October 2001
| Euromoney October 2001 Global finance is in the front line of the campaign against terrorism. The markets have so far proved resilient, thanks to a massive injection of liquidity by central banks and a brief interlude when a spirit of cooperation broke out among Wall Street rivals. Shoring up global confidence and leaning on international banks to line up for an economic war to starve terrorists of funds are now Washington's financial priorities. Broker-dealers made hay in the flurry of securities selling. But nothing can disguise the fact that the world economy and investment banking were in a parlous state even before September 11. The fog that surrounds the political and military outcome has added new uncertainty to recovery prospects. - The view from Jersey City
Lehman Brothers escaped across the river, its emergency relocation plan kicking in within minutes of the tragedy. Merrill did not fare quite as well. - To return or not to return
Salomon Smith Barney moves back to lower Manhattan. Will other investment banking firms follow? - Nervous times in the Middle East
Despite huge uncertainty about the political and economic future of the Middle East, bankers there say they are still busy and that life is carrying on as normal. - Pakistan’s markets uneasy but supportive
With Pakistan once again becoming a frontline state, the financial community is preparing for the worst. Despite this, Pakistan's move to support the US has brought comfort to the market. - The worst of times, the best of times?
The markets were already jittery before September 11 but the terrorist attacks sent volatility soaring. The central banks poured money in to provide liquidity and cut interest rates, politicians made rallying calls to investors to help keep markets up and some hedge funds promised not to short stocks, while some lenders refused to make them available for shorting. Yet market forces prevailed: indices plummeted and then started to bounce all over the place. But some investors feel the worst is over and buying opportunities will abound. - Isolation may benefit Russia
Russia has been trying to climb out of economic isolation for the last two years. Now that economic isolation will act as a shield from recession caused by America's war in Russia's own backyard. - Treasuries set for dramatic reappearance
The new era of a diminishing treasury debt has been shattered with the events of September 11. Now, the US government appears to be preparing for a vast expansion of public spending, heavily affecting dollar-denominated debt markets. - Asia accelerates towards inevitable recession
Two weeks after September 11, the sell-off in the Asian equity markets was unabated. Hong Kong’s Hang Seng was down 10.9%, Korea had dropped 10.8%, and Singapore had plunged 18.1%. And Japan’s Nikkei fell through the psychological 10,000 barrier. Chris Cockerill reports on what comes next
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Euromoney October 2001
The continuing success of the bank now known as Santander Central Hispano in growing profit, forging alliances elsewhere in Europe and taking major market shares in Latin America is a tribute to the skills of the two banks that came together to form it. But behind this public face the marriage of two distinct banking cultures has not come easy.
Euromoney October 2001
The smoke clears around BSCH, and Emilio Botin emerges in front after his swift and successful coup de grace.
Euromoney October 2001
Alrosa is by far the biggest gem diamond producer in Russia and supplies about 20% of world production. Now it is seeking new funding to develop its existing mines, open up new prospects in Russia and Africa, and expand the production of cut diamonds.
Euromoney October 2001
Having bailed out loss-making companies, Japanese banks are bereft of capital. Their losses will become even more glaring now that they have to implement mark-to-market rules. And though the latest Nikkei slump was prompted by the attacks on the US, the adjustment is widely seen as fully justified. Selling out to foreign predators is one way out for ailing Japanese corporates but few buyers will be willing to pounce until targets are on their knees. Vodafone’s move to capture Japan Telecom has proved an interesting exception.
Euromoney October 2001
Vodafone announces its plans to take control of Japan Telecom, Japan's third-largest telecom operator.
Euromoney October 2001
When forex trading first harnessed the internet, banks tried to attract clients to their individual platforms. They soon faced the problem that some customers were obliged to seek the best price for every transaction. Hence the difficult birth and troubled childhood of multi-bank platforms. End-users seem little more happy with these systems than the rival banks that set them up. And before they have had a chance to digest their implications clients are being offered the prospect of trading directly with each other. Jennifer Morris reports on a market whose innovators may have taken a step too far
Euromoney October 2001
When markets were at dizzy heights and volumes were burgeoning the rapid implementation of straight-through processing looked to be a necessity. Now, though, developers and potential customers are taking a more sober view, not least because some markets don’t yet seem ready for T+1 settlement.
Euromoney October 2001
Axion4gstp, established in March 2000 to develop the global straight-through processing initiative, is now in its pilot testing phase.
Euromoney October 2001
Whether it’s labelled programme trading or portfolio trading, the provision of cut-rate execution for liquid securities is a cash cow for banks and brokers. Despite low margins and dismal prevailing market conditions, institutions are still piling into the business. Just how high can an essentially commoditized service rise?
Euromoney October 2001
Rising competition in the programme trading arena has begun to change the balance between agency trading and risk trading. Agency business still controls a higher percentage, but risk trading has begun to rise.
Euromoney October 2001
In times of financial uncertainty, it is always tempting for banks to retreat to the business they know best. In the Netherlands, this means pulling back from international expansion and focusing on the domestic retail market. But there is always going to be one bank looking abroad for new opportunities.
Euromoney October 2001
In the Netherlands, bankers anticipate that the final stage of the introduction of the euro will pass into history without a hitch.
Euromoney October 2001
The autocratic president of Belarus, Alexander Lukashenka, was re-elected with a big majority last month on a vague platform of economic liberalization. But few expect a wave of privatization or reform. Since the collapse of the USSR a decade ago, Belarus has forged a bizarre model of economic management that defies conventional categorization. Part Soviet-style command economy, part crony capitalism, the system has given a few years of relative prosperity. Now though, amid claims that opponents have been assassinated and signs that the economy is crumbling, Lukashenka faces a reckoning. Erik D’Amato assesses the prospects for a country that will be an immediate neighbour to the EU when Poland accedes to the economic community
Euromoney October 2001
Belarus's small banking system has remained a sideshow during the tumult of recent years, while some of the most advanced of Europe's transitional economies suffer.
Euromoney October 2001
Universal banks are making great strides in winning business that used to be the preserve of the investment banks. In part a function of the weak state of the financial markets, it may also be a secular trend. A big balance sheet is a mighty weapon
and investment banks will be particularly pressed if they are forced to indulge in competitive lending to retain customers. Yet the investment banks’ prospects have been blighted as much by their own mistakes, such as ineptly timed waves of sackings of key personnel after losses, as by irresistible new forces.
Euromoney October 2001
While it has become clear that the combination of an investment bank and a commercial bank works, it may be a long and hard journey for Citigroup to achieve across-the-board success.
Euromoney October 2001
The need for timely and accurate corporate reporting is a universal concern, but there is no globally consistent evaluation of the levels of disclosure. Recognizing this gap, Standard & Poor’s has conducted a survey of 1,600 companies worldwide to complement its corporate governance scores.
In this first release, over 350 liquid and large Latin American and Asian companies taken from the Standard & Poor’s/IFCI Index are analyzed
Euromoney October 2001
Euromoney October 2001
In times of crisis, maintaining stability is crucial. Not at Merrill Lynch, it seems. Two weeks after the attacks on the World Trade Centre which forced Merrill to evacuate its headquarters for the foreseeable future, the new regime has seen fit to dispose of Jeff Peek, president of Merrill Lynch Investment Managers.
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
Euromoney October 2001
UK proposals on the reform of insolvency procedures take account of the special needs of securitizations. There is, though, uncertainty that all types of such deals are covered.
