Category: Asia

MIL-OSI Europe: Written question – EU manufacturing and exportation of green energy products – E-002259/2024

Source: European Parliament

24.10.2024

Question for written answer E-002259/2024
to the Commission
Rule 144
Mihai Tudose (S&D)

The Eurostat report of 14 October 2024 shows a serious imbalance between EU imports and exports of green energy products.

The EU imported solar panels to the value of EUR 19.7 billion in 2023, while exporting EUR 0.9 billion worth of that product, with 98 % of the solar panels imported coming from China. At the same time, we purchase – mainly from China, Great Britain and India – almost twice as much liquid biofuel as we export, making this another product in which the EU has a negative trade balance.

On the other hand, sales of wind turbines have recovered strongly over the past two years, with EU exports increasing by 49 % to EUR 2 billion in 2023, while turbines worth EUR 0.3 billion were imported from outside the Union. That is encouraging progress.

As a member of the Committee on International Trade, I would like to know what steps the Commission envisages taking in the very near future to encourage the manufacturing and export of green energy products in the EU?

Submitted: 24.10.2024

Last updated: 31 October 2024

MIL OSI Europe News –

January 25, 2025

MIL-OSI: Allegro MicroSystems Reports Second Quarter 2025 Results

Source: GlobeNewswire (MIL-OSI)

MANCHESTER, N.H., Oct. 31, 2024 (GLOBE NEWSWIRE) — Allegro MicroSystems, Inc. (“Allegro” or the “Company”) (Nasdaq: ALGM), a global leader in power and sensing semiconductor solutions for motion control and energy efficient systems, today announced financial results for its second quarter ended September 27, 2024.

“We delivered results in-line with our commitments. Second quarter sales were $187 million, with sequential growth in both Automotive and Industrial and Other end markets. Non-GAAP EPS was $0.08, at the high end of our outlook,” said Vineet Nargolwala, President and CEO of Allegro. “We are encouraged by the continued demand for our differentiated solutions and the progress made by our customers and partners to rebalance their inventories. We continue to invest for growth to extend our market leadership. The accelerating pace of our new product introductions, as evidenced by our latest product releases, sets the stage for significant growth momentum in the near future.”

Second Quarter Financial Highlights:

In thousands, except per share data	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
Net Sales
Automotive	$	141,893		$	131,184		$	197,321		$	273,077		$	382,751
Industrial and other		45,498			35,735			78,188			81,233			171,051
Total net sales	$	187,391		$	166,919		$	275,509		$	354,310		$	553,802
GAAP Financial Measures
Gross margin %		45.7	%		44.8	%		57.9	%		45.3	%		57.3	%
Operating margin %		2.2	%		(6.4	)%		26.5	%		(1.9	)%		25.9	%
Diluted EPS	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.65
Non-GAAP Financial Measures
Gross margin %		48.8	%		48.8	%		58.3	%		48.8	%		58.1	%
Operating margin %		11.7	%		6.0	%		31.3	%		9.0	%		31.0	%
Diluted EPS	$	0.08		$	0.03		$	0.40		$	0.11		$	0.79

Business Outlook

For the third quarter of fiscal year 2025 ending December 27, 2024, the Company expects net sales to be in the range of $170 million to $180 million. This outlook comprehends continued progress toward vehicle electrification and ongoing inventory rebalancing as reflected in the latest third-party estimates, as well as typical December quarter seasonality. The Company also estimates the following results on a non-GAAP basis:

Gross Margin is expected to be between 49% and 51%,

The Company made a voluntary $25 million payment on its term loan facility on October 31, 2024 and now expects Interest Expense to be approximately $6 million, and

Diluted Earnings per Share are expected to be between $0.04 and $0.08.

Allegro has not provided a reconciliation of its third fiscal quarter outlook for non-GAAP Gross Margin, non-GAAP Interest Expense, and non-GAAP Diluted Earnings per Share because estimates of all of the reconciling items cannot be provided without unreasonable efforts. It is difficult to reasonably provide a forward-looking estimate between such forward-looking non-GAAP measures and the comparable forward-looking U.S. generally accepted accounting principles (“GAAP”) measures. Certain factors that are materially significant to Allegro’s ability to estimate these items are out of its control and/or cannot be reasonably predicted.

Earnings Webcast

A webcast will be held on Thursday, October 31, 2024 at 8:30 a.m., Eastern Time. Vineet Nargolwala, President and Chief Executive Officer, and Derek P. D’Antilio, Executive Vice President and Chief Financial Officer, will discuss Allegro’s business and financial results.

The webcast will be available on the Investor Relations section of the Company’s website at investors.allegromicro.com. A recording of the webcast will be posted in the same location shortly after the call concludes and will be available for at least 90 days.

About Allegro MicroSystems

Allegro MicroSystems is a leading global designer, developer, fabless manufacturer and marketer of sensor integrated circuits (“ICs”) and application-specific analog power ICs enabling emerging technologies in the automotive and industrial markets. Allegro’s diverse product portfolio provides efficient and reliable solutions for the electrification of vehicles, automotive ADAS safety features, automation for Industry 4.0 and power saving technologies for data centers and clean energy applications.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, contained in this press release including statements regarding our future results of operations and financial position, business strategy, prospective products and the plans and objectives of management for future operations, including, among others, statements regarding the liquidity, growth and profitability strategies and factors affecting our business are forward-looking statements. These statements involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements.

Without limiting the foregoing, in some cases, you can identify forward-looking statements by terms such as “aim,” “may,” “will,” “should,” “expect,” “exploring,” “plan,” “anticipate,” “could,” “intend,” “target,” “project,” “would,” “contemplate,” “believe,” “estimate,” “predict,” “potential,” “seek,” or “continue” or the negative of these terms or other similar expressions, although not all forward-looking statements contain these words. No forward-looking statement is a guarantee of future results, performance or achievements, and one should avoid placing undue reliance on such statements.

Forward-looking statements are based on our management’s current expectations, beliefs and assumptions and on information currently available to us. Such beliefs and assumptions may or may not prove to be correct. Additionally, such forward-looking statements are subject to a number of known and unknown risks, uncertainties and assumptions, and actual results may differ materially from those expressed or implied in the forward-looking statements due to various factors, including, but not limited to, those identified in Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and Part I, Item 1A. “Risk Factors” in our Annual Report on Form 10-K for the year ended March 29, 2024, as any such factors may be updated from time to time in our Quarterly Reports on Form 10-Q and our other filings with the Securities and Exchange Commission (the “SEC”). These risks and uncertainties include, but are not limited to: downturns or volatility in general economic conditions; our ability to compete effectively, expand our market share and increase our net sales and profitability; our reliance on a limited number of third-party semiconductor wafer fabrication facilities and suppliers of other materials; any failure to adjust purchase commitments and inventory management based on changing market conditions or customer demand; shifts in our product mix, customer mix or channel mix, which could negatively impact our gross margin; the cyclical nature of the semiconductor industry, including the analog segment in which we compete; any downturn or disruption in the automotive market or industry; our ability to successfully integrate the acquisition of other companies or technologies and products into our business; our ability to compensate for decreases in average selling prices of our products and increases in input costs; our ability to manage any sustained yield problems or other delays at our third-party wafer fabrication facilities or in the final assembly and test of our products; our ability to accurately predict our quarterly net sales and operating results and meet the expectations of investors; our dependence on manufacturing operations in the Philippines; our reliance on distributors to generate sales; events beyond our control impacting us, our key suppliers or our manufacturing partners; our ability to develop new product features or new products in a timely and cost-effective manner; our ability to manage growth; any slowdown in the growth of our end markets; the loss of one or more significant customers; our ability to meet customers’ quality requirements; uncertainties related to the design win process and our ability to recover design and development expenses and to generate timely or sufficient net sales or margins; changes in government trade policies, including the imposition of export restrictions and tariffs; our exposures to warranty claims, product liability claims and product recalls; our dependence on international customers and operations; the availability of rebates, tax credits and other financial incentives on end-user demands for certain products; risks, liabilities, costs and obligations related to governmental regulations and other legal obligations, including export/trade control, privacy, data protection, information security, cybersecurity, consumer protection, environmental and occupational health and safety, antitrust, anti-corruption and anti-bribery, product safety, environmental protection, employment matters and tax; the volatility of currency exchange rates; our ability to raise capital to support our growth strategy; our indebtedness may limit our flexibility to operate our business; our ability to effectively manage our growth and to retain key and highly skilled personnel; our ability to protect our proprietary technology and inventions through patents or trade secrets; our ability to commercialize our products without infringing third-party intellectual property rights; disruptions or breaches of our information technology systems or confidential information or those of our third-party service providers; our principal stockholders has substantial control over us; anti-takeover provisions in our organizational documents and under the General Corporation Law of the State of Delaware; any failure to design, implement or maintain effective internal control over financial reporting; changes in tax rates or the adoption of new tax legislation; the negative impacts of sustained inflation on our business; the physical, transition and litigation risks presented by climate change; and other events beyond our control. Moreover, we operate in an evolving environment. New risk factors and uncertainties may emerge from time to time, and it is not possible for management to predict all risk factors and uncertainties.

You should read this press release and the documents that we reference completely and with the understanding that our actual future results may be materially different from what we expect. We qualify all of our forward-looking statements by these cautionary statements. All forward-looking statements speak only as of the date of this press release, and except as required by applicable law, we do not plan to publicly update or revise any forward-looking statements, whether as a result of any new information, future events, changed circumstances or otherwise.

This press release includes certain non-GAAP financial measures as defined by the SEC rules. These non-GAAP financial measures are provided in addition to, and not as a substitute for or superior to measures of, financial performance prepared in accordance with GAAP. There are a number of limitations related to the use of these non-GAAP financial measures versus their nearest GAAP equivalents. For example, other companies may calculate non-GAAP financial measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of the presented non-GAAP financial measures as tools for comparison.

This press release may not be reproduced, forwarded to any person or published, in whole or in part.


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except share and per share amounts) (Unaudited)

	Three-Month Period Ended					Six-Month Period Ended
	September 27, 2024			September 29, 2023		September 27, 2024			September 29, 2023
Net sales	$	187,391		$	275,509	$	354,310		$	553,802
Cost of goods sold		101,729			116,006		193,877			236,349
Gross profit		85,662			159,503		160,433			317,453
Operating expenses:
Research and development		43,510			43,428		88,714			86,403
Selling, general and administrative		38,085			43,160		78,282			87,389
Total operating expenses		81,595			86,588		166,996			173,792
Operating income (loss)		4,067			72,915		(6,563	)		143,661
Interest and other (expense) income		(12,398	)		156		(18,341	)		(2,486	)
Loss on change in fair value of forward repurchase contract		(34,752	)		—		(34,752	)		—
(Loss) income before income taxes		(43,083	)		73,071		(59,656	)		141,175
Income tax (benefit) provision		(9,470	)		7,400		(8,430	)		14,615
Net (loss) income		(33,613	)		65,671		(51,226	)		126,560
Net income attributable to non-controlling interests		62			54		124			93
Net (loss) income attributable to Allegro MicroSystems, Inc.	$	(33,675	)	$	65,617	$	(51,350	)	$	126,467
Net (loss) income per common share attributable to Allegro MicroSystems, Inc.:
Basic	$	(0.18	)	$	0.34	$	(0.27	)	$	0.66
Diluted	$	(0.18	)	$	0.34	$	(0.27	)	$	0.65
Weighted average shares outstanding:
Basic		189,182,850			192,431,094		191,324,281			192,214,210
Diluted		189,182,850			195,100,855		191,324,281			195,055,495

Supplemental Schedule of Total Net Sales

The following table summarizes total net sales by market within the Company’s unaudited condensed consolidated statements of operations:

	Three-Month Period Ended				Change						Six-Month Period Ended				Change
	September 27, 2024		September 29, 2023		Amount			%			September 27, 2024		September 29, 2023		Amount			%
	(Dollars in thousands)										(Dollars in thousands)
Automotive	$	141,893	$	197,321	$	(55,428	)		(28	)%	$	273,077	$	382,751	$	(109,674	)		(29	)%
Industrial and other		45,498		78,188		(32,690	)		(42	)%		81,233		171,051		(89,818	)		(53	)%
Total net sales	$	187,391	$	275,509	$	(88,118	)		(32	)%	$	354,310	$	553,802	$	(199,492	)		(36	)%


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)

	September 27, 2024			March 29, 2024
	(Unaudited)
Assets
Current assets:
Cash and cash equivalents	$	188,751		$	212,143
Restricted cash		10,287			10,018
Trade accounts receivable, net		76,985			118,508
Inventories		176,648			162,302
Prepaid income taxes		38,636			31,908
Prepaid expenses and other current assets		32,253			33,584
Current portion of related party notes receivable		—			3,750
Total current assets		523,560			572,213
Property, plant and equipment, net		325,051			321,175
Deferred income tax assets		61,839			54,496
Goodwill		203,151			202,425
Intangible assets, net		266,753			276,854
Related party notes receivable, less current portion		—			4,688
Equity investment in related party		30,186			26,727
Other assets		81,577			72,025
Total assets	$	1,492,117		$	1,530,603
Liabilities, Non-Controlling Interests and Stockholders’ Equity
Current liabilities:
Trade accounts payable	$	50,245		$	35,964
Amounts due to related party		5,546			1,626
Accrued expenses and other current liabilities		62,742			76,389
Current portion of long-term debt		5,475			3,929
Total current liabilities		124,008			117,908
Long-term debt		396,056			249,611
Other long-term liabilities		33,345			31,368
Total liabilities		553,409			398,887
Commitments and contingencies
Stockholders’ Equity:
Preferred stock		—			—
Common stock		1,840			1,932
Additional paid-in capital		993,988			694,332
(Accumulated deficit) retained earnings		(31,931	)		463,012
Accumulated other comprehensive loss		(26,583	)		(28,841	)
Equity attributable to Allegro MicroSystems, Inc.		937,314			1,130,435
Non-controlling interests		1,394			1,281
Total stockholders’ equity		938,708			1,131,716
Total liabilities, non-controlling interests and stockholders’ equity	$	1,492,117		$	1,530,603


ALLEGRO MICROSYSTEMS, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited)

	Three-Month Period Ended						Six-Month Period Ended
	September 27, 2024			September 29, 2023			September 27, 2024			September 29, 2023
Cash flows from operating activities:
Net (loss) income	$	(33,613	)	$	65,671		$	(51,226	)	$	126,560
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation and amortization		15,997			15,080			32,455			29,353
Amortization of deferred financing costs		306			73			1,087			107
Deferred income taxes		(2,796	)		(9,772	)		(7,795	)		(18,134	)
Stock-based compensation		11,545			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			34,752			—
Provisions for inventory and expected credit losses		2,111			4,239			4,488			9,422
Change in fair value of marketable securities		—			(72	)		—			3,579
Other non-cash reconciling items		6,563			43			6,577			43
Changes in operating assets and liabilities:
Trade accounts receivable		(13,717	)		2,676			41,417			(7,645	)
Inventories		(2,845	)		(3,274	)		(18,831	)		(31,221	)
Prepaid expenses and other assets		(14,093	)		(6,253	)		(15,808	)		(16,453	)
Trade accounts payable		13,470			(15,736	)		13,670			2,695
Due to and from related parties		695			(3,990	)		4,132			6,112
Accrued expenses and other current and long-term liabilities		(2,828	)		(12,832	)		(16,838	)		(29,944	)
Net cash provided by operating activities		15,547			46,730			49,743			96,393
Cash flows from investing activities:
Purchases of property, plant and equipment		(9,972	)		(31,191	)		(20,949	)		(76,101	)
Sales of marketable securities		—			6,204			—			16,175
Net cash used in investing activities		(9,972	)		(24,987	)		(20,949	)		(59,926	)
Cash flows from financing activities:
Loan made to affiliate		—			(4,000	)		—			(4,000	)
Net proceeds from Refinanced 2023 Term Loan Facility		193,483			—			193,483			—
Payment of borrowings under 2023 Term Loan Facility		—			—			(50,000	)		—
Finance lease payments		(240	)		—			(385	)		—
Receipts on related party notes receivable		937			937			1,875			1,875
Payments for taxes related to net share settlement of equity awards		(1,126	)		(1,669	)		(12,297	)		(14,091	)
Proceeds from issuance of common stock under employee stock purchase plan		1,987			—			1,987			1,899
Repurchases of common stock		(853,805	)		—			(853,805	)		—
Net proceeds from issuance of common stock		665,850			—			665,850			—
Payment of debt issuance costs		—			—			—			(1,450	)
Net cash provided by (used in) financing activities		7,086			(4,732	)		(53,292	)		(15,767	)
Effect of exchange rate changes on cash and cash equivalents and restricted cash		2,200			(901	)		1,375			(974	)
Net increase (decrease) in cash and cash equivalents and restricted cash		14,861			16,110			(23,123	)		19,726
Cash and cash equivalents and restricted cash at beginning of period		184,177			362,321			222,161			358,705
Cash and cash equivalents and restricted cash at end of period:	$	199,038		$	378,431		$	199,038		$	378,431

Non-GAAP Financial Measures

In addition to the measures presented in our condensed consolidated financial statements, we regularly review other measures, defined as non-GAAP Financial Measures by the SEC, to evaluate our business, measure our performance, identify trends, prepare financial forecasts and make strategic decisions. The key measures we consider are non-GAAP Gross Profit, non-GAAP Gross Margin, non-GAAP Operating Expenses, non-GAAP Operating Income, non-GAAP Operating Margin, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, non-GAAP Profit before Tax, non-GAAP Income Tax Provision, non-GAAP Effective Tax Rate, non-GAAP Net Income Attributable to Allegro MicroSystems, Inc, non-GAAP Basic and Diluted Earnings per Share, non-GAAP Free Cash Flow, and non-GAAP Free Cash Flow as percentage of net sales (collectively, the “Non-GAAP Financial Measures”). These Non-GAAP Financial Measures provide supplemental information regarding our operating performance on a non-GAAP basis that excludes certain gains, losses and charges of a non-cash nature or that occur relatively infrequently and/or that management considers to be unrelated to our core operations, and in the case of non-GAAP Income Tax Provision, management believes that this non-GAAP measure of income taxes provides it with the ability to evaluate the non-GAAP Income Tax Provision across different reporting periods on a consistent basis, independent of special items and discrete items, which may vary in size and frequency. These Non-GAAP Financial Measures are used by both management and our board of directors, together with the comparable GAAP information, in evaluating our current performance and planning our future business activities.

The Non-GAAP Financial Measures are supplemental measures of our performance that are neither required by, nor presented in accordance with, GAAP. These Non-GAAP Financial Measures should not be considered as substitutes for GAAP Financial Measures, such as gross profit, gross margin, net income or any other performance measures derived in accordance with GAAP. Also, in the future we may incur expenses or charges, such as those being adjusted in the calculation of these Non-GAAP Financial Measures. Our presentation of these Non-GAAP Financial Measures should not be construed as an inference that future results will be unaffected by unusual or nonrecurring items. These Non-GAAP Financial Measures exclude costs related to acquisition and related integration expenses, amortization of acquired intangible assets, stock-based compensation, restructuring actions, related party activities and other non-operational costs.

Non-GAAP Income Tax Provision

In calculating non-GAAP Income Tax Provision, we have added back the following to GAAP Income Tax Provision:

Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments.


*Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Gross Profit	$	85,662		$	74,771		$	159,503		$	160,433		$	317,453
GAAP Gross Margin (% of net sales)		45.7	%		44.8	%		57.9	%		45.3	%		57.3	%

Non-GAAP adjustments
Transaction-related costs		10			(1	)		—			9			—
Purchased intangible amortization		4,875			4,875			273			9,750			675
Restructuring costs		16			1,200			—			1,216			—
Stock-based compensation		817			561			946			1,378			3,552
Total Non-GAAP Adjustments	$	5,718		$	6,635		$	1,219		$	12,353		$	4,227

Non-GAAP Gross Profit	$	91,380		$	81,406		$	160,722		$	172,786		$	321,680
Non-GAAP Gross Margin (% of net sales)		48.8	%		48.8	%		58.3	%		48.8	%		58.1	%


*Reconciliation of Non-GAAP Operating Expenses*

	Three-Month Period Ended							Six-Month Period Ended
	September 27, 2024			June 28, 2024		September 29, 2023		September 27, 2024			September 29, 2023
	(Dollars in thousands)							(Dollars in thousands)
GAAP Operating Expenses	$	81,595		$	85,401	$	86,588	$	166,996		$	173,792

Research and Development Expenses
GAAP Research and Development Expenses		43,510			45,204		43,428		88,714			86,403
Non-GAAP adjustments
Transaction-related costs		206			1,029		2		1,235			9
Restructuring costs		260			169		—		429			—
Stock-based compensation		3,523			3,735		3,602		7,258			6,470
Other costs⁽¹⁾		3			—		—		3			—
Non-GAAP Research and Development Expenses		39,518			40,271		39,824		79,789			79,924

Selling, General and Administrative Expenses
GAAP Selling, General and Administrative Expenses		38,085			40,197		43,160		78,282			87,389
Non-GAAP adjustments
Transaction-related costs		275			814		1,804		1,089			4,876
Purchased intangible amortization		535			535		357		1,070			715
Restructuring costs		2,046			1,045		—		3,091			—
Stock-based compensation		7,205			5,822		6,329		13,027			11,897
Other costs⁽¹⁾		(1,820	)		811		100		(1,009	)		100
Non-GAAP Selling, General and Administrative Expenses		29,844			31,170		34,570		61,014			69,801

Total Non-GAAP Adjustments		12,233			13,960		12,194		26,193			24,067

Non-GAAP Operating Expenses	$	69,362		$	71,441	$	74,394	$	140,803		$	149,725

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.


*Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating Income (Loss)	$	4,067		$	(10,630	)	$	72,915		$	(6,563	)	$	143,661
GAAP Operating Margin (% of net sales)		2.2	%		(6.4	)%		26.5	%		(1.9	)%		25.9	%

Transaction-related costs		491			1,842			1,806			2,333			4,885
Purchased intangible amortization		5,410			5,410			630			10,820			1,390
Restructuring costs		2,322			2,414			—			4,736			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Other costs⁽¹⁾		(1,817	)		811			100			(1,006	)		100
Total Non-GAAP Adjustments	$	17,951		$	20,595		$	13,413		$	38,546		$	28,294

Non-GAAP Operating Income	$	22,018		$	9,965		$	86,328		$	31,983		$	171,955
Non-GAAP Operating Margin (% of net sales)		11.7	%		6.0	%		31.3	%		9.0	%		31.0	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.


*Reconciliation of EBITDA and Adjusted EBITDA*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income	$	(33,613	)	$	(17,613	)	$	65,671		$	(51,226	)	$	126,560
GAAP Net (Loss) Income Margin (% of net sales)		(17.9	)%		(10.6	)%		23.8	%		(14.5	)%		22.9	%

Interest expense		10,353			5,377			758			15,730			1,527
Interest income		(420	)		(494	)		(850	)		(914	)		(1,693	)
Income tax (benefit) provision		(9,470	)		1,040			7,400			(8,430	)		14,615
Depreciation & amortization		15,997			16,458			15,145			32,455			29,418
EBITDA	$	(17,153	)	$	4,768		$	88,124		$	(12,385	)	$	170,427

Transaction-related costs		3,295			1,842			1,806			5,137			4,885
Restructuring costs		2,067			2,414			—			4,481			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—			34,752			—
Other costs⁽¹⁾		(2,195	)		2,807			1,301			612			5,890
Adjusted EBITDA	$	32,311		$	21,949		$	102,108		$	54,260		$	203,121
Adjusted EBITDA Margin (% of net sales)		17.2	%		13.1	%		37.1	%		15.3	%		36.7	%

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.


*Reconciliation of Non-GAAP Profit before Tax*

	Three-Month Period Ended								Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023		September 27, 2024			September 29, 2023
	(Dollars in thousands)								(Dollars in thousands)
GAAP (Loss) Income before Income Taxes	$	(43,083	)	$	(16,573	)	$	73,071	$	(59,656	)	$	141,175

Transaction-related costs		3,295			1,842			1,806		5,137			4,885
Transaction-related interest		141			709			—		850			—
Purchased intangible amortization		5,410			5,410			630		10,820			1,390
Restructuring costs		2,067			2,414			—		4,481			—
Stock-based compensation		11,545			10,118			10,877		21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—		34,752			—
Other costs⁽¹⁾		1,428			2,807			1,301		4,235			5,890
Total Non-GAAP Adjustments	$	58,638		$	23,300		$	14,614	$	81,938		$	34,084

Non-GAAP Profit before Tax	$	15,555		$	6,727		$	87,685	$	22,282		$	175,259

(1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.


*Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Income Tax (Benefit) Provision	$	(9,470	)	$	1,040		$	7,400		$	(8,430	)	$	14,615
GAAP effective tax rate		22.0	%		(6.3	)%		10.1	%		14.1	%		10.4	%

Tax effect of adjustments to GAAP results		10,071			(395	)		2,554			9,676			6,380

Non-GAAP Income Tax Provision	$	601		$	645		$	9,954		$	1,246		$	20,995
Non-GAAP effective tax rate		3.9	%		9.6	%		11.4	%		5.6	%		12.0	%


*Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.⁽¹⁾	$	(33,675	)	$	(17,675	)	$	65,617		$	(51,350	)	$	126,467
GAAP Basic weighted average common shares		189,182,850			193,465,708			192,431,094			191,324,281			192,214,210
GAAP Diluted weighted average common shares		189,182,850			193,465,708			195,100,855			191,324,281			195,055,495
GAAP Basic (Loss) Earnings per Share	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.66
GAAP Diluted (Loss) Earnings per Share	$	(0.18	)	$	(0.09	)	$	0.34		$	(0.27	)	$	0.65

Transaction-related costs		3,295			1,842			1,806			5,137			4,885
Transaction-related interest		141			709			—			850			—
Purchased intangible amortization		5,410			5,410			630			10,820			1,390
Restructuring costs		2,067			2,414			—			4,481			—
Stock-based compensation		11,545			10,118			10,877			21,663			21,919
Loss on change in fair value of forward repurchase contract		34,752			—			—			34,752			—
Other costs⁽²⁾		1,428			2,807			1,301			4,235			5,890
Total Non-GAAP Adjustments		58,638			23,300			14,614			81,938			34,084
Tax effect of adjustments to GAAP results⁽³⁾		(10,071	)		395			(2,554	)		(9,676	)		(6,380	)
Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.	$	14,892		$	6,020		$	77,677		$	20,912		$	154,171
Basic weighted average common shares		189,182,850			193,465,708			192,431,094			191,324,281			192,214,210
Diluted weighted average common shares		189,710,595			194,705,716			195,100,855			192,154,185			195,055,495
Non-GAAP Basic Earnings per Share	$	0.08		$	0.03		$	0.40		$	0.11		$	0.80
Non-GAAP Diluted Earnings per Share	$	0.08		$	0.03		$	0.40		$	0.11		$	0.79

(1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests.
(2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.
(3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual Non-GAAP effective tax rate (“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.


*Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales*

	Three-Month Period Ended									Six-Month Period Ended
	September 27, 2024			June 28, 2024			September 29, 2023			September 27, 2024			September 29, 2023
	(Dollars in thousands)									(Dollars in thousands)
GAAP Operating Cash Flow	$	15,547		$	34,196		$	46,730		$	49,743		$	96,393
GAAP Operating Cash Flow (% of net sales)		8.3	%		20.5	%		17.0	%		14.0	%		17.4	%
Non-GAAP adjustments
Purchases of property, plant and equipment		(9,972	)		(10,977	)		(31,191	)		(20,949	)		(76,101	)

Non-GAAP Free Cash Flow	$	5,575		$	23,219		$	15,539		$	28,794		$	20,292
Non-GAAP Free Cash Flow (% of net sales)		3.0	%		13.9	%		5.6	%		8.1	%		3.7	%

Investor Contact:
Jalene Hoover
VP of Investor Relations & Corporate Communications
+1 (512) 751-6526
jhoover@allegromicro.com

The MIL Network –

January 25, 2025

MIL-OSI Video: Follow Captain Vanessa Von Viràg | UN Peacekeeping

Source: United Nations (Video News)

Follow Captain Vanessa Von Viràg from Switzerland as she carries out daily activities serving with the United Nations Military Observer Group in India and Pakistan (UNMOGIP).

https://www.youtube.com/watch?v=lHT3-oM0C-Y

MIL OSI Video –

January 25, 2025
MIL-OSI Asia-Pac: HK education promoted in Beijing

Source: Hong Kong Information Services

Secretary for Education Choi Yuk-lin today attended the 25th China Annual Conference & Expo for International Education in Beijing to share Hong Kong’s experiences in promoting internationalisation and diversification of higher education, and promote the “Study in Hong Kong” brand.

A high-level and comprehensive platform for global educators to engage in dialogue and co-operation, this year’s conference, under the theme “Education for All, the Unknown & the Future”, attracted thousands of people from around the world.

In her keynote speech, Ms Choi said that Hong Kong has five University Grants Committee-funded universities which rank among the world’s top 100.

Coupled with its sound education infrastructure, outstanding research talent and strong research capabilities, Hong Kong’s reputable brand name of quality education is widely recognised and acknowledged both locally and globally, she highlighted.

Ms Choi further noted that the 2024 Policy Address announced the establishment of the Committee on Education, Technology & Talents to take forward the work of invigorating the country through science and education, and accelerate the building of an innovative talent pool.

The Hong Kong Special Administrative Region Government launched a number of key initiatives to create multiple pathways for young people, she added.

The education chief also pointed out that the Hong Kong SAR Government has been actively supporting the establishment of alliances between higher education institutions in Hong Kong and on the Mainland to gather high-quality teaching and research resources, and to achieve mutual benefits through deepening co-operation, thereby enhancing regional co-operation as well as developments on different fronts.

During the conference, Ms Choi exchanged views on the latest trends and developments in global education with other guests. She also met representatives of Hong Kong post-secondary education institutions participating in the expo.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: DH’s enforcement operation “Laserflame” against illegal smoking in statutory no-smoking areas of public transport facilities and bus interchanges (with photos)

Source: Hong Kong Government special administrative region

     The Tobacco and Alcohol Control Office (TACO) of the Department of Health (DH) conducted an enforcement operation codenamed “Laserflame” between October 29 and today (October 31) against illegal smoking in statutory no-smoking areas of public transport facilities and bus interchanges across the territory. Officers also publicised the relevant smoking ban regulations to members of the public.

     During the operation, officers conducted 307 inspections and issued fixed penalty notices to 106 persons caught smoking illegally. Officers also publicised the relevant smoking ban regulations to members of the public.

     There are currently 260 public transportation facilities and 14 bus interchanges designated as no-smoking areas in Hong Kong. The no-smoking areas are clearly marked with visible no-smoking signage. The boundaries of the no-smoking areas are also delineated in a clear manner based on the actual physical environment to remind the public to comply with the smoking prohibition. The plans depicting the boundaries of the no-smoking areas have been uploaded to the TACO website for public reference.

     From January 2021 to September 2024, TACO has conducted over 18 300 inspections at public transportation facilities and bus interchanges regarding smoking offences, and issued more than 8 000 fixed penalty notices/summons.

     “To protect public health, it is the established policy of the Government to discourage smoking, contain the proliferation of tobacco use and protect the public from second-hand smoke. Strengthening inspections and enforcement in public transportation facilities aims to further protect the public from the harm of second-hand smoke,” a spokesman for the DH said.

     Any person who does a smoking act in no-smoking areas or in public transport carriers will be liable to a fixed penalty of $1,500. Tobacco and Alcohol Control Inspectors will prosecute smoking offenders without prior warning.

     “We appeal to smokers to quit smoking as early as possible for their own health and that of others. They are encouraged to call the DH’s Integrated Smoking Cessation Hotline on 1833 183. The hotline is operated by registered nurses, providing professional counselling services on smoking cessation,” the spokesman said.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: Legal, mediation experts meet

Source: Hong Kong Information Services

The Expert Advisory Group on Legal & Dispute Resolution Services (EAG), established by the Department of Justice earlier this month, held its first meeting today.

During the meeting, the EAG considered and endorsed its terms of reference and discussed future work and issues for follow-up.

The EAG is chaired by Secretary for Justice Paul Lam and vice-chaired by Deputy Secretary for Justice Cheung Kwok-kwan.

It comprises experts from the legal and dispute resolution services sector who are tasked with advising the department in respect of the promotion and development of the legal and dispute resolution services of Hong Kong for a term of three years.

Its terms of reference include considering, formulating and advising on the overall strategies and initiatives for the promotion and development of Hong Kong’s legal and dispute resolution services in and outside Hong Kong.

The EAG also advises on the wider use of out-of-court dispute resolution services in Hong Kong, and serves as a forum for raising and discussing such issues as may be of concern to the legal and dispute resolution sector to enhance Hong Kong as a centre for international legal and dispute resolution services in the Asia-Pacific region.

Additionally, it considers and deals with such other matters as may be incidental to any of the matters stated above.

Meanwhile, the Working Group on Mediation Regulatory System, chaired by Mr Lam and vice-chaired by Mr Cheung, has also been established this month for a term of two years.

Its members will advise the department on the mediation regulation regime in Hong Kong, including reviewing and making recommendations to reform or improve the current regime in relation to situations such as accreditation and disciplinary matters.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: AFCD and Shenzhen Customs sign co-operation arrangements to strengthen quarantine and clearance for horse racing (with photos)

Source: Hong Kong Government special administrative region

AFCD and Shenzhen Customs sign co-operation arrangements to strengthen quarantine and clearance for horse racing (with photos)
AFCD and Shenzhen Customs sign co-operation arrangements to strengthen quarantine and clearance for horse racing (with photos)
******************************************************************************************

To further strengthen co-operation between the Mainland and Hong Kong in quarantine and customs clearance arrangements of horses, forage feed and biological products, the Director of Agriculture, Fisheries and Conservation, Mr Mickey Lai, today (October 31) signed the Co-operation Arrangement on Strengthening Quarantine Clearance for Horse Racing with the Director General in Shenzhen Customs District, Mr Zheng Jugang. The Acting Permanent Secretary for Environment and Ecology (Food), Ms Ivy Law, also attended the signing ceremony. Horses currently can travel between Hong Kong and the Equine Disease Free Zone in Conghua in Guangzhou through the Shenzhen Bay Port. The Co-operation Arrangement established the Liantang/Heung Yuen Wai Port as a backup port for cross-border horse transport, further enhancing horse transport arrangements between the two places. Mr Lai said, “The Agriculture, Fisheries and Conservation Department expresses gratitude to Shenzhen Customs for supporting the establishment of the Liantang/Heung Yuen Wai Port as a backup port for cross-border horse transport. This will further improve cross-border horse transport and ensure that horses can travel between Guangdong and Hong Kong safely and conveniently.” Under the Co-operation Arrangement, both parties will regularly inform each other through a liaison mechanism of the quarantine and regulatory status of horses, forage feed, biological products, vehicles, etc; use a one-stop inspection platform to carry out port inspections; and jointly organise academic exchanges, technical exchanges, work seminars, and business training, with a view to promoting the development of the equine industry in the Guangdong-Hong Kong-Macao Greater Bay Area.

Ends/Thursday, October 31, 2024Issued at HKT 19:38

NNNN

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Video: Blackfeet Community College Site Visit—Over $9 Million Available for TCUs Clean Energy Transition

Source: United States of America – Federal Government Departments (video statements)

The U.S. Department of Energy Office of Indian Energy visited Blackfeet Community College in Browning, Montana, Sept. 26, 2024, and announced over $9 million in new funding and prizes to advance clean energy planning at Tribal Colleges and Universities (TCUs).

Learn more at: https://www.energy.gov/indianenergy/articles/us-department-energy-announces-over-9-million-funding-and-prizes-tribal

https://www.youtube.com/watch?v=K6OsYTKB49Y

MIL OSI Video –

January 25, 2025
MIL-OSI Video: Tribal Clean Energy Planning and Development 2025 FOA Webinar

Source: United States of America – Federal Government Departments (video statements)

The U.S. Department of Energy Office of Indian Energy conducted an informational webinar on Oct. 24, 2024, to provide information on the Tribal Clean Energy Planning and Development – 2025 (DE-FOA-0003401) funding opportunity announcement (FOA) to potential applicants.

In addition to describing the FOA, information is provided on who is eligible to apply, what an application needs to include, how to ask questions, and how applications will be selected for funding.

Learn more at https://www.energy.gov/indianenergy

https://www.youtube.com/watch?v=uCF2UMD3p1Q

MIL OSI Video –

January 25, 2025
MIL-OSI Asia-Pac: Hong Kong and Guangdong strengthen co-operation in cleaner production to improve regional environmental quality (with photos)

Source: Hong Kong Government special administrative region

Hong Kong and Guangdong strengthen co-operation in cleaner production to improve regional environmental quality (with photos)
Hong Kong and Guangdong strengthen co-operation in cleaner production to improve regional environmental quality (with photos)
******************************************************************************************

The Environment and Ecology Bureau (EEB) of the Government of the Hong Kong Special Administrative Region (HKSAR) and the Department of Industry and Information Technology of Guangdong Province (GDDIIT) today (October 31) convened the 11th meeting of the Hong Kong-Guangdong Joint Working Group on Cleaner Production (JWGCP) in Hong Kong. An award presentation ceremony for the Hong Kong-Guangdong Cleaner Production Partners Recognition Scheme was also held to commend the efforts of over 210 enterprises in pursuing cleaner production. The 11th meeting of the JWGCP was co-chaired by the Secretary for Environment and Ecology of the HKSAR Government, Mr Tse Chin-wan, and the Director-General of the GDDIIT, Mr Tu Gaokun. The meeting reviewed the work progress in 2024 and approved the 2025 work plan. Governments of both Hong Kong and Guangdong will continuously promote the adoption of cleaner production technologies in energy-intensive industries for saving energy and the development of energy-saving equipment; support water-intensive industries to apply water-saving technological upgrades to reduce and control wastewater discharge; promote enterprises to adopt relevant technologies to reduce solid waste and emissions, including controlling and reducing volatile organic compounds emissions at source; encourage polluting industries to undertake cleaner production audits; and support enterprises to pursue green transformation. Both sides will also continue to implement various publicity activities to promote the effectiveness of cleaner production to the industry. The meeting was attended by representatives of the EEB, the Environmental Protection Department (EPD), the Trade and Industry Department, the Innovation and Technology Commission and the Hong Kong Economic and Trade Office in Guangdong of the HKSAR Government. On the Guangdong side, representatives of the GDDIIT and the Department of Ecology and Environment of Guangdong Province attended the meeting. After the meeting, the 2024 award presentation ceremony for the Scheme was held to commend enterprises that have diligently pursued cleaner production. This year, a total of 215 enterprises were commended as Hong Kong-Guangdong Cleaner Production Partners. Of these, 42 Hong Kong-owned manufacturing enterprises were commended as “Excellent Partners” of the Scheme while 149 were commended as “Partners”. Other commended enterprises included three sourcing enterprises and 21 environmental technology service providers. The EPD of the HKSAR Government, in collaboration with the GDDIIT, launched the Cleaner Production Partnership Programme (the Programme) in 2008. To date, the Programme has provided funding support for more than 4 200 applications, aiming to promote the adoption of cleaner production technologies and practices by Hong Kong-owned factories in the region. To commend the dedicated efforts taken by the enterprises in pursing cleaner production, Guangdong and Hong Kong jointly launched the Scheme in 2009 to recognise enterprises adopting cleaner production as Hong Kong-Guangdong Cleaner Production Partners. Cleaner production has brought remarkable benefits in improving the environmental quality, and the Chief Executive announced in his 2024 Policy Address that $100 million would be injected to launch a new round of the Programme for the application period from April 2025 to June 2027. The new round of the Programme will strengthen support and encourage Hong Kong-owned factories in Hong Kong and Guangdong Province to adopt cleaner production technologies and practices, transform and upgrade traditional industries with the adoption of green technologies to achieve energy saving, emission reduction, consumption and carbon emission reduction, thereby improving the regional environment and helping achieve the carbon neutrality targets of the country and Hong Kong. Details of the Programme and the Scheme are available on the dedicated website of cleaner production: www.cleanerproduction.hk.

Ends/Thursday, October 31, 2024Issued at HKT 19:50

NNNN

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Economics: Christine Lagarde: Interview with Le Monde

Source: European Central Bank

Interview with Christine Lagarde, President of the ECB, conducted by Eric Albert, Philippe Escande and Béatrice Madeline on 28 October 2024

31 October 2024

In September, former ECB President Mario Draghi published an alarming report on how the European economy is falling behind. Do you agree with this assessment?

Europe is falling behind. It’s true. And so is France. Mario Draghi’s report highlights the productivity gap, which is largely due to the tech sector. Tech players in Europe and the United States believe that the gap first emerged during the digital revolution that began in the mid-1990s.

The question now is whether the boost that the United States got from the mid-1990s will continue with artificial intelligence, the accumulation of data centres and the exploitation of these data. This is the key issue. In Europe we need to roll up our sleeves and make an effort to keep those companies that start out here and then develop themselves elsewhere. We need to try to make them stay.

So what is the solution? Do you think the gap will remain?

We need to look at why Europe is falling behind. The energy component is key, especially as regards data centres. Labour is also important, with mobility being much greater in the United States. And regulation is a crucial issue, too. In overly simple terms, the United States is developing AI very quickly, and already has a number of major players. In the meantime, not only is Europe lacking such big players, but it has also become a pioneer in AI regulation. This causes players in this sector to say “OK, let’s do this elsewhere. It’ll be easier and we’ll have fewer obstacles and fewer restrictions”.

What about the public funding provided to businesses in the United States?

The fourth factor that is contributing to Europe falling behind is the “light” industrial policy pursued by the United States. It’s not light in terms of money because the Inflation Reduction Act of August 2022 is very large, but there are relatively few criteria to qualify for funding to start a company on US soil. When I ask manufacturers, they pretty much all agree that in Europe, the process is complicated and unwieldy. And on top of the multi-layered European system, you then have those of the Member States.

The final factor is private funding. In the United States there are pension fund plans and other financial instruments that make it possible to channel savings and get savers (employees or retirees) interested in the future of the economy or the evolution of the stock market. In many European countries, these plans are still a long way off of those mechanisms, especially share participation and company profit sharing. Hence the need to develop a capital markets union.

But we have been talking about this project for the past 15 years. And when Mario Draghi’s report was published, Germany immediately opposed common borrowing. Is Europe really capable of reacting?

You’re right. We have been talking about a capital markets union since the time of Jean-Claude Juncker (President of the European Commission from 2014 to 2019), and little progress has been made. The Letta and Draghi reports are a wake-up call for Europeans, a warning. The assessment is severe but fair and provides specific recommendations. It suggests that all Europeans should gear up and be ready to give up a bit of sovereignty to ‘combine the best,’ to paraphrase what Paul Valéry once said. But what gives me hope is the engagement of all European institutions on the capital markets union. The ECB’s Governing Council is firmly engaged as well. We must use this momentum.

In 2020, the plan for a collective European loan of €750 billion was a major step forward. Four years later, less than half of the loan has been allocated. Should we see this as another example of European slowness?

We had exactly the same problem during the Greek crisis. The administrations of the different countries are not always able to quickly manage the incoming funds. The finance ministers of countries receiving a lot of funds tell you that they have of course identified what bridge or railway line should be constructed, but that they need to obtain local authorisations as well as permissions to expropriate property, and that environmental organisations are taking court actions. All of this takes a lot of time.

In this context, what consequences could the US elections on Tuesday 5 November have for Europe?

I do not want to give an opinion on any particular candidate. But US international trade policy will of course have an impact on economic activity in the rest of the world, and primarily on China. Whoever wins, if trade fragmentation worsens, the effect on global GDP will be negative, with losses reaching 9% in a severe scenario of full decoupling according to ECB simulations. But remember: when Joe Biden was elected, everyone thought that he would remove the customs barriers erected by his predecessor (Donald Trump). Nothing came of that.

Between China, which is withdrawing towards Asia, and the United States, which is closing up again, isn’t Europe, as a partner to both powers, the big loser?

That’s why we need to act and roll up our sleeves. Will Europe need to undergo another crisis for it to bring about reforms? It’s always in times of crisis that we are able to make things happen. That may be why Mario Draghi speaks of “agony”, it’s a way of saying “the crisis is here, now, do something!”.

There is talk of a European decoupling. But isn’t there a French decoupling within Europe?

If you compare today’s GDP figures with those of 2019, the United States has grown by 10.7%, the European average by 4.8% and France by 3.7%. France is lagging behind the European average.

What is your view of the surge in the French deficit?

The prospect of returning in line with European standards by applying European fiscal rules should serve as a binding guideline.

And are the French promises to restore public finances credible?

As I said, applying European fiscal rules should serve as a binding guideline.

Will we be heading towards a recession in Europe in 2025?

Based on the information now available and our current assessment, we don’t see a recession in 2024, nor in 2025, nor in 2026.

What will drive this growth, given the weakness in demand?

The two levers are exports and domestic demand, which is set to pick up. Today, with wages rising and inflation falling, disposable income is increasing. For the moment, this benefits savings more than consumption. But we are convinced, and economic history shows us, that this additional disposable income will ultimately flow towards consumption.

How do you explain the fact that it is proving so difficult for consumption to recover?

We can indeed ask why households are choosing to save their money instead of spending it. It could be that people are reluctant to make major purchases owing to geopolitical uncertainty. A second explanation could be related to the return on their savings, which is still fairly high in the euro area. A third could be that people are deciding it’s better to save rather than spend when they expect their taxes or other contributions to go up.

Euro area inflation was at 1.7% in September, below your 2% target. Is it now under control?

The target is in sight but I’m not going to tell you that inflation is defeated yet. Inflation stood at 1.7% in September. Excluding energy and food, it was still at 2.7%. We are pleased about the 1.7% figure, but we also know that inflation is going to rise again in the coming months simply because of base effects. In September energy prices were 6.1% lower than a year earlier, bringing down the cost of the consumption basket. Besides, inflation in the services sector – which is highly dependent on wages – is still at 3.9%. So, prudence is warranted.

How do you respond to those who say the ECB was too late in reacting to the rise in inflation?

I tell them we should look at the facts. Don’t forget that inflation was at 10.6% two years ago. It has fallen back to 1.7%. Perhaps we could have started a few months earlier. But we raised rates at the fastest pace ever and we managed to bring down inflation considerably in a short period of time. I now want to see inflation reach the 2% target on a sustained and durable basis. Unless there is a major shock, this will happen during the course of 2025.

And what do you say to those who now accuse you of cutting rates too late and not quickly enough?

The pace at which interest rates are cut will be determined by the economic data we receive in the coming weeks and months – based on our updated assessment of the inflation outlook, the dynamics of underlying inflation and the strength of monetary policy transmission. And to revitalise growth, urgent action is needed in the area of structural reforms.

The spread between France and Germany has increased from 0.5% to 0.8% since the French National Assembly was dissolved. The ECB has an instrument that it can use to intervene and calm the markets. Are you ready to use it?

We have clearly outlined the conditions under which we will use this instrument. And that is not an issue today.

A number of emerging countries brought together by the BRICS (Brazil, Russia, India, China and South Africa) are thinking about a payments system to circumvent the dollar. Is dedollarisation happening?

That would require another country to be able to take on the role of reserve currency. China is preparing for that, but it isn’t ready yet. I won’t see the renminbi take the place of the dollar in my lifetime.

MIL OSI Economics –

January 25, 2025
MIL-OSI Asia-Pac: Cross-boundary forgery syndicate smashed by Immigration Department and Mainland authorities (with photos)

Source: Hong Kong Government special administrative region

The Immigration Department (ImmD) mounted a cross-boundary joint operation with Guangxi Public Security Department, Guangdong Provincial Public Security Department and Shenzhen Frontier Inspection Station in July and August under the co-ordination of the Exit and Entry Administration of the People’s Republic of China. The operation successfully neutralised a cross-boundary forgery syndicate, resulting in the arrest of a total of 201 persons and the seizure of a large amount of forgery equipment and forged documents.

In May this year, Mainland authorities unearthed crucial intelligence related to a syndicate arranging Mainlanders to take up illegal employment in Hong Kong. The ImmD immediately collaborated with the Mainland authorities to conduct in-depth investigations and successfully identified a cross-boundary forgery syndicate specialised in recruiting Mainlanders to take up illegal employment in Hong Kong and providing them with accommodation and forged Hong Kong identity cards to seek illegal employments. The forgery syndicate had set up workshops on the Mainland for producing forged documents, and they would dispatch the forged Hong Kong identity cards by express delivery to Hong Kong syndicate members, who would then distribute the forged Hong Kong identity cards to the illegal workers.

The ImmD swiftly launched an operation codenamed “Vanguard” to eradicate the syndicate in Hong Kong. During the operation, ImmD investigators retrieved a batch of suspicious parcels sent out from Mainland forgery workshops and disguised as couriers to deliver the suspicious parcels. As a result, several Hong Kong syndicate members were apprehended, and a number of forged Hong Kong identity cards were seized. Moreover, the ImmD raided a total of 69 premises, including 37 residential premises and 32 working places, and arrested a total of 97 persons, including a syndicate mastermind, nine syndicate members, 67 suspected illegal workers and 20 suspected employers, aged 18 to 64. Ten syndicate members, including the mastermind, comprise five men and five women, consisting of three Hong Kong residents and seven Mainlanders, aged 18 to 61. The 67 arrested suspected illegal workers comprise 34 men and 33 women, including 65 Mainlanders, one Indonesian and one Vietnamese Recognizance Form holder issued by the ImmD, aged 22 to 64. ImmD investigators also seized 21 forged Hong Kong identity cards, 18 copies of forged Hong Kong identity cards and two forged documents related to construction workers. Through this large-scale cross-boundary joint operation, the cross-boundary forgery syndicate has been neutralised. The investigation is still ongoing, and more persons involved in the case may be arrested.

On the Mainland side, three forgery workshops were smashed and a total of 104 offenders were arrested, including 18 syndicate masterminds and ring members, and 12 pieces of forgery equipment were seized.

An ImmD spokesman said, “Under the laws of Hong Kong, anyone who uses or possesses a forged identity card commits an offence. Offenders are liable to prosecution and, upon conviction, a maximum penalty of a fine of $100,000 and 10 years’ imprisonment. Any person who without lawful authority or reasonable excuse transfers to another person a Hong Kong identity card commits an offence. Offenders are liable to prosecution and, upon conviction, a maximum penalty of a fine of $100,000 and 10 years’ imprisonment.”

The spokesman warned, “Any person who contravenes a condition of stay in force in respect of him or her shall be guilty of an offence. Also, visitors are not allowed to take employment in Hong Kong, whether paid or unpaid, without the permission of the Director of Immigration. Offenders are liable to prosecution and upon conviction face a maximum fine of $50,000 and up to two years’ imprisonment. Aiders and abettors are also liable to prosecution and penalties. As stipulated in section 38AA of the Immigration Ordinance, an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land is prohibited from taking any employment, whether paid or unpaid, or establishing or joining in any business. Offenders are liable upon conviction to a maximum fine of $50,000 and up to three years’ imprisonment.”

The spokesman reiterated that it is a serious offence to employ people who are not lawfully employable. Under the Immigration Ordinance, the maximum penalty for an employer employing a person who is not lawfully employable, i.e. an illegal immigrant, a person who is the subject of a removal order or a deportation order, an overstayer or a person who was refused permission to land, has been significantly increased from a fine of $350,000 and three years’ imprisonment to a fine of $500,000 and 10 years’ imprisonment to reflect the gravity of such offences. The director, manager, secretary, partner, etc, of the company concerned may also bear criminal liability. The High Court has laid down sentencing guidelines that the employer of an illegal worker should be given an immediate custodial sentence.

According to the court sentencing, employers must take all practicable steps to determine whether a person is lawfully employable prior to employment. Apart from inspecting a prospective employee’s identity card, the employer has the explicit duty to make enquiries regarding the person and ensure that the answers would not cast any reasonable doubt concerning the lawful employability of the person. The court will not accept failure to do so as a defence in proceedings. It is also an offence if an employer fails to inspect the job seeker’s valid travel document if the job seeker does not have a Hong Kong permanent identity card. Offenders are liable upon conviction to a maximum fine of $150,000 and to imprisonment for one year. In that connection, the spokesman would like to remind all employers not to defy the law by employing illegal workers. The ImmD will continue to take resolute enforcement action to combat such offences.

Under the existing mechanism, the ImmD will, as a standard procedure, conduct an initial screening of vulnerable persons, including illegal workers, illegal immigrants, sex workers and foreign domestic helpers, who are arrested during any operation with a view to ascertaining whether they are trafficking in persons (TIP) victims. When any TIP indicator is revealed in the initial screening, the ImmD officers will conduct a full debriefing and identification by using a standardised checklist to ascertain the presence of TIP elements, such as threats and coercion in the recruitment phase and the nature of exploitation. Identified TIP victims will be provided with various forms of support and assistance, including urgent intervention, medical services, counselling, shelter or temporary accommodation and other supporting services. The ImmD calls on TIP victims to report crimes to the relevant departments immediately.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI USA: Five Western N.C. State Parks to Reopen Nov. 1, Eight Parks to Remain Closed

Source: US State of North Carolina

Headline: Five Western N.C. State Parks to Reopen Nov. 1, Eight Parks to Remain Closed

Five Western N.C. State Parks to Reopen Nov. 1, Eight Parks to Remain Closed
jejohnson6
Thu, 10/31/2024 – 08:13

Crowders Mountain, Gorges, Grandfather Mountain and Lake Norman state parks, as well as Rendezvous Mountain, will reopen at least partially on Nov. 1, the Division of Parks and Recreation announced. These parks were temporarily closed through October after impacts from Hurricane Helene.

The following areas are open at each park:

• Crowders Mountain — trails and day-use will reopen, all camping will remain closed through November

• Gorges — Grassy Ridge Access (visitor center, trails to Rainbow and Upper Bearwallow Falls, RV/trailer/tent camping and cabins) will reopen; the backcountry area (Frozen Creek Access, including Auger Hole and Canebrake trails and backcountry campsites) will remain closed

• Grandfather Mountain — most trails and campsites will reopen; Profile Trail, Profile Connector Trail, and Profile Campsite will remain closed

• Lake Norman — day-use and tent/trailer/RV and group campsites will reopen; some sections of mountain bike trail may be closed; cabins remain closed to new reservations; existing reservations are being honored

• Rendezvous Mountain — all areas

The following parks remain closed entirely: Chimney Rock, Elk Knob, Lake James, Mount Mitchell, New River, South Mountains, and Stone Mountain state parks, as well as Mount Jefferson State Natural Area.

“We are very excited to be able to reopen these parks, and we hope to open additional facilities in November,” said State Parks Director Brian Strong. “We know our visitors have been missing our closed parks, and we hope these reopenings will help our neighbors, local towns, and communities.”

The division continues to assist with emergency and rescue efforts in western North Carolina. To date, over 150 division staff have been deployed with the North Carolina Emergency Operations Center as well as to assist with Incident Management Teams and with cleanup projects at western state parks.

“Our priority first and foremost is visitor and staff safety,” Strong said. “There are areas that will be marked closed due to hazardous trees and branches with a high likelihood of falling as well as unsteady bridges and washed-out trails. We ask that visitors follow signage and do not attempt to access areas that have been closed off.”

Some of the remaining closed parks may reopen partially in November, depending on progress with cleanup and hazard mitigation. Chimney Rock, Mount Mitchell, and South Mountains will be undergoing extended closure. Reservations for campsites anticipated to be closed have been refunded in full.

About North Carolina State Parks
North Carolina State Parks manages more than 262,000 acres of iconic landscape within North Carolina’s state parks, state recreation areas and state natural areas. It administers the N.C. Parks and Recreation Trust Fund, including its local grants program, as well as a state trails program, North Carolina Natural and Scenic Rivers and more, all with a mission dedicated to conservation, recreation and education. The state parks system welcomes more than 19 million visitors annually.

About the North Carolina Department of Natural and Cultural Resources
The N.C. Department of Natural and Cultural Resources (DNCR) manages, promotes, and enhances the things that people love about North Carolina – its diverse arts and culture, rich history, and spectacular natural areas. Through its programs, the department enhances education, stimulates economic development, improves public health, expands accessibility, and strengthens community resiliency.

The department manages over 100 locations across the state, including 27 historic sites, seven history museums, two art museums, five science museums, four aquariums, 35 state parks, four recreation areas, dozens of state trails and natural areas, the North Carolina Zoo, the State Library, the State Archives, the N.C. Arts Council, the African American Heritage Commission, the American Indian Heritage Commission, the State Historic Preservation Office, the Office of State Archaeology, the Highway Historical Markers program, the N.C. Land and Water Fund, and the Natural Heritage Program. For more information, please visit www.dncr.nc.gov.

Oct 31, 2024

MIL OSI USA News –

January 25, 2025

MIL-OSI Economics: Monthly Data on India’s International Trade in Services for the Month of September 2024

Source: Reserve Bank of India

The value of exports and imports of services during September 2024 is given in the following table.

International Trade in Services
(US$ million)
Month	Receipts (Exports)	Payments (Imports)
July – 2024	30,580 (16.6)	15,903 (15.7)
August – 2024	30,340 (5.7)	16,423 (8.8)
September – 2024	32,579 (14.6)	16,507 (13.2)
Notes: (i) Data are provisional; and (ii) Figures in parentheses are growth rates over the corresponding month of the previous year which have been revised on the basis of balance of payments statistics.

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/1409

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: Data on India’s Invisibles for First Quarter (April-June) 2024-25

Source: Reserve Bank of India

The Reserve Bank today released data on India’s invisibles as per the IMF’s Balance of Payments and International Investment Position Manual (BPM6) format for April – June of 2024-25.

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/1410

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: Lending and Deposit Rates of Scheduled Commercial Banks – October 2024

Source: Reserve Bank of India

Data on lending and deposit rates of scheduled commercial banks (SCBs) (excluding regional rural banks and small finance banks) received during the month of October 2024 are set out in Tables 1 to 7.

Highlights:

Lending Rates:

The weighted average lending rate (WALR) on fresh rupee loans of SCBs stood at 9.37 per cent in September 2024 (9.41 per cent in August 2024).
The WALR on outstanding rupee loans of SCBs was placed at 9.90 per cent in September 2024 (9.91 per cent in August 2024).¹
1-Year median Marginal Cost of fund-based Lending Rate (MCLR) of SCBs remained unchanged at 8.95 per cent in October 2024 from that of September 2024.

Deposit Rates:

The weighted average domestic term deposit rate (WADTDR) on fresh rupee term deposits of SCBs stood at 6.54 per cent in September 2024 as compared to 6.46 per cent in August 2024.
The weighted average domestic term deposit rate (WADTDR) on outstanding rupee term deposits of SCBs was placed at 6.95 per cent in September 2024 (6.93 per cent in August 2024).¹

Ajit Prasad
Deputy General Manager
(Communications)

Press Release: 2024-2025/1411

MIL OSI Economics –

January 25, 2025

MIL-OSI Economics: The future of finance

Source: Bank for International Settlements

The title of this panel is “The Future of Finance”. I know this is an issue you have thought a lot about and one that has been a key focus area for the BIS throughout your tenure as General Manager. Why is the topic so important? How should the financial system change?

Financial innovation is important because finance is important – it is the bloodstream of the real economy.

Today’s financial system falls short in many dimensions: many financial transactions are too slow; many are too costly; for these reasons, useful transactions don’t take place. And in too many countries, too few people are able to access financial services. Improving the functioning of the financial system could make everyone better off.

It is appropriate for the private sector to take the lead in financial innovation. But the public sector has a role as a catalyst for innovation, for instance, by providing the pipes and rails on which finance runs.

Many public institutions – including central banks – are not natural innovators. They may lack experience, expertise and budgets.

Moreover, many countries face similar challenges.

For this reason, there can be great value in working together.

That is why we at the Bank for International Settlements (BIS) established the BIS Innovation Hub as a mechanism for collaboration among central banks to develop technological public goods.

When we first came up with this concept, the idea was to have a small unit of four staff members, based in Basel. It quickly became apparent that the appetite among our member central banks to work together and innovate went far beyond that.

Today we have more than 100 staff working in our seven Innovation Hub centres in eight locations throughout North America, Europe and Asia, as well as a strategic partnership with the Innovation Centre of the New York Federal Reserve.

The Innovation Hub undertakes projects across six broad themes: (i) suptech and regtech, (ii) next generation financial market infrastructures, (iii) open finance, (iv) cyber security, (v) green finance and (vi) central bank digital currency, or CBDC. Our CBDC work accounts for a large part of the Innovation Hub’s project portfolio and certainly accounts for much of the public attention. But we have made important contributions in each theme.

Since establishing the Innovation Hub, we have completed 28 projects, with another 27 currently under way. Central banks, of course, are doing their own innovations, and there are many other initiatives under way by both the public sector and the private sector.

While all of the technological innovation has been important, it would be fair to say that it has had modest real-world impact to date. If you compare the degree of progress in the application of digital technologies in, say, the communications industry to that in the financial industry, I am sure you will agree.

The issue is not the technology itself. As I mentioned, there have been great advances there.

What has been lacking is a vision of how the various initiatives should fit together, and of what the financial system of the future should look like and how it should function.

Together with Nandan Nilekani – Chairman of Infosys and the driving force behind India’s digital public infrastructure initiatives – I wrote a paper earlier this year that laid out such a vision. We call it the “Finternet”. The aim of the Finternet is to use technology to make the financial system much more user-centric and to eliminate many of the frictions that add cost and complexity to today’s financial system. It does not advocate for a specific technology, but instead aims to add some guidance about what we want to achieve.

Let me delve more deeply into the Finternet. What does it involve, concretely?

The Finternet rests on three broad pillars. The first is a robust economic and financial architecture. The second is the application of advanced technology. The third is a sound legal and regulatory basis. Let me address each in turn.

The basic economic and financial architecture would resemble that of today’s financial system. As is the case today, there would be a two-tier banking system. Central bank money would be at the core, with commercial bank money accounting for the bulk of the money used day to day. This money, however, would have a more advanced digital representation. We would have tokenised central bank money, which could exist in wholesale form – the digital equivalent of central bank reserves – or retail form – the equivalent of digital banknotes. And we would have tokenised commercial bank deposits.

But tokenising money is just the first step. To get the real benefits of tokenisation you need to combine money with other financial assets, ideally residing on the same ledger.

Government bonds strike me as a natural starting point. These are incredibly important assets in today’s financial system. They serve as the basis for pricing all other financial assets.

Once you have money and government bonds residing on the same platform, you essentially have the basis of the current financial system. Adding other assets to the platform would naturally follow.

Tokenising financial assets would bring many benefits. In particular, if the assets were on a common ledger, there would be much less need for complex messaging and clearing, which are the source of so much cost and delays in today’s financial system. Tokenised assets can settle atomically, helping to further reduce the time needed for financial transactions. And tokenised assets can be programmed. This could open up a huge array of financial transactions that are not possible today.

Of course, not all assets will be tokenised and not all tokenised assets will reside on the same ledger. So we need some way of moving assets across ledgers and from the tokenised to the non-tokenised world. Technology can also help achieve this.

Other technologies can also help to turn the Finternet into reality. For example, compliance with anti-money laundering and countering the financing of terrorism regulations – which I would emphasise is hugely important – can also be extremely costly. Technology should allow us to automate such checks, allowing for greater reliability, lower costs and faster processing speeds. Data governance and privacy would draw on the latest privacy-preserving technology. There are many related topics we explore through our projects. One good example is Project Mandala, which has shown how to embed regulatory compliance in cross-border transaction protocols. Beyond economics and technology, the Finternet will also rest on a sound legal and regulatory basis. At a minimum, this should respect all existing laws and governance measures. Privacy, cyber security and related concerns will also need to be addressed. However, technology should also allow us to achieve greater security in the financial system.

This all sounds very promising in principle. But can it be delivered? How could one turn the Finternet vision into a reality?

Absolutely. Indeed, we are already taking active steps to turn it into reality, including through our Innovation Hub projects.

Let me give you a concrete example of one such project, called Project Agorá.

This is probably our largest Innovation Hub Project to date. We have teamed up with six central banks and more than 40 private sector institutions, coordinated by the Institute for International Finance. I should mention that Santander is one of the participants.

The specific aim of Project Agorá is to look at whether, using tokenised deposits integrated with tokenised wholesale central bank money, we can streamline cross-border payments.

This is an area ripe with inefficiencies, and where services in some jurisdictions have actually worsened in recent years due to the shrinkage of the correspondent banking system. One important reason is that the system, by and large, rests on legacy systems. This implies long sequences of messages being sent back and forth, across national borders, using systems that do not necessary communicate with each other very well. The various regulatory compliance measures – which are particularly important in cross-border transactions – often require manual processes, which add delays and lead to errors.

In principle, using tokenised assets residing on unified ledgers could ease many of these burdens. Transactions using tokenised assets can settle atomically – that is immediately – with all parts of the transaction settling at once. Compliance with regulatory norms can be embedded programmatically inside the tokens. So they will be adhered to with certainty and without the need for manual intervention.

So this is a big project, with big potential gains.

But even more than the specific application, what really excites me about Project Agorá is that it has central banks and commercial banks working together to craft a structure that could form the basis for a future financial system.

I mentioned before the useful catalytic role for central banks in initiating technological innovation. But central banks cannot do it alone. The two-tier banking system lies at the heart of today’s financial system. The system needs money. But very little money comes from the central bank. Commercial bank money provides the bulk of it.

The two-tier banking system helps deliver two foundational principles. The first is the singleness of money. This ensures that a euro is a euro, whether it is the banknote in my pocket or in my deposit at Santander or any other bank. The second is settlement finality, which comes about through the final settlement of all transactions on the balance sheet of the central bank.

We do not know what the financial system of the future will look like. But it is hard for me to imagine that it will not require a two-tier banking system. This means that as well as tokenised central bank money – particularly in wholesale form – it will require banks to provide their customers with tokenised deposits. Project Agorá provides a powerful use case, and I hope that it will spur further innovation.

At the same time, cross-border payments can be a controversial topic. For example, I have noted media speculation recently that one of your projects – Project mBridge – could provide the basis for a BRICS initiative to circumvent sanctions. Is that plausible? Can you comment on this?

In the Innovation Hub we try to be a catalyst for innovation. The way it works is that we talk with the community of central banks, identify their needs and then develop projects. And we do them in partnership with central banks.

MBridge has been a project we have been involved with for four years. We have several central bank partners and many, many observers. I think the project has been a big success. It’s a payment system where through wholesale CBDCs you could facilitate tremendously cross-border transactions.

I would say that the project has been so successful that we can declare that we have graduated out. The BIS is leaving that project, not because it was a failure and not because of political considerations but instead because we have been involved for four years and it is at a level where the partners can carry it on by themselves. That has happened already with other projects.

At the same time, I have to say that mBridge is not mature enough to start operating; it is many years away from that.

With respect to political aspects, the noise out there, mBridge is not the “BRICs bridge” – I have to say that categorically. mBridge was not created to cater to the needs of the BRICs. It was put together to satisfy broad central bank necessities.

We at the BIS – I think this is an opportunity to set record straight – we always try to be good global citizen. And the BIS does not operate with any countries, nor can its products be used by any countries that are subject to sanctions. This will continue to be the case. And all central bank members are in this mindset that we need to be observant of sanctions and whatever products we put together should not be a conduit to violate sanctions.

MIL OSI Economics –

January 25, 2025
MIL-OSI Video: Secretary of State Antony J. Blinken holds a joint press availability – 1:30 PM

Source: United States of America – Department of State (video statements)

Secretary of State Antony J. Blinken holds a joint press availability with Secretary of Defense Lloyd J. Austin III, Republic of Korea Minister of Foreign Affairs Cho Tae-yul, and Republic of Korea Minister of Defense Kim Yong-hyun at the Department of State, on October 31, 2024.

———-
Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

Get updates from the U.S. Department of State at www.state.gov and on social media!
Facebook: https://www.facebook.com/statedept
Twitter: https://twitter.com/StateDept
Instagram: https://www.instagram.com/statedept
Flickr: https://flickr.com/photos/statephotos/

Subscribe to the State Department Blog: https://www.state.gov/blogs
Watch on-demand State Department videos: https://video.state.gov/
Subscribe to The Week at State e-newsletter: http://ow.ly/diiN30ro7Cw

State Department website: https://www.state.gov/
Careers website: https://careers.state.gov/
White House website: https://www.whitehouse.gov/
Terms of Use: https://state.gov/tou

#StateDepartment #DepartmentofState #Diplomacy

https://www.youtube.com/watch?v=o7TySBmLgZo

MIL OSI Video –

January 25, 2025
MIL-OSI Economics: New Lufthansa Allegris First Class takes off on November 9

Source: Lufthansa Group

The time has come: in a few days, Lufthansa Allegris First Class, the flagship of the new cabin on long-haul routes, will take off on a scheduled flight for the first time. The first destinations will be Bangalore on November 9 and Mumbai (both in India) a little later, on November 15, which will then be served alternately with the new First Class. Two individual suites and the globally unique Suite Plus in the A350-900 will then take off on a scheduled flight for the first time. After a technical introduction phase, Lufthansa will initially present the new, innovative product to its most loyal guests by invitation. As soon as more aircraft with the new First Class are part of the fleet, targeted upgrades by passengers and later targeted bookings will be possible step by step.

The furnishings in the First Class Suite set new standards: guests can heat or cool their almost one-meter-wide seats in the suite according to their personal needs. The separate suites with ceiling-high walls and lockable door, large table and wide seat, a huge screen and wireless over-ear headphones, set new standards in comfort and individuality in the highest class. A personal wardrobe in the suite provides ample storage space so that travelers can change comfortably and have all their personal items to hand. Individual lamps allow travelers to create their very own feel-good atmosphere. The Suite Plus also combines maximum comfort for individual guests with the unique option of traveling together with a travel partner in a suite.

Lufthansa receives APEX Innovation Award for research into VR headsets in in-flight entertainment

Lufthansa has received the award for the world’s best in-flight entertainment innovation 2024 from the Airline Passenger Experience Association (APEX). In collaboration with Meta and MSM.Digital, the airline has launched a ground-breaking in-flight entertainment initiative and is currently testing mixed reality technologies for guests. On all flights equipped with Allegris, guests in the Business Class Suite now have the opportunity to use the headsets and give feedback on what they particularly enjoyed. With the latest generation of state-of-the-art VR headsets, Lufthansa is the only airline in the world to exclusively offer content such as captivating cinema-style movies, engaging VR 360-degree travel podcasts, interactive games and soothing relaxation exercises.

MIL OSI Economics –

January 25, 2025
MIL-OSI Video: Secretary Blinken meets with Republic of Korea Minister of Foreign Affairs Cho Tae-yul – 2:15 PM

Source: United States of America – Department of State (video statements)

Secretary of State Antony J. Blinken meets with Republic of Korea Minister of Foreign Affairs Cho Tae-yul at the Department of State, on October 31, 2024.

———-
Under the leadership of the President and Secretary of State, the U.S. Department of State leads America’s foreign policy through diplomacy, advocacy, and assistance by advancing the interests of the American people, their safety and economic prosperity. On behalf of the American people we promote and demonstrate democratic values and advance a free, peaceful, and prosperous world.

The Secretary of State, appointed by the President with the advice and consent of the Senate, is the President’s chief foreign affairs adviser. The Secretary carries out the President’s foreign policies through the State Department, which includes the Foreign Service, Civil Service and U.S. Agency for International Development.

Get updates from the U.S. Department of State at www.state.gov and on social media!
Facebook: https://www.facebook.com/statedept
Twitter: https://twitter.com/StateDept
Instagram: https://www.instagram.com/statedept
Flickr: https://flickr.com/photos/statephotos/

Subscribe to the State Department Blog: https://www.state.gov/blogs
Watch on-demand State Department videos: https://video.state.gov/
Subscribe to The Week at State e-newsletter: http://ow.ly/diiN30ro7Cw

State Department website: https://www.state.gov/
Careers website: https://careers.state.gov/
White House website: https://www.whitehouse.gov/
Terms of Use: https://state.gov/tou

#StateDepartment #DepartmentofState #Diplomacy

https://www.youtube.com/watch?v=hKQwyU9wrf8

MIL OSI Video –

January 25, 2025
MIL-OSI Asia-Pac: PIF and Hong Kong Monetary Authority sign memorandum of understanding for investment fund at FII8 (with photo)

Source: Hong Kong Government special administrative region

PIF and Hong Kong Monetary Authority sign memorandum of understanding for investment fund at FII8 (with photo)
PIF and Hong Kong Monetary Authority sign memorandum of understanding for investment fund at FII8 (with photo)
******************************************************************************************

The following is issued on behalf of the Hong Kong Monetary Authority:

Discussions to anchor a joint US$1 billion fund to invest in companies with Hong Kong nexus expanding to Saudi Arabia to drive localisation of key industries, including manufacturing, renewables, fintech and healthcare
Collaboration marks significant milestone aligning with Saudi Vision 2030 and with Hong Kong’s position as one of the world’s leading financial hubs

PIF and the Hong Kong Monetary Authority (HKMA) today (October 31) signed a memorandum of understanding (MoU) to work towards jointly anchoring a new investment fund, with a target size of US$1 billion. The MoU was signed at the 8th edition of the Future Investment Initiative (FII) in Riyadh. Under the MoU, the fund would explore investment in manufacturing, renewables, fintech and healthcare, supporting the localisation in Saudi Arabia of companies connected to Hong Kong and the Greater Bay Area. It would enable the creation of highly skilled local jobs and drive economic growth through fostering regional champions in the target sectors. It would reinforce Hong Kong’s position as one of the world’s leading financial hubs, leveraging its diverse talent pool, efficient financial infrastructure and deep liquidity. The signing of this MoU is a new milestone and underlines the economic ties between two leading institutions – PIF and HKMA. The proposed new fund aligns with PIF’s strategy of economic diversification and sustainability. This partnership has the potential to drive shared prosperity by investing in industries that will shape future economies, combining HKMA’s long-term investment expertise with PIF’s strategy for the target sectors. The new fund would promote foreign direct investments via Hong Kong, providing a platform for companies to internationalise their businesses and have access to attractive investment opportunities in Saudi Arabia.

Ends/Thursday, October 31, 2024Issued at HKT 20:45

NNNN

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI Asia-Pac: HK-GD hold green meeting

Source: Hong Kong Information Services

The Hong Kong-Guangdong Joint Working Group on Cleaner Production held its 11th meeting in Hong Kong today to review the work progress in 2024 and approve the 2025 work plan.

The meeting was co-chaired by Secretary for Environment & Ecology Tse Chin-wan and Guangdong Province Department of Industry & Information Technology Director-General Tu Gaokun.

Governments of both Hong Kong and Guangdong will continuously promote the adoption of cleaner production technologies in energy-intensive industries for saving energy and the development of energy-saving equipment.

They will also support water-intensive industries to apply water-saving technological upgrades to reduce and control wastewater discharge, as well as promote enterprises to adopt relevant technologies to reduce solid waste and emissions, including controlling and reducing volatile organic compounds emissions at source.

In addition, both sides will encourage polluting industries to undertake cleaner production audits and support enterprises to pursue green transformation.

They will also continue to implement various publicity activities to promote the effectiveness of cleaner production to the industry.

An award presentation ceremony for the Hong Kong-Guangdong Cleaner Production Partners Recognition Scheme was held after the meeting to commend the efforts of 215 enterprises in pursuing cleaner production.

Of the enterprises, 42 Hong Kong-owned manufacturing enterprises were commended as Excellent Partners while 149 were commended as Partners.

Other commended enterprises included three sourcing enterprises and 21 environmental technology service providers.

The Environment & Ecology Bureau said cleaner production has brought remarkable benefits in improving environmental quality, adding that the 2024 Policy Address announced that $100 million would be injected to launch a new round of the Cleaner Production Partnership Programme for the application period from April 2025 to June 2027.

MIL OSI Asia Pacific News –

January 25, 2025
MIL-OSI: Assetera, Republic, and SquadApp Join Forces to Revolutionize Global Marketing & Distribution of Real-World Tokens

Source: GlobeNewswire (MIL-OSI)

New York, 30th October 2024: Assetera, Europe’s first EU-regulated secondary market for tokenized securities, has teamed up with leading investment firm Republic and influencer marketing platform SquadApp to globalize distribution of tokenized securities, encompassing financial assets and tangible assets. This strategic alliance aims to unlock new opportunities in the tokenized economy and enhances influencer marketing at scale for every token issuer.

“With tokenization gaining global regulatory support, content creators will be essential to driving retail adoption. Republic empowers all market participants to trade tokenized securities, safeguarded by the transparency and security of blockchain, said Andrew Durgee, President of Republic.

Republic’s extensive experience in democratizing access to private investments will play a pivotal role in accelerating the adoption of tokenized assets across global markets. By leveraging Republic’s broad investor base and expertise, this establishes an inclusive, accessible marketplace for tokenized securities, empowering both issuers and investors alike.

The collaboration will leverage Assetera’s investment and blockchain knowledge, Republic’s experience in connecting investors with businesses to create shared value, and SquadApp’s influencer marketing capabilities to transform how issuers raise awareness and capital for their projects, and distribute to their investor base. According to McKinsey, tokenized market capitalization could reach $2 trillion by 2030, while the influencer marketing industry is expected to grow to $50 billion in the same period.

“By tokenizing shares or other financial instruments, issuers will be able to allocate assets as part of long-term marketing budgets for partnerships with influencers, effectively creating a new way to finance marketing campaigns”, Anthony Adamovich, Co-founder, CEO SquadApp.

“This gathering not only facilitates the efficient distribution of tokens, which is a primary concern for issuers, but also provides the 3 million Republic Wallet clients with the opportunity to trade these tokens on Assetera”, Thomas Labenbacher, CEO, Founder Assetera. By integrating these services, Republic enhances the liquidity options available to its users and strengthens its position in the marketplace.
About Republic

Headquartered in New York City, Republic is a global financial firm operating a network of retail-focused investment platforms and an enterprise digital advisory arm. With a deep track record of legal and technical innovation, Republic is known for providing access to new asset classes to investors of all types. Backed by Valor Equity Partners, Galaxy Interactive, Hashed, AngelList and other leading institutions, Republic boasts a global portfolio of over 2,000 companies and a community of nearly three million members in over 150 countries. More than $3 billion has been deployed through investment platforms, funds, and firms within the Republic family of companies. Republic has established operations in the US, the UK, EU, the UAE, South Korea, and Singapore.

About Assetera
Assetera, regulated by the Austrian Financial Market Authority in the EU, is set to become a game-changer in the digital asset trading space. It will offer a range of tokenized financial instruments, including financial assets and real-world assets (RWAs) such as real estate, art, transferable securities, money market instruments, fund units, and derivatives.
Assetera provides services to retail and institutional investors, and features a DLT system deployed on the Polygon blockchain to enable trading and atomic settlement. By utilizing blockchain technology, Assetera aims to democratize access to previously illiquid asset classes, providing clients with a secure, transparent, and efficient trading experience.

About SquadApp
SquadApp is a US-based, data-driven influencer marketing platform that helps brands connect with influencers globally. Specializing in optimizing campaign effectiveness and maximizing ROI, SquadApp streamlines brand-influencer collaborations, providing businesses with scalable solutions to execute high-impact influencer marketing strategies. SquadApp’s participation in this collaboration will provide tokenized projects with the critical global marketing support needed to reach diverse and global audiences.

The Vision for Global Impact
The partnership between Assetera, Republic, and SquadApp introduces a groundbreaking model for project promotion and global token distribution. By tokenizing financial instruments, such as shares and leveraging those assets for influencer marketing campaigns, this initiative creates a novel approach for projects and issuers to attract investment while simultaneously building global brand visibility. This model is in line with the emerging trends in digital assets, the finance world and decentralized marketing, offering cutting-edge solutions for brands and companies to engage with audiences and thrive in the evolving digital economy.

For more information or inquiries:
Contact Information
Jasmyn Pizzimbono
PR Lead, Republic
jasmyn@republic.co

The MIL Network –

January 25, 2025
MIL-OSI Global: Why Europe should consider putting boots on the ground in Ukraine

Source: The Conversation – UK – By Viktoriia Lapa, Lecturer, Institute for European Policymaking, Bocconi University

The mantra “as long as it takes” has become the European Union’s rallying cry in support of Ukraine’s resistance against Russia. Initially, some experts predicted that Ukraine would fall within three days – yet nearly three years have passed, and Ukraine is still standing. This prolonged struggle has come at an immense human cost.

It’s clear that the decision to resist was made by the Ukrainian population, and they are grateful to the EU for its support. However, hopes that Ukraine can repel the invaders are fading, and there is no clear end in sight. “As long as it takes” for the EU translates, for Ukrainian ears, to “as many of your lives as we can afford to sacrifice”. Ukrainians are weary, even as they hold the front line, but the west has not communicated a commitment to fully engage in stopping Russian aggression and deterring future threats. Instead, it seems focused on a policy of “de-escalation management”. This only emboldens Russia and its allies.

What is even more concerning is the absence of a coherent strategy for managing Russia. What would the EU do in the event that the war were to magically end tomorrow? Is there a plan in place, or will EU leaders simply offer Russia a reset?

The EU has excelled in rhetoric when it comes to Ukraine but has fallen short in delivering military support. It remains reluctant to draw firm red lines for Russia as a response to attacks on European soil or to adopt a more assertive stance.

The supply of shells to Ukraine is a case in point. The EU pledged to supply 1 million rounds of ammunition by March 2024, but by January, Josep Borrell, the EU’s foreign affairs chief, admitted that the bloc would only deliver half of that on time while committing to send 1.1 million shells by the year’s end. To address this shortfall, Czech president Petr Pavel proposed an initiative at the Munich Security Conference in February, aiming to provide 800,000 shells to Ukraine by the year’s end, sourcing ammunition globally instead of solely from EU manufacturers. By August 2024, the EU had sent Ukraine only 650,000 shells out of the promised 1 million.

Various news outlets have reported that the result is a grim picture on the front line, where for every shell fired by Ukraine, Russian forces are firing ten or more.

Additionally, the EU has been reluctant to take decisive action, even in response to Russian attacks on its territory. Recent incidents, such as a narrowly avoided plane crash in Germany attributed to suspected sabotage, reflect a troubling increase in aggressive behaviour from Russian saboteurs. The only response so far has been a relatively weak sanctions framework to be used on those involved in such attacks.

A strategy for the future

The EU must adopt a proactive approach to securing peace in Ukraine, recognising that Russia is currently unwilling to negotiate – but would also never negotiate from a position of weakness.

A clear strategy – including security guarantees for Ukraine, preferably through a pathway to Nato membership – could help put pressure on Russia and facilitate negotiations. It’s clear that bringing Ukraine into Nato might take years, but in the meantime, European countries should consider deploying troops to Ukraine as a security guarantee for this interim period.

As the Lithuanian minister of foreign affairs, Gabrielius Landsbergis, rightly said: “At the beginning of the year, Emmanuel Macron hinted at putting boots on the ground. At the end of the year, North Korea had actually done so. We are still on the back foot, reacting to escalation instead of reversing it. Macron’s ideas should now be revisited – better late than never.”

Security agreements do of course exist between Ukraine and its EU and G7 partners, but not a single country has hinted at a possibility of providing, as a guarantee for peace, such a security guarantee as “troops on the ground”. EU countries must consider this seriously.

And with a view to what happens after the Russian aggression in Ukraine, the EU needs at least the beginnings of an idea about what its terms would be for re-engaging with Russia. Otherwise it risks enabling Russia to set its own terms.

The situation on the ground is dire. While the west boasts economic strength, it lacks visionary leadership and political will. It should not allow Russia to take the lead and must adopt a clear strategy for Ukraine’s victory. Otherwise, we are heading toward the scenario described by Timothy Garton Ash in his Financial Times article advocating for Ukraine’s accession to Nato:

Consider the alternative. A defeated, divided, demoralized, depopulated Ukraine, pulsating with anger against the West and – as Zelenskyy hinted last week – probably seeking to acquire nuclear weapons. Moscow triumphant. The rest of the world concluding that the West is a paper tiger. Xi Jinping encouraged to have a go at Taiwan. Biden and Harris going down in history as the leaders who ‘lost Ukraine’.

One could add: the EU faces disintegration, regressing to its pre-union state. Ursula von der Leyen is remembered as the leader whose “as long as it takes” policy resulted in an epic failure to secure a safer future for Europe and Ukraine. Does the west want to see itself in this way?

Viktoriia Lapa is an Affiliated Scholar at the Center for Constitutional Studies and Democratic Development, a research partnership between the School of Law of the University of Bologna and the Johns Hopkins University Paul H. Nitze School of Advanced International Studies in Bologna, Italy (SAIS Europe).

– ref. Why Europe should consider putting boots on the ground in Ukraine – https://theconversation.com/why-europe-should-consider-putting-boots-on-the-ground-in-ukraine-242279

MIL OSI – Global Reports –

January 25, 2025
MIL-OSI USA: Myanmar fighters battle to hold prized city – AFP

Source: United States Institute of Peace

Red flags flutter over bullet-scarred buildings in the strategic Myanmar city of Lashio, which an ethnic minority armed group linked to China seized from the military in its biggest defeat for decades.

Lashio is the largest urban centre to fall to any of Myanmar’s myriad ethnic minority armed groups — who have been fighting the central authorities on and off for decades — since the military first seized power in 1962.

But analysts say the Myanmar National Democratic Alliance Army (MNDAA) will struggle to govern Lashio, which straddles a key trade route to China and normally has a population of 150,000.

Most fled the weeks of fighting that culminated in the city’s capture last month, and those who remain fear a return to the bloody violence.

Residents and rescue groups say dozens of civilians were killed or wounded as the military pounded the town with air strikes and both sides launched rockets and shells at each other.

While the fighting has eased since August, junta planes are still flying sorties and conducting air strikes, including on Monday and Tuesday night.

“We cannot say Lashio is back to normal but everyone is trying to act like it’s normal,” real estate agent Soe Soe, 30, told AFP.

She fled in July but returned after the MNDAA took over and said she will stay, even as smaller clashes continue in the vicinity.

“The situation is uncertain right now,” she added. “Everyone is afraid.”

– ‘No experience’ –

The MNDAA was part of a trio of ethnic armed groups that launched a coordinated offensive against the junta — which ousted Aung San Suu Kyi’s civilian government in 2021 — a year ago, taking it by surprise and seizing swathes of Shan state.

Junta jets are still pounding the city and targets have included hospitals and administrative buildings, according to the US Institute of Peace’s Myanmar programme chief Jason Tower.

They “seem to be focused on preventing the MNDAA from advancing post-conflict reconstruction and returning the city to normal under its governance”, he said.

Running Lashio will stretch the MNDAA’s manpower and capacity, he told AFP.

“It is now trying to govern a much larger territory and faces a wide range of challenges it has no experience dealing with.”

– ‘Everyone is afraid’ –

Lucrative lead, silver and zinc mines lie near Lashio, while hundreds of millions of dollars’ worth of trade passes along the highway that snakes northeast to China through the jungle-clad Shan hills each year, according to the junta’s commerce ministry.

Reaching the city is difficult due to fighting along the road.

Within it, rifle-toting MNDAA policemen in black uniforms patrol the streets as the group — which analysts say maintains close ties with Beijing — works to convince former residents and businesses to return.

Vendors marked out new plots at a market damaged during the fighting, but schools were shuttered and traffic was thin on the usually busy highway.

As the group tries to restore normality, MNDAA-affiliated media have released regular updates about new administrative measures, from reorganising the main market to distributing rice and supplies to needly families.

But many who fled the fighting are yet to return.

“Everyone is afraid because the fighting only just finished,” said Mae Gyi, 28, a vendor.

Junta air strikes have killed and wounded several civilians, according to the MNDAA.

And the ethnically Chinese MNDAA are an unknown quantity for Lashio’s diverse population of Bamar, Shan, and other groups.

In areas controlled by the group in its Kokang homeland along the border with China’s Yunnan province, the language of administration, the currency and internet providers are all Chinese.

It has other echoes with the People’s Republic: in April the MNDAA executed three of its members in the border city of Laukkai for murder and selling stolen weapons, following a public trial in which each of the accused wore a placard detailing their crimes in Chinese.

– Nowhere to go –

The approach has alarmed some Lashio residents, with one former inhabitant — speaking on condition of anonymity — telling AFP they would not return until the MNDAA left.

“Only our parents went back to Lashio,” the former resident said.

But others have welcomed the tough approach.

“The MNDAA has cleaned the town, and they have been helping the people… They helped to prevent prices from becoming too high,” said another former resident, whose family have returned.

AFP has contacted the group on its plans for administering Lashio but received no response.

Only “around 20-30 percent” of the town’s population had returned, said Soe Soe, but she was determined not to flee again despite the continuing low-level fighting.

“We don’t have anywhere else to go,” she said. “So I came back to Lashio and am trying my best to stay here.”

MIL OSI USA News –

January 25, 2025
MIL-OSI USA: Sectors strengthen ties for expanded Basilan peace works – The Philippine Star

Source: United States Institute of Peace

John Unson – Philstar.com

September 22, 2024 | 4:18pm

Brig. Gen. Alvin Luzon of the Army’s 101st Infantry Brigade huddles with Haroro Ingram, Philippine country director of the United States Institute of Peace at the sideline of the multi-sector peace dialogue in Lamitan City, Basilan on Sept. 20, 2024.

Photo courtesy of Philstar.com / John Unson

COTABATO CITY — The military, police, the United States Institute of Peace and the Moro Islamic Liberation Front in Basilan have strengthened ties to keep the tranquility now felt in the island province.

All of the 11 towns and the Lamitan City in Basilan, scenes of bloody clashes between Moro secessionist groups and government forces in decades past, had all been cleared from presence of the Abu Sayyaf terrorist group via joint peacebuilding programs of local government units, the police and the military’s Western Mindanao Command.

Radio reports in Cotabato City on Sunday, September 22, stated that officials of the Army’s 101st Infantry Brigade, the Basilan Provincial Police Office and representatives of the joint Government-MILF Coordinating Committee agreed to continue cooperating on programs complementing the Mindanao peace process during a dialogue in Barangay Matatag in Lamitan City on Friday, September 20.

Haroro Ingram, the Philippine country director of the United States Institute of Peace, or USIP, was present in the peace and security conference, where cooperation among key players in keeping the peace now in Basilan was discussed by participants, among them the commander of the Army’s 101st Infantry Brigade, Brig Gen. Alvin Luzon, and Basilan provincial police director, Police Colonel Cerrazid Umabong.

Local officials were quoted in Sunday’s radio reports in Cotabato as saying that the visit to Basilan on Friday of Haroro and in recent months by representatives of different foreign humanitarian entities and peace advocacy organizations, is essential to their efforts of enticing investors from other regions and from abroad to venture into viable agricultural projects in the province.

Friday’s peace and security conference in Lamitan City reportedly delved partly on the need to maintain cohesion in peacebuilding activities of all sectors in Basilan, including the Government-MILF Coordinating Committee, the 101st Infantry Brigade, the provincial police and its component municipal police stations.

The 101st Infantry Brigade, units in Basilan of the Police Regional Office-Bangsamoro Autonomous Region and local officials were credited then for the peace and calm now spreading around the four corners of the province.

MIL OSI USA News –

January 25, 2025
MIL-OSI Africa: Secretary-General’s remarks at the Ministerial Breakfast on the Intergovernmental Negotiating Committee to end Plastic Pollution [as delivered]

Source: United Nations – English

xcellencies, Friends,

We are here today as we enter the last stretch of a crucial negotiation.

Next month, Member States will meet in Busan, Republic of Korea to negotiate a multilateral solution to end plastic pollution.

A solution that is vital for people, planet and prosperity alike.

My thanks to the Government of Colombia for bringing us together today.

And I commend you for leading by example – with ambitious national measures to reduce single-use plastics.

Excellencies, dear Friends,

We are here because we know the obvious.

Plastic pollution is everywhere – all around us and even inside us – from our seas to our blood, to our brains.

We are choking on plastic.

Every year, people may ingest the equivalent of up to 50 plastic bags due to microplastics in food.

Each year, humanity produces over 460 million metric tonnes of plastic.

Half of it is designed for single-use purposes – used once and tossed away.

By 2050, there could be more plastic in the ocean than fish.

And so, it is clear that we need action, and fortunately, people are now demanding it.

Excellencies, dear Friends,

We would not be here today but for the historic step taken by Peru and Rwanda in introducing a joint proposal that paved the way for the adoption, in 2022, at the UN Environment Assembly, of a landmark resolution to begin the process to end plastic pollution.

Since then, solidarity has been the hallmark of these negotiations.

We see this solidarity enshrined in the Kunming-Montreal Global Biodiversity Framework that has reinforced the importance of addressing pollution from all sources to reduce the impacts of pollution on ecosystems and biodiversity.

And we see this solidarity in the Pact for the Future, through which Member States recommitted to work towards the conclusion of a plastics agreement “with the ambition of completing negotiations by the end of 2024”.

In Busan, Member States will have the chance to deliver on these promises and agree on a global treaty to end plastic pollution – once and for all.

This has not been a road without challenges, but it has been a journey of progress.

I thank the Chair of the International Negotiating Committee, Luis Vayas Valdivieso, as well as his predecessor Gustavo Meza-Cuadra, for getting us through five rounds of complex negotiations.

This is an opportunity to demonstrate that multilateralism, while not always easy, can deliver for people, health and the environment.

The ball is now in the court of Member States to land an agreement that is ambitious, credible and just.

An agreement that addresses the life cycle of plastic – tackling single-use and short-lived plastics;

An agreement that responds to the needs of people and communities and that unleashes a just transition for all – including 20 million waste pickers around the world.

Excellencies, dear Friends,

As the Montreal Protocol demonstrated almost forty years ago, international cooperation underpinned by meaningful legally binding agreements remains the most fruitful avenue to address global environmental challenges.

I urge you to step up for human health, equity and justice.

To step up for the future of people and planet.

An ambitious agreement is the only way to end plastic pollution.

Thank you.

MIL OSI Africa –

January 25, 2025
MIL-OSI Video: Secretary of Defense Lloyd J. Austin III and South Korean Defense Minister Brief the Media

Source: United States Department of Defense (video statements)

Lloyd J. Austin III and South Korean Defense Minister Kim Yong-hyun hold a joint press conference at the Pentagon on October 30, 2024.
—————
Your military is an all-volunteer force that serves to protect our security and way of life, but Service members are more than a fighting force. They are leaders, humanitarians and your fellow Americans. Get to know more about the men and women who serve, who they are, what they do, and why they do it.

For more on the Department of Defense, visit: http://www.defense.gov
—————
Keep up with the Department of Defense on social media!

Like the DoD on Facebook: http://facebook.com/DeptofDefense
Follow the DoD on Twitter: http://twitter.com/DeptofDefense
Follow the DoD on Instagram: http://instagram.com/DeptofDefense
Follow the DoD on LinkedIn: https://www.linkedin.com/company/DeptofDefense

https://www.youtube.com/watch?v=EtiMF0VKZ34

MIL OSI Video –

January 25, 2025
MIL-OSI United Kingdom: Autumn Budget 2024 speech

Source: United Kingdom – Executive Government & Departments

Autumn Budget 2024 speech as delivered by Chancellor Rachel Reeves.

Delivered on:

30 October 2024 (Transcript of the speech, exactly as it was delivered)

Madam Deputy Speaker…

[redacted political content]

This government was given a mandate.

To restore stability to our economy…

… and to begin a decade of national renewal.

To fix the foundations…

… and deliver change.

Through responsible leadership in the national interest.

That is our task.

And I know that we can achieve it.

My belief in Britain burns brighter than ever.

And the prize on offer is immense.

As my Right Honourable Friend the Prime Minister said on Monday – change must be felt.

More pounds in people’s pockets.

An NHS that is there when you need it.

An economy that is growing, creating wealth and opportunity for all…

… because that is the only way to improve living standards.

And the only way to drive economic growth…

… is to invest, invest, invest.

There are no shortcuts.

And to deliver that investment…

… we must restore economic stability…

[redacted political content]

INHERITANCE

[redacted political content]

… it is the first Budget in our country’s history to be delivered by a woman.

I am deeply proud to be Britain’s first ever female Chancellor of the Exchequer.

To girls and young women everywhere, I say:

Let there be no ceiling on your ambition, your hopes and your dreams.

And along with the pride that I feel standing here today…

… there is also a responsibility…

… to pass on a fairer society and a stronger economy to the next

generation of women.

[redacted political content]

A black hole in the public finances…

Public services on their knees….

A decade of low growth.

And the worst parliament on record for living standards.

Let me begin with the public finances.

In July, I exposed a £22bn black hole

[redacted political content]

The Treasury’s reserve, set aside for genuine emergencies…

… spent three times over…

… just three months into the financial year.

Today, on top of the detailed document that I have provided to the House in July…

… the government is publishing a line by line breakdown of the £22bn black hole that we inherited…

It shows hundreds of unfunded pressures on the public finances…

… this year, and into the future too.

The Office for Budget Responsibility have published their own review of the circumstances around the Spring Budget forecast.

They say that the previous government – and I quote – “did not provide the OBR with all the [available] information to them”…

… and – had they known about these “undisclosed spending pressures that have since come to light”…

… then their Spring Budget forecast for spending would have been, and I quote again: “materially different”.

Let me be clear: that means any comparison between today’s forecast and the OBR’s March forecast is false…

… because the party opposite hid the reality of their public spending plans.

Yet at the very same budget…

… they made another ten billion pounds worth of cuts to National Insurance.

[redacted political content]

That’s why today, I can confirm that we will implement in full…

… the 10 recommendations from the independent Office for Budget Responsibility’s review.

But, the country has inherited not just broken public finances…

… but broken public services too.

The British people can see and feel that in their everyday lives.

NHS waiting lists at record levels.

Children in portacabins as school roofs crumble.

Trains that do not arrive.

Rivers filled with polluted waste.

Prisons overflowing.

Crimes which are not investigated…

… and criminals who are not punished.

That is the country’s inheritance

Since 2021, there had been no detailed plans for departmental spending set out beyond this year.

And [redacted political content] plans relied on a baseline for spending this year which we now know was wrong…

… because it did not take into account the £22bn black hole.

The previous government also failed to budget for costs which they knew would materialise.

That includes funding for vital compensation schemes…

… for victims of two terrible injustices…

[redacted political content]

… the infected blood scandal…

… and the Post Office Horizon scandal.

The Leader of the Opposition rightly made an unequivocal apology for the injustice of the infected blood scandal on behalf of the British state…

… but he did not budget for the costs of compensation.

Today, for the very first time, we will provide specific funding to compensate those infected and those affected, in full…

… with £11.8bn in this budget.

And I am also today setting aside £1.8bn to compensate victims of the Post Office Horizon scandal…

… redress that is long overdue for the pain and injustice that they have suffered.

[redacted political content]

… and we will restore stability to our country again.

The scale and seriousness of the situation that we have inherited cannot be underestimated.

Together, the hole in our public finances this year, which recurs every year…

… the compensation schemes that they did not fund…

… and their failure to assess the scale of the challenges facing our public services…

… means this budget raises taxes by £40bn.

Any Chancellor standing here today would have to face this reality.

And any responsible Chancellor would take action.

That is why today, I am restoring stability to our public finances…

… and rebuilding our public services.

FISCAL RULES / OBR FORECASTS

Economy forecast/growth

As a former economist at the Bank of England, I know what it means to respect our economic institutions.

I want to put on record my thanks to the Governor of the Bank, Andrew Bailey…

… and to the independent Monetary Policy Committee.

Today, I can confirm that we will maintain the MPC’s target of two per cent inflation, as measured by the 12-month increase in the Consumer Prices Index.

I want to thank James Bowler, the Permanent Secretary to the Treasury, and my team of officials.

Madam Deputy Speaker, I would also like to thank my predecessors as Chancellor of the Exchequer…

… for their wise counsel as I have prepared for this Budget.

[redacted political content]

Finally, I want to thank Richard Hughes and his team at the Office for Budget Responsibility for their work in preparing today’s economic and fiscal outlook.

Let me now take the House through that forecast.

The cost of living crisis under the last government stretched household finances to their limit, with inflation hitting a peak of above 11%.

Today, the OBR say that CPI inflation will average 2.5% this year, 2.6% in 2025, then 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2.0% in 2029.

Next, I move on to economic growth.

Today’s budget marks an end to short-termism.

So I am pleased, that for the first time, the OBR have published not only five year growth forecasts…

… but a detailed assessment of the growth impacts of our policies over the next decade, too…

… and the new Charter for Budget Responsibility, which I am publishing today, confirms that this will become a permanent feature of our framework.

The OBR forecast that real GDP growth will be 1.1% in 2024, 2.0% in 2025, 1.8% in 2026, 1.5% in 2027, 1.5% in 2028 and 1.6% in 2029.

And the OBR are clear: this Budget will permanently increase the supply capacity of the economy…

[redacted political content]

… boosting long-term growth.

Every Budget I deliver will be focused on our mission to grow the economy.

And underpinning that mission are the seven key pillars of our growth strategy…

… developed and delivered alongside business…

… all driven forward by our Financial Secretary to the Treasury.

First, and most important, is to restore economic stability. That is my focus today.

Second, increasing investment and building new infrastructure is vital for productivity, so we are catalysing £70bn of investment through our National Wealth Fund…

… and we are transforming our planning rules to get Britain building again.

Third, to ensure that all parts of the UK can realise their potential…

… we are working with the devolved governments…

… and partnering with our Mayors to develop local growth plans.

Fourth, to improve employment prospects and skills we are creating Skills England, delivering our plans to Make Work Pay and tackling economic inactivity.

Fifth, we are launching our long-term modern industrial strategy and expanding opportunities for our small and medium sized businesses to grow.

Sixth, to drive innovation we are protecting record funding for research and development to harness the full potential of the UK’s science base.

And finally, to maximise the growth benefits of our clean energy mission, we have confirmed key investments such as Carbon Capture and Storage to create jobs in our industrial heartlands.

Our approach is already having an impact.

Just two weeks ago – we delivered an International Investment Summit which saw businesses commit £63.5bn of investment into this country…

… creating nearly 40,000 jobs across the United Kingdom.

[redacted political content]

Economic growth will be our mission for the duration of this parliament.

Stability rule

Madam Deputy Speaker, in our manifesto, we set out the fiscal rules that would guide this government.

I am confirming those today…

Our stability rule…

And our investment rule…

The “stability rule” means that we will bring the current budget into balance…

… so that we do not borrow to fund day to day spending.

We will meet this rule in 2029-30, until that becomes the third year of the forecast.

From then on, we will balance the current budget in the third year of every budget, held annually each autumn.

That will provide a tougher constraint on day to day spending…

… so difficult decisions cannot be constantly delayed or deferred.

The OBR say that the current budget will be in deficit by £26.2bn in 2025-26 and £5.2bn in 2026-27…

… before moving into surplus of £10.9bn in 2027-28, £9.3bn in 2028-29 and £9.9bn in 2029-30…

… meeting our stability rule…

… two years early.

Monthly public sector finances data shows that government borrowing in the first six months of this year…

… was already running significantly higher than the OBR’s March forecast.

And so the OBR confirmed today, that borrowing in this financial year is now £127bn…

[redacted political content]

The increase in the net cash requirement in 24-25 is lower than the increase in borrowing, at £22.3bn higher than the spring forecast.

Because of the action that we are taking…

… borrowing falls from 4.5% of GDP this year to 2.1% of GDP by the end of the forecast.

Public sector net borrowing will be £105.6bn in 2025-26, £88.5bn in 2026-27, £72.2bn in 2027-28, £71.9bn in 2028-29 and £70.6bn in 2029-2930.

FIXING THE FOUNDATIONS

Spending

Madam Deputy Speaker, before I come to tax…

… it is vital that we are driving efficiency and reducing wasteful spending.

In July, to begin delivering, and dealing with our inheritance…

… I made £5.5bn of savings this year.

Today we are setting a 2% productivity, efficiency and savings target for all departments to meet next year…

… by using technology more effectively and joining up services across government

As set out in our manifesto, I will shortly be appointing our Covid Corruption Commissioner, they will lead our work to uncover those companies that used a national emergency to line their own pockets.

Because that money belongs in our public services. And taxpayers want that money back.

And I can confirm today that David Goldstone has been appointed as the Chair of the new Office for Value for Money…

… to help us realise the benefits from every pound of public spending.

Welfare

Today, I am also taking three steps to ensure that welfare spending is more sustainable.

First, we inherited [redacted political content] plans to reform the Work Capability Assessment.

We will deliver those savings…

…as part of our fundamental reforms to the health and disability benefits system that my Right Honourable Friend the Work and Pensions Secretary will bring forward.

Second, I can today announce a crackdown on fraud in our welfare system…

… often the work of criminal gangs.

We will expand DWP’s counter-fraud teams..

… using innovative new methods to prevent illegal activity…

… and provide new legal powers to crackdown on fraudsters…

… including direct access to bank accounts to recover debt.

This package saves £4.3bn a year by the end of the forecast.

Third, the government will shortly be publishing the “Get Britain Working” white paper…

… tackling the root causes of inactivity with an integrated approach across health, education and welfare.

… and we will provide £240m for 16 trailblazer projects…

… targeted at those who are economically inactive and most at risk of being out of education, employment or training…

… to get people into work and reduce the benefits bill.

Tax avoidance

Before a government could consider any change to a tax rate or threshold…

… it must ensure that people pay what they already owe.

So we will invest to modernise HMRC’s systems using the very best technology…

… and recruit additional HMRC compliance and debt staff.

We will clamp down on those umbrella companies who exploit workers…

… increase the interest rate on unpaid tax debt to ensure that people pay on time…

… and go after promoters of tax avoidance schemes.

These measures to reduce the tax gap raise £6.5bn by the end of the forecast…

… and I want to thank the Exchequer Secretary for his outstanding work on this agenda.

PROTECTING WORKING PEOPLE

Madam Deputy Speaker, I know that for working people up and down our country…

… family finances are stretched…

… and pay checks don’t go as far as they once did.

So today, I am taking steps to support people with the cost of living.

Cost of living

[redacted political content]

As promised in our manifesto, we asked the Low Pay Commission to take account of the cost of living for the first time.

I can confirm that we will accept the Low Pay Commission recommendation to increase the National Living Wage by 6.7% to £12.21 an hour…

… worth up to £1,400 a year for a full-time worker.

And for the first time, we will move towards a single adult rate…

… phased in over time…

… by initially increasing the National Minimum Wage for 18-20 year olds by 16.3% as recommended by the Low Pay Commission…

… taking it to £10 an hour.

[redacted political content]

Second, I have heard representations from colleagues across this house about the Carer’s Allowance…

… and the impact of the current policy on carers looking to increase the hours they work…

… including from the Honourable member for Shipley, the Honourable member for Scarborough and Whitby and the Rt Hon Member for Kingston and Surbiton, too.

Carer’s allowance currently provides up to £81.90 per week to help those with additional caring responsibilities.

Today, I can confirm that we are increasing the weekly earnings limit to the equivalent of 16 hours at the National Living Wage per week…

… the largest increase in Carer’s Allowance since it was introduced in 1976.

That means a carer can now earn over £10,000 a year while receiving Carer’s Allowance…

… allowing them to increase their hours where they want to…

… and keep more of their money.

I am also concerned about the cliff-edge in the current system and the issue of overpayments.

My Right Honourable Friend the Work and Pensions Secretary has announced an independent review to look at the issue of overpayments, and we will work across this house to develop the right solutions.

Third, we will provide £1bn from next year to extend the Household Support Fund and Discretionary Housing Payments, to help those facing financial hardship with the cost of essentials.

Fourth, having heard representations from the Joseph Rowntree Foundation, Trussell and others…

… to reduce the level of debt repayments that can be taken from a household’s Universal Credit payment each month…

… by reducing it from 25% to 15% of their standard allowance.

This means that 1.2 million of the poorest households will keep more of their award each month…

… lifting children out of poverty…

… and those who benefit will gain an average of £420 a year.

Madam Deputy Speaker, our Plan to Make Work Pay will also protect working people.

[redacted political content]

It is right that we protect those who have worked their whole lives.

In our manifesto, we promised to transfer the Investment Reserve Fund in the Mineworkers’ Pension Scheme to members…

… and I have listened closely to my Honourable Friends for Easington, Doncaster Central, Blaenau Gwent, and Ayr, Carrick and Cumnock on this issue.

Today we are keeping our promise…

… so that working people who powered our country receive the fair pension that they are owed.

Our manifesto committed to the Triple Lock…

… meaning spending on the State Pension is forecast to rise by over £31bn by 2029-30…

… to ensure that our pensioners are protected in their retirement.

This commitment means that while working age benefits will be uprated in line with CPI, at 1.7%…

… the basic and new State Pension…

… will be uprated by 4.1% in 2025-26.

This means that over 12 million pensioners will gain up to £470 next year…

… up to £275 more than if uprated by inflation.

The Pension Credit Standard Minimum Guarantee will also rise by 4.1%…

… from around £11,400 per year to around £11,850 for a single pensioner.

Fuel duty

While I have sought to protect working people with measures to reduce the cost of living…

… I have had to take some very difficult decisions on tax.

I want to set out my approach to fuel duty.

Baked into the numbers that I inherited from the previous government…

… is an assumption that fuel duty will rise by RPI next year…

… and that the temporary 5p cut will be reversed.

To retain the 5p cut…

… and to freeze fuel duty again…

… would cost over £3bn next year.

At a time when the fiscal position is so difficult…

… I have to be frank with the House that this is a substantial commitment to make.

I have concluded…

… that in these difficult circumstances…

… while the cost of living remains high…

… and with a backdrop of global uncertainty…

… increasing fuel duty next year…

… would be the wrong choice for working people.

It would mean fuel duty rising by 7p per litre.

So, I have today decided to freeze fuel duty next year…

… and I will maintain the existing 5p cut for another year, too.

There will be no higher taxes at the petrol pumps next year.

Madam Deputy Speaker, the last government made cuts of £20bn to employees’ and self-employed national insurance in their final two budgets.

[redacted political content]

Because we now know they were based on a forecast which the OBR say would have been “materially different”…

… had they known the true extent of the last government’s cover-up.

Since July, I have been urged on multiple occasions to reconsider these cuts.

To increase the taxes that working people pay and see in their payslips.

But I have made an important choice today:

To keep every single commitment that we made on tax in our manifesto.

So I say to working people:

I will not increase your National Insurance…

…I will not increase your VAT…

…And I will not increase your income tax.

Working people will not see higher taxes in their payslips as a result of the choices I make today.

That is a promise made – and a promise fulfilled.

TAX

But any responsible Chancellor would need to take difficult decisions today.

To raise the revenues required to fund our public services.

And to restore economic stability.

So in today’s Budget, I am announcing an increase in Employers’ National Insurance Contributions.

We will increase the rate of Employers’ National Insurance by 1.2 percentage points, to 15%, from April 2025.

And we will reduce the Secondary Threshold – the level at which employers start paying national insurance on each employee’s salary – from £9,100 per year to £5,000.

This will raise £25bn per year by the end of the forecast period.

I know that this is a difficult choice.

I do not take this decision lightly.

We are asking business to contribute more…

… and I know that there will be impacts of this measure felt beyond businesses, too…

… as the OBR have set out today.

But in the circumstances that I have inherited, it is the right choice to make.

Successful businesses depend on successful schools.

Healthy businesses depend on a healthy NHS.

And a strong economy depends on strong public finances.

[redacted political content]

That is the choice our country faces too.

As I make this choice, I know it is particularly important to protect our smallest companies.

So having heard representations from the Federation of Small Businesses and others…

… I am today increasing the Employment Allowance from £5,000 to £10,500.

This means 865,000 employers won’t pay any National Insurance at all next year…

… and over 1 million will pay the same or less than they did previously.

This will allow a small business to employ the equivalent of 4 full time workers on the National Living Wage…

… without paying any National Insurance on their wages.

Madam Deputy Speaker, let me come now to capital gains tax.

We need to drive growth, promote entrepreneurship, and support wealth creation…

… while raising the revenue required to fund our public services…

… and restore our public finances.

Today, we will increase the lower rate of Capital Gains Tax from 10% to 18%, and the Higher Rate from 20% to 24%…

… while maintaining the rates of capital gains tax on residential property at 18% and 24%, too.

This means the UK will still have the lowest Capital Gains Tax rate of any European G7 economy.

Alongside these changes to the headline rates of Capital Gains Tax…

… we are maintaining the lifetime limit for Business Asset Disposal Relief at £1m…

… to encourage entrepreneurs to invest in their businesses.

Business Asset Disposal Relief will remain at 10% this year…

… before rising to 14% in April 2025…

… and 18% from 2026-27…

… maintaining a significant gap compared to the higher rate of Capital Gains Tax.

Together, the OBR say these measures will raise £2.5bn by the end of the forecast.

In a sign of this government’s commitment to supporting growth and entrepreneurship…

…we have already extended the Enterprise Investment Scheme and Venture Capital Trust schemes to 2035…

… and we will continue to work with leading entrepreneurs and venture capital firms…

… to ensure our policies support a positive environment for entrepreneurship in the UK.

Next, inheritance tax.

Only 6% of estates will pay inheritance tax this year.

I understand the strongly held desire to pass down savings to children and grandchildren.

So I am taking a balanced approach in my package today.

First, the previous government froze inheritance tax thresholds until 2028. I will extend that freeze for a further two years, until 2030.

That means the first £325,000 of any estate can be inherited tax-free…

… rising to £500,000 if the estate includes a residence passed to direct descendants….

… and £1m when a tax free allowance is passed to a surviving spouse or civil partner.

Second, we will close the loophole created by the previous government…

… made even bigger when the Lifetime Allowance was abolished…

… by bringing inherited pensions into inheritance tax from April 2027.

Finally, we will reform Agricultural Property Relief and Business Property Relief.

From April 2026, the first £1m of combined business and agricultural assets will continue to attract no inheritance tax at all…

… but for assets over £1m, inheritance tax will apply with 50% relief, at an effective rate of 20%.

This will ensure we continue to protect small family farms…

… and three-quarters of claims will be unaffected by these changes.

I can also announce that we will apply a 50% relief, in all circumstances, on inheritance tax for shares on the Alternative Investment Market (AIM) and other similar markets…

… setting the effective rate of tax at 20%.

Taken together, these measures raise over £2bn in the final year of the forecast.

Next, I can confirm that the government will renew the Tobacco Duty escalator for the remainder of this Parliament at RPI+2%…

… increase duty by a further 10% on hand-rolling tobacco this year…

… introduce a flat rate duty on all vaping liquid from October 2026…

… alongside an additional one off- increase in tobacco duty to maintain the incentive to give up smoking.

And we will increase the Soft Drinks Industry Levy to account for inflation since it was introduced…

… as well as increasing the duty in line with CPI each year going forward.

These measures will raise nearly £1bn per year by the end of the forecast period.

Madame Deputy Speaker, we want to support the take-up of electric vehicles.

So I will maintain incentives for electric vehicles in Company Car Tax from 2028…

… and increase the differential between fully electric and other vehicles in the first year rates of Vehicle Excise Duty from April 2025.

These measures will raise around £400m by the end of the forecast period.

Madam Deputy Speaker let me update the House on our plans for Air Passenger Duty…

[redacted political content]

Air Passenger Duty has not kept up with inflation in recent years…

… so we are introducing an adjustment…

… meaning an increase of no more than £2 for an economy class short-haul flight.

But I am taking a different approach when it comes to private jets…

… increasing the rate of Air Passenger Duty by a further 50%.

[redacted political content]

These measures will raise over £700m by the end of the forecast period.

Madam Deputy Speaker, let me turn now to our high street businesses.

I know that for them, a major source of concern is business rates.

From 2026-27, we intend to introduce two permanently lower tax rates for retail, hospitality and leisure properties which make up the backbone of high streets across the country…

… and it is our intention that is paid for by a higher multiplier for the most valuable properties.

[redacted political content]

So I will today provide 40% relief on business rates for the retail, hospitality and leisure industry in 2025-26…

… up to a cap of £110,000 per business.

Alongside this, the small business tax multiplier will be frozen next year.

Next, I can confirm that alcohol duty rates on non-draught products will increase in line with RPI from February next year…

… but nearly two-thirds of alcoholic drinks sold in pubs are served on draught.

So today, instead of uprating these products in line with inflation…

… I am cutting draught duty by 1.7%…

… which means a penny off a pint in the pub.

Alongside the changes I am making today, I am publishing a Corporate Tax Roadmap..

… providing the business certainty called for by the CBI, British Chambers of Commerce and the Institute for Directors.

This confirms our commitment to cap the rate of Corporation Tax at 25% – the lowest in the G7 – for the duration of this parliament….

… while maintaining full expensing and the £1 million Annual Investment Allowance…

…and keeping the current rates of research and development reliefs, to drive innovation.

Manifesto

Madam Deputy Speaker, in our manifesto we made a number of commitments to raise funding for our public services.

First, I have always said that if you make Britain your home, you should pay your tax here.

So today, I can confirm…

… we will abolish the non-dom tax regime…

… and remove the outdated concept of domicile from the tax system from April 2025.

We will introduce a new, residence based scheme…

… with internationally competitive arrangements for those coming to the UK on a temporary basis…

… while closing the loopholes in the scheme designed by the party opposite.

To further encourage investment into the UK, we will also extend the Temporary Repatriation Relief to three years and expand its scope…

… bringing billions of pounds of new funds into Britain.

The independent Office for Budget Responsibility say that this package of measures will raise £12.7bn over the next five years.

Next, the fund management industry provides a vital contribution to our economy…

… but as our manifesto set out, there needs to be a fairer approach to the way carried interest is taxed.

So we will increase the Capital Gains Tax rates on carried interest to 32% from April 2025…

… and – from April 2026 – we will deliver further reforms to ensure that the specific rules for carried interest are simpler, fairer and better targeted.

In our manifesto we committed to reforming stamp duty land tax to raise revenue while supporting those buying their first home.

We are increasing the stamp-duty land tax surcharge for second-homes…

…known as the “Higher Rate for Additional Dwellings”…

… by 2 percentage points, to 5%, which will come into effect from tomorrow.

This will support over 130,000 additional transactions from people buying their first home, or moving home over, the next five years.

Next, we committed to reform the Energy Profits Levy on oil and gas companies.

I can confirm today that we will increase the rate of the levy to 38%, which will now expire in March 2030…

… and we will remove the 29% investment allowance.

To ensure the oil and gas industry can protect jobs and support our energy security…

… we will maintain the 100% first year allowances and the decarbonisation allowances too.

Finally, 94% of children in the UK attend state schools.

To provide the highest quality of support and teaching that they deserve…

… we will introduce VAT on private school fees from January 2025…

… and we will shortly introduce legislation to remove their business rates relief from April 2025, too.

We said in our manifesto that these changes…

… alongside our measures to tackle tax avoidance…

… would bring in £8.5bn by the final year of the forecast.

I can confirm today that they will in fact raise over £9bn…

… to support our public services and restore our public finances.

That is a promise made – and a promise fulfilled.

Madam Deputy Speaker, I have one final decision to take on tax today.

The previous government froze income tax and National Insurance thresholds in 2021…

… and then they did so again after the mini-budget.

Extending their threshold freeze for a further two years raises billions of pounds.

Money to deal with the black hole in our public finances…

… and repair our public services.

Having considered this issue closely…

… I have come to the conclusion…

… that extending the threshold freeze…

… would hurt working people.

It would take more money out of their payslips.

I am keeping every single promise on tax that I made in our manifesto.

So there will be no extension of the freeze in income tax and National Insurance thresholds beyond the decisions of the previous government.

From 2028-29, personal tax thresholds will be uprated in line with inflation once again.

When it comes to choices on tax, this government chooses to protect working people every single time.

SPENDING

Madam Deputy Speaker, these are the choices I have made.

To restore economic stability.

And to protect working people.

The next choice I make is to begin to repair our public services.

In recent months, we have conducted the first phase of the Spending Review…

… to set departmental budgets for 2024-25 and 2025-26…

… and I want to thank my Right Honourable Friend the Chief Secretary to the Treasury for his tireless work with colleagues from across government.

Because I have taken difficult decisions on tax today…

… I am able to provide an injection of immediate funding over the next two years…

… to stabilise and to support our public services.

The next phase of the Spending Review will report in late Spring, and I have set the overall envelope today.

Day to day spending from 2024-25 onwards will grow by 1.5% in real terms…

… and total departmental spending, including capital spending, will grow by 1.7% in real terms.

At the election we promised there would be no return to austerity.

Today we deliver on that promise.

But given the scale of the challenges that are facing our public services…

… that means there will still be difficult choices in the next phase of the Spending Review.

Just as we cannot tax and spend our way to prosperity…

… nor can we simply spend our way to better public services.

So we will deliver a new approach to public service reform…

… using technology to improve public services…

… and taking a zero-based approach…

… so that taxpayers’ money is spent as effectively as possible…

… and so that we focus on delivering our key priorities.

Spending Review: Phase 1

In the first phase of the Spending Review…

… I have prioritised day-to-day funding to deliver on our manifesto commitments.

I want every child to have the best start in life…

… and the best possible start to the school day, too…

… and I know my Right Honourable Friend the Education Secretary shares my ambition.

So I am today tripling investment in breakfast clubs to fund them in thousands of schools.

I am increasing the core schools budget by £2.3bn next year…

… to support our pledge to hire thousands more teachers into key subjects.

So that our young people can develop the skills that they need for the future…

… I am providing an additional £300m for further education.

And finally, this government is committed to reforming special educational needs provision…

… to improve outcomes for our most vulnerable children and ensure the system is financially sustainable.

To support that work, I am today providing a £1bn uplift in funding, a 6% real terms increase from this year.

There is no more important job for government than to keep our country safe, and we are conducting a Strategic Defence Review to be published next year.

And as set out in our manifesto, we will set a path to spending 2.5% of GDP on defence at a future fiscal event.

Today, I am announcing a total increase to the Ministry of Defence’s Budget of £2.9bn next year…

… ensuring the UK comfortably exceeds our NATO commitments…

… and providing guaranteed military support to Ukraine of £3bn per year, for as long as it takes.

Last week, alongside my Right Honourable Friend the Defence Secretary, I announced, in addition to this, further support to Ukraine – on top of our NATO commitment…

… through our £2.26bn contribution to the G7’s Extraordinary Revenue Acceleration agreement…

… repaid using profits from immobilised Russian sovereign assets.

And as we approach Remembrance Sunday…

… it is vital that we take time to remember those who have served our country so bravely.

So I am today announcing funding to commemorate the 80th anniversary of VE and VJ day next year…

… to honour those who have served at home and abroad.

We must also remember those who experienced the atrocities of the Nazi regime first hand.

I would like to pay tribute to Lily Ebert, the Holocaust Survivor and educator who passed away aged 100 earlier this month.

I am today committing a further £2m to holocaust education next year…

… so that charities like the Holocaust Educational Trust, can continue their work to ensure these vital testimonies are not lost and are preserved for the future.

Madam Deputy Speaker, to repair our public services we also need to work alongside our mayors and our local leaders.

We will deliver a significant real-terms funding increase for local government next year…

… including £1.3bn of additional grant funding to deliver essential services…

… with at least £600m in grant funding for social care…

… and £230m to tackle homelessness and rough sleeping

We are today confirming that Greater Manchester and the West Midlands will be the first mayoral authorities to receive integrated settlements from next year…

… giving Mayors meaningful control of the funding for their local areas.

*

And to support our local high streets…

… we are taking action to deal with the sharp rise in shoplifting we have seen in recent years.

We will scrap the effective immunity for low-value shoplifting introduced by the party opposite.

And having listened closely to organisations like the British Retail Consortium and USDAW…

… I am providing additional funding to crack down on the organised gangs which target retailers…

… and to provide more training to our police officers and retailers to help stop shoplifting in its tracks.

Finally, I am today providing funding to support public services and drive growth across Scotland, Wales and Northern Ireland.

Having discussed the matter with the First Minister of Wales, Eluned Morgan, and my HFs for Llanelli and Pontypridd…

… I am providing a £25m to the Welsh Government next year for the maintenance of coal tips to ensure we keep our communities safe.

And to support growth, including in our rural areas, we will proceed with City and Growth Deals in Northern Ireland…

… in Causeway Coast and Glens; and Mid-South West.

And we will drive growth in Scotland [redacted political content] including a City and growth Deal in Argyll and Bute.

This budget provides the devolved governments with the largest real-terms funding settlement since devolution…

… delivering an additional £3.4 billion for the Scottish Government through the Barnett formula…

… funding which must now be spent effectively to improve public services in Scotland.

This budget also provides £1.7 billion to the Welsh Government…

… and £1.5 billion to the Northern Ireland Executive in 2025-26.

I said there would be no return to austerity, and that is the choice I have made today.

REBUILDING BRITAIN

Madam Deputy Speaker, to rebuild our country we need to increase investment.

The UK lags behind every other G7 country when it comes to business investment as a share of our economy.

That matters.

It means the UK has fallen behind in the race for new jobs…

… new industries…

… and new technology.

By restoring economic stability…

… and by establishing the National Wealth Fund to catalyse private funding…

… we have begun to create the conditions that businesses need to invest.

But there is also a significant role for public investment.

Hospitals without the equipment they need.

School buildings not fit for our children.

A desperate lack of affordable housing.

Economic growth held back at every turn.

Under the plans I inherited…

… public investment was set to fall from 2.5% to 1.7% of GDP.

But in Washington last week, the International Monetary Fund were clear:

More public investment is badly needed in the UK.

So today, having listened to the case made by the former Governor of the Bank of England, Mark Carney…

… former Treasury Minister, Jim O’Neill…

… and the former Cabinet Secretary, Gus O’Donnell…

… among others…

… I am confirming our investment rule.

As set out in our manifesto, we will target debt falling as a share of the economy.

Debt will be defined as Public Sector net Financial Liabilities, or “net financial debt”, for short…

… a metric that has been measured by the Office for National Statistics since 2016…

… and forecast by the Office for Budget Responsibility since that date too.

“Net financial debt” recognises that government investment delivers returns for taxpayers…

… by counting not just the liabilities on a government’s balance sheet, but the financial assets too.

This means that we count the benefits of investment, not just the costs…

And we free up our institutions to invest…

… just as they do in Germany, France and Japan.

Like our stability rule, our investment rule will apply in 2029-2030…

… until that becomes the third year of the forecast.

From that point onwards, net financial debt will fall in the third year of every forecast.

Today, the OBR say that we are already meeting our target two years early…

… with “net financial debt” falling by 2027-28…

… with £15.7bn of headroom in the final year.

So that we drive the right incentives in government investments…

… we will introduce four key guardrails to ensure capital spending is good value for money and drives growth in our economy.

First, our portfolio of new financial investments will be delivered by expert bodies like the National Wealth Fund which must, by default, earn a rate of return at least as large as that on gilts.

Second, we will strengthen the role of institutions to improve infrastructure delivery.

Third, we will improve certainty, setting capital budgets for five years and extending them at every spending review every two years.

Finally, we will ensure there is greater transparency for capital spending, with robust annual reporting of financial investments…

… based on accounts audited by the National Audit Office…

… and made available to the Office for Budget Responsibility at every forecast.

Taken together with our stability rule…

…these fiscal rules will ensure that our public finances are on a firm footing…

… while enabling us to invest prudently alongside business.

Growth projects

The capital plans I now set out…

… to drive growth across our country…

… and repair the fabric of our nation…

… are only possible because of our investment rule.

Let me set out those investment plans.

Industrial strategy

Today we are confirming our plans to capitalise the National Wealth Fund…

… to invest in the industries of the future…

… from gigafactories, to ports to green hydrogen.

Building on these investments, my Right Honourable Friend the Business Secretary is driving forward our modern industrial strategy…

… working with businesses and organisations like Make UK…

… to set out the sectors with the biggest growth potential.

Today, we are confirming multi-year funding commitments for these areas of our economy, including…

… nearly £1bn for the aerospace sector to fund vital research and development, building on our industry in the East Midlands, the South-West and Scotland…

… over £2 billion for the automotive sector…

… to support our electric vehicle industry and develop our manufacturing base…

… building on our strengths in the North East and the West Midlands…

And up to £520m for a new Life Sciences Innovative Manufacturing Fund.

For our world-leading creative industries…

… we will legislate to provide additional tax relief for visual effect costs in TV and film…

.. and we are providing £25m for the North East Combined Authority…

… which they plan to use to remediate the Crown Works Studio site in Sunderland…

… creating 8,000 new jobs.

Research & Development

To unlock these growth industries of the future, we will protect government investment in research and development with more than £20bn worth of funding.

This includes at least £6.1bn to protect core research funding for areas like engineering, biotechnology and medical science…

…through Research England, other research councils, and the National Academies.

We will extend the Innovation Accelerators programme in Glasgow, in Manchester and in the West Midlands.

And with over £500m of funding next year, my Right Honourable Friend the Science, Technology and Innovation Secretary, will continue to drive progress in improving reliable, fast broadband and mobile coverage across our country, including in rural areas.

Housing

We committed in our manifesto to build 1.5 million homes over the course of this parliament…

… and my Right Honourable Friend the Deputy Prime Minister is driving that work forward across government.

Today, I am providing over £5bn of government investment to deliver our plans on housing next year.

We will increase the Affordable Homes Programme to £3.1bn…

… delivering thousands of new homes.

We will provide £3bn of support in guarantees…

… to boost the supply of homes and support our small housebuilders.

And we will provide investment to renovate sites across our country…

… including at Liverpool Central Docks…

… where we will deliver 2,000 new homes…

… and funding to help Cambridge realise its full growth potential.

Alongside this investment, we will put the right policies in place to increase the supply of affordable housing.

Having heard representations from local authorities, social housing providers and from Shelter…

… I can today confirm that the government will reduce Right to Buy Discounts…

… and local authorities will be able to retain the full receipts from any sales of social housing…

… to reinvest back into the housing stock, and into new supply..

… so that we give more people a safe, secure and affordable place to live.

We will provide stability to social housing providers, with a social housing rent settlement of CPI+1 percent for the next five years.

And we will deliver on our manifesto commitment to hire hundreds of new planning officers, to get Britain building again.

We will also make progress on our commitment to accelerate the remediation of homes following the findings of the Grenfell Inquiry…

… with £1bn of investment to remove dangerous cladding next year.

Transport

Working with my Right Honourable Friend the Transport Secretary, I am changing that.

We are today securing the delivery of the Trans-Pennine upgrade to connect York, Leeds, Huddersfield and Manchester…

… delivering fully electric local and regional services between Manchester and Stalybridge by the end of this year…

… with a further electrification of services between Church Fenton and York by 2026.…

… to help grow our economy across the North of England…

… with faster and more reliable services.

We will deliver East-West Rail to drive growth between Oxford, Milton Keynes and Cambridge…

… with the first services running between Oxford, Bletchley and Milton Keynes next year…

… and trains between Oxford and Bedford running from 2030.

We are delivering railway schemes which improve journeys for people across our country…

… including upgrades at Bradford Forster Square…

… improving capacity at Manchester Victoria…

… and electrifying the Wigan-Bolton line.

My Right Honourable Friend the Transport Secretary has also set out a plan for how to get a grip of HS2.

Today, we are securing delivery of the project between Old Oak Common and Birmingham…

… and we are committing the funding required to begin tunnelling work to London Euston station…

… This will catalyse private investment into the local area.

I am also funding significant improvements to our roads network.

For too long, potholes have been an all too visible reminder of our failure to invest as a nation.

Today, that changes…

… with a £500m increase in road maintenance budgets next year…

… more than delivering on our manifesto commitment to fix an additional one million potholes each year.

We will provide over £650m of local transport funding to improve connections across our country…

… in our towns like Crewe and Grimsby…

… and in our villages and rural areas, from Cornwall to Cumbria.

… we understand how important bus services are for our communities…

…so we will extend the cap for a further year, setting it at £3 until December 2025.

Finally we will deliver £1.3bn of funding to improve connectivity in our city regions, funding projects like…

… the Brierley Hill Metro extension in the West Midlands…

… the renewal of the Sheffield Supertram…

… and West Yorkshire Mass Transit, including in Bradford and Leeds.

Energy

Madam Deputy Speaker, to bring new jobs to Britain and drive growth across our country…

… we are delivering our mission to make Britain a clean energy superpower, led by my Right Honourable Friend the Energy Secretary.

Earlier this month, we announced a significant multi-year investment between government and business into Carbon Capture and Storage…

… creating 4,000 jobs across Merseyside and Teesside.

Today, I am providing funding for 11 new green hydrogen projects across England, Scotland and Wales – they will be among the first commercial scale projects anywhere in the world…

… including in Bridgend, East Renfrewshire and in Barrow-in-Furness

We are kickstarting the Warm Homes Plan by confirming an initial £3.4bn over the next three years…

… to transform 350,000 homes…

… including a quarter of a million low-income and social homes.

And we will establish GB Energy…

… providing funding next year to set up GB Energy at its new home in Aberdeen.

Overall, we will invest an additional £100bn over the next five years in capital spending…

… only possible because of our investment rule.

The OBR say today that this will drive growth across our country in the next five years…

… and in the longer term increase GDP by up to 1.4%.

It will crowd in private investment…

… meaning more jobs, and more opportunities…

… in every corner of the UK.

That is the choice that I have made.

To invest in our country…

… and to grow our economy.

Today, I am setting out two final areas in which investment is so badly needed…

… to repair the fabric of our nation.

Schools

[redacted political content]

… schools roofs are crumbling….

… and millions of children are facing the very same backdrop as I did.

I will be the Chancellor that changes that.

So today, I am providing £6.7bn of capital investment to the Department for Education next year…

… a 19% real-terms increase on this year.

That includes £1.4bn to rebuild over 500 schools in the greatest need…

… including St Helen’s Primary School in Hartlepool, and Mercia Academy in Derby…

… and so many more across our country.

And we will provide a further £2.1bn to improve school maintenance, £300m more than this year…

… ensuring that all our children can learn somewhere safe…

… including dealing with RAAC affected schools in the constituencies of my HFs the members for Watford, Stourbridge, Hyndburn, and beyond.

Alongside investment in new teachers…

… and funding for thousands of new breakfast clubs…

… this government is giving our children and young people the opportunities that they deserve.

NHS

Madam Deputy Speaker, I come to our most cherished public service of all: our NHS.

[redacted political content]

In our first week in office, he commissioned an independent report into the state of our health service by Lord Darzi.

Its conclusions were damning.

While our NHS staff do a remarkable job, and we thank them for it…

… it is clear that, that in so many areas…

… we are moving in the wrong direction.

100,000 infants waited over 6 hours in A&E last year.

350,000 people are waiting a year for mental health support.

Cancer deaths here are higher than in other countries.

It is simply unforgiveable.

In the Spring, we will publish a 10 year plan for the NHS…

… to deliver a shift from hospital to community…

… from analogue to digital…

… and from sickness to prevention.

Today, we are announcing a downpayment on that plan…

… to enable the NHS to deliver 2% productivity growth next year.

These reforms are vital.

But we should be honest.

The state of the NHS we inherited…

… after – and I quote Lord Darzi – “the most austere decade since the NHS was founded” –

… means reform must come alongside investment.

So today…

… because of the difficult decision that I have taken on tax, welfare and spending…

… I can announce…

… that I am providing a £22.6bn increase in the day to-day health budget…

… and a £3.1bn increase in the capital budget…

… over this year and next year.

This is the largest real-terms growth in day to day NHS spending outside of Covid since 2010.

Let me set out what this funding is delivering.

Many NHS buildings have been left in a state of disrepair.

So we will provide £1 billion of health capital investment next year to address the backlog of repairs and upgrades across the NHS.

To increase capacity for tens of thousands more procedures next year…

… we will provide a further £1.5bn…

… for new beds in hospitals across the country…

… new capacity for over a million additional diagnostic tests…

… and new surgical hubs and diagnostic centres …

… so that those people waiting for their treatment can get it as quickly as possible.

My Right Honourable Friend the Health Secretary will be announcing the details of his review into the New Hospital Programme in the coming weeks…

… and publishing in the new year…

… but I can tell the House today…

… that work will continue at pace to deliver those seven hospitals affected including…

… West Suffolk Hospital in Bury St Edmunds…

… and Leighton Hospital in Crewe.

And finally…

… because of this record injection of funding…

… because of the thousands of additional beds that we have secured…

… and because of the reforms that we are delivering in our NHS…

… we can now begin to bring waiting lists down more quickly…

… and move towards our target for waiting times no longer than 18 weeks…

… by delivering our manifesto commitment for 40,000 extra hospital appointments a week.

[redacted political content]

CLOSING

Madam Deputy Speaker, the choices that I have made today are the right choices for our country.

To restore stability to our public finances.

To protect working people.

To fix our NHS.

And to rebuild Britain.

That doesn’t mean these choices are easy.

But they are responsible.

[redacted political content]

This is a moment of fundamental choice for Britain.

I have made my choices.

The responsible choices.

To restore stability to our country.

To protect working people.

More teachers in our schools.

More appointments in our NHS.

More homes being built.

Fixing the foundations of our economy.

Investing in our future.

Delivering change.

Rebuilding Britain.

We on these benches commend those choices…

… and I commend this Statement to the House.

Updates to this page

Published 30 October 2024

MIL OSI United Kingdom –

January 25, 2025
MIL-OSI USA News: Fact Sheet: President Donald J. Trump Directs Administration to Advance Lumbee Tribe Recognition
Source: The White House
DIRECTING PLAN FOR RECOGNITION OF LARGEST TRIBE EAST OF MISSISSIPPI RIVER: Today, President Donald J. Trump signed a Presidential Memorandum to the Secretary of the Interior to submit a plan to advance full federal recognition of the Lumbee Tribe of North Carolina.
- The memorandum establishes that it is the policy of the United States to support federal recognition and full tribal benefits for the Lumbee Tribe of North Carolina.
- It directs the Secretary of the Interior to submit a plan to assist the Lumbee Tribe in obtaining full federal recognition through legislation or other available mechanisms, including the right to receive full federal benefits.
FULL FEDERAL RECOGNITION IS LONG OVERDUE:The Lumbee have long been recognized at the state and federal level, but further federal action is required for full federal recognition and the accompanying benefits and protections.
- The State of North Carolina recognized the Lumbee Tribe in 1885, and in 1956, President Dwight D. Eisenhower signed the 1956 Lumbee Act, which recognized the Lumbee but denied them some federal benefits.
- Tribes can gain federal recognition by: (1) Act of Congress; (2) the Department of the Interior’s Office of Federal Acknowledgement process; or (3) federal court decision.
  
  President Trump’s memorandum directs the Secretary of the Interior to analyze these legal pathways for advancing Lumbee recognition.
- Federal recognition grants tribes’ certain governmental autonomy, land protections, and access to federal programs and services, like health care through the Indian Health Service.
DELIVERING ON PROMISE TO SUPPORT RECOGNITION: President Trump promised to support federal recognition of the Lumbee Tribe.

On September 23, 2024, President Trump stated: “Today, I’m officially announcing that, if I am elected in November, I will sign legislation granting the great Lumbee Tribe federal recognition that it deserves.”
MIL OSI USA News –
January 25, 2025

Category: Asia

Interview with Christine Lagarde, President of the ECB, conducted by Eric Albert, Philippe Escande and Béatrice Madeline on 28 October 2024

The title of this panel is “The Future of Finance”. I know this is an issue you have thought a lot about and one that has been a key focus area for the BIS throughout your tenure as General Manager. Why is the topic so important? How should the financial system change?

Let me delve more deeply into the Finternet. What does it involve, concretely?

This all sounds very promising in principle. But can it be delivered? How could one turn the Finternet vision into a reality?

At the same time, cross-border payments can be a controversial topic. For example, I have noted media speculation recently that one of your projects – Project mBridge – could provide the basis for a BRICS initiative to circumvent sanctions. Is that plausible? Can you comment on this?

A strategy for the future

– ‘No experience’ –

– ‘Everyone is afraid’ –

– Nowhere to go –

Updates to this page