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. 4, April

A Changing Landscape
Sub-custodians are finding new ways to serve their clients as the shape of the post-crisis landscape becomes clearer.Global Finance: What are the latest technology developments we should be aware of, and what changes will technology bring in the near...
A Force to Be Reckoned With
The economically vibrant nations of Southeast Asia are forging closer links-and creating a regional powerhouse in the process.While the world has focused its attention on China and India's stunning economic growth, the 10 countries of the Association...
A Rapid Recovery
Demographics and hydrocarbons make the Middle East a dynamic region that is rapidly advancing, despite the debt overhang in Dubai. A young and fast-growing population is demanding jobs, and regional governments are responding with a massive infrastructure-spending...
Bankers Survey A Changed Landscape
Banks across the region learned many painful lessons during the crisis but have emerged stronger than ever. By Gordon PlattFinancial institutions across the Middle East are carefully monitoring their loan portfolios after posting big increases in loss...
Bankrupt Mall Operator Weighs Offers
Simon Property Group, the largest US mall operator, is seeking to take over rival General Growth Properties and take it out of bankruptcy. The batde of the mall operators has taken a new twist, however, with General Growth announcing a competing plan...
Brazil
Brazil's central bank moved to tighten monetary policy by raising bank reserve requirements on term deposits from 13% to 15% as of April 9. The central bank had reduced reserve requirements to free up some $55 billion in liquidity and boost credit availability....
BRIC Countries to Lead Capital Raisings Using Depositary Receipts in 2010
Corporate Finance FocusIf central banks and government agencies around the world can exit accommodative monetary and fiscal policies smoothly, 2010 could be a good year for capital raising using depositary receipts, market participants say."The windows...
China
China's top legislator has pledged to improve social services and better balance rural and urban political representation. Wu Bangguo, chairman of the Standing Committee of the NPC, said that the country's leaders would soon pass a draft social security...
Convergence or Conversion?
Multinational corporations face a less confusing future as US and international groups work toward accounting standards convergence.After 15 long months, the US Securities and Exchange Commission (SEC) in February finally tackled the issue of US accounting...
Dollar's Rise Slows as Debt Panic in Europe Eases
The ability of Greece to raise significant funds in the bond market helped to calm investors' nerves over the sovereign debt crisis in Europe last month, providing some support for the euro and slowing the dollars rally. The dollar's future course will...
Emerging Market Companies Snap Up Cheap Assets Overseas
GlobalCompanies in high-growth regions are taking advantage of their relative strength to pick up good value assets in harder-hit developed markets, according to new research by KPMG.KPMG's latest Emerging Markets International Acquisition Tracker (EMIAT)...
Europe Considers Emergency Aid Fund
EuropeGrowing concern over the indebtedness and burgeoning fiscal deficits of some European countries has led Germany's finance minister, Wolfgang Schäuble, to propose the establishment of a European Monetary Fund, or EMF.The model would be the IMF but...
Export Growth Negates Taiwan Rescue Plan
TaiwanTaiwan's government dropped plans to restructure its dynamic random access memory (DRAM) industry last month after export growth and rising prices helped several of the island's DRAM producers to post their first quarterly profits in years. The...
Global & Sub-Custodians
Global Finance presents its annual sponsored guide to the leading providers in the global and sub-custody market.Global CustodiansBNP Partbas Securities ServicesCustody Assets:2009: $5.8 trillion2008: $4.7 trillionRatings: Moody's Aa2, S&P AA, Fitch...
High-Yield Default Rate Coming Down
The high-yield bond spread over US treasury securities is narrowing in anticipation of a steep decline in the default rate for below-investment-grade companies.Once the corporate sector is capable of sustaining economic growth, the high-yield bond spread...
How Safe Is Your Safety Net?
InsurersThe fallout from the financial crisis is prompting risk managers to take a cold, hard look at their insurance providers. Many do not like what they see.Don't let that financial strength rating slip below an A- if you're a global insurance carrier...
India
As the Indian wireless markets become ever more competitive, local companies are looking overseas for potential growth. South Asia's largest wireless earner, Bharti Airtel, for example, is seeking to acquire the African assets (except Morocco and Sudan)...
IT Optimization: Providing Clarity on A Familiar Phrase
Optimization. You've heard the term bandied about liberally over the last two years. Vendors, the media, and analysts alike have lumped IT optimization with "transformation" and "business-IT alignment" to create an IT buzz-word troika. But what does...
Lehman Report Boosts Case for Global Banking Reform
United StatesTheValukas Report on the collapse of Lehman Brothers, a nine-volume, 2,200-page document that cost $38 million to produce, was worth every penny. The comprehensive "post mortem" on the once-venerable Wall Street form makes the most convincing...
London Legend's China Gamble Sparks Controversy
United Kingdom/Hong KongNot so very long ago, City of London folk looked down their noses at those bankers, entrepreneurs and businessmen who sought their fortunes in the Orient. They were collectively known by the acronym FILTH, which stood for "Failed...
Mapping the Maze
Banking RegulationBankers and regulators are beginning to lay out the future structure of the global financial industry. In the short term, it is set to be a deeply confusing place.It must never happen again! That is the cry of the bank regulators, who...
Middle East
The International Monetary Fund approved a $3.6 billion loan for Iraq, the largest such loan the country has received. The two-year standby agreement wil! help Iraq implement its development plan, rebuild its Infrastructure ana reform its banking sector....
Oil Wealth Keeps Economic Stimulus Flowing
Government spending will keep the Middle East's economic recovery on track in 2010. By Gordon PlattThe Middle East rode out the global recession better than the major industrialized economies, and the region is well positioned to benefit from the giobal...
Rebuilding Trust in Trade
Trade FinanceTrade finance is stabilizing, but caution is the watchword in an industry still reeling from the effects of the financial crisis.Throughout the financial crisis, trade finance, that unglamorous function within a bank that is often assigned...
Reconstruction Spending Shores Up Economy
ChileThe massive earthquake and subsequent tsunami that hit Chile in late February caused hundreds of deaths, as well as destroying some 500,000 homes and damaging infrastructure. Yet, as the country's government continues to assess the overall damage,...
Region Takes the Lead in Going Green
Oil producers aim to turn the desert sunshine into a new export: solar energy. By Gordon PlattWhen the oil runs out, the sun will still be shining and the Middle East may be the world's biggest exporter of solar energy. Ironically, the oilexporting nations...
Risk and Reward
Liquidity ManagementBusinesses are increasingly seeking to outsource parts of their accounting processes and discovering that contingency planning is becoming more important than ever.With external liquidity tight over the past two years, many corporations...
Russia
In late February prime minister Vladimir Putin rebuked four Russian oligarchs with significant investments in the country's power sector for not following through on Investment obligations that had been a prerequisite of their participation in the privatization...
Russia's New Plan for the Ruble
RussiaWhile the rest of the world focuses on the future of the dollar and the ro-and perhaps the renminbi- Russia is hatching a plan that could markedly aJter the dynamics of the world's currency markets. According to Russian first deputy prime minister...
Sovereign Funds Benefit from Global Bounce
GlobalWhile the past couple of years have been challenging, to say the least, for investment funds in general, sovereign wealth funds (SWFs), some of which got their fingers burned piling into Western banks that later stumbled, managed to defy the odds...
Top Banks Bounce Back
After two dismal years, the banking industry in the world's developed markets is flourishing again.The recovery of the financial markets from March 2009 (and earlier in the case of many emerging markets) came sooner and faster than most had predicted....