Showing posts with label finance. Show all posts
Showing posts with label finance. Show all posts

Monday, June 17, 2013

After Gold Bubble Burst!



The soaring price of gold in recent years in early 2009 it was $800 and it reached more than 1900 dollars an ounce in fall 2011 - had all the characteristics of a bubble. And now, like any soaring prices of disconnected assets fundamentals of supply and demand, this gold bubble deflates. At the height of the outbreak, mad gold - a paranoid mixture of investors and others whose political agenda is determined by fear - happily predicted the price of gold on the order of 2000, 3000 or even 5000 dollars an ounce within the next few years. But the price has been declining since. In April, gold was at about $ 1,300 an ounce - and its price continues to trade under 1400 dollars, a drop of nearly 30% from its 2011 high. Many reasons can explain the bubble burst, and why the price of gold will probably fall further to stabilize at around $ 1,000 an ounce in 2015. First, the price of gold tends to buckle when serious economic, financial risks, and geopolitical threat to the global economy. During the global financial crisis, even the safety of bank deposits and government bonds was doubted by some investors. If there is concern of a financial Armageddon, it really is time metaphorically in his bunker to store weapons, ammunition, canned and gold bullion. But even in this terrible scenario, gold would be a poor investment. Indeed, at the height of the global financial crisis of 2008 and 2009, gold prices have collapsed several times. In an acute credit crunch, leverage purchases of forced sales or leads, because any price correction triggers margin calls. Gold can be very volatile - up or down - at the height of a crisis. Secondly, gold performs better when there is a risk of high inflation, insofar as its popularity as a store of value increases. But despite an aggressive monetary policy by many central banks - successive rounds of quantitative easing have doubled and even tripled the money supply in most advanced economies - the overall inflation is still low and steady decline.

 The reason is simple: when the monetary base explodes, the velocity of money slows as a result of the accumulation of liquidity by banks as excess reserves. The reduction of public and private debt keeps growing global demand below that of the offer. Companies therefore have little flexibility in their pricing because of too much capacity, and the bargaining power of workers is reduced due to high unemployment. In addition, with power increasingly weakened union, globalization has led to a cheap production of goods with high labor in China and other emerging markets, undermining the wages and employment prospects of workers unskilled workers in advanced economies. With low wage inflation, it is unlikely that there has been a steep rise in property. However, inflation fell even more today because of the overall downward adjustment of commodity prices in response to weak global growth. And gold follows the actual and expected decline in inflation. Third, unlike other assets, gold yields no income. While publicly traded stocks pay dividends, bonds have their coupons, and houses, rents, or are just a game of capital appreciation. Now that the global economy recovers, other assets - listed real estate or even the resurgent shares - now give better yields. Indeed, U.S. and global equities listed are far better than gold since the sharp increase of its course in early 2009. Fourth, the price of gold rose sharply when the real interest rate (adjusted for inflation) became negative after the various rounds of quantitative easing. The time to buy gold is when actual returns on cash and bonds are negative and declining. But the best prospects in the U.S. and global economies imply a term exit quantitative easing and zero interest rates from the Federal Reserve and other central banks, which means that real interest rates will rise rather than drops. Fifth, some have argued that the heavily indebted sovereigns would encourage investors to turn to gold because of the risks borne by the bonds. But there is an opposite situation. A large number of heavily indebted governments have substantial gold reserves which they may decide to get rid of to reduce their debts. In fact, the information that Cyprus planned to sell a small fraction - about 400 million Euros ($ 520 million) - its gold reserves led to a fall in the price of gold by 13% in April. Countries like Italy; which have massive gold reserves (over $ 130 billion), might also be tempted to do so, which would lead to a further decline in the price.

Sixth, some ultra-conservatives, especially in the United States, have so encouraged the gold rush that the effect was counterproductive. For this right-wing fringe, gold is the best hedge against the risk posed by the government conspiracy to expropriate private wealth. These fanatics also believe that a return to the system of the gold standard is inevitable, since the hyperinflation drift "devaluation" of paper money by the central banks. But in the absence of any conspiracy, and given the decline in inflation and the inability to use gold as a currency, such arguments are not valid. A currency serves three functions: it is a means of payment, unit of account and a store of value. Gold can be a store of value, but it is not a payment, you cannot use it to pay his races. It is not a unit of account the prices of goods and services, and those financial assets are denominated in gold. Gold remains so this "barbarous relic" by John Maynard Keynes, with no intrinsic value and mainly used as a safe haven against fear and panic largely irrational. Yes, all investors should have a very small share of gold in their portfolios as a hedge against extreme risks. But other real assets can be comparable coverage and extreme risk - although still present - are definitely lower than they were at the height of the global financial crisis. Even though the price of gold is likely to rise in the coming years, it will remain very volatile and will decline over time, over the improvement of the global economy. The gold rush is over.

Friday, May 24, 2013

European Commission and Taxing policy on financial transactions!



The European Commission and the European Parliament are to authorize the implementation of an enhanced cooperation procedure between 11 Member States to implement a tax on financial transactions. The contours of the project are summarized below.

 EFSM: European Financial Stability Mechanism, EFSF: European Financial Stability Facility, Financial institutions: credit institutions, investment firms, organized markets, insurance companies, asset management companies, pension funds, holding companies, leasing, securitization vehicles. The expected charges is 0.1% for cash instruments and 0.01% for derivatives. The scope includes the "financial markets" broadly, carefully avoiding the financing of the real economy through the exclusion of the primary market and financial products distributed by the retail banking and insurance. However, the purchase and sale of securities by an individual investor will be taxed via the taxation of the financial intermediary through which this negotiation channeled. The project raises vehement reactions from the world of finance. European banks have made their estimates, which showed that the FTT will sign their death warrant. The French associations instead, sent the Minister of economy to measure on the fate of individual financial institutions, but very they are very alarmed about the impact of the tax on the financing of the economy. It is difficult to sort through the flood of objections that can be read at this time. I chose to retain both. The tax applies to the negotiation and not the transfer of ownership. It is true that the presence of intermediaries and clearing induces a succession of transfers of ownership in the post-market cycle.

But such transfers resulted in two orders (purchase and sale) that resulted in an execution. The purchase and sale will be taxed ... 2 times as expected. However, it will not be the same if the negotiation goes through the OTC market, involving broker-dealers who buy the securities for their own account before transferring to their clients. This leads to the second point. The European Commission assumes that the FTT will effectively eliminate altogether certain market activities. This is what emerges from the published 02/14/2013 impact study. Effect on the market for public debt as the primary market is not taxed investments "buy and hold" long-term types will be favored. The implication speculation on debt of countries in the Euro zone, it's over. Effect on the repo market: The overnight repo will be replaced by secured loans (non-taxable). Therefore also exit the repo, considered a particularly opaque part of the "shadow banking" and carrying systemic risk by successive transfers of collateral. Impact on the OTC derivatives market: there too, the Commission expects a significant drop in volumes, without being moved more than that. Effect on market makers, systematic and other proprietary traders internationals: taxation of transactions of all these intermediaries will lead to cascading effects.

These are fully paid and their consequence capture spreads, become unprofitable cease altogether. Finally, one may wonder if there is not in this project a public agenda and calendar, otherwise hidden, the less "discreet." The public agenda was a political component: meet the largely hostile public opinion in the world of finance, and tax issues: generating additional revenue that would help significantly reduce the contribution of the participating States to the EU budget. The hidden agenda is, if not eradication, at least in the drastic limitation of certain activities deemed unnecessary or predatory for the real economy. It is obvious that the realization of this hidden agenda will also have the effect of reducing tax revenues, but this effect appears here, too, assumed perfectly.

Saturday, April 27, 2013

How to maintain your credit rating!


How to maintain your credit rating? Maintaining your credit rating in the world of personal finance is essential. The credit has an influence on a lot of things we touch. It influences the conditions of bank loans, the discount interest rate and even our financial reputation. Here are some tricks that allow me to maintain a good credit rating. We live in a society where the rule of consumption plays enormously. Therefore, as a consumer, you have one day or the other the desire to own any property. Obviously, things have changed. Before you know reputable seller or practically confirmed your purchase. Now we swear by your reputation and bank credit is the king. Hence it is very important to keep your credit rating in good condition. The first thing you have to do is to build your credit rating is as follows: you must make purchases by funding. Then complete the purchase of thing in cash. Leave your money in the bank. Get now a credit card to prove your spending habits, and most importantly, payment habits. So pay your bills at the end of every month or at least your minimum balance.

Whenever there is a delay in your credit card payments that will be indicated in your credit file. This negative impact will fall on your side. Obviously, the higher your score down, the more you become a consumer uninteresting by banks. Therefore, you will lose promotions, you will have high interest rates and it will be difficult for you to build a good heritage. If you are in the category of least preferred by banks, we need to change that. There are actions to be taken, over time; you can develop yourself to be a customer who is preferred by the most popular banks. Initially, pay your bills that too on time. This is obvious, but how many people do not perfectly? Also, do not change your credit card every year. This will ensure that your credit history will disappear and your credit rating will be less beautiful.

 Avoid more credit applications regularly. Often, it is rather the others who make for us in trying to verify exactly our credit. In this case, ask if it is really necessary. If the answer is positive ask the person rather pick up your credit report of you. A request by you has no impact on your score. It is in my view you should use credit wisely and get a credit card. But settle with just one card. Having many credit cards indicates that you have the opportunity to borrow a lot, thus adversely affecting your score. Thereby maintain only a good credit card only. A good credit score will increase your chances of getting the loan as required for the purchase of your home or your car. You may receive bank discounts and preferential interest rates benefiting you. You could maximize your assets more efficiently.

Sunday, April 7, 2013

The Battle for the control of Silver!




Most of the countries more particularly US and China wants to control over the precious metals market. U.S want to keep the price of white metal as low as possible where as China tries to keep it in uptrend. Now days obviously gold is money but silver was the universal monetary standard for more than 7000 years. The countries have stopped minting silver coins in 1960s because of the deficit between the mining and the industrial demand. The deficit on the market has been filled for many years by selling their old reserves held by countries themselves. Those reserves were completely destroyed by the industries even though the mining production in the recent years had increased tremendously and it failed to meet the demands. To control over silver the banking oligarchy launched ETF. Investors wishing to invest in physical silver without having to carry pounds of metal ingots bought shares traded, they could easily sell. These ETFs are a huge success. In theory, the issuing banks hold hundreds of millions of ounces in stock, but only in theory. As for gold, cash investors have been diverted. Instead of buying silver bullion, and thus weigh on the rise in metal prices, banks guardians of these treasures, HSBC and JP Morgan, have manipulated the prices down. They sold the paper money, the silver-virtual, on the Comex and the London market, to lower the price of this rare and precious metal. These banksters sold five years of production in the form of derivatives in a very short term; they are absolutely unable to deliver.

When China began to open up to the outside world after the meeting Mao and Nixon, the bankers of the world have invested in China, creating new ports, equipped with the most modern refineries which enabled China to carve the lion's share in refining. The industrialization of China has enabled him to become the workshop of the world, so much so that the Middle Kingdom is poised to become the first world power. Since 1971, China sold to Westerners finished products against the dollar, the international currency. But since Nixon's visit, the currency has continued to devalue. Expressed in gold, today's dollar is worth 45 times less than that of 1971, the Chinese have been paid in funny money. China still exported 4800 tons of silver in 2006 will become a net importer in the following year to import 3500 tons in 2010.


 In March 2009, before the G20 meeting, the governor of China's central bank, the COPD, published an essay on the wishes of China's international monetary system, denouncing the failure of the current system and regretting that the new banking system proposed already by Bretton Woods has not been explored since. This rejection of the U.S. monetary hegemony will quickly turn into currency war between BRIC and Washington. In August 2009, China announced that it authorizes to default on Western derivatives, it is considered fraudulent. The silver is at the heart of the problem. In September 2009, the Chinese governments allowed its citizens to stock precious metals and launched a communication campaign pushing the silver the price is extremely low compared to gold. China then banned the export of silver which will cause a few months later the explosion at the rise in silver, putting JP Morgan in trouble. China, which had announced that it wanted to have a say about the price of raw materials, has achieved one of its objectives.


 For the record, in January 2011, Xia Bin, then a member of the Monetary Committee of the Chinese Central Bank, in an interview quoted by Bloomberg, said: "China should increase its gold and silver reserves." It seems important to reconcile this statement with the wishes of China's monetary system, especially as it was the last power to abandon the standard money in terms of silver. The U.S. policy of Roosevelt on money in 1934 caused a monetary crash in China, leading to a dictatorship then the first communism.

Friday, April 5, 2013

Banks, Are they really protect your savings?



The political and economic world is undergoing a profound crisis of faith. Faith simply means faith in ethics, faith in political leaders, faith in money, and faith in banks. A publication recently revealed that banks are our real risk and their inventories are distressing. Banks are losing confidence of the customers and they are more defiance in debt rationalization in some European Union countries. The question is what will happen for your savings if the bank is insolvent or in case if it could not provide you liquidity for your savings? Hence it is best to diversify your maximum savings and evenly distribute them in reliable banks. Few banks are retaining their name by keeping the money and credit in order. Most of the financial credit banks first enrich them self and then the objective. Most of the gold jewelers and banks keep their customers against the bill of exchange which help them to sell this gold to many people at the same time are created loans with interest and unbridled pursuit of profit. A force to lend money to their customers, money speculation is based on the promise of repayment and eventually became a source of debt to the state level. Because of the amount of outstanding loans exceeds more than money in circulation to repay. This is how the bank in its current form was born. According to a survey conducted by Harris Interactive / Deloitte in December 2011, banks are now three times more detractors than promoters. Three out of ten European expressing their distrust an institution supposed to sell their confidence is a lot. A reputations of the banks were tarnished very much recently for various reasons. ( to be Continued)

Friday, December 14, 2012

Sovereign Wealth Funds And Global Finance

Since the early 2000s, SWFs from emerging countries like Kuwait, Abu Dhabi, Singapore, China have stopped communicating with the financial sector and the general public with the aim to build an good image among investor and be reliable. Indeed, their rise was alternately seen as a form of threat to the national sovereignty of the host country, due to the lack of transparency and their alleged ambitions to invest in strategic sectors, and as a favorable element international financial stability and an important financing industrialized economies. In total, a consensus seemed to exist to recognize the positive role of these funds.

Until recently when an unexpected event came to trouble: the fund of Abu Dhabi International Petroleum Investment Company (IPIC) has withdrawn capital Barclays Bank selling on June 2 about 11% of the capital of the 16.3% stake. This operation was a surprising, since it was only made seven months before and the fund became the largest shareholder of the British bank, has allowed him to realize a profit of 1.7 billion Euros. At the same time, the action Barclays lost up to 16% during the session. Trying to get some height and to understand the implication of this new element of sovereign wealth funds and global finance as a whole. Few years back. Before the start of the subprime crisis, SWFs have managed to forge an image of stable investors, favoring a long-term horizon and supports conventional investments such as stocks, bonds or hybrid (i.e. convertible bonds). They also seemed to have no requirement to return excess capital.


Traditionally, they carefully avoided all equity investors and majority remained "passive", i.e. the investor not claiming a seat on the board and do not exercise their voting rights. Their public mandate was simply to pay the financial markets of resources from surplus reserves of oil and gas revenues, and even fiscal surpluses. Their assets under management in 2007 were estimated at more than 3000 billion, which are double the financial assets held by hedge funds or hedge funds. The combination of this long-term horizon, these financial ambitions measured, and the passivity of this important financial capacity tended to SWFs investors 'ideal' for the proper functioning of the financial sector. With the onset of the financial crisis, SWFs action took on a new dimension. Their stakes in Western banks have been hailed as rescue actions the global financial system, allowing some observers assert that "sovereign wealth funds play a fundamentally stabilizer in the international financial system and this fact is clearly verified in the current liquidity crisis ".

In total, between summer 2007 and end of 2008, the amount of equity in banks was about a hundred billion. For comparison, the amounts incurred by SWFs in Western financial institutions were valued at about two billion dollars in 2006. It was so relevant and legitimate to ask whether these new commitments, which differed widely patterns found previously, were more an expression of opportunistic strategies that will contribute to saving the international banking system. The episode Barclays has given a strong argument to critics of SWFs. Should this mean to generalize and draw a vitriolic portrait of all these funds, whatever they are? It is simply to make the obvious, funds, sovereign or not, is first of all investors. And like many traditional investors in times of crisis, some have high risks in search of high returns in the short term. Note, however, that the investments of SWFs, like the pronouncements of Warren Buffet or Albert Frère, are perceived as a buy signal from the other operators on the market, automatically assigning goodwill significant target values. By these new practices, SWFs could encourage other players in the market looking for a short-term profitability to do the same and thus unwittingly contribute to the volatility of stock prices.


Since the early 2000s, SWFs from emerging countries like Kuwait, Abu Dhabi, Singapore, China have stopped communicating with the financial sector and the general public with the aim to build an good image among investor and  be reliable.

Indeed, their rise was alternately seen as a form of threat to the national sovereignty of the host country, due to the lack of transparency and their alleged ambitions to invest in strategic sectors, and as a favorable element international financial stability and an important financing industrialized economies. In total, a consensus seemed to exist to recognize the positive role of these funds ... Until recently when an unexpected event came to trouble: the fund of Abu Dhabi International Petroleum Investment Company (IPIC) has withdrawn capital Barclays Bank selling on June 2 about 11% of the capital of the 16.3% stake. This operation was a surprising, since it was only made seven months before and the fund became the largest shareholder of the British bank, has allowed him to realize a profit of 1.7 billion Euros. At the same time, the action Barclays lost up to 16% during the session. Trying to get some height and to understand the implication of this new element of sovereign wealth funds and global finance as a whole.

Few years back. Before the start of the subprime crisis, SWFs have managed to forge an image of stable investors, favoring a long-term horizon and supports conventional investments such as stocks, bonds or hybrid (i.e. convertible bonds). They also seemed to have no requirement to return excess capital. Traditionally, they carefully avoided all equity investors and majority remained "passive", i.e. the investor not claiming a seat on the board and do not exercise their voting rights. Their public mandate was simply to pay the financial markets of resources from surplus reserves of oil and gas revenues, and even fiscal surpluses. Their assets under management in 2007 were estimated at more than 3000 billion, which are double the financial assets held by hedge funds or hedge funds. The combination of this long-term horizon, these financial ambitions measured, and the passivity of this important financial capacity tended to SWFs investors 'ideal' for the proper functioning of the financial sector.

With the onset of the financial crisis, SWFs action took on a new dimension. Their stakes in Western banks have been hailed as rescue actions the global financial system, allowing some observers assert that "sovereign wealth funds play a fundamentally stabilizer in the international financial system and this fact is clearly verified in the current liquidity crisis ". In total, between summer 2007 and end of 2008, the amount of equity in banks was about a hundred billion. For comparison, the amounts incurred by SWFs in Western financial institutions were valued at about two billion dollars in 2006.
It was so relevant and legitimate to ask whether these new commitments, which differed widely patterns found previously, were more an expression of opportunistic strategies that will contribute to saving the international banking system.

The episode Barclays has given a strong argument to critics of SWFs. Should this mean to generalize and draw a vitriolic portrait of all these funds, whatever they are? It is simply to make the obvious, funds, sovereign or not, is first of all investors. And like many traditional investors in times of crisis, some have high risks in search of high returns in the short term.
Note, however, that the investments of SWFs, like the pronouncements of Warren Buffet or Albert Frère, are perceived as a buy signal from the other operators on the market, automatically assigning goodwill significant target values. By these new practices, SWFs could encourage other players in the market looking for a short-term profitability to do the same and thus unwittingly contribute to the volatility of stock prices.

Monday, October 1, 2012

Financial Deregulation and Mortgage

Since the 1990s, as a result of financial deregulation (elimination of many forms of credit given) and increased competitive pressure, banks have a policy of proactive moderation tariff to maintain their market share and attract customers. The mortgage has become one of the main instruments of conquest and customer loyalty. To compensate for the low profitability of this product appeal, banks have created packages for project acquisition or rental investment. The formulas include, in addition to financing, more profitable products such as insurance homeowners, a guarantee of unpaid rent, a consumer credit to finance the cost of installation or, more recently, and technical diagnostics. However, the innovation supply is not differentiating between institutions as products and services are easily transferable. Banks have sought to decide the level of integration of certain banking and non-banking in the real estate value chain. Encouraged by economic growth, the most major banking networks have invested or increased their presence in the real estate industry since 1999 in search of new growth. The competition has essentially moved upstream of the value chain: developers and real estate services companies have become prime targets for banks. Most banks have adopted a strategy of external growth by making acquisitions in the field of promotion and taking position in real estate transactions as well as property management. In fact: The development sector is supported by a structurally strong demand in contrast to the saturation of the market for retail banking. In a context of rising property prices, the transaction sector has opportunities high income related to the amount of transactions and the sector can also monetize the distribution system through cross-selling. The field of property management has the advantage of generating recurring revenues relatively insensitive to potential downturns because of the captive nature of the clientele. Mapping below shows the result of this current wave of purchase. One can see those mutual banks and especially the largely integrated upstream activities of the value chain.

Friday, May 4, 2012

Dodd-Frank: many consequences extraterritorial

This is easily understood is stated clearly and concisely. This is not the case of Dodd-Frank Wall Street Reform and Consumer Protection Act, enacted by President Obama July 21, 2010.

Along more than 2300 pages, the text aims to be a major reform of U.S. financial markets right - just like those that followed the 1929 crisis - by addressing all the issues identified in the United States during the financial crisis:

Saturday, April 28, 2012

Panorama of the Luxembourg banking


Since World War II, the Grand Duchy of Luxembourg has become one of the richest countries of the world in terms of per capita GDP, supported by a financial services sector booming, political stability and European integration .

The Luxembourg banking sector in figures

Luxembourg's financial sector, the largest contributor to the Luxembourg economy (one quarter of its GDP), plays a major role as an international financial center. Taking advantage of a favorable tax legislation, many banks and investment funds have moved into the capital.

Friday, April 27, 2012

Media and social networks: moving from communication to influence

Today, any insurance company questions the use of social media strategy for digital. Analysis of different positions and opportunities.

In the context of growing participatory media - blogs, social networks and personal professional, participatory media, microblogging, etc. -, the challenge of these areas of expression is well established for business: the opinions expressed therein are considered by consumers as more influential than advertising or official sites.

Islamic finance, inventory and outlook



According to Bloomberg, the bond sharia (sukuk) in the Persian Gulf reached a record in four years, to $ 7.3 billion, an increase of 62% over one year.

If the development of Islamic finance in the Middle East explodes, with assets that will reach $ 990 billion in 2015 against 416 billion in 2010, what about Europe and especially in France? The Old Continent can take advantage of this growing source of funding? And what are the opportunities in terms of investment products for Western banks?

Saturday, April 14, 2012

Consumer credit: assessment of the impacts of the law Lagarde

Within five years, from October 2006 to September 2011, the Bank of France were nearly 1,022,273 records filed with the Debt Commissions, an average of nearly 204,455 cases a year. Trailing 12 months, from October 2010 to September 2011, the caseload is up 6.4%.

Hence the issue of law reform Lagarde on mortgage lending, the consumer credit and the fight against overindebtedness.

But the establishment of this regulatory mechanism has not been neutral for companies to consumer credit.

The High Frequency Trading will not escape regulation

The High Frequency Trading (HFT) has grown considerably in recent years and today represent the AMF according to 90% of orders sent to the market and about 30% of actual transactions in Europe and Further more. The proportions taken by this practice are as worried. While the regulator, after leading an important discussion on these topic proposals currently before the European Parliament that could lead to a new framework for HFT in 2013, French MPs have meanwhile passed a law to tax this type of exchange on February 16.

Thursday, April 12, 2012

Management of collateral received: an effective lever to reduce operational and financial risks


Since the financial crisis, banks are facing a major phenomenon: the rise of non-payment of their customers. These faults are both on home loans granted to individuals and businesses as the credits distributed through credit cards for individuals.

In this context, the management process guarantees received has become a key process, acting at the heart of risk management for banks.

Insurers: Find a model of partnership with the profession of agent to better meet the challenges of tomorrow


For many companies, the network of general agents is the main vector distribution. Historically, the General Agent was virtually the only point of contact with customers, prospecting the claims.

The General Agents - unlike employees of the company - are entrepreneurs, who hold a portfolio of contracts and therefore a customer. For twenty years, a number of fundamental context of the distribution of insurance have changed: the appearance and growth of the use of "new" channels (internet, mobile ...), changes in market share (MSI , banks ...), coming into play of new distributors (supermarkets, banks ...).

Friday, March 23, 2012

The Greek private sector can derail the European agreement?

If one agrees to consider that the exchange "voluntary" 206 billion euros of private sector bonds into new bonds to meet with thirty years of acceptance from 75 to 80%, 10-15% of the issue necessary to achieve the 90% level for the operation announced a new dimension. It would appear, according to the Financial Times that the Greek pension funds and funds of the unions would pray. However, they have a thirty billion of Greek sovereign bonds, such as the 15% needed to achieve 90% or more.

Does Greece’s bankrupt without default?

The question is all the more legitimate than the last few days have resulted in an assault interpretations based on several aspects of the agreement of the private sector, which will only be confirmed on March 8. It is difficult to consider that Greece is in default if creditors agree on a form of sovereign debt restructuring.

Monday, November 14, 2011

Supply Chain Finance Part. IV


The potential improvements in the development of CFS are:

    * Improve the traceability of transactions (orders, invoices, making payments, cash) to the sender as the recipient.
    * Avoid litigation and the costs associated with their management.
    * Generate working capital through better management of financial flows. For this, banks need to adapt their offerings to the new needs expressed by client companies.
    * Benefit from the discount offered by suppliers in case of cash payment, without degrading its financial position since fiscal third rule for the acquiring company (reverse factoring)
    * Retain the most important suppliers
    * Increase the capacity to purchase the acquiring company

The other advantage of the SCF:
Long control of the supply chain was seen as a logistical necessity rather than as a real competitive advantage, however, the globalization of the economy no longer allows this way of thinking because it is cost savings to all levels to be able to offer the best prices. Control of financial flows is now the last piece of the savings. Therefore, enterprise customers are now very interested in the ability of their suppliers or customers to integrate into a process of "modernization" of tools related to accounting and finance offers available from financial institutions. Control its cash flow enables a company to offer customers efficient service and achieve economies together. It seems that the implementation of management solutions for financial information is involved, to some extent to meet the needs of business partners and thus contribute to their loyalty. However, in some areas as high technology, supply chain based on key players, specialized suppliers and rare it is imperative to retain.

The CFS will ensure the smooth flow of information related to financial flows and thus contributes to the flexibility of the entire chain by addressing the shortcomings of funding or access to financial information. Continue to operate from the old ways is contrary to the current economy and what it requires companies in terms of efficiency. Thus, it should be put in place systems to access information yesterday fragmented as companies seek to ensure unity became a key factor of success.
In short, it is called today to find solutions that integrate all the information (physical flows, information flows and financial flows) so that they can be exploited best by all participants in the chain supply and their financiers.
It is therefore not surprising that the recent emergence of offers of "Supply Chain Finance officials" within recruitment agencies

Friday, November 11, 2011

Supply Chain Finance Part. III

The implementation of this portal thus has the advantage of reducing costs through paperless transactions, track and archive centrally each exchange and control of customer disputes. This progress is in itself help much appreciated by the companies that allows them to save time previously spent on resolving issues sterile.
The innovation lies in the fact that one third may have financial access to this platform. It is then able to offer (so early) offers funding to the various players in the supply chain (discount ...).
Everyone wins: the financial institution sells its finance offers closer to the needs of its clients, customers more effectively manage their need for working capital (BFR) and supply chain pressures subside.

When asked the 500 largest European companies on working capital financing techniques that seem to grow strongly in the near future (study Demica - December 2006), loans by the banking pool and the financing of the supply chain (reverse factoring) top.

CGA of Societe Generale Group, Eurofactor, IFN (...) are some of the players with offers of "reverse factoring" to their customers. The principle is simple, a financial intermediary pays the bill to the supplier on the day of issue which in return allows the acquiring company to benefit from an extension (the broker earns a margin on this).
It should be noted that in Italy, some companies have created their own company credit and factoring without going through financial institutions.

The CFS is not exactly new, serious consideration is that since the early 2000s leading to innovations both from UPS or DHL (billing management, collection, delivery against payment) that Banks have realized, with some delay, the need to provide their customers with offers to alleviate existing pressures on the financing of the Supply Chain.

Monday, November 7, 2011

Supply Chain Finance Part. II

The sectors concerned are mainly industrial sectors: pharmaceutical companies, automotive and high technology are particularly interested in the subject because they are highly dependent on suppliers irreplaceable.

Search for a win-win solution: Supply Chain Finance is the answer to a tense situation between suppliers and buyers