China’s unreasonably high levels of excess currency reserves aren’t optimal for resource allocation, but finding a better use for those reserves will take time, says the governor of the People’s Bank of China, Zhou Xiaocuan, in an exclusive interview with Euromoney.
Peter Antico, global head of G10 FX at Bank of America Merrill Lynch, has left the firm, according to people familiar with the situation.
Zhou Xiaochuan is governor of the People’s Bank of China (PBC) and a member of the Chinese Communist Party Central Committee.
Australia has struck it rich, and lucky, as it has used its natural resources to benefit from the China spending boom.
Bankers and corporate treasurers discuss how best liquidity can be safeguarded in a world of wider regulation and broadening markets.
With a nimble approach to business and a track record of riding out storms in the Russian financial system, it is one of the country’s few bank success stories.
Launched in June, Russian Direct Investment Fund (RDIF) is an important part of the drive to modernise and diversify the Russian economy.
Ecobank has become the most widespread bank in Africa.
The results of six of Turkey’s biggest listed banks are starting to show the pressures they are under.
Over the past year Romania has staged a surprise recovery, thanks to careful political stewardship and workers’ willingness to accept swingeing austerity measures.
Macro headwinds, regulatory aggression, competition and new funding structures herald a shake-up in Turkey’s banking sector.
A Silicon Valley-style venture capital industry centred on Moscow might be unlikely, at least for now.
Related-party lending is at the heart of the problems in Russia’s banking system.
No bank is as readily associated with food and agriculture finance as Rabobank.
Farmland prices in the US have been steadily increasing over the past five years.
US agriculture generates profits of nearly $100 billion a year.
During the 2008 crisis, when Citigroup was accepting its bailout from the US government there were rumours circulating around Latin America that the bank would be forced, for either regulatory or capital-raising reasons, to sell Banamex.
While much of the financing needed to support sustainable production of agriculture will come from commercial lenders and investors, another important group is the multilaterals.
Argentina’s capital markets have become much more active this year, as the country’s economy booms and foreign investors turn to it in the belief that it offers investment opportunities.
Citigroup is pinning its global strategy on the emerging markets and holds high hopes for its Latin America business.
Blessed with some of the continent’s most fertile land, Ukraine is of enormous interest to agribusiness.
Brazil’s government has not shirked from competitive devaluation policies.
A wave of agricultural land purchases by Middle Eastern investment groups in emerging markets is causing disquiet among governments, NGOs and development institutions.
Separating the wheat from the chaff is more than just a popular idiom for some Macquarie employees.
While FICC, flow and corporate finance volumes languish, structured products and the equity derivatives that underpin them are enjoying robust growth.
Feeding the world is the most pressing issue facing society.
Vale is one of the world’s leading mining companies, with activities in 38 countries generating record results.
It seems unlikely new political freedoms in the Middle East could bring greater economic empowerment.
The Asean region could be the world’s sixth-largest economy but its financial systems are far from homogenous.
The buoyant Thai economy kept motoring on through the political disturbances of the past year.
The pat excuse for volatility striking markets in August is that the investment heavyweights are on the beach.
New entrants to Asia’s crowded brokerage market are spending heavily in the belief that committing fully to the region is the only way to survive.
Egypt’s top bankers took extreme measures to ensure that the country’s financial infrastructure did not break down as the Mubarak government fell.
The accusations made by Muddy Waters in its original and subsequent reports on Sino-Forest (also known by its stock ticker TRE) are too detailed and extensive to be reproduced here; interested readers should seek out the research, which is freely available on the Muddy Waters website.
Greece remains the crux of the problem for investors in the eurozone.
Some of China’s wealthiest people are banding together to use their money and local knowledge to invest in the country’s growth businesses.
Waleed Al Muhairi, COO of Mubadala, speaks about building a $27 billion state investment vehicle focused on developmental as well as financial returns.
While regulators’ attention has focused on those that are too big to fail, the financial institutions in Europe that face the sternest challenge might be those that are too small to get funding from investors.
The euro crisis has already resulted in the region’s country risk scores falling by a greater margin than the Asian economies in 1997.
The fall of the multi-billion dollar Sino-Forest Corporation is merely the most prominent show in the overseas-listed China stock scandal circus, as a colourful cast of auditors, corporate executives, exchanges, investors, regulators and short sellers argue over who’s to blame and what can be done about the alleged frauds and misdeeds now coming to light.
The summer of turmoil in the eurozone has cemented the transition of the region’s sovereign debt sector into one large and volatile credit market.
Spending state oil revenues on prestige stakes in western brands no longer fits so well with the political climate in the Middle East.
THE ARAB-NATIONALIST old guard that hung on to power for 40 years or more is falling.
The economy has been brought to a near standstill by domestic and regional political turmoil, but the country’s banks report rising deposits and profits and feel they can ride out the crisis.
The political unrest in Bahrain has adversely affected banks and their customers.
For all the policy decisions of the past three years, nothing has been done to address the fundamental problems facing the economies of the developed world.
When Bank of America’s share price collapsed last month, most equity analysts blamed the sell-off on investors taking fright at the prospect of a double-dip recession in the US that might further impair damaged housing assets on the bank’s balance sheet that it might not have adequately written down yet.
When the financial crisis began in 2007, it was presumed that emerging markets too would suffer.
These requirements to prevent an economic crash highlight a second new aspect of the fear of a double dip now gathering among investors: that developed-world economies are close to stalling at a time when policymakers are close to running out of tools to support them.
Banks are trying, and most are struggling, to come to terms with the triple threat of moribund markets, bigger capital requirements and changes to their business strategies inflicted by both regulators and the fallout from the sub-prime crisis.
You have to feel sorry for Jean-Claude Trichet.
For three years, policymakers have failed to address the root problems of the financial crisis.
There’s been an inversion in the natural order of the credit world in the past 18 months.
If Europe’s sovereign debt problem is heading to a decisive crisis moment, it seems that it must resolve itself either through some form of greater fiscal union or a break-up of the single currency that, if disorderly, could easily be even worse for the global financial system and economy than the aftermath of the Lehman bankruptcy.
UBS credit analysts point out that banks in the eurozone have deleveraged far less aggressively than lenders in the other two most troubled jurisdictions in the financial crisis, the US and the UK, having already been among the most leveraged and wholesale dependent going into it.
While the equity markets fell hard between early July and August, since then they have recovered slightly while remaining highly volatile, regularly rising and falling by between two and four percentage points in a single day.
As Euromoney went to press, the bailout deal agreed by European heads of state for Greece on July 21 looked at risk of unravelling over a squabble arising from other countries, including Austria and the Netherlands, objecting to the private side deal by which Finland had appeared to extract from Greece cash collateral to be put against its share of commitments.
It is clear that the banks that paid huge sums to financial engineers to fill their balance sheets full of toxic waste stopped digging their way into that hole rather quickly after the shock of 2007 and 2008 and have spent the time since trying to dispose of assets and garner the financial wherewithal to write down or at least reserve against those they can’t sell.
Lurching falls in financial markets over the summer betray investor fears that begin with doubts over governments’ inability to manage their debts.
It is now more than four years since the financial market crisis broke out with the wholesale collapse of the US mortgage-backed securities market in the summer of 2007.
Before the US sovereign downgrade by sent the risk-on trade into a decline, commercial real estate had made big progress in cleaning up its act.