December 2014

Seeking A New Paradigm | Emerging Markets Growth
To ascertain whether emerging markets is an obsolete term, we must first understand what it means.

Emerging Markets Trade Finance | Special Report
Although barriers to trade have declined, gaining access to trade finance is challenging in some markets.

At a roundtable in Istanbul in September, leading figures from Turkish banks, including the deputy governor of the Central Bank of Turkey, came together to discuss developments in the economy and financial sector.

Pakistan | Frontier Markets Focus
Pakistan’s ability to attract both foreign direct and domestic investment fell dramatically during the past decade. Some of the reasons why still apply.   

Global Finance held its 18th Annual Best Banks Awards ceremony in Washington in October—during the Annual IMF/World Bank conference. Honorees from around the world were present to accept their awards.

The market in over-the-counter derivatives is shrinking, while exchange-listed futures and interest rate swaps traded on new swap execution facilities (SEFs) are setting records. New regulations and capital requirements are squeezing bank trading desks and forcing more derivatives trading onto exchanges and centralized clearing.

Annual Awards
In the final installment of a two-part series, Global Finance recognizes the best corporate/institutional and consumer Internet banks globally and in six regions, as well as an overall winner. We spotlight the financial institutions around the world that are leading the way in digital banking services that generate strong business results.

Global Finance held its 11th annual Internet Banks Awards dinner in New York in November. Leading financial executives from around the world were present to accept their awards and honor other recipients.

Website design is becoming more important than ever, particularly in areas such as ease of use, security features, integrated functions and aesthetics.
 

How has Internet banking evolved in the last year or so?

What is the key consideration in adopting a digitized banking strategy?

How significant is a digitized, simplified, single platform to trade finance?

Global Finance sat down with Tom Speechley, a partner in emerging markets private equity investment firm Abraaj Group and CEO of Abraaj North America, to discuss key markets for investment, future EM stars and the lure of cities as investment destinations.

Qatar | Country Report
Qatar shows no signs of slowing its internal and external investment. The IMF says Qatar’s real GDP growth should average 6% to 7% in the medium term, supported by public investments, and will likely remain the fastest-growing in the region

Qatar | Country Report
The QIA, one of the world’s largest sovereign wealth funds with $170 billion of assets, was initially rebuffed, but regardless of the outcome of the deal, it has other fish to fry.

US & China | Milestones
“This is a major milestone in the US-China relationship, and it shows what’s possible when we work together on an urgent global challenge.”

Hungary | Milestones
Hungary has witnessed the biggest street protests since the current right-wing government came to power in 2010, against the government’s plans to tax Internet traffic, the world’s first such levy.

Venezuela | Milestones
Venezuela, home to the world’s largest oil reserves at 298 billion barrels, is having a tough time getting the stuff out of the ground.

Netherlands | Milestone
As a part of the restructuring agreement between ING, the Dutch government and the European Commission, ING agreed to several of what it called “bans,” according to an email sent by a company spokesman to Global Finance

China | Milestones
China will allow foreign firms to increase their ownership stakes in encouraged sectors and enter into previously protected industries, according to investment guidelines drafted by the National Development and Reform Commission.

Japan | Newsmakers
Just weeks after Haruhiko Kuroda, governor of the Bank of Japan, surprised the world with a bold plan to inflate Japanese assets and weaken the Japanese yen by buying 80 trillion yen ($680 billion) in Japanese bonds, exchange-traded funds and real estate investment trusts, prime minister Shinzō Abe upstaged him by calling a snap election for mid-December, two years ahead of schedule.

Tunisia | Newsmakers
Elections in Tunisia in October, which saw the secular Nidaa Tounes party (39.7%) narrowly beat the incumbent Islamic party, Ennahda (31.8% of the vote), were widely praised for being free and fair. Questions remain, however, about their democratic robustness.

Romania | Newsmakers
Iohannis defeated prime minister and Social Democrat leader Victor Ponta, taking 54.5% of the vote against 45.5%. So who is Iohannis?

Vatican | Newsmakers
René Brülhart, known as the “James Bond of the financial world” for his high-profile role in cases such as the return of assets from Saddam Hussein to post-war Iraq and the uncovering of the Siemens bribery scandal, has become chairman of the Vatican’s anti-money-laundering unit.

 

Infosys Strategic Vision
Omnichannel banking offers opportunities to engage deeply with customers, offer customized products, and deliver personalized service. Banks that realize the potential of omnichannel banking attract and retain digital consumers, while achieving long-term profitability.

India | Capital Markets
The rupee realizes international ambitions. The International Finance Corporation (IFC) sold its first rupee-denominated bonds in London in November to attract international investment in India’s infrastructure.

Q&A | Capital Markets
Saugata Bhattacharya is the senior vice president and chief economist at Axis Bank in India.

Foreign Exchange | Capital Markets
How to take the gaming instinct out of foreign exchange traders has become the order of the day, following last month’s imposition of $4.3 billion in fines on six global banks for manipulating currency benchmarks.

Canada & China | Capital Markets
Canada and China have agreed to support the increased use of renminbi in trade, commerce and investment between the two countries.

China | Capital Markets
In a major step toward opening China’s capital account, Hong Kong and Shanghai have linked their equity markets and abolished the cap on how much Chinese currency Hong Kong residents may purchase (or sell) daily.

European Banking | Trends
The degree to which the recent stress tests of big European banks by EU regulators lack credibility is becoming clear.
 

Venture Capital | Trends
Start-up companies and innovators in the Arab World have suffered from underinvestment and lack of technology infrastructure in recent years.

Corporate Tax | Management
Approximately 500 American companies operate in Argentina—but on November 3 that number abruptly decreased by one as the country’s tax authority, the Administración Federal de Ingresos Públicos (AFIP) revoked the company’s registration, accusing P&G of tax and accounting fraud.

Shareholder Activism | Management
Shareholder activism—when investors in a company use their equity as a lever to pressure management—is booming and will grow dramatically on both sides of the Atlantic through mid-2016