudi Arabia is preparing to open its stock markets to foreign investment, and it has reinforced its financial management team in preparation for this and broader economic reforms.Saudi Arabia, the world's largest oil exporter, is in a state of change....
Passera Faces Tough Job to Win over Italian Parliament
ITALYReady or not, as minister of economic development, infrastructure and transport for the newly-formed government of prime minister Mario Monti, Italian bankerturned-bureaucrat Corrado Passera will be honing his political skills this year.The former...
Protesters Take to the Streets after Elections
RUSSIAPolitical risk assumed center stage in Russia, as tens of thousands of demonstrators peacefully took to the streets In Moscow and throughout the country to protest widespread fraud in the December 4 parliamentary elections, in which the party of...
Protests Rock Nigeria after Gas Subsidies Are Pulled
NIGERIAThe government of Nigeria took a calculated political risk when it removed gasoline subsidies on January 1 . The sudden move more than doubled local prices at the pump, igniting protests across the West African country of 160 million people, most...
Restoring Trust
Custodians are dealing with the impact of major regulatory reforms and a loss of confidence in investors' services safety after the devastation of the MF Global debacle.The expanding web of government regulations permeating the banking and securities...
Rousseff Declares 2012 A New Era of Prosperity for Brazil
BRAZILBrazilian president Dilma Rousseff, a former technocrat and Marxist activist, completed her first year in office on January 1 with a 72% approval rating. Rousseff, who was predecessor Luiz Inácio Lula da Silvas chief of staff, has continued many...
Russia's 18-Year Odyssey to Join the WTO Finally at an End
RUSSIAWhile attention in December was mosdy focused on the evolving political environment in Russia, a major economic milestone was achieved on December 16, when the World Trade Organization formally accepted the country as a member. Sometime in die...
Shifting Trade Flows and the New Consumer
Fast-growing trade between BRIC countries has been fueled by an expanding middle class. Western rivals face stiff local and regional competition in building emerging markets growth.A decade has passed since die acronym BRJC was first used as shorthand...
Sowing Seeds of Change
The Arab Spring heralded the beginnings of reform and showed the growing importance of social media in enabling communal action. The telecoms sector in the Middle East has been forever changed as a result.The Arab Spring was an uprising of the people,...
State-Owned Banks to Boost Lending
BRAZILBrazil's government is investing more than $500 million this year recapitalizing two state-controlled banks to boost lending. The nation's Treasury will invest $269 million in the BNDES national development bank and another $242 million in the...
The Europe Effect
For months now public debate around the world has been dominated by the turmoil in Europe. The uncertainty is far from over, and what is at stake is not just the future of the Old Continent. World trade is integrally linked to the fate of Europe - affecting...
UAE and Qatar Remain Frontier Markets, MSCI Says
MIDDLE EASTQatar and the United Arab Emirates will have to wait at least six more months before index provider MSCI will consider upgrading them to emerging markets from frontier markets. MSCI cited Qatar's 25% foreign ownership limit and the UAE's system...