NewzIntel.com

Category: Business

  • MIL-OSI Economics: BSTDB Builds Up Partnership with OCN Microinvest S.R.L. to Boost Moldova’s Real Economy and Green Financing

    Source: Black Sea Trade and Development Bank

    Press Release | 24-Sep-2024

    New Credit Line to Support Small Businesses and Green Projects

    To bolster economic activity and promote green financing in Moldova, the Black Sea Trade and Development Bank (BSTDB) has announced a new partnership with OCN Microinvest S.R.L., the leading microfinance company in the country. Under this partnership, BSTDB will provide a credit line of up to EUR 10 million, aimed at enhancing financial access for small businesses and supporting the real economy in Moldova.

    OCN Microinvest S.R.L. will on-lend the funds offered by BSTDB to micro, small, and medium-sized enterprises (MSMEs) to support their activities and growth. A portion of these funds will be specifically allocated for green financing initiatives, including energy and resource efficiency, green energy and low-carbon technologies.

    Signing the loan agreement, Dr. Serhat Köksal, BSTDB President, said: “Developing strategic partnerships with leading financial institutions in our member countries is crucial for fulfilling our mandate, particularly when direct outreach to end users is not feasible. Access to finance for micro, small, and medium enterprises is vital for sustainable and inclusive growth in Moldova. In alignment with our Climate Strategy, we are pleased to see that a portion of our loan will be dedicated to financing green activities, thereby contributing effectively to the decarbonization of the Moldovan economy.”

    Dumitru Svinarenco, CEO of OCN Microinvest SRL: “This new partnership with the Black Sea Trade and Development Bank is a testament to our shared commitment to fostering Moldova’s economic resilience and environmental sustainability. The EUR 10 million credit line will provide a much-needed boost to the country’s MSMEs, helping them to scale and adapt in a challenging economic landscape. Moreover, the focus on green financing aligns perfectly with Microinvest’s strategy to encourage more businesses to embrace energy efficiency and sustainable practices. We are proud to be working with BSTDB to support not only the growth of small businesses but also the broader transition to a greener economy in Moldova.”

    O.C.N. Microinvest S.R.L.  was established in 2003 as a microfinance limited liability company in Moldova. The company has a solid shareholding structure, comprising reputable foreign and local non-profit and developmental financial institutions. The company’s activity focuses on lending to individuals and micro, small and medium size enterprises.

    The Black Sea Trade and Development Bank (BSTDB) is an international financial institution established by Albania, Armenia, Azerbaijan, Bulgaria, Georgia, Greece, Moldova, Romania, Russia, Türkiye, and Ukraine. The BSTDB headquarters are in Thessaloniki, Greece. BSTDB supports economic development and regional cooperation by providing loans, credit lines, equity and guarantees for projects and trade financing in the public and private sectors in its member countries. The authorized capital of the Bank is EUR 3.45 billion. For information on BSTDB, visit www.bstdb.org.

    Contact: Haroula Christodoulou

    Phone: +30 2310 290533

    : @BSTDB

    MIL OSI Economics –

  • MIL-OSI Video: World Bank’s Fund for Low-Income Countries – Press Conference | United Nations

    Source: United Nations (Video News)

    The Prime Minister of Denmark, Mette Frederiksen, and World Bank Group President Ajay Banga briefed reporters today (23 Sep) on the Denmark’s support for the World Bank’s Fund for Low-Income Countries.

    Prime Minister Frederiksen previously announced at the United Nations’ Summit of the Future, that Denmark has pledged approximately $491.7 million to the World Bank’s fund for the poorest countries, making it a 40 per cent increase over the country’s previous contribution.

    Speaking to journalists, Frederiksen reiterated Denmark’s commitment, stating, “you can count on Denmark, both when it comes to the concrete and necessary tasks, but also in supporting the reforms. And I think it’s not only necessary for the countries who are in need of it, but it’s also necessary if we want to stick together as one world.”

    World Bank President Ajay Banga echoed the need for action. He said, “we can, frankly, we must, help to chart a course towards that brighter future,” emphasizing that the starting point lies in supporting initiatives like the International Development Association and leveraging the World Bank’s knowledge.

    https://www.youtube.com/watch?v=j6YVT_R7vXU

    MIL OSI Video –

  • MIL-OSI Europe: Seed capital and (more) customers for Empa spin-off: Solar cells for the Internet of Things

    Source: Switzerland – Federal Administration in English

    Dübendorf, St. Gallen und Thun, 24.09.2024 – Perovskia Solar has won more than ten leading companies from the Internet of Things (IoT) industry as customers and received over two million Swiss francs in seed capital. The multi-award-winning Empa spin-off prints customized solar cells for almost any electronic device. These can be produced cost-effectively – and even work indoors.

    Every person owns an average of seven electronic devices. Hence there are several billion devices in use worldwide – and with the Internet of Things (IoT), the number is growing all the time. These need to be charged regularly, or their batteries need to be replaced. The Empa spin-off Perovskia Solar has therefore specialized in custom-made solar cells for all conceivable electronic devices – and successfully so: It has acquired more than ten leading companies from the Internet of Things (IoT) industry as new customers and has now received over two million Swiss francs from an international coalition of business angels and early-stage funds. “Energy harvesting for IoT devices is a rapidly growing market with a potential of several billion dollars,” said Anand Verma, founder and Chief Executive Officer (CEO) of the Empa spin-off. “Our easy-to-integrate designer solar cells either eliminate the need for batteries or extend their lifespan, opening up the possibility of powering any device with solar energy.”

    Solar cells from the printer

    The multi-award-winning Empa spin-off has launched the first perovskite solar cells on the market that can be used in smartwatches, keyboards and the like. Conventional silicon solar cells are complex and expensive to produce on a customized basis and are inefficient in poor lighting conditions. “We can print innovative perovskite solar cells in any size – and at low cost. With their high efficiency, they can power almost any indoor electronic device in bright home and office lighting,” says Verma.

    “Our energy harvesting technology has been developed over several years at Empa, which has enabled us to launch a market-ready product that powers next-generation devices for industrial and residential applications,” adds Tobias Meyer, founder and Chief Technology Officer (CTO) of Perovskia. Perovskites have excellent properties: They absorb light particularly efficiently and conduct the generated electricity well. Until now, however, perovskite-based solar cells were not stable enough and not durable enough for large-scale use. Anand Verma therefore spent five years at Empa researching printing processes for perovskite solar cells before setting up the company in 2020.

    A new factory and international support

    Perovskia Solar now supplies several international companies with customized solar cells for IoT applications and for consumer electronics devices. The Empa spin-off is now supported by Kickfund from Venture Kick and the venture capital company D&FG Elements as well as an international coalition of business angels led by Nils Hagander and Beda Rohner. “With a market-leading product, Perovskia is ideally positioned to drive the next generation of IoT devices for consumers and industry,” says Hagander, entrepreneur and investor in technology and service companies.

    The Empa spin-off recently set up a factory in Aubonne in the canton of Vaud. One million perovskite elements are to be printed there every year.

    Address for enquiries

    Manuel Martin
    Communications
    Phone +41 58 765 4454
    redaktion@empa.ch

    Publisher

    Federal Laboratory for Materials Testing and Research
    http://www.empa.ch

    MIL OSI Europe News –

  • MIL-OSI Europe: France: EIB and European Commission provide €276 million in support for Métropole Européenne de Lille’s investments in sustainable mobility

    Source: European Investment Bank

    • Métropole Européenne de Lille is receiving a €245 million green loan from the EIB to back its modernisation and urban transport projects.
    • This financing comes together with a €31.5 million grant from the European Commission via the public sector loan facility (PSLF) set up under the European Green Deal’s Just Transition Mechanism (JTM).
    • This joint blended financing support from the EIB and European Commission will unlock additional investment for public entities in the European regions most affected by the energy transition.

    Métropole Européenne de Lille (Lille metropolitan authority) has taken out a €245 million green loan with the European Investment Bank (EIB) to fund its public transport network and cycle routes. It aims to provide 1.2 million local residents with more efficient, affordable and environmentally friendly transport services.

    This project is also benefiting from a €31.5 million European Commission grant under a blended financing structure made possible by the public sector loan facility (PSLF), which is one of the key pillars of the Just Transition Mechanism (JTM) set up under the European Green Deal. The European Climate, Infrastructure and Environment Executive Agency (CINEA) will manage this grant and monitor the implementation of the project.

    The Mel in Green Mobility project will provide funding for various segments of Métropole Européenne de Lille’s public transport infrastructure. The first part of the project covers the modernisation of the public transport fleet, including the renewal of 30 trams and 42 buses with new clean vehicles. It also features investments in platforms, depots and other related facilities. Lastly, the project supports the Métropole’s ambitious cycling plan including 220 km of additional infrastructure between 2023 and 2027 to improve safety for cyclists, the financing of a new bus rapid transit line, and the construction of a multimodal interchange hub.

    It thereby aims to accelerate changes in user behaviour by developing a more efficient and sustainable mobility service, improving public transport accessibility and broadening soft mobility options. Once complete, the project will have improved tram and bus network performance, promoted intermodality (reduction in the share of private vehicles from 56% in 2023 to 40% in 2035) and diversified public transport in the area. This increased network efficiency will ultimately result in substantial time savings on the 410 000 daily journeys made by users, fewer traffic jams and better access to the Métropole Européenne de Lille.

    The regions most affected by the energy transition (like Hauts-de-France) are identified in the territorial just transition plans. These plans are drawn up by each EU Member State and outline the challenges to be addressed in each just transition region, together with the development needs and targets to be reached by 2030.

    Background information

    About the EIB

    The European Investment Bank (EIB) is the long-term lending institution of the European Union, owned by its 27 Member States. It provides loans to the public and private sectors for sound investment contributing to EU policy goals. In 2023, France received more EIB financing for the energy and green transition than any other country, with an overall investment of €6.9 billion for renewable energy, clean mobility and energy efficiency. A partner of regional authorities, last year the EIB directed €2.3 billion in funding to rail and urban public transport and soft mobility, making it the number one sector in terms of EIB investment in France over the year.

    About the European Commission’s Just Transition Mechanism

    The public sector loan facility (PSLF) is the third pillar of the Just Transition Mechanism (JTM) – a key tool of the European Green Deal investment plan to make sure that no one and no region is left behind in the transition to a climate-neutral economy.

    The public sector loan facility combines loans from the EIB (up to around €6 billion to €8 billion overall) and grants from the European Commission (up to €1.3 billion overall). The combined support is designed to mobilise additional investment for public sector entities in the European regions most affected by the climate and energy transition (like Hauts-de-France), as identified in the national territorial just transition plans, to meet their development needs as part of the transition to a climate-neutral economy. These plans are developed by each EU Member State and set out the challenges in each just transition region, along with the development needs and objectives to be met by 2030.

    The blend of the EIB loan and the European Commission grant will facilitate the financing of projects that do not generate sufficient revenue streams to cover their investment costs. The implementation of the public sector loan facility is managed by the European Climate, Infrastructure and Environment Executive Agency (CINEA).

    About Métropole Européenne de Lille

    Métropole Européenne de Lille works every day to serve its 95 member municipalities and 1.2 million residents. It covers the key areas of transport, housing, economy, public space and roadways, urban planning, urban policy, water, wastewater, household waste, disability access, nature and living environment, sport, tourism and crematoria. Chaired by Damien Castelain since 18 April 2014, the Metropolitan Council is composed of 184 members elected by direct universal suffrage for a six-year mandate.

    MIL OSI Europe News –

  • MIL-OSI Banking: Web tracking report: who monitored users’ online activities in 2023–2024 the most

    Source: Securelist – Kaspersky

    Headline: Web tracking report: who monitored users’ online activities in 2023–2024 the most

    Web tracking has become a pervasive aspect of our online experience. Whether we’re browsing social media, playing video games, shopping for products, or simply reading news articles, trackers are silently monitoring our online behavior, fueling the ceaseless hum of countless data centers worldwide. In this article, we’re going to explore various types of web trackers and present a detailed annual report that dissects their geographical distribution and organizational affiliations.

    What is web tracking?

    Web tracking is the practice of collecting, storing, and analyzing data about users’ online behavior. This data can include demographics, website visits, time spent on sites, and interactions like clicks, scrolls, and mouse pointer hovers that can be leveraged for creating heatmaps, etc. The primary goal of web tracking is to gain valuable insights into user behavior, preferences, and interests. This information allows businesses to personalize experiences, improve user engagement, target advertising more efficiently, and measure the performance of their online services.

    Types of web tracking

    Web tracking can be classified into several categories based on the methods and technologies employed:

    Cookies

    Cookies are small text files that websites place on a user’s device to store information about their visits, such as login credentials, preferences, and tracking identifiers. Despite a commendable commitment to enhance online privacy, primarily Google’s Privacy Sandbox project, Kaspersky experts anticipate that third-party cookies will persist for long time yet. In fact, even as we were processing the data to write this report, Antonio Chavez, Vice President of Privacy Sandbox, announced an intention to reconsider the plan of third-party cookies deprecation.

    Web beacons

    Also known as web bugs or tracking pixels, web beacons are transparent images — typically lines or 1×1 pixels — that send a lot of tracking data, usually via a query string. When a user accesses the content, the web beacon sends data back to the server. This allows businesses to track user interactions without requiring additional action from the user.

    Social media tracking

    Many websites embed social media buttons that help users to share content easily. However, these innocuous buttons often come with tracking capabilities. Even if the user does not engage with the social media site directly, these platforms still collect data on their online behavior.

    Web analytics

    Services like Google Analytics offer a deep dive into user engagement on websites. These tools track a wide range of metrics, from page views and bounce rates to conversion rates, empowering businesses to understand user behavior and optimize website performance.

    Fingerprinting

    Device fingerprinting is a tracking technique that identifies users by collecting unique information about their device and browser settings. This includes details like screen resolution, operating system, installed plugins, and browser language. This creates a unique “fingerprint” that can identify the user across different websites, even without cookies.

    Statistics collection principles

    For this report, we used anonymous statistics collected from July 2023 to June 2024 inclusive, by the Do Not Track (DNT) component, which prevents the loading of tracking elements that track user actions on websites. The statistics consist of anonymized data provided by users voluntarily.

    Even the most experienced users often make the mistake to confuse DNT features with the built-in “incognito mode” offered by all leading web browsers. Incognito mode only ensures that all your data like browsing history and cookies is cleared after you close the private window. However, it does not prevent websites from tracking your activities within that session. It also does not make you anonymous to your internet service provider (ISP) or protect you from adware or spyware that might be tracking your online behavior, cryptominers, or worse.

    Over the year, the DNT component was triggered 38,725,551,855 times. We have compiled a list of 25 tracking services that DNT detected most frequently across nine regions and certain individual countries. 100% represents the total number of DNT detections triggered by all 25 tracking services.

    The DNT component is included in all Kaspersky security solutions and is disabled by default.

    Global tracker giants

    Eight tracking systems appeared in almost all of the TOP 25 lists for the regions we studied. Four of these belong to Google. Besides these, we will look at two other tracking systems which were also widely represented across almost all regions: New Relic and Microsoft.

    In addition, two other systems – Criteo and Facebook Custom Audiences – also made it into the TOP 25 for all regions, but we’ve already covered them in previous articles.

    Google

    Google has several tracking systems responsible for various but often overlapping areas of marketing, advertising, and other fields involving the collection, analysis, and interpretation of user data.

    Google Display & Video 360 is a tool for managing advertising campaigns. Its trackers monitor advertising-related activities (clicks, technical metrics of ads, and so on). This system had the largest share among the TOP 25 tracking systems in Asia. In South Asia, it accounted for 25.47% of DNT component triggers, and in East Asia – 24.45%. The smallest share of this tracking system was in the CIS (Commonwealth of Independent States) – just 8.38%, as this region features a strong presence of local tracking systems, which we will discuss later.

    The share of DNT triggers for Google Display & Video 360 trackers in each region, July 2021 — June 2022, and July 2023 — June 2024 (download)

    Compared to our previous report, covering the period from August 2021 to August 2022, the presence of Google Display & Video 360 slightly increased in East Asia and the CIS, while it decreased in other regions.

    The second frequently encountered tracking system is Google Analytics. This system analyzes user behavior and tracks keywords to enhance website traffic and efficiency. Its largest share is in Latin America – 14.89%, followed by the Middle East at 14.12%. The lowest share of these trackers in our statistics is in North America – 8.42%.

    The share of DNT triggers for Google Analytics trackers in each region, July 2021 — June 2022, and July 2023 — June 2024 (download)

    Just like the previous system, Google Analytics slightly increased its share in East Asia (up to 13.83%) and the CIS (9.36%), while decreasing in other regions.

    Trackers from Google AdSense, like Google Display & Video 360, monitor advertising activity and provide reports to website owners. This tracking system has its largest share in the Middle East (6.91%) and South Asia (6.85%). The smallest shares are in Oceania (3.76%) and the CIS (2.30%).

    The share of DNT triggers for Google AdSense trackers in each region, July 2021 — June 2022, and July 2023 — June 2024 (download)

    In almost all regions, the share for this tracking system increased. It’s worth noting that while some of these tracking systems reduced their presence in certain regions and others increased, they all belong to the same company – Google. Thus, user tracking by Google remains extensive, far exceeding other companies.

    Another significant Google tracking system is YouTube Analytics. It gathers information about video views and audience engagement, measures engagement levels, and more. YouTube Analytics holds the largest share in South Asia (12.71%) and the Middle East (12.30%), and the smallest in Europe (5.65%) and North America (4.56%).

    The share of DNT triggers for YouTube Analytics trackers in each region, July 2021 — June 2022, and July 2023 — June 2024 (download)

    Compared to other Google tracking systems, YouTube Analytics has notably increased its share in all regions.

    New Relic

    The share of DNT triggers for New Relic trackers in each region, July 2023 — June 2024 (download)

    The San Francisco-based New Relic appeared for the first time in our list of global giants present in all regions. Its activity is focused on web tracking for subsequent performance analysis and the detection of website and application errors. The largest share of this tracking system is in Oceania – 15.79%, and the smallest in the CIS – 1.96%.

    Bing and Microsoft Corporation

    The share of DNT triggers for Microsoft Corporation trackers in each region, July 2023 — June 2024 (download)

    Microsoft trackers collect information about user interactions with its online services and other sites. This data is used to optimize service performance, find errors, and more. While this tracking system has a relatively small share, it is present in all regional TOP 25 lists. Microsoft Corporation largest share is in Latin America – 3.38%, and the smallest in the CIS – 0.68%.

    We studied Bing as a separate tracking system, although it is actually part of Microsoft.

    The share of DNT triggers for Bing trackers in each region, July 2023 — June 2024 (download)

    Bing is a full-fledged search engine. Its trackers collect information on search queries, location, and user preferences to display relevant ads – classic search engine functionality. It can be assumed that the share of Bing’s tracking system in various regions indicates the popularity of the search engine itself. A notable share of Bing trackers among the TOP 25 was in Africa – 8.46%, and the smallest in the CIS – 0.77%.

    Regional statistics

    Europe

    Distribution of the TOP 25 tracking systems in Europe, July 2023 — June 2024 (download)

    In the European region, Google tracking systems occupy the top two positions in the TOP 25. Google Display & Video 360 accounts for 17.27%, while Google Analytics holds 11.93%. In third place, with a 9.13% share, is Amazon Technologies. Fourth is Criteo with 6.80%, followed by YouTube Analytics (5.65%), Bing (5.33%), and Google AdSense (5.23%).

    In addition to the tracking systems that are in the TOP 25 of other regions, there is one company in the European ranking not found anywhere else: Improve Digital, a Dutch company that deals with advertising and marketing projects. It closes the TOP 25 with a small share of 1.22%. Next, we’ll look at regions and even countries where the tracking system rankings contain far more names not found in any other region.

    Africa

    Distribution of the TOP 25 tracking systems in Africa, July 2023 — June 2024 (download)

    In Africa, Google trackers occupy the top three spots, with Google Display & Video 360 leading at 19.03%. By the way, only one region and one country among those we examined do not have Google tracking systems in the top position; in nearly all other regions, Google Display & Video 360 leads the rankings, occasionally being surpassed by Google Analytics. In second and third place in the African region are Google Analytics (12.94%) and YouTube Analytics (10.25%). Following them are the aforementioned New Relic (8.55%), Bing (8.46%), Google AdSense (5.11%), Criteo (3.40%), and Xandr (3.17%) – a company owned by Microsoft that focuses on advertising and analytics. The African TOP 25 doesn’t contain any unique tracking systems that can’t be found in other regions.

    Middle East

    Distribution of the TOP 25 tracking systems in the Middle East (excluding Iran), July 2023 — June 2024 (download)

    The top four most widespread tracking systems in the Middle East belong to Google: Google Display & Video 360 (22.92%), Google Analytics (14.12%), YouTube Analytics (12.30%), and Google AdSense (6.91%). Next are Criteo (6.55%), New Relic (4.42%), Bing (2.66%), and Amazon Technologies (2.37%).

    In 19th place, with a small share of 1.42%, are trackers from the Turkish advertising company Virgul.com, unique to this region.

    Distribution of the TOP 25 tracking systems in Iran, July 2023 — June 2024 (download)

    In the Middle East, there is one country worth considering separately due to the significant number of tracking systems that are not found in other rankings – Iran. Despite the presence of numerous local trackers, Google still takes the top spot. However, not with Google Display & Video 360, which ranks third at 11.35%, but rather with Google Analytics at 35.78%, the highest for this system across all the regions and countries we reviewed. In second place are Microsoft Corporation trackers (12.08%), and in fourth is Yandex.Metrica (4.90%). The latter is a division of the Russian company Yandex, responsible for user data collection and analysis for advertising and marketing services, such as analyzing audiences and their behavior. Following Yandex is the local Tehran-based company Yektan (4.52%), which collects and analyzes data for advertising services. Another local Iranian company in the TOP 25 is the internet advertising agency SabaVision (1.55%).

    In addition to these domestic trackers, Iran’s TOP 25 also includes some that appear only in this country but which are not Iranian in origin. These include Tradingview.com (1.84%), an American company collecting telemetry, Amplitude (1.46%), a digital analytics company, Heap (1.18%), a product optimization platform, and Webklipper Technologies (0.96%), which specializes in internet marketing.

    Latin America

    Distribution of the TOP 25 tracking systems in Latin America, July 2023 — June 2024 (download)

    The TOP 25 tracking systems most frequently detected in Latin America contain no local companies. Google Display & Video 360 ranks first with 20.13%, followed by Google Analytics (14.89%) and YouTube Analytics (8.89%). The TOP 25 is completed by PubMatic (1.08%), a company providing software for internet advertising. While it appears in many TOP 25 rankings, its share is minimal.

    North America

    Distribution of the TOP 25 tracking systems in North America, July 2023 — June 2024 (download)

    In North America, Google Display & Video 360 leads the TOP 25 with a significant margin, holding 16.84%. Amazon Technologies comes second with 9.08%. Interestingly, Amazon Technologies trackers appear in the TOP 3 only in three regions or countries we considered: Europe, North America, and Japan. In third place is Google Analytics with 8.42%, which is the lowest share for this system in any of the regions examined. New Relic comes in fourth with 7.62%.

    The North American TOP 25 includes two tracking systems not seen in other regions: The Trade Desk (1.79%) and Quantum Metric (1.76%), both American companies providing platforms for digital analytics and advertising.

    Oceania

    Distribution of the TOP 25 tracking systems in Oceania, July 2023 — June 2024 (download)

    In Oceania, Google Display & Video 360 (18.43%) ranks first, and New Relic, with a 15.79% share, takes second, marking the highest percentage for this tracking system among all the regions and countries examined. Google Analytics is in third place with 12.00%. In addition to the trackers found in most regions, Oceania features Oracle Moat Measurement (2.10%), Chartbeat (1.11%), and Nielsen (1.03%), which appear only in this region’s ranking. Chartbeat is an American company that collects and analyzes user data for media companies to improve monetization. Nielsen is an American company specializing in market measurement, collecting and analyzing user data for this purpose. Oracle Moat Measurement is the advertising division of Oracle, which will cease operations on September 30, 2024. Oracle itself will exit the advertising market, so this is likely the last time we’ll see this tracking system in our research.

    The CIS

    Distribution of the TOP 25 tracking systems in the CIS (excluding Russia), July 2023 — June 2024 (download)

    The CIS region is the most unusual in terms of the distribution of the TOP 25 tracking systems. This is the only region where Google trackers do not occupy the top two spots, ranking third (Google Analytics) with a relatively small share of 9.30% or lower. The first place is held by Yandex.Metrica trackers with 26.19%. As mentioned earlier, Yandex system not only made the TOP 25 in the CIS but was also seen in the Iranian ranking (fourth place at 4.90%), the Middle East (2.30%), and of course, Russia, where it holds first place with a 26.43% share.

    In second place in the CIS ranking is the tracking system from Mail.ru (owned by the VK corporation) with a share of 20.76%. In addition to these two giants in the CIS tracking market, several other local tracking systems also made it into the TOP 25. Right after the three Google systems – Google Analytics (9.30%), YouTube Analytics (8.34%), and Google Display & Video 360 (8.33%) – the tracking system of the local company Mediascope had 2.82%. Mediascope focuses on audience preference and behavior research. Also included in the TOP 25 of the CIS are developments from the following Russian companies: Adriver (2.75%), Buzzoola (2.02%), AdFox, owned by Yandex (1.69%), Rambler Internet Holdings (1.46%), Sape.ru (1.42%), Artificial Computation Intelligence (1.33%), Between Digital (1.01%), Otm (0.99%), Adx.com.ru (0.93%). In total, Russian tracking systems account for 63.35% of the overall CIS ranking.

    Distribution of TOP 25 tracking systems in Russia, July 2023 — June 2024 (download)

    In Russia, the TOP 5 is occupied by domestic tracking systems: Yandex.Metrica (26.43%), Mail.Ru (16.60%), Mediascope (6.16%), Sape.ru (4.89%) and Artificial Computation Intelligence (4.80%). Google AdSense only ranks sixth with a 4.50% share. In addition to the trackers seen in the CIS TOP 25, the Russian ranking features an even larger number of Russian tracking services: VK (2.09%), Uniontraff (1.79%), Bidvol (1.16%), Teleport Media (0.97%), Avito (0.87%), MoeVideo (0.79%), GetIntent (0.62%), AmberData (0.59%), Kimberlite.io (0.59%) and Bumlam.com (0.56%).

    The share of Russian tracking systems in the TOP 25 amounts to 87.50%. This makes Russia the only region where the overwhelming majority of the TOP 25 tracking systems are local players.

    East Asia

    Distribution of the TOP 25 tracking systems in East Asia (excluding Japan and South Korea), July 2023 — June 2024 (download)

    The top four positions in East Asia are occupied by Google tracking systems. Google Display & Video 360 is in first place with a share of 24.45%, followed by Google Analytics (13.83%), YouTube Analytics (11.66%), and Google AdSense (6.61%). Unlike other regions, the tracking system of the major Chinese IT company Baidu made the TOP 25 in East Asia with a share of 1.87%.

    There are also countries in the region that are worth considering separately, as they feature not only global tracking systems but also local players.

    Distribution of the TOP 25 tracking systems in Japan, July 2023 — June 2024 (download)

    In addition to global companies whose tracking services are observed around the world, in Japan there are trackers only popular within the country. The Yahoo! Japan web portal is widely used, with its trackers accounting for 4.70%. Yahoo Advertising, the digital advertising division of Yahoo, holds a share of 2.35%.

    Local Japanese tracking systems are also well-represented in Japan’s TOP 25, including Geniee (2.77%), Adsp from the Japanese company SMN Corporation (1.35%), MicroAd (1.18%), Supership (1.05%), and LINE Corporation (1.04%). The total share of Japanese companies in the TOP 25 tracking systems is 12.08%.

    Distribution of the TOP 25 tracking systems in South Korea, July 2023 — June 2024 (download)

    The TOP 25 in South Korea also differs from other global rankings, as it includes local Korean trackers. For example, the tracking systems of the highly popular Korean online platform NAVER rank fifth with 7.75%. Another major local player, Kakao, appears twice in the rankings: Kakao trackers are in ninth place with a 1.83% share, while trackers from the web portal Daum (owned by Kakao Corporation) hold a 1.17% share.

    South Asia

    Distribution of the TOP 25 tracking systems in South Asia, July 2023 — June 2024 (download)

    The last region under review is South Asia. The ranking here is fairly typical in terms of the global statistics. Google Display & Video 360 takes first place with 25.47%, followed by Google Analytics (13.97%), YouTube Analytics (12.71%) and Google AdSense (6.85%). Only three American trackers made it into the TOP 25 in South Asia: Sovrn (1.24%), Mux (1.10%) and LinkedIn (1.02%).

    Takeaways

    Google remains the undisputed leader in collecting, analyzing, and processing user data globally. However, in regions like South Korea, Japan, and Russia – where local internet services are particularly advanced – regional tracking systems not only make it into the TOP 25 but can even prevail over global ones. In some cases, such as in the CIS, local trackers can even take over entire regions. On one hand, looking at the TOP 25, it’s clear that user data collection and analysis is not limited to just a few large companies – and the more companies store and process our data, the higher the risk of data breaches. On the other hand, the list of companies is still finite, and the majority of tracking is handled by IT giants, who are motivated to protect user data to avoid reputational damage. The presence of local trackers is undoubtedly a sign of technological development in a region or country. However, the spread of local tracking systems increases the risk of data leaks and can weaken the user’s sense of control over who collects their data. To prevent unwanted data collection by various companies and, in turn, prevent data leaks, we recommend activating the Do Not Track (DNT) plugin.

    MIL OSI Global Banks –

  • MIL-OSI Europe: WHO and multilateral development banks kick off US$ 1.5 billion primary health financing platform with new funds and launch of first investment plans in 15 countries

    Source: European Investment Bank

    Execution is starting under the new Health Impact Investment Platform on the first country health investment plans turning original commitment into operational reality. The landmark partnership between Multilateral Development Banks (MDBs), the World Health Organization (WHO) and low- and middle-income countries (LMICs) is addressing the critical need for coordinated efforts to strengthen primary healthcare (PHC) in vulnerable and underserved communities to build resilience against pandemic threats like mpox and the climate crisis.

    At the high-level roundtable meeting in New York on the margins of the UN Summit of the Future in New York today, new funding was signed, and it was agreed that the partners will sit down and start identifying needs and planning health care improvements in 15 countries*.

    The roundtable was attended by the partnership’s three founding MDBs – the African Development Bank (AfDB), the European Investment Bank (EIB), and the Islamic Development Bank (IDB) –,WHO and the heads of state, as well as finance and health ministers from Djibouti, Egypt and Ethiopia. The Asian Development Bank also attended the high-level meeting and announced their intention to join the Health Impact Investment Platform in order to expand the initiative into the regions where it operates.

    The EIB and WHO signed an initial contribution of € 10 million to kick start the implementation of these investment plans. The Islamic Development Bank and the African Development Bank are finalizing their contributions for the same amount that will be signed in the near future.

    The platform is a key part of an effort to unlock € 1.5 billion in concessional loans and grants to expand and improve primary health-care services in low- and middle-income countries, especially in the most vulnerable communities. The investment plans now being developed in these 15 countries, as a phase 1, are expected to make up a significant proportion of that financing effort.

    The platform aims to work in close partnership with governments to develop national health strategies focused on primary health care and on prioritizing investment opportunities that meet national health needs. Today’s kick-off comes one year after the platform was announced during the Summit for a New Global Financing Pact in Paris.

    Dr Ibrahima Sy, Minister of Health, Republic of Senegal said, “it’s important to bring in private sector, local communities and different forms of financing to drive health progress. The involvement of WHO, multilateral development banks and countries is critical to guiding the investments from this Platform to deliver primary health care on the ground and develop local vaccine manufacturing capacity.” 

    Dr Jane Ruth Aceng, Minister of Health of Uganda said, “I congratulate you for coming up with this very important platform. All our issues are actually based at primary health care level, whether it comes to disease outbreaks, whether it comes to health access, everything is at the primary health care level, and our diseases start there and end there.”

    “Primary health care is the most equitable, cost-effective and inclusive way to improve health and well-being, helping to keep people healthy, prevent diseases, and detect outbreaks at their earliest stage,” said Dr Tedros Adhanom Ghebreyesus, WHO Director-General. “The Health Impact Investment Platform will be a vital source of new financing to build climate and crisis-resilient primary health care in some of the countries that need it most. WHO thanks the multilateral development banks for their partnership, and we are committed to working closely with the countries to put these funds to work and start making a difference in the communities we serve.”

    Nadia Calviño, President of the European Investment Bank, said: “One year ago, we launched the Health Impact Investment Platform, and today we are taking the next steps with our contribution to help countries develop their tailored investment plans. Supporting primary health-care services is the foundation of strong communities. Working closely with fellow Multilateral Development Banks and partner countries, guided by the expertise of the World Health Organization, we are making a difference.”

    “The health security of the world is only as strong as its weakest part, and the new funds announced today will help countries improve primary healthcare, which is critical to stopping disease outbreaks in their tracks,” said Jutta Urpilainen, European Commissioner for International Partnerships. “In addition to the funds, the Platform will strengthen partnerships between countries and funders to ensure funds are effectively invested.”

    Before the COVID-19 pandemic, WHO estimated that to reach the health-related Sustainable Development Goals, low- and low-middle income countries needed to increase their health spending significantly and require an additional US$ 371 billion annually combined by 2030. This funding would allow populations to access health services, contribute to building new facilities and train and place health workers where they need to be. It has also been estimated that preparing for future pandemics will require investment in the order of US$ 31.1 billion annually. Approximately one third of that total would have to come from international financing.

    The new Platform builds on experience gained through cooperation between countries, multilateral organizations and development banks that proved fruitful during the pandemic. For example, WHO, the EIB and the European Commission supported Angola, Ethiopia and Rwanda in strengthening their health systems. Initially launched as stand-alone programmes or as part of the countries’ response to COVID-19, these interventions mobilized technical assistance, grants and investments with advantageous terms to build up or implement primary health care related interventions.

    *15 countries identified as part of phase one of the Health Impact Investment Platform are:

    • Burundi
    • Central African Republic 
    • Comoros
    • Djibouti
    • Egypt
    • Ethiopia 
    • Gambia
    • Guinea Bissau 
    • Jordan
    • Maldives
    • Morocco
    • Senegal
    • South Sudan 
    • Tunisia 
    • Zambia 

    Background information

    About the World Health Organization

    The World Health Organization (WHO) is the United Nations’ specialized agency for health. It is an inter-governmental organization and works in collaboration with its Member States usually through the Ministries of Health. The World Health Organization is responsible for providing leadership on global health matters, shaping the health research agenda, setting norms and standards, articulating evidence-based policy options, providing technical support to countries and monitoring and assessing health trends.

    Media contact: mediainquiries@who.int  

    About the African Development Bank Group

    The African Development Bank Group (AfDB) is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF). On the ground in 37 African countries with an external office in Japan, the AfDB contributes to the economic development and the social progress of its 54 regional member states.

    About the European Investment Bank

    The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It finances sound investment contributing to EU policy goals. The EIB’s activities focus on the following priority areas: climate and environment, development, innovation and skills, small and medium-sized businesses, infrastructure, and cohesion. The EIB works closely with other institutions and has provided total financing of more than € 42 billion for healthcare-related projects around the world since it started investing in the sector in 1997.  

    MIL OSI Europe News –

  • MIL-OSI Banking: ADB President Reaffirms Strong Partnership with Bhutan during Official Visit

    Source: Asia Development Bank

    THIMPHU, BHUTAN (24 September 2024) — Asian Development Bank (ADB) President Masatsugu Asakawa reaffirmed ADB’s commitment to supporting Bhutan’s development goals and praised the country’s recent achievements during a 3-day official visit to the country.

    “Bhutan has made significant strides in reducing poverty and improving education and health services, and its recent graduation from least developed country status is commendable,” said Mr. Asakawa. “As a trusted partner for over 4 decades, ADB remains committed to helping Bhutan build on its progress and achieve sustainable development, and the new country strategy provides the road map.”

    During his visit, Mr. Asakawa met with Finance Minister and ADB Governor Lekey Dorji. The discussions centered on ADB’s support for policy reforms and institutional strengthening, climate and disaster resilient infrastructure development, and human capital development. After the meeting, Mr. Asakawa witnessed the signing by ADB and the Royal Government of Bhutan for the $30 million Distributed Solar for Public Infrastructure Project.

    Mr. Asakawa will also visit the Babena satellite clinic in Thimphu, one of five clinics built with ADB financing to bring affordable health care closer to Bhutanese communities and reduce pressure on the main tertiary hospital. He will meet with students at the Samthang Technical Training Institute in Wangdue Phodrang, an institution upgraded with ADB assistance to enhance the employability of secondary school and TVET graduates.

    Highlighting the pressing issue of climate change, Mr. Asakawa will visit rural areas surrounded by the Himalayan Mountains to draw attention to accelerating glacial melt in the region. “Climate action is a top priority for ADB,” he stated. “The rapid glacial melt driven by climate change poses significant risks not just for Bhutan but for the entire region. ADB is launching bold new initiatives that will build resilience in vulnerable areas like the Hindu Kush Himalayas.”

    Mr. Asakawa’s visit follows the recent launch of ADB’s new Bhutan country partnership strategy (CPS). The CPS for 2024–2028 aims to reinforce Bhutan’s development efforts by strengthening public sector management, enabling private sector development, building climate-adaptive and resilient infrastructure, and enhancing human capital development to increase youth employability. The strategy aligns with Bhutan’s 13th Five-Year Plan.

    ADB is committed to achieving a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty. Established in 1966, it is owned by 68 members—49 from the region.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Derville Rowland: Change and challenges – responding to uncertainty, transforming for the future and driving innovation

    Source: Bank for International Settlements

    Good afternoon. Many thanks to AFME for the invitation to speak at this conference again this year. Today I will focus on the regulatory outlook for financial services in Europe and Ireland in the context of a rapidly changing, more uncertain and ever challenging world.

    The old adage, attributed to Harold Wilson, that “a week is a long time in politics” is equally applicable in many walks of life – but it has often been the case in financial markets. The last period has been no different and week to week we have seen things change rapidly. At the start of August we saw a turbulent trading period following fears of an imminent US recession. More recently, we have seen markets respond to the Fed’s half-point interest rate reduction and the Bank of England and Bank of Japan hold rates steady.  While conditions have improved since, significant downside risks remain.

    In particular, geo-political events remain potential sources of fragility over the coming months, including uncertainty around electoral outcomes, continuing conflict in the middle-east and Ukraine, turbulent economic conditions. Closely linked to the issue of geopolitical tensions, there is now heightened focus on the centrality of cyber risk and operational resilience. The Crowdstrike cyber incident in July, while contained early and brought under control, caused significant disruption and highlighted the fragilities in the system. Cyber risk, and the link to geopolitical tensions, has been flagged by ESMA, EBA and EIOPA and are increasingly recognised as a significant and likely risk by regulated firms. Positively, we have also seen the European Supervisory Authorities (ESAs) and the EU Agency for Cybersecurity announce the signing of a multilateral MoU to strengthen their cooperation and information exchange on cybersecurity risk in the financial sector.  In light of heightened cyber risks, the importance of operational resilience remains paramount. The implementation of the Digital Operational Resilience Act (DORA) remains a key focus for regulators and firms. Digital operational resilience is a fundamental underpinning of a resilient and well-functioning financial system supporting the economy and serving the needs of citizens.  That said, ensuring proportionality has been a central focus of the work to develop the DORA framework. This is an important requirement of all regulation, but is certainly the case with DORA given it is cross-sectoral and applies to almost all financial firms. As implementation work progresses, it will be important for authorities to be mindful of ensuring that smaller firms, in particular, are not disproportionately burdened by the same requirements as larger institutions.

    In Europe, we have seen significant institutional change as European Commission President Ursula von der Leyen takes up her second term in office and the process is underway to appoint new Commissioners. The broad parameters of the forthcoming European legislative and regulatory agenda have been signalled.  International competitiveness remains at the centre of the Commission’s programme, as we have seen from the recent Draghi and Letta reports. It seems likely that there will be a continued focus on reducing and simplifying existing EU law. That is an approach which all policy makers, including national authorities and the European Supervisory Authorities, should be mindful of. However, effective regulation which safeguards consumers, fosters market integrity and supports resilience is key to supporting financial stability. Financial stability and the resilience of the financial sector are prerequisites for sustainable economic growth and promoting competitiveness. In a drive to streamline regulation we must not lose sight of this. It is important to retain the outcomes achieved via legislative and regulatory initiatives enacted since the great financial crisis.

    At the centre of policy makers thinking is the need to finance the EU’s ambitious policy agenda. A significant challenge facing Europe is to secure the public and private finance for the economic and other programmes, including the digital transformation and green deal. At the centre of this is the concept of a Savings and Investment Union, building on the progress made under the Capital Markets Union agenda. In April, Commission President Ursula von der Leyen summed this up by saying that “European start-ups should not need to look at the US or Asia to finance their expansion. They must find what they need to grow right here in Europe. We need a deep and liquid capital market. And we need a competition policy that supports companies to scale up. Europe must be the home of opportunity and innovation.”

    There is much still to determine – including the level of ambition for this Savings Union and whether it should be a top-down exercise or if the lead should be taken at a Member State level.  But I suspect, like most things, the answer is likely somewhere in the middle.  While details remain to be worked out, the Letta and Draghi reports likely set out the broad roadmap for how this may be pursued. That said, there will be a need to radically prioritise. Implementing the Letta report alone would require a number of new legislative proposals, in addition to legislative reviews already committed to and implementation work that is required following the last Commission term.

    As the Draghi report outlines, Europe must refocus its collective efforts on closing the innovation gap with the US and China, especially in advanced technologies. This is important for many reasons, including that faster innovation will, in turn, help raise the EU’s productivity growth, leading to stronger growth in household incomes and stronger domestic demand. At the Central Bank of Ireland, we recognise the many potential benefits and opportunities that new technologies bring to financial services and consumers in Ireland and in Europe. It is important that these benefits can be realised, whilst also ensuring that the risks are well understood and managed. Regulation plays a crucial role in the safe, and therefore enduring, adoption of innovation into the system.

    Innovation has brought in new entrants, new products and new ways of serving customers and the economy. As a result, technological innovation continues to be a focus for the Central Bank. This is one of the reasons why we have enhanced our innovation facilities – with the establishment of an innovation sandbox programme which is due to commence for the first time later this year  – so that we can continue to engage, learn and develop a deeper understanding of the ecosystem, the opportunities, the benefits and the risks. Our goal is not to remain stagnant but to evolve and iterate so that we continue to regulate and supervise effectively.

    Recent years have seen tremendous innovations in financial services. Amongst the most notable have been the development of blockchain-based technologies. We can see the many areas where the blockchain has significant potential to bring about positive change, even transformation, in how we do things. Whether this be tokenisation of investment products or improvements in post-trade infrastructure and interoperability, there are important positive stories to tell.

    The European Commission’s 2020 digital finance package has set Europe up well to take advantage of these developments. The package reflected the EU’s ambition to embrace a digital transition, to help modernise the European economy across sectors, and to turn Europe into a global digital player. Almost 4 years later, we are about to implement the Markets in Crypto-Asset Regulation, or MiCAR.

    This is an important step forward in the regulation of crypto activities in Europe while also leading the way on the regulation of the crypto sector globally.  The potential for crypto and blockchain to build financial inclusivity or democratise finance has long been a theme of discussion in the sector. Crypto enthusiasts speak readily to how crypto and blockchain technologies, paired with global internet access, can provide easy and immediate access to people across the world to financial services and achieve a level of financial inclusivity that the traditional financial services cannot. While this is an exciting prospect, it cannot be achieved without guardrails. For the first time, MiCAR will introduce a harmonised regulatory framework for the sector that introduces prudential and conduct obligations for issuers of e-money tokens, asset-referenced tokens, and for crypto-asset service providers. There are also obligations for offers to the public of crypto-assets other than asset-referenced tokens or e-money tokens.

    There are two priorities I would signal with respect to MiCAR implementation. Firstly, we are working closely with our EU Peers and the ESAs to ensure the necessary coordination and consistency across Europe. The ESAs are, correctly, focused on driving a convergent approach to the implementation of MiCAR in national authorities authorisation and supervision processes. We see this as highly important work. MiCAR, being a first attempt at regulation in this area, is an important opportunity to avoid divergent approaches emerging in different jurisdictions.

    Secondly, over recent years, we have been working to continually improve our authorisation process. Through engagement with industry, other public bodies and applicants, we have sought to better explain our expectations, resulting in increased clarity and predictability. Better risk assessment, better communication and better supervisory outcomes have been the output of that work. We have produced new publications, enhanced our internal processes and responded to the changes in the authorisation landscape, including the increase in the number of complex applications. Under MiCAR, you can expect our approach of continuous improvement to continue.

    Innovation and new technologies can play an increasingly important role in facilitating retail investors participating in capital markets. As we shortly approach IOSCO’s World Investor Week, which is a global campaign to raise awareness of the importance of investor education and protection, it is timely for regulatory authorities and policy makers to take stock and redouble our efforts to support investor education, investor protection and financial literacy.

    Protecting consumers is at the heart of what we do at the Central Bank. We know that consumers who are well-informed and understand financial products and services are better placed to make good financial decisions and to look after their interests. These consumers are less likely to be vulnerable to harm from firms that are not securing their interests, and they are less vulnerable to frauds and scams. This is why high levels of financial literacy empower consumers to make effective and informed choices to safeguard their financial well-being. Irish authorities are currently in the process of developing a national Financial Literacy Strategy for Ireland, something which we at the Central Bank strongly support.

    Ireland’s financial sector has an important role to play in supporting the Savings and Investment Union and providing opportunities for retail investors to participate in capital markets. The sector has demonstrated high levels of resilience while continuing provide critical services to households and business in Ireland and abroad. As with the European economy as a whole, over the last decade, the Irish financial services sector has also continued evolve, in terms of its size, complexity and international connectedness. These developments are, of course, a positive for Ireland, and positive for their contribution to European financial markets. We of course must be mindful that an expanding and more complex financial sector may poses risks that need to be managed. This reinforces the importance of effective regulation and supervision – to maintain financial stability and to protect consumers and investors, both within Ireland, Europe and globally.

    As I mentioned earlier, we recognise that we too must change to keep pace with the changing world. I would like to finish by outlining some of the work we are doing in this regard.

    As you will be aware, we have introduced the Individual Accountability Framework (IAF). The IAF is all about helping underpin sound governance across the financial sector by setting out clearly what is expected of well-run firms. For both firms and the regulator it should be seen as a complement to the wider focus on governance, culture and behaviour. For the Central Bank our hope is that along with wider efforts, the IAF will help make firms take more ownership and responsibility for running their business and addressing any risks or deficiencies they may have. In an increasingly technological and rapidly changing world, the need for effective governance underpinned by a strong ethical culture and robust systems of delivery is becoming more and more essential.

    We are also transforming our supervisory approach – to ensure consumers of financial services are protected in all respects in this changing and increasingly complex environment. Building on the strong foundations of our current approach to supervision, we are moving to an integrated supervisory framework where directorates with oversight of banks, insurance companies and capital markets will be responsible for the supervision of all the functions in their respective sectors. Our approach will continue to be risk-based; but the new framework will ensure we are more efficient and effective in our supervisory work. It will make it easier to direct our supervisory resources to the areas of most risk to consumers or the system. Importantly, it will also place consumer and investor protection at the heart of day to day supervision. This change will maximise the benefit of our integrated mandate – enabling us to continue to deliver on our mission and ensure the financial system operates in the best interests of consumers and the wider economy.  These changes are not just important; they are necessary – so that in a changing world we continue to deliver in the public interest.

    Conclusion

    The EU will also need to take a number of very important decisions in the coming years, especially in terms of what elements of the legislative and regulatory agenda to prioritise, the level of ambition to apply in harnessing the EU’s investment potential, and how to navigate geo-political tensions. All of these – to different degrees – will have an impact on financial markets and firms. The speed of these developments – and their potential to cause ripple effects – will not decrease. And so the onus is on us – firms and regulatory authorities alike – to increasingly evolve our approach, innovate and prepare for what the future may hold.

    Thank you.

    MIL OSI Global Banks –

  • MIL-OSI Banking: BoBC Auction Results – 24 September 2024

    Source: Bank of Botswana

    The Monetary Policy Rate (MoPR) was unchanged at 1.9 percent of the previous week, for a paper maturing on 2 October 2024.  The summarised results of the auction held on 24 September 2024, are attached below:

    BOBC Results 24 September 2024.pdf

    MIL OSI Global Banks –

  • MIL-OSI Banking: Elizabeth McCaul: The future of European banking supervision – connecting people and technology

    Source: Bank for International Settlements

    Introduction

    I’m honoured to welcome you again to this conference, which is already being held for the fifth time.

    It’s the fifth anniversary of this conference but we are also celebrating the tenth anniversary of the Single Supervisory Mechanism (SSM). Naturally, it is a moment of reflection about what the future holds and how European banking supervision should continue to evolve. And, right now, various societal, political, technological, environmental and economic mega trends are shaping the future of the financial industry. In the tech area, for example, we are in the midst of a fast-paced and unprecedented development which is changing every aspect of the economy.

    The ways of working are changing profoundly.

    My son is a computer programmer. This weekend while driving we spoke about the possibilities for his future and what sort of work he might do, given the rapid innovation taking place. He told me he uses AI now regularly to produce code for him that he then reviews. Very different from the work he was hired for just two years ago when he graduated!

    In the aviation field artificial intelligence (AI) is being used to enhance the safety and efficiency of air traffic control by analysing historical and real-time flight data to predict potential collisions. Predicting accidents before they occur: isn’t that also a goal worthy of banking supervision? And in the health care field, common applications include diagnosing patients, end-to-end drug discovery and development, improving communication between physician and patient or transcribing medical documents such as prescriptions. All of this change in the industries around us are food for thought as we consider in a clear-eyed, realistic and vigilant way the risks and opportunities for us in banking supervision.

    Disruptive technologies like AI are playing a growing role in banks’ day-to-day activities, and access to technology is becoming widespread. At the same time, banks are becoming ever more dependent on data, IT platforms and third-party providers.

    To keep the banking sector safe and sound in the face of these trends, we need to equip the supervisors of the future with the right tools and skills. And it is this principle that has guided our strategic work on the digital agenda.

    Since the inception of European banking supervision in 2014 we have built up and continuously improved a set of core IT systems, launched our suptech efforts and created multiple cutting-edge tools which are already up and running. And now it is time to shape a new common strategy covering both our core IT systems and our suptech tools, as well as, most importantly, their integration.

    SSM tech strategy for 2024-2028

    The new SSM tech strategy for 2024-2028 builds on two main pillars: people and technology. The strategy not only addresses several critical business needs Any smart strategy developed for the future must have at its foundation the recognition that people and technology are increasingly, even inextricably intertwined.

    How have we incorporated that?

    We have done so by setting as our goal connecting people and technology so we can deliver “supervision at your fingertips”, This way, human expertise and technological innovation go hand-in-hand. We are structuring our work to ensure efficient, effective and integrated supervision that keeps pace with the trends and structural changes in the banking sector which I touched upon earlier. We are working on several levels to make sure that supervisors can fully use the applications and data available to them and that technology is seamlessly integrated into their day-to-day work. And we aim to consolidate IT to further strengthen European banking supervision, allowing supervisors to work as a single team with shared technology across the ECB and national competent authorities (NCAs).

    But what does this mean more concretely for our banking supervisors of the future? What impact will this strategy have on their work? What tools will they use?

    To make this tangible, let’s imagine a future supervisor called Pete. The name “Pete” symbolises the two key pillars of our strategy: “Pe” stands for people, and “te” for technology. So, how does our new strategy support Pete?

    People

    Let me start with the first pillar of our new strategy and the most important asset we have: our supervisors, people like Pete. Under this pillar, we plan to support Pete’s work in the following three ways.

    Promoting a user-focused innovation culture

    First, we aim to instil a culture that supports the adoption of our suptech tools and embeds advanced technology into regular supervisory processes. We are convinced that having a clear user focus in all our technological activities and ensuring an enhanced user experience will encourage the take-up of our tools.

    One way of fostering the adoption of tools is our European banking supervision-wide suptech champions initiative. Under this initiative, Pete and other colleagues at the NCAs and in various business areas across ECB Banking Supervision can become trained experts in suptech tools.

    These suptech champions can then provide local and easy-to-access support to users. They also collect feedback and identify user needs in order to further develop the tool. In this way, suptech champions act as ambassadors, both promoting awareness and supporting the use and development of suptech tools. Already, 45 champions across 17 NCAs have reached over 1,000 supervisors through multiple channels, including workshops and providing guidance on the use of suptech tools.

    Future-proofing our organisation

    Second, we are continuing to make our organisation ready for the future by establishing a steady-state tech function that connects internal tech and supervision experts across business areas and NCAs. We want to cultivate a collaborative approach to shaping SSM technology and enhancing the adoption and use of available tools.

    In one of our flagship initiatives, NCAs can become suptech centres, which are at the forefront of developing technology for European banking supervision. They deliver tools that can subsequently be made available to the ECB and other NCAs.

    A case in point is that one NCA has developed a new use case for assessing the group structures of banks over time in our network analysis platform, Navi, which benefits European banking supervision as a whole.

    Deepening our global partnerships

    Third, we seek to tap into the global innovation networks with which we have established strong ties in recent years. For instance, we have been working closely with leading academic institutions to deliver state-of-the-art training to supervisors on machine learning, programming for data analytics, prompting and other topics.

    We are also working closely with industry leaders in other areas, such as generative AI, cloud technology and big data, as well as with start-ups to bring the latest and most advanced technologies to banking supervision. At the same time, we are partnering with other authorities across the world to experiment with new ways of solving common problems. Such partnerships mean that Pete has access to knowledge and state-of-the art technology that boost efficiency and improve supervisory outcomes, which brings me to the second pillar of our strategy, technology.

    Technology

    Through our SSM tech strategy, we want to connect people with technology. In other words, we need to equip Pete with the necessary tools and capabilities.

    Working as a single team with shared technology

    The first cluster in the technology pillar concerns our core IT systems.

    On the one hand we will continue to future-proof our core systems and data infrastructure by making them more modular, scalable and innovation-friendly while keeping them secure. We aim to optimise the IT landscape by integrating and consolidating systems across European banking supervision.

    On the other hand, we will decommission legacy systems to maximise the use and impact of existing applications. Working as a single team across the ECB and NCAs with access to shared technology will allow Pete to collaborate more intensively with European central banking colleagues.

    Olympus is a notable project in this regard.

    Through Olympus, we aim to proactively shape our IT landscape and make it ready for the upcoming challenges and opportunities offered by new technologies. This ambitious project reviews the full IT landscape and sets out a roadmap and action plan for the future of IT in European banking supervision. For this project, we have identified four high-level targets rooted in our supervisory needs that guide all activities.

    Our first target is to strengthen our data-driven work. Imagine having easy access to data and efficient processing within a few clicks. This will empower our teams to make informed decisions swiftly and effectively.

    The second target is to provide common and connected tools and systems. Using integrated systems to foster collaboration among all European banking supervisors, we will create a cohesive working environment that allows everyone to work together smoothly.

    The third target is to ensure seamless access and navigation. By unifying access and identity management, we will make it easier for our staff to find and use the resources they need, free from technical obstacles.

    Lastly, we will establish common IT standards and delivery. By adopting consistent IT standards, we will drive rapid and user-friendly digital innovation, ensuring our technology keeps pace with the latest advances.

    Under the Olympus project we have set out the concrete action needed to reach these targets.

    What does this mean for Pete, though? Let me give you an example.

    Pete will be able to use the SSM Cockpit to navigate through supervisory tasks. The SSM Cockpit will provide a user-centric platform integrated with core systems to facilitate access and navigation to various tools and systems. By design, it will be a flexible solution that meets the diverse information and reporting needs of different supervisory roles. The Cockpit will feature advanced, AI-powered capabilities to help supervisors efficiently carry out their core tasks.

    Generating new insights through supervisory analytics

    Supervisory analytics are the second cluster under the technology pillar. These seek to enhance risk assessment by augmenting analytical capabilities and combining structured and unstructured data. There is also a pressing business need to address emerging risks such as climate-related and environmental risks, as well as IT and cyber risks. To do so, we must explore new datasets and information sources, including social media. Supervisory analytics will give Pete and his colleagues new insights which will help them stay ahead of emerging risks and provide more robust and timely risk assessments.

    We have been working on a tool called Delphi which uses natural language processing to integrate market risk-based indicators and information from news items into a single web-based platform with a user-friendly interface. The insights afforded by combining such quantitative and qualitative information mean that supervisors like Pete can adequately assess the underlying risks and better understand the real-time risk development affecting individual banks.

    Automating processes by harnessing AI

    Our third and last cluster under the technology pillar concerns process automation and collaboration. Think about how the automotive industry is being transformed by smart manufacturing. In a smart factory, machines, devices and systems are interconnected and can communicate with one another, enabling real-time data collection, analysis and decision-making. What can we learn from other industries to become more effective and efficient in our supervision?

    We are committed to delivering additional breakthrough solutions that use AI – and more specifically generative AI – to simplify and automate workflows, while improving collaboration within European banking supervision. For a while now, we have been harnessing AI and making it available in some of our tools, such as Athena, which helps supervisors analyse extensive textual information in various formats and languages, and Virtual Lab, a platform for SSM-wide digital collaboration as well as code sharing, cloud computing and the development of generative AI (GenAI) capabilities. We are also planning to deploy AI in the AFM Medusa project which will support our supervisors in drafting, consistency-checking and benchmarking findings and measures. Our vision is for supervisors to be increasingly empowered by GenAI, while remaining engaged in the process since they will be the ones who continue to review and approve work and take the final decisions. This technology will provide suggestions, assist in drafting input and help with analysis.

    To this end, we have been collecting use cases and are determining where it makes sense to implement European banking supervision-wide solutions, where specialised applications with narrower scopes and user groups are appropriate, and where off-the-shelf tools are sufficient. One of the solutions we have been working on is AthenaGPT, which complements Athena. Using AthenaGPT, supervisors like Pete are able to interact with several supervisory information sources at once. This boosts efficiency, as supervisors can then focus on the most relevant information. Searching for information in large supervisory repositories has never been easier. And in Agora, we are testing the ability for supervisors to query the data lake in English and use AI to translate into SQL, which is how the data can be accessed. This reminds me of how the work of my son is changing!

    Conclusion

    As you can see, we have ambitious plans for Pete and all our supervisors. Continuous investment in technology will remain key for ECB Banking Supervision to keep pace with changes in the banking landscape and address emerging supervisory risks.

    I am confident that we will be successful in this endeavour and that we will help Pete become a supervisor of the future: a strong SSM collaborator working in a single team with shared technology, an empowered data expert who bases decisions on advanced supervisory analytics and an agile supervisor making use of process automation and the latest technology.

    At the same time, I am incredibly proud of what we have already achieved. We have developed and fully implemented suptech tools that harness modern technologies such as AI across Europe. These tools have changed the way we do supervision. We have been surprised at how some of our tools have been received in our supervisory community. For example, we only expected to have around 200 users for Agora, the SSM single data lake. But we already have over 1,200 users, who have made over 1.6 million data queries using the tool. Our top innovation and collaboration tool, Virtual Lab, is being used by around 4,000 colleagues. And our network analytics tool, Navi, has now grown to cover almost a dozen major use cases. We have also trained almost 3,000 colleagues, including leaders, on topics related to innovation and digital transformation. This has helped broaden supervisors’ skillsets and established a mindset within our organisation that embraces technological change. Last, but not least, we have won four global innovation awards in three consecutive years.

    While we can be proud of these achievements, I believe that much remains to be done. There is a famous quote by the American sociobiologist Edward O. Wilson that continues to occupy my thoughts of late: “The real problem of humanity is the following: We have Palaeolithic emotions, medieval institutions and godlike technology.”

    You know that I spend a great deal of my waking hours thinking about the implications of the changing financial services environment we find ourselves in today. It’s an increasingly complex landscape, where we are facing geopolitical, climate and operational resiliency risks emanating from third party dependencies and cyber-attacks. We are facing changes to business models incorporating partnerships and responding to competition from and new entrants BigTech and FinTech. And the exponential growth of the global markets since the Great Financial Crisis in the interconnectedness of entities categorized as non-bank financial institutions with banks, especially private credit and equity funds operating outside the regulatory perimeter, is concerning, even worrying as we think about the effects on supervision and financial stability. Successfully connecting our technology and people to empower them in this changing landscape is essential.

    I would say that if we want to truly equip Pete for the future, it’s clear that our work has only just begun.

    Thank you very much for your attention. I hope you enjoy the rest of the conference.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Indonesia launches safeguard investigation on tarpaulins made from plastics and synthetic fibers

    Source: World Trade Organization

    In the notification, Indonesia indicated, among other things, as follows:

    “The contact information of the Investigating Authority for correspondence is:

    THE INDONESIAN SAFEGUARDS COMMITTEE
    Komite Pengamanan Perdagangan Indonesia (KPPI)
    Jl. M.I. Ridwan Rais No.5, Building I, 5th floor, Jakarta 10110
    Telephone / Facsimile: (62-21) 385 7758
    E-mail: [email protected]

    […]

    Those having substantial interest and wishing to be considered as interested parties in this investigation should submit written request within a period of 15 days in Indonesia from the date of initiation to the Investigating Authority. All submissions and requests made by interested parties must be sent both in written letter and in electronic format, and must indicate the name, address, e-mail address, telephone and fax number of the interested parties.”

    Further information is available in G/SG/N/6/IDN/45.

    What is a safeguard investigation?

    A safeguard investigation seeks to determine whether increased imports of a product are causing, or is threatening to cause, serious injury to a domestic industry.

    During a safeguard investigation, importers, exporters and other interested parties may present evidence and views and respond to the presentations of other parties.

    A WTO member may take a safeguard action (i.e. restrict imports of a product temporarily) only if the increased imports of the product are found to be causing, or threatening to cause, serious injury.

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    MIL OSI Global Banks –

  • MIL-OSI Banking: WTO advanced course on trade in services concludes in Geneva

    Source: WTO

    Headline: WTO advanced course on trade in services concludes in Geneva

    The LDCs participating in the course were Bangladesh, Madagascar, Lao People’s Democratic Republic, Nepal, Tanzania, The Gambia and Zambia. The acceding country was Bhutan. The full list of participating economies is available here.
    Over five days, participants engaged in an intensive curriculum designed to deepen their understanding of the WTO’s General Agreement on Trade in Services (GATS). The course covered the economic importance of services trade, domestic regulation, the impact of digital trade on economies’ trade performance, investment facilitation and environmental services. Participants were also able to analyze and formulate effective trade policies by gaining hands-on experience with analytical tools like the I-TIP database and services trade statistics.
    The programme included a mix of presentations, practical exercises and in-depth discussions on emerging trade in services issues. Participants were particularly engaged in sessions on the latest developments in digital trade and the regulatory challenges associated with services trade. Interactive sessions allowed participants to apply their know-how to real-case scenarios, reinforcing their capacity to navigate complex trade issues.
    Upon completing the course, Mr Hugo Ibarra said: “In my work at the Undersecretariat of Economic Affairs, which reports to Chile’s Ministry of Foreign Affairs, I am frequently in contact with the WTO for notifications of trade policies and other issues linked to the fulfilment of Chile’s WTO commitments. I also regularly refer to the GATS in our negotiation process for trade agreements. For these reasons, this type of course plays a very important role in our daily work.”
    Mr Kutubo Jarju, a participant from The Gambia’s Ministry of Trade, Industry, Regional Integration and Employment, said: “As a trade professional engaged in multilateral and regional trade negotiations, my primary expectation from this advanced course was to significantly deepen my expertise in the evolving services trade landscape. The course provided me with an enriched understanding of the current issues, challenges and opportunities of services trade, particularly in the context of global and regional agreements.”
    Ms Lavita Chan from Hong Kong, China’s Trade and Industry Department said: “I highly recommend the Advanced Trade in Services Course for government officials with services negotiation background and experience. Needless to say, the course contents were wide ranging, informative, up-to-date and inspirational. I was particularly impressed by the participants’ enthusiasm in sharing their points of view and domestic experience while the case studies and examples helped enrich our understanding and clarify complicated concepts. The participant-led reviews every morning were a very useful way to consolidate everything we learned and to promote teamwork.”
    The course was organized jointly by the WTO Trade in Services Division and the Institute for Training and Technical Cooperation.
    List of participants
    ARGENTINA
    Ms Estefania Donna
    BAHRAIN
    Ms Meead Alansari
    BANGLADESH
    Mr Saif Uddin Ahammad
    BHUTAN
    Mr Choki Tshewang
    CABO VERDE
    Ms Ludmilde Filomena Celso Silva Fernandes Semedo
    CHILE
    Mr Hugo Ibarra
    CHINA
    Ms Yi WANG
    C�TE D’IVOIRE
    Ms Mariam Deme
    ECUADOR
    Ms Estefania Anais Mejia Ramos
    HONG KONG, CHINA
    Ms Mo Ying Chan
    JORDAN
    Mr Qusai Al-Tarawneh
    KENYA
    Ms Elizabeth Gathoni Miguda-Alila
    LAO PDR
    Mr Nongchith Khambounheuang
    MADAGASCAR
    Mr Fetra Herisoa Ramankirahina
    MOROCCO
    Mr Othmane Maktoum
    NICARAGUA
    Ms Yeseila Baca Cuadra
    PAKISTAN
    Ms Onsia Zafar
    PHILIPPINES
    Mr Anthony Aguirre
    REPUBLIC OF KOREA
    Ms Aeseon Kim
    SEYCHELLES
    Ms Demelza Tanisha Nathalie Valentin
    SRI LANKA
    Mr Premathilake Jayakody Batagolle Gedara
    SURINAME
    Ms Urtha Charlane Hoever
    CHINESE TAIPEI
    Ms Yun-Xuan Lin
    TANZANIA
    Ms Angelina Stephen Bwana
    THE GAMBIA
    Mr Kutubo Jarju
    TUNISIA
    Ms Noura Ben Mohamed
    UKRAINE
    Mr Vitaliy Kunatenko
    ZAMBIA
    Ms Mbewe Chikondi

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    MIL OSI Global Banks –

  • MIL-OSI Banking: Luigi Federico Signorini: Disaster risk financing – the role of insurance in new public-private partnerships

    Source: Bank for International Settlements

    Ladies and gentlemen,

    Once again we are seeing dramatic images of floods, damages and losses. The images that we just saw in the walk-in video for this conference are surely older, but could have been taken yesterday. Our hearts and thoughts are with those that have been hit, not just this time but also in the previous months, some repeatedly. We must hope that human life has been spared this time, although I understand that as of this morning some are still missing.

    This is another reminder of the seriousness of the climate issue. We cannot be in denial. The accelerating change in the Earth’s climate has increased the frequency and intensity of river and coastal floods, landslides, droughts and forest fires worldwide. Europe, in particular, is warming quite fast; according to Copernicus (the European satellite monitoring system), the average temperature for European land in August 2024 was more than 1.5°C above the 1991-2020 average for the same month. In addition to climate-related events, other natural disasters such as earthquakes, tidal waves, volcanic eruptions and bradyseism can have a dramatic impact on the economy and society.

    The issue of natural disasters and, more generally, catastrophe risks, once confined to scholars of the ‘hard’ sciences, such as physicists and biologists, has become an area of concern for economists, sociologists and lawyers as well. As a consequence, one sees among other things more and more attempts at measuring the economic impact of natural events in a reliable way. The 2023 European State of the Climate Report estimates the direct damage to property generated in 2023 by floods, inundations and fires (disregarding, that is, indirect effects) at more than €13 billion, and the human toll at 151 deaths. Over the past few years, there has also been a growing attention in international fora to natural disasters as a potential source of systemic financial stability risk.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Ida Wolden Bache: Time to ease monetary policy is approaching

    Source: Bank for International Settlements

    Presentation accompanying the speech

    Chart 1: Policy rate held unchanged

    The Monetary Policy and Financial Stability Committee decided to keep the policy rate unchanged at 4.5%. Based on the Committee’s current assessment of the outlook, the policy rate will most likely be kept at that level to the end of the year.

    Norges Bank is tasked with keeping inflation low and stable. The operational target is inflation of close to 2 percent over time. We are also mandated to help keep employment as high as possible and to promote economic stability.

    After inflation surged a couple of years ago, we have raised the policy rate significantly, and since December last year the policy rate has been held at 4.5 percent. The interest rate has contributed to cooling down the economy and to dampening inflation.

    Many central banks in trading partner countries have started cutting policy rates. One might wonder why we are not reducing the policy rate now.

    Inflation has declined significantly from its peak but is still above our inflation target. The rapid decline in inflation observed in recent months is not expected to continue going forward. Further disinflation will be restrained by the krone depreciation combined with the high growth in business costs.

    A restrictive monetary policy is still needed to bring inflation down to target within a reasonable time horizon. The Committee is concerned with the possibility that if the policy rate is lowered prematurely, inflation could remain above target for too long. On the other hand, an overly tight monetary policy could contract the economy more than needed. When we set the policy rate, we have to balance these trade-offs.  

    Chart 2: Gradual policy rate reduction from next year

    Based on our current assessment of the outlook, the policy rate needs to be kept at today’s level for a period ahead. At the same time, we are approaching the time to lower interest rates. If the economy evolves as envisaged, we will maintain the policy rate at 4.5 percent to the end of the year, before it is gradually reduced from the first quarter of next year. The policy rate forecast is little changed but implies a slightly faster rate reduction through next year than our previous forecast published in June. 

    Let me say a few more words about the background for the rate decision and the Committee’s assessment.  

    Chart 3: Low growth in the Norwegian economy

    Growth in the Norwegian economy was low through last year and has remained weak this year. High inflation and the rise in interest rates have reduced household purchasing power and consumption, and residential construction has shown a sharp decline. Economic activity is being supported by public sector demand and heavy investment in the petroleum industry.

    Information from our regional network indicates that economic growth will pick up a little in the second half of this year. But there are wide differences across industries, with oil services expecting strong growth and the construction industry a continued decline.

    Over the past couple of years, the labour market has become less tight, and firms are finding it easier to fill their recruitment needs. Employment is high, but the share of the population employed has fallen a little. Unemployment has edged up from a low level.   

    Chart 4: Inflation has declined markedly from its peak

    At its highest, inflation was above 7 percent. According to last week’s data, inflation is now running at 2.6 percent. Excluding energy prices, which are quite volatile, inflation is a little higher than 3 percent. Inflation has been lower than we expected in June.

    International inflation has also fallen notably, and central bank rate cuts are now expected to be deeper and faster than before summer.

    Chart 5: Wage growth is high

    While wage growth is subsiding among many trading partner countries, it is still high in Norway. Wages increased by 5.2 percent last year, and a comparable increase is expected this year. We expect wage growth to moderate in the years ahead, but given weak productivity growth, business costs will continue to grow at a fast pace.

    Chart 6: The krone has depreciated

    The krone exchange rate has depreciated in recent years and is now weaker than at the time of the June monetary policy meeting. A weaker krone means an increase in prices for imported goods and services, and higher costs for firms that depend on imported intermediate goods. For the export industry, a weaker krone means increased profitability, which can lead to higher wage growth and, in turn, to higher inflation.  

    Movements in the krone exchange rate are determined by a wide range of conditions, in both Norway and internationally. This makes it difficult to explain all exchange rate movements, but we can safely say that the interest rate matters for the krone exchange rate. If we had not tightened monetary policy in recent years, the krone would have been weaker. Experience has also shown that the krone weakens when oil prices fall or, as we saw this summer, financial markets experience turbulence.

    Chart 7: Inflation will slow and unemployment edge up

    With the current policy rate path, inflation is projected to move down further and approach 2 percent towards the end of 2027. Unemployment will likely edge up to about the level prevailing before the pandemic.

    Many people have experienced tighter household budgets in recent years, but most people will find that their budgets will stretch further going forward. Interest expenses will still be high, but we expect wages to rise faster than prices, and the debt burden will be easier to bear.

    The economy may evolve differently than we now anticipate. If the outlook suggests that inflation will return to target faster or there is a more pronounced slowdown in the Norwegian economy, the policy rate may be lowered faster than currently envisaged. On the other hand, if the krone depreciates further or economic pressures increase, inflation could remain elevated for longer. A higher policy rate than currently envisaged may then be required.

    Inflation has slowed sharply. That’s welcome news, and now it’s important that we go the last mile of returning inflation back to the target. By maintaining confidence in the inflation target, we are better equipped to deal with new shocks and periods of turbulence in the future.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Nicolas Vincent: Monetary policy decision-making – behind the scenes

    Source: Bank for International Settlements

    Introduction

    Good morning. It’s a pleasure to be here with you today.

    I’ve done a lot of hiking, camping and skiing in the Eastern Townships. But this is the first time I’ve had a chance to spend time in Sherbrooke. I’m very much looking forward to spending the next two days in your lovely city.

    As Bruno mentioned, I’m a professor at HEC Montréal and an external Deputy Governor of the Bank of Canada. As an external Deputy Governor, I am a full member of Governing Council. I participate in all discussions related to monetary policy and financial stability.

    The Bank’s aim in creating an external, part-time role was to get new perspectives from someone who isn’t from the world of central banks but still knows a thing or two about economics. Thankfully, my teaching experience and academic research have come in quite handy in my role at the Bank, as has my early-career work in the public service. Even with my experience, however, I’ve had to learn a lot since joining the Bank in March 2023, particularly about the process involved in making interest rate decisions.

    At the beginning of September this year, in light of recent progress in the fight against inflation, the Bank announced a third consecutive cut of 25 basis points, bringing the policy rate to 4¼%. It will likely come as no surprise to any of you that it’s more pleasant to announce cuts than it is to announce increases. In recent years, decisions by the Bank have been the subject of much attention, interest and debate. This is to be expected. The decisions have an impact on everyone, in many different ways, and we are well aware of that. We know that households are worried about the cost of living, their mortgage loan renewal, house prices, rent and the fact that it is getting harder to find a job. Given the importance of our decisions, they must not be taken lightly. And having been at the Bank for 18 months now, I can confirm that they are not. Interest rate decisions are based on an enormous amount of analysis and reflection.

    But how are decisions reached? What does the process look like exactly? Since becoming Deputy Governor, I have often been asked such questions. Generally speaking, there is considerable interest in and curiosity about our work and our responsibilities. That’s why the Bank puts so much effort into making monetary policy understandable for everyone by communicating it in clear and simple terms. You can find detailed information on the Bank’s website explaining our work and our decision-making process. We want people to understand what we do.

    Yet, for all our efforts, the truth is that most people know little about how we work and the steps we take in deciding whether to raise, maintain or lower the policy interest rate. That may even be the case for many of you here. And when I think about it, it’s not particularly surprising. Even as a macroeconomist, I knew little about the process before starting at the Bank.

    Today I’d like to take you behind the scenes and speak about what happens behind closed doors. What are the steps in the process? What sources of data do we use? How do we make our projections? I’ll also talk about the debates, the differences of opinion and the ways we reach a consensus. As you’ll see, making a decision on monetary policy is much more complicated than pushing a button, and getting a computer to spit out calculations and having everything fall into place. I’ll also talk about my own experiences, what’s surprised me and what I’ve learned along the way.

    Analysis and consultations

    First, I’d like to start with a quick review of what monetary policy is and does. At its core, the Bank’s mandate is to keep inflation low, stable and predictable, and centred on the 2% target. The Bank’s main tool for doing this is the policy rate. Changes to the policy rate affect several other interest rates in the economy, notably mortgage rates and rates for business loans. If the Bank raises the policy rate in response to high inflation, the cost of borrowing increases. This lowers demand because people have less money to spend on things like eating out or clothing, while businesses defer spending on projects. When economic activity slows, inflation goes down, which shows that monetary policy is working.

    While that seems simple in theory, in practice it is rather more complicated because the effects of our actions are not felt immediately. I have been a Deputy Governor for 18 months, which is the period needed to observe the full effects of monetary policy on inflation. And because we are always making decisions about the future, the Bank must rely heavily on economic forecasting.

    In addition, the impacts of Bank decisions are complex and uncertain. Much like a business that faces many unknowns when deciding to adopt a new technology, the Bank also must make choices in the face of considerable uncertainty. This is why it’s important to have good information and good advice.

    To get the best possible understanding of the economic situation, Governing Council members have access to an extremely large number of datasets, analyses and points of view. When I’m asked to summarize the work of a Deputy Governor, I often say that I am a big aggregator of information. I am part of a team whose job is to put together all the pieces of the puzzle to inform our decision-making. Today, I’d like to explain to you what that means in concrete terms.

    Every year, the Bank makes eight monetary policy decisions. That means eight times a year, the Bank must decide whether it will raise, maintain or lower the policy interest rate. Four of the eight decisions are accompanied by the Monetary Policy Report (MPR), published most recently in July. The MPR examines the global and Canadian economies in terms of production, spending, the labour market and, of course, inflation. It also includes the Bank’s projections for growth and inflation and the risks to the projection over a two-year period.

    The decision-making process begins about a month before the announcement date, when Bank staff present an economic projection to Governing Council. We call this Case A. It draws on the Bank’s macroeconomic models and surveys, its analysis of various sectors and components of the economy, and its assessment of financial stability and financial market activity. Since we don’t have a crystal ball, we draw on the latest data and use our projection models to look into the future.1 For several hours, Governing Council members debate the assumptions and risks to the projection as well as alternative case scenarios prepared by staff.

    About 10 days later, Bank advisors and economists present Case B, a revised projection incorporating the comments of Governing Council members and, if any, new developments that occurred since Case A. We draw on that projection to make our policy rate decision.

    When there is a rate announcement without an accompanying MPR-as was the case two weeks ago-many of the same steps are involved, although staff do not make new projections. They report on new data released since the last policy decision and on how the economy as a whole performed against expectations. Although the amount of information we have access to differs between announcements with and without an MPR, all decisions are equally important.

    Throughout the process, Statistics Canada’s data on inflation, gross domestic product and employment are an invaluable source of information to guide our decisions. But they also have limits. First, data tend to be aggregate, which can make it difficult to discern the full range of experiences Canadians are having. That is why we spend a lot of time diving deep into the data to analyze what concerns and affects people on a day-to-day basis: rent, house prices, mortgage renewal, the prices of gas and groceries, how long it takes to find a job, and so on. All these factors help us to predict the path of inflation in the months and years ahead.

    Second, hard data draw from the past. That is why the Bank conducts quarterly surveys on consumer expectations and the business outlook. The qualitative and forward-looking nature of these surveys allows us to discover different points of view and obtain a more nuanced portrait of the future path of economic activity. Some of you may even have participated in these surveys; if so, I’d like to thank you for the contribution you’ve made to making monetary policy.

    We also engage with the public through outreach activities. The Bank needs to hear from a variety of participants in the economy to understand what is happening on the ground. Meeting with businesses, community groups and other organizations gives us an opportunity to listen, learn and deepen our understanding of their situation. The knowledge we gain helps us interpret the statistical data and contributes to our projections. This outreach also gives us an opportunity to explain the role of the Bank to Canadians.

    This is exactly what I will be doing during my time in Sherbrooke. I’ll have the opportunity to participate in a round table with Entreprendre Sherbrooke, speak with university students and meet with local officials. Sometimes outreach activities even have unintended outcomes. Last spring, I took an outreach trip to  Rimouski, where I grew up. After I was interviewed by local media, some childhood friends I had not heard from in years reached out and messaged me!

    As an aside, I’d like to point out that while the Bank seeks out views from a broad range of stakeholders, it makes monetary policy decisions independently. This protects the Bank from short-term political objectives and pressures from special-interest groups. The independence of a central bank is even more important when difficult decisions must be made, as has been the case in recent years.

    The next step in the decision-making process is the risk and recommendations meeting, which takes place about a week before the announcement date. Advisors and staff from economics departments share their points of view and debate the implications of raising, maintaining or lowering the policy rate. This culminates in a round-table discussion where each person puts forward a recommendation and its rationale. As you can imagine, we are never short on opinions. While Governing Council is ultimately responsible for making the decision, the decision is really the product of an enormous team effort.

    Once the members of Governing Council have heard from the advisors and studied their analyses and recommendations, they meet in private to evaluate everything they’ve learned and come to a decision. Now, I’ll shed a bit of light on how that works.

    Deliberating the decision

    Before I talk about the deliberation process, I have to let you in on a little secret. At the Bank’s head office, behind a massive wooden door, there is a room I like to call the Chamber of Secrets. It’s formally known as the Rasminsky Room, after Louis Rasminsky, the Bank’s third governor. All discussions and decisions about the policy rate take place in this room.

    It’s a secure room where the blinds are always drawn, and access is controlled. From inside this room, no communication with the outside world is allowed, and the use of electronic devices is strictly regulated. When we say “private” deliberations, we really mean it! The Bank takes security very seriously-and with good reason. A leak could have serious consequences. Many stakeholders-financial market participants, in particular-are very eager to get news of the decision.

    Returning to the topic of our deliberations, once all the members of Governing Council are in the room, the Governor opens the meeting. The Governor acts as chair and shepherds the discussions. Each member is given the opportunity to present their views on economic developments in Canada and abroad, and on the outlook for growth and inflation. Another tidbit from behind the curtain: in Governing Council discussions, the Deputy Governors speak in reverse order of seniority, with newer members speaking first. This ensures their views are not influenced by those of more senior members. The Senior Deputy Governor speaks next, followed lastly by the Governor. They express their views, which leads to further discussions. We then go around the table again, with members presenting their opinions on monetary policy and debating the rate decision.

    The process is not set in stone. The content and format of our discussions are adapted to the situation and vary depending on our thinking about the economic environment and risk landscape. For example, when I started at the Bank in March 2023, a number of regional banks in the United States had just failed. Questions about financial stability were at the forefront of our discussions. In recent months, an important focus of our discussions has been the stickiness of inflation in prices for certain services, including shelter.

    But how is the decision actually reached after all of these deliberations? Unlike other central banks, such as the US Federal Reserve or the Bank of England, where members vote, the Bank of Canada makes decisions by consensus. Members must therefore all agree on the course of action, even if we had different points of view when we walked into the Rasminsky Room. And it might not come as a surprise that we do not always agree on everything.

    In fact, it’s completely normal that members have differences of opinion. After all, each member of Governing Council has distinct expertise stemming from their past experiences and educational background. But the diversity of our expertise is exactly what makes it possible to have detailed and constructive discussions that lead to informed decision-making.

    So, how do we arrive at a consensus despite our differences of opinion? Here, the organic nature of our deliberations plays a key role. At times, points raised by other members may lead us to fine-tune or rethink the way we’ve interpreted the data. Or a colleague may raise a point or highlight issues that others had not originally considered. In my opinion, the need to arrive at a consensus strengthens our decision-making process. We must carefully consider the diversity of opinions within Governing Council and discuss among ourselves to arrive at a common position.

    I should also mention that reaching a consensus does not mean that all members of Governing Council share the same point of view on the economic outlook or the path for interest rates in the coming months. It means that members come to an agreement about the best decision to make at a particular moment in time.2 And the truth is that as new data are published and new information comes to light, differences of opinion tend to become less pronounced.

    Whatever shape the deliberations take, I can assure you that everyone around the table is always very conscious of the weight of these decisions. I fully felt this weight myself in June 2023 when I participated in my second round of monetary policy deliberations.

    In the year before my arrival, the Bank had decisively and forcefully raised the interest rate from 0.25% to 4.5% to combat the spike in inflation. At the beginning of 2023, the Bank indicated it would pause to evaluate the effects of the increases on the economy and inflation. But data released between April and June 2023 showed that the economy had been more robust than expected in the first quarter of the year and that inflation had even increased slightly. Given the situation, we reached the conclusion that we had to again raise the interest rate. But at the end of our Friday afternoon meeting, the Governor said, “Let’s take the weekend and sleep on this decision and come back on Monday with clearer heads to discuss again.”

    Over the course of that weekend, I came to fully feel the weight of the responsibility that came with my new role. I’d had countless discussions about monetary policy with colleagues and students over the course of my career as an academic. But as Deputy Governor, I found the discussions were no longer abstract or theoretical. I came to understand that I was one of six people whose decision would directly impact borrowing costs for millions of people like you and for businesses like yours. Believe me when I say that the realization made my head spin a little; it was really quite humbling.

    Communicating the decision

    One thing that may surprise you-as it did me-is that Governing Council’s work does not end once the decision is made. Communicating the reasons that led to the decision is almost as important as the decision itself. The members of Governing Council work closely with the Bank’s communications team to develop key messages and draft the press release and opening statement for the press conference. If only you knew how much time we spend trying to find the best ways to convey our message and looking for just the right words-in both official languages.

    With time, I’ve come to understand that this is not always an easy task. For example, at the July decision, we said downside risks to inflation were becoming increasingly important in our deliberations. Some people interpreted this to mean that we believed downside risks had strengthened. What we intended to communicate, however, was that, with the 2% target in sight, we gave increased consideration to the risk that inflation could fall below the target.

    As you can see, differences in interpretation can be very subtle, which makes choosing the right words all the more important. I’d like to think that all the years of explaining complex concepts to my students has given me a lot of practice in this regard.

    Even though I’ve been in this role for only a short time, I’ve been able to appreciate how the Bank’s approach to communication is constantly evolving. In the past, press conferences were held only when the rate announcement was accompanied by a Monetary Policy Report. Starting this year, all eight rate announcements now feature a press conference. This gives the Bank the opportunity to share its assessment of the economic outlook with the public and explain the reasoning that led to the rate decision. Following the decision, Governing Council members host information sessions and regularly give interviews with the media.

    Since January 2023, a summary of deliberations is published online two weeks after every decision. This document is a record of Governing Council’s assessment of the economic environment and the upside and downside risks to inflation. It also highlights where opinions converged and the topics that generated the most debate among members. The summary of deliberations for the September decision was published yesterday, in fact.

    Lastly, the Bank is always looking for new ways to communicate and for new channels to reach the widest audience possible. In fact, the Bank has accounts on YouTube, X, Instagram, Facebook and LinkedIn. Be sure to follow us.

    Conclusion

    It’s time for me to wrap up. I’ve now participated in 12 rate decisions. Since arriving at the Bank, I’ve always felt my experiences and external point of view have been useful to my work and valued by the other members of Governing Council and the organization as a whole.

    I genuinely feel I’m contributing to the mission of a rigorous and conscientious institution that is mindful that its credibility is directly linked to the effectiveness of its actions.

    Credibility must be earned. The Bank’s is founded on the trust that Canadians place in us and our actions. Even when those actions are difficult and have direct impacts, Canadians understand that we are always guided by our resolve to keep inflation low, stable and predictable.

    We are fully conscious of the responsibilities the Bank has toward all Canadians. To maintain the public’s trust, we must be rigorous, professional, humble, honest and transparent.

    It is to contribute to this transparency that I’ve spoken to you today about the Bank’s decision-making process. This process has allowed the Bank to weather many past storms, from recessions to economic crises and even a pandemic. And this process will keep us true to our promise to all Canadians: to bring inflation back to target and keep it there. That will always be the best way for the Bank to support the Canadian economy.

    Thank you.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Passing of the Crown Coin revealed ahead of November release

    Source: Danmarks Nationalbank

    The final design of the Passing of the Crown coin, marking King Frederik X succeeding Queen Margrethe II, was revealed after Danmarks Nationalbank presented the coin to the monarch.

    The Passing of the Crown Coin is a 20-kroner coin, which will be introduced into general circulation via stores and banks in early November 2024.

    Denmark has a long tradition of issuing commemorative coins to celebrate special events in the royal family, such as anniversaries.The previous time a Passing of the Crown Coin was issued was in 1972, when Queen Margrethe II became monarch following the death of her father King Frederik IX.

    The design of the new Passing of the Crown Coin follows the tradition of previous issuances, as one side features a portrait of King Frederik X in a right-facing profile, while the reverse features Queen Margrethe II, also in a right-facing profile. Both portraits were created by sculptor Eva Hjorth. The coin was designed by Danmarks Nationalbank’s Head of Design, Jeanette Skov Jensen.

    A total of one million Passing of the Crown Coins have been produced. Most of them will enter circulation as regular coins, but some will be made available to the public as collectors’ versions. These will be available to purchase via coin and stamp dealer nordfrim.dk on 1 November 2024. However, It will be possible to pre-order the coin as of

    today.

    The Passing of the Crown Coin will circulate alongside existing coins, which remain legal tender.

    Regular circulation coins featuring King Frederik X are expected to be released during the second half of 2025. More information about this will be available on Danmarks Nationalbank’s website in 2025. These coins will also be circulated alongside coins that are currently in circulation.

    You can see the Passing of the Crown Coin and read more about it at nationalbanken.dk.

    Press enquiries can be directed to Press and Communications Officer Peter Levring on +45 2620 1809.

    MIL OSI Global Banks –

  • MIL-OSI Banking: Joachim Nagel: Why do we need Europe?

    Source: Bank for International Settlements

    Check against delivery 

    1 Global challenges need global answers

    We are living in a period of significant change. Many distinct forces are contributing to this change. Examples here include global warming and the switch towards carbon-free energy, progress in digitalisation and AI, as well as geo-economic factors and demographic developments.

    What do all the changes I’ve mentioned have in common? They affect humanity at the global level. It therefore does not seem useful to limit one’s attention to national solutions. That said, the European elections have shown us that many voters backed parties calling for greater national sovereignty or even nationalism – as well as less Europe. The Brexit referendum, eight years ago, can be seen as an example of this trend. As, too, can the recent German regional elections.

    Why is this? Global changes often lead to global challenges, and sometimes to global crises. This means a lot of complexity. Those who are in charge are responsible for properly explaining this complexity. If we don’t assume this responsibility, simple political messages may trump complex ones. And there is no doubt that politics at the European level are complex. Just think of the legislative process behind the new Corporate Sustainability Due Diligence Directive – a directive that sets rules for firms to mitigate their negative impact on human rights and the environment. Or the slow progress that has been made regarding the capital markets union – a topic I will return to later.

    However, as the current major challenges are global in nature, national responses alone will not resolve them. Action is needed on a global scale. Take the pandemic, for example. Overcoming this required unprecedented vaccine research, large-scale production and global distribution. Or consider the climate crisis. While Germany can lead by example in terms of decarbonising its economy, it cannot solve the climate crisis alone. As for European countries, this means that we have to work on European responses to the current challenges. This holds true for Germany, too – despite it being one of the largest economies in the world. Germany should see itself as part of a wider European team – a team that can provide greater stability given the current geopolitical risks. Take the increasing global trade restrictions, for example. Between the two main global players, the United States and China, only a unified European approach stands a chance of defending European interests. This view is shared by almost three-quarters of Europeans surveyed at the beginning of this year.1

    2 Europe is not a weak spot – it is a source of strength

    It is true that open democratic societies tend to have complex and cumbersome decision-making processes. The more fragmented the political landscape, the more difficult it becomes. This already holds for the national level – as can currently be seen in the case of France and Germany. At the European level, complexity is even greater. There, agreeing on a compromise is like an art in itself. However, democratic decision-making processes have one great benefit. They integrate the diverse interests and preferences of the people.

    In fact, a significant majority of EU citizens are satisfied with the way democracy works in the EU.2 And the share of people who have a positive image of Europe is nearly twice as big as the share of people who have a negative one.3 This might well reflect an observation made by the Spanish philosopher José Ortega y Gasset at the beginning of the last century. He noted that four-fifths of our intellectual property stem from our common European heritage.4 People seem to have a good understanding of what “European” means: the common ground of our liberal, democratic societies and the intellectual achievements we have made.

    Once we realise these strengths of Europe, we can use them to move forward, to manage the changes I mentioned at the outset of my speech. Europe does not have an analytical deficit, but a deficit in taking action. For example: A deeper single market could help seize the opportunities of digitalisation more fully. And a unified European approach to decarbonisation could serve as an example and help the formation of larger climate clubs. These clubs derive mutual benefits from sharing the costs of producing less CO2-emissions. The members of such a voluntary club have incentives to adhere to its rules as long as the gains from the club are sufficiently large.5

    3 What it will take to move forward

    And what will it take to move forward? As President of the Bundesbank and as a member of the Governing Council of the European Central Bank, I am doing all I can within my remit. First and foremost, I am striving to restore price stability. This is because price stability is a crucial requirement for economic development and for the welfare of our societies. And I am also supporting measures that help Europe to act. It is in this context that I return to the topic of the capital markets union. The capital markets union can be an important means of providing companies with the necessary funding to manage change. This includes funding for new scientific knowledge and for innovations to help us thrive in our future environment. Europe is relatively good at research.6 And research is a crucial basis for innovation. However, a lack of available capital often prevents young innovative companies from growing. A key reason is that capital markets in Europe are still highly fragmented and rather underdeveloped compared to those in the United States, for example. Although market structures are not fully comparable, venture capital investment may serve as an example here. Relative to GDP, its size in European countries is less than one-tenth the size in the US.7 A European capital markets union would give firms better access to risk capital in Europe – notably young firms in their start-up and scale-up phase, and it would provide better exit options. By mobilising more private capital, the capital markets union could improve opportunities for economic growth. And it could foster much needed investments in Europe’s digital and sustainability transformation.

    It is a real challenge to make progress at the European level and in the 27 Member States on the legal initiatives necessary to realise the capital markets union. But if we agree that the changes we see are global in nature, then we should not try to deal with them at the national level. We should strive for multilateral solutions. Here in Europe, the European Union provides a wonderful opportunity to find common approaches that many around the world can subsequently gather behind.

    I am optimistic that the new European Commission will build momentum to move forward – not least with respect to the capital markets union, which was recently given fresh impetus by Member States’ political leaders. We have the potential to rejuvenate the European idea. A thriving research and innovation ecosystem will support that goal – with stable prices, sufficient financing opportunities and steady growth. Let us all do what we can to strengthen Europe at the current juncture. 

    MIL OSI Global Banks –

  • MIL-OSI Submissions: Investment Sector – Leo Capital Sets Up Nordic HQ in Helsinki and Launches a €25M Fund Reinforcing Helsinki’s Emerging Role in Attracting Venture Capital Firms

    Source: Helsinki Partners

    Helsinki’s tech ecosystem continues to attract international venture capital firms, as Leo Capital, a successful Singapore-based venture capital firm, launches its Nordic headquarters to support regional B2B startups. Alongside this strategic move, Leo Capital is launching a €25 million fund specifically targeting the Nordic region, marking its first fund focused on Europe. The 90 Day Finn program, which one of Leo Capital’s founders, Shwetank Verma, was part of in 2022, played a crucial role in choosing Helsinki as the location.

    Founded in 2018, Leo Capital has previously managed three funds primarily focused on the APAC region and has actively invested in Europe since 2021. Their successful portfolio includes companies like Apica, Atoa, and Eir. The newly announced fund, Europe Fund I, represents a significant milestone for Leo Capital, as it extends their investment reach into the Nordic startup ecosystem. Business Finland Venture Capital has made an anchor investment in the fund, showing confidence in Leo Capital’s approach amidst challenging market conditions.

    “Europe Fund I continues Leo Capital’s successful strategy of investing in the world’s most capable, ambitious, and resilient founding teams. It is these founders that we are looking to partner with, combining their vision and dynamism with our own networks, resources, and years of cross-border experience to help supercharge their trajectory and realize their global ambitions”, said Shwetank Verma, Co-founder of Leo Capital.

    Helsinki: A New Hub for Venture Capital

    Leo Capital’s decision to expand its operations to Finland came after participating the 90 Day Finn program, an initiative by Helsinki Partners designed to attract international entrepreneurs and investors to Helsinki. Shwetank Verma’s participation in the program provided deep insights into the Finnish business environment, which shares key qualities with Singapore, such as strong government support, a high level of expertise, and a vibrant entrepreneurial spirit.

    “For us, Finland is exciting because we see parallels with what we know best in Singapore, for example. We can see that combination of government support, talent, and entrepreneurial zeal. They’re small markets but very dynamic”, Verma noted.

    Despite the abundant opportunities, Helsinki’s potential remains relatively underexplored on the global stage. Programs like 90 Day Finn have been crucial in bridging this gap, as they have successfully brought international investors like Leo Capital to recognize Finland’s unique offerings.

    “To attract investments, talent, or companies to expand to Helsinki, we need to generate interest and ensure they experience what Helsinki and Finland has to offer. Programs like 90 Day Finn have proven to be incredibly effective. For instance, Leo Capital originally considered another European location for their headquarters but shifted to Helsinki after participating in the program,” commented Johanna Huurre, Business Director at Helsinki Partners.

    The Nordic region, known for its openness and global perspective, provides an inviting ecosystem for international funds. However, while early-stage funding is relatively accessible, there is a notable gap in later-stage funding, an area where Leo Capital aims to make a significant impact.

    “One of the challenges in Finland is the relatively small and local nature of funds. To elevate Finland’s success stories, we need to attract larger international funds and investors. The entry of Leo Capital, with its extensive network, into Helsinki’s ecosystem is a significant step towards this goal,” Huurre added.

    About Leo Capital

    Leo Capital is a Singapore-based early-stage venture fund founded by serial entrepreneurs with global experience. The firm’s portfolio spans 60 early-stage companies supported by a cross-border team across three continents. Leo Capital backs founding teams powering a software-enabled world, supporting them in their journey from great start-up to great company. Leo’s “India Advantage” offers founders support in talent acquisition, go-to-market strategies, and access to a robust network of global co-investors.

    About Helsinki Partners

    Helsinki Partners is the investment promotion agency owned by the City of Helsinki. We have over a decade of experience in helping international companies set up or expand their business, find quality investment opportunities, and expand their network in the Nordics.

    About 90 Day Finn Program

    90 Day Finn program is an unique initiative run by Helsinki Partners and designed to immerse international business leaders, entrepreneurs, and innovators in Helsinki’s business ecosystem and Finnish culture. The program offers participants the chance to explore new market opportunities, network with industry leaders, and experience Finland’s renowned work-life balance. This year, the program welcomed its fourth cohort of participants and took place throughout the entire month of August.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Asia Pacific – Governments, tech experts gather to boost regional commitments towards digital inclusion and transformation – ESCAP

    Source: ESCAP, United Nations

    Policymakers and industry experts today underscored the critical need to bridge the vast digital divide in the region, further calling for breakthrough solutions, more harmonized policy frameworks and increased investments toward scalable innovations with sustainable development impacts.

    Organized by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), in partnership with the Government of Kazakhstan, the Asia-Pacific Ministerial Conference on Digital Inclusion and Transformation aims to promote more inclusive digital economies and societies in the region, as well as foster digital cooperation to bridge the digital divide, strengthen digital connectivity, ensure robust digital skills training, and enhance digital trust and security.  

    “Digital by default has become our norm. It is restructuring our economies, bringing new opportunities for value creation, and reweaving the fabric of society to help tackle some of our most persistent sustainable development challenges. At the same time, digital transformation intersects with economic, environmental and social risks of unseen complexity and uncertainty,” said United Nations Under-Secretary-General and ESCAP Executive Secretary Armida Salsiah Alisjahbana in her opening remarks.

    Underscoring the importance of digital transformation, Prime Minister of Kazakhstan Olzhas Bektenov shared, “These technologies open new horizons for business, education, and healthcare, ensure economic growth, and expand opportunities for millions of people. We are actively developing these areas. Digital inclusion is also a crucial element, without which it is impossible to achieve the set goals. Only through cooperation, the exchange of knowledge, and best practices can we ensure a sustainable and prosperous future for all. We are ready to share our experience and knowledge.”

    While 96 per cent of the population live in areas covered by mobile broadband networks, only one-third productively use Internet services. Up to 40 per cent of people lack access to the Internet, most of whom are from vulnerable and marginalized groups. This significant divide also runs along income, age, education, geographic and gender fault lines.

    Zhaslan Madiyev, Minister of Digital Development, Innovations and Aerospace Industry of Kazakhstan was elected as the Chair of the Conference. “Kazakhstan is firmly committed to advancing a sustainable digital future. Today, digital technologies are key tools for achieving the Sustainable Development Goals. We have made significant progress: in 2023, we provided 274 million online services, 93 per cent of which are accessible to our citizens directly from their homes. We are also implementing proactive services automatically provided by the government, with 44 such services already available and used more than three million times. Kazakhstan is proud to rank eighth in the UN’s online services index and is ready to continue introducing innovative solutions for the benefit of society.”

    On the opening day, ESCAP also launched its Asia-Pacific Digital Transformation Report 2024 which considers how digital transformations will structurally and irreversibly affect the trajectory of climate change. It presents 27 illustrative case studies demonstrating the power of digital applications for smarter climate actions – across infrastructure, governance, mobility, industry and trade, disaster risk reduction, agriculture and biodiversity ecosystems.

    The report reveals that as the use of more advanced digital technologies is scaled up, there is a turning point beyond which carbon emissions tend to decline. Furthermore, the increased use of AI-driven geospatial data analytics is improving the accuracy and timeliness of early warning systems, so that the right information reaches the right people at the right time, thus contributing towards climate adaptation and mitigation measures in many countries.

    Policymakers from over 30 countries as well as representatives from the tech industry, start-ups, academia, international organizations, youth, business and civil society are participating in the two-day Conference and its associated events.  The Conference is expected to culminate tomorrow with the adoption of the Astana Ministerial Declaration on Digital Inclusion and Transformation.

    On the sidelines of the Conference, the Government of Kazakhstan is also hosting the Kazakhstan Tech Solution Day on 5 September, which will highlight the country’s tech companies, start-ups and digital innovations, such as SmartBridge (service showcase), Smart Data Ukimet (smart data government), and eOtinish.

    For further information: https://www.unescap.org/events/2024/asia-pacific-ministerial-conference-digital-inclusion-and-transformation

    Read report: http://www.unescap.org/kp/2024/asia-pacific-digital-transformation-report-2024-digital-innovation-smarter-climate-action

    Watch the proceedings: 

    www.youtube.com/unescap

    The Economic and Social Commission for Asia and the Pacific (ESCAP) is the most inclusive intergovernmental platform in the Asia-Pacific region. The Commission promotes cooperation among its 53 member States and 9 associate members in pursuit of solutions to sustainable development challenges. ESCAP is one of the five regional commissions of the United Nations.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Asia-Pacific governments commit to collaborate on innovative solutions to bridge the digital divide and drive sustainability

    Source: ESCAP – United Nations

    Ministers and heads of digital technology agencies today endorsed the Astana Ministerial Declaration on Digital Inclusion and Transformation in Asia and the Pacific at the close of a high-level conference organized by the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Government of Kazakhstan.

    (ref. https://www.unescap.org/sites/default/d8files/event-documents/2400314E.pdf )

    Among others, the groundbreaking Declaration underscores the critical need to bridge the digital divide, strengthen digital connectivity, address and enhance digital trust, and promote inclusive and sustainable digital economies and societies leaving no one behind.

    “The Declaration is an important milestone that reaffirms the necessity of strengthening regional policy-making so that we increase momentum in identifying digital solutions and scaling up to bridge the digital divide,” said Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of ESCAP.

    While 96 per cent of the population in Asia and the Pacific live in areas covered by mobile broadband networks, it is estimated that only one-third productively use internet services. Up to 40 per cent lack basic digital skills.

    Endorsing the Declaration, Governments recognized the pressing need to overcome the major impediments that developing countries face in engaging with and accessing new technologies such as an appropriate enabling environment, sufficient resources, connectivity infrastructure and investments.

    They further emphasized the importance of enhancing secure and affordable access, and promoting digital literacy and education for all including youth, older persons, women, persons with disabilities, and remote and rural communities.

    “We are proud of this unique opportunity to showcase Kazakhstan’s achievements in digital government to the global community. The adoption of this Declaration reflects our shared commitment to creating an inclusive digital future for all,” said H.E. Zhaslan Madiyev, Minister of Digital Development, Innovations and Aerospace Industry of Kazakhstan, who also served as Chair of the conference.

    Ministers at the Asia-Pacific Ministerial Conference on Digital Inclusion and Transformation held on 3 – 4 September in Astana, welcomed further consideration of the proposal by the Government of Kazakhstan for a Digital Solutions Center for Sustainable Development. The proposed Centre is expected to strengthen coordination and cooperation among multiple stakeholders in the digital transformation process, as well as share practical digital solutions to advance the region’s sustainable development agenda.

    Delegates also reviewed the progress of other regional initiatives on digital cooperation, notably the Action Plan for Implementing the Asia-Pacific Information Superhighway Initiative, 2022-2026.

    On the sidelines, conference participants had the opportunity to explore a startup alley organized by Astana Hub, the largest technology park in Central Asia, where Kazakhstan’s top startups and major tech companies were showcased.

    ESCAP and the Eurasian Development Bank (EDB) also signed a Memorandum of Understanding at the conference to enhance institutional cooperation on regional economic integration and the 2030 Agenda for Sustainable Development. Under the agreement, ESCAP and EDB will carry out joint research and publications, capacity building support to policymakers and analysts in North and Central Asia as well as develop databases and analytical tools for policymakers in Asia-Pacific developing countries.

    For further information: https://www.unescap.org/events/2024/asia-pacific-ministerial-conference-digital-inclusion-and-transformation

    Read report: http://www.unescap.org/kp/2024/asia-pacific-digital-transformation-report-2024-digital-innovation-smarter-climate-action

    Read opinion piece “A sustainable future within reach: The promise of digital transformation”: https://unescap.org/op-ed/sustainable-future-within-reach-promise-digital-transformation

    Watch the proceedings: 

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Business – Blackstone Announces Agreement to Acquire AirTrunk in a A$24B Transaction

    Source: Blackstone

    SYDNEY – Funds managed by Blackstone Real Estate Partners, Blackstone Infrastructure Partners, Blackstone Tactical Opportunities, and Blackstone’s private equity strategy for individual investors, along with the Canada Pension Plan Investment Board (“CPP Investments”), have entered into a definitive agreement to acquire AirTrunk, the leading Asia Pacific data center platform, from Macquarie Asset Management and the Public Sector Pension Investment Board, for an implied enterprise value of over A$24 billion1. This represents Blackstone’s largest investment in the Asia Pacific region. The transaction is subject to approval from the Australian Foreign Investment Review Board.

    AirTrunk is the largest data center platform in the Asia Pacific region, with a sizeable presence in Australia, Japan, Malaysia, Hong Kong, and Singapore. It has more than 800MW of capacity committed to customers and owns land that can support over 1GW of future growth across the region.

    Jon Gray, President and Chief Operating Officer of Blackstone, said: “This is Blackstone at its best – leveraging our global platform to capitalize on our highest conviction theme. AirTrunk is another vital step as Blackstone seeks to be the leading digital infrastructure investor in the world across the ecosystem, including data centers, power and related services.”

    Sean Klimczak, Global Head of Blackstone Infrastructure and Nadeem Meghji, Global Co-Head of Blackstone Real Estate, said: “Digital infrastructure is experiencing unprecedented demand driven by the AI revolution as well as the broader digitization of the economy. Prior to AirTrunk, Blackstone’s portfolio consisted of US$55 billion of data centers including facilities under construction, along with over US$70 billion in prospective pipeline development. We look forward to partnering with the outstanding AirTrunk management team to further accelerate its growth.”

    Robin Khuda, Founder and Chief Executive Officer of AirTrunk, said: “This transaction evidences the strength of the AirTrunk platform in a strong performing sector as we capture the next wave of growth from cloud services and AI and support the energy transition in Asia Pacific. We look forward to working with Blackstone and CPP Investments and benefitting from their scale capital, sector expertise and valuable network across the various local markets, which will help support the continued expansion of AirTrunk.”

    It is expected that there will be approximately US$1 trillion of capital expenditures in the United States over the next five years to build and facilitate new data centers, with another US$1 trillion of capital expenditures outside the United States. Blackstone is capitalizing on this movement as a leading investor globally in data centers. Blackstone has invested in both the debt and equity of other data center companies, including as owner of QTS, the fastest growing data center company in the world, Coreweave and Digital Realty. Blackstone is also focused on addressing the sector’s power needs in many differentiated ways, including as an investor in power and utility companies, such as Invenergy, the largest independent renewables developer in the United States.

    About Blackstone
    Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than US$1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

    1 Including capital expenditure for committed projects

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Australia – Mental health suffers as small businesses grapple with economic climate and unexpected expenses – CBA

    Source: Commonwealth Bank of Australia (CBA)

    CommBank launches additional features and support as small to medium business owners face continued economic challenges.

    New research commissioned by CommBank has shown more than half of Australian small and medium-sized businesses (SMEs) are feeling the stress of navigating the cost-of-living crisis, with 52 per cent of business owners and senior managers reporting their mental health had been impacted in the last 12 months by the economic climate.

    The research revealed nearly two thirds (65 per cent) of surveyed businesses had to deal with unexpected expenses over the past year, totalling $7.3 billion in costs they didn’t see coming.

    The most common areas of unexpected expenses were equipment repairs and replacements (48 per cent), higher supplier costs (33 per cent) and increased utilities costs (32 per cent). On average, small to medium businesses have had to pay around $4,300 in unexpected expenses.

    CBA’s Executive General Manager Small Business Banking, Rebecca Warren, said Australian small businesses were showing incredible resilience in the face of tough economic conditions.

    “Running a small business is hard yakka and right now, it’s tough. Rising costs of doing business and unexpected expenses can have a big impact when money is already tight.

    “Our priority is to ensure those who need support understand what measures are available such as business overdrafts, invoice financing or flexible repayment plans.

    “We have been reaching out proactively to hundreds of thousands of our small business customers to check in on them, to make sure they are receiving the support they need, and that they are aware of some our tools that can help them to run their business.

    “We offer free comprehensive cash flow tracking capabilities via a Business Cash Flow tool in the CommBank app, which offers monthly summaries of incoming and outgoing cash flow, month-by-month breakdowns and real-time transaction history to help small businesses easily track their finances. We also have an app feature called Bill Sense that predicts future bills to help customers and a free business insights tool called Daily IQ.

    “From next week, we’re launching a partnership with Smiling Mind, a not-for-profit mental health organisation focused on building mental fitness skills, to provide small business owners with access to mental wellbeing programs, tools and preventative strategies in maintaining their mental health.”

    This Smiling Mind mental fitness program is specifically designed to promote mental wellbeing with a focus on businesses. It will be available in the Smiling Mind app from next month and will be accessible by anyone.

    Smiling Mind’s CEO, Sarah La Roche, said: “Amid the additional challenges of economic uncertainty and declining mental health, Smiling Mind is proud to partner with CommBank to provide Australian business owners, leaders and employees with practical support, freely accessible within the Smiling Mind app to promote mental fitness at work. These resources will be available anytime, anywhere, with no barriers to access.”

    With more than half of business owners and senior managers reporting their mental health had been impacted in the last 12 months by the economic climate, Ms Warren said CommBank recognised the scale of the impact.

    “Small business owners are extremely time-poor, they have multiple plates spinning at any given time, which makes prioritising their own mental health and well-being more challenging.”

    CBA has a range of products, services and assistance measures designed to back small businesses and help them through the challenging economic conditions. For more information, please visit: commbank.com.au/smallbusiness

    CBA also offers the Cyber Wardens program, in partnership with the Council of Small Business of Australia (COSBOA) and Telstra, to help small businesses build resilience and upskill in cyber safety.

    About YouGov research

    All figures, unless otherwise stated, are from YouGov. Total sample size was 510 adults. Fieldwork was undertaken between 1 – 7 August 2024. The survey was carried out online. The figures have been weighted and are representative of all Australian small and medium business owners and decision makers (aged 18+).

    About Smiling Mind

    Smiling Mind has been at the forefront of mental wellbeing innovation for over 12 years, helping minds thrive with evidence-based tools and resources. Smiling Mind are proud to have impacted the lives of millions of people globally. Their mission is Lifelong Mental Fitness. They aim to create generational change in mental health, providing proactive tools and programs that help every mind thrive.

    About the Partnership

    Smiling Mind’s partnership with CommBank will deliver a campaign specifically targeted at Australian small business owners, leaders and employees. They will be able to freely access a new collection in the Smiling Mind App, designed specifically to build mental fitness and support people to thrive at work. This proactive resource, available 24/7, provides practical support and guided strategies to promote mental fitness and navigate challenges.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Tech Security – Study: Global online privacy and cybersecurity awareness continues to decline

    Source: NordVPN

    The most cybersecurity-aware country this year is Singapore.
    People ages 30-54 have the best cybersecurity skills.
    Only 6% of people globally know what privacy issues to consider when using AI for work.

    The world’s online privacy and cybersecurity awareness continues to decline, according to new research by the cybersecurity company NordVPN. Based on 31 analyzed markets with the highest numbers of responses, people globally knew best how to create strong passwords (96%), and they were worst with questions related to privacy issues that go hand in hand with AI usage for work (52%).  

    The annual National Privacy Test (NPT) is a global survey aimed to evaluate people’s cybersecurity, online privacy awareness, and educate the general public about cyber threats and the importance of data and information security in the digital age. It gathered 25,567 responses from 181 countries this year.

    “As the digital threat landscape evolves faster than ever, it is important that internet users understand the significance of safeguarding their personal information. The National Privacy Test takes the responsibility to educate people globally about cyber threats and equip them with essential tips to protect against fraud, data harvesting, surveillance, and other online dangers,” says Marijus Briedis, chief technology officer (CTO) at NordVPN.

    These countries rank in the top three for internet privacy and cybersecurity awareness:

    Singapore (62/100)
    Finland and Lithuania (61/100)
    Germany and the United States (60/100)

    Compared to 2023, less people understand the security benefits of updating apps

    The results of the test showed that people globally are also good at dealing with suspicious streaming service offers (95%), and they know which permissions to grant to different apps (91%).

    On the other hand, people globally also did not know what data ISPs collect as part of the metadata (13%), or how to secure their home Wi-Fi network (16%), most likely considering it safe by default.

    Among all respondents, 1% are Cyber Wanderers (barely know anything about internet privacy and cybersecurity), while the biggest proportion (66%) scored 50-74 points and were identified as Cyber Adventurers.

    Compared to 2023, less people understand the security benefits of updating apps as soon as the update is available. While in 2023, 69% said they update an app as soon as an update is available, this year, it’s 56%.

    Steps to increase online security and privacy

    Marijus Briedis from NordVPN shares a series of steps people can take to enhance their online privacy and security:

    Create unique and strong passwords. Use unique and robust passwords for each of your online accounts.
    Enable multi-factor authentication (MFA). Strengthen your account security by enabling multi-factor authentication.
    Keep your software up to date. Regularly update your software, operating systems, and applications.
    Use a virtual private network (VPN). Always use a VPN to encrypt your internet connection, safeguarding your personal information from potential eavesdroppers.
    Review privacy settings. Regularly review and adjust privacy settings on social media platforms, mobile apps, and other online services.

    Methodology can be found here: https://nordvpn.com/blog/national-privacy-test-us-2024/

    ABOUT NORDVPN

    NordVPN is the world’s most advanced VPN service provider, chosen by millions of internet users worldwide. The service offers features such as dedicated IP, Double VPN, and Onion Over VPN servers, which help to boost your online privacy with zero tracking. One of NordVPN’s key features is Threat Protection Pro, a tool that blocks malicious websites, trackers, and ads and scans downloads for malware. The latest creation of Nord Security, NordVPN’s parent company, is Saily — a global eSIM service. NordVPN is known for being user friendly and can offer some of the best prices on the market. This VPN provider has over 6,400 servers covering 111 countries worldwide. For more information, visit  https://nordvpn.com.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Tech News – Huawei to Support TowerCos’ Energy Quest, Diversification in Africa

    Source: Huawei

     

    Nairobi, Kenya – [September 11, 2024] – Huawei, a global leader in telecommunications and digital solutions, has announced its commitment to support Tower Companies (TowerCos) across Africa in their efforts to diversify energy sources and adopt sustainable practices in powering telecommunications infrastructure.

     

    The initiative aims to help TowerCos reduce their carbon footprint, enhance operational efficiency, and explore new business frontiers.

     

    In his speech titled: “Lighting Up the Road to Multiple Business Future for TowerCos“ delivered at the TowerXchange Meetup Africa 2024 in Nairobi, Li Shaolong, President of Huawei Site Power Facility Domain, said African continent is accelerating the construction of ICT infrastructure, and towercos, which play an important role in this process, are facing new challenges and opportunities.

     

    “As the demand for mobile connectivity continues to rise, TowerCos face increasing pressure to ensure energy reliability and sustainability, particularly in regions with limited access to stable power grids. Tower sites, often located in remote areas, rely heavily on diesel generators, which are costly to operate, environmentally unfriendly, and vulnerable to fuel supply challenges. Huawei’s energy solutions are designed to address these challenges by integrating renewable energy technologies, such as solar power, and advanced energy storage systems,” Mr. Li said.

     

    Mr. Li emphasized Huawei’s long-term vision to help Africa’s TowerCos transition towards greener energy solutions, adding that by integrating digital and power electronics technologies, Huawei Site Power Facility remains committed to providing towercos with end-to-end energy infrastructure and intelligent O&M solutions.

     

    A Path to Diversification

    In addition to energy sustainability, Huawei aims to support TowerCos in their diversification strategies, enabling them to explore new business models and revenue streams.

     

    “This will drive towercos to become energy producers through innovative solutions and business models, thereby achieving diversified business development, revenue growth, and continuous success in energy operations.” Mr. Li said.

     

    Mr. Li noted that by deploying Huawei eMIMO smart power solution, towercos can centrally manage multiple energy inputs (such as grid, PV and energy storage) and multiple outputs (such as 12 V to 220 V electrical devices) through a single power platform.

     

    “In this way, revenue-generating services such as environmental protection and emergency response can be developed in addition to communications services,” he said.

     

    He further noted that the major aims of Huawei Site Power Facility Domain are to support network evolution and increase tenancy ratio, help TowerCos Reduce energy costs and achieve green development, and improve power availability (PAV) and reduce O&M costs for sites.

     

    “Huawei will continue to work with towercos to innovate and promote the iteration of energy infrastructure towards “green, simple, and intelligent”, accelerating the construction of African carrier networks and digital Africa,” Mr. Li said. 

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Economy – GlobalData raises global economic growth projection for 2024 to 2.52%

    Source: GlobalData

    The global economy is navigating through a complex landscape marked by persistent geopolitical tensions. Nevertheless, easing inflationary pressure, central bank rate cuts (including by the ECB), and stronger consumer spending are mitigating these issues. 

    Against this backdrop, GlobalData, a leading data and analytics company, has revised the global economic growth forecast for 2024 to 2.52% in its Q3 2024 update, marking a slight increase of 0.05 percentage points (pp) from earlier projections in Q2 2024.

    In the “Global Macroeconomic Outlook – Q3 2024 Update,” GlobalData has revised economic growth projections for the Americas and Europe upward. The Americas’ forecast increased by 0.11 pp to 2.16%, driven by strong consumer spending, easing inflation, and rising real incomes. Increased private domestic business investments are also expected to support the region’s economic resilience. 

    Europe’s growth projection rose by 0.21 pp to 1.38%, supported by higher real disposable incomes from stable wage growth and lower inflation, along with the recent ECB rate cuts, which are expected to stimulate the economic activity.

    Conversely, forecasts for the Asia-Pacific (APAC) region and the Middle East & Africa (MEA) were reduced by 0.08 and 0.25 pps, respectively, to 2.59% and 3.57%. In MEA, the ongoing conflicts, oil market volatility, and shipping disruptions hinder the growth. For APAC, China’s economic slowdown, domestic challenges, and geopolitical tensions contributed to the downward revision.

    Arnab Nath, Associate Project Manager, Economic Research Team at GlobalData, comments: “The slight upward revision in the global growth forecasts for 2024 reflects cautious optimism amid persistent geopolitical tensions. The resilience of key economies, including the US, which witnessed economic growth of 3% on an annual basis in Q2 2024 up from 1.4% in Q1, and the Eurozone, which achieved its strongest expansion in over a year at 0.6% in Q2 2024, contributes to this positive outlook.

    “Gradual recoveries in the emerging markets will further bolster the projections. The major central banks, including the ECB, have commenced rate cuts, with the US Federal Reserve anticipated to follow suit, which may stimulate investments. However, central banks must tread carefully to avoid reigniting inflation or creating financial imbalance to ensure a balanced economic recovery.”

    GlobalData forecasts the global inflation rate to decrease from 5.8% in 2023 to 4.5% in 2024, with a further decline to 3.7% anticipated by 2025. In 2024, the inflation rate is expected to decrease in all regions: the Americas, excluding Argentina and Venezuela (dropping to 5% in 2024 from 7.5% in 2023), Asia-Pacific (decreasing to 5% from 6.9%), Europe (declining to 4.3% from 7.8%), and the Middle East and Africa (falling to 22.1% from 27%).

    Easing price pressure boosted the economic sentiment in major economies. According to GlobalData analysis using data from OECD, between January and June 2024, consumer and business confidence have risen considerably compared to the average of the previous six months in major economic groups, including the G20 and G7 countries. The rise in consumer confidence indicates robust consumer spending potential, which could bolster domestic demand and economic resilience.

    Meanwhile, global political shifts indicated by the 2024 election cycle will have economic implications, including changes in trade policies, regulatory frameworks, and market stability. Far-right gains in Europe could result in protectionist measures, affecting international trade.

    In South Korea and the UK, liberal victories may bring reforms that encourage foreign investment and market liberalization. Declining support for ruling parties in India and South Africa suggests potential instability, while voter dissatisfaction in Russia and Bangladesh signals economic uncertainty in these regions. These changes are likely to test global economic resilience.

    Nath concludes: “While global growth is expected to remain stable, varying regional dynamics and persistent risks from geopolitical tensions may significantly shape the economic outlook for 2024 and 2025, necessitating careful observation of policy shifts and market trends.”

    Notes

    Quotes provided by Arnab Nath, Associate Project Manager, Economic Research Team at GlobalData
    The information is based on GlobalData’s latest report: Global Macroeconomic Outlook – Q3 2024 Update (ref. https://www.globaldata.com/store/report/global-pestle-macroeconomic-analysis/?utm_source=cision&utm_medium=press%20release&utm_campaign=gd_press%20release_cision_bf_global%20economy_report )

    About GlobalData

    4,000 of the world’s largest companies, including over 70% of FTSE 100 and 60% of Fortune 100 companies, make more timely and better business decisions thanks to GlobalData’s unique data, expert analysis, and innovative solutions, all in one platform. GlobalData’s mission is to help our clients decode the future to be more successful and innovative across a range of industries, including the healthcare, consumer, retail, financial, technology, and professional services sectors.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Energy Sector – Reducing emissions from the Troll field – Equinor

    Source: Equinor

    On Saturday, 7 September, Troll B and C became partly powered from shore. This reduces annual emissions from the Norwegian continental shelf (NCS) by 250,000 tonnes of CO2.

    This is in line with the plan for development and operation (PDO) for Troll West electrification (TWEL), which was approved by Norwegian authorities in 2021.

    “Troll B and C electrification marks an important milestone in the efforts to halve the emissions from our operations by 2030. The project reduces CO2 emissions by the equivalent of those from 125,000 fossil-fuelled cars,” says Geir Tungesvik, executive vice president for Projects, Drilling & Procurement.

    The power to Troll B and C comes from Kollsnes, northwest of Bergen. From here it runs through a new electro building shared by the Troll and Oseberg fields out to Troll B in a 132 kV power cable, and from there to Troll C.

    The project has installed new modules on Troll B and C that adjust the voltage to the systems on board. The processing systems and other energy-intensive systems on both platforms are now driven by electricity, except for the large export compressors, which are still gas-powered.

    “Troll West electrification has generated substantial business activity for Norwegian suppliers. Over 70 percent of the investments in the project have gone to companies in Norway. I am very pleased that we, along with our partners and suppliers, have succeeded in executing the project in a safe and effective manner,” Tungesvik says.

    The CO2 reduction is equivalent to about half a percent of Norway’s total annual emissions. NOx emissions from the field are also reduced by around 850 tonnes per year. Gas burned in turbines to provide energy on the platforms can now be exported and more efficiently used in Europe.

    “We have made several new discoveries in the Troll and Fram area in recent years. Thanks to Troll B and C electrification we can develop and produce these resources with very low emissions. The Troll area will continue to deliver large volumes of low-carbon, high-value energy for many years to come,” says Kjetil Hove, Equinor’s executive vice president for Exploration & Production Norway.

    The TWEL project is continuing to fully electrify the Troll C platform so that all power needs are met with electricity from land. The measure will cut annual emissions by another 200,000 tonnes of CO2. Overall, this will help cut almost four percent of the total emissions from oil and gas production, around one percent of total emissions in Norway.

    Infrastructure at Kollsnes and the cable to the platform are designed for a possible future full electrification also of Troll B.

    The Troll A platform (Troll East) was the first platform to be powered from shore on the NCS, and has been electrified since start-up in 1996.

    Facts

    The licensees in Troll Unit are Equinor 30.6% (operator), Petoro 56%, A/S Norske Shell 8.1%, TotalEnergies 3.7% and ConocoPhillips Skandinavia AS 1.6%.

    Aker Solutions AS has built three electro modules at its Stord yard and been responsible for the procurement and installation of all electrical equipment in the modules and in the new electro building at Kollsnes.

    In addition, Aker Solutions has been responsible for all modification work on Troll B and C and all hook-up to existing operating systems both offshore and at Kollsnes.

    Heavy lifts of modules were performed by Heerema.
    For the Kollsnes sub-project, the main supplier is Skanska Norge AS, responsible for constructing the transformer substation and landfall area.
    Total investments in the project are NOK 8.1 billion.
    Aker Solutions’ contract is worth about NOK 2.9 billion, generating about 1000 person-years (FTE) of employment.
    The module fabrication took place at the Stord yard. Aker Solutions estimates that 4000 people were involved in the work.
    NKT has been responsible for the production and installation of the power cable. NKT’s contract is worth NOK 1 billion. The cable production was carried out at NKT’s facility in Karlskrona, Sweden.
    Skanska Norge AS’s contract is worth around NOK 370 million and generated about 100 person-years of work (FTE) for Skanska and sub-contractors in the project period.
    The power demand for Troll B and C will be up to 116 MW after full electrification of Troll C.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Australia – Tools, ties and taverns: early Father’s Day boosts household spending in August – CBA

    Source: Commonwealth Bank of Australia (CBA)

    The CommBank Household Spending Insights Index saw the impact of energy rebates lower spending on Utilities, while university and school fees drove up Education spending.

    The CommBank Household Spending Insights (HSI) Index rose by 1.8 per cent in August to 154.3 as consumers splurged in the lead-up to an early Father’s Day.

    Ten of the 12 spending categories rose in the month, with Hospitality (+5.2 per cent) and Household Goods (+4.4 per cent) leading the way as consumers spoilt Dad at hardware stores, department stores and men’s clothing stores. Restaurants, pubs, taverns and bars and event hire saw a jump in spending in August.

    University and school fees paid in August led to a jump in spending on Education (+3.6 per cent), while Food & Beverage goods (+1.2 per cent), Household Services (+1.8 per cent), and spending on Motor Vehicles (+1.4 per cent) also rose.

    The annual pace of spending in the year to August remains subdued at 3.7 per cent for the year.

    “An early Father’s Day boosted spending in August as consumers appear to have lifted spend on household goods, while hospitality venues also saw people open their wallets during the month. The last time Father’s Day fell so early in the year spending retreated in September, which is worth keeping in mind as the annual spending rate still suggests a relatively weak consumer,” CBA Chief Economist Stephen Halmarick said.

    The biggest spending falls in the month were Utilities (-0.3 per cent) and Transport (-0.3 per cent) as government rebates on electricity and lower petrol prices offered some relief to consumers. This led to notable shifts in spending across home ownership status as renters saw an uptick in the annual rate of spending to 1.3 per cent, while those with a mortgage (+2.8 per cent) and outright owners (+1.8 per cent) saw a slowdown in spending compared to July.  

    “For the first time in August we saw the impact of the various government electricity rebates on wallets which can be seen by the decreased spending on utilities. This, coupled with increased education spend, impacted spending across home ownership categories as we saw a jump in spending by renters likely due to university fees, while outright owners benefited from reduced spend on utilities as this is typically a larger share of their wallet,” Mr Halmarick said.

    “While the earlier timing of Father’s Day has added some complexity to the data, we still anticipate that softer economic conditions, easing inflation, and rate cuts by other central banks will prompt the RBA to lower interest rates later in 2024. However, there is a possibility of delays pushing this into early 2025.”

    The CommBank HSI Index tracks month-on-month data at a macro level and is based on de-identified payments data from approximately 7 million CBA customers, comprising roughly 30 per cent of all Australian consumer transactions.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: African Youth Urged to Embrace Engineering to drive development

    Source: Media Fast

    “Africa’s future depends on its youth embracing engineering, which lies at the core of solving the continent’s most pressing challenges” – Eng. Maureen Mwaniki, Director of Public Affairs and Policy at Huawei Kenya.

    September 13, 2024 – Africa’s youth have been called upon to embrace engineering as a key driver of development and innovation across the continent.

    Speaking at the 10th annual UNESCO Africa Engineering Week – High-Level Workshop held in Nairobi – Kenya on September 12, 2024, Eng. Maureen Mwaniki, Director of Public Affairs and Policy at Huawei Kenya, said the shortage of engineers in Africa, and the rest of the world was a cause for concern.

    “There has been declining interest in the profession from the youth, with the enrolment of young people, especially women in the profession dwindling. The continent is facing a situation where there are a lot of older more experienced engineers, but not enough young candidate engineers entering the profession. Our ability to sustain the profession lies in the number of young people choosing engineering as a career,” Eng. Mwaniki said.

    She noted that Africa’s future depends on its youth embracing Science, Technology, Engineering and Mathematics (STEM) education, particularly engineering, which lies at the core of solving the continent’s most pressing challenges.

    “The growing need for infrastructure, clean energy, and climate resilience offers a unique opportunity for engineers to shape Africa’s path toward sustainable growth.  But more efforts need to be put in attracting younger people, especially women, to the profession,” Eng. Mwaniki said.

    “Women, in particular, need to step out of their comfort zones and grab the opportunities that are offered by companies such as Huawei. Programs like Seeds for the future, ICT Competition, Women Collaboration programs with our partners, etc will help expose the Women Engineers to advanced technologies that can enable them to create solutions for their country.”

    The Africa Engineering Week provides a platform for government representatives, industry leaders, and academia to discuss policy frameworks and partnerships that can accelerate engineering education and innovation on the continent.

    Celebrated across the region every year, UNESCO Africa Engineering Week promotes engineering solutions and awareness among students, society and policy-makers. It aims to inspire and educate youth and the public on the vital role of engineers in societies.  

    This year’s edition is hosted by the Ordem dos Engenheiros de Angola in Luanda, Angola, and organised jointly by UNESCO, the World Federation of Engineering Organizations (WFEO) and the Federation of African Engineering Organisations (FAEO).

    It will include the 8th Africa Engineering Conference, the 7th Africa Women Engineers Forum, the Young Engineers Forum and a Business-to-Business (B2B) session. These events will focus on sustainability and innovative infrastructures; engineering and acceleration of African Continental Free Trade Area (AfCFTA) implementation; and engineering education and capacity building.

    “This year’s theme, ‘Engineering and for Sustainable Development’, highlights the urgent need for technical solutions to address challenges such as climate change, infrastructure development, and digital transformation,” Eng. Mwaniki said.

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Australia – Businesses increase asset investment despite economic uncertainty – CBA

    Source: Commonwealth Bank of Australia (CBA)

    CBA data shows small and medium-sized businesses are taking a long view on the economy, investing in their productive capacity.

    Businesses are continuing to invest in their operations despite the slower economy, with data from the Commonwealth Bank of Australia’s business bank showing a 15 per cent uplift in vehicle and equipment financing compared to the same period last year.1

    Motor vehicle purchases have been a key driver (up 55 per cent), as supply chains continue to improve post-Covid and new stock becomes available. Among this category, loans for hybrid vehicles increased fivefold (533 per cent) in the past financial year, and electric vehicles were up 254 per cent. Financing for light commercial vehicles such as utes, vans and light trucks – a category that is particularly popular with small business customers – rose 27 per cent.

    Businesses are also investing in shop and office fit-outs, with financing for shelving and furniture fittings up 25 per cent.

    Financing activity has been particularly strong in areas like Health & Community services (up 35 per cent), Education (up 24 per cent) and Manufacturing (18 percent).

    “Australia’s economic fundamentals are sound, and there are reasons for optimism about the future, but inflation and other global risks contribute to uncertainty that’s rightly prompting business owners to take steps to ensure their operations are future-fit and resilient,” said Grant Cairns, Executive General Manager Business Lending at Commonwealth Bank.

    “While companies are navigating ongoing pressure from rising cost of doing business, we are seeing many business owners taking the long view on the economy and investing in their operations.”

    As motor vehicles are one of the most common asset investments for small and medium-sized businesses, CommBank has collaborated with Carsales to launch a car buying service via the CommBank app or Netbank to help make finding and financing a car or electric vehicle easier for both business owners and individuals.

    A ute with equipment tray parked next to a construction site

    “We are very focused on ensuring access to capital to help drive productive capacity across the country,” Mr Cairns said.

    “For small and medium-sized businesses, this means making it simpler and easier to access funds and we’ve cut our funding time-to-decision by 20 per cent to provide that support faster.”

    Mr Cairns said the bank has also worked to automate and digitise its business lending products, including business overdrafts, which are now available to eligible small business customers via a fully automated online application process that can see funds credited to their account in as little as eight minutes.

    Still, Mr Cairns said, while many businesses were looking to invest, that wasn’t the case for all, and some businesses were doing it tough amid higher cost of living.

    “While there are these pockets of strength and optimism across the economy, we know that the economic climate is challenging some businesses more than others, and we have tailored support available for those who are doing it tough.

    “We have been proactively reaching out to hundreds of thousands of our business customers to check in on them and ensure that those who need support know how to access it and understand what measures are available and that we’re here to help,” he said.

    CBA has a range of measures are available for those who need support including deferred business loan repayments or debt restructuring. More information is available on our website.

    Businesses seeking support can speak to their Relationship Manager or call CBA’s dedicated Business Financial Assistance team, available 24/7, on 13 26 07.
     

    Footnote:

    [1] CBA asset finance data FY24 vs same period of FY23

    MIL OSI – Submitted News –

  • MIL-OSI Submissions: Pacific Resources – Cook Islanders don’t support deep seabed mining

    Source: Te Puna Vai Marama

    A recent opinion poll carried out in the Cook Islands showed that 66% of residents do not support deep seabed mining, and 49% do not support exploration.

    The poll which was carried out last week by Te Puna Vai Marama, the Cook Islands Centre for Research, had 771 valid responses. Slightly more women than men took part.  There was a wide age range of Cook Islands residents who took part – from teenagers to those in their eighties.

    • Of those who do not support seabed mining their major reason was that mining may disrupt the habitat of animals in the deep sea
    • Of those who support seabed mining, understandably, the economy was the main concern
    • 85% of  respondents agreed that the deep ocean held cultural and spiritual significance for Cook Islanders.

    The Cook Islands has extensive coverage of polymetallic nodules in its exclusive economic zone.  If harvested, these minerals could be used to make renewable energy infrastructure, such as turbines, cars and electronic devices.

    Currently, the Cook Islands is in a deep seabed exploration phase.  The Government has permitted three companies to research whether these minerals and metals could be mined economically. If so, they may be awarded a license allowing them to begin mining the seabed in the Cook Islands Exclusive Economic Zone.

    At the same time, the deep sea is an untouched ecosystem, about which scientists agree that little is still known. Some marine scientists warn that industrial scale deep-seabed mining could disrupt biodiversity at the bottom of our oceans and have far- reaching harmful effects.

    Professor Heather Worth, Director of Te Puna Vai Marama, the Cook Islands Centre for Research said, “we are quite surprised by the results. We didn’t realise how many Cook Islanders are worried about the effect of seabed mining on the environment and who care deeply about the deep ocean”.

    Further results will be made public as Te Puna Vai Marama analyses the data.

    MIL OSI – Submitted News –