Author: Helen

EU takes Ireland to court for failing to recover $15bn in Apple back taxes

Posted on by Helen

The European Commission has announced it will take Ireland to the European Court of Justice for failing to comply with an order to recover as much as €13bn ($15bn) from Apple in back taxes. The body adjudged the country had conceded the tech giant illegal benefits.

The decision to take the country to court was made on October 4, and comes at a time when various EU finance ministers are discussing ways to increase taxes and tighten rules for tech companies. This move was first promoted by France and has been backed in recent months by around 10 countries. It aims to impose heavier taxes on large tech companies, especially those with digital business, such as Google, Amazon and Apple.

The EU aims to impose heavier taxes on large tech companies, especially those with digital business, such as Google, Amazon and Apple

Now, the European Commission is taking a clear step towards tougher regulation by punishing Ireland for not following the bloc’s rules. In August 2016, the comission ordered Apple to pay €13bn ($15bn) in unpaid taxes, setting a deadline of January 3, 2017 for Ireland to recover the amount. But the country failed to take any action, and appealed the commission’s ruling to the European Court of Justice.

However, Commissioner Margrethe Vestager said in a statement released on October 4: “Such actions for annulment brought against [European] Commission decisions do not suspend a member state’s obligation to recover illegal aid… but it can, for example, place the recovered amount in an escrow account, pending the outcome of the EU court procedures.”

The dispute came to a climax last year following a three-year investigation. The probe concluded that “Ireland’s tax benefits to Apple were illegal under EU state aid rules, because it allowed Apple to pay substantially less tax than other businesses”. It continued: “As a matter of principle, EU state aid rules require that illegal state aid is recovered in order to remove the distortion of competition created by the aid.” With regards to this month’s escalation, the European Court of Justice will have the final word.

Real Estate Awards 2017

Posted on by Helen

Warren Buffett once quipped: “Risk comes from not knowing what you’re doing.” The erratic geopolitics of 2017 have established it as an unorthodox and unpredictable year for the real estate sector – one that will not end well for those who are naive and impulsive. Certainly, the unstable backdrop makes it more important than ever to pursue both shrewd and agile strategies. And yet, the broad rules of the game remain the same as ever: to succeed, it takes a calculated approach and a deep understanding of the full range of relevant economic, social, political and technological developments. Effectively, you need to know what you’re doing, and the best will be several steps ahead of the rest.

The winners of this year’s World Finance Real Estate Awards have been carefully selected to represent the leading players in the industry. We have chosen the most impressive companies from across the globe, looking for innovation and talent across all sectors. The winners have achieved outstanding results on the back of rigorous research and astute insights.

Moving on up
Above all, 2017 will be remembered for its rapidly shifting political landscape, as well as the prevalence of historically low interest rates. Against this backdrop, property is being utilised as a relative safe haven when compared with riskier asset classes. This said, the sector at large is also being supported by an increasingly convincing global recovery; at the time of print, the most up-to-date IMF forecast predicts that global output will grow 3.5 percent in 2017, and 3.6 percent in 2018.

From a very broad perspective, improving job markets, increases in wages and flourishing business are all good news for the real estate sector. Notable examples of progress on this front include US unemployment hitting a 16-year low, while Germany is witnessing its highest employment levels since reunification. Japan, meanwhile, has recently seen its job-to-applicant ratio reach an all-time high. Maury Obstfeld, the IMF’s Chief Economist, recently described global economic performance as a “broad-based” recovery, setting an optimistic tone for the sector worldwide.

Above all, 2017 will be remembered for its rapidly shifting political landscape, as well as the prevalence of historically low interest rates

Crucially, those working in real estate will be poised to react to any upcoming changes in interest rates, which in many countries have remained low for almost a decade. Indeed, it appears that central bankers worldwide are drawing up their game plans for a tightening of monetary policy. Such dynamics will have significant implications, and will prompt some important decisions in the real estate sector.

And yet, despite a somewhat turbulent market and the uncertain path ahead for interest rates, confidence in the sector remains relatively high. For instance, Inman’s industry outlook report for 2017 noted that the industry’s top executives were positive about the year. Respondents to Inman’s broader survey also expressed optimism for the future, with 27 percent stating that they were “extremely optimistic”, and 45 percent describing their outlook as “somewhat positive”.

Of course, memories of the 2008 real estate bubble and its subsequent fallout will continue to weigh heavily on the minds of investors. This said, some important lessons have been learnt. Most countries have held on to post-crisis legislation, and stricter bank regulations have gone some way to enforcing discipline on lending. Interestingly, PwC’s most recent trends report for the US speculated that what we are witnessing could be a “kinder, gentler real estate cycle”. It further noted: “In a real sense, the reverberations [from the crash] continue. Real estate transaction volume across the [US has] rebounded, but development remains below historical norms for most property types… Overall, there is a sense that real estate has learned painful but valuable lessons. This time, real estate will not likely be the trigger for a business cycle recession.” In addition, it is important to note that US macroeconomic data implies that there is little sign of overheating.

New disruption
Disruption in the real estate sector is usually restricted by the relatively unchanging rules of brick, steel and concrete. Yet, increasingly, technological advancements appear to be making their mark, and could be driving fundamental change in the sector. Indeed, technology is impacting everything from leasing efficiency to the ways in which spaces are used. For instance, respondents in PwC’s Emerging Trends Europe report noted that they have seen a shift towards shorter leases and flexible segmented leases.

At the same time, there has been a jump in the number of shared office providers who deliver office space as a service, such as WeWork and TOG. According to data from The Instant Group, the flexible office space market is worth $20bn, and it has seen a compound growth rate of 21 percent over the past five years. Summarising this trend, PwC’s report noted: “This is very much a human behavioural shift, the changing way people interact with real estate: it is the emergence of the sharing economy and with it, a focus on access over ownership.”

But this is just one of many ways that technological advances might prove disruptive. Another trend that has attracted a lot of attention recently is the idea of leveraging virtual reality technology to achieve greater efficiency within the real estate sector. More specifically, the technology could be used as a tool for agents to show potential leasers a space: people could be taken on 3D virtual tours of a property, while apps could be programmed to give customers a comprehensive insight into a living space. Such technological leaps will have a broad range of interesting implications for those working in the sector, many of which are difficult to predict.

Ultimately, those in the real estate sector will need to be agile in order to stay ahead of the curve. Not only must they have to carefully navigate sharp changes in the economic climate, but they must also grapple with fundamental shifts in the ways people interact with space. This involves a high level of skill, especially given that competition and disruption could come from all angles. The World Finance Real Estate Awards recognise those who stand out from the competition and are able to drive progress in the sector.

World Finance Real Estate Awards 2017

Europe
Most Sustainable Developer
Turkmall

Best Residential Developer
Aristo Developers

Middle East
Most Sustainable Developer
Diamond Developers

Best Residential Developer
Damac Properties

North America
Most Sustainable Developer
Cadillac Fairview

Best Residential Developer
Holland Partner Group

Latin America
Most Sustainable Developer
G&D Developers

Best Residential Developer
IRSA

Asia
Most Sustainable Developer
Paramount Land

Best Residential Developer
Paramount Land

GCC Investment and Development Awards 2017

Posted on by Helen

Since last year’s awards, an upswing in oil prices has provided some much-needed respite to the economies of the Gulf Cooperation Council (GCC). While oil prices are nowhere close to the highs seen during the commodity-boom of the 2000s, they were substantially boosted by the output cut instigated in December by the Organisation of Petroleum Exporting Countries (OPEC). Since the agreement, the crude price per barrel has hovered at around $50. And yet, the recent price slump has left its mark on the economies of the GCC, and according to the IMF, growth across the region is projected to reach just 0.9 percent this year.

A pick-up in economic momentum is expected to come into force in 2018, however, with aggregate growth forecast to surge to 2.5 percent. Individual growth projections for 2018 stand at 4.4 percent for the UAE, 3.8 percent for Oman, 3.5 percent for Kuwait and 1.3 percent for Saudi Arabia.

Encouragingly, the IMF’s Regional Economic Outlook noted that growth is being supported by a fundamentally strong financial sector, as well as an improvement in the non-oil private sector. Of course, the financial sector always constitutes an important foundation for economic development, but nowhere is this more apparent than across the Gulf economies, where a huge effort in diversification is crucial to securing future prosperity. Against a background of fast-paced change, there are numerous exciting developments in the investment space across all six kingdoms. The World Finance GCC Investment & Development Awards 2017 have carefully selected those that have been most successful in driving development.

The financial sector always constitutes an important foundation for economic development, but nowhere is this more apparent than across the Gulf economies

A taste of vulnerability
This economic momentum in the short term comes as welcome news, but there are still risks on the horizon. Firstly, while the OPEC agreement was a major breakthrough for oil producing countries, the support it has provided to oil prices could still be undermined by producers outside the agreement, such as those in the US. What’s more, geopolitical forces are creating an externally unstable environment, which could prove damaging for those who have investments outside the region, and could also pose a threat to domestic economic dynamics. Indeed, while an increasingly convincing global recovery appears to be materialising, there are countless uncertainties ahead, including numerous trade disputes and political insecurities. What’s more, the outcome of the Paris Agreement will also be a crucial factor in determining the future of finance for those in the Gulf region.

On the domestic front, it is universally acknowledged that the key to economic sustainability and stability in the area is a stringent diversification plan. As was concluded in the IMF’s outcome document for 2016’s annual meeting of Arab Ministers of Finance: “Greater economic diversification would unlock job-creating growth, increase resilience to oil price volatility and improve prospects for future generations. It would also broaden the base for government revenue, thereby reducing the reliance on oil and making the economy more resilient to oil price shocks.”

This vulnerability to price shocks came to a head during 2016, when a sharp dip in commodity prices led to a subdued year for all six economies of the GCC. Saudi Arabia was hit particularly hard, with growth for the year falling to 1.4 percent, down from 4.1 percent the previous year. Across the entire region, the drop in commodity prices not only acted to stifle government revenues, but also had indirect effects on economic conditions across the region due to fiscal retrenchment and lower liquidity levels in the banking sector.

Luckily, the financial sector was able to escape relatively unscathed and looks set to bounce back. According to the IMF’s Regional Economic Outlook: “For the most part, banks within the region are stable, liquid and adequately capitalised. However, given five consecutive years of subdued growth, along with an uncertain outlook, these banks face a challenging environment, particularly with relatively high levels of non-performing loan ratios.”

A vision for the future
While short-term vulnerabilities are being felt at present, it is the long-term prospects of GCC states that are perhaps the most pressing for investors in the region. From a wider perspective, it is vital to foster the growth of non-oil sectors in order to ensure an economic future for the GCC that will succeed even after oil reserves have been depleted. Crucially, a sustainable source of employment and growth must be generated, which will require continued support and financial backing from investors. It will also require a huge policy effort from governments, as the strengthening of institutional frameworks is a necessity in order to unlock the potential private sector.

As the first edition of the World Bank’s Gulf Economic Monitor report notes, a large-scale challenge for the GCC economies is to implement and sustain structural reforms. Over recent years, every country in the region has initiated ambitious visions for the future. Indeed, the UAE’s Vision 2021, the Saudi Vision 2030, Qatari National Vision 2030, Oman’s Ninth Five-Year Development Plan, the New Kuwait 2035 Strategy, and Bahrain’s Economic Vision 2030 all follow a similar thread, placing a heavy focus on the role of the private sector, diversification and targeted investment strategies. Such reforms will prove a vital foundation for the economic climate of the future.

The recent rise in oil prices has led to an improvement in the fiscal position of the GCC states, which appears to have opened up space for greater policy attention to be directed towards more substantive reforms. Several strategic reforms were highlighted by the World Bank’s special focus report: “Key fiscal and public sector reforms include improving the management of hydrocarbon wealth to insulate the budget from volatility in energy prices and to enhance fiscal sustainability, building more effective and inclusive public sector institutions, reconfiguring the way that oil wealth is shared with citizens to strengthen incentives for diversification, and building safety nets to alleviate the impact of reforms on citizens.”

If such reform agendas are credibly implemented, they will act to boost investor and market confidence. What’s more, the World Bank emphasised that a virtuous cycle could be set in motion, bringing a self-reinforcing combination of stronger investment, including FDI, and output growth.

The World Finance GCC Investment and Development Awards aim to celebrate those that are leading the diversification effort and contributing towards the creation of a virtuous cycle of investment and growth. With this in mind, the World Finance team of in-house experts has scoured the industry and consulted a number of indicators to draw up the final list of winners.

 

World Finance GCC Investment and Development Awards 2017

Individual Awards
Business Leadership & Outstanding Contribution to Islamic Finance
Sheikh Dr Khalid Thani A Al Thani
Chairperson & Managing Director of Qatar International Islamic Bank, Qatar

Excellence in Social Development
Sheikha Hanadi Nasser Bin Khaled Al Thani
Founder and Chairperson of Amwal, Qatar

Banker of the Year
Mohammad Nasr Abdeen
CEO of Union National Bank, UAE

Best Financial Lawyer
Sheikha Haya Al Khalifa
Principal Partner at Haya Rashed Al Khalifa Attorneys, Bahrain

Companies
Best Sovereign Wealth Fund
Qatar Investment Authority, Qatar

Best Integrated Solar Energy Company
Qatar Solar Technologies, Qatar

Best SME Finance Programme
Qatar Development Bank, Qatar

Best Private Equity Company
KFH Investment, Kuwait

Best Insurance Company
Tawuniya, Saudi Arabia

Best Transaction Advisory Company
KFH Investment, Kuwait

Best Investment Research Company, Kuwait
KAMCO Investment Company, Kuwait

Best Asset Management Company
KAMCO Investment Company, Kuwait

Best Sharia-Compliant Direct Investment Company
Mohammed Al Subeaei & Sons Investment Company, Saudi Arabia

Best Diversified Investment Company
Mohammed Al Subeaei & Sons Investment Company, Saudi Arabia

Best Socially Responsible Investment Company
Mohammed Al Subeaei & Sons Investment Company, Saudi Arabia

Best Islamic Bank
Kuwait International Bank, Kuwait

Best Customer Acquisition
Kuwait International Bank, Kuwait

Best Retail Bank
Union National Bank, UAE

Best Industrial Development Company
Industries Qatar, Qatar

Best Financial Legal Team
Haya Rashed Al Khalifa Attorneys at Law & Legal Consultants, Bahrain

Best Employee Development
Amwal Qatar, Qatar

Best Investor Relations
Qatar Investment Authority, Qatar

Best Fund Management Company
National Investments Company, Kuwait

Capital.com’s innovation: can artificial intelligence combat behavioural biases?

Posted on by Helen

In spite of the considerable funds that are at stake, trading is one of many domains of human activity to be affected by cognitive biases. What traders believe are valid judgements may in fact be the results of effort-saving mechanisms by the brain. Supposedly rational decisions may stem from mental shortcuts that ignore chunks of information, which can then have a significant impact on traders’ results.

Recent research in behavioural economics has identified dozens of common biases that can impact investment choices and practices. One of the most common is the disposition effect, where traders choose to sell and make profit on shares that have been going up in price for some time, while holding onto shares that are in steady decline, waiting for them to bounce back. Statistically, this does not make financial sense: the shares that are rising in price are more likely to continue to rise in price over the next six months than those in free-fall are to stage a recovery.

In a research paper entitled Do Losses Linger? Evidence from Proprietary Stock Traders, researchers Ryan Garvey, Anthony Murphy and Fei Wu examined how professional stock traders on the Nasdaq are influenced by their recent trading performance. They found that when the traders incur morning losses, their desire to recoup these losses before the close of trading leads them to trade more aggressively in the afternoon. According to the paper: “An analysis of individual trading performance shows that traders who are more influenced by their prior trading losses perform far worse than those who are less influenced.”

When the traders incur morning losses, their desire to recoup these losses before the close of trading leads them to trade more aggressively in the afternoon

Other widespread biases include overconfidence, which leads us to rely more on our own reasonings or feelings than on experts’ accurate investment forecasting, and the status quo bias, which sees investors prefer – sometimes irrationally – to stick to their established portfolio rather than make changes.

According to Viktor Prokopenya, a venture investor and founder of VP Capital: “Human beings are not specifically designed to trade on the financial markets. The evolutionary process has programmed us to strive for survival and nutrition. In comparison, global capital markets are a quite recent invention, and so our behavioural patterns are not adequate for the financial market habitat.”

AI for hedge funds and retail investors
It’s been some time since professional traders first started using computers to assist or even replace them in the increasingly complex global financial markets. Algorithmic trading now accounts for nearly 90 percent of the market, according to research by Morton Glantz and Robert Kissell. While high-frequency trading tools are designed to buy and sell financial instruments in fractions of a second, artificial intelligence (AI)-based models look for the best trades hours, days, weeks or even months into the future.

Many funds are now moving towards true machine learning. Just some of the pioneers in this field are Bridgewater Associates, Renaissance Technologies and the Medallion Fund at Renaissance. The latter has had an annualised return of roughly 35 percent for more than 20 years – one of the best records in investing history, according to investment forum Nanalyze.

Another hedge fund fully run by AI was launched by Babak Hodjat, a computer scientist who helped lay the groundwork for Apple’s Siri. “For me, it’s scarier to be relying on human-based intuitions and justifications than relying on purely what the data and statistics are telling you,” he said in an interview with Bloomberg.

Furthermore, a host of start-ups are also fuelling the AI trend. These include names such as Alpaca, Binatix, Sentient, Walnut Algorithms and Capital.com.

The latter, which launched this year after receiving a $25m injection from two major investors – Prokopenya being one of them – is one of the first to have made AI available to retail investors, whose operations are more influenced by cognitive biases than those of professional teams, according to the company’s COO, Anastasia Akula.

The Capital.com app is similar to the US’ Robinhood or Europe’s Trading212, but has a specific AI-powered function that provides investors with tailored content based on behavioural analysis. Dubbed SmartFeed, this function helps users identify common trading biases and behavioural patterns, and provides them with relevant educational content whenever these biases are detected.

Speaking to World Finance, Akula described the core functions of the app’s AI features: “SmartFeed monitors the user’s trading activity, providing all the necessary data, analytics and educational materials. Analysing this data, the application will identify the cognitive biases that seem to influence the trader’s behaviour, and alert the trader about them. The app can also make financial calculations based on available data and provide educational materials to fix the biases. Thus, users can avoid the mental traps that humans tend to fall into while trading, and make more rational investment decisions.”

Artificial intelligence-based models look for the best trades hours, days, weeks or even months into the future

Akula’s argument has recently been corroborated by Italian researchers who found that by reminding traders of the existence of behavioural biases, their performance on the trading floor tended to improve.

Furthermore, it is important to note that individual traders are often more exposed to the consequences of cognitive biases than professional trading teams. Akula said: “It is a fact that individual traders have approximately the same numbers of profitable and losing trades as professional teams. However, the amounts of lost money are much higher with individual investors as a rule. This is the result of the disposition effect, which is not the case for professional traders. Our technology helps traders to avoid these disproportions.”

Can AI be trusted?
AI can be efficient in trading because of the large volumes of well-structured data available. “Finance does have such data, in contrast with many other sectors where the benefits of AI are overhyped,” said Prokopenya.

However, the recent evolutions affecting social networks, the media, politics and other spheres have also taught us that AI itself can be biased. A study conducted by Tolga Bolukbasi, Kai-Wei Chang, James Zou, Venkatesh Saligrama and Adam Kalai in 2016 noted: “The blind application of machine learning runs the risk of amplifying biases present in data.”

This is not to mention cases of computer trading programs running amok, generating huge losses on the stock exchange, as has happened several times in the world’s largest exchanges.

When asked if she believes that one day AI could replace human brains to such an extent that traders will be able to earn money while sleeping, Akula replied: “I hope this will not happen soon and we will still have our jobs in the sector. But, honestly speaking, the technology is developing rapidly. There are already algorithms that trade autonomously and more efficiently than humans. Our team at Capital.com works effectively to provide our clients with the latest cutting-edge technologies and AI solutions.”

The lesson? To let AI help us make more conscious and informed decisions, without allowing computers to fully replace our brains. Artificial or not, this combination may be the definition of true intelligence.

Uber changes board structure in a bid to strengthen its governance

Posted on by Helen

Uber’s board of directors has approved a series of changes in the company’s governance. The move comes after numerous scandals that have threatened the firm’s reputation, including a lawsuit by investors against its former CEO, Travis Kalanick.

The overhaul in Uber’s company structure, which was agreed on October 3, paves the way for an investment from Japan’s SoftBank, estimated by TechCrunch to be worth around $10bn.

As part of Uber’s transformation, six additional directors will be added to the current 11-member board: three independent, one new chair and two more from SoftBank.

The overhaul in Uber’s company structure paves the way for an investment from Japan’s SoftBank

According to The Wall Street Journal, SoftBank invested around $1.25bn in Uber last year, and now it could disburse an additional $9bn in shares from other investors and employees.

Furthermore, decisions taken in Uber’s latest board meeting included the withdrawal of ‘supervoting rights’ for some investors, meaning that from now on, all shareholders will have equal voting power. In practice, this means putting a limit on Kalanick’s influence over the company.

These changes came after Kalanick named two new directors without consulting any other members of the directive group. Kalanick was forced to resign as CEO in June after a series of missteps, including the controversy surrounding the company’s use of ‘Greyball’ software, which helped drivers avoid controls and accusations of sexual harassment.

In addition, the company’s new CEO, Dara Khosrowshahi, is facing trouble in London, where transport authorities recently decided to withdraw Uber’s licence. Furthermore, on October 2, the company’s London-based Regional General Manager for Northern Europe, Jo Bertram, stepped down from her position. According to the Financial Times, Khosrowshahi, who was appointed in August, is personally trying solve these issues.

In addition to these challenges, Uber’s board now faces a new trial: on October 3, the board set a deadline to make the company public by 2019.

China orders the closure of North Korean businesses following UN sanctions

Posted on by Helen

China has announced that all North Korean businesses and individuals operating within its borders must shut down by January. The Chinese Ministry of Commerce formally announced the move, which follows the latest round of UN sanctions, on September 28.

In total, the United Nations Security Council has issued nine sets of sanctions against North Korea since 2006, with the latest resolution being passed on September 12. China has now confirmed that North Korean firms will have 120 days to cease operating, starting from this date. Joint business projects between China and North Korea will be subject to the same ruling.

China’s decision to rein in North Korea will be viewed by some as long overdue, particularly with Pyongyang ramping up its missile programme in recent months

China’s decision to rein in its economic partner will be viewed by some as long overdue, particularly with Pyongyang ramping up its missile programme in recent months. US President Donald Trump, in particular, has been a fierce critic of Chinese inactivity, accusing the Beijing government of foregoing its responsibility as a peacekeeper in the region.

“I am very disappointed in China,” Trump said on Twitter. “Our foolish past leaders have allowed them to make hundreds of billions of dollars a year in trade, yet… they do NOTHING for us with North Korea, just talk.”

With more than 80 percent of North Korea’s trade estimated to take place with China, the latest sanctions could finally make leader Kim Jong-un take notice. The recent restrictions will further increase North Korea’s economic isolation, but they are not comprehensive. Non-commercial activities are exempt and China is still able to trade oil with the reclusive communist state, albeit in limited quantities.

Members of the US Government have welcomed China’s policy announcement, marking a clear shift in attitude away from some of Trump’s fiery rhetoric. It perhaps comes in recognition of the fact that, even as tensions rise on the Asian peninsula, neither party is keen for military action to begin.

Toshiba agrees to $17.7bn sale of its chip unit

Posted on by Helen

September 28 served as a milestone moment in Toshiba’s struggle to regain its financial footing, as it signed a legally binding agreement over the sale of its memory chip unit, Toshiba Memory Corporation (TMC), to a group led by Bain Capital.

The agreement acts to officially approve the sale of all shares of TMC to Pangea, a special purpose acquisition company that is controlled and led by Bain Capital. The final price tag for Toshiba’s prized chip unit is $17.7bn.

The deal comes after a protracted eight-month bidding war, which involved a string of legal disputes and complex network of rival contenders.

The deal between Toshiba and Pangea comes after a protracted eight-month bidding war, which involved a string of legal disputes

The Bain-led consortium includes US tech giants Apple and Dell, alongside South Korean chipmaker SK Hynix and lens manufacturer Hoya. Toshiba will also reinvest JPY 350.5bn ($3.1bn).

In total, US investors will contribute JPY ‎415.5bn ($3.69bn), but will not receive voting rights or common stock. After the transfer, more than half of stock in Pangea will be held by Japan-based companies, something that Toshiba said was set to continue into the future.

Once the shares are transferred, Bain Capital and the management at Toshiba’s chip unit will “lead TMC’s business operations to secure continuous growth”, according to a press release from Toshiba.

While the deal has now been confirmed, it will still be subject to approvals over competition and national security laws. It could also run into difficulties over Toshiba’s joint venture partner Western Digital, which is seeking an injunction to block the deal over a contract dispute.

If all goes to plan, however, the deal is expected to close officially by the end of March next year.

Europe’s banks urgently need a regulatory rebalancing

Posted on by Helen

With the eurozone finally back on the recovery path across the whole bloc, EU policymakers should move to the next pressing item in their agenda: financial regulation.

In the wake of the financial crisis, authorities introduced a set of requirements – applicable indiscriminately to the whole banking sector – that occasionally overlap with one another, creating confusion and excessive burdens to lenders with no added benefits. European regulators should thus follow the approach taken by their US counterpart and focus on streamlining these norms, especially with regards to their one-size-fits-all implementation.

The need for balance
On June 12, the US Department of the Treasury published a report entitled A Financial System That Creates Economic Opportunities: Banks and Credit Unions. The paper was issued in response to the executive order signed by President Trump on February 3, which contained seven core principles aimed at improving banking and financial regulation and promoting economic growth.

This highly detailed report acknowledges the importance of adequate financial regulation in order to prevent further crises. However, it also condemns the complicated oversight structure currently in place, caused by the creation of multiple regulatory agencies with overlapping mandates. The authors of the papers therefore call for a “sensible rebalancing” and have put forth 106 detailed and specific recommendations aimed at improving and simplifying the regulatory framework.

Banking regulations often overlap with one another, creating confusion and excessive burdens to lenders with no added benefits

According to the report, this rebalancing is critically important. The report explains that the implementation of such banking and financial regulations “created a new set of obstacles to the recovery by imposing a series of costly regulatory requirements on banks and credit unions, most of which were either unrelated to addressing problems leading up to the financial crisis or applied in an overly prescriptive or broad manner”.

Furthermore, according to the report: “The sweeping scope of and excess costs imposed [by regulations] have resulted in a slow rate of bank asset and loan growth.” Moreover, “small business lending has been one of the most anemic sectors, barely recovering to 2008 levels. By comparison, origination rates for large business loans are at record levels… The lack of tailoring and imprecise calibration in both capital and liquidity standards have diminished the flow of credit to fulfill loan demand”.

Herd mentality
The authors dedicate an important part of the document to community banks and credit unions (the US equivalent to less significant institutions (LSIs) in Europe, Banche di Credito Cooperativo in Italy and Raiffeisenbanken in Germany and Austria), highlighting their importance with regards to financing and services for households and small and medium-sized enterprises (SMEs).

Now, the definition already indicates a different approach to and respect for the banking sector in general, and local and regional banks in particular, which are among the main lenders to SMEs in Europe, as in the US. But this is not enough: it is clear that each LSI does not pose any systemic risk and therefore could overall be subject to simpler rules. Nevertheless, recently the heads of the Single Supervisory Mechanism publicly stated that smaller banks are “systemic as a herd”.

Therefore, imagine the feelings of those who work in a small or medium European bank. Besides being considered ‘less significant’, they must also comply with almost all the rules applied to a large group because they are part of such a herd. At the same time, the report underlines that, in the US, the “Treasury strongly supports efforts to further enable our community bank and credit union sectors”. It also noted: “Treasury recommends that the overall regulatory burden be significantly adjusted. This is appropriate in light of the minor complexity and lack of systemic risk of such financial institutions.”

Banking rules should really be relevant to the size and complexity of banks

Following America’s lead
The very strong arguments for a sensible rebalancing of the regulatory framework are coherent with the frequent arguments by bankers in close contact with the real economy. Regulations themselves are not the cause of a restriction in lending to smaller counterparties – rather, their excess, overlaps, inadequate coordination and intention to heavily reduce banks’ risk-taking are. These factors curb the overall growth of the economy, as SMEs account for more than 99 percent of the total number of enterprises in Europe.

I am not, therefore, proposing the non-application of the Basel III standards and other rules for all banks with assets below $10bn, as indicated in the US Treasury report. I simply recommend the significant and concrete application of the principle of proportionality – namely, the rules should really be relevant to the size and complexity of banks.

Moreover, the US has a population slightly lower than that of the euro area, but twice as many lenders. Regardless of this situation, there is no mention in the report that the number of banks is excessive, assuming that the number of operators in any sector is determined by the market and not by the regulators.

So, it appears that Article 119 of the Lisbon Treaty is sometimes forgotten: EU member states’ economic policies are “conducted in accordance with the principle of an open market economy with free competition”.

I very much hope that European political authorities will undertake the same in-depth studies, rigorous analysis and engagement with the different views as their American counterparts did. This will allow them to assess the potential revision of European banking and financial industry regulations, giving appropriate recommendations to regulatory authorities based on concrete evidence.

Eminem royalties to be made available to fans

Posted on by Helen

Royalty Flow, a new US company aimed at acquiring and managing royalty interests in the music industry, will make it possible for the public to invest in part of Eminem’s song catalogue, the firm announced on September 25.

The music start-up, which is owned by Royalty Exchange, the online marketplace for music royalties, is looking to raise between $11m and $50m in a public offering of some of the rapper’s copyrights, the Financial Times reported. The company agreed to acquire a 25 percent slice of the holdings of Jeff and Mark Bass, Eminem’s first producers, and will now allow music fans to take part in the business.

Royalty Flow is looking to raise between $11m and $50m in a public offering of some of Eminem’s copyrights

Assets will be put within the public’s reach through a ‘mini IPO’. Royalty Flow has filed for a Regulation A+ offering, a type of crowdsourcing aimed at allowing small firms to raise funds, which was introduced in 2012, Bloomberg said. The next step for Royalty Flow – if the offering performs as expected – is to be listed on Nasdaq.

“This is a unique opportunity for investors to earn dividends from one of the most iconic assets in the world,” wrote the parent company, Royal Exchange, in a statement published on its website.

The firm highlighted three main features of the opportunity: the fact that it constitutes a unique investment vehicle for ordinary investors in the industry; the promising future for revenues in the sector; and the additional “cherry-picked assets” that the company plans to offer in the future.

For now, its main asset – future royalty income from Eminem songs – looks promising. In 2016, the Bass brothers made approximately $5.1m from their Eminem copyrights.

The music industry has seen very few disruptions of a similar nature in the past, although one such example was introduced by David Bowie in the 1990s, when he sold asset-backed securities. The so-called ‘Bowie bonds’ allowed investors to share the singer’s future royalties for a decade.

US and Caribbean insurance companies face a potential $145bn bill following hurricanes

Posted on by Helen

The financial toll of the three hurricanes that hit the US and the Caribbean in the past few months could reach as much as $145bn in insured losses, according to estimations by different catastrophe modelling companies.

The latest storm was Hurricane Maria, which made landfall on September 20 and has been called the worst storm to hit Puerto Rico in almost 90 years. The storm also hit Dominica with heavy rains and winds of up to 175mph, reaching category five – the highest on the Saffir-Simpson scale, which is used to measure the potential damage of hurricanes.

The ferocity of this storm alone resulted in estimated economic damage of between $40bn and $85bn in insured losses, according to catastrophe modelling company AIR Worldwide. The high end of this scale compares with the $82bn losses caused by Hurricane Katrina in 2005.

Hurricane Maria caused significant insured losses, but the figure would have been bigger if more Puerto Ricans had their goods protected

According to The Wall Street Journal, these figures include the estimated damage to vehicles, residential, commercial and industrial properties, opportunity costs for businesses, and additional living expenses. The cost of rebuilding infrastructure was another factor added to AIR Worldwide’s estimations.

Although Hurricane Maria caused greater insured losses in comparison with the almost simultaneous hurricanes Harvey and Irma, the figure would have been bigger if more Puerto Ricans had their goods protected. Roughly half of homes in the country are insured in some way, a figure below the average in the US, AIR Worldwide said.

Meanwhile, the economic toll for Hurricane Irma is estimated at between $25bn and $50bn in insured losses, according to Fitch Ratings. Although the firm said the damage caused by the storm in Florida was “substantial”, it added that Irma’s path tempered the impact. Fitch Ratings’ numbers were comparable with further calculations made by other companies operating in the sector.

In August, Harvey was the first of the three recent hurricanes to make landfall. Texas and Louisiana were the most affected areas at this time. Losses caused by flooding and high winds rose to $10bn in insured goods, according to AIR Worldwide data, although an estimation by analytics firm Corelogic gave lower figures for the damage, at $6.5-9.5bn.

With such significant losses – which are even bigger if uninsured properties and goods are taken into account – hurricanes have certainly impacted the wider US economy. Consumer spending and industrial production have seen slight declines, according to official estimates. However, the Fed left its forecast of 2.2 percent growth for the third quarter unchanged.

In Puerto Rico, it is still too early to see the full impact of Hurricane Maria on economic indicators. However, the hurricane is also expected to have damaged the country’s economy, which is already struggling with financial obligations and is suffering a population exodus.

Michael Kors to buy Jimmy Choo for $1.2bn

Posted on by Helen

On July 25, luxury fashion pacesetter Michael Kors announced it has agreed to purchase footwear and accessories specialist Jimmy Choo for $1.2bn. The deal will see Jimmy Choo shareholders receiving 230 pence ($3) per share.

The announcement comes amid lackluster sales results at Michael Kors and a substantial dip in its share price. In May, the company announced it would be closing 125 retail outlets – 15 percent of its stores – amid disappointing sales forecasts.

The acquisition will provide Michael Kors with an opening into the fast-expanding luxury footwear and accessories market

Michael Kors’ decision to unite with Jimmy Choo could bring the company a new set of customers and, perhaps most importantly, the momentum behind the Jimmy Choo brand. Jimmy Choo is now 20 years old and, according to Michael Kors’ press announcement, represents an “empowered sense of glamour” and a “playfully daring spirit”.

The acquisition hopes to tap into more than just this brand image: it is also expected to provide Michael Kors with an opening into the fast-expanding luxury footwear and accessories market. It could also provide an enhanced presence in international markets, with Asia being key focus for future growth.

The merger is expected to boost Jimmy Choo sales to $1bn, as well as create an as yet uncalculated quantity of “long-term operational synergies”, according to the press release.

CEO of Jimmy Choo Pierre Denis commented: “We are convinced that there is so much more that can be delivered in the years ahead… Our two companies share the same vision of style and trend leadership. Our luxury heritage is the foundation of Jimmy Choo and we will continue to bring our brand vision to consumers globally.”

The deal, which has been approved by both boards of directors, is scheduled to close in the final quarter of 2017. Before becoming official, however, it must be approved by Jimmy Choo shareholders, who make up 75 percent of share capital and therefore collectively have the final say.

Project Finance Deals of the Year 2017

Posted on by Helen

Last year, Tiwi-MakBan, a Philippines-based geothermal energy project, launched with the first ever green bond issuance in the Asia-Pacific region. The project, backed in part by the Asian Development Bank, will carry out the rehabilitation of two of the biggest geothermal facilities in the world, creating 390 MW of clean renewable power for the Luzon grid.

The scheme will play a key role in meeting the nation’s rapidly growing energy needs, and has created an important precedent for the use of green bonds in the region. The venture is a classic case of how certain projects in the sector are driving ahead in spite of challenges, while turning towards more green investments and finding new and innovative ways to tap into private funds.

Despite uncertainty caused by global political events and persistently low commodity prices, the past year has seen the conclusion of a wide array of impressive projects and deals. World Finance looks to recognise those who have shown versatility and vision in the face of persistent challenges in the sector.

As always, the project finance sector is dictated by the march of technology, the twists and turns of commodity prices, and influential political events

The immense task of drawing up a project and carrying it through to completion requires remarkable leadership and ambition, ultimately forming vital pieces of infrastructure that are the bedrock of economies all over the globe.

The Project Finance Deals of the Year celebrate those that stand out for breaking new ground and driving forward with the biggest and most exciting projects, and provides a comprehensive list of the most noteworthy projects and deals that have taken place in the sector over the past year.

Project pursuit
This year, the need for large scale infrastructure investments has dominated headlines. For one, the Asian Development Bank estimated that developing Asia must invest $1.7trn per year in infrastructure until 2030 in order to maintain its growth momentum, tackle poverty and respond to the issue of climate change. Even assuming fiscal reform could fill part of this investment gap, the bank said private sector investment would have to increase “dramatically”. More specifically, the bank estimated that, for the private sector to fill the gap, it would have to increase investments fourfold from $63bn to as high as $250bn per year over the period from 2016 to 2020.

Furthermore, the McKinsey Global Institute released a report assessing the worldwide need for increased infrastructure investment. The report estimated that, from 2016 to 2030, the world must invest an average of $3.3trn a year in economic infrastructure in order to support expected rates of growth. Simultaneously, governments around the world – including those in the US, Indonesia and India – have underscored the need for sizeable infrastructure and energy investments in order to stimulate economic growth and jobs.

A state of flux
Despite a clear demand for a greater number of projects, the sector continues to be squeezed by the ongoing dip in commodity prices. While prices have begun to pick up for certain commodities, the aftermath of the persistent slump is still being felt through tighter liquidity availability for projects and lower project returns. Furthermore, a lacklustre global recovery is exacerbating such concerns.

Another crucial issue being faced is the considerable political uncertainty weighing on decision makers. This is particularly the case in Europe, where a busy calendar of elections has prompted fears of potentially destabilising political shifts. Meanwhile, Brexit negotiations are underway, leaving a lot up in the air for the region.

Donald Trump’s election victory has triggered further uncertainties in the US, and the lengthy process of translating campaign promises into policy is still ongoing. In particular, several important policy choices regarding energy and infrastructure are still being clarified, which will inevitably have substantial ripple effects for the project finance industry.

Indeed, the global project finance sector has seen a somewhat tentative start to 2017 compared with recent years. According to data from Thomson Reuters, the sector saw 162 deals worth a total of $43.3bn during the first quarter of 2017, marking a 19.4 percent decline from the same time last year. The sector has been particularly slow in the US, with the lowest first quarter recorded since 2013. Volumes were also low for the Europe, Middle East and Africa region, where project finance totalled $17.0bn, down 45.9 percent year-on-year. In contrast, the Asia-Pacific region has succeeded in bucking this trend, with volumes increasing 55.9 percent from last year.

While the volume of project loans declined overall, the past year saw a promising resurgence of bond financing. In fact, project bond issuance actually increased by $8.3bn, bringing the total volume to $43.6bn. This momentum is a positive sign that the sector is diversifying to find new ways to tackle the ongoing disconnect between the investors seeking opportunities and the projects that need their capital. By creating a better functioning market, enhanced bond issuance has the potential to bring a huge injection of funding to the project finance space by unlocking cash from investors, such as insurers, pension funds and sovereign wealth funds.

In particular, the project bond market is being driven forward by the US, which completed $13.6bn in bond volume last year, up from $10.8bn in the previous year. Green bond issuance has also blossomed in China over the past year, which looks set to continue to provide extra liquidity for the renewables sector in the future. Likewise, bond activity has surged forward in Mexico, where reforms surrounding bond issuance are setting the conditions for fresh project opportunities.

Adapting to stay ahead
As always, the project finance sector is dictated by the march of technology, the twists and turns of commodity prices, and influential political events. While the sector has been dented by the low commodity prices seen over recent years, this has come alongside new opportunities in the renewables space.

Markets have continued to shift towards greener energy sources, spurred by technological advances and improved efficiency across a number of renewable sectors. Looking ahead, the need to push forward and adjust to a shifting regulatory setting will present both challenges and opportunities in the sector.

Faced with a landscape clouded by many obstacles, the brightest players in the sector are capturing the best opportunities, while rapidly adapting to those events that shape the markets. The World Finance Project Finance Deals of the Year 2017 celebrate those projects that exemplify the best of the sector with the most forward-thinking and exciting projects.

World Finance Project Finance Deals of the Year 2017

PPP Deal of the Year
Eskisehir City Hospital Healthcare PPP Project

IPP Deal of the Year
Central Java Independent Power Plant

Project Bond Deal of the Year
Elazig Hospital PPP Bond

Power Deal of the Year
Asağı Kaleköy Hydro Power Plant

Oil & Gas Deal of the Year
Fermaca

Airport Deal of the Year
New International Airport for Mexico City

Road Deal of the Year
Santana-Mocoa-Neiva Highway

Rail Deal of the Year
Melbourne HCMT

Healthcare Deal of the Year
Konya Karatay Integrated Healthcare Campus

Social Deal of the Year
Galataport Project

Mexico considers NAFTA concessions ahead of next month’s negotiations

Posted on by Helen

Mexico is examining possible revisions to the North American Free Trade Agreement (NAFTA) ahead of talks to renegotiate the arrangement next month. The decision demonstrates the country’s determination to preserve a good trading relationship with its largest export market, the US.

On the campaign trail, US President Donald Trump blasted NAFTA with claims that removing tariffs on Mexican imports had flooded the US with cheap foreign products and caused a dramatic increase in layoffs of US workers. Since taking office, Trump has continued to denounce the trade agreement, issuing multiple threats to pull the US out altogether if NAFTA is not rewritten to offer a better deal to US workers.

Trump has issued multiple threats to pull the US out of NAFTA altogether if it is not rewritten to offer a better deal to US workers

Mexico, the US and Canada are due to meet next month to begin renegotiating the trade deal, with the US set to publish its negotiating objectives for the talks on July 16.

In an interview with Reuters, Jaime Serra, a former trade minister who led the original NAFTA negotiations for Mexico, stressed that NAFTA changes should further integrate the three countries in order to protect the entire area from growing export competition from Asia. He said: “If we integrate further and make Mexico more competitive versus China… even if our exports rise, US jobs will rise, because when we export to the US, they’re exporting too.”

Around 80 percent of Mexico’s exports currently go to the US. Trump has claimed that comparatively cheap labour in Mexico has driven US firms to outsource jobs, accelerating the decline of US manufacturing. However, much of Mexico’s export trade is not consumer products, but items at the early stages of manufacturing. These undergo value-adding manufacturing processes in the US, before frequently being exported. This means Mexican imports often help the US maintain a competitive edge in international markets.

To make matters more complicated, despite Trump’s claims of an overwhelming trade deficit with Mexico, the US enjoys a comfortable surplus in agriculture and services. This is a benefit both industries will be loath to sacrifice. When negotiations begin, both countries will have to work hard to meet the complicated goal of trying to maintain many of the current benefits NAFTA offers, while seeming to make few concessions.

Google escapes $1.27bn French tax bill

Posted on by Helen

On July 12, Google’s six-year fight with French tax authorities reached a major juncture, with a French court ruling that the search engine giant should be cleared of a disputed $1.27bn tax adjustment bill.

The court rejected claims that the tech giant had abused tax loopholes by routing its sales through Ireland between 2005 and 2010.

The ruling comes as a clear victory for Google, which has not always come out of such tax disputes unscathed

Google’s strategy of keeping its headquarters in Ireland has helped minimise its tax bills in France, as well as a whole host of other European countries. French authorities, however, argued that Google should have paid taxes in France during the disputed period because its Irish subsidiary was conducting sales of online adverts to French clients through its search engine.

In turn, judges in the Parisian court ruled that Google Ireland should not have been taxable by French authorities at this time because the company, Google France, did not count as a “permanent establishment”. This, according to the court, came down to the fact that all orders needed approval from Irish headquarters, rather than being conducted in France.

While it has been declared that Google was acting within the law, the ruling could still be subject to an appeal from French tax authorities.

Google responded to the ruling with a statement that said the court “has confirmed Google abides by French tax law and international standards”. It further claimed: “We remain committed to France and the growth of its digital economy.”

The ruling comes as a clear victory for the company, which has not always come out of such disputes unscathed. In February last year, a similar skirmish with UK tax authorities resulted in a settlement where Google was forced to pay £130m ($168m) in back taxes.

The ruling is likely to feed into mounting anger over skimping tax arrangements and sweetheart deals that have been granted to large multinational companies. This said, earlier this month, the European Parliament passed new rules to force companies to publish detailed reports on where their profits are made, marking a potentially important step in tackling such arrangements.

Forex Awards 2017

Posted on by Helen

For many of the world’s industries, 2016 was a year to forget. With surprise election results and sweeping rebalances of diplomatic relations, businesses were caught off guard, lacking the information needed to make crucial decisions. Whether businesses liked it or not, inaction was often the only sensible choice during a year when it felt like anything was possible.
But in the world of foreign currency trading, this situation proved to be an exciting playground for firms of every size. Such an environment provided the diplomatic jostling and policy swings that gave foreign exchange traders plenty of opportunities to turn a profit.

As the global economy enters one of the most uncertain periods for many years, the moments traders can take advantage of will only continue to emerge. As an industry that sees as much as $5.1trn in trades every single day, overlooking the potential of the foreign exchange market would be a mistake.

While the instability caused by Trump’s constantly changing policies may be problematic, forex traders with a keen eye may be able
to take advantage

Though filled with opportunities, this environment only rewards the best and bravest traders who are able to anticipate changes and interpret the market better than anyone else. Currencies continue to soar and sink, and while opportunities are out there, it takes a talented forex trader to notice the minute details that can inform a profitable decision.
In this exciting time, World Finance’s panel of experts has set out to find the current leaders in the forex industry. The firms listed in the World Finance Forex Awards 2017 have the potential to take the current wave of uncertainty in their stride and use it to their advantage.

Just in time
For forex traders, 2016 didn’t start out particularly positively. Warnings were raised that liquidity in the market was drying up, with both investors and banks instead favouring faster trades and avoiding substantial risks. Between October 2014 and October 2015, currency trading in the UK and North America shrank by more than 20 percent, Bloomberg reported. With a lack of volatility, many traders had little to work with.

Another factor making currency trading far more difficult was the increased speed markets now operate at. Whereas a change in government policy may have once taken months to fully play out on markets, it now takes mere seconds. Wild spikes and slumps are now common, meaning that traders need to either work faster, or embrace a far more long-term perspective.

But despite these early difficulties, 2016 soon livened up. The UK’s vote to leave the European Union had the knock-on effect of rejuvenating the forex sector, with trading desks suddenly kicked into overdrive. The Financial Times reported that, on the first day of trading after the vote, desks handled as much as 10 times their normal volumes, with many reporting that it was their busiest ever day on the job. As the Brexit negotiations continue to play out and specific details gradually emerge, traders will find plenty of opportunities with which to make some gains.

The other big surprise of last year was the election of Donald Trump, which created a whole new range of uncertainties and instabilities. The US dollar enjoyed a temporary ‘Trump bump’ immediately following the election, as traders were optimistic for his business-friendly policies. However, since Trump has more recently expressed concern the dollar is getting too strong and veered away from officially labelling China a currency manipulator, the currency’s price has slid back down. With the future uncertain and more swings likely, forex traders
are right in their element.

Further questions
After the previous year had set the stage, 2017 started with a surge of ups and downs for the global market. With the Brexit process officially triggered and a surprise election adding to the chaos in the UK, both the pound and the euro are set for a rocky ride. Traders can expect every tiny negotiation detail that inevitably leaks out to have a significant impact on both short and long-term trades.

The US economy also presents significant opportunities for forex traders as Trump continues to make his moves. As his first few months in office have already shown, the president is not beyond completely reversing his policies, and while the tremendous instability this causes may be problematic for some, forex traders with a keen eye may be able to take advantage of the opportunities others overlook.

Of particular note to traders should be Trump’s commitment to deregulate financial markets, particularly with regards to the Dodd-Frank Act. When signed into law in 2010, Dodd-Frank led to the closure of many smaller US-based forex businesses that were unable to maintain new minimum capital levels. But if capital requirements were to be eased, as is expected, smaller foreign brokers could soon return to US shores and shake up the market.

There is even potential for new companies to be created from scratch, something that has been more or less impossible over the past few years. The expectation of further rate hikes by the US Federal Reserve is also poised to liven up the economy.

With these forces looming on the horizon, it looks like the forex industry is set to become the most exciting it has been for a good long while.

The robots are here
As with all elements of the financial services industry, automation and online trading are making business faster and more competitive. Artificial intelligence is now being used to develop extremely effective trading algorithms, which – with the right methodology behind them – can greatly affect a business’ performance.

With these algorithms able to trade confidently against the most miniscule fluctuations in the market, even the swiftest trade can bear interesting results. For the classic human trader, a longer-term view is needed. With all the political and economic factors that have impacted markets recently – many of which came unexpectedly and without precedent – the opportunities for humans to make longer-term decisions still exist. While forex may be moving forward at an unbelievable pace, taking a moment to slow down and take stock of a situation remains a good idea.

This is going to be necessary in the coming months as traders keep several potential factors in mind. Whether or not the Chinese economy will increase its growth rate this year will be playing on the minds of plenty, with growth likely to benefit commodity-based emerging markets. The possibility of cuts to OPEC members’ oil production is also a factor, as the price of oil continues to put pressure on many. The number of elections currently taking place in Europe could also produce significant change. While algorithms can respond to these situations well, a good human trader may have the intuition needed to make more pre-emptive moves.

In such an exciting time for the industry, identifying the most innovative forex firms in the world has never been more important. The winners of the 2017 World Finance Forex Awards have demonstrated exemplary leadership in their field, and are equipped with the tools needed to deal with the incredible challenges and opportunities that lie ahead. In an industry that has been rejuvenated so swiftly and suddenly, with the potential for an even stronger future, these forex industry leaders have a big role to play.

World Finance Forex Awards 2017

Best FX Broker, North America
Friedberg Direct

Best FX Broker, Europe
XM

Best FX Broker, Middle East
HYCM

Best FX Broker, Asia
FXTM

Best FX Broker, Australasia
IG

Best Customer Service
FXTM

Best Mobile Trading Platform
HYCM