General Electric Company announced that it will be forced to move about 500 jobs overseas due to the withholding of credit financing from the US Export-Import Bank. The giant corporation will instead seek out export financing from agencies in France, Hungary and China, which means they will have to set up shop in those countries, and hire workers there.
Saying that the agency distributes corporate welfare, the Republican-controlled Congress has refused to continue funding the US Export-Import Bank. Congress allowed the agency’s charter to expire on July 1st, and since that time the federal credit bank stopped issuing new loans.
GE contends that the United States is the only major economy in the world that does not offer foreign credit financing, and that will force companies to look elsewhere for credit, forcing them to also move operations overseas.
At the moment GE says they are in the midst of bids on projects around the world valued at about $11 billion. However, their customers need guaranteed financing from an ECA or else they will not be allowed to submit a bid.
“Our customers rely on export credit agencies, like U.S. Ex-Im, to finance their critical power projects,” said Jeff Connelly, vice president for GE Power & Water.
He would like to see Congress continue to fund the Ex-Im bank.
“While our preference is to continue producing power generation equipment in our best U.S. factories, without customer access to the U.S. Ex-Im bank, we have no choice but to move our work to places that will offer export credit financing of these projects.”
In exchange for equity in their company, the founders of XTI Aircraft are inviting venture capital, private equity, and high net worth investors to fund the development and production of the TriFan 600, a business jet that will be able to take off and land like a helicopter.
The Denver-based aerospace start-up company is looking to raise about $50 million through a crowdsourcing campaign they launched this past Tuesday. XTI was founded in 2009 by David Brody, who was the former chairman and chief executive officer of AVX Aircraft. Brody developed and patented the idea for this innovative business jet.
The crowdsourcing campaign was launched under new rules established by the US Securities and Exchange Commission in March, 2015. The company’s financing policy will allow accredited as well as non-accredited investors to invest in XTI Aircraft by reserving non-binding equity in the company.
“We fully expect that investors, especially crowdfunders and those with an interest in aviation, will be drawn to the idea of having their own ‘Kitty Hawk’ moment by being part of a truly new aircraft program that will change flight as we know it,” the company said.
The TriFan 600 has been in development for over two years. It is hopefully going to be the first commercially certified long-range, high-speed, vertical take-off and landing aircraft. The company says it has reduced risk by using already proven technologies for its design. Launch time for the plane will be decided after the project meets certain financing milestones.
The nuclear agreement carved out by Iran, the United States and five other world powers, if ratified, will lift an international embargo on Iran that will benefit not only the people of Iran economically, but some major corporations.
Iran has the fourth largest crude oil reserves in the world, and the second largest natural gas reserves. For the past several years this treasure has been largely unavailable due to the international embargo which was placed on Iran due to its illegal development of a nuclear weapons capability. A signed and sealed agreement will open these vast stores of resources to the world market, benefiting the corporations that do business in energy-related niches.
“Most likely European and Asian energy companies will see an increase in business—so companies like Total and Shell,” said Alireza Nader, senior international policy analyst at the Rand Corporation. “For American energy companies, it’s going to be tougher for them to go back in Iran.”
US companies are likely to avoid doing business in Iran for political reasons; companies don’t want to be associated with an extremist Islamic dictatorship, and will most likely stay away.
Tankers and oilfield services are also going to reap rewards from the opening of the Iranian economy. Chris Wetherbee, an analyst at Citi Research, said the embargo lift is a “net positive” for international tanker companies. Iran’s own aging fleet simply will not be able to compete, especially with additional energy supplies on the market. Investors agree: Scorpio Tankers and Navios Maritime Acquisition stocks both rose on Tuesday.
In response to what the Financial Times reports as over $10 billion in illicit funds that are laundered each year in the US, the US government has recently placed tough new controls on banks. The move is designed to slow down, if not stop, the entrance of narcotic profits from Mexican drug cartels into the US banking system. In their efforts to comply with the regulations several large US-based banks have recently begun to shut down their branches near the US-Mexican border.
The FT article, entitled “Mexico: Clearing Out,” describes members of the US banking industry claiming that legal, legitimate businesses and above-board financial transactions are being dragged into the fray, causing damage.
“The crackdown on money laundering has not necessarily curtailed the practice, but instead may simply have pushed it further underground. The up to $10bn in illicit cash that used to flow through the system is still going to the US, the senior Mexican banker says: “It’s just no longer on the radar.””
The final straw that forced US regulators to take strong action was revealed in an article in Breitbart Texas, discussing Mexican cartel money laundering within the US banking industry.
“World banking giant, HSBC, got caught with its hand in a money laundering scheme that helped drug cartels turn nearly a billion dollars in narco-cash into gold. HSBC only faced a fine for their complicity, but members of money-laundering organizations (MLO) are now facing up to twenty years.”
Although HSBC was heavily fined, none of the banking execs went to prison for their behavior, which enabled Mexico’s intense drug war.
There are many ways a fiscal corporate entity reaches far-reaching decisions. A lot is subject to change too. This is something one financial insurance firm – Primerica – has encountered over the last few years. For example, while in 2005 according to the company’s co-CEO John Addison everything was great, within just a year that climate had changed due to an outside influence: “a change in strategic direction by Citigroup.” Given that situation, together with co-CEO Adam Williams, Addison considered separating from Citi and joining up with another company but ultimately the status quo philosophy was more attractive.
When developing a business investment strategy, company executives need to base their final decision on their original vision as well as that of where they want the firm to be ideally in five to ten years from now. But even with this, economic climactic fluctuations and current relations with other firms need to be considered.
This was the case with Primerica. So when developing business strategy, Addison says that instinct is just as crucial as other factors. In other words, as well as coming up with a long term plan, an understanding of the fiscal climate, and a realistic budget, instinct should be a top priority.
What else is important with investment strategies? Experts give many different features that include: client involvement, detailed research of the market and an evaluation of options. These should all — in an ideal world — work alongside one’s instinct.
The truth is, instinct is a great strategy for most decisions in life, so why would business be any different?
EMBraer Paper Goods has been providing paper goods to offices for many years. The reputation of the company has been that of top customer service as well as high quality goods. According to Beth Sonnenfeld, VP of Sales at the Company, “when I first joined the ranks at EMBraer Paper Goods I was impressed by how efficiently everything was running. Now, as VP of Sales I see it as my responsibility to look at how other offices function and take inspiration from them to even further advance our reputation.”
One of these Companies that she has been watching has been Elio Motors. “I have seen that there has been a lot of time and effort put into how that company is run and as a result I am trying to pick up tips from them along the way,” Sonnenfeld explained.
Today, Sonnenfeld brings to EMBraer Paper Goods an array of knowledge: that of past executive experience, what she has been inspired from Elio Motors and, as she says “what my gut tells me.” The result is a quality company with a focus on high level customer service.
Just when you thought there was nothing else left to personalize, Dany Bahar of Ares Performance started to make customized cars. Instead of spending £2m on a Rolls-Royce or Bugatti, that a ton of other people also own, Bahar is now letting the customer design their very own set of wheels.
Up until now there has been the option for customers to engage in some level of customization with a car. Drivers can find these at car shows (one recent example was the Central Nebraska Auto Club’s Indoor Car Show Saturday at the Buffalo County Fairgrounds organized by Jerry Erikson). In addition, Toyota will soon enable people to print 3D parts for vehicles in Japan with the Open Road Project. But what Bahar – who has held leading roles at some of the top auto-stores including Lotus, Ferrari and RedBull – is now offering, is something quite different.
Through Ares Performance, potential customers will be able to come in and choose everything in their car, from the color, to the upholstery. In other words, they will “take everything off” and redesign a car to the client’s specific needs and desires. Bahar said: “The client is fully involved and that is something really exciting. [They] are wealthy people, important people but you touch them on an emotional level, where they become like children. They say, ‘I want the rear lamp, like this, not like this’.”
As companies that are part of what is known as the “sharing economy” grow in popularity, the Federal Trade Commission is taking an interest in whether new regulation is needed to protect the public.
Internet and crowd-sourcing-based businesses like Uber, Airbnb, and others rely on peer-to-peer transactions for a variety of services including transport, ecommerce, and hospitality. The US trade watchdog, the FTC, is investigating whether consumers are at risk for either liability or the use of personal information by these businesses. They are also responding to problems they have noticed in other parts of the world.
Right now in the US the FTC has responded to this new industry positively, seeing ride-sharing apps like Uber, Lyft and Sidecar as good for competition. The FTC has contacted local and state legislatures asking them to refrain from passing laws which would put the crowd-sourcing companies at a disadvantage to the traditional taxi services.
“Essentially we want to see how we can regulate these new business models in a way that would protect consumers and not hinder innovation,” said Marina Lao the director of the planning office of the FTC.
However, there are two areas in which the agency feels further examination is in order: the practice of these businesses to accumulate lots of personal data and the practice of using rating systems. There are also legal liability issues that need to be addressed.
“We want to see to what extent sharing economy platforms should be able to monitor participants by collecting, let’s say, location data,” said Ms. Lao. “And if they do monitor, how can they do so while adequately protecting the privacy of the participants?”
Everyone knows how important it is to save money. There is no question that everyone would like to save, but in some US towns, it is simply not so easy. How much people can save is not only dependent on how much income is rolling in, but how much it costs to live.
Debt.com took a look at several parameters to create a list of the easiest (and most difficult) cities in which to save. They took the price of gas from GasBuddy, home prices and rent data from Zillow, and unemployment rates from the Bureau of Labor Statistics. The last parameter was income, which was garnered from the Census Bureau. Together they came up with a general idea of how hard saving money is throughout many of the county’s cities.
The web site created an interactive map to illustrate where the best and worst cities are. Not surprisingly, East Coast and West Coast cities are the most expensive places to live, while smaller cities further away from central hubs of commerce and industry are actually easier to save.