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. 12, No. 1, December/January

And Now for Growth
In the past two years Russia has put on two sensational shows for foreign investors. The Russian T-bill extravaganza of 1996 was followed by the equity boom of 1997. In 1998 Russia expects to put on a show for itself, to be called economic growth. There...
An Industry on Fast Forward
Economic growth, exuberant equity markets, and privatizations in key regions throughout the world have switched on the global power industry. Its new players, increasingly sophisticated investors, and new financings are surging ahead, despite recent...
Beware of Shares That Mutate
It was the loudest shot yet in what promises to be a long conflict between shareholders and managements of corporations around the world. Australian gambling enterprise Crown canceled its November 14 meeting of shareholders over concerns about institutional...
Custody Moves Ahead
Global custody leaders met in London with Global Finance publisher Joseph Giarraputo to discuss how developments in technology, industry consolidation, and the adoption of the euro will affect the industry. GLOBAL FINANCE: How will the euro change business...
Gaining from the Pain
It's been growth at an!' cost in Asia. Blt no1s A sian corporations are hunkering down,, becoming leaner; tighter, and more efficient. The carnage has been considerable. But through it the shell-shocked corporations of Korea and Southeast Asia are forging...
Going Natural but Not Naked
With costs skyrocketing, companies doing business in Asia are living without hedges By late November the Thai baht and the Indonesian ringgit had each dropped by nearly 40% against the dollar since the first of the year, and in the first half of December...
How Asian Companies Are Coping
Restructuring may be in the wind for corporate Southeast Asia and Korea, but many companies there also have more immediate concerns. "The most important thing for all of us at the moment is to review cost structures, particularly foreign-denominated...
How Italy's Privatization Program Has Progressed
After the lira was clobbered in Europe's 1992 currency crisis, Italy's treasury told the big state holding companies to get serious about privatization. One result was three small private sales-of ice cream maker Finanziaria Italgel to Nestle in 1993...
IMF Consequences
Of course there is much wrong with Asia's economic framework. But the austerity measures that have become the International Monetary Fund's stock answer to economic woes will do more harm than good-at least if implemented at the breakneck speed required...
ING's 'Death Knell' Acquisition
Dutch bank ING's pending $4.7 billion acquisition of Belgium's Banque Bruxelles Lambert may prove to be the death knell for a particular style of holding-company capitalism that many people believe has been holding Europe back. The game has been to devise...
Italy's Breakthrough Deal
The wide distribution of Telecom Italia shares is finally creating the retail equity market that the country needs. In the words of the local press, it was "la madre di tutte le privatizzationi," the mother of all privatizations. That seeming hyperbole...
One World, One GAAP? Not Yet!
A gigantic stumbling block still remains on the way to international accounting standards: derivatives. The annual meeting in Paris of the International Accounting Standards Committee in October was supposed to have changed everything. Representatives...
Place Your Bets
Former Dutch central banker Wim Duisenberg looked like a shoo-in to run the new European Central Bank when he was chosen to head the European Monetary Institute, the ECB's predecessor. But last fall France suddenly began pressing the case for its own...
Poised for the Future
Despite the global market turmoil over the past month, the OTC derivatives market is poised for growth in old arenas and showing strength in recently established ones. Global Finance publisher Joseph Giarraputo moderated this roundtable of executives...
Prescription for the Asian Flu
In the mid-1980s Intel's revenue stream, which had been growing for 17 years, suddenly declined by 20-30% over a couple of years, which is a very major reversal for a growing company. We were in a state of shock, but our founder and then CEO, Gordon...
Report from Milan on Two Privatizations
The following are dispatches from Milan on the privatization of Banca di Roma, completed in November, and the planned privatization of Autostrade, which has run into difficulties. Banca di Roma The privatization of Banca di Roma, the bank formed by the...
Something to Talk About
Public speaking is an art, quoth Aristotle. So, too, is choosing a speaker for a business conference. We canvassed three leading speaker's bureaus for orators geared to an international business or finance audience. But don't expect these guys to come...
Structured Hedging in Asia
This is the fourth in a series of articles by UBS in which we discuss specific risk management tools used by corporations investing in North America, Europe, Southeast Asia, Australia, and Japan. In this series we are providing up-to-date intelligence...
The Case for US GAAP
Benckiser's initial public offering of stock on November 24 came 174 years after the company was established in Germany in 1823. However, we believe that our 19th-century company has gone public in a very 21st-century way: Benckiser, headquartered in...
The Euro: Ready or Not
The euro's official introduction is a mere year away, but much work is yet to be done to prepare the world's financial markets and corporations for full conversion. Global custodians, at the center of cross-border transactions, are in a unique position...
The Shadowy Figure
BEHIND A NEW FINANCIAL CENTER Early in 1998 Nomura Securities International intends to manage a $1 billion issue of global depositary receipts on behalf of Sa`diyat Free Zone, a $3 billion project to build a commodities exchange and financial center...
Where Foreign Companies See Opportunities
There may be gloom and doom in Asian banks and corporate headquarters, but things are hopping at the Hongkong and Singapore offices of global investment banks. Salomon Brothers' Trevor Rowe reports he is working with several big US corporate clients...
Which Are the Best Banks?
A Global Finance survey asked finance executives what's important when choosing banks for "complex "services and "basic "services. While the trend has been building for years, mergers in the financial world revved into overdrive in 1997: Commercial banks...
Why Japanese Companies Are Different
In the maelstrom sweeping much of Asia, Japan stands curiously apart. Of course, the troubles of Southeast Asia and Korea will have some effect on Japanese companies and banks. But Japan is different. Most of its financial problems are uniquely its own....