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German service providers reported a further rise in business activity in August, although the pace of
expansion slowed since the previous month. Employment also rose at a weaker rate, while new business continued to increase. Meanwhile, business sentiment fell to the lowest level in nearly one year.

The seasonally adjusted Markit Germany Services Business Activity Index fell from July‟s 37-month high of 56.7 to 54.9, thereby signalling a strong, albeit weaker rise in German service sector output. Business activity has now risen for 15 consecutive months and the rate of growth remained above the long-run series average of 53.0. Surveyed companies linked higher activity to the processing of backlogs and increased new orders. Out of the six monitored sub-sectors, Transport & Storage companies signalled the sharpest rise in output. The headline index reading followed an earlier „flash‟ estimate of 56.4.

Meanwhile, total private sector output expanded at the slowest pace in 10 months, as highlighted by the final Markit Germany Composite Output Index – which measures the combined output of the manufacturing and service sectors – falling from July‟s 55.7 to 53.7. Nevertheless, the latest index reading was above its long-run average of 53.0.

Private sector employment rose for a tenth straight month, albeit at the weakest rate since March. New business received by German service sector companies continued to increase in August, and the rate of growth picked up slightly since July.

Panelists generally linked higher volumes of new work to successful acquisitions and stronger demand.
With output and new orders rising further, German service providers hired additional workers in August. The rate of job creation eased, however, and was the slowest in five months. Some companies increased their staffing levels in order to reduce backlogs of work.

Indeed, the level of unfinished work in Germany‟s service sector fell further in August. Work outstanding has now declined continuously on a monthly basis since December last year.
On the price front, input costs in Germany‟s service sector continued to increase in August. However,
the rate of input price inflation eased since July and was the weakest in over four years. Some
panellists linked the weaker inflation to competitive market conditions and lower borrowing costs. Rising staff costs meanwhile contributed to the overall increase.

August data signalled a further marginal rise in prices charged by German service providers. The rate of charge inflation was the weakest since April, with the vast majority of the survey panel reporting
no change since July. The level of positive sentiment towards the business outlook fell to an 11-month low, which some companies linked to a weakening domestic economy, the introduction of a minimum wage and rising global insecurity.

Commenting on the final Markit Germany PMI® survey data, Oliver Kolodseike, economist at Markit and author of the report said: “Germany’s service sector sustained its strong growth momentum in August, although activity growth slowed since the previous month. New business continued to flood in, but companies were relatively cautious about their staffing levels, with employment rising only slightly.

“Total private sector output meanwhile expanded at the slowest pace since October last year and job
creation also weakened. Our survey respondents partly linked slower growth to a weakening economic environment, with some panelists also mentioning heightened geopolitical tensions.

“The Composite PMI data are currently still signalling an expansion in German GDP in the third quarter, following the surprise drop in Q2. It is, however, very unlikely that growth will be as strong
as seen in the opening three months of the year.”

This news is courtesy of http://www.markiteconomics.com/

The U.S. economy continues to strengthen. Last week, we learned that 209,000 jobs were created in July. This increase represented the sixth consecutive monthly payroll gain of more than 200,000—the longest such stretch since 1997. Over the past 53 months, our private sector has produced nearly 10 million new jobs. The unemployment rate has fallen nearly four percentage points from its peak of 10 percent in October 2009, dipping to a six-year low of 6.1 percent in June before edging back up to 6.2 percent in July on an increase in labor force participation. With real GDP having grown at a strong 4 percent pace in the second quarter, the economy is now 6.6 percent larger than it was before the Great Recession.

We are seeing improvements across many sectors of our economy. The United States is now the world’s leading producer of petroleum and natural gas, producing more oil at home than we import. Manufacturing is gaining strength having added more than 700,000 jobs since February 2010—the strongest job growth over any comparable period since the late 1990s. The auto industry is thriving, with auto sales running at an annual rate of more than 16 million units in recent months, and the housing market is rebounding with fewer homes underwater. With the Affordable Care Act in place, health care costs have risen at the lowest rate in nearly a half century. And our budget deficit as a share of the economy has been cut by more than half since 2009, the largest four-year decline since the demobilization from World War II.

All told, the recent economic news offers much reason for optimism. With headwinds resulting from the global financial crisis largely behind us, the underlying fundamentals are solid and supportive of continued economic momentum. Consistent with this view, a consensus of private sector economists projects strong economic growth through the end of 2015. Yet, unemployment is still too high; there is more work to be done so that every American feels the benefit of our continued recovery from the Great Recession.

The President has proposed initiatives to spur job creation, accelerate growth, and expand opportunity so that more Americans can participate in the economic recovery and share the prosperity created by our economy over the longer run. These common sense proposals include investing in our infrastructure for the long-term, raising the minimum wage and making student loan payments more affordable. We at Treasury are doing our part to help support and strengthen working families and keep our economy growing by doing things like partnering with the Department of Housing and Urban Development to support the construction and preservation of affordable rental housing.

Constructive policy steps by this Administration, along with the resilience of America’s workers and businesses, have helped the United States’ economy recover faster than almost any other advanced economy in the world. Going forward, our goal is to ensure that economic growth continues to be strong, with the gains shared broadly throughout our country.

Article is courtesy of www.treasury.gov and is written by KAREN DYNAN. Karen Dynan is the Assistant Secretary for Economic Policy at the U.S. Department of the Treasury.

Zurich, Credit Suisse economists and strategic investment consultants who advise the bank’s institutional clients today published a study entitled ‘Swiss Pension Funds 2014 – Perspectives in Demographics and Asset Management’. The study is based on a survey of more than 250 Swiss pension funds. The results indicate that in addition to the low interest rate environment, demographic ageing poses the greatest challenge for pension funds. In this context, representatives of pension funds especially regard the excessive minimum conversion rate as problematic. As a result, the vast majority of them welcome the Swiss Federal Council’s proposal that the minimum conversion rate should be reduced. Despite Switzerland’s ageing population, Credit Suisse economists do not expect 2nd pillar total capital to decline by 2050. They also believe that Swiss pension funds have the potential to improve the efficiency of their asset allocation. The study shows that a long-term investment horizon is beneficial for pension funds in particular. However, many pension funds pursue investment strategies with a short-term focus. Overall, most pension funds demonstrate a high level of cost consciousness – taking account of a range of cost factors – although they generally take the view that the scope for cost savings has largely been exhausted.

Following a prolonged ongoing period of low interest rates – and with the baby boomer retirement wave now beginning – 2nd pillar pension funds currently face a number of challenges. In the latest issue of the study on Swiss pension funds, Credit Suisse economists and strategic investment consultants who advise the bank’s institutional clients analyze major challenges identified by the pension funds surveyed: demographic ageing and management costs. They also look at the advantages offered by a long-term investment horizon and a variety of risk management strategies.

Majority of pension funds support “Old-age Provision 2020”
Over half of the pension fund managers surveyed regard demographic ageing as one of the major challenges that exist. 82% of the survey participants take the view that demographic ageing, combined with an actuarially unsustainable minimum conversion rate, are further intensifying the problem of redistribution from active insured persons to pension recipients. Many pension fund representatives also regard demographic trends as a challenge because, according to 63% of those surveyed, they create the need for higher savings contributions or a reduction in benefits (50%) in the form of lower pensions and/or a rise in the retirement age. In this context, the majority of pension fund representatives surveyed are in favor of the Swiss Federal Council’s package of reforms (‘Old-age Provision 2020’): 57% of respondents are in favor, with another 16% strongly in favor. Of the individual elements of the package, the most popular are the proposed retirement age of 65 for both men and women (63% strongly in favor) and the reduction of the minimum conversion rate to 6.0% (64% strongly in favor). The only proposal rejected by a majority is the setting of the minimum retirement age at 62 (56% against or strongly against).

Population ageing leads to slower capital accumulation and little change in asset allocation
Modeling carried out by Credit Suisse economists in the study shows that by the year 2050, population ageing is likely to lead to a slower rate of 2nd pillar capital accumulation but not to an absolute reduction. Although the annual difference between contributions paid in and benefits paid out could be negative, investment returns should more than compensate for this gap. However, all the demographic scenarios examined in the study point to a substantial slowdown in capital growth, particularly between 2020 and 2035. The impact that an ageing population has on the risk capacity of pension funds means that it also influences asset allocation. Specifically, pension fund representatives anticipate a slight fall in the allocation to equities over the long term. The authors of the study show in their calculations that as the average age of active insured persons rises, there is a statistically significant – but up to date very moderate – negative effect on the proportion of equities held by Swiss pension funds. They do not, therefore, expect to see any fundamental change in asset allocation at Swiss pension funds in the future as a result of demographic trends.

Pension funds do not fully exploit the available diversification potential
In view of the challenges that currently exist, the investment strategies adopted by pension funds are of considerable importance. Around 54% of the pension funds included in the survey use portfolio optimization when defining their investment strategy. The application of modern portfolio theory, as developed by Markowitz, has become established here as the standard approach. This method uses the advantages of diversification across various asset classes to construct portfolios that are risk/return optimized. The study shows that it is not possible to implement theoretically efficient asset allocations because of the regulatory requirements for Swiss pension funds. However, Swiss pension funds do not seem to be fully exploiting the diversification potential that is available even within this regulatory framework. This may be due to the application of stricter internal guidelines by the pension funds that impose additional caps on investments in certain asset classes, or the tendency to invest disproportionately in domestic asset classes (‘home bias’). Moreover, in the case of some asset classes (e.g. real estate), pension funds may be unable to find suitable investment properties in the market.

Long-term investment horizon proves beneficial
A longer investment horizon has advantages for investors, as the study shows. As expected, price fluctuations in Swiss equities were greater than for bonds between 1900 and 2012. However, the longer the equities were held, the less average yields varied. After a holding period of 14 years, there were no negative returns. This finding can also be applied to other asset classes. Pension funds clearly exhibit the characteristics of long-term investors. However, the survey shows that in reality, only 39% of pension funds base their investment strategy on a period of more than five years. 59% reported a relatively short-term investment horizon of two to five years, and 36% of pension funds have changed their strategy three to five times over the past ten years. More than half of the pension funds cited the financial crises and the inclusion of new asset classes as the main reasons for these changes.

Pension funds demonstrate a high level of cost consciousness
The survey found that Swiss pension fund managers demonstrate a high level of cost consciousness – taking account of a range of cost factors. More than half of the pension funds regard costs as important or very important, even if they are not currently the main focus of attention at some funds. A further 38% have already examined the question of costs conclusively. Based on these findings, it comes as no surprise that pension funds believe the potential for cost savings has been more or less exhausted. The majority of pension funds also indicated that diversification and net returns were more important criteria when choosing investments than reducing asset management costs at any price. The study’s authors consider this to be a sensible philosophy because it is not only asset management that gives rise to costs; lost sources of income and unexploited diversification potential also represent substantial opportunity costs.

Credit Suisse AG
Credit Suisse AG is one of the world’s leading financial services providers and is part of the Credit Suisse group of companies (referred to here as ‘Credit Suisse’). As an integrated bank, Credit Suisse is able to offer clients its expertise in the areas of private banking, investment banking and asset management from a single source. Credit Suisse provides specialist advisory services, comprehensive solutions and innovative products to companies, institutional clients and high net worth private clients worldwide, and also to retail clients in Switzerland. Credit Suisse is headquartered in Zurich and operates in over 50 countries worldwide. The group employs approximately 45,100 people. The registered shares (CSGN) of Credit Suisse’s parent company, Credit Suisse Group AG, are listed in Switzerland and, in the form of American Depositary Shares (CS), in New York. Further information about Credit Suisse can be found at www.credit-suisse.com.

ENGLEWOOD, Colo.– The Western Union Company (NYSE: WU), a leader in global payment services, today announced that consumers in Austria, Belgium, Germany, the Netherlands and the United Kingdom now have the option to fund online and mobile Western Union Money Transfer® transactions using their bank accounts.

Today’s launch adds to Western Union’s online and mobile bank account-based services, which allow senders to tailor transactions according to their unique needs, including speed of delivery, method of payment, cost of service and consumer preference on the receive side of the transaction.

“Western Union continues to develop online capabilities that cater to the high-principal, account-based customer,” said Khalid Fellahi, senior vice president and general manager, Western Union Digital. “Providing bank account-based funding options expands our relevance to a wider customer set and makes WU.com a compelling choice for banked customers worldwide.”

The new funding option enables account-based payment for online money transfers to more than 200 countries and territories via integration with online banking portals. Senders can direct their money transfers into a receiver’s bank account in certain countries or opt for cash payout at more than 500,000 Western Union retail Agent locations worldwide.

Bank account funding for online and mobile money transfers at WU.com was developed in conjunction with Sofort AG for services in Austria, Germany, Belgium and the United Kingdom, and with iDeal for services in the Netherlands.

Western Union has transactional websites in 24 countries to send money globally to 200 countries and territories. For more information on Western Union’s global capabilities, including online, mobile money transfer and account-based options and retail Agent locations, please visit www.WU.com.

About Western Union
The Western Union Company (NYSE: WU) is a leader in global payment services. Together with its Vigo, Orlandi Valuta, Pago Facil and Western Union Business Solutions branded payment services, Western Union provides consumers and businesses with fast, reliable and convenient ways to send and receive money around the world, to send payments and to purchase money orders. As of June 30, 2014, the Western Union, Vigo and Orlandi Valuta branded services were offered through a combined network of over 500,000 agent locations in 200 countries and territories and over 100,000 ATMs. In 2013, The Western Union Company completed 242 million consumer-to-consumer transactions worldwide, moving $82 billion of principal between consumers, and 459 million business payments. For more information, visit www.westernunion.com.

Today the World Bank (International Bank for Reconstruction and Development, rated Aaa/AAA) priced a $12.057 million World Bank Step-Up Callable Green Bond sold to Merrill Lynch Wealth Management clients. Bank of America Merrill Lynch offered the step-up fixed rate bonds, which are callable after one year. The bonds will pay a 2.32 percent coupon per year for the first five years (stepping up to a maximum final coupon of 8.82 percent per year) and will mature on August 27, 2024 unless called earlier by the World Bank.

World Bank Green Bonds offer an opportunity for investors to support environmental solutions through a high grade fixed income investment. World Bank Green Bonds benefit from the triple-A credit strength of the World Bank and provide comparable returns to other World Bank bonds. World Bank Green Bonds support the financing by the World Bank of projects in its member countries that meet specific criteria for low carbon development. The types of eligible projects include alternative energy installations, funding for new technologies that reduce greenhouse gas emissions, reforestation, watershed management and flood protection among others.

“We are pleased to work with Bank of America Merrill Lynch to provide an opportunity for their clients to help finance activities that promote low carbon and climate resilient development and growth in emerging economies. We are delighted with the strong demand for this product, demonstrating that individual investors also have a keen interest in the issue of climate-smart development,” said Doris Herrera-Pol, director and global head of Capital Markets at the World Bank.

“Clients continue to turn to us for opportunities to express their social, political and environmental values through their investments,” said Andy Sieg, head of Global Wealth and Retirement Solutions for Bank of America Merrill Lynch. “This offering represents another milestone in our efforts to help individuals and families achieve their goals through investments with social purpose.”

“We are pleased to work with the World Bank once again to offer clients the opportunity to invest in securities that can benefit the environment. As demand for these products continues to grow across a wide range of investors, we look forward to continuing our partnership with the World Bank in this area,” said Andrew R. Karp, co-head of Americas Investment Grade Capital Markets at Bank of America Merrill Lynch.

This offering of green bonds is consistent with the Sustainable Energy for All Initiative (www.SE4ALL.org). It demonstrates how green bonds are attracting new capital, not only from institutional investors, but also from individual investors. This is the third time World Bank Green Bonds have been offered to individual investors through Bank of America Merrill Lynch. The World Bank has been a leader in developing the Green Bond market from an issuer’s standpoint, while Bank of America Merrill Lynch continues to be a leader in the development of this market as an underwriter. Merrill Lynch Wealth Management, an innovator in the rapidly growing social impact investing arena, was the first U.S. wealth management firm to offer such World Bank Green Bonds to U.S. individual investors.

About the World Bank
The World Bank (International Bank for Reconstruction and Development, IBRD), rated Aaa/AAA (Moody’s/S&P), is an international organization created in 1944. It operates as a global development cooperative owned by 188 nations. It provides its members with financing, expertise and coordination services so they can achieve equitable and sustainable economic growth in their national economies and find effective solutions to pressing regional and global economic and environmental problems. The World Bank has two main goals: to end extreme poverty and promote shared prosperity. It seeks to achieve them primarily by providing loans, risk management products, and expertise on development-related disciplines and by coordinating responses to regional and global challenges. It has been issuing bonds in the international capital markets for over 60 years to fund its activities.

Information on bonds for investors is available on the World Bank Treasury website: www.worldbank.org/debtsecurities.
For more information about World Bank green bonds, see http://treasury.worldbank.org/cmd/htm/WorldBankGreenBonds.html.
For more information about World Bank structured notes, see http://treasury.worldbank.org/cmd/htm/StructuredNotes.html.
Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small businesses, middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 49 million consumer and small business relationships with approximately 5,000 retail banking offices and approximately 16,000 ATMs and award-winning online banking with 30 million active users and more than 15 million mobile users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and a member of FINRA and SIPC, and, in other jurisdictions, locally registered entities. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.
Visit the Bank of America newsroom for more Bank of America news.
www.bankofamerica.com

New York, NY – German and French companies are using renminbi to trade (RMB) and now, increasingly, American businesses are too.

More U.S. businesses are using RMB to settle trade and more plan to use it amid expectations by business leaders that their trade with China will increase in the next 12 months.

Seventeen percent of U.S. businesses leaders said their companies had used RMB to settle trade this year, up from nine percent last year, according to an HSBC global survey of international business decision makers in 11 countries, including 102 in the U.S. The global average was 22 percent. This places U.S. businesses just behind French (26 percent) and German (23 percent) businesses in terms of RMB use outside of China, Hong Kong and Taiwan.

Furthermore, 22 percent of U.S. businesses, who aren’t already using RMB, said they plan to use it within the next six months to five years, up from eight percent a year ago. Globally, an average of 32 percent of leaders said they planned to use RMB in the future.

“As China continues to internationalize its currency, there are more opportunities and considerations in trade, investment, cash management and funding for U.S. companies,” said Steve Bottomley, Group General Manager, Senior Executive Vice President, and Head of Commercial Banking for North America, HSBC Bank USA, N.A. “U.S. businesses are becoming more comfortable using RMB and are increasingly making it, or looking to make it, a part of their competitive strategy and planning.”

Trade with China Set to Grow
U.S. business leaders may have good reason to do so. In the next 12 months, 55 percent of U.S. businesses said they expect trade with China, the world’s largest trading nation, to grow, though this is down from last year, when76 percent said it would.

U.S. businesses now sell about seven percent of their exports to China, compared to just one percent a decade ago, and HSBC expects that to increase to 14 percent by 2030. HSBC also forecasts that a third of China’s trade will be settled in RMB by 2015 and that the currency will be fully convertible by 2017.

Financial, Relationship Benefits from Using RMB
Still, most U.S. businesses surveyed said they don’t use RMB because they don’t understand or aren’t aware of the benefits of using it.

However, two-thirds of companies in mainland China and Hong Kong said foreign firms doing business with China gain financial and relationship advantages from using RMB, including receiving discounts on RMB-denominated transactions. Additionally, global leaders said the top reasons for using RMB were meeting demand from counterparties, minimizing foreign exchange risks and increased convenience.

“U.S. businesses can use RMB to hedge against fluctuations and potentially reach additional suppliers,” said Martin Brown, Executive Vice President and Head of Large Corporate, Commercial Banking, HSBC Bank USA, N.A. “It may also improve business relationships by making it more convenient for their Chinese counterparties, who may be reluctant to take on dollar exposure because their cost base is denominated in renminbi.”
When asked what might help non-RMB users become ones, global business leaders said more simple procedures, further liberalization of the exchange rate; expansion of RMB eligible transactions; and the availability of more guidance.

To learn more about RMB, please visit:
HSBC RMB Resource Centre www.rmb.hsbc.com or HSBC Global Connections www.globalconnections.hsbc.com.

About the RMB Survey
HSBC commissioned Nielsen to conduct a market survey of 1,304 international companies that currently do business with Mainland China or are a business in Mainland China that imports/exports outside of the region. The survey was in field between 3 April and 7 May 2014 and was undertaken to understand clients’ attitudes towards using RMB, reasons of using / not using RMB for trade and investment activities, as well as other insights they can offer about the RMB. The research surveyed international businesses in Australia (n=100), China (n=200), Germany (n=100), Hong Kong (n=200), Singapore (n=100), the UK (n=100), the USA (n=100), Canada (n=100), Taiwan (n=100), France (n=100), and the UAE (n=100). Of the companies surveyed, approximately 50% had an annual sales turnover between of US$3M-50M, 40% had a turnover of US$50M-500M and 10% had an annual sales turnover above US$500M. (Copyright © 2014, The Nielsen Company)

About Nielsen
Nielsen N.V. (NYSE: NLSN) is a global information and measurement company with leading market positions in marketing and consumer information, television and other media measurement, online intelligence and mobile measurement. Nielsen has a presence in approximately 100 countries, with headquarters in New York, USA and Diemen, the Netherlands.

HSBC Commercial Banking
For nearly 150 years we have been where the growth is, connecting customers to opportunities. Today, HSBC Commercial Banking serves businesses ranging from small enterprises to large multinationals in almost 60 developed and faster-growing markets around the world. Whether it is working capital, trade finance or payments and cash management solutions, we provide the tools and expertise that businesses need to thrive. With a network covering three quarters of global commerce, we make HSBC the world’s leading international trade and business bank. For more information see www.hsbc.com/1/2/business-and-commercial

About HSBC Bank USA, N.A.
HSBC Bank USA, National Association (HSBC Bank USA, N.A.), with total assets of US $179.6bn as of 31 March 2014 (US GAAP), serves 3 million customers through retail banking and wealth management, commercial banking, private banking, asset management, and global banking and markets segments. It operates more than 240 bank branches throughout the United States. There are over 155 in New York State as well as branches in: California; Connecticut; Delaware; Washington, D.C.; Florida; Maryland; New Jersey; Oregon; Pennsylvania; Virginia; and Washington State. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., an indirect, wholly-owned subsidiary of HSBC North America Holdings Inc. HSBC Bank USA, N.A. is a member of the FDIC.

WASHINGTON – The U.S. Treasury Department today announced that it has guaranteed $325 million in new bonds to help support economic development opportunities in low-income and underserved communities across the country. The funding, provided through the Community Development Financial Institutions (CDFI) Bond Guarantee Program, is designed to help CDFIs fill a financing gap in underserved areas by providing long-term, fixed rate capital.

“The CDFI Bond Guarantee Program expands Obama Administration efforts to meet the economic and community development needs of underserved urban and rural areas,” said Mary J. Miller, Under Secretary for Domestic Finance at the U.S. Treasury Department. “These borrowers have a national footprint in community development financing and a solid history of delivering innovative financial products that spur job growth, provide small business loans, and finance quality affordable housing, and community facilities. This new tool – the first of its kind by the CDFI Fund – will help these organizations make even more critical investments in communities across the country.”

The CDFI Bond Guarantee Program was established by the Small Business Jobs Act, which directed Treasury to, among other things, guarantee the full amount of bonds issued to support CDFIs that make investments for eligible community and economic development purposes. Those purposes include financing for small businesses, rural infrastructure, day care centers, rental housing, healthcare facilities, senior living and long-term care facilities, charter schools, and commercial real estate in low-income or underserved rural areas, among others.

The eligible CDFIs and qualified issuers in the inaugural round of the CDFI Bond Guarantee Program are:

Clearinghouse CDFI – Will receive $100 million on account of a bond issued by Opportunity Finance Network and guaranteed by Treasury;
Community Development Trust, LP – Will receive $125 million on account of a bond issued by the Community Reinvestment Fund and guaranteed by Treasury; and
Local Initiatives Support Corporation and Enterprise Community Loan Fund, Inc. –
Will each receive $50 million on account of two bonds issued by Bank of America CDFI Funding Corporation and guaranteed by Treasury.

Treasury will announce additional borrowers selected to participate in the program in coming weeks.

The CDFI Bond Guarantee Program will sunset September 30, 2014, unless it is reauthorized by Congress. The President’s Fiscal Year 2015 budget proposes to extend the program.

Benjamin M. Lawsky, Superintendent of Financial Services, announced an order today regarding Standard Chartered Bank’s (“SCB”) failures to remediate anti-money laundering compliance problems as required in the Bank’s 2012 settlement with the New York State Department of Financial Services (NYDFS).

Under the order, SCB will suspend dollar clearing through its New York Branch for high-risk retail business clients at its SCB Hong Kong subsidiary; exit high-risk client relationships within certain business lines at its branches in the United Arab Emirates; not accept new dollar-clearing clients or accounts across its operations without prior approval from DFS; pay a $300 million penalty; as well as take other remedial steps.

Superintendent Lawsky said: “If a bank fails to live up to its commitments, there should be consequences. That is particularly true in an area as serious as anti-money-laundering compliance, which is vital to helping prevent terrorism and vile human rights abuses.”

SCB’s compliance remediation failures were uncovered by DFS’ independent monitor, which the Department installed at Standard Chartered as part of the 2012 agreement. The DFS monitor’s review of Standard Chartered’s transaction monitoring systems found that the Bank failed to detect a large number of potentially high-risk transactions for further review. A significant amount of the potentially high-risk transactions the system has failed to detect originated from its Hong Kong subsidiary (“SCB Hong Kong”) and SCB’s branches in the United Arab Emirates (“SCB UAE”), among others.

In connection with the implementation of its transaction monitoring system, SCB NY had created a rulebook (“SCB Rulebook”) with procedures to aid it in detecting high-risk transactions. The SCB Monitor gathered information and attempted to test the SCB Rulebook. After that review, the Monitor determined that the SCB Rulebook contained numerous errors and other problems, resulting in SCB’s failure to identify high-risk transactions for further review. SCB failed to detect these problems because of a lack of adequate testing both before and after implementation of the transaction monitoring system, and failed to adequately audit the transaction monitoring system.

Under today’s order, Standard Chartered will take a number of steps, including the following:
SCB NY will suspend its dollar clearing operations for high-risk retail business clients of SCB Hong Kong. Additionally, SCB has commenced a process of exiting high-risk small and medium business clients (“SME”) at SCB UAE. If exiting of the SME clients at SCB UAE is not completed within 90 days, SCB will suspend U.S. Dollar clearing through SCB NY for those clients.
SCB NY will not, without the prior approval of DFS – in consultation with the monitor – open a U.S. Dollar demand deposit account for any customer who does not already have such an account with SCB NY.
SCB will pay a $300 million penalty;
SCB will provide a comprehensive remediation action plan with appropriate deadlines and benchmarks;
SCB will appoint a competent and responsible SCB executive who will report directly to the SCB CEO to oversee the remediation;
SCB will extend the engagement of the Monitor for two additional years;
SCB will implement a series of enhanced due diligence and know-your-customer requirements – such as demanding greater information regarding the originators and beneficiaries of transactions – for its dollar clearing operations.

WASHINGTON, August 8, 2014 – The World Bank Group and the African Union Commission (AUC) today signed an International Development Association (IDA*) grant of US$25 million to support capacity development of the AUC and other African Union organs.

The funding for the Support for Capacity Development of the AUC and other African Union Organs Project will strengthen the AUC’s capacity to facilitate economic development and transformation by improving institutional efficiency. The agreement was signed by Jim Yong Kim, the World Bank President and H.E. Dr. Nkosazana Dlamini Zuma, AUC Chairperson.

“Our partnership with AUC opens new doors for collective action by bringing global solutions for the benefit of Africa to promote economic transformation and development,” said Jim Yong Kim, World Bank Group’s President.

The project focuses on internal staffing and management systems, supporting external partnerships and programs to strengthen regional economic development initiatives in regional trade, energy, infrastructure, governance and natural resource management benefiting African Union member states and their people.

“This support is very important as it will help us enhance our corporate governance and management systems to improve the lives of African women, youth and citizens. But more than that, I appreciate the World Bank’s willingness to support the AU as an organization that represents 54 African member states,” said Dr. Nkosazana Dlamini Zuma, the Africa Union Commission Chairperson.

The project will assist the AU Commission to implement its Strategic Plan 2014-17 and Agenda 2063, its flagship road map for African development over the next 50 years which calls for regional economic transformation by encouraging the participation of all stakeholders including the AU’s Member States, Organs, and Permanent Representatives Committee (PRC); as well as Regional Economic Communities (RECs), the private sector, civil society, media, development partners, African diaspora and citizens.

“We are delighted to work with the AUC, the continent’s leading regional institution, and its development partners to expand the reach and impact of its economic development programs,” said Makhtar Diop, World Bank Vice President for Africa.

NEWARK, N.J., August 13, 2014 – Despite the sentiment that we have entered a digitally dominant age, traditional benefits communication vehicles have not yet become obsolete. Employers report they are taking a multichannel approach to meet the needs and preferences of their employees according to Delivering the Benefits Message, the fifth in a series of five research briefs based on The Prudential Insurance Company of America’s (Prudential’s) Eighth Annual Study of Employee Benefits: Today & Beyond. Group meetings and seminars are still considered the most successful communication methods with 74% of employers using them with great to moderate success.

“Digital communication vehicles continue to develop and progress around us but are not completely eclipsing traditional avenues of communication,” said Jean Wiskowski, vice president, sales strategies, Prudential Group Insurance. “Rather, employers are finding themselves relying on a full suite of tools to reach a dynamic and evolving workforce.”

Individual meetings, email, toll-free numbers and mail at home rounded out the top five most successful communication methods. Both targeted marketing mailings and mail received at home drastically spiked year- over- year with employers reporting each increased by 13% and 14% respectively. Many employers also reported that newer methods of communication are being used with great success including external social media networking and video, CD-ROM or DVD presentations.

Employees did exhibit a preference for communication vehicles in the digital realm with work email (47%), personal email (28%) and online avatar (19%) being named as the top three. Group meetings (19%) and individual meetings (18%) rounded out the top five. For employees the trajectory of benefits communications is clearly moving towards digital: Over the last year more employees have enrolled, obtained plan information and used financial planning tools on computers and mobile devices. Employees also feel that a majority of benefits-related activities will be available via smartphones or tablets in the next five years.

“As individuals increasingly choose digital tools to take in information, benefits communications will be no different. Employers and carriers will need to look at successful aspects of non-digital communications and incorporate them into the digital realm,” said Wiskowski.

As the trend towards year-round benefits education and enrollment strategy gathers steam, employers are examining additional methods carriers can use to communicate to employees outside of their annual enrollment period. To support this strategy, employers reported email would be the optimal vehicle with 84% stating it would be the best method. This finding also echoes employee sentiment. Home mailing (77%) and signing up on a benefits website (76%) rounded out the top three best communications methods outside of enrollment for employers. Notably, 46% of employers said that text messages to mobile phones were a good way to reach employees.

“The current environment for benefits communication vehicles is an expanding and changing one. As employers, brokers and employees begin to examine emerging communication vehicles, it is important to recognize the value traditional ones still hold,” Wiskowski said.

Delivering the Benefits Message is the last in a series of five research briefs that highlight the major findings from Prudential’s Eighth Annual Study of Employee Benefits: Today & Beyond. The research was conducted via the internet during August and September of 2013, and consisted of three distinct surveys—one for plan sponsors, another for benefits brokers and consultants and a third for plan participants.

Prudential Group Insurance manufactures and distributes a full range of group life, long-term and short-term disability and corporate and trust-owned life insurance in the U.S. to institutional clients primarily for use in connection with employee and membership plans. The business also sells critical illness insurance, accidental death and dismemberment and other ancillary coverages and provides plan administrative services in connection with insurance coverages.

Prudential Financial, Inc. (NYSE:PRU) a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.

NEW YORK– American International Group, Inc. (NYSE:AIG) today announced that it has agreed to acquire Ageas Protect Limited from Ageas Group, the Belgium-based international insurer. Total transaction consideration is £181 million (approximately USD $305 million), subject to closing adjustments. The transaction is expected to close in the fourth quarter of 2014, pending regulatory approval.

Ageas Protect is a leading provider of life protection products in the UK, offering term life, critical illness, and income protection coverage to consumers. It was launched in July 2008 and today has a 4.8% share of new protection business across the UK market, and an 8.4% share of the important UK Independent Financial Advisor (“IFA”) channel. The company produced premiums of £91.8 million in 2013, employs approximately 220 people in the UK, and has over 300,000 customers in the UK, Channel Islands, and Isle of Man.

“UK life protection is an attractive market for AIG,” said Kevin Hogan, Chief Executive Officer of Global Consumer Insurance, AIG. “We are excited about the prospect of enhancing AIG’s significant presence and existing insurance offerings in the UK, and we are committed to the management team, employees, and distributors who have made Ageas Protect the strong company it is today.”

Ageas Protect will become part of AIG’s Global Consumer business, which in the UK offers personal accident, health, and travel insurance coverage to consumers, as well as customized insurance solutions for high net worth individuals through AIG Private Client Group.

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com | YouTube: www.youtube.com/aig |Twitter: @AIGInsurance | LinkedIn: http://www.linkedin.com/company/aig |

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all countries, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

Bank of America Merrill Lynch, a global leader in payments, recently hosted a webcast on how to successfully navigate the payments landscape in Europe. The event was aimed at U.S.-headquartered businesses planning to expand their operations into the region.

Ken Ullmann, head of U.S. Central Region Treasury Sales for Global Commercial Banking, who led the discussion explained, “Based on BofA Merrill’s experience, there are five common European payment considerations that are frequently discussed with U.S. clients. While it’s challenging to predict which of these factors will influence a business a decade from now, a company’s future success can be shaped by what clients do today.”

During the webcast, these five considerations were ranked through a poll*. Results were:
Using the right mix of payment instruments for each market – 37 percent.
Evaluating how to set up FX controls (taking international payment flows into consideration) – 27 percent.
Recognising when to establish local accounts to support transaction needs – 21 percent.
Being aware of cultural differences that can impact the payments experience – 8 percent.
Deciding on the location for a regional hub – 7 percent.

Ad van der Poel, EMEA head of Global Transaction Services (GTS) Product Management, Corporates, provided commentary during the webcast and reinforced that the right mix of payment instruments should be the highest priority. “Even though cheques are still widely used in the U.S., there are a number of countries in Europe, such as Belgium, that no longer use this payment method.”

“Europe is an important trading partner for U.S. companies and taking its complex payments landscape into consideration, there are also a variety of external factors to consider such as different regulations, country volatility and multiple currencies. Furthermore, the region includes a large number of countries, all at varying stages of development and maturity from a business and banking standpoint,” he added.

Alex Weaving, head of Commercial Sales for GTS EMEA, also provided his expertise during the event and agreed that implementing payment instruments when doing business in different countries is not a straightforward process. “While SEPA is used for low value payments and receipts in the eurozone, some countries still apply their own domestic instruments. In addition, multiple systems are used for high value wires which can further complicate the management of payments across the region.”

While the poll indicated that only 8 percent of clients focus on cultural differences, Weaving highlighted that it is a key area that should not be forgotten. “As most communication is conducted over the phone or through email, even the simplest things such as using the correct titles – Herr in Germany or Signore in Italy – and ensuring that local language is used on invoices, can make all the difference to a smooth transition in developing relationships with your new business partners.”
* 62 clients completed the poll

Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small businesses, middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 49 million consumer and small business relationships with approximately 5,000 retail banking offices and approximately 16,000 ATMs and award-winning online banking with 30 million active users and more than 15 million mobile users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

Bank of America Merrill Lynch is the marketing name for the global banking and global markets businesses of Bank of America Corporation. Lending, derivatives, and other commercial banking activities are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., member FDIC. Securities, strategic advisory, and other investment banking activities are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, Merrill Lynch, Pierce, Fenner & Smith Incorporated, which is a registered broker-dealer and member of SIPC, and, in other jurisdictions, a locally registered entity. Merrill Lynch, Pierce, Fenner & Smith Incorporated and Merrill Lynch Professional Clearing Corp. are registered as futures commission merchants with the CFTC and are members of the NFA. Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured * May Lose Value * Are Not Bank Guaranteed.
– See more at: http://newsroom.bankofamerica.com/press-releases/commercial-and-middle-market-banking/bank-america-merrill-lynch-reveals-europe-paymen#sthash.7HhqnCSm.dpuf

Information received since the Federal Open Market Committee met in June indicates that growth in economic activity rebounded in the second quarter. Labor market conditions improved, with the unemployment rate declining further. However, a range of labor market indicators suggests that there remains significant underutilization of labor resources. Household spending appears to be rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Fiscal policy is restraining economic growth, although the extent of restraint is diminishing. Inflation has moved somewhat closer to the Committee’s longer-run objective. Longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. The Committee expects that, with appropriate policy accommodation, economic activity will expand at a moderate pace, with labor market indicators and inflation moving toward levels the Committee judges consistent with its dual mandate. The Committee sees the risks to the outlook for economic activity and the labor market as nearly balanced and judges that the likelihood of inflation running persistently below 2 percent has diminished somewhat.

The Committee currently judges that there is sufficient underlying strength in the broader economy to support ongoing improvement in labor market conditions. In light of the cumulative progress toward maximum employment and the improvement in the outlook for labor market conditions since the inception of the current asset purchase program, the Committee decided to make a further measured reduction in the pace of its asset purchases. Beginning in August, the Committee will add to its holdings of agency mortgage-backed securities at a pace of $10 billion per month rather than $15 billion per month, and will add to its holdings of longer-term Treasury securities at a pace of $15 billion per month rather than $20 billion per month. The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. The Committee’s sizable and still-increasing holdings of longer-term securities should maintain downward pressure on longer-term interest rates, support mortgage markets, and help to make broader financial conditions more accommodative, which in turn should promote a stronger economic recovery and help to ensure that inflation, over time, is at the rate most consistent with the Committee’s dual mandate.

The Committee will closely monitor incoming information on economic and financial developments in coming months and will continue its purchases of Treasury and agency mortgage-backed securities, and employ its other policy tools as appropriate, until the outlook for the labor market has improved substantially in a context of price stability. If incoming information broadly supports the Committee’s expectation of ongoing improvement in labor market conditions and inflation moving back toward its longer-run objective, the Committee will likely reduce the pace of asset purchases in further measured steps at future meetings. However, asset purchases are not on a preset course, and the Committee’s decisions about their pace will remain contingent on the Committee’s outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of such purchases.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that a highly accommodative stance of monetary policy remains appropriate. In determining how long to maintain the current 0 to 1/4 percent target range for the federal funds rate, the Committee will assess progress–both realized and expected–toward its objectives of maximum employment and 2 percent inflation. This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial developments. The Committee continues to anticipate, based on its assessment of these factors, that it likely will be appropriate to maintain the current target range for the federal funds rate for a considerable time after the asset purchase program ends, especially if projected inflation continues to run below the Committee’s 2 percent longer-run goal, and provided that longer-term inflation expectations remain well anchored.

When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run.

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Stanley Fischer; Richard W. Fisher; Narayana Kocherlakota; Loretta J. Mester; Jerome H. Powell; and Daniel K. Tarullo. Voting against was Charles I. Plosser who objected to the guidance indicating that it likely will be appropriate to maintain the current target range for the federal funds rate for “a considerable time after the asset purchase program ends,” because such language is time dependent and does not reflect the considerable economic progress that has been made toward the Committee’s goals.

This is courtesy of www.federalreserve.gov

NEW YORK– American International Group, Inc. (NYSE:AIG) today announced that it has reached a global resolution of its residential mortgage related disputes with Bank of America. The resolution includes its claims pending in New York and California federal courts related to the creation, offering, and sale of RMBS from which AIG and its subsidiaries suffered losses either directly on their own account or in connection with their participation in AIG’s securities lending program. The resolution also covers AIG’s objections to the $8.5 billion settlement of Countrywide’s mortgage repurchase obligations to various investors, as well as disputes concerning the issuance of mortgage guaranty insurance by AIG’s United Guaranty subsidiaries to Bank of America and Countrywide. Under the terms of the settlement, AIG will receive $650 million in cash plus its pro rata share of whatever amount is ultimately paid out to investors in connection with the Countrywide repurchase settlement. In addition, the parties have agreed, subject to the approval of Fannie Mae, Freddie Mac and certain other mortgage holders, to resolve the outstanding mortgage guaranty claims disputes in accordance with agreed-to claims processes and payment formulae.

“We are very pleased to have this matter resolved,” said Robert H. Benmosche, AIG President and Chief Executive Officer. “Today’s settlement is a just resolution that’s in the best interest of our various stakeholders.”

American International Group, Inc. (AIG) is a leading international insurance organization serving customers in more than 130 countries and jurisdictions. AIG companies serve commercial, institutional, and individual customers through one of the most extensive worldwide property-casualty networks of any insurer. In addition, AIG companies are leading providers of life insurance and retirement services in the United States. AIG common stock is listed on the New York Stock Exchange and the Tokyo Stock Exchange.

Additional information about AIG can be found at www.aig.com

AIG is the marketing name for the worldwide property-casualty, life and retirement, and general insurance operations of American International Group, Inc. For additional information, please visit our website at www.aig.com. All products and services are written or provided by subsidiaries or affiliates of American International Group, Inc. Products or services may not be available in all jurisdictions, and coverage is subject to actual policy language. Non-insurance products and services may be provided by independent third parties. Certain property-casualty coverages may be provided by a surplus lines insurer. Surplus lines insurers do not generally participate in state guaranty funds, and insureds are therefore not protected by such funds.

WASHINGTON, D.C., – JPMorgan Chase & Co. today launched Small Business Forward℠, a five-year, $30 million grant program to boost small business support networks that help growing enterprises in specific industries. Small Business Forward connects entrepreneurs with critical resources to help their businesses grow, create jobs and strengthen communities.

Small businesses can increase their impact on a region’s competitiveness and economic output through business concentrations known as economic “clusters.” In fact, nearly half of the high performing clusters in the nation’s 10 largest metros grew roughly three times faster than other local businesses between 2003 and 2011, according to a new study from the Initiative for a Competitive Inner City (ICIC).

“Beyond their vital role in our economy, small businesses are often the source of innovation and inspiration,” said Scott Geller, CEO of Chase Business Banking. “Helping local, small business clusters grow faster and create more jobs will take JPMorgan Chase’s involvement in the entrepreneurial community to a new level.”

JPMorgan Chase launched Small Business Forward at a forum supported by Maria Contreras-Sweet, Administrator of the U.S. Small Business Administration; U.S. Senator Maria Cantwell, chair of the Senate Small Business and Entrepreneurship Committee; U.S. Senator James Risch, the committee’s ranking member and Rep. Sam Graves, chair of the House Small Business Committee.

Small Business Forward will fund nonprofit cluster organizations that work with small businesses concentrated in a single sector. In addition to supporting strategic planning and research, JPMorgan Chase’s grants will help cluster organizations provide participating small businesses with:

Networking that helps businesses connect with investors, mentors, competitors and customers;
Partnerships with colleges and universities that help drive industry research and innovation;
Workforce and management training that gives them access to the skilled employees and managers they need to grow;
Supplier networks that offer specialized products and services to cluster businesses; and
Export promotion to help businesses access new markets, and source new customers and suppliers.
In addition to their impressive economic growth, businesses participating in high performing clusters typically add more jobs than other businesses in local/regional markets, according to the ICIC research, which was commissioned by JPMorgan Chase. Between 2003 and 2011, many small business clusters outperformed overall employment growth in their metropolitan areas. For example, the Education and Knowledge Creation cluster in Los Angeles increased employment growth by 31 percent compared to general employment growth rates in the city during that eight year period. The Oil and Gas Production and Transportation cluster increased employment growth by 47 percent in Houston during that same time frame. ICIC is a nonprofit research and strategy organization founded by Harvard Business School Professor Michael Porter in 1994. ICIC’s extensive knowledge of urban economies and small businesses has contributed to the advancement of cluster theory and practice.

“Clusters are driving economic growth in major cities, contributing to job creation, higher wages and innovation. But the impact of clusters on small business growth could be strengthened. Most cities currently lack a unifying strategy for supporting clusters and small businesses,” said Kim Zeuli, ICIC’s Senior Vice President and Director of Research.

Supportive of regional, industry-specific clusters, the SBA applauded JPMorgan Chase for developing the Small Business Forward initiative.

“America’s forward-looking companies are investing in clustered communities, because they see the return on investment,” said SBA Administrator Contreras-Sweet. “Clusters speed commercially viable ideas from the drawing board to the marketplace. These are communities with buy-in at every level and a proven support structure that nurtures success.”

Inaugural investments of Small Business Forward’s five year, $30million commitment will touch the following ten cities across the country and then expand to additional markets in the US and abroad:

Chicago: Manufacturing Renaissance’s Austin Manufacturing Innovation Park is developing a facility for advanced manufacturing companies on Chicago’s West Side.

Detroit: Eastern Market’s new community kitchen gives small business owners access to professional kitchens and connections, and Bizdom is strengthening the environment for e-commerce businesses in Detroit.

Kansas City: The University of Missouri-Kansas City’s Free Enterprise Center will provide growing businesses access to high tech equipment including 3D printing to help them develop new products.

Los Angeles: LA Cleantech has brought together business, government, and academia in LA to grow the city’s cleantech sector and is now developing satellites throughout California and internationally.

Milwaukee: The Water Council connects freshwater research, innovation, education, and business development to make Milwaukee a hub of water technology.

Newark: The New Jersey Innovation Institute applies the intellectual and technological resources of the New Jersey Institute of Technology to challenges identified by industry partners.

New Orleans: New Orleans BioInnovation Center is a health sciences incubator that supports promising, high growth companies.

San Francisco: QB3 is a lead partner of BioSF, a collaboration between academia and government to develop a biotech industry cluster in San Francisco.

Seattle: Washington Interactive Network is growing interactive media and technology companies that are generating high-quality jobs in across Puget Sound.

St. Louis: BioSTL is building the regional infrastructure in the bioscience sectors of health and healthcare IT.

LA Cleantech provides a good example of the kinds of success that today’s clusters are producing. In less than three years, LA Cleantech has helped more than 30 companies create 400 new jobs, raise $40 million in capital and generate more than $90 million in long-term economic value for the City of Los Angeles.

“The best way to build new companies is by creating tightly focused, all-inclusive, small business clusters that harness a region’s strengths,” said Fred Walti, LA Cleantech’s executive director. “With JPMorgan Chase’s support, we’re building a cleantech cluster for Los Angeles that’s the second largest green economy in the nation with the highest number of cleantech start-ups.”

Small business advocates in Congress and mayors of leading American cities reaffirmed the importance of the Small Business Forward initiative and clusters as economic development tools to accentuate their regional economic strengths and sow the seeds of innovation.

U.S. Senator James Risch (ID), Ranking Member, Senate Small Business and Entrepreneurship Committee: “I want to commend JPMorgan Chase for making a sizeable contribution to help small businesses innovate and compete. Private sector experience and expertise can be a catalyst to small firms, especially startups, and I look forward to seeing how this investment helps entrepreneurs expand and hire.”

Rep. Sam Graves (MO-06), Chair, House Small Business Committee: “Private sector investments like this not only fuel business startups but really transform communities and local economies. We applaud JPMorgan Chase for providing private sector leverage for these organic movements of innovation and ingenuity. As our nation’s recovery continues, this program will truly assist small business to network and find resources within their local community that allow them to grow and create jobs.”

Chicago Mayor Rahm Emanuel: “In Chicago, we are pursuing bold new strategies to grow our economy. JPMorgan Chase’s support of the Austin Manufacturing Innovation Park is a key element of this remarkable public-private partnership that will bring hundreds of good jobs to Austin and the West Side.”

Los Angeles Mayor Eric Garcetti: “JPMorgan Chase’s support of the clean tech sector in Los Angeles is an innovative investment in our city’s future. Small businesses are a key engine of job creation, and JPMorgan Chase’s initiative helps connect small businesses with the resources they need to grow.”

New Orleans Mayor Mitch Landrieu: “As we continue to rebuild New Orleans, we have experienced the eye-opening impact that focused support and investment have in creating a new economy based on knowledge, technology and innovation. We have especially appreciated JPMorgan Chase’s support of our economic blueprint, Prosperity NOLA, and the NOLA BioInnovation Center, which points to the potential New Orleans has to become a world class hub for bioscience and business overall.”

For more information about the grants and reseasrch, visit www.jpmorganchase.com/smallbusinessforward and follow #SmallBizForward on Twitter.

About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.

New York – Citigroup today announced that it has reached an agreement to settle the ongoing investigation of the Residential Mortgage-Backed Securities (RMBS) Working Group, part of the Financial Fraud Enforcement Task Force. Today’s agreement resolves actual and potential civil claims by the U.S. Department of Justice (the DOJ), several state attorneys general (State AGs), and the Federal Deposit Insurance Corporation (the FDIC) relating to RMBS and collateralized debt obligations (CDOs) issued, structured or underwritten by Citi between 2003 and 2008.

Under the terms of the settlement, Citigroup will pay a total of $4.5 billion in cash and provide $2.5 billion in consumer relief. The cash portion consists of a $4 billion civil monetary payment to the DOJ and $500 million in compensatory payments to the State AGs and the FDIC. The consumer relief will be in the form of financing provided for the construction and preservation of affordable multifamily rental housing, principal reduction and forbearance for residential loans, as well as other direct consumer benefits from various relief programs. Citigroup has agreed to provide the consumer relief by the end of 2018.

Michael Corbat, Chief Executive Officer of Citigroup, said, “The comprehensive settlement announced today with the U.S. Department of Justice, state attorneys general, and the FDIC resolves all pending civil investigations related to our legacy RMBS and CDO underwriting, structuring and issuance activities. We also have now resolved substantially all of our legacy RMBS and CDO litigation. We believe that this settlement is in the best interests of our shareholders, and allows us to move forward and to focus on the future, not the past.”

In connection with the settlement, Citigroup will take a charge of approximately $3.8 billion pre-tax in the second quarter of 2014. Citigroup will issue its second quarter results via press release at approximately 8 a.m. today.

Citi
Citi, the leading global bank, has approximately 200 million customer accounts and does business in more than 160 countries and jurisdictions. Citi provides consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, transaction services, and wealth management.

Additional information may be found at www.citigroup.com

Global investors have regained a strongly bullish stance on the outlook for equity markets in the second half of 2014, according to the BofA Merrill Lynch Fund Manager Survey for July.

A net 61 percent of global asset allocators are now overweight equities. This ranks as the survey’s highest reading on this measure since early 2011 and represents the panel’s second-strongest response ever.

This aggressive positioning for recovery in H2 reflects a significant increase in investors’ inflation expectations. A net 71 percent expect global core CPI to be higher in 12 months, up 13 percentage points since last month. This marks a cyclical high for the survey. Exposure to commodities, an asset class especially sensitive to inflation, has risen to its strongest in more than a year.

A growing number of investors now see inflation moving above trend levels while global growth remains below-trend. Confidence in macroeconomic performance still remains fairly high, though. A net 69 percent forecast that the world economy will strengthen over the next year.

Neither valuation nor tail risks deter fund managers from their optimism. A net 21 percent regard stock markets as overvalued – the survey’s highest reading since 2000. Concerns over potential Chinese debt defaults, “asset manias” and eurozone deflation have all faded since last month. The prospect of geopolitical crises now stands out as the greatest tail risk and threat to financial market stability.
“Improving investor sentiment on global growth, inflation, equities and risk-taking are all testament to a potential macro normalization in the second half. This could eventually feed into a normalization of rates. If growth does pick up, volatility will rise too,” said Michael Hartnett, chief investment strategist at BofA Merrill Lynch Research. “As Europe’s recovery falters the region is becoming a global passenger as investors pin their hopes on growth elsewhere,” said Obe Ejikeme, European equity and quantitative strategist.

Qualms over core Europe
Regional investors now see global re-acceleration as the likeliest source of eurozone growth. Thirty-three percent of respondents point to this driver after a rise of eight percentage points month-on-month. It has overtaken a renewed stimulus program as the panel’s primary driver of regional recovery.
Global survey respondents have further postponed the timing of anticipated quantitative easing by the European Central Bank. Twenty-five percent now expect QE to take place in 2015, up from June’s 15 percent, while only 12 percent see it starting in Q3.

Against this background, the panel has lost conviction towards European equities. Only a net 10 percent would now most favor overweighting the region across the next year, down 11 percentage points from June’s reading.

German equities have lost favor in particular. Only a net 12 percent of regional fund managers would overweight this market over the next 12 months, compared to a net 31 percent last month.

Periphery appetite fading
Investors’ appetite for exposure to the eurozone periphery is also declining. U.S. high-yield has overtaken EU peripheral debt (down nine points month-on-month) as the investment trade that fund managers regard as most crowded.

Confidence in periphery equities has fallen, too. Most notably, only a net 3 percent of regional investors now see Italy as one of the European equity markets they will seek to overweight over the next year, down 16 percentage points from last month. Appetite for Spain has barely weakened, however.

Call for capex
For the seventh month in a row, investors’ call for companies to invest more in capital spending has again reached a record high. The reading now stands at an unprecedented 65 percent and is mirrored by a record net 71 percent judging that companies are under-investing – the highest reading since the survey began asking this question in 2005.

Conversely, those wanting companies to return surplus cash are at their lowest level in five years. Only 18 percent of fund managers are looking to companies to institute buybacks or dividend payments – or to make acquisitions for cash.

Fund Manager Survey
An overall total of 228 panelists with US$674 billion of assets under management participated in the survey from 3 July to 10 July 2014. A total of 179 managers, managing US$524 billion, participated in the global survey. A total of 113 managers, managing US$293 billion, participated in the regional surveys. The survey was conducted by BofA Merrill Lynch Global Research with the help of market research company TNS. Through its international network in more than 50 countries, TNS provides market information services in over 80 countries to national and multi-national organizations. It is ranked as the fourth-largest market information group in the world.

BofA Merrill Lynch Global Research
The BofA Merrill Lynch Global Research franchise covers more than 3,500 stocks and 1,180 credits globally and ranks in the top tier in many external surveys. Most recently, the group was named Top Global Research Firm of 2013 by Institutional Investor magazine; No. 1 in the 2014 Institutional Investor All-Europe survey; No. 1 in the 2014 Institutional Investor All-Asia survey for the fourth consecutive year; No. 1 in the Institutional Investor 2014 Emerging EMEA Survey; No. 2 in the 2013 Institutional Investor All-America survey; No. 2 in the 2013 All-Latin America survey; and No. 2 in the 2013 All-China survey. The group was also named No. 2 in the 2014 Institutional Investor All-Europe Fixed Income Research survey; and No. 2 in the 2013 All-America Fixed Income survey for the second consecutive year.

Bank of America
Bank of America is a leading financial institution, serving individual consumers, small businesses, middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 49 million consumer and small business relationships with approximately 5,100 retail banking offices and approximately 16,200 ATMs and award-winning online banking with 30 million active users and more than 15 million mobile users. Bank of America is among the world’s leading wealth management companies and is a global leader in corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business owners through a suite of innovative, easy-to-use online products and services. The company serves clients through operations in more than 40 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.

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As the Special Representatives of President Barack Obama and President Xi Jinping, U.S. Treasury Secretary Jacob J. Lew and Chinese Vice Premier Wang Yang led the sixth meeting of the Economic Track of the U.S.-China Strategic and Economic Dialogue (S&ED) on July 9-10, in Beijing, China. They were joined by a high-level delegation of Cabinet members, ministers, agency heads, and senior officials from both countries.

The United States and China welcomed the growth in the breadth and depth of bilateral economic relations since the establishment of official diplomatic relations 35 years ago. The two countries further recognized that there is significant potential for continued progress in U.S.-China economic relations, especially as China fully implements the comprehensive economic agenda announced at the Third Plenum of the 18th CPC Central Committee, and as the U.S. economy continues to strengthen, creating jobs, improving fiscal sustainability, and making investments to support future productivity and growth. These developments are to provide new impetus for economic cooperation between the two countries. As such, the participants discussed new strategies for practical cooperation and for continuing to deliver concrete progress that is to benefit the citizens of both countries, our neighbors, and the world.

During the sixth meeting, the United States and China emphasized the importance of promoting a comprehensive U.S.‑China economic relationship based on mutual respect and mutually beneficial cooperation. The two countries reaffirmed the commitments pledged by both countries in previous Dialogues and the importance of full implementation of these outcomes. The United States and China announced further concrete measures to support strong domestic and global growth, promote open trade and investment, enhance international rules and global economic governance, and foster financial market stability and reform. The two countries reached consensus to work expeditiously to implement the new commitments made and, as the Special Representatives of the Economic Track, Secretary Lew and Vice Premier Wang directed their respective economic teams to take concrete action before the next S&ED.

I. Strengthening Economic Policy Cooperation
Since the fifth meeting of the S&ED in July 2013, the United States and China have taken significant actions to strengthen growth and promote job creation in both countries, to continue to support a durable global recovery, and to ensure that their domestic growth supports strong, sustainable, and balanced global growth. The United States and China pledged to make further progress as well as committed to make new progress on the following:

· Both sides commit to implement our G-20 commitments to move more rapidly toward a more market-determined exchange rate system and greater exchange rate flexibility to reflect underlying fundamentals, avoid persistent exchange rate misalignment, and refrain from competitive devaluation. Consistent with the reforms set out in the Third Plenum of the 18th CPC Central Committee, China is to continue market-oriented exchange rate reform; reduce foreign exchange intervention as conditions permit; and increase exchange rate flexibility.

· To enhance data transparency, China is making technical preparations with the International Monetary Fund for subscription to the Special Data Dissemination Standard.

· Consistent with its statutory mandate, the U.S. Federal Open Market Committee (FOMC) seeks to foster maximum employment and price stability. To support continued progress toward meeting its mandate, the FOMC has been pursuing a highly accommodative monetary policy, including the purchase of longer-term Treasury and agency mortgage-backed securities. In light of progress made toward improving labor market conditions, the FOMC has been reducing the pace of its asset purchases, but continues to anticipate that economic conditions will likely warrant maintaining the target range for the federal funds rate at its current low level for a considerable time after the purchase program ends. In determining the size, pace, and composition of its asset purchases, the FOMC continues to take appropriate account of the likely efficacy and costs of such purchases as well as the extent of progress toward its economic objectives. The Federal Reserve is sensitive to the effects of its polices on the international financial system. A key goal of the Federal Reserve is to maintain financial stability both domestically and internationally.

· China is to continue to advance market-based interest rate reform and to let the market play a decisive role in the allocation of financial resources. China is to promote the issuance of certificates of deposit to enterprises and individuals to gradually expand the range of liability products of financial institutions priced by the market, and to improve its market-based benchmark interest rate system.

· The United States remains committed to putting public finances on a sustainable path over the medium term. The Administration’s Fiscal Year 2015 budget would lower the federal budget deficit to about 2 percent of GDP by 2024 and put publicly held debt as a share of the economy on a declining path after 2015, including reducing federal health spending and improving the quality and efficiency of health care delivery, eliminating tax loopholes, and prioritizing investments in areas such as education and infrastructure to foster strong growth and job creation in the near term and enhance productivity over the long term. The United States and China commit to further strengthen macroeconomic communication and cooperation, and to discuss important economic policies with each other in a timely manner.

· The United States reaffirms its past S&ED commitments and continues to support moving toward a pattern of growth characterized by higher investment and national saving, including through reduction of the federal budget deficit, investments in education and training that promotes greater attachment to the labor force, measures to prevent abusive credit practices, and policies to increase employer-based and individual saving.

· China remains committed to making domestic demand the main engine in driving growth, and focusing on boosting consumption while working to increase domestic demand. Towards this end, China is to implement targeted fiscal and structural measures to increase household income in a comprehensive and balanced manner. China is to extend social insurance coverage to more people, and reduce social insurance premium rates, as appropriate and at the proper time. China is to improve the ability of farmers to exercise rural land property rights, perfect the secondary market for land leasing, transfer, and mortgage, and provide fair compensation to farmers in land acquisitions, taking location, employment, and the social security benefits associated with rural land into comprehensive consideration. China is to complete the business tax to Value-Added Tax reform, in order to eliminate double taxation and promote economic transformation.

· China is to deepen economic system reform by allowing the market to play a decisive role in the allocation of resources. China commits that economic entities under all forms of ownership have equal access to factors of production in accordance with the law and are able to compete on a level playing field. China is to accelerate the process of market-based price reforms in petroleum, electricity, and natural gas, to promote competition in energy markets, and to realize market-based prices in competitive sectors as soon as possible. The United States is to provide technical assistance to China to support China’s efforts to promote energy reform.

· China commits to increase the share of the central State Capital Operating Budget (SCOB) funds transferred into the public finance budget for social security and people’s welfare, with the proportion rising steadily, reaching 30 percent by 2020. China is to make public, through the budget process, the information regarding the transfer from the SCOB to the public finance budget.

· China remains committed to publishing relevant information on the SCOBS income and expenditures, according to the budget approved by the National People’s Congress (NPC) and regulations on government information disclosure. China further commits to publish increasingly detailed budget information on SCOBS’ income and expenditures according to the NPC’s requirement to enhance budget transparency.

II. Promoting Open Trade and Investment
The United States and China underscored the importance of fostering an open, transparent, and non-discriminatory environment for trade and investment, recognizing that doing so is critical to economic growth and job creation in both countries and in the global economy. The United States and China committed to take the following measures to further enhance our bilateral trade and investment relationship, support an open and fair environment, and create greater opportunities for U.S. and Chinese companies and workers.

· United States and China held constructive discussions regarding the expansion of the Information Technology Agreement. Both sides commit to continue the discussion within the next few weeks, to create conditions to restart plurilateral negotiations.

· The United States and China welcome the progress made to date in the Bilateral Investment Treaty (BIT) negotiations, and affirm their commitment to intensify these negotiations toward a BIT with high standards, including non-discrimination, fairness, openness, and transparency. The two sides are working to narrow differences and to reach agreement on core issues and major articles of the treaty text by the end of 2014, and commit to initiate the “negative list” negotiation early in 2015 based on each other’s “negative list” offers. Recognizing the positive role of investment in creating jobs and boosting economies, and the mutual benefit of open investment environments, the two sides support the expansion of two-way investment and commit, through the BIT negotiation, to ensure that foreign and domestic investors benefit from equal access to and treatment in the market, subject only to negotiated and transparent exceptions.

· China is to further deepen the reform of State Owned Enterprises (SOEs) (including State-Invested Enterprises), improve and standardize modern corporate governance structure, and reasonably increase the proportion of market-based recruitment of management personnel for SOEs. In mixed ownership enterprises, China is to improve the process for nominating and selecting personnel to serve on Boards of Directors in accordance with the Company Law and corporate governance principles. The United States and China commit to establish an exchange mechanism with regard to improving the modern corporate system and corporate governance structure of SOEs.

· The United States and China recognize that the objective of competition policy is to promote consumer welfare and economic efficiency rather than promote individual competitors or industries, and that enforcement of their respective competition laws should be fair, objective, transparent, and non-discriminatory. China commits that its three Anti-Monopoly Enforcement Agencies (AMEAs) are to provide to any party under investigation information about the AMEA’s competition concerns with the conduct or transaction, as well as effective opportunity for the party to present evidence in its defense.

· The United States reaffirms its commitment to give fair treatment to China in its export control reform process, and to encourage and facilitate export of high technology items to China for civilian end-uses and civilian end-users. The United States reaffirms its commitment to process and decide upon, in a timely manner, individual license applications once the United States receives all necessary information required under the Export Administration Regulations. Both sides commit to make joint efforts to actively implement the Action Plan for Cooperation in the Priority Areas of U.S.-China High Technology Trade. Both sides commit to hold High Technology and Strategic Trade Working Group meetings and conferences to exchange ideas and to listen to industry’s concerns and recommendations regarding bilateral high-tech trade between the United States and China. Both sides further commit to discuss these and other export control issues in depth and in detail through the U.S.-China High Technology and Strategic Trade Working Group.

· The United States commits to inform China about the process required by the Natural Gas Act (NGA), which governs the evaluation of applications to export liquefied natural gas (LNG) export applications, to Free Trade Agreement (FTA) countries and to non-FTA countries such as China. The NGA directs the U.S. Department of Energy (DOE) to evaluate LNG export applications to non-FTA countries. DOE applies the same rules in every case. To date, DOE has granted six conditional long-term authorizations and one final authorization to export domestically-produced lower-48 LNG to non-FTA countries, and 26 non FTA-applications are currently pending. The DOE is currently evaluating pending applications on a case-by-case basis. The DOE is evaluating changes to its procedures that would prioritize resources on the more commercially advanced projects and improve efficiency of the review process. The DOE is to update the National Energy Administration (NEA) of China of the status of the process in a timely manner. Any investment in U.S. or Chinese LNG facilities is to be consistent with the applicable law and commercial- and market- oriented principles. To the extent allowed by applicable law, the United States and China commit to provide information to interested companies about the process to participate in LNG infrastructure investment and construction in their respective countries.

· The United States and China affirm that they do not approve of trade secret theft for commercial advantage and that the protection and enforcement of trade secrets is essential to maintain fair competition and to develop an innovative economy. Both sides are to pursue criminal and other actions to deter the misappropriation of trade secrets, and make information available to the public about their actions, to the extent permitted by law. China has incorporated the protection and enforcement of trade secrets into its 2014 Priorities of the Nationwide Crack Down on Intellectual Property Infringement and Production of Counterfeit and Shoddy Products, published by the State Council on April 14, 2014. As its next step, China is to vigorously investigate and prosecute trade secret theft cases; ensure that civil and criminal cases are tried and the judgments are published according to law; and protect trade secrets contained in materials submitted by companies as part of regulatory, administrative, and other proceedings according to Chinese law. China is also to undertake publicity and education activities to improve the awareness of companies and the general public regarding the protection of trade secrets; to undertake studies and research on trade secrets law and related legislative and policy issues; and is to continue engaging in technical exchanges with the United States on these issues. China affirms that it is to continue prioritizing trade secrets protection and enforcement and is to take positive actions that are to be included in upcoming work plans.

· Building on the prior successful exchanges between the United States and China at the Joint Commission on Commerce and Trade (JCCT) Intellectual Property Rights Working Group and at meetings among relevant agencies, the United States and China are to continue to promote exchanges between respective Intellectual Property (IP) agencies, including judicial and administrative bodies, on topics of mutual interest, such as enforcement, transparency, and specialized IP courts. These discussions and any recommendations are to be reported to the JCCT and other bilateral meetings.

· China confirms that the Deployment Standards for the Assets of the Office of General Software of Government Agencies is a measure designed to strengthen the administration of spending and implement the CPC Central Committee’s call for frugality. This measure was drafted with the intention to not have any purpose or effect of creating obstacles to international trade. The United States and China are to continue to engage on ways to address any obstacles to trade facing companies.

· The United States and China commit to discuss this year issues concerning China raised in the Consolidated Appropriations Act, 2014.

· In support of China’s commitment to strong, sustainable, and balanced economic growth and the transformation of China’s economic development pattern, and in recognition of the importance of fostering a more streamlined, efficient, and market-based business environment in which the market plays a decisive role in allocating resources, China commits to improve its Value Added Tax rebate system, including actively studying international best practices, and to deepen communication with the United States on this matter, including regarding its impact on trade.

· In support of China’s efforts to rein in excess production capacity in key manufacturing sectors and to foster a business environment in which the market can play a decisive role in allocating resources, China is to establish mechanisms that strictly prevent the expansion of crude steelmaking capacity and that are designed to achieve, over the next five years, major progress in addressing excess production capacity in the steel sector.

· To advance the shared goal of ensuring access to safe and high-quality medicines for patients and protect supply chain integrity, to affirm the responsibilities of the manufacturers and regulators over the life-cycle of the drug to ensure product quality, and to fight against illegal actions to manufacture, distribute, and export counterfeit and substandard active pharmaceutical ingredients (APIs) and APIs used for counterfeit and substandard products, China commits, during the process of revising the Drug Administration Law (DAL), to develop and seriously consider amendments to the DAL requiring regulatory control of the manufacturers of bulk chemicals that can be used as APIs (“bulk chemicals”), including “export only” producers and distributors. To this end, China commits to hold a multi-ministerial work mechanism on a potential regulatory and enforcement framework to develop the oversight of bulk chemicals, and a roadmap for implementation, by the end of this year. The United States commits to continue to review its authority to exclude from consideration the import of bulk chemicals from firms that are not registered with China Food and Drug Administration (CFDA). In addition, the United States and China commit to deepen technical exchanges, trainings, and regulatory cooperation to enhance the safety of bulk chemicals traded between the United States and China, and to exchange views on the user fee programs at the upcoming pharmaceutical working group meeting of the JCCT.

· In order to foster the development of the services sector, China is to follow the guidance provided at the Third Plenum of the 18th CPC Central Committee, which is to promote the orderly opening-up of the finance, education, cultural, medical sectors, and other service areas, and to remove foreign investment access restrictions in child and old-age care, architectural design, accounting and auditing, commerce and logistics, electronic commerce, and other such service sectors, including accelerating the revision of the Catalogue Guiding Foreign Investment in Industries to further open up to foreign investment. China is to revise the related regulations on the administration of foreign-invested construction and engineering design enterprises to open these sectors to foreign providers of such services.

· The United States commits that the Committee on Foreign Investment in the United States (CFIUS) applies the same rules and standards to each transaction that it reviews, without regard to the investor’s country of origin. The U.S. Treasury Department website contains links to the CFIUS statute, regulations, executive order, Guidance, and all Annual Reports, which fully, clearly, and publicly articulate the rules of the CFIUS process. CFIUS, in every case, is focused on whether the particular transaction, given the facts and circumstances unique to that transaction, raises national security concerns, not broader economic or policy concerns. When a transaction poses a national security risk, CFIUS works to resolve it as expeditiously as possible, including through targeted mitigation rather than prohibition whenever possible. In its public Guidance and Annual Reports, CFIUS describes, to the extent possible, illustrative examples of the national security concerns presented by transactions it has reviewed, as well as the perceived adverse effects of covered transactions on the national security or critical infrastructure of the United States. The United States and China commit to continue to discuss and explain concepts in the U.S. foreign investment review process.

· The United States welcomes investment from all countries, including China. The United States commits to maintain an open investment environment for Chinese investors, including SOEs, as with investors from other countries. The United States reaffirms its open investment policy and a commitment to treat all investors in a fair and equitable manner under the law.

· The United States reaffirms its commitment to open and non-discriminatory principles identified by the Organization for Economic Cooperation and Development in its June 2008 Declaration on Sovereign Wealth Funds and Recipient Country Policies. China reaffirms its commitment to follow the generally accepted principles and practices of Sovereign Wealth Funds.

· In any area open to foreign investment, consistent with Chinese law, China is to continue to improve procedures for foreign investment approval and record-filing by unifying domestic and foreign investment laws and regulations. To make it easier to invest, China is shifting from an approach of approval or verification to one based on record filing. The United States welcomes China’s further efforts to improve the investment environment and maintain stability, transparency, and predictability of foreign investment policies and procedures. China has authorized the Shanghai Free Trade Pilot Zone to undertake trial work regarding pre-establishment national treatment plus negative list in order to accumulate replicable and expandable experiences for deepening reform.

· The United States welcomes China’s efforts to improve the efficiency and transparency of its administrative licensing and approval processes and China’s commitment to strictly implement its Administrative Licensing Law. The United States and China commit to treat applicants for administrative licenses and approvals under the same rules and standards of each side, with regard to the resources available to accept and process applications, and the number of applications permitted at one time from an applicant. Further, the United States and China commit to strictly implement existing laws and regulations to adequately protect any trade secret or sensitive commercial information provided by the applicant during the administrative licensing or approval process, consistent with laws.

· China welcomes the United States’ commitment to reviewing existing regulations if needed and developing plans, in consultation with the public, to reform or eliminate those regulations that are obsolete, unnecessary, burdensome, or counterproductive, and where feasible, to modify regulations to increase their effectiveness, efficiency, and flexibility. The United States welcomes China’s actions to provide legal review of regulatory documents with a direct influence on the rights and obligations of citizens, legal persons, or other organizations, and to limit and reduce the number of regulatory documents in effect at both the central and sub-central levels of government. In support of these actions, the United States and China commit to hold seminars to discuss the types and effect of those documents existing in both countries.

· The United States and China reaffirm their past bilateral commitments on publication of trade- and economic-related administrative regulations and departmental rules. China confirms that the relevant State Council Legislative Affairs Office documents published on April 27, 2012 are legally binding.

· The Legislative Affairs Commission of the Standing Committee of the National People’s Congress of the People’s Republic of China periodically publishes translations into English of The Laws of the People’s Republic of China. The Legislative Affairs Office of the State Council periodically publishes translations into English of The Laws and Regulations of the People’s Republic of China Governing Foreign-Related Matters. China is to require all departments of the State Council to make available in a reasonable time, via a website or other cost-effective means, translations into English of trade-related departmental rules.

· The United States and China support efforts to promote infrastructure investment, including by increasing commercial investment in infrastructure through Public-Private Partnerships with domestic and foreign investors, and incorporating best practices and lessons learned from other countries. The United States and China recognize the potential value of having their respective enterprises play a positive role in infrastructure development in each country and commit to explore opportunities for deepening cooperation in this area.

· The United States and Chinese civil aviation authorities commit to enhance communication and cooperation, to undertake the Federal Aviation Administration’s shadow evaluation of the Civil Aviation Administration of China’s airworthiness certification capability of transport category airplanes that is based on the certification of the ARJ21 airplane, and work toward the reciprocal recognition of airworthiness certification systems between the United States and China.

III. Enhancing Global Cooperation and International Rules
The United States and China committed to enhance multilateral cooperation, including under the G-20, Asia Pacific Economic Cooperation (APEC), and other multilateral frameworks. The two sides recognized the importance of international rules governing trade and finance that reflect the evolving global economic system and committed to take the following concrete steps to deepen their cooperation in this area.

· The United States and China are committed to promoting economic growth and prosperity in the Asia-Pacific. Both sides reaffirm their commitment to work closely with other economies to make China’s APEC host year a success. Both sides acknowledge the necessity of maintaining close communication and cooperation to achieve positive and meaningful results at the 2014 APEC Economic Leaders’ Meeting and to advance regional economic integration; promote innovative development, economic reform, and growth; and strengthen comprehensive connectivity and infrastructure development.

· The United States and China commit to continue strengthening their cooperation in the IMF and G-20, improving the IMF’s quota and governance structure, ensuring the completion of the 15th general quota review, reaching a final agreement on a new quota formula, and further enhancing the voice of emerging markets and developing countries. The United States commits to complete the domestic approval of the 2010 IMF quota and governance reforms as soon as possible. The two sides reaffirm the importance of maintaining a strong and adequately resourced IMF.

· Consistent with the commitments made by the World Bank’s Governors in Istanbul in 2009, the United States and China reiterate their support for moving towards equitable voting power in the World Bank over time. Based on the interim result achieved by the 2010 voice reform, the two sides support the World Bank periodically reviewing its shareholding, based on a dynamic formula that primarily reflects the principles outlined in Istanbul in 2009, and look forward to the next review of voice in 2015.

· The United States and China support the World Bank’s reform package addressing financial sustainability, which is intended to permit a significant increase in the Bank’s lending capacity without undermining its financial soundness. Both sides recognize the importance of continued regular reviews of the Bank’s financial sustainability.

· The United States and China are committed to strengthening communication and cooperation in the preparation of the “post-Bali” work-program so as to send a positive signal to advance Doha Round negotiations.

· The United States and China welcome the progress that has been made by the International Working Group on Export Credits (IWG) in negotiating new international guidelines for official export credit support, including at the fifth meeting of the IWG in May in Washington, D.C. Based on the progress made, the United States and China support the IWG actively pursuing and completing its work on guidelines for the two sectors as soon as possible. The United States and China reaffirm their shared commitment to develop a set of new horizontal international guidelines on official export credit support that promote international trade, and that, taking into account varying national interests and situations, are consistent with international best practices.

· The United States and China reaffirm their commitment to undergo fossil fuel subsidy peer reviews under the G-20 process. The two sides welcome continued technical communications and discussions among experts from the two countries to identify the scope of inefficient fossil fuel subsidies that encourage wasteful consumption. On this basis, the two sides finalized the peer review terms of reference in July 2014. The two sides are to update the G-20 in November on the progress to date on the fossil fuel subsidy peer review. The two sides urge more G-20 countries to commit to peer reviews at this year’s G-20 Leader’s Summit.

· The United States and China commit to cooperate on strategic petroleum reserves to improve their ability to address oil market supply disruptions and improve their collective energy security. Both countries commit to take part in information exchanges on policies, management, and technologies. The two sides welcome the signing of the Memorandum of Understanding regarding such information exchanges between the U.S. Department of Energy and the National Energy Administration.

· As the world’s two largest energy consumers, the United States and China share a goal of working to ensure that global energy markets are well-supplied and resilient. China is to accelerate developing the capacity to publish more complete public energy statistics on a more frequent basis, which brings benefits to both China and the United States, and enables stronger cooperation with the Joint Organizations Data Initiative (JODI). This improves energy data transparency, which helps the functioning of global energy markets and reduces oil price volatility.

· The United States and China have each taken important steps to address air pollution and climate change impacts of conventional coal-fired power plants. The United States has recently proposed rules that would significantly limit carbon dioxide emissions from existing power plants and set high standards for new power plants, and has also ended public financing for new conventional coal-fired power plants except in the poorest countries. China has set a target to lower the percentage of coal consumption in total energy consumption, and set tighter standards on energy efficiency and carbon emission in new power plants and those in operation nationwide. Building on these important measures, the United States and China are to share views on the important role that official financing support policies can play to accelerate the transition to a global energy economy that is more energy efficient and less carbon intensive, taking into account relevant factors.

IV. Fostering Financial Stability and Reform

Both sides recognized the importance of strong, stable financial systems to achieve sustainable and balanced growth. Both sides committed to undertake the following measures to support further reforms and enhance supervision in their respective financial sectors, promote bilateral cooperation, and enhance cooperation under the G-20, Financial Stability Board, and other multilateral frameworks, so as to support global financial stability.

· China intends to continue the opening-up of the securities and futures sectors, and to actively study policies concerning the further expansion of the business scope of newly established securities joint ventures. China is actively studying further opening up of the banking sector (including equity participation by foreign investors) and securities sector, based on ongoing assessment and improvement of the prudential regulatory framework.

· China welcomes foreign companies to submit applications for approval of new internal branches under China’s procedures, including the Administrative Measures for Market Access of Branch Offices of Insurance Companies, and commits to review and issue decisions on such applications within the timeframes set forth in such Measures.

· The United States reconfirms its transparent process for submission and consideration of requests to establish insurance subsidiaries and branches.

· To support the safe development of China’s debt and derivatives markets, China intends to revise as soon as possible relevant laws and regulations to recognize the enforceability of close-out netting and collateral enforcement for securities, commodity, and derivatives contracts, and to clarify the rights of creditors in insolvency, consistent with such recognition. Chinese companies are allowed, subject to permission or registration requirements, to write enforceable guarantees on offshore bonds to foreign investors.

· The United States and China commit to enhance technical cooperation on the development and regulation of local government bond markets, including issuance structures, disclosure practices, tax issues and developing a broad investor base. The two sides welcome the mutual participation of investors and qualified financial firms from the United States and China in the local government bond market in accordance with the law and relevant regulations.

· To support more transparent and resilient market-based funding, the United States and China commit to an information sharing process on shadow banking risk and policy measures through the Financial Stability Board (FSB). The two countries intend to enhance bilateral cooperation and share experiences on the regulation of money market funds (MMFs) and internet finance in their respective jurisdictions. The United States and China also commit to participate in a peer review of national implementation of the FSB’s shadow banking policy recommendations in 2015.

· China intends to accelerate the establishment of a deposit insurance system and improve the market exit mechanism for financial institutions, including through issuing regulations on bank resolution.

· The United States applies the Volcker Rule through implementing regulations that, consistent with statute, addresses concerns about the impact on foreign banking entities. The United States remains willing to meet with interested parties, including Chinese entities, to discuss implementation of the Volcker Rule.

· The United States and China welcome the implementation of the G-20 commitment to centrally clear standardized Over-the-Counter (OTC) derivatives, to reduce systemic risk, improve transparency, and protect against market abuse, and subsequent international regulatory frameworks and standards. The United States and China are to accelerate relevant work by providing information regarding our respective processes and frameworks for making equivalence or comparability decisions, and to actively consider the establishment of equivalence or substituted compliance arrangements to assess whether relevant aspects of each other’s OTC derivative market participants and infrastructures are regulated in a manner that achieves similar regulatory outcomes, subject to each of our respective laws, rules, and supervision and enforcement regimes, as well as core policy objectives.

· On the Foreign Account Tax Compliance Act, the United States and China welcome reaching an agreement in substance on an intergovernmental agreement (IGA) to fight tax evasion. As the two sides have reached the IGA in substance, the United States commits to treat Chinese financial institutions as deemed-compliant. The United States and China commit to continue strengthening communication and cooperation, and sign the IGA by the end of 2014.

· Both sides commit to hold discussions on requirements to avoid imposition of U.S. withholding tax on interest paid on renminbi-denominated bonds issued by U.S. issuers. In particular, the discussions are to focus on the requirements of the U.S. Internal Revenue Service’s Qualified Intermediary Program, and the due diligence and documentation requirements to determine the eligibility of a payee for the portfolio interest exemption from U.S. withholding.

· The U.S. and Chinese supervisors commit to discuss broader supervisory frameworks and practices for multi-regional data processing servicers through their bilateral banking supervisory conference.

· Both the United States and China support the objective of one single set of high quality global accounting standards and reiterate their commitment to convergence on high quality accounting standards. Both sides commit to continue their efforts to ensure consistent application of accounting standards and to strengthen communication and cooperation on accounting.

· The United States and China continue to enhance cross-border cooperation on audit oversight of public companies. Based on mutual respect for the national sovereignty of each country, the two sides have committed to establishing a cooperation mechanism of audit oversight that is consistent with each other’s domestic laws and regulations.

· The United States and China support continued progress in the cooperation between their competent authorities in the competent authorities’ enforcement investigations in the securities sector through the use of information-sharing mechanisms pursuant to existing international cooperation arrangements.

This courtesy of www.treasury.goc

STAMFORD, CT — Synchrony Financial today announced the completion of a strategic investment in LoopPay, Inc., an innovative mobile payments platform company. LoopPay is expected to provide Synchrony Financial with special features and benefits for its cardholders and retail partners.

LoopPay recently introduced the LoopPay ChargeCase, which allows consumers to pay with their iPhone 5 or 5s at regular credit card swipe readers, while extending the phone’s battery charge by up to 60%. It is the second product launched by LoopPay in four months, with several more products planned for market entry this year.

“These types of investments demonstrate our commitment to innovation and growth in the emerging payments space,” said Margaret Keane, president and CEO of Synchrony Financial. “We are continuously exploring technologies to help our partners grow, while looking for additional options to deliver greater convenience and utility for our cardholders.”

In a crowded mobile wallet marketplace, consumers are becoming increasingly interested in secure solutions to replace their physical wallets as merchant acceptance evolves. LoopPay technology enables existing point-of-sale infrastructure to accept contactless payments through mobile devices at the vast majority of retail merchants. Synchrony Financial views LoopPay as an opportunity to close this gap for its retail partners and their customers while offering an enhanced consumer experience and additional security features.

The terms of the investment were not made available.

About LoopPay™
LoopPay invented the world’s first mobile wallet app that allows consumers to securely store all their cards and pay with their LoopPay devices (accessories, smartphones, smart watches) virtually everywhere. The LoopWallet app reduces the clutter of plastic cards (payment, gift, loyalty, ID, membership) allowing users to leave their plastic behind with confidence, enabling faster, more convenient mobile commerce experiences. Based in Boston, MA, LoopPay’s patented Magnetic Secure Transmission™ (MST) technology turns existing mag stripe readers into mobile contactless readers without any change or cost to merchants or their payment processors. LoopPay provides not only breakthrough convenience for consumers to organize and pay with mobile devices, but also with the highest level of payment security to protect consumer card data. All card track data are encrypted and stored in secure memory within any LoopPay device. LoopPay is a Level One PCI Certified Payment Provider. To learn more and order LoopPay products, visit www.LoopPay.com.

About Synchrony Financial
Synchrony Financial (formerly GE Capital Retail Finance) is one of the country’s leading retail lenders, with 80 years of experience in consumer financing. The business, with its lending entity Synchrony Bank*, provides customized credit programs for retailers and consumers in the United States. This includes private label and bankcard credit programs for major national, regional and independent retailers in the U.S., as well as private label credit card programs, special financing, and promotional and installment lending, bankcards and financial services for consumers through dealers; contractors; manufacturers; healthcare practices; and service providers across diverse industry segments. More information can be found at www.gogecapital.com and twitter.com/GoGECapital.

NEW YORK, – Despite employee benefit satisfaction reaching a record-high, 50%, in 2013, only 36% of employers are very satisfied with employee participation in voluntary benefits, according to findings released today from MetLife’s 12th Annual U.S. Employee Benefit Trends Study (EBTS). The disconnect between employees’ positive views on benefits and their enrollment actions highlights the need for more tailored benefits education that boosts employee knowledge and confidence in the enrollment process. A full report examining these findings is available on BenefitTrends.MetLife.com.

“Healthy enrollment rates are a good indicator that an employer’s benefits program is working effectively and the Study found that 62% of employers say enrollment rates are the most important criteria for evaluating the success of their program,” said Michael Fradkin, senior vice president, Markets and Growth Strategies, at MetLife. “According to the Study, 59% of employees are very interested in a greater variety of benefits to choose from. However, with more choice, there may also be confusion. If employers add to their benefits offering, but aren’t seeing the employee participation levels they anticipated, this may indicate a need for better benefits education and communications, rather than a lack of interest on the part of employees.”

The MetLife Study finds that employees may be having trouble navigating the different benefit options available to them, with 38% of employees reporting they are not very confident they made the right decisions during their last annual enrollment and over half, 53%, agreeing they need more help understanding how their benefits work or how benefits meet their needs.

“Employees’ lack of confidence can be seen in their engagement during the enrollment process. The Study finds that 27% of employees roll over their previous benefits selections without review, or fail to participate at all,” notes Fradkin. “Only 20% of employees take the time to review their enrollment choices several times before finalizing their selection. Our research shows that engaged employees not only lead to higher participation, but can also pay dividends when it comes to employee loyalty. The Study finds employees who agree strongly that their company’s communications help them select benefits that best meet their needs are more than twice as likely to say they are ‘very loyal’ to their employers.”

Employers looking to increase employee participation and engagement can follow five enrollment priorities, based on employee findings from the EBTS, to optimize their enrollment tools, tactics and strategies:

Focus on tools and tactics that matter most to employees – As employers map out an enrollment plan, the tools employees value most should figure prominently. For example, the MetLife study finds that for companies with more than 500 employees, 79% of employees find a confirmation of benefits enrollment elections sent to each employee to be helpful, but only 48% of employers use these.
Deliver benefits education when and where employees want it – For many employees, the best environment for considering their benefit options is at home with family members; employers should ensure home access to information is available.
Boost communications by doing the basics better – Better communications can lead to improved engagement—according to the Study, employees who report their company’s benefits communications are easy to understand are nearly five times more likely to find enrollment simple and straightforward compared to those who disagree. Communications should feature simple language, visuals, messages personalized to employees’ circumstances, and be continuous throughout the year.
Technology talks louder than paper – The Study finds that employees prefer to enroll online—with 41% preferring to enroll via a computer compared to 13% who prefer a paper ballot. The Study also found that 70% of Gen Y find live online chat a helpful option and 69% named mobile apps, showing the need for employers to both understand their employee base and recognize the growing shifts as millennials become a higher percentage of the workforce.
Get goal-oriented – Setting measureable goals can lead to greater satisfaction with participation. Employers who say they have established measureable goals for their communication and enrollment activities are more than twice as satisfied with participation in voluntary benefits than those without goals.
To learn more about how employers can boost enrollment and provide employees with better benefits education, access MetLife’s 12th Annual U.S. Employee Benefit Trends Study by visiting BenefitTrends.MetLife.com.

Research Methodology
MetLife’s 12th Annual U.S. Employee Benefit Trends Study was conducted during October and November of 2013 and consisted of three distinct studies fielded by GfK Custom Research North America. The employer survey comprised 1,510 interviews with benefits decision-makers at companies with staff sizes of at least two employees. The employees survey comprised 1,203 interviews with full-time employees age 21 and over, at companies with a minimum of two employees. The broker survey comprised 524 interviews with brokers and consultants who sell group employee benefits to companies of all sizes.

About GfK
GfK is one of the world’s largest research companies with more than 13,000 experts working to discover new insights into the way people live, think and shop, in over 100 markets, every day. GfK is constantly innovating and using the latest technologies and the smartest methodologies to give its clients the clearest understanding of the most important people in the world: their customers. In 2012, GfK’s sales amounted to €1.51 billion. To find out more, visit www.gfk.com.

About MetLife
MetLife, Inc. (NYSE: MET), through its subsidiaries and affiliates (“MetLife”), is a leading global provider of insurance, annuities and employee benefit programs. MetLife holds leading market positions in the United States, Japan, Latin America, Asia, Europe and the Middle East. For more information, visit www.metlife.com.