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. 21, No. 5, May

A Bumpy Ride
Latin America has spent the past two decades recovering from the "lost decade" of the 1980s, marked by debt defaults, hyperinflation, weakened currencies and political unrest. Between 1980 and 2003, the region's GDP grew by a meager 2% annually. However,...
A Continent on the Cusp
The past two decades in Africa have been marked by the twin I themes of dramatic progress, such as the demise of apartheid in South Africa, and heartbreaking inertia, characterized by much of the continent's seemingly endless struggle with war, disease...
Boom Times
Twenty years ago, petrodollars flowing into the oil-producing countries of the Middle East were "recycled" into London and New York real estate markets and US treasury bonds. In the current oil boom, the flood of petrodollars is being invested closer...
Brazilian Deluge Saturates the Market
Brazilian cleaning company Atmosfera Gestão e Higienização de Têxteis suspended plans for an initial public offering last month as investors tired of the rapidfire pace of new listings on Bovespa, the Brazilian stock exchange in São Paulo.As of early...
Bruised but Not Beaten
Amid the growing political turmoil in Ukraine, the country's economy is proving remarkably resilient.When thousands of protesters took to the streets of Kiev, the Ukrainian capital, at the end of March, to outside observers it must have felt like a repeat...
Change Managers
Global Finance brings together some of the top figures in treasury management to discuss the influence that clients' rapidly evolving needs are having on their business.GLOBAL FINANCE: What are the chief global liquidity and cash management challenges...
Chávez Banks on Regional Support
LATIN AMERICAVenezuelan president Hugo Chávezs dream of creating a South American development bank may be coming true. His finance minister, Rodrigo Cabezas, speaking at the annual meeting of the Inter-American Development Bank (IDB) in Guatemala, said...
Class Editori and Thomson Create Financial Data Workstation
ITALYThomson Financial, a provider of information and technology solutions to the worldwide financial community, and eClass, a company that supplies financial information and market data by satellite and via the internet, are to create a new workstation...
Copper Producer's Bonds Rise with Price of Metal
Investors who bought into a $6 billion bond issued by Freeport-McMoRan Copper & Gold in March saw the value of their holdings rise quickly in the following weeks, as the price of copper surged to a fourmonth high on expectations of strong Chinese...
Exchange Chalks Up First Chinese Listing
GERMANY/CHINADeutsche Börse already has listings from more than 70 countries, mostly within Europe and North and South America, but it is now setting its sights on another region: Asia-Pacific. The clearest sign yet of that change in focus came on March...
Fdi into India Reaches Its Highest-Ever Level
INDIAForeign direct investment (FDI) into India has hit a new record high after growing at the fastest rate ever. For the fiscal year to March 2007 FDI reached $15 billion. According to the Indian finance ministry, these figures do not reflect re-Investment...
FX Policies and Developments in the Gulf Region
There is much talk about exchange rate issues in my part of the world at the moment. A regional common currency is on the horizon and there is a lot of market speculation about revaluation of existing exchange rates. Saudi Arabia and the other five members...
FX Update
The FOMC statement certainly does not preclude further policy tighteningInterpreting the FOMCAs the FOMC delivered its March policy statement, the USD fell sharply in New York-albeit fleetingly-as the market inferred a shift in stance to a less hawkish...
Increased Volatility in Exchange Rates Spurs Adoption of Best Practices in Currency-Risk Management
Walldorf, Germany-based SAP, a leading business software provider, announced late in the afternoon of January 11 that it would miss analysts' consensus estimates, as well as its own estimates, of fourth-quarter and full-year 2006 revenues. Later that...
Kink in Chicago Merger Plan
MARKET NEWSA relative upstart in the world of global exchanges, the seven-year-old Intercontinental-Exchange (ICE) has thrown a wrench in the works of the once-imminent merger between the Chicago Mercantile Exchange (CME) and Chicago Board of Trade (CBOT)...
Mergers and Acquisitions: A Dangerous Game
EUROPEWith the pace of corporate M&A showing no signs of abating, a study of more than 200 European deals In the past two years Indicates that few mergers-just 9%, In fact-are deemed to be "completely successful." According to Thomson Financial,...
Money Games
As virtual communities come of age, the corporate world is just beginning to grasp the potential opportunities they present-and the phenomenal disruptive influence they might have on global commerce.With millions of users now involved in them, virtual...
Porsche Pursuing VW in Low Gear
In the surreal world of corporate takeovers in Germany, pricey sports car maker Porsche has launched a below-market-value offer for "people's car" maker Volkswagen-a bid that it hopes will never cross the finish line.After exercising an option to take...
Rising Stars
Throughout the 1980s and 1990s, foreign investors looked to the East for investment and higher growth opportunities. East Asia did not disappoint, with GDP in some of these countries growing at an annual rate double that of any other part of the world...
Sharp Growth in M&a Activity
EM ROUNDUPBRAZILBrazil's IBGE national statistics institute reformulated its methodology for calculating the nation's GDP in March, prompting a revision of all GDP data going back to 1996. Under the new formula, which uses United Nations guidelines,...
Steady Progress
Indonesia is slowly moving toward a wide range of structural reforms critical to soothing the anxieties of local and foreign investors.Less than a decade after the fall of the dictator Suharto, Indonesia is moving to hand more power to regional governments,...
The Best Emerging Market Banks 2007
In our 14th annual survey of top banking performers in emerging markets, we name those banks that are consistently providing high levels of service in often-tumultuous markets.The Chinese stock market suffered its worst day of trading in 10 years on...
Transfer of Power
In this issue we look back over the past 20 years in the world's emerging markets. During those two decades the economic world has undergone a remarkable transformation. No longer simply sources of cheap manufacturing for the West, the so-called developing...
United Front
Central and Eastern Europe (CEE) has changed beyond recognition in the 20 years during which Global Finance has been published. Few would have dared hope in 1987 that the region would, in just a couple of years, begin its rapid reintegration into the...
Us-China Trade Showdown Looms
CHINAChina stepped up its fight against intellectual property rights (IPR) infringement in early April, lowering requirements for criminal prosecution and mandatory sentences. The move did not silence criticism from the US, however, which filed two new...
Violent Crackdown Sparks Global Outcry
RUSSIAThousands of riot police beat peaceful anti-government protesters during opposition marches In Moscow and St. Petersburg in mid-April, signaling the Kremlin's Intention to obliterate what are only the smallest glimmerings of anti-Putin sentiment....