September 2014

Events in Ukraine have changed the outlook for Russia. Now the country faces choices about its global role that could affect the rest of the world for decades. Which path will it take?

In this first installment of a two-part series, Global Finance identifies the top online corporate and consumer banks by country and then by region, according to product or service category.

Global Finance sat down with Brian Loughman, Fraud Investigation & Dispute Services (FIDS) Leader, EY Americas (formerly Ernst & Young), to discuss how greater regulation and increased efforts by countries to fight fraud are leading to greater demand for services by corporations around the world.

COUNTRY REPORT | EGYPT
Pressure is building on Egypt’s president, Abdel Fattah al-Sisi, to deliver economic gains. Falling investment and a sharp drop in tourist arrivals have weakened growth over the past three years. But a rapid return to pre-2011 expansion levels appears unlikely.

COUNTRY REPORT | TAIWAN
Taiwan’s bright fundamentals are underpinned by a revival in both export and import demand, but could a housing bubble be on the horizon?

ARGENTINA
The aftermath of Argentina’s so-called default on July 31 doesn’t at all resemble the catastrophe accompanying its earlier default in 2002, when the country was unable to repay $100 billion of debt and the economy collapsed, costing millions of jobs.

GHANA
The world’s second-largest producer of cocoa, is expected to ask the International Monetary Fund for help.

THE BRICS
Brazil, Russia, India, China and South Africa now have something more in common than rapidly developing economies that have recently stalled. In July they gave life to the New Development Bank (NDB), the first multilateral institution controlled by developing countries.

UNITED STATES
In its 2013 report to Congress, the Export-Import Bank of the United States says that its “overriding mission is to create and sustain American jobs by supporting US exports.” But that very mission is under threat, with House Financial Services Committee chairman Jeb Hensarling, among others, seeking to abolish the bank.

MANAGEMENT | TAX PLANNING
Gregory Wasson, president and CEO of Walgreen, says the company “concluded it was not in the best interest of shareholders to attempt to re-domicile outside the US” to cut its tax bill.

CAPITAL MARKETS | FOREIGN EXCHANGE
It is a changing world for FX traders. Regulatory uncertainty and low volatility are putting a damper on the foreign exchange market, with spreads narrowing by 20% already this year—to record lows.

CAPITAL MARKETS | MIDDLE EAST EQUITY
Riyadh, the Saudi capital, has already built a new financial district, named after King Abdullah, but its 42 new skyscrapers stand largely empty. That could change following the decision by the government in July to allow foreign financial institutions to invest directly in listed shares, starting in the first half of 2015.

CAPITAL MARKETS FOCUS | MERGERS & ACQUISITIONS
Mergers and acquisitions in 2014 are being announced at the fastest pace since the financial crisis of 2008–2009, but broken deals are also setting records for the same period.

MANAGEMENT | PENSIONS
As people live longer, many companies are discovering that they have to pay pension benefits to retirees for longer than they had expected. Insurance companies are stepping in with new products that can help take this “longevity risk” out of corporate defined-benefit pension plans.

TRENDS | DIGITAL CURRENCIES
Ecuador is gearing up for the launch of a new digital currency that will go into use as early as October alongside the US dollar, the country’s official tender.

TRENDS | SNAPSHOT: PANAMA

CAPITAL MARKETS FOCUS: MERGERS & ACQUISITIONS
Companies around the world are stepping up their due diligence on mergers and acquisitions involving Chinese counterparties, after several major deals have been called into question as a result of Peking’s widening corruption probe.

TRENDS | US BANKING

INDONESIA
Self-made businessman and former governor of Jakarta, Joko Widodo won Indonesia’s presidential election in July, marking the first time a candidate without ties to the military or a powerful political family has won the position.
 

BRAZIL
Brazilian president Dilma Rousseff will be running for a second term in October, and if she can keep her momentum going, there’s a good chance she’ll win.

UNITED KINGDOM
With a seminal speech at the beginning of August, London’s larger-than-life mayor, Boris Johnson, positioned himself as a candidate for the future leadership of the Conservative Party.

SOUTH KOREA
Appointed as part of Park’s cabinet reshuffle——Choi had been on the job only a few days when he unleashed a $40 billion stimulus plan to revitalize the country’s faltering economy, a package equivalent to almost 3% of GDP. 

SWEDEN
Known as a credible and pragmatic politician, the leader of Sweden’s Social Democratic party, Stefan Löfven, is gearing up to become the country’s next prime minister.