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Economists are expecting Australia's economy to grow a steady 3.5% to 4.2% in 2004, but worries over rising interest rates and a strong Australian dollar weigh heavy on their minds. A jump in interest rates could undermine the development of the construction and housing sector, which could, in turn, drag on the labour market. It is the combination of these unknown factors that has economists as well as bankers, deal makers and consumers, wondering how 2004 will play out in Australia.

If anyone thought that negative yield CBs were only available to Taiwanese or in the Euroyen market, think again. Henderson Land squeezed the market for the most aggressive negative yield to date for an Asian issuer, even including Asian issuers in the Euroyen sector. Goldman Sachs arranged the landmark HK$5.75 billion (US$737 million) deal following a beauty parade. The deal did not quite work out as well as the bank had hoped - it was first launched at par and re-priced to sell at 99%.

In an effort to develop the leading cash management team in Asia, HSBC has promoted three members of its staff in the region. Teoh Jin Kok will take over as head of payments and cash management in Taiwan. He previously worked as head of sales in Singapore. He joined HSBC in 2000 from Bank of America, where he worked in transaction banking and technology services. Iain Taylor now heads up HSBC's Indonesia office after a successful stint running the bank's Korean cash management business. Taylor also previously worked as head of HSBC's payments and cash management in New Zealand. Sam Lim will take over Taylor's lead for the Korean office. Lim, who joined the bank in 2003, has worked to deepen the bank's local market products and services. Lim joined HSBC from Citibank.

Asia's investment banking scene has long resembled a battlefield and casualties have been heavy. Many smaller banks have retreated altogether but it is too early for the bulge-bracket behemoths to declare victory, as Chris Leahy discovers.

Scuffles and scandals in Indonesia * Suits shift to Bali for the Euromoney Investors Conference * Pinning hopes on the legendary turtle's egg

All roads seem to lead to China these days. This is certainly so in the IPO market in Asia. Hardly a week passes without news of yet another big Chinese institution seeking to list overseas. Insurance companies, energy conglomerates and the big state banks are all ripe for the corporate finance pitch. And little wonder. Just look at the US$1 billion profit BP made when it recently unloaded its 2% holding in PetroChina. That is a hefty 225% return from a three-and-a-half year investment. Not bad by any measure.

Creditors of LG Card, South Korea’s biggest credit card provider, have finally reached an agreement on a US$4.2 billion rescue package whereby 16 creditors will inject an additional W1.65 trillion into the company and swap W2 trillion of LG debt for equity. Lenders also agreed to roll over the company’s maturing debt for one year.

Wine is produced in more regions of the world than ever before and the New World wine industry is booming. But, whether you intend to invest in fine vintages, or merely add to your collection, do your homework first, advises Philippe Bru, managing director of Mille Chateaux HK Ltd.

Merrill Lynch put its balance sheet to work in mid January, when the US investment bank bought a block of 114 million News Corp preference shares from General Motors.

The adventurous and these days seemingly ubiquitous Macquarie Bank added another notch to its deal-making holster in early January when the roughly US$139 million Macquarie Central Office Corporate Restructuring Reit (MCO CR Reit) listed on the Korean Stock Exchange. By Mark B. Johnson.

By John-Patrick Moorhead of Goldman Sachs JBWere