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. 8, September

A Safe Haven
Global custodians are experiencing strong growth and increasingly complex demands from their clients.Propelled by the growth in increasingly sophisticated financial instruments and the emergence of new markets and clients, the universe of financial assets...
Banks Seek Growth after Profits Slide
BRAZILAfter several years of steady profit growth, Brazil's banking sector reported a slowdown m Min second-quarter 2008. Bradesco, Brazil's largest non-state bank by assets, posted a 13% drop in secondquarter profits to $1.28 billion, the sector's largest...
Best Investment Banks 2008
THe past 12 months have been some of the most difficult ever for investment banks, but many institutions continue to provide outstanding services to their clients.Investment banks are still writing off big losses, raising fresh capital and bracing for...
Calderón Aide Takes Top Economy Job
MEXICOFaced with the fallout from the US economic slowdown, Mexico's president, Felipe Calderon, appointed former businessman Gerardo Ruiz to the country's top economic post. The new economy minister is not only a 43-year-old industrial engineer and...
China in Olympian Bid for Global Respect
CHINAChina opened the 29th Olympic Summer Games in Beijing on August 8 with a ceremony incorporating 15,000 performers and 29,000 fireworks shells and attended by US president George Bush, French president Nicolas Sarkozy and other world leaders. China...
Communist Parties Give Economic Reforms a Boost
INDIAIndia's ruling coalition, the United Progressive Alliance (UPA) led by Manmohan Singh, survived a vote of no confidence in late July after the three communist parties in parliament said their 61 members would no longer support the government. The...
Delayed Reaction
They dodged the early fallout from the credit crunch, but Central and Eastern Europe's economies are facing growing challenges.Next year Europe's post-communist countries commemorate 20 years since the fall of the Berlin Wall. They should be in a celebratory...
Dow Breaks the Mold for Deal Financing
Midland, Michigan-based Dow Chemical forged an unusual alliance of bankers and investors to finance its $18.6 billion acquisition of specialty-chemicals maker Rohm and Haas. Warren BuiFett's Berkshire Hathaway and the Kuwait Investment Authority, a sovereign...
Europe's Ipo Market Slumps
EUROPEWith equity capital markets bankers in the Europe, Middle East and Africa (EMEA) market focused on massive rights issues to recapitalize their peers in recent months, it has been easy to forget that IPOs, the usual mainstay of the equity new-issue...
Financiers Expect More Banks to Fail
GLOBALAlmost a year Into the credit crunch, it appears that there are still widespread market fears of another financial firm going under. And it seems that the next six months are crucial in terms of whether those fears will become reality. A study...
FX Update
Yen Skids On High Oil PricesAs the price of oil settled above USD 100 back in March, the JPY's role as vehicle in the global carry trade began to crumble. It seems that with inflationary concerns becoming more ingrained, investors began to target those...
Ge and Abu Dhabi Form $8 Billion Joint Venture
MIDDLE EASTGeneral Electric of the United States has formed an $8 billion joint venture with Mubadala Development, a sovereign wealth fund based in Abu Dhabi, to invest in emerging markets in the region and in Africa.The fund will focus Initially on...
Global IPO Activity Falters, with Fewer, but Larger, Issues Focused on Emerging Markets
CORPORATE FINANCING FOCUSStrange as it may seem, there have been bigger initial public offerings since the credit crunch hit, but fewer of them. Global IPO activity reached an all-time high of $287 billion in proceeds in 2007 but has slowed considerably...
Global Slowdown Could Benefit Dollar
The dollar made strong and broad gains last month as commodity prices declined and economic data from Europe and Japan came in weaker than expected. Early signs of a global slowdown in real economic activity and falling oil prices could indicate that...
Growth Story
Despite the drumbeat of headlines about the troubled banking and finance industries, one area is coming up green.With global financial markets languishing in the dolI drums, "green financing" is emerging as a key lever to stimulate a sustainable global...
Hunt Continues for Way to End Credit Crunch
More than a year after the credit crunch burst onto the global stage, regulators and banks are still searching for a way to end the crisis, which appears to be morphing into a chronic condition.The Counterparty Risk Management Policy Group III, led by...
Investment Banks Urged to Simplify Financial Products
UNITED KINGDOMIn light of the record £5.6 million ($10.5 million) fine the UK's Financial Services Authority (FSA) imposed on the UK operations of Credit Suisse's investment bank recently, observers have warned that banks need to take regulatory penalties...
Island Life
Recent changes are helping the venerable finance centers of the Caribbean stave off increasinly intense international competition.Pardy in response to the US-led assault on their opaque banking systems and propensity for secrecy, many of the Caribbean...
Managing Liquidity on a Global Scale
Rapid growth in global trade and advances in banking technology are driving an increasingly centralized view of liquidity management. With so much now possible, corporate treasurers have never been in a better position to add value to their business.The...
Managing the Financial Supply Chain
Delivering Improved Efficiency With Electronic PayablesGlobal trade has quite literally exploded. Trade volumes have doubled in the past 10 years, quadrupling in the past 20. As the number of buyers and suppliers participating in cross-border trade continues...
Paper Cuts
E-invoicing is enjoying a renaissance as customers recognize its financial advantages.At the height of the dot-corn boom, anyone attending the multitude of technology summits touting the next big "disruptive technology" would have heard the mantra that...
Proving Ground
How banks treat their customers through the current hard times will define their relationships for years to come.A wave of anxiety is sweeping through the corporate world as businesses re-evaluate their bank relationships. Those companies are seeking...
Putin's Comments Unnerve Investors
RUSSIAHeadline risk in Russia returned with a vengeance over the summer as global oil major BP struggled with its Russian partners over control of its TNK-BP oil company joint venture. After an extended battle, the head of the company, a UK citizen,...
Rating Downgrade Bucks Local Trend
ARGENTINAWhile Peru and Brazil crossed the investmentgrade threshold this year, Argentina is moving in the opposite direction. Ratings agency Standard & Poor's downgraded Argentina's foreign and local long-term ratings to B, from B+, in August. This...
Return of the Old World Order
Barely more than a year ago, when the world was still awash with cheap money, it seemed as if globalization had hit a sweet spot. The financial world was abuzz with talk that the emerging markets had finally decoupled from the West and that, even if...
Risky Business
In recent years, political risks facing multinationals have grown more significant. Corporations are far from blameless in creating that risk, though.With oil prices continuing to defy gravity and tensions growing between oil-exporting countries and...
Russia Gambit Sends Clear Message to West
GEORGIAFew in the oil industry doubt that the RussiaGeorgia conflict is as much about tightening the squeeze on oil and gas supply to the West as it is about protecting minorities in South Ossetia and Abkazia, or about Russia's desire to head off Georgia...
Sustainable Progress
Corporate comprehension of the benefits of going green is far more advanced in Europe than in the US. But America's businesses could easily catch up.More than 30 years ago, engineers in the Mohave Desert |in California pioneered the earliest and largest...
The Bigger Picture
Corporate treasurers are fully reviewing all of their liquidity structures and relationships to ensure maximum efficiency, best access to credit and best returns on excess cash.With credit being ever harder to find, liquidity management has become a...
The Cutting-Edge Treasurer
With globalization becoming increasingly important and pervasive, companies are expanding into new geographies, but unfamiliar territory inevitably carries risks, and treasury shoulders the burden of understanding and mitigating those risks. Today's...
Treasury & Cash Management Guide 2008
The old adage, "Cash is king," has rarely been more true. As banks reassess their credit relationships with corporate customers, with a view to maintaining those relationships that are more profitable and less risky, corporates, particularly those in...
Us Trade Supremo Says Export Gains Depend on Congress
UNITED STATESFollowing the collapse of the Doha Round of world trade talks this summer, the United States is pinning its hopes on new bilateral trade agreements to take up the slack. Its point person is Susan Schwab, the US trade representative, who...
"Who's Who" in Treasury and Cash Management
ROBERT ALLENGroup TreasurerBritish American TobaccoRobert Allen, appointed group treasurer effective this past June, replaces David Swann, who has now retired. Based in London, Alien works with a team of 20 professionals across the BAT group on all aspects...
Zimbabwe's Zero-Sum Game
AFRICAWith hyperinflation eroding the nation's economy, Zimbabwe's government is taking desperate measures. It lopped off 10 zeros from the Zimbabwe dollar, as inflation is now running at 2.2 million percent per year. The move, which went into effect...