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  • MIL-OSI Asia-Pac: Speech by FS at Consensus Hong Kong 2025 (English only)

    Source: Hong Kong Government special administrative region

    Speech by FS at Consensus Hong Kong 2025 (English only)
    Speech by FS at Consensus Hong Kong 2025 (English only)
    *******************************************************

         Following is the speech by the Financial Secretary, Mr Paul Chan, at Consensus Hong Kong 2025 today (February 19): Michael (Chairman of Consensus Hong Kong, Mr Michael Lau), Sara (Chief Executive Officer of CoinDesk, Ms Sara Stratoberdha), distinguished guests, industry leaders and innovators, friends from around the world,      It is my pleasure to be here at Consensus Hong Kong 2025. Let me begin by expressing my heartfelt gratitude to CoinDesk for choosing Hong Kong as the first Asian city for hosting this iconic conference. Your decision underscores Hong Kong’s growing prominence as a global hub for Web3 and crypto innovation. This event also reflects our commitment to building a thriving digital asset ecosystem.  Vast potential of Web3 and AI      Consensus 2025 is a congregation of Web3 talent from around the world, and its agenda reflects the most pressing topics and trends in the Web3 space today. From the convergence of AI and blockchain to the tokenisation of real-world assets (RWA), crypto and consumers, and DeFi 2.0 (decentralised finance), the discussions here are set to shape the future landscape of digital finance and the digital economy.      One of the most exciting developments is, of course, the intersection of AI and blockchain, where “dencetralised AI” can unlock many new applications and opportunities. For example, AI can assist blockchain platforms in performing more accurate credit assessments, improving smart contract audits, providing tailored investment advice, and more.      Globally, the application of Web3 in finance is gaining traction. Blockchain innovations not just reduce transaction costs but also enhance market transparency, and the efficiency and accessibility of financial services. Indeed, we are seeing more institutional adoption where traditional banks, asset managers and brokers increasingly integrate digital assets into their offerings. The benefits are clear. The World Economic Forum, for example, estimates that financial institutions could free up some US$100 billion per year by leveraging distributed ledger technology for collateral management.      Hong Kong, with its advanced financial infrastructure and robust regulatory environment, is at the forefront of this transformation. Hong Kong has already made history by issuing the world’s first tokenised government green bonds in 2023, followed by a groundbreaking multi-currency issuance in 2024.       Beyond finance, Web3 plus AI innovations are inspiring a host of applications in the real economy. From streamlining supply chain management to enhancing game players’ experience; and from improving healthcare management to making agricultural and industrial production more intelligent, they are empowering and transforming business operations and public services.        Rapid tech innovation does not come without challenges. Often, the progress of innovation outpaces regulatory response, creating gaps that can lead to substantial risks. The fallout from several crypto exchanges’ failures in recent years serves as vivid reminders that we must pay attention to market integrity, investor protection, money laundering and cybersecurity risks, as financial products and services continue to innovate and digitalise.      On a positive note, the history of financial innovations shows that we learnt and adapted fast, and put in better guardrails and became more resilient. The key to success lies in maintaining an open, fair, balanced and forward-looking regulatory approach that is conducive to the sustainable and responsible development of financial innovation, including Web3. Hong Kong’s unparalleled advantages      This is the path taken by Hong Kong. While some major jurisdictions have recently begun to embrace cryptocurrencies, which has undoubtedly fuelled a boom of the crypto market, Hong Kong stands out as a market with consistent, predictable, forward-looking policies, and a balanced regulatory framework. For innovators and companies committed to building the future of Web3, or financial institutions looking to bridge traditional and digital finance, Hong Kong is where you want to be.       Our regime is premised on the “same activity, same risk, same regulation” principle, which ensures a level playing field for all market participants. In this regard, Hong Kong has already put in place a licensing regime for digital asset trading platforms. Our Securities and Futures Commission has already issued nine such licences, with more in the pipeline. We are also advancing on the regulation of stable coins, and have introduced the relevant piece of legislation.      To facilitate further innovation, regulatory sandboxes have been set up by our regulators to allow innovators to test and refine their ideas, and to get early regulatory feedback. Besides, initiatives like the Hong Kong Monetary Authority’s Project Ensemble are accelerating the development of tokenisation ecosystems, covering RWAs like fixed income, investment funds, green finance and trade finance.      Indeed, this pro-innovation and collaborative regulatory approach is a unique value proposition of Hong Kong to Web3 innovators and participants.      AI is constantly evolving and increasingly applied to finance. Its convergence with blockchain will create more use cases, with both new opportunities to be captured, and challenges to be addressed. Hong Kong has set out a clear policy stance on the use of AI in financial services. The Government and financial regulators are working closely with the industry to monitor technology and market development and establish a transparent supervisory framework.      Hong Kong’s commitment to Web3 extends beyond regulation. We are investing heavily in the related infrastructure and talent development. Our Cyberport and Science Park have become vibrant hubs for Web3 innovation and fintech, while our universities and partnerships with the industry are nurturing generations of blockchain experts. Through talent admission schemes, we are also attracting top-notch professionals from around the world, ensuring that Hong Kong remains at the cutting edge of technological advancement. Concluding remarks      Ladies and gentlemen, while the tides of change may ebb and flow, the quest for innovation has never stopped. The digital asset market today may somewhat resemble the early days of all great transformative paradigms: as new frontiers emerge, there will always be champions of progress and cautious observers. What remains true is that the market ultimately rewards those who dare to innovate, and adapt and persevere.      The tides of change are upon us, and Hong Kong is ready to ride the wave. As the Web3 ecosystem continues to evolve, Hong Kong will remain a stable, open and vibrant market for digital assets. I am confident that global companies and institutions will join force with us to lead its development.      Once again, my heartfelt thanks to CoinDesk for hosting this event in Hong Kong. I wish you all a productive and inspiring event over the next two days. And do remember to take some time to enjoy Hong Kong, Asia’s world city. Thank you.

     
    Ends/Wednesday, February 19, 2025Issued at HKT 12:30

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: LCQ1: Protecting rights and interests of spouses after marital breakdown

    Source: Hong Kong Government special administrative region

         Following is a question by the Hon Nixie Lam and a reply by the Secretary for Home and Youth Affairs, Miss Alice Mak, in the Legislative Council today (February 19):
     
    Question:
     
         It has been reported that while quite a number of prospective couples have drawn up prenuptial agreements through lawyers to make advance arrangements for the distribution of property and protection of their rights and interests in the event of divorce, prenuptial agreements are not legally binding under the existing legislation. In this connection, will the Government inform this Council:
     
    (1) whether it will consider enacting legislation to ascertain the legal effect of prenuptial agreements; if so, of the details; if not, the relevant legal considerations; 

    (2) whether it will, by drawing reference from the Civil Code of the People’s Republic of China, categorise a person’s property into prenuptial and postnuptial property, without converting prenuptial property into joint property between spouses as a result of marriage; if so, of the details; if not, the reasons for that; and 

    (3) as it is learnt that while quite a number of members of the public protect their interests in property in matrimonial causes through the trust services provided by banks and trust companies, some banks require their clients to have a minimum of US$1 million in liquid assets or US$3 million in non-liquid assets, and some trust companies’ minimum asset requirements for their clients are also very high, whether the Government will consider taking measures to provide members of the public whose assets have not met the relevant thresholds with a similar asset protection mechanism, so as to further enhance Hong Kong’s status as an international asset management centre? 

    Reply:
     
    President,

         When applying for a divorce, both parties to the marriage would normally apply to the court for the settlement of financial matters, such as the division of property and application for maintenance. According to existing legislation, the Matrimonial Proceedings and Property Ordinance (Cap 192) (the Ordinance) empowers the court to order either party to the marriage to make to the other financial provision, or to make order for transfer of property, etc., when granting decree of divorce, decree of nullity of marriage or decree of judicial separation, or at any time thereafter.
     
         In consultation with the Financial Services and Treasury Bureau and the Department of Justice, my reply, on behalf of the Government, to the question raised by the Hon Nixie Lam is as follows:
     
    (1) According to section 7(1) of the Ordinance, the court shall have regard to the conduct of the parties to the marriage and all the circumstances of the case when dealing with matters in relation to financial provisions, transfer and sale of property, etc. The circumstances of the case include the income, earning capacity, property and other financial resources which each of the parties to the marriage has or is likely to have in the foreseeable future; the age of each party to the marriage and the duration of the marriage; as well as the contributions made by each of the parties to the welfare of the family. As the circumstances of the parties to the marriage and family in each case vary, each application shall be handled according to the actual situation. Under the current law, the court has broad discretionary powers to enable it to properly deal with different situations and make fair arrangements for the division of property.
     
         Although Hong Kong currently does not have relevant legal provisions made for prenuptial agreements, the court will, based on the circumstances of the case and the conduct of both parties, consider adopting some or all of the contents of the prenuptial agreement. With reference to local cases, the Court of Final Appeal also pointed out in its judgment that although a prenuptial agreement could not override the powers of the court to grant ancillary relief, it carries considerable weight in relation to the exercise of the court’s discretion when granting such relief. If prenuptial agreement is made between a couple prior to their marriage as to the manner in which their financial affairs should be settled upon divorce, the court should give weight to such agreement where it was fair to do so. Conversely, mandatory enforcement of a prenuptial agreement may, due to the unique circumstances of individual cases, such as something unforeseen at the time of the agreement occurred after the marriage, result in an unfair division of property and harm the interests of one party. It can thus be seen that the current regime effectively ensures that the court can, after fully considering the contents of the prenuptial agreement and all other factors related to the division of property, make an arrangement for division of property which is the fairest for both parties to the marriage to safeguard their interests.
     
    (2) For the second part of the question, the division and definition of matrimonial property and non-matrimonial property depend on the specific circumstances of each case. As I have just mentioned, the court will consider a basket of factors in determining the division of property when the parties to the marriage divorce. According to Section 7(1)(f) of the Ordinance and with reference to local cases, the contributions made by each party to the welfare of the family and the source of the assets are factors that the court would take into account when dealing with the division of property. In fact, in accordance with the principle of fairness, the court must also take into account the financial needs of both parties and/or their children, as well as the standard of living they enjoyed before the divorce. Therefore, due to the uniqueness of each case, the court may not be able to deal with pre-marital property in a uniform approach. The division of property upon divorce involves various complex legal principles and issues, which must be considered comprehensively and carefully. We believe that the current arrangement is effective and will keep in view the relevant situation.
     
    (3) Regarding trust companies, the Government is committed to promoting the industry to offer diversified products, with a view to better satisfying the market needs and facilitating the long-term healthy development of the sector. There is no uniform standard on the asset threshold for setting up a trust. Trust companies in the market formulate different asset thresholds based on their business models, types of trust solution, clients’ need and their levels of risk exposure. Trust companies offer diversified products and professional services to clients with different asset scales, providing them with greater flexibility and more choices when conducting asset allocation.
     
         The Hong Kong Monetary Authority (HKMA) regulates the trust business of banks, so as to enhance clients’ confidence in entrusting assets to banks in Hong Kong. At present, the HKMA does not impose any regulatory requirements on the minimum asset thresholds for the provision of trust services to clients. Banks may decide the conditions applicable to the provision of trust services to their clients, taking into account their own specific circumstances, such as target clientele, operational costs, resource allocation and market demand, among other factors. Banks will review and adjust their trust business, with reference to market developments and their own business considerations. The HKMA will continue to keep in view market developments, and enhance the regulations on the trust business of banks as appropriate.

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: LCQ18: Combating fraud of Comprehensive Social Security Assistance

    Source: Hong Kong Government special administrative region

         Following is a question by the Hon Dominic Lee and a written reply by the Secretary for Labour and Welfare, Mr Chris Sun, in the Legislative Council today (February 19):
     
    Question:
     
         It has been reported that the number of fraud cases involving the Comprehensive Social Security Assistance (CSSA) has been on the rise in recent years, and quite a number of them involve the concealment of assets or income outside Hong Kong. Such a situation has aroused concerns. In this connection, will the Government inform this Council:
     
    (1) of the respective numbers of reports of suspected CSSA fraud received by the Government and established fraud cases, as well as the amount of overpayment successfully recovered in each of the past five years; among those established fraud cases, of the proportion of cases involving the concealment of assets or income outside Hong Kong;
     
    (2) whether it has assessed if the existing 120 officers under the six special investigation teams of the Social Welfare Department are sufficient to cope with the large number of reported cases, and whether it has plans to increase the manpower for conducting investigations and upgrade the investigation techniques; if it has, of the details; if not, the reasons for that;
     
    (3) whether the Government has adopted technologies (e.g. artificial intelligence or big data analysis methods) to proactively identify and strengthen the monitoring of CSSA cases with high fraud risks; if so, of the details; if not, the reasons for that;

    (4) how the Government currently verifies the CSSA applicants’ asset and income profile in the Mainland or overseas; whether it has plans to enhance the mechanism for sharing the relevant information with the Mainland and other regions; if so, of the details; if not, the reasons for that; and
     
    (5) apart from the existing measures in place, whether the Government will consider introducing other measures to combat CSSA fraud, such as increasing penalties, strengthening interdepartmental cooperation within the Government and enhancing the information verification mechanism?
     
    Reply:
     
    President,
     
         As part of Hong Kong’s social security system, the Comprehensive Social Security Assistance (CSSA) Scheme provides a safety net of last resort for people who cannot support themselves financially due to old age, ill health, disability, single parenthood, unemployment, low earnings or for other reasons to help them meet their basic needs. There are stringent means tests in place under the CSSA Scheme to ensure that finite public resources are targeted at needy persons.
     
         The CSSA applicants and their household members must truthfully declare relevant information including income and assets in and outside Hong Kong when submitting their applications. In processing the applications, the Social Welfare Department (SWD) will interview the applicants, conduct home visits and, where necessary, verify the information submitted by the applicants and/or their household members with their employers, ex-employers or landlords.
     
         The SWD adopts a risk-based approach to processing CSSA cases. This includes regular review of all approved cases through various means (such as interviews, home visits or in writing), whereby recipients will be required to re-declare income and assets such that their continued eligibility for CSSA can be verified; adopting different review cycles for approved cases according to their risk levels; and conducting spot-checks on CSSA cases with appointees or agents to ensure that they have properly managed the cash assistance. In addition, the SWD conducts data-matching with other government departments and organisations (such as the the Immigration Department, Treasury, Land Registry and Companies Registry) periodically and on a need basis for information verification and analysis, so as to identify suspicious cases for in-depth investigation.
     
         In case the SWD suspects that an applicant or a recipient has not truthfully declared income or assets, or has even placed assets outside Hong Kong to circumvent the means tests, the SWD will proactively conduct in-depth investigation and take follow-up actions, and refer more serious cases to enforcement agencies for investigation. Where necessary, the SWD will also proactively communicate and verify with government departments or organisations (such as banks) of the places where assets are allegedly concealed.
     
         If a recipient is no longer eligible for CSSA, the SWD will demand him/her to repay the overpayment (if any) as soon as possible. Anyone who knowingly or wilfully provides false statements or withholds any information to obtain CSSA by deception commits an offence. Apart from being disqualified from CSSA, he/she may even be prosecuted under the Theft Ordinance (Cap. 210), liable to a maximum penalty of 14 years of imprisonment upon conviction.
     
         CSSA fraud is not common. In recent years, the number of substantiated fraud cases only accounted for about 0.1 per cent to 0.3 per cent of the total number of cases. The relevant figures from 2020-21 to 2024-25 are set out at Annex. The SWD does not maintain a breakdown of CSSA fraud cases with successfully recovered overpayment or involving concealment of assets or income outside Hong Kong.
     
         Staff of the SWD’s Social Security Field Units (SSFUs) across districts and its Special Investigation Teams (SITs) vet and review CSSA applications and approved cases as well as investigate suspected CSSA fraud cases according to their respective duties. The SITs underwent a re-structuring in July 2019 and hired an additional Chief Social Security Officer to enhance the monitoring of data-matching and spot checks of cases amongst other duties. In September 2021, the SITs were further staffed up to strengthen the work of case investigation. At present, more than 1 400 Social Security Grade officers in the SWD’s SSFUs across districts are involved in vetting applications, reviewing approved cases and investigating suspected cases, while the six SITs comprise about 120 Social Security Grade officers. The SWD also employs three former disciplined forces officers as investigation advisers to assist in handling more complex or serious cases.
     
         To ensure proper use of public monies, the SWD will continue its efforts in counteracting CSSA fraud, and continue to review and optimise the effectiveness of relevant measures, including investigation manpower and methods.

    MIL OSI Asia Pacific News –

  • MIL-OSI Economics: Isabel Schnabel: Interview with the Financial Times

    Source: European Central Bank

    Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Olaf Storbeck on 14 February 2025

    19 February 2025

    How relevant is the natural rate – R* – for day-to-day policymaking from your point of view?

    The natural rate of interest is an important theoretical concept. But it’s not well-suited to determine the appropriate monetary policy stance. The ECB staff analysis that was published recently had one main message: we know that we know very little. Model and estimation uncertainty result in confidence bands that are so wide that they include any reasonable interest rate that the ECB may set at this point. Moreover, R* is a steady-state concept for a world without shocks. That’s certainly not the world that we are in today. Just look at what’s happening with the evolving trade conflict on which we are getting news on a daily basis. So for all those reasons, I think R* cannot be any reliable guide for monetary policy in real time.

    Has your view on this changed?

    The point I have always emphasised is how R* is evolving over the longer term. People have focused too much on the narrow range for R* that was given in the staff note. This is misleading for several reasons. The narrow range only includes the models for which estimates were already available for the fourth quarter of 2024. If you look at the R* estimates for the third quarter, you see that the range actually goes up all the way to 3%. This is even above the current deposit facility rate of 2.75%. And that range still only includes the uncertainty stemming from using different models. If you add the parameter and filtering uncertainty, you get even wider bands. The one thing that you do see is that the overall range seems to have moved up over recent years. For me, that is the key point.

    But the most recent ECB estimates of R* also suggest that the current level is still lower than it was before the global financial crisis and the European sovereign debt crisis.

    That remains to be seen. There has been a clear upward trend. I expect this trend to continue for a number of reasons, including high and rising public debt and the huge investment needs for the digital and green transitions. Another factor is increasing global fragmentation. It leads to a partial reversal of the global savings glut, due to shrinking current account surpluses of some major economies, which was one of the main factors that had pushed R* down. So for me, the main message from the R* analysis is: maintaining price stability over the medium term is likely to require higher real rates in the future than before the pandemic. We cannot pin down the level of R* with any degree of confidence, but we can get an impression about the direction. For me, that direction for R* now is upwards again.

    The Euro zone economy suffers from a lack of economic dynamism and economic growth. Doesn’t this put downward pressure on the natural interest rate?

    Yes, there have been secular factors that have pushed R* down. But we are currently in a situation of transformation that may actually reverse that trend. That’s the whole point.

    When you say that R* is not very helpful for short-term monetary policymaking, why have you stressed it so much in your speeches and interviews?

    It’s important that we understand general macroeconomic trends. Also in the pre-pandemic period, it was very important to understand the underlying natural real rate environment. It can never be precise, but it helps us understand the broader picture. It has no impact on any individual rate decision.

    But would you say that it is relevant for the medium-term trajectory of monetary policy, let’s say for the next year or two? Or does it only matter over the next ten or 20 years?

    I think it has an impact on our medium-term thinking.

    Medium-term thinking would mean: it matters over the next two to three years, right?

    Well, it’s hard to pin down precisely.

    Some ECB observers have suggested that the natural rate was used by more hawkish voices as an argument in favour of being more careful and not lowering interest rates too fast. Would you agree?

    If you believe that R* has moved up, this argues for a more cautious approach. But this cannot just depend on R*. We need to look at the incoming data in order to understand how restrictive our monetary policy is. And the more evidence we have that monetary policy is no longer restrictive, the more cautious we have to become because further rate cuts may no longer be appropriate.

    So how restrictive is the ECB’s monetary policy at the moment?

    The data are showing that the degree of restriction has come down significantly, up to a point where we can no longer say with confidence that our monetary policy is still restrictive. One of the important data sources in this context is the bank lending survey.

    We’re looking at that very carefully. For corporate loans, 90% of banks said in the most recent round that the general level of interest rates has no impact on loan demand, while 8% said it has lifted credit demand. A year ago, a third of banks said that interest rates were weighing on loan demand. It’s even clearer when you look at mortgages. Almost half of banks said in the most recent round that the general level of interest rates is supporting loan demand. A year ago, more than 40% said that it was constraining loan demand. This is also reflected in a historically strong increase in mortgage demand in that same survey, which is gradually transmitting into the hard data on loan growth. Corporate loans were growing by 1.5% in December, mortgages by 1.1%.

    The easing is also being transmitted to the real economy. Consumption picked up in the third quarter by more than we had expected. And the savings rate has started to come down from its very high level. But of course, there are transmission lags, and part of the easing is still in the pipeline.

    You said that you can’t say with confidence anymore if monetary policy is still restrictive. The last ECB policy statement clearly stated that it still is. Do you have a different view than the ECB stated in its latest policy statement?

    No, I fully agreed with the statement last time. But we are now a step further, right? The January monetary policy statement referred to the interest rate of 3% and the level of restrictiveness before the latest monetary policy decision. The further we go down, the lower my conviction in such a statement will be. And note that I’m not saying our monetary policy is no longer restrictive. What I’m saying is I’m no longer sure whether it is still restrictive. But we should not overstate a difference of 25 basis points.

    Should the ECB drop the reference to restrictiveness in March?

    That is a discussion we should have in the next meeting.

    In an FT survey of Euro zone economists just before Christmas, half of them said they think that the ECB is behind the curve. What is your view on this?

    I’m firmly in the camp of the other half who think that we are right on track. The data that we’ve seen have confirmed that our gradual and cautious approach has been appropriate. Domestic inflation is still high, wage growth is still elevated, and we’ve seen new shocks to energy prices. We’ve also seen that inflation expectations are very sensitive to such shocks. So I think our approach is just right.

    Some economists argue that the big uncertainty and all those shocks could justify insurance cuts. Do you have any view on that?

    I don’t see any argument for that at this point, especially as we are getting closer to no longer being restrictive. If anything, we are getting closer to the point where we may have to pause or halt our rate cuts.

    Pause or halt… but not increase?

    No. That I would exclude.

    How close do you think we are to the point where the ECB should pause its easing?

    I will leave that to your interpretation. I don’t know what’s going to happen in the next meetings, so let’s see. But we need to start that discussion.

    That’s not what markets take as the base case scenario right now. Do you think that markets are ahead of themselves?

    Well, markets have been jumping around a bit in response to what is happening in the world. But an April rate cut is no longer fully priced in. So markets are not entirely sure either.

    How well is monetary transmission working at the moment? We saw quite an uptick in yields in December although there wasn’t any change in monetary policy. All other things being equal, this slows down monetary policy transmission, doesn’t it?

    We have lowered the deposit facility rate by 125 basis points over the past eight months, and this has been transmitted smoothly to short-term market rates. We’ve also seen that bank lending rates have come down quite a bit – corporate loan rates by 92 basis points and mortgage rates by 64 basis points by December. This is significant. It tells you that transmission is working. When it comes to government bond yields, it’s important to look through the short-term volatility and take a somewhat longer perspective. And what you see then is that sovereign bond yields have remained rather stable. We had a strong repricing in 2022, when the ten-year Bund moved from negative territory at the end of 2021 to around 2.4% in October 2022. That is very close to the number that we’re seeing today. So we’ve been seeing a return of long-term sovereign bond yields to their new normal. We shouldn’t overstate the short-term volatility that we’ve experienced over the past weeks.

    There’s another aspect that is quite important. One of the most interesting features of this tightening cycle is that it has not led to a comparable tightening of broader financial conditions. The exceptionally strong risk appetite of financial investors has even boosted equity prices and compressed credit spreads, and that has weakened monetary policy transmission. And part of that is due to the fact that we are still holding a very large monetary policy bond portfolio.

    But overall, also taking into account the lags, monetary policy transmission is working fine.

    Is the ECB’s “meeting-by-meeting” communication really credible? The ECB now says that the direction of travel is clear. Isn’t this a pre-commitment to further rate cuts?

    I firmly believe in the meeting-by-meeting approach. The current time of high volatility is certainly not the time to tie our hands through forward guidance. And this is also what we stress in our monetary policy statements: we are not pre-committing to any particular rate path. At the time when it was still relatively clear that monetary policy was restrictive, one could infer the direction of travel from that. But this is no longer the case. And therefore, for me, the direction of travel is not so clear anymore.

    Is this view shared by the majority of the Executive Board or the Governing Council?

    It’s not for me to comment on that. It’s going back to the point that we now have to start the discussion on how far we should go. I’m not saying that we’re there yet. But we have to start the discussion.

    If we take the meeting-by-meeting approach and data dependency as a given, does the type of data that has to be assessed need to change over time?

    There are broadly two sets of data that we need to focus on. The first one refers to the inflation outlook: inflation itself, inflation expectations, wages, productivity, exchange rates. We use incoming data to cross-check the assumptions underlying our projections. This is why I never saw data dependence as a backward-looking concept. It was always forward-looking because we use incoming data to learn more about the credibility of our inflation outlook. The second set of data relates to the level of restrictiveness of monetary policy: interest rates, broader financial conditions, lending markets, the housing market as well as domestic demand, that is consumption, savings and investment. Of course, when we have a monetary policy meeting, we always look at all available data.

    Can I challenge you on your claim that it was always forward-looking? At the time of high inflation, the ECB put a lot of emphasis on the actual inflation data from the previous month, which by definition is backward-looking. GDP numbers are by definition also very backward-looking.

    I don’t agree. What do we learn from the current inflation data? We learn whether the transmission of our policy or of shocks is working as expected. High services inflation tells us something about its stickiness. If we spot deviations, we will eventually adjust our models but we also have to change our view about the medium-term outlook. So, in my view it was never backward-looking.

    Data dependence is all the more important in today’s world. Some people say that the projections have become more credible. But who knows what’s going to happen as regards the trade conflict, the war in Ukraine and so on. We are faced with an unusual number of shocks, and that requires us to be always able to react. I don’t have a fixed mindset about what to do. Quite the opposite. I think we need to be able to adjust to whatever data or shock is coming in and what’s happening in the world and in the euro area economy.

    What are the current data telling us about the inflation outlook?

    Both services inflation and wage growth are still at an uncomfortably high level. Our projections foresee a deceleration of both. But this still needs to materialise. Services inflation has been stuck at around 4% since November 2023, and it still has to come down. For me, this is actually quite important. And therefore, the incoming data will be very relevant because our projections foresee a relatively quick deceleration of services inflation over this year.

    How quickly do you want to see service inflation coming down?

    It should start to come down in February. That’s what we expect. Over time, it does not necessarily have to come down to 2% but to a level that is consistent with our medium-term 2% target. Wage growth is also still high, but we have many indications that it is going to decelerate. For example, our wage tracker shows that wage growth is expected to drop steeply in the second half of the year. Part of that is due to a base effect from one-off payments. Hence, wage growth is expected to stay relatively elevated over the first half of the year. So we still need to see this deceleration. This is something that I pay a lot of attention to.

    How concerned are you about recent swings in energy prices?

    Energy and food prices can always offer surprises. We have seen some relatively strong moves in energy prices recently. Gas prices moved up a lot. That was mainly driven by cold temperatures. Very recently, gas prices dropped sharply. This seems to be driven partly by uncertainty about whether countries will fill up their gas storages as quickly as originally intended. A second reason is the debate about a potential ceasefire in Ukraine. This can cause a lot of volatility, which can have a strong impact on headline inflation and also on underlying inflation because energy serves as an input. We have to monitor this carefully.

    What are the implications for monetary policy from energy price volatility? Is this deflationary or inflationary?

    Recent volatility has been extreme. Before the recent fall in gas prices it was clearly inflationary. But now we have to see how that is going to play out. In general, I see risks to our inflation outlook as somewhat skewed to the upside. So I would not exclude that inflation comes back to 2% later than we had anticipated. But that remains to be seen.

    The ECB this year will review its monetary strategy. President Lagarde has excluded the current inflation target from that review. Do you think that’s the right call?

    Our symmetric, medium-term inflation target of 2% has served us very well in the high inflation period. So I really don’t see any reason to question it. And I believe there is strong support for this view in the Governing Council. What we have seen, however, is how quickly the inflation environment can change. And we have also learned how much people dislike inflation. But for me, that has implications primarily for the reaction function and not for the target. I think these two should be kept apart.

    What are the potential implications for the reaction function?

    The reaction function should be part of the debate. Back in 2021 during the previous strategy review, the discussion was very much under the impression of the low-for-long period. The main concern at the time was that our monetary policy was constrained by the effective lower bound on interest rates. When you read the monetary policy strategy statement today, you would think it comes from a different world. It focused on the risk of inflation being too low, and stated that we should be particularly forceful or persistent in such a scenario. But we have shifted to a new world. The past few years have shown that there are also risks of a de-anchoring of inflation expectations to the upside and that upside inflation risks can materialise quickly and become more persistent due to second-round effects. And therefore, I believe that the new reaction function should be symmetric in order to take into account the risks in both directions. This is especially true given that we are likely to face more adverse supply-side shocks going forward.

    So effectively you are arguing in favour of a more hawkish reaction function?

    I don’t like these notions of hawks and doves, and I don’t think that they are relevant here. My point is that our reaction function should acknowledge the fundamental shift of the macroeconomic environment. Up to 2021, we paid very little attention to upside risks to inflation. There was the perception that central banks would know precisely how to deal with a surge in inflation. But we’ve experienced that it has been quite difficult. Inflation has been above target now for almost four years. Looking forward, we should be putting equal weight on risks in both directions. And I wouldn’t call that a hawkish assertion.

    Should the ECB toolkit be changed?

    We’ve gained a lot of experience with the different tools. I do believe that all the tools we have should remain in our toolkit. But we’ve learned how important it is to carefully weigh the benefits and costs of our instruments – especially when it comes to asset purchases. They have proven very effective in stabilising markets. But as a monetary policy stance instrument, they have been less beneficial and costlier than we thought. This should be taken into account. The same applies to forward guidance. Many people believe that forward guidance led to a delayed response to the inflation surge. So forward guidance is another tool that we need to look at very carefully.

    Are you implicitly saying that ECB should not have done as much quantitative easing as it did in the years up to 2021?

    My point is that once we are back to a more normal world – a situation where inflation expectations are well anchored, and services inflation and unit labour cost growth have come down – and we are confident that we are sustainably back at our target, then we could become more tolerant of moderate deviations from our target. We should stop fine-tuning and responding to single data points. We should instead focus on large persistent shocks that give rise to a risk of a de-anchoring of inflation expectations in either direction.

    So is your point that the ECB should be more willing to tolerate downward deviations to the 2% target in a steady state?

    We should be more willing to tolerate both moderate downward and upward deviations, and act when there is a threat of de-anchoring.

    But that’s an implicit change to the inflation target, is it not?

    No, not at all. My point is that we should be less activist and rather take the time to assess whether shocks pose a serious risk to inflation expectations. Of course, we should keep in mind that the vulnerability of inflation expectations may have changed after the recent inflation experience. People have learned that inflation can increase sharply and that this is very harmful. Firms have learned that they can reprice relatively quickly, and we have to take this into account.

    Finally, we need to think about how to deal with the uncertainty around our economic and inflation outlook. For me, the most useful way to deal with that is to make greater use of scenario analysis – and in a different way than we’ve done over the past years. Back then we were looking at tail risks, which was very useful. But in the future, we should also look at plausible alternative scenarios in order to get away from the illusion of precision that we create by just focusing on the baseline point estimate. We all know there is a lot of uncertainty around it. So I think it would be important to also look at plausible alternative scenarios to illustrate this uncertainty.

    MIL OSI Economics –

  • MIL-OSI Economics: Euro area monthly balance of payments: December 2024

    Source: European Central Bank

    19 February 2025

    • Current account recorded €38 billion surplus in December 2024, up from €25 billion in previous month
    • Current account surplus amounted to €419 billion (2.8% of euro area GDP) in 2024, up from €241 billion (1.6%) in 2023
    • In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €664 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €811 billion in 2024

    Chart 1

    Euro area current account balance

    (EUR billions unless otherwise indicated; working day and seasonally adjusted data)

    Source: ECB.

    The current account of the euro area recorded a surplus of €38 billion in December 2024, an increase of €13 billion from the previous month (Chart 1 and Table 1). Surpluses were recorded for goods (€33 billion), services (€18 billion) and primary income (€4 billion). These were partly offset by a deficit for secondary income (€17 billion).

    Table 1

    Current account of the euro area

    (EUR billions unless otherwise indicated; transactions; working day and seasonally adjusted data)

    Source: ECB.

    Note: Discrepancies between totals and their components may be due to rounding.

    Data for the current account of the euro area

    In 2024, the current account recorded a surplus of €419 billion (2.8% of euro area GDP), compared with a surplus of €241 billion (1.6% of euro area GDP) in 2023. This increase was mainly driven by a larger surplus for goods (up from €256 billion to €390 billion), and, to a lesser extent, by a larger surplus for services (up from €123 billion to €162 billion) and a smaller deficit for secondary income (down from €170 billion to €165 billion). The surplus for primary income remained stable (€32 billion).

    Chart 2

    Selected items of the euro area financial account

    (EUR billions; 12-month cumulated data)

    Source: ECB.

    Notes: For assets, a positive (negative) number indicates net purchases (sales) of non-euro area instruments by euro area investors. For liabilities, a positive (negative) number indicates net sales (purchases) of euro area instruments by non-euro area investors.

    In direct investment, euro area residents made net investments of €74 billion in non-euro area assets in 2024, following net disinvestments of €329 billion in 2023 (Chart 2 and Table 2). Non-residents disinvested €102 billion in net terms from euro area assets in 2024, following net disinvestments of €364 billion in 2023.

    In portfolio investment, euro area residents’ net purchases of non-euro area equity increased to €145 billion in 2024, up from €89 billion in 2023. Over the same period, net purchases of non-euro area debt securities by euro-area residents increased to €519 billion, up from €380 billion in 2023. Non-residents’ net purchases of euro area equity increased to €350 billion in 2024, up from €158 billion in 2023. Over the same period, non-residents made net purchases of euro area debt securities amounting to €461 billion, following net purchases of €398 billion in 2023.

    Table 2

    Financial account of the euro area

    (EUR billions unless otherwise indicated; transactions; non-working day and non-seasonally adjusted data)

    Source: ECB.

    Notes: Decreases in assets and liabilities are shown with a minus sign. Net financial derivatives are reported under assets. “MFIs” stands for monetary financial institutions. Discrepancies between totals and their components may be due to rounding.

    Data for the financial account of the euro area

    In other investment, euro area residents recorded net acquisitions of non-euro area assets amounting to €363 billion in 2024 (following net acquisitions of €205 billion in 2023), while they recorded net disposals of liabilities of €43 billion (following net disposals of €171 billion in 2023).

    Chart 3

    Monetary presentation of the balance of payments

    (EUR billions; 12-month cumulated data)

    Source: ECB.

    Notes: “MFI net external assets (enhanced)” incorporates an adjustment to the MFI net external assets (as reported in the consolidated MFI balance sheet items statistics) based on information on MFI long-term liabilities held by non-residents, available in b.o.p. statistics. B.o.p. transactions refer only to transactions of non-MFI residents of the euro area. Financial transactions are shown as liabilities net of assets. “Other” includes financial derivatives and statistical discrepancies.

    The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs increased by €553 billion in 2024. This increase was mainly driven by the current and capital accounts surplus and, to a lesser extent, by euro area non-MFIs’ net inflows in portfolio investment debt and portfolio investment equity. These developments were partly offset by euro area non-MFIs’ net outflows in direct investment.

    In December 2024 the Eurosystem’s stock of reserve assets increased to €1,394.0 billion up from €1,391.7 billion in the previous month (Table 3). This increase was driven by positive exchange rate changes (€4.0 billion) and, to a lesser extent, by net acquisitions of assets (€2.7 billion) which were partly offset by negative price changes (€4.3 billion).

    Table 3

    Reserve assets of the euro area

    (EUR billions; amounts outstanding at the end of the period, flows during the period; non-working day and non-seasonally adjusted data)

    Notes: “Other reserve assets” comprises currency and deposits, securities, financial derivatives (net) and other claims. Discrepancies between totals and their components may be due to rounding.

    Data for the reserve assets of the euro area

    Data revisions

    This press release incorporates revisions to the data for October and November 2024. These revisions did not significantly alter the figures previously published.

    Next releases:

    • Monthly balance of payments: 21 March 2025 (reference data up to January 2025)
    • Quarterly balance of payments: 04 April 2025 (reference data up to the fourth quarter of 2024)

    For media queries, please contact Nicos Keranis, tel.: +49 69 1344 5482.

    Notes

    • Current account data are always seasonally and working day-adjusted, unless otherwise indicated, whereas capital and financial account data are neither seasonally nor working day-adjusted.
    • Hyperlinks in this press release lead to data that may change with subsequent releases as a result of revisions.

    MIL OSI Economics –

  • MIL-OSI Asia-Pac: MeitY introduces Digital Brand Identity Manual (DBIM) to harmonizes government’s Digital presence & hosts CIO Conference 2025 to strengthen India’s digital governance

    Source: Government of India

    MeitY introduces Digital Brand Identity Manual (DBIM) to harmonizes government’s Digital presence & hosts CIO Conference 2025 to strengthen India’s digital governance

    DBIM aligns with the Prime Minister’s vision of “Reform, Perform, and Transform”, making India’s digital governance more accessible, inclusive, and citizen-centric: Shri Jatin Prasada

    DBIM Provides a toolkit for a uniform identity, Gov.In CMS for streamlined management, CCPS for centralized content, and social media guidelines for standardized communication.

    Posted On: 19 FEB 2025 3:44PM by PIB Delhi

    The Ministry of Electronics and Information Technology (MeitY) yesterday marked a significant step in India’s digital governance with the launch of the Digital Brand Identity Manual (DBIM) and the inaugural Chief Information Officer (CIO) Conference 2025. Held in New Delhi, the event was presided over by Shri Jitin Prasada, Union Minister of State for Electronics and Information Technology and Commerce & Industry and Shri S. Krishnan Secretary for Minister of Information Electronics Technology, under the Gov.In: Harmonisation of Government of India’s Digital Footprint initiative.

    Standardized and cohesive digital presence across platforms

    During launch Shri Jitin Prasada emphasized that the Digital Brand Identity Manual (DBIM) will enhance the government’s “Minimum Government, Maximum Governance” approach by introducing “Uniform Governance,” ensuring a standardized and cohesive digital presence across all ministries and platforms.

     He also highlighted that DBIM aligns with the Prime Minister’s vision of “Reform, Perform, and Transform”, making India’s digital governance more accessible, inclusive, and citizen-centric, thereby strengthening the country’s e-governance ecosystem on a global scale. The initiative focuses on simplifying and standardizing government websites, ensuring that citizens from diverse backgrounds can easily navigate and access essential government services.

    In addition to above, he stressed the role of the Central Content Publishing System (CCPS) in making key government policies, schemes, and initiatives readily available, improving transparency and public engagement. He also emphasized the importance of innovation, agility and security in digital governance, leveraging AI-driven tools and robust security measures to build a seamless, trustworthy and future-ready digital ecosystem, contributing to India’s vision of Viksit Bharat 2047.

    Govt unveils DBIM for efficiency

    MeitY Secretary, S. Krishnan highlighted the Prime Minister’s directive to establish a common interface across government websites, ensuring a user-friendly and standardized digital experience. He emphasized a user-centric approach, where government portals must offer accessibility and efficiency comparable to private sector websites across both desktop and mobile devices. A unified digital branding manual (DBIM) has been introduced to enhance service delivery, and centralized content pushing will ensure consistent messaging across ministries, making government priorities more transparent.

     He also stressed the critical role of NIC in providing technological support and modernizing government infrastructure to meet evolving digital demands. With the digital economy set to reach 20% of GDP, the Secretary urged ministries to adopt digital tools for better service delivery.

     Features of DBIM initiative

    The DBIM launch was accompanied by the introduction of several critical components to harmonize India’s digital presence:

    • DBIM Toolkit for ensuring uniformity in digital identity.
    • Gov.In CMS Platform for streamlined website management.
    • Central Content Publishing System (CCPS) for centralized content governance.
    • Social Media Campaign Guidelines to standardize digital communication.

    The launch also featured the unveiling of the DBIM-compliant MeitY website, demonstrating a consistent and citizen-friendly digital experience. Additionally, four other ministry/department websites have migrated to the Gov.In CMS platform, with more set to follow.

    First CIO conference 2025: key discussions

    The First Chief Information Officer (CIO) Conference 2025 convened experts from MeitY, NIC, MyGov and various ministries to discuss the adoption and implementation of DBIM. Key discussions revolved around:

    • Harmonizing government websites under a unified digital brand identity.
    • Managing websites on the Gov.In platform for enhanced accessibility and performance.
    • Localizing content and optimizing digital services for inclusivity.
    • Compliance with Guidelines for Indian Government Websites and Apps (GIGW) and STQC Certification for quality assurance.

    The nationwide adoption of DBIM is set to revolutionize citizen engagement, strengthen trust, and enhance government service delivery in the digital space.

    Visit the newly launched DBIM-compliant MeitY website for information: https://www.meity.gov.in/

    Digital Brand Identity Manual (DBIM)

    As part of the Gov.In: Harmonisation of Government of India’s Digital Footprint initiative, the DBIM seeks to establish a standardized and seamless digital presence across government ministries, departments, and agencies. This initiative aligns with the vision of Prime Minister Narendra Modi to transform governance through technology, ensuring accessibility, efficiency, and a more citizen-friendly digital experience.

    The primary objective of the DBIM is to create a unified and consistent digital brand for the Government of India. By standardizing elements such as color palettes, typography, and iconography, the manual not only ensures uniformity in look and feel but also strengthens the integrity of government-hosted data. This cohesive approach will enable government departments to present a compelling and trustworthy brand presence, both nationally and globally. The guidelines extend beyond websites to cover mobile applications and social media platforms, reinforcing a seamless user experience across all digital touchpoints.

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    Dharmendra Tewari/Shatrunjay Kumar

    (Release ID: 2104686) Visitor Counter : 39

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Suspicious website related to DBS Bank (Hong Kong) Limited

    Source: Hong Kong Government special administrative region

    Suspicious website related to DBS Bank (Hong Kong) Limited
    Suspicious website related to DBS Bank (Hong Kong) Limited
    **********************************************************

    The following is issued on behalf of the Hong Kong Monetary Authority:     The Hong Kong Monetary Authority (HKMA) wishes to alert members of the public to a press release issued by DBS Bank (Hong Kong) Limited relating to a suspicious website, which has been reported to the HKMA. A hyperlink to the press release is available on the HKMA website.           The HKMA wishes to remind the public that banks will not send SMS or emails with embedded hyperlinks which direct them to the banks’ websites to carry out transactions. They will not ask customers for sensitive personal information, such as login passwords or one-time password, by phone, email or SMS (including via embedded hyperlinks).           Anyone who has provided his or her personal information, or who has conducted any financial transactions, through or in response to the website concerned, should contact the bank using the contact information provided in the press release, and report the matter to the Police by contacting the Crime Wing Information Centre of the Hong Kong Police Force at 2860 5012.

     
    Ends/Wednesday, February 19, 2025Issued at HKT 17:50

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: India is no longer just a follower; it is now leading the way in multiple fields: Dr. Jitendra Singh

    Source: Government of India (2)

    Posted On: 19 FEB 2025 3:04PM by PIB Delhi

    • India’s Space Sector Soars: From Chandrayaan-3 to Bharatiya Antariksh Station, Nation Emerges as a Global Leader in Space Exploration
    • India Leads Global Healthcare Innovation with DNA-Based COVID-19 Vaccine and First Herpesvirus Vaccine for Cervical Cancer
    • India’s Bioeconomy Booms: From $10 Billion to $140 Billion, Poised to Reach $250 Billion with Thriving Biotech Startups
    • India Pioneers Space Biology: Advancing Research in Space Medicine and Sustainable Life Beyond Earth
    • India’s Nuclear Energy Vision: 100 GW by 2047 to Drive Sustainability and Global Climate Leadership
    • India Rises as a Global Research Powerhouse, Poised to Lead the World in Scientific Publications by 2030
    • India’s Space Economy Poised for 10X Growth, Strengthening Global Leadership in Science and Bio-Manufacturing

    Union Minister of State (Independent Charge) for Science and Technology; Earth Sciences and Minister of State for PMO, Department of Atomic Energy, Department of Space, Personnel, Public Grievances and Pensions, Dr. Jitendra Singh has asserted that India is no longer just a follower but is now setting global benchmarks, offering leadership and pioneering innovations across sectors. He highlighted the remarkable advancements India has made in recent years, in the fields of space, biotechnology, and nuclear energy etc positioning itself as a key player on the world stage.

    Dr. Jitendra Singh pointed out that India’s space sector has witnessed an unprecedented transformation, with a surge in ambitious missions and international collaborations. The Space Docking Experiment (SpaDeX) is a testament to India’s technological progress, paving the way for future space missions, including Gaganyaan, Chandrayaan-4, and the Bharatiya Antariksh Station, India’s upcoming international space station.

    India has also emerged as a preferred destination for satellite launches, earning global credibility. The nation has successfully launched 433 foreign satellites, of which 396 were deployed in the last decade alone, generating $157 million and €260 million in revenue from 2014-2023. The historic success of Chandrayaan-3, which made India the first country to land near the Moon’s south pole, has positioned ISRO at the forefront of lunar exploration. The world’s leading space agencies, including NASA, are now awaiting India’s findings from the Moon’s southern pole, a milestone that underscores the nation’s rising dominance in space research.

    The Minister also highlighted India’s pioneering role in biotechnology and bioeconomy. India became the first country to develop a DNA-based COVID-19 vaccine, demonstrating its leadership in vaccine research and development. Furthermore, India has introduced the first herpesvirus vaccine for cervical cancer, reinforcing its position as a leader in preventive healthcare.

    India’s bioeconomy has surged from $10 billion in 2014 to nearly $140 billion today, with projections to reach $250 billion in the coming years. The number of biotech startups has skyrocketed from just 50 in 2014 to nearly 9,000 today, making India a global hub for biotech innovation. In bio-manufacturing, India now ranks third in the Asia-Pacific region and 12th globally, with its influence expanding rapidly.

    India has also taken a bold step into space biology, laying the foundation for human survival beyond Earth. ISRO and the Department of Biotechnology have signed an MoU to advance space biotechnology research, focusing on growing plants in space to sustain long-term space missions. The study of space medicine and human physiology in extraterrestrial environments is becoming a critical area of research, and India is now setting global standards instead of just following them.

    India’s nuclear energy program, once met with scepticism, is now recognized for its peaceful and sustainable ambitions. The country has set an ambitious target of 100 gigawatts of nuclear energy by 2047, aiming to reduce carbon emissions by 50%, a commitment that is influencing global climate strategies. The world has now acknowledged India’s nuclear policy, which was envisioned by Homi Bhabha for peaceful purposes, as a model for responsible energy development.

    India’s scientific output is gaining global recognition, with the country now ranked fourth worldwide in scientific publications. Projections suggest that by 2030, India could surpass the United States to become the world’s top-ranked country in scientific research.

    India’s space economy is set to grow 5 to 10 times in the next decade, further solidifying its leadership. The nation’s rapid economic ascent is evident in its global rankings, including its 12th position in bio-manufacturing and fourth place in scientific research publications.

    Dr. Jitendra Singh concluded by emphasizing that India’s rise is no longer just about catching up but about setting the agenda for the world. “The clock has turned 360 degrees. Earlier, we learned from others; now, the world is looking up to us. The traffic is both ways,” he remarked.

    *****

    NKR/PSM

    (Release ID: 2104674) Visitor Counter : 20

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Second Phase Development of Yuen Long South New Development Area invites in-situ land exchange applications

    Source: Hong Kong Government special administrative region

    Second Phase Development of Yuen Long South New Development Area invites in-situ land exchange applications
    Second Phase Development of Yuen Long South New Development Area invites in-situ land exchange applications
    ******************************************************************************************

         The Lands Department (LandsD) issued today (February 19) Practice Note No. 2/2025 inviting in-situ land exchange applications for designated development sites within the Second Phase Development of Yuen Long South New Development Area (YLS NDA). The Practice Note is available on the department’s website (www.landsd.gov.hk), which provides the location of sites available for in-situ land exchange applications, application criteria and conditions, and application deadlines, etc.     In accordance with the in-situ land exchange arrangements for the Enhanced Conventional New Town Approach as revised and promulgated in 2023 (please refer to Practice Note No. 13/2023) and taking into account other relevant considerations, the land exchange applications in this round cover two sites planned for industry development (about 4.9 hectares in total) which are mainly for logistics and storage uses, etc.     The deadline for land exchange applications this round is May 19, 2025, while the deadline for acceptance of binding basic terms offer (with premium) is May 19, 2026. Applicants may choose standard rates for premium assessment, as an alternative to the conventional case-by-case assessment mechanism. The applicable level of standard rates will be announced later this year. If an application cannot be concluded within the specified deadline, the Government will proceed with land resumption and commencement of construction works in order not to delay the works programme of the entire YLS NDA.     The YLS NDA and the adjacent HSK/HT NDA, together with the existing Yuen Long and Tin Shui Wai New Towns and the Lau Fau Shan/Tsim Bei Tsui/Pak Nai area under planning, are situated within the High-end Professional Services and Logistics Hub, one of the four major zones in the Northern Metropolis. This Hub can work with the Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone and Nanshan District in Shenzhen in such areas as finance, professional services and logistics services, promoting and deepening high-end economic co-operation. The site formation and engineering infrastructure works for the First Phase Development of YLS NDA commenced in 2022, with the first batch of population intake targeted for 2029. Subject to funding approval by the Legislative Council, the site formation and engineering infrastructure works for the Second Phase Development is planned to commence from mid-2025.     According to the revised Recommended Outline Development Plan announced in 2020, the entire YLS NDA will provide about 32 900 housing units accommodating a population of about 98 700, and about 727 000 square metres of gross floor area for various industrial and commercial uses. Also, about 13 700 job opportunities will be created. The Government is now reviewing the development area, development intensity and housing provisions under the Third Phase Development of YLS NDA. The target to complete the review is within 2025.

     
    Ends/Wednesday, February 19, 2025Issued at HKT 20:20

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Record of discussion of meeting of Exchange Fund Advisory Committee Currency Board Sub-Committee held on January 8

    Source: Hong Kong Government special administrative region

    Record of discussion of meeting of Exchange Fund Advisory Committee Currency Board Sub-Committee held on January 8
    Record of discussion of meeting of Exchange Fund Advisory Committee Currency Board Sub-Committee held on January 8
    ******************************************************************************************

    The following is issued on behalf of the Hong Kong Monetary Authority: (Approved for Issue by the Exchange Fund Advisory Committee on February 5, 2025) Report on Currency Board Operations (October 19 – December 24, 2024)———————————————————————————-     The Currency Board Sub-Committee (Sub-Committee) noted that the Hong Kong dollar (HKD) traded within a range of 7.7656 – 7.7848 against the US dollar (USD) during the review period. The HKD exchange rate moderated slightly in the first half of November amid a pullback of the local stock market, and then recovered in December. HKD interbank rates continued to track the USD rates while also being affected by local supply and demand. Meanwhile, following the decreases in the target range for the US federal funds rate in early November and mid-December, many banks reduced their Best Lending Rates by a total of 37.5 basis points, and the Best Lending Rates in the market ranged from 5.25 per cent – 5.75 per cent at the end of the review period. The Convertibility Undertakings were not triggered and the Aggregate Balance was stable at around HK$45 billion. No abnormality was noted in the usage of the Discount Window. Overall, the HKD exchange and interbank markets continued to trade in a smooth and orderly manner.     ​The Sub-Committee noted that the Monetary Base increased to HK$1,958.14 billion at the end of the review period. In accordance with the Currency Board principles, all changes in the Monetary Base had been fully matched by changes in foreign reserves.     ​The Report on Currency Board Operations for the review period is at Annex.Monitoring of Risks and Vulnerabilities——————————————     The Sub-Committee noted that with the incoming US administration, uncertainties over US fiscal sustainability and trade policies, the future policy direction of the US Federal Reserve and the global economic outlook had increased considerably.     The Sub-Committee noted that in Mainland China, the introduction of a series of new policy measures since late-September 2024 had boosted asset market sentiment and led to some signs of improvement in the real economy moving into Q4 2024. At the Central Economic Work Conference and the Politburo Meeting in December 2024, the authorities further signalled more stimulus measures. However, the economic outlook was still subject to the tussle between the challenging external environment and domestic policy response. The renminbi exchange rate had remained relatively stable against the currency basket but had recently come under pressure against the USD amid a strengthening dollar, reversing the rally in August and September 2024.      ​     The Sub-Committee noted that in Hong Kong, the economy continued to grow but the momentum had softened in Q3 2024 amid subdued private consumption and decelerated growth of merchandise exports. Looking ahead, Hong Kong’s economy was expected to grow moderately in 2025, with downside risks stemming from the US policy rate path, global growth prospects, and the trade policies under the new US administration. Despite the sharp increase in housing market transactions in October and November 2024, market sentiment had softened in recent weeks amid increased concerns about a slower pace of US interest rate cuts. Meanwhile, the commercial real estate markets remained subdued especially in the office segment.

     
    Ends/Wednesday, February 19, 2025Issued at HKT 16:30

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: LCQ2: Monitoring of public organisations

    Source: Hong Kong Government special administrative region

         Following is a question by Dr the Hon Kennedy Wong and a reply by the Secretary for Financial Services and the Treasury, Mr Christopher Hui, in the Legislative Council today (February 19):Question:     There are views pointing out that the Reports of the Director of Audit (the Reports) in recent years have revealed the governance problems of quite a number of public organisations, and this has aroused concerns about the Government’s ability to monitor public organisations. In this connection, will the Government inform this Council:(1) as it has been reported that, to the Director of Audit’s surprise, the arrangements concerning claims for allowances as put in place by some organisations receiving subventions from government funds are contrary to government guidelines, whether the authorities will review how to enhance the monitoring of such organisations, so as to comply with the guidelines on the governance of public organisations in respect of a key element therein relating to robust internal control as well as reporting and monitoring mechanisms;(2) as it has been reported that the Audit Commission will place more emphasis on conducting audits on public organisations, funds and social welfare organisations in the future, of the details of the specific work plan; whether the organisations concerned include statutory bodies such as the Hong Kong Trade Development Council, which receive relatively substantial government subventions; and(3) of the number of public organisations which needed to improve their governance in the light of the recommendations made in the Reports in the past five years, and whether it has looked into the average time taken by such organisations to implement the relevant improvement measures; whether it will step up efforts in monitoring the progress of the relevant work of public organisations; if so, of the details; if not, the reasons for that?Reply:President,     Thank you Dr the Hon Kennedy Wong for the question, offering me a chance to talk about the monitoring of public organisations. The Government attaches great importance to good corporate governance of public organisations and monitors these organisations under a multi-pronged approach. Enhancing corporate governance of public organisations not only uplifts their overall efficiency and cost effectiveness, but also plays an integral role in facilitating effective implementation of the organisations’ policies and work objectives. Generally speaking, while respecting the need for public organisations to maintain flexibility in operation and its independence, the Government considers the objectives of setting up the organisations and the powers conferred on them, and formulates regulatory mechanisms for these organisations as appropriate and necessary. Detailed arrangements are mapped out by the relevant bureaux.      In consultation with the Administration Wing and the Audit Commission (AUD), our reply to Dr the Hon Kennedy Wong’s question is as follows: (1) Public organisations should devise a proper governance framework, having regard to the size of the public organsations, the nature of their work and relevant Ordinances. The relevant bureaux should also ensure that a good governance framework is in place in the organisations under their purview. Such arrangements generally consist of the following elements: (i) To set clear work objectives;(ii) To make a clear delineation of roles and responsibilities between the Government, the governing body and the senior management of the public organisation; and(iii) To put in place robust internal monitoring and reporting systems.     Bureaux also appoint appropriate personnel (e.g. those with relevant experience and professional knowledge) to the governing bodies of the public organisations, with a view to monitoring the organisations in an effective manner.     In terms of financial control, subvented organisations are required to prepare a budget annually and submit audited financial accounts to the Government. Where necessary, the Government may include the relevant organisations into the scope of audit by the AUD having regard to the actual circumstances. The subvented organisations should also develop comprehensive understanding of the relevant guidelines pertaining to the management and control of government funding, put in place an appropriate system of cost control and monitoring, and abide by the principle of financial prudence with a view to ensuring proper use of public money and cost-effectiveness. The relevant bureaux will also formulate appropriate monitoring measures, such as drawing up service level agreements and setting out consequences of non-compliance with the responsibilities therein, to maintain effective supervision. This will be done having regard to the organisations’ individual targets, nature and circumstances.     Where the Director of Audit (the Director) selects individual public organisations for conducting Value for Money (VFM) audits, the respective bureaux/Controlling Officers (COs) should give their full co-operation and supervise the public organisations under their purview in implementing the audit recommendations conscientiously. They should also review how to strengthen monitoring of the relevant organisations in accordance with the elements of robust internal control and reporting/monitoring systems as set out in the guidelines on governance of public organisations.      In a nutshell, the Government has strived to enhance the governance of public organisations on various fronts. Bureaux will conduct reviews on the governance of public organisations under their purview from time to time to ensure their effective operation and good governance.(2) The AUD conducts VFM audits on a wide range of subjects, with a view to ensuring proper use of public money. In addition to bureaux and departments, the AUD may conduct audits on various bodies such as public organisations, funds and social welfare organisations, having regard to the following circumstances: (i) The body receives more than half of its income from public money; (ii) The Director is empowered under an Ordinance to audit the accounts of the body and there are currently 23 such bodies. The Director reviews and conducts audits on the economy and efficiency with which these bodies have used their resources in performing their functions and exercising their powers; (iii) The Chief Executive authorises the Director to audit the accounts and records of the body in the public interest; or(iv) By virtue of an agreement made between the Government and the individual body, the Director is empowered to audit the body’s accounts and records. Examples include social welfare organisations funded under the Lump Sum Grant Subvention System.     As the Hong Kong Trade Development Council does not meet the above criteria, it does not fall into the Director’s scope of audit.     In selecting VFM audit projects and according priorities, the Director takes into account a number of factors, including the materiality of projects, their timeliness, the public money and risks involved, and the benefits to be brought about. Until the reports are tabled in the Legislative Council (LegCo), the issues under the AUD’s investigation are confidential. Therefore, we cannot disclose the specific work plans. (3) Among the 10 reports which the Director prepared from 2020 to 2024, 12 chapters involved audit recommendations for 12 public organisations to improve their governance. Of these public organisations, six have fully implemented the recommendations made by the AUD and the Public Accounts Committee (PAC) of LegCo. On average, it takes about 1.5 years for the said organisations to implement all the recommendations.     The Government makes regular reports to the LegCo implementation progress of various recommendations in the form of Government Minutes and Annual Progress Reports. In addition to efforts by the relevant bureaux/COs in monitoring their public organisations in implementing audit recommendations seriously and expeditiously, the AUD would also discuss with the PAC the progress of audited organisations (including public organisations) in implementing the recommendations.      Thank you, President.

    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: NHRC, India organises an open house discussion on ‘Ensuring privacy and human rights in the digital era: A focus on corporate digital responsibility’

    Source: Government of India

    NHRC, India organises an open house discussion on ‘Ensuring privacy and human rights in the digital era: A focus on corporate digital responsibility’

    NHRC, India Chairperson, Justice Shri V. Ramasubramanian emphasises the need for safeguarding privacy as a human right in the digital world

    Cautions against the consequences of the significant decline in value systems

    NHRC, India Member, Justice (Dr) Bidyut Ranjan Sarangi raises concerns over the lack of digital literacy in the financial transactions

    Secretary General, Shri Bharat Lal says, protecting people’s privacy online is a collective responsibility of all stakeholders

    Among various key suggestions, simplifying the user agreements and policy frameworks to enhance consumer understanding and control over personal data highlighted

    Establishing clear accountability structures for data breaches, especially for research institutions and third-party data processors also emphasised

    Posted On: 19 FEB 2025 12:25PM by PIB Delhi

    The National Human Rights Commission (NHRC), India organised an open house discussion in hybrid mode on ‘Ensuring privacy and human rights in the digital era: A focus on corporate digital responsibility’ at its premises. It was chaired by the Chairperson, Justice Shri V Ramasubramanian in the presence of Member, Justice (Dr) Bidyut Ranjan Sarangi, Secretary General, Shri Bharat Lal, senior officers, domain experts, industry representatives among others.

    Addressing the participants, NHRC, India Chairperson, Justice Shri V. Ramasubramanian emphasised that safeguarding privacy as a human right in the digital world is necessary. The technological advancements should align with fundamental human rights and privacy protections. The responsibility must begin with the individual user. He highlighted that maintaining digital hygiene is crucial. He also pointed out the significant decline in value systems, cautioning that one must bear the consequences of this shift.

    He reaffirmed the Commission’s commitment to fostering inclusive discussions on digital rights and corporate accountability for developing a robust regulatory framework that balances innovation, security, and individual privacy.

    NHRC, India Member, Justice (Dr) Bidyut Ranjan Sarangi raised concerns regarding the lack of digital literacy which make many people dependent on others who may dupe them. He said that simplifying the processes of digital technology to maximise its safe usage by the common people in the country.

    Before this, NHRC, India Secretary General, Shri Bharat Lal while setting the agenda for discussion, gave the objective of this discussion on an important emerging issue i.e. ‘Ensuring privacy and human rights in the digital era: A focus on corporate digital responsibility’. He gave an overview of three sub-themes: ‘Establishing a proper regulatory framework and compliance mechanism’, ‘Building a culture of data privacy’, and ‘Identifying threats and best practices’. Citing data from 2023, he mentioned that over 20% of global data is generated in India whereas it has only about 3% of the storage capacity requiring a major role for Indian corporates. He said that while the Digital Personal Data Protection Act, 2023, and other regulations are in place, the challenges in the digital age are increasing. The draft rules have been notified and consultation process is going on. He also said that collection, storage and processing of personal data ‘brings’ huge responsibility of entities and they keep this data as a ‘trustee’. Any breach of trust in this trusteeship, is unacceptable. He stressed that protecting people’s privacy online is a collective responsibility requiring joint efforts from individuals, private sectors which plays a major role and the government and its agencies.

    The meeting extensively discussed the intensity of the problem that arises due to misuse of data and data breaches. Further, several key provisions of the Digital Personal Data Protection Act, 2023 were also discussed.

    Data Usage and Privacy Concerns

    The participants raised concerns over the extensive control exerted by global technology companies on user data, which complicates regulatory enforcement. Law enforcement agencies often face challenges in accessing critical data due to data storage in offshore centres. Additionally, the increasing reliance on digital platforms makes maintaining individual privacy more challenging.

    Cyber Law and Regulatory Framework

    Discussions also highlighted the gaps in the draft data protection rules, including the requirement to report data breaches within 72 hours and the accountability of research institutions handling personal data. The Government representatives highlighted ongoing consultations on data protection regulations, particularly the introduction of the Right to Nomination to enhance data privacy rights.

    Corporate Digital Responsibility

    The Corporate representatives shared best practices in data protection, digital well-being, and compliance-by-design strategies. However, they also highlighted operational challenges, particularly in navigating complex multi-layered digital operations. Companies transitioning from a low digital penetration environment to a structured data protection framework emphasised the need for regulatory flexibility to accommodate evolving business models and global compliance requirements such as the General Data Protection Regulation (GDPR) of the European Union. Referring to the Draft Digital Personal Data Protection Rules, 2025, the corporate stakeholders said that it should include explicit penal provisions for non-compliance and guidelines for obtaining verifiable parental consent for minors.

    Consumer Rights and Policy Simplification

    The participants noted that consumers have limited choices in consenting to data collection, as many business models mandate data sharing. The existing Do-Not-Disturb (DND) mechanism by TRAI was deemed ineffective.

    The participants included Shri Shailendra Trivedi, Chief General Manager-in-Charge, Department of Information Technology, Reserve Bank of India, Shri Deepak Goel, Group Coordinator (Cyber Law), Ministry of Electronics & Information Technology, Shri Ankur Rastogi, Principle Project Engineering, EGSTM, Centre For Railway Information Systems (CRIS), Shri Sanjoy Bhattacharjee, Chief Data Officer, HDFC Bank, Shri Ajay Gupta, Executive Director, ICICI Bank, Shri Soumendra Mattagajasingh, Group Chief Human Resources Officer, ICICI Bank, Shri Rajiv Kumar Gupta, President, PB Fintech, Policy Bazaar, Shri Sameer Bajaj, Head of Communication & Corporate Affairs, MakeMyTrip, Shri Ashish Aggarwal, Vice President and Head of Policy, NASSCOM, Dr Muktesh Chander, NHRC Special Monitor, Cyber Crime and Artificial Intelligence, Shri Tanveer Hasan A K, Executive Director, Centre for Internet & Society (CIS) in India and Shri Sameer Kochhar, President SKOCH Development Foundation, NHRC, India Registrar (Law), Joginder Singh, Director, Lt Col Virender Singh among others.

    Some of the important suggestions that emanated from the discussion included;

    • Simplify the user agreements and policy frameworks to enhance consumer understanding and control over personal data;
    • Establish clear accountability structures for data breaches, especially for research institutions and third-party data processors;
    • Strengthen user consent frameworks for greater transparency and informed decision-making;
    • Define the mandate and composition of the proposed Data Protection Board;
    • Develop a localised approach to data privacy regulations to support small businesses while addressing India-specific challenges;
    • Encourage companies to integrate privacy-by-design principles in digital operations;
    • Enhance consumer awareness through targeted digital privacy and cybersecurity literacy programmes;
    • Have explicit penal provisions for non-compliance;
    • Need for bilateral agreements to address cross-border security and data-sharing concerns;
    • Address the challenges arising from strict data localisation mandates; and
    • Clear guidelines for obtaining verifiable parental consent for minors.

    ***

    NSK

    (Release ID: 2104596) Visitor Counter : 69

    MIL OSI Asia Pacific News –

  • MIL-OSI Europe: EIB Group invests €12.3 billion in Spain in 2024, with record investments in climate action, energy, innovation and housing

    Source: European Investment Bank

    The European Investment Bank (EIB) approved a financing package of €260 million to support the Maltese government’s investments aimed at fostering a smarter, greener, and more resilient economy. The first €130 million tranche was signed this morning in Valletta by Clyde Caruana, Minister for Finance, and Kyriacos Kakouris, EIB Vice-President. This landmark agreement will help Malta co-finance initiatives that receive grants through the European Union budget for the 2021-2027 period, advancing strategic investments in critical sectors that drive economic growth, job creation, and social cohesion.

    MIL OSI Europe News –

  • MIL-OSI Europe: Isabel Schnabel: Interview with the Financial Times

    Source: European Central Bank

    Interview with Isabel Schnabel, Member of the Executive Board of the ECB, conducted by Olaf Storbeck on 14 February 2025

    19 February 2025

    How relevant is the natural rate – R* – for day-to-day policymaking from your point of view?

    The natural rate of interest is an important theoretical concept. But it’s not well-suited to determine the appropriate monetary policy stance. The ECB staff analysis that was published recently had one main message: we know that we know very little. Model and estimation uncertainty result in confidence bands that are so wide that they include any reasonable interest rate that the ECB may set at this point. Moreover, R* is a steady-state concept for a world without shocks. That’s certainly not the world that we are in today. Just look at what’s happening with the evolving trade conflict on which we are getting news on a daily basis. So for all those reasons, I think R* cannot be any reliable guide for monetary policy in real time.

    Has your view on this changed?

    The point I have always emphasised is how R* is evolving over the longer term. People have focused too much on the narrow range for R* that was given in the staff note. This is misleading for several reasons. The narrow range only includes the models for which estimates were already available for the fourth quarter of 2024. If you look at the R* estimates for the third quarter, you see that the range actually goes up all the way to 3%. This is even above the current deposit facility rate of 2.75%. And that range still only includes the uncertainty stemming from using different models. If you add the parameter and filtering uncertainty, you get even wider bands. The one thing that you do see is that the overall range seems to have moved up over recent years. For me, that is the key point.

    But the most recent ECB estimates of R* also suggest that the current level is still lower than it was before the global financial crisis and the European sovereign debt crisis.

    That remains to be seen. There has been a clear upward trend. I expect this trend to continue for a number of reasons, including high and rising public debt and the huge investment needs for the digital and green transitions. Another factor is increasing global fragmentation. It leads to a partial reversal of the global savings glut, due to shrinking current account surpluses of some major economies, which was one of the main factors that had pushed R* down. So for me, the main message from the R* analysis is: maintaining price stability over the medium term is likely to require higher real rates in the future than before the pandemic. We cannot pin down the level of R* with any degree of confidence, but we can get an impression about the direction. For me, that direction for R* now is upwards again.

    The Euro zone economy suffers from a lack of economic dynamism and economic growth. Doesn’t this put downward pressure on the natural interest rate?

    Yes, there have been secular factors that have pushed R* down. But we are currently in a situation of transformation that may actually reverse that trend. That’s the whole point.

    When you say that R* is not very helpful for short-term monetary policymaking, why have you stressed it so much in your speeches and interviews?

    It’s important that we understand general macroeconomic trends. Also in the pre-pandemic period, it was very important to understand the underlying natural real rate environment. It can never be precise, but it helps us understand the broader picture. It has no impact on any individual rate decision.

    But would you say that it is relevant for the medium-term trajectory of monetary policy, let’s say for the next year or two? Or does it only matter over the next ten or 20 years?

    I think it has an impact on our medium-term thinking.

    Medium-term thinking would mean: it matters over the next two to three years, right?

    Well, it’s hard to pin down precisely.

    Some ECB observers have suggested that the natural rate was used by more hawkish voices as an argument in favour of being more careful and not lowering interest rates too fast. Would you agree?

    If you believe that R* has moved up, this argues for a more cautious approach. But this cannot just depend on R*. We need to look at the incoming data in order to understand how restrictive our monetary policy is. And the more evidence we have that monetary policy is no longer restrictive, the more cautious we have to become because further rate cuts may no longer be appropriate.

    So how restrictive is the ECB’s monetary policy at the moment?

    The data are showing that the degree of restriction has come down significantly, up to a point where we can no longer say with confidence that our monetary policy is still restrictive. One of the important data sources in this context is the bank lending survey.

    We’re looking at that very carefully. For corporate loans, 90% of banks said in the most recent round that the general level of interest rates has no impact on loan demand, while 8% said it has lifted credit demand. A year ago, a third of banks said that interest rates were weighing on loan demand. It’s even clearer when you look at mortgages. Almost half of banks said in the most recent round that the general level of interest rates is supporting loan demand. A year ago, more than 40% said that it was constraining loan demand. This is also reflected in a historically strong increase in mortgage demand in that same survey, which is gradually transmitting into the hard data on loan growth. Corporate loans were growing by 1.5% in December, mortgages by 1.1%.

    The easing is also being transmitted to the real economy. Consumption picked up in the third quarter by more than we had expected. And the savings rate has started to come down from its very high level. But of course, there are transmission lags, and part of the easing is still in the pipeline.

    You said that you can’t say with confidence anymore if monetary policy is still restrictive. The last ECB policy statement clearly stated that it still is. Do you have a different view than the ECB stated in its latest policy statement?

    No, I fully agreed with the statement last time. But we are now a step further, right? The January monetary policy statement referred to the interest rate of 3% and the level of restrictiveness before the latest monetary policy decision. The further we go down, the lower my conviction in such a statement will be. And note that I’m not saying our monetary policy is no longer restrictive. What I’m saying is I’m no longer sure whether it is still restrictive. But we should not overstate a difference of 25 basis points.

    Should the ECB drop the reference to restrictiveness in March?

    That is a discussion we should have in the next meeting.

    In an FT survey of Euro zone economists just before Christmas, half of them said they think that the ECB is behind the curve. What is your view on this?

    I’m firmly in the camp of the other half who think that we are right on track. The data that we’ve seen have confirmed that our gradual and cautious approach has been appropriate. Domestic inflation is still high, wage growth is still elevated, and we’ve seen new shocks to energy prices. We’ve also seen that inflation expectations are very sensitive to such shocks. So I think our approach is just right.

    Some economists argue that the big uncertainty and all those shocks could justify insurance cuts. Do you have any view on that?

    I don’t see any argument for that at this point, especially as we are getting closer to no longer being restrictive. If anything, we are getting closer to the point where we may have to pause or halt our rate cuts.

    Pause or halt… but not increase?

    No. That I would exclude.

    How close do you think we are to the point where the ECB should pause its easing?

    I will leave that to your interpretation. I don’t know what’s going to happen in the next meetings, so let’s see. But we need to start that discussion.

    That’s not what markets take as the base case scenario right now. Do you think that markets are ahead of themselves?

    Well, markets have been jumping around a bit in response to what is happening in the world. But an April rate cut is no longer fully priced in. So markets are not entirely sure either.

    How well is monetary transmission working at the moment? We saw quite an uptick in yields in December although there wasn’t any change in monetary policy. All other things being equal, this slows down monetary policy transmission, doesn’t it?

    We have lowered the deposit facility rate by 125 basis points over the past eight months, and this has been transmitted smoothly to short-term market rates. We’ve also seen that bank lending rates have come down quite a bit – corporate loan rates by 92 basis points and mortgage rates by 64 basis points by December. This is significant. It tells you that transmission is working. When it comes to government bond yields, it’s important to look through the short-term volatility and take a somewhat longer perspective. And what you see then is that sovereign bond yields have remained rather stable. We had a strong repricing in 2022, when the ten-year Bund moved from negative territory at the end of 2021 to around 2.4% in October 2022. That is very close to the number that we’re seeing today. So we’ve been seeing a return of long-term sovereign bond yields to their new normal. We shouldn’t overstate the short-term volatility that we’ve experienced over the past weeks.

    There’s another aspect that is quite important. One of the most interesting features of this tightening cycle is that it has not led to a comparable tightening of broader financial conditions. The exceptionally strong risk appetite of financial investors has even boosted equity prices and compressed credit spreads, and that has weakened monetary policy transmission. And part of that is due to the fact that we are still holding a very large monetary policy bond portfolio.

    But overall, also taking into account the lags, monetary policy transmission is working fine.

    Is the ECB’s “meeting-by-meeting” communication really credible? The ECB now says that the direction of travel is clear. Isn’t this a pre-commitment to further rate cuts?

    I firmly believe in the meeting-by-meeting approach. The current time of high volatility is certainly not the time to tie our hands through forward guidance. And this is also what we stress in our monetary policy statements: we are not pre-committing to any particular rate path. At the time when it was still relatively clear that monetary policy was restrictive, one could infer the direction of travel from that. But this is no longer the case. And therefore, for me, the direction of travel is not so clear anymore.

    Is this view shared by the majority of the Executive Board or the Governing Council?

    It’s not for me to comment on that. It’s going back to the point that we now have to start the discussion on how far we should go. I’m not saying that we’re there yet. But we have to start the discussion.

    If we take the meeting-by-meeting approach and data dependency as a given, does the type of data that has to be assessed need to change over time?

    There are broadly two sets of data that we need to focus on. The first one refers to the inflation outlook: inflation itself, inflation expectations, wages, productivity, exchange rates. We use incoming data to cross-check the assumptions underlying our projections. This is why I never saw data dependence as a backward-looking concept. It was always forward-looking because we use incoming data to learn more about the credibility of our inflation outlook. The second set of data relates to the level of restrictiveness of monetary policy: interest rates, broader financial conditions, lending markets, the housing market as well as domestic demand, that is consumption, savings and investment. Of course, when we have a monetary policy meeting, we always look at all available data.

    Can I challenge you on your claim that it was always forward-looking? At the time of high inflation, the ECB put a lot of emphasis on the actual inflation data from the previous month, which by definition is backward-looking. GDP numbers are by definition also very backward-looking.

    I don’t agree. What do we learn from the current inflation data? We learn whether the transmission of our policy or of shocks is working as expected. High services inflation tells us something about its stickiness. If we spot deviations, we will eventually adjust our models but we also have to change our view about the medium-term outlook. So, in my view it was never backward-looking.

    Data dependence is all the more important in today’s world. Some people say that the projections have become more credible. But who knows what’s going to happen as regards the trade conflict, the war in Ukraine and so on. We are faced with an unusual number of shocks, and that requires us to be always able to react. I don’t have a fixed mindset about what to do. Quite the opposite. I think we need to be able to adjust to whatever data or shock is coming in and what’s happening in the world and in the euro area economy.

    What are the current data telling us about the inflation outlook?

    Both services inflation and wage growth are still at an uncomfortably high level. Our projections foresee a deceleration of both. But this still needs to materialise. Services inflation has been stuck at around 4% since November 2023, and it still has to come down. For me, this is actually quite important. And therefore, the incoming data will be very relevant because our projections foresee a relatively quick deceleration of services inflation over this year.

    How quickly do you want to see service inflation coming down?

    It should start to come down in February. That’s what we expect. Over time, it does not necessarily have to come down to 2% but to a level that is consistent with our medium-term 2% target. Wage growth is also still high, but we have many indications that it is going to decelerate. For example, our wage tracker shows that wage growth is expected to drop steeply in the second half of the year. Part of that is due to a base effect from one-off payments. Hence, wage growth is expected to stay relatively elevated over the first half of the year. So we still need to see this deceleration. This is something that I pay a lot of attention to.

    How concerned are you about recent swings in energy prices?

    Energy and food prices can always offer surprises. We have seen some relatively strong moves in energy prices recently. Gas prices moved up a lot. That was mainly driven by cold temperatures. Very recently, gas prices dropped sharply. This seems to be driven partly by uncertainty about whether countries will fill up their gas storages as quickly as originally intended. A second reason is the debate about a potential ceasefire in Ukraine. This can cause a lot of volatility, which can have a strong impact on headline inflation and also on underlying inflation because energy serves as an input. We have to monitor this carefully.

    What are the implications for monetary policy from energy price volatility? Is this deflationary or inflationary?

    Recent volatility has been extreme. Before the recent fall in gas prices it was clearly inflationary. But now we have to see how that is going to play out. In general, I see risks to our inflation outlook as somewhat skewed to the upside. So I would not exclude that inflation comes back to 2% later than we had anticipated. But that remains to be seen.

    The ECB this year will review its monetary strategy. President Lagarde has excluded the current inflation target from that review. Do you think that’s the right call?

    Our symmetric, medium-term inflation target of 2% has served us very well in the high inflation period. So I really don’t see any reason to question it. And I believe there is strong support for this view in the Governing Council. What we have seen, however, is how quickly the inflation environment can change. And we have also learned how much people dislike inflation. But for me, that has implications primarily for the reaction function and not for the target. I think these two should be kept apart.

    What are the potential implications for the reaction function?

    The reaction function should be part of the debate. Back in 2021 during the previous strategy review, the discussion was very much under the impression of the low-for-long period. The main concern at the time was that our monetary policy was constrained by the effective lower bound on interest rates. When you read the monetary policy strategy statement today, you would think it comes from a different world. It focused on the risk of inflation being too low, and stated that we should be particularly forceful or persistent in such a scenario. But we have shifted to a new world. The past few years have shown that there are also risks of a de-anchoring of inflation expectations to the upside and that upside inflation risks can materialise quickly and become more persistent due to second-round effects. And therefore, I believe that the new reaction function should be symmetric in order to take into account the risks in both directions. This is especially true given that we are likely to face more adverse supply-side shocks going forward.

    So effectively you are arguing in favour of a more hawkish reaction function?

    I don’t like these notions of hawks and doves, and I don’t think that they are relevant here. My point is that our reaction function should acknowledge the fundamental shift of the macroeconomic environment. Up to 2021, we paid very little attention to upside risks to inflation. There was the perception that central banks would know precisely how to deal with a surge in inflation. But we’ve experienced that it has been quite difficult. Inflation has been above target now for almost four years. Looking forward, we should be putting equal weight on risks in both directions. And I wouldn’t call that a hawkish assertion.

    Should the ECB toolkit be changed?

    We’ve gained a lot of experience with the different tools. I do believe that all the tools we have should remain in our toolkit. But we’ve learned how important it is to carefully weigh the benefits and costs of our instruments – especially when it comes to asset purchases. They have proven very effective in stabilising markets. But as a monetary policy stance instrument, they have been less beneficial and costlier than we thought. This should be taken into account. The same applies to forward guidance. Many people believe that forward guidance led to a delayed response to the inflation surge. So forward guidance is another tool that we need to look at very carefully.

    Are you implicitly saying that ECB should not have done as much quantitative easing as it did in the years up to 2021?

    My point is that once we are back to a more normal world – a situation where inflation expectations are well anchored, and services inflation and unit labour cost growth have come down – and we are confident that we are sustainably back at our target, then we could become more tolerant of moderate deviations from our target. We should stop fine-tuning and responding to single data points. We should instead focus on large persistent shocks that give rise to a risk of a de-anchoring of inflation expectations in either direction.

    So is your point that the ECB should be more willing to tolerate downward deviations to the 2% target in a steady state?

    We should be more willing to tolerate both moderate downward and upward deviations, and act when there is a threat of de-anchoring.

    But that’s an implicit change to the inflation target, is it not?

    No, not at all. My point is that we should be less activist and rather take the time to assess whether shocks pose a serious risk to inflation expectations. Of course, we should keep in mind that the vulnerability of inflation expectations may have changed after the recent inflation experience. People have learned that inflation can increase sharply and that this is very harmful. Firms have learned that they can reprice relatively quickly, and we have to take this into account.

    Finally, we need to think about how to deal with the uncertainty around our economic and inflation outlook. For me, the most useful way to deal with that is to make greater use of scenario analysis – and in a different way than we’ve done over the past years. Back then we were looking at tail risks, which was very useful. But in the future, we should also look at plausible alternative scenarios in order to get away from the illusion of precision that we create by just focusing on the baseline point estimate. We all know there is a lot of uncertainty around it. So I think it would be important to also look at plausible alternative scenarios to illustrate this uncertainty.

    MIL OSI Europe News –

  • MIL-OSI Europe: Euro area monthly balance of payments: December 2024

    Source: European Central Bank

    19 February 2025

    • Current account recorded €38 billion surplus in December 2024, up from €25 billion in previous month
    • Current account surplus amounted to €419 billion (2.8% of euro area GDP) in 2024, up from €241 billion (1.6%) in 2023
    • In financial account, euro area residents’ net acquisitions of non-euro area portfolio investment securities totalled €664 billion and non-residents’ net acquisitions of euro area portfolio investment securities totalled €811 billion in 2024

    Chart 1

    Euro area current account balance

    (EUR billions unless otherwise indicated; working day and seasonally adjusted data)

    Source: ECB.

    The current account of the euro area recorded a surplus of €38 billion in December 2024, an increase of €13 billion from the previous month (Chart 1 and Table 1). Surpluses were recorded for goods (€33 billion), services (€18 billion) and primary income (€4 billion). These were partly offset by a deficit for secondary income (€17 billion).

    Table 1

    Current account of the euro area

    (EUR billions unless otherwise indicated; transactions; working day and seasonally adjusted data)

    Source: ECB.

    Note: Discrepancies between totals and their components may be due to rounding.

    Data for the current account of the euro area

    In 2024, the current account recorded a surplus of €419 billion (2.8% of euro area GDP), compared with a surplus of €241 billion (1.6% of euro area GDP) in 2023. This increase was mainly driven by a larger surplus for goods (up from €256 billion to €390 billion), and, to a lesser extent, by a larger surplus for services (up from €123 billion to €162 billion) and a smaller deficit for secondary income (down from €170 billion to €165 billion). The surplus for primary income remained stable (€32 billion).

    Chart 2

    Selected items of the euro area financial account

    (EUR billions; 12-month cumulated data)

    Source: ECB.

    Notes: For assets, a positive (negative) number indicates net purchases (sales) of non-euro area instruments by euro area investors. For liabilities, a positive (negative) number indicates net sales (purchases) of euro area instruments by non-euro area investors.

    In direct investment, euro area residents made net investments of €74 billion in non-euro area assets in 2024, following net disinvestments of €329 billion in 2023 (Chart 2 and Table 2). Non-residents disinvested €102 billion in net terms from euro area assets in 2024, following net disinvestments of €364 billion in 2023.

    In portfolio investment, euro area residents’ net purchases of non-euro area equity increased to €145 billion in 2024, up from €89 billion in 2023. Over the same period, net purchases of non-euro area debt securities by euro-area residents increased to €519 billion, up from €380 billion in 2023. Non-residents’ net purchases of euro area equity increased to €350 billion in 2024, up from €158 billion in 2023. Over the same period, non-residents made net purchases of euro area debt securities amounting to €461 billion, following net purchases of €398 billion in 2023.

    Table 2

    Financial account of the euro area

    (EUR billions unless otherwise indicated; transactions; non-working day and non-seasonally adjusted data)

    Source: ECB.

    Notes: Decreases in assets and liabilities are shown with a minus sign. Net financial derivatives are reported under assets. “MFIs” stands for monetary financial institutions. Discrepancies between totals and their components may be due to rounding.

    Data for the financial account of the euro area

    In other investment, euro area residents recorded net acquisitions of non-euro area assets amounting to €363 billion in 2024 (following net acquisitions of €205 billion in 2023), while they recorded net disposals of liabilities of €43 billion (following net disposals of €171 billion in 2023).

    Chart 3

    Monetary presentation of the balance of payments

    (EUR billions; 12-month cumulated data)

    Source: ECB.

    Notes: “MFI net external assets (enhanced)” incorporates an adjustment to the MFI net external assets (as reported in the consolidated MFI balance sheet items statistics) based on information on MFI long-term liabilities held by non-residents, available in b.o.p. statistics. B.o.p. transactions refer only to transactions of non-MFI residents of the euro area. Financial transactions are shown as liabilities net of assets. “Other” includes financial derivatives and statistical discrepancies.

    The monetary presentation of the balance of payments (Chart 3) shows that the net external assets (enhanced) of euro area MFIs increased by €553 billion in 2024. This increase was mainly driven by the current and capital accounts surplus and, to a lesser extent, by euro area non-MFIs’ net inflows in portfolio investment debt and portfolio investment equity. These developments were partly offset by euro area non-MFIs’ net outflows in direct investment.

    In December 2024 the Eurosystem’s stock of reserve assets increased to €1,394.0 billion up from €1,391.7 billion in the previous month (Table 3). This increase was driven by positive exchange rate changes (€4.0 billion) and, to a lesser extent, by net acquisitions of assets (€2.7 billion) which were partly offset by negative price changes (€4.3 billion).

    Table 3

    Reserve assets of the euro area

    (EUR billions; amounts outstanding at the end of the period, flows during the period; non-working day and non-seasonally adjusted data)

    Notes: “Other reserve assets” comprises currency and deposits, securities, financial derivatives (net) and other claims. Discrepancies between totals and their components may be due to rounding.

    Data for the reserve assets of the euro area

    Data revisions

    This press release incorporates revisions to the data for October and November 2024. These revisions did not significantly alter the figures previously published.

    MIL OSI Europe News –

  • MIL-OSI Europe: Greece financing from EIB Group totals €2.2 billion in 2024 with focus on energy supply, business growth and disaster preparedness

    Source: European Investment Bank

    EIB

    • EIB Group’s fresh financing in Greece last year amounted to €2.2 billion
    • Focus last year on energy supply, business growth and disaster management
    • Latest annual results bring EIB Group support in Greece over past five years to €14.5 billion

    The European Investment Bank (EIB) Group’s new financing in Greece amounted to €2.2 billion last year, with major support to bolster energy supplies, strengthen businesses and protect against environmental disasters in the country.

    The total for 2024 included €2.03 billion from the EIB and portfolio guarantees of €152 million from the European Investment Fund (EIF), which focuses on innovative and technology-driven small and medium-sized enterprises (SMEs) as well as Small Mid-Caps in Europe.

    Top operations included loans of €390 million to natural-gas supplier DEPA Commercial to build solar parks, €150 million to power provider HEDNO to upgrade the grid, loans and guarantees of €550 million to domestic banks to expand financing for SMEs and Mid-Caps and €220 million to the government to bolster disaster management.

    Kostis Hatzidakis, Minister of Finance of the Hellenic Republic noted: “Greece’s relationship with the European Investment Bank is long-standing and strong. This was reaffirmed in 2024, with new financing reaching €2.2 billion. These funds will be used for investments in renewable energy sources, upgrades to the electricity grid, support for SMEs, and the purchase of firefighting aircraft and rescue equipment. The EIB was a valuable ally when Greece was cut off from the markets. It will remain a partner, but with a new approach. Going forward, priorities will focus on energy interconnections, research and technology, climate adaptation, and defense investments, as outlined in the EIB’s Strategic Roadmap”.

    “Our work in Greece is a testament to the transformative power of strategic financing,” said EIB Vice-President Yannis Tsakiris. “In 2024, we reinforced our commitment to the country by supporting clean energy, climate resilience and critical infrastructure while strengthening SMEs, innovation, job creation and social cohesion.”

    The latest annual results bring total EIB Group financing in Greece over the past five years to €14.5 billion. The yearly average in the country since 2000 is almost €2.9 billion, which reflects an unusually high sum of almost €5 billion in 2021 as a result of the Covid-19 pandemic.

    The EIB Group’s support last year was almost 1% of Greece’s gross domestic product (GDP), the third-highest level among European Union countries behind only Croatia and Estonia. That means that EIB Group financing in Greece last year averaged €631 per inhabitant, making the country one of the biggest beneficiaries based on the size of the population and the economy. The funding is projected to catalyse investments in Greece of up to €6.6 billion – about 2.5% of its GDP.

    Energy supply

    The €390 million EIB loan to DEPA Commercial is for new photovoltaic (PV) parks in the regions of western Macedonia, Thessaly and central Greece. The sites will add approximately 800 megawatts (MW) of renewable energy – enough to power 278,000 households for a year.

    Also in the area of clean energy, the EIB last year provided a €195 million loan to supplier PPC Renewables to develop 580 MW of solar plants and 175 MW of battery storage. The moves will boost renewables capacity, grid stability and energy security.

    The €150 million EIB credit to HEDNO covers upgrades to Greece’s electricity-distribution network, improving grid reliability and facilitating integration of renewables.

    The EIB last year also took part in the creation of an EU “Decarbonisation Fund” for Greece that will channel €1.6 billion in revenue from the European emissions-trading system into sustainable energy and development projects on Greek islands. These include grid interconnections with the mainland and the phase-out of local power plants.

    Business boost

    The EIB last year allocated a total €702 million to strengthen SMEs and Mid-Caps in Greece. The support – 28% of the total – took the form of intermediated loans and guarantees.

    Top operations included €300 million guarantees to Eurobank and National Bank of Greece covering €600 million new loans to Mid-Caps. In addition, the EIB provided a €250 million loan to the National Bank of Greece to bolster green investments by Greek SMEs and Mid-Caps. The credit raised total EIB support for such investments in Greece to €1 billion.

    The EIF also showed its agility in supporting vital investments for both debt and equity. It signed €152m with several of Greece’s financial institutions for capped portfolio guarantees. They are expected to mobilise up to €1,8bn in financing for small and medium-sized enterprises, while making the Greek economy greener, and supporting innovation and the country’s digital transition.

    The EIF also signed a new €200 million equity mandate to support innovative companies in Life Sciences & Healthcare and Sustainability & Social Impact by improving their access to vital financing. Funded by Cohesion policy and national resources of the Hellenic Republic, the mandate will cover a financing gap in these sectors, supporting investments from pre-seed to growth stages based on market needs.

    Disaster protection

    The €220 million EIB loan last year to the Greek government is to buy fire trucks, rescue vehicles and aircraft needed to fight to natural disasters such as wildfires and floods, both of which have caused extensive damage in Greece in recent years. The credit also covers upgrades to essential disaster-management services.

    The financing forms part of a European climate-adaptation plan by the EIB Group and brings its total support for Greek civil protection and disaster preparedness to €595 million.

    EIB Advisory

    There were also key technical assistance projects delivered from EIB Advisory, a highlight being an agreement with the Athens Water Supply and Sewerage Company (EYDAP) to back its €2 billion, 10-year investment programme to ensure the Greek capital has a more resilient water supply and supporting investments in lignite-dependent regions such as Western Macedonia and Megalopolis in the Peloponnese, facilitating their transition to a future of clean energy.

    In December 2024, the continuation of advisory support by EIB advisors from the PASSA team to the Greek administration was approved. This support aims to ensure the smooth implementation of sustainable development and Just Transition projects financed by the EU.

    Background information

    EIB

    The European Investment Bank (ElB) is the long-term lending institution of the European Union, owned by its Member States. Built around eight core priorities, , we finance investments that contribute to EU policy objectives by bolstering climate action and the environment, digitalisation and technological innovation, security and defence, cohesion, agriculture and bioeconomy, social infrastructure, important investments outside the EU, and the Capital Markets Union.  

    The EIB Group, which also includes the European Investment Fund (EIF), signed nearly €89 billion in new financing for over 900 high-impact projects in 2024, boosting Europe’s competitiveness and security.  

    All projects financed by the EIB Group are in line with the Paris Climate Agreement, as pledged in our Climate Bank Roadmap. Almost 60% of the EIB Group’s annual financing supports projects directly contributing to climate change mitigation, adaptation, and a healthier environment.  

    Fostering market integration and mobilising investment, the Group supported a record of over €100 billion in new investment for Europe’s energy security in 2024 and mobilised €110 billion in growth capital for startups, scale-ups and European pioneers

    Approximately half of the EIB’s financing within the European Union is directed towards cohesion regions, where per capita income is lower than the EU average.

    Greece financing from EIB Group totals €2.2 billion in 2024 with focus on energy supply, business growth and disaster preparedness
    Greece financing from EIB Group totals €2.2 billion in 2024 with focus on energy supply, business growth and disaster preparedness
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    Greece financing from EIB Group totals €2.2 billion in 2024 with focus on energy supply, business growth and disaster preparedness
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    Greece financing from EIB Group totals €2.2 billion in 2024 with focus on energy supply, business growth and disaster preparedness
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    Greece financing from EIB Group totals €2.2 billion in 2024 with focus on energy supply, business growth and disaster preparedness
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    Greece financing from EIB Group totals €2.2 billion in 2024 with focus on energy supply, business growth and disaster preparedness
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    MIL OSI Europe News –

  • MIL-OSI Europe: Highlights – DEVE delegation to Tanzania on 24-26 February 2025 – Committee on Development

    Source: European Parliament

    7 Committee on Development MEPs, led by chair Barry Andrews, will travel to Tanzania to gather first-hand information on Global Gateway initiatives and other development cooperation projects on the ground and to assess their impact on the local economy and population.

    MEPs will focus on the impact of EU investment in the country, both in sector-specific projects and the wider impact of the EU’s flagship Global Gateway initiative. Over the course of the three-day mission, MEPs will visit projects focusing on water and sanitation, economic development and port infrastructure, gender equality, education, and sustainable fishing practices. The MEPs will meet with government ministers and representatives of EU diplomatic missions, UN agencies, development banks, private sector, and national development agencies. They will also talk with their counterparts in the Tanzanian parliament as well as local civil society representatives to discuss, among other issues, sustainable development, inter-parliamentary cooperation and human rights.

    MIL OSI Europe News –

  • MIL-OSI Europe: Press release – Deal on new EU rules to reduce textile and food waste

    Source: European Parliament

    On Tuesday night, Parliament and Council reached a provisional agreement on new measures to prevent and reduce waste from food and textiles across the EU.

    Cutting down food waste

    Negotiators agreed to introduce binding food waste reduction targets to be met at national level by 31 December 2030: 10% in food processing and manufacturing and 30% per capita in retail, restaurants, food services and households. These targets would be calculated in comparison to the amount generated as an annual average between 2021 and 2023. Following Parliament’s request, EU countries would have to take measures to ensure that economic operators having a significant role in the prevention and generation of food waste (to be identified in each country) facilitate the donation of unsold food that is safe for human consumption.

    Producers to cover costs for collecting, sorting and recycling waste textiles

    According to the deal, EU countries would have to establish producer responsibility (EPR) schemes, through which producers that make textiles available in an EU country would have to cover the costs for their collection, sorting and recycling, 30 months after the entry into force of the directive. These provisions would apply to all producers, including those using e-commerce tools and irrespective of whether they are established in an EU country or outside the EU. Micro-enterprises would need to comply with the EPR requirements 12 months later.

    The new rules would cover products such as clothing and accessories, footwear, blankets, bed and kitchen linen, curtains, hats. At Parliament’s initiative, EU countries may also set up EPR schemes for the producers of mattresses.

    Negotiators also agreed that member states should address ultra-fast fashion and fast fashion practices when setting out the financial contributions to the EPR schemes.

    Quote

    Rapporteur Anna Zalewska (ECR, PL) said: “During the final negotiations round, Parliament succeeded to secure provisions making sure that food waste and textiles waste as part of the municipal waste will be further reduced. We succeeded in ensuring feasible and realistic provisions for member states to implement food waste reduction policies and we managed to ensure that the agriculture sector will not be negatively impacted. We also set up the legal framework to ensure that producers contribute to the effective separate collection of textiles they produce. We managed to lower the administrative burden both for member states and economic operators.”

    Next steps

    Parliament and Council have concluded an “early second reading agreement” (negotiations took place after the EP’s first reading was adopted in plenary). The Council is now expected to formally adopt its position, which can then be endorsed by the EP in second reading.

    Background

    Every year, almost 60 million tonnes of food waste (132 kg per person) and 12.6 million tonnes of textile waste are generated in the EU. Clothing and footwear alone account for 5.2 million tonnes of waste, equivalent to 12 kg of waste per person every year. It is estimated that less than 1% of all textiles worldwide are recycled into new products.

    In July 2023, the Commission proposed a revision of the EU rules on waste, targeted at food and textile waste. Under the existing rules, EU countries were already required to set up separate collection of textiles by 1 January 2025.

    MIL OSI Europe News –

  • MIL-OSI: Virturo Enhances Trading Efficiency with Advanced Automation and Risk Strategies

    Source: GlobeNewswire (MIL-OSI)

    LONDON, Feb. 19, 2025 (GLOBE NEWSWIRE) — Virturo, a leader in CFD trading and financial technology, has launched a suite of AI-driven automated trading and advanced risk management solutions, designed to enhance investment strategies for high-net-worth traders. By integrating cutting-edge technology with expert insights, Virturo enables traders to optimize performance while effectively managing market volatility.

    The Power of Automation in Modern Trading
    “Automated trading features greatly enhance a trader’s ability to capitalize on market opportunities without the emotional stress of manual trading,” says Michael Stean, Senior Financial Strategist at Virturo. “At Virturo, we provide traders with the tools to optimize performance and maximize efficiency.”

    Automated trading has transformed financial markets, enabling traders to execute strategies efficiently without constant market monitoring. With Virturo’s automation tools, traders can:

    • Set predefined entry and exit points to execute trades with precision.
    • Eliminate emotional decision-making, ensuring disciplined execution.
    • Respond instantly to market changes, capitalizing on opportunities in real-time.

    Risk Management Meets Cutting-Edge Technology
    Smart trading isn’t just about speed – it’s about control. Virturo’s advanced risk management features work alongside automation to protect investments and maximize returns, including:

    • Limit Orders – Executing trades only at the desired price point to control entry and exit precision.
    • Take-Profit & Stop-Loss Orders – Locking in gains and minimize losses with predefined price thresholds.
    • Conditional Orders – Automating trade actions based on specific market conditions, removing uncertainty from execution.

    “When risk management is integrated with automation, it not only protects investments but also enhances a trader’s potential for success,” adds Stean.

    Tailored for High-Value Investors
    Virturo’s sophisticated trading ecosystem is designed for high-net-worth traders who require precision, speed, and strategic execution. The platform’s advanced features include:

    • Dynamic margin optimization to enhance capital efficiency.
    • Trading pyramiding strategies to scale profitable positions intelligently.
    • Portfolio hedging tools to safeguard against market volatility.

    “At Virturo, we provide high-net-worth traders with a tailored blend of technology and expertise,” explains Stean. “Automation amplifies the efficiency of managing complex portfolios while ensuring every decision aligns with long-term financial goals.”

    Virturo’s Commitment to Smart, Data-Driven Trading
    While automation enhances execution speed, Virturo ensures traders retain full strategic control. The platform integrates AI-driven analysis with expert guidance, allowing traders to fine-tune strategies, adapt to evolving markets, and make informed decisions with confidence.

    “The future of trading belongs to those who embrace automation, predictive analytics, and risk-focused strategies,” says Stean. “Virturo’s innovative platform delivers the tools to navigate market complexities while optimizing performance.”

    Virturo continues to lead the next generation of trading, offering elite investors the power of AI, automation, and expert-backed risk management in one seamless platform.

    Users can discover the next evolution of trading at www.virturo.com.

    About Virturo
    Virturo, a leading broker in CFD trading and financial technology, is redefining investment strategies with its AI-driven automated trading and advanced risk management solutions.
    Website LinkedIn Twitter YouTube Facebook

    Contact

    Media Team
    Virturo Media Team
    Virturo
    support@virturo.com

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/5b4f70a2-1892-46ae-bbf0-b3e7527cb899

    The MIL Network –

  • MIL-OSI: Mattr Announces Dates of Earnings Releases and Associated Conference Calls Through Fourth Quarter of 2025

    Source: GlobeNewswire (MIL-OSI)

    TORONTO, Feb. 19, 2025 (GLOBE NEWSWIRE) — Mattr Corp. (“Mattr” or the “Company”) (TSX: MATR) announced today its reporting schedule for its financial results and related conference calls. Financial results for the respective reporting periods are expected to be reported on the below dates, after the market closes for trading on the TSX. A conference call/webcast to discuss results from the respective reporting periods will be held on the below dates at 9:00am ET.

    Reporting Period: Financial Results: Conference Call/Webcast:
    Q4 – 2024 March 13, 2025 March 14, 2025
    Q1 – 2025 May 14, 2025 May 15, 2025
    Q2 – 2025 August 13, 2025 August 14, 2025
    Q3 – 2025 November 12, 2025 November 13, 2025
    Q4 – 2025 March 12, 2026 March 13, 2026

    Mattr will use a presentation to accompany its conference calls. The presentation can be found on the Company’s website in advance of the earnings call and can also be accessed via the conference call/webcast. Please visit the Mattr Investor Centre website at mattr.com or use the following link https://investors.mattr.com/news-events/events-and-presentations for further details.

    About Mattr

    Mattr is a growth-oriented, global materials technology company broadly serving critical infrastructure markets, including transportation, communication, water management, energy and electrification. The Company operates through a network of fixed manufacturing facilities. Its two business segments, Composite Technologies and Connection Technologies, enable responsible renewal and enhancement of critical infrastructure.

    For further information, please contact:

    Meghan MacEachern
    VP, Investor Relations & External Communications
    Telephone: 437.341.1848
    Email: meghan.maceachern@mattr.com
    Website: www.mattr.com

    Source: Mattr Corp.

    The MIL Network –

  • MIL-OSI Africa: CORRECTION – African Union Summit: African Development Bank President Highlights a Decade of Economic Transformational Impact

    Source: Africa Press Organisation – English (2) – Report:

    ADDIS ABABA, Ethiopia, February 19, 2025/APO Group/ —

    • “It’s been my greatest honor to serve you and Africa”—Adesina tells African leaders
    • Governments across Africa pay tribute to Adesina’s exceptional leadership
    • UN Secretary General Guterres says global financial architecture hampering Africa’s development, calls for reforms

    African Development Bank Group (www.AfDB.org) President Dr. Akinwumi A. Adesina, delivered a compelling farewell address to Heads of State and Government at the 38th African Union Summit, highlighting a decade of remarkable achievements by the Bank in driving Africa’s economic transformation. Adesina’s participation at the august continental gathering in Addis Ababa ended on a high note as African leaders considered and endorsed four Bank-led initiatives including the drive to connect 300 million Africans to electricity by 2030, measuring Africa’s green wealth as part of its GDP, an innovative facility to provide Africa with a financial buffer and a roadmap for the continent to achieve inclusive growth and rapid sustainable development.

    Adesina, who is also the Chairman of the Group’s Boards of Directors, underscored the impact of the Bank’s High 5s Agenda—Light up and Power Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the Quality of Life for the People of Africa—which has impacted more than half a billion lives across the continent.

    “It has been an unprecedented partnership to advance the goal of the African Union towards achieving Agenda 2063: the Africa we want,” said Adesina who in February 2022, became the first president of the Bank Group to address the AU Summit.

    During the final day of the assembly, several African governments and AU officials paid tribute to Dr. Adesina for his exceptional leadership of the Bank and strong global advocacy for Africa, He ends his tenure as the Bank Group’s president on 1st September 2025.

    The February 15–16 Summit saw the election of Djibouti’s Foreign Minister Mahmoud Ali Youssouf as Chairperson of the African Union Commission, taking over from Moussa Faki Mahamat. Algeria’s Ambassador, Salma Malika Haddadi, was elected the Commission’s Deputy Chairperson.

    Reflecting on his tenure at the helm of the African Development Bank, Dr. Adesina said the Bank has transformed 515 million lives, including 231 million women, over the past decade:

    • 127 million people gained access to better services in terms of health.
    • 61 million people gained access to clean water.
    • 33 million people benefited from improved sanitation.
    • 46 million people gained access to ICT services, and
    • 25 million people gained access to electricity.

    He cited the landmark Africa Energy Summit held in Tanzania in January, where 48 nations signed the Dar Es Salaam Declaration to adopt bold policies in support of an initiative by the World Bank and the African Development Bank to extend electricity access to 300 million Africans by 2030. That meeting, attended by 21 heads of state, secured $48 billion in commitments from the two institutions and an additional $7 billion from other development partners.

    The Addis Ababa Summit endorsed the Dar Es Salaam Energy Declaration, the Baku Declaration by African Heads of State on Measuring the Green Wealth of Africa. The Assembly also adopted the African Financing Stability Mechanism, a groundbreaking initiative mandated by the African Union Heads of State and Government. Co-led by the African Union Commission and the African Development Bank, it could generate, if immediately implemented, approximately USD 20 billion in debt servicing savings for African countries by 2035. The Assembly also adopted the Strategic Framework on Key Actions to Achieve Inclusive Growth and Sustainable Development in Africa report which outlines key actions required to enable Africa to achieve, and sustain an annual growth rate of at least 7% of GDP over the next five decades.

    On food security, Adesina cited the Bank’s Technologies for African Agricultural Transformation (TAAT), the Dakar 2 Food Summit that mobilized $72 billion in 2023, and the $1.5 billion Africa Emergency Food Production Facility that was launched in May 2022 to avert a major food and fertilizer crisis triggered by global conflicts.

    “The African Development Bank accelerated food production in Africa. Over 101 million people became food secure. We mobilized $72 billion to implement the food and agriculture delivery compacts across the continent,” he stressed. With the support of the Bank, Ethiopia has achieved self-sufficiency in wheat production within four years and is now a wheat-exporting nation.

    A Decade of Transformative Impact

    With a strong focus on job creation, the Bank has trained 1.7 million youth in digital skills and is rolling out Youth Entrepreneurship Investment Banks to drive youth-led economic growth. “Our goal is simple: create youth-based wealth across Africa,” Adesina reiterated.

    Additionally, the Affirmative Finance Action for Women in Africa (AFAWA) initiative has provided $2.5 billion in financing to over 24,000 women-owned businesses, said Adesina.

    Over the past decade, the African Development Bank has invested over $55 billion in infrastructure, making it the largest multilateral financier of African infrastructure.

    The Bank has also prioritized healthcare, committing $3 billion in quality healthcare infrastructure and another $3 billion for pharmaceutical development, including establishing the Africa Pharmaceutical Technology Foundation.

    Historic Financial Mobilization for Africa

    Under Adesina’s presidency, the Bank achieved its largest-ever capital increase, growing from $93 billion in 2015 to $318 billion currently. The most recent replenishment of the African Development Fund, the Bank Group’s concessional window, raised a record $8.9 billion for Africa’s 37 low-income countries, setting the stage for a target of $25 billion for its upcoming 17th replenishment.

    The Africa Investment Forum, a joint effort with eight other partner institutions, has also mobilized over $200 billion in investment commitments, reinforcing Africa as a leading investment destination.

    As he bade farewell, the outgoing Bank chief expressed gratitude to the African Heads of State, the African Union Commission, regional economic communities, and the people of Africa for their unwavering support.

    “As today will be my final attendance of the AU Summit as President of the African Development Bank, I would like to use this opportunity to immensely thank your Excellencies Heads of State and Government for your extraordinary support over the past ten years. I am very grateful for your always being there for the African Development Bank—your Bank. I am very grateful for your kindness, friendship, and partnership as we forged global alliances to advance the continent’s interest around the world,” he said.  

    The 2025 Summit under the theme, “Justice for Africans and People of African Descent Through Reparations,” drew global political leaders and other dignitaries, including UN Secretary-General António Guterres, and the Prime Minister of Barbados, Mia Mottley.

    Guterres reiterated calls for reform of the international financial architecture, which is hampering the development of many African economies, beset by expensive debt repayments and high borrowing costs, which limits their capacity to invest in education, health and other essential needs.

    Prime Minister Mottley emphasized Africa’s strategic role in shaping global economic trends, particularly highlighting the continent’s control of 40% of the world’s minerals. She stressed the importance of addressing emerging challenges like artificial intelligence, urging African nations to take a proactive role in technological advancement rather than becoming “victims of technology.”

    She also underscored the urgency of removing artificial barriers between Africa and the Caribbean, calling for the elimination of transit visa requirements to boost trade and integration. Mottley echoed demands for reparatory justice, noting that both the Caribbean and Africa began their independence journey with “chronic deficits” in resources, fairness, and opportunity.

    Opening the Summit on Saturday, Ethiopian Prime Minister Dr. Abiy Ahmed urged continued unity among member countries in addressing the challenges.

    “In a world marked by rapid change and multiple challenges, we find ourselves at the crossroads of uncertainty and opportunity. This movement calls upon us to strengthen our collective resolve, embrace resilience and foster unity across Africa”, he said.

    MIL OSI Africa –

  • MIL-OSI Video: Global solidarity needed more than ever – UN Chief | Security Council Briefing | United Nations

    Source: United Nations (Video News)

    Remarks to the Security Council by António Guterres, Secretary-General of the United Nations, on practicing multilateralism, reforming and improving global governance.

    Excellencies,

    I thank Minister Wang Yi and China for convening this important discussion.

    This year marks the 80th anniversary of the United Nations.

    Born out of the ashes of the Second World War, our organization was the result of a global commitment to “save succeeding generations from the scourge of war.”

    It also signaled a commitment to an entirely new level of international cooperation grounded in international law and our founding Charter.

    To help countries move past the horrors of conflict to forge sustainable peace.

    To tackle poverty, hunger and disease.

    To assist countries in climbing the development ladder.

    To provide humanitarian support in times of conflict and disaster.

    To embed justice and fairness through international law and respect for human rights.

    And to work through this Council to push for peace through dialogue, debate, diplomacy and consensus-building.

    Eight decades later, one can draw a direct line between the creation of the United Nations and the prevention of a third world war.

    Eight decades later, the United Nations remains the essential, one-of-a-kind meeting ground to advance peace, sustainable development and human rights.

    But eight decades is a long time.

    And because we believe in the singular value and purpose of the United Nations, we must always strive to improve the institution and the way we work.

    We have the hardware for international cooperation — but the software needs an update.

    An update in representation to reflect the realities of today.

    An update in support for developing countries to redress historical injustices.

    An update to ensure countries adhere to the purposes, principles and norms that ground multilateralism in justice and fairness.

    And an update to our peace operations.

    Excellencies,

    Global solidarity and solutions are needed more than ever.

    The climate crisis is raging, inequalities are growing, and poverty is on the rise.

    As this Council knows well, peace is getting pushed further out of reach — from the Occupied Palestinian Territory to Ukraine to Sudan to the Democratic Republic of the Congo and beyond.

    Terrorism and violent extremism remain persistent scourges.

    We see a dark spirit of impunity spreading.

    The prospect of nuclear war remains — outrageously — a clear and present danger.

    And the limitless promise of emerging technologies like Artificial Intelligence is matched by limitless peril to undermine and even replace human thought, human identity and human control.
    These global challenges cry out for multilateral solutions.

    The Pact for the Future you adopted in September is aimed at strengthening global governance for the 21st century and rebuilding trust — trust in multilateralism, trust in the United Nations, and trust in this Council.

    At its heart, the Pact for the Future is a pact for peace — peace in all its dimensions.

    It puts forward concrete solutions to strengthen the machinery of peace, drawing from proposals to the New Agenda for Peace that prioritize prevention, mediation and peacebuilding.

    The Pact seeks to advance coordination with regional organizations, and ensure the full participation of women, youth and marginalized groups in peace processes.

    And it calls for strengthening the Peacebuilding Commission to mobilize political and financial support for nationally owned peacebuilding and prevention strategies.

    The Pact also includes the first multilateral agreement on nuclear disarmament in more than a decade…

    New strategies to end the use of chemical and biological weapons…

    And revitalized efforts to prevent an arms race in outer space and advance discussions on lethal autonomous weapons.

    It also calls on Member States to live up to their commitments enshrined in the UN Charter, and the principles of respect for sovereignty, territorial integrity and the political independence of states.

    It reaffirms unwavering commitment to abide by international law and prioritize the peaceful settlement of disputes through dialogue.

    It recognizes the role of the United Nations in preventive diplomacy.

    It reinforces the need to uphold all human rights — civil, political, economic, social and cultural.

    It calls for the meaningful inclusion of women and youth in all peace processes.
    And it specifically calls on this Council to ensure that peace operations are guided by clear and sequenced mandates that are realistic and achievable — with viable exit strategies and transition plans.

    But the Pact does even more for peace.

    Full remarks: https://www.un.org/sg/en/content/sg/statement/2025-02-18/secretary-generals-remarks-the-security-council-the-maintenance-of-international-peace-and-security-practicing-multilateralism-reforming-and-improving-global-governance

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

    MIL OSI Video –

  • MIL-OSI: TransUnion Appoints Tiffani Chambers Chief Operations Officer

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Feb. 19, 2025 (GLOBE NEWSWIRE) — Tiffani Chambers has joined TransUnion (NYSE: TRU) as Executive Vice President and Chief Operations Officer, effective February 19, 2025.

    TransUnion’s Global Operations team serves an important role delivering premium experiences for consumers and customers. Tiffani will oversee activities including consumer relations, customer delivery and relationship management, TransUnion’s Global Capability Center network, procurement and real estate. She will report to TransUnion President and CEO Chris Cartwright and serve on the executive leadership team.

    “Our vision is to make trust possible in global commerce, and our Operations team delivers information services and support every day that help consumers and businesses transact with confidence,” said Cartwright. “Tiffani is a proven leader with highly relevant global operations and financial services experience, and I’m confident she will be a great addition to our team as we work to drive greater innovation and service for the consumers and customers we serve.”

    Chambers joins TransUnion from Bank of America, where she most recently served as chief operating officer to the retail banking division, leading all business management, strategy growth, digital transformation and control functions for the 30,000-person division. Prior to that, she served as chief operating officer for the bank’s global banking and markets, risk, finance and infrastructure technology team. She also served as managing director of global client strategy and operations for the operations division of Goldman Sachs, and previously held leadership roles with JP Morgan Chase, Lehman Brothers and American Express. She earned an MBA from Harvard Business School and a BBA from Emory University, and she serves on the advisory board of the Center for Multicultural and Community Affairs at Mount Sinai Hospital.

    About TransUnion (NYSE: TRU)
    TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business

    Contact Dave Blumberg
    TransUnion
    E-mail david.blumberg@transunion.com
    Telephone 312-972-6646

    The MIL Network –

  • MIL-OSI: Amplify ETFs Changes Fund Name to Highlight 12% Option Income Strategy: Amplify Bloomberg U.S. Treasury 12% Premium Income ETF (TLTP) 

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO, Feb. 19, 2025 (GLOBE NEWSWIRE) — Amplify ETFs, a leading provider of innovative exchange-traded funds, emphasizes its 12% option income strategy by renaming the TLTP ETF to the Amplify Bloomberg U.S. Treasury 12% Premium Income ETF (formerly Amplify Bloomberg U.S. Treasury Target High Income ETF), effective today. The fund will continue trading under its existing CBOE ticker, TLTP.

    The name change helps investors quickly recognize the fund’s primary strategy to generate 12% annualized option premium income with a monthly scheduled distribution frequency. The fund provides convenient, efficient entry to a tailored weekly U.S. Treasury covered call option strategy via a single ticker and has the potential for additional U.S. Treasury bond income. There are no changes to the fund’s investment strategy, structure or management.

    TLTP seeks to track the performance (before fees and expenses) of the Bloomberg U.S. Treasury 20+ Year 12% Premium Covered Call 2.0 Index, which is designed to provide a targeted annualized option premium income of 12% through writing weekly covered call options. This approach seeks to generate higher levels of income by targeting 12% option premium income as well as the income from underlying U.S. Treasuries.

    For more information about the Amplify Bloomberg U.S. Treasury 12% Premium Income ETF (TLTP), please visit AmplifyETFs.com/TLTP.

    About Amplify ETFs
    Amplify ETFs, sponsored by Amplify Investments, has over $10.6 billion in assets across its suite of ETFs (as of 1/31/2025). Amplify ETFs delivers expanded investment opportunities for investors seeking growth, income, and risk-managed strategies across a range of actively managed and index-based ETFs. To learn more visit AmplifyETFs.com.

    Sales Contact:
    Amplify ETFs
    855-267-3837
    info@amplifyetfs.com    		 Media Contact:
    Gregory FCA for Amplify ETFs
    Kerry Davis
    610-228-2098
    amplifyetfs@gregoryfca.com
       

    *A covered call refers to a financial transaction in which the investor selling call options owns an equivalent amount of the underlying security.

    Carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other information can be found in the Fund’s statutory and summary prospectuses, which may be obtained at AmplifyETFs.com. Read the prospectus carefully before investing.

    Investing involves risk, including the possible loss of principal. You could lose money by investing in the Fund. Shares of any ETF are bought and sold at market price (not NAV), may trade at a discount or premium to NAV and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. There can be no assurance that the Fund’s investment objectives will be achieved. Interest Rate Risk is the risk when interest rates rise, there is a corresponding decline in bond values. Conversely, very low or negative interest rates may magnify interest rate risk. The Fund is subject to the risks associated with the Underlying Funds specifically U.S. Treasury Securities Risk. The Fund bears its proportionate share of the Underlying ETF’s expenses.

    The Fund is non-diversified and can invest a greater portion of its assets in individual securities than a diversified fund; changes in the market value of a single investment could cause greater fluctuations in share price than would occur in a diversified fund. Covered call risk is the risk that the Fund will forgo, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. The Fund will also utilize FLEX Options and is subject to the risk that the OCC will be unable or unwilling to perform its obligations under the FLEX Options contracts. The Fund currently expects to make distributions on a regular basis, a portion of which may be considered return of capital.

    Amplify Investments LLC is the Investment Adviser to the Fund, and Samsung Asset Management (New York), Inc. serves as the Investment Sub-Adviser.

    Amplify ETFs are distributed by Foreside Fund Services, LLC.

    The MIL Network –

  • MIL-OSI: Global-e Reports Fourth Quarter and Full Year 2024 Results

    Source: GlobeNewswire (MIL-OSI)

    PETAH-TIKVA, Israel, Feb. 19, 2025 (GLOBE NEWSWIRE) — Global-e Online Ltd. (Nasdaq: GLBE) the platform powering global direct-to-consumer e-commerce, today reported financial results for the fourth quarter of 2024 and full year 2024.

    “2024 was yet another record-breaking year for Global-e, and it came to a great close with a fourth quarter which was our strongest quarter ever, as we continued to execute on our strategy and further solidify Global-e’s leadership position in the global e-commerce space,” said Amir Schlachet, Founder and CEO of Global-e. “In addition, we achieved two important financial milestones during the quarter. For the first time in our journey, we crossed the 20% Adjusted EBITDA Margin mark, which was the long-term target we set for ourselves at the IPO, and we reached GAAP profitability for the first time as a public company; a testament to our relentless focus on delivering fast yet durable growth.”

    “As we head into 2025, we remain as committed as ever to continue on our growth path, deliver more cutting-edge and market-leading solutions to our merchants and seize more and more of the great opportunities that lie ahead of us in the world of global e-commerce. In 2025, we also expect to achieve three additional key financial milestones: surpass the 20% Adjusted EBITDA Margin mark on a full year basis, achieve annual GAAP profitability, and most importantly, for the first time, cross an annual run-rate of $1 billion in Revenues.”

    Q4 2024 Financial Results

    • GMV1 in the fourth quarter of 2024 was $1,713 million, an increase of 44% year over year
    • Revenue in the fourth quarter of 2024 was $262.9 million, an increase of 42% year over year, of which service fees revenue was $117.3 million and fulfillment services revenue was $145.6 million
    • Non-GAAP gross profit2 in the fourth quarter of 2024 was $120.9 million, an increase of 53% year over year. GAAP gross profit in the fourth quarter of 2024 was $118.7 million
    • Non-GAAP gross margin2 in the fourth quarter of 2024 was 46%, an increase of 330 basis points from 42.7% in the fourth quarter of 2023. GAAP gross margin in the fourth quarter of 2024 was 45.1%
    • Adjusted EBITDA3 in the fourth quarter of 2024 was $57.1 million compared to $35.2 million in the fourth quarter of 2023, an increase of 62% year over year
    • Net profit in the fourth quarter of 2024 was $1.5 million
    • Net cash provided by operating activities in the fourth quarter of 2024 was $129.3 million, while capital expenditures totaled $0.5 million, leading to free cash flow of $128.8 million

    FY 2024 Financial Results

    • GMV1 for the full year was $4,858 million, an increase of 37% year over year
    • Revenue for the full year was $752.8 million, an increase of 32% year over year, of which service fees revenue was $350.3 million and fulfillment services revenue was $402.5 million
    • Non-GAAP gross profit2 for the full year was $349.4 million, an increase of 43% year over year. GAAP gross profit for the full year was $339.4 million
    • Non-GAAP gross margin2 for the full year was 46.4%, an increase of 350 basis points from 42.9% in 2023. GAAP gross margin for the full year was 45.1%
    • Adjusted EBITDA3 for the full year was $140.8 million compared to $92.7 million in 2023, an increase of 51.8% year over year
    • Net loss for the full year was $75.5 million
    • Net cash provided by operating activities in the full year was $169.4 million, while capital expenditures totaled $2.3 million, leading to free cash flow of $167.1 million

    Recent Business Highlights

    • Throughout 2024, our existing merchant base continued to stay and grow with us, as reflected in our annual enterprise NDR rate of 119% and GDR rate of 93.5%. GDR and NDR were negatively impacted by the out of the ordinary bankruptcy of Ted Baker and by several Borderfree merchants that chose not to re-platform to the Global-e platform. NDR and GDR excluding the out of the ordinary churn for 2024 is close to 123% and 97%, respectively
    • Recently launched with Logitech, one of the world’s largest and most innovative providers of computer peripherals and input devices, gaming accessories, audio and video gear and smart home device
    • On-boarded many additional new merchants located around the globe and trading in various verticals, including:
      • North America – shapewear brand Spanx, Thursday Boots, and the web store of famous fashion designer Tom Ford
      • UK and Europe – Spanish brand Tous, Italian fashion brand Slowear, UK footwear brand Phoebe Philo, German brand IvyOak, Swiss running gear brand Compressport, famous Austrian lingerie brand Triumph, French brands ZAPA and MOLLI, and the Finish brand HURTTA
      • APAC – Japanese brands Komehyo, one of Japan’s largest retailers of second-hand goods, Kyoto-based wristwatch brand Kuoe, novelty brands Mofusand and Taito, and the tailored shirt brand Kamakura Shirts, as well as the renowned Korean cosmetics brand Depology, and Australian fashion brands Zoe Kratzmann and SECONDLEFT
    • Expanded to new lanes with existing merchants – added Romania and Croatia to the markets we operate for Adidas, went live with a new outlet site for John Smedley, and added Strellson, the third brand to go live with us out of the Swiss Holy Fashion Group
    • Shopify Managed Markets – continued joint work with Shopify to add new features and functionalities to the Managed Markets offering, aimed at making it applicable to a wider range of merchants on the Shopify platform

    Q1 2025 and Full Year Outlook

    Global-e is introducing first quarter and full year guidance as follows:

        Q12025   FY 2025
        (in millions)
    GMV(1) $1,210 – $1,250   $6,190 – $6,490
    Revenue $184.5 – $191.5   $917 – $967
    Adjusted EBITDA(3) $29.5 – $33.5   $179 – $199

    1 Gross Merchandise Value (GMV) is a key operating metric. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
    2 Non-GAAP Gross profit and Non-GAAP gross margin are non-GAAP financial measures. See “Non-GAAP Financial Measures and Key Operating Metrics” for additional information regarding this metric.
    3 Adjusted EBITDA is a non-GAAP financial measure. See “Non-GAAP Financial Measures” for additional information regarding this metric, including the reconciliations to Operating Profit (Loss), its most directly comparable GAAP financial measure. The Company is unable to provide a reconciliation of Adjusted EBITDA to Operating Profit (Loss), its most directly comparable GAAP financial measure, on a forward-looking basis without unreasonable effort because items that impact this GAAP financial measure are not within the Company’s control and/or cannot be reasonably predicted. These items may include, but are not limited to, share-based compensation expenses. Such information may have a significant, and potentially unpredictable impact on the Company’s future financial results.

    Conference Call Information

    Global-e will host a conference call at 8:00 a.m. ET on Wednesday, February 19, 2025.
    The call will be available, live, to interested parties by dialing:

    United States/Canada Toll Free:  1-800-717-1738
    International Toll: 1-646-307-1865

    A live webcast will also be available in the Investor Relations section of Global-e’s website at: https://investors.global-e.com/news-events/events-presentations

    Approximately two hours after completion of the live call, an archived version of the webcast will be available on the Investor Relations section of the Company’s web site and will remain available for approximately 30 calendar days.

    Non-GAAP Financial Measures and Key Operating Metrics

    To supplement Global-e’s financial information presented in accordance with generally accepted accounting principles in the United States of America, or GAAP, Global-e considers certain financial measures and key performance metrics that are not prepared in accordance with GAAP including:

    • Non-GAAP gross profit, which Global-e defines as gross profit adjusted for amortization of acquired intangibles. Non-GAAP gross margin is calculated as Non-GAAP gross profit divided by revenues
    • Adjusted EBITDA, which Global-e defines as operating profit (loss) adjusted for stock-based compensation expenses, depreciation and amortization, commercial agreements amortization, amortization of acquired intangibles and merger related contingent consideration.
    • Free cash flow, which Global-e defines as net cash provided by operating activities less purchase of property and equipment.

    Global-e also uses Gross Merchandise Value (GMV) as a key operating metric. Gross Merchandise Value or GMV is defined as the combined amount we collect from the shopper and the merchant for all components of a given transaction, including products, duties and taxes and shipping.

    The aforementioned key performance indicators and non-GAAP financial measures are used, in conjunction with GAAP measures, by management and our board of directors to assess our performance, including the preparation of Global-e’s annual operating budget and quarterly forecasts, for financial and operational decision-making, to evaluate the effectiveness of Global-e’s business strategies, and as a means to evaluate period-to-period comparisons. These measures are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. We believe that these non-GAAP financial measures are appropriate measures of operating performance because they remove the impact of certain items that we believe do not directly reflect our core operations, and permit investors to view performance using the same tools that we use to budget, forecast, make operating and strategic decisions, and evaluate historical performance.

    Global-e’s definition of Non-GAAP measures may differ from the definition used by other companies and therefore comparability may be limited. In addition, other companies may not publish these metrics or similar metrics. Furthermore, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations that are necessary to run our business. Thus, Non-GAAP measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with GAAP.

    For more information on the non-GAAP financial measures, please see the reconciliation tables provided below. The accompanying reconciliation tables have more details on the GAAP financial measures that are most directly comparable to non-GAAP financial measures and the related reconciliations between these financial measures.

    Cautionary Note Regarding Forward Looking Statements

    This press release contains estimates and forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. We intend such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements as contained in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). All statements contained in this press release other than statements of historical fact, including, without limitation, statements regarding our future strategy and projected revenue, GMV, Adjusted EBITDA and other future financial and operational results, growth strategy and plans and objectives of management for future operations, including, among others, expansion in new and existing markets, the launch of large enterprise merchants, and our ongoing partnership with Shopify, are forward-looking statements. As the words “may,” “might,” “will,” “could,” “would,” “should,” “expect,” “plan,” “anticipate,” “intend,” “target,” “seek,” “believe,” “estimate,” “predict,” “potential,” “continue,” “contemplate,” “possible” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, though not all forward-looking statements use these words or expressions. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Global-e believes there is a reasonable basis for its expectations and beliefs, but they are inherently uncertain. Many factors could cause actual future events to differ materially from the forward-looking statements in this announcement, including but not limited to, our rapid growth and growth rates in recent periods may not be indicative of future growth; the ability to retain merchants or the GMV generated by such merchants; the ability to retain existing, and attract new merchants; our business acquisitions and ability to effectively integrate acquired businesses; our ability to anticipate merchant needs or develop or acquire new functionality or enhance our existing platforms to meet those needs; our ability to implement and use artificial intelligence and machine learning technologies successfully; our ability to compete in our industry; our reliance on third-parties, including our ability to realize the benefits of any strategic alliances, joint ventures, or partnership arrangements and to integrate our platforms with third-party platforms; our ability to develop or maintain the functionality of our platforms, including real or perceived errors, failures, vulnerabilities, or bugs in our platforms; our history of net losses; our ability to manage our growth and manage expansion into additional markets; increased attention to ESG matters and our ability to manage such matters; our ability to accommodate increased volumes during peak seasons and events; our ability to effectively expand our marketing and sales capabilities; our expectations regarding our revenue, expenses and operations; our ability to operate internationally; our reliance on third-party services, including third-party providers of cross-docking services and third-party data centers, in our platforms and services and harm to our reputation by our merchants’ or third-party service providers’ unethical business practices; our ability to adapt to changes in mobile devices, systems, applications, or web browsers that may degrade the functionality of our platforms; our operation as a merchant of record for sales conducted using our platform; regulatory requirements and additional fees related to payment transactions through our e-commerce platforms could be costly and difficult to comply with; compliance and third-party risks related to anti-money laundering, anti-corruption, anti-bribery, regulations, economic sanctions and export control laws and import regulations and restrictions; our business’s reliance on the personal importation model; our ability to securely store personal information of merchants and shoppers; increases in shipping rates; fluctuations in the exchange rate of foreign currencies has impacted and could continue to impact our results of operations; our ability to offer high quality support; our ability to expand the number of merchants using our platforms and increase our GMV and to enhance our reputation and awareness of our platforms; our dependency on the continued use of the internet for commerce; our ability to adapt to emerging or evolving regulatory developments, changing laws, regulations, standards and technological changes related to privacy, data protection, data security and machine learning technology and generative artificial intelligence evolves; the effect of the situation in Ukraine on our business, financial condition and results of operations; our role in the fulfilment chain of the merchants, which may cause third parties to confuse us with the merchants; our ability to establish and protect intellectual property rights; and our use of open-source software which may pose particular risks to our proprietary software technologies; our dependency on our executive officers and other key employees and our ability to hire and retain skilled key personnel, including our ability to enforce non-compete agreements we enter into with our employees; litigation for a variety of claims which we may be subject to; the adoption by merchants of a direct to consumer model; our anticipated cash needs and our estimates regarding our capital requirements and our needs for additional financing; our ability to maintain our corporate culture; our ability to maintain an effective system of disclosure controls and internal control over financial reporting; our ability to accurately estimate judgments relating to our critical accounting policies; changes in tax laws or regulations to which we are subject, including the enactment of legislation implementing changes in taxation of international business activities and the adoption of other corporate tax reform policies; requirements to collect sales or other taxes relating to the use of our platforms and services in jurisdictions where we have not historically done so; global events such as war, health pandemics, climate change, macroeconomic events and the recent economic slowdown; risks relating to our ordinary shares, including our share price, the concentration of our share ownership with insiders, our status as a foreign private issuer, provisions of Israeli law and our amended and restated articles of association and actions of activist shareholders; risks related to our incorporation and location in Israel, including risks related to the ongoing war and related hostilities; and the other risks and uncertainties described in Global-e’s Annual Report on Form 20-F for the year ended December 31, 2023, filed with the SEC on March 28, 2024 and other documents filed with or furnished by Global-e from time to time with the Securities and Exchange Commission (the “SEC”). The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. These statements reflect management’s current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee that future results, levels of activity, performance and events and circumstances reflected in the forward-looking statements will be achieved or will occur. We undertake no obligation to update any forward-looking statements made in this press release to reflect events or circumstances after the date of this press release or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements.

    About Global-E Online Ltd.

    Global-e (Nasdaq: GLBE) is the world’s leading platform enabling and accelerating global, Direct-To-Consumer e-commerce. The chosen partner of over 1,000 brands and retailers across the United States, EMEA and APAC, Global-e makes selling internationally as simple as selling domestically. The company enables merchants to increase the conversion of international traffic into sales by offering online shoppers in over 200 destinations worldwide a seamless, localized shopping experience. Global-e’s end-to-end e-commerce solutions combine best-in-class localization capabilities, big-data best-practice business intelligence models, streamlined international logistics and vast global e-commerce experience, enabling international shoppers to buy seamlessly online and retailers to sell to, and from, anywhere in the world. For more information, please visit: www.global-e.com.

    Investor Contact:
    Erica Mannion or Mike Funari
    Sapphire Investor Relations, LLC
    IR@global-e.com 
    +1 617-542-6180

    Press Contact:
    Sarah Schloss
    Headline Media
    Globale@headline.media 
    +1 786-233-7684 

    Global-E Online Ltd.
    CONSOLIDATED BALANCE SHEETS
    (In thousands)    		  
        Period Ended  
        December 31,     December 31,  
        2023     2024  
              (Unaudited)  
    Assets                
    Current assets:                
    Cash and cash equivalents   $ 200,081     $ 250,773  
    Short-term deposits     96,939       187,322  
    Accounts receivable, net     27,841       41,171  
    Prepaid expenses and other current assets     63,967       84,613  
    Marketable securities     20,403       36,345  
    Funds receivable, including cash in banks     111,232       122,984  
    Total current assets     520,463       723,208  
    Property and equipment, net     10,236       10,440  
    Operating lease right-of-use assets     23,052       24,429  
    Long term deposits     3,552       3,786  
    Deferred contract acquisition costs, noncurrent     2,668       3,787  
    Other assets, noncurrent     4,078       4,527  
    Commercial agreement asset   192,721       66,527  
    Goodwill     367,566       367,566  
    Intangible assets     78,024       59,212  
    Total long-term assets     681,897       540,274  
    Total assets   $ 1,202,360     $ 1,263,482  
    Liabilities and Shareholders’ Equity                
    Current liabilities:                
    Accounts payable   $ 50,943     $ 79,559  
    Accrued expenses and other current liabilities     107,306       141,551  
    Funds payable to Customers     111,232       122,984  
    Short term operating lease liabilities     4,031       4,347  
    Total current liabilities     273,512       348,441  
    Long-term liabilities:                
    Deferred tax liabilities     6,507       –  
    Long term operating lease liabilities     19,291       20,510  
    Other long-term liabilities     1,071       1,098  
    Total liabilities   $ 300,381     $ 370,049  
                     
    Shareholders’ deficit:                
    Share capital and additional paid-in capital     1,360,250       1,425,317  
    Accumulated comprehensive income     (1,420 )     515  
    Accumulated deficit     (456,851 )     (532,399 )
    Total shareholders’ (deficit) equity     901,979       893,433  
    Total liabilities and shareholders’ equity   $ 1,202,360     $ 1,263,482  
    Global-E Online Ltd.
    CONSOLIDATED STATEMENTS OF OPERATIONS
    (In thousands, except share and per share data)    		  
        Three Months Ended   Year Ended  
        December 31,   December 31,  
        2023     2024     2023       2024  
        (Unaudited)           (Unaudited)  
    Revenue   $ 185,401     $ 262,912     $ 569,946       $ 752,764  
    Cost of revenue     109,080       144,253       336,343         413,331  
    Gross profit     76,321       118,659       233,603         339,433  
                                     
    Operating expenses:                                
    Research and development     25,169       28,284       97,568         105,487  
    Sales and marketing     58,756       70,936       217,035         250,661  
    General and administrative     15,451       14,257       56,059         51,213  
    Total operating expenses, net     99,376       113,477       370,662         407,361  
    Operating profit (loss)     (23,055 )     5,182       (137,059 )       (67,928 )
    Financial expenses (income), net     (5,010 )     6,073       (5,262 )       11,465  
    Loss before income taxes     (18,045 )     (891 )     (131,797 )       (79,393 )
    Income tax (benefit) expenses     4,055       (2,400 )     2,008         (3,845 )
    Net profit (loss) attributable to ordinary shareholders   $ (22,100 )   $ 1,509     $ (133,805 )     $ (75,548 )
    Net profit (loss) per share attributable to ordinary shareholders, basic   $ (0.13 )   $ 0.01     $ (0.81 )     $ (0.45 )
    Net profit (loss) per share attributable to ordinary shareholders, diluted   $ (0.13 )   $ 0.01     $ (0.81 )     $ (0.45 )
    Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic     165,626,904       168,419,800       164,353,909         167,323,350  
    Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted     165,626,904       175,674,929       164,353,909         167,323,350  
    Global-E Online Ltd.
    CONSOLIDATED STATEMENTS OF CASH FLOWS
    (In thousands)
        Three Months Ended     Year Ended
        December 31,     December 31,
        2023     2024     2023     2024  
        (Unaudited)             (Unaudited)  
    Operating activities                                
    Net profit (loss)   $ (22,100 )   $ 1,509     $ (133,805 )   $ (75,548 )
    Adjustments to reconcile net profit (loss) to net cash provided by operating activities:                                
    Depreciation and amortization     489       547       1,788       2,131  
    Share-based compensation expenses     12,180       9,538       44,960       39,158  
    Commercial agreement asset     37,433       37,433       150,451       148,594  
    Amortization of intangible assets     5,091       4,402       20,434       18,812  
    Unrealized loss (gain) on foreign currency     (3,011 )     3,554       (1,901 )     4,468  
    Changes in accrued interest and exchange rate on short-term deposits     72       (1,373 )     (416 )     (1,329 )
    Changes in accrued interest and exchange rate on long-term deposits     (144 )     364       (255 )     200  
    Accounts receivable     (14,390 )     15,925       (11,417 )     (13,330 )
    Prepaid expenses and other assets     61       (24,164 )     (11,736 )     (18,019 )
    Funds receivable     (9,038 )     8,726       (11,074 )     (3,205 )
    Long-term receivables     (1,497 )     51       (339 )   551  
    Funds payable to customers     40,817       2,564       33,107       11,752  
    Operating lease ROU assets     786       991       3,230       3,691  
    Deferred contract acquisition costs     (772 )     (322 )     (1,207 )     (1,382 )
    Accounts payable     18,438       37,176       (1,277 )     28,617  
    Accrued expenses and other liabilities     25,345       35,945       30,625       34,272  
    Deferred taxes     3,635       (2,592 )     120       (6,507 )
    Operating lease liabilities     99       (987 )     (3,067 )     (3,533 )
    Net cash provided by operating activities     93,494       129,287       108,222       169,393  
    Investing activities                                
    Investment in marketable securities     (851 )     (18,331 )     (3,728 )     (21,128 )
    Proceeds from marketable securities   –     2,028         671       4,988  
    Investment in short-term deposits     (43,250 )     (77,848 )     (175,237 )     (269,601 )
    Proceeds from short-term deposits     34,318       22,298       125,068       180,548  
    Purchases of long-term investments     (4 )     (307 )     (82 )     (1,459 )
    Proceeds from long-term deposits     10       24       10       24  
    Purchases of property and equipment     (926 )     (482 )     (1,741)       (2,335 )
    Net cash used in investing activities     (10,703 )     (72,618 )     (55,039 )     (108,963 )
    Financing activities                                
    Proceeds from exercise of Warrants to ordinary shares     –     3       22     5  
    Proceeds from exercise of share options     244       1,632       1,969       3,271  
    Net cash provided by financing activities     244       1,635       1,991       3,276  
    Exchange rate differences on balances of cash, cash equivalents and restricted cash     3,011       (3,554 )     1,901       (4,468 )
    Net Increase in cash, cash equivalents, and restricted cash     86,046       54,750       57,075       59,238  
    Cash and cash equivalents and restricted cash—beginning of period     182,551       273,086       211,522       268,597  
    Cash and cash equivalents and restricted cash—end of period   $ 268,597     $ 327,835     $ 268,597     $ 327,835  
    Global-E Online Ltd.
    SELECTED OTHER DATA
    (In thousands)
    		  
        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2023     2024     2023     2024  
        (Unaudited)     (Unaudited)  
    Key performance metrics            
    Gross Merchandise Value     1,189,467               1,712,903               3,557,444               4,857,970          
    Adjusted EBITDA (a)     35,178               57,102               92,735               140,767          
                                                                     
    Revenue by Category                                                                
    Service fees     89,936       49 %     117,268       45 %     262,255       46 %     350,311       47 %
    Fulfillment services     95,465       51 %     145,644       55 %     307,692       54 %     402,453       53 %
    Total revenue   $ 185,401       100 %   $ 262,912       100 %   $ 569,946       100 %   $ 752,764       100 %
                                                                     
    Revenue by merchant outbound region                                                                
    United States     94,887       51 %     146,250       56 %     285,619       50 %     399,596       53 %
    United Kingdom     54,962       30 %     55,807       21 %     173,584       30 %     182,904       24 %
    European Union     29,421       16 %     44,469       17 %     92,566       16 %     125,547       17 %
    Israel     479       0 %     1,671       1 %     1,806       0 %     2,746       0 %
    Other   5,652     3 %     14,715       5 %   16,371     3 %     41,971       6 %
    Total revenue   $ 185,401       100 %   $ 262,912       100 %   $ 569,946       100 %   $ 752,764       100 %

    (a) See reconciliation to adjusted EBITDA table

    Global-E Online Ltd.
    RECONCILIATION TO Non-GAAP GROSS PROFIT
    (In thousands)    		  
        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2023     2024     2023     2024  
      (Unaudited)
    Gross Profit     76,321       118,659       233,603       339,433  
                                     
    Amortization of acquired intangibles included in cost of revenue     2,796       2,198       11,183       9,994  
    Non-GAAP gross profit     79,117       120,857       244,786       349,427  
    Global-E Online Ltd.
    RECONCILIATION TO ADJUSTED EBITDA
    (In thousands)    		  
        Three Months Ended     Year Ended  
        December 31,     December 31,  
        2023     2024     2023     2024    
        (Unaudited)  
    Operating profit (loss)     (23,055 )     5,182       (137,059 )     (67,928 )  
    (1) Stock-based compensation:                                
    Cost of revenue     186       275       639       929    
    Research and development     6,962       4,153       26,266       17,291    
    Selling and marketing     1,238       1,528       4,259       5,836    
    General and administrative     3,794       3,582       13,796       15,102    
    Total stock-based compensation     12,180       9,538       44,960       39,158    
                                     
    (2) Depreciation and amortization     489       547       1,788       2,131    
                                     
    (3) Commercial agreement asset amortization   37,433       37,433     150,451       148,594    
                                 
    (4) Amortization of acquired intangibles   5,091       4,402     20,434       18,812    
                                 
    (5) Merger related contingent consideration   3,040       –     12,161       –    
                                 
    Adjusted EBITDA     35,178       57,102       92,735       140,767    
    Global-E Online Ltd.
    RECONCILIATION TO FREE CASH FLOW
    (In thousands)
        Three Months Ended   Year Ended
        December 31,   December 31,
        2023     2024     2023     2024  
      (Unaudited)
    Net cash provided by operating activities     93,434       129,287       108,222       169,393  
    Less:                          
    Purchase of property and equipment     (926 )     (482 )     (1,741 )     (2,335 )
    Free cash flow     92,508       128,805       106,481       167,058  

    The MIL Network –

  • MIL-OSI United Kingdom: Four-year ban for director of Sussex nuisance cold-calls firm 

    Source: United Kingdom – Executive Government & Departments

    The company made almost a million unsolicited cold-calls, resulting in people complaining to the Information Commissioner’s Office

    • Callum Jones was the director of a company which harassed people with nuisance cold-calls in 2019 and 2020 
    • Colourcoat Ltd, based on the south coast, made almost a million calls trying to sell home improvements within an eight-month period 
    • Jones has now been disqualified as a company director following investigations by the Insolvency Service 

    The boss of a home improvement company which made more than 900,000 cold-calls has been banned as a director for four years. 

    Callum Jones was the sole director of Sussex-based Colourcoat Ltd, which specialised in roof cleaning, wall coating and insulation services. 

    Colourcoat made 969,273 unsolicited marketing calls which connected between August 2019 and April 2020, with almost half to people who had opted out of receiving such calls. 

    The company also used false names and made repeated calls which were described by some customers as being aggressive and abusive. 

    Colourcoat was fined £130,000 by the Information Commissioner’s Office (ICO) in 2021 but went into liquidation without paying the fine in full. 

    Jones, 39, of Oban Road, St Leonards-on-Sea, has now been disqualified as a company director following investigations by the Insolvency Service. 

    Victoria Edgar, Chief Investigator at the Insolvency Service, said: 

    Callum Jones allowed his company to plague households over an eight-month period, making hundreds of thousands of nuisance cold-calls. 

    Businesses employing such unscrupulous tactics can expect enforcement action to be taken against them and Jones’s director ban now means he cannot run or manage any company for the next four years.

    A total of 452,811 of the nuisance calls were made to people who had opted out of receiving such calls by registering with the Telephone Preference Service. 

    Colourcoat also used various fake company names including “Homes Advice Bureau”, “EcoSolve UK” and “Citizens Advice”. 

    Twenty-four complaints about the company were made to the Telephone Preference Service with a further 10 directly to the ICO. 

    Andy Curry, Director of Enforcement and Investigations at the ICO, said:  

    We welcome the decision to disqualify Callum Jones as the director of Colourcoat Ltd.  

    Nobody should be made to feel uncomfortable after simply answering the phone, and our investigation found that this company had no regard for the law, or the people they were illegally calling.  

    Our Financial Recovery Unit works closely with the Insolvency Service to bring companies and directors to account. By disrupting the non-compliant activities of directors such as Callum Jones, we can help ensure they can’t easily resurface under a different name and continue to cause further harm to people.

    The ICO issued an enforcement notice to Colourcoat in June 2021 for breaching regulations 21 and 24 of the Privacy and Electronic Communications Regulations 2003 relating to the use of calls for direct marketing purposes. 

    Colourcoat went into liquidation in June 2023, having only paid just more than £74,000 of its £130,000 fine. 

    The Secretary of State for Business and Trade accepted a disqualification undertaking from Jones, and his ban started on Monday 3 February. 

    The undertaking prevents him from being involved in the promotion, formation or management of a company, without the permission of the court.  

    Further information

    Updates to this page

    Published 19 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI: Hyperscale Data Subsidiary Reaches Agreement in Principle with Key Utility to Expand Michigan Data Center to 300 Megawatts, which Would Allow the Company to Advance its AI Infrastructure Growth

    Source: GlobeNewswire (MIL-OSI)

    LAS VEGAS, Feb. 19, 2025 (GLOBE NEWSWIRE) — Hyperscale Data, Inc. (NYSE American: GPUS), a diversified holding company (“Hyperscale Data” or the “Company”), today announced that its indirect, wholly owned subsidiary Alliance Cloud Services, LLC (“ACS”) has reached an agreement in principle with the local utility expected to energize ACS’ Michigan data center (the “Data Center”), enabling ACS to increase its power capacity from approximately 30 megawatts (“MW”) to 300 MW. The completion of the power upgrade is anticipated to take 44 months from execution of a formal Letter of Authorization (the “LOA”) between ACS and the utility, which is currently being negotiated.

    The expansion of the Data Center to 300 MW will be a critical long-term milestone, which would enable ACS to increase its expansion efforts and further support the rapidly growing demand for high-performance computing (“HPC”) services powering artificial intelligence (“AI”) infrastructure. Hyperscale Data is simultaneously proceeding with the transition of the Data Center’s existing power capacity of 30MW from that of self-mining of Bitcoin to HPC services. As a part of negotiating the LOA, Hyperscale Data anticipates discussing potential approaches that could provide incremental power while the full buildout project is underway. Hyperscale Data is currently in the process of deploying the network, electrical and cooling systems for its first HPC environment. As Hyperscale Data moves forward in the coming months with both its short-term transition to HPC services and its power upgrade expansion process it will provide ongoing updates to its stockholders and the public as developments warrant.

    Milton “Todd” Ault III, Executive Chairman of Hyperscale Data, commented, “We are pleased to have finally reached an agreement in principle with the local utility and look forward to executing a definitive agreement with it. This would be a game-changer for our business and the future of our AI infrastructure. Scaling our Data Center to 300 MW would significantly enhance our ability to meet surging demand from AI and high-performance computing customers. It also marks a major step forward in our transformation into a pure-play data center operator. We are committed to building a world-class facility that powers the next generation of technology, and this anticipated expansion is a significant step forward to meeting that objective.”

    The completion of the power upgrade is subject to a number of risks and uncertainties, one or more which could result in the project being terminated, including, but not limited to: failure to agree upon terms and execute a definitive agreement; the inability of ACS or the Company to raise sufficient funds to pay for the power upgrades; failure to obtain regulatory consents and approvals; the inability to obtain sufficient easements, rights-of-way and land rights necessary to the work to be performed, and other presently unforeseen events or conditions.

    Additional information regarding the material terms of the LOA will be included in a Current Report on Form 8-K to be filed with the United States Securities and Exchange Commission (“SEC”).

    This press release does not constitute an offer to sell or the solicitation of an offer to buy the securities, nor will there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.

    For more information on Hyperscale Data and its subsidiaries, Hyperscale Data recommends that stockholders, investors and any other interested parties read Hyperscale Data’s public filings and press releases available under the Investor Relations section at hyperscaledata.com or available at www.sec.gov.

    About Hyperscale Data, Inc.

    Hyperscale Data is transitioning from a diversified holding company pursuing growth by acquiring undervalued businesses and disruptive technologies with a global impact to becoming solely an owner and operator of data centers to support high performance computing services. Through its wholly and majority-owned subsidiaries and strategic investments, Hyperscale Data owns and operates a data center at which it mines digital assets and offers colocation and hosting services for the emerging artificial intelligence ecosystems and other industries. It also provides, through its wholly owned subsidiary, Ault Capital Group, Inc., mission-critical products that support a diverse range of industries, including an artificial intelligence software platform, social gaming platform, equipment rental services, defense/aerospace, industrial, automotive, medical/biopharma and hotel operations. In addition, Hyperscale Data is actively engaged in private credit and structured finance through a licensed lending subsidiary. Hyperscale Data’s headquarters are located at 11411 Southern Highlands Parkway, Suite 240, Las Vegas, NV 89141.

    Forward-Looking Statements

    This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements generally include statements that are predictive in nature and depend upon or refer to future events or conditions, and include words such as “believes,” “plans,” “anticipates,” “projects,” “estimates,” “expects,” “intends,” “strategy,” “future,” “opportunity,” “may,” “will,” “should,” “could,” “potential,” or similar expressions. Statements that are not historical facts are forward-looking statements. Forward-looking statements are based on current beliefs and assumptions that are subject to risks and uncertainties.

    Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update any of them publicly in light of new information or future events. Actual results could differ materially from those contained in any forward-looking statement as a result of various factors. More information, including potential risk factors, that could affect the Company’s business and financial results are included in the Company’s filings with the U.S. Securities and Exchange Commission, including, but not limited to, the Company’s Forms 10-K, 10-Q and 8-K. All filings are available at www.sec.gov and on the Company’s website at www.hyperscaledata.com.

    Hyperscale Data Investor Contact:
    IR@hyperscaledata.com or 1-888-753-2235

    The MIL Network –

  • MIL-OSI Europe: Federal Council adopts dispatch on extending international automatic exchange of information in tax matters

    Source: Switzerland – Department of Finance

    During its meeting on 19 February 2025, the Federal Council submitted to Parliament the dispatch on extending the international automatic exchange of information in tax matters (AEOI). Set to apply from 1 January 2026, the extension concerns the new AEOI concerning cryptoassets and the amendment of the standard for the automatic exchange of financial account information.

    MIL OSI Europe News –

  • MIL-OSI United Kingdom: Regulator investigates charity over financial controls

    Source: United Kingdom – Executive Government & Departments

    The Charity Commission has opened a statutory inquiry to examine ongoing regulatory concerns regarding the trustees’ management and administration of Zlotchiv (charity register number 1181876).

    The charity, which is a charitable incorporated organisation, awards grants for the advancement of Jewish faith and education as well as for the relief of those in need.  

    Zlotchiv’s trustees have failed to meaningfully engage and cooperate with the Commission about regulatory concerns, which has resulted in the regulator escalating a compliance case to a statutory inquiry.  

    The Commission’s concerns are about irregularities in the charity’s financial management, including a series of bounced cheques from the charity’s bank account alongside payments, which appear to be related party payments, that were not disclosed by the charity in its annual returns.  

    Trustees are expected to act in the best interests of the charity and properly manage any conflicts of interest between the charity and other parties. They must also provide accurate information annually to the Commission, which in this case includes a trustees’ annual report, accounts and external scrutiny report.  

    The inquiry will examine if the trustees are complying with their legal duties in respect of the administration, governance and management of the charity, with particular regard to:  

    • the charity’s financial management, including the charity’s viability, the extent of any related party transactions and unauthorised trustee personal benefit  

    • the trustees’ compliance with the charity’s governing document 

    • the extent to which any failings or weaknesses identified in the administration of the charity are a result of misconduct and/or mismanagement by the trustees

    The scope of the inquiry may be extended if additional regulatory issues emerge during the Commission’s investigation. 

    ENDS 

    Notes to editors 

    1. The Charity Commission is the independent, non-ministerial government department that registers and regulates charities in England and Wales. Its ambition is to be an expert regulator that is fair, balanced, and independent so that charity can thrive. This ambition will help to create and sustain an environment where charities further build public trust and ultimately fulfil their essential role in enhancing lives and strengthening society. Find out more: About us – The Charity Commission – GOV.UK

    2. On 6 January 2025, the Charity Commission opened a statutory inquiry into the charity under section 46 of the Charities Act 2011 as a result of its regulatory concerns that there is or has been misconduct and/or mismanagement in the administration of the charity. 

    3. A statutory inquiry is a legal power enabling the Commission to formally investigate matters of regulatory concern within a charity and to use protective powers for the benefit of the charity and its beneficiaries, assets, or reputation. 

    4. An inquiry will investigate and establish the facts of the case so that the Commission can determine the extent of any misconduct and/or mismanagement; the extent of the risk to the charity, its work, property, beneficiaries, employees or volunteers; and decide what action is needed to resolve the concerns.

    Press office

    Email pressenquiries@charitycommission.gov.uk

    Out of hours press office contact number: 07785 748787

    Updates to this page

    Published 19 February 2025

    MIL OSI United Kingdom –

  • MIL-OSI: YieldMax™ ETFs Announces Distributions on CRSH (75.93%), TSLY (62.77%), YBIT (60.33%), YMAX (56.92%), YMAG (39.10%) and Others

    Source: GlobeNewswire (MIL-OSI)

    CHICAGO and MILWAUKEE and NEW YORK, Feb. 19, 2025 (GLOBE NEWSWIRE) — YieldMax™ today announced distributions for the YieldMax™ Weekly Payers and Group A ETFs listed in the table below.

    ETF Ticker1 ETF Name Distribution Frequency Distribution per share Distribution Rate2,4 30-Day
    SEC Yield3    		 ROC5 Ex-Date & Record Date Payment Date
    QDTY* YieldMax™ Nasdaq 100 0DTE Covered Call ETF Weekly – – – – – –
    SDTY YieldMax™ S&P 500 0DTE Covered Call ETF Weekly $0.2221 – – 100.00% 2/20/25 2/21/25
    GPTY YieldMax™ AI & Tech Portfolio Option Income ETF Weekly $0.3258 – – 100.00% 2/20/25 2/21/25
    LFGY YieldMax™ Crypto Industry
    & Tech Portfolio Option Income ETF    		 Weekly $0.5739 – – 58.86% 2/20/25 2/21/25
    YMAX YieldMax™ Universe
    Fund of Option Income ETFs    		 Weekly $0.1852 56.92% 77.11% 72.51% 2/20/25 2/21/25
    YMAG YieldMax™ Magnificent 7
    Fund of Option Income ETFs    		 Weekly $0.1369 39.10% 56.75% 39.02% 2/20/25 2/21/25
    TSLY YieldMax™ TSLA Option Income Strategy ETF Every 4 weeks $0.5793 62.77% 3.18% 93.03% 2/20/25 2/21/25
    CRSH YieldMax™ Short TSLA Option Income Strategy ETF Every 4 weeks $0.3810 75.93% 4.07% 12.68% 2/20/25 2/21/25
    GOOY YieldMax™ GOOGL Option Income Strategy ETF Every 4 weeks $0.3877 35.28% 3.33% 0.00% 2/20/25 2/21/25
    YBIT YieldMax™ Bitcoin Option Income Strategy ETF Every 4 weeks $0.5506 60.33% 1.36% 0.00% 2/20/25 2/21/25
    OARK YieldMax™ Innovation Option Income Strategy ETF Every 4 weeks $0.4269 50.34% 2.58% 93.84% 2/20/25 2/21/25
    XOMO YieldMax™ XOM Option Income Strategy ETF Every 4 weeks $0.2541 22.58% 3.58% 0.00% 2/20/25 2/21/25
    SNOY YieldMax™ SNOW Option Income Strategy ETF Every 4 weeks $0.9210 58.84% 2.58% 89.86% 2/20/25 2/21/25
    TSMY YieldMax™ TSM Option Income Strategy ETF Every 4 weeks $0.6019 42.89% 3.12% 47.33% 2/20/25 2/21/25
    FEAT YieldMax™ Dorsey Wright Featured 5 Income ETF Every 4 weeks $1.9096 53.80% 102.37% 0.00% 2/20/25 2/21/25
    FIVY YieldMax™ Dorsey Wright Hybrid 5 Income ETF Every 4 weeks $1.1203 31.12% 55.88% 0.00% 2/20/25 2/21/25
    Weekly Payers & Group B ETFs scheduled for next week: QDTY SDTY GPTY LFGY YMAX YMAG NVDY DIPS FBY GDXY BABO JPMO MRNY PLTY MARO


    Performance data quoted represents past performance and is no guarantee of future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling     (833) 378-0717.

    Note: DIPS, FIAT, CRSH and YQQQ are hereinafter referred to as the “Short ETFs”.

    Distributions are not guaranteed. The Distribution Rate and 30-Day SEC Yield are not indicative of future distributions, if any, on the ETFs. In particular, future distributions on any ETF may differ significantly from its Distribution Rate or 30-Day SEC Yield. You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from period to period and may be zero. Accordingly, the Distribution Rate and 30-Day SEC Yield will change over time, and such change may be significant.

    Investors in the Funds will not have rights to receive dividends or other distributions with respect to the underlying reference asset(s).

    *The inception date for QDTY is February 12, 2025.

    1All YieldMax™ ETFs shown in the table above (except YMAX, YMAG, FEAT, FIVY and ULTY) have a gross expense ratio of 0.99%. YMAX, YMAG and FEAT have a Management Fee of 0.29% and Acquired Fund Fees and Expenses of 0.99% for a gross expense ratio of 1.28%. FIVY has a Management Fee of 0.29% and Acquired Fund Fees and Expenses of 0.59% for a gross expense ratio of 0.88%. “Acquired Fund Fees and Expenses” are indirect fees and expenses that the Fund incurs from investing in the shares of other investment companies, namely other YieldMax™ ETFs. ULTY has a gross expense ratio of 1.24% but the investment adviser has agreed to a 0.10% fee waiver through at least February 28, 2025.

    2The Distribution Rate shown is as of close on February 18, 2025. The Distribution Rate is the annual distribution rate an investor would receive if the most recent distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by annualizing an ETF’s Distribution per Share and dividing such annualized amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions may also include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease an ETF’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. These Distribution Rates may be caused by unusually favorable market conditions and may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this performance may be repeated in the future.

    3 The 30-Day SEC Yield represents net investment income, which excludes option income, earned by such ETF over the 30-Day period ended January 31, 2025, expressed as an annual percentage rate based on such ETF’s share price at the end of the 30-Day period.

    4 Each ETF’s strategy (except those of the Short ETFs) will cap potential gains if its reference asset’s shares increase in value, yet subjects an investor to all potential losses if the reference asset’s shares decrease in value. Such potential losses may not be offset by income received by the ETF. Each Short ETF’s strategy will cap potential gains if its reference asset decreases in value, yet subjects an investor to all potential losses if the reference asset increases in value. Such potential losses may not be offset by income received by the ETF.

    5ROC refers to Return of Capital. The ROC percentage is the portion of the distribution that represents an investor’s original investment.

    Each Fund has a limited operating history and while each Fund’s objective is to provide current income, there is no guarantee the Fund will make a distribution. Distributions are likely to vary greatly in amount.

    Standardized Performance

    For YMAX, click here. For YMAG, click here. For TSLY, click here. For OARK, click here. For APLY, click here. For NVDY, click here. For AMZY, click here. For FBY, click here. For GOOY, click here. For NFLY, click here. For CONY, click here. For MSFO, click here. For DISO, click here. For XOMO, click here. For JPMO, click here. For AMDY, click here. For PYPY, click here. For SQY, click here. For MRNY, click here. For AIYY, click here. For MSTY, click here. For ULTY, click here. For YBIT, click here. For CRSH, click here. For GDXY, click here. For SNOY, click here. For ABNY, click here. For FIAT, click here. For DIPS, click here. For BABO, click here. For YQQQ, click here. For TSMY, click here. For SMCY, click here. For PLTY, click here. For BIGY, click here. For SOXY, click here. For MARO, click here. For FEAT, click here. For FIVY, click here. For LFGY, click here. For GPTY, click here. For CVNY, click here. For SDTY, click here. For QDTY, click here.

    Important Information

    This material must be preceded or accompanied by the prospectus. For all prospectuses, click here.

    Contact Gavin Filmore at gfilmore@tidalfg.com for more information.

    Tidal Financial Group is the adviser for all YieldMax™ ETFs.

    THE FUND, TRUST, AND ADVISER ARE NOT AFFILIATED WITH ANY UNDERLYING REFERENCE ASSET.

    Risk Disclosures (applicable to all YieldMax ETFs referenced above, except the Short ETFs)

    YMAX, YMAG, FEAT and FIVY generally invest in other YieldMax™ ETFs. As such, these two Funds are subject to the risks listed in this section, which apply to all the YieldMax™ ETFs they may hold from time to time.

    Investing involves risk. Principal loss is possible.

    Call Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s call writing strategy will impact the extent that the Fund participates in the positive price returns of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold call options and over longer periods.

    Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

    Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

    Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying instrument, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

    Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given period. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

    High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings. A high portfolio turnover rate increases transaction costs, which may increase the Fund’s expenses.

    Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

    Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

    New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

    Price Participation Risk. The Fund employs an investment strategy that includes the sale of call option contracts, which limits the degree to which the Fund will participate in increases in value experienced by the underlying reference asset over the Call Period.

    Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, which focuses on an individual security (ARKK, TSLA, AAPL, NVDA, AMZN, META, GOOGL, NFLX, COIN, MSFT, DIS, XOM, JPM, AMD, PYPL, SQ, MRNA, AI, MSTR, Bitcoin ETP, GDX®, SNOW, ABNB, BABA, TSM, SMCI, PLTR, MARA, CVNA), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

    Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

    Indirect Investment Risk. The Index is not affiliated with the Trust, the Fund, the Adviser, or their respective affiliates and is not involved with this offering in any way.

    Risk Disclosures (applicable only to GPTY)

    Artificial Intelligence Risk. Issuers engaged in artificial intelligence typically have high research and capital expenditures and, as a result, their profitability can vary widely, if they are profitable at all. The space in which they are engaged is highly competitive and issuers’ products and services may become obsolete very quickly. These companies are heavily dependent on intellectual property rights and may be adversely affected by loss or impairment of those rights. The issuers are also subject to legal, regulatory and political changes that may have a large impact on their profitability. A failure in an issuer’s product or even questions about the safety of the product could be devastating to the issuer, especially if it is the marquee product of the issuer. It can be difficult to accurately capture what qualifies as an artificial intelligence company.

    Technology Sector Risk. The Fund will invest substantially in companies in the information technology sector, and therefore the performance of the Fund could be negatively impacted by events affecting this sector. Market or economic factors impacting technology companies and companies that rely heavily on technological advances could have a significant effect on the value of the Fund’s investments. The value of stocks of information technology companies and companies that rely heavily on technology is particularly vulnerable to rapid changes in technology product cycles, rapid product obsolescence, government regulation and competition, both domestically and internationally, including competition from foreign competitors with lower production costs. Stocks of information technology companies and companies that rely heavily on technology, especially those of smaller, less-seasoned companies, tend to be more volatile than the overall market. Information technology companies are heavily dependent on patent and intellectual property rights, the loss or impairment of which may adversely affect profitability.

    Risk Disclosure (applicable only to MARO)

    Digital Assets Risk: The Fund does not invest directly in Bitcoin or any other digital assets. The Fund does not invest directly in derivatives that track the performance of Bitcoin or any other digital assets. The Fund does not invest in or seek direct exposure to the current “spot” or cash price of Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than the Fund. Digital assets like Bitcoin, designed as mediums of exchange, are still an emerging asset class. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility.

    Risk Disclosures (applicable only to BABO and TSMY)

    Currency Risk: Indirect exposure to foreign currencies subjects the Fund to the risk that currencies will decline in value relative to the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short periods of time for a number of reasons, including changes in interest rates and the imposition of currency controls or other political developments in the U.S. or abroad.

    Depositary Receipts Risk: The securities underlying BABO and TSMY are American Depositary Receipts (“ADRs”). Investment in ADRs may be less liquid than the underlying shares in their primary trading market.

    Foreign Market and Trading Risk: The trading markets for many foreign securities are not as active as U.S. markets and may have less governmental regulation and oversight.

    Foreign Securities Risk: Investments in securities of non-U.S. issuers involve certain risks that may not be present with investments in securities of U.S. issuers, such as risk of loss due to foreign currency fluctuations or to political or economic instability, as well as varying regulatory requirements applicable to investments in non-U.S. issuers. There may be less information publicly available about a non-U.S. issuer than a U.S. issuer. Non-U.S. issuers may also be subject to different regulatory, accounting, auditing, financial reporting and investor protection standards than U.S. issuers.

    Risk Disclosures (applicable only to GDXY)

    Risk of Investing in Foreign Securities. The Fund is exposed indirectly to the securities of foreign issuers selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies. Investments in the securities of foreign issuers involve risks beyond those associated with investments in U.S. securities.

    Risk of Investing in Gold and Silver Mining Companies. The Fund is exposed indirectly to gold and silver mining companies selected by GDX®’s investment adviser, which subjects the Fund to the risks associated with such companies.

    The Fund invests in options contracts based on the value of the VanEck Gold Miners ETF (GDX®), which subjects the Fund to some of the same risks as if it owned GDX®, as well as the risks associated with Canadian, Australian and Emerging Market Issuers, and Small-and Medium-Capitalization companies.

    Risk Disclosures (applicable only to YBIT)

    YBIT does not invest directly in Bitcoin or any other digital assets. YBIT does not invest directly in derivatives that track the performance of Bitcoin or any other digital assets. YBIT does not invest in or seek direct exposure to the current “spot” or cash price of Bitcoin. Investors seeking direct exposure to the price of Bitcoin should consider an investment other than YBIT.

    Bitcoin Investment Risk: The Fund’s indirect investment in Bitcoin, through holdings in one or more Underlying ETPs, exposes it to the unique risks of this emerging innovation. Bitcoin’s price is highly volatile, and its market is influenced by the changing Bitcoin network, fluctuating acceptance levels, and unpredictable usage trends.

    Digital Assets Risk: Digital assets like Bitcoin, designed as mediums of exchange, are still an emerging asset class. They operate independently of any central authority or government backing and are subject to regulatory changes and extreme price volatility. Potentially No 1940 Act Protections. As of the date of this Prospectus, there is only a single eligible Underlying ETP, and it is an investment company subject to the 1940 Act.

    Bitcoin ETP Risk: The Fund invests in options contracts that are based on the value of the Bitcoin ETP. This subjects the Fund to certain of the same risks as if it owned shares of the Bitcoin ETP, even though it does not. Bitcoin ETPs are subject, but not limited, to significant risk and heightened volatility. An investor in a Bitcoin ETP may lose their entire investment. Bitcoin ETPs are not suitable for all investors. In addition, not all Bitcoin ETPs are registered under the Investment Company Act of 1940. Those Bitcoin ETPs that are not registered under such statute are therefore not subject to the same regulations as exchange traded products that are so registered.

    Risk Disclosures (applicable only to the Short ETFs)

    Investing involves risk. Principal loss is possible.

    Price Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the value of the underlying reference asset. This strategy subjects the Fund to certain of the same risks as if it shorted the underlying reference asset, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the value of the underlying reference asset, the Fund is subject to the risk that the value of the underlying reference asset increases. If the value of the underlying reference asset increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses.

    Put Writing Strategy Risk. The path dependency (i.e., the continued use) of the Fund’s put writing (selling) strategy will impact the extent that the Fund participates in decreases in the value of the underlying reference asset and, in turn, the Fund’s returns, both during the term of the sold put options and over longer periods.

    Purchased OTM Call Options Risk. The Fund’s strategy is subject to potential losses if the underlying reference asset increases in value, which may not be offset by the purchase of out-of-the-money (OTM) call options. The Fund purchases OTM calls to seek to manage (cap) the Fund’s potential losses from the Fund’s short exposure to the underlying reference asset if it appreciates significantly in value. However, the OTM call options will cap the Fund’s losses only to the extent that the value of the underlying reference asset increases to a level that is at or above the strike level of the purchased OTM call options. Any increase in the value of the underlying reference asset to a level that is below the strike level of the purchased OTM call options will result in a corresponding loss for the Fund. For example, if the OTM call options have a strike level that is approximately 100% above the then-current value of the underlying reference asset at the time of the call option purchase, and the value of the underlying reference asset increases by at least 100% during the term of the purchased OTM call options, the Fund will lose all its value. Since the Fund bears the costs of purchasing the OTM calls, such costs will decrease the Fund’s value and/or any income otherwise generated by the Fund’s investment strategy.

    Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”). In a transaction involving cleared derivatives, the Fund’s counterparty is a clearing house rather than a bank or broker. Since the Fund is not a member of clearing houses and only members of a clearing house (“clearing members”) can participate directly in the clearing house, the Fund will hold cleared derivatives through accounts at clearing members.

    Derivatives Risk. Derivatives are financial instruments that derive value from the underlying reference asset or assets, such as stocks, bonds, or funds (including ETFs), interest rates or indexes. The Fund’s investments in derivatives may pose risks in addition to, and greater than, those associated with directly investing in securities or other ordinary investments, including risk related to the market, imperfect correlation with underlying investments or the Fund’s other portfolio holdings, higher price volatility, lack of availability, counterparty risk, liquidity, valuation and legal restrictions.

    Options Contracts. The use of options contracts involves investment strategies and risks different from those associated with ordinary portfolio securities transactions. The prices of options are volatile and are influenced by, among other things, actual and anticipated changes in the value of the underlying reference asset, including the anticipated volatility, which are affected by fiscal and monetary policies and by national and international political, changes in the actual or implied volatility or the reference asset, the time remaining until the expiration of the option contract and economic events.

    Distribution Risk. As part of the Fund’s investment objective, the Fund seeks to provide current income. There is no assurance that the Fund will make a distribution in any given period. If the Fund does make distributions, the amounts of such distributions will likely vary greatly from one distribution to the next.

    High Portfolio Turnover Risk. The Fund may actively and frequently trade all or a significant portion of the Fund’s holdings.

    Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil.

    Non-Diversification Risk. Because the Fund is “non-diversified,” it may invest a greater percentage of its assets in the securities of a single issuer or a smaller number of issuers than if it was a diversified fund.

    New Fund Risk. The Fund is a recently organized management investment company with no operating history. As a result, prospective investors do not have a track record or history on which to base their investment decisions.

    Price Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will participate in decreases in value experienced by the underlying reference asset over the Put Period.

    Single Issuer Risk. Issuer-specific attributes may cause an investment in the Fund to be more volatile than a traditional pooled investment which diversifies risk or the market generally. The value of the Fund, for any Fund that focuses on an individual security (e.g., TSLA, COIN, NVDA), may be more volatile than a traditional pooled investment or the market as a whole and may perform differently from the value of a traditional pooled investment or the market as a whole.

    Inflation Risk. Inflation risk is the risk that the value of assets or income from investments will be less in the future as inflation decreases the value of money. As inflation increases, the present value of the Fund’s assets and distributions, if any, may decline.

    Risk Disclosures (applicable only to YQQQ)

    Index Overview. The Nasdaq 100 Index is a benchmark index that includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, based on market capitalization.

    Index Level Appreciation Risk. As part of the Fund’s synthetic covered put strategy, the Fund purchases and sells call and put option contracts that are based on the Index level. This strategy subjects the Fund to certain of the same risks as if it shorted the Index, even though it does not. By virtue of the Fund’s indirect inverse exposure to changes in the Index level, the Fund is subject to the risk that the Index level increases. If the Index level increases, the Fund will likely lose value and, as a result, the Fund may suffer significant losses. The Fund may also be subject to the following risks: innovation and technological advancement; strong market presence of Index constituent companies; adaptability to global market trends; and resilience and recovery potential.

    Index Level Participation Risk. The Fund employs an investment strategy that includes the sale of put option contracts, which limits the degree to which the Fund will benefit from decreases in the Index level experienced over the Put Period. This means that if the Index level experiences a decrease in value below the strike level of the sold put options during a Put Period, the Fund will likely not experience that increase to the same extent and any Fund gains may significantly differ from the level of the Index losses over the Put Period. Additionally, because the Fund is limited in the degree to which it will participate in decreases in value experienced by the Index level over each Put Period, but has significant negative exposure to any increases in value experienced by the Index level over the Put Period, the NAV of the Fund may decrease over any given period. The Fund’s NAV is dependent on the value of each options portfolio, which is based principally upon the inverse of the performance of the Index level. The Fund’s ability to benefit from the Index level decreases will depend on prevailing market conditions, especially market volatility, at the time the Fund enters into the sold put option contracts and will vary from Put Period to Put Period. The value of the options contracts is affected by changes in the value and dividend rates of component companies that comprise the Index, changes in interest rates, changes in the actual or perceived volatility of the Index and the remaining time to the options’ expiration, as well as trading conditions in the options market. As the Index level changes and time moves towards the expiration of each Put Period, the value of the options contracts, and therefore the Fund’s NAV, will change. However, it is not expected for the Fund’s NAV to directly inversely correlate on a day-to-day basis with the returns of the Index level. The amount of time remaining until the options contract’s expiration date affects the impact that the value of the options contracts has on the Fund’s NAV, which may not be in full effect until the expiration date of the Fund’s options contracts. Therefore, while changes in the Index level will result in changes to the Fund’s NAV, the Fund generally anticipates that the rate of change in the Fund’s NAV will be different than the inverse of the changes experienced by the Index level.

    YieldMax™ ETFs are distributed by Foreside Fund Services, LLC. Foreside is not affiliated with Tidal Financial Group, YieldMax™ ETFs.

    © 2025 YieldMax™ ETFs

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