May 2014

The fight has just begun, as newly enacted Fed rules start to cramp long-accepted operating styles of global banks. The banks are weighing what to do about it—as are global policymakers.

An escalation of sanctions on Russia stemming from its actions in Ukraine could pressure Russia’s overall economic growth. Some companies, particularly those perceived to have close ties to president Vladimir Putin and his inner circle, may have difficulties tapping the international capital markets for funding.

NCB Capital, a major Saudi Arabian investment bank, named Sarah Al-Suhaimi, an accomplished asset manager, as its new CEO. She is the first woman to head an investment bank in the kingdom. The Saudi government owns part of National Commercial Bank, which controls NCB Capital.

Leila Heckman, head of international equities at Lebenthal Asset Management, joined us for our monthly Salon to discuss the increased acceptance of global diversification among portfolio managers and the reasons behind her approach to investing.

Myanmar’s chairmanship of the Association of Southeast Asian Nations (Asean) is expected to boost the country’s diplomatic and economic prospects.

Recent economic reforms in Mexico and upgrades by rating agencies have strengthened Mexico’s position in global markets. The country’s economic performance is improving as well.

Only two weeks ahead of the April 9 parliamentary elections and under pressure from a billion-dollar lawsuit, the Indonesian government announced it would terminate some 67 bilateral investment treaties—which regulate investment in the country by foreigners—as they come up for renewal.

Despite a pause in February, when the number of share purchase authorizations declined by 32% over the same period a year ago, share buybacks are still very popular on Wall Street.

Corporate credit-rating upgrades in the first quarter of 2014 outnumbered downgrades in Europe, the Middle East and Africa for the first time since 2008, according to Moody’s Investors Service. The rating agency says positive credit trends in the EMEA region are likely to continue through 2014, despite potential negative events in Russia and Ukraine.

Inflation in the eurozone slipped to 0.5% at an annual rate in March, its lowest level since 2009. The persistence of low inflation prompted policymakers to discuss quantitative easing (QE) and a negative deposit rate, putting some downward pressure on the euro.

Led by the Asia-Pacific region, global proceeds from initial public offerings totaled more than $34 billion in the first quarter of 2014, an increase of 77% from the same period a year earlier, according to Renaissance Capital

Mergers and acquisitions involving Russian companies, including Morgan Stanley’s planned sale of its global oil-trading unit to Rosneft, are threatened by Western sanctions on Moscow over the Ukraine crisis.

“Bob Diamond exists to make money for Bob Diamond, whatever he says. This isn’t to help develop Africa, it’s to make money for Bob Diamond and his partners.”

Brazilian Finance minister Guido Mantega may be dealing with both internal and external headwinds, but he—and Brazil—are still standing.

When, on March 18, longtime Canadian Finance minister Jim Flaherty unexpectedly announced his resignation, few were perhaps more surprised than his soon-to-be successor, Joe Oliver, the 73-year-old minister of Natural Resources.

Slovakia has known rapid and unexpected changes in its political fortune in its 20 years as an independent country.