March 2004

Is it time to fold on Asia's US gamble?

Euromoney March 2004

Asia's leaders are playing a dangerous game of poker with the US, accumulating dollar reserves even as the US currency falls. Excess liquidity is driving stock markets in Asia and threatens to inflate bubbles while economic restructuring is patchy. The game cannot continue indefinitely: the end could be ugly. Chris Leahy reports.

China's new local asset exchanges

Amid the roll-out of China's vast privatization programme international attention is focused on the transfers of big state-owned enterprises. But the ownership of thousands of other smaller operations is being changed via hundreds of small, local asset exchanges. Regulation of these is being beefed up. Chris Leahy reports.

China funds creep towards profitability

Despite rapid growth in recent years, the investment management industry in China is hampered by volatile flows, strict regulation and an uneasy relationship between fund managers and distributors. Joint ventures with overseas firms have met with mixed success. Julie Dalla-Costa reports.

Thaksin shapes his brave new Thailand

Under Thaksin Shinawatra, Thailand has chosen a distinctive path to prosperity. Some hail its success as a blueprint for the region; others warn of an inflationary bubble. There are also hint of shifts in the Thai political and social fabric that could transform not just Thailand but the whole region's geopolitics. Chris Leahy reports.

Brands to go

Indonesia starts to set its own course

Indonesia has at last emerged from IMF intensive care to take its own first tentative steps towards full rehabilitation. Banks looks healthier and the country is preparing to return to the international capital markets. Early signs are encouraging, but key challenges lie ahead, including the roll-over of domestic recapitalization bonds. Chris Leahy reports.

Malaysians welcome anti-corruption drive

Cynics may regard the new prime minister of Malaysia's dramatic moves against corruption and overblown projects as little more than electioneering. But many in the financial community see the actions as a welcome and necessary change of tack for the country. Peter Koh reports.

Fund management

Phylon overcomes false start

Euromoney March 2004

Hedge fund Phylon's launch was ill-timed, but its partners' application of emerging market experience to European equities has impressed investors. Julie Dalla-Costa reports.

Private banking

Making 21i.net work

Euromoney March 2004

Through his creation, 21i.net, entrepreneur Fritz Kaiser is hoping to bring together the leading wealth management service providers in the world as a type of one-stop shop. His path towards a wealth management utopia, however, is not as smooth as had been foreseen. Helen Avery reports.

Equity markets

Goldman goes for desktop domination

Euromoney March 2004

Goldman Sachs is struggling to reassure other brokers that they have nothing to fear from its plans to turn proprietary platform RediPlus into a multi-broker trading system. Rivals see contradictions, a grab for profits, and a desire to dominate equities trading. Antony Currie reports.

That SLK acquisition

Euromoney March 2004

Latin America

Absence of crisis is the limit of progress

Euromoney March 2004

Latin American bond markets have maintained unexpected buoyancy so far this year. But the restructuring of Argentina's debt still looms as a prerequisite of the investment flows it needs, and Brazil is yet to institute the reforms that will enable its private sector to generate growth. Trade agreements would help. Felix Salmon reports.

Caribbean

Global trade winds push Caribbean unity

Euromoney March 2004

Enthusiasts for a Caribbean free trade zone see an opportunity to boost the region's economies. Sceptics recognize the value of this goal but point to many obstacles in the way of greater integration. Leticia Lozano reports.

Republic under pressure

Euromoney March 2004

Offshore banks reform to survive

Euromoney March 2004

Foreign exchange

Scandals force new forex rules

Euromoney March 2004

Forex scandals are rare, considering the size of the business. But when they happen, they tend to be dramatic. Demands for tighter controls are growing. But even without a clear and unified regulatory framework, a fear of reputational and financial risk ensures that banks take the issue seriously. Deborah Kimbell reports.

M&A

Do-it-yourself M&A, the Arcelor way

Euromoney March 2004

The world's largest steel company's M&A team is as big as an investment bank's steel sector corporate finance division. Arcelor reckons, though, that its team's superior sector knowledge makes it more effective at doing deals that enhance core assets, deliver synergies and boost shareholder value. Kathryn Tully reports.

Western Europe

Time is running out for the Landesbanken

Euromoney March 2004

With just over a year left before they lose the state guarantees that they rely upon for cheap financing, several German Landesbanken still do not have a clear strategy. Investors have reacted by rewarding those that have communicated a strong business plan. Katie Martin reports.

Germany's gradual revolution

Euromoney March 2004

Selling off Germany's autobahns and lamp posts are two of the more bizarre proposals of a government desperate to raise cash to bail out an ailing economy. The irony is that while there is broad agreement that changes are needed, the country's consensus system of politics is impeding progress. Ben Aris reports.

Luring banks back to the Mittelstand

Euromoney March 2004

KfW's platform to securitize portfolios of loans to SMEs in Germany has broadened opportunities for the banks involved. It is far from clear, though, that these lenders have taken the steps needed to enhance margins on this business. Katie Martin reports.

Iberian banks poised for more M&A

Euromoney March 2004

Portuguese banks have come smoothly through the recent slump. But with fewer consolidation opportunities available at home, further growth seems dependent on ventures in neighbouring Spain. Spanish predators still circle. Jules Stewart reports.

Middle East

An economy crying out for reform

Euromoney March 2004

Iran is finding it difficult to cope with high levels of unemployment in a youthful population. Despite vast energy resources, accelerated reform is vital if the economy is to be transformed. Kate Luxford reports.

Banking reform moves up the agenda

Euromoney March 2004

Tax reform tackles the foundations

Euromoney March 2004

Country risk survey

Country risk March 2004: Risk improvement defies politics

Euromoney March 2004

Country risk index: The strong currency is damaging economic performance in the eurozone. But the outlook for some emerging markets is brighter, thanks to rising commodity prices and improving prospects for Asia. Paul Pedzinski and Andrew Newby report.