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. 10, November

$100 Billion Bank Fund Buys Time for Treasury
UNITED STATESThe United States Treasury in effect told the big American banks last month to clean up their own mess and not to look to the federal government for a bailout to help them recover from the asset-backed lending crisis. It got a half dozen...
Bankers Still Bullish on Brazil
BRAZILInvestment banks say the recent US Fed rate cut, coupled with strong domestic fundamentals, bodes well for Brazilian capital market investors. "Fed easing since mid-August has opened up a new leg of the bull market in Latin American equities, especially...
Building A Stronger Supply Chain
Having good financial and physical supply chain infrastructure can mean the difference between competitive advantage and faster available cash versus reactive management and stops and bottlenecks in accounts receivable.Understanding what is happening...
Business as Usual as China's Wealthy Rack Up Huge Gains
CHINAAt China's mid-October National People's Congress, Hu Jintao kept his position as president and made a clear attempt to further consolidate his power. Premier Wen Jiaobao clung onto his position as well, despite some criticism lately concerning...
Buyout or Sellout?
The buyout boom of Canadian companies is stirring intense controversy and throwing a harsh spotlight on the role of corporate executives.As the selloff of Canada's biggest and best-known companies reaches record levels, politicians, labor leaders and...
Challenges Grow in Run-Up to New Payment Rules
EUROPEBanks and companies in other parts of the world are watching with interest as the deadline for radical transformation of the UK and Europe's cross-border payments landscape draws closer. In 2008 the UK Faster Payments and the single euro payments...
China Unleashes IPOs to Soak Up Liquidity
China has approved a series of major IPOs in recent weeks in an attempt to cool its soaring stock markets by flooding them with a growing supply of new issues. The country's main Shanghai index has more than doubled so far this year, following a similarly...
Clear
Large corporations are leaping at the chance to connect directly to the banks' financial messaging network. Some of the banks are not so keen, though.A few years ago, many companies "had probably never heard of, let alone cared about, SWIFT (Society...
European Energy Deals Keeping Investment Bankers Busy despite Slump in Leveraged Buyouts
Energy companies are fueling a merger boom in Europe, as the industry continues to restructure in response to liberalized markets and foreign competition. Investment bankers are welcoming the advisory fees from these huge deals at a time when leveraged...
Foreign Telecommunications Companies Embark on a Spending and Growth Spree
INDIAFollowing the recent acquisition of Indian telecom company Hutchinson Essar by Vodafone Group in May 2007 for $11 billion, Russian telecom company Sistema's acquisition of a 10% stake in fixed-line operator Shyam Telelink in September and Verizon's...
FX Update
Over to the politiciansIn lowering interest rates by 50bp on September 18th, the FOMC finally gave life to the market's expectations of divergent monetary policies astride the Adantic and EUR/USD rallied accordingly. One possible barrier to the pair's...
Global Capital Flows
In a world of growing financial integration, not only have global capital flows become increasingly important determinants of asset prices, they have also influenced government and central bank macroeconomic policy, especially in the areas of monetary...
Growth Pains
China's continuing economic expansion may be a bumpy ride, but the country's prospects still look remarkably good.Just as Chinese authorities began spending millions of dollars this summer to prepare the country for the 2008 Olympic Games, which Beijing...
Loonie Bests the Greenback for the First Time in More Than 30 Years
CANADA/UNITED STATESRecord prices for Canadian commodities have combined with a surge in foreign investment, robust job growth and the US Federal Reserve's recent interest rate cut to send the Canadian dollar on a growth spurt. Also known as the loonie...
Loonie's Flight Path Charted by Global Expansion
At Scotia Capital, we have been longstanding Canadian dollar bulls. However, it would be disingenuous to say that at the start of the year we foresaw anything close to the appreciation that has unfolded in recent months. On a year-to-date basis CAD is...
Offshoring Industry Faces New Opponent: Its Clients
UNITED KINGDOM/UNITED STATESOffshoring information technology services is an emotive subject that incites mixed responses from most companies. Although Wall Street financial firms were among the early adopters of outsourcing, sending their back-office...
Out of the Box
Automated trading programs are driving huge growth in the FX market-and placing ever-increasing demands on the technology deployed by the key players.The foreign exchange market has come a long way since the emergence of electronic trading platforms...
Party On!
Private equity has had a tough year. It was hounded by legislators for its methods during the first half of 2007. And in the second half it was hit by the credit crunch. Can its astonishing success continue under such circumstances?Private equity has...
Putin Unveils His Power Play
RUSSIAIn the second political bombshell in three weeks-following the surprise mid-September appointment of the obscure Victor Zubkov to replace prime minister Mikhail Fradkov-Russian president Vladimir Putin in early October announced that he would lead...
Shariah-Compliant Corporate Finance Forges Ahead
Investor demand, banks' creativity and deep pools of liquidity in the Middle East are driving strong growth in the development of Islamic investment banking products.While the initial wave of modern Islamic banking focused on the retail side of the business,...
The Business of Growth
As they expand their own businesses, clients are demanding increasingly sophisticated services from their global custodians.GLOBAL FINANCE: How has the recent market volatility affected global custodians?JAY MARTIN, senior vice president, global custody...
The Currency Hedging Imperative
In 1923, Sir John Maynard Keynes famously quipped that, "the long run is a misleading guide to current affairs. In the long run we are all dead/This wisdom doesn't seem to have permeated through the ranks of global equity fund managers. Even as pension...
The World's Biggest Market
To no one's surprise, the foreign exchange market easily passed the $3 trillion average daily trading volume milestone in April, when 54 central banks and monetary authorities collected turnover data, as they do every three years under the auspices of...
Trading Up
New foreign exchange insights from cross-border flows help banks create alpha and companies manage risks more effectively.The $3.2 trillion average daily trading volume in the foreign exchange market towers above that of any other market. The fact that...
Turbo Trading
New systems are introduced as FX traders feel the need for speed.The global foreign exchange market, the largest market in the world, not only is getting bigger, but it also is getting faster. As the velocity of trading accelerates, market participants...
Turkish Economy Enjoys New Era of Growth and Stability
Strong fundamentals and growing confidence in the domestic economy helped Turkey ride out this year's global economic turbulence.Barely had the dust settled on the financial crisis that roiled international markets in mid2007 than the head of the Turkish...
US High-Yield Market Coming Back to Life
The high-yield bond market in the United States has revived, thanks in part to the Federal Reserve's half-point interest rate cut on September 18, with some companies able to double the size of planned note issues due to strong demand and with fewer...
Us Shouldn't Take Its AAA Rating for Granted
UNITED STATESStandard & Poor's credit analyst Nikola Swann says the dollar's preeminent role in the world cannot be taken for granted. The greenback is still the predominant international currency despite its recent fall to record lows against the...
Weak Dollar Unlikely to Reach Crisis Stage
The dollar tumbled to a record low against a basket of leading currencies known as the dollar index at the end of September and likely will fall further, but no dollar crisis or rescue package is likely, analysts say.The dollar's renewed slide after...
World's Best Derivatives Providers 2007
The fourth annual Global Finance awards for the World's Best Derivatives Providers comes at a time when derivatives are in the mainstream news as never before. The US subprime mortgage crisis has spawned a credit crunch of unprecedented proportions....