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The European financial group Fortis is currently in contention with the Japanese investment bank Nomura. The bone of that contention is a stake in the collapsed Investicni a Postovni Bank which, until it was shut down earlier in the year was the Czech Republic’s third largest bank. It collapsed in June after a run on deposits caused by speculation that the bank was insolvent.
Nomura are planning on exercising their option to sell their 46% stake to Fortis for Ј160 million, even though it is virtually worthless. Fortis will most likely resist the forced purchase.
14/08/2000
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As part of a large expansion programme, Chile’s Banco de A. Edwards announced yesterday that it had opened a factoring unit.
It is part of a wider scheme that involves the introduction of a variety of new products, a US$35 million investment in new technology and the opening of 15 new branches.
Reuters
11/08/2000
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The US’s largest provider of factoring services, CIT Commercial Services, has announced that it will form a strategic alliance with Cyber Merchants Exchange. The avowed mission of Cyber Merchants Exchange is to use its web-based software to create a global business-to-business e-commerce solution that streamlines the way retailers locate viable merchandise sources.
The alliance will focus upon the integration of CIT’s factoring services with C-ME.com’s global sourcing business for the retail industry.
11/08/2000
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The Finova Group has today announced that it has signed an agreement to sell its commercial services business (which provides factoring and accounts receivable management services) to GMAC Commercial Credit.
Matt Breyne, president and CEO of Finova said “This decision was made with the realisation that factoring has become intensely price competitive throughout the industry over the last several years, requiring a critical mass significantly greater than Finova’s operations.”
It is expected that the transfer will occur in the third quarter of 2000.
11/08/2000
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Hiromu Nonaka, the Secretary General of Japan’s ruling Liberal Democratic Party has made an announcement regarding future changes in the rate of interest, saying “It is up to the Bank of Japan to decide.”
The bank’s governor is apparently determined to raise interest rates. To offset the effect that a rate rise is likely to have, the Finance Minister, Kiichi Miyazawa has said that the government will be considering policy initiatives designed to aid small and medium sized businesses.
11/08/2000
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German Chancellor Gerhard Schrцder, referring to his country’s reputation for high taxes and low growth, has declared that “The German disease is over.” Reforms last month have cut the tax burdens of incorporated companies from 40% to 20% (effective as of January 2001) and an arsenal of further legislation relating to larger companies is expected, which will be firmly in keeping with this trend.
10/08/2000
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The Federal Reserve’s latest survey on regional economic conditions indicates that the rate of growth in the US has slowed down from its earlier pace in the year. This slowing, together with reports of strong productivity and falling unit labour costs makes it extremely unlikely that federal policy makers will raise short term interest rates when they meet on 22 August.
Financial Times
10/08/2000
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US venture capital financing has slowed slightly in the second quarter, but still remains at record levels of about US$1bn per week. Many companies have been delaying or cancelling their IPO plans, thanks to the plunge in the valuation of many technology stocks. It seems, though that the vast majority have managed to gain the extra vital capital from venture capitalists and have not been forced to look at alternative sources of funding.
BCR Publishing
10/08/2000
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A new rule is proposed by the US Securities and Exchange Commission to stop companies giving favoured analysts and investors advance news of important financial information. This new rule, which the SEC commissioners will vote on tomorrow, says that if a company disclosed material, (non-public information) to any outside person, it must simultaneously or quickly place the information in the public domain.
10/08/2000
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Company Volume Factored in $ millions Percentage Increase from 1998 Percentage of Industry Total Volume Non Recourse Factors Accord Business Credit Inc 762 -1.2% 26.3% GMAC Commercial Credit Corp 740 -5.1% 25.6%&nbs
09/08/2000
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There are concerns that the recent interest rate rises in Australia will shatter levels of confidence, leading to a fall in investment and employment levels.
The Australian Chamber of Commerce and Industry yesterday published its quarterly survey of business confidence. The survey revealed a sharp deterioration in expectations for the economy.
It is anticipated that the rate of interest will rise again by as much as 0.5% within the next three months. Such a rise can only lead to a further fall in levels of confidence.
Financial Times
08/08/2000
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The Indian Prime Minister, Atal Behari Vajpayee, has told his party that “all of us should realise that globalisation is an irreversible phenomenon. No country can keep away fully from it without hurting itself.” His remarks were made amidst critcisms from his party, Bharatiya Janata (BJP), that his liberal policies (which are opening up India to foreign imports and investments) are detrimental to the country’s welfare.
08/08/2000
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Interest rates in Australia have been raised for the fifth time in nine months. The new rate was set at 6.25% by the Reserve Bank of Australia amidst fears of runaway inflation.
07/08/2000
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A bill that would force the central bank to consult with the government and report to the parliament on a regular basis, has been rejected by the Czech Senate. The bill also stipulated that the government would take over from the central bank’s governor the responsibility for nominating the bank’s board. This was viewed by the Senate as an unjustified infringement of the bank’s independence and an affront to the constitution.
07/08/2000
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Konsolidacni Banka, the Czech state factoring bank, has today announced that it has cancelled an agreement made in June with U.S. Ayres Corp. A reason for the cancellation has been given by a spokesman for the Czech bank, who said that Ayres had failed to meet a contractual requirement by not bringing operating capital to their Czech unit in Let Kunavice. The spokesman, Jiri Pekarek, went on to say that “Let’s management had not been strengthened and …operating finances were not provided.”
07/08/2000
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