Category: Trade

  • MIL-OSI Video: Marrakesh Coffee – WTO Public Forum Edition: Adam Posen

    Source: World Trade Organization – WTO (video statements)

    In this special WTO Public Forum edition of Marrakesh Coffee, Adam Posen, President of the Peterson Institute for International Economics, explores what truly inclusive trade means and how we can achieve it. He also discusses how the Marrakesh Agreement’s promise—raising living standards, increasing employment, and promoting sustainable development—can be fulfilled, ensuring these benefits reach more people and WTO members.

    https://www.youtube.com/watch?v=4wLqChmPbLQ

    MIL OSI Video

  • MIL-OSI China: Preparation work for CIIE nears completion: ministry

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

    BEIJING, Oct. 31 — Preparations are nearly complete for the seventh China International Import Expo (CIIE), set for November 5-10 in Shanghai, the Ministry of Commerce said on Thursday.

    Ministry spokesperson He Yadong said at a press conference that exhibits from over 2,700 participating companies have entered the exhibition halls, while those from more than 700 companies are still in transit and will arrive by Nov. 2.

    The spokesperson said foreign bank cards will be accepted for catering payments at the CIIE. The expo will feature a 5,000-square-meter catering zone and offer food delivery services to all booths.

    The seventh CIIE has attracted participants from 152 countries, regions and international organizations, and achieved a new record with 297 Fortune Global 500 companies and industry leaders set to attend.

    Since its first edition in 2018, the expo has become an important showcase, spotlighting China’s new development paradigm, a platform for high-standard opening up, and an opportunity for the whole world.

    MIL OSI China News

  • MIL-OSI Asia-Pac: Economy grows 1.8% in Q3

    Source: Hong Kong Information Services

    Hong Kong’s economy grew 1.8% in the third quarter of 2024 over the same period a year earlier, down from a 3.2% increase in the second quarter, the Census & Statistics Department announced today.

    According to the advance estimates, gross domestic product (GDP) decreased by 1.1% in real terms in the third quarter of this year on a seasonally adjusted quarter-to-quarter basis.

    Private consumption expenditure dropped 1.4% in the third quarter year-on-year, following a decrease of 1.6% in the second quarter. Government consumption expenditure rose 2.1% year-on-year, as against a 2.2% increase in the second quarter.

    Gross domestic fixed capital formation increased by 3.7% in the third quarter of this year over a year earlier, following an increase of 4.1% in the preceding quarter.

    Over the same period, total goods exports recorded an increase of 3.9% over a year earlier, moderating from a 7.5% increase in the second quarter. Goods imports grew 2.6%, compared with a 3.4% increase in the preceding quarter.

    Exports of services rose 2.4% in the third quarter over a year earlier, as against a 1.1% increase in the second quarter. Imports of services climbed by 8.2%, following an increase of 12.3% in the preceding quarter.

    The Government said that Hong Kong’s economy continued to expand in the third quarter of 2024 over a year earlier and highlighted that total goods exports saw decelerated year-on-year growth alongside softening economic growth in some major markets.

    Looking ahead, it added that the economy should continue to grow in the remainder of the year. In particular, the gradual easing of financial conditions should bode well for fixed asset investment.

    A possible easing of the Hong Kong dollar alongside the US dollar, coupled with the central government’s various measures benefitting Hong Kong, the Government’s various initiatives to boost market sentiment, and increasing employment earnings are conducive to spending by both residents and visitors in the domestic market. However, the change in their consumption patterns will continue to pose challenges.

    The revised GDP figures for the third quarter of 2024 and a revised forecast for the whole year will be released on November 15.

    MIL OSI Asia Pacific News

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

    Source: European Parliament

    24.10.2024

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

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

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

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

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

    Submitted: 24.10.2024

    Last updated: 31 October 2024

    MIL OSI Europe News

  • MIL-OSI: OTC Markets Group Welcomes Brazilian Rare Earths Ltd. to OTCQX

    Source: GlobeNewswire (MIL-OSI)

    NEW YORK, Oct. 31, 2024 (GLOBE NEWSWIRE) — OTC Markets Group Inc. (OTCQX: OTCM), operator of regulated markets for trading 12,000 U.S. and international securities, today announced Brazilian Rare Earths Ltd. (ASX: BRE; OTCQX: BRETF, BRELY), an Australian exploration and mining company, has qualified to trade on the OTCQX® Best Market. Brazilian Rare Earths Ltd. upgraded to OTCQX from the Pink® market.

    Brazilian Rare Earths Ltd. begins trading today on OTCQX under the symbol “BRETF, BRELY.” U.S. investors can find current financial disclosure and Real-Time Level 2 quotes for the company on www.otcmarkets.com.

    Upgrading to the OTCQX Market is an important step for companies seeking to provide transparent trading for their U.S. investors.  For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the U.S. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws.  

    Viriathus Capital LLC served as Brazilian Rare Earths Ltd’s advisor.

    “We are thrilled to see our shares and ADRs now trading on the OTCQX market. This quotation broadens our investor base and offers U.S. investors enhanced access to participate in our growth story as we advance our world-class rare earth projects. The increased visibility and liquidity on the OTCQX will accelerate our progress towards developing a leading global supplier of critical rare earth elements.”

    About Brazilian Rare Earths Ltd.
    Brazilian Rare Earths is a critical minerals development company that controls the world-class Rocha da Rocha rare earth province in Bahia, Brazil. Brazilian Rare Earths’ flagship project, Monte Alto, contains some of the highest rare earth grades ever reported globally, along with high concentrations of uranium, niobium, tantalum, and scandium.

    The Monte Alto project is strategically positioned to be an important future source of critical minerals, with the project containing 18 of the 50 critical minerals identified by the U.S. government as essential to economic and national security. Brazilian Rare Earths aims to become a leading global supplier of these critical materials, supporting industries such as renewable energy, electric vehicles, advanced robotics, and defence technologies.

    About OTC Markets Group Inc.
    OTC Markets Group Inc. (OTCQX: OTCM) operates regulated markets for trading 12,000 U.S. and international securities. Our data-driven disclosure standards form the foundation of our three public markets: OTCQX® Best Market, OTCQB® Venture Market and Pink® Open Market.

    Our OTC Link® Alternative Trading Systems (ATSs) provide critical market infrastructure that broker-dealers rely on to facilitate trading. Our innovative model offers companies more efficient access to the U.S. financial markets.

    OTC Link ATS, OTC Link ECN and OTC Link NQB are each an SEC regulated ATS, operated by OTC Link LLC, a FINRA and SEC registered broker-dealer, member SIPC.

    To learn more about how we create better informed and more efficient markets, visit www.otcmarkets.com.

    Subscribe to the OTC Markets RSS Feed

    Media Contact:
    OTC Markets Group Inc., +1 (212) 896-4428, media@otcmarkets.com

    The MIL Network

  • MIL-OSI: Bitfarms Enters into Second 10,000 Miner Hosting Agreement with Stronghold Digital Mining

    Source: GlobeNewswire (MIL-OSI)

    – Follows initial 10,000 miner hosting agreement announced in September –

    – Agreement supports 2.2 EH/s –

    This news release constitutes a “designated news release” for the purposes of the Company’s amended and restated prospectus supplement dated October 4, 2024, to its short form base shelf prospectus dated November 10, 2023.

    TORONTO, Ontario and BROSSARD, Québec, Oct. 31, 2024 (GLOBE NEWSWIRE) — Bitfarms Ltd. (NASDAQ/TSX: BITF) (“Bitfarms” or the “Company”), a global leader in vertically integrated Bitcoin data center operations, has, through one of its subsidiaries, entered into a second miner hosting agreement (the “Hosting Agreement”) with Stronghold Digital Mining Hosting, LLC, a subsidiary of Stronghold Digital Mining, Inc.  (NASDAQ: SDIG) (“Stronghold”) at Stronghold’s Scrubgrass site in Pennsylvania.

    Under the terms of the Hosting Agreement, Bitfarms will deploy an additional 10,000 miners, originally expected to be used for its Yguazu, Paraguay site, to Stronghold’s Scrubgrass site. Energization is anticipated to start in December 2024.

    “Optimizing our assets with these rapid upgrades at Stronghold’s Pennsylvania sites will provide significant near-term value for Bitfarms,” stated Ben Gagnon, CEO. “The 20,000 miners we are deploying at the two sites between the two hosting agreements will boast efficiency of ~20.5 w/TH, continuing to improve our overall fleet efficiency. Vertically integrating our operations with Stronghold’s existing power generation infrastructure reduces capital expenditure requirements and allows us to take greater control over our cost of power via energy trading and better utilization of the T21’s wide range of operating modes. We look forward to completing our acquisition of Stronghold and executing our strategy to increase our U.S. footprint and diversify beyond Bitcoin mining.”

    The initial term of the Hosting Agreement will expire on December 31, 2025, after which it will automatically renew for additional one-year periods unless either party provides written notice of non-renewal. Pursuant to the Hosting Agreement, Bitfarms will pay Stronghold a monthly fee equal to fifty percent of the profit generated by the Bitfarms miners. In connection with the execution of the Hosting Agreement, Bitfarms also deposited with Stronghold $7.8 million, equal to the estimated cost of power for three months of operations of the Bitfarms miners, which will be refundable in full to Bitfarms at the end of the initial term.

    About Bitfarms
    Founded in 2017, Bitfarms is a global vertically integrated Bitcoin data center company that contributes its computational power to one or more mining pools from which it receives payment in Bitcoin. Bitfarms develops, owns, and operates vertically integrated mining facilities with in-house management and company-owned electrical engineering, installation service, and multiple onsite technical repair centers. The Company’s proprietary data analytics system delivers best-in-class operational performance and uptime.

    Bitfarms currently has 12 operating Bitcoin data centers and two under development, as well as hosting agreements with two data centers, in four countries: Canada, the United States, Paraguay, and Argentina. Powered predominantly by environmentally friendly hydro-electric and long-term power contracts, Bitfarms is committed to using sustainable and often underutilized energy infrastructure.

    To learn more about Bitfarms’ events, developments, and online communities:

    www.bitfarms.com
    https://www.facebook.com/bitfarms/
    https://twitter.com/Bitfarms_io
    https://www.instagram.com/bitfarms/
    https://www.linkedin.com/company/bitfarms/

    Glossary of Terms

    • EH or EH/s = Exahash or exahash per second
    • w/TH = Watts/Terahash efficiency (includes cost of powering supplementary equipment)

    Forward-Looking Statements

    This news release contains certain “forward-looking information” and “forward-looking statements” (collectively, “forward-looking information”) that are based on expectations, estimates and projections as at the date of this news release and are covered by safe harbors under Canadian and United States securities laws. The statements and information in this release regarding the impact of the Hosting Agreement, projected growth, target hashrate, opportunities relating to the Company’s geographical diversification and expansion, deployment of miners as well as the timing therefor, closing of the Stronghold acquisition on a timely basis and on the terms as announced, , the ability to gain access to additional electrical power and grow hashrate of the Stronghold business, performance of the plants and equipment upgrades and the impact on operating capacity including the target hashrate and multi-year expansion capacity, the opportunities to leverage Bitfarms’ proven expertise to successfully enhance energy efficiency and hashrate, and other statements regarding future growth, plans and objectives of the Company are forward-looking information.

    Any statements that involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions, future events or performance (often but not always using phrases such as “expects”, or “does not expect”, “is expected”, “anticipates” or “does not anticipate”, “plans”, “budget”, “scheduled”, “forecasts”, “estimates”, “prospects”, “believes” or “intends” or variations of such words and phrases or stating that certain actions, events or results “may” or “could”, “would”, “might” or “will” be taken to occur or be achieved) are not statements of historical fact and may be forward-looking information.

    This forward-looking information is based on assumptions and estimates of management of Bitfarms at the time they were made, and involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance, or achievements of Bitfarms to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Such factors, risks and uncertainties include, among others: receipt of the approval of the shareholders of Stronghold and the Toronto Stock Exchange for the Stronghold acquisition as well as other applicable regulatory approvals; that the Stronghold acquisition may not close within the timeframe anticipated or at all or may not close on the terms and conditions currently anticipated by the parties for a number of reasons including, without limitation, as a result of a failure to satisfy the conditions to closing of the Stronghold acquisition; the construction and operation of new facilities may not occur as currently planned, or at all; expansion of existing facilities may not materialize as currently anticipated, or at all; new miners may not perform up to expectations; revenue may not increase as currently anticipated, or at all; the ongoing ability to successfully mine digital currency is not assured; failure of the equipment upgrades to be installed and operated as planned; the availability of additional power may not occur as currently planned, or at all; expansion may not materialize as currently anticipated, or at all; the power purchase agreements and economics thereof may not be as advantageous as expected; potential environmental cost and regulatory penalties due to the operation of the Stronghold plants which entail environmental risk and certain additional risk factors particular to the business of Stronghold including, land reclamation requirements may be burdensome and expensive, changes in tax credits related to coal refuse power generation could have a material adverse effect on the business, financial condition, results of operations and future development efforts, competition in power markets may have a material adverse effect on the results of operations, cash flows and the market value of the assets, the business is subject to substantial energy regulation and may be adversely affected by legislative or regulatory changes, as well as liability under, or any future inability to comply with, existing or future energy regulations or requirements, the operations are subject to a number of risks arising out of the threat of climate change, and environmental laws, energy transitions policies and initiatives and regulations relating to emissions and coal residue management, which could result in increased operating and capital costs and reduce the extent of business activities, operation of power generation facilities involves significant risks and hazards customary to the power industry that could have a material adverse effect on our revenues and results of operations, and there may not have adequate insurance to cover these risks and hazards, employees, contractors, customers and the general public may be exposed to a risk of injury due to the nature of the operations, limited experience with carbon capture programs and initiatives and dependence on third-parties, including consultants, contractors and suppliers to develop and advance carbon capture programs and initiatives, and failure to properly manage these relationships, or the failure of these consultants, contractors and suppliers to perform as expected, could have a material adverse effect on the business, prospects or operations; the digital currency market; the ability to successfully mine digital currency; it may not be possible to profitably liquidate the current digital currency inventory, or at all; a decline in digital currency prices may have a significant negative impact on operations; an increase in network difficulty may have a significant negative impact on operations; the volatility of digital currency prices; the anticipated growth and sustainability of hydroelectricity for the purposes of cryptocurrency mining in the applicable jurisdictions; the inability to maintain reliable and economical sources of power to operate cryptocurrency mining assets; the risks of an increase in electricity costs, cost of natural gas, changes in currency exchange rates, energy curtailment or regulatory changes in the energy regimes in the jurisdictions in which Bitfarms and Stronghold operate and the potential adverse impact on profitability; future capital needs and the ability to complete current and future financings, including Bitfarms’ ability to utilize an at-the-market offering program ( “ATM Program”) and the prices at which securities may be sold in such ATM Program, as well as capital market conditions in general; share dilution resulting from an ATM Program and from other equity issuances; volatile securities markets impacting security pricing unrelated to operating performance; the risk that a material weakness in internal control over financial reporting could result in a misstatement of financial position that may lead to a material misstatement of the annual or interim consolidated financial statements if not prevented or detected on a timely basis; historical prices of digital currencies and the ability to mine digital currencies that will be consistent with historical prices; and the adoption or expansion of any regulation or law that will prevent Bitfarms from operating its business, or make it more costly to do so. For further information concerning these and other risks and uncertainties, refer to Bitfarms’ filings on www.sedarplus.ca (which are also available on the website of the U.S. Securities and Exchange Commission (the “SEC”) at www.sec.gov), including the MD&A for the year-ended December 31, 2023, filed on March 7, 2024 and the MD&A for the three and six months ended June 30, 2024 filed on August 8, 2024, and its registration statement on Form F-4 (File No. 333-282657) filed by Bitfarms with the SEC (the “registration statement”), which includes a proxy statement of Stronghold that also constitutes a prospectus of Bitfarms (the “proxy statement/prospectus”). Although Bitfarms has attempted to identify important factors that could cause actual results to differ materially from those expressed in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended, including factors that are currently unknown to or deemed immaterial by Bitfarms. There can be no assurance that such statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on any forward-looking information. Bitfarms does not undertake any obligation to revise or update any forward-looking information other than as required by law.   Trading in the securities of the Company should be considered highly speculative. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. Neither the Toronto Stock Exchange, Nasdaq, or any other securities exchange or regulatory authority accepts responsibility for the adequacy or accuracy of this release.

    Additional Information about the Merger and Where to Find It

    This communication relates to a proposed merger between Stronghold and Bitfarms. In connection with the proposed merger, Bitfarms has filed the registration statement with the SEC. After the registration statement is declared effective, Stronghold will mail the proxy statement/prospectus to its shareholders. This communication is not a substitute for the registration statement, the proxy statement/prospectus or any other relevant documents Bitfarms and Stronghold has filed or will file with the SEC. Investors are urged to read the proxy statement/prospectus (including all amendments and supplements thereto) and other relevant documents filed with the SEC carefully and in their entirety if and when they become available because they will contain important information about the proposed merger and related matters.

    Investors may obtain free copies of the registration statement, the proxy statement/prospectus and other relevant documents filed by Bitfarms and Stronghold with the SEC, when they become available, through the website maintained by the SEC at www sec.gov. Copies of the documents may also be obtained for free from Bitfarms by contacting Bitfarms’ Investor Relations Department at investors@bitfarms.com and from Stronghold by contacting Stronghold’s Investor Relations Department at SDIG@gateway-grp.com.

    No Offer or Solicitation
    This communication is not intended to and does not constitute an offer to sell or the solicitation of an offer to buy, sell or solicit any securities or any proxy, vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offer of securities shall be deemed to be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.

    Participants in Solicitation Relating to the Merger
    Bitfarms, Stronghold, their respective directors and certain of their respective executive officers may be deemed to be participants in the solicitation of proxies from Stronghold’s shareholders in respect of the proposed merger. Information regarding Bitfarms’ directors and executive officers can be found in Bitfarms’ annual information form for the year ended December 31, 2023, filed on March 7, 2024, as well as its other filings with the SEC. Information regarding Stronghold’s directors and executive officers can be found in Stronghold’s proxy statement for its 2024 annual meeting of stockholders, filed with the SEC on April 29, 2024, and supplemented on June 7, 2024, and in its Form 10-K for the year ended December 31, 2023, filed with the SEC on March 8, 2024. This communication may be deemed to be solicitation material in respect of the proposed merger. Additional information regarding the interests of such potential participants, including their respective interests by security holdings or otherwise, is set forth in the proxy statement/prospectus and other relevant documents filed with the SEC in connection with the proposed merger if and when they become available. These documents are available free of charge on the SEC’s website and from Bitfarms and Stronghold using the sources indicated above.

    Investor Relations Contacts:
    Bitfarms
    Tracy Krumme
    SVP, Head of IR & Corp. Comms.
    +1 786-671-5638
    tkrumme@bitfarms.com

    Media Contacts:
    Québec: Tact
    Louis-Martin Leclerc
    +1 418-693-2425
    lmleclerc@tactconseil.ca

    The MIL Network

  • MIL-OSI: Allegro MicroSystems Reports Second Quarter 2025 Results

    Source: GlobeNewswire (MIL-OSI)

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

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

    Second Quarter Financial Highlights:

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

    Business Outlook

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

    • Gross Margin is expected to be between 49% and 51%,
    • The Company made a voluntary $25 million payment on its term loan facility on October 31, 2024 and now expects Interest Expense to be approximately $6 million, and
    • Diluted Earnings per Share are expected to be between $0.04 and $0.08.

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

    Earnings Webcast

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

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

    About Allegro MicroSystems

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

    Forward-Looking Statements

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

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

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

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

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

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

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

    Supplemental Schedule of Total Net Sales

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

        Three-Month Period Ended     Change     Six-Month Period Ended     Change  
        September 27,
    2024
        September 29,
    2023
        Amount     %     September 27,
    2024
        September 29,
    2023
        Amount     %  
        (Dollars in thousands)     (Dollars in thousands)  
    Automotive   $ 141,893     $ 197,321     $ (55,428 )     (28 )%   $ 273,077     $ 382,751     $ (109,674 )     (29 )%
    Industrial and other     45,498       78,188       (32,690 )     (42 )%     81,233       171,051       (89,818 )     (53 )%
    Total net sales   $ 187,391     $ 275,509     $ (88,118 )     (32 )%   $ 354,310     $ 553,802     $ (199,492 )     (36 )%
     
    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED BALANCE SHEETS
    (in thousands)
     
        September 27,
    2024
        March 29,
    2024
     
        (Unaudited)        
    Assets            
    Current assets:            
    Cash and cash equivalents   $ 188,751     $ 212,143  
    Restricted cash     10,287       10,018  
    Trade accounts receivable, net     76,985       118,508  
    Inventories     176,648       162,302  
    Prepaid income taxes     38,636       31,908  
    Prepaid expenses and other current assets     32,253       33,584  
    Current portion of related party notes receivable           3,750  
    Total current assets     523,560       572,213  
    Property, plant and equipment, net     325,051       321,175  
    Deferred income tax assets     61,839       54,496  
    Goodwill     203,151       202,425  
    Intangible assets, net     266,753       276,854  
    Related party notes receivable, less current portion           4,688  
    Equity investment in related party     30,186       26,727  
    Other assets     81,577       72,025  
    Total assets   $ 1,492,117     $ 1,530,603  
    Liabilities, Non-Controlling Interests and Stockholders’ Equity            
    Current liabilities:            
    Trade accounts payable   $ 50,245     $ 35,964  
    Amounts due to related party     5,546       1,626  
    Accrued expenses and other current liabilities     62,742       76,389  
    Current portion of long-term debt     5,475       3,929  
    Total current liabilities     124,008       117,908  
    Long-term debt     396,056       249,611  
    Other long-term liabilities     33,345       31,368  
    Total liabilities     553,409       398,887  
    Commitments and contingencies            
    Stockholders’ Equity:            
    Preferred stock            
    Common stock     1,840       1,932  
    Additional paid-in capital     993,988       694,332  
    (Accumulated deficit) retained earnings     (31,931 )     463,012  
    Accumulated other comprehensive loss     (26,583 )     (28,841 )
    Equity attributable to Allegro MicroSystems, Inc.     937,314       1,130,435  
    Non-controlling interests     1,394       1,281  
    Total stockholders’ equity     938,708       1,131,716  
    Total liabilities, non-controlling interests and stockholders’ equity   $ 1,492,117     $ 1,530,603  
       
    ALLEGRO MICROSYSTEMS, INC.
    CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
    (in thousands)
    (Unaudited)
     
       
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
    Cash flows from operating activities:                        
    Net (loss) income   $ (33,613 )   $ 65,671     $ (51,226 )   $ 126,560  
    Adjustments to reconcile net (loss) income to net cash provided by operating activities:                        
    Depreciation and amortization     15,997       15,080       32,455       29,353  
    Amortization of deferred financing costs     306       73       1,087       107  
    Deferred income taxes     (2,796 )     (9,772 )     (7,795 )     (18,134 )
    Stock-based compensation     11,545       10,877       21,663       21,919  
    Loss on change in fair value of forward repurchase contract     34,752             34,752        
    Provisions for inventory and expected credit losses     2,111       4,239       4,488       9,422  
    Change in fair value of marketable securities           (72 )           3,579  
    Other non-cash reconciling items     6,563       43       6,577       43  
    Changes in operating assets and liabilities:                        
    Trade accounts receivable     (13,717 )     2,676       41,417       (7,645 )
    Inventories     (2,845 )     (3,274 )     (18,831 )     (31,221 )
    Prepaid expenses and other assets     (14,093 )     (6,253 )     (15,808 )     (16,453 )
    Trade accounts payable     13,470       (15,736 )     13,670       2,695  
    Due to and from related parties     695       (3,990 )     4,132       6,112  
    Accrued expenses and other current and long-term liabilities     (2,828 )     (12,832 )     (16,838 )     (29,944 )
    Net cash provided by operating activities     15,547       46,730       49,743       96,393  
    Cash flows from investing activities:                        
    Purchases of property, plant and equipment     (9,972 )     (31,191 )     (20,949 )     (76,101 )
    Sales of marketable securities           6,204             16,175  
    Net cash used in investing activities     (9,972 )     (24,987 )     (20,949 )     (59,926 )
    Cash flows from financing activities:                        
    Loan made to affiliate           (4,000 )           (4,000 )
    Net proceeds from Refinanced 2023 Term Loan Facility     193,483             193,483        
    Payment of borrowings under 2023 Term Loan Facility                 (50,000 )      
    Finance lease payments     (240 )           (385 )      
    Receipts on related party notes receivable     937       937       1,875       1,875  
    Payments for taxes related to net share settlement of equity awards     (1,126 )     (1,669 )     (12,297 )     (14,091 )
    Proceeds from issuance of common stock under employee stock purchase plan     1,987             1,987       1,899  
    Repurchases of common stock     (853,805 )           (853,805 )      
    Net proceeds from issuance of common stock     665,850             665,850        
    Payment of debt issuance costs                       (1,450 )
    Net cash provided by (used in) financing activities     7,086       (4,732 )     (53,292 )     (15,767 )
    Effect of exchange rate changes on cash and cash equivalents and restricted cash     2,200       (901 )     1,375       (974 )
    Net increase (decrease) in cash and cash equivalents and restricted cash     14,861       16,110       (23,123 )     19,726  
    Cash and cash equivalents and restricted cash at beginning of period     184,177       362,321       222,161       358,705  
    Cash and cash equivalents and restricted cash at end of period:   $ 199,038     $ 378,431     $ 199,038     $ 378,431  
                                     

    Non-GAAP Financial Measures

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

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

    Non-GAAP Income Tax Provision

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

    • Tax effect of adjustments to GAAP results—Represents the estimated income tax effect of the adjustments to non-GAAP Profit before Tax described below and elimination of discrete tax adjustments.
       
    Reconciliation of Non-GAAP Gross Profit and Non-GAAP Gross Margin  
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Gross Profit   $ 85,662     $ 74,771     $ 159,503     $ 160,433     $ 317,453  
    GAAP Gross Margin (% of net sales)     45.7 %     44.8 %     57.9 %     45.3 %     57.3 %
                                   
    Non-GAAP adjustments                              
    Transaction-related costs     10       (1 )           9        
    Purchased intangible amortization     4,875       4,875       273       9,750       675  
    Restructuring costs     16       1,200             1,216        
    Stock-based compensation     817       561       946       1,378       3,552  
    Total Non-GAAP Adjustments   $ 5,718     $ 6,635     $ 1,219     $ 12,353     $ 4,227  
                                   
    Non-GAAP Gross Profit   $ 91,380     $ 81,406     $ 160,722     $ 172,786     $ 321,680  
    Non-GAAP Gross Margin (% of net sales)     48.8 %     48.8 %     58.3 %     48.8 %     58.1 %
       
    Reconciliation of Non-GAAP Operating Expenses  
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Operating Expenses   $ 81,595     $ 85,401     $ 86,588     $ 166,996     $ 173,792  
                                   
    Research and Development Expenses                              
    GAAP Research and Development Expenses     43,510       45,204       43,428       88,714       86,403  
    Non-GAAP adjustments                              
    Transaction-related costs     206       1,029       2       1,235       9  
    Restructuring costs     260       169             429        
    Stock-based compensation     3,523       3,735       3,602       7,258       6,470  
    Other costs(1)     3                   3        
    Non-GAAP Research and Development Expenses     39,518       40,271       39,824       79,789       79,924  
                                   
    Selling, General and Administrative Expenses                              
    GAAP Selling, General and Administrative Expenses     38,085       40,197       43,160       78,282       87,389  
    Non-GAAP adjustments                              
    Transaction-related costs     275       814       1,804       1,089       4,876  
    Purchased intangible amortization     535       535       357       1,070       715  
    Restructuring costs     2,046       1,045             3,091        
    Stock-based compensation     7,205       5,822       6,329       13,027       11,897  
    Other costs(1)     (1,820 )     811       100       (1,009 )     100  
    Non-GAAP Selling, General and Administrative Expenses     29,844       31,170       34,570       61,014       69,801  
                                   
    Total Non-GAAP Adjustments     12,233       13,960       12,194       26,193       24,067  
                                   
    Non-GAAP Operating Expenses   $ 69,362     $ 71,441     $ 74,394     $ 140,803     $ 149,725  
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.  
       
    Reconciliation of Non-GAAP Operating Income and Non-GAAP Operating Margin  
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Operating Income (Loss)   $ 4,067     $ (10,630 )   $ 72,915     $ (6,563 )   $ 143,661  
    GAAP Operating Margin (% of net sales)     2.2 %     (6.4 )%     26.5 %     (1.9 )%     25.9 %
                                   
    Transaction-related costs     491       1,842       1,806       2,333       4,885  
    Purchased intangible amortization     5,410       5,410       630       10,820       1,390  
    Restructuring costs     2,322       2,414             4,736        
    Stock-based compensation     11,545       10,118       10,877       21,663       21,919  
    Other costs(1)     (1,817 )     811       100       (1,006 )     100  
    Total Non-GAAP Adjustments   $ 17,951     $ 20,595     $ 13,413     $ 38,546     $ 28,294  
                                   
    Non-GAAP Operating Income   $ 22,018     $ 9,965     $ 86,328     $ 31,983     $ 171,955  
    Non-GAAP Operating Margin (% of net sales)     11.7 %     6.0 %     31.3 %     9.0 %     31.0 %
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions.  
       
    Reconciliation of EBITDA and Adjusted EBITDA  
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Net (Loss) Income   $ (33,613 )   $ (17,613 )   $ 65,671     $ (51,226 )   $ 126,560  
    GAAP Net (Loss) Income Margin (% of net sales)     (17.9 )%     (10.6 )%     23.8 %     (14.5 )%     22.9 %
                                   
    Interest expense     10,353       5,377       758       15,730       1,527  
    Interest income     (420 )     (494 )     (850 )     (914 )     (1,693 )
    Income tax (benefit) provision     (9,470 )     1,040       7,400       (8,430 )     14,615  
    Depreciation & amortization     15,997       16,458       15,145       32,455       29,418  
    EBITDA   $ (17,153 )   $ 4,768     $ 88,124     $ (12,385 )   $ 170,427  
                                   
    Transaction-related costs     3,295       1,842       1,806       5,137       4,885  
    Restructuring costs     2,067       2,414             4,481        
    Stock-based compensation     11,545       10,118       10,877       21,663       21,919  
    Loss on change in fair value of forward repurchase contract     34,752                   34,752        
    Other costs(1)     (2,195 )     2,807       1,301       612       5,890  
    Adjusted EBITDA   $ 32,311     $ 21,949     $ 102,108     $ 54,260     $ 203,121  
    Adjusted EBITDA Margin (% of net sales)     17.2 %     13.1 %     37.1 %     15.3 %     36.7 %
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.  
       
    Reconciliation of Non-GAAP Profit before Tax  
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP (Loss) Income before Income Taxes   $ (43,083 )   $ (16,573 )   $ 73,071     $ (59,656 )   $ 141,175  
                                   
    Transaction-related costs     3,295       1,842       1,806       5,137       4,885  
    Transaction-related interest     141       709             850        
    Purchased intangible amortization     5,410       5,410       630       10,820       1,390  
    Restructuring costs     2,067       2,414             4,481        
    Stock-based compensation     11,545       10,118       10,877       21,663       21,919  
    Loss on change in fair value of forward repurchase contract     34,752                   34,752        
    Other costs(1)     1,428       2,807       1,301       4,235       5,890  
    Total Non-GAAP Adjustments   $ 58,638     $ 23,300     $ 14,614     $ 81,938     $ 34,084  
                                   
    Non-GAAP Profit before Tax   $ 15,555     $ 6,727     $ 87,685     $ 22,282     $ 175,259  
                                   
    (1) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure such as project evaluation costs, which consist of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions and income (loss) in earnings of equity investments.  
       
    Reconciliation of Non-GAAP Income Tax Provision and Non-GAAP Effective Tax Rate  
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Income Tax (Benefit) Provision   $ (9,470 )   $ 1,040     $ 7,400     $ (8,430 )   $ 14,615  
    GAAP effective tax rate     22.0 %     (6.3 )%     10.1 %     14.1 %     10.4 %
                                   
    Tax effect of adjustments to GAAP results     10,071       (395 )     2,554       9,676       6,380  
                                   
    Non-GAAP Income Tax Provision   $ 601     $ 645     $ 9,954     $ 1,246     $ 20,995  
    Non-GAAP effective tax rate     3.9 %     9.6 %     11.4 %     5.6 %     12.0 %
       
    Reconciliation of Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc. and Non-GAAP Earnings per Share  
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc.(1)   $ (33,675 )   $ (17,675 )   $ 65,617     $ (51,350 )   $ 126,467  
    GAAP Basic weighted average common shares     189,182,850       193,465,708       192,431,094       191,324,281       192,214,210  
    GAAP Diluted weighted average common shares     189,182,850       193,465,708       195,100,855       191,324,281       195,055,495  
    GAAP Basic (Loss) Earnings per Share   $ (0.18 )   $ (0.09 )   $ 0.34     $ (0.27 )   $ 0.66  
    GAAP Diluted (Loss) Earnings per Share   $ (0.18 )   $ (0.09 )   $ 0.34     $ (0.27 )   $ 0.65  
                                   
    Transaction-related costs     3,295       1,842       1,806       5,137       4,885  
    Transaction-related interest     141       709             850        
    Purchased intangible amortization     5,410       5,410       630       10,820       1,390  
    Restructuring costs     2,067       2,414             4,481        
    Stock-based compensation     11,545       10,118       10,877       21,663       21,919  
    Loss on change in fair value of forward repurchase contract     34,752                   34,752        
    Other costs(2)     1,428       2,807       1,301       4,235       5,890  
    Total Non-GAAP Adjustments     58,638       23,300       14,614       81,938       34,084  
    Tax effect of adjustments to GAAP results(3)     (10,071 )     395       (2,554 )     (9,676 )     (6,380 )
    Non-GAAP Net Income Attributable to Allegro MicroSystems, Inc.   $ 14,892     $ 6,020     $ 77,677     $ 20,912     $ 154,171  
    Basic weighted average common shares     189,182,850       193,465,708       192,431,094       191,324,281       192,214,210  
    Diluted weighted average common shares     189,710,595       194,705,716       195,100,855       192,154,185       195,055,495  
    Non-GAAP Basic Earnings per Share   $ 0.08     $ 0.03     $ 0.40     $ 0.11     $ 0.80  
    Non-GAAP Diluted Earnings per Share   $ 0.08     $ 0.03     $ 0.40     $ 0.11     $ 0.79  
                                   
    (1) GAAP Net (Loss) Income Attributable to Allegro MicroSystems, Inc. represents GAAP Net (Loss) Income adjusted for Net Income Attributable to non-controlling interests.  
    (2) Included in non-GAAP other costs are non-recurring charges that are individually immaterial for separate disclosure, such as project evaluation costs, which consists of costs and estimated costs incurred in connection with debt and equity financings or other non-recurring transactions, income (loss) in earnings of equity investments, and unrealized losses (gains) on investments.  
    (3) To calculate the tax effect of adjustments to GAAP results, the Company considers each Non-GAAP adjustment by tax jurisdiction and reverses all discrete items to calculate an annual Non-GAAP effective tax rate (“NG ETR”). This NG ETR is then applied to Non-GAAP Profit Before Tax to arrive at the tax effect of adjustments to GAAP results.  
             
    Reconciliation of Non-GAAP Free Cash Flow and Non-GAAP Free Cash Flow as Percentage of Net Sales        
                                   
        Three-Month Period Ended     Six-Month Period Ended  
        September 27,
    2024
        June 28,
    2024
        September 29,
    2023
        September 27,
    2024
        September 29,
    2023
     
        (Dollars in thousands)     (Dollars in thousands)  
    GAAP Operating Cash Flow   $ 15,547     $ 34,196     $ 46,730     $ 49,743     $ 96,393  
    GAAP Operating Cash Flow (% of net sales)     8.3 %     20.5 %     17.0 %     14.0 %     17.4 %
    Non-GAAP adjustments                              
    Purchases of property, plant and equipment     (9,972 )     (10,977 )     (31,191 )     (20,949 )     (76,101 )
                                   
    Non-GAAP Free Cash Flow   $ 5,575     $ 23,219     $ 15,539     $ 28,794     $ 20,292  
    Non-GAAP Free Cash Flow (% of net sales)     3.0 %     13.9 %     5.6 %     8.1 %     3.7 %
                                             

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

    The MIL Network

  • MIL-OSI USA: Governor Newsom issues executive order tackling rising electric bills

    Source: US State of California 2

    Oct 30, 2024

    What you need to know: The Governor signed an executive order to help curb rising electricity costs and provide electric bill relief.

    SACRAMENTO – Today, Governor Gavin Newsom signed an executive order designed to reduce electric costs for Californians. 

    The Governor’s action encourages electric bill relief while maintaining the state’s commitment to achieving carbon neutrality and 100% clean electricity by 2045. The action comes as millions of Californians received an average credit of $71 on their October electric bills from the California Climate Credit, provided by the state’s Cap-and-Trade program.

    We’re taking action to address rising electricity costs and save consumers money on their bills. California is proving that we can address affordability concerns as we continue our world-leading efforts to combat the climate crisis.

    Governor Gavin Newsom

    Tackling rising electricity costs

    While California has been successful in keeping electric bills lower than many other states on average thanks to decades of work advancing energy efficiency standards, Californians have seen their electric bills rising in recent years. A major driver has been critical utility wildfire mitigation efforts that have accelerated to match the pace of the climate crisis, as well as several programs added over time. 

    The Governor’s executive order addresses both of these cost drivers by zeroing in on some programs that could be inflating customer bills and evaluating utility wildfire mitigation expenses for potential administrative savings. 

    The Governor’s executive order:

    • Encourages electric bill relief. The executive order asks the California Public Utilities Commission (CPUC) to identify underperforming programs and return any unused energy program funds back to customers receiving electric and gas service from private utilities as one or more credits on their bills. 
    • Maximizes the California Climate Credit. The executive order directs the California Air Resources Board (CARB) to work with the CPUC to determine ways to maximize the California Climate Credit, which is a twice annual credit that shows up on many Californians’ electric and gas bills in the spring and fall and is funded by the state’s Cap-and-Trade program.
    • Manages and reduces electric costs for the long-term. The executive order asks the CPUC to evaluate electric ratepayer supported programs and costs of regulations and make recommendations on additional ways to save consumers money. It also asks the CPUC to pursue any federal funding available to help lower electricity costs for Californians. Additionally, the executive order directs the California Energy Commission (CEC) to evaluate electric ratepayer-funded programs and identify any potential changes that could save Californians money on their bills. 
    • Smarter wildfire mitigation investments. The executive order directs the Office of Energy Infrastructure Safety, and requests the CPUC, to evaluate utility wildfire safety oversight practices and ensure that utility investments and activities are focused on cost-effective wildfire mitigation measures. 

    Text of the executive order is available here.

    In addition to the Governor’s action, earlier this year, the CPUC approved a proposal to reduce the price of residential electricity through a new billing structure authorized by the state Legislature. This follows actions in recent years such as providing direct relief to customers and using state funds, rather than ratepayer monies, to develop a Strategic Reliability Reserve to maintain electric grid reliability during extreme conditions.

    The Governor welcomes partnership with the legislature to further additional actions that will address electric bill affordability.

    “Californians expect us to take a hard look at their monthly energy and electricity bills and deliver reduced costs and savings for the long-term,” said Assembly Speaker Robert Rivas (D-Salinas). “I support increased oversight efforts, because regulators must ensure energy programs are implemented effectively and responsibly. The Governor’s action today is another step forward to lessen households’ total energy burden and lower the cost of living in our state.”

    “Rising electricity costs are impacting Californians and their quality of life,” said Senate President pro Tempore Mike McGuire (D-North Coast). “The state, including its regulatory agencies, needs to buckle down and blunt the expanding fiscal impacts on ratepayers. This is an important start by Governor Newsom, and the Senate plans to double down on this progress in the months ahead.”

    Press Releases, Recent News

    Recent news

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    News What you need to know: Governor Newsom today announced 37 new grant awards totaling more than $827 million to help more than 100 local communities and organizations create long-term solutions to address homelessness. The grant agreements include strong…

    News SACRAMENTO – Governor Gavin Newsom and First Partner Jennifer Siebel Newsom issued the following statement regarding the death of Barstow Fire Protection District Fire Captain Garret Miller: “Our heartfelt sympathies are with Fire Captain Miller’s family,…

    MIL OSI USA News

  • MIL-OSI United Kingdom: Ten-year ban for director who promoted tax avoidance scheme costing HMRC more than £2.5m

    Source: United Kingdom – Executive Government & Departments

    Director disqualified for operating tax avoidance scheme without notifying authorities

    • Alastair Lunt was the director of Peak PAYE Ltd which operated a tax avoidance scheme which resulted in more than £2.5 million of unpaid tax 

    • The scheme, which had around 250 users, promised to help its customers avoid paying income tax and National Insurance 

    • Lunt has been disqualified as a company director until September 2034 

    A director who promoted a tax avoidance scheme which deprived HM Revenue and Customs (HMRC) of more than £2.5 million in unpaid tax has been disqualified. 

    Alastair Lunt was the director of Peak PAYE Ltd when it caused losses of at least £2.64 million to HMRC between October 2020 and February 2022. 

    Lunt had failed to notify HMRC of the scheme, which had around 250 users, as he was required to by law. 

    The 36-year-old, who now lives in southern California, was banned as a company director for 10 years. 

    Claire Entwistle, Assistant Director of Operations at the Insolvency Service, said: 

    Tax avoidance schemes are marketed as ways for people to pay less tax but do not always work as advertised, landing customers instead with a big tax bill. 

    Our public services also rely on everyone paying their taxes and schemes such as this deprive the UK of the revenue it needs to invest in our hospitals, schools and roads. 

    Peak PAYE’s director, Alastair Lunt, was required to notify HMRC of the scheme. He failed to do so, causing substantial losses to the public purse. 

    We will continue to work closely with our partners at HMRC to disrupt and clamp down on scheme promoters such as Peak PAYE.

    Peak PAYE operated its tax avoidance scheme by paying contractors the National Minimum Wage, and then paying the remainder of their wages disguised as a financial option or as a salary advance. 

    The company, which had a registered office in Manchester, promised users they could avoid paying National Insurance and income tax as a result. 

    Promoters of tax avoidance schemes are required to inform HMRC. Peak PAYE did not do this between October 2020 and February 2022.

    The company was ordered by HMRC to stop running the scheme in November 2022 and entered liquidation the following month. 

    Lunt moved to his current address of 16th Place, Costa Mesa, Orange County after his involvement with Peak PAYE. 

    The Secretary of State for Business and Trade accepted a disqualification undertaking from Lunt, and his ban started on Monday 30 September. 

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

    Further information 

    Updates to this page

    Published 31 October 2024

    MIL OSI United Kingdom

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

    Source: Hong Kong Government special administrative region

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

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

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

    NNNN

    MIL OSI Asia Pacific News

  • MIL-OSI Security: Military Leaders from the US and Morocco Strengthen Partnerships at the Marrakech Airshow 2024

    Source: United States AFRICOM

    U.S. Air Force aircraft arrived at the Marrakech Airshow 2024 (MAS), Tuesday, Oct. 29.

    The trade show features static and aerial displays of military and civilian aircraft and is an opportunity for international aerospace industry representatives to showcase their capabilities at the Marrakech Royal Moroccan Air Force Base from Oct. 30 to Nov. 2, 2024. The air show is also an opportunity for high level military officials to meet with their Moroccan Royal Armed Forces counterparts and the Ministry of Industry and Trade.

    This year, the United States is participating with several aircraft platforms including a C-130J Super Hercules from Ramstein Air Base, Germany, and a Utah Air National Guard KC-135 Stratotanker. U.S. Air Force participation in this international exhibition is intended to strengthen U.S. and international security assistance efforts as well as U.S. strategic partnerships with African countries.

    We are glad to be back in Morocco,” said Brig. Gen. Ricky Mills, Assistant Deputy Under Secretary of the Air Force, International Affairs. “The interactions and exchanges we have with our partners at MAS 2024 allow us to learn from and leverage the strengths of other nations.”

    Also attending is U.S. Air Force Brig. Gen. Shawn Holtz, Deputy Director of Strategy, Engagement and Programs for U.S. Africa Command.

    “The United States and the Royal Armed Forces of Morocco share a longstanding partnership, with Morocco hosting AFRICOM’s largest exercise, African Lion, and partnering with the Utah National Guard for more than 20 years,” said Holtz. “The Marrakech Air Show is one more opportunity to strengthen our relationship, exchange ideas, promote trust, and bolster security cooperation in the region.”

    The two generals are taking part in bilateral discussions with senior leaders from the Royal Armed Forces and other African military leaders.

    U.S. Ambassador to Morocco Puneet Talwar is also attending the air show.

    “Congratulations to Morocco on the success of this world-class event!” said Ambassador Talwar. “The United States has been a part of each Marrakech Air Show since its first edition, and we welcome the opportunity for U.S. companies to showcase the breadth of cutting edge technology that exemplifies American innovation.  Morocco’s rapidly growing role as regional economic hub, and investments in aerospace infrastructure make this an exciting time to grow our partnership.

    The air show and discussions highlight the strategic partnership between the United States and Morocco which is rooted in hundreds of years of shared interests in regional peace, security, and prosperity, and a longstanding commitment to continued cooperation.

    The Utah National Guard has also held an active partnership with Morocco since 2003 through the State Partnership Program, fostering strong, trust-based relationship focused on security cooperation. Through joint training and humanitarian missions, both forces exchange knowledge, refine tactics, and enhance operational capabilities.

    The Marrakech Airshow is held every two years since 2008, but has been on hiatus since 2018 due to the COVID-19 pandemic.

    MIL Security OSI

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

    Source: Reserve Bank of India

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

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

    Ajit Prasad          
    Deputy General Manager
    (Communications)    

    Press Release: 2024-2025/1409

    MIL OSI Economics

  • MIL-OSI China: 3rd phase of 136th Canton Fair opens in S China

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

    MIL OSI China News

  • MIL-OSI Russia: The Academic Council discussed the problems of education and the tasks of the Institute of Physics and Mathematics

    Translation. Region: Russian Federation –

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

    The next meeting of the Polytechnic University Academic Council was marked presentation of the mantle of the Honorary Doctor of SPbPU to the head of the S. M. Kirov Military Medical Academy, Lieutenant General, Academician of the Russian Academy of Sciences Evgeny Kryukov.

    In addition, the ceremonial part of the meeting, as usual, included the presentation of certificates of academic titles to university employees and the honoring of the best polytechnicians who have earned awards in science, education, social and cultural life and sports.

    Rector of SPbPU Andrey Rudskoy congratulated the director of the Higher School of Sports Pedagogy Vladislav Bakayev and professor of the Higher School of Service and Trade Sergey Barykin on being awarded the title of “professor”. The certificate of assignment of the academic title of associate professor was received by the leading research fellow of the laboratory “Synthesis of New Materials and Structures” Vadim Sufiyarov.

    The company “Kodeks” received a commemorative medal and gratitude from the university, represented by its CEO andgraduate of the Physics and Mechanics Department of the Polytechnic University Sergei Tikhomirov. “Kodeks” made a significant contribution to the development of the SPbPU Endowment Fund and the formation of the endowment “Development of scientific, educational, youth and educational projects of PhysMech”. Also, for assistance in the formation of the endowment capital of PhysMech, its graduates, Associate Professor of the Higher School of Mechanics and Control Processes Natalia Ermakova and Professor of the Higher School of Applied Mathematics and Computational Physics, received awards. Maxim Frolov.

    The Polytechnic University fruitfully cooperates with the Kalininsky District in many areas. The honorary badge “For services to the Kalininsky District” was awarded to the director of the Higher School of Engineering and Economics Dmitry Rodionov.

    From October 14 to 17, the super final of the Open International Student Internet Olympiad in Mathematics was held. In the individual standings, the silver medal was won by PhysMech student Chinh Thi Thu Hoai, and the bronze medal was won by IMMiT student Phan Mau Dat. The Polytechnic team included another PhysMech student, Ilya Grishchenko, and the guys also took bronze in the team standings. The scientific supervisor was Maria Bortkovskaya, associate professor of the Department of Higher Mathematics.

    The gold medal of the IV International Construction Championship in the individual nomination “Information Modeling” was won by the student of the Civil Engineering Institute Serafim Zagorodniy. In the team standings, the gold of the championship was won by the students of the ICI: Dmitry Zharkov, Alexandra Kulakova, Ulyana Popova, Mikhail Safoshkin and Alina Doroshenko. The expert of the championship, assistant of the Civil Engineering Institute Alexander Mitin received a letter of gratitude from the Minister of Construction and Housing and Communal Services of the Russian Federation Irek Faizullin and the General Director of the ANO “Russia – Country of Opportunities” Alexey Komissarov.

    The next series of congratulations concerned the athletes.

    The Polytechnic University team won first place in the overall team standings at the student orienteering competitions within the first stage of the IX All-Russian Summer Universiade and third place in the overall team standings of the Universiade. Pavel Ivanov (IEIT) also won the Universiade in the sprint discipline, and together with Alexander Gumennikov (PhysMech) won silver medals in the men’s relay.

    The Polytechnic team won 1st place in the student volleyball competitions as part of the first stage of the Universiade. The Academic Council honored players Egor Tretyakov (IMMiT) and Ilya Smirnov (IE). At the Universiade, our Polytechnic team entered the top 10 best student teams in the country.

    Ivan Sokolov, a student at the Institute of Mechanical Engineering, Materials and Transport, won first place in the qualifying tournament for the World Championship in Mixed Martial Arts (MMA) “Steel Lion JFC” among juniors and became a Master of Sports of Russia in this sport.

    Vice-Rector for Educational Activities Lyudmila Pankova spoke on the meeting agenda. She spoke about the results of work in the 2023–2024 academic year and the tasks for the 2024–2025 academic year.

    The number of students as of October 1, 2024 was 33,818. Of these, 30,870 are studying in higher education programs (21,810 in bachelor’s programs, 2,124 in specialist programs, 6,936 in master’s programs), and 2,948 in secondary specialized programs. There are 121 people studying in the specialist program at the branch in Sosnovy Bor. There are 156 people in the general education Natural Science Lyceum.

    There are 357 main educational programs at the Polytechnic University, including 142 bachelor’s programs, 15 specialist programs, and 200 master’s programs. There are 22 programs at the college.

    In the 2023–2024 academic year, 23 new basic educational programs were launched. For 2024–2025, 19 new basic educational programs were developed: two for bachelor’s degrees, one for specialist degrees, and 16 for master’s degrees.

    51 basic educational programs are being implemented under network agreements, including 13 with Slavic universities.

    A system of individual achievements has been developed and implemented as a pilot project, allowing teachers to create different trajectories for assessing students, taking into account their individual capabilities, and to conduct interim assessments based on the results of ongoing monitoring of academic performance outside of the examination session.

    A project-based approach has been introduced into the state final certification, and defenses of final qualification works have been organized in new formats — as a project and as a startup. 48 students successfully defended their collective final works as a project (21 projects were completed), and 52 people (26 startups) successfully defended their final qualification works as a startup.

    A policy in the field of formation has been developed and introduced career trajectories for professional development of teachers. Starting from the 2024–2025 academic year, there will be four career paths: research teacher, mentor teacher, practicing teacher, and intern. The transition to them occurs through a competitive selection of faculty members.

    A project to support fundamental training in engineering fields has been launched. A program to improve the quality of teaching fundamental disciplines by reducing the teaching load and providing additional payments has been approved. 181 teachers are participating in the project.

    Entrance testing of first-year engineering students in mathematics and physics was conducted to organize in-depth fundamental training for gifted children and remedial training for those who are lagging behind. A pilot program for in-depth study of mathematics and physics for talented students was launched at IMMiT and IKNK.

    The second issue on the agenda was also related to fundamental disciplines. To ensure advanced training of students in physics and mathematics, taking into account engineering specifics, the Institute of Physics and Mathematics was created at the Polytechnic. Its director Pavel Zakharov spoke about the IFiM development program.

    Also at the meeting, members of the Academic Council voted to award further academic titles to Polytechnic employees. SPbPU Academic Secretary Dmitry Karpov reported on monitoring the implementation of the Academic Council’s decisions.

    Photo archive

    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: Kosovo and Serbia must show their commitment to cooperation and dialogue: UK statement at the UN Security Council

    Source: United Kingdom – Executive Government & Departments

    Statement by Fergus Eckersley, UK Minister Counsellor, at the UN Security Council meeting on UNMIK.

    Let me begin by thanking the Special Representative for the work she and her team are doing to promote stability and respect for human rights in Kosovo.

    The UK is a long-standing supporter of Kosovo’s sovereignty and independence. We remain committed to supporting an inclusive, diverse and multi-ethnic democracy in Kosovo.

    We welcome, for example, Kosovo’s efforts to recruit police officers from non-majority communities, and its commitment to tackling Conflict Related Sexual Violence including through its leadership of the International Forum for Women, Peace and Security.

    Yet for many years the absence of a normal relationship between Kosovo and Serbia has negatively impacted the lives of individuals living in both countries and impacted regional stability.

    In recent weeks we’ve seen positive steps towards greater cooperation. This includes easing restrictions on Serbian imports into Kosovo, and the agreement securing Kosovo representation in the Central European Free Trade Agreement. 

    We are, however, concerned that progress in the EU-facilitated dialogue has been faltering. We call upon both parties to reaffirm their commitment to the EU-facilitated dialogue and we echo the Secretary-General’s call for greater participation of women in the process.

    It is important that both sides demonstrate the political will and the courage to fully implement existing agreements under the dialogue, including the establishment of an Association of Serb-Majority Municipalities.

    At the same time, it is important for all sides to avoid actions which could jeopardise such progress. We urge Kosovo to carefully consider the impact of its decisions on all its citizens including those from non-majority communities and to work with its partners.

    And we urge Serbia to play its part in supporting efforts to ensure justice and accountability for the perpetrators of last year’s shocking attack in Banjska and to play a constructive role in reducing tensions and promoting positive relations in the region.

    I would like to end by expressing the UK’s gratitude to the Special Representative and all Mission staff who have contributed to UNMIK’s work over the last 25 years.

    Promoting dialogue and trust-building between Kosovo’s communities is and remains vital.

    However, it has been over sixteen years since Kosovo’s independence and the situation is unrecognisable from 1999. It is therefore time for this Council to review UNMIK’s role to reflect conditions on the ground.

    Updates to this page

    Published 30 October 2024

    MIL OSI United Kingdom

  • MIL-OSI USA: Governor Murphy Joins NJ TRANSIT to Showcase Brand New Multilevel Rail Car

    Source: US State of New Jersey

    174 New Rail Cars Will Help Mechanical Reliability

    Vehicle Maximum Speed Will Increase to 110 Miles Per Hour

    Latest Generation Features New Customer Amenities Such as USB Charging Ports

    KEARNY, NJ – Governor Phil Murphy and NJ TRANSIT President & CEO Kevin S. Corbett today previewed the next generation of multilevel rail cars, modernizing the fleet which will significantly improve reliability, capacity and customer comfort. The latest generation of multilevel rail cars was unveiled at an event at NJ TRANSIT’s Meadows Maintenance Complex (MMC) in Kearny.

    “Providing modern, reliable equipment is a critical component to improving New Jersey’s infrastructure, particularly with regard to public transit,” said Governor Phil Murphy. “These multilevel rail cars are equipped with innovative features that meet the everyday needs of our commuters. Upon their completion, these upgraded rail cars will expand access to reliable and comfortable transportation for NJ TRANSIT riders.”

    “These 174 new multilevel rail cars being unveiled today will enhance the experience for NJ TRANSIT riders by increasing capacity, utilizing cutting-edge technology, and ensuring the safety and reliability of New Jersey’s transportation system,” said Senator Cory Booker. “This investment to modernize our transit system along the busiest rail corridor in the country will encourage more New Jerseyans to opt for public transit over driving, resulting in reduced congestion and lower emissions across our state.” 

    “Since day one of his administration, Governor Murphy has been committed to improving NJ TRANSIT to ensure New Jersey residents have a reliable public transit experience. Today marks another milestone in that mission,” said Senator George Helmy. “These Multilevel III cars propel us into a new generation of NJ TRANSIT. The modern, state-of-the-art fleet will ensure customers who rely on this service daily have a faster, more comfortable, and convenient experience.” 

    “With the purchase of these new multilevel rail cars, we’re taking another step toward a more reliable, efficient, and modernized public transit system,” said Congressman Rob Menendez. “Commuters deserve the best possible experience when traveling through our region, and I’m grateful that our federal and state leaders will continue partnering with NJ Transit to help make that a reality.” 

    “The FTA is proud to support NJ TRANSIT as it introduces 174 new multi-level railcars into service,” said Michael Culotta, Regional Administrator of the Federal Transit Administration. “The new fleet, supported by $567.5 million in federal funds, includes state-of-the-art technologies providing improved accessibility, safety, and efficiency, which will leave an indelible mark on riders and align seamlessly with the goals of the FTA and the Biden-Harris Administration.” 
     
    “As we unveil NJ TRANSIT’s new Multilevel III rail cars, we are taking a significant step forward in sustainable transportation and government efficiency,” said Assemblyman Clinton Calabrese, Chair of the Assembly Transportation and Independent Authorities Committee. “These electric, self-propelled vehicles should not only enhance capacity and comfort for commuters but also significantly enhance mechanical reliability. Their energy efficiency and reduced emissions underscore our commitment to sustainability and minimizing environmental impact. By embracing this advanced technology, we are positioning New Jersey as a national leader in clean energy transportation, addressing both the immediate and long-term goals of a greener, more efficient, and more connected state.” 

    “NJ TRANSIT is committed to improving every aspect of the customer journey, and the 174 new multilevel rail cars will help achieve that by significantly improving reliability, increasing capacity and enhancing the onboard experience,” said NJ TRANSIT President & CEO Kevin S. Corbett. “NJ TRANSIT is grateful to Governor Murphy, the New jersey legislators and our partners at the Federal Transit Administration (FTA) for delivering the necessary funding to ensure our system continues to meet the growing demands of our region, and the expectations of our customers.” 

    “Alstom is proud to help meet the vision and leadership of Governor Murphy and NJ TRANSIT President & CEO Kevin Corbett to provide transit users in New Jersey with a more modern and comfortable ride,” said Alstom Vice President, Head of Rolling Stock David Van der Wee. “Innovative new trains with 21st century amenities will give commuters, students, sports fans, every kind of NJ TRANSIT customer, the high-quality experience they have been demanding and deserve. Our employees in Upstate New York couldn’t be prouder to deliver these new trains.” 

    Governor Murphy and Corbett previewed the first of 174 Multilevel III cars during an event at the agency’s Governor Murphy and Corbett previewed the first of 174 Multilevel III cars during an event at the agency’s MMC in Kearny. They highlighted many of the new car’s amenities, including USB charging ports and onboard information displays. The new cars, manufactured by Alstom Transportation in Plattsburgh, NY, will offer a range of benefits over the older, 40+ year-old single level cars they will replace, including dramatic improvement in mechanical reliability. The vehicle maximum speed will increase to 110 miles per hour. The cars, which will begin entering service mid-next year, will be compliant with the latest federal regulations, including Positive Train Control.

    The Multilevel III Power Cars are Electric Multiple Units (EMUs), meaning they are self-propelled and don’t require a separate locomotive. Electric motors are incorporated within one or a number of the vehicles on the train. They are the first of their kind in North America.

    In December of 2018, the NJ TRANSIT Board of Directors approved a rail rolling stock vehicle procurement award to Bombardier Transit Corporation (now Alstom Transportation Inc.) for 113 Multilevel III rail vehicles to replace the single-level, self-propelled Arrow III rail vehicles manufactured more than 40 years ago. In February 2022, the NJ TRANSIT Board approved the purchase of an additional 25 Multilevel III vehicles. In July 2024, the Board approved the purchase of an additional 36 Multilevel III vehicles, bring the total number of new cars to 174 since 2018.

    MIL OSI USA News

  • MIL-OSI USA: Justice Department Releases Information on Efforts to Protect the Right to Vote, Prosecute Election Fraud, and Secure Elections

    Source: US State of California

    Consistent with longstanding Justice Department practices and procedures, the department today is providing information about its efforts, through the Civil Rights Division, Criminal Division, National Security Division (NSD), and U.S. Attorneys’ Offices throughout the country, to ensure that all qualified voters have the opportunity to cast their ballots and have their votes counted free of discrimination, intimidation, or criminal activity in the election process, and to ensure that our elections are secure and free from foreign malign influence and interference.

    Civil Rights Division

    The department’s Civil Rights Division is responsible for ensuring compliance with the civil provisions of federal statutes that protect the right to vote and with the criminal provisions of federal statutes prohibiting discriminatory interference with that right. This work is often performed in partnership with U.S. Attorneys’ Offices.

    The Civil Rights Division’s Voting Section enforces the civil provisions of a wide range of federal statutes that protect the right to vote including: the Voting Rights Act; National Voter Registration Act; Uniformed and Overseas Citizens Absentee Voting Act; Help America Vote Act; and Civil Rights Acts. Among other things, collectively, these laws:

    • Prohibit election practices that have either a discriminatory purpose or a discriminatory result on account of race, color, or language minority status;
    • Prohibit intimidation of voters;
    • Allow voters who need assistance in voting because of disability or inability to read or write to receive assistance from a person of their choice (other than agents of their employer or union);
    • Require minority language election materials and assistance in certain jurisdictions;
    • Require accessible voting systems for voters with disabilities;
    • Require that provisional ballots be offered to voters who assert they are registered and eligible to vote in the jurisdiction, but whose names do not appear on poll books;
    • Require states to provide for absentee voting for uniformed service members serving away from home, their family members also away from home due to that service, and U.S. citizens living abroad; and
    • Require covered states to offer the opportunity to register to vote through offices that provide driver licenses, public assistance, and disability services, as well as through the mail, and to take steps regarding maintaining voter registration lists.

    The Civil Rights Division’s Disability Rights Section enforces the Americans with Disabilities Act (ADA), which prohibits discrimination in voting based on disability. The ADA applies to all aspects of voting, including voter registration, selection and accessibility of voting facilities, and the casting of ballots on Election Day or during early voting, whether in-person or absentee.

    The Civil Rights Division’s Criminal Section enforces federal criminal statutes that prohibit voter intimidation and voter interference based on race, color, national origin, or religion.

    • Throughout the election cycle, Civil Rights Division attorneys in the Voting, Disability Rights, and Criminal Sections in Washington, D.C., will be ready to receive complaints of potential violations of any of the statutes the Civil Rights Division enforces. The Civil Rights Division will work closely with counterparts at U.S. Attorneys’ Offices and other department components to review and take appropriate action concerning these complaints.
    • Individuals with complaints related to possible violations of the federal voting rights laws can call the Justice Department’s toll-free telephone line at 800-253-3931, and can also submit complaints at www.civilrights.justice.gov.
    • Individuals with questions or complaints related to the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 833-610-1264 (TTY) or submit a complaint through a link on the department’s ADA website at www.ada.gov.

    Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911. They should also be reported to the department after local authorities are contacted.

    Criminal Division and the Department’s 94 U.S. Attorneys’ Offices

    The department’s Criminal Division oversees the enforcement of federal laws that criminalize certain forms of election fraud and vindicate the integrity of the federal election process.

    The Criminal Division’s Public Integrity Section and U.S. Attorneys’ Offices are responsible for enforcing the federal criminal laws that prohibit various forms of election crimes, such as destruction of ballots, vote-buying, multiple voting, submission of fraudulent ballots or registrations, alteration of votes, and malfeasance by postal or election officials and employees. See Justice Manual 9-85.210 (discussing requirements regarding election crime matters); 9-85.300 (discussing approach to ballot fraud); 9-85.400 (discussing application of 18 U.S.C. § 592); 9-85.500 (discussing timing of actions).

    The Criminal Division and the U.S. Attorneys’ Offices are also responsible for enforcing federal criminal law prohibiting unlawful threats of violence against election workers, and prohibiting voter intimidation and voter suppression for reasons other than race, color, national origin, or religion (as noted above, voter intimidation and voter suppression that has a basis in race, color, national origin, or religion is addressed by the Civil Rights Division often in partnership with the U.S. Attorneys’ Offices).

    U.S. Attorneys’ Offices around the country designate Assistant U.S. Attorneys who serve as District Election Officers (DEOs) in their respective districts. DEOs are responsible for overseeing potential election-crime matters in their districts, and for coordinating with the department’s election-crime experts in Washington, D.C.

    The U.S. Attorneys’ Offices work with specially trained FBI personnel in each district to ensure that complaints from the public involving possible election crimes are handled appropriately. Specifically:

    • In consultation with federal prosecutors at the Public Integrity Section in Washington, D.C., the DEOs in U.S. Attorneys’ Offices, FBI officials at headquarters in Washington, D.C., and FBI special agents serving as Election Crime Coordinators in the FBI’s 56 field offices will be on duty while polls are open to receive complaints from the public.
    • Election-crime complaints should be directed to the local U.S. Attorney’s Office or the local FBI field office. A list of U.S. Attorneys’ Offices and their telephone numbers can be found at www.justice.gov/usao/districts. A list of FBI field offices and accompanying telephone numbers can be found at www.fbi.gov/contact-us.
    • Public Integrity Section prosecutors are available to consult and coordinate with the U.S. Attorneys’ Offices and the FBI regarding the handling of election-crime allegations.

    All complaints related to violence, threats of violence, or intimidation at a polling place should be reported first to local police authorities by calling 911. After alerting local law enforcement to such emergencies by calling 911, the public should contact the Justice Department.

    National Security Division

    The department’s National Security Division (NSD) supervises the investigation and prosecution of cases affecting or relating to national security, including any cases involving foreign malign influence and interference in elections or violent extremist threats to elections. In this context:

    • NSD oversees matters involving a range of malign influence activities that foreign governments may attempt.
    • NSD’s Counterintelligence and Export Control Section oversees matters involving covert information operations (e.g., to promulgate disinformation through social media); covert efforts to support or denigrate political candidates or organizations; and other covert influence operations that might violate various criminal statutes.
    • NSD’s National Security Cyber Section oversees such matters when they are cyber-enabled (i.e., when online platforms, such as social media and other online services, are central to the commission of the offense), as well as those involving computer hacking of election or campaign infrastructure.
    • NSD’s Counterterrorism Section oversees matters involving international and domestic terrorism and supports law enforcement in preventing any acts of terrorism that impact Americans, including any violent extremism that might threaten election security.

    As in past elections, the National Security Division will work closely with counterparts at the FBI and our U.S. Attorneys’ Offices to protect our nation’s elections from any national security threats. Attorneys from National Security Division sections will be partnered with FBI Headquarters components to provide support to U.S. Attorneys’ Offices and FBI field offices to counter any such threats. The Department of Homeland Security also plays its own important role in safeguarding critical election infrastructure from cyber and other threats.

    Complaints related to violence, threats of violence, or intimidation at a polling place should always be reported immediately to local authorities by calling 911 and, after local authorities are contacted, then should be reported also to the department.

    Protecting the right to vote, prosecuting election crimes, and securing our elections are all essential to maintaining the confidence of all Americans in our democratic system of government. The department encourages anyone with information regarding concerns in these subject areas to contact the appropriate authorities.

    For more information about the department’s work to ensure compliance with federal civil and criminal laws related to voting, please visit www.justice.gov/voting and www.justice.gov/criminal/criminal-pin/election-crimes-branch.

    MIL OSI USA News

  • MIL-OSI: Magma to build out liquid staking on Monad and restaking with Ether.fi following $3.9M seed fundraise

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, Oct. 30, 2024 (GLOBE NEWSWIRE) —  Following a $3.9M seed round with participation from Bloccelerate, Animoca Ventures, CMS Holdings, Maelstrom and others, Magma is building MEV-powered liquid staking on Monad. Additionally, Magma will partner with Ether.fi to build the first Restaking integration on Monad. In the last few months, Magma has solidified partnerships with a network of best-in-class validators, including Staked (as part of Kraken), P2P, A41, Validation Cloud, Everstake, Chorus One, Finoa Consensus Services, Bware Labs alongside core DeFi primitives, including Ether.fi, Wormhole, Pyth, Switchboard, LFJ (Previously Trader Joe), Curvance, and others. The Magma Team was founded by David Mass and Meir Bank, who were previously at Citibank and AngelDAO.

    Additional Investors in the round included Veil VC, Builder Capital, Infinity Ventures, RockTree Capital, Wise3 Ventures, Stake Capital, Relayer Capital, and others. Angel investors who contributed to the fundraise included Meltem Demirors, Kartik Talwar, Mike Silagadze, Alan Curtis, and Ben Lakoff.

    With this investment, the company plans to further develop its liquid staking platform and MEV (Maximal Extractable Value) architecture. MEV is the additional value that can be extracted during block production beyond the standard block reward and gas fees. This is achieved by manipulating the inclusion, exclusion, or ordering of transactions within a blockchain.

    David Mass, Co-founder and CEO, said, “We have been actively building in the space for a few years and committed to building in the Monad ecosystem in the Summer of 2023. We wanted to build a brand and a community inspired by the overarching success similar to Monad’s parabolic growth. We have a fun brand, but most importantly, we are focusing on building a best-of-breed product for our category type, which will be vetted by some of the best auditors in the space.”

    Looking ahead to Q4

    “We have been working diligently on pipelining strategic partnerships throughout the Monad ecosystem. The next few months will be exciting as we look forward to launching on testnet and eventually mainnet with a unique community points program,” Mass explains.

    About Magma

    Magma is a decentralized Liquid Staking Protocol built on the Monad Network, an Ethereum-compatible Layer 1 blockchain. Users of Magma will be able to stake their Monad tokens in exchange for gMONAD, a liquid staking token (LST) which allows users to retain their liquidity to utilize throughout the Monad ecosystem and earn staking rewards. Magma is also building MEV infrastructure for Monad to maximize the performance of the Monad Network. Magma users will be able to utilize their LST to earn restaking rewards with Ether.Fi.

    X | Website | Discord

    Contact:
    David Mass
    Contact@magmastaking.xyz
    david@hydrogenlabs.xyz

    Disclaimer: This content is provided by Magma. The statements, views and opinions expressed in this column are solely those of the content provider. The information provided in this press release is not a solicitation for investment, nor is it intended as investment advice, financial advice, or trading advice. It is strongly recommended you practice due diligence, including consultation with a professional financial advisor, before investing in or trading cryptocurrency and securities. Please conduct your own research and invest at your own risk.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/bb86bad8-6cd4-4ba3-9d3c-2c9bf889c6c5

    The MIL Network

  • MIL-OSI USA: Remarks of Commissioner Summer K. Mersinger at ISDA’s Annual Legal Forum

    Source: US Commodity Futures Trading Commission

    Good morning and thank you to ISDA for inviting me to join today’s conference.  It is an honor to speak to all of you this morning.  Before I begin, I need to provide my standard disclaimer:  The views I express are my own and do not necessarily reflect the views of my fellow commissioners, of the Commodity Futures Trading Commission (“CFTC” or “Commission”), or of the United States Government.

    As the fall weather begins to set in, the days become shorter and colder, and the leaves change colors, it is a time to reflect on how far we have come throughout the year and to prepare for where we must go as winter and the new year approach.  In that vein, I want to speak today about enforcement and a few ideas for improvement.

    Expressing Dissent

    Over the past few weeks, I have had several opportunities to speak with professionals from a variety of industries on numerous topics.  While I always value these discussions, I was surprised by how many times people asked me:  “Are you enjoying the job?”  Usually, I am quick to answer, “Of course I enjoy the job.”  The work we do at the CFTC is interesting, impactful, and important.  I am constantly learning, and there is never a dull day.

    I started to wonder, though, if there was a reason people were frequently asking me this question.  Maybe it was my body language; maybe I was not smiling enough; or maybe I have spent too much time with my teenage daughters and have adopted their surly demeanor.  But then it occurred to me—maybe they read my recent dissenting statements.  I have issued quite a few dissenting statements in the past few weeks[1], and I guess you could say I sounded a little frustrated, maybe even disgruntled.

    Well, I am here to tell you that despite my dissenting statements, I do enjoy my job, and I am incredibly grateful for the opportunity to serve as a commissioner at the CFTC—even on Friday afternoons when multiple enforcement matters appear in my inbox, and I realize that the shortest memo is a mere hundred plus pages long.

    I read every page of every document upon which I am asked to vote.  As one of five Presidentially-nominated and Senate-confirmed commissioners, I believe that it is my responsibility to do so because my fellow commissioners and I are the ones ultimately accountable for the charges we bring, the cases we settle, and the results of the CFTC’s enforcement program—and for balancing enforcement with all the other critical daily functions performed by the agency.

    As was wisely stated in the 51st Federalist Paper, “If men were angels, no government would be necessary.”[2]  And we all know that men (and women) are not angels.  Thus, government—including its enforcement function—is necessary.  Vigorous enforcement is a vital part of carrying out the CFTC’s mission.

    I would be remiss if I did not acknowledge the agency’s enforcement team and reaffirm my commitment to a robust enforcement program.  I am proud of the tireless work of the CFTC’s Division of Enforcement (“DOE”), whose experienced and conscientious attorneys, investigators, and other staff members are dedicated to identifying, prosecuting, and sanctioning those who violate the Commodity Exchange Act (“CEA”) and the CFTC’s rules.  But, like everything we do in life, we should look for opportunities to improve.

    Chasing Trendlines

    As most of you know, a large number of the CFTC’s enforcement actions are settled during the month—sometimes the week—before the end of the government’s fiscal year on September 30th.

    This September crunch is frustrating to all involved and potentially harmful to the agency’s agenda.  First, it diverts the agency’s attention from its other important responsibilities, as matters requiring Commissioners’ attention from other divisions are postponed and deferred.  Second, it incentivizes those hoping to settle with the CFTC to wait until the fiscal year-end, knowing the agency will be eager to get another point on the board before the clock runs out and that the resulting settlement will draw less public attention as just one of the myriad cases being announced at the same time.  Third, such a crunch diminishes the time for decision making and increases the risk of promulgating faulty interpretations of the CEA and CFTC regulations.  Wrongdoing occurs year-round.  Our enforcement docket should reflect that.

    After the close of each fiscal year, the CFTC’s Division of Enforcement publishes an Annual Report that typically proclaims success based on “headline stats,” such as the number of cases filed and the amount of monetary sanctions imposed during the previous fiscal year.[3]

    I believe it is time for the agency to stop prioritizing volume.  Rather than focus on making the current fiscal year statistics better than the previous year’s, the agency should concentrate on where improvements can be made in our regulatory oversight functions to prevent pervasive violations and should devote more resources to educating market participants and the general public on how to avoid becoming victims of fraudulent behavior.

    Enforcement Should be a Last Resort

    That said, I believe there is certainly a role for enforcement.  But enforcement should be the last resort to achieving compliance, not the first.  Yes, in cases of fraud, manipulation, and other willful violations of the law, enforcement is critical to punish wrongdoers and to deter misconduct by others.  But in other cases, oversight of the derivatives markets and market participants by the agency’s Division of Clearing and Risk (“DCR”), Division of Market Oversight (“DMO”), and Market Participants Division (“MPD”) can achieve compliance more effectively and efficiently than bringing a costly, time-consuming, resource-intensive, and backward-looking enforcement action.

    Clear and Workable Rules as the Foundation

    Where CFTC regulations are vague, the agency should not leverage these provisions to drive annual statistics.  Instead, we must communicate our expectations by writing clear, sensible, and workable rules, so that we can fairly require compliance with those obligations.

    Enforcement is but one tool available to the agency.  Our ability to achieve compliance with the CEA and the CFTC’s rules will be enhanced if we consider the underlying reasons for non-compliance and contemplate the most effective means of addressing that non-compliance, in particular cases.  Where the underlying reason is an unclear expectation, the onus is on the CFTC to revise its regulations accordingly.

    Appropriately Employing Settlement Authority

    It is no secret that most CFTC enforcement actions settle without litigation.  While such settlements enable us to achieve our enforcement objectives while conserving our scarce resources to root out and prosecute other violations, vague settlements cause confusion and undermine our efforts to achieve compliance.

    When settling, the CFTC issues an order that sets out the agency’s findings about what the settling party did and how it violated the law.  These orders are not binding precedents as a matter of law.  However, since they reflect a statement of the agency’s thinking, the public may understandably consider them as precedents—and the agency often cites them as persuasive authority in future cases, too.

    But remember:  No court has decided on the legal theories as applied to the particular facts that the CFTC includes in its settlement orders.  The legal theories advanced in settlement orders should not push the bounds of the agency’s authority.  Such orders should avoid theories that are novel, that are arguably beyond the limits of the CEA and its implementing regulations, or that are likely to raise additional questions or issues.  Otherwise, the agency risks creating regulatory expectations that become difficult to follow.

    Incentivizing Cooperation

    To foster voluntary compliance with the law and to provide transparency into certain aspects of enforcement determinations regarding penalties, we must further unwind the layers around how we recognize and credit those who self-report, offer cooperation during the enforcement process, and undertake remediation.

    First, a company is currently only eligible for a civil monetary penalty (“CMP”) credit for self-reporting if it makes its disclosure to DOE rather than to one of the CFTC’s oversight divisions (i.e., DCR, DMO, or MPD).[4]  This requirement is an unnecessary layer that unduly restricts self-reporting credit.  A self-report to an oversight division serves the agency’s interests by enabling that division to work with the company on compliance on a going-forward basis, while also referring the matter to DOE where appropriate to investigate whether an enforcement action is warranted for any violations that may have been committed.  To limit self-reporting credit to disclosures directly to DOE is to elevate form over substance.

    Second, if a company self-reports, substantially cooperates, and appropriately remediates, a reduced CMP should not be the only potential outcome.  Where a company has identified the problem, disclosed it to CFTC staff, analyzed the situation, provided a report of its findings to CFTC staff, and engaged in steps to address the problem—it has essentially performed many of the CFTC’s functions.  And such cooperation and remediation often come at a significant expense, which may include hiring an independent compliance consultant or monitor to investigate the company’s practices and procedures, to recommend improvements, and to ensure that remediation is completed.

    Of course, an enforcement action may be appropriate in these cases to assure that the company will complete its remediation and will report to DOE on the status of those remediation efforts.  But given that compliance objectives are being achieved often with fewer agency resources, substantial penalties may not be necessary.

    The Way Forward

    As I mentioned earlier, I am committed to strong enforcement at the CFTC, and I am proud of our Enforcement Division.  The agency’s enforcement professionals do an exemplary job in safeguarding the integrity of U.S. derivatives markets and those who use them.  However, there are opportunities for strategic reform.

    My hope is that today begins a conversation about the path ahead for enforcement at the CFTC.

    Thank you so much for your time today, and I wish you all a safe and fun Halloween.

    I would like to thank ISDA once again for inviting me and would be happy to answer audience questions.


    [1] Dissenting Statement of Commissioner Summer K. Mersinger Regarding cryptoiminerstrade.com, Expert Stocks Zone, FalconForexBot, and swiftminingexpert.com (Sept. 24, 2024), available at https://www.cftc.gov/PressRoom/SpeechesTestimony/mersingerstatement092424; Dissenting Statement of Commissioner Summer K. Mersinger Regarding Settlement With Piper Sandler Hedging Services, LLC (Sept. 23, 2024), available at https://www.cftc.gov/PressRoom/SpeechesTestimony/mersingerstatement092324; Dissenting Statement of Commissioner Summer K. Mersinger Regarding Settlement with Uniswap Labs (Sept. 4, 2024), available at https://www.cftc.gov/PressRoom/SpeechesTestimony/mersingerstatement090424.

    [2] The Federalist Papers, No. 51 (Feb. 8, 1788).

    MIL OSI USA News

  • MIL-OSI Africa: Africa Investment Forum welcomes Arab Bank for Economic Development in Africa (BADEA) as new partner ahead of the December Market Days in Rabat

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

    WASHINGTON D.C., United States of America, October 30, 2024/APO Group/ —

    The Arab Bank for Economic Development in Africa (BADEA) has joined the Africa Investment Forum (www.AfricaInvestmentForum.com) as a founding partner, marking a new phase in the Forum’s expansion and influence as a catalyst for mega investments into the continent.

    The official announcement came during a breakfast meeting of heads of the Africa Investment Forum Founding Partner institutions, convened by the African Development Bank in Washington, DC on the sidelines of the International Monetary Fund and World Bank’s annual meetings. During the meeting, the partners examined and adopted a new strategic framework to govern the forum. The meeting took place on Friday 25 October.

    In welcoming BADEA as a new partner, African Development Bank President Akinwumi Adesina said: “Since 2018, BADEA has been a steadfast supporter of the Africa Investment Forum, consistently contributing to the growth and success of this platform.”

    The Arab Bank for Economic Development in Africa is a multilateral development financial institution owned by 18 Arab countries. Its operations cover the entire Sub-Saharan African region.

    BADEA group president Dr. Sidi Ould Tah said the main shareholders of his bank had been working on a new mechanism to support investment flows to Africa. The group has sovereign funds under management with assets in the trillions of dollars, of which they had pledged to channel a part for Africa’s infrastructure needs.

    “The role of BADEA is to catalyse resources for Africa. BADEA will work with all the member countries of AIF to make this pledge a reality,” Tah said.                                 

    The addition of BADEA brings the AIF’s founding partners to nine:  the African Development Bank, Afreximbank, Africa Finance Corporation, Africa50, Development Bank of Southern Africa, European Investment Bank, Islamic Development Bank, and Trade and Development Bank.

    Heads and representatives of each of the partners who attended the meeting included included Trade and Development Bank President and CEO Admassu Tadesse, Africa Finance Corporation’s CEO  Samaila Zubairu, Africa50  President Alain Ebobissé, European Investment Bank Vice President Ambroise Fayolle,  Hani Salem Sonbol  Chief Executive Officer of the International Islamic Trade Finance Corporation representing Islamic Development Bank President Dr. Muhammad Sulaiman Al Jasser, and Afreximbank’s Director for Export Development Oluranti Doherty, who represented its president.

    Adesina also commended the founding partners for their energy, drive and momentum which he described as a testament to their confidence in the Forum.

    The AIF’s Market Days events, held annually, have drawn sovereign and non-sovereign investors from around the world, enabling a shift in risk perception and fostering confidence in Africa’s investment landscape.

    The platform has actively supported women-led businesses under its Women as Investment Champions pillar with examples such as Mobihealth International Ltd (Healthcare, Nigeria) which was supported to access grant and loan funding for feasibility studies and pan-African expansion.

    From the African Development Bank, Senior Vice President Marie Laure Akin-Olugbade, several vice presidents and directors and the Senior Director of Syndications, the Africa Investment Forum and Client Solutions, Max Magor Ndiaye, and the Special Representative of President Adesina, Yacine Fall also attended the meeting.

    The 2024 Market Days will take place from 4-6 December 2024 in Rabat, Morocco, under the theme: “Leveraging Innovative Partnerships for Scale.”

    MIL OSI Africa

  • MIL-OSI Global: Luke Evans’ memoir shows why there’s no such thing as a gay Jehovah’s Witness

    Source: The Conversation – UK – By Chris Greenough, Professor of Social Sciences, Edge Hill University

    Tinseltown/Shutterstock

    Hollywood actor Luke Evans writes candidly in his memoir about his experience growing up as a Jehovah’s Witness – and having to deal with religious and homophobic prejudice.

    Evans describes a childhood where he was taunted by peers as a “Bible-basher”, and how he endured homophobic bullying. He writes:

    I was bullied for being gay before I even understood what it meant. The worst nickname was “Jovey Bender”, because it combined two aspects of my identity that could never be reconciled. It wasn’t possible to be a “Jovey” and a “Bender” because being gay was strictly forbidden by the religion.

    As an academic who works on religion and sexualities, my latest research focuses on gay ex-Jehovah’s Witnesses.

    The Jehovah’s Witnesses, known for their door-knocking evangelising, pique interest because of the closed nature of their group. They are a fundamentalist and apocalyptic religious group organised into congregations, overseen by male elders – women are not permitted to be elders.

    They refer to their beliefs and teachings as “the Truth”. There is a governing body, known as The Watch Tower Bible and Tract Society, which establishes all doctrine.

    Condemnation

    The Jehovah’s Witnesses have a distinctive social world. It’s an exclusive religious group that tries to set itself apart from contemporary society and culture. Research refers to Jehovah’s Witnesses as a “high cost” religious group, which means it demands a high level of obedience from its followers – and homosexuality is condemned.

    Evans’s interview follows two other memoirs by gay ex-Jehovah’s Witnesses. In 2020, Mendez’s semi-aut0-biographical book Rainbow Milk was released to critical acclaim. Three years later, Daniel Allen Cox’s memoir detailed the ways growing up as a Jehovah’s Witness shaped him: “I spent eighteen years in a group that taught me to hate myself. You cannot be queer and a Jehovah’s Witness – it’s one or the other.”

    Cox has a point. The reason these gay men are considered ex-Witnesses is that technically, one cannot be LGBTQ+ and a Jehovah’s Witness. As the official means of sharing Jehovah’s Witness beliefs, the magazine The Watchtower explains:

    They gladly conduct Bible studies with homosexuals so these can learn Jehovah’s requirements, and such persons may attend meetings of the Witnesses to listen, but no one who continues to practice homosexuality can be one of Jehovah’s Witnesses.

    Evans’s interview recounts how he was terrified to go door knocking with his parents, in case one of his school bullies answered and hurled abuse at him. The teachings from the Witnesses affected his wellbeing. He recounts:

    Every night in the congregation they read scriptures saying terrible things about the way I was feeling and who I was possibly turning into. All that was in my head was: if I don’t sort this out, I’m going to lose my mum and dad. I’m going to lose everything I’ve ever known and I’m also going to die at Armageddon, so I’m giving myself a death sentence unless I sort this out.

    Importance of ex-member testimony

    The only documented experiences we have about growing up LGBTQ+ as a Jehovah’s Witness comes from former members, like Evans, who have left – or been forced to leave.

    But there’s a double bind here. There is a history of resistance to accounts from those who have been forced to leave, often referred to as “apostates” by the Witnesses. Ex-member testimony has often – and wrongly, I argue – been discredited among scholars of religion, as I highlight in my recent research.

    Most importantly for LGBTQ+ people, ex-member testimony is the only glimpse we get into the effect of religious teaching that is hostile to non-heterosexual identities.

    For LGBTQI+ former Witnesses, biography and memoir is a tool that allows them to write themselves into existence. Others, who are negotiating or navigating an exit from a high-cost religion, need these stories to help make sense of their own lives and experiences.

    Making an exit

    The method of exit is important. The terms “disfellowshipping”, “disassociation”, and “fading” represent different methods of exiting a religious organisation. Disfellowshipping involves the forced removal of a congregation member, often resulting in their ostracism and shunning by the community.

    Jehovah’s Witness teachings describe disfellowshipping as a “loving provision” that “protects the clean, Christian congregation”.

    Disassociation is when a Witness voluntarily resigns from the organisation, typically through a formal written request. For LGBTQ+ people, disfellowshipping or disassociation often leads to being labelled as “sexually immoral”, resulting in their expulsion and subsequent shunning by the congregation, including their close friends and family.

    In contrast, fading is a more gradual and discreet approach, allowing Witnesses to distance themselves without going through the formal processes of disfellowshipping or disassociation. This method can be especially important for those who wish to maintain relationships with family and friends still involved in the organisation, as it does not involve an official removal.

    Exit – forced or voluntary – for LGBTQ+ former Witnesses results in a number of vulnerabilities relating to housing, finance, emotional and psychological distress among other risks to wellbeing. Psychologists, such as Heather Ransom, have researched the cumulative effect on wellbeing for those who leave the Jehovah’s Witnesses, describing this process as “grief”.

    In an interview with the Guardian, Evans recounts how he didn’t see a viable option in reconciling his faith and sexuality. This sentiment underpins the urgency for research about how strict, conservative religious frameworks can stifle personal identity, especially for children and young people who are LGBTQ+.

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

    ref. Luke Evans’ memoir shows why there’s no such thing as a gay Jehovah’s Witness – https://theconversation.com/luke-evans-memoir-shows-why-theres-no-such-thing-as-a-gay-jehovahs-witness-242435

    MIL OSI – Global Reports

  • MIL-OSI USA: IAM Joins Western Pennsylvania Union Members to Get Out the Vote

    Source: US GOIAM Union

    For weeks, IAM and other union members in Pittsburgh and from across the country have flocked to the Allegheny-Fayette County Labor Council office to pick up materials before heading out to door-knock as part of the national AFL-CIO’s political program.

    In the first stage of the program, political volunteers visited union members’ households to provide information about the candidates endorsed by their unions and to gauge union voters’ priorities.

    Now, less than a week before Election Day, door-knockers are just trying to make sure registered voters get to the polls.

    “It is imperative that we motivate our members to vote in the election of our lifetime,” said IAM Air Transport Territory Grand Lodge Representative Sean Ryan, who has been in and out of Pittsburgh to assist get-out-the-vote efforts.

    IAM Political and Legislative Assistant Ty Richardson has also been on the ground speaking with union members in the battleground state of Pennsylvania.

    “We’re talking to union members to make sure they know how this election will directly affect their lives and livelihoods,” said Richardson.

    IAM members are working with members of the other affiliate unions like the Ironworkers, the International Brotherhood of Electrical Workers, American Federation of Teachers, Association of Federal Government Employees, International Union of Painters and Allied Trades, and United Steelworkers.

    The AFL-CIO’s political program has focused efforts on the seven “swing” states considered to be the states that will decide this election: Pennsylvania, Georgia, North Carolina, Michigan, Wisconsin, Nevada and Arizona.

    In Pittsburgh, the AFL-CIO affiliate unions are advocating for the Kamala Harris and Tim Walz presidential ticket, Bob Casey for re-election in the U.S. Senate, and Summer Lee for Pennsylvania’s 12th Congressional District in the U.S. House of Representatives.

    For information on the union-endorsed candidates, go to betterinaunion.org.

    Share and Follow:

    MIL OSI USA News

  • MIL-OSI USA: Attorney General Bonta to Congress: A Federal Price Gouging Prohibition Protects Families, Small Businesses

    Source: US State of California Department of Justice

    OAKLAND — California Attorney General Rob Bonta today joined 16 attorneys general in supporting a federal prohibition on price gouging. While 40 states across the country, including California, ban price gouging, there is no federal price gouging prohibition. Because so many product supply chains are nationwide, states face heightened challenges when protecting consumers from price gouging. A complementary federal price gouging prohibition would provide critical partnership to state enforcement, protect both consumers and small businesses, and strengthen existing state laws.

    “During and after a crisis, it is unfair — and harmful to our economy —for companies to reap higher profits for selling goods and services that families need to survive. That is why California’s price gouging law protects Californians during and after wildfires, severe weather storms, and other emergencies,” said Attorney General Bonta. “A federal price gouging prohibition that complements state law would build on successful partnerships between states and the federal government to protect consumers by making it easier to enforce price gouging prohibitions nationally, up the supply chain. This would benefit California consumers and small businesses who currently bear the brunt of their suppliers’ price setting.”

    Price gouging refers to sellers who take unfair advantage of consumers during an emergency or disaster by greatly increasing prices for essential consumer goods and services. Price gouging prohibitions are not price caps; prohibitions place temporary limits on a business’s ability to raise its profits on essential goods in a crisis. Price gouging prohibitions allow businesses to raise prices to cover costs, but those price increases should not result in an increase in their profits.

    In the letter, the attorneys general explain that the current gap in federal regulations allows larger companies outside of state control to raise prices and pass down costs to smaller businesses. Without a federal prohibition, consumer-facing retailers — often small businesses — bear the burden of reputational and legal consequences of crisis-induced higher prices, even when the most significant price gouging activity may be happening up the supply chain. A federal price gouging prohibition that complemented state prohibitions would allow federal enforcement agencies, such as the Federal Trade Commission, to identify and restrain irrational price increases throughout the entire supply chain.

    In the letter, the attorneys general argue that price gouging laws have key benefits that strengthen the economy. Price gouging laws:

    • Prevent inefficient pricing overreactions in the heat of a crisis. Setting prices too high may damage a business’s reputation and harm long-term profitability.
    • Encourage the production of essential supplies. Increasing production and selling more products, instead of selling the same amount at a higher price, allows businesses to increase their gross profits but not their profit margins and helps ensure people have enough essential supplies at reasonable costs.
    • Prevent hoarding. Encourages businesses to directly limit inefficient over-consumption.
    • Keep prices competitive. If consumers have no choice but to buy an essential product from one particular seller, price gouging prohibitions can restrain high prices for products where there is very little competition. 

    In sending today’s letter, Attorney General Bonta joined the attorneys general of New York, Connecticut, Delaware, Hawaii, Illinois, Maine, Maryland, Massachusetts, Michigan, Oregon, New Jersey, New Mexico, Pennsylvania, Vermont, and the District of Columbia. 

    In California, price gouging during a state of emergency is illegal under Penal Code Section 396. Californians who believe they have been the victim of price gouging should report it to their local authorities or to the Attorney General at oag.ca.gov/report.

    For additional information, please see DOJ’s FAQs on price gouging here.

    A copy of the letter can be found here.

    MIL OSI USA News

  • MIL-OSI Global: Slow vote-counting, flip-flopping leads, careful certification and the weirdness of the Electoral College – people who research elections look at what to expect on election night

    Source: The Conversation – USA – By Jeff Inglis, Politics + Society Editor, The Conversation US

    What should you make of the flood of information about the election? Dilok Klaisataporn/iStock / Getty Images Plus

    As Election Day arrives, people’s feelings of eagerness and anxiety can intensify. It’s normal to want to know the results, but it’s also important to make sure that when the results are announced, they’re accurate.

    The Conversation U.S. has covered many aspects of the election, including the mechanics of tallying and reporting the votes. Here are selections from some of those articles:

    1. How long did it take to count votes in 2020?

    In 2020, Election Day was Nov. 3. While some results emerged that evening and over the subsequent days, it was not until four days later, Nov. 7, that The Associated Press called the race for Joe Biden over Donald Trump.

    Waiting can be unsatisfying, wrote John M. Murphy, a communications scholar at the University of Illinois at Urbana-Champaign, but it’s key to getting accurate results.

    Murphy warned: “People tend to see what they want to see. … Partisans want that beautiful picture of triumph, blue or red seas cascading across screens on election night.” But, he observed, that might be a mirage – and realizing it’s a mirage means one thing: “Wait. … Wait until we know it’s real.”




    Read more:
    A new president will be elected − but it may take some time to determine who wins


    Election officials count ballots at the Allegheny County elections warehouse in Pittsburgh in 2020.
    Jeff Swensen/Getty Images

    2. Why do candidates’ leads change as the results emerge?

    Every state counts votes slightly differently. Some, like Colorado, allow election workers to begin counting absentee ballots in advance of Election Day, while in other states, like Illinois, the count can’t even start until the polling places close at the end of Election Day.

    In addition, various communities report their results in different ways. Some may release preliminary results every so often while the counting continues, while others may wait until counting is fully complete before announcing any results.

    That’s why vote counts change over time: Partial results are updated, and additional results are added to statewide tallies. In a 2020 article, Kristin Kanthak, a political science professor at the University of Pittsburgh, went through the whole process, including the release of partial results:

    “Importantly … this doesn’t mean the system is ‘rigged.’ Actually, it means the system is transparent to a fault,” she wrote.




    Read more:
    How votes are counted in Pennsylvania: Changing numbers are a sign of transparency, not fraud, during an ongoing process


    3. How do we know the results are accurate?

    Election officials take their jobs very seriously and work hard to count all the eligible votes accurately while under great pressure. They have specific rules and processes for how to handle ballots and vote-counting.

    Derek Muller, an election-law scholar at the University of Notre Dame, explained those steps in detail, highlighting the focus on verifiable facts rather than people’s opinions about the process:

    Certifying an election is a rather mundane task. … It is little more than making sure all precincts have reported and the arithmetic is correct. But it is an important task, because it is the formal process that determines who won the most votes.”




    Read more:
    No, local election officials can’t block certification of results — there are plenty of legal safeguards


    Washoe County employees in Nevada open ballots as they begin processing mailed ballots in the 2024 primary election.
    AP Photo/Andy Barron

    4. Who invented the Electoral College?

    Of course, the candidate who gets the most votes doesn’t necessarily win the presidency. The official decision is made by the Electoral College.

    Phillip VanFossen, a civics educator at Purdue University, explained that the Constitutional Convention in the summer of 1787 came up with three ideas, but couldn’t agree. Determined to find common ground, even if it was imperfect, the delegates told 11 men to come up with a solution, which was the Electoral College.

    VanFossen explained that “with this compromise system, neither public ignorance nor outside influence would affect the choice of a nation’s leader. (The delegates) believed that the electors would ensure that only a qualified person became president. And they thought the Electoral College would serve as a check on a public who might be easily misled, especially by foreign governments.”




    Read more:
    Who invented the Electoral College?


    5. Why does the US still have an Electoral College?

    Other nations were inspired by the U.S. Constitution, but not for long, as Westminster College political scientist Joshua Holzer explained:

    None have been satisfied with the results. And except for the U.S., all have found other ways to choose their leaders.”

    Many people in the U.S. also aren’t satisfied with the Electoral College, and Holzer identifies one effort under way to replace it without amending the Constitution. But even that won’t ensure that the person who becomes president is supported by at least half of the people who cast ballots.




    Read more:
    No country still uses an electoral college − except the US


    ref. Slow vote-counting, flip-flopping leads, careful certification and the weirdness of the Electoral College – people who research elections look at what to expect on election night – https://theconversation.com/slow-vote-counting-flip-flopping-leads-careful-certification-and-the-weirdness-of-the-electoral-college-people-who-research-elections-look-at-what-to-expect-on-election-night-241340

    MIL OSI – Global Reports

  • MIL-OSI: Alpine Banks of Colorado announces financial results for third quarter 2024

    Source: GlobeNewswire (MIL-OSI)

    GLENWOOD SPRINGS, Colo., Oct. 30, 2024 (GLOBE NEWSWIRE) — Alpine Banks of Colorado (OTCQX: ALPIB) (“Alpine” or the “Company”), the holding company for Alpine Bank (the “Bank”), today announced results (unaudited) for the quarter ended September 30, 2024. The Company reported net income of $13.6 million, or $127.16 per basic Class A common share and $0.85 per basic Class B common share, for third quarter 2024.

    Highlights in third quarter 2024 include:

    • Basic earnings per Class A common share increased 16.8%, or $18.28, during third quarter 2024.
    • Basic earnings per Class A common share decreased 16.8%, or $18.30, compared to third quarter 2023.
    • Basic earnings per Class B common share increased 16.8%, or $0.12, during third quarter 2024.
    • Basic earnings per Class B common share decreased 16.8%, or $0.12, compared to third quarter 2023.
    • Net interest margin for third quarter 2024 was 2.98%, compared to 2.87% in second quarter 2024, and 2.87% in third quarter 2023.

    “Third quarter 2024 results show a continuation of our improving financial performance,” said Glen Jammaron, Alpine Banks of Colorado President and Vice Chairman. “Alpine successfully grew customer deposit balances, paid down brokered CDs and decreased the cost of our funding during the third quarter. Both our net interest margin and return on assets saw improvements over the first and second quarters of 2024.”

    Net Income
    Net income for third quarter 2024 and second quarter 2024 was $13.6 million and $11.7 million, respectively. Interest income increased $1.9 million in third quarter 2024 compared to second quarter 2024, primarily due to increases in yields on the loan portfolio and increased balances in due from banks. These increases were slightly offset by decreased yields and volumes in the securities portfolio and decreased rates on due from banks, along with decreased volume in the loan portfolio. Interest expense increased $0.3 million in third quarter 2024 compared to second quarter 2024, primarily due to increased balances in deposit accounts. This increase was partially offset by decreases in costs on, and volume of, the Company’s trust preferred securities. Noninterest income increased $1.3 million in third quarter 2024 compared to second quarter 2024, primarily due to increases in service charges on deposit accounts, and other income. Noninterest expense decreased $0.8 million in third quarter 2024 compared to second quarter 2024, due to decreases in other expenses and salary and employee benefit expenses slightly offset by increases in occupancy expenses and furniture and fixture expenses. A provision for loan losses of $1.2 million was recorded in third quarter 2024 compared to a $0.2 million provision recorded in second quarter 2024.

    Net income for the nine months ended September 30, 2024, and September 30, 2023, was $35.9 million and $46.0 million, respectively. Interest income increased $18.5 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in volume in the loan portfolio and balances due from banks, along with increases in yields on the loan portfolio, the securities portfolio, and balances due from banks. These increases were slightly offset by a decrease in volume in the securities portfolio. Interest expense increased $31.8 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in costs on the Company’s trust preferred securities, other borrowings, and cost of deposits, along with increases in volume in deposit balances. These increases were partially offset by a decrease in the volume of other borrowings. Noninterest income increased $3.3 million in the first nine months of 2024 compared to the first nine months of 2023, primarily due to increases in earnings on bank-owned life insurance, service charges on deposit accounts and other income. Noninterest expense increased $3.0 million in the first nine months of 2024 compared to the first nine months of 2023, due to increases in salary and employee benefit expenses and occupancy expenses. These increases were partially offset by decreases in furniture and fixture expenses and other expenses. Provision for loan losses decreased $0.3 million in the first nine months of 2024 due to loan portfolio declines and a small volume of loan charge-offs, compared to the nine months ended September 30, 2023.

    Net interest margin increased from 2.87% in second quarter 2024 to 2.98% in third quarter 2024. Net interest margin for the nine months ended September 30, 2024, and September 30, 2023, was 2.89% and 3.17%, respectively.

    Assets
    Total assets increased $107.0 million, or 1.7%, to $6.58 billion as of September 30, 2024, compared to June 30, 2024, primarily due to increased cash and due from banks and investment securities balances, partially offset by decreased loans receivable. Total assets increased $110.6 million, or 1.7%, from September 30, 2023, to September 30, 2024. The Alpine Bank Wealth Management* division had assets under management of $1.34 billion on September 30, 2024, compared to $1.09 billion on September 30, 2023, an increase of 23.3%.

    Loans
    Loans outstanding as of September 30, 2024, totaled $4.0 billion. The loan portfolio decreased $36.3 million, or 0.9%, during third quarter 2024 compared to June 30, 2024. This decrease was driven by a $22.9 million decrease in real estate construction loans and a $33.7 million decrease in residential real estate loans, partially offset by a $13.7 million increase in commercial and industrial loans, a $5.0 million increase in commercial real estate loans, a $1.6 million increase in consumer loans, and a $0.1 million increase in other loans.

    Loans outstanding as of September 30, 2024, reflected a decrease of $5.0 million, or 0.1%, compared to loans outstanding of $4.0 billion on September 30, 2023. This decrease was driven by a $102.8 million decrease in real estate construction loans, partially offset by a $54.9 million increase in commercial real estate loans, a $20.8 million increase in residential real estate loans, a $20.0 million increase in commercial and industrial loans, a $1.8 million increase in consumer loans and a $0.3 million increase in other loans.

    Deposits
    Total deposits increased $74.1 million, or 1.3%, to $5.9 billion during third quarter 2024 compared to June 30, 2024, primarily due to a $110.1 million increase in demand deposits and a $49.5 million increase in money market accounts. This increase was partially offset by a $36.4 million decrease in certificate of deposit accounts, a $3.8 million decrease in savings accounts, and a $45.4 million decrease in interest-bearing checking accounts. Brokered certificates of deposit totaled $330.7 million on September 30, 2024, compared to $390.5 million on June 30, 2024. Noninterest-bearing demand accounts comprised 30.7% of all deposits on September 30, 2024, compared to 29.3% on June 30, 2024.

    Total deposits of $5.9 billion on September 30, 2024, reflected an increase of $38.5 million, or 0.7%, compared to total deposits of $5.8 billion on September 30, 2023. This increase was due to a $248.2 million increase in money market accounts, partially offset by a $41.6 million decrease in certificate of deposit accounts, a $111.6 million decrease in interest-bearing checking accounts, a $27.0 million decrease in demand deposits and a $29.5 million decrease in savings accounts. Brokered certificates of deposit totaled $330.7 million on September 30, 2024, compared to $563.7 million on September 30, 2023. Noninterest-bearing demand accounts comprised 30.7% of all deposits on September 30, 2024, compared to 31.4% on September 30, 2023.

    Capital
    The Bank continues to be designated as a “well capitalized” institution as its capital ratios exceed the minimum requirements for this designation. As of September 30, 2024, the Bank’s Tier 1 Leverage Ratio was 9.62%, Tier 1 Risk-Based Capital Ratio was 14.15%, and Total Risk-Based Capital Ratio was 15.30%. On a consolidated basis, the Company’s Tier 1 Leverage Ratio was 9.23%, Tier 1 Risk-Based Capital Ratio was 13.59%, and Total Risk-Based Capital Ratio was 15.85% as of September 30, 2024.

    Book value per share on September 30, 2024, was $4,787.58 per Class A common share and $31.92 per Class B common share, an increase of $294.62 per Class A common share and $1.96 per Class B common share from June 30, 2024.

    Each Class A common share is entitled to one vote per share. Except as otherwise provided by the Colorado Business Corporation Act, each Class B common share has no voting rights.

    Dividends
    Each Class B common share has dividend and distribution rights equal to one-one hundred and fiftieth (1/150th) of such rights of one Class A common share. Therefore, each one Class A common share is equivalent to 150 Class B common shares for purposes of the payment of dividends.

    During third quarter 2024, the Company paid cash dividends of $30.00 per Class A common share and $0.20 per Class B common share. On October 10, 2024, the Company declared cash dividends of $30.00 per Class A common share and $0.20 per Class B common share payable on October 28, 2024, to shareholders of record on October 21, 2024.

    About Alpine Banks of Colorado
    Alpine Banks of Colorado, through its wholly owned subsidiary Alpine Bank, is a $6.6 billion, independent, employee-owned organization founded in 1973 with headquarters in Glenwood Springs, Colorado. Alpine Bank employs 890 people and serves 170,000 customers with personal, business, wealth management*, mortgage, and electronic banking services across Colorado’s Western Slope, mountains and Front Range. Alpine Bank has a five-star rating – meaning it has earned a superior performance classification – from BauerFinancial, an independent organization that analyzes and rates the performance of financial institutions in the United States. Shares of the Class B non-voting common stock of Alpine Banks of Colorado trade under the symbol “ALPIB” on the OTCQX® Best Market. Learn more at www.alpinebank.com.

    *Alpine Bank Wealth Management services are not FDIC insured, may lose value, and are not guaranteed by the Bank.                                                   

    Contacts: Glen Jammaron Eric A. Gardey
      President and Vice Chairman Chief Financial Officer
      Alpine Banks of Colorado Alpine Banks of Colorado
      2200 Grand Avenue 2200 Grand Avenue
      Glenwood Springs, CO 81601 Glenwood Springs, CO 81601
      (970) 384-3266 (970) 384-3257


    A note about forward-looking statements
    This press release contains “forward-looking statements” within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “anticipates,” “intends,” “plans,” “seeks,” “reflects,” “believes,” “can,” “would,” “should,” “will,” “estimates,” “continues,” “expects” and similar references to future periods. Examples of forward-looking statements include, but are not limited to, statements we make regarding our evaluation of macro-environment risks, Federal Reserve rate management, and trends reflecting things such as regulatory capital standards and adequacy. Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. Our actual results may differ materially from those contemplated by the forward-looking statements. We caution you therefore against relying on any of these forward- looking statements. They are neither statements of historical fact nor guarantees or assurances of future performance. Important factors that could cause actual results to differ materially from those in the forward-looking statement include, but are not limited to:

    • The ability to attract new deposits and loans;
    • Demand for financial services in our market areas;
    • Competitive market-pricing factors;
    • Changes in assumptions underlying the establishment of allowances for loan losses and other estimates;
    • Effects of future economic, business and market conditions, including higher inflation;
    • Adverse effects of public health events, such as the COVID-19 pandemic, including governmental and societal responses;
    • Deterioration in economic conditions that could result in increased loan losses;
    • Actions by competitors and other market participants that could have an adverse impact on expected performance;
    • Risks associated with concentrations in real estate-related loans;
    • Risks inherent in making loans, such as repayment risks and fluctuating collateral values;
    • Market interest rate volatility, including changes to the federal funds rate;
    • Stability of funding sources and continued availability of borrowings;
    • Geopolitical events, including acts of war, international hostilities and terrorist activities;
    • Assumptions and estimates used in applying critical accounting policies and modeling, including under the CECL model, which may prove unreliable, inaccurate, or not predictive of actual results;
    • Actions of government regulators, including potential future changes in the target range for the federal funds rate by the Board of Governors of the Federal Reserve;
    • Sale of investment securities in a loss position before their value recovers, including as a result of asset liability management strategies or in response to liquidity needs;
    • Any increases in FDIC assessments;
    • Risks associated with potential cybersecurity incidents, data breaches or failures of key information technology systems;
    • The ability to maintain adequate liquidity and regulatory capital, and comply with evolving federal and state banking regulations;
    • Changes in legal or regulatory requirements or the results of regulatory examinations that could restrict growth;
    • The ability to recruit and retain key management and staff;
    • The ability to raise capital or incur debt on reasonable terms; and
    • Effectiveness of legislation and regulatory efforts to help the U.S. and global financial markets.

    There are many factors that could cause actual results to differ materially from those contemplated by forward-looking statements. Any forward-looking statement made by us in this press release or in any subsequent written or oral statements attributable to the Company are expressly qualified in their entirety by the cautionary statements above. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

    Key Financial Measures
    The attached tables highlight the Company’s key financial measures for the periods indicated (unaudited).

    Key Financial Measures 09.30.2024

    Consolidated Statements of Comprehensive Income 09.30.2024

    Consolidated Statements of Financial Condition 09.30.2024

    Consolidated Statements of Income 09.30.3024

    The MIL Network

  • MIL-OSI Video: FY 2024 AFG Application Development Training Series – State Fire Training Academies

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

    The State Fire Training Academy (SFTA) training video is intended to provide information on the AFG program priorities, what is new for 2024, and tips to develop and submit a successful SFTA application.

    https://www.youtube.com/watch?v=mPcVGp9FsYw

    MIL OSI Video

  • MIL-OSI Europe: EIB Group showcases progress of European Tech Champions Initiative boosting European scale-ups at event in Madrid

    Source: European Investment Bank

    • Since its launch in 2023, the European Tech Champions Initiative has closed fund deals worth €2 billion and mobilising five times this amount, totalling €10 billion in public and private sector resources.
    • Investments have been made in 16 technology scale-ups, two of which are Spanish.
    • In Spain, the European Tech Champions Initiative has invested in a mega fund specialising in deep tech and climate, and an investment in a second mega fund is expected by 2025.
    • As an ETCI participant country, Spain has announced an additional contribution of €300 million to the initiative by the Ministry of Digital Transformation that is soon to be approved by the Spanish cabinet.

    The EIB Group outlined the progress of the European Tech Champions Initiative (ETCI) – the fund of funds promoted by the European Union and participating EU Member States to foster the growth of cutting-edge technology startups with high growth potential (scale-ups) – today in Madrid. This initiative is led by the European Investment Fund (EIF), the EIB Group’s specialist provider of investment capital to benefit small and medium-sized enterprises (SMEs) and mid-caps.

    The presentation took place during the Tech Champions Made in Europe day, which brought together representatives of the Spanish investment and technological innovation ecosystem and was attended by EIB Group President Nadia Calviño, Spanish Minister of Economy, Trade and Business Carlos Cuerpo, EIF Chief Executive Marjut Falkstedt and Instituto de Crédito Oficial (ICO) Chairman Manuel Illueca Muñoz.

    Opening the day, President Calviño had the opportunity to detail the ongoing work to bolster the European capital market, including the expansion of the ETCI and opening it up to private investors. New financial instruments are also being developed to facilitate investor exits via acquisition or listing of the technology startups on European markets.

    “Thanks to EIB Group support, Spain now has a top-tier European investment mega fund. We are already working on the second phase of this initiative, in which Spain is expected to retain its key role,” said EIB Group President Nadia Calviño.

    The event was closed by Spanish Minister of Economy, Trade and Business Carlos Cuerpo, who said: “Spain has already provided €400 million to the ETCI, and today we are announcing an additional contribution of €300 million from the Ministry of Digital Transformation that is soon to be approved by the Spanish cabinet.”

    Since its launch in 2023, the ETCI has been fostering a positive environment in the European venture capital fund market and in the technology ecosystem. It has already closed fund deals worth €2 billion and mobilising five times this amount, totalling €10 billion in public and private sector resources for investment in growth-stage technology companies. ETCI-backed funds have so far invested in 16 European companies, two of which are Spanish.

    In Spain, the ETCI has already made an initial investment in the Kembara Fund I FCR mega fund, a deep tech and climate-focused venture capital fund operating across Europe and managed by Alma Mundi Ventures SGEIC (Mundi Ventures). An investment in a second mega fund is expected by 2025. ETCI-backed funds have in turn invested in two Spanish high-tech companies in their advanced growth phase: Inke, which specialises in respiratory disease treatments, and Factorial, which develops and sells human resources software.

    EIF Chief Executive Marjut Falkstedt said: “We are very happy with the ETCI’s progress to date, and are working on expanding it to increase its impact on the European venture capital and technological innovation ecosystems even further. We are exploring initiatives including structures where the private sector can play a greater role in this fund of funds, which is vital for ensuring European technological autonomy.”

    During his speech, ICO Chairman Manuel Illueca Muñoz said: “The ETCI is helping to strengthen the EU innovation ecosystem. ICO Group aims to support Spanish startups and scale-ups throughout their lifecycle, until they reach sufficient maturity for the ETCI to turn them into European champions.”

    Background information

    The European Investment Bank Group (EIB Group), consisting of the European Investment Bank (EIB) and the European Investment Fund (EIF), reported total financing signatures in Spain of €11.4 billion in 2023, approximately €6.8 billion of which went to climate action and environmental sustainability projects. Overall, the EIB Group signed €88 billion in new financing in 2023.

    The European Tech Champions Initiative (ETCI) is an EU programme managed by the EIF and backed by the European Commission and participating EU Member States. It helps to cover the financing needs of European technology scale-ups, preventing them from relocating and strengthening Europe’s strategic autonomy and competitiveness. Sectors benefiting from the initiative include cybersecurity, artificial intelligence, quantum computing, deep tech, green technologies, biotechnology and digital technologies. The ETCI is also making a major contribution to the European financial markets and is an example of how the EIB Group can act as a pioneering instrument for the capital markets union.

    Discurso completo de la presidenta Nadia Calviño durante la apertura de la jornada

    MIL OSI Europe News

  • MIL-OSI Economics: Participants in the Netherlands Trainee Programme make study visit to The Hague

    Source: WTO

    Headline: Participants in the Netherlands Trainee Programme make study visit to The Hague

    The participants were accompanied on the study trip by Willie Chatsika, Head of the English-speaking Africa Regional Desk in the WTO’s Institute for Training and Technical Cooperation (ITTC).
    The NTP is a joint initiative of the WTO and the Government of the Kingdom of the Netherlands aimed at improving participants’ capacity through “learning by doing”. Officials taking part in this year’s edition are from Africa, Asia and the Pacific region.
    The study trip was coordinated by the Clingendael Institute, an independent academic and research institute engaged by the Ministry of Foreign Affairs of the Netherlands under the framework of the NTP. The main objectives of the study trip were to enhance the participants’ trade policy-making skills, enable them to gain insight into how the needs of different national stakeholders are translated into trade policy, and to learn more about the nexus between international trade and development.
    During the study trip, participants were given first-hand exposure to the formulation of trade policy during various presentations by officials from the International Trade Directorate of the Ministry of Foreign Affairs. The Clingendael Institute also organized sessions on negotiations and presentation skills, considered critical for trade negotiators.
    The study trip also included visits to selected institutions in The Hague which have an input in trade policy formulation. These were the Social and Economic Council (SER), the Confederation of Netherlands Industry and Employers (VNO-NCW) and the Horti Centre which brings together multiple enterprises in the horticultural sector to form a collective bargaining position for their products. A guided tour of the Port of Rotterdam, a major gateway for international trade, was another aspect of the study visit.  
    The group also had a visit to the Peace Palace, which houses the International Court of Justice (ICJ) and the Permanent Court of Arbitration (PCA). The PCA provided a detailed presentation of its structure and functions and allowed the group to access the chamber of the ICJ.
    The NTP is a ten-month internship programme funded by the Government of the Netherlands and undertaken in the WTO Secretariat, with the aim of assisting in the economic and social development of least developed countries (LDCs), other low-income countries and comparable small and vulnerable economies in areas related to trade policy, with a particular focus on Africa.
    The 2024 NTP cohort comprises 14 government officials, whose diversity reflects the different targets of the programme — a focus on LDCs and Africa, geographical diversity and gender balance. Eight of the participants are from Africa (Benin, Burkina Faso, Cameroon, Ghana, Lesotho, Namibia, Tunisia and Uganda), five are from Asia (Bangladesh, Bhutan, Cambodia, Myanmar and Pakistan) and one from the Pacific (Solomon Islands). Eight of the NTPs are from LDCs, and six out of the 14 are women.
    The NTP was launched in 2005 and has been regularly renewed. The current phase was launched in 2023 and will continue until 2028.

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    MIL OSI Economics

  • MIL-OSI Economics: WTO members review safeguard actions during latest committee meeting

    Source: WTO

    Headline: WTO members review safeguard actions during latest committee meeting

    Japan and Australia took the floor to stress that safeguards are emergency measures, and members taking safeguard actions must ensure that they comply with the relevant rules.
    Review of legislative notifications
    The legislative notifications from Cabo Verde and the Solomon Islands were tabled at the meeting. Both members notified that they did not currently have regulations or administrative procedures relating to safeguard measures. The Committee also continued the review of legislative notifications from Liberia and from Ghana.
    Specific notifications of safeguard actions
    Notifications of various safeguard actions from the following members were reviewed by the Committee: the European Union (1 investigation); Ghana (1 investigation); India (1 investigation); Indonesia (8 investigations); Madagascar (3 investigations); the Philippines (1 investigation); South Africa (1 investigation); Türkiye (4 investigations); Ukraine (1 investigation), the United Kingdom (1 investigation); and the United States (2 investigations).
    Six members took the floor in respect to the European Union’s update of the status of its safeguard measure on certain steel products. One member referred to its proposal to suspend substantially equivalent concessions against European Union imports in reaction to the European Union’s measure.
    Five members took the floor to comment on the latest status of the United Kingdom’s safeguard measure on certain steel products, with several members recalling that the UK applies this measure having “transitioned” it from the EU following its departure from the European Union.
    Japan expressed concerns about two specific safeguards: Viet Nam’s safeguard measure on “certain semi-finished and finished products of alloy and non-alloy steel” and Indonesia’s safeguard measure on “articles of apparel and clothing accessories”.
    Indonesia’s request regarding Türkiye’s proposed suspension of concessions against its exports
    On 11 July 2024, Indonesia submitted, pursuant to Article 13.1 (e) of the Safeguards Agreement, a request in relation to Türkiye’s proposal to suspend substantially equivalent concessions or other obligations against imports from Indonesia. Türkiye had proposed the suspension of concessions in response to Indonesia’s safeguard measure on carpets and other textile floor coverings.
    Article 13.1 (e) of the Safeguards Agreement stipulates, as one of the functions of the Committee, to “review … whether proposals to suspend concessions or other obligations are ‘substantially equivalent’, and report as appropriate to the Council for Trade in Goods”. The Chair explained how he intends to move forward on this matter. Several members took the floor to describe their views, including with respect to the relevant period to use for the purpose of determining the value of the substantially equivalent concessions.
    Discussion Group regarding safeguard proceedings
    A member, on behalf of 13 other members, explained that a meeting of an informal discussion group regarding safeguard proceedings would take place after the Committee meeting. While it was not part of the Committee meeting, the discussion was open to all members. The idea behind this discussion group was to provide a broader perspective than in formal Committee meetings where members review particular notifications, and to focus more on each other’s experiences and to learn from each other.
    Creation of online portal for submission of safeguard notifications
    Under “Other Business”, the Chair provided an update regarding the creation by the WTO Secretariat of an online portal for the submission of safeguard notifications. The Chair reported that a prototype was now ready for delegations to test.
    Next meeting
    The next meeting of the Committee on Safeguards is scheduled for the week of 28 April 2025.
    Background
    Under the WTO rules, a member may apply measures to imports of a product temporarily (take “safeguard” actions) through higher tariffs or other measures if it determines through an investigation that increased imports of a product are causing or threatening to cause serious injury to its domestic industry. Unlike anti-dumping duties, safeguard measures cover imports from all sources, although imports from developing country members with a small share of imports are exempted through special and differential treatment provisions.
    More background on safeguards is available here.

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    MIL OSI Economics

  • MIL-OSI NGOs: Hurricane Unpreparedness in the Caribbean, Disaster by Imperial Design

    Source: Council on Hemispheric Affairs –

    St. Lucia during and post Hurricane Beryl

    by Tamanisha J. John

    Toronto, Ontario

    Whenever a hurricane hits in the Caribbean, people rush to point out that it is an indicator of “disaster capitalism” and/or that “disaster capitalism” will surely come. While I agree that non-governmental organizations (NGO) and other organizations profit from disasters in the Caribbean region, and have a long history of doing so, I am less inclined to believe that “disaster capitalism” exists there unless one takes an ahistorical view. Disaster capitalism in the Caribbean can only exist in those states whose revolutions have been defeated and/or undermined, but overall, there has been no massive structural changes in these states. The region is already, and historically has been, ultra-accommodating to capitalism. Disaster capitalism refers to “the use of the shock of disastrous situations to dismantle state participation in the economy and to implant structural changes in the form of laissez-faire capitalism” (Schwartz, 2015, p. 311). To claim that disaster capitalism will come to the Caribbean region would thus indicate a marked period of state participation in the Caribbean that provided for the peoples living there.

    Instead, all states’ independence was marked by US interventions given the ideological and economic struggle of the Cold War and the neoliberal turn, which attacked state input and intervention in the market. Caribbean states’ independence was marked by debt and lack of access to capital. It occurred alongside financial institutions’ proliferation of structural adjustment policies whose implementation was necessitated for states in the region to acquire access to loaned capital (John, 2023). Though struggles for nationalizations did occur – in industries like mining, banking, insurance, and others – harsh retaliations from the US and Canada made them unsustainable (John, 2023, p. 134) – with no real reductions in foreign ownership “despite the changes in legal forms of ownership” (Thomas, 1984, p. 168-9). Thus, large foreign ownership of resource extractive industries and financial institutions remained a feature of Caribbean societies when they became independent – just as it also marked the colonial landscape in these spaces. The foreign players that controlled corporations, land, and industries in these countries did change somewhat, but this was also typical with imperial rivalries (Caribbean states themselves having been subject to multiple phases of European colonization throughout their histories).

    It was Walter Rodney, who in his 1972 text How Europe Underdeveloped Africa, put forward a critique of the thesis that capitalism had to develop prior to ushering in socialism – which was Marx’s estimation – given that this thesis went against the trajectory of capitalist development in both the Caribbean and in Africa, where the capitalist logics of extraction with disregard for these societies left them in almost permanent states of underdevelopment, that only physical and ideological anti-imperialism could rectify. One of the consequences of this underdevelopment, I argue, is the lack of hurricane preparedness. The logic of “getting people back to work” and “security” in these colonized spaces have always trumped wellbeing for the people and environment – precisely because the people in them have always been categorized as disposable, while the natural resources have been reduced to instruments for the generation of profit. This ideology was true under European empires, and now true under US hegemony in the region – where foreign imposing actors continue to have more say on preparedness, wealth distribution, land ownership, security, economic development, and entrepreneurship (innovation).

    In a Region Prone to Hurricanes, Unpreparedness is an Ideological Policy Choice

    “Hurricanes are not random phenomena. Atmospheric conditions and physics limit their movement” (Schwartz, 2015, p. xvi). In the Caribbean, the Yucatán Peninsula, the Gulf of Mexico, and the South-Eastern United States, we have come to expect a lack of preparedness whenever hurricanes strike. Though Hurricane Beryl’s strength and early formation in June was unprecedented for the Caribbean’s hurricane season, what is precedent is the lack of regional preparedness for hurricanes in a region prone to have them – no matter when these hurricanes form. Forming around June 25th it was clear that Beryl would break the record for earliest formed Category 5 hurricane by the time that it made way into the Caribbean. This was due to the unusually warm temperatures registered in both the Atlantic Ocean and the Caribbean Sea as early as March, various heatwave advisories and warnings were placed on the region acknowledging that the summer 2024 would be “hotter than usual” (Loop News 2024). When news of Beryl’s formation first spread, people expected the worst given unusually hot increases in temperatures (+4°c) for the region so early in the year.

    Making landfall as a Category 4 hurricane in one of the smaller islands of Grenada, Carriacou, on July 1st Beryl would destroy 95% of the infrastructure there before strengthening to a Category 5 hurricane. It would bring even worse devastation to a smaller island of St. Vincent and the Grenadines, Mayreu, where reports proclaim that island to have nearly been “erased from the map” (AP News 2024). In its Caribbean path, Beryl brought devastation as a Category 5 and 4 storm to Grenada, St. Vincent and the Grenadines, Dominica, Tobago and northern Venezuela, Barbados, and the southern portion of Jamaica. In its North American path, Beryl brought devastation as a Category 2 and 1 storm to Mexico’s Yucatan Peninsula, before making landfall in Texas and Louisiana. Thereafter the storm was experienced elsewhere in the form of a tropical cyclone and massive downpours of rain. Beryl eventually tapered off in Canada on July 11th where it left heavy rain that caused massive flooding (due to Canada’s neglected flood systems). Beryl’s death toll currently stands at 33, with the storm causing 6 deaths “in Venezuela, 1 in Grenada, 2 in Carriacou, 6 in St. Vincent and the Grenadines, 4 in Jamaica […] at least 11 in the Greater Houston area, 1 in Louisiana, and 2 in Vermont.” (TT Weather Center 2024)”

    Now that the storm has passed, people in impacted areas must contend with the loss of life, destruction of physical infrastructure – including homes and businesses, the lack of food and other basic products, as well as the lack of power and electricity. While contending with loss, victims of this severe weather will start to question the inability of their governments – rich or poor – to adequately address the post hurricane scenarios that they find themselves in repeatedly. This discontent with unpreparedness is now prevalent even before the hurricane season itself has ended.

    A Note on Cuba’s Hurricane Preparedness, The Importance of Ideology

    One of the most infuriating elements of hurricanes in this region is the “disaster” narratives that come after them, which falsely assert the “naturalness” of unpreparedness given the chaos of the disaster itself – when unpreparedness is, in fact, an ideological policy choice. Poorer states in this region are shackled by an unwillingness of the state to drastically deviate from “larger institutional constraints from which the logic of colonial administration derived its central purpose” and are inherited (Pérez Jr., 2001, p. 133-4).  On the other hand, richer states are shackled by their individualist ideologies which offer “vigorous critiques of government expenditure” which leave preparedness up to “market-driven, neoliberal economic policies,” that turn state and local responsibilities over “to charitable institutions, to churches, or to the victims themselves and their communities” (Schwartz, 2015, p. 300).

    When looking at states in the Western Hemisphere which frequently experience hurricanes, Cuba stands out as a state which tends to fare better in the post hurricane environment given that state’s policies of shared responsibility towards its people. This even as Cuba has been subjected to a draining embargo and sanctions which places a burden on economic growth there. Yet still, Washington maintains that Cuba’s successful hurricane response and disaster mitigation strategies amount to “the exchange of liberty for effectiveness” (Schwartz, 2015, p. 293-4). Though couched in this language of ‘liberty,’ mitigating the loss of life ensures one’s longtime enjoyment of liberty – as opposed to dying for ‘liberty’s’ sake during a hurricane (or other disasters like the COVID-19 pandemic). For example, Cuba’s hurricane preparedness in relation to the US stands out. Cuba’s disaster response compares a bit more favorably to the Federal Emergency Management Agency (FEMA). FEMA “oversaw 15 times more deaths from hurricanes than Cuba from 2005 — the year that Katrina struck New Orleans — to 2015” (Wolfe, 2021).

    This is because Cuba’s disaster preparedness is proactive, prioritizing human life and well-being given the ideological foundations of its revolution that transformed political, social, economic, and environmental relations in the country. US disaster preparedness on the other hand prioritizes profit at the expense of people – it is reactionary and reactive, often blaming victims of hurricane disasters for the lack of state preparedness.

    The Caribbean Hurricane as Natural Phenomena, the Disaster as Colonial Inheritance

    Hurricanes are not experienced equally amongst states in the Western Hemisphere. People living on Caribbean islands tend to experience the worst effects of hurricanes when they do strike, and it is also people on these same islands which tend to have less resources to recover from the impacts of a hurricane. Though Cuba’s hurricane preparedness is commendable, infrastructure and livelihoods there are still devastated by hurricanes. Many of the Caribbean islands are geographically located “in the Atlantic Hurricane Alley, [and] the region is sensitive to large-scale fluctuation of ocean patterns that are disrupted by warming seas” (Zodgekar, et. al 2023, p. 321). Additionally, populations and infrastructure on these islands tend to be concentrated on the coast – a colonial holdover – given that European “settlements were established directly in the path of oncoming hurricanes (Pérez Jr., 2001, p. 8). Initially due to lack of knowledge, this trend remained unchanged amongst Europeans given the need to export what was being extracted from these islands using the ports developed on the coasts.

    Historically, environmental disasters (hurricanes, earthquakes, and droughts) throughout the 1600s-1900s would consolidate land amongst the wealthiest European settlers on different islands and would foil settler attempts to diversify agriculture on islands. This was because wealthy settlers could more easily recover and rebuild what was lost in the aftermath of a hurricane, due to their ability to access credit from Europe and resort to using their own fortunes (wealth and networks). On the other hand, smaller settlers unable to rebuild and recover from hurricane losses had a harder time accessing credit – and creditors within Europe viewed loaning to smaller settlers as a financial burden. If these smaller settlers were already in debt, the passing of a hurricane meant that they would either have to work off debt by giving all that they had to a creditor in Europe, or one on the island, by entering into a credit arrangement with a wealthier plantation owner (Mulcahy, 2006, p. 86-8). These losses were quite frequent, as it is known that these phenomena made it so that some European creditors in Europe would amass plantation wealth, even if they themselves had never visited a Caribbean island or formally engaged in plantation life (Mulcahy, 2006, p. 87-8).

    These dynamics, in part, explain the predominance of the cultivation of sugar (and rice in what would become the South-Eastern United States) within the region, and even then, “plantership […] necessitated deep pockets (or strong credit) to survive its constant and rapid fluctuations” (Mulcahy, 2006, p. 66). “Without access to credit, smaller farmers were forced to sell their lands to wealthier and more secure planters, who thereby expanded their landholdings and production capabilities” (Mulcahy, 2006, p. 86). This consolidation of larger and wealthier plantations also made other concerns arise, namely the depopulation of settlers from the islands, as debtors opted to leave in the aftermath of storms, and later the transfers of estates to owners outside of the colonies (Mulcahy, 2006, p. 86-7). In essence, settlers’ decision to flee in the wake of, or after, a hurricane shaped population dynamics and demographics in colonies. They also shaped the lack of hurricane preparedness in colonies. Wealthier planters on the islands, and Europeans in Europe, who could suffer from hurricane losses (hurricanes themselves not being guaranteed every season), rebuild afterwards, and recover previous losses given the profit from plantation trade goods – had less incentives to plan ahead if they were not as risk of losing everything they had amassed in their life after a hurricane.

    In smaller island states’, where plantation systems were heavily disrupted or stunted in growth due to geography of the land (especially in the Lesser Antilles), even fewer attempts were made to develop any infrastructure which could protect against storms (Mulcahy, 2006). To be clear, this does not mean that these landscapes were spared from destruction which made the impacts of hurricanes worse: deforestation, overgrazing, and over-cultivation of Caribbean islands during centuries of European colonialism that included dispossession of indigenous groups and the enslavement of Africans, also impacted how hurricanes came to be experienced. While planter consolidation, rebuilding, and profits have so far been underscored here – the elephant in the room is that all of this occurred alongside the massive death toll of enslaved Africans who suffered the most both during and after the passage of a hurricane. Outside of the high death tolls for enslaved Africans on the islands, once a hurricane passed, the ultimate goal in the colonies became the reestablishment of ‘law-and-order’ given fears of slave revolt in the wake of destruction (Mulcahy, 2006; Schwartz, 2015). Although slave-revolts post hurricane remained a consistent fear of settlers, slave revolts did not occur after a hurricane due to its disproportionate toll on enslaved populations who were “often the most debilitated by the shortage of food and the diseases that followed the hurricane” (Schwartz, 2015, p. 49).

    Caribbean Indigenous Peoples Blamed European Imperial Settlement for Increased Hurricane Devastation

    From historical accounts, we know that the Spaniards were the first Europeans to experience a hurricane within the Western Hemisphere during Columbus’s second voyage in 1494/5 (Pérez Jr., 2001; Mulcahy, 2006; Schwartz, 2015). The hurricane experience was unlike anything that Europeans had observed in Europe, and it was from this experience that they sought out intel from the indigenous peoples in the Caribbean. For Caribbean indigenous peoples, “the great storms were part of the annual cycle of life. They respected their power and often deified it, but they also sought practical ways to adjust their lives to the storms. Examples were many: The Calusas of southwest Florida planted rows of trees to serve as windbreaks to protect their villages from hurricanes. On the islands of the Greater Antilles—Cuba, Jamaica, Hispaniola, and Puerto Rico—the Taino people preferred root crops like yucca, malanga, and yautia because of their resistance to windstorm damage. The Maya of Yucatan generally avoided building their cities on the coast because they understood that such locations were vulnerable to the winds and to ocean surges that accompanied the storms” (Schwartz, 2015, p. 5). Further, Indigenous representations of hurricanes were overall accurate and are similar to modern meteorological mapping of these storms. Europeans also learned from Caribbean Indigenous groups that you could “track” when a hurricane would strike. These developments meant that Indigenous Caribbean knowledge of the hurricane was not only limited to the occurrence of storm, but also meant that Indigenous Caribbean societies factored in preparedness for hurricanes within their worldviews.

    Given Caribbean Indigenous knowledge of hurricanes, it is these same people who also recognized that the changes to the landscape by European colonialism contributed to the increased devastation caused by hurricanes between the 1600s-1900s. As such, English colonists who would also come to experience the hurricanes report that “several elderly Caribs stated that hurricanes had become more frequent in recent years, which they viewed as a punishment for their interactions with Europeans” and the main “alteration that our people attribute the more frequent happenings of Hurricanes” (Mulcahy, 2006, p. 35). What these settler accounts reveal about Indigenous Caribbean peoples is what Schwartz notes in his 2015 book, Sea of Storms: A History of Hurricanes in the Greater Caribbean from Columbus to Katrina, that although “hurricanes were a natural phenomenon; what made them disasters was the patterns of settlement, economic activity, and other human action” (p. 74). Nonetheless, colonial ecological and environmental destruction in the Caribbean – which increased the felt impact of hurricanes – remained worthwhile for Europeans given the high profits to be made from export crops, which kept people there to rebuild after hurricanes. Mulcahy in his 2006 book, Hurricanes and Society in the British Greater Caribbean, 1624 – 1783, writes “European settlers and colonists were engaged in a never-ending struggle against nature in their quest for wealth” (p. 93)

    Additionally, the European empire’s responses to hurricanes also influenced decisions to stay. Because colonial societies in the Caribbean were stratified along racial and other social hierarchies – hurricanes presented opportunities for large scale consolidation of plantation property on islands which privileged wealthy plantation owners. Additionally, smaller merchants and plantations which could not recover post hurricane were sometimes forced to transfer ownership to merchants in Europe – who never had to visit these properties while amassing wealth from them thereafter (Mulcahy 2006, p. 88). Disaster relief to the colonies thus came to be historically designed as a way for further economic integration, and “assistance to the colonies in times of disaster would bring wealth and affluence to the empire” (Mulcahy 2006, p. 162). Disaster assistance – while increasing inequalities between all peoples in the colonies – did overall benefit imperial capitalism and patriotism within the empire, amongst loyal subjects, especially amongst elite classes, who received the majority of aid based on their losses.

    Banking on Hurricanes and Absolving Empire of Responsibility: Debates in Europe

    While debates in Europe raged regarding enriching the already wealthy within the colonies with disaster relief – these debates did not change the post-hurricane reality of which those most needing of aid (Indigenous groups, enslaved Africans, indentured workers, small merchants, and small planters) were the least likely to receive it, which was true across all of the different European colonies (Pérez Jr., 2001; Mulcahy, 2006; Schwartz, 2015). “Vulnerability to the hurricane itself was a function of the material determinants” around which colonial social hierarchies were arranged (Pérez Jr., 2001, p. 111). In Europe, debates focused primarily on creditors, so it was argued that the wealthy were more primed to repay creditors when/if they received disaster relief after a hurricane. On the other hand, the proliferation of print news meant that individuals and organizations (e.g., the Church) could send aid to the colonies after disaster struck. Previously, when disaster struck it would take months for news to reach those in Europe, even as the disruptions in trade were more readily felt. Moreover, it was hard for the public in Europe to understand the scale of destruction caused by hurricanes in the Americas, given that this kind of natural disaster did not occur in Europe.

    With the establishment of print media, the destruction caused by hurricanes and the damages that they did to plantation systems – which would require a lot of assistance to recover – was made much more readily available to people who could empathize and assist in recovery efforts. Within the British empire, some newspapers even published who would send what amount and type of post disaster relief to the colonies, which undoubtedly contributed to the charitable giving of some wealthy individuals (Mulcahy 2006; Schwartz 2015). Given that the voyage from Europe to the various colonies was long, there was illegal trading between different colonies to provide relief to one another faster – including with the United States, even after the American Revolution.

    It is this colonial history which still shapes the lack of hurricane preparedness in a region prone to have them. Thus, most scholars on hurricanes in the region continue to highlight the colonial and slave legacies which have shaped regional unpreparedness to hurricanes. Though the United States is a wealthier country today with the capabilities to develop hurricane preparedness – even if only within its own borders – it is elite US security interests and ideological leanings which have prevented it from doing so. Additionally, historians like Schwartz (2015) make a compelling argument that “the United States, by its military and political expansion into the Caribbean after 1898, its foreign policy objectives in the Cold War, and through its advocacy of certain forms of capitalism joined with its ability to impose its preferences on international institutions, has also influenced the way in which the whole region has faced hurricanes and other disasters” (Schwartz, 2015, p. xviii-xix). This implies that the United States – like the European empire’s past – also has a stake, or interest, in regional hurricane unpreparedness for both political, economic, and security objectives.

    US Imperial Extensions in the Caribbean, Impact on Hurricane Preparedness

    From this overview of the history of hurricanes in the Caribbean, the Yucatán Peninsula, the Gulf of Mexico, and the South-Eastern United States a few things become clear: hurricane preparedness has never been a concern for colonial capitalist development. Hurricane disasters came to be recognized as extremely ruinous to those occupying the lowest rungs of colonial societies, aid was given to the wealthy people who were understood as being able to put aid to better usage, and disaster situations consolidated preferred modes of accumulation in otherwise “chaotic” and uncivilized landscapes. Thus, outside of patriotic tales and misremembering of the storm events, historically “hopes of communal solidarity” in the wake and aftermath of hurricanes “were either naïve or disingenuous [… with] social divisions ha[ving] always shaped the responses to hurricanes (Schwartz, 2015, p. 68-9). Given strict colonial hierarchies, the maintenance of order – to dissuade slave revolts and looting – were always preeminent concerns of empires and those with wealth and power. This is important to plainly state, given that little has changed in today’s experience with hurricanes in the region.

    Today’s granting of conditioned relief and temporary debt removals still serve to subordinate Caribbean states to the Western capitalist system and the US security apparatus. Those areas hardest hit by storms and less likely to receive aid, continue to be occupied by the poor populations that are largely non-white/Euro peoples. Settlements on islands continue to be concentrated on coasts, where the tourist industry quickly rebuilds its infrastructure post-hurricane and are the first to receive aid. This at once dispels the myths that recovery is impossible, as it happens in the large coastal areas owned and controlled by foreign hotel chains and entities which quickly beckon tourists back to their “lovely beaches” less than a day after a hurricane. Preparedness for hurricanes in the Caribbean islands are “subordinated to political, military, or what today would be called ‘security’ concerns” (Schwartz, 2015, p. 276). I would include economic and ideological concerns as well. These latter concerns are maintained by the wealthiest states in the hemisphere – the United States and Canada.

    Hurricane Flora in the 1960s claimed the lives of over 5,000 Haitians under the Duvalier dictatorship – which failed to even warn Haitians about the arrival of the hurricane so that disorder against Duvalier would not take over the country. The lack of preparedness was accepted by both the United States and Canadian governments given their fear of communism in the Caribbean region. Thus “unlike Haiti’s U.S.-backed right-wing president, François Duvalier, Castro’s Communist government ordered residents living in the hurricane’s projected path to evacuate their homes, and if they were unable, to stay and prepare appropriately for the storm.” This preparation and the establishment of Cuba’s defense system in 1966 accounted for significantly less deaths (1,157) in Cuba (Wolfe, 2021). Today, unpreparedness remains a feature in most Caribbean countries that put corporate interests and the interests of the US (and its allies) security objectives above the prioritization of human life and livelihoods in the Caribbean.

    As further illustration of this point, even though the 2004 Hurricane Jeanne hit Cuba a lot harder than Haiti – killing 3,000 Haitians – no Cuban lives were lost due to the hurricane (Wolfe, 2021). The historical and present-day case of Haiti is both informative and a cause for worry as we expect future hurricane seasons to be quite bad. Not only is Haiti a fully privatized economy (Wilentz, 2008); but it is also one that has been under the tutelage of the CORE group – a group composed primarily of foreign ambassadors from the US, France, Canada, Spain, Brazil, Germany, and a few representatives from the European Union (EU), the United Nations (UN), and the Organization of American States (OAS) – for over two decades. The CORE group’s tutelage of Haiti has been exceptionally negative, as these states and their ambassadors secure their own corporate and labor interests in the country at the expense of that state’s democracy and national sovereignty (Edmonds, 2024). Thus, disaster preparedness in Haiti has never been an agenda item – and has only gotten worse as those governing the country continue to benefit from political, economic, and environmental disasters there. Present day armed intervention and occupation in Haiti, further makes it unlikely that Haiti will be able to weather the next hurricane season.

    Hurricane Unpreparedness, A Note on Canada

    It is important to remind here that although much is said about US imperialism and security concerns trumping human rights and pro-people development in the region – Canada is not exempt from this critique. For instance, although Canada touts that its military base (OSH-LAC) in the Caribbean is a “support hub” – that also seeks to assist states experiencing disasters, of which hurricanes are included – in 2017 when Category 5 Hurricane’s Irma and Maria wreaked havoc on Dominica, OSH-LAC warships monitored the situation but provided no on the ground help to Caribbean peoples there (John, 2024, p. 12-3). The Canadian government also enacted restrictive migration policies towards those fleeing from the hurricane and its damages. This practice would be repeated by Canada again in 2019 during the aftermath of Hurricane Dorian in The Bahamas (John, 2024, p. 12-3). Given that I am currently living in Canada, it is important to point out that Canada is a state that frequently touts progressive rhetoric on climate change, resiliency, and disaster preparedness in the Caribbean region. However, Canada’s actions continue to render the Caribbean region unprepared alongside the actions of the US.

    In the 2023 Canada-CARICOM summit hosted by Canada, Caribbean prime ministers sought to place climate issues and climate infrastructure at the top of the agenda – however, Canada was mainly concerned with getting support for an armed intervention in Haiti (Thurton, 2023). Haiti remains the most unprepared country in the Caribbean when disasters hit, which made Canada’s insistence on armed intervention and occupation even more tone deaf. Haiti’s unpreparedness is directly tied to US, Canada, France, and CORE group members tutelage and rejection of Haitian democracy ever since that country’s integration into the Western capitalist system via US occupation. These examples illuminate the fact that the wealthier states in the Western Hemisphere, namely the US and Canada, actively disregard the lives of those impacted by hurricanes and other natural disasters to their south – while first and foremost safeguarding their own economic, ideological, and security priorities. In my analysis of ‘south,’ the Caribbean, the Yucatán Peninsula, the Gulf of Mexico, and the South-Eastern United States are included.

    Conclusion

    Ideologically, the promotion of capitalism, colonialism, and imperialism in the Caribbean (of which the South-Eastern United States, the Gulf of Mexico and Yucatán Peninsula is included) continues to pose an obstacle to disaster preparedness in a region prone to hurricanes.  More importantly, the promotion of these harmful ideologies often comes at the expense of human life. Nothing makes this clearer than the fact that it is the revolutionary state – which is also the most heavily economically sanctioned state in the region – Cuba, that continues to be the most prepared state in times of disaster. This stands in stark contrast to other Caribbean states and to wealthier states, like the US, which mandate regional unpreparedness. Today, while we await (but hope that it is not so) a bad hurricane season, the Caribbean region is more militarized than it has been since the end of the 20th century and beginning of the 21st century. Militarization is directly due to US security objectives that aim to keep China’s investments (thus competition) out of the region. This policy is backed by Canada, which seeks to advance its own corporate interests in the region.

    The US and Canada continue to militarize the Caribbean region, exacerbating climate change and neglecting the urgency of developing resiliency infrastructure. In fact, militarization in the Caribbean region today (and in Africa and Asia) occurs alongside the tightening of both the US and Canadian borders given hostile narratives towards immigrants and immigration within them. This even with the region’s long history (as has been pointed out) of people fleeing the region both during and after a hurricane. All of which indicates that while these states are undoubtedly deepening the climate crisis with their global “security” endeavors, they view the people harmed and negatively impacted by their actions as disposable.

    Postscript

    Three months after the writing of this document, 5 hurricanes – Debby, Ernesto, Francine, Helene, and Milton – have impacted peoples and infrastructure in the south. The 2024 Atlantic Hurricane season thus far (October 11th, 2024) has taken almost 400 lives – with the actual figure being uncertain, given that the damage from Milton is still being assessed. Each storm is estimated to have cost between $80 – $250 billion (USD) in damages across the region. While governments talk about costs and recovery efforts to get economies “back on track” and provide people with temporary and conditional aid – which is the post disaster norm – we are presented with an uncomfortable, yet undeniable fact: states in the region, whether by colonial inheritance or commitment to capitalism, are banking on unpreparedness continuing well into the future. We must be proactive in defeating this dangerous ideology that places people’s lives, livelihoods and the physical environment at stake; while perpetuating, in its aftermath, conditions that make it so.

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    Photo Credit: InOldNews, by Delia Louis
    Description: Depicts St. Lucia during and post Hurricane Beryl
    License info: Creative Commons taken from Flickr.

    About the author: Tamanisha J. John is an Assistant Professor at York University in the Department of Politics

    MIL OSI NGO