Bankers prepare for new European opportunities: border openings attract businesses prepared for action.Bankers prepare for new European opportunities Border openings attract businesses prepared for action Europe 1992 is fast approaching for Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. area banks and companies with international operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. preparing to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the continent's transformation -- and the opportunities it affords local enterprises. One bank, J.P. Morgan of California -- a division of New York-based J.P. Morgan & Co. Inc. -- is prepared for the changes with 160 years of European experience. The company built its first branch in London in 1830. "The opening of the Common Market will be a tremendous opportunity for investors and bankers as companies will be able to deal all around Europe without the traditional trade restrictions A trade restriction is an artificial restriction on the trade of goods between two countries. It is the result of protectionism. However, the term is not uncontroversial since what one part may see as a trade restriction another may see as a way to protect consumers from inferior, ," said George W. Rowe, the newly-appointed managing director of the company's California Private Banking Group. Rowe recently returned from the bank's London office, where he headed corporate finance. Rowe said that banks such as Morgan cannot advise a company if there is a market for its goods in a particular European country. "A company has to know who wants its product. Otherwise it should not be in business," Rowe said. "But banks with international operations can advise client companies on financing and foreign exchange issues." Companies wishing to trade with Europe should establish "U.S. banking relationships that can support your expansion in Europe," advised a booklet published by the California World Trade Association. "Your bank will need to have a correspondent relationship in Europe." The booklet, "Europe: 1992. Implications for California Business," explained that the changes will give California banks an opportunity to provide export financing and letters of credit to companies trading in Europe. Banks and other companies will be able to take advantage of the sweeping changes that will occur in 1992, which are "the last step or final deregulation Deregulation The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry. Notes: Traditional areas that have been deregulated are the telephone and airline industries. ," Rowe said. "The changes did not take place overnight because the common market had to overcome 2,000 years of history, different customs and languages." Once the integration is complete, goods and services In economics, economic output is divided into physical goods and intangible services. Consumption of goods and services is assumed to produce utility (unless the "good" is a "bad"). It is often used when referring to a Goods and Services Tax. will move more freely within Europe, creating a single market of 320 million consumers. The changes will help both corporations and individuals. Since World War II, most large U.S. companies have established European operations, Rowe said. But elimination of separate regulations in each country will allow a company to have one European base and service the entire continent. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. the state World Trade Association, the European market is already lucrative for U.S. companies and 1992 should expand the market. U.S. companies now hold a 22 percent market share in Europe, which represents $74 billion worth of products. California-based companies have a 2 percent share or $7.6 billion of goods. The market should expand because the integration will eliminate trade barriers to countries such as Spain, Greece and Portugal, which now have nationally-based systems of trade protection and quotas. However, U.S. companies will not be only ones to prosper from the changes. Many European companies It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. This is a list of companies from the countries in the European Union. , especially West German ones, have been restricted from operating in certain countries so they will also be able to expand their operations, creating a competitive market. Individuals will also benefit from the changes. According to a pamphlet distributed by the Los Angeles British Consulate Consulate, 1799–1804, in French history, form of government established after the coup of 18 Brumaire (Nov. 9–10, 1799), which ended the Directory. , European countries which had exchange controls will permit its citizens to have bank accounts in other European Common market member countries. The economic changes could also benefit individual U.S. investors. J.P. Morgan is an investment advisor Investment Advisor 1. A person making investment recommendations in return for a flat fee or percentage of assets managed, known as a commission. 2. For mutual fund companies, it is the individual who has the day-to-day responsibility of investing and monitoring the cash and to a mutual-fund type investment in stocks of European companies that should prosper from the changes in 1992. "This is not like buying into the Third World," said Rowe. "We are bullish Bullish Word used to describe an investor's attitude. Bullish refers to an optimistic outlook, while bearish means a pessimistic outlook. bullish on what will happen in Europe in 1992 and these are stocks in companies whose earning potentials are well managed and are reasonably priced." |
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion