High Water Women Explores Impact Investing

Can women be the new Trojan horse?

In a fascinating program focused on Impact Investing, Hugh Water Women, a New York based group of hedge fund women leaders, took a two-pronged approach to women and investing.

Panel discussions explored how women treat finance and how, if we are empowered, we can impact change for the good.

Why do women lack confidence about finance?  Several insights that emerged were particularly interesting.

1. Women know more than they think they do.  (Cororlary: Men know less than they think they do and also act ‘as if’ easily)

2.  Failure is acceptable in men and not in women.

3.  Women are more risk averse, but this can be positive in terms of performance, personal or corporate.

4.  Chinese women are as successful in finance as Chinese men.  They are highly educated and may benefit from the one child policy.

Impact Investment stories were told by the Cordes Foundation.  Setting Impact and Portfolio objectives were detailed by representatives of the MacArthur Foundation, Anthos Asset Management, Ceniarth and Treehouse Investments.

Breakout sessions combined representatives of law, government and financial institutions.

US Trust, Goldman Sachs and Credit Suisse among others focused on how the mainstream is joining the Impact Investing movement.

The afternoon breakout sessions included such topics as education, the environment, and personal investing.

The complexity of women’s position in the financial world was clearly presented.

Women’s priorities: making a better future world, providing young people with the education and health benefits they need to thrive, may well come to the fore as women take positions on corporate boards, invest in other women and generally gain power.

This is where the Trojan horse comes in:  women will gain position through the gender equality battle.  When they achieve power, are they prepared to fight for what’s good  for the future?

High Water Women

Monitoring Infrastructure Plans

How government sifts through projects to determine their worthiness.  The Tiger grants from the US Transportation department illustrate how merit can be determined.  Lowell, Masschusetts has recently been awarded a Tiger grant.  Elizabeth Warren is one of the legislators behind the award.  The City of Lowell can acquire and replace or rehabilitate eight privately-owned bridges that carry vehicles and pedestrians over the City’s unique 5.6-mile network of canals. … Three of these bridges are currently closed to traffic in at least one direction and many are posted with weight restrictions which prevent school buses, transit buses, fire apparatus, or commercial trucks from crossing them, resulting in significant detours.

The Transportation Investment Generating Economic Recovery, or TIGER Discretionary Grant program, provides a unique opportunity for the DOT to invest in road, rail, transit and port projects that promise to achieve national objectives. Since 2009, Congress has dedicated more than $4.1 billion for six rounds of TIGER to fund projects that have a significant impact on the Nation, a region or a metropolitan area.

In each round of TIGER, DOT receives hundreds of applications to build and repair critical pieces of our freight and passenger transportation networks. The TIGER program enables DOT to examine these projects on their merits to help ensure that taxpayers are getting the highest value for every dollar invested through TIGER Discretionary Grants. Applicants must detail the benefits their project would deliver for five long-term outcomes: safety, economic competitiveness, state of good repair, quality of life and environmental sustainability. DOT also evaluates projects on innovation, partnerships, project readiness, benefit cost analysis, and cost share.

The eligibility requirements of TIGER allow project sponsors at the State and local levels to obtain funding for multi-modal, multi-jurisdictional projects that are more difficult to support through traditional DOT programs. TIGER can fund port and freight rail projects, for example, which play a critical role in our ability to move freight, but have limited sources of Federal funds. TIGER can provide capital funding directly to any public entity, including municipalities, counties, port authorities, tribal governments, MPOs, or others in contrast to traditional Federal programs which provide funding to very specific groups of applicants (mostly State DOTs and transit agencies). This flexibility allows TIGER and our traditional partners at the State and local levels to work directly with a host of entities that own, operate and maintain much of our transportation infrastructure, but otherwise cannot turn to the Federal government for support.

By running a competitive process, DOT is able to reward applicants that exceed eligibility criteria and demonstrate a level of commitment that surpasses their peers. While TIGER can fund projects that have a local match as low as twenty percent of the total project costs, TIGER projects have historically achieved, on average, co-investment of 3.5 dollars (including other Federal, State, local, private and philanthropic funds) for every TIGER dollar invested.

The TIGER program enables DOT to use a rigorous merit-based process to select projects with exceptional benefits, explore ways to deliver projects faster and save on construction costs, and make needed investments in our Nation’s infrastructure that make communities more livable and sustainable.

Lowell. Mass. Infrastructure

Entrepreneur Alert: Raising Bees and Pesticides

Nature magazine writes:   The impact of neonicotinoid insecticides on insect pollinators is highly controversial. Sublethal concentrations alter the behaviour of social bees and reduce survival of entire colonies   However, critics argue that the reported negative effects only arise from neonicotinoid concentrations that are greater than those found in the nectar and pollen of pesticide-treated plants.

Furthermore, it has been suggested that bees could choose to forage on other available flowers and hence avoid or dilute exposure.  Here, using a two-choice feeding assay, the honeybee, Apis mellifera, and the buff-tailed bumblebee, Bombus terrestris, do not avoid nectar-relevant concentrations of three of the most commonly used neonicotinoids, imidacloprid (IMD), thiamethoxam (TMX), and clothianidin (CLO), in food.

Moreover, bees of both species prefer to eat more of sucrose solutions laced with IMD or TMX than sucrose alone. Stimulation with IMD, TMX and CLO neither elicited spiking responses from gustatory neurons in the bees’ mouthparts, nor inhibited the responses of sucrose-sensitive neurons. Our data indicate that bees cannot taste neonicotinoids and are not repelled by them. Instead, bees preferred solutions containing IMD or TMX, even though the consumption of these pesticides caused them to eat less food overall. This work shows that bees cannot control their exposure to neonicotinoids in food and implies that treating flowering crops with IMD and TMX presents a sizeable hazard to foraging bees.

Bees

Entrepreneur Alert: Lifting Iran Sanctions

President Barack Obama ordered the US government to take steps towards lifting sanctions on Iran, in accordance with the historic nuclear deal struck between six world powers and Tehran.

Obama’s directive comes 90 days after the UN Security Council endorsed the accord signed in Vienna in July, a milestone referred to as “Adoption Day.”

“I hereby direct you to take all necessary steps to give effect to the US commitments with respect to sanctions,” Obama said in a memorandum addressed to the US secretaries of state, energy, commerce and the treasury.

The measures will take effect upon confirmation by the Secretary of State that Iran has met its commitments under the so-called Joint Comprehensive Plan of Action (JCPOA), as the accord is known, Obama said.

“This is an important day for all of us and a critical first step in the process of ensuring that Iran’s nuclear program will be exclusively for peaceful purposes,” Secretary of State John Kerry added in a statement.

But no sanctions will be lifted immediately — full relief will come not on “adoption day” but on “implementation day,” the point when the IAEA is able to certify that Iran has fully complied with its end of the bargain.

Under the deal with world powers, Iran will dramatically reduce its uranium enrichment program, surrender or dilute most of its highly enriched fuel and open its nuclear sites to inspectors from the IAEA, the UN nuclear watchdog.

In return, the United States, Europe and other countries will rescind a raft of economic sanctions imposed on Iran because of fears that its nuclear research program concealed plans to develop an atomic bomb.

The European Union’s foreign policy chief Federica Mogherini and Iranian Foreign Minister Mohammad Javad Zarif were also set to make statements on the lifting of crippling sanctions on Tehran.

Tehran has said it hopes “implementation day” will come quickly, in less than two months, but Washington envisages a longer timeframe.

“For us it’s important that it’s done right, not that it’s done quickly,” a senior administration official told reporters. “We cannot imagine less than two months.”

Entrepreneur Alert: Arctic Openings

 At a recent meeting of the Arctic Council the President of Iceland pointed out the many opportunities opening up in the Arctic as one of the few positive outcomes of global warming.  The council, founded in 1996, brings together eight nations with land above the Arctic Circle – Canada, Denmark, Finland, Iceland, Norway, Russia, Sweden and the US.

Climate change has countries as far away as India also paying attention to the Arctic – and seeking observer status in the council. Melting polar ice is making mineral and oil resources easier to exploit, setting off a scramble for access. The US Geological Survey estimated in 2008 that some 22% of the world’s undiscovered oil and natural gas deposits were located above the Arctic Circle.

The warming climate also opens shipping routes that were once mostly inaccessible. The northern sea route would cut the distance between Shanghai and Europe by several thousands of miles, saving time and money.

China is courting Nordic countries, signing a trade agreement with Iceland and several commercial agreements with Denmark.

Greenland, a self-governing part of Denmark, is considering awarding mine exploration licenses to companies this year for a $2bn (£1.3bn) project north-east of the capital Nuuk.

One of those companies is London Mining, which would join a Chinese mining company in the project that could supply China with 15 million tonnes of iron ore a year.

China is one of 14 countries that have applied for observer status in the council, along with Japan, South Korea, India and others. Several European countries such as France and the Netherlands are already observers.

It is unclear whether the eight members will be able to reach a decision by the end of their meeting in Kiruna, which will also mark the transfer of the council chairmanship from Sweden to Canada for the next two years. The US takes over in 2015.

Arctic Opportunities?

 

Is Slowing Global Growth of Concern?

As the world economy is facing varied challenges including slowing growth,differentiated policies, transition and increasing uncertainties, new strategies are needed tocope with the changing economic situation and boost global economic development.

IMF Managing Director Christine Lagarde has said the world economy is not in a crisis any more, but in a period of change.

She warned policymakers around the world that “no country can go it alone and international cooperation is more needed than ever.”

In the eyes of experts attending the meetings — an important event to estimate the world economic situation, challenges in the period of change may not less than those in the crisis.

Just before the annual meetings, the IMF downgraded its forecast for global economic growththis year to 3.1 percent from the 3.3 percent it forecast in July and the 3.5 percent it projectedin April.

In face of the severe economic situation, Lagarde said, the IMF will pay more attention to economic transition, spillovers of major economies’ policies and global cooperation.

Some economists believe that over the past seven years after the outbreak of the global financial crisis in 2008, money printing served as a main solution to boost the world economy from crisis to recovery.

Meanwhile, emerging economies and developing countries, led by China, have played the role as a major engine for global growth.

However, with the growing transition of the world economy, the old solution to boost globaleconomic development needs to be changed.

During the period of transition, changes in China and the United States, the world’s twolargest economies, will have a global impact.

As a main contributor to the world economic growth in recent years, China’s economictransition has attracted worldwide attention.

Chinese Finance Minister Lou Jiwei has said that the slow growth of emerging economies is relative and China’s 7 percent is still a very high growth rate at the international level.

China’s transition and reform have been widely recognized at the meetings.

Commenting on China’s GDP growth, Lagarde said the country’s slowdown was “predictable and expected.”

“There will be bumps on the road as no transtion can be done smoothly with no disruption or volatility … We welcome China’s transition process coupled with more market-determined exchange rate fluctuations,” she said.

“In China, fiscal, social security and state-owned enterprise reforms are needed to transitionto more domestically-driven growth, which will benefit the global economy over time,” it said.

In addition, the China-proposed Belt and Road initiative, or the Silk Road Economic Belt andthe 21st Century Maritime Silk Road initiative, and the Asian Infrastructure Investment Bank(AIIB) establishment have both attracted more attention as new solutions for boosting globaleconomic growth.

Meanwhile, the United States, whose economic recovery has largely benefited from theposition of the US dollar, a universal money, should bear more global responsibilities and playa bigger role in boosting the world economic growth.

For example, it should work with other developed countries to further broaden public investment to fuel economic growth, so as to provide outside support for developing countries’ structural readjustment.

Moreover, export-dependent countries seeing their revenues falling should accelerate reform and explore new areas for growth.

All in all, both China and the United States, as well as other major economies, should strengthen coordination in their macro-policies and stay away from self-serving trade manipulation for a healthier recovery of the world economy.

 

Entrepreneur Alert: Inspired by Money

When we see a dollar bill laying around, we see buying power. But without a numeral printed on each bill, paper money isn’t anything more than a proprietary piece of paper made out of a cotton/linen blend, just like the kind you might find upholstering your furniture.

Commissioned to design a project for the National Bank, London-based designer Angela Mathis decided to deconstruct currency from around the world and turn it into a textile. She then used this textile to upholster a number of custom-designed stools.

She calls it “Value.” As designed, Value comes in the form of four stools, each upholstered with a potpourri of different-colored currencies, reduced to shreds. Depending on how she combines these currencies—the American dollar, the purple English pound, the brown Indonesian rupees, and the color dense euro—Mathis was able to create different colors, textures, and effects (such as marbling).

This might seem like an extraordinarily wanton (and maybe criminal) destruction of money. Not so. The artist points out that the average life of a note is scarcely more than 18 months, at which point, it is decommissioned. In America, you can actually buy a five-pound bag filled with $10,000 worth of shredded currency for just $45.

This is the sort of currency Mathis used for her project, making it far more affordable than it looks like it would be at first glance. She asked herself: what will happen to all of this cotton and linen when the digitization of currency has made physical bills almost obsolete? Value imagines a world in which currency is routinely repurposed, because it has no inherent value anymore, just material worth

Inspired by Money

US Plays Catch Up on Digital Privacy

California’s governor Jerry Brown has signed into law the most sweeping and stringent digital privacy law in the country on Thursday.

The American Civil Liberties Union called it a “landmark victory for digital privacy.”

In essence, the law requires a warrant before any business turns over any of its clients’ metadata or digital communications to the government.

Wired reports:

“State senators Mark Leno (D-San Francisco) and Joel Anderson (R-Alpine) wrote the legislation earlier this year to give digital data the same kinds of protection that non-digital communications have.

“‘For what logical reason should a handwritten letter stored in a desk drawer enjoy more protection from warrantless government surveillance than an email sent to a colleague or a text message to a loved one?’ Leno said earlier this year. ‘This is nonsensical and violates the right to liberty and privacy that every Californian expects under the constitution.’

“The bill enjoyed widespread support among civil libertarians like the American Civil Liberties Union and the Electronic Frontier Foundation as well as tech companies like Apple, Google, Facebook, Dropbox, LinkedIn, and Twitter, which have headquarters in California. It also had huge bipartisan support among state lawmakers.”

The ACLU said it hopes the California Electronic Communications Privacy Act becomes a model for other states.

Under the federal Electronic Privacy Communication Act, the government can access digital data using a subpoena instead of a warrant. The paper adds:

“While federal agencies and the Justice Department say they don’t use the authority because of prior case law, technology companies say it creates uncertainty as they try to repair customer trust after the 2013 U.S. surveillance leaks from Edward Snowden.

“In Congress, legislation to updated the act has more than 300 cosponsors, but it has not received any committee or floor action in either chamber.”

DIgital Privacy

Value? Unicorn Startups

Unicorn investors (start ups that roll out at over a billion dollar evaluation when they have made no money).  Good for entrepreneurs?  Bad for investors?

Barry Diller, speaking at the Bloomberg Markets Most Influential Summit, said the numbers are inflated because new investors are pouring money into the space, with the emergence of mobile technology driving fast-paced generation of ideas and inventions. Valuations will fall to a more rational level relatively soon as investment falls away, he said, without specifying a timeline.

“What we have had is an enormous amount of money coming in, continuing money coming in, and no shoes dropping yet of any real size,” Diller said. “When it begins to happen, reality descends — then, in fact, valuations will become more rational.”

There are 140 startups valued at $1 billion or more, eight of them joining the so-called “unicorn club” in September, according to research firm CB Insights. Most of these startups aren’t profitable, so the valuations don’t matter, Diller said.

“The price only makes sense if you’re saying, ‘I’m over here in this non-digital age and I want to get into this and I’ll pay this huge opportunity cost, and maybe I’ll make something of this,”’ Diller said, citing Walt Disney Co.’s purchase of Maker Studios for $500 million as an example.

The Value of Unicorn Starups

Entrepreneur Alert: Space Internet

The race for Internet service from space is on, again.

After a series of failed satellite Internet projects over the past two decades, fresh investment is coming into the sector, and at least three high-profile projects are moving forward.

OneWeb, a London-based consortium backed by tycoon Richard Branson, announced in June it had raised $500 million from investors including Airbus, Qualcomm and Intelsat to advance its plan for satellite broadband to underserved parts of the world.

Also this year, U.S.-based space exploration firm SpaceX secured a $1 billion investment that could help founder Elon Musk’s plan to build a satellite Internet network, with backing from Google and the financial firm Fidelity.

U.S.-based LeoSat, backed by Europe’s Thales Alenia Space, is also working on a satellite broadband project aimed at business. And Samsung outlined plans in a research report this year “to make affordable Internet services available to everyone in the world via low-cost micro-satellites.”

The projects seek to launch hundreds of low-orbit satellites to beam the Internet from space. The initial costs could be high, but would avoid the expense of building ground-based systems for wired or wireless broadband.

If the plans sounds familiar, we’ve seen this before.

Teledesic, a 1990s project backed by Microsoft’s Bill Gates and Saudi royal family investors, died before it went into service, as did another venture called SkyBridge, whose assets were eventually acquired by OneWeb.

Greg Wyler, chief executive of OneWeb, said much has changed since Teledesic abandoned its “Internet in the sky” plan more than a decade ago: the cost of satellite technology has come down, and most people now realize that connectivity is needed to spur economic development.

“If your goal is to end extreme poverty, boost the things that contribute to economic growth like health care and education, all of those things sit on a foundation of connectivity,” Wyler said.

OneWeb plans to begin launching its 648 low-orbit satellites in 2017, and begin connecting customers by 2019, Wyler said.

The company has “contractual arrangements” to operate in more than 50 markets and is looking at a broad global footprint.

“More than half the world is not connected,” he said.

In some developed markets like the United States, individuals who live in remote areas could subscribe to Internet broadband. In developing countries, it may be schools, health care centers and other government entities.

“Our technology fundamentally reduces the cost of connectivity,” he said.

An equally ambitious plan is being developed by Musk and SpaceX, which could launch as many as 4,000 satellites.

Musk said on Twitter that he sees “advanced micro-satellites operating in large formations” that would provide “unfettered (Internet access) certainly and at very low cost.”

Details of the SpaceX plan are still sketchy, but the company filed plans with the U.S. Federal Communications Commission to begin testing. Eventually, FCC approval could allow the SpaceX project to offer broadband services globally.

LeoSat’s plan calls for between 78 and 108 satellites for a broadband network aimed at high-volume business customers such as major corporations, governments, maritime operators and the oil and gas industry, said Chief Executive Mark Rigolle.

While LeoSat, a startup created in 2013, is aiming at only a few thousand customers, it can also serve as a “backbone” for other operators, which would mean millions could use its connections.

“We want to become ‘fiber from the sky’ from anywhere to anywhere,” Rigolle said.

“It’s not a product that is available in today’s market.”

The company was created by former oil and gas industry executives who understood the need for better connections in remote parts of the world, Rigolle said.

These low-earth orbit systems require more satellites but can cover areas not served by the higher-orbit systems, with better connectivity because of faster transmission speeds.

Rigolle said LeoSat will be able to transmit around the globe “from satellite to satellite without ever touching the ground,” create a system which is “effectively faster than fiber” and more secure.

Scott Pace, director of the Space Policy Institute at George Washington University, said now may be an opportune time to launch a space broadband service because of advances in technology and growing needs for connectivity.

“Space has a lot of natural advantages” over terrestrial systems, he said.

“Space systems provide a way to cover massive amounts of territory very quickly, and the new satellites are increasingly sophisticated.”

Because growing numbers of people around the world rely on wireless broadband, Pace said that “demand is more intense than in the 1990s and satellite systems have a chance of meeting that demand and being a player.”

Still, he said it is not clear if satellite systems can compete effectively with ground-based systems. And he said that any new entrant will still have to compete for airwave spectrum and deal with regulators in various countries.

With a number of satellite firms competing, it is not clear if all will survive.

Space Internet