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. 19, No. 3, March

Active Currency Management Can Turn Risk Exposure into Source of Potential Returns
Multinational industrial companies trading goods in global markets or building new plants overseas routinely take on exposure to foreign currency fluctuations as part of doing business, and they often consider hedging all or part of their exposure.When...
Chávez Reveals First Stage of His Grand Plan
VENEZUELAVenezuelan President Hugo Chávez has few friends left these days, as his moves to silence opponents have raised eyebrows in the international community. Yet, with Venezuela still a leading oil producer, Chávez is using the oil card in his favor.When...
Donaldson Tackles Costs of New Rules
UNITED STATESWilliam H. Donaldson, chairman of the Securities and Exchange Commission, says he wants to do a cost-benefit analysis of the rules and regulations the SEC writes to implement the Sarbanes-Oxley (Sarbox) reforms. Corporate executives are...
Economy Continues Frantic Growth While Inflation Eases
CHINAThe Bank of China's plans to seek an overseas listing later this year suffered a setback with the revelation that two officials at a northeastern branch had absconded with 1 billion yuan of client money. The incident again calls into question the...
Europe Switches to US-Style Disclosure Rules
Greater disclosure prompted by a new EU regulation should lower investors' risk and heighten their confidence.The European Commission has, after several years of negotiations and various incarnations, finally adopted a directive on minimum transparency...
Exchange Change
Tension is running high in London's financial district as two rival European exchanges make a play for the venerable London Stock Exchange.Given the publicity surrounding Deutsche Börse's £1.35 billion bid for the London Stock Exchange (LSE), one could...
Growth-Hungry Investors Chase the Wrong Markets
GLOBALInvestors looking for high stock market returns in rapidly growing economies such as China and India are likely to be disappointed, a new study has found. Based on equity return and dividend growth data from 17 markets spanning 105 years from 1900...
Investors Brace Themselves for A Bumpy Ride
Russia may have been promoted to investment grade, but its political and economic turbulence show no signs of abating.Until looked like Russia was going looked like Russia was going to get a lot less exciting. Russian President Vladimir Putin seemed...
Life beyond the Oil Rush
Competition between Asia's new economic superpowers, China and India, for energy resources has already helped push up oil prices. We look into where it could all end.There are any number of reasons why the price of oil today is near double what it was...
New Year Kicks off with Rash of Deals
EUROPEEquity capital markets activity in Europe is off to a record start this year, according to figures from information provider Dealogic. More was raised this January through IPOs, secondary offers and equity-linked deals than in any previous January.A...
Outsourcing Myths Dispelled
GLOBALOutsourcing has gone in and out of fashion, with various studies debating the pros and cons of farming out business processes to a third-party provider. Yet a study commissioned by Accenture dispels some commonly held beliefs among finance directors...
Pension Reforms in India Open a Window of Opportunity
INDIAIn a major relaxation of the rules covering the pension fund management industry in India, the government went against all expectations and allowed non-government pension funds to invest in the Indian equity markets. Private sector pension funds...
Pushing Paper Aside
ELECTRONIC PAYMENTSDespite the long-acknowledged advantages of electronic processing of invoices and payments, companies have been slow to let go of paper. The Web is changing all that.For the past 20 years, technology vendors have tempted companies...
Record Russian IPO Gets London Listing
Sistema, a Russian conglomerate controlled by billionaire Vladimir Yevtushenkov, raised $1.35 billion last month in the form of global depositary receipts that are traded on the London Stock Exchange.The sale, which was handled by Morgan Stanley and...
Russia Shuts out Investors
RUSSIAIn one of the most explicit demonstrations of the increasing nationalism of the Kremlin of Vladimir Putin, in mid-February Russia's ministry for natural resources said that companies with majority foreign ownership would be barred from bidding...
Satellite Operator Issues $2.55 Billion of Notes
In the biggest offering of high-yield debt in the US market since July 2003, Intelsat Bermuda sold $2.55 billion of notes in a three-part private placement.The global satellite operator is being taken over in a $3 billion leveraged buyout by a group...
SEC Offers Too Little, Too Late
It is refreshing to hear that William Donaldson, the chairman of the securities and Exchange Commission, wants to reduce the cost burden that Sarbanes-Oxley imposes on businesses (see Newsmakers, page 3). Unfortunately, as is so often the case when the...
Southern Neighbors Offer Us a Model for Social Security Reform
LATIN AMERICAUS President George W. Bush may have only recently shunted social security reform to the top of his to-do list but in Latin America the issue has been on the agenda since the 1980s, when Chile moved to put pension and social security benefits...
Wave of Big Mergers Keeps Going and Going
The surge in merger activity late last year continued in early 2005, with a string of large takeovers in the US, including Procter & Gambles $57.5 billion purchase of Gillette, which will expand what is already the world's largest consumer-products...
Where the Buck Stops
FINANCIAL SERVICESThe pressure on financial services companies is growing as regulators around the world tighten the rules.In a world where corporate governance regulations are becoming increasingly complex and demanding, financial services companies...
World's Best Treasury Providers
TREASURY/CASH MANAGEMENTGlobal Finance selects the best treasury and cash management banks, globally and by region, and the best providers of treasury management systems and services by category.In a period of relatively low interest rates, treasury...