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. 24, No. 9, October

Africa
South Africa's state-owned development lender Industrial Development Corporation (IDC) plans to issue bonds and sell an estimated $3.6 billion worth of its listed shares by 2015 as part of a strategy to fund new investments. Johannesburg-based IDC will...
Asia
AustraliaGlenn StevensGrade; AGlenn Stevens, governor of the Reserve Bank of Australia, polished his reputation as an inflation fighter with six interest rate increases from October 2009 to May 2010. This was the most aggressive round of rate increases...
Asia's Banks Take the Lead
A consistent focus on traditional-style banking has enabled Asia's financial giants to emerge from the recent crisis in fine fettle.On any given day at Shanghai Pudong International Airport, squadrons of arriving bankers board waiting fleets of taxis...
Asia's Financial Centers Gain Ground on Rivals
GlobalLondon and New York can rest easy. Despite the DoddFrank Act and otiier regulatory measures that threaten to split up banks, curb bankers' bonuses and limit banks' trading activities, London and New York are still the world's leading global financial...
Banks Make A Bid for A Growing Market
Technological innovations and the rapid acceleration of globalization are driving a sharp increase in banks' interest in the remittances market. By Anita Hawser"We are on the cusp of something significant," says Marcus Treacher, head of e-commerce, global...
Brazil
With Brazil's economy expected to grow at around 7% this year and borrowing costs declining, Brazilian companies are seeking financing for their expansion plans. MMX, a leading metals and mining company, hopes to raise $2.2 billion in a new share sale....
Change Management
Banks are changing the way they look at their own transaction business to help companies see further into their working capital management processes. By Denise BedellThe need for integrated trade and cash solutions was significant even before the recent...
China
China's most recent economic figures show policymakers' efforts to reign in the property market without derailing the country's economic recovery are achieving mixed results. Industrial production, a measure of activity in the country's large manufacturing...
Coming to A Shopping Center near You: The Retailer as the Banker
While the world has been focused on the credit crisis and its aftermath, a quiet revolution has been brewing in financial services, especially in Europe. No, it is not under-the-radar regulatory reform or technological innovation. Rather, it is the noteworthy...
Companies Continue to Hoard Cash in Wake of Credit Crunch
GlobalIt is not just banks that are coming under increasing criticism for their liquidityhoarding tendencies. Cashrich companies are facing similar complaints - and similar accusations that they are prolonging the pain in the economy as a whole by not...
Coordinating the Recovery
Called upon to play an even more critical role in financial systems, central banks are looking to commercial banking partners to provide operational and infrastructure support as they increase their focus on minimizing risks to the financial system,...
Currency Affairs
A cursory glance through the pages of this month's issue would suggest there is much cause for celebration. The recession in the US, for example, is practically ancient history, having ended more than a year ago. The world's financial industry, which...
Falcom Breaks New Ground with First Ever Saudi Petrochemical ETF
The world's only shariah-compliant exchange traded funds open new doors for international investors in Saudi Arabia.An historic event took place in Saudi Arabia in March this year, when the first-ever Shariahcompliant exchange-trade fund was Usted on...
Familiar Forces May Impact Funding Currencies
FX UpdateIn the second half of 2007, easy US monetary policy underpinned a sharp rally in commodity prices, kept equity markets well supported and precipitated a marked decline in long term bond yields. Similar patterns have emerged since late July of...
Global Economic Slowdown Could Prove Beneficial to Countercyclical Dollar
Corporate Finance FocusThe world economic recovery may be slowing more rapidly than previously expected, according to the Organization for Economic Cooperation and Development. Growth in the Group of Seven developed economies will slow to an annual rate...
Global Outperformers
Latin America is a hotbed of growth, presenting a wealth of opportunities for domestic and international banks.With some of the highest growth rates seen anywhere worldwide this year, Latin America is proving a key destination for foreign direct investment...
Global Winners
Best Corporate BankJPMorgan ChaseJPMorgan Chase provides many of the world's most prominent corporations with the global financial services they need. With $2 trillion in assets, the bank operates in 60 countries, and is building up its corporate bank...
High-Yield Bond Issuance Surges
August was supposed to be a sleepy month in the highyield debt market, but it turned out to be anything but quiet. Total high-yield issuance in the US for the month was $30.8 billion, the highest since the record $38.5 billion in March, according to...
Holding Steady
Central bankers sit tight in the face of renewed global uncertainty.Indications that the global economic recovery is losing momentum have created a new set of challenges for central bankers, who are being asked to do more in a world drowning in a sea...
IMF and World Bank Lurch into Conflict over Emerging Markets
GlobalAs finance ministers and top executives of the world's largest banks converge in Washington for the annual meetings of the International Monetary Fund and the World Bank this month, a simmering diplomatic conflict between the US and the EU about...
India
With its fifth rate rise of the year India's central bank, the Reserve Bank of India, launched another attack on inflation last mondi. The bank upped its key rate to 6.0% from 5.75% in the face of inflation that, depending on which ministry of commerce...
Kan Sees off Leadership Challenge
JapanJapanese prime minister Naoto Kan retained leadership of his political party and the country after political powerbroker Ichiro Ozawa unsuccessfully challenged him for his position in a vote of members of the Democratic Party of Japan (DPJ). The...
Middle East
The six member countries of die Gulf Cooperation Council (GCC) agreed at a meeting in Jeddah, Saudi Arabia, last month to postpone a planned customs union for several additional years. At the exceptional meeting of ministers of foreign affairs, finance...
Middle East & Africa
IsraelStanley FischerGrade: AIsrael's economy recovered quickly from the global crisis, and the Bank of Israel was the first central bank to raise interest rates last year.The quarter-point increase in August 2009 came sooner than most analysts expected....
New Partnerships
Africa's banks are looking to forge new links as they seek to expand across the continent.The African banking industry has emerged from the global financial crisis largely intact and, in fact, with its reputation somewhat enhanced. The very limited and...
Petrobras Sale Clears Way for IPOs
Petrobras, Brazil's state-run oil company, was scheduled to come to market with $35 billion of shares as Global Finance went to press. That would make the sale the world's largest equity financing ever and could clear the way for a series of initial...
Poor Gain Better Access to Financial Services
GlobalDespite the fact that 60% of the world's economies posted a drop in real per capita income last year, access to formal financial services in developing countries grew. According to "Financial Access 2010," a survey of financial regulators in 142...
Rating Upgrade Opens Door to Costa Rica Bond Issue
Cost RicaWith the ink stili wet on a Moody's rating upgrade from BaI to Baa3 investment grade, Costa Rica has revealed it is considering a bond issue in the near future. José Rossi, chairman of CINDE, Costa Rica's investment promotion agency, says the...
Regional Development
Corporates are demanding increasingly sophisticated cash and trade solutions within Asia. Those banks that want to stay competitive must step up their game. By Denise BedellAsia is a key growth area for transaction banking as a result of not only the...
Regional Winners
Best Bank in North AmericaJPMorgan ChaseJamie Dimon, chairman and chief executive officerwww.jpmorganchase.comChief executive officer Jamie Dimon's deft political touch and business acumen has ensured the bank has remained aloof from the reputational...
Resource Battle Turns to Potash
The cross-border battle for global resources is now focused on potash, with BHP Billiton's $43 billion hostile bid for Saskatoonbased Potash Corp. of Saskatchewan, the world's largest producer of the fertilizer. With fertilizer prices low and grain prices...
Risky Business
Companies are showing increasing interest in employing risk consultants to help them manage their exposure.As they protect employees, property and supply chains flung around the globe, corporate executives are using risk consultants to grapple with a...
Russia
Inflation has in recent weeks climbed rapidly up the macroeconomic agenda in Russia, as the summer's wildfires and drought throughout the country decimated grain crops and triggered sharp price hikes. Inflation has long been the Achilles' heel of the...
Second Act
In his second term, Peru's president Alan Garcia is making amends for the shambles he left his country in after his first term.Peruvian president Alan Garcia is leading one of the world's most impressive political and economie comeback stories. While...
SHB: A Rising Star in Vietnam's Commercial Banking System
In February, editors of Global Finance selected SHB as "Best Trade Finance Bank in Vietnam in 2010". Then, in July, FinanceAsui, a Hong Kong-based banking magazine confirmed die accolade with a similar award. With these consecutive international awards,...
Shifting Sands
Many banks in the Middle East are still suffering the after-effects of the global financial crisis.Over the past decade the Middle East's banking sector has become one of the fastest-growing in the world. Previously it had been under-banked, and in many...
Sibos 2010
With thousands of banks and a growing number of corporations attending each year, the Brusseis-based international banking network SWIFTS annual Slbos conference has become a crucial forum for debates in transaction banking. This year's conference, to...
Slow Recovery
Hit hard during the financial crisis, Central and Eastern Europe's banking sector is still fragile and vulnerable to external shocks.During the boom times of the past decade, Central and Eastern Europe (CEE) was playing catch-up on the more mature Western...
Staying the Course
Turkey has bounced back from a sharp economic contraction to become one of the region's best performers. Its prospects are brighter than ever.Turkey's constitutional referendum last month gave a boost to prime minister RecepTayyip Erdogan's ruling AK...
The Great Recession Lives Up to Its Name
United StatesIt's official. The US recession that came to be known as the Great Recession is over. In fact, it's been over for more than a year, having officially ended in June 2009, according to the Business Cycle Dating Committee of the National Bureau...
The World's Safest Banks 2010
Global Finance selects the world's safest banks-the 50 institutions with the highest ratings from the leading international credit ratings agencies-and the safest banks in seven regions.It is a measure of how much stability has returned to the global...
Uncharted Territory
Banks are struggling to keep up with nonbank rivals in the race to create the next generation of payment systems. By Anita HawserIt may have been unfettered innovation that got banks into hot water during the financial crisis, but they are now under...
World Beaters
Global Finance unveils its annual list of the best banks globally, regionally and by country.Investors, depositors and corporations are concerned about the health of banks in Europe and elsewhere around the world, as strains in the global financial system...