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. 22, No. 1, January

Adapting to Survive
Cash-heavy buyout firms are still looking for deals, but the rising cost of borrowing may result in their emulating their smaller private equity cousins.Just a few months ago there were widespread fears that big buyout private equity firms were playing...
Asia's Big Year
Asia's most dynamic economies are amassing huge cash fortunes that they can then wield to increase their power around the world. Will 2008 be the year when we truly see the balance of global power shift to the East?In October 2003 economists Dominic...
Bansur Takes Off
LATIN AMERICAWith a paid-in capital of $7 billion, Banco del Sur (Bansur), the long-awaited Bank of the South, was launched in December by seven South American member countries. Created by Venezuelan president Hugo Chavez as part of his broader Latin...
Branching Out
Advances in technology are helping treasury and cash management specialists provide their organizations and clients with greater depth and breadth of services.GLOBAL FINANCE: Supply chain finance may be an offering more appealing in theory than practice....
China Faces Growing Skills Shortage
CHINAWith its economy growing at more than 10% per year, nothing appears likely to stop the rise of China as an economic superpower. However, the first-ever joint European-Chinese study on the Chinese labor market points to a number of factors, including...
Cyprus Bids Farewell to the Pound
CYPRUSIn mid-2004 the Republic of Cyprus joined the EU, and this month it takes the next, perhaps more significant, step of adopting the single currency. Many in Cyprus, though, have mixed feelings about joining the euro. The reason for their ambivalence...
Expanding Horizons
Iceland is going all out to expand its economy-and the global reach of its banks and corporations.With a wealthy consumer base that has the sixth-highest per capita GDP in the OECD, 0.8% unemployment, negligible corruption and crime rates, an 18% corporate...
Funds Make Hay in Frothy Market
BRAZILBrazil-focused hedge funds continued to outperform other emerging market funds, producing an average 5.11% return in October, for a hefty 29.47% yearto-date (YTD) gain. By comparison, Latin America-focused funds gained 3.6% in October, for a 20.61%...
FX Update
Will Coordinated Monetary Easing Save the Greenback?The Bank of Canada (BOC) surprised markets on December 4 by cutting rates 25 bps to 4.25%. The bank cited renewed deterioration in the US housing sector and the subprime mortgage market, and the rate...
Greenback's Decline Prompts Talk of Central Bank Reserve Diversification and Ending Pegs to Dollar
CORPORATE FINANCING FOCUSThe shifting sands in the foreign exchange market in 2007 under-mined the dollar to the extent that China openly weighed what its state media refer to as the "nuclear option" of dropping its vast holdings of US securities if...
High-Yield Spreads May Widen Further
With banks still reluctant to lend, corporations that have delayed borrowing during the recent turmoil in the credit markets may have little choice but to issue debt in the coming months, putting further pressure on credit spreads, analysts say."An increasing...
Investors Climb aboard China Railway IPO
When state-owned China Railway, the world's third-biggest construction company, offered $3 billion worth of shares for sale in its initial public offering in Shanghai last month, it attracted more than $450 billion in subscriptions.Clearly, Chinese investors...
Mature, but Not Grown Up
In our cover story this month, we investigate the idea that this could be Asia's big breakout year. Certainly, the continent's economic fortunes have transformed since the 1997 crisis that temporarily crippled Thailand, the Philippines, Indonesia and...
Mining Industry Offers Rich Vein for Mergers
More mergers in the mining industry are likely in 2008, analysts say, including potentially some of the biggest M&A deals ever.Australia-based mining company BHP Billiton in November announced plans to launch an unsolicited tender offer to merge...
Road Spending Moves into a Higher Gear
INDIATwenty leading global and Indian infrastructure construction companies are bidding for the contract to build a $10 billion eight-lane expressway in the northern Indian state of Uttar Pradesh. This expressway will link the less developed eastern...
Tensions Rise with the United States
CHINAChina stoked military tension with the United States by denying entry to a number of US naval vessels looking to dock in Hong Kong. In the most publicized of these denials, aircraft carrier USS Kitty Hawk was prevented from docking in Hong Kong...
World's Best Foreign Exchange Banks 2008
Global Finance selects the leaders in the world's biggest financial market.The 54 central banks and monetary authorities that took a measure of the foreign exchange market last year under the auspices of the Bank for International Settlements discovered...