Digital Company – No Censor http://nocensor.org/ Wed, 10 Aug 2022 12:58:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://nocensor.org/wp-content/uploads/2021/05/default1.png Digital Company – No Censor http://nocensor.org/ 32 32 the consolidation of the robotics industry – TechTalks https://nocensor.org/the-consolidation-of-the-robotics-industry-techtalks/ Wed, 10 Aug 2022 12:58:19 +0000 https://nocensor.org/the-consolidation-of-the-robotics-industry-techtalks/ This article is part of our series that explores the business of artificial intelligence This week’s big announcement in the robotics industry was Amazon’s acquisition of iRobot, the maker of the popular Roomba vacuum cleaner. The acquisition appears to be beneficial for both companies. Amazon, which is trying to break into domestic robots, surrounds itself […]]]>

This article is part of our series that explores the business of artificial intelligence

This week’s big announcement in the robotics industry was Amazon’s acquisition of iRobot, the maker of the popular Roomba vacuum cleaner.

The acquisition appears to be beneficial for both companies. Amazon, which is trying to break into domestic robots, surrounds itself with the talent and experience of one of the rare companies to have managed to survive the very harsh conditions of the consumer robotics market. And iRobot will have access to Amazon’s financial and technical resources.

What are the wider implications for the mobile robotics industry? As the industry matures, robotics companies will seek shortcuts for growth and market share. This will lead to consolidation, where small but successful robotics companies will gravitate towards and merge with large, high-liquidity technology companies.

Amazon’s Robotic Dreams

Amazon Astro robot
Amazon Astro robot

Amazon has been into mobile robots for years. In 2012 he acquired Kiva Systems for $775 million and has been using robots in its fulfillment centers for years. These efforts intensified during the pandemic, when the company faced staffing limitations in its warehouses.

But more recently, Amazon has become interested in mobile robots for the consumer market. Its first product, the Astro robot, was announced last year. Unlike the Roomba, Astro is a versatile robot that’s supposed to perform many tasks around the home, including monitoring appliances, watching out for intruders, moving drinks, and entertaining people.

From a purely scientific and robotic point of view, Astro is a marvel. Amazon engineers managed to solve very difficult challenges to get the robot to map and navigate homes and do a host of tricks. Among those who praised Astro was Rodney Brooks, one of the co-founders of iRobot and a highly regarded robotics scientist.

But nearly a year after its announcement, Astro is still struggling to find the product/market fit, where it solves one (or more) problem(s) well enough for people to choose it over alternative solutions. For now, Astro is a cool gadget for rich people who have money to waste on tech gadgets.

Building a business around household robots is very tricky. Anki, Jibo and Kuri are just a few of the household robot names that had to be shut down in recent years after failing to develop successful business models.

Amazon has a history of entering new markets through major acquisitions. And that’s where the iRobot acquisition can help Amazon.

Here is a quote from Amazon Press release on the acquisition of iRobot: “Over many years, the iRobot team has proven itself ability to reinvent oneself how people clean with incredibly convenient and inventive products, from cleaning when and where customers want while avoiding common obstacles around the home, to automatically emptying the collection bin. Customers love iRobot products— and I am delighted to work with the The iRobot team invent to make customers’ lives simpler and more pleasant [emphasis mine].”

There are a few key points in this quote from a product management perspective, especially since it comes from Dave Limp, SVP of Amazon Devices.

First, the many references to “the iRobot team” imply that Amazon cares about iRobot’s product team as much as its technology. I don’t expect Roomba’s technology to be superior to Astro or other robots that Amazon develops. But iRobot’s product team has surely proven its ability to perform over the years. That would make it more of an “acquisition,” where a large company acquires a smaller company primarily to hire its talent.

Second, the “ability to reinvent” means that iRobot has always been able to maintain its product/market fit, finding ways to ensure that its products remain valuable to its customers as competitors emerge and attempt to outperform. capture a share of its market.

Third, “Customers love iRobot products” means Amazon is also acquiring a brand that has become a household name in the nascent household robot market. All other things being equal, customers would be more likely to buy an iRobot product than a product from another brand.

And finally, the acquisition of iRobot will potentially give Amazon access to map data of millions of homes where Roomba robots have walked.

What’s in it for iRobot?

Irobot Headquarters
iRobot Headquarters, Bedford, MA (Image source: Wikipedia)

Here’s another quote from the same press release, this time from Colin Angle, President and CEO of iRobot: “Since we launched iRobot, our team has been on a mission to create innovative and convenient products that make lives of customers, leading to inventions. like the Roomba and iRobot OS. Amazon shares our passion for creating thoughtful innovation that allow people to do more at home, and I can’t think of a better place for our team to continue our mission. I’m extremely excited to be part of Amazon and see what we can build together for our clients in the years to come [emphasis mine].”

Obviously, iRobot knows that the market for robot vacuums is limited and that the company’s growth is tied to building more products.

iRobot either needs to make its Roombas do more or start expanding its product offering. In any case, she will need a large sum of money to start exploring new markets. Since July 2022, iRobot had $63.4 million in cash, but it also had $35 million in debt (an increase of zero year over year), bringing its net cash to $28.4 million. Considering the material costs of developing and testing robots, this is not enough to start a new project. iRobot’s latest project, the robot lawn mower Terra, has received only mixed success and has been put on hold.

Additionally, the company’s latest balance sheet showed iRobot had $332.1 million in debt due within 12 months compared to $87.8 million in debt due in the same periods.

iRobot’s revenue was also down 11% year-over-year and had to dismiss 10% of its workforce, which is not the kind of news that shareholders and analysts want to hear. This would make it difficult for the company to raise enough funds for its future projects.

Long story short, even with its market capitalization of $1.62 billion, iRobot has had serious problems committing to building new products. And in the growing tech industry, linear robot vacuum sales are not a very attractive growth driver.

This is where Amazon comes to the rescue. Amazon will acquire iRobot for $61 per share in an all-cash transaction valued at approximately $1.7 billion, including iRobot’s net debt. The acquisition will give iRobot some breathing room and access to Amazon’s vast financial resources, giving it ample opportunity to create new products.

Simply put, “Amazon shares our passion for building thoughtful innovation” means “we have room to burn cash and fail while we figure out what the next bestselling home robot will be.”

Market consolidation

In a way, iRobot is following in the footsteps of Boston Dynamics, which was acquired by Hyundai in 2020. The acquisition provided the very talented team at Boston Dynamics with the funding and infrastructure to produce some of its technologies , including Spot and Stretch.

The same can be said of artificial intelligence labs such as DeepMind and OpenAI, which have turned to wealthy tech companies to continue funding their hugely expensive research. DeepMind has been a division of Google (later Alphabet) since 2014, and OpenAI receives billions of dollars in funding from Microsoft in exchange for licensing its technology to the tech giant.

As the trends show, with market maturity comes market consolidation. Small companies will create new markets, but big ones will get away with it.

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Dave Ramsey says debt consolidation solves nothing. Is he right ? https://nocensor.org/dave-ramsey-says-debt-consolidation-solves-nothing-is-he-right/ Sat, 06 Aug 2022 11:00:43 +0000 https://nocensor.org/dave-ramsey-says-debt-consolidation-solves-nothing-is-he-right/ Image source: Getty Images Don’t rule out this debt repayment strategy just because Dave Ramsey doesn’t like it. Key points Dave Ramsey says debt consolidation doesn’t solve the real problem, which is your financial behavior. Although financial habits are what matter most, debt consolidation can also help. Debt consolidation is a frequent recommendation for those […]]]>

Image source: Getty Images

Don’t rule out this debt repayment strategy just because Dave Ramsey doesn’t like it.


Key points

  • Dave Ramsey says debt consolidation doesn’t solve the real problem, which is your financial behavior.
  • Although financial habits are what matter most, debt consolidation can also help.

Debt consolidation is a frequent recommendation for those trying to get their debt under control. If you’re unfamiliar with how debt consolidation works, it involves getting a new loan or credit card and using it to pay off all your debts. You then only have to make one monthly payment, possibly with a lower interest rate.

It may be popular, but there’s one finance personality who’s not a fan. When a reader asked Dave Ramsey if debt consolidation was a good way to get out of debt, his answer was an unequivocal no.

So, is debt consolidation worth it, or is Ramsey right? Let’s find out.

Why Dave Ramsey Is Against Debt Consolidation

Ramsey’s argument against debt consolidation is that it gives you the illusion of progress, without actually having done anything. As he says, “It makes you feel like you’ve really done something to change your whole financial outlook when you haven’t.”

According to Ramsey, what puts you in debt in the first place are your financial habits. That’s why he believes changing those habits is what’s important.

When you consolidate debt, you might have a lower monthly payment. You will certainly have fewer payments to manage. But in Ramsey’s view, it’s just tossing around the same old debt. You haven’t addressed the real problem, which is the behaviors that led to your debt.

What Ramsey is saying is that getting rid of debt is all about strict budgeting and creating new financial habits. He’s right there, at least with the debts caused by overspending. However, it is not fair to say that this is the problem for everyone. There are many issues that can cause debt, some that are not entirely within a person’s control, such as medical issues or sudden loss of income when living paycheck to paycheck. other.

Overall though, it’s true that getting out of debt is all about following good financial habits. But like many of Ramsey’s views, his stance on debt consolidation is extreme.

Debt consolidation can take your repayment plan to the next level

In his response to a reader on debt consolidation, Ramsey wrote that “interest rates aren’t the issue, and the number of payments you’re facing isn’t the issue.” Maybe so, but all things being equal, most people would probably accept a lower interest rate and lower monthly payments.

Those are two possibilities with debt consolidation, at least if your credit score is high enough. There are two popular options:

  • Balance transfer credit cards offer a 0% introductory APR on the balances you transfer. The introductory period can last 18 months or more with some cards, giving you some time to pay off what you owe.
  • Debt consolidation loans are personal loans intended to pay off existing debt. These give you a fixed payment term, with lenders normally offering terms of between 24 and 84 months.

Ramsey is right that there is no trick to paying off debt. If you spend more than you earn, you will end up in debt. If you consolidate that debt and then continue to spend more than you earn, you won’t make any real progress. Your now consolidated debt will increase and you will find yourself back at square one.

The key is to cut expenses and spend as much money on your debt as possible. And if you do that, debt consolidation is a great way to speed up the repayment process.

To demonstrate this, let’s say you have $5,000 in debt spread across various credit cards and are able to pay $300 per month for it. You could pay this at an 18% APR. Or, you can transfer it all to a balance transfer card with an introductory APR of 0% for 18 months. Here’s what the difference would be:

  • Without debt consolidation, your debt would cost you $5,797 and be paid off in 19 months.
  • With debt consolidation, your debt would cost you $5,150 (the original amount plus a 3% balance transfer fee) and be paid off in 18 months.

Debt consolidation will not do the work for you. You will still need to make those monthly payments and avoid any new debt. But it can help you pay off your debt sooner, reduce the number of your monthly payments and, most likely, save money on interest.

The Ascent’s Best Personal Loans for 2022

Our team of independent experts have pored over the fine print to find the select personal loans that offer competitive rates and low fees. Start by reviewing The Ascent’s best personal loans for 2022.

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Wave of consolidation pushes rivals SES and Intelsat into merger talks https://nocensor.org/wave-of-consolidation-pushes-rivals-ses-and-intelsat-into-merger-talks/ Thu, 04 Aug 2022 15:10:18 +0000 https://nocensor.org/wave-of-consolidation-pushes-rivals-ses-and-intelsat-into-merger-talks/ TAMPA, Fla. — SES and Intelsat are in active merger talks as a wave of consolidation sweeps through the satellite industry, the Financial Times reported on Aug. 4. Satellite fleet operators are discussing the structure of a potential combination to improve competition with SpaceX’s Starlink broadband constellation, the report saidciting sources who stressed there is […]]]>

TAMPA, Fla. — SES and Intelsat are in active merger talks as a wave of consolidation sweeps through the satellite industry, the Financial Times reported on Aug. 4.

Satellite fleet operators are discussing the structure of a potential combination to improve competition with SpaceX’s Starlink broadband constellation, the report saidciting sources who stressed there is no guarantee a deal will be reached.

Merged group would generate $4 billion in revenue and follow Eutelsat and OneWeb plans announced last week to consolidate their businesses.

Viasat is also close to completion its $7.3 billion plan to acquire Inmarsat this year following regulatory approvals.

Intelsat and SES won’t say whether they’re considering a merger, but both companies have acknowledged paying close attention to industry consolidation.

“We do not comment on rumors and speculation,” Intelsat spokesman Clay McConnell said.

“Nevertheless, it is clear that our industry is transforming, with new capabilities and technologies coming to market. Intelsat is focused on being a leader in this transformation. »

He said “partnerships between satellite communications companies and bringing complementary capabilities together can boost competition” in the connectivity market.

SES CEO Steve Collar made similar comments when asked about the trades reported during the company’s August 4 financial results for the second half of 2022.

Mr. Collar said, in general, “consolidation in the satellite industry is a good thing” which will help streamline the market.

“Of course, from SES’s perspective, we will only do things in the best interest of our shareholders, and we will leave it at that,” he added.

Shares of the Luxembourg-based company fell 10% following the Financial Times report, despite reporting financial results that beat analysts’ expectations.

SES generated 899 million euros ($916 million) in revenue for the first six months of 2022, down 2.1% compared to the same period last year after adjusting for exchange rates.

The decline was driven by a 7% year-on-year decline in underlying video revenue to €501 million.

Video continues to provide the bulk of the operator’s revenue, although its connectivity-focused networking business has caught up in recent years.

Underlying revenue from SES’ networks business increased by 2.1% to €387 million.

Public revenue fell 7.5% to 146 million euros for the six months to the end of June.

HSE announced August 1 that it had completed its acquisition of DRS Global Enterprise Solutions, a provider of satcom services to the US government, in a deal that would double its government business.

Group adjusted EBITDA, or earnings before interest, tax, depreciation and amortization, fell 3.8% to 545 million euros.

SES also announced a further delay for its O3b mPower constellation, the operator’s next-generation constellation in medium Earth orbit.

The operator had planned to deploy six of the 11 Boeing-built O3b mPower satellites on three SpaceX launches between July and September.

However, these satellites are now expected to be launched between October and December.

Collar said SES is going to have to “be a bit more patient than we’d like, but the good news is that we’re fully locked in for three launches this year and have a solid go-live date for [the second quarter of 2023]adding that the delay does not alter its growth trajectory.

As for Intelsat, the American company emerged from bankruptcy in February after a restructuring agreement that reduced its debt from $16 billion to $7 billion.

The operator appointed David Wajsgras as CEO in April, who was form a new management team to guide a growth strategy focused on connectivity with this reduced debt.

Intelsat and SES are also vying for nearly $9 billion in combined revenue for clearing C-band spectrum for terrestrial cellular operators.

Notably, they were also locked up a long legal battle on how these profits should be divided between them.

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Debt consolidation: good solution or terrible mistake? | Hobbies https://nocensor.org/debt-consolidation-good-solution-or-terrible-mistake-hobbies/ Wed, 03 Aug 2022 04:50:00 +0000 https://nocensor.org/debt-consolidation-good-solution-or-terrible-mistake-hobbies/ For the person in debt, a debt consolidation loan is like a lifeline. But reaching for it without knowing exactly what it’s made of could be a big mistake. The way it’s supposed to work: You pay off all your small, high-interest consumer debt with the proceeds of a new, low-interest loan whose payment is […]]]>

For the person in debt, a debt consolidation loan is like a lifeline. But reaching for it without knowing exactly what it’s made of could be a big mistake.

The way it’s supposed to work: You pay off all your small, high-interest consumer debt with the proceeds of a new, low-interest loan whose payment is less than the total of the smallest payments.

In theory, consolidation is a terrific solution for a heavy debt situation. In reality, it can force you into even more dangerous waters.

There are three ways to consolidate:

No. 1: A new, low-interest (unsecured) signature loan from an individual, bank, or credit union. If you can get it, this type of debt consolidation is ideal.

No. 2: Transfer all balances to a new credit card. Beware of excessive transfer fees or other annoying terms buried in the fine print. Interest on credit cards is always likely to increase, even when advertised as a “fixed rate”.

No. 3: A home equity loan. It sounds great to pay off your high-interest debt with money borrowed from your home equity. But that only raises the stakes. Now, if you fall behind, the lender takes your home through foreclosure.

There is another significant danger that all of these consolidation loans have in common: I call it the “double effect”. If you’ve ever lost 10 pounds and gained 20 back, you’ll understand right away. Most people who pay off all their pesky credit card balances look at those zero balances with a sense of personal accomplishment. They did something remarkable. They didn’t pay their debts, but they liked to pretend. They say they won’t use these accounts anymore but don’t close them. They leave them to “build up credit” or to provide a cushion – just in case of an emergency.

Statistics indicate that the person consolidating a new loan will enjoy zero balances for a short time, but end up charging them at all-time highs. The average period is two years. This means double the trouble because of the debt consolidation loan.

So are all debt consolidation loans prohibited? No, but they must enter with extreme caution and great consideration.

Before proceeding with any debt consolidation loan, make sure you get honest answers to these tough questions:

No. 1: Is the total consideration of the debt consolidation loan (principal and interest), and not just the monthly payment, less than the combined consideration of all the debts it will repay?

No. 2: Are the terms reasonable? If, for example, the new loan or the new credit card carries significant penalties – such as you lose the attractive interest rate if you are late once or twice – this is not reasonable. If you have to pay large loan origination fees, that’s not reasonable.

No. 3: Am I mature enough to cancel accounts that will be refunded during the consolidation process?

Except in extreme cases, the best way to deal with a load of unsecured consumer debt is to stop adding to it, work out your recovery plan, then buckle up and get to work!

You will be amazed at how quickly you can reverse your debt situation once you know exactly when you will be debt free.

This is an update to a column originally published in 2014. Mary invites you to visit her at EverydayCheap skate.comwhere this column is archived with links and resources for all recommended products and services.

Mary invites questions and comments to https://www.everydaycheapskate.com/contact/, “Ask Mary.” This column will answer questions of general interest, but letters cannot be answered individually. Mary Hunt is the founder of EverydayCheapskate.coma frugal living blog and the author of the book “Debt-Proof Living”.

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[COLUMN] Customer relieved she chose Chapter 7 instead of bundling $60,000 credit cards — https://nocensor.org/column-customer-relieved-she-chose-chapter-7-instead-of-bundling-60000-credit-cards/ Sun, 31 Jul 2022 22:35:40 +0000 https://nocensor.org/column-customer-relieved-she-chose-chapter-7-instead-of-bundling-60000-credit-cards/ [COLUMN] Customer relieved she chose Chapter 7 instead of bundling $60,000 credit cards —THE client is 50 years old and has two grandchildren living with her who are still teenagers in high school. She is married but separated. She is not divorced from her husband. They still live in the same house but they no longer treat each other as husband and wife. She takes care of her […]]]> [COLUMN] Customer relieved she chose Chapter 7 instead of bundling $60,000 credit cards —

THE client is 50 years old and has two grandchildren living with her who are still teenagers in high school. She is married but separated. She is not divorced from her husband. They still live in the same house but they no longer treat each other as husband and wife. She takes care of her two grandchildren because her daughter cannot take care of them.

The girl has her own problems and lives alone and is unable to take care of her two children let alone herself. So the client took on the responsibility of raising her daughter’s son and daughter. She shares the rent with her husband and they cover their own expenses. Pretty much, they have separate lives.

She works in the health sector as a certified practical nurse and earns $3,500 per month. This is not enough for a family of three with two teenagers. She has a 2014 Camry that she bought used and is still paying $260 a month with three years to go. When she came to see me, she told me she owed $60,000 in credit cards and was thinking of consolidating them. I said why? Obviously, she can’t afford to pay $1,900 a month in minimum payments every month to keep $60,000 worth of cards up to date. Maybe the consolidator might be able to reduce that a bit to $1,500 with lower interest and a negotiated payment plan with their creditors. If she was making $12,000 a month, she might be able to set aside $1,500 a month, but that’s the real world, not a fantasy world.

Now, with $3,500 gross per month, his net take home pay is around $3,000. That’s really not much and barely enough to pay rent, food and other living expenses for a household of three.

So, I advised him to file for Chapter 7 and wipe out the entire $60,000 in credit cards. “Start over debt-free,” I told him. It’s the right decision. She was nervous. I told her not to worry because it was the right thing to do. We went through his phone hearing last week with the Chapter 7 trustee. He asked for more documents at the hearing, but said if those documents were submitted before the next hearing scheduled for next week, he would withdraw just the matter of the calendar next week if he had no questions about the documents.

Today I informed her that the trustee called to inform her that he had no more questions and that the hearing was over and there was no need to appear next week because he took that off the calendar. She then informed me that her hours had been reduced by the hospital and her salary had gone down and that she felt really lucky that she had not opted for consolidation and instead got instant relief with l Chapter 7 case. She had nothing to pay on the $60,000 credit cards and she kept all of her assets. With her reduced income, consolidating $1,500 was a very, very big burden for her and her family.

She said she also felt lucky to have been tasked with providing home care to patients instead of caring for patients in hospital, as there were many cases of COVID-19 in her hospital. and she was afraid of getting sick. If anything happened to her, her grandchildren would have no one to turn to and they still wouldn’t be able to take care of themselves. Her eldest grandson at 15 worked part-time after school at a local restaurant, but was made redundant when the restaurant had to close due to almost no business due to the lockdown.

* * *

Disclaimer: None of the above is considered legal advice and no attorney-client relationship is created between the reader, any third party, and the attorney.

* * *

Lawrence Bautista Yang specializes in bankruptcy, business, real estate and civil litigation and has successfully represented over five thousand clients in California. Please call Angie, Barbara or Jess at (626) 284-1142 for an appointment at 20274 Carrey Road, Walnut, CA 91789 or 1000 S. Fremont Ave., Mailstop 58, Building A-10 South, Suite 10042, Alhambra, CA 91803 .

(advertising supplement)

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Consolidate now https://nocensor.org/consolidate-now/ Fri, 29 Jul 2022 14:12:04 +0000 https://nocensor.org/consolidate-now/ The S&P 500 made a brief intraday decline yesterday – very quickly cleared. Bonds strong, market breadth improving further, FOMO almost kicked in – then AAPL and AMZN earnings interpretation allowed for another secondary market to rise. Stock prices should then stagnate somewhat, but not swing into a new downtrend – not yet. There’s time, […]]]>

The S&P 500 made a brief intraday decline yesterday – very quickly cleared. Bonds strong, market breadth improving further, FOMO almost kicked in – then AAPL and AMZN earnings interpretation allowed for another secondary market to rise. Stock prices should then stagnate somewhat, but not swing into a new downtrend – not yet. There’s time, and the start of next week isn’t flashing even just orange yet. Likewise, the rally in precious metals will continue, with miners still ridiculously cheap. Crude Oil is bracing for a further rise in the $98 area while Copper is also not giving up just below $3.50. Cryptos are signaling weak entry into today’s regular session, that’s all – Monday is going to be a relatively good day across the board if today doesn’t turn out to be rosy (it won’t be rosy, but this won’t be a disaster either).

Today I am posting again (this time very briefly) an analytical synopsis usually available to premium subscribers.

Let’s get straight to the charts (courtesy of www.stockcharts.com) – today’s full article features 6 good ones.

S&P 500 and Nasdaq Outlook

The S&P 500 looks good – a bit of support and filling afterwards wouldn’t hurt, and the medium-term uptrend remains intact. Reactions to the latest earnings, forecasts and the Fed have been bullish, and I see no reason to facilitate a sharp reversal early next week.

Credit markets

HYG

HYG extended its gains, quality credits joined in, but the turn in risk should be less pronounced today. It’s not over though, but bonds would facilitate a little consolidation in equities next – one that didn’t happen yesterday, but seems to be knocking timidly at the door today.

Gold, silver and miners

Gold

The position of precious metals has improved considerably and the coming months are looking very good now. Uncomfortably high inflation, falling yields, barely rising dollar – that’s a good constellation. Feeling a pivot from the Fed.

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Public spending pressures and a divided legislature jeopardize medium-term fiscal consolidation https://nocensor.org/public-spending-pressures-and-a-divided-legislature-jeopardize-medium-term-fiscal-consolidation/ Thu, 28 Jul 2022 14:29:00 +0000 https://nocensor.org/public-spending-pressures-and-a-divided-legislature-jeopardize-medium-term-fiscal-consolidation/ France is unlikely to achieve its objectives of reducing public debt in 2026 and reducing the budget deficit below 3% of GDP by 2027 (Figure 1) as President Emmanuel Macron’s second term is about to end. This reflects rising interest payments, emergency government spending introduced in response to deteriorating economic conditions related to Russia’s war […]]]>

France is unlikely to achieve its objectives of reducing public debt in 2026 and reducing the budget deficit below 3% of GDP by 2027 (Figure 1) as President Emmanuel Macron’s second term is about to end. This reflects rising interest payments, emergency government spending introduced in response to deteriorating economic conditions related to Russia’s war in Ukraine and structural pressures on medium-term spending.

President Macron enjoys broad political support for the implementation of emergency measures to protect households and businesses from the economic slowdown and rising inflation, and to accelerate investment in energy infrastructure and military. However, political disagreement persists over his plans for reinvestment in the French nuclear sector and pension reform.

Figure 1. Moderate growth and sustained deficits pose a challenge for France’s deleveraging

Source: Ministry of Economy, Finance and Recovery of France, Scope Ratings – Follow-up report of the French Republic as of July 22, 2022

The government will find it more difficult to muster a majority of MPs to support supply-side reform

With the approval of the purchasing power package by the National Assembly on July 22, the presidential coalition known as “Ensemble” passed its first test after having lost its absolute majority in the legislative elections of June.

However, the government will find it more difficult to muster a majority of MPs supporting supply-oriented measures, anchoring productivity and competitiveness. Even so, the ruling coalition could find common ground with the centre-right – Les Républicains – to contain public spending.

Purchasing power package measures include an increase in basic retirement and disability pensions by 4% from July 1, 2022 and a cap on increases in housing rents from an index level 3.5% between July 2022 and June 2023. The law also creates a framework for the temporary restarting of a coal-fired power plant and allows an increase in the greenhouse gas emission ceilings in the event of “breach of the security of electricity supply”. The purchasing power package costs 20 billion euros (about 1% of GDP).

Challenge to offset additional spending with fiscal tightening elsewhere

The challenge for the government is that the scope to offset some of this additional spending with tighter budgeting elsewhere appears narrow despite the introduction of a strengthened governance framework for public finances in December 2021 which aims to strengthen multi-annual management and budgetary responsibility.

France has a poor record of fiscal consolidation over the past 40 years, with persistent budget deficits. Rising interest rates could further hamper the government’s plans to start reducing public debt by 2026. The government’s interest burden stands at 1.2% of GDP and will reach around 2.0 % of GDP in the medium term.

At the same time, longer-term investments are on the rise in response to Russia’s growing threat to European security. The government is taking over full ownership of Electricité de France SA at an estimated cost of €10 billion, with the utility at the heart of France’s proposed €50 billion nuclear energy investment programme.

The government is also considering an increase in the defense budget by 2030 beyond a current target of 50 billion euros by 2025 – around 2% of GDP – from 36 billion euros in 2019.

For an overview of all of today’s economic events, check out our economic calendar.

Thomas Gillet is Associate Director of Sovereign and Public Sector Ratings at Scope Ratings GmbH.

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Consumer and Business Debt Consolidation Market Size | Growth | 2022-2028 https://nocensor.org/consumer-and-business-debt-consolidation-market-size-growth-2022-2028/ Wed, 27 Jul 2022 03:35:11 +0000 https://nocensor.org/consumer-and-business-debt-consolidation-market-size-growth-2022-2028/ The Market Research Intellect recently revealed an expert research report titled “Consumer and Corporate Debt Consolidation Market – Latest Trends and Drivers 2022with premium information that encompasses the company’s market size, and therefore current patterns, dangers, conceivable results, and early segments. The market research sheds light on the vital growth momentum that is expected to […]]]>
The Market Research Intellect recently revealed an expert research report titled “Consumer and Corporate Debt Consolidation Market – Latest Trends and Drivers 2022with premium information that encompasses the company’s market size, and therefore current patterns, dangers, conceivable results, and early segments. The market research sheds light on the vital growth momentum that is expected to prevail over the 2022-2028 valuation amount. The study offers statistics on key segments in exceptional geographies, as well as an accurate mapping of the global competitive landscape. The report is metameric by varieties and applications giving position at regional, national and international levels.

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Additionally, the market report tracks global consumer and corporate debt consolidation sales in over 20 high-growth markets, in addition to analyzing the impact COVID-19 has had on the consolidation industry. consumer and corporate debt in particular. The report offers significant insights and analysis on totally different major factors such as market challenges, drivers, growth avenues, threats, and restraints.

📌 Competitive Rivalry:

The report features company profiles and provides an in-depth analysis of major companies operating in the international market. a number of squared First Main Players measure as follows:

  • Discover personal loans (USA)
  • Lending Club (USA)
  • Payment (US)
  • SoFi (US)
  • FreedomPlus (US)

Key Segmentation of the Consumer and Corporate Debt Consolidation Market:

📌 By types :

  • Credit card debt
  • Overdrafts or borrowings

📌 By request :

Small and medium enterprises, large enterprises

Scope of this report:

→» This report comprehensively segments the global Consumer and Corporate Debt Consolidation market and provides the closest approximations to the overall market revenue and hence sub-segments in entirely different verticals and regions.

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Regional Segmentation and Analysis for Growth Patterns:

Geographically, this report is metameric in certain key regions, with manufacturing, exhaustion, revenue (Million USD), market share and growth rate of Consumer and Corporate Debt Consolidation in these regions, 2016 to 2028 (forecast), covering China, USA, Europe, Japan, Korea, India, geographical region and South America and its share (%) and CAGR for the forecasted amount from 2022 to 2028.

Research methodology :

To estimate and validate the scale of the Consumer and Commercial Debt Consolidation market and many different dependent submarkets within the overall market, every square measure of top-down and bottom-up methodologies is used. Major market players are known through secondary analysis and their market shares are determined through primary and secondary analysis. Secondary sources and verified primary sources used to verify all stock allocations and distributions.

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Carnival’s capital raise could trigger a wave of consolidation in the cruise ship sector as CCL stock price falls https://nocensor.org/carnivals-capital-raise-could-trigger-a-wave-of-consolidation-in-the-cruise-ship-sector-as-ccl-stock-price-falls/ Mon, 25 Jul 2022 13:24:11 +0000 https://nocensor.org/carnivals-capital-raise-could-trigger-a-wave-of-consolidation-in-the-cruise-ship-sector-as-ccl-stock-price-falls/ To get through the pandemic, Carnival has sold and leased ships or taken on debt – Photo: Shutterstock Carnival Cruise Line (CCL) announced plans last week to sell an additional $1bn (£829m) of shares to pay off debt accumulated during the Covid pandemic. This will be the second capital increase in recent months that the […]]]>
To get through the pandemic, Carnival has sold and leased ships or taken on debt – Photo: Shutterstock

Carnival Cruise Line (CCL) announced plans last week to sell an additional $1bn (£829m) of shares to pay off debt accumulated during the Covid pandemic. This will be the second capital increase in recent months that the cruise line has initiated. The group’s share price fell the day after the announcement by 11%. So, is the party over for Carnival (CCL) and will this latest development spark a wave of consolidation in the cruise industry?

To weather the pandemic and lockdowns, Carnival (CCL) sold and leased ships or went into debt. The result is that now the balance sheet is stretched. AJ Bell analysts say the company’s valuation (based on enterprise value) isn’t much cheaper than it was before the pandemic, despite a 78% drop in the share price. the action – since December 2019 and an increase in the risks associated with the company.

Carnival Stock Price (CCL)

Unexpected decision

JThe new shares will be at the price of $9.95, and the public offering is expected to close on Monday, July 25, 2022.

“This capital raise is sure to cause concern (in fact, let’s call it panic) in the investment community,” Stifel analysts wrote in a note.

But the sale of Carnival shares could have bigger implications. Shares of Norwegian Cruise Line (NCLH) and Royal Caribbean Cruises (RCL) fell last week on fears they may also sell shares.

Carnival’s move was unexpected, analysts said, raising questions not only about its own operations but also placing uncertainty on the rest of the industry.

“When we saw the stock, we knew immediately that investors would panic and assume that any cruise-related name would likely be looking to raise equity at some point,” Stifel analysts said.

But to fully understand Carnival’s current position, it’s vitally important that we take a look at its 2019 results.

2019 and beyond

“At the time of the 2019 annual results in December of the same year, Carnival (CCL) had $518 million in cash and $11.5 billion in borrowings for net debt of $11 billion,” AJ Bell chief investment officer Russ Mold wrote in a note. Equity (or shareholders’ equity) of $25.4 billion meant the debt-to-equity ratio was only 43% and $3.3 billion in operating profit covered net interest payments. 18 times more than comfortable.”

“After two and a half years of disputes, the results for the second quarter of 2022, published in June, show $7.2 billion of available cash, but borrowings of $35.1 billion and leases of $1.2 billion. dollars to give this net debt of 29.2 dollars. bn,” Mold added.

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Mr Mold points out that heavy losses have eaten away at shareholders’ funds, so the combination of lower net assets and higher borrowings has in turn pushed the debt-to-equity ratio to 284%. And even if operating profit returns to 2019’s $3.3 billion level in 2023, as analysts currently expect, that would only cover the latest annual interest bill of $1.6 billion per year. factor of two.

Royal Caribbean Cruises (RCL) share price chart

too much debt

Sophie Laud-Yates, equity analyst at Hargraves Lansdown, said: “Companies raise money through public offerings for a number of reasons. In some cases, it is to fund growth plans. In others, it is about filling the void of operational gaps. Unfortunately, Carnival’s billion-dollar cap-in-hand campaign falls into the latter category.

Laud-Yates points out that whether or not a cruise ship leaves port, it has to pay high costs.

“The group took a hammer blow during the lockdowns. And just when we thought profit was on the horizon, continued uncertainty and rising fuel costs mean Carnival (CCL) now expects to once again report a loss for the full year,” added Laud-Yates.

After a huge slew of cost cuts, 74% capacity in operation and revenue up nearly 50% quarter-over-quarter, Carnival is finally starting to see its cash flow from operations turn positive. But despite this, the group’s debt level is far higher than analysts are comfortable with and any delay in the earnings recovery could lead to rough waters.

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The long road to fiscal consolidation https://nocensor.org/the-long-road-to-fiscal-consolidation/ Thu, 21 Jul 2022 11:09:27 +0000 https://nocensor.org/the-long-road-to-fiscal-consolidation/ VECTORJUICE-FREEPIK IIf there is one credit rating analysis that best encapsulates the fiscal challenge for the Marcos Jr. administration, it has to be Fitch Ratings’ February 2022 explanation of the negative outlook it assigned to the Philippines while by asserting its triple B investment rating. “The negative outlook reflects uncertainty about the medium-term growth outlook […]]]>
VECTORJUICE-FREEPIK

IIf there is one credit rating analysis that best encapsulates the fiscal challenge for the Marcos Jr. administration, it has to be Fitch Ratings’ February 2022 explanation of the negative outlook it assigned to the Philippines while by asserting its triple B investment rating.

“The negative outlook reflects uncertainty about the medium-term growth outlook as well as possible challenges in unraveling the policy response to the health crisis and bringing public debt down to low levels. Ifrm descending path.

The Philippine government, represented by the Secretary of the Department of Finance (DoF), Ben Diokno, is quite optimistic that business activities will resume with the lifting of pandemic restrictions and the normalization of people’s mobility. During the BSP-UP School of Economics Distinguished Lecture Series on July 18, the Chief Economic Officer expressed his belief that the economy could withstand the implications of current geopolitical events and post-pandemic shifts in the world. world. Iffinancial system.

Three days earlier, on July 15, he had assured the Group of 20 countries and the meeting of finance ministers and central bank governors of the European Union that “we have a comprehensive package of interventions to effectively balance the need to maintain growth momentum while controlling inflationary pressures and their cascading effects on the economy.

The day before, on July 14, Secretary Diokno had defended aggressive monetary tightening by the Bangko Sentral ng Pilipinas (BSP) on the grounds that the local economy remained robust enough to “absorb it”.

Confidence for more traction has been placed in recent initiatives such as the Business Recovery and Tax Incentives Act, Financial Institutions Strategic Transfer Act, Rice TariffIfcation Act and other initiatives.

RESILIENT GROWTH AND ECONOMIC SCAR
The Philippine economy remains resilient in large part due to more than 30 years of political and structural reforms that have allowed the country to reap gains in both economic efIfefficiency and total factor productivity. But it’s hysteresis, or the economic scarring of the pandemic, that could be the biggest impediment to both economic growth and Iftax consolidation.

As AMRO (ASEAN + 3 Macroeconomic Research OfIfce) The annual consultation report, published on July 20, pointed out that the prolonged closure of schools and the poor quality of online courses dependent on a weak internet connection would have serious consequences for the quality of the workforce. in the years to come. Upskilling and upskilling are imperative to achieving an effective transition to a technology-driven digital economy. Labor market mismatches could be a costly drag on the new normal imposed by the pandemic.

The closure of many micro, small and medium enterprises would also require substantial but targeted support. This is the driving force behind the unprecedented rise in unemployment and underemployment over the past two years. As a result, poverty worsened.

This is the main reason why the new medium-term budget program 2022-2028 should deliberately call for priority spending in the areas of health, disaster risk management, social security, digital economy and shovel-ready, growth-enhancing infrastructure projects. Prioritization should therefore be the buzzword, especially today, because this government’s fiscal space could continue to shrink.

PUBLIC REVENUE
But we Ifnd the fairly modest, if not unambitious, medium-term income growth.

It is programmed to fall from around 15.2% of GDP in 2022 to 17.6% of GDP in 2028. The average ratio programmed for 2022-2024 of 15.4% actually comes out even lower than the average ratio of 15.7% in the two pandemic years when the economy contracted sharply. In fact, the actual ratio for the first quarter of 2022 had already reached almost 16%.

This must be based on Secretary Diokno’s position that tax administration, rather than new taxes, is the Iffirst priority to increase government revenue which would be reflected in the new Ifconsolidation plan scal.

Experience teaches us that the path of tax administration, although paved with good intentions, can lead nowhere. Improve the valuation of real estate and simplify Ifnancial taxation will depend on its proper implementation. It’s good that the DoF has indicated its support for taxing digital services and transactions, but perhaps there should be more. As DoF Chief Economist Gil Beltran recently pointed out, it is possible to raise excise taxes on products of sin like tobacco, vapes, and alcoholic beverages.

PUBLIC EXPENDITURE
On the spending side, we are seeing some disconnect with medium-term growth targets. For 2022, the Development Budget Coordinating Committee (DBCC) is looking at 6.5-7.5% and for next year through 2028, 6.5-8%. But ironically, public spending is scheduled to drop from 22.9% in 2022 to just 20.6% by 2028.

Reducing the deficit from 7.6% in 2022 to just 3% by 2028 can only be done by increasing incomes and real GDP. But the government, adhering to an ambitious growth target, should also keep public spending very committed, rather than reduced as planned, as private sector spending is not yet self-sustaining. In short, as long as revenue grows by a margin greater than the expansion of spending, we can have a situation of robust growth and sustainable public financing. Ifnance.

Otherwise, as AMRO warned, “it would take longer to lessen the scarring effects” which have become more visible, and growth prospects could therefore be compromised.

FISCAL SPACE
Some IfFiscal space could be achieved from possible budget reassessment by individual agencies and realignment between departments andIfthese.

We believe that the Department of Budget and Management’s (DBM) previous publication to review the 2023 budget proposals is relevant.

National Budget Memorandum No. 144 calls for existing and new programs to be reassessed to ensure they meet the strategic direction for the year, are ready for implementation, consistent with absorptive capacity of each agency and aligned with the plans and priorities of the Marcos administration. These are a mouthful and require serious thought and compliance.

DBM should be genuinely committed to ensuring that national budget allocation is prudent and judicious. The Commission on Audit (CoA) has repeatedly qualified its conclusions on many public bodies with regard to their use of public funds. It is not enough for the government to be proud of its ability to increase the issuance of Cash Allocation Notices (NCAs), the use of these funds should be intensified.Ifespecially in the Iffirst half of the year when the weather is conducive to carrying out public works sites.

For example, it was reported by the CoA that due to implementation issues regarding 14 Ministry of Transport projects receiving foreign aid worth 1.61 trillion pesos in 2021, the government has was forced to pay 128.42 million pesos in additional costs.

The CoA also found that the Ministry of Social Welfare and Development failed to distribute 1.9 billion pesos of social betterment program funds during the pandemic. Moreover, it was only recently that the Department realized that approximately 1.3 families should have been excluded from the financial assistance program because they had come out of extreme poverty. Some 600,000 others should be written off.

Some disbursements worth 33.446 million pesos, according to CoA, remain unliquidated by the OfIfthis from the President for the National Task Force to End the Local Communist Armed Conflict. It remains to be seen whether a cash distribution has been made for each local government unit.

On a larger scale, some infra experts believe that many large Build, Build, Build projects could hardly be justified in terms of economic value. Interest rates charged by bilateral sources have proven to be above market. Giving a second look at these flagship projects could save the Republic billions of pesos that would otherwise have to be raised through taxes or additional borrowing, which could once again inflate the debt-to-GDP ratio.

Therefore, DBM’s directive to government agencies to streamline their individual budget proposal should result in lower overall amounts. If necessary, some realignments between and among agencies should also be made. In congressional hearings, we should see CoA officials do their due diligence on each agency’s goals and spending capacity. Special sessions should also be organized to determine the economic values ​​of large infrastructure projects in relation to their total costs and their source of financing. Media coverage should be encouraged.

STATE OF THE NATION ADDRESS
We expect to hear President Bongbong Marcos explain the details of his government’s policy Ifscal program to achieve rapid economic recovery, pandemic mitigation and a return to Ifsustainable development on Monday during the state of the nation address. If the market conIfGrowth is stimulated and investments are starting to flow in, growth should be sustained.

Going back to Fitch’s assessment, one can see the weight he places on effective government, a weight that includes good and smart governance, rule of law and control of corruption. If we fail to reduce the ratio of public debt to GDP, it could be negative while the broadening of the revenue base would be positive. The consolidation of public finances ensures a good trajectory of economic growth and promotes poverty reduction.

While we are well above Sri Lanka’s woes, this is a strategy to avoid a descent to its level.

Diwa C. Guinigundo is the former Deputy Governor of Monetary and Economic Sector of Bangko Sentral ng Pilipinas (BSP). He served the BSP for 41 years. From 2001 to 2003, he was Alternate Executive Director of the International Monetary Fund in Washington, DC. He is the Senior Pastor of Christ Fulness International Ministries in Mandaluyong.

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