The holidays. Fiscal year and quarter end approaches. In addition to holiday shopping, for Finance executives there are a number of things at the office that need to be crossed off the list. The last thing you want to hear before year end is that the foreign and key customer AR is deemed ineligible by your lender, Eximbank, or EDC for your company’s working capital finance programs. Continue reading
News
Why use an independent agency instead of directly engaging an insurer?
Henry Ford said it best; “Any customer can have a car painted any color that he wants so long as it is black.”
There are over 16 different credit insurance companies operating in North America. Even more when we include those offshore. 75% of the insurers do not sell directly, working only through specialty agencies. However 100% of the insurers sell via specialty agencies – including the direct sellers. Continue reading
Guy Miller, Chief Economist Zurich Insurance Group on BREXIT
A few hours after the announcement of the referendum result the situation in financial markets is confused. Zurich – chief strategist Guy Miller advises in Cash video interview investors to be cautious.
Grapes of Wrath
“Well, Okie use’ta mean you was from Oklahoma. Now it means you’re a dirty son-of-a-bitch. Okie means you’re scum”
– John Steinbeck, “Grapes of Wrath”
After telling migrants from fellow EU countries Spain, Poland, Italy, etc. “you’re not welcome here”, BREXIT campaigners want the world’s manufacturing and financial services companies to believe a favored commercial relationship will be the outcome of the EU negotiations. As Americans, it is hard to fathom why a state would vote to change its laws to bar children from the other 49 from working there. Yet that appears to be what England has chosen to do. New Prime Minister May is known for hard views over free movement of labor. Continue reading
Chamberl … er … Cameron’s moment
While the ink is still wet, it can be said that the vote to leave the EU is expected to prompt a number of significant changes:
- Within the UK, ministers will seek to narrow the meaning and implementation of the ‘Leave’ mandate in final execution. Under Article 50 of the Lisbon Treaty, exit takes place two years from EU receipt of formal notification. Leaders of “Leave” movement have cited waiting two years before giving formal notice. However this will be considerably more difficult as
- In voting to secede from the EU, UK’s political capital with EU members has been severely damaged. Efforts by UK ministers to preserve UK’s economic interests in Europe — and negotiate the terms — will be a difficult process and subject to EU members agreement.
- China’s expanded role as a leader in global financial marketplace.
- Resurgence in demand for political risk insurance (government default). GDP forecasts are being cut globally. More immediate, Reuters reports that the cost for insuring Irish government debt has surged to highest level in 2 ½ years.