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. 25, No. 5, May

Africa
Ethiopia Powers Up Generation PlansEthiopia in April launched a $4.7 billion project to build the Grand Millennium Dam, which will become Africa's largest hydropower plant when it opens in four years. Situated on the Nile River, some 40 kilometers from...
Asia
Credit Quality May Hinder Expansion PlansWhile most of emerging Asia's banks came out of the 2008 financial crisis with strong capital ratios and creditworthiness, the crisis had more of a negative impact on banks in some of the central Asian countries...
Assessing True Value
BNY Mellon's new currency analysis tool provides a fresh perspective-and much-needed clarity-in the complex world of foreign exchange.One of the greatest chaUenges in foreign exchange markets is to understand the longterm influences on a currency's value....
Bernanke Heralds A New Era of Fed Openness
United StatesWith the US economy still in recovery monetary policy decisions of the Federal Reserve can have a major impact on which way the markets move. But now, perhaps following the lead of its European cousins, the Fed appears set to release more...
Boehner Blinks in Budget Showdown with Obama
United StatesSpeaker of the US House of Representatives John Boehner told his fellow Republicans to prepare for a government shutdown last month, as the standoff with Democrats on the budget came down to the wire. President Obama met repeatedly with...
Brazil
Brazil Ups Taxes On Sugar To Boost Ethanol OutputThe US Export-Import Bank announced a $3 billion credit line for Brazil to purchase goods and services from US providers. The announcement came shortly after President Barack Obama's visit to Brazil in...
China
Beijing Tightens Trade Ties With BrazilChina and Brazil agreed to strengthen cooperation in trade and development in April in a joint statement released in Beijing by Chinese president Hu Jintao and recendy elected Brazilian president Duma Rousseff....
China and Russia to Lead Capital Raising Using Depositary Receipts
Companies based in Russia and China are extremely interested in listing overseas and probably will be the biggest issuers of depositary receipts to tap into global equity markets this year, bankers say. DR capital issues from India wiU be smaUer but...
Dollar Weakens as Eurozone Rates Are First to Rise
Differing monetary policy reactions to the rise in oil prices are driving currency values at the moment, while gains in the Japanese yen have been capped by intervention by the Group of 7 industrialized countries. The dollar will continue to weaken,...
EBRD Extends Its Reach
Later this month, government officials, business executives and NGOs from across the CEE regionwhich is now often considered to extend beyond Central and Eastern Europe to encompass Russia, the Caucasus and Central Asia- will assemble in Kazakhstan's...
Enjoying the Good Times
TurkeyTurkey is enjoying unprecedented economic stability and growth. Its biggest challenge is to maintain its balance.These days in most developed economies, the release of GDP figures is typically greeted with soul-searching as commentators struggle...
FSA Plans to Go out with A Bang
United KingdomBefore the 2008 financial crisis ripped through the world's markets, the UK's Financial Services Authority was renowned for its light-touch approach to regulation. In the aftermath of the crisis, that same light touch was blamed for enabling...
Global Map of Emerging Market Hot Spots
In the- aftermath of the global financial crisis, many emerging markets are experiencing an unusual divergence in their fortunes. Even as their economies rebounded sharply from the contagion-induced contractions they saw in 2009, foreign direct investment...
Going It Alone
Economic IndependenceEurope's continuing sovereign debt crisis has left many non-members of the eurozone relishing their monetary independence.The eurozone debt crisis has taken a toll on financial markets worldwide, rattling investors' confidence with...
Growth beyond Borders
Emerging markets* increasingly dominate global trade flows and drive worldwide economic growth. Investment Research & Analyst's Global Growth Generators report published in February shows that by 2030, emerging markets will represent 70% of the world's...
Growth Returns but Questions Linger for Banks
The World's Best Banks 2011Banking systems in Asia and Latin America were among the first to recover from the global financial crisis and recession. Their resilience is owing in part to the quick and massive application of economic stimulus in China,...
Growth Trajectories
Here are four scenarios for the long-term economic prospects of Japan in the wake of the Tohoku earthquake, ranging from optimistic to pessimistic.Best-caseReturn to growth- onequarter contractionThe damage caused by the earthquake, tsunami and radioactive...
High-Yield Debt Issues Break Record
Corporations worldwide issued more high-yield debt in the first quarter of this year than in any opening quarter since records began in 1980, according to Thomson Reuters. The $100.4 billion total for the first three months of 2011 was second only to...
India
Tata Steel Forges Ahead With Hybrid Securities IssueTata Steel, India's third largest steel producer by market value and among the top 10 steel companies in world by production capacity, has become the first Indian company outside of the banking sector...
Leading A Growing Market
Belagroprombank: Result-oriented and open to cooperation.JSC Belagroprombank started to operate as an independent credit and financial institution in 1991, shortly after Belarus s declaration of sovereignty and independence and during the early stages...
M&A Deals Accelerated in First Quarter
Mergers and acquisitions rebounded in 2010, and the momentum appears to be carrying over into this year. The first three months of 2011 constituted the strongest quarter for mergers and acquisitions globally since the second quarter of 2008, according...
Medvedev Launches Drive to Improve Investment Climate
RussiaThe much-maligned Russian investment environment may actually be on the verge of real improvement- if president Dmitry Medvedev has his way. In late March, during a speech at Magnitogorsk, Medvedev announced a major initiative to reform the country's...
Middle East
Dubai's Strategic Location Helps It Pull Out Of SlumpDubai's position as a strategic trading hub has towed it out of its economic slump, which was triggered by the decline of its property sector. Dubai's gross domestic product rose 2.2% in real terms...
New Leaders Face Tricky Economic Balancing Act
CanadaAs Canada heads early this month into its fourth federal election in seven years, policymakers are facing serious questions over the prospects for the country's economy. The Bank of Canada expects GDP growth to hit 2.9% in 2011 and 2.6% in 2012,...
Pause for Thought
China in AfricaRecent popular uprisings in North Africa and beyond may be causing China to slow its headlong rush into the continent.Over the past decade, China has become a key source of investment, aid and trade for Africa, a continent that was once...
Performance, Profitability and Prestige
Industrial and Commercial Bank of China (ICBC) had another record year in 2010, with improved profitability, enhanced risk management and internal control, and a focus on sensible growth.With an unwavering focus on careful business management, Industrial...
Portugal's Leaders Left with Few Option
PortugalSovereign debt in the eurozone is back in the headlines again, with Portugal going cap in hand to the European Union and asking for an emergency bailout. Having already provided financial assistance to member states Greece and Ireland, the EU...
Resurrecting East Asia's Economic Miracle
JapanAlthough it inflicted unspeakable horrors upon an aging, hard-working population, Japan's recent earthquake is breathing new life into a deflationary economy.The symbolism was lost on no one when the Japanese started using the terse shorthand "3/11"...
Russia
Capital Flees In Fear Of Political UncertaintyThe specter of presidential elections in March 2012 has in recent months resulted in a sharp increase in capital outflows, which totaled $21 billion in the first quarter, following total outflows of $35 billion...
Santos Raises Colombia's Profile
ColombiaLess than a year after being sworn in, Colombia's president Juan Manuel Santos is helping put his country back on the radar for investors scared away by guerrilla rebels and drug lords. In March, Standard & Poor's restored Colombia's investment-grade...
Strength in Adversity
Despite uncertain economic conditions worldwide, China Construction Bank once again achieved strong profits and improved capital performance thanks to its prudent management style and comprehensive growth strategy.In a complicated and volatile domestic...
Tackling Protectionism Issues in Cross-Border M&A
Protectionist issues in cross-border M&A seem to be morphing into concerns about national security, according to a panel of three distinguished M&A professionals who participated in an interactive Hve video webcast, Cross Border M&A:The RisingTide...
Technology Enables Feature-Driven Internet Banking
Online banking was long considered to be a ground breaking offering that would not only enhance the banks' capabilities in terms of services offered on the go but also as a possible change in operational and strategic business models. Now almost all...
Trade Flows in Emerging Markets: A Grand Force in the Global Economy
As the dust continues to settle following one of the worst economic slumps since World War II, we find ourselves in an environment where one thing is crystal clear: Emerging markets are reshaping the face of global trade like never before.The signs are...
Tremonti Swath Away Accusations of Protectionism
ItalyWhen the dairy giant Parmalat, a household name in more than 30 countries, collapsed in 2003 with a $20 billion hole in its accounts, Italian finance minister Giulio Tremonti fittingly dubbed the scandal "Europe's Enron." After eight years and a...
Tsunami and Turnaround
In the past few weeks we all focused on Japan, shared its pain and its terrible losses. Many wondered about the risks that the crises in that country and in the Middle East might inflict on the global economy. At Global Finance, we decided to investigate...
Turkey's Banks
Amid an encouraging economic environment, Turkey's banks, which now number 49 against 86 before the 2001 crisis forced consolidation, have been doing well. Total financial sector assets stood at an estimated $700 billion in June 2010, according to the...
Vietnam Reshapes Economic Strategy
VietnamVietnam's policymakers are struggling to rein in inflation after the consumer price index (CPI) rose by a two-year high of 13.9% year-on-year in March. The country performed well throughout the global financial crisis, posting GDP growth rates...
Where East Meets West
KazakhstanKazakhstan's bold recovery plan and its efforts to stabilize its financial sector are paying off as the country establishes itself as a regional hub.If any country fits the broad concept of Eurasia, it is Kazakhstan. Lying at the very heart...