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. 18, No. 7, July/August

Analysts Say Inflation Could Erode Value of Dollar
THE AMERICASThe US dollar appears ready to resume its longterm declining trend, as net foreign purchases of US assets are slowing, analysts say.Higher interest rates are not likely to support the dollar, because the Federal Reserve has fallen behind...
A Steady Recovery Begins to Take Shape
It may not be the "spectacle of growth" that President Lula promised, but Brazil's economic recovery is becoming more robust and sustainable.Although recent economic data point to a gradual economic recovery in Brazil that began last year, some local...
Breaking with the Bank
In-house banks are becoming increasingly popular among larger multinational corporations. They may not work for all big companies, though.Petroleum giants BP and Shell each have one. So do Dutch electronics company Philips and the US communications network...
Businesses Focus on Customer Service Risk
EUROPEThe Enron accounting scandal may have sparked a wave of knee-jerk regulatory measures (Sarbanes-Oxley, FAS 133), but Europe's top 1,000 companies are more concerned with the risks associated with poor customer service, a new study indicates.Despite...
China Sets Course for a Gentle Touchdown
CHINAIt looks like China might be able to pull off a feat that even the United States was unable to achieve after the stock market boom of the late 1990s. According to Stanley O'Neal, chairman and chief executive of Merrill Lynch, China looks set to...
China Stepping Up Inflation Monitoring
ASIAZhou Xiaochuan, governor of the People's Bank of China, told senior officials at the regional branches of the central bank in june to step up their monitoring of inflation.This raised expectations that the central bank was moving closer to raising...
Companies Find Ways to Make Money Go Further
Recent increases in business travel clearly reflect the global economic upturn. But while travel is up, spending is not.The business travel industry is finally pulling out of the slump of the past three years as business activity accelerates and the...
Exploiting Sarbanes-Oxley to Improve Global Business
Sarbanes-Oxley has caused concern among foreign firms that want to conduct business in the US. Now, US companies are increasingly facing similar legislation abroad.By now enough ink has been spilled over the Sarbanes-Oxley Act that the legislation has...
Future Imperfect
There's no doubt that many people who are currently working-even those who are currently well off-will face seriously hard times when they retire. State pensions in all the major economies are withering as the number of retirees grows and the funds available...
India Finds Itself in Grip of Ipo Frenzy
INDIABy the end of June, 2004 was looking set to be the best year ever for India's IPO market. The first half of the year saw $4.5 billion raised-more than twice the full-year figure for 2003. At least another $4 billion worth of issues are slated to...
Investment Banks Cash in on Hedge Fund Boom
The hedge funds industry is growing rapidly, attracting both new investors and companies looking to service this dynamic market.As investments into hedge funds reach record levels of around $1 trillion worldwide, interest is growing in providing services...
Kirchner Plays a High-Stakes Game with Bondholders
ARGENTINAWhen Argentine President Nestor Kirchner made a proposal, during last years IMF meetings in Dubai, to restructure $88 billion worth of defaulted sovereign debt, he was emphatic that the government would hold firm on an offer that asked bondholders...
Local Knowledge, Global Sense
The path to running a successful business in China is riddled with pitfalls. But with careful forethought most problems can be avoided.Big multinationals have been in China for years. Microsoft, Procter & Gamble, Nokia and other blue-chip companies...
Many Issuers Withdraw from High-Yield Market
GLOBALNumerous companies with below investment-grade ratings have canceled or delayed proposed debt sales in recent weeks, as borrowing costs have increased.Other issuers, in the US as well as in Europe, have been forced to offer more-attractive terms...
Outsourcers Find There's Comfort in Staying Closer to Home
EUROPEEuropean and US bank executives are no longer automatically finding the best bargains in far-flung locales like India when they search for locations to outsource their complex back-office functions. Instead, says Owen Hall, managing director of...
Party Games
CHINAGeneral Motors announced it will invest more man $3 billion in China over the next three years, trying to displace Volkswagen as the leader in the red-hot auto market. In response,VW will double production capacity to 1.6 million units by 2008....
Planning and Forecasting in A Topsy-Turvy World
As the financial planner's job becomes more complex, the tools available to help are becoming ever more sophisticated.To say that the corporate business cycle is volatile and competitive these days is an understatement. Many companies, large and small,...
Pro-Reform Minister Performs Delicate Balancing Act
INDIAHe is extremely capable, politically savvy and known for his ability to package complex financial information into the 60-second sound bites demanded by today's global and local media. And Palaniappan Chidambaram-lndia's new finance minister-even...
Sector Report: Oil & Gas
Banks Adapt to a Changing MarketUncertainty in the oil and gas industry over future prices is forcing global banks to look harder for potential funding opportunities.With global energy prices hitting new peaks, and all the indicators from the futures...
Southern African Nations Strive to Defeat Poverty
The challenges may be huge, but a handful of southern African nations are getting a boost in their efforts to fight poverty and improve their economic fortunes.Early in june, on a steamy afternoon on Sea Island off the coast of Georgia, leaders from...
Study Finds ADR Issuers Are Unfazed by Sarbanes-Oxley
THE AMERICASThe corporate-governance standards demanded by the Sarbanes-Oxley Act are not causing issuers of American depositary receipts to avoid the US market, according to a new study.The survey of 143 ADR issuers from 43 countries found that 94%...
The Looming Pensions Crisis
Countries worldwide are struggling to provide for the pension needs of their increasingly aging populations. Encouraging private provision is only part of the solution.Paying for retirement is an expensive business. As more people look to retire early,...
The World's Best Sub-Custodians
Global Finance selects the winners in a specialized area of finance that enables global investing to exist.Sub-custody involves a wide range of securities services, including clearance and settlement, safekeeping, cash management, record keeping, securities...