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. 23, No. 1, January

1,000 Unsponsored ADR Programs Created in Last Three Months, Often without Consent of Issuers
CORPORATE FINANCING FOCUSMore than 1,000 unsponsored American depositary receipt programs were created in the last three months of 2008, in many cases without the permission of the companies whose shares are being traded in the US over-the-counter market.The...
After the Storm
Colossal losses by financial institutions have prompted calls for more-effective regulation. Refining the Basel banking rules might provide the answer.With each new phase of the current financial crisis, a new area of neglect of regulation is disclosed....
Banking Giants Push for Growth
BRAZILEager to maintain its status as Latin America's largest financial institution, Banco do Brasil, Brazil's largest state-controlled bank, announced the acquisition of Mossa Caixa, a bank owned by the S5o Paulo state government. The move comes on...
Blizzard of Rate Cuts Topples Records
GLOBAL FINANCIAL CRISISCentral banks around the world dug deeply into their ammunition dumps and unleashed a volley of outsized rate cuts in December, hoping to keep their economies from worsening amid a global recession. The Fed- eral Reserve cut its...
Business Confidence Crumbles amid Economic Gloom
INDIALeading Indian manufacturers have dismissed the Indian govern- ment's $4 billion stimulus package as insufficient. The Federation of Indian Chambers of Commerce and Industry (FICCI), which represents India's largest manufacturing companies and sectors,...
Business Schools Promote Responsibility
UNITED STATESA burgeoning global movement to reshape corporate behavior by weaving corporate social responsibility principles into business school teaching got a boost last month. At the first Global Forum for Responsible Management Education, held at...
Correa Steps Up Debt Campaign
ECUADOREcuadorian president Rafael Correa has made good on his 2006 presidential campaign promise to default on any foreign debt deemed illegitimate, defaulting on $3.9 billion in global bonds. This marks Ecuador's seventh default since gaining independence...
Credit Crunch May Be a Myth
UNITED STATESA chorus of dissenting voices has emerged that is challenging the widely held belief that interbank lending markets have dried up, commercial lending is being curtailed, and non-financial commercial paper markets have virtually ground to...
Credit Market Enters Eye of the Storm
A combination of heavy supply and rising defaults makes it difficult to forecast a bottom for the credit markets in 2009, analysts say. The new-issue market in US high-yield bonds remained frozen solid late last year, with no new issues at all in November,...
Defeating the Downturn
Policymakers in Taiwan are pulling out all the stops in their response to the global economic slump.Taiwan is an economic success story. The island, despite political uncertainty, limited natural resources and a relatively small population, has grown...
Downturn Bites Harder
CHINAChina has increased export tax re- bates and depreciated the value of the yuan relative to the US dollar in recent weeks, prompting fears that protectionist pressures could be tak- ing hold in the world's fastest-growing major economy (see cover...
Eastern Promise?
As the global economy continues to struggle, many are hoping China and India will save the world from a synchronized dive into recession.As the United States and other countries slide into deflationary recession, governments and central banks are pumping...
Financial Crisis Repercussions Threaten Putin's Legacy
RUSSIAThe Russian economy continued to slide down a slippery slope of economic crisis as a series of adjustments to the trading corridor of the ruble reflected a continued policy of gradual devaluation. The Central Bank of Russia boosted the refinancing...
FX Update
Risk aversion is the name of the gameThe basis for sustained recovery in market sentiment arrives when investors feel confi- dent that the worst has been fully account- ed-for. However, as yet, there is scant evi- dence that this moment is at hand. Firstly,...
IT Sourcing Trends in the Current Market
Mired in the midst of the worst financial crisis of the past 50 years, financial services firms are scrambling to batten down the hatches. With cost cutting not so much a trend as a necessity, firms are trimming budgets everywhere - Information Technology...
Liquid Assets
With credit conditions tightening around the world, businesses are focusing more than ever on effective liquidity management. Global Finance brought together some of the leaders in the treasury and cash management field to discuss current trends and...
Middle Market Caves in under Weight of Crunch
Merger and acquisition activity in the middle market, which had held up relatively well in the credit crunch, has succumbed to the scarcity of credit, the poor economy and the lack of exit opportunities."While the large-sector buyout deals all but shut...
Nigeria Sets Up Credit Bureau
EM ROUNDUPAFRICAThe Central Bank of Nigeria issued guidelines for establishing and operating credit bureaus, in a move that will support the development of the country's credit market by providing greater access to information on creditworthiness. Under...
Region Feels Effects of Global Slowdown
MIDDLE EASTProperty prices on Dubai's upscale Palm Jumeirah, an aranciai island shaped like a palm tree, fell sharply late last year. Construction work on the Trump International Hotel & Tower, the planned centerpiece of the complex, was halted in...
Shortage of Dollars Supports Greenback
A persistent shortage of dollars in global money markets is helping to bolster the greenback, even as US economic data portray an economy that is mired in recession, currency analysts say. The dollar continues to benefit from a global rush to the safe...
The Price for Protection
As countries seek to safeguard their economies from the effects of the global downturn, they risk being accused of protectionism. The fall-out could be ugly.When US president-elect Barack Obama sailed to victory in the November US presidential election,...