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  • MIL-OSI Economics: Isabel Schnabel: Escaping stagnation: towards a stronger euro area

    Source: European Central Bank

    Speech by Isabel Schnabel, Member of the Executive Board of the ECB, at a lecture in memory of Walter Eucken

    Freiburg, 2 October 2024

    The euro area economy is stagnating. Over the past two years, real GDP has expanded, on average, by only 0.1% per quarter. Surveys among firms indicate that growth is likely to remain subdued during the second half of this year.

    Weak growth reflects, to a large extent, the exceptional shocks that hit the euro area economy in recent years, most notably the pandemic and Russia’s invasion of Ukraine.[1]

    Another reason is the tightening of monetary policy. From late 2021 to the end of 2023, bank lending rates for house purchases by households increased from 1.3% to 4%, and those for corporate loans from 1.4% to 5.3%. Such levels had not been seen in more than a decade.

    Dampening growth in aggregate demand was needed to restore price stability.

    In 2021, when the euro area economy reopened in the pandemic and the economy’s supply capacity was still severely constrained, real private consumption rose by more than 8% in just two quarters. When we began to raise our key policy rates in July 2022, households and firms started to spend less and save more, thereby bringing supply and demand closer into balance.

    Yet, although the peak impact of monetary tightening is likely to be behind us and real incomes are rising as inflation falls and wages increase, growth remains shallow. Over the past 18 months, the recovery has repeatedly been weaker than anticipated.

    Aggregate growth figures mask, however, significant heterogeneity across euro area economies. Since interest rates started to rise, growth has become increasingly uneven (Slide 2).

    In some Member States, such as Malta, Spain and Portugal, output has expanded measurably. In Malta, for example, annual real GDP growth has averaged 6% since 2022. In Spain and Portugal, real activity has grown by nearly 4% annually.

    In fact, much of the euro area’s dismal growth performance since we started raising our key policy rates can be attributed to a small group of countries, including Germany, Finland and Estonia.

    If one were to plot growth in the euro area excluding Germany, for example, activity in the currency area would have been remarkably resilient in the face of the sharpest monetary policy tightening in decades and a war raging at the EU’s doorstep. Only a few advanced economies, most notably the United States, have expanded at a faster pace during this period (Slide 3).

    Monetary policy unlikely to be the key driver of heterogeneity

    Monetary policy has probably been one factor contributing to heterogeneity in the euro area. An economy such as Germany’s, which is centred around a strong manufacturing base, is likely to be more sensitive to changes in interest rates than more service-oriented economies.

    Three observations suggest, however, that monetary policy is unlikely to be the key driver of heterogeneity.

    First, output in Germany had started to stagnate well before the rise in interest rates. At the end of 2021, real GDP was only 1% above its level four years earlier, against increases of 4.9% for the euro area excluding Germany and even 10% in the United States over the same period.

    In other words, the growth gap was widening already well before we started tightening monetary policy.

    Second, we observe significant heterogeneity even in parts of economic activity that are more sensitive to changes in interest rates. In Germany, industrial production (excluding construction) is 10% lower today than it was before market interest rates started to rise in late 2021 – a considerably larger loss than that seen in most other economies (Slide 4, left-hand side).

    This contrast becomes even starker when one considers the production of capital goods, which tend to be the most interest-rate sensitive.

    Over the past two and a half years, the slowdown in the production of capital goods started earlier and was more pronounced in Germany than in other major euro area economies. Today, capital goods production in Germany is 3% lower than at the end of 2021. By contrast, it remained nearly 17% higher in the Netherlands over the same period (Slide 4, right-hand side).

    Third, German households have, on aggregate, so far benefited from the rise in interest rates.

    Since the end of 2021, their net interest income has increased sharply, as they shifted their savings into time deposits offering higher returns, while interest rates on long-running, fixed-rate mortgages remained low (Slide 5).

    By contrast, the widespread prevalence of flexible-rate mortgages in Spain has led to a notable increase in interest payments that has more than offset the rise in income gained from higher interest rates on savings.

    That is, the transmission of monetary policy through some channels, such as the mortgage channel, is likely to have been weaker, not stronger, in Germany than in other countries.

    Resilient growth in the south of the euro area

    To understand the main drivers behind the heterogeneity, it is necessary to look at both the countries that have grown faster than what might have been expected considering tight policy and those that have been underperforming.

    Let me focus first on the more dynamic regions of the euro area.

    In many cases, trade played an important role. In Spain, for example, net exports contributed, on average, around 0.4 percentage points to growth every quarter over the past two and a half years.

    This is a notable increase from the period preceding the pandemic (Slide 6, left-hand side). The same broad pattern can be observed in Italy and Portugal.

    A strong recovery in tourism after the pandemic has been a key factor supporting the rise in exports in these economies. But trade is not the whole story.

    Labour market developments played an equally important role. Greece is the most remarkable case. Unemployment fell from 13.7% in early 2022 to 9.9% in July this year, a level not seen since the global financial crisis (Slide 6, right-hand side).

    We observe similar improvements in labour markets across the south of the euro area. In Italy, for example, the number of people in employment has expanded by more than one million since 2022, measurably supporting private consumption and confidence.

    Finally, in some countries fiscal policy remained more accommodative than in others. In Italy, the government deficit last year was 7.2%, compared with 2.6% in Germany.

    Funds allocated under the Next Generation EU programme provided further impetus to growth and employment. In 2022 and 2023, 37% of the funds were allocated to the five fastest-growing countries although their share in the euro area’s economy accounted for only 13%.

    All in all, in large parts of the single currency area, the impact of tighter monetary policy was weakened by a combination of looser fiscal policy and a shift in consumption towards services. In addition, some of these economies have gone some way towards becoming more resilient through structural reforms after the sovereign debt crisis, which helps explain their overperformance.

    While some countries will need to adjust government spending to be in line with the new European fiscal rules, the gradual dialling back of monetary policy restraint since June, together with the continued rise in real incomes, is likely to support growth further over the medium term.

    Structural headwinds in export-oriented countries

    The gradual moderation in the degree of monetary policy restriction will also support growth in those parts of the euro area that have stagnated in recent years. Construction activity, for example, has contracted by 12% since 2022 in Finland and by nearly 7% in Germany.

    While rising costs for equipment and raw materials contributed measurably to the drag in construction, the recent decline in mortgage rates is already translating into rising demand for housing.

    A less restrictive policy stance may help reduce risks of negative growth spillovers from the core to the periphery. However, monetary policy is no panacea.

    Germany, in particular, is currently facing strong headwinds that will not be resolved by lower interest rates alone. Its business model is built on export-driven growth, focusing on the high-end segment of traditional manufacturing industries.

    From 2000 to 2015, Germany’s current account turned from a deficit of 1.8% of GDP to a surplus of 8.6% – an unparalleled surge among advanced economies (Slide 7, left-hand side). As a result, net exports accounted for almost one-third of growth over this period.

    But on average since 2016, net exports have no longer been contributing to growth, with Germany losing export market shares at a concerning pace (Slide 7, right-hand side). And with domestic demand not stepping up, the German economy has been growing by just 1% on average per year over this period.

    Of course, this needs to be seen in the context of the series of shocks in recent years. Germany’s growth outcomes were better than feared considering the sheer size of the energy shock. The swift reduction in gas consumption and the rapid switch to alternative energy sources in response to the sudden loss of access to Russian gas have demonstrated the adaptability of the German economy.[2]

    And yet, Germany is facing deep-seated challenges.

    In fact, the perils of relying on exports as a primary source of growth have long been known.

    In the two decades up to the pandemic, euro area exporters – and German firms in particular – benefited from exceptionally strong growth in some key markets, especially in China, where a real estate boom fuelled demand for goods exports from the euro area, particularly for capital goods.[3]

    ECB staff analysis shows that euro area firms would have lost export market shares at a much faster pace if it had not been for such geographical and sectoral effects, which largely offset parallel losses in price competitiveness related to higher energy and labour costs as well as weaker productivity growth (Slide 8, panel a).

    But since the pandemic, competitiveness effects have started to dominate as the special factors boosting euro area exports have slowed, explaining the sizeable drop in export market shares (Slide 8, panel b).[4]

    Export-led growth model may need adjustment

    Part of the weakness in exports is likely to be cyclical, reflecting the lagged effects of global monetary policy tightening and the weakness in China.

    But there is a risk that the pre-pandemic export-oriented growth model will face more permanent headwinds and require adjustment, for three main reasons.

    First, the nature of globalisation is changing. Geoeconomic fragmentation is intensifying, with global trade measures increasing sharply, especially for critical raw materials – the production of which is often concentrated in just a few countries.

    As such, the times when globalisation was boosting trade and growth may be behind us. There is evidence that geopolitics is increasingly hampering trade and that firms progressively seek to diversify their supply of strategic goods by sourcing them from producers in geopolitically aligned countries.[5]

    Given that euro area firms are more deeply integrated into global value chains than many of their competitors, fragmentation could hurt the euro area economy more than others.[6]

    Second, the energy shock was a major driver behind the decline in euro area market shares.

    Unlike past oil price shocks, which affected firms across the globe, Russia’s invasion of Ukraine and the resulting sharp spike in gas prices, was a massive competitiveness shock for the euro area, as the input costs of domestic exporters rose sharply relative to those of their competitors.

    As a result, the exports of energy-intensive sectors decreased strongly, accounting for almost the entire decline in total exports in 2023 (Slide 9, left-hand side).[7]

    ECB staff analysis shows that, at the peak of the European gas crisis, the average impact on euro area export market shares was a decline of 7%, with energy-intensive industries experiencing losses of more than 15% in export market shares (Slide 9, right-hand side).

    Although energy costs have fallen from their peak, they remain almost four times as high as in the United States (Slide 10, left-hand side). Energy will therefore likely remain a drag on euro area price competitiveness.

    Third, competition is changing.

    Two decades ago, Chinese firms specialised mainly in the production of low-value goods, such as clothing, footwear or plastic. Today, China is increasingly building up large production capacities in high-value-added industries, such as the automotive and specialised machinery sectors.

    China moving up in the value chain is not only directly dampening demand for euro area goods – it is also turning China into a fierce competitor in third markets.

    This is particularly visible in Germany and Italy, which over the past two decades have seen a steady increase in the number of sectors in which these economies and China have a revealed comparative advantage – meaning they export more in these sectors than the global average (Slide 10, right-hand side).

    With Chinese and euro area firms increasingly competing in similar export markets, China’s significant gains in price competitiveness vis-à-vis the euro area are weighing on euro area exports.

    Since 2021, China has accounted for the entire appreciation in real effective exchange rate of the euro based on producer prices (Slide 11, left-hand side). While euro area producer prices have increased significantly, Chinese producer prices have remained remarkably stable over the past four years (Slide 11, right-hand side).

    On the one hand, this is the result of generous state subsidies that are significantly higher than in most other advanced and major emerging market economies (Slide 12, left-hand side).[8]

    On the other hand, rising overcapacities are weighing on Chinese export prices.[9] The automotive sector is a case in point. China is making significant upfront investments in production and transport to boost its export capacity.

    Orders for new shipping vessels are projected to raise the number of electric vehicles available for exports by 1.7 million annually by 2026 (Slide 12, right-hand side). To put this in perspective, the total number of electric vehicles sold across the EU in 2023 was 2.5 million.

    Need for a reform agenda putting innovation and entrepreneurship first

    Europe, and Germany in particular, needs to adapt to this new environment. At a time when global economic relationships are becoming more uncertain, Europe needs to regain its competitiveness to protect its standard of living and social values.

    Past efforts to regain competitiveness were not without shortcomings. Policies aimed at reducing wage costs, for example, often came with significant economic hardship and social costs.

    Today, the focus needs to be a different one. Europe should put innovation and entrepreneurship at the heart of its agenda.

    In his recent report, Mario Draghi presents a candid and unsparing diagnosis of the state of the euro area economy and makes many useful proposals.[10]

    Some of those proposals are unlikely to find broad support among political leaders. But it would be wrong to reduce the report to a call for more joint borrowing, which in any case should only be discussed after evaluating the experience with the Recovery and Resilience Facility.

    In fact, many reforms that can foster European competitiveness do not need significant upfront investment, nor do they require changes to the EU Treaty.

    Let me highlight three areas that I consider most promising.

    Creating a European Silicon Valley

    First, Europe needs to facilitate the birth and growth of innovative start-ups.

    Since 2000, productivity per hour worked has increased by just 0.8% per year on average – only half the growth seen in the United States (Slide 13). European firms’ failure to reap the efficiency gains brought about by information and communication technologies is one of the root causes.[11]

    Europe is not short on innovation potential. But its regulatory framework and the lack of deep capital markets make it difficult for young firms to thrive.

    Over the past decade, European start-ups have raised funds equivalent to just 0.3% of GDP from venture capital investments, less than a third of the figure for the United States.[12] Banks do not have the risk-bearing capacity to fill this void, and this would not change even if we managed to revive securitisation in the euro area.

    Today, many promising start-ups shift their operations overseas because of a lack of risk capital. In 2022, 58 founders of “unicorns” in the United States – start-ups that went on to be valued over USD 1 billion – had been born in the euro area.

    If Europe wants to retain such potential, it needs to make private equity investments more attractive, including by removing the “debt bias” in national tax systems.

    Better mobilisation of capital is one way to foster innovation. Strengthening the Single Market, fostering competition and cutting red tape is another.

    The European economy remains segmented along national borders, torn between different rules and legal systems. This makes it difficult for young firms to grow into sufficient size and form innovation clusters, so that new ideas and technologies can spread faster and allow them to compete in an environment where “the winner takes most”.

    The Single Market is Europe’s most effective tool to mobilise economies of scale and to enable the creation of a European Silicon Valley. However, the level of European integration remains disappointingly low – especially in services, which amount to around 67% of the EU’s GDP. Intra-EU trade in services accounts for only about 15% of GDP, compared with close to 50% for goods.

    To a significant extent, this reflects regulatory and administrative barriers to doing business in the euro area that hold back competition and thus innovation.

    Green innovation as an engine of growth

    Second, Europe needs to leverage the green transition.

    Making the European economies more sustainable is not a choice. Weather-related disasters are becoming more frequent and more severe, which requires urgent action to reduce carbon emissions and adapt to the growing impact of climate change.

    Embracing the green transition comes with costs for society. Relative price changes are often most painful for those who can least afford it. But the green transition also offers the potential to unlock economic opportunities, especially for those moving first.

    This is the spirit of the Porter hypothesis – the view that environmental measures can be an important driver of innovation.[13] Although controversial, there is ample evidence in favour of the Porter hypothesis.

    Consider the automotive industry.

    Euro area car producers have lost export market share over the past few years (Slide 14, left-hand side). But these losses were largely confined to the combustion engine segment – in the electric car industry, euro area firms made considerable gains, also by developing hybrid technologies early.

    These gains were made possible by significant investments in research and development. According to the most recent data, automotive companies in the euro area still boasted the world’s largest investments in research and development in 2022, about twice as much as the United States and China.

    The green industry, including low-emission car production, is the only innovative sector where the EU is currently leading in terms of the number of patents (Slide 14, right-hand side).

    Technological leadership also allowed euro area firms to raise their export prices on motor vehicles more than others, benefiting from a relatively price-inelastic demand (Slide 15, left-hand side).[14] As a result, gross value added was typically more resilient than industrial production, as firms moved into higher-margin activities (Slide 15, right-hand side).

    In other words, Europe has invested more than other countries in being a frontrunner in the green transition. Now is not the time to backtrack. Europe needs to continue investing in green technologies and innovations to turn the green transition into an engine of growth.

    The sooner Europe decarbonises its energy consumption, the faster it will reduce its dependency on foreign suppliers and regain price competitiveness, because the marginal cost of renewable energies is practically zero.

    This is all the more important in times of the artificial intelligence revolution, which will significantly increase the demand for energy. At the same time, the adoption of new energy sources, such as hydrogen, may require a transition phase during which not all hydrogen can be generated from renewable energies.

    Managing the green transition requires both private and public investments. To foster this process, a mission-oriented industrial policy may be needed that strategically focuses on achieving the green transition through coordinated efforts and thus reduces uncertainty.[15]

    For example, last year France introduced new criteria for granting subsidies to purchase electric vehicles, which privilege supply chains that are entirely green. As China’s electric vehicle industry relies heavily on coal-generated electricity, these criteria implicitly favour European production.[16]

    Significant private and public investments are also needed to upgrade Europe’s electricity grid and to build new infrastructure, such as pipelines or networks of fuel stations for hydrogen, and these investments need to happen soon if Europe wants to be a leader in new technologies.

    The scale of these investments may require new financing ideas. Their costs, and the uncertainty about future payoffs, are often so large that they may not break even over conventional investment horizons.

    So, in some cases the resulting risks cannot be borne by entrepreneurs alone, making public-private partnerships a viable option to internalise the externalities arising from climate change. In some cases, this could include exploring options of granting state guarantees as a way for governments to incentivise private firms to invest in green infrastructure and technologies.

    Higher labour participation and immigration are indispensable to address labour scarcity

    Third, Europe needs to address labour scarcity.

    Longer life expectancy and declining fertility will lead to a sharp drop in the euro area’s working-age population and a significant increase in the old-age dependency ratio. These developments are most concerning in Italy, where the share in the total population of those aged between 15 and 64 is projected to fall from about 63% today to 55% by 2050 (Slide 16, left-hand side).

    Over the past ten years, these strains have partly been cushioned by immigration. But as the baby boomer generation is retiring and migration is expected to moderate, the drag on growth coming from an ageing population is likely to be significant.

    New research suggests that, over the next two decades, demographic change may lower annual per capita output growth by more than one percentage point in Italy and by 0.8 percentage points in Germany.[17]

    This comes at a time when a considerable share of firms across the euro area are already reporting acute shortages of labour limiting their business (Slide 16, right-hand side). Despite declining somewhat recently, this share has never been higher than in recent years.

    Labour scarcity cuts across society. In many countries, thousands of teacher vacancies are not filled, especially for STEM subjects. There are chronic staff shortages in hospitals and nursing homes.

    And all countries are facing a lack of skilled workers in specialised industries. These shortages are likely to dramatically increase as demographic change proceeds and cannot be offset by rising productivity alone.

    Europe should therefore do four things to address labour scarcity.

    First, it should further increase labour force participation. Significant progress has been made in recent decades, especially by bringing more women and older workers into the labour force. But participation rates remain below those in some other advanced economies.

    Second, resources need to be allocated more efficiently. The public sector has played an important role in explaining total employment growth over the past few years.[18] The health crisis in particular has made some of these developments necessary. But the larger the public sector becomes, the less human capital is available for private firms to expand their productive businesses.

    Third, Europe needs to strengthen education. In many euro area countries, a significant share of adults – in some cases more than a third – have not completed upper secondary school. Supporting education will not only unlock the benefits of new technologies. It will also work against demographic headwinds, as higher levels of education tend to lead to higher labour market participation.[19]

    Last, Europe needs to attract foreign workers. Solutions are needed for how to make immigration socially acceptable and how to promote the flow of workers across the single currency area.

    Conclusion

    Let me conclude.

    In recent years, growth in the euro area has become increasingly uneven. While monetary policy may have contributed to rising heterogeneity, it is not the main driver. Rather, structural headwinds are holding back growth in some countries more than in others.

    We cannot ignore the headwinds to growth. With signs of softening labour demand and further progress in disinflation, a sustainable fall of inflation back to our 2% target in a timely manner is becoming more likely, despite still elevated services inflation and strong wage growth.

    At the same time, monetary policy cannot resolve structural issues.

    European governments have a historic responsibility to turn the current challenges into opportunities. Europe has demonstrated in the past that it can adjust and rebound when faced with adversity.

    Escaping stagnation requires forceful action at both national and European level. It requires putting innovation and entrepreneurship first by promoting competition and business dynamism.

    This means strengthening the Single Market, improving access to private equity capital and reducing burdensome bureaucracy. It means leveraging the green transition to advance innovation and regain price competitiveness. And it means putting in place policies that incentivise labour participation and preserve a skilled workforce through immigration and education.

    In all these ways, we can make the euro area stronger.

    Thank you.

    MIL OSI Economics –

  • MIL-OSI: Silynxcom Announces Results for First Half of 2024; Significant Revenue Growth and Improvement in Gross Margin

    Source: GlobeNewswire (MIL-OSI)

    NETANYA, Israel, Oct. 02, 2024 (GLOBE NEWSWIRE) — Silynxcom Ltd. (NYSE American: SYNX) (“Silynxcom” or the “Company”), a manufacturer and developer of ruggedized tactical communication headset devices as well as other communication accessories, reported its consolidated financial results as of and for the six months ended June 30, 2024.

    Key Financial Highlights for the First Half of 2024:

    • Revenues – for the six months ended June 30, 2024 were $5,356 thousand, an increase of 73% from the equivalent period in 2023.
    • Gross profit – for the six months ended June 30, 2024 was $2,650 thousand, an increase of 121% from the equivalent period in 2023.
    • Gross margin for the six months ended June 30, 2024 was 49.47%, compared to 38.59% in the equivalent period in 2023.
    • Cash and Cash Equivalents – On January 17, 2024, Silynxcom successfully completed its initial public offering (the “IPO”), raising $5 million in gross proceeds by issuing 1.25 million ordinary shares, adding to a cash and cash equivalents and marketable securities balance of $3,659 thousand as of June 30, 2024, up from $568 thousand as of December 31, 2023, demonstrating strong liquidity to support ongoing investments and operations.
    • Operating profit – Operating profit was $267 thousand for the six months ended June 30, 2024, compared to an operating loss of $2,328 thousand for the equivalent period in 2023, reflecting a decrease in share-based compensation expenses. Non-IFRS operating profit amounted to $695 thousand for the six months ended June 30, 2024, representing an increase of more than 46% compared to $476 thousand for the equivalent period in 2023. A reconciliation between operating profit (loss) and non-IFRS operating profit (loss) is provided in Appendix A of this press release.
    • Net loss – Net loss was $696 thousand for the six months ended June 30, 2024, including $879 thousand in listing expenses, compared to a net loss of $2,326 thousand for the equivalent period in 2023. Non-IFRS net income for the six months ended June 30, 2024 totaled $611 thousand, representing an increase of more than 27% compared to $478 thousand for the equivalent period in 2023. A reconciliation between net income (loss) and non-IFRS net income is provided in Appendix A of this press release.

    “The first half of 2024 was a period of business expansion, growth and strategic investment for Silynxcom, as highlighted by our public listing on the NYSE American following a successful IPO in January 2024,” said Nir Klein, Chief Executive Officer of Silynxcom. “Our revenue increased during the first half of 2024 and we became cashflow positive, which we believe underscores our successful market expansion and enhanced financial stability.”

    “In 2023, we laid the foundation for new and advanced products and increased compatibility for leading systems in our target markets. In addition, we forged new relationships with key players in the global defense and law enforcement sectors, which have already led to purchase orders in 2024,” added Mr. Klein.

    Recent Corporate Highlights:

    • In April 2024, the Company announced the strengthening of its collaboration with 3M PELTOR to deliver next generation headset solutions.
    • The Company expanded sales in the Asia Pacific region.
    • Since October 2023, the Company has secured orders amounting to $4.85 million from the Israel Defense Forces and Israeli police forces.
    • In February 2024, the Company announced a third order from a leading global defense firm, bringing its total orders from this client to over $4.5 million.
    • The Company received its first order for the newly designed in-ear headset with an encrypted security system intended for use by law enforcement.
    • In March 2024, the Company launched a new system for law enforcement, compatible with commonly used terrestrial trunked radio and P25 systems.

    Use of Non-IFRS Financial Results

    In addition to disclosing financial results calculated in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board, this press release contains certain financial measures that are not prepared under IFRS.  These measures may be different from non-IFRS financial measures used by other companies. The Company defines non-IFRS operating profit (loss) as operating profit (loss) excluding the effect of share-based compensation expenses. The Company defines non-IFRS net income as net income (loss) excluding the effect of share-based compensation expenses and listing expenses. The Company’s management believes the non-IFRS financial information provided in this press release is useful to investors’ understanding and assessment of the Company’s ongoing operations because it provides management and investors with measurements of the Company’s operations and profitability excluding the impact of share-based compensation, an item that the Company does not consider to be indicative of its core operating performance, and listing expenses that are non-recurring and expensed in connection with the Company’s IPO. Management also uses both IFRS and non-IFRS information in evaluating and operating business internally and as such deemed it important to provide all this information to investors. The non-IFRS financial measures disclosed by the Company should not be considered in isolation or as a substitute for, or superior to, financial measures calculated in accordance with IFRS and the financial results calculated in accordance with IFRS and reconciliations to those financial statements should be carefully evaluated. Reconciliations between IFRS measures and non-IFRS measures are provided in Appendix A to this press release.

    About Silynxcom Ltd.

    For over a decade, the Company been developing, manufacturing, marketing, and selling ruggedized tactical communication headset devices as well as other communication accessories, all of which have been field-tested and combat-proven. The Company’s in-ear headset devices, or In-Ear Headsets, are used in combat, the battlefield, riot control, demonstrations and weapons training courses. The In-Ear Headsets seamlessly integrate with third party manufacturers of professional-grade ruggedized radios that are used by soldiers in combat or by police officers. The Company’s In-Ear Headsets also fit tightly into the protective gear to enable users to speak and hear clearly and precisely while they are protected from the hazardous sounds of combat, riots or dangerous situations. The sleek, lightweight, In-Ear Headsets include active sound protection to eliminate unsafe sounds, while maintaining ambient environmental awareness, giving their customers 360° situational awareness. The Company works closely with its customers and seek to improve the functionality and quality of the Company’s products based on actual feedback from soldiers and police officers “in the field.” The Company’s headset devices are compatible and easily integrate with various communication equipment devices currently being used by tens of thousands of military and law enforcement personnel in leading military and law enforcement units around the globe. The Company sells its In-Ear Headsets and communication accessories directly to military forces, police and other law enforcement units around the world. The Company also deals with specialized networks of local distributors in each locale in which it operates and has developed key strategic partnerships with radio equipment manufacturers.

    Forward Looking Statements

    This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws and are subject to substantial risks and uncertainties. Forward-looking statements contained in this press release may be identified by the use of words such as “anticipate,” “believe,” “contemplate,” “could,” “estimate,” “expect,” “intend,” “seek,” “may,” “might,” “plan,” “potential,” “predict,” “project,” “target,” “aim,” “should,” “will” “would,” or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. For example, the Company uses forward-looking statements when it discusses its belief that its revenue increase and cashflow positive status underscores the Company’s successful market expansion and enhanced financial stability. Forward-looking statements are based on Silynxcom’s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. For a more detailed description of the risks and uncertainties affecting the Company, reference is made to the Company’s reports filed from time to time with the Securities and Exchange Commission (“SEC”), including, but not limited to, the risks detailed in the Company’s annual report for the year ended December 31, 2023, filed with the SEC on April 30, 2024. Forward-looking statements contained in this announcement are made as of the date of this press release and Silynxcom undertakes no duty to update such information except as required under applicable law.

    Investor Relations Contact:
    Silynxcom Ltd.
    ir@silynxcom.com

     
    Silynxcom Ltd.

    Consolidated Statements of Financial Position
    U.S dollars in thousands
     
            June 30, December 31,  
            2024     2023  
    Current assets                    
    Cash and cash equivalents         668       568  
    Marketable securities         2,991       –  
    Deposits with banking corporations         39       29  
    Trade receivables, net         2,060       2,452  
    Other current assets         347       430  
    Inventory         2,577       2,482  
              8,682       5,961  
                         
    Non-current assets                    
    Property, plant & equipment, net         114       94  
    Long-term deposits         66       16  
    Right of use assets         64       95  
              244       205  
                         
    Total assets         8,926       6,166  
                     
    Current liabilities                
    Current maturities of loans from banking corporations         60       73  
    Lease liabilities – current         49       60  
    Loans from related parties         11       43  
    Trade payable         947       1,315  
    Warrants at fair value         –       165  
    SAFE         –       409  
    Other accounts payables         1,053       1,791  
              2,120       3,856  
                         
    Non-current liabilities                    
    Loans from banking corporations         –       26  
    Commitment to issue shares         148       –  
    Lease liabilities         13       33  
    Liabilities for employee benefits, net         29       30  
              190       89  
                         
    Shareholders’ equity                    
    Share capital         –       52  
    Premium and other capital reserves         26,043       20,900  
    Capital reserve for transactions with controlling shareholders         1,542       1,542  
    Accumulated loss         (20,969 )     (20,273 )
              6,616       2,221  
                         
    Total liabilities and shareholders’ equity         8,926       6,166  
                         
     
    Silynxcom Ltd.

    Consolidated Statements of Comprehensive Loss
    U.S dollars in thousands
     
          For the six month period
    ended June 30    		  
          2024     2023  
                   
    Revenue     5,356     3,096  
                   
    Cost of revenue     2,706     1,901  
                   
    Gross profit     2,650     1,195  
                   
    Research and development expenses     259     569  
                   
    Selling and marketing expenses     699     1,989  
                   
    General and administrative expenses     1,425     965  
                   
    Operating profit (loss)     267     (2,328 ) 
                   
    Listing expenses     879     –  
                   
    Finance expenses     232     35  
                   
    Finance income     148     37  
                   
    Income (loss) before income tax     (696 )    (2,326 ) 
                   
    Income tax expenses     –     –  
                   
    Net income (loss)     (696 )    (2,326 )
                   
     
    Silynxcom Ltd.

    Consolidated Statements of Cash Flows
    U.S dollars in thousands
     
            For the six month
    period ended
    June 30    		  
            2024     2023  
    Cash flows from operating activities                    
    Net income (loss)         (696 )      (2,326 )
                         
    Adjustments Required to Present Cash Flows from Operating Activities                    
                         
    Income and expenses not involving cash flows                    
                         
    Depreciation and amortization         54       67  
    Increase (decrease) in liability for employee benefits, net         (1 )     (1 ) 
    Revaluation of derivatives measured at fair value through profit and loss         –       (31 ) 
    Other finance expenses                 11  
    20
    Share-based compensation         428       2,804  
              501       2,850  
    Changes in asset and liability line items:                    
                         
    Decrease (increase) in trade receivable         392       1,993  
    Decrease (increase) in other current assets         114       (227 ) 
    Decrease (increase) in inventory         (95 )     (231 )
    Increase (decrease) in trade payables         (368 )     (1,021 ) 
    Increase (decrease) in other accounts payables         (488 )     (635 ) 
              (445 )     (121 ) 
                         
    Net cash provided by (used in) operating activities         (640 )      403  
                         
    Cash flows from investing activities                    
    Increase in long-term bank deposit         (10 )     (11 )
    Increase in long-term deposit others         (50 )     –  
    Purchase of marketable securities, net         (2,961 )     –  
    Purchase of property, plant and equipment         (42 )     (4 )
                         
    Net cash used in investing activities         (3,063 )     (15 )
                         
    Cash flows from financing activities                    
    Repayment of loans from related parties         (32 )      (17 ) 
    Repayment of warrants         (165 )      –  
    Repayment of loans from banking corporations         (39 )      (40 ) 
    Repayment to former share holders         (250 )      –  
    Issuance of Ordinary Shares in the IPO, net         4,324       –  
    Repayment of lease liabilities         (33 )      (44 ) 
                         
    Net cash provided by (used in) financing activities         3,805       (101 ) 
    Exchange rate differentials for cash and cash equivalent balances         (2 )      (5 ) 
                         
    Increase (decrease) in cash and cash equivalents         100       282  
                         
    Balance of cash and cash equivalents at beginning of year         568       69  
                         
    Balance of cash and cash equivalents as at end of year         668       351  
                         
     
    Appendix A

    RECONCILIATION OF IFRS TO NON-IFRS MEASURES
    (Unaudited) U.S. dollars in thousands
     
              For the six month
    period ended June 30
    		    
              2024     2023    
                         
    IFRS Operating profit (loss)           267       (2,328 )   
                             
    Share-based compensation in Selling and marketing expenses           142       1,623    
                             
    Share-based compensation in General and administrative expenses           138       546    
                             
    Share-based compensation in Research and development expenses           84       355    
                             
    Share-based compensation in Cost of revenue           64       280    
                             
    Non-IFRS Operating profit           695       476    
                             
                             
                             
    IFRS Net income (loss)           (696 )      (2,326 )   
                             
    Listing expenses           879       –    
                             
    Share-based compensation expenses           428       2,804    
                             
    Non-IFRS Net income           611       478    

    The MIL Network –

  • MIL-OSI USA: Law Enforcement Endorses Casey’s Stop Fentanyl at the Border Act

    US Senate News:

    Source: United States Senator for Pennsylvania Bob Casey
    The Stop Fentanyl at the Border Act will increase staffing and technology to detect and stop the flow of fentanyl coming across the border
    Bill has now been endorsed by the Fraternal Order of Police, National Association of Police Organizations, and other law enforcement organizations
    Washington, D.C. – Today, U.S. Senator Bob Casey (D-PA) announced growing support from law enforcement organizations for his Stop Fentanyl at the Border Act, which would reduce the flow of fentanyl by providing much-needed resources to secure the southwest border. The bill, which would increase staffing capacity and technology to detect illicit drugs and other contraband being smuggled through ports of entry along the border, has now been endorsed by four major police organizations: the Fraternal Order of Police, the National Association of Police Organizations, Major County Sheriffs of America, and the National Narcotic Officers’ Associations’ Coalition. The bill is also now backed by the National Treasury Employees Union, which represents U.S. Customs and Border Protection (CBP) employees.
    “Pennsylvania law enforcement can’t tackle the fentanyl crisis when so much of the fentanyl devastating our families and communities is being smuggled across our southwest border,” said Senator Casey. “This bill will help provide the hardworking law enforcement officers at the border with the resources, technology, and support they need to stop the flow of fentanyl into Pennsylvania communities. I’m proud to have law enforcement support and I won’t stop until we’ve passed this commonsense legislation.”   
    “Our law enforcement members are the first line of defense against the scourge of fentanyl that comes across the American border each day,” said Patrick Yoes, National President of the Fraternal Order of Police. “Now more than ever, our country must invest in methods to stem the flow of fentanyl into our communities. This legislation will support our members by giving them the tools they need to support border operations and drug interdiction efforts.”
    “Fentanyl is now the drug most associated with overdoses in the United States,” said Bill Johnson, the Executive Director of the National Association of Police Organizations. “This deadly poison is being mixed with other illicit drugs, hidden in counterfeit drugs, and being peddled at alarmingly high rates to our nation’s youth. The Stop Fentanyl at the Border Act provides much needed support, resources, and funding to the southwest border to help federal, state, and local law enforcement fight the trafficking of fentanyl and other illicit drugs into the country. Law enforcement at all levels of government have long been asking for these resources to support their efforts to prevent and detect fentanyl coming into this country and our communities. NAPO stands with Senator Casey in support of this important bill.”
    The Stop Fentanyl at the Border Act would enable CBP to hire more officers and border patrol agents to increase capacity to stop illicit smuggling over the border. The bill also provides funding to purchase Non-Intrusive Inspection systems, which scan vehicles and cargo at the border to provide detailed images of their interiors, which leads to the detection of fentanyl and other illicit drugs. Additionally, the bill would create an inspection program to increase seizure of firearms, which Mexican cartels frequently purchase in the United States and smuggle into Mexico to support their fentanyl production operations and other violent criminal enterprises.   
    Senator Casey has been a leader in the Senate on efforts to prevent the spread of fentanyl into the United States. He has traveled around Pennsylvania meeting with law enforcement and families of victims of fentanyl overdoses as he pushed for passage of the FEND Off Fentanyl Act. In July, Senator Casey applauded the Senate passage of the Preventing the Financing of Illegal Synthetic Drugs Act, a bill that will direct the U.S. Government Accountability Office (GAO) to investigate how transnational criminal organizations finance synthetic drug trafficking and help the federal government target them more effectively. In August, Casey led his colleagues in introducing the bipartisan Fighting Illicit Goods, Helping Trustworthy Importers, and Netting Gains (FIGHTING) for America Act to help CBP prevent fentanyl from entering the country undetected. In September, Casey introduced the Interdiction of Fentanyl at Federal Prisons Act, which would protect prison officers, staff, and inmates from fentanyl and other illicit substances entering the Federal Prison System through inmate mail.
    Read more about the Stop Fentanyl at the Border Act here.

    MIL OSI USA News –

  • MIL-OSI Russia: Government meeting (2024, No. 29)

    MILES AXLE Translation. Region: Russian Federation –

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

    1. On the draft federal law “On Amendments to the Federal Law “On the State Defense Order” (in terms of creating legal grounds for the Federal Treasury to exercise its powers for automated monitoring of prices for products under the state defense order in the state integrated information system for managing public finances “Electronic Budget”)

    The bill is aimed at identifying risks affecting the cost of products supplied under state defense orders, in the order of a preventive risk-oriented approach for the response of state customers of state defense orders, implementing organizations, and federal executive bodies to such facts.

    2. On the draft federal law “On Amendments to Article 32 of the Federal Law “On Special Economic Zones in the Russian Federation” and Article 22 of the Land Code of the Russian Federation”

    The bill proposes to lift restrictions on residents of special economic zones attracting additional borrowed financing by transferring lease rights as collateral to credit institutions.

    3. On amendments to the distribution of subsidies to the budgets of constituent entities of the Russian Federation for the creation of modular non-capital accommodation facilities during the implementation of investment projects for 2024, approved by Appendix 31 (Table 140) to the Federal Law “On the Federal Budget for 2024 and for the Planning Period of 2025 and 2026”

    The draft order is aimed at approving the subject-by-subject distribution of funds within the framework of the implementation of the state program of the Russian Federation “Tourism Development”.

    4. On the allocation of budgetary appropriations to the Ministry of Industry and Trade of Russia in 2024 from the reserve fund of the Government of the Russian Federation for the purpose of providing a subsidy from the federal budget to the autonomous non-profit organization “Center for Support of Engineering and Innovation” for the provision of grants to Russian organizations for conducting research and development work

    The draft order is aimed at supporting innovative projects for the development and creation of production in priority industries, including in the areas of transport and oil and gas engineering.

    5. On the draft federal law “On Amendments to the Federal Law “On the State Corporation for Space Activities “Roscosmos””

    The bill is aimed at improving the regulation of legal relations related to the management of state property and clarifying certain powers of the state corporation.

    6. On the allocation of budgetary allocations to Rosavtodor in 2024 from the reserve fund of the Government of the Russian Federation to ensure the accelerated implementation of measures for the construction and reconstruction of highways

    After the completion of construction of a number of sections of the federal highway M-7 “Volga”, they will become part of the M-12 “Vostok” highway as part of its extension from Kazan to Yekaterinburg.

    7. On the allocation of budgetary appropriations from the reserve fund of the Government of the Russian Federation to the Russian Emergencies Ministry in 2024 for the purpose of providing another interbudgetary transfer to the budget of the Kursk region for the financial support of certain measures to eliminate the consequences of the attack of the Ukrainian armed forces on the territory of the Kursk region, meaning the provision of financial assistance to affected citizens in connection with the complete loss of their essential property

    Moscow, October 2, 2024

    The content of the press releases of the Department of Press Service and References is a presentation of materials submitted by federal executive bodies for discussion at a meeting of the Government of the Russian Federation.

    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.

    Please note; This information is raw content directly from the information source. It is accurate to what the source is stating and does not reflect the position of MIL-OSI or its clients.

    http://government.ru/meetings/52881/

    EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

    MIL OSI Russia News –

  • MIL-OSI USA: CFTC Charges Former CEO of Carbon Credit Project Developer with Fraud Involving Voluntary Carbon Credits

    Source: US Commodity Futures Trading Commission

    WASHINGTON, D.C. — The Commodity Futures Trading Commission today filed a complaint in the U.S. District Court for the Southern District of New York against Kenneth Newcombe of California, the former chief executive officer and majority shareholder of a Washington, D.C.-based carbon credit project developer, charging fraud and false, misleading, or inaccurate reports relating to voluntary carbon credits. The CFTC also issued orders filing and settling charges against Washington, D.C.-based CQC Impact Investors LLC (CQC) and against Jason Steele, CQC’s former chief operating officer. These are the first CFTC actions for fraud in the voluntary carbon credit market.

    “Last month, I highlighted the CFTC’s final guidance for designated contract markets that list derivatives on voluntary carbon credits as the underlying commodity as a critical step in support of the development of high-integrity voluntary carbon markets,” said Chairman Rostin Behnam. “Today’s actions show strong enforcement is another critical step in ensuring the integrity of these markets.”

    “With the first enforcement actions charging fraud in connection with the issuances and sales of voluntary carbon credits, the CFTC demonstrates its commitment to vigorously fight fraud in its markets, whether long-established or new and evolving, such as the carbon credit markets,” said Director of Enforcement Ian McGinley. “Today’s action also exemplifies the value the Division of Enforcement and the CFTC place in substantial cooperation in the division’s investigations and appropriate remediation, as reflected here in a reduction in penalty for CQC.”

    Newcombe Complaint

    The complaint against Newcombe alleges from at least 2019 to at least in or about Dec. 2023, Newcombe, while CEO and majority shareholder of a carbon credit project developer, engaged in a fraudulent scheme that involved reporting false and misleading information to at least one carbon credit registry and third-party reviewers, among others. The complaint alleges Newcombe did so in order to present a misleading impression of the quality of the project developer’s emissions-reduction projects to obtain carbon credits far beyond what the company was entitled to receive, and which the carbon credit project developer could and did sell to others.

    The CFTC seeks civil monetary penalties, disgorgement of ill-gotten gains, restitution, permanent trading and registrations bans, and a permanent injunction against further violations of the Commodity Exchange Act (CEA), as charged.

    CQC Order

    The CQC order finds from in or after 2019 to at least Dec. 2023, CQC engaged in a deceptive scheme relating to projects it developed purportedly intended to reduce carbon emissions, such as by installing more efficient cookstoves or LED light bulbs in sub-Saharan Africa, Asia, and Central America. Based on information CQC reported to at least one carbon credit registry and third-party reviewers, among others, CQC sought and received issuances of carbon credits that CQC could and did sell to other participants in the voluntary carbon credit market. As found in the order, CQC fraudulently reported false, misleading, and inaccurate information in connection with the verification and issuance of carbon credits, which resulted in the issuances of millions more carbon offset credits than CQC was entitled to receive. According to the order, CQC’s fraudulent conduct involved certain of the company’s former executives, supervisors, and operations and compliance personnel.

    The order requires CQC to pay a $1 million civil monetary penalty, cease and desist from violating the applicable provisions of the CEA and CFTC regulations, and comply with certain conditions and undertakings, including the cancelation or retirement of voluntary carbon credits sufficient to address the violative conduct. CQC admitted the findings of the order and acknowledged that its conduct violated the CEA and CFTC regulations.

    The order recognizes CQC’s substantial cooperation with the Division of Enforcement and CQC’s representations of its remediation, such as terminating, replacing or separating from individuals responsible for the violative conduct, and notes CQC’s substantial cooperation and appropriate remediation is further reflected in the form of a reduced civil monetary penalty.

    Jason Steele Order

    The Steele order finds, while COO of the project developer, he intentionally participated in the project developer’s providing false and misleading information to at least one carbon credit registry and third-party reviewers, among others, for the purpose of presenting a misleading impression of the quality of the cookstove projects, wrongfully increasing the number of carbon credits a project would produce. Steele admitted the findings of the order and acknowledged that his conduct violated the CEA and CFTC regulations.

    The order recognizes Steele entered into a formal cooperation agreement with the Division of Enforcement. 

    Parallel Criminal and Civil Actions

    Today, in separate actions, the U.S. Attorney’s Office for the Southern District of New York and the Securities and Exchange Commission announced filing parallel matters for related conduct.

    The Division of Enforcement thanks and acknowledges the assistance of the U.S. Attorney’s Office for the Southern District of New York, the Federal Bureau of Investigation, and the SEC. 

    The Division of Enforcement also thanks the Division’s Environmental Fraud Task Force.

    The Division of Enforcement staff members responsible for this case are Meredith Borner, Nicole Buseman, Jonathan G. Coppola, Trevor Kokal, Gates S. Hurand, R. Stephen Painter, Jr., Lenel Hickson, Jr., and Manal M. Sultan.

    * * * * * * *

    Customers and other individuals can report suspicious activities or information, such as possible violations of commodity trading laws, to the Division of Enforcement via a toll-free hotline 866-FON-CFTC (866-366-2382), file a tip or complaint online, or contact the Whistleblower Office. Whistleblowers may be eligible to receive between 10 and 30 percent of the monetary sanctions collected paid from the CFTC Customer Protection Fund, which is financed through monetary sanctions paid to the CFTC by violators of the CEA.

    The CFTC also notes its June 20, 2023 Whistleblower Office Alert seeking tips related to carbon market misconduct.

    MIL OSI USA News –

  • MIL-OSI New Zealand: Speech: Why Kiwi businesses are the best in the world

    Source: New Zealand Labour Party

    For clarity – I mean all of you from the A List all the way to the C-List.

    I am a firm believer that government’s role is to work closely with business: help small ones to innovate, and ensure the settings are right so big ones can thrive.

    Governments should invest in research and development to improve access to technology; open opportunities for business on the world stage through trade; and ensure that our investment grows an economy that supports everyone who lives in our great little country to thrive.

    I have really enjoyed the past six months, getting out – mostly in Auckland – and sitting down with people across the business sector.

    Coming from a niche tax and insurance background, you have all been incredibly generous with your time and I am looking forward to continuing to build our relationships over the next two years of opposition.

    When businesses do well, New Zealand does well. Workers do well. New Zealanders do well. You employ people and innovate and create to make people’s lives better.

    Labour’s underlying philosophy on work is making sure there are enough jobs for people – you can’t do that without business.

    It’s about ensuring people feel secure in their jobs, are able to contribute to their workplace and help build good and successful businesses.

    Workers are an asset to any business and shouldn’t be seen as a cost.

    If you listened to National, you wouldn’t think that was Labour’s approach.

    I am utterly committed to sitting down with you and talking through what works for you and what doesn’t. Dispelling the myths. Understanding what has gone well in the past and what hasn’t.

    Something that does concern me is the number of Kiwis choosing to leave New Zealand, and the way the Government’s decisions are giving them an extra push.

    6,000 jobs gone in the public sector and counting. Manufacturing jobs disappearing before our eyes. 8,000 fewer people in construction. A freeze on hiring staff at our hospitals. Unemployment up to 4.6 percent, and projected to get to 5.5 percent.

    Even through COVID-19, we didn’t see unemployment like this. The forecasts were awful. But keeping people in work, and businesses afloat, was a priority for Labour and I’m really proud of that.

    New Zealanders are finding it tough anyway, you all know the statistics. But losing the household income along with the job, can be terrifying.

    It’s no wonder so many are looking to greener pastures.

    In July this year, a record was set for the number of net New Zealanders leaving. 55,800 Kiwis chose to move away, well exceeding the previous record from way back in 2012.

    My concern isn’t only that people are choosing to leave for a better life, it is also the skill loss which will have an effect on our ability to innovate, deliver and grow as a country.
    It is no surprise that the mood of the boardroom is optimistic, even though the economy is doing it tough.

    June 2024 marked the seventh consecutive quarter of stagnant or declining per capita economic activity. We are now very much at the bottom of the economic cycle. Things will get better.

    But not because of any action by this government, but from you.

    But they will not get better overnight. We know unemployment has some way to go, and there are many, many steps until interest rates are back to a balanced level.
    But our business community is resilient.

    Many of you have made it through the GFC, the Christchurch earthquakes, Cyclone Gabrielle and the Auckland floods, and collectively we made it through the COVID-19 pandemic.
    I know you all just want to get on with it, but also want a vision for what we aspire to be and where we want to get to.

    New Zealand faces substantial fiscal challenges over the short and longer-term. Addressing these challenges will require brave decisions that tackle the system we all work in.
    These are brave decisions that need to be enduring, and that is what Labour does best.

    Whether it’s, ensuring Kiwis could retire with dignity by the introduction of KiwiSaver and the SuperFund.

    Families could afford the basics and be incentivised to stay in work through Working for Families, or the safety nets introduced by Sir Michael Joseph Savage of state housing and welfare.

    And then the list of trade deals UK and EU Free Trade agreements to name a couple, Labour is the party that has always looked ahead to progress our country.

    Planning for the future will mean conversations about the appropriate level of government spending and debt.

    By 2060, 10% of our GDP will be spent on health care, and 7% on Superannuation.

    Returning to surplus is a moot point, if you are not also providing Kiwis with the healthcare they need.

    We, as a country, need a government with a positive vision and informed solutions.

    Every political party likes to talk about growth and productivity, but you need to back it up.

    Often, when thinking about productivity, we focus on cutting-edge tech. And we should. We are seeing the R&D tax credit making a meaningful contribution to research and development.

    But we also need back our smaller Kiwi businesses, if we are serious about tackling productivity.

    Many of our SMEs are not technologically enabled. They struggle to have time and the capital to make the changes they need.

    The Government, along with sector, should be doing more to help.

    The Treasury’s Chief Economist came out last week saying “productivity growth alone is not enough to alleviate fiscal pressures”.

    We also must realistically assess our economic situation. We are capital poor. We need more sustainable solutions than tinkering around the edges with new levies and revenue-gathering measures.

    It’s a conversation our party is having and one I hope many of you can feed into as part of our hui going forward.

    Unlike the three-year parliamentary cycle, I know that you have to plan for the future in a much more long-term way. Government’s should do better. I’ve spoken quite a few times about being better at bipartisanship on long-term investment, but we need both parties to come to the table on that!

    You will all know better than anyone when looking to the future that there is almost nothing more pressing than preparing for the consequences of climate change.

    Two years ago, on this stage, Nicola said that “we share your commitment to emission reduction”. But the governments actions speak differently by rolling back many of the measures Labour introduced to bring down our emissions and prepare for the future.

    Many of our free trade agreements have climate obligations, including the EU FTA which “contains ambitious outcomes on climate action and the Paris Agreement, including making these commitments enforceable in the FTA”.

    We can’t rely on export driven growth, if this government is risking our export potential.

    Climate action is what is required from a moral standpoint and matters for the health of our economy. I do not want our exporters being locked out of markets because of climate-sceptic policies.

    I started this speech talking about values. But I will end with a pledge.

    I won’t just stand up here and make political promises I don’t intend to work my ass off to keep.

    We may not always agree, but I will always take a meeting or a call and I will always listen.

    No reira, tena koutou, tena koutou, tena koutou katoa.

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    MIL OSI New Zealand News –

  • MIL-OSI USA: Cornyn, Colleagues’ Bill to Strengthen Cross-Border Trade, Guard Against Terrorism Signed Into Law

    US Senate News:

    Source: United States Senator for Texas John Cornyn
    WASHINGTON – U.S. Senators John Cornyn (R-TX), Tom Carper (D-DE), James Lankford (R-OK), and Maggie Hassan (D-NH) released the following statements after their legislation to create a pilot program to strengthen the Customs Trade Partnership Against Terrorism (CTPAT) program was signed into law:
    “In order for America to remain competitive in global markets, we must ensure our ports are open, efficient, and secure,” said Sen. Cornyn. “This law will allow additional trusted trading partners to expedite shipments important to Texas’ economy while protecting against illegal goods and national security threats.”
    “I am proud that the bipartisan Customs Trade Partnership Against Terrorism (CTPAT) Pilot Program Act has been signed into law,” said Sen. Carper. “This commonsense bill will improve the reliability and efficiency of our supply chains in expediting the customs clearance process for trusted merchants. Now that it’s become law, the CTPAT Pilot Program will help reduce congestion at ports of entry and strengthen our national security.”
    “America’s supply chain security is essential to keeping food on the table and businesses up and running,” said Sen. Lankford. “This bill will create a new pilot program to strengthen standards for border security while streamlining our trade with other nations.”
    “I am glad that President Biden has signed this commonsense, bipartisan bill into law to help strengthen our supply chains and keep our country safe, secure, and free,” said Sen. Hassan. “This bill will help our economy continue to thrive and stay competitive in today’s ever changing world.” 
    The legislation was introduced in the House by Representatives Morgan Luttrell (TX-08), Elissa Slotkin (MI-07), Mariannette Miller-Meeks (IA-01), and Robert Menendez (NJ-08).
    Background:
    CTPAT was created as a part of the SAFE Port Act of 2006 to support secure cross-border trade through a fast-track, customs clearance process for trusted merchants who voluntarily submit themselves to enhanced security screening measures. The legislation would create a pilot program that would allow up to 20 trusted non-asset and asset based, third-party logistic providers (3PLs) to become CTPAT certified. The carrier companies would work with Customs and Border Protection to become CTPAT certified by meeting additional security requirements and participating in inspections throughout the cargo transit process.

    MIL OSI USA News –

  • MIL-OSI USA: Congressman Cohen Expresses Concerns Over MATA’s Financial Challenges and Urges Federal Action

    Source: United States House of Representatives – Congressman Steve Cohen (TN-09)

    Cites MATA’s $60 million operating deficit despite record federal capital investments

    MEMPHIS – Congressman Steve Cohen, a senior member of the Transportation and Infrastructure Committee and its Subcommittee on Highways and Transit, today wrote to Department of Transportation Secretary Pete Buttigieg, the Deputy Secretary of Transportation, Polly Trottenberg, and the Acting Administrator of the Federal Transit Administration, Veronica Vanterpool, expressing his deep concerns regarding the Memphis Area Transit Authority’s (MATA) severe financial challenges. The Congressman highlighted the urgent need for federal assistance to help stabilize MATA and ensure that it continues to provide reliable transportation services to the residents of Memphis.

    Congressman Cohen cited MATA’s $60 million deficit, massive layoffs, route reductions and suspension of the trolley service, despite his success in securing historic levels of investment in recent years in major capital upgrades, including electrification of buses and a new bus rapid transit service.

    The letter reads in part:

    “The operational and fiscal crisis MATA faces, including a $60 million deficit in the prior fiscal year and persistent deficits over several years, paints a troubling picture of an underfunded and overstretched transit system. This funding gap has already led to dire consequences: layoffs of more than 200 employees and a reduction in fixed routes. These cuts will disproportionately impact low-income and vulnerable populations who rely on MATA as their primary means of transportation. Without immediate intervention, further service reductions could devastate the mobility and economic security of many in the Memphis community…

    “I am eager to explore how the Department of Transportation (DOT) and the Federal Transit Administration (FTA) can assist MATA and other similarly challenged transit systems in cities like Memphis. I would appreciate any recommendations on how we can strengthen MATA’s funding sources through existing federal programs or new initiatives. Given your extensive experience as the former Commissioner of the New York City Department of Transportation, Deputy Secretary Trottenberg, I would also greatly value your insights on innovative solutions and best practices that could help improve the sustainability and efficiency of MATA’s operations.

    “It is particularly disheartening to learn of MATA’s financial struggles after helping secure the most significant federal investment in its nearly 50-year history. This includes $54 million for a new operations and maintenance facility, $22 million for clean electric buses and charging stations, and nearly $64 million for the Memphis Innovation Corridor Bus Rapid Transit project.”

    See the entire letter here.

    # # #

     

    MIL OSI USA News –

  • MIL-OSI Russia: Australia: Staff Concluding Statement of the 2024 Article IV Mission

    Source: IMF – News in Russian

    October 2, 2024

    A Concluding Statement describes the preliminary findings of IMF staff at the end of an official staff visit (or ‘mission’), in most cases to a member country. Missions are undertaken as part of regular (usually annual) consultations under Article IV of the IMF’s Articles of Agreement, in the context of a request to use IMF resources (borrow from the IMF), as part of discussions of staff monitored programs, or as part of other staff monitoring of economic developments.

    The authorities have consented to the publication of this statement. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and decision.

    • Growth has slowed; while inflation is retreating from its peak, it remains elevated as demand-supply imbalances persist particularly in sectors like rents, new dwellings and insurance. The mission projects a modest economic recovery next year, pushing growth from 1.2 percent for 2024 to 2.1 percent for 2025, bolstered by real income growth and resilient labor markets. The uncertain global environment and geoeconomic fragmentation pose significant external risks.
    • Near-term policies should continue to focus on reducing inflation while nurturing economic growth. The Reserve Bank of Australia’s continued restrictive monetary policy stance aimed at combating persistent inflation is appropriate. Should disinflation stall, policies may need to be further tightened while preserving targeted support to vulnerable households amid rising living costs. Financial sector policies should prioritize preserving stability, while tackling localized vulnerabilities arising from tightened financial conditions. Addressing the housing affordability challenges requires a holistic approach to tackle the continued supply shortfall.
    • Australia’s robust economic institutions and policy frameworks can be further enhanced to underpin stability and foster growth in the long term. Structural policies should focus on enhancing resilience, revitalizing productivity growth through enhancing competition and innovation — including leveraging AI technology responsibly — and strategically navigating the climate transition.

    Washington, DC:

    I. CONTEXT AND RECENT DEVELOPMENTS

    1. Australia’s resilient economy faces cyclical challenges. Recent decades of strong growth are attributed to effective policies, strong institutions, flexible prices, strong regional trade links, and robust population growth. Post-pandemic stabilization efforts have included a balanced set of macro policy measures to manage demand and bring inflation back to target while preserving the gains in the labor market. Progress in reducing price pressures and bringing inflation back to target has been slower than expected. In this context, significant policy challenges remain in rebalancing the economy while navigating cyclical headwinds.
    2. Economic growth has continued to decelerate. Under tightened policies, growth slowed to 1.0 percent (y/y) in the second quarter of 2024, down from 1.9 percent (y/y) a year ago. Per capita private consumption was down 1.9 percent (y/y) in 2024Q2, as real disposable income per capita declined due to high inflation, elevated interest rates, and tax payments growing faster than incomes prior to recent income tax cuts. Younger Australians, who are more likely to rent or hold mortgages, have seen a greater impact on spending. Despite recent resilience, private business investment has started easing, growing at just 1.6 percent (y/y). Economic activity has been supported by public demand and large state infrastructure projects. The labor market has eased somewhat but remains relatively resilient, with unemployment at 4.2 percent in August 2024, and the vacancies-to-unemployment ratio still above pre-pandemic levels. The current account fell into deficit in early 2024, driven primarily by the normalization of commodity prices.
    3. Inflation has continued to ease from post-pandemic highs, but price pressures remain elevated. Restrictive monetary policy and an easing in supply pressures led to headline inflation falling to 3.8 percent (y/y) in the second quarter of 2024 from a peak of 7.8 percent (y/y) in late 2022. Headline inflation—as measured by the monthly CPI indicator—declined to below 3 percent in August due in part to sizeable temporary electricity subsidies. However, underlying price pressures remain elevated, most notably in non-tradable sectors like rents, new dwellings, and insurance, reflecting ongoing demand-supply imbalances. The mission welcomes the second consecutive Commonwealth Government budget surplus in FY2023/24. This was achieved by saving revenue windfalls from a resilient labor market and higher commodity prices, and identifying expenditure reductions or reprioritizations, while implementing cost-of-living relief measures. While acute demand and supply imbalances in the housing market have begun to ease, national house prices have surpassed pandemic-era peaks and the momentum persists, with rents also rising significantly.

    II. OUTLOOK AND RISKS

    1. The economy is projected to recover gradually. Growth is expected to start picking up in the second half of the year, reaching 1.2 percent for 2024 and 2.1 percent for 2025. Real wage growth is expected to boost private consumption, while public demand is expected to remain solid. Meanwhile, it remains too early to assess to what extent the recent income tax cuts would be saved or spent by households. Starting in 2025, private demand is also expected to benefit from gradual monetary policy easing and a rebound in dwelling construction after the resolution of bottlenecks. However, growth will remain below its potential rate until 2026, when it is forecast to converge to 2.3 percent. Labor market conditions are anticipated to soften gradually, with a modest rise in unemployment to about 4.5 percent. Trimmed mean inflation is expected to sustainably return to the RBA’s target range at end-2025, with underlying price pressures easing only slowly. Upside risks to inflation include a slower than forecast rebalancing in labor market demand and supply, potential larger fiscal impulses, demand impact of recent house price increases, and higher tradable prices due to rising geoeconomic fragmentation.
    2. With large uncertainty surrounding the macroeconomic baseline, the balance of risks is tilted to the downside:
    • External risks: The uncertain external environment, including weakness in major trading partners, poses risks to Australia’s growth. Geoeconomic fragmentation, which could potentially reconfigure global trade, poses risks to external demand, especially given Australia’s sizeable commodity exports and diverse trading partners. Rising shipping costs and volatile energy and food costs stemming from global geopolitical tensions could complicate the fight against inflation. At the same time, Australia’s pivotal role in the Pacific in providing aid and remittances, enhances regional economic stability and development. Additionally, Australia’s economy continues to benefit from positive regional interactions, such as labor migration that addresses domestic capacity constraints and skills shortages.
    • Domestic risks: The disinflation process may stall due to persistent services inflation, a stronger-than-expected fiscal impulse, or spillovers from global trade and supply chain disruptions; this may in turn raise prospects of higher-for-even longer interest rates, with implications for consumption and investment. Conversely, growth may be weaker than forecast, or unemployment may rise faster than projected (for example, if the current labor market tightness proves to be localized), potentially requiring the Reserve Bank to lower interest rates sooner.

    III. NEAR-TERM POLICIES TO BRING DOWN INFLATION WHILE NURTURING GROWTH AND PRESERVING FINANICAL STABILITY

    1. Near-term policies should focus on managing the final phase of returning inflation to target while nurturing growth. The baseline policy mix should be orchestrated carefully to achieve these objectives and ensure price and financial stability. The current restrictive monetary policy stance is essential to address risks of prolonged inflation. Fiscal policy should support disinflation as the economy continues to grapple with supply capacity constraints. Additionally, macroprudential policies should maintain a stringent stance to mitigate the risk of excessive vulnerabilities in household balance sheets, particularly in the context of rising house prices. Should disinflation stall, monetary policy may need to be further tightened, supported by tighter fiscal policy while nurturing growth, and preserving targeted support to vulnerable households amid rising living costs. This contingent policy mix should ensure monetary and fiscal authorities complement each other to avoid overburdening any single policy instrument. In the face of external shocks, Australia’s commitment to a flexible exchange rate, will allow monetary policy to focus on domestic policy objectives.
    2. In this context, the RBA’s decision to maintain its restrictive policy stance in the near-term is appropriate. The still persistent inflation and emerging upside risks emphasize the importance of a tight monetary stance until the inflation outlook sustainably aligns with the target range. This stance is supported by the strong transmission of monetary policy through the Australian housing sector, largely due to a high proportion of variable-rate mortgages, and a possibly slow yet important transmission via non-mining business investment. While inflation expectations have remained anchored, the RBA should continue to build on its recent efforts and explore ways to further strengthen its communications capabilities and effectively guide the general public’s and the market’s understanding of its data dependent decision-making process and their expectations regarding policy shifts in an uncertain global policy environment.
    3. Should disinflation stall, a tighter fiscal stance would be warranted, while better targeting of transfers could more efficiently support vulnerable households. The FY2024/25 Commonwealth budget is projected to deliver a positive fiscal impulse based on the mission’s estimates. A preannounced personal income tax (PIT) cut and new expenditure items including broad-based cost-of-living support, are expected to contribute to moving the budget to a deficit. The mission’s analysis shows that while the cost-of-living support lowers the price level on a temporary basis, it may inject some additional stimulus into the broader economy. The permanent PIT cut increase households’ disposable income, but it remains too early to assess the extent to which they will be saved or spent and therefore the extent and timing of any impulse to demand. State and Territory budgets have proven more expansionary than expected in the near-term, incorporating further cost-of-living support and infrastructure spending. Should disinflation stall, expenditure rationalization at all levels of government could help lower aggregate demand and support a faster return of inflation to target. In particular, infrastructure spending could be carefully prioritized to avoid aggravating construction capacity constraints, by focusing on boosting productivity and facilitating the green transition. In addition, transfers should be made targeted wherever possible.
    4. Financial sector policies should prioritize maintaining stability, while carefully addressing localized vulnerabilities arising from tightened financial conditions. Banks are in a strong position, showcasing high capital levels, solid liquidity, and healthy profits, while also demonstrating resilience in recent stress tests conducted by the Australian Prudential Regulation Authority (APRA). While most households and businesses continue to be resilient, financial pressures are evident in vulnerabilities in low-income households and small-medium enterprises, and challenges to firms’ profitability under tight financial conditions. More generally, concerns about hidden leverage or vulnerabilities, combined with new and emerging global risks, could resurface. Thus, the mission welcomes APRA’s plan for the first system stress test to better understand interconnectedness across the financial system, providing a platform to quantify, assess and respond to identified risks. The mission team also welcomes APRA’s close monitoring of lending standards and regular review of macroprudential policy settings and would reiterate its recommendation that the authorities consider preemptively expanding their toolkit to include additional borrower-based measures, such as Debt-to-Income and Loan-to-Value Ratio, to manage household indebtedness and ensure financial stability amidst the housing market pressures. While financial supervisory and regulatory reforms have been undertaken to enhance resilience, data gaps on Non-Bank Financial Institutions pose challenges to effective risk oversight, including its exposure to commercial real estate (CRE) sector.
    5. A holistic policy package is needed to address housing affordability issues. Australia faces a significant housing supply shortfall, exacerbated by structural challenges such as restrictive planning and zoning regulations, high land costs, infrastructure deficits, and residential dwelling investment around decade lows. These barriers, coupled with high interest rates, elevated building costs, and labor shortages, have led to a substantial backlog in housing development, contributing to escalating prices and affordability concerns. To address these issues, a comprehensive strategy is essential, focusing on increasing construction worker supply, relaxing zoning and planning restrictions, supporting the built-to-rent sector, expanding public and affordable housing, and reevaluating property taxes (including tax concessions to property investors) and stamp duty to promote efficient land use. At the same time, capital flow management (CFM) measures that discriminate between residents and nonresidents are not consistent with the Fund’s Institutional View and should be replaced by non-discriminatory measures.

    IV. Medium-Term Reform Priorities to Strengthen Economic Resilience

    1. Australia’s robust economic institutions and policy frameworks can be further enhanced to underpin stability and foster growth. The establishment of a new Monetary Policy Board and strengthened governance arrangements and decision-making processes, in line with international best practices, would bolster central bank operational autonomy and enhance monetary-fiscal policy synergies. Tax reforms should target system efficiency and fairness, reducing reliance on direct taxes and high capital costs that hinder growth. Tax breaks, including from capital gains tax discount and superannuation concessions, could be phased out to generate a more equitable and efficient tax system. Forthcoming environmental and demographic changes will put structural upwards pressures on government spending. Expenditure reforms should therefore aim to enhance spending efficiency and sustainability, emphasizing improved governance in infrastructure projects and strengthening intergovernmental collaboration. The aged care reforms and NDIS review represent positive forward steps. As long-term spending pressures rise, the authorities can consider bolstering their fiscal policy framework with clearer anchors.
    2. Efforts to rejuvenate Australia’s productivity growth, including through competition policy, should be prioritized, focusing on reforms across capital and labor markets. Initiatives grounded in the five pillar Productivity Agenda—emphasizing innovation, a level playing field for firms, and human capital enhancement—are crucial for resilient medium-term growth. Enhancing innovation through building intangible capital, promoting R&D, creating a supportive environment for swift adoption of technologies, supporting intellectual property rights, and ensuring policy certainty are vital. The work of the authorities to improve the competition landscape, including data-based assessments of the use and impact of worker restraints (non-compete clauses), and reforms of merger rules towards a risk-based system using notification thresholds, together with initiatives to support labor market efficiency including expanding access to quality early childhood education and enhancing skills development to align with market needs, are critical for bolstering productivity.
    3. The advent of AI technologies introduces both opportunities and challenges to the Australian labor market, necessitating proactive labor market policies. With a significant portion of occupations highly exposed to AI, reminiscent of other advanced economies, the focus should be given to public awareness programs, as well as ensuring appropriate access to training and upskilling for workers who may be affected. These measures, coupled with ongoing assessment and policy flexibility, should aim to maximize AI’s productivity benefits, while mitigating the risks of job displacement and worsening inequality. This approach underscores the importance of agility and adaptation in policymaking to keep pace with rapidly evolving technological advancements. Efforts at the country level, must be complemented by multilateral collaboration, to ensure safe and responsible AI use globally.
    4. Australia’s approach to climate change and the global transition presents a multifaceted challenge, balancing risks and opportunities. To ensure an orderly transition to a low-carbon economy, a balanced mix of mitigation and adaptation, combined with transition policies, is crucial. Progress towards ambitious emission reduction goals necessitates addressing construction bottlenecks and community engagement issues, and potential solutions include an economy-wide carbon price or targeted sectoral policies. The domestic and global transition toward renewable energy would likely impact jobs, exports, and revenues, particularly given Australia’s status as a leading coal exporter. Thus, adapting to climate risks and fostering resilience, particularly in the financial sector and vulnerable communities, is of paramount importance. At the same time, emerging opportunities in green metals, green hydrogen and critical minerals mining and processing could mitigate these risks.
    5. Australia’s continued efforts to support multilateral solutions are welcome, including the rules-based international trading system. In this respect, the “Future Made in Australia” program goal of supporting the green transition, should be balanced with efforts for a careful design of the program and keeping it narrowly targeted to where market solutions fall short due to the presence of externalities or other market imperfections. In this context, adherence to core market-based principles, that are essential to minimizing trade and investment distortions in line with WTO obligations, crowding in private investments, while supporting economic resilience and net-zero objectives, would be key. Finally, the mission team would like to commend Australia’s continued voluntary participation in the review of transnational aspects of corruption through which the country is sending a powerful positive signal, which, if followed by other advanced economies, will help address more systematically transnational aspects of corruption and deliver a better governance world.

    The IMF mission team would like to express its deep appreciation to the Australian authorities and other interlocutors for their close engagement and cooperation. Our unstinting gratitude particularly goes to the counterparts at the Treasury and the Reserve Bank of Australia for the substantial time and effort devoted to supporting our work. The team looks forward to maintaining this constructive engagement and policy dialogue.

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Rahim Kanani

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/10/02/mcs-australia-staff-concluding-statement-of-the-2024-article-iv-mission

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Asia-Pac: Shri Piyush Goyal to co-chair 6th India-USA Commercial Dialogue meeting in Washington D.C. with Ms. Gina Raimondo

    Source: Government of India

    Shri Piyush Goyal to co-chair 6th India-USA Commercial Dialogue meeting  in Washington D.C. with Ms. Gina Raimondo

    Commerce and Industry Minister to interact with leading American and Indian CEOs, discuss investment avenues in India

    Posted On: 29 SEP 2024 9:45AM by PIB Delhi

    At the invitation of the United States Secretary of Commerce, Ms. Gina Raimondo Union Minister of Commerce and Industry, Government of India, Shri Piyush Goyal, will undertake a visit to the United States of America from September 30 – October 3, 2024.

    Shri Piyush Goyal will co-chair with Secretary Raimondo the India-USA CEO Forum on October 2  2024, and the 6th India-USA Commercial Dialogue on October 3, 2024 to be held in Washington D.C., during which both sides will discuss ways to generate sustainable economic growth, improving the business and investment climate and to deepen ties between the Indian and the American business communities.

    Minister Goyal will interact with leading American and Indian CEOs & industry leaders and to highlight the vast opportunities for investment in India. His interactions with business and industry leaders in a roundtable organized by US-India Strategic Partnership Forum will stress upon ways to further leverage the complementary strengths and synergies between the economies of India and USA. He will also chair a Young Business Leaders Roundtable and India-USA Gems & Jewellery Trade Roundtable.

    Shri Goyal and Secretary Raimondo will also discuss steps to Expand and Diversify Critical Minerals Supply Chains between India and the USA. The two sides are negotiating a MoU which intends to enhance bilateral collaboration to increase and diversify essential critical mineral supply chains and leverage their complementary strengths.

    Minister Goyal will also meet the USTR Ambassador Katherine Tai at Washington DC to discuss the ongoing collaboration under the Trade Policy Forum and ways to further add to two way trade between the two countries.

    The Minister’s visit will add further impetus to the strong and growing trade and investment ties between India and the USA. It will encourage business-to-business engagement, and promote strategic partnerships across sectors of priority to both sides, including critical minerals, building Supply Chain Resilience, facilitating Climate and Clean Technology Cooperation, Inclusive Digital Growth, Standards and Conformance Cooperation, Travel & Tourism etc. 

    ***

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    MIL OSI Asia Pacific News –

  • MIL-OSI Asia-Pac: Commerce Minister urges industry to promote Brand India through focus on quality

    Source: Government of India

    Commerce Minister urges industry to promote Brand India through focus on quality

    Shri Goyal interacted with CEOs of PLI Beneficiary Companies as part of Make in India campaign

    Shri Goyal lauded PLI beneficiaries for bringing innovation, making India self reliant in vital sectors and generating employment

    PLI scheme has been a great success in terms of attracting investments and increasing exports: Shri Goyal

    Posted On: 29 SEP 2024 5:34PM by PIB Delhi

    Marking a decade of the transformative “Make in India” initiative, Minister of Commerce and Industry, Shri Piyush Goyal, today urged the Indian industry to  focus on prioritizing the production of high-quality goods to promote Brand India through sustainable practices in line with Prime Minister’s vision of Make in India with “Zero Effect; Zero Defect”.

    Shri Goyal said this while engaging with the CEOs of over 140 PLI beneficiary companies in an interactive session, celebrating their achievements under the Production Linked Incentive (PLI) Scheme.

    Addressing the gathering, Shri Piyush Goyal applauded the efforts of PLI beneficiary companies which have been instrumental in driving growth across vital sectors, creating jobs, and positioning India as a global leader in manufacturing. Shri Goyal also expressed gratitude to global champions for their dedication, significant investment in producing innovative products and contribution in generating employment through the PLI Schemes.

    Shri Goyal further urged CEOs to focus on increasing domestic value addition in their products to make India self-reliant. He also urged the industry to support domestic manufacturers in this regard.

    During the three hour long interaction, CEOs of beneficiary companies shared their perspectives on the PLI Schemes, offering valuable insights into their experiences, success stories, and suggestions for improving the schemes’ effectiveness and streamlining implementation. The discussion provided a productive platform for open communication between industry stakeholders and the Government. He also sought feedback from industry leaders on decriminalization/ liberalization of laws to promote ease of doing business.

    Shri Goyal encouraged continued dialogue between industry leaders and the government through implementing Ministries/ Departments & respective PMAs in coordination with DPIIT, emphasizing the importance of policy support and creating an enabling environment for future growth. He mentioned that the industry stakeholders may approach Invest India, National Investment Promotion and Facilitation Agency, to facilitate technology transfer & foreign collaborations.

    Shri Goyal thanked global champions for their hard work, massive investment & generating employment under PLI Schemes. He further stated that the Government is committed in fast tracking all the necessary approvals related to PLI industry and also providing handholding support in achieving greater market access.

    Senior officials from implementing Ministries/ Departments and Project Management Agencies (PMAs) were also present. The interaction focused on the tangible outcomes delivered by PLI Scheme across 14 sectors, which has led to a manufacturing surge and transcended India’s global competitiveness.

    Mann ki Baat

    As a part of the interaction, all the participants tuned in to the 114th edition of Prime Minister’s Mann ki Baat broadcast wherein Hon’ble Prime Minister reflected on how “Make in India” campaign has contributed in making India a manufacturing powerhouse resulting in increased exports in electronics, defence, textiles, aviation, automobiles among other sectors along with continuous rise in Foreign Direct Investment (FDI). Hon’ble Prime Minister emphasized that the country is now focussing on “Quality: Products of Global Standards” and “Vocal for Local: Promotion of Local Products”.

    PLI Impact

    Overall achievement of PLI Schemes was also discussed during the meeting. Actual investment of Rs. 1.46 lakh crore has been realized (till August’24) and is likely to reach Rs. 2 lakh crore in the next year or so. This has resulted in production/ sales worth Rs. 12.50 lakh crore and employment generation of around 9.5 lakhs (direct & indirect) which is expected to reach 12 lakhs soon. Exports have exceeded Rs. 4 lakh crore, with substantial contribution from key sectors such as electronics, pharmaceuticals & food processing.

    In the electronics sector, mobile phone manufacturing now accounts for half of India’s total output, with a 3x increase in exports since FY 2020-21. The pharmaceutical industry has revitalized domestic production of bulk drugs and complex generics, reducing import dependence. In the automobile sector, global champions have rolled out electric vehicles, with substantial investment in the country. The medical devices industry has seen technology transfers for critical equipment like CT scanners, fostering local production. Similarly, the food processing sector contributed to sustainable agricultural practices and production of millet and organic products. Emerging sectors like drones have experienced a sevenfold increase in turnover, driven by MSEMs & Startups. Solar PV Module and specialty steel industries are also witnessing robust growth, with significant investments and localized production.

    *****

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    MIL OSI Asia Pacific News –

  • MIL-OSI: Subsea 7 S.A.: Notification of trade by primary insider

    Source: GlobeNewswire (MIL-OSI)

    Subsea 7 S.A. has received notification of transaction(s) in its shares by a primary insider. Please see the attached form for details. This information is pursuant to the EU Market Abuse Regulation and subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.

    Attachment

    The MIL Network –

  • MIL-OSI Global: Only the United States benefits from renegotiating the Canada-U.S.-Mexico trade deal

    Source: The Conversation – Canada – By Blayne Haggart, Associate Professor of Political Science, Brock University

    There is a ticking time bomb at the heart of the North American economy. And this is the year that it begins to detonate.

    Over the past several months, Canadian businesses and analysts have been pressuring the federal government to better prepare for the mandated renegotiation of the Canada-United States-Mexico Agreement (CUSMA) that regulates trade and economic activity among the three North American countries.

    Article 34.7 of the pact effectively commits the three countries to undertake a review of the new agreement every six years, in 2026 (the agreement went into force in 2020).

    This might not seem like a big deal. Canada has negotiated many trade agreements, and a regular review of our most important trade agreement may seem reasonable.

    But CUSMA is no regular trade agreement, in large part because this highly unusual review process undermines the very security and stability that trade agreements are supposed to provide.



    Read more:
    The winners and losers in the new NAFTA

    Eviscerating Canadian policy autonomy

    In 2018, in the depths of the first Donald Trump presidency, Canada, the U.S. and Mexico renegotiated the North American Free Trade Agreement (NAFTA) that had governed continental economic relations since 1994.

    The agreement — called the United States Mexico Canada Agreement (USMCA) in the U.S., the Tratado entre México, Estados Unidos y Canadá (T-MEC) in Mexico and CUSMA in Canada — was largely greeted with relief throughout Canada.

    Negotiated under duress with a Trump administration that was threatening to tear up NAFTA, the three governments seemingly preserved a rules-based approach to managing economic relations with our most important trading partner. Free trade had been saved.

    But there was a twist due to the deal’s requirement that the three countries review the pact every six years.

    Trade agreements are bigger than their specific rules. Their real importance lies in how they provide the smaller partners with certainty and protection from the coercive power of the larger partners.

    The promise of greater market access, and the threat of restricting this access, has always been the American trump card in its international economic relations. American negotiators use this threat/promise to convince partners to adopt, change or eliminate policies in the U.S. interest.

    But once an agreement is signed, the U.S. loses this leverage — which is good for smaller countries’ policy autonomy.

    American interests

    As I detail in my 2014 book Copyfight: The Global Politics of Digital Copyright Reform, Canada demonstrated significant policy autonomy in its 2000s-era copyright reforms. In contrast, Mexico’s 1990s-era digital copyright reforms related to software reflected American interests.



    Read more:
    More means less: Extended copyright benefits the corporate few, not the public

    The difference? Canada’s negotiations took place after NAFTA had been negotiated, while Mexico’s reforms were the result of the NAFTA negotiations, when the U.S. was using market access as a negotiating tactic.

    Having a trade agreement with a renegotiation clause is like having no agreement at all because everyone knows that, once renegotiations start, everything is back on the table.

    As I argued in two 2018 articles for The Conversation Canada, the renegotiation requirement significantly reduces smaller countries’ overall policy autonomy. Knowing that renegotiation is on the horizon will mean that the threat of economic blackmail will hang over all policies as they become pawns to be sacrificed to preserve the Holy Grail: access to the U.S. market.



    Read more:
    Make no mistake: The USMCA is an America-first trade deal

    ‘Regulatory chill’

    Knowing that any policy could be effectively targeted by the U.S. means that Canada and Mexico run the risk of widespread regulatory chill: governments, anticipating retaliation, become excessively cautious in their regulatory efforts.

    These chilling effects can already be seen, two years away from the start of formal renegotiations. In early September, the Business Council of Canada called on the federal government to revoke its new three per cent digital services tax on foreign tech giants for fear it might “imperil” the upcoming talks.

    The implications of the CUSMA time bomb are beginning to be understood in Canada.

    In a recent editorial, The Globe and Mail argued that Canada should make some enormous policy concessions — eliminate the new digital services tax, end the agriculture supply management system and crack down on forced labour in supply chains — in exchange for eliminating regular CUSMA reviews.

    The myth of free trade

    Editorialists are labouring under the belief that free trade is still in play. It’s not.

    Ideologically, the U.S. is no longer the free-trade champion it was.

    More pragmatically, any concessions are highly unlikely to convince the U.S. — regardless of which party is in power — to surrender the most potent weapon it has in its arsenal to pressure its neighbours to adopt its preferred policies. Policy reform, simply put, leads to U.S. market access.

    While the U.S., Canada and Mexico will continue to sign trade and economic agreements, these deals are no longer reliable tools to deliver the certainty and protection enjoyed under NAFTA for three decades prior to 2018. Renegotiated deals will merely restructure Canada’s continental relationship, they won’t preserve Canadian autonomy.

    The 2018 CUSMA didn’t preserve free trade in North America. It signalled its demise and the return of power politics to our most important economic relationship.

    Blayne Haggart has received funding from the Social Sciences and Humanities Research Council of Canada (SSHRC).

    – ref. Only the United States benefits from renegotiating the Canada-U.S.-Mexico trade deal – https://theconversation.com/only-the-united-states-benefits-from-renegotiating-the-canada-u-s-mexico-trade-deal-239170

    MIL OSI – Global Reports –

  • MIL-OSI Global: Reflections on the Canadian Medical Association’s apology to Indigenous Peoples

    Source: The Conversation – Canada – By Marcia Anderson, Assistant Professor, Faculty of Health Sciences, University of Manitoba

    On Sept. 18, I was on the traditional territory of the Songhees and Xwsepsum Nations to stand with my Indigenous physician family as the Canadian Medical Association (CMA) delivered its apology to Indigenous Peoples in Victoria, B.C. This wasn’t the first time that we have stood together to witness a collective apology.

    In June 2008, many of us were at a gathering of the Pacific Region Indigenous Doctors Congress in Kauai, Hawaii. Our hosts ensured that we had time and space to watch Prime Minister Stephen Harper issue an apology on behalf of Canada to Indigenous Peoples for Indian Residential Schools.

    As Harper said sorry for the federal government’s attempt to “kill the Indian in the child,” Canadians had a range of reactions from ignorance to collective humility to ongoing residential school denialism.

    That day, we hoped the apology signalled a turning point and that a new day was coming. What we’ve seen since, as evidenced by multiple reports on progress on reconciliation, is that it takes a long time for that new day to come, and progress on reparations and reconciliation is not linear or always forward-moving.

    I carried the lessons from that 2008 experience with me to Victoria to witness the apology from CMA — Canada’s national association of physicians — and knew this would be different for me. My experiences of racism in the health-care system are significantly more direct than my experiences of residential schools.

    Racism in health care

    I navigated medical education as a Cree-Anishinaabe woman, experiencing significant amounts of both non-malicious and malicious racism. This ranged from being asked if there were polar bears where I grew up (the North End of Winnipeg) to being asked by an attending emergency room physician if I had to “jump out of the Indian Posse” to transfer from Winnipeg to Saskatoon.



    Read more:
    As an Indigenous doctor, I see the legacy of residential schools and ongoing racism in today’s health care

    I have experienced racism when seeking health care myself (like when a training physician commented on my reading ability even though I was already a practising physician and national Indigenous health leader) and when my father needed emergency care while having a massive heart attack.

    Collective apology

    What would this collective apology for systemic racism in health care mean to me, an Indigenous physician, who has and continues to experience racism from my physician peers?

    So when the CMA said “we are deeply ashamed” for the deplorable racism that Indigenous patients and health-care providers face I wondered who was included in that “we.”

    Did/does the ER physician whose behaviour escalated to include putting his hand in the back pocket of my jeans when I was on call to both grope me and “check if I had stolen their reflex hammer” feel deep shame? Probably not, and that disconnect impacted how the apology landed.



    Read more:
    We curated a podcast playlist for you: National Day for Truth and Reconciliation

    Within “the national voice of the medical profession” are those of us who have experienced and continue to experience anti-Indigenous racism; those we work with in consensual solidarity or allyship to dismantle white supremacy within the profession; and those who are actively perpetuating the spread of false and harmful anti-Indigenous stereotypes that contribute to the unequal health care we receive. Many of these behaviours are described in British Columbia’s In Plain Sight Report

    A collective apology cannot speak to this range of experiences or contributions to harm. As racism operates at multiple levels, so must accountability.

    This is why on the day of the apology I was apprehensive and feeling somewhat pressured to respond positively to it, to make a show of unity. Since the apology hadn’t really spoken to the breadth and depth of experiences of racism I’ve had or that I know many of my Indigenous physician colleagues have had, I was not ready for that. I suspected some of my colleagues felt the same.

    After the apology was delivered, in a small group that included many of the Indigenous physicians who were there, I shared my feelings. I said, “An apology has been offered. Whatever your reaction is to what was said today is valid. You don’t have to accept this apology today, tomorrow or ever. It’s okay to wait and see what comes next.” I saw people nodding and tears being shed.

    I sat with that feeling, and then a couple days later I was reading Cole Arthur Riley’s This Here Flesh. Riley is a Black American author and founder of the incredibly popular Black Liturgies Instagram account. Her writing of Black liberation and the reparations needed for the Trans-Atlantic Slave Trade and other injustices strongly parallel the need for Canada’s ongoing truth and reconciliation work — which we will be recognizing on Sept. 30.

    This passage from This Here Flesh resonated with me when reflecting on this latest apology:

    “There are some of us who have grown weary of talk of reconciliation. This is probably because it comes to us on the tongues of men who have paid no time to the process of true repair. It is both ego and shame concealed in shallow unity-speak that regresses any progress that has been made.”

    Racism, reconciliation and repair

    Anti-Indigenous racism is embedded across and within all institutions of the Canadian state, and the medical profession is no different.

    Based on the fallout after the Indian Residential School apology, we can accurately predict the actions following this apology will not be linear with forward progress.

    As Indigenous physicians we know both ourselves and our relatives are vulnerable to ongoing harms while the organizational level actions unfold.

    If we are hesitant to fully accept this most recent apology, it is because we have learned the hard way that our safety, and sometimes our survival, depends on first seeing the integrity of the other party we are in union with.



    Read more:
    Québec’s cultural awareness training makes flawed assumptions that do not prioritize the safety of Indigenous people

    There is a deep social contract between the medical profession and the public we serve. There is an individual contract between each physician and each patient they see. There is also a contract between physicians as colleagues, teachers and learners, embedded in our Modern-Day Physician’s Pledge.

    This apology is meaningful because it addresses a tragic breach between the medical profession and the public. The CMA has committed to followup actions.

    This, however, does not offer “true repair” for the past breaches, and the ones still to come, in all of these contracts. That is a gap that remains to be closed and without it we will not see the end of anti-Indigenous racism in health care.

    Marcia Anderson received funding from Health Canada to develop Indigenous Cultural Safety and Anti-Racism Training.

    – ref. Reflections on the Canadian Medical Association’s apology to Indigenous Peoples – https://theconversation.com/reflections-on-the-canadian-medical-associations-apology-to-indigenous-peoples-239716

    MIL OSI – Global Reports –

  • MIL-OSI China: New tech at expo signals China’s foreign trade momentum

    Source: China State Council Information Office

    Robots perform dance at a booth during the third Global Digital Trade Expo in Hangzhou, east China’s Zhejiang Province, Sept. 25, 2024. [Photo/Xinhua]

    The third Global Digital Trade Expo, currently unfolding in Hangzhou, capital of east China’s Zhejiang Province, is offering a glimpse into avant-garde technologies that are unlocking the country’s burgeoning potential in foreign trade.

    Over the span of five days, the exhibition is featuring 446 new products and technologies, ranging from robots performing remarkable tasks like opening bottles and sorting waste to AI-driven digital humans engaging in debate competitions.

    “I was impressed most by medical AI displayed at the exhibition, such as robotic surgical arms and screening clinics,” said Kgaladi Melia Thema, a consultant for innovation and technology of Small Enterprise Development Agency, South Africa.

    “Nurses can use chronic disease management screening products for patients, which can be applied both at home and in clinics. This reduces costs and enables remote patient monitoring, offering great potential,” she added.

    Digital technologies such as big data, cloud computing and blockchain are taking center stage at the expo, underscoring how China is harnessing these innovations to propel its foreign trade.

    At the booth of iFLYTEK Co., Ltd., a front-runner in China’s AI and speech technology industry, several African visitors were immersed in real-time conversations with staff through a state-of-the-art multilingual AI-powered translation screen. Despite the bustling environment, the screen, equipped with advanced voice recognition technologies, accurately captured and responded to human voices.

    “Overseas business is poised to become a significant growth engine for us in the coming years. Our aspiration is for it to constitute one-third of our business segments in the future,” said Liu Qingfeng, chairman of iFLYTEK.

    Chinese cultural exports are also stealing the show at the exhibition. In the digital entertainment zone, innovative exhibits such as an AI-powered representation of Su Dongpo, a celebrated poet from the Song Dynasty (960-1279), a virtual museum of traditional Chinese music, as well as a 3D display of the four bronze animal heads from the Old Summer Palace (Yuanmingyuan), are offering visitors a fascinating glimpse into the richness of Chinese culture.

    “The fusion of digital technology with the splendor of traditional Chinese culture has not only expanded our export opportunities, but also invigorated the growth of China’s culture industry,” said Wu Shuang, a staff member of Zhejiang Kayou Animation Co., Ltd., a domestic card game creator.

    Visitors are also being treated to futuristic transportation solutions, including autonomous boat taxis and the electric Vertical Take-off and Landing (eVTOL) vehicles, all being showcased for the first time at this year’s expo.

    “China is rightly regarded as a global leader in digital technologies and innovations,” said Zhaslan Madiyev, minister of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan, adding that China’s advancement in digital trade is not only creating new avenues for cooperation, but also enhancing global trade infrastructure, fostering sustainable development worldwide.

    “Chinese technologies and innovations are enhancing supply chains, making them faster and more efficient, while also improving access to goods and services,” Madiyev noted.

    According to the Global Digital Trade Development Report 2024 released during the event, global digital trade soared to around 7.13 trillion U.S. dollars (about 1.02 trillion yuan) in 2023, up from 6.02 trillion U.S. dollars in 2021, marking an average annual growth rate of 8.8 percent.

    The report also highlighted that the import and export scale of China’s cross-border e-commerce reached 2.37 trillion yuan last year, up 15.3 percent year on year.

    Mercado Libre, a leading Latin American e-commerce platform, witnessed a 70-percent increase in online Chinese sellers and a 75-percent surge in their sales on its platform in 2023.

    The company has opened its cross-border e-commerce services to Chinese sellers in Mexico, Brazil, Chile and Colombia, according to its representative at the expo, who also emphasized the escalating significance of the Chinese market.

    As China’s sole national-level event focusing on the theme of digital trade, the expo has drawn over 1,500 enterprises, including more than 300 international companies, and over 30,000 purchasers this year.

    MIL OSI China News –

  • MIL-OSI Australia: Interview with Steve Cannane, RN Breakfast, ABC Radio

    Source: Australian Treasurer

    STEVE CANNANE:

    With interest rates not budging and the Reserve Bank Governor remaining cautious about the sticky inflation figures, the federal government has been eager to find some good economic news, and today, no doubt, they’ll be talking up the Final Budget Outcome for last financial year, which confirms the government has delivered the first back‑to‑back budget surpluses in almost 2 decades, with a surplus of $15.8 billion, which is higher than expected.

    The latest update comes as the federal Treasurer Jim Chalmers has returned from Beijing where he co‑chaired the Australia‑China Strategic Economic Dialogue, and he joins us now. Treasurer, thanks for coming on.

    JIM CHALMERS:

    Thanks for the opportunity, Steve. How are you?

    CANNANE:

    I’m very well, thanks. We’ll come to the economy and your trip to China in a moment. But, first, we have seen an escalation over the weekend in the Middle East with attacks from Israel on targets in Lebanon and now Yemen. How concerned are you and the government about a broader regional conflict breaking out in the Middle East?

    CHALMERS:

    Very concerned. We don’t for one second mourn the death of a leader of a terrorist organisation, but we do mourn the deaths of innocent victims, and too many innocent lives have been lost already. That’s why we need a ceasefire so that the senseless killing of families stops.

    Our primary concern here is the human cost, but obviously a broader regional war, the escalation of this very troubling regional conflict, will have economic consequences as well.

    CANNANE:

    You are just back from China, and China has a series of economic challenges – the housing market is slumping, property developers have been going bust. It seems like the country may not meet its economic growth targets of 5 per cent. Did you see any evidence while you were there that they have got a sensible plan on how to deal with those problems?

    CHALMERS:

    Yes, I did. There couldn’t have been a more important time for us to restart our Strategic Economic Dialogue with China. It’s a really important part of stabilising the relationship, which is full of complexity and full of economic opportunity.

    While I was there the Chinese authorities announced some quite substantial steps when it comes to supporting growth in the Chinese economy. We’ve made it really clear that weakness in the Chinese economy has been a big concern for us. It’s a big part of the global economic uncertainty that we’re dealing with. The government’s efforts to support more economic activity in the Chinese economy, they are good for Australia and they’re very welcome.

    CANNANE:

    Steelmakers have been struggling in China. What impact will that continue to have on iron ore prices and the budget bottom line in Australia?

    CHALMERS:

    Already in the course of last week there were 2 key days – Tuesday and Thursday – and through the course of the week the iron ore price recovered a little bit, not a lot, but it recovered a little bit. That is a sign of the very positive response to the announcements made by the Chinese government, the Chinese authorities.

    They’ve got issues in the property sector which they are trying to address and trying to deal with. There are obviously issues with consumption, and so these efforts that they’re putting in to boost their economy, to support more activity in the economy, it’s a good thing for Australia.

    If you look at our Treasury forecasts in the Budget, we’re anticipating the weakest few years of Chinese growth really since that economy opened up in the late 1970s. That’s been a big concern for us. We’ve been upfront about that. Any efforts to try to turn that around in China is a good thing for us.

    CANNANE:

    We haven’t heard any announcements on the lifting of trade restrictions on Australian lobsters. Why is China being so stubborn around that export market?

    CHALMERS:

    A little bit more work to do, but we shouldn’t forget that of the $21 billion in trade restrictions, about $20 billion of those have been lifted because of the good work of the PM, Trade Minister Farrell and Foreign Minister Wong. Most of those trade restrictions have been lifted. That’s a good thing. We’ve got a bit more work to do on lobster, but I was able to convey directly to Chinese leaders that we want to see the speedy resolution of those issues.

    CANNANE:

    So why are they being stubborn on that particular market?

    CHALMERS:

    I wouldn’t necessarily describe it in that way. They’ve said –

    CANNANE:

    Except that you believe in free trade, so –

    CHALMERS:

    That’s why I welcome the fact that 20 of the $21 billion in restrictions have been lifted already. I want to see these trade restrictions lifted on lobster, no question about it. I conveyed that very directly to the Chinese leaders that I met with. There’s a little bit more work that our agencies are doing, our agriculture and trade authorities on both sides of the equation are working to try to get those last remaining restrictions lifted.

    CANNANE:

    Let’s move on to the Final Budget Outcome. In May you were predicting a budget surplus of $9.3 billion. The Final Budget Outcome for ’23–4 turned out to be a larger surplus of $15.8 billion. Why the difference?

    CHALMERS:

    The difference was explained entirely by less spending, not more revenue. We actually collected less revenue than we were anticipating at budget time, but spending was substantially down, and that’s what explains the bigger surplus that Katy Gallagher and I are releasing today.

    These 2 surpluses are an important demonstration of the responsible economic management which is a defining feature of our Albanese Labor government. These will be the first consecutive surpluses in almost 2 decades. In dollar terms we’re talking about the biggest budget improvement ever in a parliamentary term, and that’s because we’ve turned 2 very big Liberal deficits into 2 big Labor surpluses, and that’s a good thing.

    CANNANE:

    You said less spending. So what decisions have you made since May that have reduced spending?

    CHALMERS:

    There are a whole range of contributors to that lower spending figure. A large amount of it is demand‑driven programs. But what we’ve also shown over the course of our two‑and‑a‑bit years in government is we found almost $80 billion in savings.

    The key to these 2 surpluses is the fact that when we’ve got upward revisions to revenue because the labour market has been a bit stronger or our exports have been performing well, we’ve banked almost all of those upward revisions to revenue. If we hadn’t shown that spending restraint we wouldn’t be anywhere near these 2 consecutive surpluses for the first time in almost 2 decades.

    CANNANE:

    So, is it just underspending by certain government departments, or is it actual decisions that you’ve made since May to reduce spending?

    CHALMERS:

    The $80 billion in savings are decisions. The spending restraint is a decision. A substantial amount of the improvement since May is in demand‑driven programs. There is some underspending, and we detail that when we release all of the figures today.

    CANNANE:

    And to what degree is it as a result of higher than expected commodity prices? Because in that May Budget you did low ball the commodity prices estimates, didn’t you?

    CHALMERS:

    We always take a deliberately conservative approach to commodity prices, and that’s been warranted. In fact, in the last few months our commodity prices have been quite low. Sometimes they’ve actually been below the assumptions that we’ve put in the Budget.

    The improvement from our expectations of a surplus in May to the Final Budget Outcome that we’re reporting today is not about more revenue, it’s not about higher commodity prices, it’s not about more taxes. It’s about less spending. Our revenue has actually gone down from what we expected in May.

    CANNANE:

    So when you talk about these demand‑driven savings, are you talking about, for example, fewer welfare payments because employment is so strong? The unemployment rate is very low at the moment?

    CHALMERS:

    The unemployment rate has ticked up a bit since the middle of last year, but broadly, as we’ve expected, the economy is creating a lot of jobs.

    That’s a good prompt to remember that these 2 surpluses today are really important. They mean that there’s less debt and less interest to repay on that debt. But it’s part of a bigger story of progress that Australia has made in the last couple of years.

    We’ve created in this parliamentary term around a million jobs, inflation has halved, real wages are growing again, we’ve got tax cuts flowing to every taxpayer. These are all good developments, and we know that people are still doing it tough but the fact that we’re making progress, cleaning up the budget, providing cost‑of‑living relief, investing in housing and skills and energy and a Future Made in Australia, all of this together justifies the responsible approach that we are taking to the budget and to the economy.

    CANNANE:

    Okay. Let’s talk about the forecast for next year. There’s a forecast for a deficit of $28.3 billion. Is there any readjustment, and will you be trying to make that closer to a surplus to put more downward pressure on inflation and interest rates?

    CHALMERS:

    The numbers we’re releasing today are for the last year, not for the year that we’re in right now. We’ll update this year’s figure in the mid‑year budget update toward the end of the year in the usual way.

    But already this $28 billion deficit we’ve got currently for this year, that’s about $19 billion better than what it was expected to be when we came to office. It was a $47 billion deficit when we came to office. It’s now a $28 billion deficit, so even where –

    CANNANE:

    But those figures were based on coming out of a pandemic. So is that the kind of baseline you should be measuring yourself against?

    CHALMERS:

    Every government measures itself compared to what it inherited from its predecessors. We’ve made really quite extraordinary progress on the budget when it comes to cleaning up –

    CANNANE:

    But a pandemic is a once‑in‑a‑lifetime event. It’s not necessarily the fault of a previous government.

    CHALMERS:

    No, but for the year that we’re talking about, Steve, they’re talking about the forecasts for the post‑pandemic period. The year that we’re in now was not anticipated by our predecessors or by us to be impacted by the pandemic, which was at its worst a few years ago.

    We are talking here about a $172 billion improvement in just 2 years in the budget. That’s because we’ve shown spending restraint. We’ve banked upward revisions to revenue. We’ve found $80 billion in savings. We’ve taken the right economic decisions for the right economic reasons. Today’s Final Budget Outcome is a demonstration of that.

    CANNANE:

    Treasurer, can you just clear it up who asked for the Treasury advice on changes to negative gearing and capital gains tax and the policy implications of that?

    CHALMERS:

    As I made clear last week in Brisbane and then later in the week in Beijing, it’s not unusual for people in my job as treasurer to get advice on contentious issues. And I think –

    CANNANE:

    So you asked for it?

    CHALMERS:

    I get advice all the time on all the various issues in the economy, including negative gearing. That’s not especially unusual. I’ve said that already. I said that on Wednesday in Brisbane, said it on Friday in Beijing, saying it to you on Radio National Breakfast.

    CANNANE:

    But you’re not answering the question about whether you asked for that advice.

    CHALMERS:

    Sometimes the advice comes unprompted. Sometimes it’s sought by me.

    On this occasion, when there’s a contentious issue in the public domain and we’ve got a severe shortage of housing, of course treasurers get advice from their department on these sorts of issues. That’s what’s happened here. But as we’ve made very clear, Steve –

    CANNANE:

    So should we all assume that you did ask for it, then?

    CHALMERS:

    I get advised on it all the time. Sometimes it’s sought by me. Sometimes it’s provided in the course of things like the Tax Expenditure Statement that we release every year. But what I’m trying to convey to your listeners, Steve, is that this is not an unusual thing. This is a treasurer doing his job.

    We’ve made it really clear that we’ve got a housing policy already, and this isn’t part of it.

    CANNANE:

    So why is it a state secret about whether you asked for that advice or not?

    CHALMERS:

    It’s not. I’ve made it clear on a number of occasions now in the course of the best part of a week that I got this advice because it was a contentious issue, it was in the public domain and it was a big part of the parliamentary debate as well.

    CANNANE:

    Okay. Treasurer, we thank you for your time this morning.

    CHALMERS:

    Thanks for your time, Steve. All the best.

    CANNANE:

    Thanks a lot. Jim Chalmers, the Treasurer, talking to us there on Radio National Breakfast.

    MIL OSI News –

  • MIL-OSI China: 2nd China supply chain expo to boost support for African participants

    Source: China State Council Information Office 3

    The second China International Supply Chain Expo (CISCE), scheduled from Nov. 26 to 30 this year, will offer increased support for participants from African countries, the China Council for the Promotion of International Trade (CCPIT) said on Sunday.

    The enhanced support aims to “voluntarily and unilaterally open the Chinese market wider to Africa,” following a decision made during the 2024 Summit of the Forum on China-Africa Cooperation earlier this month, CCPIT spokesperson Wang Linjie told a press conference.

    Specifically, the expo will tailor country-specific strategies to better match supply and demand, helping African businesses find suitable partners and purchasers in China, Wang said.

    It will also feature forums and sideline events bringing together delegates from African governments, business associations, think tanks and international organizations, aiming to bolster Africa’s presence in global industrial and supply chain cooperation, the spokesperson added.

    “We will leverage the CISCE’s role in promoting trade, investment, innovation and exchange to help Chinese and African companies deepen industrial and supply chain cooperation, while fostering mutual business growth, shared interests and common advancements,” Wang added.

    Multiple African countries, including Ethiopia, Cote d’Ivoire, Rwanda and Morocco, along with the African Union, have confirmed their participation in the second CISCE, focusing on sectors such as agriculture and mining.

    A recent official report showed that China has remained Africa’s largest trading partner for the 15th consecutive year, with bilateral trade reaching 282.1 billion U.S. dollars in 2023.

    China has announced that it will give all the least developed countries having diplomatic relations with China, including 33 countries in Africa, zero-tariff treatment for 100 percent tariff lines.

    MIL OSI China News –

  • MIL-OSI China: Mergers, acquisitions in Chinese capital market gain steam

    Source: China State Council Information Office

    This panoramic aerial photo taken on Jan. 10, 2023 shows a view of Lujiazui area in the China (Shanghai) Pilot Free Trade Zone in east China’s Shanghai. [Photo/Xinhua]

    Mergers and acquisitions (M&A) among Chinese listed firms have gathered pace in recent months thanks to favorable policies to consolidate companies’ competitiveness, contributing to the high-quality development of the country’s capital market.

    The number of such M&A cases saw a marked increase from the same period last year, with 46 major asset reorganization deals disclosed between May and mid-September, according to information made public by companies listed on the A-share market.

    “So far this year, M&A has been particularly active among technology firms, state-owned enterprises (SOEs) and securities companies, with market forces playing a bigger role in the deals,” said Tian Lihui, head of the Institute of Finance and Development at Nankai University.

    A telling example is the acquisition of APT Medical, a manufacturer and supplier listed on Science and Technology Innovation Board (STAR) market, by Mindray, an industry leader in medical equipment development and manufacturing.

    The transaction was announced in January and completed in April. By combining APT Medical’s advantages in the field of electrophysiology and vascular intervention medical devices and Mindray’s R&D capability and overseas marketing experience, the deal improved the competitiveness of both companies.

    Semi-annual financial reports show that the net profits of Mindray and APT Medical increased by 17.37 percent and 33.09 percent, respectively, in the first six months of this year.

    In June, the China Securities Regulatory Commission (CSRC) publicized a slew of measures to further reform the STAR market and pledged greater efforts to support M&A activities among companies listed in the market.

    The CSRC said it will support industrial chain integration among the companies, and make M&A institutions more inclusive by supporting companies to acquire high-quality tech firms that are yet to make profits.

    Driven by such measures, the transaction values of M&A deals of the companies on the STAR market exceeded 3 billion yuan (about 427.34 million U.S. dollars) in the first half of the year, doubling that of the same period in the previous year, data from the Shanghai Stock Exchange showed.

    Technology companies can accelerate innovation and industrial upgrading through M&A activities, said Tian.

    In addition, SOEs at both central and local levels are also leveraging M&A to drive industrial specialization and integration, enhancing industrial synergy with business partners.

    In September, two listed subsidiaries of China State Shipbuilding Corporation announced a plan to merge, which is expected to be one of the largest M&A transactions in the A-share market by market value in recent years.

    The merger is projected to propel the new entity to a leading global position in shipbuilding, characterized by comprehensive research and innovation capabilities, along with a rich product structure and production lines, according to a research note from Huatai Securities.

    Securities firms also saw major M&A deals this year, with Guotai Junan Securities and Haitong Securities planning to merge through a share swap.

    In recent years, the CSRC has continuously promoted market-oriented reform in the M&A of listed companies. This has been achieved through a slew of measures, including streamlining approval procedures and optimizing regulatory requirements.

    The effort was intensified this year. In the context of global industrial transformation and China’s accelerated economic structural upgrade, it is “urgent” for companies to harness M&A’s pivotal role in promoting industrial integration as well as enhancing industry quality and efficiency, CSRC Chairman Wu Qing said at a press conference on Tuesday.

    On the same day, the CSRC rolled out new measures to support Chinese listed companies in pursuing M&A activities, vowing to help channel more resources toward new quality productive forces, encourage the companies to enhance industrial consolidation and elevate their investment value through improving market value management.

    Tian anticipated that the regulator’s latest policies will further invigorate China’s M&A market and drive the transformation and upgrading of listed companies.

    “The M&A trend is expected to continue and play an important role in sharpening companies’ competitiveness, especially in areas related to SOE reform, sci-tech innovation and financial service integration,” he said.

    MIL OSI China News –

  • MIL-OSI China: China provides vibrant digital trade cooperation platform with int’l expo

    Source: China State Council Information Office

    Sales staff promote African products via livestreaming during the third Global Digital Trade Expo in Hangzhou, east China’s Zhejiang Province, Sept. 25, 2024. [Photo/Xinhua]

    The third Global Digital Trade Expo (GDTE), concluding on Sunday, has been a vibrant platform for fostering global partnerships in digital commerce and thus sustainable growth.

    Held in Hangzhou, a city known for blending ancient charm and modern innovation, the expo featured more than 1,500 enterprises, including over 300 international companies.

    Attendees experienced cutting-edge innovations like AI-driven robots and hydrogen-powered drones and were presented with over 400 new products and technologies.

    Valuable experience

    Kazakh Minister of Digital Development, Innovation, and Aerospace Industry Zhaslan Madiyev highlighted China’s role as a global leader in e-commerce and digital technologies, noting that China is accelerating the digital transformation of markets worldwide.

    In a written interview with Xinhua, Madiyev said China’s experience offers valuable insights for countries in the early stages of developing their digital markets, aiding global growth and helping reduce digital inequality. He cited Kazakhstan’s efforts to improve telecommunications and cybersecurity by learning from China.

    In addition to cutting-edge technologies, China’s experience in e-commerce also set an example for countries seeking to capitalize on the rapid growth of digital trade.

    Kilimall, an e-commerce platform founded by Chinese entrepreneurs in Africa in 2014, has become one of the most popular shopping websites among Africans. It has generated about 10,000 local jobs in logistics, courier services, customer support and regional sales.

    The cooperation between China and Africa in digital economy “represents a new model of economic cooperation that creates tangible value for businesses and people on both sides” said Ugandan Ambassador to China Oliver Wonekha.

    Digitalization is a technological leap and a key driver of future development for countries and businesses, said Jean Louis Robinson, ambassador of Madagascar to China. “We are eager to work closely with Chinese companies to learn from China’s advanced experience in digital economy and promote sustainable development in Madagascar,” he added.

    Robots perform dance at a booth during the third Global Digital Trade Expo in Hangzhou, east China’s Zhejiang Province, Sept. 25, 2024. [Photo/Xinhua]

    Vast opportunities

    China’s advanced digital economy and vast market scale are creating immense opportunities for the world, said experts and attendees at the expo.

    “For us, China is not just a sales market,” said Lyu Feng, division head of public relations at Yokogawa China, a Japanese electric firm. He highlighted China’s vast emerging industries, strong market demand, and numerous high-tech companies.

    Lyu added that the company emphasizes collaborating with Chinese enterprises to explore new opportunities, particularly in digital transformation and carbon emissions management in the manufacturing sector.

    Zhu Lili, vice president of AstraZeneca China, expressed that the pharmaceutical giant is “highly confident” in the Chinese market and its innovation ecosystem. She emphasized the company’s goal to partner with more local firms to explore the application of digital technologies in healthcare, driving sustainable and high-quality growth for both the healthcare industry and the broader economy.

    In the first half of 2024, China’s cross-border e-commerce imports and exports reached 1.22 trillion yuan (about 170 billion U.S. dollars), an increase of 10.5 percent year over year, according to customs data.

    Kazakhstan has opened national pavilions on Chinese e-commerce platforms like Alibaba and JD.com to promote products such as powdered milk, safflower oil, and honey, boosting bilateral e-commerce ties, Serik Korzhumbayev, editor-in-chief of Delovoy Kazakhstan, told Xinhua.

    Yao Hongchun, vice president of the Thai Chinese New Generation Business Association, emphasized its potential for collaboration with China, mainly through advanced e-commerce technologies tailored to Thai consumers.

    A foreign merchant consults about a small intelligent translation device at the third Global Digital Trade Expo in Hangzhou, east China’s Zhejiang Province, Sept. 25, 2024. [Photo/Xinhua]

    Cooperation platform

    “E-commerce can be successful and further developed in the long run if everyone can find their way in it, if it is based on close international cooperation, if it is diversified and if as many countries as possible are involved on both the manufacturer and the buyer side,” Hungarian National Assembly’s Deputy Speaker Lajos Olah said at the opening ceremony of the expo.

    By July 2024, China has signed e-commerce cooperation memorandums of understanding with 33 countries spanning five continents.

    Additionally, China has been involved in digital economy collaborations through multilateral frameworks like the Shanghai Cooperation Organization, BRICS, the APEC Economic Leaders’ Meeting, and the G20, according to an e-commerce development report released by China’s Ministry of Commerce during the expo.

    Beyond exhibitions, this year’s GDTE also featured multiple forums, meetings, and seminars, providing officials and industry leaders with platforms to exchange views and discuss prospects for international collaboration.

    Through participating in the expo, Thailand is ready to work with partners in trade, investment, research, and development to expand its digital products and services, aiming to integrate into key global supply chains, Thailand’s Deputy Permanent Secretary of the Ministry of Commerce, Ekachat Seetavorarat told Xinhua on the sidelines of the expo.

    Madiyev also highlighted the GDTE as a unique opportunity to exchange experiences with leading global players in the digital economy and expand economic ties with other countries, particularly China.

    MIL OSI China News –

  • MIL-OSI Asia-Pac: Director General David Cheng-Wei Wu attended Taiwan Tourism Promotion

    Source: Republic Of China Taiwan 2

    Taiwan Tourism Administration held a tourism promotion event in Sydney at Four Seasons Hotel on Sep 23 2024. It was a great turnout with nearly 70 Australian travel agencies joining to explore the great business opportunities.
    Director General David Cheng-Wei Wu spoke about Taiwan’s beauty in different ways. Taiwan and Australia are not only geographically close, but also sharing same core values, which makes Taiwan one of the safest and best places to Australian travelers. New initiative, Taiwan-Waves of wonder, allows you to experience its charms all year-around. Even Hollywood action movie “Weekend in Taipei” was 100% shot in Taiwan, which shows the city’s landscapes and diversities are also recognized by entertainment industry. The huge potential for the travel market is undeniable.
    The event was followed by PR representative’s briefing about Taiwan’s attractions, introduction of Meet Taiwan by Taiwan Trade Center and travel agents from Taiwan shared their ideas and packages. Then a few rounds of the match-making meetings were very successful.

    MIL OSI Asia Pacific News –

  • MIL-OSI China: China provides vibrant digital trade cooperation platform

    Source: China State Council Information Office 3

    Sales staff promote African products via livestreaming during the third Global Digital Trade Expo in Hangzhou, east China’s Zhejiang Province, Sept. 25, 2024. [Photo/Xinhua]

    The third Global Digital Trade Expo (GDTE), concluding on Sunday, has been a vibrant platform for fostering global partnerships in digital commerce and thus sustainable growth.

    Held in Hangzhou, a city known for blending ancient charm and modern innovation, the expo featured more than 1,500 enterprises, including over 300 international companies.

    Attendees experienced cutting-edge innovations like AI-driven robots and hydrogen-powered drones and were presented with over 400 new products and technologies.

    Valuable experience

    Kazakh Minister of Digital Development, Innovation, and Aerospace Industry Zhaslan Madiyev highlighted China’s role as a global leader in e-commerce and digital technologies, noting that China is accelerating the digital transformation of markets worldwide.

    In a written interview with Xinhua, Madiyev said China’s experience offers valuable insights for countries in the early stages of developing their digital markets, aiding global growth and helping reduce digital inequality. He cited Kazakhstan’s efforts to improve telecommunications and cybersecurity by learning from China.

    In addition to cutting-edge technologies, China’s experience in e-commerce also set an example for countries seeking to capitalize on the rapid growth of digital trade.

    Kilimall, an e-commerce platform founded by Chinese entrepreneurs in Africa in 2014, has become one of the most popular shopping websites among Africans. It has generated about 10,000 local jobs in logistics, courier services, customer support and regional sales.

    The cooperation between China and Africa in digital economy “represents a new model of economic cooperation that creates tangible value for businesses and people on both sides” said Ugandan Ambassador to China Oliver Wonekha.

    Digitalization is a technological leap and a key driver of future development for countries and businesses, said Jean Louis Robinson, ambassador of Madagascar to China. “We are eager to work closely with Chinese companies to learn from China’s advanced experience in digital economy and promote sustainable development in Madagascar,” he added.

    Robots perform dance at a booth during the third Global Digital Trade Expo in Hangzhou, east China’s Zhejiang Province, Sept. 25, 2024. [Photo/Xinhua]

    Vast opportunities

    China’s advanced digital economy and vast market scale are creating immense opportunities for the world, said experts and attendees at the expo.

    “For us, China is not just a sales market,” said Lyu Feng, division head of public relations at Yokogawa China, a Japanese electric firm. He highlighted China’s vast emerging industries, strong market demand, and numerous high-tech companies.

    Lyu added that the company emphasizes collaborating with Chinese enterprises to explore new opportunities, particularly in digital transformation and carbon emissions management in the manufacturing sector.

    Zhu Lili, vice president of AstraZeneca China, expressed that the pharmaceutical giant is “highly confident” in the Chinese market and its innovation ecosystem. She emphasized the company’s goal to partner with more local firms to explore the application of digital technologies in healthcare, driving sustainable and high-quality growth for both the healthcare industry and the broader economy.

    In the first half of 2024, China’s cross-border e-commerce imports and exports reached 1.22 trillion yuan (about 170 billion U.S. dollars), an increase of 10.5 percent year over year, according to customs data.

    Kazakhstan has opened national pavilions on Chinese e-commerce platforms like Alibaba and JD.com to promote products such as powdered milk, safflower oil, and honey, boosting bilateral e-commerce ties, Serik Korzhumbayev, editor-in-chief of Delovoy Kazakhstan, told Xinhua.

    Yao Hongchun, vice president of the Thai Chinese New Generation Business Association, emphasized its potential for collaboration with China, mainly through advanced e-commerce technologies tailored to Thai consumers.

    A foreign merchant consults about a small intelligent translation device at the third Global Digital Trade Expo in Hangzhou, east China’s Zhejiang Province, Sept. 25, 2024. [Photo/Xinhua]

    Cooperation platform

    “E-commerce can be successful and further developed in the long run if everyone can find their way in it, if it is based on close international cooperation, if it is diversified and if as many countries as possible are involved on both the manufacturer and the buyer side,” Hungarian National Assembly’s Deputy Speaker Lajos Olah said at the opening ceremony of the expo.

    By July 2024, China has signed e-commerce cooperation memorandums of understanding with 33 countries spanning five continents.

    Additionally, China has been involved in digital economy collaborations through multilateral frameworks like the Shanghai Cooperation Organization, BRICS, the APEC Economic Leaders’ Meeting, and the G20, according to an e-commerce development report released by China’s Ministry of Commerce during the expo.

    Beyond exhibitions, this year’s GDTE also featured multiple forums, meetings, and seminars, providing officials and industry leaders with platforms to exchange views and discuss prospects for international collaboration.

    Through participating in the expo, Thailand is ready to work with partners in trade, investment, research, and development to expand its digital products and services, aiming to integrate into key global supply chains, Thailand’s Deputy Permanent Secretary of the Ministry of Commerce, Ekachat Seetavorarat told Xinhua on the sidelines of the expo.

    Madiyev also highlighted the GDTE as a unique opportunity to exchange experiences with leading global players in the digital economy and expand economic ties with other countries, particularly China.

    MIL OSI China News –

  • MIL-OSI: Bitget Wallet Launches OmniConnect Dev Kit, Bridging A Billion Telegram Users to Multichain Web3 Ecosystems

    Source: GlobeNewswire (MIL-OSI)

    VICTORIA, Seychelles, Sept. 30, 2024 (GLOBE NEWSWIRE) — Bitget Wallet, a leading Web3 non-custodial wallet, has announced the launch of OmniConnect, a software development kit that enables developers to seamlessly connect Telegram Mini-Apps to multichain ecosystems across over 500 blockchains including mainnets like Solana, TON and all EVM-compatible chains. The integration allows Telegram Mini-Apps to utilize Bitget Wallet for signing and conducting transactions across multiple blockchain networks. The future plans of OmniConnect go beyond supporting Telegram Mini-Apps, aiming to expand to plugins, mobile apps, and web platforms, allowing seamless interactions across any blockchain.

    This release signifies a major leap in the integration of Web3 ecosystems with Telegram, offering over a billion Telegram users and developers a simplified, efficient way to interact with multiple blockchains. By integrating with Bitget Wallet, Telegram transforms into a comprehensive gateway to Web3, facilitating a smoother transition from Web2. The Telegram Mini-Apps play a crucial role in onboarding new users to Web3, offering an accessible entry point for individuals who have not previously interacted with decentralized technologies. This aligns with Bitget Wallet’s vision to connect a billion users from social platforms to the entire Web3 world, forming a core part of the broader Bitget Onchain Layer strategy.

    Alvin Kan, COO of Bitget Wallet, highlighted the importance of this development, stating, “Previously, Telegram Mini-Apps could only interact with the TON network, making it difficult to engage with other public chains. Bitget Wallet’s OmniConnect aims to bridge this gap, enabling seamless multi-chain interaction via Bitget Wallet. We’re excited for more developers and blockchain ecosystems to join us in building a more open and thriving Web3 environment on Telegram.” Additionally, Bitget Wallet is set to announce further initiatives aimed at empowering the broader Mini-App ecosystem and deepening integration with Telegram, which are expected to enhance the capabilities and reach of both platforms and benefit the wider builder community.

    Bitget Wallet has already established deep integration within the Telegram and TON ecosystems, partnering with major projects like Tomarket, Catizen, and Yescoin. It was the first to extend MPC keyless wallet to the TON mainnet, developed trading bots for Telegram, and provided multi-chain trading, zero-gas fee experiences on TON DApps, and access to popular project airdrops. Through these efforts, Bitget Wallet has positioned itself as a crucial infrastructure in the Telegram ecosystem. In August 2024 alone, Bitget Wallet saw nearly 2 million downloads, making it the most downloaded wallet globally according to App Store and Google Play data.

    With over 30 million global users, Bitget Wallet is committed to driving mass adoption of Web3 by simplifying access through its MPC keyless wallet, which enables secure logins using familiar methods like email, Apple ID, Google accounts, and Telegram. As an all-in-one platform wallet, Bitget Wallet continues expanding its features in directions like “Wallet+Trading,” allowing users to trade directly within their wallets, and “Wallet+Social,” which integrates social functionalities and connects with Telegram and multi-chain ecosystems. Alvin Kan added, “Our goal is to be the gateway for mass Web3 adoption, making it easy for even non-Web3 users to access DeFi, blockchain games, and the broader crypto ecosystem.”

    Go to OmniConnect Dev Kit: https://web3.bitget.com/en/docs/dapp/telegram-webapps-wc.html

    About Bitget Wallet

    Bitget Wallet stands as one of the world’s leading non-custodial Web3 wallets and decentralized ecosystem platform. With the Bitget Onchain Layer, the wallet is well-poised to develop a burgeoning DeFi ecosystem through co-creation and strategic incubation. Aside from a powerful Swap function, Bitget Wallet also offers multi-chain asset management, smart money insights, a native Launchpad, Inscriptions Center, and an Earning Center. Supporting over 100 major blockchains, 250,000+ tokens, and a wide array of DApps, Bitget Wallet is your top wallet for asset discovery and Web3 exploration.

    For more information, visit: Website | Twitter | Telegram | Discord

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/4de495e5-b690-43d6-9e5a-4c551ce65302

    The MIL Network –

  • MIL-OSI: Defiance ETFs Announces Monthly Distributions on $QQQY (65.47%) $JEPY (49.19%) $IWMY (72.57%) $SPYT (20.02%) $USOY (48.25%) $QQQT (20.02%)

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, Sept. 30, 2024 (GLOBE NEWSWIRE) —

    09-30-2024 Distributions
    Ex & Record Date 10/1/2024. Payable on 10/3/2024.

    • QQQY – Nasdaq 100 Enhanced Options & 0DTE Income ETF. 65.47% distribution rate.* $1.9935/share.
    • WDTE (formerly JEPY) – S&P 500 Enhanced Options & 0DTE Income ETF. 49.19% distribution rate. $1.8085/share.
    • IWMY – R2000 Enhanced Options & 0DTE Income ETF. 72.57% distribution rate. $2.2389/share.
    • SPYT – S&P 500 Income Target ETF. 20.02% distribution rate. $0.3338/share.
    • USOY – Oil Enhanced Options Income ETF. 48.25% distribution rate. $0.6106/share.
    • QQQT – Nasdaq 100 Income Target ETF. 20.02% distribution rate. $0.3220/share.

    As of 08/31/2024 The 30-Day SEC Yield** for QQQY is 3.80%, JEPY is 3.91%, IWMY is 3.81%, SPYT is 0.51%, USOY is 4.30%, and QQQT is -0.13%

    New Income Strategy: Weekly Distributions

    We’re excited to announce that QQQY, WDTE (formerly JEPY), and IWMY now target weekly distributions. The first weekly declaration for these funds will occur on 10/9/2024. The full distribution schedule can be found on each fund page of the http://www.defianceetfs.com website.

    The performance data quoted above represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost and current performance may be lower or higher than the performance quoted above. Performance current to the most recent month-end can be obtained by calling 833.333.9383.

    QQQY Inception Date: 9/13/2023. Click here for QQQY Standardized Performance. WDTE Inception Date: 9/18/2023. Click here for WDTE Standardized Performance. IWMY Inception Date: 10/30/2023. Click here for IWMY Standardized Performance. SPYT Inception Date: 03/07/2024. Click here for SPYT Standardized Performance. USOY Inception Date: 05/09/2024. Click here for USOY Standardized Performance. QQQT Inception Date: 06/20/2024. Click here for QQQT Standardized Performance.

    Distributions from the ETFs include the following estimated return of capital per the 9/5/2024 19-a1 Notice: Defiance Nasdaq 100 Enhanced Options & 0DTE Income ETF, ticker QQQY 59.83%; Defiance S&P 500 Enhanced Options & 0DTE Income ETF, ticker WDTE 48.27%; Defiance R2000 Enhanced Options & 0DTE Income ETF, ticker IWMY 77.80%; Defiance S&P 500 Income Target ETF, ticker SPYT 87.66%; Defiance Oil Enhanced Options Income ETF, ticker USOY 91.06%; Defiance Nasdaq 100 Income Target ETF, ticker QQQT 100.00%

    Defiance Shifts to Weekly Distributions and Name Changes for the 0DTE Income ETF Suite, effective Sept 26th, 2024. Also effective Sept 26th is JEPY ticker change to WDTE. Read more here.

    The Gross Expense Ratio for QQQT is 1.05%, QQQY, WDTE, IWMY, and USOY is 0.99%, and SPYT is 0.94%.

    Click here for the QQQY Prospectus.
    Click here for the WDTE Prospectus.
    Click here for the IWMY Prospectus.
    Click here for the SPYT Prospectus.
    Click here for the USOY Prospectus.
    Click here for the QQQT Prospectus.

    * The Distribution Rate is the estimated payout an investor would receive if the most recently declared distribution, which includes option income, remained the same going forward. The Distribution Rate is calculated by multiplying an ETF’s Distribution per Share by twelve (12), and dividing the resulting amount by the ETF’s most recent NAV. The Distribution Rate represents a single distribution from the ETF and does not represent its total return. Distributions are not guaranteed.

    ** The Distribution Rate and 30-Day SEC Yield is not indicative of future distributions, if any, on the ETFs. In particular, future distributions on any ETF may differ significantly from its Distribution Rate or 30-Day SEC Yield. You are not guaranteed a distribution under the ETFs. Distributions for the ETFs (if any) are variable and may vary significantly from month to month and may be zero. Accordingly, the Distribution Rate and 30-Day SEC Yield will change over time, and such change may be significant. The distribution may include a combination of ordinary dividends, capital gain, and return of investor capital, which may decrease a fund’s NAV and trading price over time. As a result, an investor may suffer significant losses to their investment. These distribution rates caused by unusually favorable market conditions may not be sustainable. Such conditions may not continue to exist and there should be no expectation that this performance may be repeated in the future. Additional fund risks can be found below.

    Investors should consider the investment objectives, risks, charges and expenses carefully before investing. For a prospectus or summary prospectus with this and other information about the Fund, please call 833.333.9383. Read the prospectus or summary prospectus carefully before investing.

    IMPORTANT RISK INFORMATION

    Investing involves risk. Principal loss is possible. As an ETF, the funds may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market price (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns.

    QQQY and QQQT Index Overview: The Nasdaq 100 Index is a benchmark index that includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, based on market capitalization. This makes it a large-cap index, meaning its constituents have a high market value, often in the billions of dollars. The Index includes companies from various industries but is heavily weighted towards the technology sector. This reflects the Nasdaq’s historic strength as a listing venue for tech companies. Other sectors represented include consumer discretionary, health care, communication services, and industrials, among others.

    WDTE & SPYT Index Overview: The S&P 500 Index is a widely recognized benchmark index that tracks the performance of 500 of the largest U.S.-based companies listed on the New York Stock Exchange or Nasdaq. These companies represent approximately 80% of the total U.S. equities market by capitalization, making it a large-cap index.

    IWMY Index Overview: The Russell 2000 Index is a widely recognized benchmark index that tracks the performance of approximately 2000 small-cap companies in the United States. These are the smallest companies listed in the Russell 3000 Index, representing about 10% of that index’s total market capitalization.

    QQQY Indirect Investment Risk. The Index is not affiliated with the Trust, the Fund, the Adviser, the Sub-Adviser, or their respective affiliates and is not involved with this offering in any way. Investors in the Fund will not have the right to receive dividends or other distributions or any other rights with respect to the companies that comprise the Index but will be subject to declines in the performance of the Index. The Nasdaq 100 Index is a benchmark index that includes 100 of the largest non-financial companies listed on the Nasdaq Stock Market, based on market capitalization. This makes it a large-cap index, meaning its constituents have a high market value, often in the billions of dollars.

    WDTE Indirect Investment Risk. The Index is not affiliated with the Trust, the Fund, the Adviser, the Sub-Adviser, or their respective affiliates and is not involved with this offering in any way. Investors in the Fund will not have the right to receive dividends or other distributions or any other rights with respect to the companies that comprise the Index but will be subject to declines in the performance of the Index.

    ​IWMY Indirect Investment Risk: The Index is not affiliated with the Trust, the Fund, the Adviser, the Sub-Adviser, or their respective affiliates and is not involved with this offering in any way. Investors in the Fund will not have the right to receive dividends or other distributions or any other rights with respect to the companies that comprise the Index but will be subject to declines in the performance of the Index.

    An Investment in the Fund is not an investment in the Index, nor is the Fund an investment in a traditional passively managed index fund.

    Index Trading Risk. The trading price of the Index may be highly volatile and could continue to be subject to wide fluctuations in response to various factors. The stock market in general has experienced extreme price and volume fluctuations that have often been unrelated or disproportionate to the operating performance of companies.

    S&P 500 Index Risks: The Index, which includes a broad swath of large U.S. companies, is primarily exposed to overall economic and market conditions. Recession, inflation, and changes in interest rates can significantly impact the index’s performance. Furthermore, despite its diverse representation, a downturn in a major sector such as technology or financials could notably affect the index. Geopolitical risks and unexpected global events, like pandemics, can introduce volatility and uncertainty.

    The Nasdaq 100 Index Risks: The Index’s major risks stem from its high concentration in the technology sector and significant exposure to high-growth, high valuation companies. A downturn in the tech industry, whether from regulatory changes, shifts in technology, or competitive pressures, can greatly impact the index. It’s also vulnerable to geopolitical risks due to many constituent companies having substantial international operations. Since many of these tech companies often trade at high valuations, a shift in investor sentiment could lead to significant price declines.

    The Russell 2000 Index Risks: The Index, which includes a broad swath of large U.S. companies, is primarily exposed to overall economic and market conditions. Recession, inflation, and changes in interest rates can significantly impact the index’s performance. Furthermore, despite its diverse representation, a downturn in a major sector such as technology or financials could notably affect the index. Geopolitical risks and unexpected global events, like pandemics, can introduce volatility and uncertainty.

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

    Price Participation Risk. The Fund employs an investment strategy that includes the sale of in-the-money put option contracts, which limits the degree to which the Fund will participate in increases in value experienced by the Index over the Call Period (typically, one day, but may range up to one week). This means that if the Index experiences an increase in value above the strike price of the sold put options during a Call Period, the Fund will likely not experience that increase to the same extent and may significantly underperform the Index over the Call Period. Additionally, because the Fund is limited in the degree to which it will participate in increases in value experienced by the Index over each Call Period, but has full exposure to any decreases in value experienced by the Index over the Call Period, the NAV of the Fund may decrease over any given time period.

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

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

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

    Liquidity Risk. Some securities held by the Fund, including options contracts, may be difficult to sell or be illiquid, particularly during times of market turmoil. This risks greater for the Fund as it will hold options contracts on a single security, and not a broader range of options contracts.

    Fixed Income Securities Risk: The prices of fixed income securities respond to economic developments, particularly interest rate changes, as well as to changes in an issuer’s credit rating or market perceptions about the creditworthiness of an issuer. Generally fixed income securities decrease in value if interest rates rise and increase in value if interest rates fall, and longer-term and lower rated securities are more volatile than shorter- term and higher rated securities.

    Counterparty Risk. The Fund is subject to counterparty risk by virtue of its investments in options contracts. Transactions in some types of derivatives, including options, are required to be centrally cleared (“cleared derivatives”).

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

    Defiance ETFs LLC is the ETF sponsor. The Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”). The Fund Administrator is Tidal ETF Services LLC. The investment sub-adviser is ZEGA Financial, LLC (“ZEGA” or the “Sub-Adviser”).

    Defiance ETFs are distributed by Foreside Fund Services, LLC.

    David Hanono
    Defiance ETFs
    +1 833-333-9383

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e034b5c1-e346-4c0c-ab39-ee49a8ded830

    The MIL Network –

  • MIL-OSI New Zealand: Yet again, ACT drives change in quarterly plan

    Source: ACT Party

    “ACT’s contribution to the Coalition Government’s fourth quarterly plan shows how we’re driving the real change Kiwis voted for,” says ACT Leader David Seymour.

    “The document is a clear demonstration of how ACT in Government makes New Zealanders’ lives better. We’re unleashing builders and growers by cutting red tape, empowering families with choice in education, delivering consequences for crime, and more.

    “For the fourth plan in a row, ACT voters have made a disproportionate impact – more than half of the plan’s action points reflect our contribution.

    “Every day in Government, we’re taking great ideas and turning them into action to secure a freer, more prosperous future for New Zealanders.”

    Of the 43 actions listed, 22 are led by ACT ministers, advance ACT coalition commitments, or reflect ACT policies. These actions include:

    • Pass the first Resource Management Amendment Bill to reduce the regulatory burden on farmers and the primary sector.
      – ACT coalition commitment
    • Introduce the government’s second RMA reform Bill to Parliament to cut red tape holding back growth in the infrastructure, energy, housing, and farming sectors.
      – ACT coalition commitment
    • Establish the National Infrastructure Agency.
      – ACT policy
    • Take Cabinet decisions on funding and financing tools to get more housing built.
      – ACT coalition commitment
    • Introduce legislation to make it easier to build offshore wind farms.
      – ACT policy
    • Take Cabinet decisions on allowing greater use of road tolling to support the delivery of transport infrastructure.
      – ACT coalition commitment
    • Finalise the development of farm-level emissions measurement methodology.
      – ACT coalition commitment
    • Pass legislation to complete the removal of agriculture from the Emissions Trading Scheme.
      – ACT coalition commitment
    • Take Cabinet decisions to streamline regulations around food safety export exemptions.
      – ACT Minister
    • Pass legislation to reverse the ban on oil and gas exploration.
      – ACT coalition commitment
    • Take Cabinet decisions on the form of the Regulatory Standards Bill.
      – ACT Minister & coalition commitment
    • Initiate a third regulatory sector review to identify and remove unnecessary red tape.
      – ACT Minister & coalition commitment
    • Pass legislation extending deadlines for earthquake prone buildings to enable a review of the current settings.
      – ACT policy
    • Pass legislation to allow lotteries for non-commercial purposes to operate online, cutting red tape to make fundraising more effective.
      – ACT Minister
    • Take final design decisions for an online casino gambling regulator.
      – ACT Minister
    • Introduce legislation to remove the GE ban and enable the safe use of gene technology in agriculture, health science and other sectors.
      – ACT coalition commitment
    • Introduce legislation to enable stronger consequences for serious youth offending.
      – ACT Minister
    • Publish the second action plan on family and sexual violence.
      – ACT Minister
    • Begin delivery of new cancer treatments.
      – ACT Minister (through Pharmac)
    • Commence a review of the funding formula for independent schools.
      – ACT coalition commitment & ACT Minister
    • Negotiate contracts with, and announce, the first charter schools.
      – ACT coalition commitment & ACT Minister
    • Introduce legislation to expand the Traffic Light System to include additional consequences for beneficiaries who do not meet their obligations.
      – ACT coalition commitment

    MIL OSI New Zealand News –

  • MIL-OSI: MSTX, The First Leveraged MicroStrategy ETF in the U.S. Surpasses $400 Million

    Source: GlobeNewswire (MIL-OSI)

    MIAMI, Sept. 30, 2024 (GLOBE NEWSWIRE) — Defiance ETFs, a leading provider of thematic and leverage-focused exchange-traded funds, is thrilled to announce that its MSTX ETF (Daily Target 1.75X Long MSTR ETF) has surpassed $400 million in assets under management (AUM). This milestone underscores the strong investor demand and confidence in the product’s innovative approach to offering amplified exposure to MicroStrategy Inc. (MSTR), a company known for its substantial Bitcoin holdings and cutting-edge data analytics solutions.

    Key Highlights:

    • Unprecedented Growth: The MSTX ETF’s rapid ascent to $400 million in AUM reflects investors’ growing interest in leveraged strategies and their desire to capitalize on the high volatility and significant movements in MicroStrategy’s stock.
    • Innovative Investment Strategy: MSTX offers 1.75x the daily performance of MicroStrategy’s stock, providing sophisticated investors with a powerful tool to enhance their exposure to the company’s dynamic market positioning. The ETF is designed for investors with a strong appetite for risk who seek the potential for amplified returns over short-term holding periods.
    • Market Demand: The strong reception of the MSTX ETF signals confidence in Defiance ETFs’ ability to meet market demand for targeted leverage exposure, particularly in the tech and cryptocurrency sectors. MicroStrategy’s strategic focus on Bitcoin has made it a popular choice among investors looking to gain exposure to the cryptocurrency market.
    • Strategic Timing: The launch of MSTX comes at a time when interest in both MicroStrategy and Bitcoin is surging, driven by the increasing institutional adoption of digital assets and the evolving landscape of corporate strategies centered around blockchain technology.

    “We are excited to see such strong early interest in the MSTX ETF, which validates our belief in the demand for specialized leveraged products that offer precise exposure to high-growth sectors,” said Sylvia Jablonski, CEO of Defiance ETFs. “The rapid growth of MSTX is a testament to our team’s ability to deliver innovative investment solutions that resonate with today’s investors.”

    About Defiance ETFs:
    Defiance ETFs is a leader in leverage-focused exchange-traded funds, providing innovative solutions designed for tactical traders and investors seeking amplified exposure to individual companies.

    For more information about the MSTX ETF or to explore Defiance ETFs’ full lineup of products, please visit defianceetfs.com.

    Media Contact:
    David Hanono
    Defiance ETFs
    Tel: 833.333.9383

    The Fund is not intended to be used by, and is not appropriate for, investors who do not intend to actively monitor and manage their portfolios. The Fund pursues a daily leveraged investment objective, which means that the Fund is riskier than alternatives that do not use leverage because the Fund magnifies the performance of its Underlying Security. The Fund is not suitable for all investors. The Fund is designed to be utilized only by sophisticated investors, such as traders and active investors employing dynamic strategies. Investors who do not understand the Funds, or do not intend to actively manage their funds and monitor their investments should not buy shares of the Funds.

    About Defiance ETFs

    Founded in 2018, Defiance stands as a leading ETF issuer dedicated to income and thematic investing. Defiance also pioneers leveraged ETFs designed for traders seeking tactical opportunities.

    Our suite of first-mover leveraged & thematic ETFs empowers investors to express targeted views on disruptive innovations, including artificial intelligence, machine learning, and quantum computing, while our actively managed options ETFs are designed to seek current income.

    Important Disclosures

    The Funds’ investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company. Please read carefully before investing. A hard copy of the prospectuses can be requested by calling 833.333.9383.

    Defiance ETFs LLC is the ETF sponsor. The Fund’s investment adviser is Tidal Investments, LLC (“Tidal” or the “Adviser”).

    Investing involves risk. Principal loss is possible.

    There is no guarantee that the Fund’s investment strategy will be properly implemented, and an investor may lose some or all of its investment.

    Underlying Security Risk. The underlying security is subject to many risks that can negatively impact the Fund.

    Leverage Risk. Leverage may increase the risk of loss and cause fluctuations in the market value of the Fund’s portfolio to have disproportionately large effects or cause the NAV of the Fund generally to decline faster than it would otherwise.

    Derivatives Risk. Derivatives may be more sensitive to changes in market conditions and may amplify risks.

    Effects of Compounding and Market Volatility Risk. The Fund has a daily leveraged investment objective and the Fund’s performance for periods greater than a trading day will be the result of each day’s returns compounded over the period, which is very likely to differ from the Fund performance, before fees and expenses.

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

    MSTR Performance Risk. MSTR may fail to meet its publicly announced guidelines or other expectations about its business, which could cause the price of MSTR to decline.

    Bitcoin Risk. While the Fund will not directly invest in digital assets, it will be subject to the risks associated with Bitcoin by virtue of its investments in options contracts that reference MSTR.

    New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time.

    New Fund Risk. As of the date of this prospectus, the Fund has no operating history and currently has fewer assets than larger funds. Like other new funds, large inflows and outflows may impact the Fund’s market exposure for limited periods of time.

    Brokerage Commissions may be charged on trades.

    MSTX is distributed by Foreside Fund Services, LLC.

    A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/87922bbb-50cf-447b-a7be-657fcf4cde83

    The MIL Network –

  • MIL-OSI: Interim Results for the six months ended 30 June 2024

    Source: GlobeNewswire (MIL-OSI)

    CAMBRIDGE, United Kingdom, Sept. 30, 2024 (GLOBE NEWSWIRE) — Bango (AIM: BGO), today announces its interim results for the six months ended 30 June 2024.

    Financial Overview (unaudited):

    Results for the 6 months ended 30 June 2024  1H24 1H23 Change
           
    Total Revenue $24.1M $20.3M +18.6%  
             
    Transactional Revenue1 $16.4M $15.5M +5.3%  
             
    DVM, Audiences & One-Off2 $ 7.7M $ 4.7M +62.5%  
             
    Annual recurring revenue (ARR)3 $12.9M $5.6M +130.4%  
           
    Net Revenue Retention4 159%      
             
    Adjusted EBITDA5 $4.0M ($0.2M) +$4.2M
           
    Profit/(Loss) before taxation ($3.4M) ($4.9M) +$1.5M
           
    Net (Debt6)/Cash ($5.1M) $5.5M -$10.6M


    Notes:

    • Transactional revenue grew 9.4% on a constant currency basis.
    • Other Income of $1.4M, which is not included in the revenue figure above, related to recovery of tax costs from the acquisition of DOCOMO Digital. $1.1M will be accounted for as a tax cost, resulting in $0.3M profit.
    • Gross profit margin of 80.8% (1H23: 90.0%) reduced from 82.8% in 2H 2023 due to geographic mix. Improvements expected in 2H 2024 as high margin DVM revenue grows.
    • Net debt6 of $5.1M at 30 June 2024 (net debt of $3.9M at 31 Dec 2023) after R&D investment of $7.6M in the period.

    Operational Highlights

    • Bango signed 4 new Digital Vending Machine® (DVM) customers in 1H24, including a Bank in Brazil. Post-period there has been a further 3 new customer wins.
    • A leading European telco that adopted the DVM in 2020 extended their contract for a further 3 years, with a minimum contract value of $1.5M over the term.
    • 13 new subscription content providers were added to the DVM in 1H24, taking the total to 106.
    • The eDisti7 program now has 20 content providers, including Microsoft and Disney, allowing Bango to provide a ‘pre-stocked’ Digital Vending Machine, reducing time to revenue for both DVM customers and Bango.
    • Bango signed a global agreement with Uber to accelerate the take-up of Uber One subscriptions through telco channels, proving the appeal of the Bango DVM beyond digital video, music and gaming services.
    • The ‘global technology leader’ (announced in June 2022) launched its first two telcos with Bango in 1H24. Additional launches are underway.
    • Chartered Accountant Tony Perkins joined the Bango Board as a Non-Executive Director and Chair of the Audit Committee. In Q3, Tony was appointed as Senior Independent Director replacing Eric Peacock who retired from the Board to focus on his recovery from an accident.

    Presentation and Webcast

    A presentation of the interim results will be made to investors and analysts at 10:00 BST today via the Investor Meet Company Platform. Those wishing to join the call can sign up to Investor Meet Company for free via:
    https://www.investormeetcompany.com/bango-plc/register-investor

    Full RNS announcement

    Read the full Interims Results RNS announcement here: https://polaris.brighterir.com/public/bango_plc/news/rns/story/r7ze9jw

    Paul Larbey, Chief Executive Officer of Bango, commented:

    “The first six months of 2024 have gone to plan and are in-line with the Trading Update issued in July. The payments business continues to deliver growth, providing cash to fund expansion of the Digital Vending Machine® (DVM), which continues to be adopted as the defacto standard platform for subscription bundling by the world’s largest companies. The addition of Disney+ to the Bango eDisti program is further evidence of this and will help accelerate time-to-revenue from DVM deals. With 4 new DVM wins in the 1H and a further 3 in Q3, the pipeline built over the past years continued to deliver results and provides confidence in meeting market expectations for the full year.

    The subscriptions market is vast and growing, and the percentage of subscriptions bundled through channels is increasing. Bango’s leadership position in this market is strengthening with the DVM now playing a key role in the customer acquisition and engagement strategies of major content brands. We are excited by the opportunity ahead and remain on track to continue our strong growth trajectory and return to a positive net cash position in FY25.”

    1 Transactional Revenue is revenue derived by charging a percentage of the retail price paid by the consumer and is made up of direct carrier billing, resale and revenue share amounts.
    2 DVM, Bango Audiences & one-off Revenue includes all DVM license and support fees, revenue from Bango Audiences (discontinued in Q1) and one-off fees including DVM set-up and change requests.
    3 Annual Recurring Revenue is the expected annual revenues to be generated in the next 12 months based on contracted revenues recognized as at 30 June 2024.
    4 Net Revenue Retention is a measure of the retention and expansion of revenue from customers over the previous 12 months and is calculated by dividing the ARR from existing customers at the end of 1H24 to the ARR from those same customers at the end of 1H23.
    5 Adjusted EBITDA is earnings before interest, tax, depreciation, amortization, negative goodwill, exceptional items, share of net loss of associate and share based payment charge 
    6 Net debt is cash and cash equivalents plus short-term investments less the loan from NHN and borrowings. Barclays continues to provide an overdraft facility which was not used at the end of the period .
    7eDisti is a program that allows Bango to resell subscriptions from content providers removing the need for a commercial agreement between the DVM customer and the content provider.

    Contact Details:  
    investors@bango.com

    About Bango

    Bango enables content providers to reach more paying customers through global partnerships. Bango revolutionized the monetization of digital content and services, by opening-up online payments to mobile phone users worldwide. Today, the Digital Vending Machine® is driving the rapid growth of the subscriptions economy, powering choice and control for subscribers.

    The world’s largest content providers, including Amazon, Google and Microsoft trust Bango technology to reach subscribers everywhere.

    Bango, where people subscribe. For more information, visit http://www.bangoinvestor.com

    The MIL Network –

  • MIL-OSI Translation: Valuing learning

    MIL OSI Translation. Government of the Republic of France statements from French to English –

    Source: Swiss Canton of Vaud – news in French

    A large promotional campaign is planned to support these efforts, as well as the opening of a Cité des métiers in Crissier to provide information and guidance throughout the year. However, to observe real changes, an evolution in the orientation and the end of compulsory schooling will be necessary via the MAT-EO project.

    On the eve of the opening of the career fair on October 1, 2024, State Councilor Frédéric Borloz presented generally stable figures on the career guidance of young people in the Canton. These figures nevertheless show for the first time in a long time a 1% increase in the choice of apprenticeship upon leaving compulsory school (19.3% in 2023 to 20.3% in 2024). The number of young people in pre-gymnasium who directly choose apprenticeship is also up by 2% (7% to 9%). At the same time, transition measures are falling by 0.9% to 24% and enrollments in maturity schools are stable at around 37.7% and have not increased for 3 years. Out of 36,4000 young people in post-compulsory education, the Canton of Vaud has 19,500 young people in apprenticeships compared to 13,950 in general education at the start of the 2024-2025 school year.

    Building bridges between schools and the world of work

    Promoting vocational training is a priority of the 2022-2022 legislative program7 and a priority of the Council of State. For two years, the Department of Education and Vocational Training has continued its efforts and deployed its action plan. In addition to the one-off and symbolic event represented by the Salon des Métiers, an entire ecosystem of measures and systems are now in place and developing. For example, we can cite the organization of meetings between local businesses and students through regional forums. These events are set up in several establishments by the coordinators of the approach to the professional world, now present in all school regions. Thus, young people benefit from opportunities for individual or group internships thanks to the links established with the world of work in each region.

    A City of Trades in Crissier and a campaign to promote apprenticeships

    The head of the training department also announced that the Cité des Métiers project has started. This permanent place dedicated to information and guidance will be available to the population by 2028 at the latest on the site of the future Crissier gymnasium. Various Vaud administration counters will be represented there, academic and professional guidance, training for young people and adults, employment and scholarships. In addition, a campaign to promote apprenticeships will be launched to enhance the image of apprenticeships among young people, parents and teachers. It will help combat stereotypes and show the diversity of professions and career opportunities.

    The Careers Fair and a day of higher education

    Thousands of young people, students and families are expected at the Salon des Métiers 2024, which takes place earlier this year. For the first time, Sunday will be devoted to higher education courses that follow the CFC, whether they are higher education diplomas, federal certificates or professional diplomas.

    Efforts are continuing to highlight the apprenticeship pathway, in several timeframes, for several audiences and in various forms. While some indicators seem rather encouraging, real changes can only be observed with time and by changing the orientation of students at the end of compulsory schooling. In the years to come, this is precisely one of the missions of MAT-EO, the project of the reform of the four-year maturity and compulsory schooling.

    Link to the press release

    EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.

    MIL Translation OSI

  • MIL-OSI Russia: IMF Staff Completes 2024 Article IV Mission to Cambodia

    Source: IMF – News in Russian

    September 30, 2024

    End-of-Mission press releases include statements of IMF staff teams that convey preliminary findings after a visit to a country. The views expressed in this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF’s Executive Board for discussion and decision.

    • The Cambodian economy is projected to grow by 5½ percent in 2024, faster than in 2023, but performance is uneven across sectors. Garment and agricultural exports are strong, and tourism is recovering while real estate and construction are undergoing a correction.
    • Fiscal policy needs to rebuild buffers, while supporting a durable and inclusive recovery of the economy. Raising revenues for growth-enhancing spending on education, health, and infrastructure is important. The risk of debt distress remains low.
    • Monetary and financial measures need to focus on safeguarding financial stability against the backdrop of slowing credit growth and rising non-performing loans (NPLs).
    • Structural reforms to enhance human capital, make the business environment more competitive, and strengthen institutions and governance would promote inclusive and sustainable economic development.

    Phnom Penh,Cambodia : An International Monetary Fund (IMF) team, led by Kenichiro Kashiwase, visited Cambodia during September 17-30 to hold discussions for the 2024 Article IV consultation. At the end of the mission, Mr. Kashiwase issued the following statement:

    “Cambodia’s economic growth has strengthened, but the recovery remains uneven. Real GDP growth is estimated at 5 percent in 2023, a similar pace as in 2022. For 2024, the economy is projected to expand by 5½ percent driven by a strong rebound in garment and agricultural exports and the ongoing recovery in tourism. However, the construction and real estate sectors are going through a correction, following rapid growth in prior years.

    “Inflation has moderated to an average of 1.6 percent (y/y) in the first half of 2024, down from 2.1 percent in 2023, reflecting global commodity price trends and weak domestic demand growth. For the full year, inflation is projected to reach around 1.5 percent before converging towards the long-term trend of 3 percent.

    “The current account (CA) balance is expected to swing back to a deficit of around 1¾ percent of GDP this year as strong imports are expected to outpace robust export growth. International reserves improved and coverage remains broadly adequate.

    “Fiscal deficit in 2023 is estimated at 2.8 percent of GDP with tax revenues falling due to softening of economic growth momentum and rising tax exemptions. Capital expenditure was also lower than planned due to delays in infrastructure execution. The fiscal deficit is projected at around 3 percent of GDP in 2024 and decline gradually over the medium term. Public debt to GDP is projected to increase moderately during the next decade, though the risk of debt distress remains low.

    “Credit growth has sharply slowed amidst deteriorating asset quality and high private sector debt. In 2024Q1, NPLs rose to 6 percent of total loans, reflecting emerging vulnerabilities with the temporary roll-back of the COVID-19 forbearance measures.

    “Risks to the outlook have shifted to the downside, notably due to weaker-than-projected demand from advanced economies and China, geoeconomic fragmentation, and high domestic private debt. Rising NPLs in the tourism and real estate sectors also pose risks to growth and financial stability. On the upside, a continued loosening of global financial conditions would support the recovery.

    “Turning to policies, fiscal policy needs to rebuild the buffers diminished by the pandemic, while accommodating a durable and inclusive recovery of the economy. In case of adverse shocks to the economy, fiscal policy should react with a focus on priority spending measures aligned with development goals and well-targeted social protection for the vulnerable. Strengthening revenues is important to create space for growth enhancing spending on education, health, and infrastructure. Tax exemptions and incentives should be reviewed and rationalized to reduce tax base erosion. Other measures to strengthen revenues include implementing the personal income tax and improving tax compliance and administration efficiency. Improving the targeting of social assistance programs and strengthening public investment management are also priorities. As Cambodia approaches graduation from the least developed country status, continuing to strengthen policy frameworks alongside enhancements to public financial management practices, improved fiscal transparency and governance, and the development of the domestic government bond market would be critical.

    “Monetary policy normalization should resume at a pace calibrated to the economic recovery and banking sector liquidity conditions. Important progress has been made in modernizing monetary policy and FX operations. Further efforts in this direction will be needed to enhance monetary policy transmission and support de-dollarization. Priorities include promoting an active KHR interbank market, developing a liquidity forecasting framework, further strengthening market determination of exchange rates, and improving the operational efficiency of monetary policy.

    “Financial sector policies should focus on maintaining financial stability. Forbearance measures should be phased out to alleviate capital misallocation and address risks of debt overhang. The authorities should ensure proper reporting of loans subject to forbearance and foster the preservation of banks’ liquidity and capital buffers. Provision of credit by real estate developers to homebuyers should be monitored closely and subject to stringent prudential requirements to avoid regulatory arbitrage. Intensified supervision efforts are warranted in the current environment. In the medium term, a comprehensive macroprudential policy strategy should be implemented, and a crisis resolution framework and deposit insurance scheme established.

    “Structural reforms are needed to diversify growth drivers and improve productivity. Enhancing skills and education is essential to reap the demographic dividend, foster technology adoption, and facilitate the transition to climate-resilient, higher-productivity industries. The government’s efforts to promote quality investment in higher-value-added activities and capture more of the value chain in agriculture are commendable. Further efforts to improve financial inclusion, advance digitalization, and enhance climate change resilience will also be needed for inclusive and sustainable development.

    “Continued efforts to strengthen institutions and governance, and to improve quality and transparency of public service deliveries would bolster long-term sustainable growth. Priorities include approval of the law on Whistleblower Protection, the draft law on Transparency, and the draft law on Access to Information. The National Audit Authority’s independence and resources should be strengthened along with improvements in the asset declaration regime and inter-agency cooperation. Addressing data limitations and improving macroeconomic data quality would benefit monitoring of the economy and policymaking. The IMF will continue to provide technical assistance to help improve statistics, and in other areas of capacity development.

    “The IMF team held discussions with senior officials of the Royal Government of Cambodia, the National Bank of Cambodia, and other public agencies, as well as a wide range of stakeholders, including representatives of the business and banking sectors, and development partners. The team wishes to express its deep appreciation to the authorities and other interlocutors for open and constructive discussions.”

    IMF Communications Department
    MEDIA RELATIONS

    PRESS OFFICER: Randa Elnagar

    Phone: +1 202 623-7100Email: MEDIA@IMF.org

    @IMFSpokesperson

    https://www.imf.org/en/News/Articles/2024/09/30/pr24349-cambodia-imf-staff-completes-2024-article-iv-mission

    MIL OSI

    MIL OSI Russia News –

  • MIL-OSI Banking: AIIB, Uzbekistan Cement Long-Term Partnership With Landmark Agreements at 9th AIIB Annual Meeting

    Source: Asia Infrastructure Investment Bank

    The Asian Infrastructure Investment Bank (AIIB) further solidified its long-standing partnership with the Republic of Uzbekistan through a series of agreements signed in Samarkand, Uzbekistan, at the Bank’s 9th Annual Meeting, its first in Central Asia.

    The agreements follow the signing of a three-year rolling pipeline for sovereign-backed financed projects by Uzbekistan President Shavkat Mirziyoyev and AIIB President Jin Liqun in Beijing. This strategic partnership established a solid foundation for the current agreements, aimed at supporting Uzbekistan’s sustainable development goals.

    At the Annual Meeting, the Bank and the Swiss State Secretariat for Economic Affairs (SECO) signed an agreement for a USD8.8 million contribution to support the Karakalpakstan and Khorezm Water Supply and Sanitation Project. This critical initiative aims to improve water resource management, sanitation services and flood risk management in some of Uzbekistan’s most water-stressed regions. The project aligns with AIIB’s green infrastructure and technology-enabled Infrastructure thematic priorities and is a key step in advancing Uzbekistan’s long-term goals for climate resilience and water security.

    Following this, AIIB signed a pivotal loan agreement with Asakabank, marking AIIB’s inaugural partnership with the financial institution. The RMB-denominated loan will expand Asakabank’s portfolio in renewable energy and energy efficiency and provide much-needed financial support for green investments. This agreement is a critical part of Uzbekistan’s energy transition strategy and highlights AIIB’s role in fostering climate-resilient infrastructure development across Central Asia.

    Building on this momentum, AIIB signed a mandate letter with SQB (formerly Sanoat Qurilish Bank) to promote sustainable energy projects. This partnership will provide longer-tenor funding than typically available in the market, equipping SQB to finance renewable energy projects and furthering AIIB’s contribution to Uzbekistan’s clean energy goals. The agreement strengthens the relationship that began with the signing of a letter of intent in January 2024.

    Finally, AIIB signed a grant agreement to expand and modernize the country’s public education infrastructure, which marked AIIB’s first project in Uzbekistan’s education sector. This project addresses the pressing need for additional classroom capacity and focuses on building new schools, renovating existing ones and introducing modern educational tools and technology. This initiative has special emphasis on gender inclusion, digital technology and climate resilience, and will ensure that Uzbekistan’s youth are well-equipped to meet the demands of the future.

    “The three-year rolling pipeline agreement between President Mirziyoyev and President Jin established a strategic framework for aligning Uzbekistan’s development goals with AIIB’s expertise and resources,” said Konstantin Limitovskiy, AIIB Vice President for Investment Clients Region 2 and Project and Corporate Finance, Global. “The agreements signed during the Annual Meeting further underscore AIIB’s commitment to advancing impactful, long-term projects that foster prosperity, resilience and sustainable growth in Uzbekistan.”

    “The Asian Infrastructure Investment Bank has been a long-standing partner of Uzbekistan, supporting our country in its pursuit of sustainable infrastructure and investment development, improving living conditions for people, and achieving the goals of the Strategy 2030,” said Laziz Kudratov, Uzbekistan’s Minister of Investment, Industry, and Trade and Governor for Uzbekistan at the AIIB. “The signing of the grant agreement for the project on the modernization and expansion of school infrastructure is another significant step on this path, supported by AIIB and our other partners.”

    AIIB’s continued investments in green infrastructure, renewable energy, education and water management demonstrate the Bank’s commitment to supporting Uzbekistan’s Sustainable Development Strategy: Vision 2030, which aims to alleviate poverty, promote inclusive growth and enhance resilience to global challenges. As AIIB and Uzbekistan continue to deepen their cooperation, these projects will serve as key drivers of the nation’s green transformation, promoting economic resilience and improving the quality of life for its citizens.

    About AIIB

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

    MIL OSI Global Banks –

  • MIL-OSI Europe: SEK 25 million in humanitarian support to crisis-affected Sudan

    Source: Government of Sweden

    SEK 25 million in humanitarian support to crisis-affected Sudan – Government.se

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    Press release from Ministry for Foreign Affairs

    Published

    The Government is setting aside an additional SEK 25 million to address the growing humanitarian crisis in Sudan. This humanitarian support is being disbursed to the United Nations Refugee Agency (UNHCR) and the humanitarian operations of the International Committee of the Red Cross (ICRC). An estimated 25 million people are in need of humanitarian support in Sudan in the midst of the world’s largest humanitarian crisis.

    “The Government is now increasing Sweden’s humanitarian aid to help the people who are living under almost impossible conditions in Sudan. I recently met with the UNHCR country director for Sudan and other humanitarian actors that are fighting to reach those in need despite the grave risks and challenges. This additional support will go to care for the ill and injured, evacuation of civilians from war-affected areas affected by war, and protection and shelter for families and children who have been forced to flee from their homes. Swedish humanitarian aid will also reach people in dire need and poverty,” says Minister for International Development Cooperation and Foreign Trade Benjamin Dousa.

    UNHCR supports displaced people in Sudan and its neighbouring countries by registering refugees, identifying humanitarian needs and offering protection. The war in Sudan has brought about the world’s largest refugee crisis, with more than 10 million people displaced in the region. UNHCR assists by providing vital supplies, shelter, protection measures for the civilian population and safe refugee camps. The Government is now setting aside an additional SEK 15 million for UNHCR operations in Sudan. 

    The ICRC plays an important role in the humanitarian response in Sudan. This includes providing first aid and other acute care to the civilian population, organising evacuations of civilians and offering various types of protection for vulnerable people. The ICRC also plays a significant role in promoting and ensuring compliance with international humanitarian law. The Government is now setting aside an additional SEK 10 million for ICRC operations in Sudan.

    Sweden’s support to Sudan

    Sweden has set aside a total of SEK 659 million in support to the civilian population in Sudan thus far in 2024. This consists of SEK 439 million in humanitarian support and SEK 220 million in long-term development cooperation. Sweden also provides humanitarian support to the neighbouring countries Chad and South Sudan.

    Press contact

    MIL OSI Europe News –