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. 26, No. 11, November

Against All Odds
Mid-20th-century tourists flocked to Lebanon, the Switzerland of the East. War and instability long ago changed that. Now, with the Syrian conflict spilling over its borders, the country faces yet another round of political and economic challenges.Lebanon...
Banks Follow the Migrant Money Trail
Banks in emerging markets are building a lucrative business on remittances sent home by workers in developed nations.Alberto Raúl Guerra Rodríguez has had his hands full for the past five years with two of the most important - and most understated -...
Barriers to Entry
Though its economic growth may be stalling, Brazil is still an attractive destination for investors. But the recent imposition of tariffs on certain imports has sparked an international ruckus.For several years now, the international community has complained...
Bermuda Premier Seeks Piece of Islamic Finance Pie
BERMUDAPaula Cox, Bermuda's premier and minister of finance, snared the stage with former US president Sit Clinton in New York in September at the C3 Summit, a conference designed to promote relations between business people in the US and the Arab world....
Bulgaria Puts Bid to Join Eurozone on Hold
BULGARIAWith the eurozone debt crisis dragging on and membership in the currency union becoming increasingly less appealing, the Bulgarian government recently froze its bid to join the eurozone.Bulgaria is doing well, given the global climate, says Jeffrey...
Central Banks Ignite Corporate Debt Rally
Corporate debt issuance soared and yields on highyield as well as investment-grade bonds fell to record lows in September after the European Central Bank (ECB) and the US Federal Reserve moved aggressively to inject liquidity into the markets.The central...
Citi's New Chief Executive Talks Resource Allocation
UNITED STATESCEO Michael Corbat aims to restore Citi's prestige- and boost its dividend - by operating with extreme efficiency and producing sustainable profits. How he will effect that remains to be seen. A lifelong Citi executive, Corbat took the reins...
Coming of Age
Islamic finance is starting to spread within the countries of North Africa with high Muslim concentrations.Any discussion of Islamic finance usually includes Islamic financial hubs such as Malaysia or the Gulf Cooperation Council (GCC) countries.These...
European Defense Merger Called Off
A proposed $45 billion merger of European aerospace group EADS with UK defense operator BAE Systems fell apart last month just ahead of a regulatory deadline to close the deal. Talks between the governments of France, Germany and the UK failed to overcome...
Expect the Unexpected
Recent natural disasters in Japan and Thailand highlight the need for companies to insure against business interruption.About the only sure thing risk managers and their insurers will find in the marketplace for business interruption insurance is uncertainty....
First Democratically Elected PM an Unknown Quantity
GEORGIAOver the past few years, investors' love story with Georgia flourished under the presidency of Mikheil Saakashvili, who spearheaded a sweeping liberal economic agenda since coming to power a decade ago. But widespread poverty, rampant unemployment...
FX Excels While Other Assets Falter
The FX markets are evolving: Trade and currency internationalization, and the shift toward exchanges, will further this process. By Gordon PiattForeign exchange has proven itself as a separate asset class that can generate alpha, or excess returns, and...
High Tech Meets the Law of Inertia
Treasurers wanting to move to high-end forecasting solutions still face an uphill challenge.Even when a treasurer wants to move to a high-end system for forecasting cash, their efforts are still often stymied by internal politics, outdated processes,...
Identity Crisis
As stock exchanges worldwide try to figure out their role going forward in corporate equity and equity capital raising, companies are starting to question whether there is still value in a public listing.For both the Nasdaq and Kraft Foods it should...
Judging Alternatives to Libor
UKThe ongoing controversy surrounding Libor, the global benchmark interest rate used for pricing financial contracts, has sparked a wider debate about the merits of using alternative reference rates.Following revelations that traders at UK bank, Barclays,...
Navigating Success in Latin America: Cash Management and Trade Finance in a Changing Market
Mounting compliance requirements are having an enormous impact on cash management and trade finance needs in Latin America and globally, putting today's financial institutions (FIs) under even greater pressure. Deutsche Bank's John Estrada, Latin America...
New Balancing Act
Chinese policymakers must find new ways to manage short-term and long-term growth goals.China's economic planners have performed a careful balancing act in recent decades, taking gradual, measured steps and adjusting as they go. This approach has been...
Populist Revolt
Global Finance held its monthly Salon in the magazine's New York office with Luigi Zingales, professor of entrepreneurship and finance at the Booth School of Business of the University of Chicago and author of A Capitalism for the People-Recapturing...
Profiting from the Beauty Pageant
Despite the eurozone's debt woes, the euro has remained remarkably resilient thanks to a range of factors, including a more credible ECB under Mario Draghi and diversification away from the dollar into the euro. However, risks remain. By Laurence NevilleThe...
Reader's Comments
A WORD FROM THE EDITORWe received the following letter from the Bank of Korea press office. We are not surprised that some of our features generate controversy. We affirm our right to express an editorial stance based on our research, knowledge and outside...
Rial Collapse Could Spell the End of Iran's Government
IRANThe collapse of Iran's currency, the rial, has cut so deeply into the credibility of Iran's government that it's inching closer to regime change than it has been since a popular uprising deposed shah Mohammad Reza Pahlavi in 1979, say Iran watchers....
Rise of the "Jaguar"
Mexico's new business-friendly president has promised to open up state-owned oil companies to private investment. If so, Mexico could overtake Brazil as the region's largest economy within a decade.When Mexican president-elect Enrique Peña Nieto, 46,...
Russia, Mexico Reopen Market for DRs
CORPORATE FINANCE FOCUSSberbank, Russia's largest bank, raised $5 billion in a secondary share sale in London and Moscow in September that had been delayed for more than a year because of unfavorable market conditions. The window of opportunity opened...
Serving Kuwait for 60 Years
The first local bank and shareholding company in the GCC.In the six decades since its founding, the National Bank of Kuwait has built a well deserved reputation for stability, safety and sound management. Created in 1952, NBK launched with three clear...
Slovenia: Next in Line for A Bailout?
SL.OVENIAWith all eyes on the much larger Spain and Italy, Slovenia might actually turn out to be the next eurozone country in line for a bailout. The economy of this small alpine nation has contracted in two of the last three quarters, and losses are...
The Cyber Sieve: Social Media Monitoring for Financial Institutions
Social media has brought life and technology together in a way that there's no going back from. Financial institutions can no longer bank on the "wait and see" approach to decide where they stand in the cyber world. An aggressive and well-planned social...
The Renminbi Goes Global
Pressure from BRIC countries for a new international reserve currency to replace the dollar is growing. By Gordon PlattChina, the world's leading trading nation, would like to reap some of the benefits and prestige the US enjoys as a result of the dollar's...
The Stars Align
As treasurers seek to optimize liquidity and working capital, cash and trade solutions are increasingly in sync.Treasury and trade used to be two separate disciplines. But in recent years there has been a convergence of the two, both in terms of how...
Turkey Prepares for Transition to Investment Grade
TURKEYTurkey's authorities believe the country will achieve investment grade soon but are concerned that the economic boost provided by an upgrade could also trigger some unwelcome side effects. At a recent Global Finance roundtable in Istanbul, Erdem...
Uncertainty Reigns
The foreign exchange market is going through a period of significant change on multiple fronts. New regulations introduced in the wake of the financial crisis will redefine users of foreign exchange services and divide the market into two main categories:...
Unprecedented FX
Interview with Barry Wainstein, ScotiabankGlobal Finance (GF): Global central banks have had an unprecedented response to both the financial and subsequent European debt crisis. What has this done to the market environment in general and particular to...
Who's Who
Global Finance's annual list of Who's Who in Foreign ExchangeArab African International BankMohamed El AroussiChief dealer and head of FX deskEl Aroussi, chief dealer at Arab African International Bank, has headed the forex desk since 2008, AAIB is a...