China-Backed AIIB Investment Bank

Australia/Netherlands/Russia Joined AIIB

Australia, Netherlands and Russia, became the latest three countries who have joined the China led Asian Infrastructure Investment Bank – AIIB adding power to an institution which is seen as enhancing China’s regional as well as global influence. Taiwan will also be submitting an application to join the Beijing led Asian Infrastructure Investment Bank in spite of historical hostility and absence of formal diplomatic relation between them.

In a recent revealed statement, Charles Chen, Taiwan presidential office spokesman informed that joining the AIIB would help Taiwan in its efforts at regional economic amalgamation as well as raise the possibility of linking other multinational bodies. It is unclear whether Beijing would be accepting Taiwan’s application in joining the AIIB.

The bank is envisaged as a significant obstacle to U.S. efforts, in extending its influence in the Asia-Pacific region and also in balancing the growing financial influence and assertiveness of China. Several countries inclusive of United State fail to recognize Taiwan due to pressure from China. Taiwan does not seem to be a member of the United Nations, the World Bank or the International Monetary Fund.

Several Countries to Join 

The AIIB seen as a challenge to the prevailing institutions, the World Bank and Asian Development Bank, has drawn a reply from the United State even though European U.S. Supporters whichinclude Britain, France, Germany and Italy had earlier announced that they would join the bank.

Turkey and South Korea have also informed that they too would be joining in while Brazil, one of China’s top trading partner informed that it would sign up and that there were no conditions set. The office of President DilmaRousseff mentioned in a statement that `Brazil is very interested in participating in this initiative’.

Igor Shuvalov, Russian First Deputy Prime Minister, according to an official Xinhua news agency, stated recently at a forum in Boao on the southern Chinese island of Hainan, that the country plans to join AIIB. At the same forum, according to Xinhua, Mathias Cormann, Australian Finance Minister informed that the country was planning to apply as a founder member which was later confirmed on the news agency that Georgia had also made an application.

Deadline Set for Joining as Founding Member - AIIB

Britain and Switzerland had been formally accepted as founding members of the AIIB, a day after Brazil had accepted China’s invitation to join in, according to China’s Finance Ministry. It also informed that Austria also had applied to join and had submitted their documents to China.

Taiwan’s statement has reported that China had set Tuesday as a deadline in becoming a founding member of the AIIB, encouraging a rush of nations which includes Russia, Australia, Denmark and Netherlands to indicate their intentions to join. In all 42 countries have applied.

The United States has advised the countries to think carefully about joining the AIIB till it shows adequate standards of governance as well as environmental and social safeguards. China sees Taiwan as a rebel province and has not ruled out the use of forces in bringing it under its control. Since Taiwan’s present president Ma Ying-jeou took charge in 2008, the enmity had deteriorated considerably and the two parties have signed several deals of trade and investment.

Credit Cards

Credit Card – A form of Borrowing

Credit card is one form of borrowing which involves some charges and its terms and condition could affect the overall cost. It is advisable to do some research on the terms and the fees before any agreement to open a credit or a charge card account.

 Being unaware of the terms and their charges could leave the user disappointed when faced with the overall cost they may encounter. At times shopping with the credit card could save you money on interest and fees. Issuers of credit card tend to have wide scope in charging interest though they should brief the customers on the interest rate. It is also essential for the customer to read the fine print in the original credit card agreement as well as in any supplemental copy.

As per the federal law, interest rate tends to increase on existing balances under some conditions like when a promotional rate may end and there is a variable rate or when the cardholder tends to make a late payment. The interest rate on new transaction may also increase but after the first year. If the customer is faced with an issue regarding the credit card, they should first try resolving the same directly with store or the credit card company or the financial institution.

Consumer Financial Protection Bureau

If the matter is not resolved, they could file a complaint with the Consumer Financial Protection Bureau – CFPB which presently accepts complaints with regards to credit card issues and take them up either through phone or through their site at https://help.consumerfinance.gov/app/ask_cc_complaint. For any guidance regarding credit card debt, fees and high interest rates, customers could contact a credit counselling service or debt Management Company who can render the necessary guidance and support. They could also provide practical as well as legal financial advice with regards to the use of credit. Beside this, they could also make attempts on renegotiate the terms of the credit agreements and make arrangement to pay off the debts. One needs to check on the debt management company though all arenot the legitimate ones.

Credit Card Eligibility Calculator

Some of the following credit card eligibility calculator could be helpful to individuals such as:


• Bad Credit – For bad credit scorers- Those who apply for credit card and have been rejected need not go in for the same. They should check on cards that would fit their profile and try to rebuild credit rating by using the top `bad credit’ credit card and ensure to pay in a timely manner
• Interest free spending- 0% Spending – If the need to borrow for a purchase arises, the right choice needs to be taken, credit cards are far cheaper than loans though if misused it could add debts which may be difficult to pay off
• Balance transfers – Cut existing debt costs – Shifting the prevailing credit card or store card debts to new balance transfer card could save much wherein the balance transfers when a credit card could pay off debts on other credit or store cards. Thus one owes the new card though at a lower rate which means they can be debt free much quicker.
• Travel Money – Several cards add 3% cost than the banks to the exchange rates which can be avoided by a specialist card that does not add this percentage and you get a good exchange rate. This could be used for overseas spending though one should bear in mind to repay in full to avoid the additional burden of interest.
• Balance transfers and spending – All-rounders - Most of the banks offer introduction deals to attract new customers with cards that could be either good balance transfer deals or low rates on new spending. All-rounder cards offer cheap intro rates for balance transfers as well as purchases and if a person needs to move debts from an existing expensive card as well as need to use a card for purchase, they could be checked since they cannot damage the credit score with additional applications.
• Cash back – pays when spend – The cash-back credit card tends to pay you each time you make a purchase where top cards tend to pay around 5% introductory cash-back while other offer 3% on fuel and transport spending. Besides these, there is also other good fee free; cash reward cards which are like cash-back cards offered.
• 0% Cash in Bank account – Money Transfer – The money transfer credit card enables the customer to pay money from their new credit card in the current account with a small fee wherein they get a long interest free period in repaying the debt. Should the customer fail to repay the same within the given time period, they are charged with a high interest rate.
• Get Air miles while spending – Airline credit cards are an addition of regular flyer programs and one could earn points or miles on spending as well as earn bonus for signing up. The miles earned from spending could be added with those earned from flying or by other credit card reward schemes like converting Tesco Clubcard points.

Bitcoin: Government to Regulate Crypto Currency to Avoid Money Laundering

Bitcoin – Issue of Money Laundering 

Bitcoin can be useful in purchasing thing electronically and its like conventional dollars, yen or euros which are traded digitally and its most important characteristic which makes it different to conventional money is that it is decentralized. There is no single institution that controls the bitcoin network and this puts some of them at ease since it means that a large bank in unable to control their money.

However, money laundering has become a major issue which the British government has been facing and most of the people in the government are of the belief that bitcoin and similar crypto-currencies are used by some to launder money and there is a need to regulate bitcoin exchanges. This kind of measures taken could stop their use as money laundering hubs. The Treasury is of the opinion that bitcoin has capabilities of being used for money laundering and in order to curb the issue, it wants to regulate digital currency exchanges for the very first time, though this would not mean that the government is not in favour of innovation in the nascent technology but the prevention of criminal use of the digital currency.

Anti-Money Laundering Regulation – Digital Currency Exchanges 

The UK government released a document with the combination with the announcement of UK’s 2015 budget stating its intention to apply anti-money laundering regulation to the digital currency exchanges in UK. As per the document it would be creating the right environment for legitimate players in the space to flourish though it would also ensure that a hostile environment for illicit users of digital currencies is developed to discourage the users. As per the Treasury it is reported that the Government will be regulating bitcoin exchange in order to stop its use as money laundering hubs. A report published with George Osborne’s annual budget, the Treasury has informed that the new regulation would be supporting innovation to prevent criminal acts of digital currencies and the proposals would be consulted in the next parliament session. It is said that the government would be working with the British Standards Association – BSI for the development of a set of standards which would be helpful in protecting the consumers.

New Research Initiative on Digital Currency Technology

It was also informed by the Treasury that a new research initiative on digital currency technology would be coming up, which would inject an additional 10 million pounds in the area. According to a board member of the UK Digital Currency Association, Tom Robinson, who has been involved in the Treasury’s consulation procedure that `the announcement is significant, which bring bitcoin and other block chain technologies closer to mainstream adoption’.

In the discussion published in February, Bank of England informed that the digital currencies like bitcoin portrayed considerable promise and it showed that it was possible to transfer value securely without the need of a trusted third party. Other queries were also raised by the bank on whether central banks should issue digital currencies themselves. In several developed countries, bitcoin has been regulated by existing money laundering or terrorist financing laws. Traditional financial sector regulation is not applicable to bitcoin according to European Central Bank since it does not involve traditional financial players while other the EU state that existing rules could be extended to include bitcoin as well as bitcoin companies.

Three Ways To Optimize Your Personal Finance In 2015

These days, more and more people are interested in getting their personal finances in order so that they can lead lives of economic freedom. If this is your agenda, you should note that there are numerous techniques you can implement to accomplish your objective of attaining financial freedom. Here are three simple ways to get started immediately:

1. Learn More About Trading. 

One of the great ways to optimize your personal finances in 2015 is to learn more about trading. As many financial experts know, trading is an incredibly effective way to build some substantive wealth. Unfortunately, many people are intimidated by the thought of trading because they don't have any substantive experience in this sector. If this is a challenge for you, you should note that organizations like the Online Trading Academy can help. This organization was specifically designed to provide education and assistance that will help traders obtain tangible results and improve their skill set within this sector.

2. Develop (And Stick To) A Budget.

Another strategy you should definitely consider implementing in order to optimize your personal finance in 2015 is to develop and stick to a budget. Budgets are critically important because they give you the opportunity to see how much money you're earning as well as how much you're spending on things like bills, clothes, entertainment, food, etc. Unfortunately, many people overlook the importance of developing a budget and therefore have only a vague understanding of what they're making and spending. Don't make this mistake. Instead, sit down and devise a budget that will provide you with a clear understanding of your current financial state. You can then use this information as a springboard to cultivate the type of strong financial future you desire.

3. Eat Out Less. 

As many financial experts know, many people tend to spend a substantive amount of money on eating out. If you're interested in cutting back a bit to really strengthen your personal finances in 2015, it's a good idea to consider eating out less. Instead of going out to expensive restaurants, consider the value of learning how to prepare your favorite meals for yourself. If you enjoy eating out for the social experience, be sure to invite friends over to partake in your great meals!

Conclusion 

If you're looking forward to optimizing your personal finances in 2015, you can get started right now. By using some or all of the financial tips and tricks discussed here, you will likely find yourself attaining the level of economic stability and freedom you've always wanted. Good luck!

Emerging Market Infrastructure

Infrastructure in Emerging Market

On-going rebalancing in global economic power has given rise to unprecedented involvement in investment plans in infrastructure in the emerging markets. Though there are common drivers on infrastructure increase in emerging markets like the requirement of added infrastructure together with goals of sustaining the economic growth and managing the fast growing urbanisation, there is a vast difference in the environment and the challenges faced. While engaging in these opportunities, engineering and construction operations, infrastructure management companies, private materials and financial firms need to consider on –

• Who could be the right local and global infrastructure partners?

• What would be the differences in infrastructure in funding structures?

• How would the bid occur for mega projects?

• Are there any demands for green infrastructure?


For instance, as per PwC and Oxford Economics’ Capital Project and Infrastructure spending outlook to 2025 report, the Asian Pacific market, due to China’s growth is expected to represent around sixty percent by 2025 of the global infrastructure spending while Western Europe’s share is expected to decrease to less than 10% twice as from the last few years back. Infrastructure is defined in various emerging markets with provision to insights on goals, risks and opportunities, challenges that are connected with infrastructure developments in those markets, in PwC’s Emerging Markets Infrastructure Series.

Urbanization – Trend in Emerging Market 

Urbanization is the only trend in the emerging market which means that infrastructure needs to keep up with the pace. As the income tends to rise in several countries, there is a need to indulge in the purchase of cars and roads would tend to be used with the need to have new ones built.

 According to Magee, `in developing markets, private sectors tend to play an important role financially in roads, telecom and power plants and water as well as waste water investment would be critical. Water related companies tend to have a small part of infrastructure universe though are expected to become much more significant going ahead while in Europe, they are in the early stage of transforming power generation from coal. Germany on the other hand needs to make some headway since their nuclear power plant are closing, while China will have to gradually move away from coal incorporating cleaner energy sources from power generation’.

Country Risk/Infrastructure Risk

Emerging markets are about country risk while infrastructure risk is about not taking risk though in the case of infrastructure asset sector, there are provisions of investment and growth and the emerging markets are avenues where there is a great demand for infrastructure capital. Emerging market infrastructure investment does not have to carry the full country risk of the host nation. Sovereign risk is often under the coverage of sovereign risk insurance which is purchased in the commercial market or provided by International Financial Institute – IFI, like the World Bank or any other related global institution.

The net return on sovereign risk after the insurance premiums will exhaust the yield on the credit of the surety provider and when combined with structured project risk, on properly evaded investment, the net return would not probably reach 30% though it could almost reach 20% which according to an asset-based uncorrelated investment could be quite good. Those on the lookout for yield, emerging market infrastructure investment could be part of the solution and for those with global diversification; real assets could be another option to the various listed securities.