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. 24, No. 8, September

Africa
Flushed with confidence after its peaceful referendum on a new constitution, Kenya plans to issue $390 million of infrastructure bonds, the government's fourth such issue. The bonds will have maturities of between six and nine years, with a 6% coupon....
An Attainable Goal
SpainSpain's economy is still under pressure, but signs of renewed confidence are slowly emerging.When Spain beat the Netherlands in July to win the country's first-ever soccer World Cup, Spaniards took to the streets to celebrate the historic victory....
Braced for Turbulence
Currency volatility is increasing, and companies are finding that more than ever they need to have an effective FX hedging strategy in place.Frank Pirozzi is the assistant treasurer at Red Hat, a Raleigh, North Carolina-based company that sells open-source...
China
China overtook the United States to become the world's largest energy consumer, according to figures released in July by the International Energy Agency. China used energy equivalent to 2,265 billion tons of oil in 2009, compared with 2.169 billion tons...
Data Drivers
Analytics solutions pull data from disparate sources to provide a big-picture view of operations and exposures. By Denise BedellIn the wake of the financial crisis, the job of the treasurer has increasingly focused on a few key areas- compliance and...
DR Trading Sets Record in First Half as BRIC Countries Raise Most Capital
Corporate Finance FocusDepositary receipt trading worldwide rose 8.3% to more than 78 billion DRs in the first half of this year and was valued at a record $1.84 trillion, according to BNY Mellon. Most of the trading took place on the New York Stock...
Emerging Market Deals Boost M&A
Emerging markets accounted for nearly one-third of global mergers and acquisitions in the first half of 2010, according to an analysis by Thomson Reuters. M&A activity involving companies based in emerging markets totaled $346 billion in the first...
Federal Reserve Adopts Transparent Operating Policy
United StatesFed watchers around the world were surprised in August when the Federal Open Market Committee announced a decision to target the Federal Reserve's balance sheet, rather than reserves or interese rates, as its key lever of monetary policy....
Former Foes Tighten Ties
VietnamVietnam and the United States participated in joint military exercises last month for the first time since the war between the two countries ended 35 years ago. The military training session is only one of several signs of warming ties between...
Getting Smart
EgyptEgypt is turning to information technology to create a knowledge-based economy.Near the pyramids at Giza, on the outskirts of Cairo, Egypt's first technology park is changing the desert landscape. A total of 43 modern buildings have been constructed...
High-Yield Debt Has Record Half
The volume of global corporate high-yield debt issues in the first half of 2010 set an all-time record for any sixmonth period, according to Thomson Reuters. The total of $130.7 billion was more than double the level of the same period a year earlier.Although...
HP's Hurd Bails out with A Golden Parachute
United StatesMark Hurd received a $20 million Golden Hello when he joined as chief executive of Hewlett-Packard in 2005, and a Golden Handshake that could be worth as much as $40 million when he resigned on August 6, following an investigation into a...
India
In the face of rising inflation and GDP growth, India's central bank, the Reserve Bank of India surprised observers with a higher-than-expected interest rate hike. The RBI upped its forecast for the country's GDP growth from 8.0% to 8.5% for the 2010-2011...
Insights from Banking Simple
"A simpler way of banking. We treat with you respect. No extraneous features. No hidden fees." For the uninitiated, this is the mantra of BankSimple, a Brooklyn-based startup which has positioned itself as a consumer-friendly alternative to traditional...
Kenya in Drive to Become Green Power Pioneer
KenyaKenya's government is looking for a strategic investor to buy 19% of the country's principal electricity supplier, the Kenya Electricity Generating Company (KenGen). Eddy Njoroge, KenGen's managing director, says the anticipated proceeds from the...
Looking to the Long Term
After many months of prevarication, ferocious negotiation and somewhat disappointing horse trading, the shape of the new regulatory environments in the US, Europe and the UK is becoming clear. The new rules address some key concerns - particularly related...
Lower Volatility Spurs Carry Trade and Depresses Dollar
The Federal Reserve is likely to keep US interest rates at record lows well into next year, enabling global investors to borrow dollars for a song and invest in higher-yielding assets in countries such as Australia and South Africa. The dollar is increasingly...
Middle East
Companies based in Saudi Arabia led initial public offerings in the Middle East in the first half of 2010, but the United Arab Emirates is expected to take the lead in the second half. The biggest IPO in the region in the first six months of this year...
Play On
BrazilBrazil is betting that its huge investment in infrastructure projects for the 2014 Soccer World Cup and the 2016 Olympics will provide long-term benefits to the country.Just six weeks after PJo de Janeiro won the bid to host the 2016 Olympic Games,...
Risks and Rewards
Having survived one of the worst recessions on record, companies understand better than ever that treasury management is important for improved efficiency, whether through tightening their accounts- receivable or accounts-payable processes to unlock...
Running for Cover
Environmental Risk InsuranceDemand for environmental and climate-change-related insurance is set to rise sharply.Along with more government regulations meant to rein in multinationals' damage to the environment, the heightened public awareness of industry's...
Russia
In response to a severe drought that could destroy as much as a third of Russia's grain harvest, and following a spike in grain prices in July, Russia's prime minister Vladimir Putin in early August announced a ban on grain exports through the end of...
Shared Value
There are many options for how to set up and roll out a shared service center, providing an approach for every budget and corporate structure.As the recession thaws and purse strings again begin to open for slightly larger-scale projects with a longer-term...
Shine A Little Light on Me
Equity DerivativesNew regulation should improve transparency in the increasingly popular equity derivatives market.The financial reforms signed into law by President Obama on July 21 will substantially change the way many equity derivatives are traded...
Technology Helps Banks Stay Ahead
Best Internet Banks Part 1In the first of a two-part series, Global Finance identifies the best online corporate and consumer banks by country and regionally by product or service category.The past few years have certainly been volatile times in the...
The Price of Stability
Financial RegulationBusinesses can expect to see their top-fine costs fise under new banking regulations in the US and Europe. Will it be money well spent?If in pre-credit-crunch days policymakers uttered the phrase "financial regulation," it was as...
Top Firms Spurn Bank Finance
EuropeInvestment-grade companies are shunning bank lending and opting instead for the bond markets in order to raise financing, a report by Fitch Ratings says. Based on a survey of approximately 100 companies representing total funding volume of euro930...
Trading Up
Asia's ExportersAsia's exporters are all benefiting as China's manufacturers begin to move up the value chain.The Asian economic miracle is hardly a new story, but every once in a while, a new actor steps into center stage. In the post- World War II...
Turbulence Indices Provide Risk Management Insight
GlobalStress testing risk models and investment portfolios for extreme market events has certainly come into vogue in the wake of the financial crisis. Banks' risk models were criticized for focusing too much on particular risk calculations and using...
Who's Who
Who's Who in Treasury and Cash Management By Vanessa DruckerDonald E. BerkSenior Vice President, Corporate & Institutional ServicesNorthern TrustAs director of product and process management for enterprise banking services at The Northern Trust Company...