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EU to use bond auctions to sell debt for 800-billion-euro recovery fund By Reuters

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© Reuters. FILE PHOTO: Euro currency bills are pictured at the Croatian National Bank in Zagreb

By Yoruk Bahceli

AMSTERDAM (Reuters) – The European Commission will use bond auctions to sell some of the debt to back its coronavirus recovery fund, the commissioner for budget and administration said on Thursday.

Details about the tools the EU will use to increase its small debt pile to take on large liabilities have been a key focus for markets for weeks. Reuters first reported last week that the EU was exploring bond auctions.

“Next Generation EU will be a complex funding machine… in that respect we are currently strengthening our capacities,” Commissioner Johannes Hahn said at an online panel discussion at the IMF-World Bank Group annual meeting.

“We will move away from an exclusive reliance on syndicated transactions towards use of some auctions.”

Auctions, where banks acting as dealers for the borrower purchase bonds and sell them on to investors, are almost exclusively used by governments.

The European Stability Mechanism bailout fund is the only other supranational that auctions debt.

“It’s underscoring that the EU has the ambition to not just become another… supra(national) issuer but rather to become the supra benchmark which is closer to sovereign issuers than any other supra out there,” said Christoph Rieger, head of rates and credit research at Commerzbank (DE:).

Before starting to finance the recovery fund next year, the EU first has to fund the SURE unemployment scheme, for which it will start selling bonds this month via syndication, where banks it hires sell bonds directly to investors.

Hahn added that the Commission would codify its relationship with bank counterparties to ensure efficient financial support.

Dealer banks running auctions are usually responsible for providing liquidity in the secondary market, to ensure orderly trading.

The Commission will also support its issuance through liquidity-management tools and support a liquid secondary market in its bonds.

Hahn added the recovery fund would raise around 800 billion euros ($937 billion), with the 750 billion euros previously communicated having been in line with 2018 prices.

The fund has yet to be ratified, with member states divided over a scheme that ties access to the money to respecting the rule of law.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

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Economy

Israeli visual assistance co TechSee raises $30m

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Israeli intelligent visual assistance company TechSee today announced it has closed a $30 million Series C financing round co-led by OurCrowd, Salesforce Ventures, and TELUS Ventures with participation from Scale Venture Partners and Planven Entrepreneur Ventures.

The company has grown rapidly by reducing customer friction points for enterprises through its visual assistance technology, which bridges the visual gap in customer service, allowing customers and technicians to receive real-time AR guidance on their smartphone or tablet screens in assisted service or self-service mode. The company has also developed computer vision AI with technology that can provide visual guidance to users installing, operating, or troubleshooting networking devices, smart home products, home appliances, and more. TechSee’s AI platform can automatically identify components, ports, cables, LED indicators, and more to detect issues and suggest resolutions for consumers, contact center agents, and field technicians.




The Herzliya-based company was founded in 2015 by CEO Eithan Cohen, Prof. Gabby Sarussi and Amir Yoffe. TechSee also has offices in New York, Florida and Madrid. The company raised $16 million in a Series B financing round in December 2018.

Cohen said, “There has been a significant increase in demand for contactless customer service technologies propelled by Covid-19 social distancing requirements and the acceleration of digital transformation projects. Our Visual Automation technology is at the heart of it, and now that momentum is growing exponentially as businesses seek to reduce costs and optimize customer experience strategies in the current environment. Our vision is to get rid of the user manual and replace it with dynamic AR assistants.”

TechSee has established commercial partnerships with Verizon, Vodafone, Orange, Liberty Global, Accenture, Hitachi, and Lavazza, among others.

Published by Globes, Israel business news – en.globes.co.il – on October 26, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020




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China’s NEV sales to account for 50% of all new sales by 2035, industry body says By Reuters

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© Reuters. The Wider Image: Trade tensions with U.S. testing Chinese consumers

SHANGHAI (Reuters) – Sales of new energy vehicles (NEV) will make up 50% of overall new car sales in China, the world’s biggest auto market, by 2035, an industry official said on Tuesday.

The influential industry body, China Society of Automotive Engineers (China-SAE), has members of senior auto executives and academicians and is involved in the setting of the country’s mid- to long-term energy vehicle policies.

NEVs include battery electric, plug-in hybrid and hydrogen fuel-cell vehicles. Industry expects China to sell around 1.1 million NEVs this year.

Li Jun, president of China-SAE, told the association’s annual conference in Shanghai on Tuesday that the association predicts 95% of NEV sales in 2035 will be battery electric vehicles.

Li added hybrid vehicles will make up the rest 50% of all new vehicle sales by 2035.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





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Yandex to launch food delivery services in Israel

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Russian tech giant Yandex is hiring in Israel ahead of setting up food delivery operations in the country, a source close to the matter has told “Globes.” Yandex first entered Israel two years ago with its taxi hailing app Yango and has since expanded operations to music services competing with Spotify.

Yandex is a tech giant whose search engine is the Russian language equivalent of Google. Headquartered in Moscow, the company is traded on Nasdaq with a market cap of $20 billion.




The company is now looking to carve out a slice of the lucrative Israeli food delivery market, which has grown enormously during the Covid-19 crisis. Yandex will commence operations in the Tel Aviv area first in the coming days.

Yandex operates two services for food deliveries. Yandex.Lavka for deliveries of supermarket orders and Yandex.Eats for deliveries of restaurant orders. Yandex is expected to start with the Yandex.Lavka service rather than Yandex.Eats, where it will face stiff competition from Finnish company Wolt and local rival Ten Bis, which operate restaurant deliveries.

As part of the Yandex.Lavka service in Russia the company also sells its own food products including fresh fruit and vegetables, dairy products and ready-made meals.

Published by Globes, Israel business news – en.globes.co.il – on October 26, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020




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