January 2010
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FEATURES
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Cash management debate: Show me the money
In a cash-scarce world, electronic bells and whistles take second place to systems and partners that help clients marshal their global liquidity as quickly and visibly as possible. Maximizing working capital throughout the supply chain is now a necessity, not a luxury. Clients and banks must change. -
Emerging Europe debate: Back from the brink
Emerging Europe had a tough 2009, but as a new year dawns central bankers across the region hope it will bring back economic growth. The debate about regulation and ring-fencing capital begins here as they discuss how to prevent the region from plunging back into recession. Interviews by Chloe Hayward. -
Foreign exchange debate: The illusion of normality?
Despite, or perhaps because of, the changing nature of the interbank market, liquidity has returned to most corners of foreign exchange. But uncertainties remain over quantitative easing, Japan and the recovery. The panel gathered at the end of 2009 to find we are still in uncharted territory. -
World Economic Forum: Governments losing battle against global deflation
The character of responses to the recession augurs badly for a sustained recovery. The right sort of domestic consumption stimulus has not been put in place in China – the country is racing for exports again. Other regions are ill-equipped to cope; a Japan-style stasis of deflation and growth looks to be just around the corner, writes Charles Dumas of Lombard Street Research. -
Greece tries to move forward
The country’s huge budget deficit and stagnant growth have spooked ratings agencies and investors, already unsettled by the Dubai debacle. But Athens-based bankers have faith in their new government’s ability to bring the eurozone’s black sheep back into the fold. Phil Moore reports. -
Parex splits up to safeguard its future
Latvia’s Parex banka is the one of the biggest victims of the financial crisis in central and eastern Europe. As its chairman tells Sudip Roy, it is pinning its recovery hopes on a good bank/bad bank strategy. -
Russia’s bite-sized sell-off
Regional airports, tanker operators and river shipping lines – the list of assets up for grabs in the latest privatization round is unlikely to send foreign investors into a frenzy. But fatter prey may be about. Angus McDowall reports. -
Kazakhstan cleans up after the bubble bursts
Investing in a Kazakh bank would be a risky, high-yield bet on a sustained global macroeconomic recovery. But some banks are already hoping to benefit from the country’s financial disasters. Dominic O’Neill reports from Almaty and Astana. -
Trade finance survey 2010: In world trade, banks turn out not to be the villains
Their problems have highlighted the importance of trade finance in maintaining the flow of goods. Laurence Neville reports on what is being done to sustain a vital economic function
OPINION
ALSO IN THIS ISSUE
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Asia’s best-managed companies have come out of the financial crisis in better shape than their peers. That’s no surprise: prudent gearing, transparency, good governance and clear strategy have characterized the leaders, highlighted in Euromoney’s Asia’s best managed companies poll. Chris Wright reports.
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Succession of deals in closing weeks; UK sentiment lags far behind
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Fears surrounding US will bolster demand; Gold ETFs boom, hedge funds also jump in
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IIF survey shows progress on risk governance, but compensation still a problem; Technology and data systems need overhauling
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The multi-billion dollar debt troubles of the Saad and Al Gosaibi groups have prompted growing international pressure on the Saudi authorities amid concerns that foreign creditors will be discriminated against in a restructuring. Mervyn Davies, the UK minister for trade and investment, travelled to Saudi Arabia in December to raise the matter of the two groups’ debt with central bank governor Muhammad Al-Jasser and finance minister Ibrahim Al Assaf.
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CDM set to encompass sectoral approach; China likely to corner chunk of trading revenues
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JPMorgan only one in top five in all categories; Goldman drops out of top 10 in M&A
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CME takes on upstart ICE; Clearing now open to banks and investors
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Corporate issuance expected to fall by 20%; Financial firms will dominate capital markets this year
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Hungarian bank OTP remains committed to central and eastern Europe despite operating in some of the region’s most challenging markets. The bank, which has a presence in nine countries in the region including Ukraine, Romania and Bulgaria, believes that growth opportunities outweigh the macroeconomic risks. "We believe that the economic convergence of the region should continue," says Laszlo Bencsik, chief financial officer. "Unit labour costs are still about 35% lower in central and eastern Europe than in western Europe. This difference will keep on fuelling investment and economic growth."
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Threat of unjustified regulation of FX persists; Market suffers from lack of strong lobby
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Domestic production a growing factor; State intent on building bigger gold reserves
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Leading banks launch new platforms; Volatile market presents challenges
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Rusal IPO finally given green light after listing delay; First biotech deal comes to market
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Caution and safety in numbers in 2009; Accelerating investment in Q2 continuing into 2010
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Revenues heavily weighted to OTC derivatives Worst-case guidance: JPM could face revenue loss of $3 billion a year
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WestLB and ING are committed; Project finance, capital markets main focus
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Two-thirds of banks and investors with an interest in Kuwait’s The Investment Dar (TID) approved a restructuring programme on December 24, allowing a deal to proceed.
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PIK deal shocks market; Market risks overshoot
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Uncertainty remains over how Dubai plans to finance its large debt burden.