June 2008

AFRICA   Long ignored by mainstream investors and corporations, Africa has suddenly found itself in the spotlight. Its resilience in the recent credit crunch is just part of the reason.     An oil worker stands on the deck of ...

FOCUS / CREDIT DERIVATIVES As global securitization markets continue to deteriorate, the credit derivatives space is a beacon of light in a relatively dark landscape.   Long: The key is to determine which structures have been hurt which have stability. ...

CORPORATE TOOLBOX — SEPA Six months after SEPA’s introduction, banks are still trying to devise ways to encourage the businesses they serve to jump aboard. Additional optional services may provide the answer.   The introduction of the euro in January ...

SECTOR REPORT / ISLAMIC FINANCE The range of Islamic finance techniques is growing rapidly, but some are concerned that the most innovative products may be flouting shariah principles.   While conventional financial markets are still reeling from the credit crunch, ...

ANNUAL REPORT / STARS OF THE NEW RUSSIA   Making the most of their newfound spending power, Russia’s consumers are boosting the fortunes of the country’s banks and corporations.   With Russia’s economy fueled by petrodollars, Russian consumers are on ...

ANNUAL SURVEY / ISLAMIC FINANCE Global Finance selects the winners in a fast-growing area of finance that combines investing according to the tenets of Islamic law with modern financial products and systems.   Islamic finance is a system of ethical ...

CHINA     China's president Hu Jintao aims to improve relations with Japan.   Rescue workers on May 14 reached southwestern China’s Weixian county, the epicenter of an earthquake that shook cities across Asia and damaged 70% to 80% of ...

MIDDLE EAST     Dubai: Financial center is attracting global banks hungry for regional growth . New York-based Citi moved one of its top bankers to Dubai last month, while Standard Chartered of the United Kingdom opened the largest trading ...

INDIA     India's construction industry promises rich returns. Bharti Airtel, India’s largest wireless company, with 62 million subscribers, is in talks with MTN of South Africa to acquire between 51% and 100% of that company. The deal could potentially ...

BRAZIL     Mantega: Central bank reserves will not be used for wealth fund. After years of speculation over when and if Brazil would achieve a coveted investment-grade rating, the move finally caught almost everyone by surprise. Standard & Poor’s ...

AFRICA     Kaberuka: Cereal export limits imperil 150 million Africans' lives. Food shortages continue to cause severe disruption in many African countries, prompting the African Development Bank (AfDB) to pledge up to $1 billion in subsidies and grants to ...

NEWS     London-based Focus Capital last month introduced a hedge fund that aims to achieve absolute returns from emerging markets irrespective of market conditions by investing in multiple asset classes. The Emerging World Fund diversifies risk by using a ...

RUSSIA     New president, old habits: Russia's overt display of military strength. Dmitry Medvedev was sworn in as president of Russia on May 7—and, according to plan, the next day former president Vladimir Putin became prime minister. The new ...

COMPANY TO WATCH: TURK TELEKOM/TURKEY Türk Telekom, the country’s former fixed-line phone monopoly, is expanding rapidly into mobile phone and Internet services. The company has 5 million broadband Internet customers and expects that total to reach 9 million by the ...

DR NEWS   Depa, a Dubai-based provider of interior contracting services, selected Deutsche Bank as depositary institution for its global depositary receipt program. The company raised $432 million in the form of shares and GDRs, including the granting of an ...

COUNTRY REPORT / GREECE   Steady domestic economic growth and significant inward investment are helping Greece battle the headwinds of a tough global economy.   Buoyed by several booming industries, economic growth rates above the European Union average, strong investment ...

COUNTRY REPORT / NIGERIA Despite vast hydrocarbon reserves and a government committed to economic diversification, Nigeria still faces tremendous problems. A resurgence in its banking sector may help accelerate future progress.   Oil is Nigeria’s lifeline, accounting for some 80% ...

GLOBAL       Stressed out: Concern over financial risks has grown sharply.   One of the most extensive surveys of global banks’ attitudes toward risk has found that liquidity and credit spreads continue to keep bankers awake at night. ...

GLOBAL     Slim pickings: Banks are less keen on lending.   As the fallout from the subprime debacle continues, companies are finding they can no longer rely on their long-standing banking providers for credit. In fact, according to a ...

  MERGERS & ACQUISITIONS     The volume of worldwide mergers and acquisitions totaled $730 billion in announced deals in the first quarter of 2008, a decline of 24.2% from the first quarter of 2007 and the lowest level for ...

FOREIGN EXCHANGE     The dollar rose to a two-month high against the euro last month after the Federal Reserve signaled a pause in its easing cycle, and European economic data came in weaker than expected. While the greenback is ...

GLOBAL EQUITY/DRS   China was the world’s biggest market for initial public offerings last year, but its IPO market has shriveled following a sharp drop in stock prices since last October, while the long-dormant market in Thailand is coming back ...

CORPORATE DEBT     The latest bank lending surveys by the Federal Reserve and the European Central Bank (ECB) demonstrated that credit standards have tightened further, indicating that the credit crunch hasn’t lost its bite, analysts say. The tightening of ...

ARGENTINA   Fernandez: His appointment unsettled financial markets. As he slips into the seat occupied by four others in less than a year, Argentina’s new economy minister, Carlos Fernandez, faces the unenviable task of restoring confidence in his government’s economic ...

PARAGUAY     Lugo: Promising to improve Paraguay's international standing. Paraguayan president-elect Fernando Lugo, a former Catholic bishop, is the newest member of Latin America’s growing list of left-wing leaders. He faces serious challenges in a country that, until his ...

UNITED STATES     Naimon: Companies are keen to use third-party finance. As the solar energy industry struggles to improve its photovoltaic technology, a viable financing model may provide the missing link to the market. Almost two years ago, HSH ...

UNITED STATES/IRAN     Mancuso: Warns banks to be aware of their clients' activities. Mario Mancuso, head of the US Bureau of Industry and Security (BIS), sent global bankers scurrying last month to check that they were doing no trade ...