HighTable Insights: Accounting & Financial Analysis

The E.U. as an off-shore hub for the RMB

GLG Expert Contributor — Fri, 24 Feb 2012 15:12:44 EST

A strategy to facilitate the internationalization of the RMB by providing an off-shore hub for RMB in Frankfurt may provide a solution to the E.U. debt crisis.

De-linking global trade payments from political theater

Vijaya Iswara — Tue, 21 Feb 2012 17:19:28 EST

Global trade payment arrangements are increasingly being used as political tactics to exert undue influence on political rivals. This causes undue harm to segments of traders.

Sovereign and financial crises: Europe and the U.S.

GLG Expert Contributor — Wed, 18 Jan 2012 15:07:47 EST

This is not the first time that sovereign and financial crises have occurred concurrently. There are, however, important differences between Europe and the U.S.. In the U.S., the financial crisis was the primary source of the crisis and extra government spending tamed it by supporting imperilled banks. In Europe, banks absorbed government debt. What if the likely recession increases that debt burden? As the S&P downgrading explicitely stated, fiscal discipline will not be enough.

How much longer can the Japanese Yen be a "haven currency"?

GLG Expert Contributor — Tue, 13 Dec 2011 13:25:49 EST

The Japanese Yen has strengthened against other currencies and is currently considered a “haven currency.” This status has been underpinned by Japan’s positive trade and current account balance, which contrasts with pronounced weakness in most of the country’s other economic fundamentals. Japan’s trade and payment fundamentals are changing due to both structural and cyclical causes. This points out that the yen’s status as a haven currency has limitations. Therefore, the yen could and likely will reverse its trend of recent years and weaken in the near to medium term against currencies with stronger economic fundamentals.

Not all bank tech vendors are equal

Art Gillis — Mon, 12 Dec 2011 14:57:29 EST

FIS, Fiserv, Jack Henry and Harland Financial Solutions are in the same business and sell similar products and services to the same financial institutions. That's where the similarities end.

Eksportfinans downgrade surprises investors

GLG Expert Contributor — Mon, 05 Dec 2011 15:38:29 EST

At a time of financial and economic uncertainty, the decision of Norway to stop official export credit business done by Eksportfinans on behalf of the state has resulted in a seven notch downgrade for the company by Moody's and a five notch downgrade by S&P, the former to Ba1 and the latter to BBB+. Both raters have the company on negative watch.

Why wasn't Italy's situation spotted earlier? And what's next?

GLG Expert Contributor — Tue, 22 Nov 2011 10:26:48 EST

Contagion is a remarkable phenomenon, transmitting itself with deadly stealth of the plague. One minute you’re fit and well, the next you’re dead. Financial contagion works in a similar way. In trying to understand why Italy has suddenly become the epicenter of such contagion we need to understand what left it so exposed.

Recapitalizing Spanish banks

Sebastian Mariz — Mon, 14 Nov 2011 15:23:05 EST

Members of Spain’s Partido Popular (PP), which is expected to win the general elections on November 20, all agree that a recapitalization of Spanish banks and savings banks is a key to growth and jobs in Spain. In order to recapitalize, the banks need to clean their books of toxic real estate assets and loans.

Climate Change Review:- UNFCCC Conference Preview

GLG Expert Contributor — Fri, 11 Nov 2011 13:41:10 EST

The seventeenth meeting of the United Nations Framework on Climate Change (UNFCCC) and the seventh meeting relative to the Kyoto Protocol begins later this month. There is always hope that incremental steps will be made on climate change. However, with Kyoto set to run out in 2012 this will be a difficult time to make gains. What is on the agenda?

Should long-term investors consider buying Olympus?

GLG Expert Contributor — Fri, 11 Nov 2011 13:24:09 EST

Olympus’s stock price has fallen 80% to a level unseen since April 1985! The company has admitted to falsifying accounting for close to 20 years and deferring posting losses on investment securities. For investors, the key question is whether the company has real business value. Is the company’s fate sealed or does this represent a once-in-generation buying opportunity?

Financial instruments gain traction in the global sustainability field

GLG Expert Contributor — Thu, 10 Nov 2011 15:45:34 EST

With the Durban, South Africa climate (UNFCCC) conference fast approaching, there have been transformative developments in advancing greenhouse gas emissions mitigation.

Update: German court's decision on EFSF expected by year-end

GLG Expert Contributor — Wed, 09 Nov 2011 13:50:54 EST

The German Constitutional Court has indicated that it will hand down a decision on the structure of parliamentary involvement in EFSF matters sooner than originally anticipated. This suggests that the court is ready to support the government’s ability to act swiftly and reliably to manage the euro crisis.

Brazil's IOF Tax: Is it going away anytime soon?

GLG Expert Contributor — Wed, 19 Oct 2011 16:45:17 EST

In an article published in January 2011, I outlined some of aspects related to Brazil’s IOF tax, a tax applied to certain types of financial transactions. In the recent months, some significant changes to the tax rules have been implemented. This insight provides a brief overview of these changes and answers the question of whether recent developments could spell the end of this tax.

France Rebuilds The Maginot Line

GLG Expert Contributor — Mon, 10 Oct 2011 12:46:07 EST

France struggles to defend itself froma Greek default, ignoring the implosion of Dexia and the risk from Belgium.

Fudging the Eurozone Crisis

GLG Expert Contributor — Wed, 05 Oct 2011 11:38:46 EST

The longer the eurozone crisis continues, the greater the damage to the global economy.

What are the transfer pricing problems for companies doing business in India?

Nitish Grover — Fri, 02 Sep 2011 09:27:17 EST

India has long battled problems with tax evasion and tax avoidance. With enhanced economic growth and more multinationals setting up in India, the problem of companies transferring profits overseas to their home country or a third country by underreporting their Indian revenues has become rampant. This practice is made possible by the different tax rates in various jurisdictions across India and also because of companies “treaty shopping” under double taxation avoidance agreements.

Finding China's cheese

GLG Expert Contributor — Thu, 25 Aug 2011 11:27:05 EST

With the West mired in economic and political paralysis, some observers are thinking aloud that China's $3.2 trillion in foreign exchange reserves could help save the world. This idea inspired me to think of Spencer Johnson’s popular book “Who Moved My Cheese?”

What is the alternative

GLG Expert Contributor — Tue, 02 Aug 2011 12:47:23 EST

No alternative.

The Added Benefits of Corporate Travel Credit Cards

GLG Expert Contributor — Tue, 26 Jul 2011 13:01:56 EST

Most every agency engages in the practice of allowing more than an average of 13.5 days for a corporate travel customer to pay for tickets issued. If the tickets are issued on a credit card, however, ARC (Airlines Reporting Corporation) does not draft your agency bank account; instead, the airline collects directly from the credit card company.