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. 2, February

Africa
Government incentives are paying off for Zambia's copper sector, with output expected to surpass 740,000 tons this year for the first time, pushing it above the record highs of the early 1 970s. Incentives, including tax breaks and the permission for...
Brazil
The Brazilian government is taking further measures to halt a currency rally that may dent the country's trade surplus, with the real having gained more than 40% against the dollar since the end of 2008. The trade surplus fell 20% year-on-year to $21...
China
China has begun taking steps to cool the growth of its automotive market after a 32% increase in vehicle sales last year worsened traffic and air pollution problems in many Chinese cities. Vehicle sales totaled 1 8 million units in 2010, according to...
China Solidifies Renminbi's Role in International Trade
ChinaCommonly known for adopting a slow and measured approach to major reform, China has surprised markets with the speed of its moves to internationalize its currency. Its latest move, to allow mainland Chinese enterprises to use yuan in overseas direct...
Consolidation Looms in Polish Banking Industry
PolandNot only does Poland stand alone within the European Union in having delivered GDP growth through every quarter since 2008, but its intrinsically conservative banking system survived the crisis well. That looks set to continue, with forecasts for...
Cutting the Ties That Bind
Mobile BankingMobile technology could forever change the way that companies manage their physical and financial supply chains.After years in development, mobile technology may be finally closing the gap between companies' physical and financial supply...
Drug War Dents Mexico's Economic, Recovery
MexicoWhile Mexico's economy is recovering from its worst recession in 80 years, the spread of drug-related violence is hindering a more dynamic rebound. The drug war has claimed more than 30,000 victims since president Felipe Calderón took office in...
Fast and Loose
Gain or PainIn their headlong rush to set up operations in the fast-growing emerging markets, many Western companies are failing to take full account of the risks involved. The consequences could be painful.With their global companies sitting on billions...
Firms May Hold on to Cash in Funding M&A
While much has been said about the hoards of cash that companies are holding on their balance sheets, companies are likely to use a blend of financing options, according to some market participants. Steve Krouskos, global and Americas markets leader...
"Gamifying" Banking to Connect with Gen Y
We are a gaming species. According to Top Global Markets, in 2009 nearly 380 million units of video gaming software were sold in the US, UK, and Japan. Manchester United averages over 74,000 fans per match. The Dallas Cowboys and University of Michigan...
Hidden Threat
CybersecurityRecent increases in cyberattacks have raised alarming questions over corporate network security.In February 2010 the Kneber botnet virus infected more than 70,000 computers globally, including some at US government agencies. The attack was...
Historic Vote Creates World's Newest Nation
Southern SudanSudan, the largest country in Africa and the Arab World - and the tenth largest in the world - is about to get a good deal smaller. Preliminary results were still coming in as Global Finance went to press, but it would appear that the eight...
India
New Delhi-based IndiGo, India's third largest domestic airline, placed the world's largest single order ever for commercial jediners. IndiGo ordered 180 aircraft with a list price total of $16.4 billion from European manufacturer Airbus. Deliveries of...
In Safe Hands
Custody & Investor ServicesCustodians have seen their role expand as a result of recent regulatory and market-driven changes.In the wake of Lehman's collapse, Bernie Madoff s $50 billion Ponzi scheine and the regulatory whirlwind that has ensued...
IPO Market Smashes Quarterly Record
It was a benchmark year for the global IPO markets, in more ways than one. In the last quarter of 2010, IPOs broke records in terms of issuance volumes, with $122.2 billion raised worldwide, accounting for more than 45% of the full-year 2010 volume of...
Islamic Banking by the Book
Islamic FinanceThe growing popularity of Islamic financing and an intensified focus on risk management in the global banking industry are prompting greater awareness of the need for a unified-and appropriate-regulatory regime.When the Basel Committee...
Middle East
Saudi Arabia announced a record budget for 2011, which includes $155 billion in spending, an increase of 7.4% from a year earlier. Altliough the rate of increase in state spending is slower than in recent years, economists say the budget is stimulatory...
On the Road to Recovery
AngolaRavaged by a 27-year civil war and buffeted by the recent global financial crisis, Angola has suffered more than its fair share of challenges. Undaunted, its leaders are striving to reshape it into a robust and dynamic economy.Just under nine years...
Russia
The US Senate in late December ratified the New START treaty, which calls for reductions in nuclear arms by both Russia and the US. The long-debated agreement improves relations between the two countries and represents a critical step in reinforcing...
Russia Set to Play Catch-Up with Fellow BRICs
RussiaRussia spent much of 2010 in the doldrums. While its fellow BRICs -Brazil, India and China- stormed ahead, Russia lagged behind. The causes of its lethargy were varied, but an overreliance on commodities, perceived political interference in the...
Singapore Counts the Cost of Record Growth
SingaporeAfter a year in which its economy expanded at the fastest rate since it achieved independence in 1965, Singapore may be about to suffer a hangover. According to preliminary government figures, the city-state's economy expanded by a blistering...
Sub-Investment-Grade Credit Quality Rises
After a record year, and four months hovering at around $30 billon in monthly issuance volumes, US high-yield debt issuance declined in December to $21 billion, according to data from KDP investment Advisors. Aircraft components maker TransDigm bucked...
Three's Company
Competition In The CaucasusArmenia, Azerbaijan and Georgia are competing to attract foreign investment. With much of Central and Eastern Europe still mired in a post recession slump, the Caucasian trio may all benefit.Over the past few months, international...
Trade Forecast: Cloudy with a Chance of Protectionism
Best Trade Finance BanksBankers are optimistic that financing will be available to support projected growth in world trade, but regulatory change and currency wars have them on edge.Trade finance is the fuel that powers the engine world trade, which...
Tread Lightly
There is no question that the newly emerging markets - often dubbed the frontier markets - present Western firms with mouthwatering opportunities. Perhaps not surprisingly, the scramble to grab a slice of this growing economic pie has triggered something...
Treasurers Oppose Tighter Rules on Money Market Funds
United StatesProprietary trading by banks and OTC derivatives has come under increased regulatory scrutiny following the 2008 subprime crisis, but, to the surprise of many, regulators are also fixing their gaze on money market funds (MMF). Long viewed...
US Dollar Remains Reserve Currency of Choice
Corporate Finance FocusContrary to some analysts' expectations, developing countries continue to view the US dollar as the reserve currency of choice, as evidenced by newly allocated official reserves of developing countries - even in the face of expectations...