Category: Europe

  • MIL-OSI USA: Senator Reverend Warnock on Voting Against Hegseth Nomination to Lead the Department of Defense

    US Senate News:

    Source: United States Senator Reverend Raphael Warnock – Georgia

    Washington D.C. – Today, U.S. Senator Reverend Raphael Warnock (D-GA) released the following statement on his vote against the nomination of Pete Hegseth to lead the Department of Defense. Hegseth was confirmed to the position in a vote of XX-XX.

    “As a voice for Georgia’s nearly 100,000 active duty servicemembers and reservists, and as the son of a veteran, I understand the tremendous sacrifice our servicemembers and their families make to protect and serve our nation. Since coming to the Senate, I’ve always prioritized military readiness and protecting the safety of our men and women in uniform. That is why I voted against Pete Hegseth’s nomination to lead the Department of Defense.

    “I have prayed with Georgians before they left for deployment, welcomed them home after serving our nation, and stood beside Gold Star parents to honor their children who made the ultimate sacrifice. Allowing someone to lead the Department of Defense who has repeatedly shown a poor moral compass would dishonor those who give so much to keep our nation safe. And I fear confirming a deeply unqualified nominee would unnecessarily put Georgia servicemembers in harm’s way.

    “The Secretary of Defense should embody the high standards that all other servicemembers strive toward. Georgia’s military families sacrifice too much to not have the best Secretary of Defense possible. I believe we can do better.”

    MIL OSI USA News

  • MIL-OSI China: China Disabled Persons’ Federation hosts 2025 New Year cultural exchange

    Source: China State Council Information Office 2

    The China Disabled Persons’ Federation (CDPF) hosted its 2025 New Year Celebration in Beijing on Jan. 22, bringing together people with and without disabilities for cultural and sports activities at the China Administration of Sports for Persons with Disabilities.
    Over 200 guests attended the event, including representatives from the embassies of more than 50 countries, such as the United States, France, Italy, Switzerland and Japan, along with U.N. agencies, international organizations, and foreign-invested enterprises.
    Zhou Changkui, vice chair and president of the Executive Board of CDPF, attended the celebration and delivered a speech. You Liang, vice president of the Executive Board, served as the host.
    In his speech, Zhou thanked both domestic and international partners for supporting people with disabilities in China. He emphasized the Chinese government’s commitment to a people-centered development philosophy, ensuring the comprehensive advancement of disability-related initiatives.
    Over the past year, CDPF has implemented practical measures to safeguard the rights and interests of individuals with disabilities, enhanced social security systems and support services, leveraged technology to empower them, and led the Chinese delegation to notable success at the 2024 Paris Paralympic Games. Consequently, the cause of disability rights has gained momentum in China, becoming integrated into the nation’s broader social and economic development, while enhancing the sense of fulfillment, happiness and security among individuals with disabilities.
    CDPF will continue actively engaging in international disability affairs, strengthening exchanges and cooperation with U.N. agencies, foreign embassies, and other organizations to enhance the well-being of persons with disabilities worldwide.
    France hosted the 2024 Paralympic Games in Paris, and Italy will host both the 2025 Special Olympics World Winter Games in Turin and the 2026 Paralympic Winter Games in Milan Cortina. Representatives from both nations’ embassies attended the celebration.
    Cristina Carenza, deputy head of mission and minister plenipotentiary at the Embassy of Italy in China, celebrated the incredible resilience, strength and determination of persons with disabilities. She said that Italy looks forward to using these upcoming sports events to deepen cooperation with China in areas such as disability sports.
    Mr. Romain Jacquet, counselor for health, social affairs, and labor at the French Embassy in China, noted that sports embody the values of equality, respect and inclusion. He emphasized France’s commitment to strengthening cooperation with international partners, including China, to build a more inclusive and united world.
    The event highlighted the artistic and athletic achievements of people with disabilities while showcasing their creative potential and equal participation in society. Kanasugi Kenji, the Japanese ambassador to China, and Jürg Burri, the Swiss ambassador to China, joined guests in experiencing traditional Chinese handicrafts and folk activities alongside artisans with disabilities. This allowed them to savor the festive atmosphere of the Chinese New Year and appreciate the charm of traditional Chinese culture. The guests joined athletes in friendly matches of wheelchair basketball, wheelchair curling and boccia, creating an atmosphere of warmth and camaraderie.
    During the event, Mao Jingdian, a Chinese Paralympic champion in para table tennis, and Wang Zhidong, a member of the Chinese Para Ice Hockey Team, along with outstanding athletes with disabilities from France and Italy, shared stories of perseverance and determination in pursuit of their dreams. The guests also enjoyed a performance by the China Disabled Peoples’ Performing Art Troupe.

    MIL OSI China News

  • MIL-OSI Russia: The government has simplified the procedure for issuing veteran certificates to volunteers

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    Resolution of January 24, 2025 No. 39

    Document

    Resolution of January 24, 2025 No. 39

    Volunteers will be able to receive a combat veteran certificate of a uniform type without an application. The decree on this was signed by Prime Minister Mikhail Mishustin.

    We are talking about citizens who joined volunteer formations created by decision of the authorities to assist in the fulfillment of tasks assigned to the Armed Forces of Russia during a special military operation. The certificate will serve as confirmation of the status of combat veterans and the right to benefits provided by law.

    According to the signed resolution, in order to issue certificates without an application, the military unit on the basis of which the volunteer formation was formed will send all necessary documents to the military registration and enlistment offices of the region where the volunteer is registered for military service.

    Regional military registration and enlistment offices must check their compliance with established requirements within 10 days of receiving such documents. After that, regional military registration and enlistment office commissions must make a decision on issuing a certificate.

    The completed certificate will be issued to the volunteer himself, his relatives or other persons by power of attorney, drawn up in accordance with current legislation.

    Previously, to obtain a combat veteran certificate, a volunteer had to submit an application.

    The law granting volunteers the status of combat veterans was adopted in November 2022. At the federal level, a number of benefits have been established for them, including property tax and utility bills. In addition, citizens with this status are entitled to a monthly cash payment.

    The non-declarative procedure for issuing veteran of military operations certificates to volunteers was developed at the direction of the President.

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

    MIL OSI Russia News

  • MIL-OSI Australia: Minister Shorten interview on ABC News Breakfast with Bridget Brennan

    Source: Ministers for Social Services

    E&OE TRANSCRIPT

    SUBJECTS: Israel restricting UNWRA; NDIS Commission reforms; disability foundational supports

    BRIDGET BRENNAN, HOST: We’re going to bring in Bill Shorten now, the Minister for the NDIS. We’ll get to the new penalties for those caught rorting the NDIS in a moment. But first Bill Shorten, welcome to News Breakfast. Can we get your reaction to Israel’s decision to cut ties with UNWRA?

    BILL SHORTEN, MINISTER FOR THE NDIS AND GOVERNMENT SERVICES: Well, there’s a lot of Palestinian people who are not members of Hamas who are suffering, and we’ve got to make sure they’re getting food and aid. Obviously, this is a breaking decision. I’ll find out what our foreign affairs people are saying, but there’s innocent civilians caught up in this and they’ve got to get food and aid. I think that’s just a – like, there’s no there’s no way around that. And that’s got to happen.

    BRENNAN: Well, Australia was part of a coalition of Western governments, including Canada, France, Germany calling on Israel to halt this legislation. The UK’s foreign Secretary says in his view, this is a rebuke to every friend of Israel. Why is Israel not listening to its allies, Bill Shorten?

    SHORTEN: Well, you’d have to ask Israel that. I’m aware that there were some employees of UNWRA who were connected to Hamas, but what you’ve got is you’ve got hundreds of thousands of innocent civilians, and they’re the ones who are suffering, and they’re the ones who we’ve got to prioritise. And if that’s the case, I guess the international community has got to put to Israel that you’ve got to look after the civilians. You’ve got to try and help them. It’s not their fault.

    BRENNAN: No. All right. Well, let’s move to the crucial reforms of the NDIS. This is another stage of that. We know there are grifters, shonks, criminals accessing the NDIS, trying to infiltrate the NDIS. What will be the penalties now for people doing the wrong thing?

    SHORTEN: Well, I must say at the outset, the NDIS is changing the lives of hundreds of thousands of people with profound and severe disabilities for the better, and most service providers are doing an outstanding job. But the sad fact is that where there’s government money, some, there is opportunistic, unethical and at times illegal behaviour going on where people with disabilities are being treated as human ATMs.

    We’ve been cracking down and making a record investment to tighten up the payment system to go after the shonks, we’ve proposed yesterday, new laws, which we’ll talk to the liberals and the states about, and the disability sector, where we want to increase the penalties. We want to make the NDIS a no-go zone for crooks, and we will do whatever it takes to make sure that the social licence of the NDIS is unimpeachable.

    As I say, most people are delivering great services and participants are getting benefits, but the fact is that there is a proportion of illegal behaviour and we want to make sure that we’re emphasising the safety and quality for participants, not seeing ill-gotten profits made by a minority of sharks who are bottom dwellers and ripping off people with disability and taxpayers.

    BRENNAN: So, Bill Shorten, who’s the cop on the beat here? How does the investigation take place? Where should people refer allegations to?

    SHORTEN: Great question. We have what’s called the National Quality and Safeguards Commission, the NDIS, the agency administers the funds, and the Safeguards Commission is meant to handle complaints. Since I’ve been the Minister, we’ve tripled the number of people working at the Complaints Commission, and we’ve introduced proper modern IT so we can track, you know, criminal behaviour and inappropriate conduct. We’ve also set up a Fraud Fusion Task Force. This is 21 Commonwealth agencies for the first time talking to each other, plus state police. None of this was going on before I became the Minister. People were able to just put in invoices and just get cash transactions without an explanation. So, there were – to be honest, it was too tempting. There was a complete neglect, negligence and naivety under my predecessors about when you have a government scheme with billions of dollars, there just really was no checks and balances.

    We’ve now, over the last two and a half years been putting that in. We’ve now got 56 people before the courts, hundreds of investigations, and we’re now dealing with complaints on a much larger scale. I noticed Peter Dutton had a bit of a chip at me in his sort of trademark negativity. He said, oh, it should have happened earlier. Well, Pete, your party were in power for eight years and you did two bits of bugger all. We’re now getting on with the job of making sure the scheme has integrity.

    BRENNAN: Hey, Bill Shorten, does it worry you that there are still families of children with disabilities saying they can’t get on the NDIS?

    SHORTEN: It worries me when Australians with disability are not included in society. The NDIS wasn’t for every Australian with a disability though. I know, I was there at the before the start of it. The scheme is for people with severe and profound disabilities. What’s being – so I think there’s two points to what you say. One is I think there has been a problem that the scheme sometimes is a two-class scheme. If you live in the cities, if you know, you know lots of allied health professionals, you can get on the scheme. But if you’re in the bush, if your first language isn’t English, if you don’t have access to a whole lot of health professionals, then it’s harder to get on the scheme. So, what we’re trying to do is create a consistent entry point. We want to have needs assessments, which are consistent, done by the government so that whoever you are, whatever your circumstance, you get the same, you know, equal access to the front door of the scheme, the other thing we’re doing is that it’s been great.

    We’ve been working with the states, Peter Malinauskas in particular, has led the states on this very well, but all of them participate. We want to set up some services for people with disability who don’t require the full orchestra of the NDIS, but still need some support. We’re calling these foundational supports. In the next year we hope to get some of them established. My colleague Amanda Rishworth is working with the states, to set up services for people who don’t need the full NDIS, but still need some support. And we’re going to start with the kids.

    BRENNAN: Great to talk to you Bill Shorten. Have a good day.

    SHORTEN: Outstanding. Thank you.

    MIL OSI News

  • MIL-OSI Security: Georgia Man Pleads Guilty to Role in Methamphetamine Trafficking Organization

    Source: United States Bureau of Alcohol Tobacco Firearms and Explosives (ATF)

    HUNTINGTON, W.Va. – Nehmiah Allen-Griggs, also known as “Newski,” 23, of Dallas, Georgia, pleaded guilty today to distribution of 50 grams or more of methamphetamine. Allen-Griggs admitted to his role in a drug trafficking organization (DTO) responsible for distributing large quantities of methamphetamine and fentanyl in the Southern District of West Virginia.

    According to court documents and statements made in court, on March 1, 2023, Allen-Griggs distributed approximately 1 pound of methamphetamine to a confidential informant in a Huntington parking lot in exchange for $2,000.

    On November 15, 2023, law enforcement officers executed a search warrant at a Highlawn Avenue residence in Huntington and seized quantities of methamphetamine and fentanyl, a Landor Arms Canyon Arms 12-gauge shotgun, a Walther P22 .22-caliber pistol equipped with a silencer, a Kel-Teck .22-caliber pistol, and various rounds of ammunition. Allen-Griggs admitted that he and others used the residence to store and distribute methamphetamine and fentanyl.

    Allen-Griggs is scheduled to be sentenced on February 10, 2025, and faces a mandatory minimum of 10 years and up to life in prison, at least five years of supervised release, and a $10 million fine.

    Allen-Griggs is among 27 individuals indicted in a 53-count indictment that charges the defendants with distributing methamphetamine and fentanyl transported from Detroit, Michigan, in Huntington and other locations within the Southern District of West Virginia.

    Allen-Griggs is also among 22 defendants who have pleaded guilty in the main case. One other of the 27 indicted individuals pleaded guilty to a related offense in a separate case. The indictment against the remaining defendants is pending. An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.

    United States Attorney Will Thompson made the announcement and commended the investigative work of the Federal Bureau of Investigation (FBI), the Cabell County Sheriff’s Department, the Drug Enforcement Administration (DEA), the Metropolitan Drug Enforcement Network Team (MDENT), the West Virginia State Police, the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and the U.S. Postal Inspection Service. MDENT is composed of the Charleston Police Department, the Kanawha County Sheriff’s Office, the Putnam County Sheriff’s Office, the Nitro Police Department, the St. Albans Police Department and the South Charleston Police Department.

    United States District Judge Robert C. Chambers presided over the hearing. Assistant United States Attorneys Joseph F. Adams and Stephanie Taylor are prosecuting the case.

    The investigation was part of the Department of Justice’s Organized Crime Drug Enforcement Task Force (OCDETF). The program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations and is the keystone of the Department of Justice’s drug reduction strategy. OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking organizations, transnational criminal organizations and money laundering organizations that present a significant threat to the public safety, economic, or national security of the United States.

    A copy of this press release is located on the website of the U.S. Attorney’s Office for the Southern District of West Virginia. Related court documents and information can be found on PACER by searching for Case No. 3:23-cr-180.

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    MIL Security OSI

  • MIL-OSI Australia: Address to the Australian Bureau of Agricultural and Resource Economics and Sciences

    Source: Australian Treasurer

    I acknowledge the Ngunnawal people, on whose traditional lands we meet, and pay respect to all First Nations people here today.

    Economist John Crawford started his public service career in the 1940s working under Nugget Coombs in the Department of Post‑War Reconstruction (Miller 2007, Uhr 2006).

    After taking a strong interest in agriculture, tariffs and trade in his academic studies, Crawford became the director of the Department’s rural and regional planning divisions (Powell & Macintyre 2015).

    Those planning divisions evolved into the Bureau of Agricultural Economics which would serve as the Commonwealth agency responsible for examining proposals for settling returned soldiers on productive farms.

    With Crawford as the inaugural director, the Bureau would assess ‘the suitability of climate and soil, the adequacy of the farm areas and likely economic viability of the farms’ (Powell & Macintyre 2015).

    It was a significant task because no one wanted to repeat the costly mistakes of the 1920s where nearly 12,000 soldier settlers abandoned their farms within a few years.

    But Crawford saw greater potential for the Bureau.

    He proposed broader functions such as studies on the outlook for primary industries, land use investigations and research to promote certain commodities (Powell & Macintyre 2015).

    The Bureau of Agricultural Economics, Crawford and its broader functions transferred to the Department of Commerce and Agriculture in 1946.

    Through various departmental leadership roles, Crawford went on to be one of the great public administrators of his generation.

    John Crawford is the only economist ever to be recognised as the Australian of the Year, winning the award in 1981 for his work as ‘one of the foremost architects of Australia’s post‑war growth’ (Australian of the Year n.d) (I can’t help noting in passing that we’re probably due for another economist to take the top gong).

    Meanwhile, the Bureau has broadened its economic knowledge base and has added names to its title over the years as it merged with other research agencies (ABARES n.d).

    Some 80 years and dozens of outlook conferences later, the Australian Bureau of Agricultural and Resource Economics and Sciences continues to uphold John Crawford’s best traditions.

    In his words, providing a ‘fact‑finding service’ and providing ‘the material and critical analyses of problems with which policy can be better made’ (Crawford 1952).

    Recognising the ongoing importance of your work, our government announced additional funding in last year’s Budget to help:

    • improve regional data sources
    • collect information on low‑emissions technology, and
    • examine the effect of emissions policies on agriculture and regions (DAFF 2023).

    Concentrating on competition in agriculture

    As a kid who attended an agricultural high school, I’ve always been fascinated by farming. But competition is my primary reason for being here today.

    Since at least the days of Adam Smith, economists have spruiked the virtues of competition (Leigh 2022).

    Industries with plenty of competitors tend to deliver better prices, more choices and stronger productivity growth.

    Uncompetitive markets tend to deliver higher prices, lower wages, less choice, and less innovation. A lack of competition leads to problems that can be difficult to undo.

    Today, I will talk about one problem that has only become worse in the recent decades: market concentration.

    When I took on the competition portfolio, a friend issued me a challenge: ‘How many Australian industries can you name that are not dominated by a few big firms?’ (Leigh 2024a).

    It’s a tough ask.

    Applying the rule of thumb that a market is concentrated if the largest 4 firms control one‑third or more, research by Adam Triggs and I found over half of the industries in the Australian economy are concentrated markets (Leigh & Triggs 2016).

    Indeed, many people asked to take on my friend’s challenge might well answer ‘farming’. And it turns out that for many commodities – though not all – farming is quite competitive.

    A straightforward source of market concentration data are the annual industry estimates produced by IBIS World. They estimate the market share of the top 4 firms for several hundred industries.

    A round‑up of IBIS World data on the market share of the largest 4 companies in parts of the agricultural supply chain shows farmers are often caught in the middle.

    Upstream, farmers deal with concentrated markets for their inputs.

    The largest 4 companies in fertiliser manufacturing in Australia have a combined market share of 62 per cent (IBIS World 2024a).

    The largest 4 in hardware and building supplies retailing control about 49 per cent of the market (IBIS World 2024b).

    And the market share for garden supplies retailing is about 33 per cent for the largest 4 firms (IBIS World 2024c).

    Downstream, farmers deal with concentrated markets for processing, freight and retailing.

    According to IBIS World industry reports, there is concentration in fruit and vegetable processing, with the largest 4 companies holding about 34 per cent of the market (IBIS World 2023).

    For meat processing, market share of the largest 4 companies is 44 per cent with JBS Australia, Thomas Food International and Teys Australia being the dominant players (IBIS World 2024d).

    For rail freight transport, the 4 largest including Aurizon and Pacific National have a combined 64 per cent market share (IBIS World 2024e).

    For shipping freight transport in Australia, the market share of 2 companies – ANL and Maersk – amounts to about 85 per cent (IBIS World 2024f).

    When it comes to supermarkets and grocery stores in Australia, it is well documented that Coles and Woolworths account for two‑thirds of the market (IBIS World 2024g).

    These figures show that the agricultural supply chain is highly concentrated at the national level.

    However, for many farmers, their options are even more limited than these figures suggest, as transport costs and risk of spoilage further limit the commercially viable options available to them.

    To further illustrate the point about farmers being caught in the middle, today I will draw on case studies from a series of reports where concerns have been raised about market concentration harming farmers.

    And I will finish by outlining our actions to improve competition laws, to revitalise competition policy in Australia and to make the economy more productive.

    Digging in

    First, we should never underestimate the importance and efficiency gains of farm equipment and machinery.

    Historian James Burke argues the entire modern world is the result of the plough (Harford 2017).

    Increasing farm productivity meant communities could build up a surplus of food, people could settle in one place and everyone’s job no longer had to be finding food (Leigh 2024b).

    Knowing where your next meal was coming from allowed craftspeople to specialise, it allowed trade to flourish, and it allowed people to think about improving the world around them.

    Any list of top Australian inventions typically includes Richard Bowyer Smith and his brother Clarence’s invention in 1876 of the stump‑jump plough (Dictionary of Biography n.d).

    These days, we are no longer talking about the humble plough.

    We are talking about a billion‑dollar farm machinery industry consisting of hi‑tech harvesters, tractors and seeding machinery (DAFF 2022).

    John Deere has more software development engineers than mechanical design engineers (Patel 2021).

    For farmers, machinery represents a significant capital investment involving upfront and ongoing costs (ACCC 2021).

    But many Australian farmers feel they have no genuine choice or ability to shop around.

    The Australian Competition and Consumer Commission’s 2021 market study found farm machinery markets are concentrated at the manufacturer and dealership levels (ACCC 2021).

    Compared to car manufacturers, agricultural machinery makers have greater ability to leverage their market share in new sales to reduce competition in the market for servicing, repairs and parts.

    Warranties restrict the purchaser to a single authorised dealer for servicing and repairs.

    And tech restrictions mean independent repairers or farmers can’t access the parts, manuals and diagnostic software they need to carry out repairs.

    In short, farmers have few choices when buying machinery but even less choice when servicing or repairing that equipment.

    The Productivity Commission further examined difficulties accessing repair data as part of the right to repair inquiry (PC 2021).

    It agreed restrictions harm farmers through higher repair prices, reduced access and choice, and greater financial risks from repair delays.

    The Productivity Commission recommended the government intervene by introducing a repair supplies obligation on agricultural machinery.

    This would require manufacturers to provide access to repair information and diagnostic software tools to machinery owners and independent repairers on fair and reasonable commercial terms.

    As you may know, I have advocated for the need for access to service and repair information over many years.

    In July 2022, I launched Australia’s first right to repair law, the Motor Vehicle Service and Repair Information Sharing Scheme.

    The government is currently monitoring how this scheme is operating for the benefit of independent repairers and consumers.

    Extending right to repair to other sectors, such as agriculture, is a good thing for the economy, businesses and consumers.

    I am pleased there have been negotiations between Australian farmers and the farm machinery industry to consider putting in place a voluntary right to repair arrangements for the sector.

    I encourage parties to continue those negotiations as voluntary arrangements are a great opportunity to foster collaboration and flexibility and can often lead to innovative and effective outcomes.

    Seeds of doubt

    Seeds are the next input I want to cover.

    The US Department of Agriculture’s Economic Research Service examined the seed sector as part of its paper on concentration and competition in agribusiness (MacDonald J et al. 2023).

    The 2023 paper found the seed sector ‘has become highly integrated with agricultural chemicals and more concentrated, with fewer and larger firms dominating supply’.

    Using 2021 annual report data, it said Bayer, ChemChina’s Syngenta Group, Corteva and BASF were the biggest players in global sales for seeds and agricultural chemicals.

    The Economic Research Service found seed prices rose significantly as markets became more concentrated but said the evidence was mixed on the influence of other factors.

    Between 1990 and 2020, the average seed price went up by 270 per cent and the average price for genetically modified varieties rose 463 per cent (MacDonald J et al. 2023).

    Despite the higher seed costs, the paper said it could be argued that genetically modified varieties resulted in ‘significant productivity gains to farmers’.

    It also said higher seed prices may have supported research and development with the number of patents for new crop varieties doubling compared to earlier decades.

    Still, there are not many other industries where the price of a key input has grown fivefold in thirty years.

    Mergers have changed the global seed and farm chemical industry in recent years, and questions remain about what it means for prices and innovation in the long term.

    Sour competition grapes

    Wine grapes arrived with the first fleet in 1788 as cuttings collected en route by Captain Arthur Phillip.

    They were planted at Sydney Cove but withered and died without producing any fruit.

    Which is why it’s called the Rum Rebellion, not the Chardonnay Coup.

    Nevertheless, a fledging wine industry struggled to its feet through booms and busts of the 1800s and by the turn of the century had taken root.

    In the most recent year for which statistics are available, Australia exported 621 million litres of wine (Wine Australia 2024). That figure exceeds domestic wine sales, estimated at 444 million litres.

    There are more than 2,000 wineries and approximately 6,000 grape growers across our 65 wine growing regions.

    They have over 160,000 full and part‑time employees.

    But while the terroir may be good, the vineyard not a level playing field.

    A wine grape market study completed by the Australian Competition and Consumer Commission in 2019 found a highly concentrated industry (ACCC 2019).

    Issues in the supply chain included a lack of competition, potential unfair contract terms, a lack of price transparency, and imbalanced risk allocation in favour of winemakers over grape growers.

    The largest 1 per cent of winemakers accounted for over 80 per cent of wine production.

    Four retailers account for over 80 per cent of sales by value in the domestic retail liquor market.

    The 5 largest winemakers account for an estimated 87 per cent of volume in the Australian wine export market.

    And the trend has been towards even greater consolidation of large winemakers in recent years.

    Change is never easy in agricultural industries subject to boom‑and slump cycles of over production in the good times and consolidation in the bad.

    In 2021 the ACCC found that commercial practices in the wine grape industry had improved since their 2019 report but warned that regulatory action may be necessary without further reforms in payment times and transparency.

    Industry is taking steps to improve transparency but there is still work to be done to ensure a fair and functioning wine, grape and retail market.

    In August, we appointed former competition minister Craig Emerson to lead an independent impact analysis of the wine and grape sector’s regulatory options (Collins 2024).

    Dr Emerson’s report will examine fair trading, competitive relationships, contracting practices and risk allocation.

    Competition beef

    Those problems are not unique to the grape and wine industry.

    In 2023, the National Farmers Federation released an issues paper criticising the lack of transparency and competition across Australia’s agricultural supply chains (NFF 2023).

    The National Farmers Federation said reduced competition meant farmers weren’t receiving the incomes they deserved with long‑term consequences for competitiveness, economic and environmental sustainability and profitability.

    Those concerns echoed the Australian Competition and Consumer Commission’s cattle and beef market study of 2017. That study found evidence that conflicts of interest regularly arise in saleyard transactions when buyers bid for livestock on behalf of multiple clients, and when agents represent both a cattle seller and a cattle buyer in the same transaction (ACCC 2017).

    The report pointed out that cattle auctions have characteristics that make it easier for cartels to develop, including repeated interactions with the same auctioneers, who are often linked by social networks that make it easier to ‘punish’ auctioneers who break away from agreed anti‑competitive bidding practices. Other problematic behaviours included the exclusion of rival agents, and a lack of transparency around saleyard weighing protocols.

    There is a cyclical element to many concerns about competitiveness in the market structure of the Australian cattle and beef industry.

    An ongoing concern is the impact on producers of market concentration and buyer power during tough times, such as droughts.

    Seasonal and cyclical fluctuations in supply can also affect the profitability of meat processors, dampening incentives for new entrants and reducing competition through mergers or acquisitions of incumbents.

    The 2017 report found that the top 5 Australian processors account for around 57 per cent of total cattle slaughter (ACCC 2017).

    A follow‑up report by the Australian Competition and Consumer Commission 2 years later found that the industry had taken some steps towards improving transparency in dealings between processors and farmers, but, again, there was still work to do (ACCC 2019).

    Super concentrated

    Another highly concentrated part of the agricultural supply chain in Australia are supermarkets.

    Coles and Woolworths account for about 67 per cent of national retail sales (Mulino 2024, ACCC 2024 p147).

    Only 2 OECD countries – New Zealand and Norway – have a greater market share of sales controlled by 2 supermarkets (ACCC 2024 p148).

    Earlier this year, the House of Representatives Standing Committee on Economics handed down an excellent report on the inquiry into promoting economic dynamism, competition and business formation.

    The Committee received evidence on the high market share in the supermarket sector, profit margins, and the power imbalance in the relationship between the major supermarkets and farm‑gate producers.

    The report said: ‘Many agricultural suppliers are at risk of that power imbalance being used to negotiate outcomes that affect profitability and, therefore, the capacity and willingness to invest.’

    At the same time as the Parliamentary inquiry, our government is taking action on several fronts.

    Food and Grocery Code of Conduct

    First, we are making sure the Food and Grocery Code of Conduct is working effectively and fairly.

    The voluntary Code was introduced in 2015 to improve behaviour in the way supermarkets deal with suppliers – including growers where they supply directly to supermarkets.

    Dr Craig Emerson’s independent review found the Code is ‘needed to address persistent bargaining power imbalances between supermarkets and their smaller suppliers’ (Emerson 2024).

    Dr Emerson made 11 recommendations for improving the Code and the government announced in June that it will adopt them all (Treasury 2024a).

    The Code will be made mandatory with Coles, Woolworths, Aldi and Metcash subject to million‑dollar penalties for serious breaches.

    There will be improvements to the dispute resolution mechanisms. There will be a pathway for anonymous complaints from suppliers and whistle‑blowers, and guards against retribution by supermarkets.

    We released exposure drafts for consultation in September and we aim to introduce legislation into the Parliament later this year.

    Supermarket inquiry

    Second, we understand more needs to be done to achieve a competitive and sustainable food and grocery sector.

    So, we directed the Australian Competition and Consumer Commission to undertake a 12‑month inquiry into supermarket pricing.

    It allows the watchdog to conduct a deep dive into competition and pricing practices in the supermarket sector for the first time in more than 15 years.

    The Australian Competition and Consumer Commission’s interim report released in September said, ‘Australia’s supermarket industry is changing’ but remains ‘highly concentrated’ (ACCC 2024).

    In the era of online shopping, loyalty programs and data technology, Coles and Woolworths have expanded their share of take‑home food and grocery sales by a combined 3.7 percentage points since 2006–07.

    Supermarkets have also expanded into broader ‘ecosystems’ beyond grocery retailing but in highly complementary areas such as advertising and data analytics, pet products, telco and insurance services (ACCC 2024 p161).

    As well as conducting consumer surveys as part of the inquiry, the Australian Competition and Consumer Commission held 7 roundtables to listen to farmers and fresh produce wholesalers.

    Although no conclusions have been made, the interim report highlighted concerns from fresh produce suppliers about information asymmetries, power imbalances and specific practices that have enabled supermarkets to transfer disproportionate risk and cost onto suppliers.

    In the next phase of the inquiry, the Australian Competition and Consumer Commission will undertake 14 case studies to examine supermarket profit margins and how profits are distributed in the supply chain.

    And it will hand a final report to the government in February 2025.

    CHOICE retail reports

    Third, we announced funding for consumer group CHOICE to produce quarterly reports on retail grocery prices.

    The CHOICE reports will compare grocery prices at different retailers, highlighting those charging the most and the least.

    We have already seen the first 2 ‘basket of goods’ quarterly reports using data from March and June to help consumers make informed decisions about what they’re buying and where they shop (Leigh 2024c).

    Other measures

    Earlier this month, the Australian Government announced around $30 million in additional funding to the ACCC to crack down on misleading and deceptive pricing practices and unconscionable conduct in the supermarket and retail sectors.

    This will strengthen the ACCC’s ability to proactively monitor behaviour and investigate concerns about supermarkets and retailers falsely justifying higher prices.

    In addition to this crackdown, the Treasurer will work closely with states and territories through the Council on Federal Financial Relations to reform planning and zoning regulations, which will help boost competition in the supermarket sector by opening up more sites for new stores (Albanese 2024).

    Strengthening protections against unfair contract terms

    Unfair contract term protections are another area where we have already made improvements.

    Unfair contract terms are terms that are clearly lopsided – for example by allowing the more powerful party to unilaterally change prices, or cancel the contract.

    Under the former government, such terms were unenforceable, but it was not an offence to include them in a contract.

    Fertiliser

    For example, last year the Australian Competition and Consumer Commission investigated complaints about fertiliser companies using contracts in a way that could disadvantage farmers (ACCC 2023).

    Contract terms allegedly gave larger suppliers the right to unilaterally vary the quantity delivered or to terminate the agreement and restricted buyers from raising issues about defects.

    Fertiliser suppliers co‑operated and changed the contract terms to address the Australian Competition and Consumer Commission’s concerns.

    Potatoes

    In another example, the Federal Court in 2019 declared Mitolo Group, Australia’s largest potato wholesaler, used unfair terms in contracts with growers (ACCC 2019).

    The court declared contract terms that allowed Mitolo to unilaterally determine or vary the price paid to growers as void.

    Terms preventing growers from selling potatoes to other purchasers and terms stopping farmers from selling their property unless the buyer entered into a contract with Mitolo were also declared void.

    Stronger laws

    More broadly, the problem is the laws weren’t stopping the use of unfair terms, which remain prevalent in standard form contracts.

    A court could declare a contract term to be unfair and therefore void and unenforceable, but until our government took office, the law didn’t allow penalties to be imposed.

    We have fixed that. In 2022, we delivered on our promise to strengthen unfair contract term laws (Leigh & Collins 2022).

    We introduced civil penalty provisions outlawing the use of, and reliance on, unfair terms in standard form contracts.

    And we extended the coverage of the protections.

    We lifted the eligibility cap from businesses with less than 20 employees to businesses with less than 100 employees, or annual turnover of less than $10 million.

    The most significant merger reforms in decades

    Merger regulation is one of the key pillars of competition law (Leigh 2024a).

    It acts as the ‘preventive medicine’ against the few mergers that substantially lessen competition.

    But feedback suggests our system isn’t as healthy as it could be.

    The Competition Taskforce found Australia’s ‘ad hoc’ merger process is unfit for a modern economy and said we lag best practice in other countries.

    In response, we have announced the most significant reforms to merger settings in almost 50 years.

    The proposed reforms will make Australia’s merger approval system faster, stronger, simpler, targeted and more transparent.

    Revitalising National Competition Policy

    The Albanese government is working with state and territories to revitalise National Competition Policy.

    There is consensus that pro‑competitive reforms are worth doing and we are aiming for agreement by the end of the year.

    The original National Competition Policy underpinned a generation of growth from the 1990s (Leigh 2024d).

    While it left us in a good position, the economy has changed, and the nation now faces new challenges that the original policy could not have anticipated.

    These include digitalisation, the growth in human services, the net zero transformation and supporting Australia’s most vulnerable (Treasury 2024b).

    Trade opportunities

    We are also looking to improve competitiveness overseas as well as at home.

    Our farmers are internationally competitive with Australia exporting around 72 per cent of the total value of agricultural, fisheries and forestry production (ABARES 2024).

    Historically, Australia’s farmers have been among the strongest advocates of trade liberalisation. The old ‘protection all round’ strategy meant that Australian farmers paid more for imported farm machinery, and faced tariffs from other countries to which they exported their produce.

    Reductions in Australia’s domestic tariffs under the Whitlam, Hawke and Keating governments made farm equipment more affordable. It also bought Australia international credibility – enabling us to spearhead reform through the creation in 1986 of the Cairns Group of Fair Trading Nations, to advocate for liberalisation of global trade in agricultural goods (cairnsgroup.org).

    Today, our government is building on that legacy. Invested: Australia’s Southeast Asia Economic Strategy said, ‘Australia is already a key partner in helping Southeast Asia meet its food security needs’, and notes that ‘there is strong potential to develop this trade relationship further towards 2040’ (DFAT 2023).

    So, trade forms a significant part of our broader economic agenda.

    And as Trade Minister Don Farrell observes, we are ‘delivering on our commitment to secure new trade and investment opportunities for Australian exporters, producers, farmers and businesses’ (Farrell 2024).

    Closing remarks

    Let me finish by saying, competitive markets matter in all parts of the Australian economy, but especially in the farm sector.

    As the Australian Competition and Consumer Commission’s Mick Keogh crisply puts it: ‘there are many farmers, but few processors or wholesalers, and even fewer major retailers’ (Keogh 2021).

    As my analysis of IBIS World data shows, small‑scale farmers are often the meat in a market concentration sandwich.

    Upstream, there is often no choice about dealing with large‑scale providers on inputs.

    Downstream, there is often no choice about negotiating with larger processors and retailers.

    And through various examples from many reports over several years, we can see that market concentration hurts farmers.

    Higher prices for inputs.

    Less choice for repairs.

    Power imbalances in negotiating contracts.

    A lack of transparency around prices.

    And potentially unfair contract terms.

    I’m pleased to say, as outlined today, the government is focused on practical solutions to improve our competition settings.

    And we appreciate the expertise and insights of the Australian Bureau of Agricultural and Resource Economics and Sciences.

    Thank you.

    Note: My thanks to officials in the Australian Treasury for invaluable drafting assistance.

    References

    Albanese, A; Chalmers, J. (2024) ‘Helping Australians get fairer supermarket prices through stronger protections and greater competition’, [media release] The Treasury, accessed 1 October 2024.

    Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) n.d About ABARES – Our History, online content.

    Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES) (2024) Snapshot of Australian Agriculture 2024, ABARES Insights.

    Australian Competition and Consumer Commission (ACCC) (2024) Supermarkets inquiry interim report.

    Australian Competition and Consumer Commission (ACCC) (2017) Cattle and Beef Market Study – Final Report.

    Australian Competition and Consumer Commission (ACCC) (2019a), Transparency improving in cattle and beef industry, media release issued 20 August 2019.

    Australian Competition and Consumer Commission (ACCC) (2020) Perishable agricultural goods inquiry Final Report.

    Australian Competition and Consumer Commission (ACCC) (2021) Agricultural Machinery Market Study.

    Australian Competition and Consumer Commission (ACCC) (2023) Fertiliser suppliers amend unfair contract terms after ACCC investigation Accessed 21 August 2023.

    Australian Competition and Consumer Commission (ACCC) (2019b) Court penalises potato wholesaler for breaching the Horticulture Code and declares unfair contract terms void, Accessed 2 August 2019.

    Australian of the Year Awards (n.d) Sir John Crawford AC CBE – In Memoriam.

    Cairns Group, The. (n.d) About The Cairns Gro…~https://www.cairnsgroup.org/Pages/Introduction.aspx

    Collins (2024) Supporting Australia’s wine industry [media release] The Treasury, accessed 23 August 2024.

    Department of Agriculture, Fisheries and Forestry (2022) Snapshot – Australian agricultural machinery imports Accessed 4 November 2022.

    Department of Agriculture, Fisheries and Forestry (2023) Boosting capabilities to support a sustainable agriculture sector Budget 2023–2024 fact sheet, Australian Government.

    Department of Foreign Affairs and Trade (2023) Invested: Australia’s Southeast Asia Economic Strategy to 2040, a report for the Australian Government accessed September 2023.

    Dictionary of Biography, Australian. Richard Bowyer Smith entry, Biography – Richard …~https://adb.anu.edu.au/biography/smith‑richard‑bowyer‑13201

    Emerson C (2024) Independent Review of the Food and Grocery Code of Conduct Final Report, [final report] Treasury.

    Farrell D (2024) Press conference, Parliament House Accessed 17 September 2024.

    Harford T 27 November (2017) How the plough made the modern economy possible BBC World Service.

    IBIS World (2024a) ‘Agricultural machinery manufacturing in Australia’, Industry Report, February 2024.

    IBIS World (2024b) ‘Hardware and building supplies retailing in Australia’, Industry Report, February 2024.

    IBIS World (2024c) ‘Garden supplies retailing in Australia’, Industry Report, March 2024.

    IBIS World (2024d) ‘Meat processing in Australia’, Industry Report, June 2024.

    IBIS World (2024e) ‘Rail freight transport in Australia’, Industry Report, September 2024.

    IBIS World (2024f) ‘Water freight transport in Australia’, Industry Report, May 2024.

    IBIS World (2024g) ‘Supermarkets and grocery stores in Australia, Industry Report, August 2024.IBIS World 2023, ‘Fruit and vegetable processing in Australia’, Industry Report, August 2023.

    Keogh M (2021) Competition in Australian agriculture Speech to the National Farmers’ Federation accessed 11 June 2021.

    Leigh A 28 November (2022) Look overseas to see the virtues of more competition [opinion piece] The Australian.

    Leigh A 27 August (2024a) Why new rules in competition are sure to be game‑changing [opinion piece] The Canberra Times.

    Leigh A (2024b) The Shortest History of Economics, Black Inc.

    Leigh A (2024b) Supermarket price monitoring to help Australians make informed choices at the checkout [media release] Accessed 20 June 2024.

    Leigh A (2024c) Supermarket price monitoring to help Australians make informed choices at the checkout [media release] Accessed 20 June 2024.

    Leigh A (2024d) Competition reform will ensure flourishing future [opinion piece] The Australian.

    Leigh A and Collins J (2023) Labor delivering on promise to ban unfair contract terms [media release] Accessed 26 July 2022.

    Leigh A and Triggs A (2016), Markets, Monopolies and Moguls: The Relationship between Inequality and Competition. Australian Economic Review, 49: 389–412.

    MacDonald J, Dong X, and Fuglie K (2023) Concentration and Competition in U.S. Agribusiness United States Department of Agriculture Economic Research Service, Economic Information Bulletin No.256.

    Miller J (2007) Sir John Grenfell (Jack) Crawford (1910–1984) Australian Dictionary of Biography, Volume 17, 2007, ANU.

    Mulino D (2024) Better Competition, Better Prices Report on the inquiry into promoting economic dynamism, competition and business formation, House of Representatives, Standing Committee on Economics.

    National Farmers’ Federation (NFF) (2023), Issues Paper, Market Price Transparency, National Farmers’ Federation Issues Paper.

    Patel N 15 June (2021) John Deere turned tractors into computers – what’s next, The Verge.

    Powell G & Macintyre S (2015) Land of opportunity: Australia’s post‑war reconstruction, National Archives of Australia Research Guide.

    Productivity Commission (PC) (2021) Right to Repair Inquiry Report No.97, accessed 29 October 2021.

    Treasury (2024a) Government response to the Independent Review of the Food and Grocery Code of Conduct, Treasury.

    Treasury (2024b) National Competition Policy fact sheet Treasury.

    Uhr J (2006) The Crawford Doctrine: An informal sketch Australian National University, accessed 21 June 2006.

    Whitnall T and Pitts N (2020) Meat Consumption ABARES.

    Wine Australia (2024), Market insights, Australian wine sector at a glance, Wine Australia.

    MIL OSI News

  • MIL-OSI: Notice on Public Offering of Subordinated Bonds of LHV Group

    Source: GlobeNewswire (MIL-OSI)

    AS LHV Group (hereinafter LHV) hereby announces a public offering of LHV’s subordinated bonds. The offering is conducted on the basis of the prospectus affirmed by the Estonian Financial Supervision and Resolution Authority (FSA) on 28 October 2024, that has been disclosed on the date of this announcement on the web pages of LHV and the FSA. The public offering of the subordinated bonds will be carried out in Estonia, Latvia and Lithuania.

    This is the second issue of subordinated bonds, in the amount of up to EUR 20 million, under the bond programme confirmed in 2023. Under the bond programme EUR 35 million worth of subordinated bonds have previously been issued and altogether it is possible to raise up to EUR 200 million.

    Main Terms of Offering

    LHV offers publicly up to 20,000 subordinated bonds of LHV „EUR 6.00 LHV Group subordinated bond 24-2034” with the nominal value of EUR 1,000, the maturity date of 15 November 2034 and a quarterly paid fixed interest rate offered to the investor at the rate 6% per annum. Subordinated bonds will be offered at a price of EUR 1,000 per one bond. Subordinated bonds will be issued in a dematerialised book-entry form and registered in Nasdaq CSD SE under ISIN code EE3300004993.

    The subscription period for the bonds will start on 29 October 2024 at 10:00 and will end on 12 November 2024 at 16:00. The subordinated bond offering is intended for retail and institutional investors operating in Estonia, Latvia, and Lithuania and made possible for the clients of account-managing financial institutions that are members of the Estonian securities settlement system.

    A subordinated bond represents an unsecured debt obligation of LHV before the investor. The subordination of the bonds means that upon the liquidation or bankruptcy of LHV, all the claims arising from the subordinated bonds shall fall due and shall be satisfied only after the full satisfaction of all unsubordinated recognised claims in accordance with the applicable law. Among other things, with subordinated bonds, the risk of conversion of liabilities and claim rights (bail-in risk) must be considered.

    Timetable of Offering

    29.10.2024 at 10:00 Start of the subscription period for the subordinated bonds
    12.11.2024 at 16:00 End of the subscription period for the subordinated bonds
    On or about 13.11.2024  Disclosing the allocation results of the subordinated bonds
    On or about 15.11.2024 Transfer of the subordinated bonds to investors’ securities accounts
    On or about 18.11.2024 Expected listing of the subordinated bonds and admission to trading on the regulated market operated by Nasdaq Tallinn AS (on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange)

    Submitting Subscription Undertakings 

    In order to subscribe for the subordinated bonds an investor has to submit, during the subscription period, a subscription undertaking to the custodian who holds the investor’s securities account opened at Nasdaq CSD SE, with the format accepted by the custodian and in accordance with the prospectus and offer conditions. The subscription undertaking must be submitted before the end of the subscription period. The investor may use any method that such investor’s custodian offers to submit the subscription undertaking (e.g., physically at the client service venue of the custodian, over the internet or by other means). The subscription undertaking will be forwarded to Nasdaq CSD SE.

    Listing and Admission to Trading

    LHV intends to submit an application to Nasdaq Tallinn AS for the listing and admission to trading of the LHV’s subordinated bonds on the Baltic Bond List of the Nasdaq Tallinn Stock Exchange. The expected date of listing and admission to trading is on or about 18 November 2024.

    While every effort will be made and due care will be taken in order to ensure the listing and the admission to trading of the subordinated bonds, LHV cannot ensure that the subordinated bonds will be listed and admitted to trading.

    Availability of Prospectus and Terms of Offering

    The Prospectus has been published and can be obtained in electronic format from LHV’s website https://investor.lhv.ee/en/ and from the website of the FSA https://www.fi.ee/en. Additionally, the Estonian translation of the Prospectus has been disclosed and made available together with the Prospectus on the LHV website https://investor.lhv.ee/en and is also available through the information system of Nasdaq Tallinn Stock Exchange. The terms and conditions of the subordinated bonds and the final terms of the offering together with the summary of the prospectus and their translations to Estonian, Latvian and Lithuanian have been published and can be obtained in electronic format from LHV’s website https://investor.lhv.ee/en.

    Before investing into LHV’s subordinated bonds we ask you to acquaint yourself with the prospectus, the terms and conditions of the bonds, the final terms and if necessary consult an expert.

    LHV Group is the largest domestic financial group and capital provider in Estonia. The LHV Group’s key subsidiaries are LHV Pank, LHV Varahaldus, LHV Kindlustus, and LHV Bank Limited. The Group employs nearly 1,200 people. As at the end of September, LHV’s banking services are being used by 445,000 clients, the pension funds managed by LHV have 116,000 active clients, and LHV Kindlustus protects a total of 169,000 clients. LHV Bank Limited, a subsidiary of the Group, holds a banking licence in the United Kingdom and provides banking services to international financial technology companies, as well as loans to small and medium-sized enterprises.

    Priit Rum
    Communications Manager
    Phone: +372 502 0786
    Email: priit.rum@lhv.ee

    Important information:
    This information is an advertisement of securities within the meaning of Regulation (EU) 2017/1129 and does not constitute an offer of bonds of AS LHV Group or an invitation to subscribe for or acquire bonds. The offer of the bonds will be made on the basis of the Terms and Conditions of the Prospectus published on the day of the public offer of the bonds and approved by the Finantsinspektsioon (Estonian Financial Supervision and Resolution Authority), and the Final Terms of the First Issue. The Prospectus is available on the websites of the Finantsinspektsioon and AS LHV Group at fi.ee and investor.lhv.ee, respectively, where the Terms and Conditions referred to and the Summary of the Prospectus are also available. Investors should read the information published in the Prospectus, its Terms and Conditions, and the Final Terms of the First Issue before making an investment decision in order to understand all the facts relating to the investment. The approval of the prospectus by the Finantsinspektsioon does not constitute an approval of AS LHV Group or the securities offered. The bonds are publicly offered in the Republic of Estonia, the Republic of Latvia, and the Republic of Lithuania.

    Attachments

    The MIL Network

  • MIL-OSI Economics: Lufthansa Group reports an operating profit of 1.3 billion euros for the third quarter following a strong summer travel season

    Source: Lufthansa Group

    Carsten Spohr, Chairman of the Executive Board and CEO of Deutsche Lufthansa AG:

    “Today, we are reporting on another strong summer travel season, with a record seat load factor of 88 percent in August. Particularly in view of the fact that global air traffic again reached its capacity limits this summer, I would like to thank our employees for their efforts and our customers for the patience we sometimes had to ask for.
    Global demand remains intact and bookings for the fourth quarter are also at a high level compared to the previous year, particularly in the premium classes.

    With all passenger airlines operating at a profit, Eurowings, Austrian Airlines and Brussels Airlines even generated record results in the third quarter. Lufthansa Technik and Lufthansa Cargo also remain on track. 
    At the same time, delayed aircraft deliveries, punctuality issues at our hubs in Germany and regulatory disadvantages are impacting our core brand. Lufthansa Airlines has therefore launched the “Turnaround” program to address these and structural internal challenges.

    Across the group, we are continuing to invest in the largest fleet modernization in our history, in premium offers for our guests and in an even more international positioning. These three central pillars of our strategy will enable us to further expand our role as the leading airline group in Europe.”

    Results
    The Group increased its revenue by five percent year-on-year to 10.7 billion euros (previous year: 10.3 billion euros) in the third quarter due to the higher number of flights and the revenue growth at Lufthansa Technik. This was the strongest quarter in terms of revenue in the history of the Lufthansa Group. The Group generated an operating profit (Adjusted EBIT) of 1.3 billion euros (previous year: 1.5 billion euros), resulting in an operating margin of 12.5 percent (previous year: 14.3 percent). The year-on-year decline was due to significant cost increases, particularly in fees, MRO expenses and personnel. Net profit fell to 1.1 billion euros (previous year: 1.2 billion euros).

    Lufthansa Group Passenger Airlines expand capacity

    The Lufthansa Group airlines welcomed more than 40 million guests on board their aircraft in the third quarter, an increase of six percent over the previous year. At 94 percent of available capacity (prior-year period: 88 percent), the seat load factor rose to 87 percent in the third quarter (previous year: 86 percent). In terms of the seat load factor, August was the strongest month in the company’s history, with a load factor of 88 percent.

    Due to the industry-wide capacity growth, average yields fell by 3.5 percent compared to the previous year, although the development in the various traffic regions was mixed: While average yields in continental traffic in the third quarter remained almost at the previous year’s level (-0.4 percent), they fell significantly by 14 percent in the Asia/Pacific region. Due to the improved passenger load factor, the decline in unit revenues (RASK) was less pronounced at minus 2.7 percent. Unit costs increased by 4.5 percent compared to the previous year due to higher fees, as well as higher material and personnel costs. 

    Overall, the Group’s passenger airlines generated an Adjusted EBIT of 1.2 billion euros in the third quarter (previous year: 1.4 billion euros). The decline in the operating profit of the passenger airlines is mainly driven by the 234 million euros decline in the result of Lufthansa Airlines. Delays in the delivery of new aircraft and the associated need to continue operating older aircraft, increased location costs, higher staff costs and expenses for compensation payments following flight irregularities had an above-average impact on the result of Lufthansa Airlines.

    Turnaround program at Lufthansa Airlines is making progress

    Lufthansa Airlines is consistently implementing its Turnaround program. The aim is to increase efficiency, reduce complexity and improve product quality, thereby making the airline fit for the future. Among other things, the Turnaround plan envisages shifting more short-haul traffic to more cost-efficient flight operations. Further efficiency gains are to be achieved by optimizing the network and increasing flexibility and automation. By 2026, the measures will have a gross EBIT effect of around 1.5 billion euros.

    Till Streichert, Chief Financial Officer of Deutsche Lufthansa AG:

    “The Lufthansa Group will continue to focus on generating cash flow and creating value for our shareholders. For this, the Turnaround program at Lufthansa Airlines and the fleet modernization are core elements. I am confident that on this basis we will position all our passenger airlines to be sustainably efficient and profitable.”

    Lufthansa Technik’s result on par with last year, positive performance at Lufthansa Cargo

    In the third quarter, Lufthansa Technik continued to benefit from the high demand for air travel and the associated increase in demand from airlines worldwide for maintenance and repair services. Lufthansa Technik generated an Adjusted EBIT of 167 million euros in the third quarter (previous year: 168 million euros).

    The airfreight business continued to recover in the third quarter compared with the previous quarter. Lufthansa Cargo achieved an operating profit of 38 million euros (previous year: 1 million euros) in the traditionally seasonally weak third quarter for air freight. This trend confirms the anticipated normalization in the air freight market. Furthermore, Lufthansa Cargo is optimally positioned to benefit from strong e-commerce business with Asia, which has prompted Lufthansa Cargo to shift capacity from the transatlantic to the Asia/Pacific region. 

    Adjusted free cash flow clearly positive, balance sheet further strengthened

    The Lufthansa Group generated an operating cash flow of 635 million euros in the third quarter of 2020 (previous year: 1.2 billion euros). After deducting net capital expenditure, primarily for new fuel-efficient aircraft, the Group recorded an Adjusted free cash flow of 128 million euros in the quarter. In the first nine months, the Adjusted free cash flow was 1.0 billion euros (previous year: 1.7 billion euros).

    The Group continued to strengthen its balance sheet during the first nine months of the year, supported by the positive cash flow. At 5.1 billion euros, net debt was below the year-end level 2023 (December 31, 2023: 5.7 billion euros). Net pension liabilities decreased to 2.6 billion euros (December 31, 2023: 2.7 billion euros). Compared to the beginning of the year, available liquidity increased by around 1 billion euros to 11.4 billion euros and was therefore well above the target range of 8-10 billion euros as of the reporting date.

    Outlook

    The Lufthansa Group expects demand for air travel to remain strong in the remaining months of the year. The load factors booked for November and December are well above the levels observed at the same time last year. Demand remains particularly high in the premium classes, i.e. Business Class and First Class.

    The Lufthansa Group plans to increase its capacity in the fourth quarter further compared to the previous year. For the full year 2024, it expects a capacity of around 91 percent compared to the pre-crisis level.

    The Group also expects to report a positive operating result in the fourth quarter. Overall, the Lufthansa Group is therefore confirming its expectation of achieving an Adjusted EBIT of 1.4 to 1.8 billion euros for the full year.

    Further information

    Further information on the results of individual business segments will be published in the report for the third quarter of 2024. This will be published at the same time as this press release on October 29, 2024, at 7:00 a.m. at

    https://investor-relations.lufthansagroup.com/en/investor-relations.html.

    The traffic figures for the third quarter of 2024 will also be published at 7:00 a.m. at https://investor-relations.lufthansagroup.com/en/financial-reports-publications/traffic-figures.html

     
     
    Jan. – Sept.
    2024
     
    Jan. – Sept. 2023
     
    Change in %
     
    July – Sept.
    2024
     
    July – Sept. 2023
     
    Change in %
    Revenue and result
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Total revenue
     
    €m
     
    28,137
     
    26,681
     
    5
     
    10,738
     
    10,275
     
    5
    Of which traffic revenue
     
    €m
     
    23,578
     
    22,583
     
    4
     
    9,246
     
    8,832
     
    5
    Adjusted EBIT
     
    €m
     
    1,177
     
    2,280
     
    -48
     
    1,340
     
    1,468
     
    -9
    Adjusted EBIT margin
     
    %
     
    4.2%
     
    8.5%
     
    -4.3%p
     
    12.5
     
    14.3
     
    -1.8%p
    EBIT
     
    €m
     
    1,249
     
    2,218
     
    -44
     
    1,461
     
    1,441
     
    1
    Net profit / loss
     
    €m
     
    830
     
    1,606
     
    -48
     
    1,095
     
    1,192
     
    -8
    Earnings per Share
     
     
    0,69
     
    1,34
     
    -49
     
    0,92
     
    1,00
     
    -8
    Key balance sheet and cash flow statement figures
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Total assets
     
    €m
     
    46,439
     
    46,591
     
    0
     
     
     
    Cash flow from operating activities
     
    €m
     
    3,423
     
    4,320
     
    -21
     
    635
     
    1,220
     
    -48
    Net capital expenditures
     
    €m
     
    1,815
     
    2,421
     
    -25
     
    61
     
    550
     
    -89
    Adjusted free cash flow
     
    €m
     
    1,006
     
    1,663
     
    -40
     
    128
     
    592
     
    -78
    Employees
     
     
     
     
     
     
     
     
     
     
     
     
     
     
    Employees as of 30 September
     
    Number
     
    100,518
     
    117,187
     
    -14
     
     
     

    MIL OSI Economics

  • MIL-OSI Economics: AIIB Commits EUR75 Million to Support ENGIE’s Global Renewable Energy Expansion, Decarbonization

    Source: Asia Infrastructure Investment Bank

    The Asian Infrastructure Investment Bank (AIIB) has committed EUR75 million to a EUR500 million sustainability-linked green loan facility to support ENGIE’s global renewable energy portfolio expansion and decarbonization efforts.

    The ENGIE Sustainability Linked Green Loan Project has been co-financed with the International Finance Corporation (IFC) and Société de Promotion et de Participation pour la Coopération Economique (Proparco). This is AIIB’s second engagement with ENGIE, one of the world’s largest multinational electric utilities and independent power producers, following the financing of the 400MW Gujarat Solar Project earlier this year.

    AIIB joins IFC and Proparco to provide a green sustainability-linked loan facility to support the expansion of the group’s clean energy assets in Poland and South Africa, both AIIB members. Proceeds will finance the acquisition, development and construction of over 550MW of installed capacity. In line with sustainability-linked principles, remuneration of the loan will be linked to ENGIE’s global performance in terms of greenhouse gas emissions, renewable energy expansion and occupational health and safety.

    “This project reinforces AIIB’s global mandate, strong partnership and innovative focus on climate finance,” said Najeeb Haider, AIIB Director General, Project and Corporate Finance Clients, Global. “With its agility and international presence in strategic markets, AIIB is uniquely placed to support multinational energy groups like ENGIE to advance the energy transition in Asia and beyond with their investments. We congratulate ENGIE and our cofinancing partners on their respective achievements.”

    Through the loan, AIIB is supporting its members by leveraging ENGIE’s global leadership in green energy and climate transition. ENGIE aims to invest EUR22-25 billion in renewable energy and low-carbon energy solutions between 2023 and 2025. The projects are aligned with AIIB’s Energy Sector Strategy, which directs the Bank to support traditional energy conglomerates and state-owned enterprises as they shift their corporate strategies and business modalities to redirect investments toward the energy transition.

    “To accelerate the energy transition, considerable resources and efforts are needed from many stakeholders,” said Jean-Marc Turchini, Group Head of Corporate Finance at ENGIE. “Our partnership with AIIB is certainly a meaningful contribution and we feel grateful for what they achieved with this financing. We are also proud to highlight the innovative structure of this most recent corporate loan, which includes climate-related targets for scope 3 emissions and a health and safety performance indicator that covers ENGIE employees and subcontractors on all sites, reflecting ENGIE’s sustainability and social ambitions.”

    About AIIB

    The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank whose mission is Financing Infrastructure for Tomorrow in Asia and beyond – infrastructure with sustainability at its core. We began operations in Beijing in 2016 and have since grown to 110 approved members worldwide. We are capitalized at USD100 billion and AAA-rated by the major international credit rating agencies. Collaborating with partners, AIIB meets clients’ needs by unlocking new capital and investing in infrastructure that is green, technology-enabled and promotes regional connectivity.

    MIL OSI Economics

  • MIL-OSI Security: Appeal following shooting in Canning Town

    Source: United Kingdom London Metropolitan Police

    Detectives are appealing for witnesses following a shooting in Canning Town.

    Police were called at about 02:05hrs on Saturday, 26 October to reports of a shooting on Thorne Close, near Rogers Road, E16.

    Officers and London Ambulance Service attended and found two men, aged 25 and 27, injured.

    They were both taken to hospital with gunshot injuries and continue to receive medical treatment. Neither man has life-threatening injuries.

    Detectives from the Specialist Crime Command are investigating.

    Detective Inspector Iain Wallace said: “I would like to hear from anyone who was in the area in the early hours of Saturday – who heard or saw anything suspicious – to come forward.

    “Two men were shot and it is vital that we identify who is responsible.

    “Also, I would ask that you check any dash cam footage to see if you captured the shooting.”

    No arrests have been and enquiries into the circumstances continue.

    Local residents can expect to see additional policing patrols in the area over the coming days.

    Anyone with information that could assist police is asked to call 101 or ‘X’ @MetCC and quote CAD 757/26Oct. You can also provide information anonymously to the independent charity Crimestoppers on 0800 555 111.

    MIL Security OSI

  • MIL-OSI Europe: Luis de Guindos: Interview with ANSA

    Source: European Central Bank

    Interview with Luis de Guindos, Vice-President of the ECB, conducted by Domenico Conti

    29 October 2024

    At the latest press conference, President Lagarde spoke of a series of economic indicators pointing lower and of downside risks to growth. The Survey of Professional Forecasters published by the ECB foresees inflation of 1.9% in 2025, compared with 2.2% in the projections by ECB experts. In this context, will the Governing Council have the option to make back-to-back interest rate cuts, as occurred in September and October?

    In short, on the current economic situation, we don’t have good news with respect to growth but we do have good news with respect to inflation.

    On growth, we have revised down our projections twice – before the summer and in September. We see that the downside risks that we identified are crystallising, mainly because consumption is not recovering as expected. Even though real disposable income has increased because wages are catching up with past inflation, households are not increasing their spending. This could be due to structural factors, including a lack of confidence owing to past inflation, the pandemic or geopolitical risks. But it is clear that the recovery in consumption is not happening at the pace we had previously projected.

    On inflation, we have the opposite happening. The latest figures are good, in terms of both headline inflation and underlying inflation. Most measures of underlying inflation are declining, and we are confident that we will be able to reach our 2% target over the medium term in the course of 2025.

    Regarding possible future cuts, we have been very clear that we will keep all options open at forthcoming meetings, both in terms of the number of cuts and the size of these cuts. But what is most relevant for the transmission of monetary policy and the impact of financial conditions on aggregate demand is the medium-term trajectory, which is evidently that of an easing cycle. Fine-tuning monetary policy is very complex and the important signal is the medium-term trajectory.

    Geopolitical risks will play a role in the forthcoming monetary policy decisions. To what extent are the risks associated with the conflicts in the Middle East and the risks of a further escalation in trade tariffs pushing the ECB to take a prudent approach in reducing interest rates?

    Geopolitical factors play a very important role in our analysis. For example, the conflict in the Middle East has an impact on energy prices and upcoming elections could have an impact on international trade, global growth and inflation. This is one reason why we have to be very prudent with our decisions. When you are in a dark room full of uncertainty, for example because of geopolitical risks that you cannot control, you have to take very careful steps.

    Another important element is fiscal policy. Governments are now submitting their medium-term budgetary plans to the European Commission. This will give us more clarity on the fiscal outlook, which is an element that we take into consideration in our analysis and decision-making. So geopolitical risks, the possibility of distortions in international trade plus what will happen with fiscal policy will all feed into our decisions in the near future.

    In its new operational framework that came into force in September 2024, the ECB anticipates that a substantial contribution to providing liquidity to the banking sector will come from a structural portfolio of securities and from new longer-term refinancing operations, under conditions to be defined at a later date. What point has the discussion reached and what guidance is there?

    The operational framework has to be used to implement our monetary policy, it cannot condition it. And we have said very clearly that all monetary policy instruments in our toolkit remain available to us. This will include, for example, non-conventional measures, such as targeted longer-term refinancing operations and quantitative easing.

    Right now, we are in a situation of ample liquidity, which we are gradually reducing by discontinuing reinvestments, which will come to a complete halt at the beginning of next year. Once that liquidity has been significantly reduced, a combination of the monetary policy instruments at our disposal will help us deliver enough liquidity to the banking system.

    In my view, when we discuss the structural portfolio, we will need to take into account the actual liquidity situation of the banks and look not only at the average, but also at the dispersion in the banking sector. We have not decided on the size of the structural portfolio, but it will need to be large enough to deliver sufficient liquidity to the banking system.

    The latest monetary policy strategy review in 2021 took place at a time of strong deflationary pressures linked to various factors, including digitalisation and globalisation. Since then the landscape has changed. We find ourselves in a fragmented geopolitical context with the return of inflationary shocks. How will all this be reflected in the coming monetary policy strategy review? When will the discussion begin and what topics will it cover?

    We have established a couple of workstreams at the technical level to examine these factors, namely how the landscape has changed, how the new environment could have an impact on inflation, and our evolving policy toolkit. But this will not be discussed by the Governing Council until next year, with conclusions expected in the second half of 2025.

    What is crystal clear is that the definition of price stability as 2% inflation over the medium term will not be up for debate. And several other elements, such as the importance of financial stability considerations or accounting for climate change in our work, are already established. Instead, this review will mostly be an assessment of the previous strategy review while considering new elements, such as the changed economic and inflation environment, the possibility of deglobalisation and other structural elements that could affect the inflation outlook.

    Importantly, we will look at the consequences of measures we have used in the past. For every monetary policy decision, we need to look not only at short-term effects but also further ahead at possible unwanted effects. Quantitative easing, for example, is an instrument that proved to be very useful to fight deflation and the impact of the pandemic, but it also caused some side effects. In that respect, now that we have started the opposite process of quantitative tightening, we have much more information on the potential consequences of quantitative easing.

    Are you referring to fiscal side effects?

    No. I’m referring, for instance, to the impact on financial stability or on national central banks’ profit and loss accounts. These are side effects that can be better taken into consideration and that were not obvious at the time.

    Italy has seen inflation fall to below 2% from a high of close to 12% two years ago, and its growth rate is in line with the European average. While real disposable income is improving, investment is feeling the effects of a still restrictive monetary policy and politicians have criticised the ECB’s cautious stance in the last few months. How would you explain to Italian politicians and households the need for a cautious approach in reducing interest rates, and how do you plan to reassure them about the current transition from still restrictive interest rates to a more neutral stance?

    Above all else, we listen to all opinions carefully and with an open mind. The ECB and central banks are independent institutions, meaning that they need to display an additional level of responsibility and accountability.

    What I would say to Italian and European citizens is that it’s important to be cautious and prudent. We have reduced interest rates and the trajectory of our monetary policy is very clear, but there is a huge amount of uncertainty and we cannot make mistakes. That’s why a gradual approach to implementing monetary policy is essential.

    That being said, I’d like to reassure them that things are moving in the right direction. Inflation has fallen significantly. Most people look more closely at price levels than at inflation, but at the end of the day, current price levels are a consequence of past inflation. We can’t claim victory yet, but we have made good progress so far. And despite an economic slowdown, we have so far managed to reduce inflation without causing a recession in the euro area. When you look at the labour market, the situation remains positive. So I hope that in the medium term it will become more evident that we are on the right track.

    In its draft budget, the Italian government is seeking a contribution of around €3.5 billion from the banking sector by targeting deferred tax assets (DTAs). Has the ECB been consulted on the merits of this approach and what guidance is being formulated on this measure?

    In general, our assessment of banking sector taxes is quite clear from the legal opinions we have issued on proposals by several countries. Our view is that such taxes should not impair banks’ solvency or the transmission of monetary policy in terms of hampering the flow of credit to the real economy.

    In this specific case, we don’t have the definitive version of the tax yet, so it’s difficult to form an opinion about it. But I hope that solvency will be one of the items taken into consideration, which would be positive from our perspective.

    In my view, the design of the previous version of the tax was balanced, for example, because it made tax revenues and bank solvency compatible. Of the many approaches taken by other European countries that imposed taxes on the banking sector, I believe this was the most balanced one.

    Completing the banking union is one of the most urgent objectives that will make Europe more resilient and more competitive. Despite this, a cross-border merger like the potential merger between Unicredit and Commerzbank currently under discussion is treated as a national matter in both countries. What lessons can we learn from this and why is a cross-border merger between European banks still hitting the headlines in Europe in 2024?

    Given the importance of banks’ funding for the real economy, completing the banking union should be the number one priority on the European Union’s economic agenda. I acknowledge that there are political hurdles to achieving that, but it will be very difficult to have a real economic and monetary union without a banking union. Greater coordination of fiscal policy, for example through a common fiscal instrument or progress towards the capital markets union, would also be important.

    If you want a single banking market, you need to have genuine pan-European banks. This is why cross-border consolidation of the banking sector is important. I don’t discuss the merits of individual cases, but in my view, a European approach should prevail over a national one. That’s the way forward for European integration.

    In any case, our assessment of any merger and acquisition transaction is always based exclusively on prudential and solvency criteria. This is the guiding principle for us, based on European regulation.

    The Italian government has voiced its support for the merger between Unicredit and Commerzbank, which would strengthen European banking consolidation. At the same time, Italy is the only Member State that hasn’t ratified the treaty to reform the European Stability Mechanism (ESM), which is an important element in completing the banking union. How important will it be to remove this obstacle?

    In my previous answer, I referred to how important it is for a European approach to prevail over a national one. But this principle has to be consistent from all angles and in all kinds of situations. In my opinion, a pro-European approach to the integration of the economy, the banking system and the capital markets should be the one that prevails for all the items under discussion, including ESM reform. Ratifying the reformed ESM Treaty would be a clear pro-European decision.

    MIL OSI Europe News

  • MIL-OSI Asia-Pac: MOFA thanks countries that have publicly expressed concern over Taiwan Strait situation and stressed importance of cross-strait peace and stability in concerted effort to safeguard rules-based international order

    Source: Republic of China Taiwan 3

    MOFA thanks countries that have publicly expressed concern over Taiwan Strait situation and stressed importance of cross-strait peace and stability in concerted effort to safeguard rules-based international order

    Date:2024-10-19
    Data Source:Department of Policy Planning

    October 19, 2024  
    No. 359  

    The Ministry of Foreign Affairs (MOFA) sincerely appreciates that the administrations and friendly members of parliament of more than 30 countries, as well as the European Union, have publicly expressed concern over the cross-strait situation or stressed the importance of maintaining peace and stability after China once again recently launched military drills to intimidate Taiwan. Countries including Taiwan’s diplomatic allies, the United States, Japan, the United Kingdom, France, Germany, Australia, New Zealand, Lithuania, and the Republic of Korea variously urged China to exercise restraint and stated that differences should be resolved through dialogue and not the threat of force or coercion. 
     
    The maintenance of peace and stability across the Taiwan Strait is in the common interests of both sides of the strait and the international community. There is a high degree of consensus within global society over the importance of preserving peace and stability across the Taiwan Strait and throughout the Indo-Pacific. MOFA once again calls on China to face up to the reality of the existence of the Republic of China (Taiwan) and to respect the Taiwanese people’s choice of a free and democratic way of life, willingness to engage in international cooperation alongside China, and goodwill toward maintaining regional security and pursuing peace and shared prosperity. It urges China to stop using use military provocation or other means to threaten and suppress Taiwan and disrupt the regional status quo. Only this can facilitate the positive development of cross-strait relations and satisfy the expectations of the international community.
     
    MOFA calls on all nations to continue to voice concern over the cross-strait situation and support Taiwan. Taiwan will further work with its diplomatic allies and like-minded partners to safeguard the rules-based international order and jointly advance regional peace, stability, and prosperity. (E)

    MIL OSI Asia Pacific News

  • MIL-OSI Asia-Pac: MOFA response to joint declaration by G7 defence ministers expressing concern over China’s joint military exercise around Taiwan and reaffirming importance of cross-strait peace and stability

    Source: Republic of China Taiwan 3

    MOFA response to joint declaration by G7 defence ministers expressing concern over China’s joint military exercise around Taiwan and reaffirming importance of cross-strait peace and stability

    October 20, 2024  

    The Group of Seven (G7) defense ministers held a meeting in Naples, Italy, from October 18 to 20. In a joint declaration issued on October 19, they expressed concern over China’s provocative actions, particularly the recent People’s Liberation Army military drills around Taiwan. They reaffirmed that maintaining peace and stability across the Taiwan Strait was indispensable to international security and prosperity and called for the peaceful resolution of cross-strait issues. The Ministry of Foreign Affairs highly welcomes and sincerely appreciates the G7 member states’ staunch support for maintaining the peaceful status quo across the Taiwan Strait. 
     
    As a responsible member of the Indo-Pacific community, Taiwan will continue to strengthen cooperation with G7 member countries and take concrete actions to uphold the core values of democracy, freedom, human rights, and the rule of law. It will work in solidarity with like-minded partners to safeguard the rules-based international order and promote prosperity and stability in the region and throughout the world.

    MIL OSI Asia Pacific News

  • MIL-OSI: Interim Financial Report Q1-Q3 2024

    Source: GlobeNewswire (MIL-OSI)

    • Updated strategy and new long-term targets
    • Earnings per share declined by 2% to DKK 60.5 (Q1-Q3 2023: DKK 62.0)
    • The net profit was down by 1% to DKK 4,044m (Q1-Q3 2023: DKK 4,106m)
    • Net interest income rose by 1% to DKK 7,211m (Q1-Q3 2023: DKK 7,155m)
    • Core income was up by 1% to DKK 10,307m (Q1-Q3 2023: DKK 10,244m)
    • Core expenses rose by 6% to DKK 4,768m (Q1-Q3 2023: DKK 4,498m)
    • Loan impairment charges DKK 13m (Q1-Q3 2023: DKK 96m)
    • Capital ratio at 22.6%, of which common equity tier 1 capital ratio of 17.2% (Q1 – Q3: 2023: 20.9% and 16.7%, respectively)
    • Expected earnings per share in 2024 upgraded on 11 October to DKK 75-80 from the upper end of the range of DKK 64-76
    • Share buy-back programme of DKK 1.5bn completed on 3 October 2024.

    Summary

    ”Earlier in the month, Jyske Bank upgraded its outlook for 2024 due to a continued positive development. We are now launching a strategy to become an even better bank for our customers,” says Lars Mørch, CEO and Managing Director, and continues:

    “With a strong foundation in the Danish market and a number of positions of strength in servicing both personal and corporate customers, Jyske Bank will over the coming years do more of what we have shown that we are good at and accelerate development in the areas where we want to do better.“

    “We support customers, e.g., in their sustainable transition and use digitization proactively to the benefit of the customers and to increase efficiency. Based on the strategy, we have set financial targets according to which we aim to obtain a return on tangible equity of 10% based on a cost/income ratio below 50 supplemented by an attractive distribution to shareholders,” says Lars Mørch, CEO and Managing Director.

    Updated strategy
    Jyske Bank utilizes the opportunities that arise to create value for customers, and the Group will seek out opportunities for cooperation and, in doing so, be an attractive partner for other players in the sector.

    In the lead up to the strategy announcement, the Group has set up the organisation so that customer orientation is strengthened throughout the value chain and efforts and resources are efficiently channelled to where it benefits the customers the most and contributes the most to the Group’s profitability. At the same time, risk management and digitization have been strengthened.

    Long-term financial targets
    Jyske Bank expects a return on tangible equity of 10% in 2028 based on a presupposed common equity tier 1 capital ratio at the lower end of 15%-17%, a cost/income ratio below 50, and a normalised cost of risk of 8bp p.a. The ambition to distribute approx. 30% of shareholders’ result supplemented by share buy-backs is maintained. In the coming years, the Danish economy is expected to be dominated by lower interest rates and balanced growth with high levels of employment and moderate inflation.

    The targets reflect an underlying improvement in profitability aimed at mitigating expectations of significantly lower interest rates over the coming years. The targets will be achieved through stronger customer-orientation and focus on capital-light income as well as structural cost measures, ensuring continued investment in new technology and higher efficiency.

    Other initiatives
    Prior to the update of its strategy, Jyske Bank changed its organisation to obtain stronger client orientation, higher professionalism in the Group’s control set-up and higher development and implementation efficiency. Subsequently, the Group Executive Board will consist of the CEO and Managing Director, a Managing Director of Corporate Clients and Capital Markets, a Managing Director of Personal Clients and Wealth Management, a Managing Director of Digitization and Operations as well as a Chief Risk Officer.

    In continuation of the organisational change, Erik Gadeberg was appointed new member of the Group Executive Board as Managing Director, Corporate Clients and Capital Markets. Erik Gadeberg has prior to this held the position as Managing Director of Capital Markets at Jyske Bank. He joined Jyske Bank in 1990 and has primarily been employed in functions associated with Capital Markets, including large corporates and institutional clients.

    Managing Director Per Skovhus retired at the end of June 2024. Jacob Gyntelberg will take office on 6 December 2024 as Managing Director, Chief Risk Officer (CRO) and new member of the Group Executive Board. Since 2021, Jacob Gyntelberg has been Director of Economic and Risk Analysis at the European Banking Authority (EBA). During the period 2019-2021, Jacob Gyntelberg was Deputy Chief Risk Officer at Nordea, and previously he held executive positions at Danske Bank, Bank for International Settlements (BIS), Nykredit and Danmarks Nationalbank.

    In 2023, Jyske Bank acquired PFA Bank, and the integration was in the first half of 2024 successfully completed according to plan. The IT migration to Bankdata from BEC was implemented in the second quarter of 2024 when also administration and management of PFA Invest were taken over by BankInvest to ensure smooth transfer for the clients. The approach underlines Jyske Bank’s focus on client requirements which contributed to Jyske Bank’s Private Banking clients having been Denmark’s most satisfied clients for the past nine years running according to the research company Voxmeter.

    In September 2024, Jyske Finans, which manages the Group’s leasing activities, announced the acquisition of a leasing portfolio from Opendo. The acquisition supports Jyske Finans’ leading position in the structurally growing leasing market with higher volume to the portfolio of cars on operational leasing contracts.

    In Q1-Q3 2024, Jyske Bank introduced additional attractive savings products and sharper prices and offers for home loan products to personal clients. The flexible mortgage loan, Jyske Prioritet+, was highlighted by TÆNK, the Danish Consumer Council, with the rating ’Recommend’. Clients’ credit cards were also improved through travel insurance and purchase warranty as well as VISA’s loyalty programme with approx. 1,500 stores and web shops.

    Jyske Bank’s target is to be an active and constructive part of the green transition and Jyske Bank’s target is net zero CO2 emission across business-oriented activities in the form of loans and investments not later than in 2045 and 2050, respectively. In addition, Jyske Bank aims at lending growth contributing to offset climate changes, and the CO2 emission from Jyske Bank’s own activities must be reduced by 65% from 2020 to 2030.

    Earnings per share DKK 60.5 in Q1-Q3 2024
    Earnings per share were DKK 60.5 against DKK 62.0 the previous year, corresponding to a net profit of DKK 2,623m or a return of 11.8% p.a. on equity against DKK 2,488m and 13.5% p.a., respectively in Q1-Q3 2023. Despite a lower pre-tax profit, the tax expense increased due to a higher special tax.

    The reason for the lower results is particularly higher costs as a result of sector-wide, collectively prescribed salary increases and the acquisition of PFA Bank as well as lower gains from the sale of leasing cars. The development in Q1-Q3 2024 reflects a Danish economy growing moderately with continued high employment. The economy withstood interest rate hikes in 2022 and 2023, and an improved inflation outlook in June 2024 paved the way for Danmarks Nationalbank’s first interest rate cut for several years, followed up by further cuts in September and October.

    Jyske Bank’s business volume showed an overall declining development in loans and deposits in Q1-Q3 2024, supplemented by a sizeable increase in the investment area. Bank loans decreased 5% due to lower loans to personal clients compared with end-2023. Bank deposits fell by 2% due to lower time deposits from corporate clients. Nominal mortgage loans were roughly unchanged since lower lending to personal clients were offset by a higher amount of lending to corporate clients. Assets under management rose by 14% due to a favourable development in the financial markets and net sales of investment solutions.

    Core income rose by 1% relative to Q1-Q3 2023 due to a slight increase in most income items. Net interest income rose by 1% due to the higher level of interest rates. Net fee and commission income was up by 1% due to the acquisition of PFA Bank and a higher amount of assets under management. Value adjustments still contributed positively due to the development in the financial markets. Other income increased due to higher share dividends whereas a gradual normalisation of favourable sales conditions in the leasing car market caused a decline in income from operating lease (net).

    Core expenses rose by 6% compared to Q1-Q3 2023. The increase can primarily be attributed to sector-wide, collectively prescribed salary increases of 3.7%, the derived effect from the abolishment of All Prayers Day and the effect from the acquisition of PFA Bank. In addition, the level of one-off items was at an elevated level.

    Loan impairment charges amounted to DKK 13m in Q1-Q3 2024 compared with DKK 96m in Q1-Q3 2023. Management’s estimates relating to loan impairment charges were in Q1-Q3 2024 reduced by DKK 151m to DKK 1,783m as the result of lower macroeconomic risks. The credit quality is still solid with a low level of non-performing exposures.

    At the end of Q1-Q3 2024, Jyske Bank’s common equity tier 1 capital ratio was 17.2%, which is above the targeted range of 15%-17%. In Q1-Q3 2024, Jyske Bank distributed a dividend of DKK 500m or DKK 7.78 per share and executed a share buy-back programme of DKK 1.5bn which was completed in early October. The share buy-back programme was the first since the acquisition of Handelsbanken Denmark and reflects a restored capital base supported by two capital issues in the first quarter of 2024. The issues contributed to an increase in the total capital ratio to 22.6%, above the targeted range at 20%-22%.

    2024 outlook
    For 2024, Jyske Bank estimates a net profit in the range of DKK 5.0bn-5.3bn, corresponding to earnings per share in the range of DKK 75-80. The outlook was in October 2024 upgraded from a net profit in the upper end of the range of DKK 4.3bn-5.1bn, corresponding to earnings per share in the upper half of the range of DKK 64-76. The upward revision was attributed to favourable financial markets and a solid credit quality.

    Core income is expected to decline in 2024, in particular as a result of lower value adjustments which were at a historically high level in 2023. Expectations mirror moderate growth in the Danish economy and a reduction of Danmarks Nationalbank’s deposit rate at 1.0 percentage point in 2024. Core expenses inclusive of non-recurring costs are expected to be slightly higher in 2024 compared with 2023. Non-recurring expenses for the integration of Handelsbanken Denmark and PFA Bank are expected to total DKK 0.1bn.

    As in 2023, loan impairment charges are expected to be at a low level in 2024. The expectations involve uncertainty and depend, for instance, on macroeconomic circumstances and the development in the financial markets.

    Webcast and conference call
    Jyske Bank will host a conference call in English targeting investors and analysts today at 2.00 p.m. CET (link). Conference call and presentation will be available via jyskebank.com/investorrelations.

    Yours faithfully,
    Jyske Bank

    Contact:
    Lars Mørch, CEO and Managing Director, tel. +45 89 89 20 01
    Birger Krøgh Nielsen, CFO, tel. +45 89 89 64 44

    Attachments

    The MIL Network

  • MIL-OSI: IDEX Biometrics interim report for the third quarter of 2024

    Source: GlobeNewswire (MIL-OSI)

    Oslo, Norway – 29 October 2024 – IDEX Biometrics ASA’s interim report for the third quarter is attached to this notice (link below). The interim report is also available on the IDEX Biometrics website: www.idexbiometrics.com/investors/interim-results/

    A webcast presentation of the interim report will be held by Catharina Eklof, Chief Executive Officer, today at 09:00 CET. The webcast presentation is attached to this notice (link below), and can be viewed at the following link:

    https://idexbiometrics.videosync.fi/q3-2024

    “Transitioning into the CEO role this quarter, my focus has been on executing our transformation program and implementing key initiatives to achieve the targeted cash quarterly operating expense run rate of $2.5 million. By the end of the third quarter, IDEX had executed on targeted reorganization initiatives, significantly reducing operating expenses. We have consolidated our technology and administrative teams into the UK and Europe, and optimized our entire workforce to capture the fast growing opportunity across the APAC region.” Said Catharina Eklof, Chief Executive Officer at IDEX Biometrics.

    Ms. Eklof added, “On the customer side, we continue to expand our manufacturing partners and solution integrators with our open software platforms and flexible operating system. Focus over the last quarters has been on supporting manufacturers from certification to industrialized production. As a result, KONA I has achieved Mastercard approval for the world first metal biometric card, based on the IDEX Pay platform. A first commercial program is now in the planning phase of being rolled out in Asia.”

    In September, IDEX demonstrated a successful live transaction on the India based RuPay network with IDEX Pay, together with our manufacturing partners. This is a leading indicator of the IDEX biometric platform readiness to bring trusted identity solutions to consumers around the world.

    Financials:

    • Revenues in the third quarter totaled $0.1M.
    • Net Income in Q3 was $1.4M with Adjusted Net Loss of $4.8M. Adjustments are related to the restructuring charges and the derivative value changes.
    • Operating expenses reduced to $4.1M, a reduction of $2.0M from last quarter.
    • Restructuring cost during Q3 were $0.4M including severance and other items.  Restructuring gain of $0.7M resulting from two lease cancellations.
    • On track to achieve a cash operating run-rate of $2.5M per quarter by the end of this year.
    • Recorded a gain of $5.5M from a change in the derivative value related to outstanding warrants and the favorable renegotiation of our outstanding convertible bond.

    For further information contact:
    Marianne Bøe, Head of Investor Relations
    E-mail: ir@idexbiometrics.com
    Tel: + 47 67 83 91 19

    About IDEX Biometrics
    IDEX Biometrics ASA (OSE: IDEX) is a global technology leader in fingerprint biometrics, offering authentication solutions across payments, access control, and digital identity. Our solutions bring convenience, security, peace of mind and seamless user experiences to the world. Built on patented and proprietary sensor technologies, integrated circuit designs, and software, our biometric solutions target card-based applications for payments and digital authentication. As an industry-enabler we partner with leading card manufacturers and technology companies to bring our solutions to market. 

    For more information, visit www.idexbiometrics.com

    TRADEMARK STATEMENT
    IDEX, TrustedBio, IDEX Biometrics and the IDEX logo are trademarks owned by IDEX Biometrics ASA. All other brands or product names are the property of their respective holders.

    Attachments

    The MIL Network

  • MIL-OSI: Webcast details for Orrön Energy’s Q3 presentation

    Source: GlobeNewswire (MIL-OSI)

    Orrön Energy AB (“Orrön Energy”) will publish its financial report for the third quarter 2024 on Wednesday, 6 November 2024 at 07:30 CET, followed by a webcast at 14.00 CET.

    Listen to Daniel Fitzgerald, CEO and Espen Hennie, CFO commenting on the report and describing the latest developments in Orrön Energy at a webcast on 6 November 2024 at 14:00 CET, followed by a question-and-answer session.

    Registration for the webcast presentation is available on the website and the below link:
    https://vimeo.com/event/4678321/54544efc16

    For further information, please contact:

    Robert Eriksson
    Director Corporate Affairs and Investor Relations
    Tel: +46 701 11 26 15
    robert.eriksson@orron.com

    Jenny Sandström
    Communications Lead
    Tel: +41 79 431 63 68
    jenny.sandstrom@orron.com

    Orrön Energy is an independent, publicly listed (Nasdaq Stockholm: “ORRON”) renewable energy company within the Lundin Group of Companies. Orrön Energy’s core portfolio consists of high quality, cash flow generating assets in the Nordics, coupled with greenfield growth opportunities in the Nordics, the UK, Germany and France. With significant financial capacity to fund further growth and acquisitions, and backed by a major shareholder, management and Board with a proven track record of investing into, leading and growing highly successful businesses, Orrön Energy is in a unique position to create shareholder value through the energy transition.

    Forward-looking statements
    Statements in this press release relating to any future status or circumstances, including statements regarding future performance, growth and other trend projections, are forward-looking statements. These statements may generally, but not always, be identified by the use of words such as “anticipate”, “believe”, “expect”, “intend”, “plan”, “seek”, “will”, “would” or similar expressions. By their nature, forward-looking statements involve risk and uncertainty because they relate to events and depend on circumstances that could occur in the future. There can be no assurance that actual results will not differ materially from those expressed or implied by these forward-looking statements due to several factors, many of which are outside the company’s control. Any forward-looking statements in this press release speak only as of the date on which the statements are made and the company has no obligation (and undertakes no obligation) to update or revise any of them, whether as a result of new information, future events or otherwise.

    Attachment

    The MIL Network

  • MIL-OSI: IDEX Biometrics appoints new Chief Financial Officer

    Source: GlobeNewswire (MIL-OSI)

    Oslo, Norway – October 29, 2024 – IDEX Biometrics has appointed Kristian Flaten as Chief Financial Officer, effective November 1, 2024.

    Kristian Flaten brings over 25 years of financial leadership and experience with international business and financing, including from Asian growth markets, a strong focus for IDEX Biometrics. He has a proven track record in corporate finance, debt financing and business development in growth companies. 

    Kristian has a background as CFO with Quantafuel ASA, recycling plastic waste, and as VP Corporate Finance with BW Offshore, oilfield services. Additionally, he has experience from the financial sector with Export Finance Norway and Handelsbanken. 

    Kristian holds a Master of Science from NHH (Norwegian School of Economics), with majors in Finance and Strategy. He will be based at IDEX Biometrics headquarters in Oslo.

    “We are most pleased to welcome Kristian to our executive team,” says Catharina Eklof, Chief Executive Officer of IDEX Biometrics. “Bringing on Kristian is an important step in the business transformation of IDEX. Kristian comes with critical experience from growth companies and his proven track record will be key as we continue to evolve IDEX, and drive innovation in biometric platform and software solution expansion to key markets.” 

    “I am excited to join IDEX Biometrics at this pivotal time of the company’s growth journey,” comments Kristian Flaten. “I look forward to working with the talented team to support the company’s strategic initiatives.” 

    Kristian Flaten is succeeding John Kurtzweil, who will continue to support the company in an advisory role. The company extends its warm gratitude to John for his excellent contributions during his tenure and for ensuring a smooth transition to Kristian.

    For further information contact:

    Marianne Bøe, Head of Investor Relations
    Email: ir@idexbiometrics.com
    Tel: + 47 67 83 91 19

    About IDEX Biometrics
    IDEX Biometrics ASA (OSE: IDEX) is a global technology leader in fingerprint biometrics, offering authentication solutions across payments, access control, and digital identity. Our solutions bring convenience, security, peace of mind and seamless user experiences to the world. Built on patented and proprietary sensor technologies, integrated circuit designs, and software, our biometric solutions target card-based applications for payments and digital authentication. As an industry-enabler we partner with leading card manufacturers and technology companies to bring our solutions to market.
    For more information, visit www.idexbiometrics.com

    Trademark Statement
    IDEX, IDEX Biometrics and the IDEX logo are trademarks owned by IDEX Biometrics ASA. All other brands or product names are the property of their respective holders.

    About this notice:
    This notice was issued by Marianne Bøe, Head of Investor Relations, on 29 October 2024 at 08:10 on behalf of IDEX Biometrics ASA.

    The MIL Network

  • MIL-OSI China: MOFA thanks countries that have publicly expressed concern over Taiwan Strait situation and stressed importance of cross-strait peace and stability in concerted effort to safeguard rules-based international order

    Source: Republic of Taiwan – Ministry of Foreign Affairs

    MOFA thanks countries that have publicly expressed concern over Taiwan Strait situation and stressed importance of cross-strait peace and stability in concerted effort to safeguard rules-based international order

    • Date:2024-10-19
    • Data Source:Department of Policy Planning

    October 19, 2024  

    No. 359  

    The Ministry of Foreign Affairs (MOFA) sincerely appreciates that the administrations and friendly members of parliament of more than 30 countries, as well as the European Union, have publicly expressed concern over the cross-strait situation or stressed the importance of maintaining peace and stability after China once again recently launched military drills to intimidate Taiwan. Countries including Taiwan’s diplomatic allies, the United States, Japan, the United Kingdom, France, Germany, Australia, New Zealand, Lithuania, and the Republic of Korea variously urged China to exercise restraint and stated that differences should be resolved through dialogue and not the threat of force or coercion. 

     

    The maintenance of peace and stability across the Taiwan Strait is in the common interests of both sides of the strait and the international community. There is a high degree of consensus within global society over the importance of preserving peace and stability across the Taiwan Strait and throughout the Indo-Pacific. MOFA once again calls on China to face up to the reality of the existence of the Republic of China (Taiwan) and to respect the Taiwanese people’s choice of a free and democratic way of life, willingness to engage in international cooperation alongside China, and goodwill toward maintaining regional security and pursuing peace and shared prosperity. It urges China to stop using use military provocation or other means to threaten and suppress Taiwan and disrupt the regional status quo. Only this can facilitate the positive development of cross-strait relations and satisfy the expectations of the international community.

     

    MOFA calls on all nations to continue to voice concern over the cross-strait situation and support Taiwan. Taiwan will further work with its diplomatic allies and like-minded partners to safeguard the rules-based international order and jointly advance regional peace, stability, and prosperity. (E)

    MIL OSI China News

  • MIL-OSI China: MOFA response to joint declaration by G7 defence ministers expressing concern over China’s joint military exercise around Taiwan and reaffirming importance of cross-strait peace and stability

    Source: Republic of Taiwan – Ministry of Foreign Affairs

    MOFA response to joint declaration by G7 defence ministers expressing concern over China’s joint military exercise around Taiwan and reaffirming importance of cross-strait peace and stability

    October 20, 2024  

    The Group of Seven (G7) defense ministers held a meeting in Naples, Italy, from October 18 to 20. In a joint declaration issued on October 19, they expressed concern over China’s provocative actions, particularly the recent People’s Liberation Army military drills around Taiwan. They reaffirmed that maintaining peace and stability across the Taiwan Strait was indispensable to international security and prosperity and called for the peaceful resolution of cross-strait issues. The Ministry of Foreign Affairs highly welcomes and sincerely appreciates the G7 member states’ staunch support for maintaining the peaceful status quo across the Taiwan Strait. 

     

    As a responsible member of the Indo-Pacific community, Taiwan will continue to strengthen cooperation with G7 member countries and take concrete actions to uphold the core values of democracy, freedom, human rights, and the rule of law. It will work in solidarity with like-minded partners to safeguard the rules-based international order and promote prosperity and stability in the region and throughout the world.

    MIL OSI China News

  • MIL-OSI Europe: Income and Living Conditions 2022 (SILC): Indebtedness – More than one in eight people lived in a household with at least one arrear in 2022

    Source: Switzerland – Department of Home Affairs

    In 2022, 12.1% of the population lived in a household with at least one arrear. The most common arrears were for taxes and health insurance premiums. The most common type of debt was vehicle leases, with 14.5% of the population living in a household leasing a vehicle. Next came mortgages financing real estate other than main residence, at 12.6%. The main reasons for people taking out a loan vary depending on their income. These are some of the findings from the Survey on Income and Living Conditions (SILC) conducted by the Federal Statistical Office (FSO).

    MIL OSI Europe News

  • MIL-OSI Russia: GUU held the second strategic session for MBA students in the Republic of Belarus

    Translation. Region: Russian Federation –

    Source: State University of Management – Official website of the State –

    The State University of Management held the second strategic session for students of the professional retraining program “Master of Business Administration (MBA)”, studying within the quota established by the Government of the Russian Federation.

    The event was held at the Representative Office of Rossotrudnichestvo in the Republic of Belarus – the Russian House in Minsk.

    The strategic session “Effective tools for analyzing business processes of an organization”, conducted by the head of the department of industrial organizations management of the Institute of Industry Management Victoria Borisova and associate professors of the department of project management of the Institute of Industry Management Natalia Titova and Tatyana Chernova, is dedicated to tools for constructing, analyzing and identifying problems in existing business processes in an organization.

    During the two-day face-to-face session, MBA students also developed recommendations and projects for improving business processes in their organizations. More than 50 students of the program took part in the event.

    Let us recall that the first strategic session for MBA program students was held in April of this year.

    The State University of Management trains foreign citizens in additional professional education programs within the framework of the Eurasian Network University, whose activities are aimed at creating and developing a single educational space of EAEU universities. More than 250 students have already been trained in various additional professional programs in 2024.

    Subscribe to the TG channel “Our GUU” Date of publication: 10/29/2024

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

    MIL OSI Russia News

  • MIL-OSI Europe: President Erdoğan’s Message on UN Day

    Source: Republic of Turkey

    Following is the message President Recep Tayyip Erdoğan issued on October 24, United Nations Day and the 79th Anniversary of the Establishment of the United Nations Organization:
    “I congratulate the UN Secretary-General and the UN staff on the 79th anniversary of the establishment of the United Nations (UN) Organization.
    The Organization commemorates its anniversary unfortunately with feelings of bitterness at a time when the number of UN officials who have lost their lives in Gaza and other conflict zones has reached record levels, peacekeeping missions have been attacked, and even the Secretary-General himself has been declared “persona non grata.”
    And yet, the destruction caused by conflicts all over the world, the ever-expanding and deepening state of hunger and poverty, Islamophobia and xenophobia that permeate the world, are increasing the duties and responsibilities that fall upon the United Nations. The proper fulfillment of these responsibilities can only be possible by ensuring appropriate conditions under which all the main organs of the United Nations, including the Security Council, can perform their functions.
    The United Nations, which was established 79 years ago today to protect future generations from wars and of which Türkiye was among the founders, is unfortunately in a state of inertia due to the inability of the Security Council, the body empowered with the broadest authority for this purpose, in the face of developments that trample both international law and human dignity. The Security Council, which has failed to take steps to end the genocide in Gaza, emboldens the perpetrators with this stance and undermines faith in the rules-based international system. It is vital that the Security Council takes and implements the measures required by international law, before the current situation in the Middle East turns into an even more devastating, large-scale crisis.
    Türkiye is ready to support all efforts to make the United Nations, which it considers to be the cornerstone of multilateralism, the hope for humanity again, and to transform the international system into an effective structure based on the principles of justice, equality and solidarity, free from double standards.
    We are determined to continue our concrete contributions to mediation, conflict prevention and peacekeeping, fight against terrorism, migration management, sustainability and environmental protection as well as to initiatives such as the Alliance of Civilizations, carried out under the umbrella of the Organization. The increasing presence of the UN in our country, especially in Istanbul, is another tangible manifestation of our enhanced cooperation with the UN.
    With these thoughts, I congratulate October 24, the United Nations Day, commemorate respectfully the UN employees who lost their lives on duty, and wish that the 79th anniversary of the Organization be auspicious for all humanity.”

    MIL OSI Europe News

  • MIL-OSI Europe: President Erdoğan’s Message on 29 October Republic Day

    Source: Republic of Turkey

    My dear citizens living at home and abroad,
    My treasured friends sharing our happiness on this joyful day,
    I salute you all with my most heartfelt feelings, affection and respect.
    I congratulate our each and every citizen living in our country and all across the world on 29 October Republic Day.
    Also, on behalf of my country and nation, I thank all our guests and friends who share our joy in our country and in different geographies of the world.
    Today we are experiencing the happiness and rightful pride of marking the first anniversary of the new century of our Republic.
    Happy 101st anniversary of the proclamation of our Republic!
    I remember with gratitude all the founding cadres of our state, particularly Ghazi Mustafa Kemal Atatürk, the founder of our Republic, the final and eternal link of our thousands-year-long sequence of states.
    I wish Allah’s mercy upon our veterans and martyrs, who have sacrificed themselves for our independence and future since Malazgirt up to date.
    Our each brother and sister, who has sacrificed themselves for the sake of our future, especially our martyrs we lost in the attack on the Turkish Aerospace Industries’ facility, the leader organization of our defense industry, will always live in our hearts.
    As the poet who says, ‘People grow in cradles, to lie in a grave; and heroes sacrifice themselves, to make the homeland live,’ points out:
    I remember with grace all our heroes, who contributed to the establishment, sustainment and them leaving indelible marks in history of our states that reigned over the vast borders of our beloved geography.
    We are determined to make the independent, strong, dignified and prosperous Türkiye, which is the legacy of our states extending from the extending from the Seljuks to the Ottomans and finally to the Republic on the Anatolian lands, live forever.
    Our nation has a deep-rooted statecraft of over 2,200 years, which has manifested itself in the 16 stars on our presidential seal.
    We aim to use, develop and empower this heritage in a way to make the biggest contribution to the common heritage of the humanity with the participation of our kinsmen and friends.
    We will further embrace our civilizational values and this ancient historical perspective of our nation in order for peace, calm, security and justice prevail in our country, region and the world.
    Neither terrorist organizations nor those, who seek to wreak carnage in our region with expansionist ambitions, or imperialists who spoil them by supporting them can prevent us from achieving our goal.
    To that end, we work round-the-clock to raise our country above the level of contemporary civilizations, making up for our shortcomings wherever we have.
    During this period we have left behind with our nation’s support, we have really made great progress by making great sacrifices, foiling many insidious games and traps, and thwarting numerous treacherous attacks.
    We are now on the eve of a period during which we will be reaping the rewards of the sacrifices we have made in every area, from security and technology, diplomacy to economy.
    We have few obstacles to overcome, few problems to resolve ahead of us to reach the bright futures that we call the ‘Century of Türkiye’.
    We are well aware of the challenges caused by the attempts to undermine our country in economy as well as in other areas, particularly through security threats, in the past six years.
    In the similar vein, we know that by using all our means, we should eliminate the scourge of terror, which has wasted our energy, eroded our brotherhood and kept us away from our goals for 40 years.
    We would like to wide open the doors of a Türkiye, whereby we compete our joys, not pains, share our richness, not poverty, and germinate our hopes, not disappointments.
    As we stated in last year’s Republic Day message, we do whatever we do to glorify the great and strong Türkiye ideal without paying heed to malevolent people at home and abroad.
    With Allah’s help, our nation’s sagacity and support, and the political and military strength of our country, we are determined to make sure that our Republic emerges even stronger from the period we have entered.
    We believe from the bottom of our hearts that all the individuals of our nation, regardless of their origin, disposition or political view, and all our friends, no matter where they live, will stand with us in this historical struggle of ours.
    May my Lord help and guide us.
    With these thoughts, I wholeheartedly congratulate all our citizens living in Türkiye and abroad on 29 October Republic Day.
    May our martyrs rest in peace!
    Happy 101st anniversary of the proclamation of our Republic!
    May you all remain in good health…

    MIL OSI Europe News

  • MIL-OSI Russia: To the staff of the Federal State Budgetary Cultural Institution “State Central Theatre Museum named after A.A. Bakhrushin”

    Translation. Region: Russian Federation –

    Source: Government of the Russian Federation – An important disclaimer is at the bottom of this article.

    On October 29, the museum celebrates its 130th anniversary.

    Dear friends!

    I sincerely congratulate you on this significant anniversary.

    For 130 years, the unique collection of the famous Moscow industrialist, patron and philanthropist Alexey Alexandrovich Bakhrushin has been carefully preserved and constantly replenished with priceless rarities. More than one and a half million exhibits, the largest collection of paintings, portraits and photographs, autographs and costumes that belonged to outstanding actors, directors and artists, scenery and playbills clearly demonstrate to visitors the four-century history of the development of the Russian theater, convey the atmosphere of past centuries.

    Today, the State Central Theatre Museum is a special cultural and educational space, a creative cluster. Exhibition, scientific and publishing activities are carried out here, large-scale educational projects and programs are implemented, international conferences, forums, seminars are held, attracting connoisseurs and fans of dramatic art and literature.

    It is important that the highly professional team continues the work of its predecessors, combining in its work a commitment to tradition, introducing modern technologies and multimedia solutions, and making a significant contribution to the preservation of the national theatrical heritage.

    I wish you new successes, achievements and all the best.

    Sincerely,

    M. Mishustin

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

    MIL OSI Russia News

  • MIL-OSI United Kingdom: Making a difference in communities and social care: Westminster’s Community Catalysts Programme leads local change | Westminster City Council

    Source: City of Westminster

    Since the launch of the Community Catalysts Programme in Westminster earlier this year, the initiative has achieved remarkable success in fostering innovative, local micro-enterprises that support residents with learning disabilities, older people, and those with dementia.

    Funded by Westminster City Council, this two-year programme empowers local residents and community organisations to establish and grow sustainable community micro-enterprises through dedicated support, business advice and mentorship. From drama workshops to fitness and music sessions, these micro-enterprises are thriving, creating opportunities for social engagement and meaningful connections. Residents now have access to a diverse range of activities that improve mental and physical wellbeing, while also addressing some of the longstanding challenges within social care.

    Among the early success stories are Dende Collective, offering drama and arts activities for older people; Colliers Wood Shanty Singers, providing engaging musical experiences; and Creative Yoga Workshops, running accessible yoga sessions for all abilities. These enterprises exemplify the programme’s aim to foster independence and enable individuals to follow their passions while contributing meaningfully to their communities.

    Deputy Leader and Cabinet Member for Adult Social Care and Health, Cllr Nafsika Butler-Thalassis, said:

    “We’re thrilled to see how the Community Catalysts Development Programme is transforming the way we think about social care in Westminster.

    Community Catalysts is not just creating businesses; it’s building a network of compassionate, local support that understands and responds to the unique needs of our residents. This programme is a testament to what can be achieved when we empower our communities to be part of the solution to social care challenges.

    The creativity and commitment of the micro-enterprises we’ve supported so far have been inspiring, and we’re excited to see even more residents get involved.”

    Andre Pink, Artistic Director of Dende Collective, also expressed the value of the programme:

    “Community Catalysts has been a helpful resource for us, offering support in areas like safeguarding, risk assessments, and connecting us with others in the community.

    As a small organisation, their input has streamlined some of the behind-the-scenes work, allowing us to focus more on what we’re passionate about — involving a wide range of diverse audiences with live theatre and making a positive difference locally.”

    As the programme continues to grow, Westminster City Council and Community Catalysts are calling on more local residents to join the network and set up or grow their own community enterprises. Whether you have an idea or an existing group that needs support, the programme is here to help turn those ideas into sustainable, impactful ventures.

    For more information on how to get involved or to access services provided by these new enterprises, visit the Community Catalysts website.

    MIL OSI United Kingdom

  • MIL-OSI United Kingdom: Ghana’s Minister for National Security highlights the important role the country plays in the region The University of Aberdeen welcomed the Minister for National Security in Ghana, the Honourable Albert Kan-Dapaah, in a visit where he shared the important role Ghana plays in upholding democracy and resolving the security challenges in the region.

    Source: University of Aberdeen

    The University of Aberdeen welcomed the Minister for National Security in Ghana, the Honourable Albert Kan-Dapaah, in a visit where he shared the important role Ghana plays in upholding democracy and resolving the security challenges in the region.
    The delegation, which also included Emmanuel Dadzie, Technical Director at the Ministry of National Security and Mrs Ann-Marie Ekpale, Head of Human Resource at Ministry of National Security, was given a tour of the University’s 500-year-old campus and met with the Lord Provost of Aberdeen, Councillor David Cameron on Monday (October 28).
    Relations between the UK and Ghana are rooted in long-standing economic, political and cultural connections, since Ghana became independent from the UK in 1957. More recent commercial oil exploration and energy transition has led to the exchange of experiences and ideas with the industry in Aberdeen. Mr Kan-Dapaah was presented with a football shirt by Aberdeen Football Club in recognition of the connections between the regions.
    The Honourable Minister spoke during his visit on the political and security situation in the West African region and underscored the urgency for West Africa’s longstanding friends to empower the region to meet ongoing multidimensional challenges.
    He shared his perspectives on the decline in democracy in the region and highlighted the impact of the ongoing great power rivalry as a factor shrinking the space for meaningful regional and international security cooperation. 
    The speech also stressed the role of Ghana in upholding democracy and resolving the security challenges in the region and the upcoming General Elections and the country’s preparedness to ensure free, fair and peaceful elections.
    The University of Aberdeen has a large number of Ghanian students and more than 500 alumni including Hon. Prince Hamidu Armah, MP for Kwesimintsim Constituency, Western Region, who studied for a PhD in Mathematics Education at the University of Aberdeen.
    Many retain strong links with their Alma mater and in 2022 an Alumni Chapter for the University of Aberdeen was established in Accra.
    The Chapter aims to foster connections among graduates living and working in Ghana and serves as a bridge between alumni in Ghana and the broader University of Aberdeen community, helping to maintain and strengthen professional and personal ties beyond graduation.
    The University also has an active Ghana Students Society helping to create a sense of community among students, helping them connect, support each other, and build strong friendships while studying abroad. It promotes cultural exchange and understanding by organising events, workshops, and activities that showcase the traditions, customs, and history of Ghana.
    Dr Manu Lekunze, Lecturer in Politics and International Relations, introduced the Minister’s talk by highlighting why European security planners cannot ignore security developments in West Africa.
    He said: “These reasons include West Africa’s proximity to Europe, significant demographic change, strategic resources, and great power meddling that has implications for Europe
    “We were pleased to welcome the Honourable Minister to the University of Aberdeen and to hear first hand his insights into the role Ghana plays in the security challenges of the region.”

    MIL OSI United Kingdom

  • MIL-OSI: 1300 Clients and Accelerating Growth: European Tech Scaleflex Unveils Visual Experience Platform to Disrupt $4.5B DAM Market

    Source: GlobeNewswire (MIL-OSI)

    Since 2020, the company has reached 1300 clients. The release of the Visual Experience Platform is set to reshape the $4.5B market of Digital Asset Management (DAM) and AI Visual Enhancement markets solutions. The DAM market is expected to reach $16.2B dollars by 2032.1

    PARIS, Oct. 29, 2024 (GLOBE NEWSWIRE) — With €2.5M in funding, France-founded solution provider Scaleflex introduces its new Visual Experience Platform (VXP).

    Analysts expect the DAM market to reach a compound annual growth rate (CAGR) surpassing 17%2. Key drivers include increased adoption of cloud-based architecture and the integration of AI and machine learning for asset management.

    “VXP answers our clients’ call for a single platform that goes beyond traditional DAM — facilitating content optimization, enrichment, and distribution. Our work with L-Commerce, an E. Leclerc subsidiary, France’s leading grocery retailer, is proof. We helped them process assets faster, at lower costs, boosting both scalability and web performance. Both are critical for eCommerce success,” says Emil Novakov, co-founder and CEO of Scaleflex.

    VXP is a first-of-its-kind software in the DAM market, offering integrated functions tailored to marketing, digital, and IT teams :

    • Digital Asset Management, a single source of truth to reference and distribute visual assets (images, videos…)
    • Visual AI-enhancement to automate tasks like Not safe for work moderation, enrichment, tagging and visual search (vector search)
    • Web Portals to collaborate and share assets such as brand guidelines, marketing campaigns…
    • Dynamic Media Optimization transforming visuals to increase web performance

    The composable VXP helps IT & business teams from enterprise & midmarket companies optimize billions of visual assets. Over 1300 clients benefit from the VXP modules, including Michelin, Hyundai, Rakuten, Grupo Piñero, SeLoger, or the European Space Agency.

    The VXP’s intuitive interface can be used by marketing, digital, and communications teams. In addition, IT departments can leverage a full headless approach thanks to scalable APIs that easily integrate into existing systems, driving faster innovation.

    “With a cloud-agnostic architecture built to scale and provide blazing-fast performance for our customers, our platform easily integrates with any system, including MACH-based architectures, providing businesses the agility to adapt and scale their visual stack,” says Julian De Maestri, co-founder and CTO of Scaleflex. “VXP is a next-gen composable solution.”

    About Scaleflex:

    A fast-growing European Tech SaaS, Scaleflex provides comprehensive visual content management solutions. The company’s portfolio includes state-of-the-art tools that help business and IT teams maximize the value of their media assets, optimize content delivery, and improve digital experiences across the board. With a focus on performance, scalability, and innovation, Scaleflex is trusted by more than 1300 customers.
    For more information, please visit www.scaleflex.com.

    Media Contact:
    Jonathan Britel
    Phone: +33 6 77 91 18 49
    Email: jonathan.britel@scaleflex.com
    Side topics : Interview enquiries about IT & technology innovation in Retail, Real Estate, Tourism and Online Media


    1 Fortune Business Insights. (2024, September). Digital Asset Management (DAM) Market Size, Share & Regional Forecast, 2024-2032. Report ID: FBI104914. https://www.fortunebusinessinsights.com/digital-asset-management-dam-market-104914

    2 FNFR. (2024). Digital Asset Management (DAM) Market Size, Share, Growth Analysis Report 2020-2026. https://www.fnfresearch.com/digital-asset-management-dam-market

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/487a4984-c96d-4880-a2b3-2f7ae6c5f405

    The MIL Network

  • MIL-OSI: The notes redeemed by Municipality Finance have been removed from trading at Nasdaq Helsinki

    Source: GlobeNewswire (MIL-OSI)

    Municipality Finance Plc
    Stock exchange release
    29 October 2024 at 10:00 am (EET)

    The notes redeemed by Municipality Finance have been removed from trading at Nasdaq Helsinki

    On 14 October 2024 Municipality Finance Plc announced that it is exercising its right to redeem in whole its USD 150 million notes (XS2548900146). Nasdaq Helsinki has approved MuniFin’s application to remove the notes from trading. The last day of trading was 28 October 2024.

    MUNICIPALITY FINANCE PLC

    Further information:

    Joakim Holmström
    Executive Vice President, Capital Markets and Sustainability
    tel. +358 50 444 3638

    MuniFin (Municipality Finance Plc) is one of Finland’s largest credit institutions. The company is owned by Finnish municipalities, the public sector pension fund Keva and the Republic of Finland. The Group’s balance sheet totals over to EUR 50 billion.

    MuniFin’s customers include municipalities, joint municipal authorities, wellbeing services counties, corporate entities under their control, and non-profit organisations nominated by the Housing Finance and Development Centre of Finland (ARA). Lending is used for environmentally and socially responsible investment targets such as public transportation, sustainable buildings, hospitals and healthcare centres, schools and day care centres, and homes for people with special needs.

    MuniFin’s customers are domestic, but the company operates in a completely global business environment. The company is an active Finnish bond issuer in international capital markets and the first Finnish green and social bond issuer. The funding is exclusively guaranteed by the Municipal Guarantee Board.

    Read more: www.kuntarahoitus.fi/en

    Important Information

    The information contained herein is not for release, publication or distribution, in whole or in part, directly or indirectly, in or into any such country or jurisdiction or otherwise in such circumstances in which the release, publication or distribution would be unlawful. The information contained herein does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, any securities or other financial instruments in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities laws of any such jurisdiction.

    This communication does not constitute an offer of securities for sale in the United States. The notes have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”) or under the applicable securities laws of any state of the United States and may not be offered or sold, directly or indirectly, within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an applicable exemption from, or in a transaction not subject to, the registration requirements of the Securities Act.

    The MIL Network

  • MIL-OSI Russia: The results of the 10th All-Russian Prize “For Loyalty to Science” have been summed up

    Translation. Region: Russian Federation –

    Source: State University of Management – Official website of the State –

    On October 28, 2024, the Zaryadye Concert Hall hosted the award ceremony of the 10th All-Russian Prize “For Loyalty to Science”.

    The All-Russian Prize “For Loyalty to Science” is one of the key events of the Decade of Science and Technology and the country’s main industry prize, which has been awarded for outstanding achievements in the field of scientific communication and popularization of science since 2015. This year, about 2 thousand applications from 80 regions of Russia were submitted for the prize.

    The International Festival SCIENCE 0 won in the nomination “Russian Science to the World” (nomination named after Konstantin Eduardovich Tsiolkovsky). The award was presented to its initiator, the rector of the Moscow State University named after M.V. Lomonosov Viktor Sadovnichy by the press secretary of the President of Russia Dmitry Peskov.

    “It is probably our country’s duty to contribute to the development of world science… We have opened up many new areas where our scientists find new opportunities for interaction and cooperation… Our scientists continue to remain open to the entire world. There is a circulation that provides the necessary energy for the development of science. No science can develop under a glass dome. It must be open, especially such a great science of such a great country,” Dmitry Peskov noted.

    Let us recall that young scientists from the State University of Management took part in the All-Russian campaign “Education in Schools”, held as part of the SCIENCE 0 festival.

    In the nomination “Author of Digital Content”, the award was received by the CEO of OOO “Technologies and Creativity”, co-author of the show “Revuzor” Vadim Bakin. The award was presented to him by Deputy Chairman of the Government of the Russian Federation Dmitry Chernyshenko.

    “You are doing a great job, one of the most important ones that President Vladimir Putin has ordered to be carried out within the framework of the Decade of Science and Technology – you are popularizing the high title of scientist. We see a good result. This year, the number of applications for the All-Russian Prize “For Loyalty to Science” has increased by 1.5 times – to almost 2 thousand. According to VTsIOM polls, more than half of Russians called the professions of scientist and engineer prestigious,” said Dmitry Chernyshenko.

    The victory in the nomination “Work with experience: protection of historical truth” went to the historiographic study of the activities of scientific and legal centers of Russia and foreign countries over the past 100 years “Chronicle of Russian legal science in five volumes”. The prize was presented to the authors of the project by the Minister of Science and Higher Education of the Russian Federation, a lawyer by education Valery Falkov.

    “We consciously cultivate a special attitude towards history. Because history is not a set of events, but a valuable experience that is passed down from generation to generation. It forms national consciousness, strengthens spiritual and cultural ties both within the state and at the international level,” said Valery Filkov.

    List of winners of the 10th All-Russian Prize “For Loyalty to Science”:

    Russian: Russian Science to the World Nomination (Konstantin Eduardovich Tsiolkovsky Nomination) — SCIENCE 0 International Festival; Recognition Nomination — Soviet and Russian zoologist and biogeographer, host of the Animal World program Nikolai Drozdov; Scientific Press Service of the Year Nomination — press service of the Russian Science Foundation; Science Journalist of the Year Nomination — author and host of the scientific travel show Hitchhiker’s Guide to Science Alexander Prudnikov; Special Prize named after Daniil Granin Nomination — FANK Scientific Film Laboratory; Digital Content Author Nomination — CEO of Technologies and Creativity LLC, co-author of the Revuzor show Vadim Bakin; Working with Experience: Protecting Historical Truth Nomination — The Chronicle of Russian Legal Science in Five Volumes; Nomination “Special Prize named after Khristopher Ledentsov” (State Corporation “Rosatom”) — TASS special project “Atomic Age”; Nomination “Special Prize named after Khristopher Ledentsov” (State Corporation “Roscosmos”) — rocket-building championship “Jet Propulsion”; Nomination “Special Prize named after Khristopher Ledentsov” (State Corporation “Rostec”) — information portal “SPbGU in Action”; Nomination “Special Prize named after Khristopher Ledentsov” (PJSC “Gazprom”) — a series of career guidance quests “I am a future oil and gas chemistry engineer!”; Nomination “Science for Children” — competition “Scientific Universe”.

    Subscribe to the TG channel “Our GUU” Date of publication: 10/29/2024

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  • MIL-OSI Russia: Legends of Russian Science: Evgeny Antonovich Gailish

    Translation. Region: Russian Federation –

    Source: Peter the Great St Petersburg Polytechnic University – Peter the Great St Petersburg Polytechnic University –

    The next issue of the special project “Legends of Russian Science” of the SPbPU Public Relations Department and the Polytechnic History Museum is dedicated to Evgeny Antonovich Gailish, the organizer of the production of high-quality radio equipment, Hero of Socialist Labor.

    Evgeny Gailish was born on September 27, 1914 in Petrograd, into a peasant family. In 1931, he graduated from high school, then entered the physics and mechanics department of the Leningrad Polytechnic Institute.

    During his student years, Evgeny Antonovich worked in a radio materials laboratory. There he created a method for calculating antenna insulators, which later found its practical application. After graduating from the university, the polytechnic student was a laboratory assistant, designer, and head of the laboratory at Research Institute-34 of the State Committee of the Council of Ministers of the USSR for Radio Electronics. In 1942, he got a job as a chief engineer at the Radio Engineering Semi-Finished Goods Plant No. 436. There, Evgeny Antonovich supervised the creation of elements for the portable transceiver “Sever”, which was widely used during the Great Patriotic War. During the siege of Leningrad, the transmitter was manufactured at the Kozitsky Plant. In 1945, E. A. Gailish joined the All-Union Communist Party (Bolsheviks).

    After the war, Evgeny Antonovich worked as chief engineer and deputy general director for science at NPO Positron in Leningrad. He was engaged in theoretical research that was of great importance for the development of domestic instrument-making. The results of his work in this area were highly recognized with many state awards.

    Since 1975, Evgeny Aleksandrovich headed the Department of Design and Manufacturing Technology of Radio Components at the V. I. Lenin Electrotechnical University of Leningrad (LETI), and defended his doctoral dissertation.

    In 1949, E. A. Gailish received the Stalin Prize for organizing the production of high-quality radio equipment. On June 17, 1961, he was awarded the title Hero of Socialist Labor for outstanding achievements in the creation of rocket technology models and ensuring the successful flight of man into outer space. Among his awards are the Order of Lenin, the Order of the October Revolution, the Order of the Red Banner of Labor, and the Badge of Honor.

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

    MIL OSI Russia News