Central bank heads were once a predictable and conservative lot. Now they’re swooping in, buying huge amounts of securities and rolling out unorthodox policies to avert danger.
More than a decade ago, the Fed tried to pump life into the faltering US economy. In 2008, the financial markets crashed. There is a connection.
What’s irking central bankers is not that they have bought too many stocks or bonds. Rather, it’s that they haven’t bought enough.
Real-time payment remains the holy grail of global transaction processing. And like the grail, it remains elusive.
Regional Report | Latin America
The large economies on the east coast of Latin America—Brazil, Venezuela and Argentina—are slumping badly. Things are far different out west.
After years of stagnation, Jamaica’s economy appears to be headed up. Debt reduction is a good start.
Islamic Finance | Bank Negara’s decision to halt issuing shariah-compliant bonds has left a big hole in the Islamic debt market. Filling the void will take time.
Regional Report | As relations between Cuba and the United States get friendlier, the economic outlook of the island is also improving.
Neil Shearing, chief emerging markets economist at Capital Economics, visited Global Finance on September 10, just as Standard & Poor’s cut Brazil’s public debt to junk level. We asked him about the outlook for that country and other emerging markets.
IMF/WORLD BANK ISSUE
Global Finance’s annual evaluation of the work of the world’s central bankers found some stellar performances, and some dismal ones. The toughest challenge for many: propping up falling prices.
No region of the world has generated an average annual growth rate of 5.5% over the past 20 years—except Africa. In sub-Saharan Africa, GDP has expanded by 40% since 2009.
As Africa improves transport and telecommunications links, it’s creating countless opportunities for foreign direct investment.
Emerging nations are replacing the Americas as the continent’s largest trading partners.
African Gems | Alexandria Container and Cargo tops Global Finance’s first annual ranking of the 25 Best-Performing Companies in Africa.
African nations can no longer get by on mineral wealth and commodities alone—and they know it.
Global Finance’s First Annual List Of Who’s Who In African Finance.
Country Report | Turkey is roiled by political uncertainty and slowing growth ahead of November elections.
Short-term risks have not dimmed the country’s economic prospects. That may explain why FDI from Asia and Gulf nations is surging.
Saudi Arabia needs a strategy to diversify its oil-based economy. Can change come fast enough?
With the country’s oil revenue set to slide by about 30% this year, privatization is a largely untapped resource.
Arabia is meeting with some success in its efforts to entice foreign investors to six new economic cities in the kingdom.
Guatemala’s political turmoil, with parties deadlocked in Parliament, a runoff election looming and corruption scandals exploding, means the government will operate in a kind of suspended animation until 2016.
The Indian government headed by prime minister Narendra Modi is betting big on the reform and revamp of state-run banks over the next four years to support the country’s 8%-plus GDP growth.
Eni, the Italian energy company that was unsuccessful in finding exploitable hydrocarbons in Cyprus, now has a major find on its hands elsewhere.
“An economic windfall.” That’s how the World Bank’s chief economist for the Middle East and North Africa, Shantayanan Devarajan, characterized the boost to the Iranian economy from the lifting of sanctions in the wake of the nuclear deal struck with the permanent members of the UN Security Council.
Newsmakers | US
In the United States, a real estate developer turned politician is stealing the thunder of many more-seasoned statesmen.
Newsmakers | United Nations
When the United Nations Global Compact was launched 15 years ago at the New York Stock Exchange, Lise Kingo was entrenched on the corporate responsibility frontline in Europe.
Winterkorn is forced to resign after it was revealed the company was guilty of manipulating diesel emission tests.
Corporate Finance & Capital
Fixed Income | With this summer’s Greek debt crisis having abated somewhat and the European Central Bank (ECB) considering expanding its easy-money policies, US companies are rushing to the eurozone to issue debt at record-low interest rates.
Executive Pay | Since the global financial crisis of 2008, corporate boards have been under pressure to tie executive pay to performance.
Capital Outflows | The meltdown in China’s stock market this summer and steep falls in many emerging markets currencies led some investors to wonder if another 1997 Asian crisis was brewing.
Commodities | Oil prices have only slightly recovered from a new record low set at the end of August. But they are still 60% below their peak of 2014, which is putting pressure on US oil companies, with many pundits predicting a rapid overhaul of the industry.
Mergers & Acquisitions | Slowing growth and severe stock market falls have raised fears that China is nearing some sort of crossroads. Some economists believe that, owing to tight central controls, Chinese corporations won’t hit their expected growth targets.
FX Reserves | China’s foreign exchange reserves plunged by nearly $94 billion in August, the most ever in a single month, as the People’s Bank of China (PBoC) struggled to support the renminbi after devaluing the currency by 1.9%.
Card Processing | The United States is slowly catching up to the rest of the world in transaction processing, shifting from mag-stripe to more secure EMV payment cards.