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. 14, No. 1, January

ASEAN Economics Prepare for Take-Off
Forward-looking leadership and strong regional trade ties are helping to boost economic growth among ASEAN economies. The ASEAN group of nations may hold the greatest potential for growth over the shortest term when compared with any other trade blocs...
A Tough Act to Follow
America's financial institutions are set to go through a dramatic transformation after Bill Clinton signed a bill in November 1999 repealing the infamous Glass-Steagall Act. For years America's financial heavyweights have been complaining that the act...
Banking in the 21st Century
As the world's banks enter the new millennium they face a confusing paradox. On the one hand, they need to be bigger, more diversified, and offer more comprehensive services in order to compete globally. On the other hand, in a rapidly changing market,...
Bank Marriages Hit the Rocks
Despite the continued pace of merger activity among banks and security firms, new deals are meeting with increasing skepticism among investors. The reason is simple: Most mergers simply haven't delivered the benefits that were promised. A study by the...
Bid It Out
Fish, paper, printed circuit boards, even gas turbines. Form fast-moving perishable commodities ro one-off immovable objects, you can buy and sell 'em all online. The concept of electronic markets for commodities and financial transactions is familiar...
Brazil Earns an A+ on Fiscal Side
Brazil's president, Fernando Henrique Cardoso, well into his second term, is pushing to complete reforms that are hurting his popularity but keeping the economy on track for growth. Executives of Morgan Stanley in Brazil and BNDESPAR, the investment...
Browser Power
E-commerce is exploding, and financial sector players are leading the wave of growth in Intemet-based business transactions. The rise of E-commerce is bringing fundamental change to the way financial institutions operate. This Special Report examines...
Capital Inadequacy Scrutinized
Basel is back, its mission to attack credit risk. It's been 11 years since the Basel Committee on Banking Regulation drew up the Basel Capital Adequacy Accord, requiring banks to keep a minimum level of capital against risk-weighted assets. Now new proposals...
Customizing Global Custody
Users of global custody services are demanding more customization, aiming for comprehensive real-time information as the universe of this business keeps growing in terms of clients and countries. Big custody providers are getting bigger-but niche players...
Defined Contribution Swells with Global Demand
Defined contribution-markets-are escalating globally--as--sovereign governments have to deal with providing retirement benefits for baby boomers. The promise of higher returns for retirement investments is lifting global demand for defined-contribution...
E-Commerce Waves Wash onto All Shores
Industry experts focus on the explosive growth of Internet-based commerce in the United States, with annual revenues of $1.3 trillion forecast for 2003. But non-US markets are coming on strong. Europe is leading the charge-and Asia and Latin America...
E-Dilemma
In an on-line world, competitors can emerge overnight and start eating your lunch tomorrow. Do you fight them or join them? And how? You certainly can't ignore them any longer. When Internet experts talk about the old days, they mean late 1997. Electronic...
Financial Services Lead the Way
E-commerce is exploding, and finincial sector players are leading the wave of growth in Internet-based buskness transactions. The rise of E-commerce is bringing fundamental change to the way financial institutions operate. This Special Report examines...
Global Business in the New Millennium
Driven by a vision of a worldwide open market, the world's largest companies are promoting global capitalism based on a new model. Thirty years ago, when asked what they wished for at the turn of the millennium, many teenagers would have said "world...
Hottest Stories in Global Finance
Following 13 years of negotiations, the United States and China agreed to a trade pact that will reduce Chinese tariffs and help open Chinese markets to foreign businesses, especially fmancial services and telecommunications. The deal, which still needs...
Massive Attack
Given the advent of the euro, punters would have been disappointed if European banks had not displayed a certain dynamism last year. As it was, banks worked themselves into a lather as they merged and acquired, restructured and rationalized their cumbersome...
Most Important Government Ploys
In the first transaction of its kind by a national government, the Italian government has sold C4.65 billion ($4.66 billion) worth of Italian citizens' unpaid taxes to the bond markets.The bonds are backed by the collateral of 442.3 billion of delinquent...
New Markets Demystified
Investors are not alone in their appetite for dot-com and other high-tech companies; there's also fierce competition among exchanges to list the bright young things. Most attention is focused on NASDAQ, but Frankfurt's Neuer Markt, the largest growth...
Next Stop.The World
For all the talk about globalization, most banks remain primarily domestic. One might expect that the globalization of banking would have made the furthest strides in Europe. With a free-trade area and the euro being phased in, many experts were predicting...
No Surprise
With the latest round of international trade negotiations ending in a state of emergency and curfews in Seattle, observers are left wondering how it is that such a marvelously boring international group as the World Trade Organization could spark such...
Online Payments Sideline Banks
The central role of banks in the payment system is under fierce attack from new players offering electronic bill presentment and payment (EBPP).Already 2% of US households pay their bills online, although even these online payers still receive a pile...
On the Ground in Tokyo
It would be easy for Kiichi Miyazawa to say"I told you so." It is now widely acknowledged that Japan could have minimized its exposure to the global financial markets turmoil if it had adopted his economic reform package when it was proposed-well before...
Philippine Economy Rises to Challenge
Strict economic discipline and a booming electronics sector are helping the Philippines become one of Asia's best performers. When Philippine President Joseph Estrada cut the ribbon on the first of a dozen light-rail stations to be completed in Manila's...
Poland Picks Up
The Polish economy is moving into a stronger growth phase after a slowdown during 1999. This year GDP should expand by more than 4% and progress is being made in curbing the government deficit - so Poland should be on track to joing the European Union...
Retail Banks under Siege
The tremors you are feeling are coming from the banking industry. Not since the 1930s has such a widespread sense of unease swept through retail banks around the globe. But alarmingly, few have fully grasped the magnitude of transformation required to...
Sniffing for Bargains in Latin America
Spanish banks slowed their drive into Latin America in 1999 as margins narrowed at home. But with the end of the regional recession in sight and an expected boom in the Spanish economy, the Spaniards will soon be on the hunt again. Predictions are that...
The Oldest Profession
A Look at Banking in the Last Millennium At the beginning of the second millennium there were no banks, but there were bankers. Bankers provided the kings of Europe with construction loans for castles and working capital loans for wars. Possibly, assetquality...
The Spin
"Republicans are dubious about Clinton's concessions to China. They think WTO stands for Wild Trade-Offs." Comedy writer Bob Orben. The Wall Street Journal "We could be looking at the death of democracy in Seattle in 1999." -Mark Westlund of the Rainforest...
Tobacco Bonds: Holy Smoke!
Municipal governments in the United States are securitizing the enormous amounts of revenue they are owed by the tobacco industry. The governments have been expecting the money since the settlement of tobacco-related litigation in 1997. A settlement...
Virtual Exchange Challenge
Electronic capabilities have forever changed how securities markets work, allowing buyers and sellers to connect directly, without exchanges or brokers. Unless these intermediaries can demonstrate their value, they face extinction. Three fundamental...
We Have Contact
In the course of just one year e-commerce has become a subject no company can afford to ignore. Executives worldwide are realizing they must take a stand. Someday when all the business milestones of the 20th century are measured, 1999 will surely stand...
What If?
The future of the global economy is suggested in the experience of the last millennium. The century opened with the productive powers of labor reaching new heights.The division of work into specific skills and trades revolutionized the workplace, encouraged...
What If.China Became Asia's Next Indonesia?
The Date: January 2003 THE ScENARIO: The fundamentals of the Chinese economy start to crack. The economy slides into a deep and prolonged recession and the party-- state system is at last challenged. THE BAcKGRouND: The Chinese regime survived the Asian...
What If.Italy Pulled out of the EMU?
The Date: March 2002 The Scenario: Italy has withdrawn from the European single currency.The Economic and Monetary Union is on the brink of collapse. The Background: Political wrangling in the run-up to elections in Italy has pushed investors to sell...
What If.Latin America Rebounded?
The Date: March 2002 The Scenario: Latin America has finally shaken off its economic and financial crisis. The Background: Years of repeated budget cuts, pension system reform, and IMF support have finally brought about the revitalization of the Latin...
What If.The Internet Bubble Burst?
The Date:. January 2001 THE SCENARIO: The Internet bubble has finally burst. In the space of three days, Internet stocks have suffered a 50% meltdown, and more than half of NASDAQ's market capitalization of 3.5 trillion has been wiped off. Gone are the...
What If.The World Dollarized?
The Date:January 2001 THE ScENARio.- Dollarization sweeps the globe. The emerging markets, caught in a perpetual roller coaster of volatile capital flows, are on the verge of turning their backs on floating and semifixed currency regimes, dumping their...
What If.Wall Street Crashed?
THE Date: December 2000 THE SCENARIO: The US economy is in recession, and Wall Street has just crashed. THE BACKGROUND: For several years, the private sector had been spending $107 for every $100 of income-a gap filled largely by overseas borrowing.This...