September 2006
| Euromoney September 2006 The US is buried under a mountain of debt, much of it owned by past or current enemies. The ageing, ill man of Europe gets older and sicker. New economies of the Middle East, Latin America, emerging Europe and Asia are using windfalls to build for the future, and exert their influence across the globe. This is the new financial order. Markets will never be the same again. |
Euromoney September 2006
Riad Salamé faces yet another test of his skills following the outbreak of war between Israel and Hizbullah. He has dealt with previous challenges with flying colours. There’s little to suggest it will be different this time. Sudip Roy reports.
Euromoney September 2006
Indonesia’s young finance minister has made some key decisions since her appointment, winning many friends abroad. Some tough challenges lie ahead; to meet them, Mulyani will need to win more friends at home. Chris Leahy reports.
Euromoney September 2006
The latest country risk poll reflects a global economy in good health, despite a period of stock market volatility and the prospect of a slowdown. But the Middle East and the high price of oil could have far-reaching implications, writes Florian Neuhof. Research by Paul Pedzinski.
Euromoney September 2006
Another critical event is now casting its shadow over the global investment banking industry.
Euromoney September 2006
China’s domestic capital markets are beginning to open up to foreign banks. Although there are a multitude of opportunities and the scale is unprecedented, striking a successful strategy is vital. Chris Leahy reports.
Euromoney September 2006
China has so far allowed just two foreign investment banks to strike deals to manage domestic securities firms. The deals are very different in structure, but both focus on the key issue of control and both are mired in controversy. Chris Leahy reports.
Euromoney September 2006
The prospect of greater M&A and capital markets activity by Indian companies means that no bank can afford to ignore the sub-continent. Some are attacking the market through joint ventures and alliances with locals; others are going it alone. But which ones will succeed, and how will independent local players stand up to the competition? Sudip Roy reports from Mumbai.
Euromoney September 2006
In an investment banking world dominated by US bulge-bracket operations, UBS has muscled its way into the global league. Success has come despite its singular provenance, say critics, and, argues CEO Peter Wuffli, because of it. The Swiss bank’s head explains this reasoning to Chris Leahy and discusses developments on banking’s latest battlefront.
Euromoney September 2006
The hedge fund industry has exploded; conservative estimates suggest there are almost 500 funds based in the region. Most have ridden the wave of Asia’s rising markets. Now those returns are getting harder to come by. But, as Helen Avery reports, increased opportunities to take short positions offer managers hope of generating new, enhanced returns.
Euromoney September 2006
Despite a cyclical downturn – which has itself prompted the country’s banks to sharpen up their operations – the sector is in unprecedented good shape. But the banks need to be encouraged to lend more, and this is in part dependent on the consolidation a newly powerful central bank is keen to promote. Nick Parsons reports from Jakarta.
Euromoney September 2006
The Republic of Indonesia’s successful $2 billion issue this March has given an impetus to the revival of the country’s corporate bond issuance. Nick Parsons reports.
Euromoney September 2006
In less than two years the Philippines has transformed its sovereign debt programme from laggard to leader in emerging markets. The work of the republic’s treasurer, Omar Cruz, lies behind much of the change. Euromoney talks to the Philippines’ market man about the changes and the challenges ahead.
Euromoney September 2006
Japanese outbound M&A is reaching levels not seen since the 1980s as corporates seek to consolidate their newly strengthened positions. Chris Wright reports.
Euromoney September 2006
Oji Paper’s bid for rival Hokuetsu breaches a Japanese taboo on hostile takeovers. It has also prompted some extraordinary, perhaps illogical, defence tactics. Is this the shape of things to come in Japanese M&A? Chris Wright reports.
Euromoney September 2006
The country’s newly revitalized banking system throws up colourful characters and eccentric approaches to marketing. But overseeing it all is a rigorous central banker with solid US commercial banking experience. Eric Ellis reports.
Euromoney September 2006
Despite Gulf coffers brimming with oil cash and aggressive expansion by some of the region’s banks, inherent barriers to regional consolidation are set to limit fundamental change in the Middle East and North Africa’s financial sector landscape over the next five years. Alex Warren reports.
Euromoney September 2006
Ebrahim Sheibany is governor of Iran’s central bank, a position he has held for three years. He tells Eric Ellis in Tehran that as far as economic policy is concerned, little has changed, despite the election of Mahmoud Ahmadinejad as president.
Euromoney September 2006
A few big foreign banks have recently suspended their activities, but they are far outweighed by institutions that intend to maintain a connection. And Iran’s prominence as an oil producer means that it sustains substantial economic relations with foreign export credit agencies and governments. Philip Moore reports.
Euromoney September 2006
Iran’s authorities are looking to invigorate the country’s private sector with plans to sell up to $110 billion-worth of state assets over the next 10 years. Can the programme attract the foreign investors it needs to succeed? And can Iran’s government learn from past mistakes? Euromoney reports.
Euromoney September 2006
Israel’s conflict with Hizbullah began just as Lebanon was finding its feet again following the assassination last year of former prime minister Rafik Hariri. The government was in the middle of a series of reforms that it hoped would provide the capital markets with a bigger role in the country’s economic story. Those reforms are now on hold but it is imperative that they are implemented as soon as circumstances allow. Sudip Roy reports from Beirut.
Euromoney September 2006
Lebanon’s finance minister, Jihad Azour, told Sudip Roy in early August how his country is coping with conflict.
Euromoney September 2006
Saudi investor interest in the IPO of the main company behind the King Abdullah Economic City was overwhelming. It is now hoped that the project will attract equivalent interest from foreign companies intent on participating in the special economic zone. Nigel Dudley reports.
Euromoney September 2006
French bank BNP Paribas is being sued in the US federal courts by a hedge fund over the financing of contracts for oil from Congo-Brazzaville. Rather than settling out of court, BNP says it will fight the lawsuit all the way. Felix Salmon reports on a grey area of black gold.
Euromoney September 2006
Nigeria’s economic reforms have been impressive. But after the resignation of a key figure in the country’s turnaround, can they be made to stick? Rupert Wright reports from Abuja and Lagos.
Euromoney September 2006
After EU accession in 2004, the next target for central Europe’s governments is the euro. In the scramble to comply with the Maastricht criteria, have they started to borrow techniques, invented by their western European counterparts, for massaging the numbers? Kathryn Wells reports, with research by Pauline Thomas.
Euromoney September 2006
Foreign investors have made fortunes investing in Russia. But now they are looking to go deeper, and are packing their bags to discover Russia’s regions. Julian Evans reports from three of Russia’s developing regions.
Euromoney September 2006
Increasingly sophisticated Russian retail investors are seeking new products to beat interest rate returns. Patrick Gill reports.
Euromoney September 2006
Only incorporated in 2005, Almaty-based Max Petroleum shows that smaller, independent energy companies can still make their mark against the more powerful Russian and global firms.
Euromoney September 2006
Kazakh investment banking boutique Visor Capital believes it can offer clients a bridge between local and international markets. It is looking to open up new avenues for corporates and international investors alike. Can it compete with the more established competition?
Euromoney September 2006
Compass Asset Management’s chief investment officer expects his funds under management to grow from $20 million to $100 million in the next 12 months. Is Kazakhstan the next great emerging Europe play?
Euromoney September 2006
Bank TuranAlem is growing fast and has set its sights on toppling the largest bank in the country, Kazkommertsbank. The next stage in its growth strategy could involve an IPO to attract international investors.
Euromoney September 2006
Hungary’s OTP Bank dominates its domestic market, but can it compete with regional powerhouses such as Raiffeisen International and UniCredit, or is it in danger of being swallowed up itself? Kathryn Wells meets OTP’s long-serving chief executive, Sandor Csanyi, to find out.
Euromoney September 2006
Foreign banks are pushing the sector forward even as the rewards come in. The capital market is also showing signs of life but would benefit from more determined decision-making. Florian Neuhof reports.
Euromoney September 2006
Güler Sabanci, who chairs Turkey’s Sabanci Group, talks to Peter Koh about foreign partnerships, international expansion, the group’s strategic direction and the difficulties of running a family business.
Euromoney September 2006
As an investor dedicated to the region, East Capital Asset Management is in the vanguard of a growing breed. Oonagh Leighton reports.
Euromoney September 2006
With a successful Eurobond behind it, the republic is beginning to fulfil its promise as a strategic part of the Balkans. Oonagh Leighton reports.
Euromoney September 2006
For many years the accepted wisdom in global banking has been that bigger is better. The full-service banks dismiss smaller competitors, saying that to succeed in modern finance you need to offer all things to all clients. And yet a number of European banks continue to demonstrate success in their chosen specialist fields. Peter Koh profiles the financial institutions that prove you don’t have to be everywhere and everything in the world to be a world-class operation.
Euromoney September 2006
When Fitch put Iceland on a negative rating outlook in February the country was facing a heavy current account deficit as well as an asset price and credit bubble. But the banks and politicians think that it was all a misunderstanding. Laurence Neville reports.
Euromoney September 2006
Iceland’s financial supervisory authority, the FME, has kept a close eye on the health of Iceland’s big three banks, says Jonas Fridrik Jónsson, director general.
Euromoney September 2006
“The events of February and March can be blamed in part on the relative lack of knowledge about the Icelandic economy and its peculiarities, which was reflected in some reports,” says prime minister Geir Haarde.
Euromoney September 2006
Árni Mathiesen, Iceland’s finance minister, speaks to Laurence Neville about this year’s economic troubles and the economy’s prospects.
Euromoney September 2006
Big banks are beginning to look beyond the kudos that socially responsible investment brings and are introducing microfinance to the capital markets as a viable, profitable business. Zach Fuchs reports.
Euromoney September 2006
The London-based asset management firm has taken the lead in persuading institutional investors worldwide, including central banks and pension funds, to go for long-term investment in emerging market assets. Felix Salmon reports.
Euromoney September 2006
CDS trading volumes in Latin America are growing fast as credit derivatives become an increasingly important investment tool. Leticia Lozano reports on the impact on the region’s capital markets.
Euromoney September 2006
Its capital markets are a hive of activity – with record levels of IPO activity, decreasing funding costs and a first hostile takeover attempt. But many of the most active companies say that the queen bee of government is too strict: tax and infrastructure problems are preventing the country from reaching full potential. Lawrence White went to São Paulo and Rio de Janeiro to investigate.
Euromoney September 2006
Richard Lark, CFO of low-cost airline Gol Linhas Aéreas Inteligentes, exemplifies the increasing sophistication that ex-bankers are bringing to Brazilian corporate finance. He is a qualified pilot, was formerly a vice-president at Morgan Stanley and is a borrower whose company’s stock value has doubled since its IPO. Lawrence White spoke to him in São Paulo.
Euromoney September 2006
The recent dramatic widening of euro swap spreads means that euro-denominated debt is becoming cheaper for agencies and supranationals. Could this signal the start of a fundamental shift away from dollar bonds for these issuers? Lawrence White reports.
Euromoney September 2006
If things go according to plan, next January there could be a fundamental change to the rules under which more than 50% of Europe’s invested real estate is financed. Louise Bowman reports.
Euromoney September 2006
The recent explosive growth in European CMBS is the fruit of years of investment in the product by many banks. But do these institutions now find their hands tied by the need to feed the machine that they have created? Louise Bowman reports.
Euromoney September 2006
It offers double-digit yields, is not correlated with the equity market and provides secure, long-term returns. Allocations of investment capital to real estate have therefore ballooned – and look set to keep on growing. Louise Bowman reports.
Euromoney September 2006
The unbundling of execution and research costs will dramatically accelerate the global consolidation of equity broking firms. But it also raises questions about the quality and efficiency of the buy side.
Euromoney September 2006
Are things finally starting to move forward in the much-heralded property derivatives market?
Euromoney September 2006
Companies with optimized financial supply chains have 30% to 35% better market capitalization than companies that haven’t. However, forging the links between treasury and operational departments is hard, particularly as supply chains enlarge and globalize.
Euromoney September 2006
Newcomers to the IMF/World Bank meetings could find the event overwhelming. Should they attend the seminars? And if so, which ones? Where’s the best place to hear the gossip? And which parties should they attend? Confused? Don’t worry because help is at hand from an IMF veteran, as dictated to Sudip Roy.
Euromoney September 2006
Washington Mutual’s treasury officials reveal the rationale behind the first covered bond from a US issuer.
Euromoney September 2006
Highly unusual and interesting vehicle, but its precise status remains ambiguous.
Euromoney September 2006
Despite the push into credit derivatives, end investors remain on the sidelines.
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
Are structures like Jazz music to the ears of investors worried that the credit cycle will turn?
Euromoney September 2006
Issuers hoping to capitalize from German property securitizations will face stiffer competition for their portfolios.
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
With the US apparently nearing the end of its rate cycle, attention has started to focus again on the possibility of global central banks selling dollars and diversifying their reserves. But has the story has been overstated?
Euromoney September 2006
Allocating a far greater proportion of their assets to foreign exchange is one way pension fund managers can help solve the widely predicted global pension crisis, according to Bilal Hafeez, managing director, global head of FX strategy at Deutsche Bank.
Euromoney September 2006
Some unusual price action just before the Bank of England announced an increase in its key repo rate in August has got the conspiracy theorists muttering.
Euromoney September 2006
Euromoney September 2006
With gunslinging uni-directional strategies like George Soros’s a thing of the past, global macro may be coming back into fashion.
Euromoney September 2006
Asia’s hedge funds need more blue-chip assistance.
Euromoney September 2006
A Euromoney survey shows a disconnect between funds and prime brokers.
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
The world’s biggest EM portfolio fund manager is scaling back its tactical allocation to the asset class.
Euromoney September 2006
Euromoney September 2006
A series of rate increases by major central banks means that the equity markets can no longer rely on the excess liquidity in financial markets for support.
Euromoney September 2006
Valuations of sustainable stocks are becoming less sustainable as alternatives become conventional.
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
Are bad habits returning to corporate Korea?
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
Official reassures foreign investors following Pakistan Steel Mills fiasco.
Euromoney September 2006
Euromoney September 2006
As HSBC buys Banistmo for $1.8bln, analysts predict that the region is ripe for consolidation.
Euromoney September 2006
Euromoney September 2006
Venezuela’s president has threatened to nationalize telecom company CanTV in a row over workers’ pensions.
Euromoney September 2006
Euromoney September 2006
Caribbean wireless operator Digicel is proving to be one of the most sought-after borrowers in the emerging markets. Sudip Roy speaks to CFO Lawrence Hickey about what makes the company such a popular credit.
Euromoney September 2006
The Egyptian government is about to part with one of its hottest assets. Bank of Alexandria, the country’s third-largest bank, with a balance sheet of $6.5 billion, will find itself in the hands of a strategic investor. And the government will find itself a good few Egyptian pounds richer.
Euromoney September 2006
Euromoney September 2006
South Africa’s banks have to work harder for market share.
Euromoney September 2006
Euromoney September 2006
More companies set to float on Nairobi stock exchange before the end of the year.
Euromoney September 2006
Government takes advantage of foreign appetite for Turkish assets by approving privatization plan.
Euromoney September 2006
Azerbaijani company raises funds from outside the country by issuing bonds, a first from this country.
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006
The latest in a string of initiatives to encourage companies to list domestically has been unveiled.
Euromoney September 2006
Rato can take the lead in combating the “financial balance of terror”.
Euromoney September 2006
A new product, and a new law, could herald the beginning of institutional investment in global markets.
Euromoney September 2006
It’s not just Sarbanes-Oxley; changing global capital flows also threaten the US’s pre-eminent status as a financial centre.
Euromoney September 2006
The point of hedge funds is to produce returns even in a down market. Self-styled long/short funds must not allow themselves to become long-only.
Euromoney September 2006
Will US issuers and investment banks finally learn to love covered bonds?
Euromoney September 2006
Emerging market CFOs need to grasp the benefits of a proper hedging strategy.
Euromoney September 2006
Investors can’t get enough of real estate. But property developers should get ready for the wall of money to shift to emerging markets.
Euromoney September 2006
With sentiment and finances in good shape, it’s time for emerging market sovereigns to rethink their debt profiles.
Euromoney September 2006
The spending of the oil wealth will suck in imports, provide a medium-term economic boom and might swiftly and radically realign the global order of which countries boast what combination of real wealth, jobs and durable economic activity.
Euromoney September 2006
Inflation is set to feed into the US economy, with destructive effects. But the beginning of the process won’t be the consumer slowdown that so many expect.
Euromoney September 2006
Reports of the death of currencies as an asset class are surely exaggerated. Look for mean-reverting volatility to turn around the performance of currency funds.
Euromoney September 2006
The governing council appears to be split between raising rates incrementally, at 25bp a time, and the short sharp shock of a 50bp hike.
Euromoney September 2006
Anyone that has been in the presence of an investment banker in the past few years will have seen the all too obvious signs of CrackBerry abuse.
Euromoney September 2006
Euromoney September 2006
Delegates are warmly welcomed while protesters' placards are policed.
Euromoney September 2006
Once a dealer, always a dealer
Euromoney September 2006
Euromoney September 2006
Euromoney September 2006