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  • MIL-OSI USA: Pitting Good Versus Bad Fungi on Sweet Corn: A Delicate Dance

    Source: US Agriculture Research Service

    Pitting Good Versus Bad Fungi on Sweet Corn: A Delicate Dance

    Contact: Jan Suszkiw
    Email: Jan.Suszkiw@usda.gov

    September 30, 2024

    The same defenses that help some varieties of sweet corn resist fungal diseases can also stymie the potency of a beneficial fungus used to kill hungry caterpillar pests, studies by Agricultural Research Service (ARS) scientists suggest.

    Entomologist Pat Dowd and Molecular Biologist Eric Johnson—both at the ARS National Center for Agricultural Utilization Research in Peoria, Illinois—conducted the study as a follow up to one they did in 2022 with field (dent) corn, which is grown for livestock consumption and other uses.

    Results from the 2022 study indicated resistance to fungi that cause Fusarium disease in some lines of field corn can diminish the effectiveness of the beneficial fungus Beauveria bassiana, which can be sprayed onto the crop as a biopesticide that kills caterpillar pests such as European corn borers and fall armyworms.

    However, not all of the Fusarium-resistant dent corn lines tested had a corresponding decline in the Beauveria fungus’s caterpillar-killing performance. Some corn lines also withstood the insect pests’ feeding damage, leaving open the possibility these lines carried the right combination of genes for benefiting from both disease resistance and compatibility with Beauveria.

    Caterpillar stage of European corn borer infected with the beneficial fungus Beauveria bassiana. (Photo by Keith Weller)

    Follow-up studies with sweet corn reflect a similar possibility with respect to the genes they possess, according to Dowd and Johnson. In those studies, biopesticide applications of Beauveria killed 12 to 58 percent of European corn borer and fall armyworm caterpillars. However, as with dent corn, the level of insecticidal activity depended on which of 14 lines of Fusarium-resistant hybrid or inbred sweet corn had been treated. In some sweet corn lines, for example, signs of high levels of disease resistance in the form of smaller dead spots on Fusarium-infected leaves were associated with increases in the percentage of caterpillars killed by the fungus two days after application. In other types of sweet corn that were less resistant, larger dead spots corresponded to lower levels of caterpillar control.

    Caterpillar control also varied depending on which of two Beauveria strains were used, an observation that underscores the need for continued study on how these subtleties can translate to practical data growers can use in choosing sweet corn lines offering both Fusarium resistance and high levels of insecticidal activity using the beneficial fungus.

    Culture of the beneficial fungus Beauveria bassiana. (Photo by Keith Weller)

    Finding that “sweet spot” in sweet corn would be especially important to organic growers, who cannot use synthetic pesticides and have fewer options for disease and insect control than in conventional production systems.

    “The results of gene expression studies comparing sweet corn hybrids with more and less desirable combinations of Fusarium resistance and Beauveria efficacy were recently received,” said Dowd. “These results will help identify favorable combinations of genes that will help guide the breeding of sweet corn varieties to produce ones that have good resistance to Fusarium and are more compatible with the use of Beauveria.”

    The researchers detailed their findings in the January 2024 issue of the journal Organic Agriculture.

    The Agricultural Research Service is the U.S. Department of Agriculture’s chief scientific in-house research agency. Daily, ARS focuses on solutions to agricultural problems affecting America. Each dollar invested in U.S. agricultural research results in $20 of economic impact.

    MIL OSI USA News –

  • MIL-OSI Asia-Pac: Coastal odour improved

    Source: Hong Kong Information Services

    Secretary for Environment & Ecology Tse Chin-wan today visited the waterfront areas of To Kwa Wan, Sham Shui Po and Wan Chai to learn about the progress for improving the quality and odour of Victoria Harbour’s coastal waters.

    While inspecting the Cheung Sha Wan waterfront, Mr Tse was briefed by Environmental Protection Department officers on the conditions of sewer misconnections and the progress of rectification works.

    He also learnt about the collection of odour data in real time and the innovative technologies and equipment in identifying pollution sources, which are done through the odour-monitoring device installed at the waterfront.

    The environment chief was pleased to learn that the overall pollution load in the priority districts of Tsuen Wan, Sham Shui Po and Kowloon City had been reduced by about 80%, exceeding the target set in the 2022 Policy Address of reducing the pollution load at identified outfalls emanating stench in specific districts by half before end-2024.

    Mr Tse then inspected the bioremediation works carried out by the Civil Engineering & Development Department at To Kwa Wan Typhoon Shelter, which can speed up the removal of organic pollution in the sediment and facilitate the elimination of the sediment’s odour, thereby further ameliorating coastal odour problems.

    Mr Tse concluded his inspection by going to the waterfront areas of Wan Chai to learn about the various water quality improvement measures in the area, where triathlon events for the 15th National Games will be hosted in 2025.

    MIL OSI Asia Pacific News –

  • MIL-OSI Banking: Verizon and Vertical Bridge agree to $3.3 billion tower transaction

    Source: Verizon

    Headline: Verizon and Vertical Bridge agree to $3.3 billion tower transaction

    NEW YORK, NY & BOCA RATON, FL – September 30, 2024 – Verizon Communications Inc. (NYSE, Nasdaq: VZ) and Vertical Bridge today announced they have entered into a definitive agreement for Vertical Bridge to obtain the exclusive rights to lease, operate and manage 6,339 wireless communications towers across all 50 states and Washington, D.C. from subsidiaries of Verizon for approximately $3.3 billion, including certain commercial benefits. The transaction is structured as a prepaid lease with upfront proceeds of approximately $2.8 billion in cash.

    Under the terms, Verizon will enter into a 10-year agreement1 to lease back capacity on the towers from Vertical Bridge, serving as the anchor tenant, with options that could extend the lease term up to 50 years. Verizon will also have access to certain additional space on the towers for its future use, subject to certain restrictions. This agreement, along with Verizon’s existing build-to-suit joint venture with Vertical Bridge, will support Verizon’s efforts to drive down tower-related costs and provide greater vendor diversity in a concentrated industry. 

    “As the nation’s largest mobility provider, we are well positioned with greater financial flexibility to invest in our business, return value to our shareholders and make the nation’s best network even better for customers,” said Verizon Chairman and CEO Hans Vestberg. “This transaction builds on our existing relationship with Vertical Bridge while realizing substantial value for this unique set of assets and allows us to be agile in optimizing the network with one of the best operating partners.” 

    “We are pleased to have been selected by Verizon as the counterparty in the largest US tower transaction in almost a decade,” said Ron Bizick, President and CEO of Vertical Bridge. “This transaction represents a significant step for Vertical Bridge. The vision of the company founders 10 years ago was to create a permanent, private, and at-scale US tower company. This transaction marks a significant milestone in the realization of that vision. Upon the completion of this transaction, these assets, together with our existing portfolio which includes thousands of young, purpose-built towers, enhance Vertical Bridge’s position as a fast, friendly, and flexible colocation partner to the wireless industry.”

    “Since co-founding Vertical Bridge in 2014, we’ve been on a transformative journey, and this landmark transaction with Verizon Communications marks an inflection point in that evolution,” said Marc Ganzi, CEO of DigitalBridge and Vice Chairman of Vertical Bridge. “This transaction not only solidifies our leadership in the tower space but also strategically positions us to capitalize on the growing demand for wireless infrastructure, especially as AI-driven technologies and 5G continue to reshape connectivity needs across industries.”

    DigitalBridge, a leading global alternative asset manager dedicated to investing in digital infrastructure and majority owner of Vertical Bridge, has committed capital to support the transaction.

    CDPQ, a global investment group and an important shareholder of Vertical Bridge since 2019, also committed capital to finance this transaction.

    The transaction is expected to close by the end of 2024, subject to customary closing conditions.

    Advisors
    J.P. Morgan acted as financial advisor to Verizon and Jones Day acted as legal counsel. Centerview Partners LLC served as financial advisor to Vertical Bridge and Greenberg Traurig acted as legal counsel. Simpson Thacher & Bartlett acted as legal counsel to DigitalBridge. Mayer Brown LLP acted as legal counsel to CDPQ.

    About Vertical Bridge 
    Vertical Bridge REIT, LLC, headquartered in Boca Raton, Florida, was founded in 2014 and is the largest private owner and operator of communications infrastructure and locations in the United States, with a portfolio of more than 500,000 sites, including over 11,000 owned and master-leased towers pre-transaction. Vertical Bridge provides build-to-suit and colocation solutions to the wireless industry. The Company’s portfolio spreads across all 50 states and Puerto Rico. 

    In 2020, Vertical Bridge became the first tower company in the world to achieve the CarbonNeutral® company certified status and has been recertified every year since. For more information, please visit http://www.verticalbridge.com.

    Forward-Looking Statements
    n this communication we have made forward-looking statements. These statements are based on our estimates and assumptions and are subject to risks and uncertainties. Forward-looking statements include the information concerning our possible or assumed future results of operations. Forward-looking statements also include those preceded or followed by the words “anticipates,” “assumes,” “believes,” “estimates,” “expects,” “forecasts,” “hopes,” “intends,” “plans,” “targets” or similar expressions. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

    [1] Initial term of 10 years, plus 8 optional renewal terms of 5 years each, subject to certain early termination rights. 

    MIL OSI Global Banks –

  • MIL-OSI Global: Maggie Smith was a formidable actor with a biting wit and a fearsome ability to deliver lines

    Source: The Conversation – UK – By Jen Harvie, Professor of Contemporary Theatre and Performance, Queen Mary University of London

    It is a testament to the power of the late British actress Dame Maggie Smith that other eminent actors – though only male ones, as far as I can see – accused her of upstaging them.

    Richard Burton complained that in Anthony Asquith’s 1963 film The VIPs, she didn’t merely steal a big scene with him, “she committed grand larceny”. After making the 1978 Neil Simon film California Suite with her (for which Smith won her second Academy Award), Michael Caine is reported to have phoned Michael Palin, who was to be her co-star in the 1982 film The Missionary. “Watch her,” Caine reportedly warned. “She’ll have that scene from under your feet.”

    More recent audiences will recognise Smith’s arresting power in her portrayal of Violet Crawley, Dowager Countess of Grantham, in the long-running television series Downton Abbey and its two films. For film critic Peter Bradshaw, even “in the smallest of roles she set her own terms and every other actor was her satellite”.

    A prominent part of what gave Smith her power was her caustic humour, an acerbic put-down, and that withering look – from huge eyes set over pursed lips. New York Times critic Frank Rich praised her ability to “italicise a line as prosaic as ‘Have you no marmalade?’ until it sounds like a freshly minted epigram by Coward or Wilde.”

    But there was so much more to Maggie Smith than this. Her range was huge, and her power was built on craft.

    The social satire and commentary of her performances could be conveyed through anything from minxy humour to world-weariness, but always intelligence. In a review of her portrayal of Ibsen’s Hedda Gabler in a 1970 National Theatre production directed by Ingmar Bergman, the Evening Standard’s Milton Shulman described her as “haunt[ing] the stage like some giant portrait by Modigliani, her alabaster skin stretched tight with hidden anguish”.

    So, if you only know her work through recent blockbusters like Downton and the Harry Potter film franchise, in which she played Professor Minerva McGonagall, take a look at her vast and wonderful back catalogue. It’s a sustained masterclass in acting, as well as some of the very best explorations of the lived experiences of British middle-class women in the mid-to late-20th century. Two good places to start are the 1969 film The Prime of Miss Jean Brodie and the 1988 Alan Bennett television play A Bed Among the Lentils.

    In The Prime of Miss Jean Brodie – adapted by Jay Presson Allen from Muriel Spark’s 1961 novel– Smith played the eponymous heroine and won her first Academy Award, for best actress. Miss Brodie is a vivacious, romantic teacher at a repressive girls’ school in Edinburgh, Scotland. Confident that she knows what’s best for “her girls”, she fails to recognise how her approach to teaching is as controlling and potentially more damaging than that of the conservative head mistress.

    Smith sails through the film, moving from haughty grandeur through charming coquettishness to anguished despair. With just a hint of delicious melodrama, the film captures Miss Brodie’s hubris, but also the strict social limits of the times on girls’ and women’s freedoms and dreams.

    A Bed Among the Lentils is one of playwright Alan Bennett’s Talking Heads series of television monologues, written mostly for women. Smith plays Susan, the secretly alcoholic wife of an aspirational vicar. She is clearly under-stimulated by a life spent hosting visiting clerics at lunch and competing with other local women at flower-arranging for the altar. Her life shifts when she meets a kind, young and attractive Asian shopkeeper. He helps her to gain a different perspective on what gods can stand for and discovers what she wants and desires from life.

    Smith’s performance under Bennett’s direction is sometimes achingly slow, though it poignantly captures the emptiness of Susan’s life. (Smith reports in the 2018 tribute film Nothing Like a Dame that Laurence Olivier once criticised her for line delivery so slow she “bored him off the stage”. When it came to their next performance, she says, “I went so fast he didn’t know if it was Wednesday or Christmas.”)

    Again and again across an extraordinary career, Smith gave us painfully accurate portraits of British women, from steely and haughty to fragile and vulnerable – often simultaneously. She captured women’s fatigue with the social constraints imposed upon them and showed stunning glimpses of a world beyond those limitations, full of other potentials and possibilities.

    Jen Harvie does not work for, consult, own shares in or receive funding from any company or organisation that would benefit from this article, and has disclosed no relevant affiliations beyond their academic appointment.

    – ref. Maggie Smith was a formidable actor with a biting wit and a fearsome ability to deliver lines – https://theconversation.com/maggie-smith-was-a-formidable-actor-with-a-biting-wit-and-a-fearsome-ability-to-deliver-lines-240135

    MIL OSI – Global Reports –

  • MIL-OSI Africa: Government activities for the week 30 September – 4 October

    Source: South Africa News Agency

    Monday, September 30, 2024

    On Monday, 30 September, Deputy President Paul Mashatile is in the United Kingdom for the second leg of his working visit. The purpose of the visit is to improve trade and investment relations between South Africa and the United Kingdom. The visit will conclude on Friday, 4 October.

    On Monday, 30 September, Minister of Electricity and Energy Dr Kgosientsho Ramokgopa hosts the Renewable Energy Seminar in Midrand, Gauteng.

    On Tuesday, 1 October, President Cyril Ramaphosa will launch, on behalf of government, Phase 2 of the Business and Government Partnership.

    From Tuesday, 1 October, Public Service and Administration Minister Mzamo Buthelezi leads the South African delegation at the International Conference on Theory and Practice of Electronic Governance (ICEGOV). The conference ends on 4 October.

    On Tuesday, 1 October, Employment and Labour Minister Nomakhosazana Meth briefs media on inspections and compliance raids in South Africa. 

    On Wednesday, 2 October, the Deputy Minister of Cooperative Governance and Traditional Affairs, Dr Namane Dickson Masemola, leads an important oversight visit to the Northern Cape, focusing on the ZF Mgcawu and Pixley Ka Seme District Municipalities.

    On Friday, the South African Navy will host the SA Navy Festival in the East Dockyard, Simon’s Town, over the period 4 – 6 October.  – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI Africa: Condolences for Lusikisiki mass shooting victims’ families

    Source: South Africa News Agency

    Monday, September 30, 2024

    President Cyril Ramaphosa has expressed his condolences to the families of the 18 people tragically killed in a mass shooting over the weekend in Ngobozana village, in Lusikisiki, in the Eastern Cape.

    The President has also extended his sympathies to the survivors of the two separate attacks, which took place on the same street and predominantly claimed the lives of women.

    President Ramaphosa assured the grieving families that the South African Police Service (SAPS) has mobilised all available resources to bring the perpetrators to justice. A specialised team of detectives and forensic experts has been deployed to the crime scene to expedite the investigation.

    In addition, Police Minister Senzo Mchunu, along with the national SAPS leadership, will visit the affected families and engage with the community to offer support and address the tragedy.

    The President noted that this incident is part of a troubling pattern, with 38 people having been killed in similar attacks over the past two years. To date, 25 suspects remain in custody in connection with these incidents.

    “I feel deeply for all the families and members of the broader community affected by this attack and on behalf of all of us as South Africans, I offer you our deepest sympathies.

    “While we are united in our grief, we are also united in our outrage and condemnation of this excessive criminal assault which will not go unpunished.

    “The South African Police Service has proven its effectiveness in dealing with random and organised crime and I am confident the Lusikisiki case will be added to the successes recorded recently by our police service,” the President said.

    President Ramaphosa added that community members should therefore feel free to provide investigators with information that can help police apprehend the attackers and prepare a watertight case for the courts to process.

    “We will not allow criminals to prevail,” the President said. – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI Submissions: Gebrüder Weiss bikes to the moon and back

    Source: Gebrüder Weiss

    Third GWcycles cycling campaign sets new record / International bike community comes together to cycle over 768,800 kilometers / Corporate forest project in Nicaragua grows by 7,000 new trees

    Lauterach, October 1, 2024. Gebrüder Weiss’ international community of bike enthusiasts has raised the bar with this year’s GWcycles cycling campaign: More than 600 participants came together to cycle over 768,800 kilometers – the distance it would take to the moon and back.

    Between March and September, the logistics company ran its third and latest cycling campaign, aptly titled “Cycling to the moon and back,” calling on cyclists around the world to dowload the Radbonus app and cover as many kilometers as possible on two wheels. 

    “It’s clear that bicycle mobility is growing in popularity,” remarks Frank Haas, Head of Communications at Gebrüder Weiss, “and rightly so: Cycling gives people a chance to enjoy being active and boosts both personal health and climate protection. I’m particularly pleased that we were once again able to encourage so many people to do their best to support a good cause. Thank you to everyone who got involved!”

    Another benefit is that each kilometer cycled helps to protect the climate. The 2024 cycling campaign has enabled Gebrüder Weiss to plant 7,000 new trees in the corporate forest in Nicaragua. A total of 19,000 trees have been planted since the campaign was launched in 2022. Once fully grown, these trees will absorb around 285 tons of CO2 from the atmosphere per year.

    For more information about “Cycling around the World”, go to: https://info.gw-world.com/gwcycles.

    GW Team Lauterach

    Frank Haas

    Duathlon Malaysia

    GW Team Czech republic

    GW Team Singapore

    Corporate forest Nicaragua

    GWcycles Logo

    About Gebrüder Weiss

    Gebrüder Weiss Holding AG, based in Lauterach, Austria, is a globally operative full-service logistics provider with about 8,600 employees at 180 company-owned locations.

    The company generated revenues of 2.46 billion euros in 2023. Its portfolio encompasses transport and logistics solutions, digital services, and supply chain management. 
    The twin strengths of digital and physical competence enable Gebrüder Weiss to respond swiftly and flexibly to customers’ needs. 
    The family-run organization – with a history going back more than half a millennium – has implemented a wide variety of environmental, economic, and social initiatives. Today, it is also considered a pioneer in sustainable business practices. http://www.gw-world.com

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Environment – Civil Society Groups call on Plastics Treaty negotiators to agree on a text that effectively tackles plastic pollution across its lifecycle

    Source: Global Plastics Treaty

    Oct. 1, 2024 – Nairobi, Kenya—As countries conclude a Head of Delegations meeting today in Nairobi for an international legally binding agreement to end plastic pollution or the Global Plastics Treaty, civil society groups have been uniting their voices and held simultaneous actions to emphasize a call for a strong and effective global plastics treaty and show solidarity with high ambition countries, such as those in the African Group, Group of Latin America and the Caribbean (GRULAC), Pacific Small Island Developing States (PSIDS),  and the Philippines that have been advocating for strong treaty measures.

    The final scheduled plastics treaty negotiations will take place in Busan, Republic of Korea later this year. Since the process started in 2022, civil society groups, alongside Indigenous Peoples representatives and independent scientists have been calling on governments to ensure that the treaty includes legally binding measures that cover the whole life cycle of plastics, including rules and targets on the production and supply of primary plastic polymers to drastically cut plastic production with aims to phase out plastic production.

    “Over 400 million tonnes of plastics are produced every year, suffocating our planet and every living thing on it. Now is not the time to sacrifice ambition and submit to the lowest common denominator: a minority of countries blocking progress for their own short-term gain,” said Ana Rocha, Global Plastics Policy Director of the Global Alliance for Incinerator Alternatives (GAIA). “Indigenous Peoples, waste pickers, and Global South governments on the frontlines of the plastics crisis have long been at the forefront of the solutions, yet their critical voices have been sidelined. The world needs ambition to be aligned with strong means of implementation including a financial mechanism that will provide the necessary financing for action. The intergovernmental negotiating committee must listen to the millions of people around the world demanding a strong treaty to end plastic pollution.”

    The groups also call for the elimination of chemicals that are hazardous to human health and the environment throughout the lifecycle of plastics, as plastics expose people to more than 16,000 chemicals and 4,200 of them are classified as hazardous to people and the environment.

    “A treaty that does not prioritize production reduction of primary plastic polymers (PPP) and eliminate chemicals of concern will only serve to perpetuate plastic pollution and the poisoning of Indigenous and environmental justice communities around the world who have been sacrificed by industry and enabling governments for generations,” said Frankie Orona, Executive Director of Society of Native Nations. “We welcome the common goal of the High Ambition Coalition (HAC) to end plastic pollution by 2040, while reaffirming that no amount of production of PPP is sustainable. The HAC should explicitly support, at minimum, a reduction target of 75% by 2030 if not sooner.”

    Additional demands include the support for reuse systems, a strong, dedicated financial mechanism to facilitate the flow of financial resources from the developed to the developing world, and measures for a just transition to safer and more sustainable livelihoods for workers across the plastic supply chain.  

    “As we reduce plastic production, it is essential we ensure a just transition to reuse and refill systems, which present numerous benefits for people and the environment,” said Marian Ledesma, Zero Waste Campaigner at Greenpeace Southeast Asia – Philippines. “In addition to reducing plastic waste, reuse and refill solutions can decrease greenhouse gas emissions, water consumption and material resource usage. These systems also bring socioeconomic gains for communities through reduced costs and risks arising from plastic pollution.  As integral solutions in ending plastic pollution, we need ambitious reuse and refill targets to be reflected in the treaty alongside reduction targets for plastic production and use.”

    “As we come towards the final round of negotiations, we must not sacrifice ambition for speed. Ambition means both legally binding control measures and finance to help solve the problem,” said Jacob Kean-Hammerson, Ocean Campaigner with the Environmental Investigation Agency (EIA).  “Ending plastics pollution is a generational effort we must undertake as a global community. Global North countries should join calls in the Global South for a new dedicated fund and ensure adequate funding to ensure we have a treaty that truly works.”

    Since the beginning of the INC process, civil society organizations, as well as many governments, have been calling for an open and transparent process that facilitates the widest possible public participation. Instead, observers have been met with limitations that have ranged from caps on attendance, restricted access to negotiations and relevant meetings, and curtailed opportunities to make formal statements. With possibly one last round of negotiations remaining, civil society groups renew their calls for greater transparency and participation in the process to ensure that the demands for a strong and effective plastics treaty are heard.

    “By not including pathways for robust observer participation, meeting organizers are contradicting established international norms and are ignoring and disrespecting the experience, knowledge, expertise, and distinct perspectives of Indigenous Peoples and other frontline and fenceline communities disproportionately impacted by plastic pollution across its life cycle,” said Merrisa Naidoo of GAIA Africa.

    Having a global plastics treaty is a rare opportunity to systematically end plastic pollution through a legally binding international agreement that covers the complexities of the plastic pollution crisis beyond waste management. As UN Member states are expected to wrap up negotiations by December 1st, 2024, in Busan, Republic of Korea, civil society groups will continue to urge governments to deliver a strong treaty that would be effective in truly ending plastic pollution, not a watered-down agreement that fails to holistically address the plastic pollution crisis, for the sake of meeting deadlines.

    About BFFP — #BreakFreeFromPlastic is a global movement envisioning a future free from plastic pollution. Since its launch in 2016, more than 3,400 organizations and 14,000 individual supporters worldwide have joined the movement to demand massive reductions in single-use plastics and push for lasting solutions to the plastic pollution crisis. BFFP member organizations and individuals share the values of environmental protection and social justice and work together through a holistic approach to bring about systemic change. This means tackling plastic pollution across the whole plastics value chain – from extraction to disposal – focusing on prevention rather than cure and providing effective solutions. http://www.breakfreefromplastic.org.

    MIL OSI – Submitted News –

  • MIL-OSI NGOs: Israel/OPT: Slovenia, Montenegro and Portugal must not assist the MV Kathrin’s delivery of explosives to Israel 

    Source: Amnesty International –

    Slovenia and Montenegro must stop the Portuguese-flagged MV Kathrin, believed to be carrying explosives bound for Israel, from docking at their ports, given the clear risk that such cargo would contribute to the commission of war crimes in Gaza, Amnesty International said. 

    According to Namibia’s government and Portugal’s Foreign Minister, the MV Kathrin’s cargo includes explosives destined for Israel. Namibian authorities refused to allow the vessel to enter its main harbour in August, citing information from the ship’s operator that its cargo includes eight containers of RDX Hexogen explosives bound for Israel. Statements from Slovenia’s Prime Minister’s office and Portugal’s Foreign Minister indicate the ship is heading for Montenegro and Slovenia’s port of Koper, where it will offload its cargo. It is unclear how the cargo will then reach Israel.  

    The deadly cargo believed to be on board the MV Kathrin must not reach Israel as there is a clear risk that such cargo would contribute to the commission of war crimes against Palestinian civilians.

    Nataša Posel, head of Amnesty International Slovenia

    “The deadly cargo believed to be on board the MV Kathrin must not reach Israel as there is a clear risk that such cargo would contribute to the commission of war crimes against Palestinian civilians,” said Nataša Posel, head of Amnesty International Slovenia.

    “Namibia rightfully upheld its international obligations by ensuring that the MV Kathrin did not transit military cargo to Israel through its port. Now it is up to Slovenia, Montenegro and all other states to do the same and avoid facilitating an unlawful transfer.” 

    International humanitarian law (IHL) prohibits all states from transferring weapons to a party to an armed conflict where there is a clear risk that doing so would contribute to the commission of war crimes or other serious IHL violations. 

    Amnesty International has documented extensive evidence of war crimes committed by all parties to the most recent escalation of the conflict in Israel and the Occupied Palestinian Territory using a wide variety of arms. Amnesty International research shows that Israel’s military has used explosive weapons to carry out direct attacks on civilians and civilian objects and indiscriminate attacks in Gaza, blocked humanitarian assistance and collectively punished Palestinians over the past year. 

    States that continue to transfer arms to Israel are therefore acting in contravention of their obligations under Common Article 1 of the Geneva Conventions and must act to prevent all such transfers with urgency. 

    Furthermore, as State Parties to the Arms Trade Treaty, Montenegro, Portugal and Slovenia have committed to establishing the highest possible common international standards for regulating the international trade in conventional arms for the purpose of reducing human suffering. As flag state, Portugal must not use its vessel to transfer the explosives or must remove its flag so as not to assist in the transfer. 

    “Amnesty International is calling for an immediate arms embargo on Israel and on Palestinian armed groups in Gaza due to their use of weapons to carry out war crimes and other serious violations. Any state that knowingly transfers arms to the parties in this ongoing conflict, including via transit of ships carrying arms and explosives, risks breaching their obligation not to encourage, aid or assist in violation of the Geneva Conventions. Portugal, Slovenia and Montenegro must not facilitate any such weapons transfer to Israel,” said Nataša Posel. 

    MIL OSI NGO –

  • MIL-Evening Report: Qatar Airways is set to acquire 25% of Virgin Australia. Who will be the winners?

    Source: The Conversation (Au and NZ) – By Dr Rico Merkert, Professor in Transport and Supply Chain Management and Deputy Director, Institute of Transport and Logistics Studies (ITLS), University of Sydney Business School, University of Sydney

    Peter Gudella/Shutterstock

    Qatar Airways has announced plans to buy a 25% minority stake in Virgin Australia from its owner, US private equity firm Bain Capital.

    The two airlines have already had a strong relationship as “codeshare partners” since 2022. Codesharing is where airlines agree to sell seats on each other’s flights. This new announcement, however, is a big step up.

    All of this will, of course, be subject to approval from both Australia’s Foreign Investment Review Board and the Australian Competition and Consumer Commission (ACCC). But there could be a range of winners if it goes ahead.

    Perhaps most importantly for Australian travellers, the move means Virgin Australia will be able to compete as it once did on long-haul international routes.

    This is because a proposed “wet lease” agreement – in which one airline provides full aircraft, crew and relevant services to another – could see Virgin Australia start operating its own flights from Brisbane, Melbourne, Perth and Sydney to Doha as early as mid-2025.

    It’s also a win for Bain Capital, which had been trying to offload some of its stake in the airline after acquiring it in crisis in 2020.

    So with the prospect of a renewed international foothold for Virgin Australia, could we soon see more competition – and real consumer benefits – on the “Kangaroo Route” between Australia and Europe?

    Clearer skies for Qatar?

    As you might remember, Qatar Airways’ previous attempts to expand in Australia haven’t always gone smoothly.

    Today’s announcement comes little more than a year after Transport Minister Catherine King controversially blocked a request by Qatar to double the number of flights its state-owned airline Qatar Airways was allowed to fly into major Australian airports.

    Given the intense public backlash to this decision, it’s possible a renewed application by Qatar would have been more successful. A large expansion of flights by Turkish Airlines was later quietly approved.

    But this new deal may diminish the need to try again. By wet-leasing wide-body aircraft so Virgin Australia can operate its “own” long-haul routes to Doha (connecting into Europe), Qatar will effectively bypass the need to get government approval for the additional flights.



    Read more:
    What will putting the interests of Qantas ahead of Qatar Airways cost? $1 billion per year and a new wave of protectionism of legacy carriers

    The ‘Kangaroo Route’ still needs more flights

    Back in 2023, my calculations suggested Qatar’s application to expand should have been approved. Capacity on the Kangaroo Route was only back to 70% of pre-COVID levels. That meant the major players operating flights – including the Qantas–Emirates alliance – could charge significantly more than before the pandemic.

    Using the latest flight schedule data, we can show that the capacity between Australia and the Middle East is still 17% below what it was before the pandemic. If Virgin Australia’s proposed long-haul re-entry goes ahead, we could see much more capacity on these routes, and a formidable challenger to the Emirates–Qantas arrangement.



    Read more:
    What will putting the interests of Qantas ahead of Qatar Airways cost? $1 billion per year and a new wave of protectionism of legacy carriers

    Likely a win for Virgin and Qatar

    It’s easy to see why Virgin and Qatar might be excited. The deal will extend Virgin Australia’s reach – and that of its frequent flyers – into Europe and other destinations via Doha. But this goes both ways, and could also mean more demand on its domestic network.

    Similarly, the additional flights into Doha will feed Qatar Airways’ network, an airline that seems to be going from strength to strength.

    Despite historical troubles at Doha’s main airport, Qatar Airways is now one of the world’s largest airlines. It has once again been ranked as the world’s best airline by the independent air transport rating organisation Skytrax.

    Both airlines were also keen to point out benefits of the partnership they said would go beyond additional services and increasing competition in the Australian market.

    These include the potential to work together towards various sustainability initiatives and on developing Western Sydney’s aviation ecosystem, providing exciting new opportunities for employment and training.

    Not yet a done deal

    However, they’re still a long way from the finishing line. Whether this deal will actually materialise remains to be seen.

    It is worth noting this is not the first time Virgin Australia has been part-owned by an airline in the Middle East. Before Virgin Australia’s collapse into administration in April 2020, Etihad held a 21% equity stake.

    Further, it remains to be seen what aircraft Virgin Australia will actually get access to and how the service will be perceived. Qatar Airways is guaranteed a transaction win through the wet-lease, without taking on the brand and profit risks of operating these services.

    How much concern this will stir at Qantas also remains to be seen, but one thing is clear. Project Sunrise – Qantas’ plan to bypass the Middle Eastern hubs and connect Australia directly with Europe – could soon become much more important.

    Emirates is unlikely to emerge as the winner of this move, now set to face increased competition not only on services connecting Australia with the Middle East, but also across its broader network through Dubai.

    Qatar Airways acquiring a stake in Virgin Australia will also create interesting dynamics within the Oneworld Alliance, in which both Qantas and Qatar Airways are key partners. There are certainly interesting times ahead.

    Dr Rico Merkert receives funding from the ARC and various industry partners. He loves to work with and for airlines, including Qantas and Virgin Australia.

    – ref. Qatar Airways is set to acquire 25% of Virgin Australia. Who will be the winners? – https://theconversation.com/qatar-airways-is-set-to-acquire-25-of-virgin-australia-who-will-be-the-winners-240204

    MIL OSI Analysis – EveningReport.nz –

  • MIL-OSI Africa: Why pay tax? African study finds trust in government is key

    Source: The Conversation – Africa – By Heikki Hiilamo, Professor of Social Policy, University of Helsinki

    Taxes are important. They’re a primary way in which governments fund essential services like healthcare, education, infrastructure and social protection programmes. They are vital to the economic development of countries.

    In sub-Saharan African countries, the need for public services is great and fiscal resources are often scarce. Getting the public to pay their taxes is essential. However, a variety of structural and governance challenges have made it difficult to effectively mobilise revenue.

    Recent tax protests in Kenya illustrate the growing tension between taxpayers and the government in the region. The protests underscore the importance of designing tax policies that not only raise revenue but also distribute the tax burden fairly across different income groups. If governments don’t address these issues, they risk eroding public trust and increasing tax resistance.

    The logistical difficulties of tax collection are another obstacle. Many sub-Saharan economies are characterised by small-scale enterprises and subsistence agriculture, which complicate tax administration. The informal sector – estimated to account for up to 80% of employment in some countries – largely operates outside the formal tax net. It’s difficult for governments to capture this significant portion of economic activity within their revenue systems.

    Tax collection in sub-Saharan Africa is also hindered by inefficient administrative systems. In many countries, tax authorities are under-resourced and under-staffed, making it difficult to monitor compliance. Personal visits to taxpayers’ homes or businesses are often required to collect taxes. This drives up administrative costs and increases opportunities for corruption. In many cases, tax records are manually maintained – a system that’s prone to manipulation, inefficiencies and data losses.

    Our research shows that one of the most important factors influencing tax compliance in sub-Saharan Africa is trust in government.

    Citizens are more likely to comply with tax obligations when the government is perceived as fair and transparent in the use of tax revenues. A strong social contract – where citizens feel taxes are returned to them in the form of public goods and services – is critical.

    Conversely, when public services are inadequate or corruption is perceived as widespread, tax morale diminishes. This leads to greater tax resistance. In Kenya, Tanzania, Uganda and South Africa, studies have shown that satisfaction with public services improves tax compliance. Another study has found that perceived corruption has a negative effect on tax compliance in sub-Saharan Africa.

    Governance quality also plays a role in shaping tax compliance. Citizens who trust their government and perceive that tax revenues are used to reduce inequality are more likely to pay their taxes.

    Progress

    Despite the challenges of collecting revenues, many African countries have made progress over the past three decades.

    From the mid-1990s to 2016, total revenue (excluding grants) in the median African economy rose from around 14% to over 18% of GDP. Tax revenue increased from 11% to 15% of GDP.

    This is a significant achievement, but Africa still remains the region with the lowest revenue-to-GDP ratio globally.

    Weak tax administration systems continue to limit governments’ ability to finance development initiatives. As a result, many countries struggle to provide essential services like healthcare, education and infrastructure.

    Countries also tend to rely on “regressive” taxes, like taxes on consumption. These affect poorer households the most, as they spend a larger share of their earnings on taxable goods and services. This weakens the redistributive effect of tax systems and can exacerbate poverty and inequality.

    Way forward

    Technology could help address many of the challenges associated with tax collection. Digital tax systems, mobile money and online filing could help reduce inefficiencies and increase transparency. Some countries, such as Rwanda and Ghana, have already embraced technology to simplify processes and enhance compliance.

    However, many rural areas in sub-Saharan Africa lack the internet infrastructure needed to do this. Digital tax systems require tax authorities to invest in infrastructure and training.

    Still, as mobile technology penetrates the region, governments will be able to use digital tools to expand their tax base and improve compliance.

    Reducing corruption

    To strengthen tax compliance, improving the social contract between governments and citizens is essential. Research shows that when people believe their taxes are used for public goods and services that benefit them, they are more willing to comply.

    Tax morale can be improved through transparency, reduced corruption, and ensuring that tax revenues are visibly channelled into development projects.

    Targeted communication campaigns about how tax funds are used can help restore faith in government institutions.

    The path to improving tax systems and compliance in sub-Saharan Africa is long. But with the right policy interventions, governments can unlock revenue potential. This will contribute to stronger economies, better public services, and ultimately, more equitable and inclusive development across the region.

    – Why pay tax? African study finds trust in government is key
    – https://theconversation.com/why-pay-tax-african-study-finds-trust-in-government-is-key-239613

    MIL OSI Africa –

  • MIL-OSI Africa: Deputy President calls on the UK to raise tariff-free quota on wine from SA

    Source: South Africa News Agency

    Deputy President Paul Mashatile has called on the United Kingdom government to raise the tariff-free quota (TFQ) on wine and sugar coming from South Africa. 

    The Southern African Customs Union (SACU) and the Mozambique Economic Partnership Agreement (EPA) include provisions for a 70/30 split between bottled and bulk wine throughout the trade relationship. 

    “As the South African government, we urge flexibility for a 50/50 split. In our view, this does not necessitate an amendment of the EPA but can be a decision of the SACUM-UK Joint Council.

    “South Africa has requested that the United Kingdom raise the TRQ amounts allowed under the Environmental Protection Agency Framework for South African sugar to 171 thousand tonnes and for wine to 150 million litres,” he said on Monday. 

    The TFQ for imports of South African wine into the United Kingdom is currently sitting at 71.5 million litres per annum, which applies to 30% bulk and 70% packaged wine.

    “We call for the UK to agree to this change which is mutually beneficial and will benefit the UK bottling industry.”

    Deputy President Mashatile was speaking during the South African Heritage Month dinner hosted by Brand South Africa in London.

    The country’s second-in-command is in London for the second leg of his working visit to improve trade and investment relations between the two nations. 

    He said he believed that if South Africa could introduce local umqombothi, also known as African beer, or more wine to the global market, the country could double exports from South Africa to the United Kingdom, Germany, the United States, Netherlands and Canada.

    The Deputy President said another element that has worked to construct a robust economy and enhance economic relations with the United Kingdom is the conventional interchange of commodities and services, such as food and clothes. 

    “As you run your company and live in this area of the globe, you must show that South Africa is a nation moulded by a diverse range of cultures, languages, and traditions, all of which contribute to the vivid mosaic that defines South Africa.”

    Government of National Unity

    Shifting his focus to the Government of National Unity (GNU), he said the coalition government has demonstrated that South Africa embraces its diversity. 

    “We have shown to the world that, despite our differences, we can work together for a single goal – to create a stronger South Africa. We have also shown the world that our rainbow country has a thriving democracy.”

    He told the attendees that he was convinced that the GNU would endure and achieve its goals of driving inclusive growth and job creation, reducing poverty, addressing the high cost of living, and establishing a competent, ethical, and progressive State. 

    “However, as we mark 30 years of freedom this year, we must remember those who were at the forefront of the liberation of our nation and spent years in exile advocating for a peaceful and democratic South Africa.”

    The Deputy President paid tribute to those who continue to raise the South African flag high internationally by contributing to the welfare of their fellow citizens and the economy. 

    “We refer to these people as Global South Africans. Now to all South Africans living, working, studying or travelling abroad, it is an exciting time for you to be a Global South African – to be part of the South African story, to be a son or daughter of Africa, to be directly connected to what we confidently predict will be the African century.” 

    He applauded Brand South Africa for launching the Global South African programme, as the country works to position itself as a global player in an increasingly competitive world. 

    “We believe that as Global South Africans you are an untapped voice and advocates who can elevate our nation’s brand position to greater heights in international markets, whilst also shaping perceptions and the narrative about our beautiful and beloved country.” – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI Africa: KZN government intervenes in uMdoni Local Municipality

    Source: South Africa News Agency

    Decisive measures to address the governance and service delivery challenges in the uMdoni Local Municipality have been announced by KwaZulu-Natal Cooperative Governance and Traditional Affairs (CoGTA) MEC, Thulasizwe Buthelezi.

    Buthelezi is committed to improving service delivery, strengthen governance and enhance accountability within KwaZulu-Natal’s local government.

    He met with the full council on Monday to communicate the Provincial Executive’s decision to intervene in the municipality under section 154(1) of the Constitution.

    This follows extensive engagements with the municipality and community members aimed at restoring stability.

    Section 154(1) mandates national and provincial governments, through legislative and other measures, to support and strengthen the capacity of municipalities to manage their own affairs and to exercise their powers and functions.

    Buthelezi said he believed that the section 154(1) intervention, guided by the Provincial Executive, will provide the municipality with enhanced support from the provincial government.

    He announced that a local government specialist, Dhanpalan Devaraj Naidoo, will be appointed to guide the municipality through its current challenges.

    Naidoo brings 30 years of experience in local government, having served as a Municipal Manager in the Ugu District for eight years and in uMdoni Local Municipality for another eight years.

    The MEC said Naidoo’s expertise is expected to be invaluable in stabilising the municipality.

    “Naidoo is a seasoned local government specialist whose wealth of experience is unquestionable. We believe his expertise will be crucial in stabilising the municipality.

    “uMdoni is a key tourism hub that should exemplify good governance, sound financial management, and efficient service delivery. This is what ratepayers want to see,” Buthelezi said.

    The MEC also noted that the local government specialist will support the council without undermining its powers and responsibilities.

    The Provincial Executive’s decision to intervene has been welcomed by all parties in the council, who have pledged to work together with the specialist to ensure the municipality’s stabilisation.

    Suspension of senior officials commended

    Meanwhile, Buthelezi, has commended the suspension of five officials, including the Chief Financial Officer and Supply Chain Management Director, following financial misconduct allegations in the run-up to May 2024 elections.

    The officials were placed on suspension on Friday, pending the outcome of the investigation.

    “The suspensions send a strong message in restoring a culture of good governance and consequence management in the department,” Buthelezi said. – SAnews.gov.za
     

    MIL OSI Africa –

  • MIL-OSI Africa: Chikunga condemns Lusikisiki mass shooting

    Source: South Africa News Agency

    Minister in the Presidency for Women, Youth and Persons with Disabilities, Sindisiwe Chikunga, has condemned the heinous acts of crime that have resulted in the death of 18 family members in Lusikisiki, Eastern Cape.

    A total of 18 people were killed in a gruesome mass shooting over the weekend in Ngobozana village.

    Reacting to the incident, Chikunga emphasised that every human being has the inherent right to life, as it is enshrined by the constitution of the Republic of South Africa.

    “This right shall be protected by law, and no one shall be arbitrarily deprived of his or her life. It is for this reason that we are encouraged by the work of SAPS and other law enforcement agencies that are ensuring the total protection of life.

    “The death of the 18 family members must be investigated and those who are responsible should be held accountable, as they have collaborated to suspend the lives of innocent people,” Chikunga said.

    The Minister added that families serve as the primary socialisation agents, helping individuals to develop social skills.

    She called on the preservation of the family structure, which continues to provide a stable and secure environment.

    “The department also welcomes the psycho-social support and the intervention by the traditional leaders and the community members in the search for those responsible for this act of criminality,” Chikunga said.

    Meanwhile, Police Minister Senzo Mchunu and the National Police Commissioner, General Fannie Masemola, are currently visiting the bereaved families and are expected to address the communities in the afternoon. 

    According to the police, the suspect in connection with the murder is still at large. – SAnews.gov.za

    MIL OSI Africa –

  • MIL-OSI: Alliance Trust PLC – Total Voting Rights

    Source: GlobeNewswire (MIL-OSI)

    Alliance Trust PLC (“the Company”)

    Legal Entity Identifier: 213800SZZD4E2IOZ9W55

    Total Voting Rights

    In accordance with the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules, as at 30 September 2024, the total number of Ordinary shares of 2.5 pence each of the Company in issue is 284,244,600, of which 3,252,000 Ordinary shares are held in Treasury. Therefore, the total number of shares with voting rights is 280,992,600.

    The above figure (280,992,600) may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules.

    For further information, please contact

    Juniper Partners Limited
    Company Secretary

    Enquiries: 0131 378 0500

    The MIL Network –

  • MIL-OSI: Revenues of Latino-Owned Businesses Grew Last Year, But Earnings Fell Due to Rising Expenses, per 2024 Biz2Credit Study

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 01, 2024 (GLOBE NEWSWIRE) — Biz2Credit’s 2024 Latino-Owned Business Study found that while revenues of Latino-owned companies increased (+11.6%), expenses rose more (+ 22.7%), resulting in lower earnings in 2023-24 than in 2022-23 (-$41.1K).

    The annual study examined the performance of Latino-owned small to midsized companies — from early stage to established companies — in the U.S. from July 1, 2023, to June 30, 2024. It examines financial indicators including annual revenue, operating expenses, age of business, and credit scores of both Latino-owned and non-Latino-owned companies.

    “Revenues for small businesses rose overall, largely because of inflation. Earnings were down overall, but the average drop for Latino-owned businesses was not as sharp as for non-Latino-owned businesses,” said Rohit Arora, CEO of Biz2Credit and Biz2X, who oversaw the research. “When we analyzed earnings performance, Latino-owned businesses outperformed the others.”

    Key findings: Latino-owned vs. non-Latino-owned Businesses

    1. The average annual revenue of Latino-owned businesses increased by 11.6% from $601,636 in 2022-23 to $671,360 in 2023-24. Meanwhile, the average annual revenue for non-Latino Businesses increased by 11.5% from $667,204 in 2022-23 to $744,027 in 2023-24.
    2. Average earnings (Annual Revenue – Operating Expenses) for Latino-owned businesses dropped from $113,268 in 2022-23 to $72,168 in 2023-24, a drop of $41,100. Meanwhile, non-Latino-owned businesses declined from $159,365 to $94,237, a drop of $65,128. Overall, earnings across all businesses decreased by 40% year over year.
    3. Operating expenses for Latino-owned firms increased by 22.7% from $488,368 in 2022-23 to $599,192 in 2023-24, resulting in earnings decrease of 36.3% for Latino firms. Meanwhile, operating costs for non-Latino-owned companies increased 28% from $507,849 in 2022-23 to $649,790 in 2023-24, resulting in a 40.9% drop in earnings.
    4. The average personal (FICO) credit score* for Latino owned business increased from 641 in 2022-23 to 647 in 2023-24. In comparison, the personal credit score for non-Latino-owned business increased from 648 to 659 during the same timeframe.
    5. The age of business for Latino-owned business increased from 54 months (4.5 years) in 2022-23 to 64 months in 2023-24. This is an indication of the staying power of Latino-owned companies. In comparison, non-Latino-owned businesses were in operation for an average of 79 months (slightly more than 6.5 years).
    6. The average approved funding amount** for Latino-owned businesses rose from $55,396 in 2022-23 to $75,680 in 2023-24. The amount was $16,662 lower than that for non-Latino-owned businesses, which had $92,342 in 2023-24, up from $75,912 in 2022-23.
    7. The percentage of financing applications submitted by Latino-owned businesses, relative to the total number of submitted applications, increased slightly from 14.8% in 2022-23 to 15% in 2023-24. In 2024, financing applications by Latino-owned businesses increased 14.13% (year-over-year) compared to 2023. That surpassed applications by non-Latino owned businesses, which grew 12.78% year-over-year.
    8. The funding rate for Latino-owned businesses stands at 32%, slightly higher than the 31% rate for non-Latino-owned businesses. The average funded amounts** were $62,371 for Latino-owned businesses and $76,503 for non-Latino-owned firms.
    9. Construction accounted for the largest industry category of Latino-owned companies examined in the study, followed by Other Services (except Public Administration), Accommodation and Food Services, Retail Trade, and Transportation and Warehousing.
    10. By state, nearly one-quarter (24%) of funding requests from Latino-owned firms came from Florida, followed closely by California (19.4%), and then Texas, New York, and New Jersey.

    “Inflationary pressures significantly hurt the earnings of all small businesses in the last year, and Latino-owned firms were not immune. While their revenues rose in 2023-24, their expenses increased almost twice as much,” said Arora. “Profits for Latino-owned companies seeking financing were down 36% on average, as a result.”

    “Many factors combined, including increased labor costs, rising fuel prices, and overall inflation. High interest rates also pinched companies that borrowed money for working capital or expansion,” Arora added. “The good news is that the growth rate of inflation has been easing a bit, and the Federal Reserve has lowered interest rates, thus bringing down the cost of capital.”

    *Average credit score is derived from the personal FICO credit score of business owners
    ** Average approved funding amounts and average funding sizes are determined by the qualifications of funding applications, including FICO scores and business revenues. any discrepancies are driven by these financial metrics.

    Impact of Latino-owned businesses on the U.S. Economy

    The U.S. is home to over 63 million Latinos, accounting for roughly 19% of the nation’s population. Latinos contribute a staggering $3.2 trillion to the economy and own nearly 5 million businesses that collectively generate more than $800 billion annually, according to the Stanford Graduate School of Business Latino Entrepreneurship Initiative (SLEI).

    Further, Latino entrepreneurs are starting businesses at more than twice the rate of the general U.S. population. This increase has led to a higher proportion of new businesses being owned by immigrants overall. In 2023, immigrants were responsible for 36% of new business launches, up from 25% in 2019, according to the U.S. Census Bureau.

    Latino immigrants significantly outpace other groups in business ownership, and they comprise 52% of all Latino-owned businesses. In contrast, only 7% of White-owned employer businesses are immigrant-owned, according to the SLEI. Further, Latino-owned businesses are set to revolutionize the U.S. economy, as Latinos are projected to make up 29% of the population by 2050 and contribute a staggering $1.4 trillion to the U.S. economy, according to JPMorgan Chase.

    Methodology

    Biz2Credit’s 2024 Latino-Owned Business Study is an annual review of the financial performance of Latino-owned small to midsized businesses in the United States, categorized by revenue generation. The study reviewed over 121,000 funding requests from both Latino-owned and non-Latino-owned businesses across all 50 states and 20 industries by analyzing credit inquiries and applications from July 2023 to June 2024.The analysis focused on variables such as submitted applications, annual revenue, operating expenses, business age, personal credit (FICO) scores*, funding rates, and average loan sizes. The study offers insights into the performance of Latino-owned private companies over the past year, using 2022-2023 data to compare average revenue and expenses year-over-year for 2023-2024.

    About Biz2Credit
    Founded in 2007, Biz2Credit has helped thousands of companies access more than $8 billion in small business financing. The company is expanding its industry-leading Biz2X® technology in custom digital platform solutions for banks and other financial institutions, investors, and service providers. Visit http://www.biz2credit.com, Instagram, Facebook, and X (formerly Twitter).

    Media Contact: John Mooney, (908) 720-6057, john@overthemoonpr.com

    The MIL Network –

  • MIL-OSI Security: Mark Rutte takes office as NATO Secretary General

    Source: NATO

    On Tuesday (1 October 2024), Mark Rutte took office as the NATO Secretary General. He was welcomed to NATO Headquarters in Brussels by the outgoing Secretary General Jens Stoltenberg, whose term ends after ten years. Mr Rutte and Mr Stoltenberg laid a wreath during a ceremony at the NATO Memorial to the Fallen.

    At a special session of the North Atlantic Council, Mr Stoltenberg formally handed over to Secretary General Mark Rutte. “It is a great honour to be here and to take up the position of NATO Secretary General” Mr Rutte said before thanking Allies for entrusting him with the responsibility of guiding the Alliance in the coming years.

    Secretary General Rutte outlined his three priorities for the Alliance. “The first is to keep NATO strong and ensure our defences remain effective and credible, against all threats” he began. “My second priority is to step up our support for Ukraine and bring it ever closer to NATO, because there can be no lasting security in Europe without a strong, independent Ukraine” he continued, adding that his “third priority is to strengthen our partnerships” in a more interconnected world.

    The Secretary General also paid tribute to his predecessor describing his tenure as “exemplary” and adding that “today NATO is bigger, NATO is stronger and is more united than ever, that is in large part because of your leadership.”

    In his farewell remarks Mr Stoltenberg commended Mr Rutte’s pragmatism and consensus-building skills while noting that “you don’t compromise on our values and principles.” He also praised his successor’s “personal commitment to our transatlantic bond. And your unwavering support for Ukraine.”

    The handover was marked by the ceremonial passing of an historic gavel.

    MIL Security OSI –

  • MIL-OSI New Zealand: Awards – University of Otago Earns Highest Award in New QS Stars Rating System

    Source: QS Quacquarelli Symonds

    London, 1st October 2024: Global higher education analyst QS Quacquarelli Symonds has awarded the University of Otago 5+ Stars in its prestigious QS Stars assessment.

    The award makes the University of Otago the first university in the world to be awarded the top rating under the revamped Stars methodology, which was introduced earlier this year. The new criteria place an increased emphasis on institutions’ sustainability performance.

    Created in 2009, QS Stars rates institutions out of a possible five stars based on areas that are most important to students, including facilities, teaching, employability, research and rankings performance.

    Jason Cushen, Director International at the University of Otago, said: “As New Zealand’s first university, the University of Otago has global reputation for research and teaching excellence. QS Stars demonstrates to the world other aspects of the unique Otago experience that are important to students, such as our world class facilities, exceptional graduate employability, and high levels of student support.”

    QS Stars was relaunched in January 2024 with a new methodology that introduced Sustainability as an assessment category. The enhancement was designed to reflect universities’ pivotal role in tackling contemporary global challenges while emphasising the increasing importance of sustainability to prospective students.

    Cushen added: “QS Stars has always adapted to measure what is important to the changing needs of students and evolving missions of universities. The University of Otago has a commitment to sustainability in all its forms, and we have particularly welcomed the new Environmental, Social and Governance related measures under the new methodology.”

    Florence Webb, Head of Frameworks at QS, said: “The University of Otago’s achievement of the prestigious 5+ Stars rating, the highest possible accolade, highlights its outstanding performance across key higher education metrics and is a recognition of its commitment to excellence, both locally and overseas.”

    Notes

    QS Quacquarelli Symonds  

    QS Quacquarelli Symonds is the world’s leading provider of services, analytics, and insight to the global higher education sector, whose mission is to empower motivated people anywhere in the world to fulfil their potential through educational achievement, international mobility, and career development. Launched in 2009, QS Stars currently assesses more than 700 institutions across more than 70 countries. 

    MIL OSI New Zealand News –

  • MIL-OSI Russia: SPbGASU has developed a facility for testing the crack resistance of fiber-reinforced concrete

    MILES AXLE Translation. Region: Russian Federation –

    Source: Saint Petersburg State University of Architecture and Civil Engineering – Saint Petersburg State University of Architecture and Civil Engineering –

    Mikhail Zhavoronkov, Associate Professor of the Department of Building Materials Technology and Metrology, completed the research work “Study of the influence of dispersed reinforcement parameters on the behavior of fiber-reinforced concrete under load” as part of the grant competition for the implementation of research work by scientific and pedagogical workers of SPbGASU in 2024.

    Fiber concrete has a number of advantages over traditional concrete and reinforced concrete. According to various sources, fiber concrete has increased compressive and bending strength, impact resistance, etc. One of the main advantages of fiber concrete is its increased crack resistance – the ability of the material to resist the formation and development of cracks.

    During the study, an original design setup was developed and assembled. The setup allows for three-point bending of fiber concrete samples measuring 150×150×600 mm and monitoring the applied load and sample deflection caused by this load. It also provides the ability to monitor the distribution of deformations along the height of the working section of the sample. The implementation of this capability allowed for measuring the height of the compressed zone of the cross-section of the tested sample and monitoring its change.

    The setup includes a loading device and a sensor system. The loading device consists of two crossbars, movable and fixed, and two parallel screw pairs. Simultaneous rotation of the screw pairs causes linear movement of the movable crossbar. A concrete or fiber concrete sample is placed between the crossbars on special stops that ensure its three-point bending. The screw pairs are driven into rotation by a system of electric motors, gearboxes, electric couplings, and a chain transmission. The selection of the leading motor, its speed, and direction of rotation is carried out from the control panel. This is done in such a way as to provide the widest possible range of rotation speed adjustment with minimal loss of torque.

    The system of sensors monitoring the behavior of the sample under load during bending includes a strain gauge, 4 linear encoders and 16 strain gauges. The sensors are polled alternately, several times per second, and the obtained data are sent to the computer using a simple circuit solution, where they are displayed in the form of corresponding graphs and tables.

    The obtained graphs of the dependence of deflections on the applied loads can be used to calculate the force and energy characteristics of crack resistance according to GOST 29167-2021, and according to the readings of strain gauges, it is possible to control the height of the compressed zone at different stages of deformation and destruction of samples.

    The properties of fiber concrete and its behavior under load have been studied at the Department of Construction Materials Technology and Metrology of SPbGASU for decades, including within the framework of the scientific school “Nanostructured modification and dispersed reinforcement of building products and structures”. At present, much attention is paid to the topic of theoretical modeling of the behavior of fiber concrete under load. In the course of developing this topic, questions arose about the exact determination of the number of fibers involved in the work of fiber concrete under load. In particular, the installation described above was developed to determine their number.

    The data obtained during the study can be used in the design of fiber-reinforced concrete structures and form the basis for further research, and the mastered testing methods can be implemented during the educational process as part of laboratory work in the relevant disciplines.

    Please note: This information is raw content directly from the source of the information. It is exactly what the source states and does not reflect the position of MIL-OSI or its clients.

    Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    http://vvv.spbgasu.ru/nevs-and-events/nevs/spbgasu-developed-an installation-for-testing-the-crack-resistance-of-fiber-reinforced concrete/

    EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

    MIL OSI Russia News –

  • MIL-OSI United Kingdom: New mandatory refresher training available from today

    Source: United Kingdom – Government Statements

    Door supervisors and security guards can enrol in safety-critical refresher training courses from today (1 October 2024) to help keep the public safe.

    The training will be compulsory for door supervisors and security guards wishing to renew a licence after 1 April 2025.

    The qualifications update safety-critical skills door supervisors and security guards use to keep the public safe. The Security Industry Authority (SIA) encourages affected licence holders to take the training as soon as possible.

    The courses are available from today to allow individual licence holders sufficient time to plan and book onto courses before the qualifications become mandatory on 1 April 2025. The training is available nationally from approved training providers.

    Tony Holyland, Head of Individual Standards for the SIA, said:

    Protecting the public is at the heart of what we do, and professional security operatives undergo training to give them the skills they need to keep people safe.  

    We know that skills can fade over time, which is why the training being rolled out today is so important. This is about raising the standards in private security and refreshing those fundamental skills to help security operatives deal with the ever-changing threats of the modern world.

    This follows the announcement last month that the SIA introduced mandatory refresher training to help door supervisors and security guards refresh their skills and learn up-to-date content on topics including spiking and terror threat awareness.

    Alongside the requirement to present an up-to-date Emergency First Aid certificate, the following will be included in the refresher training:

    For door supervisors: 

    • conducting searches 

    • physical intervention 

    • protecting people in vulnerable situations, including content on spiking 

    • terror threat awareness – ACT/You can ACT certificate 

    For security guards: 

    • conducting searches 

    • terror threat awareness – ACT/You can ACT certificate 

    • protecting people in vulnerable situations

    Individuals holding a door supervisor licence can choose one of the following options: 

    • take the door supervisor refresher training and renew their door supervisor licence 

    • take the security guard refresher training and switch to a security guard licence

    The SIA works with the private security industry to set standards and with awarding organisations to ensure the qualifications are offered via approved training providers.   

    Accredited ‘top-up’ awards were introduced for door supervisors and security guards in October 2021 as a requirement for renewing licences. Awarding organisations will continue to offer  the ‘top-up’ qualifications until the end of January 2025. This means that any licence holders who have yet to complete these qualifications can do so.

    Notes to editors 

    As the regulator of the private security industry the SIA’s role is to set the standard for what someone wanting to apply for a licence must know or be capable of doing. The SIA does not run training courses or receive any money from the fees people pay to their training provider.    

    Read more about refresher training. 

    Read our answers to commonly asked questions about refresher training.

    Further information

    The Security Industry Authority is the regulator of the UK’s private security industry. Our purpose is to protect the public through effective regulation of the private security industry and working with partners to raise standards across the sector. We are responsible for licensing people who do certain jobs in the private security industry and for approving private security companies who wish to be part of our voluntary Approved Contractor Scheme.

    The SIA is an executive non-departmental public body, sponsored by the Home Office. For more information, visit: http://www.gov.uk/sia. 

    You can also find us on LinkedIn @Security Industry Authority, Facebook @theSIAUK, YouTube @TheSIAUK and X (formerly known as Twitter) @SIAuk.

    Updates to this page

    Published 1 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: Council relaunches small business grant to support local business growth

    Source: City of Portsmouth

    Portsmouth City Council have announced today the second round of the Portsmouth Match Fund which is a continuation of the fund that has already helped local businesses to start and grow. This grant along with business support from the Council and partners is designed to help new business start ups and existing small businesses to grow.

    The new Portsmouth Match Fund will fund eligible Portsmouth businesses between 20-50% (minimum amount of £1,500 and maximum amount of £4 ,000) towards a growth or start up project. Ideal business development costs could fund a new digital platform, e-commerce development, new product development, purchase of new equipment or training.

    This grant is a council initiative funded from the UK Shared Prosperity Fund. To date £24,000 in total has been granted to 7 small businesses in Portsmouth. One of these businesses was Cosham based Pauline Macarons who purchased a van.

    Pauline Genevet owner of Pauline Macarons said:

    “Receiving the grant enabled me to purchase a van for my macarons business, transforming how I operate. With the van, I can now easily store and transport my products to multiple markets, ensuring they arrive fresh and in perfect condition, while reaching more customers than ever before.’

    Cllr Steve Pitt, Leader of the Council with responsibility for economic development said:

    “I’m thrilled to announce the return of the Portsmouth Match Fund for a second round. This grant offers a wonderful opportunity for local businesses to invest in their growth and innovation. By providing financial support, we’re empowering our businesses to thrive and strengthen our local economy.”

    Applications are open to start up and small businesses in Portsmouth and must be submitted by Sunday 27 October.

    For more information and to apply for the Portsmouth Match Fund visit portsmouth.gov.uk/match-fund

    MIL OSI United Kingdom –

  • MIL-OSI United Kingdom: UK cocoa buyers complete trade mission to Solomon Islands

    Source: United Kingdom – Executive Government & Departments

    The delegation arrived in the country on 20 September, to build partnerships, gain deeper understanding of the cocoa market and cocoa farmers across the country.

    A group photo with community members at one of the visited cocoa farming communities on Guadalcanal, Solomon Islands.

    The UK government has supported 17 cocoa buyers to visit Solomon Islands to increase cocoa exports to the UK.

    Supporting the cocoa trade between Solomon Islands and the UK is a win-win, driving growth and increasing incomes for Solomon Islands farmers whilst giving UK consumers access to the best quality Solomon cocoa.

    The delegation arrived in the country on 20 September, to build partnerships and gain a deeper understanding of the cocoa market and cocoa farmers across the country.

    Highlights from the mission included visiting Pilapaso Cocoa plantation and micro chocolate factories, Amazing Grace on Guadalcanal where they witnessed first-hand the harvesting and fermentation processes conducted by the farm owners, and two days in Malaita province where they visited cocoa farms across the northern region.

    The UK cocoa buyers also worked with Solomon processors, visiting Cathliro’s café, processing and chocolate making facilities and the Kokonut Pacific Solomon Islands’ (KPSI) shop, coconut oil and cocoa processing and chocolate making facility in East Honiara.

    Their mission concluded with a regional cocoa workshop held at the Heritage Park Hotel at which cocoa producers and exporters from across the Pacific attended and discussed market requirements and sourcing opportunities.

    Under the UK-Pacific Economic Partnership Agreement that started in January 2021 goods from the Pacific can enter the UK market duty-free and quota-free.

    Thanks to the deal, high-end UK chocolatiers are turning to Solomon Islands for their cocoa: boosting Solomon exports and incomes, whilst bringing quality products to the UK market.

    Updates to this page

    Published 1 October 2024

    MIL OSI United Kingdom –

  • MIL-OSI Video: UK Baroness Butler-Sloss on parliamentary scrutiny #LordSpeakersCorner #HouseOfLords

    Source: United Kingdom UK House of Lords (video statements)

    ‘The country has to have a rule of law’

    Baroness Butler-Sloss, formerly the highest-ranking female judge in England and Wales, discusses her long legal career, success in breaking through the ‘glass ceiling’ holding back women lawyers, and her concerns about the eroding of parliamentary scrutiny over the last decade.

    Catch-up on House of Lords business:

    Watch live events: https://parliamentlive.tv/Lords
    Read the latest news: https://www.parliament.uk/lords/

    Stay up to date with the House of Lords on social media:

    • Twitter: https://twitter.com/UKHouseofLords
    • Instagram: https://www.instagram.com/UKHouseofLords/
    • Facebook: https://www.facebook.com/UKHouseofLords
    • Flickr: https://flickr.com/photos/ukhouseoflords/albums
    • LinkedIn: https://www.linkedin.com/company/the-house-of-lords
    • Threads: https://www.threads.net/@UKHouseOfLords

    #HouseOfLords #UKParliament

    https://www.youtube.com/watch?v=AIfha2nal2o

    MIL OSI Video –

  • MIL-OSI Economics: Development Asia: Enhancing Environmental Safeguards in Financial Intermediaries

    Source: Asia Development Bank

    A look at how ADB, a financial intermediary (FI) itself, appraises projects and manages them over the project cycle can help give a better understanding of how other FIs manage theirs. Multilateral development banks (MDBs) and governments follow the same logic flow when deciding whether or not to invest.

    First, a proposed project should meet the minimal criteria to be eligible for consideration and assessment. ADB has a Prohibited Investment Activity List, which identifies investment activities that do not qualify for ADB financing. Other FIs might have their own list to reflect their priority areas or discouraged investment. If a proposal already fails at technical and financial screening, it will be returned for revision or rejected outright without the need to proceed to environmental–social screening.

    Second, after passing the eligibility screening, a project’s technical feasibility and economic–financial viability will be evaluated in the feasibility study. This necessitates development of the project’s technical design, which is also needed to estimate the cost.

    The evaluation of environmental sustainability and social acceptability of a project was added in the 1970s and has gradually become stand-alone as the Environmental Impact Assessment (EIA). 

    The EIA aims to (i) aid decision making (e.g. drop or proceed with a project and conditions; (ii) improve the project design to minimize negative impacts (e.g. by adding pollution treatment); and (iii) mitigate the residual impacts through action plans such as the environmental management plan.

    Third, once the feasibility study and EIA show the proposed project meets technical-financial and social-environmental requirements, and related actions can be carried out, the FI (or government) can decide to approve the project and proceed with its execution.

    Since these assessments are time- and resource-consuming, their intensity and level of management need to match the level of risks and impacts. Most countries and MDBs classify environmental impacts into high, medium, and low level categories that require corresponding degrees of evaluation—full EIA, simplified EIA, and no assessment—and management. Likewise on the technical aspect, not all projects require a full feasibility study.

    Such impact categorization needs to take place during the proposal stage to determine the level of ensuing assessment. How can the impact level (i.e. category) of a proposal be judged? This is one of the major challenges for FIs, which has led to mis-categorization.

    MIL OSI Economics –

  • MIL-OSI Economics: Joachim Nagel: Interactions between monetary policy, regulation and financial markets

    Source: Bank for International Settlements

    Check against delivery 

    1 Introduction

    Ladies and gentlemen,

    Good morning and welcome to the Conference on Markets and Intermediaries, an event jointly organised by the Bundesbank and the Humboldt-Universität zu Berlin.

    In my opening speech, I will take you on a helicopter tour of the programme and share some thoughts on the topics that will be covered over the next two days. The programme certainly does cover a wide range of topics. It addresses current challenges facing financial markets, financial intermediaries, and central banks.

    Since the Great Financial Crisis, central banks worldwide have expanded their balance sheets, injected additional liquidity into the financial system, and broadened their collateral frameworks. In addition, financial regulation has been adapted to make the financial system more stable.

    While these measures served useful purposes, they also had side effects, not least in money and capital markets. Policymakers and regulators are therefore well-advised to evaluate the effects of their measures.

    2 Non-bank financial institutions

    The first session is dedicated to non-bank financial institutions, or NBFIs.

    This sector includes, amongst others, insurers, investment funds, and money market and hedge funds. It is strongly interconnected, both with other sectors and across countries. Its share of the global financial system, as measured by total financial assets, is almost one-half.

    Clearly, it could be a source of systemic risks. But the risks presented by NBFIs often lie out of view. This makes them more difficult to monitor and assess. All the more important, then, to close data gaps and strengthen the resilience of the sector.

    One particular source of vulnerability are fire sales of open-ended funds. These are the subject of a paper that Rüdiger Weber is presenting this morning.1

    Open-ended funds are especially prone to fire sales because, during episodes of market stress, they often face significant pressure from investors who want to liquidate their holdings quickly. Fund managers may then be forced to offload fund assets at short notice. And if those assets are less liquid, they may have to sell them at lower prices. This may amplify price declines and liquidity shortages.

    Effective liquidity management and regulation are very important here. A recently published Bundesbank paper shows that price-based liquidity management tools help keep the financial fragility of open-ended mutual funds in check.2

    In times of stress, investors also try to protect their capital by shifting it into safer assets. However, this flight to safety can intensify the downward pressure on the prices of riskier assets as demand for the latter declines.

    The Financial Stability Board is doing important work in this field. But it is currently focused on microprudential regulation. I think the FSB’s work on this front needs to be complemented by the development of macroprudential regulation for the NBFI sector.

    In any case, we should not jeopardise what we have achieved in the banking regulation space by allowing stability risks to build up elsewhere in the financial system.

    3 Central bank digital currencies

    The second session is on central bank digital currencies (CBDC).

    CBDC is an issue that is keeping almost all central banks very busy at the moment. The Eurosystem is hard at work preparing for the potential introduction of a digital euro.

    As the world turns increasingly digital, the digital euro would provide a secure and efficient digital payment option that complements cash. It aims to strengthen Europe’s strategic autonomy by building on European infrastructures, and to promote innovation in the private sector.

    However, introducing a CBDC could also have unintended side effects. If bank customers were allowed to hold it in large amounts, periods of banking distress could trigger large, sudden shifts out of deposits into CBDC. This could lead to financial instability.

    And if CBDC were too attractive a substitute for deposits, commercial banks’ access to retail deposits could erode over time. Which could lead to structural disintermediation and call into question our proven two-tier banking system. It is therefore of the essence to design CBDC in a way that prevents these risks from materialising.

    The challenge is to optimise the usability of CBDC as a means of payment while at the same time limiting its effects on the market for bank deposits. Two decisive factors in this regard are remuneration and holding limits. Let me say a few words on each of these.

    Remuneration means the rate of interest on people’s holdings of CBDC. If that rate of interest were positive, holding CBDC would be more attractive. But at the same time, that would lead to outflows out of bank deposits.

    Based on a welfare-maximising model setting, Pascal Paul will argue later this afternoon that central banks should allow for a positive interest rate.3 This stands in contrast to the intention of the Governing Council not to remunerate digital euro holdings.4

    Why are we not in favour of remuneration?

    Because our aim is to make the digital euro a digital complement to cash, and there is no remuneration for holding cash. We neither want to compete with commercial banks for deposits, nor do we want to employ the digital euro as a monetary policy instrument.

    The second, perhaps even more important, factor is holding limits. We intend to limit digital euro holdings to a certain amount, because we want to ensure the digital euro does not lead to large sudden shifts or disintermediation.

    The limits currently under discussion range from €500 to €3,000.5 A recent Bundesbank paper finds that an optimal holding limit would be in a range between €1,500 and €2,500.6 On the Governing Council, we have not yet taken a decision on the exact amount. What is more, EU legislators might be involved here.

    But as regards the practical usability of the digital euro, the exact limit does not play a major role anyway. This is because a reverse waterfall system, as it is called, would allow users to link their digital euro wallet to their bank account. They can then convert their bank deposits into digital euro automatically and instantly if their holdings are insufficient to make a payment.

    4 Banking and deposit flows

    Allowing users to convert an unlimited amount of deposits into CBDC would expose commercial banks to substantial run risk. In any case, zero or lower interest rates will not discourage them from doing that in times of crisis. However, digital bank runs can happen even without CBDC.

    The failure of Silicon Valley Bank and other regional banks in March 2023 showed how quickly customers can withdraw their deposits these days. At Silicon Valley Bank alone, customers pulled out USD 42 billion within the space of a single day, which equated to around one-quarter of total deposits. And another USD 100 billion would have been withdrawn a day later.7 The depositors on the run were apparently account holders with uninsured deposits.

    Banking and deposit flows are the subject of Session 3. Dominic Cucic will present a paper showing that bank customers do indeed redistribute their deposits when deposit insurance limits change.8 Credible and reliable deposit insurance helps to prevent bank runs and preserve financial stability.

    In the euro area, we currently have deposit insurance at the national level. Adding a European layer in the form of a hybrid model would help prevent situations where large shocks overwhelm national deposit insurance systems and lead to cross-border contagion.

    As a European layer should be risk-based, large exposures of banks to individual sovereigns are an issue. Currently, many banks hold a disproportionately large number of bonds issued by their domestic governments. If this were to continue, a common deposit insurance arrangement could lead to a redistribution of sovereign solvency risks.

    In my view, the new EU legislative session provides a good opportunity to move forward on both issues: with a reduction in banks’ exposures to individual sovereigns, and a common European deposit insurance system.

    5 Central bank interventions and market behaviour

    Session 4 of this conference focuses on the impact of central bank interventions on market behaviour. Both papers in this session underline that such central bank measures need to be carefully designed.9

    Central banks have taken a wide range of non-standard monetary policy measures to ensure sufficient monetary stimulus at the effective lower bound. But in the medium to long term, such policies may lead to inefficiencies. These could arise in financial markets themselves or in the allocation of resources affected by the boost to lending.

    This makes it all the more important to evaluate the instruments used and the lessons learned. It is therefore very fitting that we are currently carrying out a strategy review in the Eurosystem. Amongst other things, this will provide an opportunity to critically review the quantitative easing policies we have seen in the past.

    The extensive bond purchases contributed to price stability in an era of low inflation, but they were also associated with numerous side effects in financial markets. Without prejudging the outcome of the review, I think their use should be limited to exceptional circumstances.

    6 Conclusion

    Ladies and gentlemen,

    The conference concludes with a panel discussion on the ECB’s new operational framework. As I have already expressed my views on this on a different occasion,10 I will end my speech by expressing my gratitude.

    Thanks to the organisers from the Bundesbank and Humboldt University for setting up this conference. Thanks to the presenters, discussants and panellists for sharing their insights. Thanks to all participants for their contributions. And special thanks to Annette Vissing-Jørgensen from the Federal Reserve Board, who will give a keynote on “Balance sheet policy above the effective lower bound”.11

    Now I wish you all an exciting conference with valuable insights.

    Thank you very much. 

    MIL OSI Economics –

  • MIL-OSI Economics: Swaminathan J: Governance in Small Finance Banks – driving sustainable growth and stability

    Source: Bank for International Settlements

    Chairpersons and Directors of the Boards of Small Finance Banks; Chief Executive Officers of SFBs; Executive Directors, Chief General Managers and colleagues from the Reserve Bank of India; ladies and gentlemen. A very good morning to all of you.

    It is an honour to address this distinguished gathering in the inaugural conference of Board of Directors of Small Finance Banks organised by the RBI. As has been mentioned, this conference is in continuation of the Reserve Bank’s efforts to reach out to its supervised entities through a direct dialogue with their Boards and Top Management. Our objective is to reaffirm the importance of good governance for maintaining financial stability and fostering sustainable growth.

    In his address1 to the Directors of Public and Private Sector Banks last year, the Governor outlined a comprehensive 10-point charter that addressed key aspects such as the role of the Board, its independence, the importance of setting the tone from the top, etc. His speech serves as an excellent blueprint for regulatory expectations from the Boards of Directors, and I encourage you to review it if you haven’t already.

    Today, I would like to discuss three key issues with you: (i) the vital role of Small Finance Banks in promoting financial inclusion, (ii) the necessity of strengthening governance and assurance functions for sustainable growth, and (iii) important considerations regarding business models and risks that Boards should be mindful of.

    Important Financial Inclusion objective of SFBs

    As you are aware, the licensing of Small Finance Banks was introduced a decade ago, in 2014, with the primary objective of advancing financial inclusion. Beyond serving as a vehicle to mobilise savings, SFBs were also envisioned to extend affordable credit to underserved and unorganised sectors, such as small and marginal farmers as well as small business units, by leveraging technology to reduce costs and improve accessibility.

    India, today, stands at a pivotal moment in her development trajectory. In the last 75 years, we have transformed ourselves from an agrarian economy into one driven by industry and services. However, translating our GDP into higher per capita Gross National Income comparable to developed economies will require a comprehensive approach towards inclusive and sustainable economic growth. This will inter-alia entail education, skill development, employment generation, and more pertinently further deepening of financial inclusion. Thus, the goal for small finance banks is not ‘small’. On the contrary, it is very significant, as SFBs play a crucial role in extending financial services to the underserved, fostering entrepreneurship, and driving inclusive growth that will be essential for India’s progress towards becoming a high-income economy.

    In a developing country like India, it is imperative for the financial sector, including small finance banks to strike a balance between profitability and social objectives. This can be achieved through a strategic focus on sectors that deliver high social impact, ensuring that financial growth is aligned with the broader goal of inclusive development. It is therefore essential for SFBs to actively participate in extending credit under various Government Sponsored Schemes to promote greater accessibility of affordable credit, especially among the vulnerable sections of the society.

    As the target group of such lending is mostly the marginalised and underserved sections of the society, it is essential for the SFBs to adopt responsible lending practices. It is disheartening to come across egregious practices by some SFBs, such as charging excessive interest rates, collecting instalments in advance as well as not adjusting such advance collections against loan outstanding, levying of usurious fees, etc. It is also observed that grievance redressal mechanism is far from adequate in most SFBs.

    I therefore feel that periodically reviewing how your bank is fulfilling its financial inclusion objectives is an area that Boards should give much deeper consideration to. It is not just about meeting regulatory requirements such as priority sector lending but also about assessing the true impact of your efforts on underserved communities. Boards can reflect on whether the bank is genuinely reaching marginalised groups, such as low-income households, small businesses, and rural populations, and how effectively it is using technology and innovative products to bridge financial gaps, as these were the objectives of having a differentiated licensing for SFBs.

    Strengthening Governance

    An effective governance framework is the foundation of resilient and well managed institutions, especially in the context of banks. There needs to be a clear division of responsibilities between the Board and the management to ensure smooth functioning of the bank. While the Board is responsible for setting the overall strategic direction, establishing policies, and ensuring that the bank adheres to regulatory frameworks and ethical standards, the management is responsible for the execution of the Board’s strategy and operations. It is the Board’s role to provide oversight, asking the right questions and holding the management accountable for executing the bank’s strategy within the agreed risk appetite.

    In this context, it is imperative that the views of the Board are clearly articulated and documented in the minutes of the meetings of the Board and its various sub-committees. It is said that the ‘palest ink is better than the best memory’. Proper documentation serves as a vital record of the Board’s deliberations, decisions, and rationale behind those decisions, ensuring transparency and accountability in governance. Clear minutes not only provide a historical account of the Board’s discussions but also serve as a reference for future decision-making, helping to maintain continuity and clarity in governance practices.

    Boards should prioritise proper succession planning for top management. Having just one Whole Time Director (WTD) can create potential vulnerabilities, especially in times of transition or unforeseen circumstances. Without a well-thought-out succession plan, the bank may face leadership gaps that could disrupt operations and affect strategic decision-making. A broader pool of experienced leaders also contributes to better governance and more resilient management structures. We observe that while the SFBs are strengthening their Boards by bringing in new directors, some SFBs are yet to ensure the presence of at least two Whole Time Directors. I would request these banks to expeditiously consider appointing more WTDs.

    Empowering Assurance Functions

    Boards should accord due importance to assurance functions, namely, risk management, compliance and internal audit. These functions play a critical role in identifying and mitigating risks, ensuring compliance with laws and regulations as well as safeguarding the organisation’s integrity.

    Boards should ensure that heads of assurance functions are positioned appropriately within the organisational hierarchy and granted direct access to the Board. Dual-hatting, or combining assurance responsibilities with operational or management duties, undermines the independence and objectivity of assurance functions by creating conflicts of interest. Therefore, any dual hatting of assurance functions, should be avoided.

    Key risks to reflect upon

    Small Finance Banks have demonstrated strong growth since their inception, now accounting for 1.18 percent of total banking assets (as of March 2024). This is a substantial rise from 0.44 percent in March 2018. The deposit base has grown at a 32 per cent compounded annual growth rate (CAGR) over the last five years whereas net advances recorded a CAGR of 26 per cent. While the business growth in Small Finance Banks is indeed impressive, it is imperative that Boards remain vigilant for hidden and emerging risks that could jeopardise their long-term success.

    In this context, I would like to highlight a few areas that Boards could keep in mind.

    Business model

    Firstly, I would urge Boards to consider the sustainability of their growth strategies and business models by conducting a thorough review of both the liability and asset sides of the balance sheet. Specifically, they should assess whether there is an overdependence on high-cost term deposits or bulk deposits from a limited number of institutions. Additionally, they should evaluate any substantial asset exposures that could adversely impact the bank if they were to sour. These are essential aspects that the Board and its Risk Management Committee must scrutinise to ensure long-term stability and resilience.

    Credit risks

    Secondly, I would like to emphasise proper credit risk underwriting. While many banks have expanded into unsecured retail lending, hoping to leverage the diversification benefits it offers, there is an underlying correlation risk that becomes more pronounced during economic downturns. In such scenarios, the credit profile of a large segment of borrowers can be significantly impacted, leading to higher default rates. This highlights the importance of rigorous underwriting processes that carefully assess the creditworthiness of borrowers, rather than relying solely on automated systems or algorithms. Effective underwriting should consider a comprehensive range of factors, including income stability, credit history, and the overall economic environment, to ensure that loans are made judiciously.

    Further, while digital lending solutions have streamlined the process and made access to credit easier, on-the-ground presence for collections remains crucial. Resorting to coercive recovery practices as a means of mitigating risk is not a sustainable solution. Such practices not only harm the bank’s reputation but can also lead to legal and regulatory repercussions. A better approach is to implement collection strategies that prioritise communication and collaboration with borrowers. This includes strictly adhering to fair practices code and adopting an empathetic approach while dealing with stressed loan book.

    Cyber-security risk and third-party dependencies

    Thirdly, I would like to address the issue of cyber security and IT vulnerabilities. Being relatively new entities, SFBs have used technology to enhance their product offerings and customer service. However, with their increasing digital footprint, these banks face significant operational risks from growing cyber threats, digital frauds, and possible data breaches.

    The cyber security landscape is evolving rapidly, and SFBs must stay ahead of emerging threats to protect their customers’ data and maintain operational resilience. The SFBs should adopt robust business continuity plans and effective IT outsourcing strategies. There is also a need to ensure rigorous change management processes, comprehensive data protection measures, vigilant transaction monitoring, stringent access controls and network security protocols. These measures will help SFBs to significantly enhance their IT resilience against possible disruptions.

    Operational Risk

    Fourthly, while I have covered cybersecurity threats, I would also like boards of SFBs to be mindful of the larger issue of operational risks. During periods of rapid growth, the focus on increasing market share, launching new products, and acquiring customers can lead to a neglect of essential risk management practices. For example, hastily onboarding new customers without thorough KYC due diligence or rushing the deployment of technology solutions without adequate testing can increase the likelihood of frauds, errors and service disruptions. Growth is important for the success of Small Finance Banks. However, it must not come by overlooking operational controls.

    Another significant area of concern for operational risk is the high attrition rate among staff in Small Finance Banks. While the branch network and employee headcounts are expanding, the sector faces a very high attrition rate of nearly 40 per cent, particularly among frontline staff and junior management. Such elevated turnover, though mostly at the entry and junior management levels, poses substantial operational risks, as it can lead to a loss of institutional knowledge, disruption in service delivery, and increased training costs for new hires. To mitigate these risks, Board-level efforts are essential to focus on employee retention strategies at all levels. Further, the absence of succession planning for critical managerial positions is a common issue across SFBs, which requires immediate attention from Boards to ensure a smooth transition of leadership and maintain operational effectiveness.

    Conclusion

    In conclusion, SFBs with their outreach to rural and semi-urban areas, are intended to be one of the key enablers in credit offerings to individuals, weaker sections, entrepreneurs, SHGs/JLGs and MSMEs. They have a large role to play in achieving our aspirational goal of becoming a developed nation by 2047.

    As RBI celebrates 90 years of its foundation this year, we have set deepening financial inclusion as one of our cherished objectives for RBI@100. RBI, with its continued commitment towards a financially inclusive India, has taken several measures to support these segments ranging from Priority Sector Lending targets to the introduction of TReDS for MSMEs. A new chapter in this book is the Unified Lending Interface (ULI) platform which aims at “enabling frictionless credit” with the ‘new trinity’ of JAM-UPI-ULI, further propelling India’s growth story.

    SFBs should strive to harness this opportunity and other such opportunities offered by latest technological innovations for efficient and cost-effective service delivery. Further, with robust governance and effective board oversight, SFBs can capitalise on their strengths while meeting growth and stability objectives.

    With this, I wish you all the best for the coming sessions and hope that you find these sessions professionally enriching and stimulating. Thank you!

    MIL OSI Economics –

  • MIL-OSI Economics: Darryl Chan: Opening remarks – Treasury Markets Summit 2024

    Source: Bank for International Settlements

    Distinguished guests, members and friends of the TMA, ladies and gentlemen: good morning.

    On behalf of the HKMA and the TMA, a very warm welcome to you all for joining this annual Treasury Markets Summit. The annual event has been, and will continue to be, a great gathering that promotes the sharing of thoughts, ideas and friendship among professionals from the treasury markets and experts from related disciplines.

    I’d like to congratulate the TMA team on curating a highly relevant and interesting programme for this year’s Summit. Special thanks to our panellists who will generously share their insights and foresights on subjects that are so closely related to our day-to-day work such as China’s economic outlook, and subjects that will or may have profound impact on the way financial markets including the treasury markets operate – here I am referring to CBDC and DeFi.  And, speaking of China’s economic outlook, these past couple of days were extraordinary. I am sure we can’t wait to hear the sharing by our experts.

    And of course we also look forward to hearing what Eddie has to say about offshore RMB business, a topic that I’m sure concerns almost every one of us here today, and a topic that is hugely important to sharpening the edge of Hong Kong as an international financial centre.

    But before we embark on the forward-looking journey, let me take a few minutes to highlight a number of remarkable achievements by the TMA in the past year or so.

    In terms of market infrastructure, the TMA’s dedicated working group has done a wonderful job in helping market practitioners prepare for the smooth transition of LIBOR to alternative reference rates and facilitating the adoption of Hong Kong dollar overnight index average, or HONIA, as an alternative to HIBOR. No fanfare, but the silence spoke volumes about the hard work behind the scenes. 

    On the introduction this week of severe weather trading in our stock market, the TMA has reviewed the arrangements of the financial benchmarks it administers and undertook to continue publishing HKD and CNH FX spot rates during severe weather conditions, facilitating the implementation of the new trading arrangement.

    The TMA also actively provides market perspectives and advice in support of the development of Hong Kong’s offshore RMB business hub. It provided industry feedback to the People’s Bank of China in facilitating the launch of the northbound Swap Connect. It also set up a dedicated working group and made a comprehensive proposal to the HKMA on ways to further promote our RMB business, including building a market-driven CNH yield curve and enhancing Hong Kong’s RMB liquidity pool. The specific measures proposed by the TMA are valuable reference that helps us focus our policy priorities and map out concrete steps to achieve those objectives.

    These are just some of the examples demonstrating the TMA’s efforts to make our treasury markets more competitive and more supportive of our financial sector, not to mention the many ongoing initiatives in nurturing treasury markets talent, implementing international standards and best practices, as well as engaging with international and regional peers.  

    There’s still a lot of work ahead. Earlier this year, with the support of the banking and financial community, the TMA launched the data licensing arrangement to align with international practices on benchmark usage and surveillance. Under the arrangement, a small fee is charged on the subscription and use of certain benchmarks administered by the TMA. Hopefully the additional income will ensure the TMA is better resourced to discharge its heavy responsibilities going forward.

    Before I conclude, I would like to express my heartfelt gratitude to the members of the Council, Executive Board and various Committees of the TMA, and all institutional and individual members, for your unfailing support and contribution. My thanks also go to the TMA team for their dedication and commitment. With all your support, I’m sure the TMA has what it takes to go from strength to strength.

    May I wish you all a productive and fruitful summit. Thank you.

    MIL OSI Economics –

  • MIL-OSI Economics: Michael S Barr: Supporting market resilience and financial stability

    Source: Bank for International Settlements

    Thank you, and thank you for the opportunity to speak to you today.1

    It is great to be here again, particularly because this year marks the 10th annual conference on the Treasury market, a milestone that is worth celebrating. I want to acknowledge the Federal Reserve Bank of New York for its leadership in this area, including the dedication and excellence it has brought to hosting this conference over the past decade, in collaboration with the Inter-Agency Working Group on Treasury Market Surveillance, led by the Treasury Department. The Treasury market is the means by which our government meets its financing needs in service to the American people, and it is also the bedrock of the financial system. Promoting the resilience of the Treasury market and ensuring it can continue to fulfill these roles requires the collaboration of agencies and individuals across the government along with the private sector.

    As others have pointed out today, we have made important progress since last year’s conference. The Securities and Exchange Commission has finalized a rule on central clearing of Treasury transactions, the Treasury Department has instituted a program for buying back less-liquid Treasury securities, and the Office of Financial Research is preparing for its permanent collection of data on non-centrally-cleared bilateral repurchase agreement (repo) transactions, which will support our understanding of this market segment as it evolves.

    I will share some thoughts with you on how I see the work of the Federal Reserve in supporting Treasury market resilience. Our capital and liquidity regulations, our supervision of the firms over which we have authority, and our liquidity facilities play important roles in supporting market resilience and financial stability. Earlier this month, I gave a speech where I reiterated the crucial role of capital in serving these objectives, and the need to balance resilience and efficiency in designing our rules. In that speech, I also outlined the elements of a capital re-proposal that I believe will have broad consensus at the Federal Reserve Board. The adjustments are in response to a robust public comment process, and some of them are designed to address interactions and market functioning concerns raised by commentators.

    In terms of rulemaking, today I will focus on some additional aspects of our regulatory framework-namely, enhancements to our liquidity regulations. I will share some perspective on how our liquidity regulations work together and are supportive of market functioning and the smooth implementation of monetary policy.

    The Intersection of Monetary Policy Tools and Supervision and Regulation

    We consider how all of the Fed’s tools work together to support our objectives. In previous speeches, I have talked about the role of the discount window and the standing repo facility (SRF) in supporting both monetary policy implementation and financial stability, noting how important it is that eligible institutions be ready to use these facilities.2 Today I want to dig into this topic a bit more, including how these tools support monetary policy implementation through appropriate incorporation into liquidity regulations and supervisory practices.

    After the banking stress in March 2023, we saw a substantial improvement among banks of all sizes in their level of readiness to tap the discount window both in taking the necessary steps for set-up and in their pledging of collateral. Since that time, over $1 trillion in additional collateral has been pledged to the discount window, and additional banks have established access to the SRF. Both of these facilities are potential venues for monetizing assets and raising liquidity to address volatility in private funding market rates or gaps in the availability of private-market funding.

    We had been hearing that some were confused about how banks could incorporate ready access to the discount window and the SRF into their contingency funding plans and internal liquidity stress tests. Supervisors have a role in assessing the viability of large banks’ plans to meet stressed outflows in their stress scenarios, and we have been asked whether the discount window, the SRF, and also Federal Home Loan Bank advances can play a role in those scenarios. The answer to this question is “yes.”

    We provided clarity to the public in August on permissible assumptions for how firms can incorporate the discount window and the SRF into their internal liquidity stress-test scenarios. There are a couple of principles that underlie our response in the frequently asked questions we posted on the Board’s website.3 One principle is that our tools are readily available to firms. This means that we see it as acceptable and beneficial for firms to incorporate our facilities to meet liquidity needs in both planning and practice. If firms plan to use our facilities, we expect them to demonstrate ex ante that they are fully capable of doing so, including through test transactions. An additional principle underlying our approach is that, while firms should be ready to use a range of funding sources, firms need to hold sufficient highly liquid assets to meet their potential liquidity needs. That is, they need to self-insure against their own liquidity risks. A third principle is that firms should be ready and able to use private channels to turn these assets into cash, in addition to any public channels they may plan to use.

    I want to dig a bit deeper into the benefits to both individual firms and the financial system when firms incorporate Fed facilities into their stress preparedness planning. Again, a design feature of our liquidity regulations is that large banks must self-insure against major liquidity risks. Our regulations also provide flexibility in terms of the portfolio composition such banks use to do so. This flexibility allows them to adjust their portfolios based on market conditions and firm needs. A key component of this flexibility is that reserves and certain high-quality liquid assets (HQLA), such as Treasury securities, are equivalent in terms of being treated as the highest quality of liquid assets. This feature is important because, while it allows firms to manage their liquidity buffers more flexibly, it also allows for greater flexibility in our monetary policy implementation and it supports market functioning. We have heard over the years, however, that the degree of substitutability among these assets has been limited by concerns about capacity in stress for the market to turn securities into reserves immediately; these concerns are valid. This constraint can be addressed in part by the appropriate incorporation of Federal Reserve facilities into monetization plans in firms’ internal liquidity stress tests.

    When firms understand that they will not be fully constrained by the capacity of private markets or their individual credit lines to monetize HQLA immediately in stress, they can reduce their demand for reserves in favor of Treasury securities, all else being equal, for their stress planning purposes. This dynamic improves the substitutability of holding reserves and holding Treasury securities either outright or through repo transactions.

    When banks exhibit a high degree of substitutability of demand for these assets, money market functioning improves. Let me explain with an example. If a bank sees holding reserves and investing in Treasury repo as near substitutes in its liquidity portfolio, it should lend into Treasury repo markets when repo rates rise above the interest rate earned on reserves. When banks can nimbly adjust portfolios in response to price incentives, the efficiency of reserves redistribution through the system improves, and market functioning is enhanced.

    In aggregate, this activity can prevent rates from rising further, all else being equal. The point at which banks, in aggregate, have a relatively immutable demand for reserves, and are unwilling to lend them out, is evident when a small decrease in the supply of reserves results in a sharp increase in the cost to borrow them. Our monetary policy tools are well positioned to help us avoid this outcome. But, of course, greater willingness of banks to reallocate across close substitutes should help avoid the emergence of sudden pressures in money markets by reducing money market frictions.

    In 2021, the Federal Reserve launched the SRF, which, along with the discount window, should help cap upward pressure in repo markets that could spill over into the federal funds market. Use of these facilities also increases the supply of reserves in the system. The enhanced clarity for firms that Fed facilities are a fully acceptable venue to get same-day liquidity for their HQLA should help reassure firms about holding reserves and their close substitutes, such as Treasury securities, in their liquidity portfolios.

    Of course, as I stated earlier, for the largest banks, there is a requirement that they hold highly liquid assets to address their own liquidity risks. They must also be ready to use private markets to monetize these assets. It is also critical that banks recognize and manage the interest rate and liquidity risk of their securities portfolios to ensure those securities held for liquidity purposes can be monetized in stress without creating other adverse effects on a firm’s safety and soundness. In 2022 and 2023, certain large banks did not effectively manage the risks of rising rates, and suffered significant fair value losses on their securities holdings, including those in held-to-maturity (HTM) portfolios. These losses affected their ability to respond to liquidity stress, as monetizing the assets could result in realizing losses. When the banking stress hit in March 2023, these securities could not be sold to meet stressed outflows because large unrealized losses inhibited their sale without significant capital implications. This is further complicated in the case of HTM securities, which cannot be sold without risking revaluing a firm’s entire HTM portfolio. Selling HTM securities to generate liquidity would therefore have had a particularly large effect on these firms’ capital levels, likely increasing the stress on these firms. Further, some firms were unable to rely on private channels such as repo markets for monetization because they were not prepared, they were not regular participants in the market, and market participants were unwilling to lend because of counterparty credit concerns. This combination of factors meant that HTM securities that had been identified by banks as available to serve as a liquidity buffer of assets in stress could not effectively serve that function.

    Improvements to Our Liquidity Regulations

    As I have mentioned in previous speeches, to address the lessons about liquidity learned in the spring of 2023, we are exploring targeted adjustments to our current liquidity framework.4 Many firms have taken steps to improve their liquidity resilience, and the regulatory adjustments we are considering would ensure that large banks maintain better liquidity risk–management practices going forward. Improvements to our liquidity regulations will also complement the other components of our supervisory and regulatory regime by improving banks’ ability to respond to funding shocks.

    Specifically, we are exploring a requirement that larger banks maintain a minimum amount of readily available liquidity with a pool of reserves and pre-positioned collateral at the discount window, based on a fraction of their uninsured deposits. Community banks would not be covered, and we would take a tiered approach to the requirements. The collateral pre-positioned at the window could include both Treasury securities and the full range of assets eligible for pledging at the discount window. It is vital that uninsured depositors have confidence that their funds will be readily available for withdrawal, if needed, and this confidence would be enhanced by a requirement that larger banks have readily available liquidity to meet requests for withdrawal of these deposits. This requirement would be a complement to existing liquidity regulations such as those that require the internal liquidity stress tests (ILST) I described earlier as well as meeting the liquidity coverage ratio (LCR).5

    Incorporating the discount window into a readiness requirement would also reemphasize that supervisors and examiners view use of the discount window as appropriate under both normal and stressed market conditions.

    In addition, as I have discussed previously, we identified significant gaps in interest rate risk management in the March 2023 banking stress, including in portfolios of highly liquid securities. Relatedly, we saw that banks faced constraints in monetizing HTM assets with large unrealized losses in private markets because they were unable to repo these securities or sell these securities without realizing significant losses. To address these gaps, we are considering a partial limit on the extent of reliance on HTM assets in larger banks’ liquidity buffers, such as those held under the LCR and ILST requirements. These adjustments would address the known challenges of banks being able to use these assets in stress conditions.

    Finally, we are reviewing the treatment of a handful of types of deposits in the current liquidity framework. Observed behavior of different deposit types during times of stress suggests the need to recalibrate deposit outflow assumptions in our rules for certain types of depositors. We are also revisiting the scope of application of our current liquidity framework for large banks.

    These enhancements to our liquidity regulations will help bolster firms’ ability to manage liquidity shocks, and they will also be well integrated with our monetary policy tools and framework.

    Modernizing Our Tools to Meet Current and Future Needs

    Turning back to the discount window, I also want to note that the discount window has served its role well in recent years, and that we are also engaging in ongoing work to improve its operations. Given the crucial role of the discount window in providing ready access to liquidity in a wide variety of market conditions, we continuously work to assess and improve its functionality while engaging with current and potential users of the window.

    Among the steps we have taken recently include that we now have an online portal, Discount Window Direct, that allows firms to request and prepay discount window loans in a more streamlined manner than was previously possible. We also recently published a request for information on discount window operations and daylight credit asking about key components of these functions. Feedback from the public will help us prioritize areas for improvement, so I strongly encourage anyone with an interest in this topic to weigh in during the comment period. Your feedback will help us ensure that the discount window continues to improve in its role of providing ready access to funding under a variety of market conditions.

    Thank you.

    MIL OSI Economics –

  • MIL-OSI Economics: Jerome H Powell: Economic outlook

    Source: Bank for International Settlements

    I have some brief comments on the economy and monetary policy and look forward to our discussion.

    Our economy is strong overall and has made significant progress over the past two years toward achieving our dual-mandate goals of maximum employment and stable prices. Labor market conditions are solid, having cooled from their previously overheated state. Inflation has eased, and my Federal Open Market Committee colleagues and I have greater confidence that it is on a sustainable path to 2 percent. At our meeting earlier this month, we reduced the level of policy restraint by lowering the target range of the federal funds rate by 1/2 percentage point. That decision reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in an environment of moderate economic growth and inflation moving sustainably down to our objective.

    Recent Economic Data

    The labor market
    Many indicators show the labor market is solid. To mention just a few, the unemployment rate is well within the range of estimates of its natural rate. Layoffs are low. The labor force participation rate of individuals aged 25 to 54 (so-called prime age) is near its historic high, and the prime-age women’s participation rate has continued to reach new all-time highs. Real wages are increasing at a solid pace, broadly in line with gains in productivity. The ratio of job openings to unemployed workers has moved down steadily but remains just above 1-so that there are still more open positions than there are people seeking work. Prior to 2019, that was rarely the case.

    Still, labor market conditions have clearly cooled over the past year. Workers now view jobs as somewhat less available than they were in 2019. The moderation in job growth and the increase in labor supply have led the unemployment rate to increase to 4.2 percent, still low by historical standards. We do not believe that we need to see further cooling in labor market conditions to achieve 2 percent inflation.

    Inflation
    Over the most recent 12 months, headline and core inflation were 2.2 percent and 2.7 percent, respectively. Disinflation has been broad based, and recent data indicate further progress toward a sustained return to 2 percent. Core goods prices have fallen 0.5 percent over the past year, close to their pre-pandemic pace, as supply bottlenecks have eased. Outside of housing, core services inflation is also close to its pre-pandemic pace. Housing services inflation continues to decline, but sluggishly. The growth rate in rents charged to new tenants remains low. As long as that remains the case, housing services inflation will continue to decline.

    Broader economic conditions also set the table for further disinflation. The labor market is now roughly in balance. Longer-run inflation expectations remain well anchored.

    Monetary Policy

    Over the past year, we have continued to see solid growth and healthy gains in the labor force and productivity. Our goal all along has been to restore price stability without the kind of painful rise in unemployment that has frequently accompanied efforts to bring down high inflation. That would be a highly desirable result for the communities, families, and businesses we serve. While the task is not complete, we have made a good deal of progress toward that outcome.

    For much of the past three years, inflation ran well above our goal, and the labor market was extremely tight. Appropriately, our focus was on bringing down inflation. By keeping monetary policy restrictive, we helped restore the balance between overall supply and demand in the economy. That patient approach has paid dividends: Inflation is now much closer to our 2 percent objective. Today, we see the risks to achieving our employment and inflation goals as roughly in balance.

    Our policy rate had been at a two-decade high since the July 2023 meeting. At the time of that meeting, core inflation was above 4 percent, well above our target, and unemployment was 3.5 percent, near a 50-year low. In the 14 months since, inflation has moved down, and unemployment has moved up, in both cases significantly. It was time for a recalibration of our policy stance to reflect progress toward our goals as well as the changed balance of risks.

    As I mentioned, our decision to reduce our policy rate by 50 basis points reflects our growing confidence that, with an appropriate recalibration of our policy stance, strength in the labor market can be maintained in a context of moderate economic growth and inflation moving sustainably down to 2 percent.

    Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course. The risks are two-sided, and we will continue to make our decisions meeting by meeting. As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks. Overall, the economy is in solid shape; we intend to use our tools to keep it there.

    We remain resolute in our commitment to our maximum-employment and price-stability mandates. Everything we do is in service to our public mission.

    Thank you. I look forward to our conversation.

    MIL OSI Economics –

  • MIL-OSI: Global Net Lease, Inc. Announces Common Stock Dividend for the Fourth Quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 01, 2024 (GLOBE NEWSWIRE) — Global Net Lease, Inc. (“GNL” or the “Company”) (NYSE: GNL / GNL PRA / GNL PRB / GNL PRD / GNL PRE) announced today that it declared a dividend of $0.275 per share of common stock payable on October 16, 2024, to common stockholders of record at the close of business on October 11, 2024.

    Dividends authorized by the Company’s board of directors and declared by the Company are paid on a quarterly basis in arrears during the first month following the end of each fiscal quarter (unless otherwise specified) to common stockholders of record on the record date for such payment.

    About Global Net Lease, Inc.

    Global Net Lease, Inc. is a publicly traded real estate investment trust listed on the NYSE, which focuses on acquiring and managing a global portfolio of income producing net lease assets across the United States, and Western and Northern Europe. Additional information about GNL can be found on its website at http://www.globalnetlease.com.

    Important Notice

    The statements in this press release that are not historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could cause the outcome to be materially different. The words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “expects,” “estimates,” “projects,” “potential,” “predicts,” “plans,” “intends,” “would,” “could,” “should” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. These forward-looking statements are subject to a number of risks, uncertainties and other factors, many of which are outside of the Company’s control, which could cause actual results to differ materially from the results contemplated by the forward-looking statements. These risks and uncertainties include the risks associated with realization of the anticipated benefits of the merger with The Necessity Retail REIT, Inc. and the internalization of the Company’s property management and advisory functions; that any potential future acquisition or disposition by the Company is subject to market conditions and capital availability and may not be identified or completed on favorable terms, or at all. Some of the risks and uncertainties, although not all risks and uncertainties, that could cause the Company’s actual results to differ materially from those presented in its forward-looking statements are set forth in the Risk Factors and “Quantitative and Qualitative Disclosures about Market Risk” sections in the Company’s Annual Report on Form 10-K, its Quarterly Reports on Form 10-Q, and all of its other filings with the U.S. Securities and Exchange Commission, as such risks, uncertainties and other important factors may be updated from time to time in the Company’s subsequent reports. Further, forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update or revise any forward-looking statement to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time, unless required by law.

    Contacts:
    Investor Relations
    Email: investorrelations@globalnetlease.com
    Phone: (332) 265-2020

    The MIL Network –