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Category: China

  • MIL-OSI Russia: Artificial Intelligence Can Become a Catalyst for Sustainable Development

    Translation. Region: Russian Federal

    Source: State University Higher School of Economics – State University Higher School of Economics –

    Artificial intelligence is transforming all areas of life, expanding our capabilities and boundaries. At the same time, technology is throwing up new challenges to humanity related to safety, ethics, and environmental protection. Today, every neural network leaves behind a large carbon footprint. However, with proper management, AI can benefit the planet and become the key to a sustainable economy of the future. This was explained by the scientific directorLaboratory of Algorithms and Technologies for Network Structure Analysis at the National Research University Higher School of Economics in Nizhny Novgorod Panos Pardalos in the framework XXV Yasinsky (April) International Scientific Conference on Problems of Economic and Social Development.

    Today, the world is experiencing the fourth industrial revolution, the main character of which is artificial intelligence. Like electricity during the last revolution, AI has taken a dominant position among all technologies. Many countries, such as the United States, China, France, Canada, etc., have included the development of machine learning technologies among their national priorities, thereby emphasizing the importance and prospects of this area.

    “We talk a lot about artificial intelligence today. It’s amazing how much technology has expanded our biological capabilities in the field of vision, hearing, our cognitive abilities. I think it would be more correct to call these developments not artificial intelligence, but augmented intelligence,” said Panos Pardalos. “Telescopes, sensors, brain-computer interfaces, the metaverse, ChatGPT — all these impressive achievements are based on complex mathematics and optimization algorithms.”

    According to Professor Pardalos, the widespread adoption of technology and automation, on the one hand, can bring enormous benefits to the global economy and welfare, but on the other hand, it is associated with serious problems in terms of resource use. For example, machine learning technologies are associated with colossal amounts of energy consumption.

    “We often forget the price we pay for technology. Machine learning algorithms have incredible computing power, but they require equally incredible amounts of electricity. The carbon footprint of training a single model is comparable to the emissions of several cars over their entire service life,” the researcher emphasized.

    Other problems highlighted by the scientist include recycling electronic equipment and mining rare earth metals. The metals themselves are necessary for the production of green technologies (electric vehicle engines, wind generators, energy-saving lamps), but their mining is not environmentally friendly and is detrimental to the environment.

    According to dataresearch 2023, the Earth has already crossed 7 of 8 possible boundaries of safe human life on it, including emissions of hazardous substances into the atmosphere, reduction of biodiversity, climate change, etc. At the same time, Panos Pardalos believes that it is artificial intelligence that can become the key to a sustainable economy of the future.

    “We already have all the necessary technologies for developing a sustainable economy, and with the right policy, AI can become a key factor in the transition to it. The use of nuclear and renewable energy, waste recycling, digital twins of enterprises, the creation of energy storage facilities, the development of new materials – all this is possible today. Of course, the price of implementing new solutions is quite high. Political will and a number of educational, enlightening measures are needed to use the opportunities that AI gives us with maximum benefit,” concluded Panos Pardalos.

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

    MIL OSI Russia News –

  • MIL-OSI Asia-Pac: 2025 Taiwan International Geothermal Conference A New Era of Geothermal Energy: Technological Innovation and Sustainable Development

    Source: Republic of China Taiwan

    The 2025 Taiwan International Geothermal Conference, hosted by the Ministry of Economic Affairs, is taking place from April 24-25 in Taipei. Now in its third edition, the conference brings together leading geothermal experts, government representatives, and industry leaders from the United States, New Zealand, Canada, the Philippines, and other countries to explore cutting-edge technologies and the future development of geothermal energy. Held in a hybrid format with both in-person sessions and online streaming, the conference has attracted more than 700 participants from around the world, including representatives from academia, industry, government, and research institutions. The event aims to advance Taiwan’s geothermal industry and enhance its global competitiveness in the green energy sector.

    Government Drives Geothermal Development and Industry Collaboration Shapes a Sustainable Future
    In his opening remarks, Vice Minister of Economic Affairs Lai Chien-Hsin emphasized that amid the global climate change, the government is committed to implementing a range of carbon reduction measures to ensure sustainable energy transition. Promoting renewable energy, he noted, is critical to achieving these goals.

    Vice Minister Lai highlighted geothermal energy’s pivot role in Taiwan’s energy transition. With Taiwan’s favorable geological conditions, it has completed the construction of six geothermal power plants. This year, more geothermal power plants will be connected to the grid. He sincerely welcomes all geothermal scholars, developers and experts to participate in 2025 Taiwan International Geothermal Conference, believing that through collaboration between international enterprises and local Taiwanese companies, they can contribute to achieving net-zero emission goals and jointly address the challenges of extreme climate.

    International Experts Convene to Foster Technology Exchange and Industry Collaboration
    The conference features a broad range of topics, including the status of geothermal energy development in Taiwan, international industry trends, advanced technologies and innovative applications, and the role of local governments in promoting geothermal power development. The Energy Administration and the Geological Survey and Mining Management Agency presented Taiwan’s geothermal policies and exploration progress. Meanwhile, the CPC Corporation and Taiwan Power Company delivered special reports on development strategies and recent technical breakthroughs, which have attracted investment interest from domestic and international companies.

    Afternoon sessions focused on cutting-edge project management and international drilling experiences, exploring how to leverage advanced technology and optimized practices to support local developers, accelerate geothermal plant construction, and enhance industry competitiveness.

    High-Level Dialogue on the Future of Geothermal Energy and Strengthening International Partnerships
    The first day of the conference concluded with a high-level dialogue moderated by the Acting Director-General of the Energy Administration Lee Chun-Li joined by representatives from the global geothermal industry, research institutes, and government sectors. The discussion centered on “The Future Outlook for Geothermal Power in Taiwan,” highlighting strategies to attract international investment, expand the geothermal industry value chain, and strengthen Taiwan’s presence in the global green energy market.

    Workshops and Site Visits Promote Practical Engagement
    On April 25, the second day of the conference, three professional workshops will be held on “Geothermal Drilling Technology,” “Development Solutions,” and “Exploration and Equipment Applications.” The conference will also feature a technical site visit for international guests to CPC Corporation’s Yuanshan No.1 Well, Taiwan’s first deep geothermal exploratory well. Jointly developed by Academia Sinica and CPC and currently drilled to a depth of 1,820 meters, this well marks a key milestone for Taiwan’s deep geothermal progress, offering international stakeholders a firsthand look at Taiwan’s geothermal potential and supportive development environment.

    Through this international platform, Taiwan aims to strengthen global partnerships, foster innovation, accelerate the growth of its geothermal sector, and advance toward the long-term goal of sustainable energy.

    Spokesperson:
    Mr. Chih-wei Wu, Deputy Director General, Energy Administration, Ministry of Economic Affairs
    Tel: +886-2-2775-7750 / +886-922-339-410
    Email: cwwu@moeaea.gov.tw

    Contact Person:
    Ms. Hsiu-fen Tsai, Director, Energy Administration, Ministry of Economic Affairs
    Tel: +886-2-2775-7730
    Email: hftsai@moeaea.gov.tw

    MIL OSI Asia Pacific News –

  • MIL-OSI China: China speeding up standard-setting for autonomous driving safety

    Source: People’s Republic of China – State Council News

    BEIJING, April 29 — China will accelerate the development of mandatory national standards in its quest to improve autonomous driving safety, an official document showed.

    The document, released Monday by the Ministry of Industry and Information Technology, outlined key priorities for automotive standardization work for this year.

    Among the plans, the country will advance the approval and implementation of standards for autonomous driving design operating conditions, automated parking systems and simulation testing.

    China will also step up efforts to implement battery safety standards for electric vehicles and speed up relevant standard-setting to enhance the safety of driver-assistance products, the document said.

    MIL OSI China News –

  • MIL-OSI Asia-Pac: President Lai meets Japanese Diet Member and former Minister of State for Economic Security Takaichi Sanae

    Source: Republic of China Taiwan

    Details
    2025-04-23
    President Lai delivers remarks at International Holocaust Remembrance Day event
    On the afternoon of April 23, President Lai Ching-te attended an International Holocaust Remembrance Day event and delivered remarks, in which he emphasized that peace is priceless, and war has no winners, while morality, democracy, and respect for human rights are powerful forces against violence and tyranny. The president stated that Taiwan will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability, defending democracy, freedom, and human rights. He said we must never forget history, and must overcome our differences and join in solidarity to ensure that the next generations live in a world that is more just and more peaceful. Upon arriving at the event, President Lai heard a testimony from the granddaughter of a Holocaust survivor, followed by a rabbi’s recitation of the prayer “El Maleh Rachamim.” He then joined other distinguished guests in lighting candles in memory of the victims. A transcript of President Lai’s remarks follows: To begin, I want to thank the Israel Economic and Cultural Office (ISECO) in Taipei, German Institute Taipei, Taiwan Foundation for Democracy, and Ministry of Foreign Affairs for co-organizing this deeply significant memorial ceremony again this year. I also want to thank everyone for attending. We are here today to remember the victims of the Holocaust, express sympathy for the survivors, honor the brave individuals who protected the victims, and acknowledge all who were impacted by this atrocity. It was deeply moving to hear Ms. [Orly] Sela share the story of how her grandmother, Yehudit Biksz, escaped the Nazi regime. I want to thank her specially for traveling so far to attend this event. From the 1930s through World War II, the Nazi regime sought to exclude Jewish people from society. In their campaign, they perpetrated systematic genocide driven by their ideology. Policies and directives under the authoritarian Nazi regime resulted in the deaths of approximately 6 million Jews. Millions of others were persecuted, including Romani people, persons with disabilities, the gay community, and anyone who disagreed with Nazi ideology. It is one of the darkest chapters in human history. Many countries, including Taiwan, have enacted anti-massacre legislation, and observe a remembrance day each year. Those occasions help us remember the victims, preserve historical memory, and most importantly, reinforce our resolve to fight against hatred and discrimination. Twenty-three years ago, Chelujan (車路墘) Church in Tainan founded the Taiwan Holocaust Memorial Museum. It is the first Jewish museum in Taiwan, and the second Holocaust museum in Asia. Its founding mission urges us to forget hatred and love one another; put an end to war and advocate peace. Many of the exhibition items come from Jewish people, connecting Taiwan closer with Israel and helping Taiwanese better understand the experiences of Jewish people. In this way, we grow to more deeply cherish peace. When I was mayor of Tainan, I took part in an exhibition event at Chelujan Church. I was also invited by the Israeli government to join the International Mayors Conference in Israel, where I visited the World Holocaust Remembrance Center. I will never forget how deeply that experience moved me, and as a result, peace and human rights became even more important issues for me. These issues are valued by Taiwan and our friends and allies. They are also important links connecting Taiwan with the world. Peace is priceless, and war has no winners. We will continue to expand cooperation with democratic partners and safeguard regional and global peace and stability. We will also continue to make greater contributions and work with the international community to defend democracy, freedom, and human rights. This year also marks the 80th anniversary of the end of World War II. However, we still see wars raging around the world. We see a resurgence of authoritarian powers, which could severely impact global democracy, peace, and prosperous development. Today’s event allows for more than reflection on the past; it also serves as a warning for the future. We are reminded of the threats that hatred, prejudice, and extremism pose to humanity. But we are also reminded that morality, democracy, and respect for human rights are powerful forces against violence and tyranny. We must never forget history. We must overcome our differences and join in solidarity for a better future. Let’s work together to ensure that the next generations live in a world that is more just and more peaceful. Also in attendance at the event were Member of the Israeli Knesset (parliament) and Taiwan friendship group Chair Boaz Toporovsky, ISECO Representative Maya Yaron, and German Institute Taipei Deputy Director General Andreas Hofem.

    Details
    2025-04-23
    President Lai pays respects to Pope Francis  
    On the morning of April 23, President Lai Ching-te visited the Taipei Archdiocesan Curia to pay respects in a memorial ceremony for His Holiness Pope Francis. As officiant of the ceremony, President Lai burned incense and presented flowers, fruits, and wine to pay his respects to Pope Francis. At the direction of the master of ceremonies, the president then bowed three times in front of Pope Francis’s memorial portrait, conveying his grief and deep respect for the late pope. After hearing of Pope Francis’s passing on April 21, President Lai promptly requested the Ministry of Foreign Affairs to express sincere condolences from the people and government of Taiwan to the Vatican. The president also instructed Minister of Foreign Affairs Lin Chia-lung (林佳龍) to convey condolences to the Holy See’s Apostolic Nunciature in Taiwan.  

    Details
    2025-04-23
    President Lai meets US CNAS NextGen fellows
    On the morning of April 23, President Lai Ching-te met with fellows from the Shawn Brimley Next Generation National Security Leaders Program (NextGen) run by the Center for a New American Security (CNAS). In remarks, President Lai thanked the government of the United States for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. The president pointed out that we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US, and form a “Taiwan investment in the US team” to expand investment and bring about even closer Taiwan-US trade cooperation, allowing us to reduce the trade deficit and generate development that benefits both sides. A translation of President Lai’s remarks follows: Ms. Michèle Flournoy, chair of the CNAS Board of Directors, is a good friend of Taiwan, and she has made major contributions to Taiwan-US relations through her long-time efforts on various aspects of our cooperation. I am happy to welcome Chair Flournoy, who is once again leading a NextGen Fellowship delegation to Taiwan. CNAS is a prominent think tank focusing on US national security and defense policy based in Washington, DC. Its NextGen Fellowship has fostered talented individuals in the fields of national security and foreign affairs. This year’s delegation is significantly larger than those of the past, demonstrating the increased importance that the next generation of US leaders attach to Taiwan. On behalf of the people of Taiwan, I extend my sincerest welcome to you all. The Taiwan Strait, an issue of importance for our guests, has become a global issue. There is a high degree of international consensus that peace and stability across the Taiwan Strait are indispensable elements in global security and prosperity. Facing military threats from China, Taiwan proposed the Four Pillars of Peace action plan. First, we are actively implementing military reforms, enhancing whole-of-society defense resilience, and working to increase our defense budget to more than 3 percent of GDP. Second, we are strengthening our economic resilience. As Taiwan’s economy must keep advancing, we can no longer put all our eggs in one basket. We are taking action to remain firmly rooted in Taiwan while expanding our global presence and marketing worldwide. In these efforts, we are already seeing results. Third, we are standing side-by-side with other democratic countries to demonstrate the strength of deterrence and achieve our goal of peace through strength. And fourth, Taiwan is willing, under the principles of parity and dignity, to conduct exchanges and cooperate with China towards achieving peace and stability in the Taiwan Strait. This April 10 marked the 46th anniversary of the enactment of the Taiwan Relations Act. We thank the US government for continuing its arms sales to Taiwan over the years, supporting Taiwan’s efforts to enhance its national defense capabilities and jointly maintaining peace and stability in the Indo-Pacific region. We look forward to Taiwan and the US continuing to strengthen collaboration on the development of both our defense industries as well as the building of non-red supply chains. This will yield even more results and further deepen our economic and trade partnership. The US is now the main destination for outbound investment from Taiwan. Moving forward, we will promote our “Taiwan plus one” policy, that is, new arrangements for Taiwan plus the US. And our government will form a “Taiwan investment in the US team” to expand investment. We hope this will bring Taiwan-US economic and trade cooperation even closer and, through mutually beneficial assistance, allow us to generate development that benefits both our sides while reducing our trade deficit. In closing, thank you once again for visiting Taiwan. We hope your trip is fruitful and leaves you with a deep impression of Taiwan. We also hope that going forward you continue supporting Taiwan and advancing even greater development for Taiwan-US ties.  Chair Flournoy then delivered remarks, first thanking President Lai for making time to receive their delegation. Referring to President Lai’s earlier remarks, she said that it is quite an impressive group, as past members of this program have gone on to become members of the US Congress, leading government experts, and leaders in the think-tank world and in the private sector. She remarked that investing in this group is a wonderful privilege for her and that they appreciate President Lai’s agreeing to take the time to engage in exchange with them. Chair Flournoy emphasized that they are visiting Taiwan at a critical moment, when there is so much change and volatility in the geostrategic environment, a lot of uncertainty, and a lot of unpredictability. She stated that given our shared values, our shared passion for democracy and human rights, and our shared interests in peace and stability in the Indo-Pacific region, this is an important time for dialogue, collaboration, and looking for additional opportunities where we can work together towards regional peace and stability.

    Details
    2025-04-18
    President Lai meets US delegation from Senate Foreign Relations Subcommittee on East Asia and the Pacific
    On the afternoon of April 18, President Lai Ching-te met with a delegation led by Senator Pete Ricketts, chairman of the United States Senate Foreign Relations Subcommittee on East Asia, the Pacific, and International Cybersecurity Policy. In remarks, President Lai said we hope to promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US, to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation. The president said that by deepening cooperation, Taiwan and the US will be better positioned to work together on building non-red supply chains. He said a more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. A translation of President Lai’s remarks follows: I warmly welcome you all to Taiwan. I want to take this opportunity to especially thank Chairman Pete Ricketts and Ranking Member Chris Coons for their high regard and support for Taiwan. Chairman Ricketts has elected to visit Taiwan on his first overseas trip since taking up his new position in January. Ranking Member Coons made a dedicated trip to Taiwan in 2021 to announce a donation of COVID-19 vaccines on behalf of the US government. He also visited last May, soon after my inauguration, continuing to deepen Taiwan-US exchanges. Thanks to support from Chairman Ricketts and Ranking Member Coons, the US Congress has continued to introduce many concrete initiatives and resources to assist Taiwan through the National Defense Authorization Act and Consolidated Appropriations Act, bringing the Taiwan-US partnership even closer. For this, I want to again express my gratitude. There has long been bipartisan support in the US Congress for maintaining security in the Taiwan Strait. Faced with China’s persistent political and military intimidation, Taiwan will endeavor to reform national defense and enhance whole-of-society defense resilience. We will also make special budget allocations to ensure that our defense budget exceeds 3 percent of GDP, up from the current 2.5 percent, so as to enhance Taiwan’s self-defense capabilities. We look forward to Taiwan and the US continuing to work together to maintain peace and stability in the region. We will also promote our Taiwan plus one policy, that is, new industrial arrangements for Taiwan plus the US. We hope to leverage the strengths of both sides and reinforce our links in such areas as the economy, trade, and technological innovation, jointly promoting prosperity and development. We believe that by deepening cooperation through the Taiwan plus one policy, Taiwan and the US will be better positioned to work together on building non-red supply chains. A more secure and sustainable economic and trade partnership will allow us to address the challenges posed by geopolitics, climate change, and the restructuring of global supply chains. In closing, I wish Chairman Ricketts and Ranking Member Coons a smooth and successful visit. Chairman Ricketts then delivered remarks, first thanking President Lai for his hospitality. He said that he and his delegation have had a wonderful time meeting with government officials, industry representatives, and the team at the American Institute in Taiwan. Highlighting that Taiwan has long been a friend and partner of the US, he said their bipartisan delegation to Taiwan emphasizes long-time bipartisan support in the US Congress for Taiwan, and though administrations change, that bipartisan support remains. Chairman Ricketts stated that the US is committed to peace and stability in the Indo-Pacific and that they want to see peace across the Taiwan Strait. He also stated that the US opposes any unilateral change in the status of Taiwan and that they expect any differences between Taiwan and China to be resolved peacefully without coercion or the threat of force. To that end, he said, the US will continue to assist Taiwan in its self-defense and will also step up by bolstering its own defense capabilities, noting that there is broad consensus on this in the US Congress. Chairman Ricketts stated that they want to see Taiwan participate in international organizations and memberships where appropriate, and encourage Taiwan to reach out to current and past diplomatic allies to strengthen those bilateral relationships. He pointed out that the long economic relationship between the US and Taiwan is important for our as well as the entire world’s security and prosperity. He also noted that there are many opportunities for us to continue to grow the economic relationship that will help create more prosperity for our respective peoples and ensure that we are more secure in the world. Chairman Ricketts emphasized that they made this trip early on in the new US administration to work with Taiwan to develop three points: security, diplomatic relations, and the economy. He stated that in the face of rising aggression from communist China, the US will provide commensurate help to Taiwan in self-defense and that they will continue to provide the services and tools needed. In closing, Chairman Ricketts once again thanked President Lai for the hospitality and said he looks forward to dialogue on how we can continue these relationships. Ranking Member Coons then delivered remarks. Mentioning that their delegation also visited the Philippines on this trip, he said that there and in Taiwan, they have been focused on peace, stability, and security, and the ways for deepening and strengthening economic and security relations. He noted that 46 years ago, the US Senate passed the Taiwan Relations Act, adding that it was strongly bipartisan when enacted and that support for it is still strongly bipartisan today. Its core commitment, he said, is that the US will be engaged and will be a partner in ensuring that any dispute or challenge across the strait will be resolved peacefully, and that Taiwan will have the resources it needs for its self-defense. Ranking Member Coons said that between people, friendships are deepest and most enduring when they are based not just on interests but on values, and that the same is true between the US and Taiwan. Free press, free enterprise, free societies, democracy – these core shared values, he said, anchor our friendship and partnership, making them deeper. He remarked that they are grateful for the significant investment in the US being made by companies from Taiwan, but what anchors our partnership, in addition to these important investments and investments being made by Taiwan in its own security, are the values that mobilize our free-enterprise spirit and our commitment to free societies. In Europe in recent years, Ranking Member Coons said, an aggressive nation has tried to change boundaries and change history by force. He said that the US and dozens of countries committed to freedom have come to the aid of Ukraine to defend it, help it stabilize, and secure its future. So too in this region of the world, he added, the US and a bipartisan group in the US Senate are committed to stable, secure, peaceful relations and to deterring any unilateral effort to change the status quo by force. In closing, he said he is grateful for a chance to return to Taiwan after the pandemic and that he looks forward to our conversation, our partnership, and the important work we have in front of us. The delegation was accompanied to the Presidential Office by American Institute in Taiwan Taipei Office Director Raymond Greene.

    Details
    2025-04-17
    President Lai meets New Zealand delegation from All-Party Parliamentary Group on Taiwan  
    On the morning of April 17, President Lai Ching-te met with a delegation from New Zealand’s All-Party Parliamentary Group on Taiwan. In remarks, President Lai thanked the government of New Zealand for reiterating the importance of peace and stability across the Taiwan Strait on multiple occasions since last year. He also stated that this year, the Taiwan-New Zealand economic cooperation agreement (ANZTEC) is being implemented in its complete form. The president expressed hope that deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among our indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. A translation of President Lai’s remarks follows: I extend a warm welcome to all of our guests. New Zealand’s All-Party Parliamentary Group on Taiwan was established in 2023, marking a significant milestone in the deepening of Taiwan-New Zealand relations. I would like to thank Members of Parliament Stuart Smith and Tangi Utikere for leading this delegation, and thank all our guests for demonstrating support for Taiwan through action. We currently face a rapidly changing international landscape. Authoritarian regimes continue to converge and expand. Democracies must actively cooperate and jointly safeguard peace, stability, and the prosperous development of the Indo-Pacific region. Since last year, the government of New Zealand has on multiple occasions reiterated the importance of peace and stability across the Taiwan Strait. On behalf of the people of Taiwan, I would like to express our sincere gratitude for these statements and demonstrations of support. This year, ANZTEC is being implemented in its complete form. We look forward to exploring even more diverse markets with New Zealand. Deeper collaboration in such fields as smart agriculture, food manufacturing, biomedicine, the digital economy, and clean energy, as well as exchanges among indigenous peoples, will allow our economies and industries to continue evolving as they adapt to the challenges arising from global changes. Taiwan and New Zealand share the universal values of democracy, freedom, and respect for human rights, and parliamentary diplomacy is a tradition practiced by democracies around the world. Looking ahead, our parliamentary exchanges and mutual visits are bound to become more frequent. This will enable us to explore even more opportunities for cooperation and further deepen and solidify the democratic partnership between Taiwan and New Zealand. Thank you once again for making the long journey to visit us. I wish you a fruitful and successful trip. I also hope that everyone can take time to see more of Taiwan, try our local cuisine, and learn more about our culture. I hope our guests will fall in love with Taiwan. MP Smith then delivered remarks, saying that it is a great pleasure and an honor to be received by President Lai. The MP, noting that President Lai already covered many of the points he planned to make, went on to say that New Zealand and Taiwan share many values. He indicated that both are trading nations that rely on easy access for imports and exports, and that is why freedom of navigation is so important. That is why New Zealand had a naval vessel sail through the Taiwan Strait, he said, to underline the importance of freedom of navigation and our mutual security. MP Smith said that they look forward to building stronger relationships and enhancing the trade between our two nations. He added that New Zealand has much to offer in the field of geothermal energy to assist Taiwan, and mentioned that New Zealand is third largest in terms of the number of rocket launchers for satellites, which could assist Taiwan with communications in the future. New Zealand has other products as well, he said, but looks for assistance from Taiwan’s technology and technological sector. Lastly, MP Smith stated that he looks forward to a long and prosperous relationship between Taiwan and New Zealand. MP Utikere then delivered remarks, indicating that like Taiwan, New Zealand is a nation that is surrounded by ocean, which means that they rely on strong partnerships with communities of interest all around the globe. He said that the all-party parliamentary friendship group that was established and that they are a part of goes a long way in ensuring that a secure relationship between our two parliaments can continue to prosper. The MP also thanked Taiwan’s Representative to New Zealand Joanne Ou (歐江安) and her team for their work, which has ensured the success of the delegation’s visit. He said that the delegation experienced meetings with ministers in Taiwan’s government, members of the legislature, and those from the non-government organization sector as well. He also said that they enjoyed the opportunity to visit Wulai, and that the strength of the connections between the indigenous peoples of Taiwan and the indigenous peoples of Aotearoa New Zealand is something that certainly landed with members of the delegation. MP Utikere noted that he will take up President Lai’s offer on experiencing more of Taiwan, and will spend a few extra days in Tainan, which he understands has a very special place in the president’s heart, adding that he looks forward to his time and experiences there. The MP concluded his remarks by saying that this will be a relationship that continues to go from strength to strength. After their remarks, the New Zealand delegation sang the Māori song “Tutira Mai Nga Iwi” to extend best wishes to Taiwan. Also in attendance at the meeting were New Zealand Members of Parliament Jamie Arbuckle, Greg Fleming, Hamish Campbell, Cameron Luxton, and Helen White.  

    Details
    2025-04-06
    President Lai delivers remarks on US tariff policy response
    On April 6, President Lai Ching-te delivered recorded remarks regarding the impact of the 32 percent tariff that the United States government recently imposed on imports from Taiwan in the name of reciprocity. In his remarks, President Lai explained that the government will adopt five response strategies, including making every effort to improve reciprocal tariff rates through negotiations, adopting a support plan for affected domestic industries, adopting medium- and long-term economic development plans, forming new “Taiwan plus the US” arrangements, and launching industry listening tours. The president emphasized that as we face this latest challenge, the government and civil society will work hand in hand, and expressed hope that all parties, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. A translation of President Lai’s remarks follows: My fellow citizens, good evening. The US government recently announced higher tariffs on countries around the world in the name of reciprocity, including imposing a 32 percent tariff on imports from Taiwan. This is bound to have a major impact on our nation. Various countries have already responded, and some have even adopted retaliatory measures. Tremendous changes in the global economy are expected. Taiwan is an export-led economy, and in facing future challenges there will inevitably be difficulties, so we must proceed carefully to turn danger into safety. During this time, I want to express gratitude to all sectors of society for providing valuable opinions, which the government regards highly, and will use as a reference to make policy decisions.  However, if we calmly and carefully analyze Taiwan’s trade with the US, we find that last year Taiwan’s exports to the US were valued at US$111.4 billion, accounting for 23.4 percent of total export value, with the other 75-plus percent of products sold worldwide to countries other than the US. Of products sold to the US, competitive ICT products and electronic components accounted for 65.4 percent. This shows that Taiwan’s economy does still have considerable resilience. As long as our response strategies are appropriate, and the public and private sectors join forces, we can reduce impacts. Please do not panic. To address the reciprocal tariffs by the US, Taiwan has no plans to adopt retaliatory tariffs. There will be no change in corporate investment commitments to the US, as long as they are consistent with national interests. But we must ensure the US clearly understands Taiwan’s contributions to US economic development. More importantly, we must actively seek to understand changes in the global economic situation, strengthen Taiwan-US industry cooperation, elevate the status of Taiwan industries in global supply chains, and with safeguarding the continued development of Taiwan’s economy as our goal, adopt the following five strategies to respond. Strategy one: Make every effort to improve reciprocal tariff rates through negotiations using the following five methods:  1. Taiwan has already formed a negotiation team led by Vice Premier Cheng Li-chiun (鄭麗君). The team includes members from the National Security Council, the Office of Trade Negotiations, and relevant Executive Yuan ministries and agencies, as well as academia and industry. Like the US-Mexico-Canada free trade agreement, negotiations on tariffs can start from Taiwan-US bilateral zero-tariff treatment. 2. To expand purchases from the US and thereby reduce the trade deficit, the Executive Yuan has already completed an inventory regarding large-scale procurement plans for agricultural, industrial, petroleum, and natural gas products, and the Ministry of National Defense has also proposed a military procurement list. All procurement plans will be actively pursued. 3. Expand investments in the US. Taiwan’s cumulative investment in the US already exceeds US$100 billion, creating approximately 400,000 jobs. In the future, in addition to increased investment in the US by Taiwan Semiconductor Manufacturing Company, other industries such as electronics, ICT, petrochemicals, and natural gas can all increase their US investments, deepening Taiwan-US industry cooperation. Taiwan’s government has helped form a “Taiwan investment in the US” team, and hopes that the US will reciprocate by forming a “US investment in Taiwan” team to bring about closer Taiwan-US trade cooperation, jointly creating a future economic golden age.  4. We must eliminate non-tariff barriers to trade. Non-tariff barriers are an indicator by which the US assesses whether a trading partner is trading fairly with the US. Therefore, we will proactively resolve longstanding non-tariff barriers so that negotiations can proceed more smoothly. 5. We must resolve two issues that have been matters of longstanding concern to the US. One regards high-tech export controls, and the other regards illegal transshipment of dumped goods, otherwise referred to as “origin washing.” Strategy two: We must adopt a plan for supporting our industries. For industries that will be affected by the tariffs, and especially traditional industries as well as micro-, small-, and medium-sized enterprises, we will provide timely and needed support and assistance. Premier Cho Jung-tai (卓榮泰) and his administrative team recently announced a package of 20 specific measures designed to address nine areas. Moving forward, the support we provide to different industries will depend on how they are affected by the tariffs, will take into account the particular features of each industry, and will help each industry innovate, upgrade, and transform. Strategy three: We must adopt medium- and long-term economic development plans. At this point in time, our government must simultaneously adopt new strategies for economic and industrial development. This is also the fundamental path to solutions for future economic challenges. The government will proactively cooperate with friends and allies, develop a diverse range of markets, and achieve closer integration of entities in the upper, middle, and lower reaches of industrial supply chains. This course of action will make Taiwan’s industrial ecosystem more complete, and will help Taiwanese industries upgrade and transform. We must also make good use of the competitive advantages we possess in such areas as semiconductor manufacturing, integrated chip design, ICT, and smart manufacturing to build Taiwan into an AI island, and promote relevant applications for food, clothing, housing, and transportation, as well as military, security and surveillance, next-generation communications, and the medical and health and wellness industries as we advance toward a smarter, more sustainable, and more prosperous new Taiwan. Strategy four: “Taiwan plus one,” i.e., new “Taiwan plus the US” arrangements: While staying firmly rooted in Taiwan, our enterprises are expanding their global presence and marketing worldwide. This has been our national economic development strategy, and the most important aspect is maintaining a solid base here in Taiwan. We absolutely must maintain a solid footing, and cannot allow the present strife to cause us to waver. Therefore, our government will incentivize investments, carry out deregulation, and continue to improve Taiwan’s investment climate by actively resolving problems involving access to water, electricity, land, human resources, and professional talent. This will enable corporations to stay in Taiwan and continue investing here. In addition, we must also help the overseas manufacturing facilities of offshore Taiwanese businesses to make necessary adjustments to support our “Taiwan plus one” policy, in that our national economic development strategy will be adjusted as follows: to stay firmly rooted in Taiwan while expanding our global presence, strengthening US ties, and marketing worldwide. We intend to make use of the new state of supply chains to strengthen cooperation between Taiwanese and US industries, and gain further access to US markets. Strategy five: Launch industry listening tours: All industrial firms, regardless of sector or size, will be affected to some degree once the US reciprocal tariffs go into effect. The administrative teams led by myself and Premier Cho will hear out industry concerns so that we can quickly resolve problems and make sure policies meet actual needs. My fellow citizens, over the past half-century and more, Taiwan has been through two energy crises, the Asian financial crisis, the global financial crisis, and pandemics. We have been able to not only withstand one test after another, but even turn crises into opportunities. The Taiwanese economy has emerged from these crises stronger and more resilient than ever. As we face this latest challenge, the government and civil society will work hand in hand, and I hope that all parties in the legislature, both ruling and opposition, will support the measures that the Executive Yuan will take to open up a broader path for Taiwan’s economy. Let us join together and give it our all. Thank you.

    MIL OSI Asia Pacific News –

  • MIL-OSI China: Wang Yi holds phone talks with Pakistani deputy PM

    Source: People’s Republic of China – State Council News

    MADRID, April 27 — Chinese Foreign Minister Wang Yi on Sunday held phone talks with Pakistani Deputy Prime Minister and Foreign Minister Ishaq Dar.

    Dar briefed Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, on the latest tensions between Pakistan and India following a terrorist attack in the Kashmir region.

    Dar emphasized that Pakistan has consistently and firmly fought against terrorism and is against any actions that could lead to an escalation of the situation. Pakistan is committed to managing the situation in a mature manner and will maintain communication with China and the international community, Dar added.

    For his part, Wang said China is closely following the developments, stressing that combating terrorism is a shared responsibility of the whole world while reaffirming China’s consistent support for Pakistan’s firm counterterrorism efforts.

    As an ironclad friend and an all-weather strategic cooperative partner, China fully understands Pakistan’s legitimate security concerns and supports Pakistan in safeguarding its sovereignty and security interests, Wang said.

    China advocates for a swift and fair investigation and believes that conflict does not serve the fundamental interests of either India or Pakistan, nor does it benefit regional peace and stability, Wand noted.

    China hopes both sides will remain restrained, move toward each other, and work together to de-escalate the situation, he added.

    MIL OSI China News –

  • MIL-OSI China: China to launch campaign to dismantle market access barriers

    Source: People’s Republic of China – State Council News

    BEIJING, April 29 — China announced Tuesday a campaign to eliminate and rectify market access barriers in the latest effort to promote the development of a unified national market.

    According to an official notice, the campaign will target local laws, regulations, administrative documents and other policy papers that contravene national market access requirements, as well as practices by governments at various levels that improperly impose restrictions on market entry.

    MIL OSI China News –

  • MIL-OSI Europe: Piero Cipollone: Navigating a fractured horizon: risks and policy options in a fragmenting world

    Source: European Central Bank

    Speech by Piero Cipollone, Member of the Executive Board of the ECB, at the conference on “Policy challenges in a fragmenting world: Global trade, exchange rates, and capital flow” organised by the Bank for International Settlements, the Bank of England, the ECB and the International Monetary Fund

    Frankfurt am Main, 29 April 2025

    I’m honoured to welcome you to this conference, jointly organised by the Bank for International Settlements (BIS), the Bank of England, the European Central Bank (ECB) and the International Monetary Fund (IMF).[1]

    Today, we come together to discuss the urgent challenges posed by global fragmentation – a growing risk to our interconnected world. Earlier this month, the President of the United States announced tariff hikes, sending shockwaves through the global economy – a stark reminder that the fractures we face are no longer hypothetical, but real.

    This announcement is but the latest chapter in a series of four major shocks that have been reshaping our world in recent years.

    First, since 2018 the intensifying power struggle between the United States and China has led to tit-for-tat tariffs affecting nearly two-thirds of the trade between these two economic giants. Second, starting in 2020, the pandemic caused unprecedented disruptions to supply chains, which prompted a re-evaluation of the balance between global integration and resilience. Third, in 2022 Russia’s unjustified invasion of Ukraine not only triggered an energy crisis but also deepened a geopolitical divide that continues to have worldwide repercussions. And fourth, we are now facing the rising risk of economic fragmentation within the western bloc itself, as new trade barriers threaten long-standing international partnerships.

    The data paint a sobering picture. Geopolitical risk levels have surged to 50% above the post-global financial crisis average, and uncertainty surrounding trade policy has risen to more than eight times its average since 2021.[2] What we are experiencing is not merely a temporary disruption – it is a profound shift in how nations interact economically, financially and diplomatically. So, it does not come as a surprise that financial markets have experienced considerable volatility in recent weeks. It remains to be seen if, for markets to find a stable equilibrium, it will be enough to step back from the current international economic disorder towards a more stable, predictable and reliable trading system – a development that appears elusive in the short term. Against this backdrop, recent moves in exchange rates, bond yields and equities, suggest that US markets have not been playing their usual role as a safe haven in this particular episode of stress. This potentially has far-reaching longer-term implications for capital flows and the international financial system.

    Today I will focus on three key points. First, we are seeing increasing signs of fragmentation becoming visible across the economy and financial system. Second, the implications of this accelerating fragmentation could extend far beyond the immediate disruptions, with consequences for growth, stability and prosperity. Third, in this evolving economic landscape, central banks must adapt their approaches yet retain a steadfast focus on their core mandates, while striving to preserve international cooperation.

    The emerging reality of fragmentation

    Let me begin by addressing a common belief – still held by many until recently – that, despite rising geopolitical tensions, globalisation appears largely resilient. Headline figures in trade and cross-border investment, for example, do indeed appear to support this belief. In 2024 world trade expanded to a record USD 33 trillion – up 3.7% from 2023. Similarly, the global stock of foreign direct investment reached an unprecedented USD 41 trillion.[3] However, these surface-level indicators may not reflect the underlying realities, creating a misleading sense of stability when important changes are already underway. In reality, fragmentation is already happening in both the global economy and the financial system.

    Fragmentation of the real economy

    Fragmentation is most evident in rebalancing trade, driven by escalating geopolitical tensions. Take, for instance, the escalating US-China trade tensions that have been intensifying since 2018. Studies show the impact of geopolitical distance on trade has become notably negative. A doubling of geopolitical distance between countries – akin to moving from the position of Germany to that of India in relation to the United States – decreases bilateral trade flows by approximately 20%.[4]

    The series of shocks to the global economy in recent years have also contributed to this fragmentation. According to gravity model estimates, trade between geopolitically distant blocs has significantly declined. Trade between rivals is about 4% lower than it might have been without the heightened tensions post-2017, while trade between friends is approximately 6% higher.[5] Global value chains are being reconfigured as companies respond to these new realities. In 2023 surveys already indicated that only about a quarter of leading firms operating in the euro area[6] that sourced critical inputs from countries considered subject to elevated risk had not developed strategies to reduce their exposure.[7]

    However, these shifting trade patterns have not yet been reflected in overall global trade flows. Non-aligned countries have played a crucial role as intermediaries, or connectors, helping to sustain global trade levels even as direct trade between rival blocs declines.[8] But this stabilising influence is unlikely to endure as trade fragmentation deepens and geopolitical alliances continue to shift.

    The tariffs announced by the US Administration are far-reaching and affect a substantial share of global trade flows. The effects on the real economy are likely to be material. In its World Economic Outlook, published last week, the International Monetary Fund revised down global growth projections for 2025-26 by a cumulative 0.8 percentage points and global trade by a cumulative 2.3 percentage points.[9] This notably reflects a negative hit from tariffs that ranges between 0.4% to 1% of world GDP by 2027.[10] In particular, IMF growth projections for the United States have been revised down by a cumulative 1.3 percentage points in 2025-26. The cumulative impact on euro area growth is smaller, at 0.4 percentage points.

    Financial fragmentation

    The fragmentation we are witnessing in global trade is mirrored in the financial sector, where geopolitical tensions are also reshaping the landscape.

    In recent years, global foreign direct investment flows have increasingly aligned with geopolitical divides. Foreign direct investment in new ventures has plunged by nearly two-thirds between countries from different geopolitical blocs. However, strong intra-bloc investments have helped sustain overall foreign direct investment levels globally, masking some of the fragmentation occurring beneath the surface.[11]

    But, as with trade flows, this dynamic is unlikely to persist as geopolitical tensions grow within established economic blocs. For instance, increased geopolitical distance is shown to curtail cross-border lending. A two standard deviation rise in geopolitical distance – akin to moving from the position of France to that of Pakistan in relation to Germany – leads to a reduction of 3 percentage points in cross-border bank lending.[12]

    The impact of fragmentation in global financial infrastructure is perhaps even more revealing. Since 2014 correspondent banking relationships – crucial for facilitating trade flows across countries – have declined by 20%. While other factors – such as a wave of concentration in the banking industry, technological disruptions and profitability considerations – have played a role[13], the contribution of the geopolitical dimension can hardly be overstated. The repercussions of this decline can be profound. Research shows that when correspondent banking relationships are severed in a specific corridor, a firm’s likelihood of continuing to export between the two countries of that corridor falls by about 5 percentage points in the short term, and by about 20 percentage points after four years.[14]

    Contributing to this trend, countries such as China, Russia and Iran have launched multiple initiatives to develop alternatives to established networks such as SWIFT, raising the possibility of a fragmented global payment system.[15] Geopolitical alignment now exerts a stronger influence than trade relationships or technical standards in connecting payment systems between countries.[16] This poses risks of regional networks becoming more unstable, increased trade costs and settlement times, and reduced risk sharing across countries.

    Additionally, we are witnessing a noticeable shift away from traditional reserve currencies, with growing interest in holding gold. Central banks purchased more than 1,000 tonnes of gold in 2024, almost double the level of the previous decade, with China being the largest purchaser, at over 225 tonnes. At market valuations, the share of gold in global official reserves has increased, reaching 20% in 2024, while that of the US dollar has decreased. Survey data suggest that two-thirds of central banks invested in gold to diversify, 40% to protect against geopolitical risk and 18% because of the uncertainty over the future of the international monetary system.[17] There are further signs that geopolitical considerations increasingly influence decisions to invest in gold. The negative correlation of gold prices with real yields has broken down since 2022, a phenomenon we have also observed in recent weeks. This suggests that gold prices have been influenced by more than simply the use of gold to hedge against inflation. Moreover, countries geopolitically close to China and Russia have seen more pronounced increases in the share of gold in official foreign reserves since the last quarter of 2021.

    The looming consequences of fragmentation

    Accelerating fragmentation is resulting in the immediate disruptions we are now seeing, but this is likely to only be the beginning – potentially profound medium and long-term consequences for growth, stability and prosperity can be expected.

    Medium-term impacts

    The initial consequences of fragmentation are already evident in the form of increased uncertainty. In particular, trade policy uncertainty has led to a broader rise in global economic policy instability, which is stifling investment and dampening consumption. Our research suggests that the recent increase in trade policy uncertainty could reduce euro area business investment by 1.1% in the first year and real GDP growth by around 0.2 percentage points in 2025-26[18]. Consumer sentiment is also under strain, with the ECB’s Consumer Expectations Survey revealing that rising geopolitical risks are leading to more pessimistic expectations, higher income uncertainty and ultimately a lower willingness to spend.[19] Moreover, ECB staff estimates suggest that the observed increase in financial market volatility might imply lower GDP growth of about 0.2 percentage points in 2025.

    Over the medium term, tariffs are set to have an unambiguously recessionary effect, both for countries imposing restrictions and those receiving them. The costs are particularly high when exchange rates fail to absorb tariff shocks, and some evidence suggests exchange rates have become less effective in this role.[20]

    The Eurosystem’s analysis of potential fragmentation scenarios suggests that such trade disruptions could turn out to be significant. In the case of a mild decoupling between the western (United States-centric) and the eastern (China-centric) bloc, where trade between East and West reverts to the level observed in the mid-1990s, global output could drop by close to 2%.[21] In the more extreme case of a severe decoupling – essentially a halt to trade flows – between the two blocs, global output could drop by up to 9%. Trade-dependent nations would bear the brunt of these trade shocks, with China potentially suffering losses of between 5% and 20%, and the EU seeing declines ranging from 2.4% to 9.5% in the mild and severe decoupling scenarios respectively. The analysis also shows that the United States would be more significantly affected if it imposed additional trade restrictions against western and neutral economies – with real GDP losses of almost 11% in the severe decoupling scenario – whereas EU losses would increase only slightly in such a case.[22]

    The inflationary effects of trade fragmentation are more uncertain. They depend mainly on the response of exchange rates, firms’ markups and wages. Moreover, they are not distributed equally. While higher import costs and the ensuing price pressures are likely to drive up inflation in the countries raising tariffs, the impact is more ambiguous in other countries as a result of the tariffs’ global recessionary effects, which push down demand and commodity prices, as well as of the possible dumping of exports from countries with overcapacity. The short to medium-term effects may even prove disinflationary for the euro area, where real rates have increased and the euro has appreciated following US tariff announcements.

    In fact, a key feature of most model-based assessments is that higher US tariffs lead to a depreciation of currencies against the US dollar, moderating the inflationary effect for the United States and amplifying it for other countries. But so far we have seen the opposite: the risk-off sentiment in response to US tariff announcements and economic policy uncertainty have led to capital flows away from the United States, depreciating the dollar and putting upward pressure on US bond yields. Conversely, the euro area benefited from safe haven flows, with the euro appreciating and nominal bond yields decreasing.

    Long-term structural changes

    The long-term consequences of economic fragmentation are inherently difficult to predict, but by drawing on historical examples and recognising emerging trends, it’s clear that we are on the verge of significant structural changes. Two areas stand out.

    The first one is structurally lower growth. On this point, international economic literature has reached an overwhelming consensus.[23] Quantitatively, point estimates might vary. For example, research of 151 countries spanning more than five decades of the 20th century reveals that higher tariffs have typically led to lower economic growth. This is largely due to key production factors – labour and capital – being redirected into less productive sectors.[24]

    However, data from the late 19th and early 20th centuries, a period which tariff supporters often look back to, seem to tell a different story. At that time, trade barriers across countries were high – the US effective tariff rate, for example, reached almost 60%, twice as high as after the 2 April tariffs. And sometimes countries imposing higher trade barriers enjoyed higher growth, which may provide motivation for current policymakers’ trade tariff policies. But these episodes need to be read in historical context. Before 1913, tariffs mostly shielded manufacturing, a high-productivity sector at the time, attracting labour from other, less productive sectors, like agriculture. Therefore, their negative effects were mitigated by the expansion of industries at the frontier of technological innovation. Moreover, the interwar years offer further nuance – the Smoot-Hawley tariffs of the 1930s had relatively limited direct effects on US growth, mainly because trade accounted for just 5% of the economy.

    But today’s tariffs are unlikely to replicate the positive effects seen in the 19th century. Instead, they risk creating the same inefficiencies observed in the course of the 20th century, by diverting resources from high-productivity sectors to lower-productivity ones. This contractionary effect could lead to persistently lower global growth rates. In fact, the abolition of trade barriers within the EU and the international efforts towards lower trade barriers in the second half of the 20th century were a direct response to the economic and political impact of protectionism,[25] which had played a key role in worsening and prolonging the Great Depression[26] and had contributed to the formation of competing blocs in the run-up to the Second World War.[27]

    The second long-term shift driven by fragmentation might be the gradual transition from a US-dominated, global system to a more multipolar one, where multiple currencies compete for reserve status. For example, if the long-term implications of higher tariffs materialise, notably in the form of higher inflation, slower growth and higher US debt, this could undermine confidence in the US dollar’s dominant role in international trade and finance.[28] Combined with a further disengagement from global geopolitical affairs and military alliances, this could, over time, undermine the “exorbitant privilege” enjoyed by the United States, resulting in higher interest rates domestically.[29]

    Moreover, as alternative payment systems gain traction, regional currencies may start to emerge as reserves within their respective blocs. This could be accompanied by the rise of competing payment systems, further fragmenting global financial flows and international trade. Such shifts would increase transaction costs and erode the capacity of countries to share risks on a global scale, making the world economy more fragmented and less efficient.

    The central bank’s role in a fragmented world

    So, as these tectonic shifts reshape the global economic landscape, central banks must adapt their approaches while remaining steadfast in their core mandates. The challenges posed by fragmentation require a delicate balance between confronting new realities and working to preserve the benefits of an integrated global economy. In order to navigate the present age of fragmentation, it is necessary to take action in four key areas.

    First, central banks must focus on understanding and monitoring fragmentation. Traditional macroeconomic models often assume seamless global integration and may not fully capture the dynamics of a fragmenting world. Enhanced analytical frameworks that incorporate geopolitical factors and how businesses adjust to these risks will be essential for accurate forecasting and effective policy formulation. The Eurosystem is reflecting on these issues.

    Second, monetary policy must adapt to the new nature of supply shocks generated by fragmentation. The effects of the greater frequency, size and more persistent nature of fragmentation-induced shocks and their incidence on prices require a careful calibration of our monetary responses. In this respect, our communication needs to acknowledge the uncertainty and trade-offs we face while giving a clear sense of how we will react depending on the incoming data. This can be done by making use of scenario analysis and providing clarity about our reaction function, as emphasised recently by President Lagarde.[30]

    Third, instead of building walls, we must forge unity. Even as political winds shift, central banks should strengthen international cooperation where possible. Through forums such as those provided by the BIS and the Financial Stability Board, we can keep open channels of cooperation that transcend borders. Our work on cross-border payments stands as proof of this commitment in line with the G20 Roadmap[31]. The ECB is pioneering a cross-currency settlement service through TARGET Instant Payment Settlement (TIPS) – initially linking the euro, the Swedish krona and the Danish krone. We are exploring connections between TIPS and other fast-payment systems globally, both bilaterally and on the basis of a multilateral network such as the BIS’ Project Nexus.[32]

    And fourth, central banks must enhance their capacity to address financial stability risks arising from fragmentation. The potential for sudden stops in capital flows, payment disruptions and volatility in currency markets requires robust contingency planning and crisis management frameworks. Global financial interlinkages and spillovers highlight the importance of preserving and further reinforcing the global financial safety net so that we can swiftly and effectively address financial stress, which is more likely to emerge in a fragmenting world.[33]

    In fact, the lesson from the 1930s is that international coordination is key to avoiding protectionist snowball effects, where tit-for-tat trade barriers multiply as each country seeks to direct spending to merchandise produced at home rather than abroad.[34] In order to avoid this, the G20 countries committed to preserving open trade could call an international trade conference to avoid beggar-thy-neighbour policies[35] and instead agree on other measures, such as macroeconomic policies that can support the global economy in this period of uncertainty and contribute to reduce global imbalances.

    Let me finally emphasise that the current situation also has important implications for the euro area. If the EU upholds its status as a reliable partner that defends trade openness, investor protection, the rule of law and central bank independence, the euro has the potential to play the role of a global public good. This requires a deep, trusted market for internationally accepted euro debt securities. That is why policy efforts to integrate and deepen European capital markets must go hand in hand with efforts to issue European safe assets.[36]

    Conclusion

    Let me conclude.

    As we stand at this crossroads of global fragmentation, we must confront an uncomfortable truth: we are drifting toward a fractured economic and financial landscape where trust is eroded and alliances are strained.

    Central banks now face a double challenge: to be an anchor of stability in turbulent economic waters while reimagining their role in a world where multiple economic blocs are forming. The question is not whether we adapt, but how we mitigate the costs of fragmentation without sacrificing the potential of global integration.

    Our greatest risk lies not in the shocks we anticipate, but in the alliances we neglect, the innovations we overlook and the common ground we fail to find. The future of global prosperity hinges on our ability to use fragmentation as a catalyst to reinvent the common good.

    MIL OSI Europe News –

  • MIL-OSI Global: What Liberal Mark Carney’s election win in Canada means for Europe

    Source: The Conversation – Canada – By Katerina Sviderska, PhD Candidate in Slavonic Studies, University of Cambridge

    Just months ago, Canada’s Conservatives were leading the polls, surfing the wave of radical right ideas and rhetoric sweeping across the globe. But with the election victory of Mark Carney’s Liberal Party, Canada now stands out as a liberal anchor in a fractured West.

    This election may not only shape Canada’s domestic trajectory, but also carries significant implications for its international partnerships amid rising geopolitical uncertainty.

    As some European countries and the United States head towards isolationism, authoritarianism and turn to the East — even flirting with Russia — Canada’s continued Liberal leadership reinforces its position as a key ally for the European Union. Carney’s centrist and pro-EU attitude provides stability and relief for Europeans.

    From defence to trade and climate, Canada and the EU share deep economic and strategic ties. With a Liberal government, these connections will strengthen, offering both sides what they need the most: a reliable, like-minded partner at a time of transatlantic unpredictability.

    What does Carney’s victory mean specifically for the Canada-EU relationship?

    Trade as a strategic anchor

    Carney’s election offers new momentum for Canada-EU collaboration. His “blue liberalism” brings Canada ideologically closer to Europe’s current leadership — from Emmanuel Macron’s centrist France to the Christian Democratic Union-led coalition in Germany — providing fertile ground for pragmatic co-operation.

    Trade remains the foundation of the Canada-EU relationship, and both sides should aim to build on it. At the heart of this partnership is the Comprehensive Economic and Trade Agreement (CETA), which has increased EU-Canada trade by 65 per cent since 2017.

    European Council President António Costa has called the deal a success story providing clear proof “trade agreements are clearly better than trade tariffs.”

    As the U.S. speeds toward toward economic nationalism, CETA has become more than a commercial agreement — it’s a strategic anchor in the global liberal order. One of the Liberal government’s early priorities is likely to consolidate and strengthen CETA. In doing so, Canada can position itself as an ambitious partner, ready to seize new opportunities as European countries seek to reduce their reliance on the American market.

    Climate and energy: A balanced agenda

    Climate and energy, too, offer new opportunities for co-operation. Both Canada and the EU are navigating the tensions between pursuing ambitious decarbonization goals and managing economic and inflationary pressures. After scrapping Canada’s carbon tax on his first day in office, Carney has already hinted at a more pragmatic environmental stance.

    While pledging to maintain key climate policies — including the emissions cap on oil and gas — Carney’s government may recalibrate Canada’s approach to energy. This would mirror shifts among some European allies’ climate policies.

    This evolving transatlantic consensus — less about abandoning climate goals, more about making them economically viable — paves the way for closer co-operation based on a common goal: bolstering economic competitiveness while maintaining environmental credibility.

    Both Carney and the EU view the investment in new technologies as the path forward.

    As Europe accelerates its green agenda and implements new sustainability rules, only countries with strong environmental standards qualify as long-term partners. Canada, provided it stays the course on climate policies, is well-positioned to be a key partner in Europe’s green transition.

    Transatlantic defence co-operation

    Beyond trade and energy, defence co-operation between Canada and the EU is expected to surge. A key priority for the new Liberal government is to finally reach NATO’s benchmark of spending two per cent of gross domestic product on defence, a longstanding commitment that has eluded previous administrations.



    Read more:
    What does Donald Trump’s NATO posturing mean for Canada?

    This signal of rearmament reflects not only alignment with NATO expectations but also a broader understanding that liberal democracies must be prepared to defend themselves. Nowhere is this more pressing than in Ukraine, the epicentre of Europe’s geopolitical storm.

    Canada has been among the most reliable supporters of Ukraine since the onset of Russia’s full-scale invasion, aligning itself with Europe’s most committed nations — France, Poland, the Baltics and, increasingly, Germany.

    But as threats evolve, the battlefield also extends beyond Ukraine’s frontlines. Hybrid attacks — cyber, disinformation campaigns and foreign interference in democratic processes — now wash up on all shores. Canada’s National Cyber Threat Assessment 2025–26 identifies state-sponsored cyber operations as one of the most serious threats to democratic stability, particularly from Russia and China.



    Read more:
    Foreign interference threats in Canada’s federal election are both old and new

    In strengthening its defence collaboration, Ottawa is hoping to get a seat in the fight against autocracies. The question is no longer whether to engage, but how to lead in this era of layered and compounding threats coming from rivals like Russia and China — and now from the U.S., a historical Canadian ally.

    Under Carney’s leadership, Canada is likely to pursue a pragmatic and globally engaged liberalism definitively aligned with Europe. As Canada and the EU are both looking for reliable allies to weather the storm, this renewed western alliance could solidify around Ottawa and Brussels — anchored in shared democratic values and pragmatic leadership.

    Katerina Sviderska receives funding from Fonds de Recherche du Québec and the Gates Cambridge Foundation.

    Leandre Benoit receives funding from the Social Sciences and Humanities Research Council of Canada.

    – ref. What Liberal Mark Carney’s election win in Canada means for Europe – https://theconversation.com/what-liberal-mark-carneys-election-win-in-canada-means-for-europe-254775

    MIL OSI – Global Reports –

  • MIL-OSI Asia-Pac: Rosanna Law meets UAE sports chief

    Source: Hong Kong Information Services

    Secretary for Culture, Sports & Tourism Rosanna Law yesterday met Emirati officials and attended Arabian Travel Market 2025, a trade show, as she began a visit to Dubai, the United Arab Emirates.

    In the morning, Miss Law met the UAE’s Minister of Sports HE Ahmad Belhoul Al Falasi. The two discussed the development of Hong Kong and the UAE as global hubs for major international sporting events, professionalising the sports industry in both places, leveraging sports as a key economic driver, and fostering unity in society through sports participation.

    Miss Law spoke of Hong Kong’s commitment to nurturing elite sports talent by providing comprehensive support and professional training. She also highlighted the city’s vibrant horse racing culture. HE Al Falasi outlined the policies being implemented to develop sports in the UAE.

    Miss Law also extended an invitation to the minister to visit Hong Kong to explore further opportunities for sports co-operation.

    After the meeting, Miss Law paid a courtesy call on Consul-General of the People’s Republic of China in Dubai Ou Boqian. She reported on the Culture, Sports & Tourism Bureau’s recent work and outlined plans to foster collaboration between Hong Kong and the Middle East.

    In the afternoon, Miss Law attended Arabian Travel Market 2025, a leading international event for the Middle East’s hospitality industry.

    At the expo, she witnessed the signing of two memoranda of understanding at the Hong Kong Pavilion between the Hong Kong Tourism Board and two major travel agents in the Middle East, aimed at establishing a framework for future co-operation.

    Additionally, she met senior management from two airlines, Qatar Airways and Emirates, to discuss strengthening partnerships to promote Hong Kong as a premier travel destination for Middle East markets.

    In the evening, a dinner reception was co-hosted by the bureau, the Hong Kong Tourism Board and the Hong Kong Economic & Trade Office in Dubai, with around 70 guests attending.

    In her opening remarks, Miss Law described Hong Kong’s multifaceted tourism offerings, which she said can cater to visitors of all ages and interests. She also pointed to the new Kai Tak Sports Park as an exciting development that will host world-class sports and entertainment events.

    In addition, Miss Law underscored Hong Kong’s commitment to becoming a Muslim-friendly destination, and reiterated the city’s eagerness to deepen ties with the Middle East, not only by welcoming visitors from the region but also by encouraging more Hong Kong people to explore the Middle East for both leisure and business purposes.

    MIL OSI Asia Pacific News –

  • MIL-OSI: eQ Plc’s interim report Q1 2025 – eQ’s operating profit EUR 5.8 million

    Source: GlobeNewswire (MIL-OSI)

    eQ Plc interim report
    29 April 2025 at 8:00 AM

      
    January to March 2025 in brief

    • During the period under review, the Group’s net revenue totalled EUR 14.0 million (EUR 16.5 million from 1 Jan. to 31 Dec. 2024). The Group’s net fee and commission income was EUR 14.5 million (EUR 16.0 million).
    • The Group’s operating profit fell by 34% to EUR 5.8 million (EUR 8.8 million).
    • The Group’s profit was EUR 4.6 million (EUR 7.0 million).
    • The consolidated earnings per share were EUR 0.11 (EUR 0.17).
    • The net revenue of the Asset Management segment decreased by 5% to EUR 14.4 million (EUR 15.1 million) and the operating profit by 11% to EUR 7.9 million (EUR 8.9 million). The management fees of the Asset Management segment fell by 4% to EUR 13.5 million (EUR 14.0 million) and the performance fees fell by 19% to EUR 1.1 million (EUR 1.4 million). During the review period, the assets managed by eQ Asset Management grew to EUR 13.6 billion (EUR 13.4 billion on 31 Dec. 2024).
    • The net revenue of the Corporate Finance segment was EUR 0.1 million (EUR 0.8 million) and the operating profit was EUR -0.8 million (EUR 0.1 million).
    • The operating profit of the Investments segment was EUR -0.6 million (EUR 0.2 million). Operating profit was negatively impacted by the value changes of residential property funds.
    • The net cash flow from the Group’s own private equity and real estate fund investment operations was EUR -0.8 million (EUR 0.1 million).
    Key ratios 1-3/25 1-3/24 Change 1-12/24
    Net revenue, Group, MEUR 14.0 16.5 -15 % 65.6
    Net revenue, Asset Management, MEUR 14.4 15.1 -5 % 58.5
    Net revenue, Corporate Finance, MEUR 0.1 0.8 -91 % 5.3
    Net revenue, Investments, MEUR -0.6 0.2 -374 % 1.1
    Group administration and eliminations        
    Net revenue, MEUR 0.1 0.3   0.8
             
    Operating profit, Group, MEUR 5.8 8.8 -34 % 34.5
    Operating profit, Asset Management, MEUR 7.9 8.9 -11% 33.7
    Operating profit, Corporate Finance, MEUR -0.8 0.1 -1259% 1.5
    Operating profit, Investments, MEUR -0.6 0.2 -374 % 1.1
    Operating profit, Group administration, MEUR -0.6 -0.4   -1.8
             
    Profit for the period, MEUR 4.6 7.0 -35 % 27.4
           
    Key ratios 1-3/25 1-3/24 Change 1-12/24
    Earnings per share, EUR 0.11 0.17 -36 % 0.66
    Equity per share, EUR 1.23 1.25 -2 % 1.77
    Cost/income ratio, Group, % 58.3 46.6 25 % 47.4
             
    Liquid assets, MEUR 26.5 34.9 -24 % 17.0
    Private equity and real estate fund investments, MEUR 17.2 16.7 3 % 17.0
    Interest-bearing loans, MEUR 0.0 0.0 0 % 0.0
             
    Assets under management excluding reporting services, EUR billion 10.2 10.2 0 % 10.4
    Assets under management, EUR billion 13.6 13.3 2 % 13.4

    Acting CEO Janne Larma

    Global capital markets have been in turmoil in the early part of the year. In the first two months of the year, US stock markets remained at year-end levels, while stock prices in Europe rose by around 15%. In March, share prices fell in the US and remained flat in Europe. After the review period in April, share prices fell sharply in both Europe and the US following President Trump’s announcement of tariffs. The stock market slump eased briefly after President Trump announced a 90-day tariff freeze for several countries, excluding China.

    The tariffs were published only after the end of the review period, so they had no impact on the market development during the review period. The tariff war and geopolitical challenges have a significant impact on capital markets and uncertainty is currently very high. Uncertainty is always a negative factor for investors and this tends to lead to less risk-taking and fewer new positions. The customs war and the associated uncertainty are having a negative impact on economic development worldwide, inc. Europe. Similarly, interest rates have fallen significantly, especially in Europe, with the ECB cutting its deposit rate to 2.25% in April. This has a positive impact on financing costs and yield requirements, which in turn supports both the real estate market and equity investments.

    eQ’s operating profit EUR 5.8 million

    The net revenue of the Group during the period under review was EUR 14.0 million and the operating profit was EUR 5.8 million. Net revenue fell by 15 per cent and operating profit by 34 per cent from the previous year. Both Advium and the Investments segment made a negative result, which had a significant impact on the decrease in profit.

    eQ Asset Management’s operating profit EUR 7.9 million

    During the period under review, the net revenue of the Asset Management segment fell by 5 per cent to EUR 14.4 million. The decrease in net revenue, EUR 0.8 million, is explained by real estate asset management’s lower management fees. Private Equity management fees increased from last year, and equity and fixed income fees remained at the previous year’s level. During the review period, eQ Asset Management’s operating profit fell by 11 per cent to EUR 7.9 million.

    During the review period, we raised USD 143 million for our newest private equity fund, eQ PE XVII US. After the review period, in April we did another closing and the fund size rose to USD 168 million. We also signed new Private Equity programme fund agreements during the period. The challenging market situation is making fund raising difficult, but our strong and good track record allows us to fundraise this well. After the review period, we reorganised our residential funds. We established the eQ Residential III fund, to which we transferred two of our previous residential funds and raised EUR 37 million in subscriptions. We will continue fundraising for both the eQ PE XVII US and eQ Residential III funds.

    For open-ended real estate funds, the market situation has not changed much since the beginning of the year. The fall in interest rates is certainly improving the operating conditions in the real estate market, but market activity is still low. Most of the postponed redemptions of the eQ Community Properties Fund from the end of last year will be paid by 30 April 2025. eQ Commercial Properties Fund does not yet have the liquidity to pay the redemptions at the moment.

    Our aim is to serve our clients as well as possible, both in terms of returns and service. With this in mind, eQ Asset Management has reorganised itself at the beginning of the year. This has also included some recruitments and appointments to key positions. I strongly believe that our new organisation will enable better service and growth, as well as a more efficient and modern way of working.

    Advium suffered from weak market situation

    The number of mergers and acquisitions and real estate transactions in Finland was very low at the beginning of 2025. Advium did not complete any assignments in the review period. During the period under review, Advium’s net revenue totalled EUR 0.1 million (EUR 0.8 million). Operating profit was EUR -0.8 million (EUR 0.1 million).

    Given the market situation, Advium’s order book is at a good level. However, the completion of transactions is largely dependent on the overall capital market situation and its development.

    Investment’s profit fell

    The operating profit of the Investments segment fell from last year and was EUR -0.6 million (EUR 0.2 million). The profit was negative due to value changes of the investments. Private equity funds rose in value in the first quarter of the year, but residential funds fell. The balance sheet value of equity and real estate fund investments at the end of the reporting period was EUR 17.2 million (EUR 17.0 million at 31 December 2024). During the review period, eQ Plc made an investment commitment of USD 1 million to the eQ PE XVII US and EUR 1 million to the Residential III funds. Net cash flow during the period was EUR -0.8 million (EUR 0.1 million).

    Outlook (unchanged)

    The difficult market situation in the Finnish real estate market continued in 2024. Our assessment is that the real estate market levelled off towards the end of the year and that yield requirements generally stopped rising in the final quarter of the year. However, market liquidity remained at a very low level. The real estate market in general remains challenging. In several Finnish open-ended real estate funds, redemptions have not been completed on time and investors have had to wait for their money. Funds for redemption payments are mainly raised by selling properties and, as the transaction market remains quiet, redemption payments have had to be postponed. Lower interest rates and economic growth are having a positive impact on the real estate market. The market expects interest rates in Europe to continue to fall and the economy to gradually start to recover. If these estimates materialise, we expect 2025 to be a better year for the real estate market than 2024. 

    Due to the current situation, eQ’s real estate fund management fees are expected to decrease in 2025 compared to the previous year.

    Sales of eQ’s Private Equity products has continued to be strong, and we believe that Finnish asset management clients will increase the Private Equity allocations in their portfolios in the coming years. We estimate that eQ’s Private Equity fees will increase in 2025 compared to last year. The exit market for private equity funds was quieter than expected in 2024. As a result, the timing of Private Equity performance fees accruing to eQ has moved forward. Performance fees are expected to increase starting from 2026, with a number of private equity products expected to move into the performance fee phase.

    In traditional asset management, we believe we have a good market position. The development of fees is largely dependent on market development.

    ***

    eQ’s interim report 1 January to 31 March 2025 is enclosed to this release and it is also available on the company website at www.eQ.fi.

    eQ Plc

    Additional information:
    Janne Larma, acting CEO, tel. +358 9 6817 8920
    Antti Lyytikäinen, CFO, tel. +358 9 6817 8741

    Distribution: Nasdaq Helsinki, www.eQ.fi, media

    eQ is a Finnish group that concentrates on asset management and corporate finance business. eQ Asset Management offers a wide range of asset management services (including private equity funds and real estate asset management) for institutions and private individuals. The assets managed by the Group total approximately EUR 13.6 billion. Advium Corporate Finance, which is part of the Group, offers services related to mergers and acquisitions, real estate transactions and equity capital markets. The parent company eQ Plc’s shares are listed on Nasdaq Helsinki. More information about the Group is available on our website www.eQ.fi.

    Attachment

    The MIL Network –

  • MIL-OSI: Amundi: Results for the First quarter of 2025 – Record inflows at +€31bn

    Source: GlobeNewswire (MIL-OSI)

    Amundi: Results for the First quarter of 2025 

    Record inflows at +€31bn

    Record
    inflows    		   Assets under management1at an all-time high of €2.25tn at end of March 2025, +6% year-on-year

    Highest quarterly net inflows since 2021, at +€31bn in Q1

    • +€37bn in medium- to long-term assets excluding JVs, new quarterly record
    • Positive inflows in active management (+€6bn)
    • Strong ETF net inflows and gain of a big ESG equity index mandate with The People’s Pension (UK): +€21bn
         
    Strong growth in profit before tax   Profit before tax2of €458m, up +11% Q1/Q1, driven by:

    • revenue growth (+11%)
    • positive jaws effect
    • improved cost-income ratio to 52.4%2

    Adjusted net income2,3 close to €350m excluding impact of exceptional tax surcharge4 in France (-€46m)
         
    Confirmed strategic pillars
    success    		   Strong inflows in growth areas:

    • Third-party distribution +€8bn
    • Asia +€8bn
    • ETF +€10bn

    Amundi Technology: strong organic growth, integration of aixigo and revenues up +46% Q1/Q1

    Paris, 29 April 2025

    Amundi’s Board of Directors met on 28 April 2025 chaired by Philippe Brassac, and approved the financial statements for the first quarter of 2025.

    Valérie Baudson, Chief Executive Officer, said: “After a record year in 2024, Amundi continued this momentum in the first quarter of 2025. Quarterly net inflows are at their highest since 2021: our clients, whether they are individuals or institutions, have entrusted us with +€31bn more to manage. In particular, we won a major mandate from one of the UK’s largest pension funds in the fast-growing market for Defined Contribution pension plans.

    The business continues to reflect the relevance of our main growth pillars: net inflows were dynamic with Third-Party Distributors, in Asia and on ETFs, and Amundi Technology continues its sustained growth.

    The three transactions signed in 2024 reinforce this solid organic growth: Alpha Associates and aixigo have already contributed positively to the quarter’s results, the partnership with Victory Capital, closed on 1 April, now allows us to offer more US strategies while creating value for our shareholders.

    Amundi’s diversified model and agility allow us to effectively support our clients in all market environments and provide them with long-term growth opportunities. We continue to invest, redeploy our resources and optimise our cost base to adapt our platform, meet the changing needs of clients and develop new services for them. »

    * * * * *

    Highlights

    Continued organic growth thanks to confirmed successes in the strategic pillars

    2025 is the last year of implementation of the 2025 Ambitions plan, which sets a number of strategic pillars to accelerate the diversification of the Group’s growth drivers and exploit development opportunities. After a year 2024 during which several objectives were achieved a year ahead of schedule, the first quarter confirmed the momentum:

    • Third-Party Distribution recorded assets under management up over +15% year-on-year and net inflows over 12 months of +€33bn, of which +€8bn5 in the first quarter of 2025, mainly in MLT assets6, (+€7.6bn); net inflows this quarter were driven by ETFs and active management, diversified by geographical areas and positive in almost all countries in terms of MLT assets6, particularly in Asia (+€1.7bn); it is also diversified by types of client, with a confirmed commercial momentum with digital platforms, which account for c.25% of net inflows; it should be noted that a Workshop presenting the Third-Party Distribution business line will be held on Thursday 19 June in London, with the entire division’s management team;
    • Asia: assets under management were up +9% year-on-year despite the fall in the US dollar and the Indian rupee, to reach €462bn; net inflows for the quarter reached +€8bn, mainly from direct distribution (+€5bn compared to +€3bn for JVs), and is balanced between major client segments in direct distribution and JVs; it is also diversified by countries: Korea (+€3bn) thanks to the JV, China with the two JVs and institutional clients, Hong Kong (+€1.6bn) and Singapore (+€1.4bn) thanks to institutional and third-party distributors;
    • ETFs raised +€10bn this quarter, thanks to the success of US equity underlying strategies at the beginning of the quarter, and then in March with the success of the Stoxx Europe 600 ETF, which collected +€1.3bn in one month and exceeded €10bn in assets under management; innovative products were launched, with the ETF invested in short-duration eurozone sovereign green bonds, capitalising on the success of its long-duration big brother, which reached €3bn in assets under management;
    • Amundi Technology continues to grow: its revenues increased by +46% Q1/Q1, driven in equal parts by the integration of aixigo and strong organic growth; the business line has signed a partnership with Murex to offer in ALTO the functionalities of this company’s integrated OTC derivatives management and valuation platform, MX.3, which has more than 60,000 users in 65 countries; the partnership includes cross-selling and joint business development agreements.

    After the end of the first quarter

    • On 1 April, the partnership with Victory Capital, was closed and Amundi received 17.6 million shares, i.e. 21.2%7 of Victory Capital’s capital. In accordance with the Contribution Agreement and the completion of the remaining adjustments, we expect Amundi’s stake in Victory Capital to reach 26.1%7 in the next few months. This investment will be consolidated using the equity method and will start contributing to the Group’s results from the second quarter.
    • It should be noted that as of 8 April, after the drop in the equities and bond markets and at the trough of European equity markets since the end of the first quarter (Stoxx 600 -9%), the Group’s assets under management excluding JVs8 were down by just below -3% compared to 31 March 2025; as of 25 March, they had recovered to less than -2% vs. end March.
    • After the success of Ambitions 2025, a new three-year strategic plan will be presented in the fourth quarter.

    Focus on operations in the UK

    The winning of a large mandate with a pension fund illustrates the strong development of Amundi’s operations in the United Kingdom. Amundi has management and marketing/sales teams there and is experiencing strong growth in its business:

    • London is one of Amundi’s 6 global investment hubs, with €49bn under management for the entire Group, in charge of all emerging markets strategies as well as global and GBP fixed income strategies;
    • The distribution platform for local clients represents €66bn under management, balanced between institutional and third-party distribution; the commercial platform is complemented by Amundi Technology sales teams to serve British clients.

    The €21bn equity index mandate for The People’s Pension, one of the leading Master Trusts (multi-employer pension funds) in the Defined Contribution pension plan market, was won thanks to the depth and consistency of Amundi’s responsible investment methodology, applied in this case to an index management solution. It amplifies the strong commercial momentum in this Master Trust market segment, as Amundi is now a close partner of the two largest players.

    Activity

    Capital markets still up Q1/Q1, decline in the dollar and Indian rupee

    In the first quarter of 2025, both equities9and bond10markets continued to rise. Year-on-year, they gained +13% and +3% respectively in average. The market effect is therefore positive on the Group’s assets under management and revenues compared to the first quarter of 2024.

    The Indian rupee and the US dollar were both down -4% quarter-on-quarter, and -3% year-on-year for the Indian rupee while the US dollar is stable over the same period. The foreign exchange effect, which was neutral year-on-year, was therefore negative by around -1% on Amundi’s end-of-period assets under management in the first quarter.

    European fund management market in slow recovery

    Investor risk aversion persists in the European fund management market. In the first quarter of 2025, net inflows in open-ended funds11 continued their slow recovery compared to the beginning of 2024, at +€221bn in the first quarter, down slightly compared to the fourth quarter of 2024 (+€232bn) due to lower net inflows from money market funds (+€60bn). Active management continued its recovery, with +€70bn net inflows, and its rebalancing compared to passive management (+€91bn, of which +€82bn in ETFs). As in previous quarters, net flows were positive thanks to fixed income, and grew only as a result of lower outflows in equities and multi-assets.

    Highest quarterly net inflows for MLT assets6in Q1

    Assets under management1as at 31 March 2025 increased by +6.2% year-on-year, to reach the new record of €2,247bn. Over 12 months, in addition to market appreciation, they benefited from a high level of net inflows, at +€70bn, higher than the market & forex effect of +€53bn. The increase in assets under management also benefited from the integration of Alpha Associates since the beginning of April 2024 (+€7.9bn).

    In the first quarter of 2025, the forex effect was negative by -€26bn due to the fall of the US dollar and the Indian rupee against the euro. It was very slightly offset by a small positive market effect (+€2bn). The strong net inflows in the quarter were much higher than this negative forex effect.

    The first quarter net inflows totalled +€31bn, the highest level for a quarter since 2021, of which +€37bn in MLT assets6 excluding JVs, an all-time record.

    These net inflows benefited from the gain of the mandate of The People’s Pension (+€21bn). The rest of the MLT net inflows6 (+€16bn) comes from passive management, in particular ETFs (+€10bn) and active management (+€6bn). As in previous quarters, the latter was driven by fixed income strategies (+€11bn), in all client segments.
    The three main client segments contributed to net inflows of +€31bn:

    • the Retail segment, at +€6bn, thanks to Third-Party Distributors (+€8bn); net inflows were slightly positive at Amundi BOC WM while risk aversion continued to affect net inflows from Partner Networks: slightly positive in France (+€0.2bn) and negative in International business (-€3bn), due in particular to multi-asset strategies: -€2bn;
    • The Institutional segment, at +€22bn, of which +€33bn in MLT assets6, benefited from The People’s Pension mandate and a good level of net inflows, particularly bonds, in all sub-segments except the seasonal effect for Corporates and Employee Savings;
    • Finally JVs (+€3bn) benefited from dynamic net inflows in NH-Amundi (South Korea, +€3bn), while SBI FM (India, -€1bn) recorded outflows linked to end-of-fiscal-year operations and client caution after the correction in local equities markets since October 2024, even though net flows remained positive in the retail segment; ABC-CA (China) net inflows confirmed the stabilisation of the local market, and were positive by +€1bn excluding discontinued Channel Business operations, mainly driven by treasury products.

    Treasury products posted outflows of -€8.7bn, mainly due to particularly strong seasonal outflows from Corporates in the first quarter of this year (-€11.6bn) and to a lesser extent from arbitrages by CA & SG insurers (-€1.6bn) in favour of products with longer durations. All other client segments posted slightly positive net inflows in treasury products, reflecting the wait-and-see attitude in the face of volatility in risky assets markets.

    First quarter 2025 results

    Sharp increase in profit before tax2+11% Q1/Q1 thanks to top line growth

    Adjusted data2

    Profit before tax2reached €458m, up +10.7% compared to the first quarter of 2024.

    It includes contributions from Alpha Associates as well as aixigo, acquisitions of which were finalised in early April and early November 2024 respectively, and were therefore not included in the first quarter 2024. Their cumulative contribution to the profit before tax2 in the first quarter reached +€4m, i.e. +1pp of Q1/Q1 growth.

    The growth in profit before tax2 was mainly due to the increase in revenues.

    Adjusted net revenue2 amounted to €912m, up +10.7% compared to the first quarter of 2024, +9% at constant scope, driven by all sources of revenues:

    • net management fees increased by +7.7% compared to the first quarter of 2024, to €824m, which reflects the good level of activity, the increase in average assets under management excluding JVs (+8.8% over the same period), but also the negative product mix effect on revenue margins;
    • performance fees (€23m), which are traditionally more moderate in the first quarter due to the lower number of fund anniversaries during this period, nevertheless rose by +30.7% compared to the first quarter of 2024; they reflect the good performance of Amundi’s investment management, with c.70% of assets under management ranked in the first or second quartiles according to Morningstar12 over 1, 3 or 5 years, and 244 Amundi funds rated 4 or 5 stars by Morningstar12 as at 31 March;
    • Amundi Technology’s revenues, at €26m, continued to grow steadily (+46.2% compared to the first quarter of 2024), amplified this quarter by the consolidation of aixigo (+€4m); excluding aixigo, these revenues were up +21.2% organically;
    • finally, the Financial and other revenues2 amounted to €39m, up sharply compared to the first quarter of 2024 thanks to capital gains on the private equity portfolio in seed money and a positive mark-to-market from equity holdings, despite the impact of the fall in short-term rates in the euro zone.

    The increase in adjusted2operating expenses, €478m, is +8.8% compared to the first quarter of 2024, +6% at constant scope. It remains lower than that of revenues, thus generating a positive jaws effect of nearly 3 percentage points excluding the scope effect related to the acquisition of Alpha Associates and aixigo, reflecting the Group’s operational efficiency.

    In addition to the scope effect, this increase is mainly due to:

    • investments in the development initiatives of the 2025 Ambitions plan, including technology, third-party distribution and Asia;
    • provisioning for individual variable remuneration, in line with the growth in results.

    The cost-income ratio at 52.4% on an adjusted data basis2, improved compared to the same quarter last year and is in line with the Ambitions 2025 target (<53%).

    The adjusted2gross operating income (GOI) amounted to €434m, up +12.9% compared to the first quarter of 2024, +11.8% at constant scope, reflecting revenue growth.

    Share of net income of equity-accounted companies13, at €28m, down slightly compared to the first quarter of 2024, reflects the decline in net financial income of the main contributing entity, the Indian JV SBI FM. The decline in the Indian equities markets resulted in negative mark-to-market in the JV’s financial income, which nevertheless continues to benefit from strong growth in its activity with management fees up of over +20% Q1/Q1.

    The adjusted2corporate tax expense for the first quarter of 2025 reached -€155m, a very strong increase – +60.8% – compared to the first quarter of 2024.

    In France, in accordance with the Finance law for 2025, an exceptional tax contribution must be booked in fiscal year 2025. It is calculated on the average of the profits made in France in 2024 and 2025. This exceptional contribution is estimated14 to -€72m for the year as a whole, but it will not be accounted for on a straight-line basis over the quarters. It amounted to -€46m in the first quarter of 2025, with the rest spread over the next three quarters. Excluding this exceptional contribution, the adjusted2 tax expense would have been -€109m and the adjusted2 effective tax rate would be equivalent to that of the first quarter of 2024.

    Adjusted2net income amounts to €303m. Excluding the exceptional tax contribution, it would have been close to €350m, up +10% compared to the first quarter of 2024.

    The adjusted2net earnings per share in the first quarter of 2025 was €1.48, including -€0.22 related to the exceptional tax contribution in France. Excluding this exceptional tax contribution, adjusted2 earnings per share would therefore have been €1.70, up +9.6% compared to the first quarter of 2024.

    Accounting data in the first quarter of 2025

    Accounting net income, Group share amounted to €283m. It includes the exceptional tax contribution in France of -€46m.

    As in other quarters, accounting net income includes non-cash charges related to the acquisitions of Alpha Associates and aixigo and the amortisation of intangible assets related to distribution agreements and client contracts (including the corresponding new charges related to Alpha Associates), for a total of -€14m after tax. Integration costs related to the partnership with Victory Capital, closed on 1 April 2025, were also recorded in the first quarter, for a total of -€5m after tax. Furthermore, amortisation of intangible fixed assets adjustments after the integration of aixigo was also recognised in operating expenses -€1m after tax (See the details of all these elements in p. 11).

    Accounting net earnings per share in the first quarter of 2025 was €1.38, including the exceptional tax contribution in France.

    A solid financial structure, €1.2bn in surplus capital

    Tangible net assets15 amounted to €4.8bn as at 31 March 2025, up +€0.3bn or +7% compared to the end of 2024, in line with the quarter’s net income.

    The CET1 solvency ratio stood at 15.5%16 as at 31 March 2025.

    As indicated at the time of signing in July 2024, the partnership with Victory Capital will have no material effect on the ratio.

    The capital surplus at the end of the first quarter amounted to €1.2bn, taking into account the dividend to be paid for 2024, the net income for the first quarter and the related dividend provision.

    Future investments and operational efficiency

    This quarter, Amundi demonstrated its ability to:

    • Be agile and accompany its clients in different market contexts, thanks to its wide range of high-performing investment management expertise and product innovation;
    • Develop services to offer technological or investment management solutions to players in the entire savings value chain;
    • Offer a full range of Responsible Investment solutions, in order to adapt to all client demands;
    • Develop in Europe including in the United Kingdom;
    • Invest and accelerate on the growth pillars of its strategic plan: Asia, third-party distribution, ETFs, technology, services.

    To finance future investments and accelerate the reallocation of our resources towards our growth drivers, we set ourselves a cost optimisation target of €30 to €40m, to be achieved as from 2026.

    * * * * *

    APPENDICES

    Adjusted income statement2of the first quarter of 2025

    (M€)   Q1 2025 Q1 2024 % var.
    Q1/Q1
             
    Net revenue – Adjusted   912 824 +10.7%
    Net management fees   824 766 +7.7%
    Performance fees   23 18 +30.7%
    Technology   26 18 +46.2%
    Financial income and other income – Adjusted   39 23 +68.5%
    Operating expenses – Adjusted   (478) (439) +8.8%
    Cost/income ratio – Adjusted (%)   52.4% 53,3% -0.9pp
    Gross operating income – Adjusted   434 385 +12.9%
    Cost of risk & others   (4) (0) NS
    Share of net income of equity-accounted companies   28 29 -3.7%
    Income before tax – Adjusted   458 413 +10.7%
    Corporate tax – Adjusted   (155) (97) +60.8%
    Of which exceptional tax contribution in France   (46) – NS
    Non-controlling interests   1 1 +14.3%
    Net income Group share – Adjusted   303 318 -4.5%
    Amortisation of intangible assets, after tax   (14) (15) -7.4%
    Amortisation of aixigo PPA, after tax   (1) – –
    Integration costs, after tax   (5) – –
    Net income Group share   283 303 -6.6%
    Earnings per share (€)   1.38 1.48 -7.0%
    Earnings per share – Adjusted (€)   1.48 1.55 -4.9%

    Change in assets under management from the end of 2021 to the end of March 202517

    (€bn) Assets under management  

    Net

    inflows

    		 Market and forex effect Scope
    Effect    		   Change in AuM
    vs. prior quarter
    As of 31/12/2021 2,064         +14%18
    Q1 2022   +3.2 -46.4   –  
    As of 31/03/2022 2,021         -2.1%
    Q2 2022   +1.8 -97.7   –  
    As of 30/06/2022 1,925         -4.8%
    Q3 2022   -12.9 -16.3   –  
    As of 30/09/2022 1,895         -1.6%
    Q4 2022   +15.0 -6.2   –  
    As of 31/12/2022 1,904         +0.5%
    Q1 2023   -11.1 +40.9   –  
    As of 31/03/2023 1,934         +1.6%
    Q2 2023   +3.7 +23.8   –  
    As of 31/06/2023 1,961         +1.4%
    Q3 2023   +13.7 -1.7   –  
    As of 30/09/2023 1,973         +0.6%
    Q4 2023   +19.5 +63.8   -20  
    As of 31/12/2023 2,037         +3.2%
    Q1 2024   +16.6 +62.9   –  
    As of 31/03/2024 2,116         +3.9%
    Q2 2024   +15.5 +16.6   +8  
    30/06/2024 2,156         +1.9%
    Q3 2024   +2.9 +32.5   –  
    30/09/2024 2,192         +1.6%
    Q4 2024   +20.5 +28.2   –  
    31/12/2024 2,240         +2.2%
    Q1 2025   +31.1 -24.0   –  
    31/03/2025 2,247         +0.3%

    Total year-on-year between 31 March 2024 and 31 March 2025: +6.2%

    • Net inflows        +€70.0bn
    • Market effect        +€63.8bn
    • Forex effect        -€10.5bn
    • Scope effects        +€7.9bn        
      (Alpha Associates’ first consolidation in Q2 2024, the acquisition of aixigo has no effect on assets under management)

    Details of assets under management and net inflows by client segments19

    (€bn) AuM
    31.03.2025    		 AuM
    31.03.2024    		 % change /31.03.2024 Inflows
    Q1 2025    		 Inflows
    Q1 2024
    French Networks 139 137 +1.3% +0.2 +1.5
    International networks 162 165 -1.6% -2.7 -2.0
    Of which Amundi BOC WM 2 3 -21.2% +0.3 -0.2
    Third-Party Distributors 398 345 +15.6% +8.3 +7.0
    Retail 700 647 +8.2% +5.8 +6.5
    Institutional & Sovereigns (*) 550 511 +7.5% +30.1 +9.7
    Corporates 111 108 +2.1% -10.3 -4.2
    Employee savings plans 95 90 +6.0% -0.9 -0.9
    CA & SG Insurers 430 427 +0.7% +3.6 +1.0
    Institutional 1,186 1,137 +4.3% +22.4 +5.6
    JVs 362 332 +8.9% +2.9 +4.5
    Total 2,247 2,116 +6.2% +31.1 +16.6

    (*) Including funds of funds

    Details of assets under management and net inflows by asset classes19

    (€bn) AuM
    31.03.2025    		 AuM
    31.03.2024    		 % change /31.03.2024 Inflows
    Q1 2025    		 Inflows
    Q1 2024
    Equities 564 505 +11.7% +26.4 -2.6
    Multi-assets 271 280 -3.1% -1.0 -7.6
    Bonds 759 700 +8.4% +14.3 +13.9
    Real, alternative, and structured products 111 107 +4.2% -2.8 -0.3
    MLT ASSETS excl. JVs 1,705 1,591 +7.2% +36.9 +3.4
    Treasury products excl. JVs 180 193 -6.5% -8.7 +8.7
    TOTAL excluding JVs 1,885 1,784 +5.7% +28.2 +12.1
    JVs 362 332 +8.9% +2.9 +4.5
    TOTAL 2,247 2,116 +6.2% +31.1 +16.6
    Of which MLT assets 2,034 1,892 +7.5% +39.7 +7.7
    Of which Treasury products 213 224 -5.1% -8.6 +8.9

    Details of assets under management and net inflows by type of management and asset classes19

    (€bn) AuM
    31.03.2025    		 AuM
    31.03.2024    		 % change /31.03.2024 Inflows
    Q1 2025    		 Inflows
    Q1 2024
    Active management 1,149 1,117 +2.9% +6.3 +1.3
    Equities 204 209 -2.1% -3.9 -2.8
    Multi-assets 260 270 -3.6% -1.0 -8.0
    Bonds 685 639 +7.3% +11.2 +12.0
    Structured products 42 41 +3.7% -2.0 +0.6
    Passive management 445 368 +21.0% +33.4 +2.5
    ETFs & ETC 272 227 +19.8% +10.4 +5.0
    Index & Smart beta 173 140 +23.0% +23.0 -2.5
    Real and Alternative Assets 69 66 +4.5% -0.7 -0.9
    Real assets 65 61 +5.8% -0.6 -0.2
    Alternative 4 4 -12.8% -0.1 -0.7
    TOTAL MLT assets excluding JVs 1,705 1,591 +7.2% +36.9 +3.4
    Treasury products excl. JVs 180 193 -6.5% -8.7 +8.7
    TOTAL excluding JVs 1,885 1,784 +5.7% +28.2 +12.1
    JVs 362 332 +8.9% +2.9 +4.5
    TOTAL 2,247 2,116 +6.2% +31.1 +16.6

    Details of assets under management and net inflows by geographic area19

    (€bn) AuM
    31.03.2025    		 AuM
    31.03.2024    		 % change /31.03.2024 Inflows
    Q1 2025    		 Inflows
    Q1 2024
    France 1,001 978 +2.3% +0.5 +10.0
    Italy 198 208 -4.6% -1.9 -1.1
    Europe excluding France & Italy 456 391 +16.6% +23.7 +4.0
    Asia 462 423 +9.3% +7.8 +6.8
    Rest of the world 130 116 +11.7% +1.0 -3.0
    TOTAL 2,247 2,116 +6.2% +31.1 +16.6
    TOTAL outside France 1,246 1,138 +9.5% +30.6 +6.6

    Methodological appendix – APM

    Accounting and adjusted data

    Accounting data – They include

    • amortisation of intangible assets, recorded as other revenues, and from Q2 2024, other non-cash charges spread according to the schedule of payments of the price adjustment until the end of 2029; these expenses are recognised as deductions from net revenues, in financial expenses.
    • integration costs related to the transaction with Victory Capital and PPA amortisation related to the acquisition of aixigo recorded in the fourth quarter as operating expenses. No such costs were recorded in the first nine months of 2024.

    The aggregate amounts of these items are as follows for the different periods under review:

    • Q1 2024: -€20m before tax and -€15m after tax
    • Q4 2024: -€38m before tax and -€28m after tax
    • Q1 2025: -€29m pre-tax and -€20m after tax

    Adjusted data – In order to present an income statement that is closer to economic reality, the following adjustments have been made: restatement of the amortisation of distribution agreements with Bawag, UniCredit and Banco Sabadell, intangible assets representing the client contracts of Lyxor and, since the second quarter of 2024, Alpha Associates, as well as other non-cash charges related to the acquisition of Alpha Associates; these amortisations and non-cash expenses are recognised as a deduction from net revenues; restatement of the amortisation of a technology asset related to the acquisition of aixigo recognised in operating expenses. The integration costs for the transaction with Victory Capital are also restated.

    Acquisition of Alpha Associates

    In accordance with IFRS 3, recognition on Amundi’s balance sheet as at 01/04/2024 of:

    • a goodwill of €288m;
    • an intangible asset of €50m, representing client contracts, amortised on a straight-line basis until the end of 2030;
    • a liability representing the conditional price adjustment not yet paid, for €160m before tax, including an actuarial discount of -€30m, which will be amortized over 6 years.

    In the Group’s income statement, the following is recorded:

    • amortisation of intangible assets for a full-year charge of -€7.6m (-€6.1m after tax);
    • other non-cash expenses spread according to the schedule of payments of the price adjustment until the end of 2029; these expenses are recognised as deductions from net revenues, in financial expenses.

    In Q1 2025, amortisation of intangible assets was -€1.9m before tax and non-cash expenses were -€1.5m before tax (i.e. -€2.5m after tax).

    Acquisition of aixigo

    In accordance with IFRS 3, recognition on Amundi’s balance sheet at the date of acquisition of:

    • goodwill of €121m;
    • a technological asset of €36m representative of the goodwill attributed to aixigo’s software solutions, amortised on a straight-line basis over 5 years;

    The full-year amortisation expense of the technology asset was -€7.2m (-€4.8m after tax); in Q1 2025 the amortisation expense was -€1.8m (-€1.2m after tax); it is recognised in operating expenses.

    Alternative Performance Measures20

    In order to present an income statement that is closer to economic reality, Amundi publishes adjusted data that are calculated in accordance with the methodological appendix presented above.

    The adjusted data can be reconciled with the accounting data as follows:

    = accounting data
    = adjusted data
    (M€)     Q1 2025 Q1 2024   Q4 2024
                 
                 
    Net revenue (a)     892 804   901
    – Amortisation of intangible assets before tax     (18) (20)   (22)
    – Other non-cash expenses related to Alpha Associates     (1) 0   (1)
    Net revenue – Adjusted (b)     912 824   924
                 
    Operating expenses (c)     (486) (439)   (496)
    – Integration costs before tax     (7) 0   (13)
    – Amortisation of aixigo-related PPA before tax     (2) 0   (1)
    Operating expenses – Adjusted (d)     (478) (439)   (482)
                 
    Gross Operating Income (e)=(a)+(c)     406 364   405
    Gross operating income – Adjusted (f)=(b)+(d)     434 385   443
    Cost/income ratio (%) -(c)/(a)     54.5% 54.6%   55.1%
    Cost/income ratio – Adjusted (%) -(d)/(b)     52.4% 53.3%   52.1%
    Cost of risk & other (g)     (4) (0)   (3)
    Share of net income of equity-accounted companies (h)     28 29   29
    Profit before tax (i)=(e)+(g)+(h)     429 393   431
    Profit before tax – Adjusted (j)=(f)+(g)+(h)     458 413   469
    Corporate tax (k)     (147) (91)   (83)
    Corporate tax – Adjusted (l)     (155) (97)   (93)
    Non-controlling interests (m)     1 1   1
    Net income Group share (n)=(i)+(k)+(m)     283 303   349
    Net income Group share – Adjusted (o)=(j)+(l)+(m)     303 318   377
                 
    Earnings per share (€)     1.38 1.48   1.70
    Earnings per share – Adjusted (€)     1.48 1.55   1.84
                 

    Shareholding

        31 March 2025   31 December 2024   31 March 2024
    (units)   Number
    of shares    		 % of capital   Number
    of shares    		 % of capital   Number
    of shares    		 % of capital
    Crédit Agricole Group   141,057,399 68.67%   141,057,399 68.67%   141,057,399 68.93%
    Employees   4,128,079 2.01%   4,272,132 2.08%   2,869,026 1.40%
    Treasury shares   1,961,141 0.95%   1,992,485 0.97%   1,259,079 0.62%
    Free float   58,272,643 28.37%   58,097,246 28.28%   59,462,130 29.06%
                       
    Number of shares at the end of the period   205,419,262 100.0%   205,419,262 100.0%   204,647,634 100.0%
    Average number of shares since the beginning of the year   205,419,262 –   204,776,239 –   204,647,634 –
    Average number of shares quarter-to-date   205,419,262 –   205,159,257 –   204,647,634 –

    Average number of shares pro rata temporis.

    • The average number of shares increased by +0.1% between Q4 2024 and Q1 2025, and by +0.4% between Q1 2024 and Q1 2025.
    • A capital increase reserved for employees was recorded on 31 October 2024. 771,628 shares were created (approximately 0.4% of the share capital before the transaction).
    • Amundi announced on 7 October 2024 a buyback programme of up to 1 million shares (i.e. ~0.5% of the share capital before the transaction) to cover performance shares plans. It was finalised on November 27, 2024.        

    Financial communication calendar

    • Workshop to presenting the Third-Party Distribution business line – Thursday 19 June in London
    • General Shareholders’ Meeting – Tuesday 27 May 2025
    • Q2 and H1 2025 earnings release – Tuesday 29 July 2025
    • Q3 and 9-month 2025 earnings release – Tuesday 28 October 2025
    • New strategic three-year plan – in the fourth quarter 2025

    2024 dividend schedule: €4.25 per share

    • Ex dividend date: Monday 10 June 2025
    • Payment: from Wednesday 12 June 2025

    About Amundi

    Amundi, the leading European asset manager, ranking among the top 10 global players21, offers its 100 million clients – retail, institutional and corporate – a complete range of savings and investment solutions in active and passive management, in traditional or real assets. This offering is enhanced with IT tools and services to cover the entire savings value chain. A subsidiary of the Crédit Agricole group and listed on the stock exchange, Amundi currently manages more than €2.2 trillion of assets22.

    With its six international investment hubs23, financial and extra-financial research capabilities and long-standing commitment to responsible investment, Amundi is a key player in the asset management landscape.

    Amundi clients benefit from the expertise and advice of 5,700 employees in 35 countries.

    Amundi, a trusted partner, working every day in the interest of its clients and society.

    www.amundi.com   

    Press contacts:        
    Natacha Andermahr 
    Tel. +33 1 76 37 86 05
    natacha.andermahr@amundi.com 

    Corentin Henry
    Tel. +33 1 76 32 26 96
    corentin.henry@amundi.com

    Investor contacts:
    Cyril Meilland, CFA
    Tel. +33 1 76 32 62 67
    cyril.meilland@amundi.com 

    Thomas Lapeyre
    Tel. +33 1 76 33 70 54
    thomas.lapeyre@amundi.com 

    Annabelle Wiriath

    Tel. + 33 1 76 32 43 92

    annabelle.wiriath@amundi.com

    DISCLAIMER

    This document does not constitute an offer or invitation to sell or purchase, or any solicitation of any offer to purchase or subscribe for, any securities of Amundi in the United States of America or in France. Securities may not be offered, subscribed or sold in the United States of America absent registration under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements thereof. The securities of Amundi have not been and will not be registered under the U.S. Securities Act and Amundi does not intend to make a public offer of its securities in the United States of America or in France.

    This document may contain forward looking statements concerning Amundi’s financial position and results. The data provided do not constitute a profit “forecast” or “estimate” as defined in Commission Delegated Regulation (EU) 2019/980.

    These forward looking statements include projections and financial estimates based on scenarios that employ a number of economic assumptions in a given competitive and regulatory context, assumptions regarding plans, objectives and expectations in connection with future events, transactions, products and services, and assumptions in terms of future performance and synergies. By their very nature, they are therefore subject to known and unknown risks and uncertainties, which could lead to their non-fulfilment. Consequently, no assurance can be given that these forward looking statement will come to fruition, and Amundi’s actual financial position and results may differ materially from those projected or implied in these forward looking statements.

    Amundi undertakes no obligation to publicly revise or update any forward looking statements provided as at the date of this document. Risks that may affect Amundi’s financial position and results are further detailed in the “Risk Factors” section of our Universal Registration Document filed with the French Autorité des Marchés Financiers. The reader should take all these uncertainties and risks into consideration before forming their own opinion.

    The figures presented were prepared in accordance with applicable prudential regulations and IFRS guidelines, as adopted by the European Union and applicable at that date. The financial information set out herein do not constitute a set of financial statements for an interim period as defined by IAS 34 “Interim Financial Reporting” and has not been audited.

    Unless otherwise specified, sources for rankings and market positions are internal. The information contained in this document, to the extent that it relates to parties other than Amundi or comes from external sources, has not been verified by a supervisory authority or, more generally, subject to independent verification, and no representation or warranty has been expressed as to, nor should any reliance be placed on, the fairness, accuracy, correctness or completeness of the information or opinions contained herein. Neither Amundi nor its representatives can be held liable for any decision made, negligence or loss that may result from the use of this document or its contents, or anything related to them, or any document or information to which this document may refer.

    The sum of values set out in the tables and analyses may differ slightly from the total reported due to rounding.

    1        Assets under management and net inflows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of assets under management and net inflows from Asian JVs; for Wafa Gestion in Morocco, assets under management and net inflows are reported in proportion to Amundi’s share in the capital of the JV.
    2        Adjusted data: see p. 11
    3        Net income Group share
    4        Total tax expense in Q1 2025 of -€155m, of which the exceptional tax contribution (surcharge) in France booked in Q1 for -€46m; the total amount of the exceptional contribution estimated to be paid in fiscal year 2025 is estimated at -€72m; Q1 2025 adjusted net income including this surcharge was €303m.
    5        The inflows presented in this section are not cumulative, as they may overlap in part, for example an ETF sold to a third-party distributor in Asia.
    6        Medium to Long-Term Assets, excluding JVs
    7        4.9% voting rights
    8        Adjusted for the deconsolidation of Amundi US assets distributed to US clients
    9        Composite Index for equities: 50% MSCI World + 50% Eurostoxx 600
    10        Bloomberg Euro Aggregate for Fixed Income Markets
    11        Source: Morningstar FundFile, ETFGI. European & cross-border open-ended funds (excluding mandates and dedicated funds). Data as of end–March 2024.
    12        Source: Morningstar Direct, Broadridge FundFile – Open-ended funds and ETFs, global fund scope, March 2025; as a percentage of the assets under management of the funds in question; the number of Amundi’s open-ended funds rated by Morningstar was 1071 at the end of March 2025. © 2025 Morningstar, all rights reserved
    13        Reflecting Amundi’s share of the net income of minority JVs in India (SBI FM), China (ABC-CA), South Korea (NH-Amundi) and Morocco (Wafa Gestion),
    14        Under the assumption that FY 2025 taxable profit in France will be equivalent to that of 2024, before adjusting the average for actual FY 2025 results
    15        Shareholder’s equity excluding goodwill and other intangible assets
    16        According to the new definition of the ratio resulting from the CRR3 regulation (Capital Requirements Regulation 3) of the European Union; ratio calculated excluding Q1 accounting net income
    17        Assets under management and net inflows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of assets under management and net inflows from Asian JVs; for Wafa Gestion in Morocco, assets under management and net inflows are reported in proportion to Amundi’s share in the capital of the JV.
    18        Lyxor, integrated as of 31/12/2021; sale of Lyxor Inc. in Q4-23
    19        Assets under management and net inflows including assets under advisory, marketed assets and funds of funds, and taking into account 100% of assets under management and net inflows from Asian JVs; for Wafa Gestion in Morocco, assets under management and net inflows are reported in proportion to Amundi’s share in the capital of the JV; as of 01/01/2024, reclassification of short-term bond strategies (€30bn of assets under management) as Bonds ; previously classified as Treasury products until that date; assets under management up to this date have not been reclassified in this table
    20        See also the section 4.3 of the 2024 Universal Registration Document filed with the AMF on 16 April 2025 under number D25-0272
    21Source: IPE “Top 500 Asset Managers” published in June 2024 based on assets under management as of 31/12/2023
    22Amundi data as at 31/03/2025
    23Paris, London, Dublin, Milan, Tokyo and San Antonio (via our strategic partnership with Victory Capital)

    Attachment

    The MIL Network –

  • MIL-OSI Global: What Liberal Mark Carney’s projected election win in Canada means for Europe

    Source: The Conversation – Canada – By Katerina Sviderska, PhD Candidate in Slavonic Studies, University of Cambridge

    Just months ago, Canada’s Conservatives were leading the polls, surfing the wave of radical right ideas and rhetoric sweeping across the globe. But with the projected election victory of Mark Carney’s Liberal Party, Canada now stands out as a liberal anchor in a fractured West.

    This election may not only shape Canada’s domestic trajectory, but also carries significant implications for its international partnerships amid rising geopolitical uncertainty.

    As some European countries and the United States head towards isolationism, authoritarianism and turn to the East — even flirting with Russia — Canada’s continued Liberal leadership reinforces its position as a key ally for the European Union. Carney’s centrist and pro-EU attitude provides stability and relief for Europeans.

    From defence to trade and climate, Canada and the EU share deep economic and strategic ties. With a Liberal government, these connections will strengthen, offering both sides what they need the most: a reliable, like-minded partner at a time of transatlantic unpredictability.

    What does Carney’s victory mean specifically for the Canada-EU relationship?

    Trade as a strategic anchor

    Carney’s election offers new momentum for Canada-EU collaboration. His “blue liberalism” brings Canada ideologically closer to Europe’s current leadership — from Emmanuel Macron’s centrist France to the Christian Democratic Union-led coalition in Germany — providing fertile ground for pragmatic co-operation.

    Trade remains the foundation of the Canada-EU relationship, and both sides should aim to build on it. At the heart of this partnership is the Comprehensive Economic and Trade Agreement (CETA), which has increased EU-Canada trade by 65 per cent since 2017.

    European Council President António Costa has called the deal a success story providing clear proof “trade agreements are clearly better than trade tariffs.”

    As the U.S. speeds toward toward economic nationalism, CETA has become more than a commercial agreement — it’s a strategic anchor in the global liberal order. One of the Liberal government’s early priorities is likely to consolidate and strengthen CETA. In doing so, Canada can position itself as an ambitious partner, ready to seize new opportunities as European countries seek to reduce their reliance on the American market.

    Climate and energy: A balanced agenda

    Climate and energy, too, offer new opportunities for co-operation. Both Canada and the EU are navigating the tensions between pursuing ambitious decarbonization goals and managing economic and inflationary pressures. After scrapping Canada’s carbon tax on his first day in office, Carney has already hinted at a more pragmatic environmental stance.

    While pledging to maintain key climate policies — including the emissions cap on oil and gas — Carney’s government may recalibrate Canada’s approach to energy. This would mirror shifts among some European allies’ climate policies.

    This evolving transatlantic consensus — less about abandoning climate goals, more about making them economically viable — paves the way for closer co-operation based on a common goal: bolstering economic competitiveness while maintaining environmental credibility.

    Both Carney and the EU view the investment in new technologies as the path forward.

    As Europe accelerates its green agenda and implements new sustainability rules, only countries with strong environmental standards qualify as long-term partners. Canada, provided it stays the course on climate policies, is well-positioned to be a key partner in Europe’s green transition.

    Transatlantic defence co-operation

    Beyond trade and energy, defence co-operation between Canada and the EU is expected to surge. A key priority for the new Liberal government is to finally reach NATO’s benchmark of spending two per cent of gross domestic product on defence, a longstanding commitment that has eluded previous administrations.



    Read more:
    What does Donald Trump’s NATO posturing mean for Canada?

    This signal of rearmament reflects not only alignment with NATO expectations but also a broader understanding that liberal democracies must be prepared to defend themselves. Nowhere is this more pressing than in Ukraine, the epicentre of Europe’s geopolitical storm.

    Canada has been among the most reliable supporters of Ukraine since the onset of Russia’s full-scale invasion, aligning itself with Europe’s most committed nations — France, Poland, the Baltics and, increasingly, Germany.

    But as threats evolve, the battlefield also extends beyond Ukraine’s frontlines. Hybrid attacks — cyber, disinformation campaigns and foreign interference in democratic processes — now wash up on all shores. Canada’s National Cyber Threat Assessment 2025–26 identifies state-sponsored cyber operations as one of the most serious threats to democratic stability, particularly from Russia and China.



    Read more:
    Foreign interference threats in Canada’s federal election are both old and new

    In strengthening its defence collaboration, Ottawa is hoping to get a seat in the fight against autocracies. The question is no longer whether to engage, but how to lead in this era of layered and compounding threats coming from rivals like Russia and China — and now from the U.S., a historical Canadian ally.

    Under Carney’s leadership, Canada is likely to pursue a pragmatic and globally engaged liberalism definitively aligned with Europe. As Canada and the EU are both looking for reliable allies to weather the storm, this renewed western alliance could solidify around Ottawa and Brussels — anchored in shared democratic values and pragmatic leadership.

    Katerina Sviderska receives funding from Fonds de Recherche du Québec and the Gates Cambridge Foundation.

    Leandre Benoit receives funding from the Social Sciences and Humanities Research Council of Canada.

    – ref. What Liberal Mark Carney’s projected election win in Canada means for Europe – https://theconversation.com/what-liberal-mark-carneys-projected-election-win-in-canada-means-for-europe-254775

    MIL OSI – Global Reports –

  • MIL-OSI China: Announcement on Open Market Operations No.82 [2025]

    Source: Peoples Bank of China

    Announcement on Open Market Operations No.82 [2025]

    (Open Market Operations Office, April 29, 2025)

    The People’s Bank of China conducted reverse repo operations in the amount of RMB340.5 billion through quantity bidding at a fixed interest rate on April 29, 2025.

    Details of the Reverse Repo Operations

    Maturity

    Rate

    Bidding Volume

    Winning Bid Volume

    7 days

    1.50%

    RMB340.5 billion

    RMB340.5 billion

    Date of last update Nov. 29 2018

    2025年04月29日

    MIL OSI China News –

  • MIL-OSI Global: What Liberal Mark Carney’s Canadian projected election win means for Europe

    Source: The Conversation – Canada – By Katerina Sviderska, PhD Candidate in Slavonic Studies, University of Cambridge

    Just months ago, Canada’s Conservatives were leading the polls, surfing the wave of radical right ideas and rhetoric sweeping across the globe. But with the projected election victory of Mark Carney’s Liberal Party, Canada now stands out as a liberal anchor in a fractured West.

    This election may not only shape Canada’s domestic trajectory, but also carries significant implications for its international partnerships amid rising geopolitical uncertainty.

    As some European countries and the United States head towards isolationism, authoritarianism and turn to the East — even flirting with Russia — Canada’s continued Liberal leadership reinforces its position as a key ally for the European Union. Carney’s centrist and pro-EU attitude provides stability and relief for Europeans.

    From defence to trade and climate, Canada and the EU share deep economic and strategic ties. With a Liberal government, these connections will strengthen, offering both sides what they need the most: a reliable, like-minded partner at a time of transatlantic unpredictability.

    What does Carney’s victory mean specifically for the Canada-EU relationship?

    Trade as a strategic anchor

    Carney’s election offers new momentum for Canada-EU collaboration. His “blue liberalism” brings Canada ideologically closer to Europe’s current leadership — from Emmanuel Macron’s centrist France to the Christian Democratic Union-led coalition in Germany — providing fertile ground for pragmatic co-operation.

    Trade remains the foundation of the Canada-EU relationship, and both sides should aim to build on it. At the heart of this partnership is the Comprehensive Economic and Trade Agreement (CETA), which has increased EU-Canada trade by 65 per cent since 2017.

    European Council President António Costa has called the deal a success story providing clear proof “trade agreements are clearly better than trade tariffs.”

    As the U.S. speeds toward toward economic nationalism, CETA has become more than a commercial agreement — it’s a strategic anchor in the global liberal order. One of the Liberal government’s early priorities is likely to consolidate and strengthen CETA. In doing so, Canada can position itself as an ambitious partner, ready to seize new opportunities as European countries seek to reduce their reliance on the American market.

    Climate and energy: A balanced agenda

    Climate and energy, too, offer new opportunities for co-operation. Both Canada and the EU are navigating the tensions between pursuing ambitious decarbonization goals and managing economic and inflationary pressures. After scrapping Canada’s carbon tax on his first day in office, Carney has already hinted at a more pragmatic environmental stance.

    While pledging to maintain key climate policies — including the emissions cap on oil and gas — Carney’s government may recalibrate Canada’s approach to energy. This would mirror shifts among some European allies’ climate policies.

    This evolving transatlantic consensus — less about abandoning climate goals, more about making them economically viable — paves the way for closer co-operation based on a common goal: bolstering economic competitiveness while maintaining environmental credibility.

    Both Carney and the EU view the investment in new technologies as the path forward.

    As Europe accelerates its green agenda and implements new sustainability rules, only countries with strong environmental standards qualify as long-term partners. Canada, provided it stays the course on climate policies, is well-positioned to be a key partner in Europe’s green transition.

    Transatlantic defence co-operation

    Beyond trade and energy, defence co-operation between Canada and the EU is expected to surge. A key priority for the new Liberal government is to finally reach NATO’s benchmark of spending two per cent of gross domestic product on defence, a longstanding commitment that has eluded previous administrations.



    Read more:
    What does Donald Trump’s NATO posturing mean for Canada?

    This signal of rearmament reflects not only alignment with NATO expectations but also a broader understanding that liberal democracies must be prepared to defend themselves. Nowhere is this more pressing than in Ukraine, the epicentre of Europe’s geopolitical storm.

    Canada has been among the most reliable supporters of Ukraine since the onset of Russia’s full-scale invasion, aligning itself with Europe’s most committed nations — France, Poland, the Baltics and, increasingly, Germany.

    But as threats evolve, the battlefield also extends beyond Ukraine’s frontlines. Hybrid attacks — cyber, disinformation campaigns and foreign interference in democratic processes — now wash up on all shores. Canada’s National Cyber Threat Assessment 2025–26 identifies state-sponsored cyber operations as one of the most serious threats to democratic stability, particularly from Russia and China.



    Read more:
    Foreign interference threats in Canada’s federal election are both old and new

    In strengthening its defence collaboration, Ottawa is hoping to get a seat in the fight against autocracies. The question is no longer whether to engage, but how to lead in this era of layered and compounding threats coming from rivals like Russia and China — and now from the U.S., a historical Canadian ally.

    Under Carney’s leadership, Canada is likely to pursue a pragmatic and globally engaged liberalism definitively aligned with Europe. As Canada and the EU are both looking for reliable allies to weather the storm, this renewed western alliance could solidify around Ottawa and Brussels — anchored in shared democratic values and pragmatic leadership.

    Katerina Sviderska receives funding from Fonds de Recherche du Québec and the Gates Cambridge Foundation.

    Leandre Benoit receives funding from the Social Sciences and Humanities Research Council of Canada.

    – ref. What Liberal Mark Carney’s Canadian projected election win means for Europe – https://theconversation.com/what-liberal-mark-carneys-canadian-projected-election-win-means-for-europe-254775

    MIL OSI – Global Reports –

  • MIL-OSI China: China, Russia should strengthen coordination within BRICS: Chinese FM

    Source: People’s Republic of China – State Council News

    RIO DE JANEIRO, April 28 — Chinese Foreign Minister Wang Yi said on Monday that China and Russia, as founding members of BRICS, should strengthen coordination within the framework and deepen unity and cooperation among developing countries and emerging economies.

    Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, made the remarks when meeting with Russian Foreign Minister Sergei Lavrov.

    Wang said the two countries should work together to continuously implement the important consensus reached by the two heads of state and deliver tangible results across various fields of cooperation.

    For his part, Lavrov said Russia is willing to work with China to support each other in hosting commemorative events for the 80th anniversary of the victories of the Soviet Union’s Great Patriotic War and the Chinese People’s War of Resistance Against Japanese Aggression and in deepening practical cooperation across various fields.

    MIL OSI China News –

  • MIL-OSI Global: What Liberal Mark Carney’s Canadian election win means for Europe

    Source: The Conversation – Canada – By Katerina Sviderska, PhD Candidate in Slavonic Studies, University of Cambridge

    Just months ago, Canada’s Conservatives were leading the polls, surfing the wave of radical right ideas and rhetoric sweeping across the globe. But with the election victory of Mark Carney’s Liberal Party, Canada now stands out as a liberal anchor in a fractured West.

    This election not only shapes Canada’s domestic trajectory, but also carries significant implications for its international partnerships amid rising geopolitical uncertainty.

    As some European countries and the United States head towards isolationism, authoritarianism and turn to the East — even flirting with Russia — Canada’s continued Liberal leadership reinforces its position as a key ally for the European Union. Carney’s centrist and pro-EU attitude provides stability and relief for Europeans.

    From defence to trade and climate, Canada and the EU share deep economic and strategic ties. With a Liberal government, these connections will strengthen, offering both sides what they need the most: a reliable, like-minded partner at a time of transatlantic unpredictability.

    What does Carney’s victory mean specifically for the Canada-EU relationship?

    Trade as a strategic anchor

    Carney’s election offers new momentum for Canada-EU collaboration. His “blue liberalism” brings Canada ideologically closer to Europe’s current leadership — from Emmanuel Macron’s centrist France to the Christian Democratic Union-led coalition in Germany — providing fertile ground for pragmatic co-operation.

    Trade remains the foundation of the Canada-EU relationship, and both sides should aim to build on it. At the heart of this partnership is the Comprehensive Economic and Trade Agreement (CETA), which has increased EU-Canada trade by 65 per cent since 2017.

    European Council President António Costa has called the deal a success story providing clear proof “trade agreements are clearly better than trade tariffs.”

    As the U.S. speeds toward toward economic nationalism, CETA has become more than a commercial agreement — it’s a strategic anchor in the global liberal order. One of the Liberal government’s early priorities is likely to consolidate and strengthen CETA. In doing so, Canada can position itself as an ambitious partner, ready to seize new opportunities as European countries seek to reduce their reliance on the American market.

    Climate and energy: A balanced agenda

    Climate and energy, too, offer new opportunities for co-operation. Both Canada and the EU are navigating the tensions between pursuing ambitious decarbonization goals and managing economic and inflationary pressures. After scrapping Canada’s carbon tax on his first day in office, Carney has already hinted at a more pragmatic environmental stance.

    While pledging to maintain key climate policies — including the emissions cap on oil and gas — Carney’s government may recalibrate Canada’s approach to energy. This would mirror shifts among some European allies’ climate policies.

    This evolving transatlantic consensus — less about abandoning climate goals, more about making them economically viable — paves the way for closer co-operation based on a common goal: bolstering economic competitiveness while maintaining environmental credibility.

    Both Carney and the EU view the investment in new technologies as the path forward.

    As Europe accelerates its green agenda and implements new sustainability rules, only countries with strong environmental standards qualify as long-term partners. Canada, provided it stays the course on climate policies, is well-positioned to be a key partner in Europe’s green transition.

    Transatlantic defence co-operation

    Beyond trade and energy, defence co-operation between Canada and the EU is expected to surge. A key priority for the new Liberal government is to finally reach NATO’s benchmark of spending two per cent of gross domestic product on defence, a longstanding commitment that has eluded previous administrations.



    Read more:
    What does Donald Trump’s NATO posturing mean for Canada?

    This signal of rearmament reflects not only alignment with NATO expectations but also a broader understanding that liberal democracies must be prepared to defend themselves. Nowhere is this more pressing than in Ukraine, the epicentre of Europe’s geopolitical storm.

    Canada has been among the most reliable supporters of Ukraine since the onset of Russia’s full-scale invasion, aligning itself with Europe’s most committed nations — France, Poland, the Baltics and, increasingly, Germany.

    But as threats evolve, the battlefield also extends beyond Ukraine’s frontlines. Hybrid attacks — cyber, disinformation campaigns and foreign interference in democratic processes — now wash up on all shores. Canada’s National Cyber Threat Assessment 2025–26 identifies state-sponsored cyber operations as one of the most serious threats to democratic stability, particularly from Russia and China.



    Read more:
    Foreign interference threats in Canada’s federal election are both old and new

    In strengthening its defence collaboration, Ottawa is hoping to get a seat in the fight against autocracies. The question is no longer whether to engage, but how to lead in this era of layered and compounding threats coming from rivals like Russia and China — and now from the U.S., a historical Canadian ally.

    Under Carney’s leadership, Canada is likely to pursue a pragmatic and globally engaged liberalism definitively aligned with Europe. As Canada and the EU are both looking for reliable allies to weather the storm, this renewed western alliance could solidify around Ottawa and Brussels — anchored in shared democratic values and pragmatic leadership.

    Katerina Sviderska receives funding from Fonds de Recherche du Québec and the Gates Cambridge Foundation.

    Leandre Benoit receives funding from the Social Sciences and Humanities Research Council of Canada.

    – ref. What Liberal Mark Carney’s Canadian election win means for Europe – https://theconversation.com/what-liberal-mark-carneys-canadian-election-win-means-for-europe-254775

    MIL OSI – Global Reports –

  • MIL-OSI Global: What Canada’s election of Mark Carney’s Liberals means for Europe

    Source: The Conversation – Canada – By Katerina Sviderska, PhD Candidate in Slavonic Studies, University of Cambridge

    Just months ago, Canada’s Conservatives were leading the polls, surfing the wave of radical right ideas and rhetoric sweeping across the globe. But with the election victory of Mark Carney’s Liberal Party, Canada now stands out as a liberal anchor in a fractured West.

    This election not only shapes Canada’s domestic trajectory, but also carries significant implications for its international partnerships amid rising geopolitical uncertainty.

    As some European countries and the United States head towards isolationism, authoritarianism and turn to the East — even flirting with Russia — Canada’s continued Liberal leadership reinforces its position as a key ally for the European Union. Carney’s centrist and pro-EU attitude provides stability and relief for Europeans.

    From defence to trade and climate, Canada and the EU share deep economic and strategic ties. With a Liberal government, these connections will strengthen, offering both sides what they need the most: a reliable, like-minded partner at a time of transatlantic unpredictability.

    What does Carney’s victory mean specifically for the Canada-EU relationship?

    Trade as a strategic anchor

    Carney’s election offers new momentum for Canada-EU collaboration. His “blue liberalism” brings Canada ideologically closer to Europe’s current leadership — from Emmanuel Macron’s centrist France to the Christian Democratic Union-led coalition in Germany — providing fertile ground for pragmatic co-operation.

    Trade remains the foundation of the Canada-EU relationship, and both sides should aim to build on it. At the heart of this partnership is the Comprehensive Economic and Trade Agreement (CETA), which has increased EU-Canada trade by 65 per cent since 2017.

    European Council President António Costa has called the deal a success story providing clear proof “trade agreements are clearly better than trade tariffs.”

    As the U.S. speeds toward toward economic nationalism, CETA has become more than a commercial agreement — it’s a strategic anchor in the global liberal order. One of the Liberal government’s early priorities is likely to consolidate and strengthen CETA. In doing so, Canada can position itself as an ambitious partner, ready to seize new opportunities as European countries seek to reduce their reliance on the American market.

    Climate and energy: A balanced agenda

    Climate and energy, too, offer new opportunities for co-operation. Both Canada and the EU are navigating the tensions between pursuing ambitious decarbonization goals and managing economic and inflationary pressures. After scrapping Canada’s carbon tax on his first day in office, Carney has already hinted at a more pragmatic environmental stance.

    While pledging to maintain key climate policies — including the emissions cap on oil and gas — Carney’s government may recalibrate Canada’s approach to energy. This would mirror shifts among some European allies’ climate policies.

    This evolving transatlantic consensus — less about abandoning climate goals, more about making them economically viable — paves the way for closer co-operation based on a common goal: bolstering economic competitiveness while maintaining environmental credibility.

    Both Carney and the EU view the investment in new technologies as the path forward.

    As Europe accelerates its green agenda and implements new sustainability rules, only countries with strong environmental standards qualify as long-term partners. Canada, provided it stays the course on climate policies, is well-positioned to be a key partner in Europe’s green transition.

    Transatlantic defence co-operation

    Beyond trade and energy, defence co-operation between Canada and the EU is expected to surge. A key priority for the new Liberal government is to finally reach NATO’s benchmark of spending two per cent of gross domestic product on defence, a longstanding commitment that has eluded previous administrations.



    Read more:
    What does Donald Trump’s NATO posturing mean for Canada?

    This signal of rearmament reflects not only alignment with NATO expectations but also a broader understanding that liberal democracies must be prepared to defend themselves. Nowhere is this more pressing than in Ukraine, the epicentre of Europe’s geopolitical storm.

    Canada has been among the most reliable supporters of Ukraine since the onset of Russia’s full-scale invasion, aligning itself with Europe’s most committed nations — France, Poland, the Baltics and, increasingly, Germany.

    But as threats evolve, the battlefield also extends beyond Ukraine’s frontlines. Hybrid attacks — cyber, disinformation campaigns and foreign interference in democratic processes — now wash up on all shores. Canada’s National Cyber Threat Assessment 2025–26 identifies state-sponsored cyber operations as one of the most serious threats to democratic stability, particularly from Russia and China.



    Read more:
    Foreign interference threats in Canada’s federal election are both old and new

    In strengthening its defence collaboration, Ottawa is hoping to get a seat in the fight against autocracies. The question is no longer whether to engage, but how to lead in this era of layered and compounding threats coming from rivals like Russia and China — and now from the U.S., a historical Canadian ally.

    Under Carney’s leadership, Canada is likely to pursue a pragmatic and globally engaged liberalism definitively aligned with Europe. As Canada and the EU are both looking for reliable allies to weather the storm, this renewed western alliance could solidify around Ottawa and Brussels — anchored in shared democratic values and pragmatic leadership.

    Katerina Sviderska receives funding from Fonds de Recherche du Québec and the Gates Cambridge Foundation.

    Leandre Benoit receives funding from the Social Sciences and Humanities Research Council of Canada.

    – ref. What Canada’s election of Mark Carney’s Liberals means for Europe – https://theconversation.com/what-canadas-election-of-mark-carneys-liberals-means-for-europe-254775

    MIL OSI – Global Reports –

  • MIL-OSI China: New archaeological discoveries shed more light on Xizang’s history

    Source: People’s Republic of China – State Council News

    BEIJING, April 28 — Thanks to solid archaeological work over recent years, a series of breakthroughs have been achieved in the study of southwest China’s Xizang Autonomous Region’s history in Paleolithic, Neolithic and Metal Ages, according to a press conference on Monday.

    Shargan Wangdue, deputy head of the Xizang regional institute of cultural relics protection, said that through the excavation of new relics sites, Xizang’s known Paleolithic Age history has been expanded from under 10,000 years to its current range of 10,000 to 100,000 years.

    As concrete evidence, these new discoveries have dispelled the previous misconception that such ancient human relics are unlikely to exist in the region, which is known for its tough natural environment, with low oxygen levels and temperatures due to its high elevation, Shargan Wangdue said.

    These new findings also prove that the region had close connections with surrounding areas in the prehistoric era, rather than being isolated, he added.

    Last week, China announced its top 10 discoveries of 2024 — a list that includes the Mapu Tsho relics site, which is a Neolithic site in Xizang dating back over 4,000 years.

    Highlighting the archaeological value of the site, Shargan Wangdue said that it offers compelling evidence of the interaction, exchange and integration between various ethnic groups in China over the course of history, as well as evidence of the formation of a diverse yet unified Chinese civilization.

    MIL OSI China News –

  • MIL-OSI China: China, Kenya join hands on path to modernization

    Source: People’s Republic of China – State Council News

    NAIROBI, April 28 — For centuries, China and Kenya have shared a history of exchanges and cooperation. Last week, their relationship entered a new stage as Chinese President Xi Jinping held talks with Kenyan President William Ruto in Beijing, agreeing to elevate bilateral ties to a China-Kenya community with a shared future in the new era.

    Xi called on the two sides to enhance regular policy communication, build connectivity at a higher level, promote sustainable trade, explore diversified financial integration, carry forward the friendship forged through generations, and be leaders in advancing high-quality Belt and Road cooperation.

    SKILLS TRAINING

    Linet Wambui Kihoro, a 27-year-old railway safety engineer, works among tracks and equipment at the Mombasa-Nairobi Standard Gauge Railway, a flagship project under the Belt and Road Initiative. A graduate of Beijing Jiaotong University, Kihoro now applies her expertise to maintain the daily operation of Kenya’s railways.

    In January 2024, Xi replied to a letter from Kenyan students and alumni of Beijing Jiaotong University, including Kihoro.

    President Xi encouraged the Kenyan students to learn professional knowledge well, continue the traditional friendship and devote themselves to bilateral cooperation, she said.

    “The China-Kenya community with a shared future in the new era is not only a cooperation intention at the governmental level, but is also reflected in various aspects such as people-to-people connectivity, youth exchanges and cultural mutual learning,” she said.

    According to a joint statement released on Thursday, China and Kenya pledged to strengthen cooperation in such areas as industry, agriculture, higher education, vocational education and human resource training.

    An increasing number of young people, like Kihoro, are benefiting from China-Africa cooperation in education and capacity building. From the Mombasa-Nairobi Railway to the Swak Dam, the Nairobi Expressway and the Garissa Solar Power Plant, high-quality Belt and Road projects have not only improved the daily lives of Kenyans but also provided opportunities to learn new skills and knowledge.

    James Karimi Njuguna, a Kenyan engineer, participated in the upgrading of the Olkaria I power plant, Africa’s first geothermal plant, which had been struggling with corroded pipelines and outdated technology. “Chinese companies revitalized the geothermal fields by optimizing turbine structures and well layouts,” Njuguna said. “It was a technological revolution. They modernized the equipment, hired local employees and provided professional training, cultivating a new generation of technical experts in Kenya.”

    A report by the Kenya-China Economic and Trade Association showed that between 2022 and 2023, Chinese enterprises employed more than 60,000 local workers in Kenya, with a localization rate exceeding 90 percent. This not only increased local employment but also contributed to transforming the technological landscape.

    AGRICULTURAL COOPERATION

    In Matangi Tisa Village in Kenya’s Nakuru County, home to Kenya’s first demonstration village for China-Africa agricultural development and poverty reduction, people are busy planting tomatoes with the help of Chinese experts.

    For years, local tomato farming had been plagued by bacterial wilt, but villagers are hopeful of a bountiful harvest this season.

    When the Chinese and Kenyan presidents met during the Summit of the Forum on China-Africa Cooperation (FOCAC) held in Beijing last year, Xi said “the two sides should closely synergize the high-quality Belt and Road cooperation with Kenya Vision 2030, build an East African connectivity hub and industrial belt, and strengthen cooperation in such areas as digital economy, new energy, economy, trade, poverty reduction and agriculture development.”

    Among the 10 partnership actions announced by Xi at the 2024 FOCAC Summit is the partnership action for agriculture and livelihoods. Under this initiative, China has committed to building 100,000 mu (about 6,670 hectares) of standardized agricultural demonstration areas, sending 500 agricultural experts, and establishing a China-Africa agricultural science and technology innovation alliance.

    These commitments are injecting fresh momentum into Africa’s efforts toward agricultural modernization and poverty alleviation.

    In a recent interview with Xinhua, President Ruto praised China’s success in lifting hundreds of millions of people out of poverty, calling China’s experience highly relevant for African countries still grappling with poverty. He expressed hope to leverage Chinese expertise to advance Kenya’s agricultural modernization and industrialization.

    In Kenya’s Siaya County, 69-year-old farmer Peter Onyango was watching the clear waters flow through newly dug irrigation channels, eagerly anticipating a good harvest. Built by a Chinese company along the lower reaches of the Nzoia River, this irrigation project, the largest of its kind in Kenya, has significantly boosted local irrigation capacity.

    Officially operational in April, the canal is expected to enhance food security. When visiting the project in January, Ruto said that the new infrastructure would play a major role in advancing Kenya’s economic transformation by boosting agricultural productivity.

    STRENGTHENING ECONOMIC TIES

    Rains in April have breathed new life into the rolling tea plantations of western Kenya. Near the C22 highway built by a Chinese company, several tea processing factories are working at full speed.

    A few years ago, the road was little more than a muddy dirt track, often becoming impassable during the rainy season. “Truck wheels would get stuck, and sometimes water would seep into the tea boxes, ruining the harvest,” recalled driver John Murambi.

    Since the road was upgraded to a paved highway, Murambi can now make multiple deliveries a day, which has greatly increased his income. “We no longer have to worry about tea spoiling on the road,” he said.

    At the nearby Kipkebe Tea Factory, General Manager Silas Njibwakale said that since the completion of the road upgrading, transportation losses have dropped from about a quarter of total production to nearly zero. A once-impassable route has now become a major artery supporting local communities.

    Across Kenya, Chinese-built roads, railways and ports are helping break transportation bottlenecks for key exports like tea, coffee, flowers and avocados, allowing these goods to reach global markets more quickly and reliably.

    Thousands of miles away in Changsha, central China, the permanent exhibition hall of the China-Africa Economic and Trade Expo at Gaoqiao Grand Market is bustling with visitors. Launched by President Xi during the 2018 FOCAC Beijing Summit, the expo has become a vital platform showcasing African goods.

    Huang Zinan, who specializes in China-Africa trade, said her company has recently imported a batch of Kenyan avocados and is now negotiating with a local tea brand to feature the fruit as a premium ingredient. Initially focused on Kenyan flowers, she now plans to expand her business to more “African treasures.”

    “Products from Africa are gaining increasing recognition and popularity in China,” Huang said. “I hope to build not just a trade bridge, but also a bridge of culture and friendship across the seas.” Through something as simple as an avocado or a fresh flower, she hopes to tell the story of win-win cooperation between China, Kenya and the wider African continent.

    MIL OSI China News –

  • MIL-OSI China: China steps up policy support to facilitate travel, shopping for overseas visitors

    Source: People’s Republic of China – State Council News

    China steps up policy support to facilitate travel, shopping for overseas visitors

    Updated: April 29, 2025 08:40 Xinhua

    China has unveiled a new package of measures to streamline tax refund procedures and improve the shopping experience for overseas visitors.

    MIL OSI China News –

  • MIL-OSI China: 8th Digital China Summit held in Fuzhou, Fujian

    Source: People’s Republic of China – State Council News

    8th Digital China Summit held in Fuzhou, Fujian

    Updated: April 29, 2025 09:14 Xinhua
    A staff member demonstrates to operate a robot at the experience area of the 8th Digital China Summit in Fuzhou, southeast China’s Fujian Province, April 28, 2025. With more than 300 professional institutions attending, the 8th Digital China Summit opened its experience area to professional visitors on Monday, showcasing the nation’s digital transformation achievements amid robust growth in the digital sector. [Photo/Xinhua]
    A visitor interacts with a humanoid robot at the experience area of the 8th Digital China Summit in Fuzhou, southeast China’s Fujian Province, April 28, 2025. [Photo/Xinhua]
    A humanoid robot is seen at the experience area of the 8th Digital China Summit in Fuzhou, southeast China’s Fujian Province, April 28, 2025. [Photo/Xinhua]
    This photo taken on April 28, 2025 shows a firefighting robot at the experience area of the 8th Digital China Summit in Fuzhou, southeast China’s Fujian Province. [Photo/Xinhua]
    People visit the experience area of the 8th Digital China Summit in Fuzhou, southeast China’s Fujian Province, April 28, 2025. [Photo/Xinhua]
    A robot simulates to patrol inspection of transformer substation at the experience area of the 8th Digital China Summit in Fuzhou, southeast China’s Fujian Province, April 28, 2025. [Photo/Xinhua]
    This photo taken on April 28, 2025 shows a booth of China Railway at the experience area of the 8th Digital China Summit in Fuzhou, southeast China’s Fujian Province. [Photo/Xinhua]

    MIL OSI China News –

  • MIL-OSI China: Xi urges promoting healthy and orderly development of AI

    Source: People’s Republic of China – State Council News

    BEIJING, April 28 — On the afternoon of April 25, the Political Bureau of the Communist Party of China (CPC) Central Committee held its 20th group study session, which focused on strengthening the development and regulation of artificial intelligence (AI). While presiding over the session, Xi Jinping, general secretary of the CPC Central Committee, said in the face of the rapid evolution of new-generation AI technologies, China must fully leverage the strengths of the new system for mobilizing the resources nationwide, achieve self-reliance and strength in this regard, and prioritize practical application so as to promote the healthy and orderly development of AI in the country in a beneficial, safe and fair manner.

    Zheng Nanning, a professor with Xi’an Jiaotong University, made a presentation and put forward suggestions. Members of the Political Bureau of the CPC Central Committee listened attentively to the presentation and held discussions.

    After hearing the presentation and discussions, Xi delivered an important speech, emphasizing that AI, as a strategic technology leading the new round of scientific and technological revolution and industrial transformation, is profoundly reshaping people’s work and life. The CPC Central Committee attaches great importance to the development of AI. In recent years, efforts have been made to improve top-level design and strengthen overall planning, achieving systematic and comprehensive advancement of China’s AI capabilities. At the same time, deficiencies and weaknesses exist in areas such as basic theories and core technologies in key fields. Xi stressed the need to face up to the gaps and redouble efforts in order to comprehensively advance technological innovation, industrial development, and application empowerment in AI, improve regulatory systems and mechanisms, and firmly maintain the initiative in AI development and governance.

    Xi stressed that to gain a head start and secure a competitive edge in AI, it is a must to achieve breakthroughs in basic theories, methodologies and tools. He called for concentrated efforts on basic research, integrated endeavors for breakthroughs in core technologies such as high-end chips and basic software, as well as building a basic AI software and hardware system that is autonomous, controllable and functioning collaboratively. By leveraging AI to drive the transformation of scientific research paradigms, we can speed up achieving breakthroughs in scientific and technological innovation in all sectors.

    Xi noted that China has abundant data resources, a complete industrial system, vast application scenarios and huge market potential. He stressed the need to promote the deep integration of AI scientific and technological innovation with industrial innovation, build an enterprise-led synergistic innovation ecosystem that incorporates industries, universities, research institutes and end users, facilitate the transformation and upgrading of traditional industries, and open up new arenas in developing strategic emerging industries and future-oriented industries. He called for coordinated efforts to advance the construction of computing power infrastructure and promote the development, utilization and open sharing of data resources.

    Xi emphasized that strong policy support is essential for the development of AI, a new technology and emerging field. He urged solid efforts to make integrated use of policies concerning intellectual property rights, fiscal and taxation incentives, government procurement, and the opening up of infrastructure, as well as better leverage the role of sci-tech financing. Efforts should be made to promote AI education across all academic stages and enhance public awareness across society to cultivate a steady stream of high-caliber personnel. It is necessary to improve mechanisms for AI research support, career development and talent evaluation, and to create platforms and favorable conditions for all types of talent to fully display their capabilities.

    Xi noted that while AI presents unprecedented development opportunities, it also brings risks and challenges not seen before. He urged efforts to grasp the trends and regularity of AI development, accelerate formulation and improvement of laws and regulations, policies and systems, application norms and ethical guidelines, and establish systems for technical monitoring, early risk warning and emergency response, in a bid to guarantee its safety, reliability and controllability.

    Xi highlighted AI as a global public good capable of benefiting the humanity. He called for extensive international cooperation on AI, as well as endeavors to help the Global South enhance its technological capacity building, and contribute China’s effort in the drive to bridge the global AI divide. He also encouraged efforts to engage all parties for further alignment and coordination of development strategies, governance rules as well as technical standards, and work toward an early formation of a consensus-based framework and standards for global governance.

    MIL OSI China News –

  • MIL-OSI China: China certifies first group of long-term care specialists

    Source: People’s Republic of China – State Council News

    NANJING, April 28 — A total of 81 qualified practitioners on Monday received China’s first-ever long-term care specialist certificates in Nantong city in Jiangsu Province, marking the official launch of the newly recognized profession.

    Designed to address the growing needs of an aging population and the social challenges posed by chronic illnesses or disability, the long-term care specialists are expected to alleviate the burden on families struggling with the disability of family members.

    “The aging demographic has created enormous demand for long-term care. This profession will elevate service quality, drive innovation in health and wellness industries, and enhance public satisfaction,” said Li Tao, deputy director of the National Healthcare Security Administration.

    The certification program has three tiers — Level 5 (Elementary), Level 4 (Intermediate) and Level 3 (Advanced) — with exams combining written tests and simulated practical assessments to evaluate both knowledge and skills.

    The inaugural Jiangsu exam saw an 81 percent pass rate among 100 candidates, with applicants aged 20 to over 60.

    “This certificate recognizes my expertise and fuels my confidence in this career. Every senior deserves compassionate care, and I’m committed to serving more families with professionalism and dedication,” said Lu Yayun, a 51-year-old former child care worker.

    To standardize evaluations, Jiangsu has introduced a comprehensive regulatory framework with 21 documents covering exam administration and certification management, among other areas.

    MIL OSI China News –

  • MIL-OSI China: SCO health officials push for deeper coordination toward better future

    Source: People’s Republic of China – State Council News

    XI’AN, April 28 — Senior health officials from Shanghai Cooperation Organization (SCO) countries on Monday called for deepening public health collaboration, aiming to build a healthier future for all.

    Gathering in Xi’an, the capital of northwest China’s Shaanxi Province, health leaders from SCO member states and dialogue partners, and representatives of the SCO and the World Health Organization (WHO) attended the eighth SCO Health Ministers’ Meeting.

    Under the theme “Promoting Sustainable Health Development and Sharing a Healthy Future,” they discussed strategies for tackling shared global health challenges.

    Central to the discussions was the collective need to strengthen emergency response systems, expand access to primary healthcare, harness digital technologies, and promote the development of traditional medicine across the SCO countries.

    Presiding over the meeting, Lei Haichao, head of China’s National Health Commission, highlighted the role of dialogue and cooperation in pioneering reforms in regional and global health governance systems amid an evolving international landscape with overlapping crises.

    In his address, Lei outlined China’s domestic achievements in improving public health and healthcare reforms, and reaffirmed China’s commitment to advancing policy coordination and technological cooperation with SCO partners.

    He also called for greater use of existing platforms — including the China-SCO Emergency Medical Center, the SCO Hospital Cooperation Alliance, and the SCO Forum on Traditional Medicine — to enhance joint capacity-building efforts in emergency response, primary care, digital healthcare, and traditional medicine across the SCO countries.

    Senior health officials from Belarus, India, Iran, Pakistan, Russia, Kazakhstan and other SCO countries shared updates on their national health initiatives and echoed the need to strengthen cooperation within the SCO framework.

    As the rotating president of the SCO for 2024-2025, China has introduced the theme “SCO Year of Sustainable Development” to guide cooperation efforts across multiple sectors, with public health identified as a key priority.

    Speaking at the opening ceremony, SCO Secretary-General Nurlan Yermekbayev emphasized that building resilient and inclusive healthcare systems is essential to securing a sustainable future.

    “It is also the key to addressing the public health challenges faced by SCO countries, which together represent nearly half of humanity,” he added.

    Hans Henri P. Kluge, WHO Regional Director for Europe, praised China’s leadership in global health and its vision for building a global community of health for all.

    “I am glad to see the SCO evolving into a model of constructive multilateralism, rooted in mutual trust and dialogue,” Kluge said. “The WHO looks forward to deepening its cooperation with the SCO to tackle pressing health challenges together.”

    MIL OSI China News –

  • MIL-OSI New Zealand: Budget 2025: The Growth Budget

    Source: New Zealand Government

    Tēna koutou kātoa.  Greetings everyone. Can I thank you Malcolm for that kind introduction and thank everyone who has taken the time to be here today. My special thanks go to our hosts Metco Engineering and the Hutt Valley Chamber of Commerce.
    Let me also acknowledge my colleagues who join us today – your local MP and my Associate Minister of Finance the Hon Chris Bishop, together with the Minister of Education the Hon Erica Stanford. 
    This factory is a bit of a different setting than the conference centre or ballroom Ministers typically use for a pre-Budget speech. Why?
    Because places like this are the engine room of the New Zealand economy.
    Our Government knows that to speed up the economic recovery New Zealanders need we have to get this growth engine cranking.
    I appreciate that economic growth can be a bit of an abstract concept: the work that happens on this factory floor is what it’s all about.
    The workers at Metco solve problems, coming up with new products and manufacturing processes for a range of industries. They design and create clever components for customers around the world – producing everything from window stays through to bus stops.
    Metco has grown successfully by making investments in its own machinery and technology and by hiring and up-skilling great people who come up with innovative ideas and then make them happen.
    The growth of businesses like MetCo, and indeed of all the businesses represented in this room today, has created good jobs and livelihoods for the people of the Hutt Valley community. 
    It’s also allowed your businesses to make healthy tax contributions, which helps fund the Government’s investment in health services, schools, vital infrastructure and other important public spending. 
    Thank you for that contribution, we don’t take it for granted.
    New Zealand needs more success stories like MetCo: Your growth is what’s needed to deliver the kind of country we all want: with better living standards, better job opportunities and more financially secure families.
    That’s why our Government is going for growth.
    Earlier this year we released a snapshot of the work we have underway to support this growth agenda. Going for Growth sets out 87 specific actions we are taking under five key themes: 

    Developing talent
    Competitive business settings
    Innovation, technology and science
    Overseas investment and trade
    Infrastructure for growth

    I encourage you to check out the plan and the work underway. There’s more to come.  
    For today though, I’m going to switch out of my Economic Growth hat and into my Minister of Finance hat and focus my remarks on this year’s Budget. 
    The Context for Budget 2025
    The Government’s growth ambition has been front and centre as we’ve put the Budget together.  
    We know that global uncertainty is challenging for many of you and we’re determined our Budget will play a role in giving you confidence for the future.  
    But let me be blunt: it’s not the easiest time to be putting together a Budget.
    New Zealand is still recovering from the economic damage inflicted during the Covid period and we’re now facing the headwinds of further global instability.
    There is a pressing need for greater investments in our health system, our education system, our defence force and other areas, and very little money to pay for those investments.   
    Our Government is also acutely conscious of the challenging economic circumstances many New Zealanders have experienced in the past few years as we’ve emerged from a period of very high inflation and rapidly rising interest rates. 
    The pain is still rippling through our communities. Kiwis feel it in the higher prices they still pay for almost everything, in higher levels of unemployment and in struggling local businesses. The cost of living remains a top-of-mind concern.  
    The good news is that, despite significant global challenges, a steady economic recovery is now taking place here, with export-led growth gathering strength, business confidence coming off its lows and the primary sector benefiting from higher commodity prices and mostly favourable growing conditions. 
    Having considered everything happening around the world, the Treasury is continuing to forecast accelerating growth in the New Zealand economy over the coming year, with falling unemployment forecast to follow in the second half of the year. 
    There’s no magic wand to wish away the price rises baked in over recent years, but getting inflation and interest rates under control has been essential to achieving this economic recovery.  
    That’s why I always take pause to celebrate that since our Government came to office inflation has returned to normal levels, resulting in a 200 basis point reduction in interest rates. 
    We must not take this progress for granted. 
    While some pretend we can fix all the post-Covid damage with yet more extravagant government spending, the economic truth is that they are wrong. 
    The only way to sustainably overcome cost of living pressures is through successive years of stable inflation, careful investment and sustained economic growth. 
    Our Government is committed to the responsible fiscal management and growth supporting policies needed to make that happen. 
    Debt, deficit and the path out
    An important part of that effort is getting our own books in order. That’s a big task.
    The previous Government’s spending decisions during and after Covid have left New Zealand with a sea of debt and red-ink in the government finances.
    Government debt leapt up by almost $120 billion between 2019 and 2024, soaring from under $58 billion to $175 billion. 
    Those are big numbers, almost too big to comprehend, so let me explain it this way: That amounts to $22,000 more in debt for every New Zealander.
    You may well ask: what do we have to show for all that debt? 
    To give you some further historical context, New Zealand’s net core Crown debt, which once hovered between five and 25 per cent of GDP, rose to around 42 per cent last year. That’s the highest level of government debt New Zealand has shouldered since the mid-1990s.    
    Servicing that debt is expensive.  
    The interest bill on government debt has soared from $3.6 billion in 2014 to $8.9 billion last year.  That sum is more than annual core Crown expenses for the Police, Corrections, the Ministry of Justice, Customs and the Defence Force combined.
    Our Government’s goal is to put net core Crown debt on a downward trajectory towards 40 per cent of GDP and in the longer term keep it below that percentage. 
    Why?  Because allowing debt to keep spiralling would threaten the livelihood of every New Zealander.  
    We must ensure our country is financially strong and resilient enough to effectively respond to whatever the future may throw: be it earthquakes, extreme climatic events, biosecurity incursions or whatever. We need the world to keep seeing us as a good country to invest in and lend to. Manageable debt levels are an essential foundation for a strong economy and for your financial future.
    Achieving lower debt levels isn’t easy: especially because the government books remain out of balance.
    The post-Covid ‘structural deficit’ has left a big gap between what the country needs to fund to deliver on the spending commitments previous Budgets have made and what we need to earn to pay for that spending.  
    The Government is currently borrowing billions to bridge the gap.
    Every Thursday afternoon, New Zealand Debt Management issues around $500 million of Government bonds. Some of this is to that roll over existing bonds that have expired, but large chunks of it are for new borrowing. 
    That level of borrowing obviously can’t go on forever, or else our kids and grandkids will be left with unsustainable debt and considerable economic uncertainty. 
    Most of you can probably relate to this if you think about your own household budget: sure, sensible borrowing has its place, but no overdraft can be extended forever, and while you can keep giving the credit card a hammering, left unpaid, it does, eventually, get declined.  
    It’s worth bearing this in mind next time somebody tries to suggest to you that the New Zealand Government needs to spend more on something.  
    The second question always needs to be: but how will we pay for it?  
    Our Government’s strategy is to reduce the deficit over time, through a gradual programme of consolidation and careful spending choices.  
    We are committed to maintaining stability for New Zealanders, by continuing to invest in essential frontline services, infrastructure for growth and social supports like superannuation. 
    But delivering those things requires us to make careful choices about what we spend elsewhere. 
    That’s why we’ve committed ourselves to ongoing reprioritisation and fiscal restraint. It isn’t easy, but it is essential. 
    Believe me, I’d rather we were in clover, with money to spend on all the good ideas we hear. But the reality is that we are governing in tighter times.  
    Economic growth is essential to our fiscal repair job.  It’s simply the most effective way to raise government revenue, and to give us better choices for the future.
    Some have suggested a different approach. They say New Zealand should seek to close the deficit by simply adding more and higher rates of taxes to Kiwis’ wages, savings, wealth or capital.  
    We reject that approach.
    Punishing Kiwis with higher taxes right now would undermine our recovery, strangle growth and threaten the economic stability New Zealand needs. 
    It would pull the rug out from all those businesses and industries who are already just hanging on. And it would send an exodus of Kiwi talent and wealth to Australia and beyond.  
    It would be exactly the wrong recipe for a country whose future prospects depend on investment and growth.  
    Changes in the economic and fiscal outlook since HYEFU
    The Treasury’s last set of economic forecasts was presented at the Half Year Update in December.
    As you know, the global economic outlook has worsened considerably since that update.
    Tarriff announcements by the US government, countervailing tariffs being imposed by China and an uncertain path for future tariffs and exemptions have created volatile global economic conditions with forecasters around the world agreeing that global growth will be lower this year and next year than they were previously predicting.  
    New Zealand can’t escape the fallout. 
    Accordingly, Treasury has adjusted the forecasts it presented in December, reducing their assumptions of real GDP growth in New Zealand in 2025 and 2026.  
    New Zealand’s economy will still be growing, but not as fast as forecast a few months ago.
    That lower growth trajectory has an inevitable impact on the government books, reducing revenue and threatening our already difficult return to surplus and debt reduction.  
    At the same time, it’s clear that the country’s need for investment has not lessened: whether it be in the infrastructure we need for a more productive future, the funding needed to meet pressures in our health service and education system; or the need to rebuild our defence capability to meet the challenges of a less stable world.
    On top of all of that, it’s also the case that New Zealand’s long-term productivity and savings challenges haven’t gone away. 
    So there’s a huge amount to juggle in this year’s Budget.
    How has the Government managed these challenges?
    We started with that question that I suggested to you earlier:  How do we pay for the things we need now without putting our future economic stability at risk?  
    Our approach has been threefold.  
    First, there has been a very high bar for new initiatives in the Budget.  I can confirm today that there will be no lolly scramble in Budget 2025.  New spending initiatives are strictly limited to the most important priorities: our focus has been on health, education, law and order, defence, and a small number of critical social investments. We have also found room for modest measures to support business growth and to provide some carefully targeted cost of living relief.
    Second, beyond a small number of exceptions, government departments are not receiving additional funding in the Budget. We expect government agencies to adjust themselves to New Zealand’s limited fiscal means. This will require restraint in public sector wage increases and an ongoing commitment to getting more impact out of every dollar spent.  
    Third, we have undertaken a significant savings drive.  
    That effort has involved Ministers identifying areas of previously committed spending that can no longer be justified in light of the challenging circumstances New Zealand now faces.   
    We’ve analysed spending decisions made by previous governments and re-evaluated them in the context of today’s constraints. This has involved a line-by-line review of previous funding commitments, including money put aside in contingency.
    This reprioritisation exercise has required careful consideration and some tough, but necessary, choices. 
    At every step, we’ve asked ourselves two questions:

    Can these dollars be justified when we are borrowing to pay for them?
    Can we be sure these dollars will do more good in this area than if invested in our most pressing priorities – like funding essential health services, better educating our kids, defending New Zealand’s security or ensuring our future growth?

    Taken together, the Government’s savings drive has freed-up billions of dollars. Those savings will now be re-deployed to fund New Zealand’s most pressing priorities.
    Sticking to the fiscal strategy
    In this year’s Budget we’ve also had to carefully consider whether, in light of major global economic events, our fiscal strategy still remains achievable.
    The strategy is focused on two key goals: putting net debt on a downward trajectory and returning the books to an OBEGALx surplus by 2028.  
    This strategy matters, it matters for getting the books back in order and that’s about more than a set of numbers. It’s about keeping interest rates lower and providing a solid platform for future growth. It’s about ensuring New Zealand continues to be seen as a stable, reliable place to invest in and lend to. It’s about making sure we don’t leave our kids and grandkids with debts they just can’t repay. 
    At our last update in December – well before President Trump’s “Liberation Day” – we were expecting a small surplus in 2029, and it remained our intention to returning it a year earlier if possible.  
    I can confirm that our Government remains committed to those goals. 
    Sticking to them has required some careful adjustments in this year’s Budget.
    The key change we have made is to the size of this year’s “operating allowance” – that is the amount of money put aside for new spending.   
    At the Half Year Update, the Treasury forecast that the “allowance” in Budget 2025 would be $2.4 billion. 
    That was always a small envelope. However, as I outlined earlier, our approach has been to supplement our new spending by reprioritising funds from elsewhere.
    I am confirming today that the Government has reduced the size of our Budget 2025 operating allowance to $1.3 billion.
    This means we will be spending billions less over the forecast period than would have otherwise been the case. This will reduce the amount of extra borrowing our country needs to do over the next few years and it will keep us on track towards balanced books and debt reduction.
    The fiscal forecasts will not be finalised until later this week, but according to the latest numbers I have seen, this smaller operating allowance means we will continue to forecast a surplus in 2029. 
    The reality of global economic events is that if we’d pushed on with a larger operating allowance then we would be staring down the barrel of even bigger deficits and debt.  
    Let me emphasise once again: our Budget will still deliver increased investment in the things that really matter to Kiwis: like health, education, law and order, the defence force, business growth and targeted cost of living relief. Those things are important to you and they’re important to our Government. 
    Our careful reprioritisation approach means we can continue to make progress on today’s priorities while ensuring we are better positioned to face the challenges tomorrow will bring.
    Yes, those challenges loom large. 
    But let’s get real: global instability may not be a passing trend. New Zealand can’t expect to keep borrowing as much as we are now. The world doesn’t owe us any favours.
    This is not the time to kick the can down the road.  
    We must act now to secure our financial future.  
     
    Conclusion
    In conclusion, Budget 2025 takes place against a difficult global backdrop. 
    We can’t wish that away. What we can do is focus on the things in our control.
    Our Government is doing just that, by providing a predictable, steady approach to economic and fiscal management. 
    In an unstable world we are staying the course with responsible policies that provide stability, support investment and make New Zealand an attractive place for the world to trade and do business with.  
    These sensible policy approaches are the base from which we will deliver better choices and investments in the years ahead.
    With those basics in place, there is much for Kiwi businesses to feel optimistic about.  
    New Zealand has enormous economic growth potential. 
    We are a safe, secure country with a growing constellation of free trade agreements and a global reputation as a good place to do business.
    We are blessed with abundant natural resources – everything from ocean to freshwater, fertile land and temperate weather to abundant minerals.
    In a world worried about food security, we feed more than 40 million people with levels of efficiency and sustainability that are the envy of many.
    We have a long history of stable democracy, strong institutions and rule of law.
    We’ve delivered scientific breakthroughs and global success stories and we will continue to do so.  As I stand here today, we are world leaders in sending rocket to space – rockets that include components made right here in this factory. 
    Fundamentally, I’m optimistic about New Zealand’s economic future because I have faith in you: the New Zealanders who get out of bed each morning and go and make things happen.  
    I’m optimistic because I see how hard Kiwis work. I see how much effort Kiwi parents go to for their kids. I see how much employers and workers care about their communities. We are a smart, innovative, resilient people.  
    The next decade can be our decade. That requires good and steady government and careful spending choices. This year’s Budget will not be a lolly scramble.  What this Budget will be is a responsible Budget that secures New Zealand’s future.
     

    MIL OSI New Zealand News –

  • MIL-OSI USA: Rep. Burlison Announces Hearing on Revitalizing American Manufacturing, Protecting Critical Supply Chains

    Source: United States House of Representatives – Representative Eric Burlison (R-Missouri 7th District)

    WASHINGTON—Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs Chairman Eric Burlison (R-Mo.) announced a hearing today titled “Made in the USA: Igniting the Industrial Renaissance of the United States.” The subcommittee hearing will examine how cheap labor abroad, combined with overregulation and obstacles to permitting in the United States, contributed to the offshoring of American manufacturing and an over-reliance on China to fulfill manufacturing needs. To ensure our national security and safeguard supply chains, the subcommittee will discuss the importance of bringing manufacturing back to the United States and analyze economic opportunities it promises to benefit all Americans and spur innovation in the U.S. manufacturing industry.

    “For decades, America’s manufacturing industry has been gutted—sold off piece by piece to bidders overseas. The federal government has allowed cheap foreign labor, red tape, and a broken permitting system to hollow out America’s industrial might, handing over critical supply chains to the Chinese Communist Party.  Alongside President Trump, Congress is now taking action toward restoring the United States’ industrial strength and economic independence. Washington is waking up and realizing it’s time to bring American jobs, innovation, and production back home. I look forward to shining a light on the root causes of this manufacturing decline and exploring meaningful solutions that ensure our supply chains are strong, our workforce is empowered, and our future is built right here in the United States,” said Subcommittee Chairman Burlison.

    WHAT: Hearing titled “Made in the USA: Igniting the Industrial Renaissance of the United States.”

    DATE: Tuesday, April 29, 2025

    TIME: 11:00 a.m. ET

    LOCATION: HVC-210

    WITNESSES:

    • Kevin Czinger
      Founder and Executive Chairman
      Divergent 3D
    • Chris Power 
      Founder and Chief Executive Officer  
      Hadrian
    • Austin Bishop 
      Chief Executive Officer 
      New American Industrial Alliance

    The hearing will be open to the public and press and will be streamed online at https://oversight.house.gov/.

    MIL OSI USA News –

  • MIL-OSI USA: House Passes Miller-Meeks Bill to Boost Domestic Manufacturing

    Source: United States House of Representatives – Representative Mariannette Miller-Meeks’ (IA-02)

    Washington, D.C. – The House of Representatives tonight passed the Critical Infrastructure Manufacturing Feasibility Act, introduced by Reps. Mariannette Miller-Meeks (R-IA) and Kim Schrier (D-WA). The bipartisan legislation directs the Secretary of Commerce to conduct a study on the feasibility of manufacturing more critical infrastructure goods in the United States, with a focus on identifying rural communities best suited to support domestic production.

    The legislation now heads to the Senate for consideration.

    “With House passage of my bill HR 1721, we are now one step closer to getting this critical bill to President Trump’s desk and advancing his America First priorities,” said Rep. Miller-Meeks. “We can no longer allow adversarial nations, like China, to control the flow of goods and disrupt our economy. This bill takes a proactive step to assess how we can expand American manufacturing, particularly in rural areas, to protect our supply chains and strengthen our economy. I urge the Senate to swiftly pass this legislation that would greatly benefit the Hawkeye State.”

    “The Critical Infrastructure Manufacturing Feasibility Act is an important step toward revitalizing rural economies and strengthening America’s supply chains,” said Emily Benjamin, President & CEO of Lee County Economic Development Group. “While urban areas have continued to grow, many rural communities have faced population decline, compounding challenges such as workforce shortages, underutilized infrastructure, and disinvestment. This legislation recognizes the untapped potential of rural America to drive economic growth, create quality jobs, and bolster the nation’s critical infrastructure manufacturing capacity. We appreciate Congresswoman Miller-Meeks’ leadership in championing policies that create real opportunities for communities like Lee County.”

    “A data driven approach to the reshoring manufacturing into the United States, particularly in communities like the Quad Cities, is critical to the long-term success of the U.S. economy,” said Ryan Sempf, Executive Director of Government Affairs at the Quad Cities Chamber. “We appreciate Congresswoman Miller-Meeks proactively fighting to ensure America and the Quad Cities have the information necessary to compete for investment in critical supply chain industries”

    “We need a clear understanding of what products can and should be manufactured in the United States. We cannot remain dependent on just a handful of other countries for critical parts and products,” said Congresswoman Schrier. “That’s why I was proud to introduce this commonsense, bipartisan bill with Congresswoman Miller Meeks that will allow us to make evidence-based, thoughtful decisions about the role domestic manufacturing will play in the years ahead, and I am thrilled to see it pass the House.”

    Background:

    First introduced in the 118th Congress, The Critical Infrastructure Manufacturing Feasibility Act directs the Secretary of Commerce to study which high-demand critical infrastructure products are currently imported, assess the costs of domestic production, and evaluate the feasibility of manufacturing these goods in rural communities and industrial parks. The findings must be reported to Congress within 18 months of enactment.

    Click HERE to read the bill text for H.R. 1721, the Critical Infrastructure Manufacturing Feasibility Act

    MIL OSI USA News –

  • MIL-OSI Global: What Canada can learn from China on effectively engaging with Africa

    Source: The Conversation – Canada – By Isaac Odoom, Assistant Professor, Political Science, Carleton University

    Canada’s recent launch of a new Africa Strategy comes at a moment of profound geopolitical change and growing shifts in global development co-operation.

    As the western-led order and development model faces increasing scrutiny, countries like China are expanding their reach in Africa by linking development co-operation with commercial and strategic interests.

    These approaches resonate with many African governments, while others raise concerns, prompting an important question: How well does Canada’s new strategy respond to these concerns?



    Read more:
    Canada’s Africa strategy is a landmark moment for Canada-Africa relations, but still needs work

    Urgent need to diversify

    Canada’s pivot toward deeper engagement with Africa is timely. With ongoing tariff threats from the United States and a tense relationship with China, the need to diversify economic partnerships has become urgent.

    Africa’s fast-growing population, expanding middle class and continent-wide integration through the African Continental Free Trade Area (AfCFTA) offer real opportunities for commercial engagement.

    While historic, Canada’s new Africa Strategy would benefit from a clearer alignment between Africa’s economic prospects and Canada’s domestic economic challenges, such as labour shortages and trade diversification. Without a stronger economic dimension, Canada risks being perceived as all talk and little commitment.

    That said, Canada’s emphasis on “mutually beneficial partnerships” — echoing China’s language on Africa — is notable, especially as western donors pull back. However, without a coherent development focus, this principle may be viewed as transactional rather than strategic.

    The strategy provides a foundation to build from, but it enters a competitive arena. To build meaningful partnerships in Africa, Canada will need a more focused approach grounded in robust market research, sharper priorities and an informed understanding of Africa’s political and economic realities as well as its geopolitical context.

    As a researcher focused on Africa-China relations, I see important lessons Canada can draw from China’s engagement in Africa.

    Cautious Canada vs. confident China

    Over the past two decades, China has become Africa’s largest trading partner, with trade volumes reaching US$295 billion in 2024.

    Backed by state financing, Chinese firms have built roads, ports, railways, dams and telecom infrastructure across the continent. This presence is no accident: for the past 30 years, every Chinese foreign minister’s first trip abroad has been to Africa.

    Canada’s footprint, by contrast, remains modest. Canada’s merchandise trade with Africa was about $15 billion in 2024. Canada aspires to become a serious economic partner, but its commercial presence in Africa has been limited.

    Notably, while China is often criticized in western media, its image in Africa is more positive. Many African leaders and citizens see China as a pragmatic partner that delivers visible infrastructure and investment.

    China’s positioning as a fellow developing country also contrasts sharply with western models that often carry patronizing overtones. China’s readiness to finance large-scale projects in Africa with limited political strings attached has earned good will, even as concerns rightly persist about transparency, debt and governance.

    Emphasizing Canada’s differences

    Canada should take these dynamics seriously. The narrative of “countering China” in Africa, often promoted by western governments, is ineffective. It overlooks African agency, reduces the continent to a site of great power rivalry and fails to acknowledge that African governments are actively pursuing their choice of partners, instead of a single partner of choice.

    Rather than compete with China, Canada can be different. While Chinese infrastructure projects often align with African priorities, my own work on Chinese engagement in Ghana’s energy projects shows that these projects are often negotiated behind closed doors, with few accountability mechanisms and scant transparency in financing. These gaps create space for Canada to offer a distinct and credible alternative.

    Canada’s approach can be different, but it should be no less strategic. It may not match China in scale, but it can offer commercial partnerships rooted in transparency, accountability and collaboration with partners, including those from China.

    Many African governments and civil society entities are calling for exactly this kind of engagement, particularly as citizens demand greater scrutiny over foreign investment. By focusing on responsible business practices, labour standards, environmental safeguards and good governance, Canada can develop a values-based model of economic engagement.

    Despite this potential, Canada’s new Africa Strategy lacks financial commitment. Canada’s 2022 Indo-Pacific Strategy was backed by a $2.3 billion envelope. The Africa Strategy’s success will ultimately depend on its ability to mobilize concrete resources and sustained engagement.

    The strategy rightly points to Africa’s economic potential, but stronger links to Canada’s domestic priorities, such as a workforce strategy, a trade road map and implementation tools, would enhance its impact.

    References to the AfCFTA are promising, but Canadian businesses need clearer guidance and support. Realizing the strategy’s goals will require measurable targets, dedicated programming and sustained investment.

    A different kind of engagement

    Canada’s past engagement in Africa has been rooted in diplomacy, development co-operation and peacekeeping. These remain valuable, but today’s African leaders are also seeking trade, investment and private-sector partnerships.

    To become a trusted economic partner, Canada should engage with purpose by introducing targeted financing tools — such as credit lines or investment guarantees — to help Canadian businesses manage risk and seize opportunities aligned with AfCFTA.



    Read more:
    African countries could unlock billions in local and global trade – what’s working and what’s not

    It should also focus on strategic sectors where it already has strengths, like clean energy, health innovation, fintech, agri-business and infrastructure.

    By investing in robust research and in dialogue with the African diaspora, business leaders and governance institutions, Canada strengthens commercial ties while prioritizing transparency, accountability and collaboration. Co-operation in innovation (for example, joint research on climate-smart agriculture or vaccines) could also yield benefits for both sides.

    In an increasing multipolar environment, Africa is not waiting for Canada. It’s assessing and comparing competing external partners. Canada’s ability to position itself as a viable alternative depends not on replicating China’s scale, but on seeing Africa as a true partner and offering mutual partnerships that appeal to Africans and Canadian alike.

    The new Africa Strategy sets an important tone for renewed engagement, but its success will depend on real investment and implementation, which so far lacks dedicated funding. Filling these gaps should be the next step, regardless of who wins Monday’s election.

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

    – ref. What Canada can learn from China on effectively engaging with Africa – https://theconversation.com/what-canada-can-learn-from-china-on-effectively-engaging-with-africa-252894

    MIL OSI – Global Reports –

  • MIL-OSI: NXP Semiconductors Reports First Quarter 2025 Results, Announces Management Transition

    Source: GlobeNewswire (MIL-OSI)

    EINDHOVEN, The Netherlands, April 28, 2025 (GLOBE NEWSWIRE) — NXP Semiconductors N.V. (NASDAQ: NXPI) today reported financial results for the first quarter, which ended March 30, 2025. “NXP delivered quarterly revenue of $2.84 billion, in-line with the midpoint of guidance. NXP’s first-quarter results and guidance for the second quarter underpin a cautious optimism that NXP continues to effectively navigate through a challenging set of market conditions. We are operating in a very uncertain environment influenced by tariffs with volatile direct and indirect effects. Considering these external factors, we are redoubling our efforts to manage what is in our direct control, enabling NXP to drive solid profitability and earnings,” said Kurt Sievers, NXP President and Chief Executive Officer.

    The company announced that Mr. Sievers has informed the Board of Directors of his intention to retire from NXP at the end of 2025. “Kurt has been a dynamic, visionary, and highly effective CEO of NXP since May 2020,” said Julie Southern, NXP’s Chair of the Board of Directors. “He has been instrumental in leading the definition and implementation of NXP’s strategy to be the leader in intelligent systems at the edge within the Automotive and Industrial & IoT end markets. After a successful 30-year career with NXP, we are saddened to see Kurt retire. We and the entire NXP community thank him for his leadership and wish him the absolute best in his retirement.”

    Following a comprehensive and thorough succession planning process, NXP’s Board of Directors announced that it has unanimously approved Mr. Rafael Sotomayor to succeed Mr. Sievers as President, effective April 28, 2025. Messrs. Sievers and Sotomayor will work closely to orchestrate a smooth leadership transition until October 28, 2025, when Mr. Sotomayor will assume the role of President and Chief Executive Officer. “Rafael has been an integral part of creating and shaping NXP’s strategy and enabling the company’s success. We are confident he is ideally suited to assume the role of President and CEO at NXP, and to execute the company’s vision for leadership in the intelligent systems at the edge within the Automotive and Industrial & IoT end markets,” said Ms. Southern.

    Mr. Sievers’ departure is a purely personal decision and is not related to any disagreement with the Board of Directors, or any issues relating to the strategic or financial performance of the company.

    Key Highlights for the First Quarter 2025:

    • Revenue was $2.84 billion, down 9 percent year-on-year;
    • GAAP gross margin was 55.0 percent, GAAP operating margin was 25.5 percent and GAAP diluted Net Income per Share was $1.92;
    • Non-GAAP gross margin was 56.1 percent, non-GAAP operating margin was 31.9 percent, and non-GAAP diluted Net Income per Share was $2.64;
    • Cash flow from operations was $565 million, with net capex investments of $138 million, resulting in non-GAAP free cash flow of $427 million;
    • Capital return during the quarter was $561 million, representing 131 percent of first quarter non-GAAP free cash flow. Share buybacks were $303 million and dividends paid during the quarter were $258 million. After the end of the first quarter, between March 31, 2025, and April 25, 2025, NXP executed via a 10b5-1 program additional share repurchases totaling $90 million;
    • On January 7, 2025, NXP announced the MCX L14x and MCX L25x, the first families in the ultra-low-power L Series of the MCX microcontroller portfolio. The MCX L series features a dual-core architecture with an independent ultra-low-power sense domain to enable challenging battery-limited applications, such as sensors for industrial monitoring, building management, and flow metering;
    • On January 8, 2025, Honeywell and NXP announced an expansion of its partnership that will accelerate aviation product development and chart the path for autonomous flight. The Honeywell Anthem cockpit is powered by NXP’s i.MX 8 applications processors to help improve operational efficiency, safety and unlock value for pilots and operators. This builds on the companies’ existing relationship, which is focused on helping optimize how building management systems sense and securely control energy consumption;
    • On January 15, 2025, NXP announced it has secured a €1 billion loan from the European Investment Bank (EIB) to advance the company’s RDI investments across its broad portfolio of semiconductor solutions. The €1 billion loan facility carries a weighted average interest rate of 4.54 percent when drawn in dollar denominated tranches, under the current market conditions and has a duration of six years;
    • On February 10, 2025, NXP announced the agreement to acquire Kinara Inc., an industry leader in high performance, energy-efficient and programmable discrete neural processing units (NPUs) to enable intelligence at the edge solutions. The all-cash transaction was valued at $307 million and is expected to close in the first half of 2025, subject to customary closing conditions, including regulatory clearances;
    • On March 11, 2025, NXP announced the new S32K5 family of automotive microcontrollers (MCU), the automotive industry’s first 16nm FinFET MCU with embedded magnetic RAM (MRAM). The S32K5 MCU family will extend the NXP CoreRide platform with pre-integrated zonal and electrification system solutions for scalable software-defined vehicle (SDV) architectures.

    Summary of Reported First Quarter 2025 ($ millions, unaudited) (1)

      Q1 2025 Q4 2024 Q1 2024 Q – Q Y – Y
    Total Revenue $ 2,835   $ 3,111   $ 3,126   -9 % -9 %
    GAAP Gross Profit $ 1,560   $ 1,678   $ 1,783   -7 % -13 %
    Gross Profit Adjustments (i) $ (31 ) $ (111 ) $ (35 )    
    Non-GAAP Gross Profit $ 1,591   $ 1,789   $ 1,818   -11 % -12 %
    GAAP Gross Margin   55.0 %   53.9 %   57.0 %    
    Non-GAAP Gross Margin   56.1 %   57.5 %   58.2 %    
    GAAP Operating Income (Loss) $ 723   $ 675   $ 856   7 % -16 %
    Operating Income Adjustments (i) $ (181 ) $ (390 ) $ (224 )    
    Non-GAAP Operating Income $ 904   $ 1,065   $ 1,080   -15 % -16 %
    GAAP Operating Margin   25.5 %   21.7 %   27.4 %    
    Non-GAAP Operating Margin   31.9 %   34.2 %   34.5 %    
    GAAP Net Income (Loss) attributable to Stockholders $ 490   $ 495   $ 639   -1 % -23 %
    Net Income Adjustments (i) $ (183 ) $ (322 ) $ (201 )    
    Non-GAAP Net Income (Loss) Attributable to Stockholders $ 673   $ 817   $ 840   -18 % -20 %
    GAAP diluted Net Income (Loss) per Share (ii) $ 1.92   $ 1.93   $ 2.47   — % -22 %
    Non-GAAP diluted Net Income (Loss) per Share (ii) $ 2.64   $ 3.18   $ 3.24   -17 % -19 %
    Additional information          
      Q1 2025 Q4 2024 Q1 2024 Q – Q Y – Y
    Automotive $ 1,674 $ 1,790 $ 1,804 -6 % -7 %
    Industrial & IoT $ 508 $ 516 $ 574 -2 % -11 %
    Mobile $ 338 $ 396 $ 349 -15 % -3 %
    Comm. Infra. & Other $ 315 $ 409 $ 399 -23 % -21 %
    DIO   169   151   144    
    DPO   62   65   65    
    DSO   34   30   26    
    Cash Conversion Cycle   141   116   105    
    Channel Inventory (weeks)   9   8   7    
    Gross Financial Leverage (iii) 2.4x 2.1x 1.9x    
    Net Financial Leverage (iv) 1.6x 1.5x 1.3x    
               
    1. Additional Information for the First Quarter 2025:
      1. For an explanation of GAAP to non-GAAP adjustments, please see “Non-GAAP Financial Measures”.
      2. Refer to Table 1 below for the weighted average number of diluted shares for the presented periods.
      3. Gross financial leverage is defined as gross debt divided by trailing twelve months adjusted EBITDA.
      4. Net financial leverage is defined as net debt divided by trailing twelve months adjusted EBITDA.

        5. Guidance for the Second Quarter 2025: ($ millions, except Per Share data) (1)

           
          GAAP   Reconciliation   non-GAAP
          Low   Mid   High       Low   Mid   High
        Total Revenue $2,800   $2,900   $3,000       $2,800   $2,900   $3,000
        Q-Q -1%   2%   6%       -1%   2%   6%
        Y-Y -10%   -7%   -4%       -10%   -7%   -4%
        Gross Profit $1,533   $1,604   $1,675   $(29)   $1,562   $1,633   $1,704
        Gross Margin 54.8%   55.3%   55.8%       55.8%   56.3%   56.8%
        Operating Income (loss) $680   $741   $802   $(182)   $862   $923   $984
        Operating Margin 24.3%   25.6%   26.7%       30.8%   31.8%   32.8%
        Financial Income (expense) $(100)   $(100)   $(100)   $(12)   $(88)   $(88)   $(88)
        Tax rate 18.5%-19.5%       17.0%-18.0%
        Equity-accounted investees $(8)   $(8)   $(8)   $(6)   $(2)   $(2)   $(2)
        Non-controlling interests $(9)   $(9)   $(9)       $(9)   $(9)   $(9)
        Shares – diluted 255.0   255.0   255.0       255.0   255.0   255.0
        Earnings Per Share – diluted $1.78   $1.97   $2.16       $2.46   $2.66   $2.86


        Note (1) Additional Information:

        1. GAAP Gross Profit is expected to include Purchase Price Accounting (“PPA”) effects, $(7) million; Share-based Compensation, $(15) million; Other Incidentals, $(7) million;
        2. GAAP Operating Income (loss) is expected to include PPA effects, $(33) million; Share-based Compensation, $(115) million; Restructuring and Other Incidentals, $(34) million;
        3. GAAP Financial Income (expense) is expected to include Other financial expense $(12) million;
        4. GAAP Results relating to equity-accounted investees is expected to include results relating to non-foundry equity-accounted investees $(6) million;
        5. GAAP diluted EPS is expected to include the adjustments noted above for PPA effects, Share-based Compensation, Restructuring and Other Incidentals in GAAP Operating Income (loss), the adjustment for Other financial expense, the adjustment for results relating to non-foundry equity-accounted investees and the adjustment on Tax due to the earlier mentioned adjustments.

        NXP has based the guidance included in this release on judgments and estimates that management believes are reasonable given its assessment of historical trends and other information reasonably available as of the date of this release. Please note, the guidance included in this release consists of predictions only, and is subject to a wide range of known and unknown risks and uncertainties, many of which are beyond NXP’s control. The guidance included in this release should not be regarded as representations by NXP that the estimated results will be achieved. Actual results may vary materially from the guidance we provide today. In relation to the use of non-GAAP financial information see the note regarding “Non-GAAP Financial Measures” below. For the factors, risks, and uncertainties to which judgments, estimates and forward-looking statements generally are subject see the note regarding “Forward-looking Statements.” We undertake no obligation to publicly update or revise any forward-looking statements, including the guidance set forth herein, to reflect future events or circumstances.

        Non-GAAP Financial Measures

        In managing NXP’s business on a consolidated basis, management develops an annual operating plan, which is approved by our Board of Directors, using non-GAAP financial measures, that are not in accordance with, nor an alternative to, U.S. generally accepted accounting principles (“GAAP”). In measuring performance against this plan, management considers the actual or potential impacts on these non-GAAP financial measures from actions taken to reduce costs with the goal of increasing our gross margin and operating margin and when assessing appropriate levels of research and development efforts. In addition, management relies upon these non-GAAP financial measures when making decisions about product spending, administrative budgets, and other operating expenses. We believe that these non-GAAP financial measures, when coupled with the GAAP results and the reconciliations to corresponding GAAP financial measures, provide a more complete understanding of the Company’s results of operations and the factors and trends affecting NXP’s business. We believe that they enable investors to perform additional comparisons of our operating results, to assess our liquidity and capital position and to analyze financial performance excluding the effect of expenses unrelated to core operating performance, certain non-cash expenses and share-based compensation expense, which may obscure trends in NXP’s underlying performance. This information also enables investors to compare financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key metrics used by management.

        These non-GAAP financial measures are provided in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The presentation of these and other similar items in NXP’s non-GAAP financial results should not be interpreted as implying that these items are non-recurring, infrequent, or unusual. Reconciliations of these non-GAAP measures to the most comparable measures calculated in accordance with GAAP are provided in the financial statements portion of this release in a schedule entitled “Financial Reconciliation of GAAP to non-GAAP Results (unaudited).” Please refer to the NXP Historic Financial Model file found on the Financial Information page of the Investor Relations section of our website at https://investors.nxp.com for additional information related to our rationale for using these non-GAAP financial measures, as well as the impact of these measures on the presentation of NXP’s operations.

        In addition to providing financial information on a basis consistent with GAAP, NXP also provides the following selected financial measures on a non-GAAP basis: (i) Gross profit, (ii) Gross margin, (iii) Research and development, (iv) Selling, general and administrative, (v) Amortization of acquisition-related intangible assets, (vi) Other income, (vii) Operating income (loss), (viii) Operating margin, (ix) Financial Income (expense), (x) Income tax benefit (provision), (xi) Results relating to non-foundry equity-accounted investees, (xii) Net income (loss) attributable to stockholders, (xiii) Earnings per Share – Diluted, (xiv) EBITDA, adjusted EBITDA and trailing 12 month adjusted EBITDA, and (xv) free cash flow, trailing 12 month free cash flow and trailing 12 month free cash flow as a percent of Revenue. The non-GAAP information excludes, where applicable, the amortization of acquisition related intangible assets, the purchase accounting effect on inventory and property, plant and equipment, merger related costs (including integration costs), certain items related to divestitures, share-based compensation expense, restructuring and asset impairment charges, extinguishment of debt, foreign exchange gains and losses, income tax effect on adjustments described above and results from non-foundry equity-accounted investments.

        The difference in the benefit (provision) for income taxes between our GAAP and non-GAAP results relates to the income tax effects of the GAAP to non-GAAP adjustments that we make and the income tax effect of any discrete items that occur in the interim period. Discrete items primarily relate to unexpected tax events that may occur as these amounts cannot be forecasted (e.g., the impact of changes in tax law and/or rates, changes in estimates or resolved tax audits relating to prior year tax provisions, the excess or deficit tax effects on share-based compensation, etc.).

        Conference Call and Webcast Information

        The company will host a conference call with the financial community on Tuesday, April 29, 2025 at 8:00 a.m. U.S. Eastern Daylight Time (EDT) to review the first quarter 2025 results in detail.

        Interested parties may preregister to obtain a user-specific access code for the call here.

        The call will be webcast and can be accessed from the NXP Investor Relations website at www.nxp.com. A replay of the call will be available on the NXP Investor Relations website within 24 hours of the actual call.

        About NXP Semiconductors

        NXP Semiconductors N.V. (NASDAQ: NXPI) is the trusted partner for innovative solutions in the automotive, industrial & IoT, mobile, and communications infrastructure markets. NXP’s “Brighter Together” approach combines leading-edge technology with pioneering people to develop system solutions that make the connected world better, safer, and more secure. The company has operations in more than 30 countries and posted revenue of $2.84 billion in 2024. Find out more at www.nxp.com.

        Forward-looking Statements

        This document includes forward-looking statements which include statements regarding NXP’s business strategy, financial condition, results of operations, market data, as well as any other statements which are not historical facts. By their nature, forward-looking statements are subject to numerous factors, risks and uncertainties that could cause actual outcomes and results to be materially different from those projected. These factors, risks and uncertainties include the following: market demand and semiconductor industry conditions; our ability to successfully introduce new technologies and products; the demand for the goods into which NXP’s products are incorporated; trade disputes between the U.S. and China, potential increase of barriers to international trade and resulting disruptions to NXP’s established supply chains; the impact of government actions and regulations, including restrictions on the export of US-regulated products and technology; increasing and evolving cybersecurity threats and privacy risks, including theft of sensitive or confidential data; the ability to generate sufficient cash, raise sufficient capital or refinance corporate debt at or before maturity to meet both NXP’s debt service and research and development and capital investment requirements; our ability to accurately estimate demand and match our production capacity accordingly or obtain supplies from third-party producers to meet demand; our access to production capacity from third-party outsourcing partners, and any events that might affect their business or NXP’s relationship with them; our ability to secure adequate and timely supply of equipment and materials from suppliers; our ability to avoid operational problems and product defects and, if such issues were to arise, to correct them quickly; our ability to form strategic partnerships and joint ventures and to successfully cooperate with our alliance partners; our ability to win competitive bid selection processes; our ability to develop products for use in customers’ equipment and products; the ability to successfully hire and retain key management and senior product engineers; global hostilities, including the invasion of Ukraine by Russia and resulting regional instability, sanctions and any other retaliatory measures taken against Russia and the continued hostilities and the armed conflict in the Middle East, which could adversely impact the global supply chain, disrupt our operations or negatively impact the demand for our products in our primary end markets; the ability to maintain good relationships with NXP’s suppliers; and a change in tax laws could have an effect on our estimated effective tax rate. In addition, this document contains information concerning the semiconductor industry, our end markets and business generally, which is forward-looking in nature and is based on a variety of assumptions regarding the ways in which the semiconductor industry, our end markets and business will develop. NXP has based these assumptions on information currently available, if any one or more of these assumptions turn out to be incorrect, actual results may differ from those predicted. While NXP does not know what impact any such differences may have on its business, if there are such differences, its future results of operations and its financial condition could be materially adversely affected. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak to results only as of the date the statements were made. Except for any ongoing obligation to disclose material information as required by the United States federal securities laws, NXP does not have any intention or obligation to publicly update or revise any forward-looking statements after we distribute this document, whether to reflect any future events or circumstances or otherwise. For a discussion of potential risks and uncertainties, please refer to the risk factors listed in our SEC filings. Copies of our SEC filings are available on our Investor Relations website, www.nxp.com/investor or from the SEC website, www.sec.gov.

        For further information, please contact:

        Investors:
        Jeff Palmer 
        jeff.palmer@nxp.com
        +1 408 205 0687        		 Media:
        Paige Iven
        paige.iven@nxp.com
        +1 817 975 0602
           
        NXP-CORP


        NXP Semiconductors
        Table 1: Condensed consolidated statement of operations (unaudited)

        ($ in millions except share data) Three months ended
          March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
                   
        Revenue $ 2,835     $ 3,111     $ 3,126  
        Cost of revenue   (1,275 )     (1,433 )     (1,343 )
        Gross profit   1,560       1,678       1,783  
        Research and development   (547 )     (612 )     (564 )
        Selling, general and administrative   (281 )     (323 )     (306 )
        Amortization of acquisition-related intangible assets   (27 )     (28 )     (51 )
        Total operating expenses   (855 )     (963 )     (921 )
        Other income (expense)   18       (40 )     (6 )
        Operating income (loss)   723       675       856  
        Financial income (expense):          
        Other financial income (expense)   (92 )     (91 )     (70 )
        Income (loss) before income taxes   631       584       786  
        Benefit (provision) for income taxes   (130 )     (77 )     (141 )
        Results relating to equity-accounted investees   (4 )     (2 )     (1 )
        Net income (loss)   497       505       644  
        Less: Net income (loss) attributable to non-controlling interests   7       10       5  
        Net income (loss) attributable to stockholders   490       495       639  
                   
        Earnings per share data:          
        Net income (loss) per common share attributable to stockholders in $
        Basic $ 1.93     $ 1.95     $ 2.49  
        Diluted $ 1.92     $ 1.93     $ 2.47  
                   
        Weighted average number of shares of common stock outstanding during the period (in thousands):
        Basic   253,709       254,349       256,567  
        Diluted   255,018       256,628       258,954  
                   

        NXP Semiconductors
        Table 2: Condensed consolidated balance sheet (unaudited)

          ($ in millions) As of
            March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        ASSETS          
        Current assets:          
          Cash and cash equivalents $         3,988           $         3,292           $         2,908        
          Short-term deposits           —                     —                     400        
          Accounts receivable, net           1,060                     1,032                     881        
          Inventories, net           2,350                     2,356                     2,102        
          Other current assets           627                     625                     603        
        Total current assets           8,025                     7,305                     6,894        
                     
        Non-current assets:          
          Deferred tax assets           1,284                     1,251                     1,048        
          Other non-current assets           1,942                     1,796                     1,290        
          Property, plant and equipment, net           3,210                     3,267                     3,304        
          Identified intangible assets, net           777                     836                     839        
          Goodwill           9,942                     9,930                     9,945        
        Total non-current assets           17,155                     17,080                     16,426        
                     
        Total assets           25,180                     24,385                     23,320        
                     
        LIABILITIES AND EQUITY          
        Current liabilities:          
          Accounts payable           863                     1,017                     954        
          Restructuring liabilities-current           75                     147                     68        
          Other current liabilities           1,412                     1,434                     1,906        
          Short-term debt           1,499                     500                     —        
        Total current liabilities           3,849                     3,098                     2,928        
                     
        Non-current liabilities:          
          Long-term debt           10,226                     10,354                     10,178        
          Restructuring liabilities           4                     10                     9        
          Other non-current liabilities           1,424                     1,392                     1,055        
        Total non-current liabilities           11,654                     11,756                     11,242        
                     
          Non-controlling interests           355                     348                     321        
          Stockholders’ equity           9,322                     9,183                     8,829        
        Total equity           9,677                     9,531                     9,150        
                   
        Total liabilities and equity           25,180                     24,385                     23,320        
                     

        NXP Semiconductors
        Table 3: Condensed consolidated statement of cash flows (unaudited)

        ($ in millions) Three months ended
          March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        Cash flows from operating activities:          
        Net income (loss) $ 497     $ 505     $ 644  
        Adjustments to reconcile net income (loss) to net cash provided by (used for) operating activities:          
        Depreciation and amortization   209       259       235  
        Share-based compensation   127       117       115  
        Amortization of discount (premium) on debt, net   1       1       1  
        Amortization of debt issuance costs   1       2       2  
        Net (gain) loss on sale of assets   (22 )     (1 )     (2 )
        Results relating to equity-accounted investees   4       2       1  
        (Gain) loss on equity securities, net   6       6       2  
        Deferred tax expense (benefit)   (27 )     (145 )     (64 )
        Changes in operating assets and liabilities:          
        (Increase) decrease in receivables and other current assets   (29 )     (25 )     (25 )
        (Increase) decrease in inventories   6       (122 )     32  
        Increase (decrease) in accounts payable and other liabilities   (110 )     16       (102 )
        (Increase) decrease in other non-current assets   (106 )     (218 )     6  
        Exchange differences   4       (1 )     3  
        Other items   4       (5 )     3  
        Net cash provided by (used for) operating activities   565       391       851  
                   
        Cash flows from investing activities:          
        Purchase of identified intangible assets   (25 )     (36 )     (32 )
        Capital expenditures on property, plant and equipment   (139 )     (130 )     (226 )
        Insurance recoveries received for equipment damage   —       —       2  
        Proceeds from the disposals of property, plant and equipment   1       1       2  
        Advance payment from sale of property, plant and equipment   —       30       —  
        Proceeds of short-term deposits   —       400       9  
        Purchase of investments   (53 )     (67 )     (34 )
        Proceeds from the sale of investments   —       —       5  
        Net cash provided by (used for) investing activities   (216 )     198       (274 )
                   
        Cash flows from financing activities:          
        Repurchase of long-term debt   —       —       (1,000 )
        Proceeds from the issuance of long-term debt   370       670       —  
        Cash paid for debt issuance costs   —       (1 )     —  
        Proceeds from the issuance of commercial paper notes   646       —       —  
        Repayment of commercial paper notes   (146 )     —       —  
        Dividends paid to common stockholders   (258 )     (258 )     (261 )
        Proceeds from issuance of common stock through stock plans   37       3       37  
        Purchase of treasury shares and restricted stock unit withholdings   (303 )     (455 )     (303 )
        Other, net   (1 )     —       (1 )
        Net cash provided by (used for) financing activities   345       (41 )     (1,528 )
                   
        Effect of changes in exchange rates on cash positions   2       (4 )     (3 )
        Increase (decrease) in cash and cash equivalents   696       544       (954 )
        Cash and cash equivalents at beginning of period   3,292       2,748       3,862  
        Cash and cash equivalents at end of period   3,988       3,292       2,908  
                   
        Net cash paid during the period for:          
        Interest   41       92       38  
        Income taxes, net of refunds   96       280       198  
        Net gain (loss) on sale of assets:          
        Cash proceeds from the sale of assets   31       1       2  
        Book value of these assets   (9 )     —       —  
        Non-cash investing activities:          
        Non-cash capital expenditures   108       161       223  
                   

        NXP Semiconductors
        Table 4: Financial Reconciliation of GAAP to non-GAAP Results (unaudited)

        ($ in millions except share data) Three months ended
          March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        GAAP Gross Profit $ 1,560     $ 1,678     $ 1,783  
        PPA Effects   (8 )     (11 )     (12 )
        Restructuring   (4 )     (21 )     (3 )
        Share-based compensation   (16 )     (15 )     (15 )
        Other incidentals   (3 )     (64 )     (5 )
        Non-GAAP Gross Profit $ 1,591     $ 1,789     $ 1,818  
        GAAP Gross margin   55.0 %     53.9 %     57.0 %
        Non-GAAP Gross margin   56.1 %     57.5 %     58.2 %
        GAAP Research and development $ (547 )   $ (612 )   $ (564 )
        Restructuring   (7 )     (50 )     (3 )
        Share-based compensation   (64 )     (60 )     (58 )
        Other incidentals   (1 )     (5 )     (1 )
        Non-GAAP Research and development $ (475 )   $ (497 )   $ (502 )
        GAAP Selling, general and administrative $ (281 )   $ (323 )   $ (306 )
        Restructuring   (3 )     (41 )     (1 )
        Share-based compensation   (47 )     (42 )     (42 )
        Other incidentals   (20 )     (12 )     (29 )
        Non-GAAP Selling, general and administrative $ (211 )   $ (228 )   $ (234 )
        GAAP Operating income (loss) $ 723     $ 675     $ 856  
        PPA effects   (40 )     (39 )     (63 )
        Restructuring   (14 )     (112 )     (7 )
        Share-based compensation   (127 )     (117 )     (115 )
        Other incidentals   —       (122 )     (39 )
        Non-GAAP Operating income (loss) $ 904     $ 1,065     $ 1,080  
        GAAP Operating margin   25.5 %     21.7 %     27.4 %
        Non-GAAP Operating margin   31.9 %     34.2 %     34.5 %
        GAAP Income tax benefit (provision) $ (130 )   $ (77 )   $ (141 )
        Income tax effect   13       87       30  
        Non-GAAP Income tax benefit (provision) $ (143 )   $ (164 )   $ (171 )
        GAAP Net income (loss) attributable to stockholders $ 490     $ 495     $ 639  
        PPA Effects   (40 )     (39 )     (63 )
        Restructuring   (14 )     (112 )     (7 )
        Share-based compensation   (127 )     (117 )     (115 )
        Other incidentals   —       (122 )     (39 )
        Other adjustments:          
        Adjustments to financial income (expense)   (12 )     (17 )     (6 )
        Income tax effect   13       87       30  
        Results relating to equity-accounted investees, excluding Foundry investees1   (3 )     (2 )     (1 )
        Non-GAAP Net income (loss) attributable to stockholders $ 673     $ 817     $ 840  
                   
                   
        Additional Information:          
        1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.
                   
        GAAP net income (loss) per common share attributable to stockholders – diluted $ 1.92     $ 1.93     $ 2.47  
        PPA Effects   (0.16 )     (0.15 )     (0.24 )
        Restructuring   (0.05 )     (0.44 )     (0.03 )
        Share-based compensation   (0.50 )     (0.46 )     (0.44 )
        Other incidentals   —       (0.47 )     (0.15 )
        Other adjustments:          
        Adjustments to financial income (expense)   (0.05 )     (0.07 )     (0.02 )
        Income tax effect   0.05       0.34       0.11  
        Results relating to equity-accounted investees, excluding Foundry investees1   (0.01 )     —       —  
        Non-GAAP net income (loss) per common share attributable to stockholders – diluted $ 2.64     $ 3.18     $ 3.24  
                   
                   
        Additional Information:          
        1. Refer to Table 7 below for further information regarding the results relating to equity-accounted investees.

        NXP Semiconductors
        Table 5: Financial Reconciliation of GAAP to non-GAAP Financial income (expense) (unaudited)

          ($ in millions) Three months ended
            March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        GAAP Financial income (expense) $ (92 )   $ (91 )   $ (70 )
          Foreign exchange loss   (3 )     3       (1 )
          Other financial expense   (9 )     (20 )     (5 )
        Non-GAAP Financial income (expense) $ (80 )   $ (74 )   $ (64 )
                     

        NXP Semiconductors
        Table 6: Financial Reconciliation of GAAP to non-GAAP Other income (expense) (unaudited)

          ($ in millions) Three months ended
            March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        GAAP Other income (expense) $ 18     $ (40 )   $ (6 )
          PPA effects   (5 )     —       —  
          Other incidentals   24       (41 )     (4 )
        Non-GAAP Other income (expense) $ (1 )   $ 1     $ (2 )
                   

        NXP Semiconductors
        Table 7: Financial Reconciliation of GAAP to non-GAAP Results relating to equity-accounted investees (unaudited)

          ($ in millions) Three months ended
            March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        GAAP Results relating to equity-accounted investees $ (4 )   $ (2 )   $ (1 )
          Results of equity-accounted investees, excluding Foundry investees1   (3 )     (2 )     (1 )
        Non-GAAP Results relating to equity-accounted investees $ (1 )   $ —     $ —  
                   
        Additional Information:
        1. We adjust our results relating to equity-accounted investees for those results from investments over which NXP has significant influence, but not control, and whose business activities are not related to the core operating performance of NXP. Our equity-investments in foundry partners are part of our long-term core operating performance and accordingly those results comprise the Non-GAAP Results relating to equity-accounted investees.


        NXP Semiconductors
        Table 8: Adjusted EBITDA and Free Cash Flow (unaudited)

        ($ in millions) Three months ended
          March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        GAAP Net income (loss) $ 497     $ 505     $ 644  
        Reconciling items to EBITDA (Non-GAAP)          
        Financial (income) expense   92       91       70  
        (Benefit) provision for income taxes   130       77       141  
        Depreciation and impairment   143       190       145  
        Amortization   66       69       90  
        EBITDA (Non-GAAP) $ 928     $ 932     $ 1,090  
        Reconciling items to adjusted EBITDA (Non-GAAP)          
        Results of equity-accounted investees, excluding Foundry investees1   3       2       1  
        Purchase accounting effect on asset sale   5       —       —  
        Restructuring   14       112       7  
        Share-based compensation   127       117       115  
        Other incidental items2   (4 )     77       39  
        Adjusted EBITDA (Non-GAAP) $ 1,073     $ 1,240     $ 1,252  
        Trailing twelve month adjusted EBITDA (Non-GAAP) $ 4,885     $ 5,064     $ 5,395  
                   
        Additional Information:          
        1. Refer to Table 7 above for further information regarding the results relating to equity-accounted investees.
        2. Excluding from total other incidental items, charges included in depreciation, amortization or impairment reconciling items:
        – other incidental items   4       45       —  
                   
                   
                   
        ($ in millions) Three months ended
          March 30,
        2025        		   December 31,
        2024        		   March 31,
        2024
        Net cash provided by (used for) operating activities $ 565     $ 391     $ 851  
        Net capital expenditures on property, plant and equipment   (138 )     (99 )     (224 )
        Non-GAAP free cash flow $ 427     $ 292     $ 627  
        Trailing twelve month non-GAAP free cash flow $ 1,889     $ 2,089     $ 2,933  
        Trailing twelve month non-GAAP free cash flow as percent of Revenue   15 %     17 %     22 %
                   

      The MIL Network –

  • MIL-OSI: RBB Bancorp Reports First Quarter 2025 Earnings

    Source: GlobeNewswire (MIL-OSI)

    LOS ANGELES, April 28, 2025 (GLOBE NEWSWIRE) — RBB Bancorp (NASDAQ:RBB) and its subsidiaries, Royal Business Bank (the “Bank”) and RBB Asset Management Company (“RAM”), collectively referred to herein as the “Company,” announced financial results for the quarter ended March 31, 2025.

    First Quarter 2025 Highlights

    • Net income totaled $2.3 million, or $0.13 diluted earnings per share
    • Return on average assets of 0.24%, compared to 0.44% for the quarter ended December 31, 2024
    • Net interest margin expanded to 2.88%, up from 2.76% for the quarter ended December 31, 2024
    • Net loans held for investment growth of $89.8 million, or 12% annualized 
    • Nonperforming assets decreased $16.5 million, or 20.3%, to $64.6 million at March 31, 2025, down from $81.0 million at December 31, 2024
    • Book value and tangible book value per share(1) increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024 

    The Company reported net income of $2.3 million, or $0.13 diluted earnings per share, for the quarter ended March 31, 2025, compared to net income of $4.4 million, or $0.25 diluted earnings per share, for the quarter ended December 31, 2024. First quarter of 2025 net income included $6.7 million in pre-tax provision for credit losses mostly related to reducing exposure to nonperforming loans, including higher specific reserves.

    “First quarter net income declined to $2.3 million, or 13 cents per share, as we took decisive action to address our nonperforming loans,” said David Morris, Chief Executive Officer of RBB Bancorp. “We reduced our net exposure to nonperforming loans to $51 million, including specific reserves, or 32% since year end. We remain focused on resolving our nonperforming loans as quickly as possible while minimizing the impact to earnings and capital and we think our actions in the first quarter reflect this.”

    “Our loan production was relatively strong during the first quarter driven by continued execution of our initiatives, which resulted in 12% annualized net loan growth. Our loan prospect pipeline continues to be healthy, and we anticipate loan growth to continue in the second quarter, albeit likely at a more moderate pace,” said Johnny Lee, President of RBB Bancorp and President and Chief Executive Officer of the Bank. “While the market environment is volatile, we have not observed significant signs of financial impact to our clients at this time.”

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

    Net Interest Income and Net Interest Margin

    Net interest income was $26.2 million for the first quarter of 2025, compared to $26.0 million for the fourth quarter of 2024. The $186,000 increase was due to a $2.4 million decrease in interest expense, offset by a $2.2 million decrease in interest income. The decrease in interest income was mostly due to the impact of fewer days in the quarter of $1.2 million and lower average excess liquidity (cash and cash equivalents and investment securities) of $1.5 million. The decrease in interest expense was mostly due to the impact of lower average funding rates of $1.5 million, fewer days in the quarter of $621,000 and lower average interest-bearing liabilities of $336,000. The $1.5 million attributed to lower average funding rates included $1.8 million due to a 29 basis point decrease in the average cost of interest-bearing deposits.

    The net interest margin (“NIM”) was 2.88% for the first quarter of 2025, an increase of 12 basis points from 2.76% for the fourth quarter of 2024. The NIM expansion was due to a 17 basis point decrease in the overall cost of funds, partially offset by a 3 basis point decrease in the yield on average interest-earning assets. The yield on average interest-earning assets decreased to 5.76% for the first quarter of 2025 from 5.79% for the fourth quarter of 2024 due mainly to a decrease in the yield on average cash and cash equivalents of 32 basis points and average loans of 2 basis points, partially offset by the benefit of a change in the mix in average-earning assets. Average loans represented 84% of average interest-earning assets in the first quarter of 2025, as compared to 82% in the fourth quarter of 2024.

    The average cost of funds decreased to 3.15% for the first quarter of 2025 from 3.32% for the fourth quarter of 2024, driven by a 29 basis point decrease in the average cost of interest-bearing deposits, partially offset by a 38 basis point increase in the average cost of borrowings. The average cost of interest-bearing deposits decreased to 3.77% for the first quarter of 2025 from 4.06% for the fourth quarter of 2024. During the first quarter of 2025, $150.0 million in Federal Home Loan Bank (“FHLB”) advances with an average cost of 1.18% matured and were largely replaced with $110.0 million in FHLB advances with various terms at an average rate of 3.88%. The overall funding mix for the first quarter of 2025 remained relatively unchanged from the fourth quarter of 2024 with total deposits representing 90% of the funding mix and average noninterest-bearing deposits representing 17% of average total deposits. The all-in average spot rate for total deposits was 3.06% at March 31, 2025.

    Provision for Credit Losses

    The provision for credit losses was $6.7 million for the first quarter of 2025 compared to $6.0 million for the fourth quarter of 2024. The first quarter of 2025 provision for credit losses was due to an increase in specific reserves of $2.8 million, net charge-offs of $2.6 million and an increase in general reserves of $1.3 million due mainly to net loan growth. The first quarter increase in specific reserves related mostly to two lending relationships. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming single-family residential (“SFR”) mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to other real estate owned (“OREO”) and subsequently sold. Net charge-offs on an annualized basis represented 0.35% of average loans for the first quarter of 2025 compared to 0.26% for the fourth quarter of 2024. The first quarter provision also took into consideration factors such as changes in loan balances, the loan portfolio mix, the outlook for economic conditions and market interest rates, and changes in credit quality metrics, including changes in nonperforming loans, special mention and substandard loans during the period.

    Noninterest Income

    Noninterest income for the first quarter of 2025 was $2.3 million, a decrease of $434,000 from $2.7 million for the fourth quarter of 2024. This decrease was mostly due to the fourth quarter of 2024 including $258,000 of income from a Bank Enterprise Award grant (included in other income) and lower net gain on sale of loans as compared to the fourth quarter of 2024.

    Noninterest Expense

    Noninterest expense for the first quarter of 2025 was $18.5 million, an increase of $873,000 from $17.6 million for the fourth quarter of 2024. This increase was mostly due to higher salaries and employee benefits expense of $716,000 attributed to higher payroll taxes and annual pay increases, which are typically reflected in the first quarter of the year. The annualized noninterest expenses to average assets ratio was 1.90% for the first quarter of 2025, up from 1.76% for the fourth quarter of 2024. The efficiency ratio was 65.1% for the first quarter of 2025, up from 61.5% for the fourth quarter of 2024 due mostly to higher noninterest expense.

    Income Taxes

    The effective tax rate was 28.2% for the first quarter of 2025 and 13.3% for the fourth quarter of 2024. The increase in the effective tax rate for the first quarter was due in part to lower tax credits combined with higher estimated pre-tax net income for the full year of 2025 as compared to the prior quarter.2

    Balance Sheet

    At March 31, 2025, total assets were $4.0 billion, a $16.9 million increase compared to December 31, 2024, and a $131.4 million increase compared to March 31, 2024.

    Loan and Securities Portfolio

    Loans held for investment (“HFI”) totaled $3.1 billion as of March 31, 2025, an increase of $89.8 million, or 12% annualized, compared to December 31, 2024 and an increase of $115.7 million, or 3.8%, compared to March 31, 2024. The first quarter of 2025 net loan growth included $201 million in new production with an average yield of 6.77%. When loan sales, charge-offs, and foreclosures totaling $28.6 million are considered, the annualized first quarter net loan growth rate was 16%. The increase from December 31, 2024 was primarily due to a $51.8 million increase in SFR mortgage loans, a $44.0 million increase in commercial real estate (“CRE”) loans, a $6.0 million increase in commercial and industrial (“C&I”) loans and a $3.4 million increase in Small Business Administration (“SBA”) loans, partially offset by a $14.4 million decrease in construction and land development (“C&D”) loans. The loan to deposit ratio was 98.4% at March 31, 2025, compared to 97.5% at December 31, 2024 and 98.6% at March 31, 2024. 

    As of March 31, 2025, available for sale securities totaled $378.2 million, a decrease of $42.0 million from December 31, 2024, primarily related to the net decrease in short-term commercial paper of $41.4 million due to maturity and purchase activity during the first quarter of 2025. As of March 31, 2025, net unrealized losses totaled $25.0 million, a $4.2 million decrease, when compared to net unrealized losses of $29.2 million as of December 31, 2024.

    Deposits

    Total deposits were $3.1 billion as of March 31, 2025, an increase of $58.8 million, or 7.7% annualized, compared to December 31, 2024 and an increase of $114.3 million, or 3.8%, compared to March 31, 2024. The increase during the first quarter of 2025 was due to a $93.6 million increase in interest-bearing deposits, while noninterest-bearing deposits decreased $34.8 million. The increase in interest-bearing deposits included increases in non-maturity deposits of $58.2 million and time deposits of $35.5 million. Wholesale deposits totaled $158.5 million at March 31, 2025, and $147.5 million at December 31, 2024. Noninterest-bearing deposits totaled $528.2 million and represented 16.8% of total deposits at March 31, 2025 compared to $563.0 million and 18.3% at December 31, 2024.

    Credit Quality

    Nonperforming assets totaled $64.6 million, or 1.61% of total assets, at March 31, 2025, down from $81.0 million, or 2.03% of total assets, at December 31, 2024. The $16.5 million decrease in nonperforming assets was due to sales totaling $20.0 million and payoffs or paydowns of $1.8 million, partially offset by the addition of one $5.3 million CRE loan placed on nonaccrual status in the first quarter of 2025. Nonperforming assets included one $4.2 million OREO (included in “Accrued interest and other assets”) at March 31, 2025, which was a nonaccrual loan at December 31, 2024.

    Special mention loans totaled $64.3 million, or 2.05% of total loans, at March 31, 2025, down from $65.3 million, or 2.14% of total loans, at December 31, 2024. The $1.1 million decrease was primarily due to the upgrade of one $1.7 million CRE loan to a pass-rated loan, offset by the addition of one $578,000 C&I loan. All special mention loans are paying current.

    Substandard loans totaled $76.4 million at March 31, 2025, down from $100.3 million at December 31, 2024. This $24.0 million decrease was primarily due to loan sales totaling $11.7 million, transfers to OREO totaling $12.8 million, of which $8.8 million was subsequently sold during the first quarter of 2025, and payoffs and paydowns totaling $5.4 million, partially offset by the downgrade of two loans totaling $6.2 million. Of the total substandard loans at March 31, 2025, there were $16.0 million on accrual status.

    30-89 day delinquent loans, excluding nonperforming loans, totaled $5.9 million, or 0.19% of total loans, at March 31, 2025, down from $22.1 million, or 0.72% of total loans, at December 31, 2024. The $16.2 million decrease was mostly due to $16.3 million in loans returning to current status, $2.9 million in SFR mortgage loans included in the bulk sale of several underperforming SFR mortgage loans and $398,000 in paydowns and payoffs, offset by $3.5 million in new delinquent loans.3

    As of March 31, 2025, the allowance for credit losses totaled $52.6 million and was comprised of an allowance for loan losses of $51.9 million and a reserve for unfunded commitments of $629,000 (included in “Accrued interest and other liabilities”). This compares to the allowance for credit losses of $48.5 million, comprised of an allowance for loan losses of $47.7 million and a reserve for unfunded commitments of $729,000 at December 31, 2024. The $4.1 million increase in the allowance for credit losses for the first quarter of 2025 was due to a $6.7 million provision for credit losses offset by net charge-offs of $2.6 million. Net charge-offs included $1.4 million related to a bulk sale of $10.8 million in underperforming SFR mortgage loans, of which $6.5 million were on nonaccrual at the end of the year, and $1.2 million related to an $8.8 million loan transferred to OREO and subsequently sold. The allowance for loan losses as a percentage of loans HFI increased to 1.65% at March 31, 2025, compared to 1.56% at December 31, 2024, due to an increase in specific reserves. The allowance for loan losses as a percentage of nonperforming loans HFI was 86% at March 31, 2025, an increase from 68% at December 31, 2024. 

        For the Three Months Ended March 31, 2025  
    (dollars in thousands)   Allowance for
    loan losses    		     Reserve for
    unfunded loan
    commitments    		     Allowance for
    credit losses    		  
    Beginning balance   $ 47,729     $ 729     $ 48,458  
    Provision for (reversal of) credit losses     6,846       (100 )     6,746  
    Less loans charged-off     (2,727 )     —       (2,727 )
    Recoveries on loans charged-off     84       —       84  
    Ending balance   $ 51,932     $ 629     $ 52,561  

    Shareholders’ Equity

    At March 31, 2025, total shareholders’ equity was $510.3 million, a $2.4 million increase compared to December 31, 2024, and a $3.7 million decrease compared to March 31, 2024. The increase in shareholders’ equity for the first quarter of 2025 was due to lower net unrealized losses on available for sale securities of $3.0 million, net income of $2.3 million and equity compensation activity of $43,000, offset by common stock cash dividends paid of $2.9 million. The decrease in shareholders’ equity for the last twelve months was due to common stock repurchases of $19.2 million and dividends paid of $11.6 million on common stock, offset by net income of $20.9 million, lower net unrealized losses on available for sale securities of $3.7 million, and equity compensation activity of $2.5 million. Book value per share and tangible book value per share(1) increased to $28.77 and $24.63 at March 31, 2025, up from $28.66 and $24.51 at December 31, 2024 and up from $27.67 and $23.68 at March 31, 2024.

    (1 ) Reconciliations of the non–U.S. generally accepted accounting principles (“GAAP”) measures included at the end of this press release.

    Corporate Overview

    RBB Bancorp is a community-based financial holding company headquartered in Los Angeles, California. As of March 31, 2025, the Company had total assets of $4.0 billion. Its wholly-owned subsidiary, Royal Business Bank, is a full service commercial bank, which provides consumer and business banking services predominately to the Asian-centric communities in Los Angeles County, Orange County, and Ventura County in California, in Las Vegas, Nevada, in Brooklyn, Queens, and Manhattan in New York, in Edison, New Jersey, in the Chicago neighborhoods of Chinatown and Bridgeport, Illinois, and on Oahu, Hawaii. Bank services include remote deposit, E-banking, mobile banking, commercial and investor real estate loans, business loans and lines of credit, commercial and industrial loans, SBA 7A and 504 loans, 1-4 single family residential loans, trade finance, a full range of depository account products and wealth management services. The Bank has nine branches in Los Angeles County, two branches in Ventura County, one branch in Orange County, California, one branch in Las Vegas, Nevada, three branches and one loan operation center in Brooklyn, three branches in Queens, one branch in Manhattan in New York, one branch in Edison, New Jersey, two branches in Chicago, Illinois, and one branch in Honolulu, Hawaii. The Company’s administrative and lending center is located at 1055 Wilshire Blvd., Los Angeles, California 90017, and its operations center is located at 7025 Orangethorpe Ave., Buena Park, California 90621. The Company’s website address is www.royalbusinessbankusa.com.

    Conference Call

    Management will hold a conference call at 11:00 a.m. Pacific time/2:00 p.m. Eastern time on Tuesday, April 29, 2025, to discuss the Company’s first quarter 2025 financial results.

    To listen to the conference call, please dial 1-888-506-0062 or 1-973-528-0011, the Participant ID code is 534591, conference ID RBBQ125. A replay of the call will be made available at 1-877-481-4010 or 1-919-882-2331, the passcode is 52277, approximately one hour after the conclusion of the call and will remain available through May 13, 2025.

    The conference call will also be simultaneously webcast over the Internet; please visit our Royal Business Bank website at www.royalbusinessbankusa.com and click on the “Investors” tab to access the call from the site. This webcast will be recorded and available for replay on our website approximately two hours after the conclusion of the conference call.

    Disclosure

    This press release contains certain non-GAAP financial disclosures for tangible common equity and tangible assets and adjusted earnings. The Company uses certain non-GAAP financial measures to provide meaningful supplemental information regarding the Company’s operational performance and to enhance investors’ overall understanding of such financial performance. Please refer to the tables at the end of this release for a presentation of performance ratios in accordance with GAAP and a reconciliation of the non-GAAP financial measures to the GAAP financial measures.

    Safe Harbor

    Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements relating to the Company’s current business plans and expectations and our future financial position and operating results. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. These risks and uncertainties include, but are not limited to, the effectiveness of the Company’s internal control over financial reporting and disclosure controls and procedures; the potential for additional material weaknesses in the Company’s internal controls over financial reporting or other potential control deficiencies of which the Company is not currently aware or which have not been detected; business and economic conditions generally and in the financial services industry, nationally and within our current and future geographic markets, including the tight labor market, ineffective management of the United States (“U.S.”) federal budget or debt or turbulence or uncertainly in domestic or foreign financial markets; the strength of the U.S. economy in general and the strength of the local economies in which we conduct operations; adverse developments in the banking industry highlighted by high-profile bank failures and the potential impact of such developments on customer confidence, liquidity and regulatory responses to these developments; possible additional provisions for credit losses and charge-offs; credit risks of lending activities and deterioration in asset or credit quality; extensive laws and regulations and supervision that we are subject to, including potential supervisory action by bank supervisory authorities; compliance with the Bank Secrecy Act and other money laundering statutes and regulations; potential goodwill impairment; liquidity risk; failure to comply with debt covenants; fluctuations in interest rates; risks associated with acquisitions and the expansion of our business into new markets; inflation and deflation; real estate market conditions and the value of real estate collateral; the effects of having concentrations in our loan portfolio, including commercial real estate and the risks of geographic and industry concentrations; environmental liabilities; our ability to compete with larger competitors; our ability to retain key personnel; successful management of reputational risk; severe weather, natural disasters, earthquakes, fires, including direct and indirect costs and impacts on clients, the Company and its employees from the January 2025 Los Angeles County wildfires; or other adverse external events could harm our business; geopolitical conditions, including acts or threats of terrorism, actions taken by the U.S. or other governments in response to acts or threats of terrorism and/or military conflicts, including the conflicts between Russia and Ukraine, in the Middle East, and increasing tensions between China and Taiwan, which could impact business and economic conditions in the U.S. and abroad; tariffs, trade policies, and related tensions, which could impact our clients, specific industry sectors, and/or broader economic conditions and financial market; public health crises and pandemics, and their effects on the economic and business environments in which we operate, including our credit quality and business operations, as well as the impact on general economic and financial market conditions; general economic or business conditions in Asia, and other regions where the Bank has operations; failures, interruptions, or security breaches of our information systems; climate change, including any enhanced regulatory, compliance, credit and reputational risks and costs; cybersecurity threats and the cost of defending against them; our ability to adapt our systems to the expanding use of technology in banking; risk management processes and strategies; adverse results in legal proceedings; the impact of regulatory enforcement actions, if any; certain provisions in our charter and bylaws that may affect acquisition of the Company; changes in tax laws and regulations; the impact of governmental efforts to restructure the U.S. financial regulatory system and increased costs of compliance and other risks associated with changes in regulation, including any amendments to the Dodd-Frank Wall Street Reform and Consumer Protection Act; the impact of changes in the Federal Deposit Insurance Corporation (“FDIC”) insurance assessment rate and the rules and regulations related to the calculation of the FDIC insurance assessments; the effect of changes in accounting policies and practices or accounting standards, as may be adopted from time-to-time by bank regulatory agencies, the SEC, the Public Company Accounting Oversight Board, the Financial Accounting Standards Board or other accounting standards setters; fluctuations in the Company’s stock price; restrictions on dividends and other distributions by laws and regulations and by our regulators and our capital structure; our ability to raise additional capital, if needed, and the potential resulting dilution of interests of holders of our common stock; the soundness of other financial institutions; our ongoing relations with our various federal and state regulators, including the SEC, FDIC, FRB and California Department of Financial Protection and Innovation; our success at managing the risks involved in the foregoing items and all other factors set forth in the Company’s public reports, including its Annual Report as filed under Form 10-K for the year ended December 31, 2024, and particularly the discussion of risk factors within that document. The Company does not undertake, and specifically disclaims any obligation, to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements except as required by law. Any statements about future operating results, such as those concerning accretion and dilution to the Company’s earnings or shareholders, are for illustrative purposes only, are not forecasts, and actual results may differ.

    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (Unaudited)
    (Dollars in thousands)
     
        March 31,     December 31,     September 30,     June 30,     March 31,  
        2025     2024     2024     2024     2024  
    Assets                                        
    Cash and due from banks   $ 25,315     $ 27,747     $ 26,388     $ 23,313     $ 21,887  
    Interest-earning deposits with financial institutions     213,508       229,998       323,002       229,456       247,356  
    Cash and cash equivalents     238,823       257,745       349,390       252,769       269,243  
    Interest-earning time deposits with financial institutions     600       600       600       600       600  
    Investment securities available for sale     378,188       420,190       305,666       325,582       335,194  
    Investment securities held to maturity     5,188       5,191       5,195       5,200       5,204  
    Loans held for sale     655       11,250       812       3,146       3,903  
    Loans held for investment     3,143,063       3,053,230       3,091,896       3,047,712       3,027,361  
    Allowance for loan losses     (51,932 )     (47,729 )     (43,685 )     (41,741 )     (41,688 )
    Net loans held for investment     3,091,131       3,005,501       3,048,211       3,005,971       2,985,673  
    Premises and equipment, net     24,308       24,601       24,839       25,049       25,363  
    Federal Home Loan Bank (FHLB) stock     15,000       15,000       15,000       15,000       15,000  
    Cash surrender value of bank owned life insurance     60,699       60,296       59,889       59,486       59,101  
    Goodwill     71,498       71,498       71,498       71,498       71,498  
    Servicing assets     6,766       6,985       7,256       7,545       7,794  
    Core deposit intangibles     1,839       2,011       2,194       2,394       2,594  
    Right-of-use assets     26,779       28,048       29,283       30,530       31,231  
    Accrued interest and other assets     87,926       83,561       70,644       63,416       65,608  
    Total assets   $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186     $ 3,878,006  
    Liabilities and shareholders’ equity                                        
    Deposits:                                        
    Noninterest-bearing demand   $ 528,205     $ 563,012     $ 543,623     $ 542,971     $ 539,517  
    Savings, NOW and money market accounts     721,216       663,034       666,089       647,770       642,840  
    Time deposits, $250,000 and under     1,000,106       1,007,452       1,052,462       1,014,189       1,083,898  
    Time deposits, greater than $250,000     893,101       850,291       830,010       818,675       762,074  
    Total deposits     3,142,628       3,083,789       3,092,184       3,023,605       3,028,329  
    FHLB advances     160,000       200,000       200,000       150,000       150,000  
    Long-term debt, net of issuance costs     119,624       119,529       119,433       119,338       119,243  
    Subordinated debentures     15,211       15,156       15,102       15,047       14,993  
    Lease liabilities – operating leases     28,483       29,705       30,880       32,087       32,690  
    Accrued interest and other liabilities     33,148       36,421       23,150       16,818       18,765  
    Total liabilities     3,499,094       3,484,600       3,480,749       3,356,895       3,364,020  
    Shareholders’ equity:                                        
    Common stock     260,284       259,957       259,280       266,160       271,645  
    Additional paid-in capital     3,360       3,645       3,520       3,456       3,348  
    Retained earnings     263,885       264,460       262,946       262,518       259,903  
    Non-controlling interest     72       72       72       72       72  
    Accumulated other comprehensive loss, net     (17,295 )     (20,257 )     (16,090 )     (20,915 )     (20,982 )
    Total shareholders’ equity     510,306       507,877       509,728       511,291       513,986  
    Total liabilities and shareholders’ equity   $ 4,009,400     $ 3,992,477     $ 3,990,477     $ 3,868,186     $ 3,878,006  
     
    RBB BANCORP AND SUBSIDIARIES
    CONDENSED CONSOLIDATED STATEMENTS OF INCOME
    (Unaudited)
    (In thousands, except share and per share data) 
     
        For the Three Months Ended  
        March 31, 2025     December 31, 2024     March 31, 2024  
    Interest and dividend income:                        
    Interest and fees on loans   $ 45,621     $ 46,374     $ 45,547  
    Interest on interest-earning deposits     2,014       3,641       5,040  
    Interest on investment securities     4,136       3,962       3,611  
    Dividend income on FHLB stock     330       330       331  
    Interest on federal funds sold and other     235       248       266  
    Total interest and dividend income     52,336       54,555       54,795  
    Interest expense:                        
    Interest on savings deposits, NOW and money market accounts     4,468       4,671       4,478  
    Interest on time deposits     19,084       21,361       23,322  
    Interest on long-term debt and subordinated debentures     1,632       1,660       1,679  
    Interest on FHLB advances     989       886       439  
    Total interest expense     26,173       28,578       29,918  
    Net interest income before provision for credit losses     26,163       25,977       24,877  
    Provision for credit losses     6,746       6,000       —  
    Net interest income after provision for credit losses     19,417       19,977       24,877  
    Noninterest income:                        
    Service charges and fees     1,017       988       992  
    Gain on sale of loans     81       376       312  
    Loan servicing fees, net of amortization     588       492       589  
    Increase in cash surrender value of life insurance     403       407       382  
    Gain on OREO     —       —       724  
    Other income     206       466       373  
    Total noninterest income     2,295       2,729       3,372  
    Noninterest expense:                        
    Salaries and employee benefits     10,643       9,927       9,927  
    Occupancy and equipment expenses     2,407       2,403       2,443  
    Data processing     1,602       1,499       1,420  
    Legal and professional     1,515       1,355       880  
    Office expenses     408       399       356  
    Marketing and business promotion     197       251       172  
    Insurance and regulatory assessments     730       677       982  
    Core deposit premium     172       182       201  
    Other expenses     848       956       588  
    Total noninterest expense     18,522       17,649       16,969  
    Income before income taxes     3,190       5,057       11,280  
    Income tax expense     900       672       3,244  
    Net income   $ 2,290     $ 4,385     $ 8,036  
                             
    Net income per share                        
    Basic   $ 0.13     $ 0.25     $ 0.43  
    Diluted   $ 0.13     $ 0.25     $ 0.43  
    Cash dividends declared per common share   $ 0.16     $ 0.16     $ 0.16  
    Weighted-average common shares outstanding                        
    Basic     17,727,712       17,704,992       18,601,277  
    Diluted     17,770,588       17,796,840       18,666,683  
                             
    RBB BANCORP AND SUBSIDIARIES
    AVERAGE BALANCE SHEET AND NET INTEREST INCOME
    (Unaudited)
     
        For the Three Months Ended  
        March 31, 2025     December 31, 2024     March 31, 2024  
    (tax-equivalent basis,    Average     Interest     Yield /     Average     Interest     Yield /     Average     Interest     Yield /  
      dollars in thousands)   Balance     & Fees     Rate     Balance     & Fees     Rate     Balance     & Fees     Rate  
    Interest-earning assets                                                                        
    Cash and cash equivalents (1)   $ 194,236     $ 2,249       4.70 %   $ 308,455     $ 3,890       5.02 %   $ 364,979     $ 5,306       5.85 %
    FHLB Stock     15,000       330       8.92 %     15,000       330       8.75 %     15,000       331       8.88 %
    Securities                                                                        
    Available for sale (2)     390,178       4,113       4.28 %     361,253       3,939       4.34 %     320,015       3,589       4.51 %
    Held to maturity (2)     5,189       49       3.83 %     5,194       48       3.68 %     5,207       46       3.55 %
    Total loans (3)     3,079,224       45,621       6.01 %     3,059,786       46,374       6.03 %     3,018,423       45,547       6.07 %
    Total interest-earning assets     3,683,827     $ 52,362       5.76 %     3,749,688     $ 54,581       5.79 %     3,723,624     $ 54,819       5.92 %
    Total noninterest-earning assets     260,508                       244,609                       246,341                  
    Total average assets   $ 3,944,335                     $ 3,994,297                     $ 3,969,965                  
                                                                             
    Interest-bearing liabilities                                                                        
    NOW     61,222       321       2.13 %   $ 53,879     $ 254       1.88 %   $ 58,946     $ 298       2.03 %
    Money market     463,443       3,625       3.17 %     463,850       3,735       3.20 %     411,751       3,526       3.44 %
    Saving deposits     155,116       522       1.36 %     162,351       682       1.67 %     157,227       654       1.67 %
    Time deposits, $250,000 and under     989,622       10,046       4.12 %     1,034,946       11,583       4.45 %     1,175,804       13,805       4.72 %
    Time deposits, greater than $250,000     864,804       9,038       4.24 %     835,583       9,778       4.66 %     785,172       9,517       4.88 %
    Total interest-bearing deposits     2,534,207       23,552       3.77 %     2,550,609       26,032       4.06 %     2,588,900       27,800       4.32 %
    FHLB advances     176,833       989       2.27 %     200,000       886       1.76 %     150,000       439       1.18 %
    Long-term debt     119,562       1,295       4.39 %     119,466       1,295       4.31 %     119,180       1,295       4.37 %
    Subordinated debentures     15,175       337       9.01 %     15,121       365       9.60 %     14,957       384       10.33 %
    Total interest-bearing liabilities     2,845,777       26,173       3.73 %     2,885,196       28,578       3.94 %     2,873,037       29,918       4.19 %
    Noninterest-bearing liabilities                                                                        
    Noninterest-bearing deposits     520,145                       539,900                       528,346                  
    Other noninterest-bearing liabilities     66,151                       56,993                       55,795                  
    Total noninterest-bearing liabilities     586,296                       596,893                       584,141                  
    Shareholders’ equity     512,262                       512,208                       512,787                  
    Total liabilities and shareholders’ equity   $ 3,944,335                     $ 3,994,297                     $ 3,969,965                  
    Net interest income / interest rate spreads           $ 26,189       2.03 %           $ 26,003       1.85 %           $ 24,901       1.73 %
    Net interest margin                     2.88 %                     2.76 %                     2.69 %
                                                                             
    Total cost of deposits   $ 3,054,352     $ 23,552       3.13 %   $ 3,090,509     $ 26,032       3.35 %   $ 3,117,246     $ 27,800       3.59 %
    Total cost of funds   $ 3,365,922     $ 26,173       3.15 %   $ 3,425,096     $ 28,578       3.32 %   $ 3,401,383     $ 29,918       3.54 %
    (1 ) Includes income and average balances for interest-earning time deposits and other miscellaneous interest-earning assets.
    (2 ) Interest income and average rates for tax-exempt securities are presented on a tax-equivalent basis.
    (3 ) Average loan balances relate to loans held for investment and loans held for sale and include nonaccrual loans. Interest income on loans includes the effects of discount accretion and net deferred loan origination fees and costs accounted for as yield adjustments.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
        At or for the Three Months Ended  
        March 31,     December 31,     March 31,  
        2025     2024     2024  
    Per share data (common stock)                        
    Book value   $ 28.77     $ 28.66     $ 27.67  
    Tangible book value (1)   $ 24.63     $ 24.51     $ 23.68  
    Performance ratios                        
    Return on average assets, annualized     0.24 %     0.44 %     0.81 %
    Return on average shareholders’ equity, annualized     1.81 %     3.41 %     6.30 %
    Return on average tangible common equity, annualized (1)     2.12 %     3.98 %     7.37 %
    Noninterest income to average assets, annualized     0.24 %     0.27 %     0.34 %
    Noninterest expense to average assets, annualized     1.90 %     1.76 %     1.72 %
    Yield on average earning assets     5.76 %     5.79 %     5.92 %
    Yield on average loans     6.01 %     6.03 %     6.07 %
    Cost of average total deposits (2)     3.13 %     3.35 %     3.59 %
    Cost of average interest-bearing deposits     3.77 %     4.06 %     4.32 %
    Cost of average interest-bearing liabilities     3.73 %     3.94 %     4.19 %
    Net interest spread     2.03 %     1.85 %     1.73 %
    Net interest margin     2.88 %     2.76 %     2.69 %
    Efficiency ratio (3)     65.09 %     61.48 %     60.07 %
    Common stock dividend payout ratio     123.08 %     64.00 %     37.21 %
                             
    (1 ) Non-GAAP measure. See Non–GAAP reconciliations set forth at the end of this press release.
    (2 ) Total deposits include non-interest bearing deposits and interest-bearing deposits.
    (3 ) Ratio calculated by dividing noninterest expense by the sum of net interest income before provision for credit losses and noninterest income.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
    (Dollars in thousands)
     
        At or for the quarter ended  
        March 31,     December 31,     March 31,  
        2025     2024     2024  
    Credit Quality Data:                        
    Special mention loans   $ 64,279     $ 65,329     $ 20,580  
    Special mention loans to total loans     2.05 %     2.14 %     0.68 %
    Substandard loans HFI   $ 76,372     $ 89,141     $ 57,170  
    Substandard loans HFS   $ —     $ 11,195     $ —  
    Substandard loans HFI to total loans HFI     2.43 %     2.92 %     1.89 %
    Loans 30-89 days past due, excluding nonperforming loans   $ 5,927     $ 22,086     $ 20,950  
    Loans 30-89 days past due, excluding nonperforming loans, to total loans     0.19 %     0.72 %     0.69 %
    Nonperforming loans HFI   $ 60,380     $ 69,843     $ 35,935  
    Nonperforming loans HFS   $ —     $ 11,195     $ —  
    OREO   $ 4,170     $ —     $ 1,071  
    Nonperforming assets   $ 64,550     $ 81,038     $ 37,006  
    Nonperforming loans HFI to total loans HFI     1.92 %     2.29 %     1.19 %
    Nonperforming assets to total assets     1.61 %     2.03 %     0.95 %
                             
    Allowance for loan losses   $ 51,932     $ 47,729     $ 41,688  
    Allowance for loan losses to total loans HFI     1.65 %     1.56 %     1.38 %
    Allowance for loan losses to nonperforming loans HFI     86.01 %     68.34 %     116.01 %
    Net charge-offs   $ 2,643     $ 2,006     $ 184  
    Net charge-offs to average loans     0.35 %     0.26 %     0.02 %
                             
    Capital ratios (1)                        
    Tangible common equity to tangible assets (2)     11.10 %     11.08 %     11.56 %
    Tier 1 leverage ratio     12.07 %     11.92 %     12.16 %
    Tier 1 common capital to risk-weighted assets     17.87 %     17.94 %     19.10 %
    Tier 1 capital to risk-weighted assets     18.45 %     18.52 %     19.72 %
    Total capital to risk-weighted assets     24.41 %     24.49 %     25.91 %
    (1 ) March 31, 2025 capital ratios are preliminary.
    (2 ) Non-GAAP measure. See Non-GAAP reconciliations set forth at the end of this press release.
    RBB BANCORP AND SUBSIDIARIES
    SELECTED FINANCIAL HIGHLIGHTS
    (Unaudited)
     
    Loan Portfolio Detail   As of March 31, 2025   As of December 31, 2024     As of March 31, 2024  
    (dollars in thousands)   $   %   $     %     $     %  
    Loans:                                          
    Commercial and industrial   $ 135,538   4.3 %   $ 129,585       4.2 %   $ 121,441       4.0 %
    SBA     50,651   1.6 %     47,263       1.5 %     54,677       1.8 %
    Construction and land development     158,883   5.1 %     173,290       5.7 %     198,070       6.5 %
    Commercial real estate (1)     1,245,402   39.6 %     1,201,420       39.3 %     1,178,498       38.9 %
    Single-family residential mortgages     1,545,822   49.2 %     1,494,022       48.9 %     1,463,497       48.4 %
    Other loans     6,767   0.2 %     7,650       0.4 %     11,178       0.4 %
    Total loans (2)   $ 3,143,063   100.0 %   $ 3,053,230       100.0 %   $ 3,027,361       100.0 %
    Allowance for loan losses     (51,932 )       (47,729 )             (41,688 )        
    Total loans, net   $ 3,091,131       $ 3,005,501             $ 2,985,673          
    (1 ) Includes non-farm and non-residential loans, multi-family residential loans and non-owner occupied single family residential loans.
    (2 ) Net of discounts and deferred fees and costs of $808, $488, and $474 as of March 31, 2025, December 31, 2024, and March 31, 2024, respectively.
    Deposits   As of March 31, 2025   As of December 31, 2024     As of March 31, 2024  
    (dollars in thousands)   $   %   $     %     $     %  
    Deposits:                                          
    Noninterest-bearing demand   $ 528,205   16.8 %   $ 563,012       18.3 %   $ 539,517       17.8 %
    Savings, NOW and money market accounts     721,216   22.9 %     663,034       21.5 %     642,840       21.2 %
    Time deposits, $250,000 and under     863,962   27.5 %     882,438       28.6 %     901,738       29.8 %
    Time deposits, greater than $250,000     870,708   27.8 %     827,854       26.8 %     746,611       24.7 %
    Wholesale deposits (1)     158,537   5.0 %     147,451       4.8 %     197,623       6.5 %
    Total deposits   $ 3,142,628   100.0 %   $ 3,083,789       100.0 %   $ 3,028,329       100.0 %
    (1 ) Includes brokered deposits, collateralized deposits from the State of California, and deposits acquired through internet listing services.

    Non-GAAP Reconciliations

    Tangible Book Value Reconciliations

    Tangible book value per share is a non-GAAP disclosure. Management measures tangible book value per share to assess the Company’s capital strength and business performance and believes this is helpful to investors as additional tools for further understanding our performance. The following is a reconciliation of tangible book value to the Company shareholders’ equity computed in accordance with GAAP, as well as a calculation of tangible book value per share as of March 31, 2025, December 31, 2024, and March 31, 2024.

                           
    (dollars in thousands, except share and per share data)   March 31, 2025     December 31, 2024     March 31, 2024  
    Tangible common equity:                        
    Total shareholders’ equity   $ 510,306     $ 507,877     $ 513,986  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (1,839 )     (2,011 )     (2,594 )
    Tangible common equity   $ 436,969     $ 434,368     $ 439,894  
    Tangible assets:                        
    Total assets-GAAP   $ 4,009,400     $ 3,992,477     $ 3,878,006  
    Adjustments                        
    Goodwill     (71,498 )     (71,498 )     (71,498 )
    Core deposit intangible     (1,839 )     (2,011 )     (2,594 )
    Tangible assets   $ 3,936,063     $ 3,918,968     $ 3,803,914  
    Common shares outstanding     17,738,628       17,720,416       18,578,132  
    Common equity to assets ratio     12.73 %     12.72 %     13.25 %
    Tangible common equity to tangible assets ratio     11.10 %     11.08 %     11.56 %
    Book value per share   $ 28.77     $ 28.66     $ 27.67  
    Tangible book value per share   $ 24.63     $ 24.51     $ 23.68  

    Return on Average Tangible Common Equity

    Management measures return on average tangible common equity (“ROATCE”) to assess the Company’s capital strength and business performance and believes this is helpful to investors as an additional tool for further understanding our performance. Tangible equity excludes goodwill and other intangible assets (excluding mortgage servicing rights) and is reviewed by banking and financial institution regulators when assessing a financial institution’s capital adequacy. This non-GAAP financial measure should not be considered a substitute for operating results determined in accordance with GAAP and may not be comparable to other similarly titled measures used by other companies. The following table reconciles ROATCE to its most comparable GAAP measure:

        Three Months Ended  
    (dollars in thousands)   March 31, 2025     December 31, 2024     March 31, 2024  
    Net income available to common shareholders   $ 2,290     $ 4,385     $ 8,036  
    Average shareholders’ equity     512,262       512,208       512,787  
    Adjustments:                        
    Average goodwill     (71,498 )     (71,498 )     (71,498 )
    Average core deposit intangible     (1,951 )     (2,129 )     (2,726 )
    Adjusted average tangible common equity   $ 438,813     $ 438,581     $ 438,563  
    Return on average common equity, annualized     1.81 %     3.41 %     6.30 %
    Return on average tangible common equity, annualized     2.12 %     3.98 %     7.37 %

    The MIL Network –