Emerging Europe

The firm has consistently proven itself in Chinese real estate in recent years, whether underwriting IPOs, advising on M&A, or making acquisitions in its own right. Chris Wright reports.

Axa Reim has an impressive track record of mining gems from unpropitious soil and has identified real estate sectors it feels investors should be entering now with an eye to a market upturn. Duncan Wood reports.

GE Real Estate has appointed Mark Hutchinson to be president of the newly created GE Real Estate International, covering operations in Europe and Asia.  

Some 190 IPOs seeking to raise $33.1 billion in capital have been postponed or withdrawn across the world so far this year, according to Dealogic.

Poland continues to be a leading source of private equity business in emerging Europe, with recent transactions demonstrating the country’s attraction from both a retailing and manufacturing perspective.

Bank chiefs in the region have much to cheer but can’t help feeling a little uneasy. They have no direct exposure to the sub-prime fallout, but have had to rethink their funding strategies. And while they see clear opportunities to grow, an economic slowdown could be looming.

Continuing problems are forcing firms to reconsider market timing, the balance between public and private funding and the importance of neglected sources such as retail and corporate deposits. Six specialists debate the issues.

<>

Today’s long-term rise in agricultural commodity prices is different from previous episodic spikes. Higher prices are having knock-on effects on companies in the sector, as well as on farmers and the poor, and causing a re-evaluation of business models. Peter Koh reports.

Central and eastern Europe are a key division to UniCredit’s future success. Comprising 20 countries, with a regional market share of about 18%, historically the bank has grown its presence more through acquisition than organic growth.

As Euromoney asks for his views on fair-value accounting, the European bank chief executive carefully sets down his fork in the plate of scrambled eggs before him, slumps back in his chair and rolls his eyes. The press relations lady squirms uncomfortably and leans across the breakfast table, whispering: “This bit is going to be off the record.”

The impact of global warming on agriculture is complicated. Although an increase in global temperatures of up to 2.5 degrees Celsius could help increase total agricultural production by improving growing conditions in some parts of the world, many of what are today the world’s poorest countries would experience a worsening of growing conditions and food security.

Commercial farmers have benefited from higher food prices but subsistence farmers in developing countries have missed out on the boom because they need to consume all their production themselves and do not have enough surplus to sell at market prices. Helping farmers in developing countries is crucial to increasing global food production and combating food inflation where it hurts the most. However, poor access to banking facilities is a barrier.

Questions abound over the future of the securitization business and the entire originate-to-distribute model.

Georgia’s ill-fated attempt to prevent the secession of South Ossetia and Abkhazia is set to cost the country billions of dollars, but financial backing from western Europe and the US should help to ensure that the country’s economy remains one of the most open and business-friendly of the states that were formerly part of the Soviet Union.

Commodities: Investors plough a new furrow in agri-finance

CLS has hired Roger Rutherford as its head of product management. Rutherford, who reports to Rachael Hoey, director of business development, joins from Icap’s EBS unit where he held several roles, including leading the EMEA sales team; he was also a key member of the team that launched EBS’s prime brokerage offering and more recently was spearheading the introduction of NDF trading on to the EBS platform. Many years ago, he was a voice broker at Marshalls.

Commodity prices will need to go higher again to prompt consumer and producer actions that bring them down.

Moscow private equity firm Mint Capital has taken a stake in beer restaurant chain Tinkoff Restaurants.

VTB’s ambition is to be a leading universal bank in Russia, with a strong balance of revenues from its retail, corporate and banking arms. But does it have the wherewithal to achieve those lofty goals? Guy Norton reports from Moscow.

The chief executives of 11 of the world's biggest banks discuss the lessons they have learnt from the global financial crisis, their concerns over a regulatory backlash, and how they plan to rebuild profitability in the toughest markets in history.

Global regulators are poised to introduce new rules to clamp down on the securitization industry’s worst excesses. But in doing so they could kill it off for good.

VTB, Russia’s second-largest banking group, continues to add to the array of western talent in its investment banking business. Its latest hire is Herbert Moos, who has been named as chief executive of VTB Bank Europe in London. Moos joins from Lehman Brothers, where he spent 14 years, most recently as chief financial officer for Asia-Pacific ex-Japan. Moos will be responsible for developing the investment business of VTB in London, Asia and the Middle East. He will report to Yuri Soloviev, head of investment banking.

The present round of bank reorganizations look as if they might not be as efficacious as leaving things well alone.

Many banks will become less-levered, more conservative, far duller institutions promising much lower and more utility-like returns to investors

Concerns about an economic slowdown now weigh on capital markets.

Lawyers around the world are readying lawsuits to file against banks that sold toxic products to investors. Which types of deals are likely to be the subject of the biggest payouts? And how will banks pay for them?

The growing trade links between Russia and Serbia are likely to lead to a greater Russian presence in the Balkan country’s banking sector. That is the view of Alexei Sytnikov, vice-president of Bank of Moscow, Russia’s fifth-largest banking group by assets, which has established a wholly owned subsidiary in the Serbian capital Belgrade with an initial investment of €15 million. "We believe that the probability of other Russian players entering the Serbian market is very high," says Sytnikov, who is responsible for Bank of Moscow’s international banks. He adds that all the prerequisites for Russian banks, most likely from among the top 30 players, are in place for them to look to set up subsidiaries in Serbia – strong economic growth, a relatively low level of competition in the financial services sector and a growing Russian business presence.