Monthly Archives: November 2016

Exclusive: Mexico banking watchdog boosts oversight of banks after Trump win

Vaniceseasonal's Blog

Thanks;Roberto Aguilar, Noe Torres and Alexandra Alper| MEXICO CITY

Publised;Mon Nov 14, 2016

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Mexican banking regulators have begun extraordinary daily checks on the health of banks and brokerages since Donald Trump clinched the U.S. presidential election, four people familiar with the matter said.

The checks are focused on the capital and liquidity levels at the financial institutions, three sources said, adding that regulators were particularly interested in banks’ holdings of Mexican government peso-bonds.

Yields on Mexico’s ten-year benchmark fixed rate bonds have risen over 100 basis points since the election, their highest since 2011, on concern that Trump could rework or scrap the North American Free Trade Agreement (NAFTA) and worries that his stimulus policies could mean higher U.S. interest rates.

Two of the sources said that information on derivatives positions was being sought in some cases.

Three sources said their institutions had received one or two…

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Exclusive: Mexico banking watchdog boosts oversight of banks after Trump win

Thanks; Roberto Aguilar, Noe Torres and Alexandra Alper | MEXICO CITY Publised;Mon Nov 14, 2016 Mexican banking regulators have begun extraordinary daily checks on the health of banks and brokerage…

Source: Exclusive: Mexico banking watchdog boosts oversight of banks after Trump win

Exclusive: Mexico banking watchdog boosts oversight of banks after Trump win

Thanks; Roberto Aguilar, Noe Torres and Alexandra Alper | MEXICO CITY

Publised;Mon Nov 14, 2016

CxQ25b8UcAAv92e.jpg

Mexican banking regulators have begun extraordinary daily checks on the health of banks and brokerages since Donald Trump clinched the U.S. presidential election, four people familiar with the matter said.

The checks are focused on the capital and liquidity levels at the financial institutions, three sources said, adding that regulators were particularly interested in banks’ holdings of Mexican government peso-bonds.

Yields on Mexico’s ten-year benchmark fixed rate bonds have risen over 100 basis points since the election, their highest since 2011, on concern that Trump could rework or scrap the North American Free Trade Agreement (NAFTA) and worries that his stimulus policies could mean higher U.S. interest rates.

Two of the sources said that information on derivatives positions was being sought in some cases.

Three sources said their institutions had received one or two calls per day from Mexico’s CNBV banking watchdog since Trump won.

All the sources spoke on condition of anonymity because they were not authorized to speak to the media.

Mexico’s banking regulator spokeswoman Priscila Blasco said “we are monitoring all the banks … We are not officially asking for anything additional.”

Several analysts consulted by Reuters after Trump’s victory said Mexico’s banking sector is well capitalized and stable.

Mexico’s peso last week took its biggest two-day tumble in more than 20 years following the surprise win for Trump, who has vowed to rework NAFTA and said he will make Mexico pay for a wall on the U.S. Southern border.

Mexico’s financial sector was the second hardest hit in the IPC index .MXX last week, slumping more than 8 percent after Trump’s win.

Before the U.S. election, Mexico’s financial authorities ordered the country’s banks to conduct stress tests to assess the potential macroeconomic impact and volatility resulting from a Trump victory, in addition to a normal annual stress test..

Jaime Gonzalez, CNBV President, said in an interview earlier this month that the results revealed four or five banks needed to boost their capital buffers but declined to name them, adding that the gap was not serious.

The new oversight is in addition to the pre-election tests.

Mexican banks and brokerages usually report monthly capital ratios while banks alone report Liquidity Coverage Ratios, according to the CNBV.

(Additional reporting by Christine Murray and Natalie Schachar; Editing by Bernard Orr)

How ‘guerilla’ start-ups can make the world a better place

Thanks; @IBGC_Fletcher & Word Economic Forum REUTERS/Thomas Peter At the Stockholm Tech Fest this year, Swedish entrepreneur Niklas Zennström issued a rare and refreshing call to implement the …

Source: How ‘guerilla’ start-ups can make the world a better place

How ‘guerilla’ start-ups can make the world a better place

Vaniceseasonal's Blog

Thanks;  & Word Economic Forum

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REUTERS/Thomas Peter

At the Stockholm Tech Fest this year, Swedish entrepreneur Niklas Zennström issued a rare and refreshing call to implement the UN Sustainable Development Goals (SDGs) in their next startup idea. As founder of Skype, he knows a thing or two about opportunity-spotting.

The UN goals involve complex problems, but when it comes to clever startups, a lot can happen between now and 2030. After all, some of the most exciting ideas in recent decades have come from the “guerilla” startups rather than from the “gorilla” corporations; use of the guerilla’s creativity could help to find solutions to sustainable development problems.

However, it is important to ask: Is Zennström’s call to action just fluff, or is there are a deep enough bench of entrepreneurs with robust ideas? Are there resources to support such startups through different phases of growth?

Historically, keeping the…

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How ‘guerilla’ start-ups can make the world a better place

Thanks;  & Word Economic Forum

large_MxLFwyCjzmq_glGmbPduM2DRqVql1uP90iNjCW4c1bA (1).jpg

REUTERS/Thomas Peter

At the Stockholm Tech Fest this year, Swedish entrepreneur Niklas Zennström issued a rare and refreshing call to implement the UN Sustainable Development Goals (SDGs) in their next startup idea. As founder of Skype, he knows a thing or two about opportunity-spotting.

The UN goals involve complex problems, but when it comes to clever startups, a lot can happen between now and 2030. After all, some of the most exciting ideas in recent decades have come from the “guerilla” startups rather than from the “gorilla” corporations; use of the guerilla’s creativity could help to find solutions to sustainable development problems.

However, it is important to ask: Is Zennström’s call to action just fluff, or is there are a deep enough bench of entrepreneurs with robust ideas? Are there resources to support such startups through different phases of growth?

Historically, keeping the growing body of “social” entrepreneurs nourished has largely fallen to impact investors, foundations, NGOs and a few progressive government agencies. so far, the track record of guerillas has not been stellar; far too often it is the same handful of examples that make the rounds. This is a field that, while not starved for people or ideas, is in need of fresh sources of nourishment. Getting big “gorilla” corporations to work with the “guerilla” startups could provide this nourishment.

Findings from our Inclusion, Inc. research initiative suggest that large corporations are well-placed to unblock startups’ path to wider impact.

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How do we find ideas?

There is a growing pool of budding social entrepreneurs; the Skoll World Forumevent alone offers an encouraging and uplifting glimpse of the many guerillas in our midst. We are experiencing a surge in interest and ideas on university campuses. At UC Berkeley, the Blum Center has highlighted examples of businesses and people already helping to fulfil the goals.

Closer to home, The Fletcher School’s collaboration with the One Acre Fund’s D-Prize draws numerous contestants with ideas for social enterprises that take on “poverty solutions”; in recent years, we have funded a startup that used bus networks to distribute solar lamps to far-flung communities in Burkina Faso; a venture finding sponsors for girls’ high school education; and a ground transportation brokerage to serve as “the connective tissue” between smallholder farmers and transporters.

A second piece of good news is that capital is ready to be mobilised. A 2014 study by J.P. Morgan and the Global Impact Investing Network (GIIN) identified $46bn in impact investments under management, with annual funding commitments estimated to increase by 19% in 2014. Sir Ronald Cohen, chair of the Global Social Impact Investment Taskforce, believes the impact investing market can grow to match the “$3tn of venture capital and private equity.”

According to Judith Rodin and Margot Brandenburg of the Rockefeller Foundation: “Aspirational estimates suggest that impact investments could one day represent 1% of professionally managed global assets, channeling up to hundreds of billions of dollars towards solutions that can address some of our biggest problems, from poor health to climate change.”

What are the bottlenecks?

So, why does all this good news not translate into more meaningful outcomes? Two bottlenecks are worth highlighting. The first is what a Monitor and Acumen study calls the “pioneer gap”. Their 2012 study, From Blueprint to Scale, observes that pioneer firms are starved of capital and support at very early stages in their development.

The second choke point occurs in the phase of actually getting to scale. A second report, Beyond the Pioneer, identifies a chain of barriers to scale, ranging from those within the firm and the industry to those in the domain of public goods and the government.

These bottlenecks represent different forms of market failures. An approach to the first of them involves “de-risking” early stage social ventures. However, a key source of risk is the chain of barriers to scale in later stages. If we can make meaningful advances on lowering the barriers, it helps in de-risking and also supports early-stage startup development.

Given the breadth of the barriers to scale, impact investors, NGOs and foundations would find it challenging to facilitate end-to-end solutions. Apart from funding and convening, such organisations have few other levers. Large corporations, on the other hand, can tackle business model and managerial issues within the firm and help boost negotiating power within the value chain or the public sector.

The biggest questions, of course, have to do with whether the gorilla corporations can ever be organisationally and culturally compatible with the startups. Given the potential for value creation these gaps are worth taking on.

The Monitor and Acumen study lists potential barriers: “firm level” barriers, which include weak business models, propositions to customers/producers, leadership and managerial and technical talent and a lack of capital.

Eye Mitra, launched in 2013, had trained over 1,000 young entrepreneurs and reached 150,000 people by the end of 2015. The business helps individuals to set up eye care provider businesses in rural communities using low-cost products.

According to a study by Dalberg Global Development Advisors [pdf], the programme added $4m a year in impact across the six districts surveyed; with Essilor’s scaling resources, Eye Mitra could represent the potential to unlock economic impact of $487m a year across India.

“Value chain barriers”

There are also value chain barriers which include lack of suitable labour inputs and financing for bottom-of-the-pyramid (BoP) producers and customers, weak sourcing channels and weak distribution channels involving BoP producers and customers, and weak linkages and support service providers.

Corporations with experience have become adept at finding creative ways around barriers in the value chain. Consider Unilever’s Project Shakti, which enables rural women to become entrepreneurs by distributing goods to hard-to-access rural communities.

Over 70,000 Shakti Entrepreneurs distribute Unilever’s products in more than 165,000 villages, reaching over 4m rural households. At the other end of the value chain, Coca-Cola’s Source Africa initiative facilitates sustainable and financially viable supply chains for key Coca-Cola agricultural ingredients, e.g. mango production in Kenya and Malawi and citrus and pineapple production in Nigeria.

In another sector, when Saint-Gobain builds a plant in a new country, it trains the local workforce in collaboration with YouthBuild. The latter trains disadvantaged youths in professional skills, while Saint-Gobain adds training in construction science.

“Public goods barriers”

Then, there are the public goods barriers: Lack of hard infrastructure; lack of awareness of market-based solutions; lack of information, industry knowhow and standards.

Olam offers a good illustration of a company’s deep involvement in a nation’s hard infrastructure. Olam jointly owns Owendo, a port in Gabon and is a key partner in the country’s special economic zone. On the “soft” public goods front, Janssen, a unit of J&J, works with multiple stakeholders to increase access to medicines and has formed the Janssen Neglected Disease Task Force to advocate for legislation to support new research into treatments for neglected diseases. It also coordinates a consortium to support HIV patients and their caretakers in managing the disease.

Fourth and finally, there are the government barriers: inhibitory laws, regulations and procedures; inhibitory taxes and subsidies; adverse interventions by politicians or officials.

MasterCard and its growing collaboration with the Association for Financial Inclusion to educate public officials about issues relevant to financial inclusion. This includes technical capacity building, developing national-level public-private engagement strategies, research and best practices to inform policymaking and exposing officials to innovative products, business models and approaches.

Combining global reach with entrepreneurial creativity

Perhaps the best mechanism for bringing gorilla and guerilla together is through a corporate venture or impact investing fund. Consider Unilever Ventures as an example. It has invested in a range of enterprises, including ones that focus on water management as part of its “sustainable living” portfolio, e.g. Recyclebank, a social platform that creates incentives for people to take environmentally responsible actions, WaterSmart, that develops tools for water utilities to help customers save water and money or Aquasana, Voltea and Rayne Water that develop water purification, desalination and filtration technologies.

Gorillas have the global reach and scale but they need the proximity to the problem, local knowledge and the entrepreneurial creativity of the guerillas. Zennström’s call-to-action requires guerillas and gorillas to dance. It is, no doubt, an awkward coupling; but it can – and must – happen for guerilla entrepreneurs to have gorilla impact on the world’s hardest problems.

Trump, Clinton blast each other on character; Clinton rises in poll

Vaniceseasonal's Blog

Thanks;Amanda Becker and Emily Stephenson

Democrat Hillary Clinton and Republican Donald Trump attacked one another’s character as they pushed their closing arguments six days before the U.S. presidential election, while the latest Reuters/Ipsos poll showed Clinton’s lead over Trump rising back to the margin she held last week.

Many national polls have shown Clinton’s lead over Trump narrowing since the re-emergence Friday of a controversy over her use of a private email while secretary of state.

But the latest Reuters/Ipsos daily tracking poll released on Wednesday showed Clinton’s lead over Trump rising back up to 6 percentage points, the same advantage she held before the FBI announcement related to her email practices.

Signs of a tightening race have rattled financial markets as investors started to factor in the possibility that the New York businessman might pull off a victory on Nov. 8.

World stocks, the dollar and oil fell…

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Trump, Clinton blast each other on character; Clinton rises in poll

Thanks; Amanda Becker and Emily Stephenson Democrat Hillary Clinton and Republican Donald Trump attacked one another’s character as they pushed their closing arguments six days before the U.S…

Source: Trump, Clinton blast each other on character; Clinton rises in poll

Trump, Clinton blast each other on character; Clinton rises in poll

Thanks; Amanda Becker and Emily Stephenson

Democrat Hillary Clinton and Republican Donald Trump attacked one another’s character as they pushed their closing arguments six days before the U.S. presidential election, while the latest Reuters/Ipsos poll showed Clinton’s lead over Trump rising back to the margin she held last week.

Many national polls have shown Clinton’s lead over Trump narrowing since the re-emergence Friday of a controversy over her use of a private email while secretary of state.

But the latest Reuters/Ipsos daily tracking poll released on Wednesday showed Clinton’s lead over Trump rising back up to 6 percentage points, the same advantage she held before the FBI announcement related to her email practices.

Signs of a tightening race have rattled financial markets as investors started to factor in the possibility that the New York businessman might pull off a victory on Nov. 8.

World stocks, the dollar and oil fell on Wednesday, while safe-haven assets such as gold and the Swiss franc rose. Clinton has been regarded as the candidate who would maintain the status quo, an important factor to financial markets, which generally do not like uncertainty.

Campaigning in Pensacola, Florida, Trump predicted he would win, telling supporters at the outdoor rally, “It’s feeling like it already, isn’t it?

“We’ve got to be nice and cool, nice and cool. Alright, stay on point, Donald, stay on point. No sidetracks, Donald, nice and easy,” said Trump, whose campaign has at times been damaged by controversial unscripted remarks.

Trump argued that Clinton was unqualified to lead the country, calling her “totally unhinged.”

Speaking to supporters in Las Vegas, Clinton blamed Trump for pitting Americans against one another, citing his rhetoric on groups like Muslims and Mexican-Americans. Trump, she said, is “out of his depth,” and she called his proposals on foreign policy issues “incredibly dangerous.”

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“He doesn’t have a clue,” Clinton said.

Investor anxiety has deepened in recent days over a possible Trump victory given uncertainty about his stance on issues including foreign policy, trade relations and immigrants.

Trump, who has never previously run for elected office, has run an unorthodox campaign, with policy proposals including reviewing trade pacts such as the North American Free Trade Agreement and imposing a temporary ban on Muslims seeking to enter the country.

Currency traders have sold the dollar this week in part because they suspect Trump would prefer a weaker dollar given his protectionist stance on international trade, and in part because the uncertainty surrounding a Trump win might lead to a more dovish stance from the Federal Reserve in the months ahead, instead of the interest rate hike that many expect by year-end. A rise in U.S. interest rates would make the dollar, and dollar-denominated assets, more attractive to investors.

A Reuters equity market poll last month showed a majority of forecasters predicted that U.S. stocks would perform better under a Clinton presidency than a Trump administration.

An average of polls compiled by the RealClearPolitics website showed Clinton just 1.7 percent ahead of Trump nationally on Wednesday, with 47 percent support to his 45.3 percent.

ELECTORAL MATH

Clinton’s position is stronger than national polls imply given that the race is decided by the Electoral College system of tallying wins on a state-by-state basis. Winning the presidency requires a majority of 270 electoral votes, and Democrats have a built-in advantage with large states such as California and New York traditionally voting Democratic.

Clinton looked likely to win at least 226 electoral votes, meaning she would need to pick up votes in “toss-up” states such as Florida, North Carolina, Virginia, Ohio, Iowa, Arizona, Colorado and Nevada, according to estimates by RealClearPolitics on Wednesday afternoon.

Trump, on the other hand, has a steeper path to climb, looking likely to win180 electoral votes, meaning he needs more votes from the battleground states, the website showed.

Both candidates are focusing their final campaign efforts on those crucial states.

Trump and Clinton have campaigned intensively in recent weeks in Florida, which yields a rich haul of 29 electoral votes. A RealClearPolitics average of polls in the state puts Trump 0.7 point ahead of Clinton.

In North Carolina on Wednesday, Clinton deployed President Barack Obama to make the case that Trump posed a unique threat to the future of the country.

“The fate of the republic rests on your shoulders,” Obama told supporters in Chapel Hill, calling Trump temperamentally unfit to lead the nation.

Trump’s campaign announced plans to run three ads during Wednesday night’s Game Seven of the World Series, held in Cleveland, Ohio’s second biggest city. The ads focus on the renewed controversy surrounding Clinton’s email server.

In an ad titled “Corruption,” an announcer says: “Hillary cut deals for donors. Now the FBI has launched a new investigation. After decades of lies and scandal, her corruption is closing in.”

(Additional reporting by Doina Chiacu and Steve Holland in Washington, Jamie McGeever in London, Saqib Iqbal Ahmed in New York; Writing by Frances Kerry and Alana Wise; Editing by Alistair Bell and Leslie Adler)