July 1, 2014 1 Comment
Broad Street Capital Group announces major
expansion campaign to meet surging demand for
its ExportBoost™ program.
18 Merchant Banking Offices to open in multiple countries
in the next 18 Months
Helping To Grow Your Business Abroad
July 1, 2014 1 Comment
June 25, 2014 1 Comment
We are pleased to announce an all-star roster of speakers and panel participants for the upcoming “Fly Me To The Moon” UA-USA Air and Space Cooperation Forum. Do Not Miss one of the most anticipated Air and Space events of the year, as a high level delegation led by the Deputy Chief of the National Space Agency of Ukraine, presents Ukraine’s capabilities in the Air and space Arena and discusses cooperation options with US companies. Register Today!
June 22, 2014 Leave a comment
It’s not easy for investors to grasp the dynamics of consumer spending in diverse emerging markets. We think the best way is to look inside the refrigerators of people across the developing world.
Refrigerators are more than just iceboxes. Their contents speak volumes about their owners. And their proliferation signals a country’s economic progression. So the fridge and its contents can serve as a guide for investors seeking to tap emerging consumer spending, which is projected to grow eightfold to US$63 trillion by 2030, according to our forecasts, based on OECD data.
Emerging consumers defy simple classifications. Some analysts look at income, assets or people per room as a framework. In our view, these indicators are flawed. For example, a Living Standard Measure counts the number of certain items in a home to determine a household’s socioeconomic status. So a person with a laptop, TV, mobile phone and stereo could be classified as rich. Yet in our field research, we’ve met people in countries like Ghana whose ramshackle homes are full of electronic devices but who are quite obviously poor.
Kitchens offer a more honest reflection. Behind the fridge door is an abundance of information that can help us understand who emerging consumers are and how they’re likely to spend money in the future. We’ve analyzed the contents of 70 refrigerators in rural and urban homes that we visited across 12 developing countries from Chile to China. While it may not be a statistical sample, the initial patterns we’ve seen suggest that the inside of a fridge mirrors the status of a home.
In working-class homes, the fridge is used mainly for efficiency items (Display). It includes basic foods such as eggs, fruits and vegetables and some pre-cooked food. Middle-class fridges stock more indulgences, from alcoholic beverages to chocolate and cheese. And for affluent households, health is a primary concern. So expect to find foods like low-fat Yoghurt or 100% fruit juices.
Why is this important? Because once we understand how people’s tastes change as their income levels increase, we can also figure out how to invest in the consumer evolution as the refrigeration revolution sweeps through a market.
The display below shows penetration of refrigerators in different countries as income levels increase, from 1980 through 2013. In developed markets, more than 99% of households have a fridge. Brazil isn’t far behind. In China, about 86% of homes had a fridge. But in India, by contrast, only about 27% of households were able to chill their food. This is likely to increase rapidly as annual per capita incomes reach US$3,000, which seems to be the tipping point for rapid adoption of refrigeration.
Our research suggests that China is in the indulgence phase. So companies that make products like beer, butter and chocolates should benefit from rising incomes. Indian families are still buying fridges, then filling them with efficiency items like milk, yogurt and ready-made sauces. Brazil has already shifted toward health mode, which should see higher-end food producers draw more spending.
Of course, specific investing conclusions differ in every country. Market environments and company fundamentals must also be studied to identify successful portfolio candidates. But by starting with refrigerator shelves, we think investors can gain vital intelligence to understand the people, lifestyles and spending scenarios that will unlock earnings growth in emerging consumer companies
This article originally appeared at The Alliance Bernstein Blog. Copyright 2014.
June 18, 2014 1 Comment
Do Not Miss one of the most anticipated Air and Space events of the year, as a high level delegation led by the Deputy Chief of the National Space Agency of Ukraine, presents Ukraine’s capabilities in the Air and space Arena and discusses cooperation options with US companies. Register Today!
June 14, 2014 Leave a comment
Originally posted on Merchant Banker's Gazette:
Develop, Finance, Supply & Insure
Are services offered by Broad Street each day.
In crossing the borders, all headaches we cure,
For clients who risk, we hold danger at bay
The deals are global, the problems are massive,
A shepherd is needed to guide business along,
We highlight the issues, and structure financing,
We help sellers export, as their buyers grow strong
We’re Fluent In Foreign and help grow the business
For those who seek to franchise, or invest,
Until they succeed, we patrol cross the borders,
Until YOU succeed, our Team shall not rest
So as you get settled and learn all about
The business of projects and exports and risk.
Remember to smile, as there is no cure
From catching the bug called “Global Deals Disease”
And once you are ready to venture to strange lands,
There is only one thing you can count on for…
View original 20 more words
May 31, 2014 1 Comment
In a recent survey of affluent people in Asia, Africa, and the Middle East, Mastercard found that people’s definitions of success varied widely depending on where they were from.
The survey looked at affluent people in the region, who are, on average, age 37, have one young child, and have investible assets of at least $200,000. The affluent population is growing quickly in the region, which is expected to be home to 70% of the world’s affluent by 2017.
Mastercard found that overall, in addition to finding satisfaction in buying and owning luxury goods, affluent people in the region view “wealth as the catalyst to experience the world.”
There are, however, some variations by country, as detailed in the map below:
May 31, 2014 Leave a comment
Cheniere is well-positioned to export liquefied natural gas. Pictured, its LNG terminal in Louisiana last year. Cheniere Energy/Bloomberg News
The Obama administration said it would perform a more rigorous upfront review of proposals to export liquefied natural gas, offering a mixed bag for the roughly two dozen projects seeking federal approval.
The U.S., which is enjoying a natural-gas boom, is expected to start exporting LNG in significant volume next year. The administration has only approved one export facility, but about 25 additional proposed projects are under review. A few projects far along in the approval process could benefit from the proposed rules change because they could be cleared as others are delayed by the new requirements.
The Energy Department said Thursday that the proposed revisions would require export-terminal proposals to first undergo a more expensive regulatory review by the Federal Energy Regulatory Commission involving an environmental impact assessment before the DOE reviews the permit application. The DOE previously was granting conditional approval either parallel to or before completion of the environmental review, a process that allowed companies to get a project started with a smaller financial commitment.
The proposal could push back the approval process for some companies’ LNG permit requests, while more-advanced proposed projects are expected to be able to jump forward in the queue.
“The proposed changes to the manner in which LNG applications are ordered and processed will ensure our process is efficient by prioritizing resources on the more commercially advanced projects,” DOE Assistant Secretary Christopher Smith wrote in a blog post on the department’s website.
Kevin Book, of ClearView Energy Partners LLC, said under the proposal, energy companies will need to clear the environmental review before they can raise capital or secure loans to build LNG export terminals.
Houston-based Cheniere Energy Inc. LNG +8.94% is the only company that has already attained all the required permits to export natural gas from the U.S. to any country in the world. Its Gulf Coast plant in Louisiana is under construction and on track to begin shipping LNG in late 2015.
Oregon LNG’s proposed export facility in Warrenton, Ore., is the next one in the Energy Department’s queue. Chief Executive Peter Hansen said the company’s request for conditional export approval is probably just weeks away, based on how the department has processed other applications. He said it wasn’t clear whether the revised procedure could change the timeline. Oregon LNG is in good shape to move forward with Asian and North American partners, once the permits are in place, he said.
Mr. Hansen said the DOE’s proposal makes sense; as it stands, coordination between the DOE and FERC could be improved. “When you do sort of look at the fact that a lot of the projects that are fairly high up on DOE’s list—some of those haven’t done much yet. They’re barely real. And yet there are projects that are clearly real much further down,” he said. “Maybe the DOE queue wasn’t really reflective of the real world.”
The proposal is subject to a 45-day public review and comment period before the rules can be made final.
Write to Alicia Mundy at firstname.lastname@example.org and Alison Sider at email@example.com
May 26, 2014 Leave a comment
Originally posted on Ukraine-USA Business Cooperation & Financing Agency presents: BusinessUKRAINE™:
As the Presidential Elections in Ukraine are winding down and the country is looking to emerge from the most challenging threat to its independence since inception, it is important for those in the West wishing to assist Ukraine in this recovery process to create effective mechanisms to help the country achieve its economic goals, rebuild the shuttered economy and put it on a sustainable growth path. Conventional mechanisms, which exist as foreign financing and investment conduits have not proven effective, thus what has been developed is crowd-funding mechanism for Ukraine’s international economic development. A modern age solution for the new Ukraine. READ MORE
May 15, 2014 3 Comments
International trade is thought to have its roots in 19th century BC with Assyrian merchants. Over centuries the business of exports changed dramatically with evolution in transport modes, advent of incoterms, standardized shipping containers and computerized customs clearance. Yet for all the progress and record $2.3 trillion amount, exports in the US still remain a complex and not terribly efficient process. Multiple players involved in exports are still largely silo(ed). Even at large companies export related functions like international sales, legal, shipping, banking, financing and insurance often have difficulty communicating with one another. Concepts such as international payment protection mechanisms, US content policy, or US flag shipping requirements are often misunderstood.
Generally, business approach to managing export transactions is reactive, rather than proactive. Situation is even more difficult in small and mid-size businesses where resources are significantly more scant. A relatively small percentage of businesses export. Of those that do, a large portion exports to only one country. Expanded exports of goods and services represent amazing possibilities not only to help companies grow their profits and shareholder returns, but also to benefit our nation’s economy by creating new jobs and generating additional tax revenues.
President Obama’s National Export Initiative has served as a catalyst to spur job growth and along with general economic recovery led to a resurgence of manufacturing activity. More needs to be done, and companies should focus on exports as a fundamental part of their business activities, rather than an afterthought. The entire export ecosystem is ripe for disruption and entry into the technological age. I can envision a day in the very near future when shipping containers of foodstuffs, plane loads of licensed computer equipment, dozens of Ro Ro tractors, or construction cranes will be as simple as buying individual items on eBay or Amazon. Of course handling export transactions is infinitely more complex and requires signed multilingual contracts, letters of credit, export credit and freight insurance, licensing, quality inspections and complex shipping arrangements. Thus the disruption process that is being put in place needs to account for the nuanced complexity that characterizes exports.
A week ago the world witnessed the first step in this transformation. ExportBoost™ – a new curated service guaranteed to help small and mid-size companies to at least double their present exports in 18 months – was recently unveiled by the Broad Street Capital Group (“BSCG”) at the Annual Conference of the Export – Import Bank of the United States (“US Ex-Im Bank”). Specifically developed for US manufacturers and distributors with revenues of between $5 and $750 million and for providers of professional services , ExportBoost™ uses proprietary export building methodology and tools such as: Fi3E™ Export Indices, XPORTINSURE™, FinanceABLE™ and EZShip™ to greatly simplify export operations and mitigate international business risks. ExportBoost™ was designed to help small and medium companies who are either experienced exporters, or just looking to start their international expansion to significantly grow their exports.
ExportBoost™ service has two tiers – one where the exporter is guided by the Broad Street Capital’s professionals and implements the program internally and the second where Broad Street Capital Group implements ExportBoost™ on its client’s behalf. In either case, the clients will be offered a unique guarantee, should they follow the program and their exports do not at least double in 18 months, Broad Street Capital Group will refund all the fees paid by the clients for the ExportBoost™ service. ExportBoost™ is the first product of the very ambitious project being developed by the Broad Street Capital Group and its partners to greatly streamline international trading operations. The project codenamed “Barbell” is scheduled to be unveiled at the Broad Street’s annual conference later this year.
American businesses are driving economic growth and creating good jobs through exporting.
The President’s National Export Initiative (NEI) has been a remarkable success:
The United States has had four straight record-breaking years of exports. We hit an all-time high of $2.3 trillion dollars last year – up $700 billion from 2009.
Nearly one-third of our economic growth since mid-2009 has been driven by exports.
Nearly 30,000 businesses have started exporting for the first time.
And most importantly, 1.6 million more Americans have export-supported jobs, bringing the total to 11.3 million – the highest in 20 years.
In addition, exports have been the driving force behind growth in communities across the country. In fact, exports account for nearly all of the post-recession growth in cities like Albuquerque, Youngstown, Detroit, and Kansas City.
Clearly, foreign demand for U.S. goods and services is helping American families gain economic security – buying more homes and cars, saving for college and retirement, or simply heading for a night out.
Each day, more Americans appreciate the fact that 95 percent of the world’s customers are outside our borders. Our trade partners want what U.S. businesses have to offer – from consumer goods to infrastructure products – and everything in between.
Yesterday, we unveiled NEI/NEXT – the next phase of the National Export Initiative. This is a data-based, customer service-driven initiative to ensure that more American businesses can fully capitalize on markets that are opening up around the world.
NEI/NEXT is focused on 5 strategies:
We will help businesses find their NEXT customer abroad.
We will increase the efficiency of a company’s first and NEXT shipment.
We will help firms finance their NEXT order.
We will help communities integrate trade and investment into their NEXT growth plans.
And we will open up the NEXT big markets around the world while ensuring a level playing field.
In a number of these areas, we are already making progress. For example, we are customizing our export promotion efforts through initiatives such as:
Look South, which is focused on maximizing the potential of our 11 free trade agreements in Latin America. Already, our Look South team has created more than 100 tailored guides that show where American products are in highest demand across the region – from auto parts in Honduras to medical devices in Colombia. Therefore, a company expanding into one Latin American market can expand into all 11 with only a little extra effort.
In addition, the Department of Homeland Security is spearheading the implementation of the “single window” by the end of 2016. This effort will enable businesses to use just one electronic platform to complete the forms needed by dozens of federal agencies. It also is smart regulatory reform that will streamline, simplify, and automate processes – saving government and businesses precious time and money. In a fiercely competitive global economy, there is no room for unnecessary delays at borders and entry points.
Also as part of NEI/NEXT, the Small Business Administration and the Export-Import Bank will equip more community banks to offer federal export-financing tools. Traditional credit is still hard-to-find for too many potential exporters – even for creditworthy firms with eager customers waiting abroad. Through NEI/NEXT, we will increase the number of partners in the financial industry who offer federally-backed working-capital loans, loan guarantees, and insurance.
Finally, the Administration will continue to advocate for an overall environment in which American exporters and their workers can thrive. In particular, we are encouraging Congress to invest more in infrastructure and to support trade agreements that reflect our values – such as the Trans Pacific Partnership.
For America to remain competitive, we need more businesses to see the success stories of companies like JWB Manufacturing, based in Tempe, Arizona. This firm produces blades for carpentry tools and precision machinery and our commercial service team helped them break into new markets. In fact, JWB now sells in 12 countries in every corner of the world – including Mexico, Malaysia, Brazil, and Australia – and exports now account for 40 percent of their business. Owner Jeff Barth recently told us that “there is nothing to fear in exporting outside our borders. My international clients have been nothing but gracious, and I encourage other small businesses to realize the power of exports to help their business succeed.”
Ultimately, NEI/NEXT will help create the environment in which more businesses of every size – and their workers – adopt that same mindset.
My commitment is that this Administration will continue to support American businesses as we roll out NEI/NEXT… as our exporters create even more good jobs… and as we continue to send the clear message that America is Open for Business.
Let’s get to work.
May 15, 2014 1 Comment
John Deere lowered its profit forecast for the rest of its fiscal year, placing part of the blame on slower sales of tractors and other equipment in Russia, Ukraine and other ex-Soviet republics related to the economic sanctions levied against Russia. (Seth Perlman, AP)
The economic sanctions the United States imposed on Russia over the Ukraine crisis don’t hurt only the Russian economy. They hurt some U.S. companies that do business in Russia, too.
John Deere, which makes heavy farm equipment and has two factories in Russia, was the latest company to blame weaker sales on economic sanctions. Despite beating its fiscal second-quarter earnings by 16 cents, the company best-known for its green and yellow tractors, cut its full-year outlook, saying sales of its tractors and harvesters would fall “significantly” in Ukraine, Russia and other ex-Soviet republics. The company cited credit restrictions by its customers there for the weak outlook.
Shares of John Deere were down 2.2% to $91.58.
The United States and European Union are trying to pressure Russia into dialing back its involvement in the political affairs of Ukraine by imposing economic sanctions that target banks and dozens of officials.
U.S. companies view Russia as a “growth” market, and they do about $40 billion worth of business annually with Russia.
After Russia’s annexation of Crimea, McDonald’s closed three of its fast-food outlets there. The company said it had to cut evening hours in some stores in the region because of less foot traffic. The hamburger giant has more than 400 stores in Russia and gets roughly 9% of its revenue there.
DuPont, which has a big agriculture business, said its customers in Ukraine are deferring or reducing seed purchases because of difficulties in obtaining credit. Visa and MasterCard also feel the pain as sanctions levied against a handful of Russian banks forced them to stop servicing those banks. Bank customers that hold Visa or MasterCard credit cards can’t use them to make purchases.
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