Global news and insight for corporate financial professionals
Capital Markets | Foreign Exchange
The surging dollar, falling euro and plunging emerging-markets currencies had a record $32 billion negative impact on the earnings of companies in North America and Europe in the first quarter, according to Scottsdale, Arizona‒based FiREapps, which helps corporations measure and manage foreign exchange exposure.
Milestones | Zimbabwe
The demonetization of the Zimbabwean dollar began in June and holders of the near worthless currency have until September 30 to exchange it for US dollars.
Trends | Economy & Disease
In May, South Korea reported its first case of MERS (Middle East Respiratory Syndrome). The death toll had climbed to 24 as we went to press, making it the largest outbreak outside of Saudi Arabia, where the strain was first reported in 2012.
Milestones | Iceland
Nearly seven years after introducing controls on capital movements, Iceland is planning to ease restrictions it put in place when the collapse of its banking system brought the country to the brink of financial meltdown.
Trends | FX Commodities Q&A
Petr Grishin, head of macro research and chief economist for Eastern Europe at VTB Capital, discussed the ruble, oil prices and Russian trade with Global Finance.
Vietnam | In May, Vietnam’s central bank once again devalued the country’s currency, the dong—the second such adjustment since January.
The European Union is still debating the nature of its common currency, the position of non-eurozone EU members like the UK, and the future of stressed eurozone countries like Greece. But the situation in other parts of the world is quite different.
Capital Markets | Q&A
Eduardo Suárez, co-head of Latin America strategy in the Global Banking and Markets division of Scotiabank.
Trends | US Dollar/Corporate Earnings
As corporate guidance goes, it was not the most upbeat news ever.
Dear Reader:
The strength of the US dollar is keeping many executives busy these days both in the corporate and the financial world.
Trends | US Dollar/Mergers & Acquisitions
The US dollar has climbed some 25% since June to its highest level in the past 12 years, which could have a significant impact on one of America’s biggest economic drivers: foreign direct investment.
Capital Markets | Foreign Exchange
The strong dollar has beaten down emerging markets currencies ahead of prospective Federal Reserve rate increases, but the fallout for developing economies will vary widely.
Mergers & Acquisitions | Management
Amid the merger frenzy of 2014, a startling number of bids were killed. 2014 may have seen heady times for corporate acquirers, but it was also the year of the rebuffed suitor.
Capital Markets | Foreign Exchange
Currency pegs around the world are threatening to come unglued following the Swiss National Bank’s surprise move to drop the exchange rate floor of the euro versus the Swiss franc.
Milestones | Venezuela
Venezuela’s introduction of a marginal free-floating currency system that will freely trade the US dollar and the bolivar seems unlikely to enlarge the country’s foreign exchange reserves or stem its growing external debt.
Trends | Foreign Exchange
Foreign exchange traders complained that lack of volatility in the market last year was drying up their business. These same traders are now feeling whiplash from the Swiss National Bank’s surprise move on January 15 to de-peg the “Swissie” from the euro.
Eddie Listorti, co-global head of fixed income, currencies and commodities at ANZ Group in Singapore, sees intra-Asian currency flows as a lucrative opportunity.
Lithuania | Milestones
On January 1, Lithuania abandoned the litas, becoming the 19th member of the eurozone and joining Baltic peers Estonia and Latvia in the economic and monetary union.
Mikhail Palei, head of foreign exchange flow at VTB Capital in Moscow, expects international banks to lose their appetite for risk in the Russian ruble—which he sees as an opportunity for Russia’s FX desks.
Treasurers from leading F500 companies and executives from top banks gathered at the Harvard Club in New York to discuss how treasurers are leveraging new market developments to improve treasury operations.