September 2010
| Euromoney September 2010 Gary Gensler is on a mission to make the CFTC the world’s most influential financial markets regulator. He wields an unprecedented mandate to interpret the statute book and thereby shape the future of banking. But his former colleagues in the banking industry claim his quest for power is based on personal ambition, causing him to ride roughshod over their reasonable opinions and creating a template that will bring unnecessary hardship to the financial industry and the broader economy. Hamish Risk interviewed the man many bankers call the “most dangerous man in finance”. |
Euromoney September 2010
US states and cities are facing a crisis. Budget shortfalls from declining tax revenues and increasing debt are becoming insurmountable. A swift end to the recession cannot be relied upon to solve their problems. Unless tough decisions are made, and soon, the crisis facing the states could make the ClubMed meltdown seem like a vacation. Helen Avery reports.
Euromoney September 2010
Ever since the sub-prime crisis, global banks have been looking for the big idea that will replace revenues lost with the demise of the structured-finance era. Now they think they’ve found it. Emerging market to emerging market business, they believe, will drive growth for years to come. Where government deals lead, so the private sector and the banking industry will follow. It’s not just about headline M&A deals; it’s every part of a bank’s business, from selling equity to trading bonds. Perhaps the toughest task of all will be to position their own banks’ infrastructure to take full advantage of the new flows that bypass the traditional hubs of global finance. In this brave new world, as Sudip Roy reports, bankers are just as likely to shuttle between Beijing, Moscow and São Paulo as they are from New York to London and Tokyo.
Euromoney September 2010
Renaissance Capital’s ambition is to become the world’s pre-eminent emerging markets investment bank. The economic ties that link Asia, Africa and all the states of the former Soviet Union are a new focus. Can its clarity of purpose help RenCap usurp its global competitors? Elliot Wilson reports.
Euromoney September 2010
Eleven banks gathered in Agricultural Bank of China’s offices in early April to plan in an atmosphere of mutual suspicion how to complete an extremely difficult task. The challenge: to sell to investors what was thought of as China’s weakest big bank, to a timetable calling for unprecedented swiftness, against a backdrop of worsening global market conditions. Lawrence White reports from Beijing, Hong Kong and Shanghai on the story of the world’s biggest-ever IPO.
Euromoney September 2010
Funding costs are rising and the markets periodically shut down. But regulators want you to raise more and to hold more short-term liquidity that you can’t reinvest at a profit. You don’t know how regulators will classify your risk assets or how much capital they will require you to hold. But it will be more than you have. Raising it will cost more than you can earn as a return on it. Fancy a challenge? Become a CFO. Peter Lee reports.
Euromoney September 2010
With some $1.4 trillion of commercial real estate loan maturities looming over the next four years and traditional funding markets still in intensive care, CRE recovery is entering a critical phase in the US and Europe. However, cash-rich domestic buyers are already driving regional growth in Asia and are cherry-picking top assets in the west. Joti Mangat reports.
Euromoney September 2010
Asia’s property markets avoided the worst of the global financial crisis and Chinese buyers are leading the way in global commercial real estate turnover, even as the country’s domestic property market struggles with the fallout from overheating. Joti Mangat reports.
Euromoney September 2010
Euromoney September 2010
China’s hugely successful growth-at-all-costs economic strategy is reaching crisis point. The increase in domestic consumption that would help sustain high growth, is laggardly and its political leaders fight shy of pursuing the radical policies that would boost it. Elliot Wilson reports.
Euromoney September 2010
The DBS chief executive is developing a more focused take on his bank’s traditional pan-Asian aspirations. Singapore, India and Greater China are the key growth points, concentrating on commercial banking (especially for SMEs) and wealth management. Chris Wright reports.
Euromoney September 2010
Government officials hope that international investors will look afresh at Indonesia. Susilo Bambang Yudhoyono’s government made history with its re-election. It is using a strong popular mandate to tackle corruption and bureaucratic shortcomings head-on. Eric Ellis reports from Jakarta.
Euromoney September 2010
The flotation of two subsidiaries of the Malaysian state oil company Petronas raises hopes that the parent company may list. This would help the profile of Malaysia’s equity market but could also weaken Petronas’s role as the source of almost half of state revenues. Chris Wright reports.
Euromoney September 2010
With a new administration making the right noises about reform, the banks cleaning up their balance sheets and abundant capital market liquidity, the mood in Manila is optimistic. Locals feel their country might get its due, but it won’t be easy to effect lasting change. Lawrence White reports.
Euromoney September 2010
Projects such as an elite management school, a Moscow technology park, a nanotechnology fund and plans to turn Moscow into a global financial centre are all designed to move Russia away from dependence on energy and metals productions. How successful will they be? Elliot Wilson reports.
Euromoney September 2010
Against the odds the sector has weathered the economic downturn and is now poised to show healthy growth as the country emerges from recession. Guy Norton reports.
Euromoney September 2010
Managers at Austrian bank RZB and its central and eastern European subsidiary, Raiffeisen International, hope that a merger between the two will help maintain its position as a market leader in the region. Sudip Roy talks to Herbert Stepic, who will lead the newly merged entity.
Euromoney September 2010
When their traditional German investor base was blown away by the financial crisis, sovereign funding officials in central Europe had to adjust to a world of hefty spreads and hard work. Two years on, their efforts are paying handsome dividends. Lucy Fitzgeorge-Parker reports.
Euromoney September 2010
The country’s banking system breezed through the global financial crisis with an ease few thought possible. Its economy is likely to boom as a trading hub for the region. It is no wonder banks such as HSBC are looking to increase their presence. Nick Lord reports from Istanbul.
Euromoney September 2010
Turkey’s relatively strong economic performance looks set to be sustained if fiscal self-discipline and sound banking practices are maintained. Euromoney’s roundtable examines the factors in the country’s favour and potential weaknesses.
Euromoney September 2010
Governor Sheikh Salem Al Sabah is leading efforts to deal with the chaos left from years of property and stock speculation. But as Dominic O’Neill asks at the central bank’s office in Kuwait, is the clean-up anywhere near complete? Is structural change possible?
Euromoney September 2010
Ambitious plans for international financial centres in the Gulf states of Dubai, Qatar and Bahrain that would be hubs for financial services in a broadly defined region are still a long way off being fulfilled. Dominic Dudley looks at the likely outcomes.
Euromoney September 2010
The country’s banking reforms are going well and attracting regional interest. But western banking groups remain largely excluded because of Bush-era sanctions. Are they missing out on an incipient boom market? Nick Lord reports from Damascus.
Euromoney September 2010
HSBC’s purchase of South Africa’s Nedbank will offer big advantages for both partners. HSBC will gain it first substantive presence in Africa – and not just South Africa – and Nedbank will draw on HSBC’s global links and know-how. Nick Kochan reports.
Euromoney September 2010
Like Standard Bank, its better-known rival, South Africa’s FirstRand has seen the advantages of links with the burgeoning Asian markets, notably through a tie-up with Chinese bank CCB and a direct presence in India. Nick Kochan reports.
Euromoney September 2010
In August 2009 the governor of the Central Bank of Nigeria announced that he was removing the top management of five leading Nigerian banks as part of a bailout package. More bosses were subsequently thrown out. About 200 bankers and investors are now facing criminal investigations. Here for the first time, Sanusi explains to Nick Kochan why he intervened.
Euromoney September 2010
Across Africa, French leadership in banking is being replaced as Moroccan banks expand south of their borders, reviving historical political influences and ancient trade routes. Are these dreams sustainable or are they adventures heading towards disaster? Dominic O’Neill reports from Casablanca.
Euromoney September 2010
The bank’s chief executive says it has little interest in risky opportunities in foreign emerging markets when it is based in the world’s strongest emerging market – one it fully understands. Rob Dwyer reports.
Euromoney September 2010
Brazilian structured credit based on such underlyings as consumer loans, auto finance and trade receivables is in rude health but the underdeveloped RMBS and CMBS market will only take off with greater supply. Even then, investors may be wary of buying it. Rob Dwyer reports from São Paulo.
Euromoney September 2010
Bank of America Merrill Lynch has become one of the top-five investment banks in Latin America in just two years. There are plans to double revenues over the next three. In its new role as a universal bank, will BAML be able to compete with the international banking incumbents? Helen Avery reports.
Euromoney September 2010
Mexico’s investment banking climate is improving after some big M&A deals and the end of an almost two-year drought in IPO transactions. Jason Mitchell reports from Mexico City.
Euromoney September 2010
Capital markets development in the Caribbean has hit the buffers because of the limited size of individual economies. More inter-state cooperation and integration is a vital precondition of growth. Jason Mitchell reports.
Euromoney September 2010
Corporate responses to the financial crisis are forcing banks with liquidity management services to come up with new tools and techniques. Clients are demanding more visibility, control and optimization.
Euromoney September 2010
Banks must cope with unreliable market access; Weak loan demand eases funding pressure
Euromoney September 2010
Long-dated financing set to be competitive edge; Revenues tested as hedge funds have tough year
Euromoney September 2010
JPMorgan to shut its commodities prop desk; Potential impact on trading profits
Euromoney September 2010
Risk-free nature of government bonds in doubt; Regulators’ continuing trust in his paper under challenge.
Euromoney September 2010
Leading investment adviser says finance industry must generate change from within
Euromoney September 2010
Bolt-on acquisitions and hires a good start; Test will be when markets heat up
Euromoney September 2010
Creditor bail-ins mooted; Survival of LT2 in question
Euromoney September 2010
Spot trading has risen 50% in past three years; Non-bank participation increases
Euromoney September 2010
Labelling scheme to boost confidence; Bank support is hobbling market
Euromoney September 2010
Global study shows large project delays
Euromoney September 2010
Fails lower but still persisting; Are broker dealers profiting from fails?
Euromoney September 2010
Tech upgrades bearing fruit; Regional competition for liquidity among exchanges
Euromoney September 2010
Broker translates Chinese analysts’ thoughts; Coverage from chicken feet to Smart Grid
Euromoney September 2010
New derivatives exchange claims pan-Asian hub status; No shortage of competition
Euromoney September 2010
Singapore encourages hedge fund start-ups; Billarook sees regional competition intensifying
Euromoney September 2010
Flurry expected in Q4; Investors seek high-yielding structures
Euromoney September 2010
Metrofinanciera takes advantage of new law; Seeks US Chapter 15 protection
Euromoney September 2010
Peruvian transaction tax hike a problem
Euromoney September 2010
Better access offered to foreign institutional investors; IPOs a tempting prospect in Chile
Euromoney September 2010
Delayed aluminium and petrochemicals mega-projects move forward; Few alternatives for local lenders
Euromoney September 2010
Energy sector to lead the way; Increase in ratings enquiries
Euromoney September 2010
Equity cure to indebtedness ills; Holding company looking to list subsidiaries
Euromoney September 2010
Economic policies geared towards foreign investment; Sovereign Eurobond debut proves a smash hit
Euromoney September 2010
EFG Hermes acquires 65% of Lebanese lender; Group to expand in commercial banking in Levant, then Africa
Euromoney September 2010
TSE main investment focus; Privatization continues to flow
Euromoney September 2010
China is increasingly exposing its currency to the wider world but free convertibility still looks a long way off.
Euromoney September 2010
If regulators want to fix bankers’ pay, then pushing fair-value accounting is not the answer.
Euromoney September 2010
The choice of HSBC’s next chairman will tell you everything you need to know about the bank’s future.
Euromoney September 2010
Brazil’s stability is something bankers can’t help but get enthused about.
Euromoney September 2010
Broad agreements on regulatory harmony would help pan-Asian development and safeguard against potential market shocks.
Euromoney September 2010
In trying to make rating agencies liable for their structured finance opinions, Dodd-Frank could end up killing off the US ABS industry altogether.
Euromoney September 2010
There’s investment advantage to be gained from a rational macroeconomic viewpoint.
Euromoney September 2010
Euromoney September 2010
The trickle of proprietary dealers out of investment banks could become a flood in the coming months. This will provide a welcome diversification of sources of market risk-taking as traders end up at corporations and sovereign wealth funds, as well as the obvious destination of hedge funds. A broadening of the range of institutions actively trading across asset classes should help to offset a reduction in liquidity resulting from the death of the traditional bank prop desk.
Euromoney September 2010
The obvious port of call for a prop trader leaving a comfortable berth at a bank is a hedge fund. Another potential destination nowadays is a sovereign wealth fund. Most sovereign wealth funds are treading cautiously as they move towards making greater use of tradable markets but their sheer size means that their impact on liquidity could be significant, along with their potential contribution to bank revenues.
Euromoney September 2010
If central banks want to become macro prudential regulators, identifying asset price bubbles is necessary but not sufficient.
Euromoney September 2010
Market satisfaction with renewed US quantitative easing moves is as misguided as the Fed strategy itself. QE2’s perversions herald great pain farther down the road.
Euromoney September 2010
And so it has come to pass. Central counterparty clearing is to set to become, well, central to the financial markets landscape. It is seen as a cure to the concentration of risk that was held by the world’s largest trading firms in the lead-up to the financial crisis.
Euromoney September 2010
To commemorate their London centenary, RBC sent umbrellas to clients. No doubt that’s intended to show how they understand Brits’ obsession with the weather – and, multiplying the cliché, by implication the needs of their clients as well.
Euromoney September 2010
At the end of October, the winner of the prestigious Financial Times/Goldman Sachs business book of the year award will be announced at a swanky dinner in New York.
Euromoney September 2010
Euromoney September 2010
A CNBC report describes the trend in mainland China of hiring "fake executives": westerners recruited by Chinese companies to lend an image of cosmopolitan internationalism
Euromoney September 2010
Euromoney September 2010
Euromoney September 2010
Budding entrepreneurs wanting to make the really big bucks should look at the rewards for failure that persist despite the financial turmoil of recent years.
Euromoney September 2010
Euromoney September 2010
Euromoney September 2010
Published in conjunction with:
Banco Santander Totta --
Espírito Santo Investment --
Caixa - Banco de Investimento
