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. 7, July/August

Accelerated Progress
The introduction of SEPA will act as an accelerator of centralization and rationalization within the corporate sector.Finance directors and corporate treasurers are increasingly faced with the challenge of maximizing efficiencies within their financial...
A Changing Agenda
There is no longer any doubt that Venezuelan president Hugo Chávez's "Bolivarian Revolution" is having a significant economic and political impact on Latin America. The question now is, Will it last?It's 1 l o'clock in the morning on any given Sunday...
Airbus Gets a Lift as New Orders Pour In
FRANCELouis Gallois, president and CEO of Airbus, was all smiles at the Paris Air Show last month. Europe's leading commercial aircraft manufacturer had some good news to announce-deals worth more than $40 billion, including orders for more than 100...
Air India on a Resource Hunt as Growth Takes Off
INDIAAir India, which is owned by the Indian government and is also the largest Indian air carrier, has begun the process to raise $1.5 billion from the global markets to partly fund its fleet expansion. This is the second round of financing for Air...
An Industry in Flux
Tightened budgets and new technology have triggered a wave of innovation in the business travel industry.The business travel industry has undergone many changes in recent: years. As businesses around the globe search for greater efficiency, it is often...
A Turbulent Transformation
In this month's cover story we look at the seismic changes that have been taking place recently in the balance of power in Latin America. Ever since 2002's election of Luiz Inacio LuIa da Suva as president of Brazil there has been a steady shift to the...
Benefits of Being Single
The transition to a single euro payments area is already well under way, but corporations still have a lot of work to do to prepare for the impending changes.From January 2008, the banking industry will start taking the first formal steps toward realizing...
Change Agents
Over the past three decades, the global custody and investors' services industry has facilitated some of the most dramatic and far-reaching changes in the global financial services landscape.More than 30 years ago Chase Manhattan bank in the United States...
China's Solar-Energy IPOs Getting Bigger
China-based manufacturers of products that convert the sun's rays to electricity are raising growing sums of money on Wall Street to expand their production facilities to meet expanding demand for alternative energy in the face of rising concern about...
CIB Branches Out
Leading Egyptian bank lines up new alliances to expand product range and geographic reachCIB-Egypt has signed a number of new agreements with a group of elite financial and banking entities in some of the Arab countries, such as Kuwait, Qatar, UAE, and...
Corporate Fraud on the Rise despite Sox
UNITED STATESFive years ago, in the wake of the Enron and WorldCom scandals, Sarbanes-Oxley (SOX) was enacted to prevent financial fraud. However, a recent survey of more than 80 US fraud examiners indicates that most believe fraud is more prevalent...
Dollar Regains Footing as Fed Gets Vigilant
Prospects for a Federal Reserve interest rate cut later this year have given way to worries that the Fed's tightening cycle may not be over. With the outlook for monetary policy playing a large part in currency movements, the dollar has rebounded in...
Eastern Promise
Asia, too, can benefit from the introduction of SEPA.The introduction of the single euro payments area (SEPA) is relevant to an increasing number of corporations in many Asian countries. This is driven by the growing globalization of these economies...
Economic Boom Won't Quit
High oil prices keep the ball rolling, as the Gulf region's economic growth momentum carries it through a rough patch in the stock markets.With oil prices remaining high, the six countries of the Gulf Cooperation Council, or GCC, have never had it so...
Emerging Market Companies and Banks Pose Risks to Financial System with Global Borrowing Spree
CORPORATE FINANCING FOCUSCorporations based in emerging market countries have increased their global borrowing substantially in recent years, putting themselves at risk to a sudden shift in investor sentiment and a turn in the global credit cycle, according...
Europe Widens Lead over US in Mergers
Milan-based UniCredito Italiano's agreement to merge with Rome-based bank Capitalia in a stockswap transaction valued at $29.5 billion has widened Europe's lead over the United States in announced M&A activity so far this year.Thanks in large part...
Financial Sector Reforms Promised
CHINAChina will farther open its financial sector following the second Strategic Economic Dialogue in Washington, DC, in May. As a result of the meeting, China will ease restrictions on foreign securities firms, allow foreign banks to issue domestic...
FX Update: The Outlook for Brazil
By most conventional measures, Brazil is one of the world's most attractive destinations for global investors. The benchmark Bovespa index is up over 20% so far this year, while real interest rates are almost 9%. If that were not enough, this year the...
Global Impact
The introduction of the single euro payments area (SEPA) is relevant to any non-Europe-based corporation or financial institution with payment activities in Europe. Although this may seem like a simple requirement, there are a number of complexities...
Islamic Finance Is No Longer for Muslims Only
Shariah structures and returns are appealing to a growing range of international investors.Islamic finance was designed for Muslim investors who want to avoid riba, or the payment of interest, and engage in ethical investing through the sharing of risks...
Joining Forces
The single euro payments area (SEPA) will affect all banks-large and small, European or non-European-but many have yet to make the required changes. Partnering may be the answer.In the past few months much of the attention related to SEPA has focused...
London Takes the Lead for Commerce
GLOBALLondon is perhaps best kown for major tourist attractions such as Buckingham Palace, Tower Bridge and Madame Tussaud's, but now it has a new moniker as the epicenter of commerce globally, according to a panel of leading economists. In the first...
Managing the Managers
Increasingly sophisticated clients are demanding ever higher standards from their transition management teams.Complex portfolio alterations require specialist knowledge across numerous fields, and pension funds, asset managers and insurance firms are...
Meat Processors Bulk Up with Foreign Acquisitions
BRAZILFollowing a spate of local IPOs by Brazil's main meat processing companies, sector players are now engaged in an acquisitions spree to expand their international presence. JBS-Friboi, a Brazilian meat producer, announced plans to acquire Swift,...
Merrill Lynch
Global Finance talks to Merrill Lynch about driving alpha with best-of-breed investment.The securities lending industry has grown phenomenally, and there is further room for growth. Using the best technology that the market can offer improves efficiency...
NASDAQ Fuels Global Deal Frenzy
MARKET NEWSNasdaq, the world's largest all-electronic exchange, has reentered the global merger frenzy with a $3.7 billion bid for Nordic bourse OMX. Undeterred by the failure of its three bids for the London Stock Exchange (LSE), Nasdaq is optimistic...
Opening for Business
With the South Johor development region opening up and the banking market on the verge of full liberalization, Malaysia presents growing opportunities for investment.After decades of being wary of foreign investors, Malaysia is gradually ramping up its...
Sepa Answers
Deutsche Bank answers some commonly asked questions about SEPA.What is meant by SEPA?The single euro payments area (SEPA) initiative is about the creation of a zone for the euro (pertaining to bulk ACH payments and collections) in which all electronic...
Sepa Guide 2007
From January 2008, a single market for euro payments will be realized in the form of the single euro payments area (SEPA). Banks in the eurozone and those countries that have signed up to the principles of SEPA will start offering new SEPA payment instruments,...
State Street
Global Finance talks to Suzanne Lee at State Street about the bank's securities lending services.With over $4 trillion in assets and 7-12% annual growth rates, the securities lending industry continues to show strong growth. As such, it is critical that...
Tensions with Trading Partners Reach New Low
RUSSIARelations between Russia and the West plunged to fresh post-Cold War lows, as the planned US missile shield in the Czech Republic, the investigation of the death of Alexander Litvinenko, the slow-motion crackdown on free speech in Russia and a...
Testing Times
International investors barely flinched when Turkey slipped into political turmoil earlier this year. The coming election will be another test of their faith in the country's stability.Turkey's recent economic turnaround has been nothing short of remarkable....
The New Force in Global Commerce
With its accession to the EU, Cyprus is now the ideal gateway for EU inbound and outbound investment, complimenting the longstanding and traditional links that Cyprus has with Central and Eastern Europe, the Middle East, Russia, India and China.Accession...
The Power of People
Competition for talent in the banking industry is driving up costs as demand for financial services expands.As more global banks enter the fast-growing Gulf region and set up offices in its gleaming new financial centers, they are competing for a limited...
The World's Best Sub-Custodians
Global Finance honors the often-hidden providers of the specialized services that make cross-border investing possible.As institutional investors increasingly venture into foreign markets to obtain diversification and higher returns, they rely on global...