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. 11, December

2011: The Year of the Customer Experience
By AshokVemuri, Member of the Executive Council and Head of Americas, Infosys TechnologiesPranav Mistry, a Ph. D student at MIT's Media Lab and a man some regard as one of the top 10 inventors in the world, recently spoke at an Infosys-hosted conference....
Africa
Uganda moved closer to becoming an oil producer after UK-based Tullow Oil reached an agreement with the government over a tax dispute. Tullow, which paid $1 .5 billion in July to acquire Heritage Oil's concessions in the Lake Albert basin, saw the deal...
A New Status Quo
The landscape of leading derivatives providers is being reshaped largely by a preference for low commissions and a newfound fear of having American banks as counterparties.It would not take a forensic accountant to trace the origins of the global financial...
Banks Bounce Back
When the credit crunch was at its peak, banks in Central and Eastern Europe (CEE) were beset by fear: that Western European parent banks, which control some 80% of the bank sector in CEE, would pull the plug on the region; that local banks would collapse...
Basel III Takes A Beating over Trade Finance Treatment
GlobalWhen the new Basel III capital adequacy proposals were announced back in the summer, some members of the banking community breathed a sigh of relief as the timeline for their introduction was relaxed, with the deadline for the new "core"Tier 1...
Burma's Elections Raise More Questions Than They Answer
BurmaBurma held its first election in two decades in early November. The winners of the election will take control of the government from the military, which has ruled the country for 48 years. The initial results suggested there would be litde change...
China
China's trade surplus rose to $27.15 billion in October, its second highest reading of the year, the customs office reported last month. The surplus represents a 60% month-on-month increase and comes despite an almost 3% appreciation of the Chinese yuan...
China Construction Bank: A Big Stride Forward
In the five years since it was listed in Hong Kong, China Construction Bank has made remarkable progress across all its operations.On 27 October 2005, China Construction Bank ("CCB" or the "Bank") listed in Hong Kong - a first among China's four major...
Federal Reserve Keeps Bond Rally Alive with $600 Billion of New Purchases
Corporate Finance FocusThe bond market rally was given a new lease on life last month when the Federal Reserve announced it would buy $600 billion of US treasuries - and maybe more, if necessary - by the middle of next year. While the announcement was...
Fed Pulls Rug out from under Dollar, Fueling Carry Trade
Although the Federal Reserve s main focus is not the dollar, which is the purview of the US Treasury Department, it had to know that its $600 billion assetpurchase plan would grease the greenback's skids. The Fed also had to know that much of the new...
Former Yukos Chief Faces More Time in Jail
RussiaAfter months of wrangling, the verdict on the second trial of Mikhail Khodorkovsky, the former head of Russia's Yukos Oil Company, is due in mid-December. The ex-tycoon will probably be sentenced to six years in a Siberian prison cell, on top of...
G20's Mantra Papers over Big Differences
GlobalAt last month's Seoul summit of the G20- or the G19+1, as one senior Asian central bank official recently dubbed itUS was isolated from the other world economic powers by the Federal Reserve's decision to print hundreds of billions of dollars to...
Global IPO Pipeline Filling Up Quickly
Companies based in China and India dominated global initial public offerings in the first three quarters of 2010, and now the US is getting ready to join the new-equity rush. The IPO market in the US is positioned for a very active fourth quarter, with...
Going Mobile
In the second of a two-part series, Global Finance identifies the best corporate/institutional and consumer Internet banks globally and in six regions, plus an overall winner. We also name global winners in six corporate/institutional subcategories and...
Hard Times
A sustainable recovery remains as elusive as ever for many of the countries of Central and Eastern Europe.Before the fall of the Berlin Wall and the demise of the Soviet Union, investors saw the communist bloc as an entity, ignoring the countries' significant...
India
Coal India, the world s largest coal mining company and one of the Indian governments mega disinvestments, became the largest LPO ever in India and one of its most successful. The stock ended the first day of trading on November 4 with a gain of 32%...
Infrastructure Investment Sustains Growth
High oil prices are keeping government spending flowing strongly into major projects, while debt-laden Dubai has taken a turn for the better.Dubai's world-class infrastructure gave the emirate's creditors faith that last year's debt crisis was merely...
Innovation in Emerging Markets
In today's global business environment, multinational companies are faced with complex business growth challenges which lead to new strategies pertaining to corporate resources and capital allocation. A critical variable in companies' analyses is the...
In the Driver's Seat
Emerging AsiS has consolidated its role asmtfli6st powerful engine of global economic recovery-but threats to the region's growing prosperity remain.The first thing British prime minister David Cameron did after he was elected this summer was to travel...
Living on the Edge
Southern Europe's sovereign debt crisis may appear to have been resolved, but severe trials still He ahead - particularly for Greece.The travails of Southern Europe - in particular Spain, Portugal and Greece - continue to dominate the concerns of Europe's...
Mutual Benefits
Latin America is enjoying growing prosperity as the region develops ever-stronger economic ties with Asia.When Chinese President Hu Jintao took his first tour of Latin America in 2004, he left a whirlwind of multibillion-dollar investment pledges, trade...
Potash Slapdown Raises Specter of Canadian Protectionism
CanadaWhen Canada's government blocked Australian mining firm BHP Billiton's $39 billion bid for fertilizer giant Potash of Saskatchewan, it did more than put a dent in the Canadian company's share price: It also rattled foreign investors who may have...
Profit-Sharing Plan Raises Business' Hackles
ArgentinaA controversial profit-sharing bill submitted to Congress by Argentina's ruling coalition is becoming a proxy fight between the nation's labor and business sectors ahead of next October's presidential elections. Labor leaders say the bill enforces...
QE2 Boosts Cross-Border M&A Deals
Growing risk appetite triggered a sudden burst or cross-border mergers and acquisitions in October, as investors prepared for a second round of quantitative easing, or QE2, from the Federal Reserve. The number of announced cross-border McVA deals surged,...
Questionable Election Elicits Quiet Cheer from Investors
AzerbaijanAzerbaijan's parliamentary elections in early November ended in controversy, with critics claiming the opposition parties were prevented from being able to properly challenge Yeni Azerbaijan, the party of the authoritarian president llham Aliyev....
Rising Stars
After an impressive 2010, the coming year looks likely to bring more good news for most emerging markets.Emerging markets are giving capitai controls a good name. Long derided by economists for interfering with free markets, controls on "hot money" inflows...
Russia
Sergei Sobyanin, the former chief of staff of prime minister Vladimir Putin, was named mayor of Moscow late in October. He succeeds Yuri Luzhkov, who was ousted in September after an intense power struggle that tested the limits of president Dmitry Medvedev's...
Sea Change
Africa's economic prospects have never been better.Fifty years after British prime minister Harold Macmillan spoke of a wind of change sweeping across the African continent, the sort of development he envisaged may finally be arriving. As nation after...
The Great Divide
As companies thrive whife" countries struggle, a split seems to be emerging between macroeconomic and corporate performance.Observers of the global economy could be forgiven for being a little confused of late. Macroeconomic news from much of the developed...
The Rise of Integrated Expense Management
Businesses discover the benefits of linking corporate card programs with other parts of the physical and financial supply chain.As automated expense management solutions become ever more integrated with other systems - both from card providers and within...
Will History Repeat Itself?
While the markets' attention in eariy November was focused on US midterm elections, quantitative easing and non-farm payrolls, a sovereign debt problem was once again surfacing in Europe. Ireland's creditdefault swaps rose for nine consecutive days and...
World Bank Rolls out Plan to Value the Natural Environment
GlobalIn an attempt to help countries calculate the true value of their natural assets, the World Bank has launched a project that will create an ecosystem valuation model. Unveiling the project. World Bank president Robert Zoellick said the aim is "to...