As a photographer, you have many different career paths to follow. It all depends on your lifestyle, tastes and preferences – whether you want to stay in one place or travel, if you prefer more fixed or more flexible working hours, etc. Most photographers these days decide to go freelance or simply open their own businesses to be able to decide what they do and for whom. Do you think this is the way for you but you’re still looking for inspiration as to what exactly you could do? Fear no more! Here are some of the best photography business opportunities for the upcoming year:
1. Family photography business
It has become extremely fashionable to do photoshoots using a hi pod for various family occasions (or even without any) – starting with engagement photos, through wedding, births of children, birthdays, anniversaries, etc. People, like never before, love to photograph their children to share these professional, beautiful photos in social media, hang on the walls and keep in their photo albums. It’s a great business opportunity – you can be sure you will never lack customers. So start your training today – get some newborn lightroom preset, learn to engage children and catch the moment. There are many courses available online that can help you prepare for this path.
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2. Stock photography
You simply take photos and sell them to a platform or a specific marketplace. Like Depositphotos, a stock platform with more than 200 million stock licensed images, videos, and sounds. There are no limitations as to what you should take photos of, so you can stay with whatever you like best. The other thing is people’s needs, though. With time, you will be able to tell which photos sell better and for more money than others and you will know how you should adjust.
3. Pet photography
You can easily merge this idea with family photography business – simply allow your customers to bring their pets to the shoot! A lot of people treat their animals like members of their family these days. They want to include them into family souvenirs (like photos) or even get a photoshoot of a pet alone. So if you’re an animal person yourself, this may be your gold mine!
4. Photography courses
If you have some experience, you have already worked as a photographer and you’re familiar with various techniques, you may decide to pass all your knowledge and skills to others. Organise an online course or a workshop in your area. Just make sure you come up with ideas for different courses – portraits, landscapes, editing, etc. – to give your clients reasons to come back for more and recommend you.
5. Wedding photography
People are willing to pay really good money only to be sure that the photos of their wedding day will be perfect. So if you feel that you’re good at action shots, you don’t mind attending big events and working late, this may be a great opportunity for you. The best way to start is to build a portfolio website and get into partnership with wedding venues.
6. Real estate photography
If you decide on this path, your photos will go viral. You will be published in magazines and on the internet. Real estate agents and homeowners will always need good photos of houses; people used to do it on their own, but it’s too much of a competitive business for things to stay like this. So there’s a need for a professional. If you know something about building and interior photography, think about it!
7. Photojournalism
This is something for you if you don’t like to stay in one place and you want to be involved. Many newspapers and magazines don’t have their own photographers; they buy photos from the outside or hire freelancers for specific projects. It can get very absorbing, but also rewarding. Who knows, maybe you will be the next Pulitzer prize-winner.
8. War correspondent photography
It’s the next step, if you want something even more absorbing. Unfortunately, we live in a world where there’s always a war somewhere and the rest of us are not always aware of what’s happening. That’s why war correspondents are essential – they spread the truth about what’s going on and they get people’s attention. Yes, it can get very dangerous, but you would be making a huge difference.
9. Celebrity photography
People love to read about those who are famous (for whatever reasons) and they love to see photos of them even more. That’s why the paparazzi will always be needed. If you don’t mind following people around and waiting hours for the perfect shot, it may be a path for you.
10. Fashion photography
Fashions come and go, now more frequently than ever. People crave new things and fashion designers and fashion brands want to always deliver. No good fashion photographer will be jobless in the near future. If you have a good eye and you burst with ideas, you may have a career waiting for you in the fashion industry.
These are only a few of many possible career paths in photography. The important thing is to know what you really like and feel. It will help you to constantly become better and better which will keep both you and your customers happy and satisfied.
You could almost bank on the fact that every day ground-breaking business deals are taking place across the globe. From small transactions to global acquisitions, money, and in business at the centre, makes the world go around.
The thing is, when these deals take place, there is a significant amount of courtesy and etiquette involved. However, in almost every country across the globe, they will have their own niche. In this article, we take a look at the various different factors worldwide.
Giving
If you choose to offer up a gift at a business meeting, ensure you know what you’re doing, otherwise a nice gesture could go completely wrong. Gift-giving is a popular business practice in Asia but be careful in other areas of the world, like here in the UK, as it can be misinterpreted as a bribe.
In China, if you decide to bring a gift from home, chances are you’ll be particularly popular. For example, Western skincare products are heavily taxed in China, so would be an appreciated gift. But something important to bear in mind is that “saving face” is also important in Eastern cultures. If your gift is very expensive, this could embarrass your Chinese business partner, so try to give a gift that could be easily reciprocated to you. In the same way, in Japan, the gift might be left to be opened later in private to avoid embarrassing you if they don’t like it. So, don’t be offended if they aren’t overcome with excitement and rip it open immediately.
Using both hands and being stood up when presenting gift is important, otherwise it is deemed disrespectful. If exchanging business cards, Read the business card with interest and place it facedown next to you on a table if you can.
Courtesy
If you’re dealing with Italian clients or business representatives, you may get used to a lack of punctuality. If you have a new Italian business partner and they’re slightly delayed, don’t take this as a dig or doubt their competence, expect flexibility in your deadlines. It’s just not considered a priority in that country — the same goes for Indian businesspeople. Punctuality is considered lightly in comparison to the west.
In Germany, organisation is high up on the agenda — probably because of their fantastic German mechanics, that are present in the Audi A8. Germans tend to be early and organised due to their hardworking ethic. Try not to turn up late to your meeting because this devalues their time and makes it look like you shouldn’t be taken seriously. Meetings often start on the hour so it’s probably best to arrive a few minutes earlier.
Eating
If it’s a business lunch or dinner you’re going to be attending, be sure to touch up on your etiquette in advance, and beware of different expectations depending on nationality. If you’re in India, it’s best to avoid eating beef in all circumstances — cows are considered sacred animals, so ordering a big juicy steak won’t go down well and can be a huge sign of disrespect. Indians don’t eat with cutlery, so get used to eating with your fingers — don’t shovel food in with the palms of your hands but eat neatly using the tips of your fingers. Always use your right hand, even if you’re left-handed, as the left hand is considered unclean.
In the UK, slurping is often considered rude at the dinner table — in China and Japan however it is seen as a mark of respect to the chef, declaring that you’re enjoying your meal. Be free and go ahead and drink from the bowl too, because you probably won’t have a spoon. It is considered polite to leave leftovers too, it shows that you’ve been given enough food and are satisfied.
You’ve heard of ‘going Dutch’, well, in France there is no such thing— you either pay for the meal in full or accept that someone else is covering the costs. Splitting the bill in France is considered the ultimate sign of unsophistication.
The best advice we can offer is to touch upon these handy tips but, similarly, thoroughly research the country you’re going to be visiting. Don’t let yourself end up looking like a ‘citron’ in France or ‘limone’ in Italy.
Is it possible for money to make us happy? There are many people who have had loads of cash and yet are miserable. But anyone who has a lack of money – or suffers any difficulties with it – knows not having cash can make life feel very uncomfortable.
So, where does money sit in terms of overall happiness and can we achieve financial well-being?
Psychology and money
We’re all individuals and so we cope with our cash in very different ways. Some of us turn to loan lenders, others don’t. But, some general themes do emerge and there are certain personality types that throw up some useful insights into the ways we humans consider money.
Many of us, for instance, find delayed gratification difficult even though it can lead to better outcomes in the long run.
There was a test in the 1960s test, known as the Stanford marshmallow experiment, which gave kids a choice: eat a marshmallow immediately or wait and receive two as a reward for delaying their gratification.
What was interesting was that those children who could wait showed in follow up studies that they had better life outcomes. Whatever, waiting is difficult, not least because of the era in which we are living now is one where just about everything is instantly available. Spending hits our brains’ pleasure zones, whereas saving doesn’t.
Different financial personalities
Hoarders are savers who fear letting go of money that they have saved. He or she would probably benefit from using some of this cash for investment that could well generate more.
Social Value Spenders are those who generate warm and fuzzy feelings when they spend. The advice would be to stop spending on impulse and monitoring any debts.
Cash Splashers use their money to encourage others to think more highly of them. Cash Splashers would benefit from choosing alternative ways of achieving contentment.
Ostriches avoid bills, refuse to talk about debts and just wish it would all go away. Good advice would be to face up to the facts and get organised.
Financial well-being
Whatever financial personality type a person is there are a plethora of ways to define their financial well-being.
Some people, for example, focus on low debt and high net worth as the ideal combination of factors to achieve it.
In the US, the Consumer Financial Protection Bureau defines financial well-being as the state where “a person can fully meet current and ongoing financial obligations” as well as feeling secure in their financial future and able to make choices that enable life to be enjoyed.
Whatever subtle differences everyone has for assessing financial well-being in terms of money, savings, loans, finance, overall, it comes down to the ability to handle the money available to enjoy your life and not worrying too much about having a lack of it.
The majority of people’s financial well-being objectives come down to:
• Being able to tackle any life event that leads to a financial shock
• Controlling budgets and finances on a daily, weekly or monthly basis
• Possessing a degree of financial freedom to make choices
• Setting financial goals and moving towards them
To take steps in the direction of financial well-being:
Start saving. The average Brit struggles to save even 4.6% of their income.
Change your mindset. Start seeing saving as a gift to yourself.
Review your account to ensure you need to spend what you are spending. More than 12% of people in the UK pay for subscriptions they don’t use, for example.
Use savings tools. Track saving and spending.
Prioritise important payments. These should leave your account when you’ve been paid.
Prescient has built itself on leveraging digitisation to bring order to the traditionally somewhat chaotic process of putting up buildings. A winning combination that includes lightweight construction materials and an innovative digital design-build system yields dramatic savings in time and materials. We met Prescient CEO Magued Eldaief, who explained how it’s all done.
Good day, Mr Eldaief! Thank you for taking the time to speak with us today. I understand you have been in various leadership positions since 2001. Being in high-profile posts must induce some stressful moments. Would you mind telling us how you start your day in preparation?
Good health is key to dealing with both the physical and mental demands that any leadership role entails. Gruelling travel schedules and long days can take a toll on the body and ultimately impacts one’s ability to deal with all the stress that is part and parcel of the role. To that point I like to start my day exercising early morning before getting to work, after a good night’s sleep. While exercising, I also like to catch up on what is going on in the world.
Having worked at GE for almost three decades, leading significant functions across various divisions, you then became the CEO of Prescient in June 2017. How was the transition into your current position? What has been your proudest moment as the chief executive officer of Prescient so far?
Transitioning from a large corporation to a young company that is growing rapidly is quite challenging in many ways, as you need to ensure you are wearing multiple hats on a daily basis and driving a number of fundamental areas at an accelerated pace. It starts with having a great team with all the necessary skill sets that are required to build a driven organisation, one that is adopting a repeatable and consistent process to execute for an expanding customer base, all while continuously driving innovation that differentiates and builds a technology moat.
Our adoption journey in an industry reluctant to change has been a difficult one, so I felt extremely proud the first time a customer publicly highlighted the positive impact our technology delivered for their project, without any prompting from us. This was a genuine validation of our belief in our technology, as well as the tremendous amount of effort that our teams put in to get to this point.
Prescient started out in a humble production site of an old 5,000-square-foot aircraft hangar in 2012. To date, it has completed over 42 buildings totalling 6.9 million square feet. What do you think are the key factors that led to Prescient’s impressive success today?
It’s been quite a journey for this company, for sure. I’d say our success has been driven by a desperate need that’s been addressed with brilliant technology, the determination and ingenuity of our people, and an inspiring vision that resonates with so many people around the world today.
The housing shortage that’s reported daily by the media is a significant challenge around the world. That shortage is driven by a number of factors, but the lack of innovation and the structure of the housing construction industry are two of the key contributors. Our founders understood this and leveraged their experience, ingenuity, and the latest software and hardware technology to develop an integrated system that simply enables multi-unit residential projects to be built more efficiently. That software and hardware system, which we call our “digital thread” and Unified Truss Configuration System (UTCS for short), are the foundation for this company and our success.
Next, I have to give huge credit to our team, many of whom have been with us since day one. They’ve faced and overcome an incredible number of challenges, from customer resistance and scepticism, to regulatory hurdles, to never-ending resource constraints, to challenging technical issues, which all had to be solved in order to move forward. They just get it done. They’re pragmatic problem solvers who are inspired by our vision of “Attainable housing for all”. Our people are arguably the biggest factor that has led to our success.
Prescient is at the forefront of digital innovation, with the company embracing technology-driven methodologies to construction, aiming to “revolutionise the building environment”. Can you tell us about the story behind the pioneering concepts of Prescient’s digital design-build system?
Our two inventing founders are John Vanker, an experienced real estate executive, and Michael Lastowski, a structural engineer and architect. Like so many people in our industry, they understand the many inefficiencies plaguing the construction industry business model, such as a very low level of digitisation, the fact that 40% of project costs are wasted, a remarkable lack of standardisation, high fragmentation, the misaligned interest of project stakeholders, and very little investment in R&D or innovation. John and Michael worked together to design and patent a unique structural system and supporting design software that leverages the light weight, strength and precision of steel, to develop and build multi-unit residences and hotels better than ever before.
Their ambition to “build better” started to become a reality when they met our third founder, Satyen Patel. Satyen is an accomplished global executive and software entrepreneur who had just personally experienced the inefficiencies of design and construction while building his family’s dream vacation home. Satyen met John Vanker on a lake in northern Wisconsin where they both have vacation homes. John explained that the construction inefficiencies that Satyen encountered weren’t unique to his single-family home; they were very similar, in fact, to large, multi-family apartment buildings, student dorms, etc. John then shared his and Michael’s technology and their vision of reshaping the multi-unit residential construction industry. That is how the three founders came together and created Prescient in September 2012.
Industry Apartments
What makes Prescient unique is the combination of its digital thread software and Unified Truss Configuration System hardware. Think of an erector set with a standard kit of parts made out of steel, with a software app that allows you to design any bespoke multi-family building.
Further to the previous questions, what are the unique advantages and features of using Prescient’s building platform, compared to the traditional construction process?
What makes Prescient unique is the combination of its digital thread software and Unified Truss Configuration System hardware. Think of an erector set with a standard kit of parts made out of steel, with a software app that allows you to design any bespoke multi-family building. That same app allows you to engineer, manufacture and figure out the optimum way to assemble the chosen design, solving for constructability, cost and schedule in a fraction of the time it takes the industry today to do it.
Our proprietary software system interconnects a project’s components and processes, and enables all stakeholders to have timely information to drive faster and cheaper project execution. Prescient projects begin with very accurate and detailed 3D building information modelling (BIM) drawings. This requires more decisions to be made upfront, but results in far fewer surprises and associated greater costs that typically show up later in a project. Our digital thread also provides a transparent view of a project’s schedule and progress for all project team members. That’s referred to as 4D BIM, with time being the fourth dimension. This supports communication, optimises the schedule and provides alerts about potential risks. Finally, the digital thread delivers 5D BIM, with the fifth dimension being cost, by providing project costs and changes to those costs, as project requirements or decisions change. So, having 3D drawings, plus clear and communicated schedules, together with costs, early in a project is truly a major step forward for construction.
One of the main reasons our digital thread is so accurate in its 3D representation (with the drawings matching the physical building), in its schedule, and in its cost estimate is that our UTCS can be manufactured and assembled so precisely. Our manufacturing plants are driven by that same digital thread, and produce building components which are accurate to 1/32nd of an inch. This means that all of the structural components that arrive in the field have been cut precisely, holes are where they’re supposed to be, rough openings are the exact size they were designed to be and, because we use steel, there is no “settling in” period where dimensions shift. Components arrive on-site in a just-in-time fashion to reduce excess inventory on site. Assembly is done at rates in excess of 20,000 square feet per week (and we get faster every year). And the assembly process requires a crew of only 36 installers. This is a huge advantage that the Prescient system delivers within an industry where labour is in such short supply! Finally, given the accuracy of our designs, manufacturing and assembly, Prescient projects have little to no waste. The bottom line is that Prescient reduces costs, time and risk for every project it helps build.
During March of last year, Prescient pulled off a feat no other US construction company had done before and built the largest student housing development at the University of California, Davis. This historic moment is also notable as it was your first project in a seismic zone. Could you tell us more about this exceptional achievement? What were the challenges you faced and how did you overcome them?
Our system was chosen to be used for the 1.3 million-square-foot student housing project at UC, Davis by CBG Building Company. CBG had used us on three previous student housing projects and one very large apartment building. They knew that using Prescient would reduce the number of workers they’d need to use and, more importantly, that the project would be completed on time.
Of course, since this project was in California, our system had to be approved for use in seismic zones. Our light-gauge steel system is naturally ductile, lightweight, and it’s all reinforced, so it performs exceptionally well to the extreme forces experienced in a seismic event. We’ve collected more than 500 million data points and conducted almost 900 tests to validate the ability of our structures to withstand even the most severe earthquakes ever recorded.
The company vision is to have “attainable housing for all”. From your numerous projects, it is safe to say you have rendered good service towards achieving this mission. How does the company’s continuous focus on digital innovation enable such a vision?
Our vision is a huge motivator for the continued development of our platform. I believe we have barely scratched the surface with what we have accomplished. Our digital thread uses artificial intelligence to analyse the immense amount of data we’re collecting on projects to identify future efficiencies. It allows us to pinpoint where the focus needs to be to impact time, cost and risk and we get smarter with every new project we complete.
To fully deliver on the vision, there are other aspects beyond our control (e.g. regulatory challenges, increasing land prices, etc.) that we must absolutely tackle to provide a satisfactory resolution to housing affordability and, there, Prescient is actively participating with various industry associations and councils to tackle this crisis.
One of your projects, the Renaissance Downtown Lofts, has recently been recognised with two major awards, namely: Urban Land Institute’s (ULI) 2019 Global Awards for Excellence and PCBC Gold Nugget 2019 Award of Merit. I understand that this particular multi-unit housing was established for the aid of the Denver homeless population. How important is corporate and social responsibility for Prescient?
As CEO, talking about ‘corporate and social responsibility’ might sound like I’m just checking a box. Though we didn’t pursue the Renaissance Downtown Lofts project as part of a corporate and social responsibility goal, we did it because it sits squarely in the centre of our vision of providing “attainable housing for all”. As I said earlier, we are extremely motivated by this cause and it drives much of what we do. To this end, we have been active with several chapters of Habitat for Humanity and have worked with veterans’ organisations to help provide them with better and more-affordable housing options.
Our system is also very environmentally friendly and we are very proud of that. Our projects have very little waste, and we use highly recycled steel, which is lightweight, so it’s produced using significantly less carbon than other building materials. Plus, all of our components can be used again at the end of a building’s life cycle. These two areas of corporate social responsibility are very important and relevant to our company and our people.
Renaissance Lofts
A McKinsey study concluded that most construction projects have 40% waste in their raw material usage. Our projects have 1% to 3% material waste, by comparison.
More and more companies are investing in the green economy, as the situation urges. What are the sustainable strategies and practices the company has utilised to cater to this international demand?
As I described earlier, our system offers a greener approach to developing multi-unit residences. Our initial promise for our company was: faster, better, greener and cheaper. So, being environmentally beneficial to the construction process has been a core promise for our company and our system since its beginning. Our buildings typically weigh 50% to 65% less than their concrete equivalents, which means they require significantly less carbon to produce. Our overall approach of digital design and precision manufacturing means our projects experience significantly less waste. A McKinsey study concluded that most construction projects have 40% waste in their raw material usage. Our projects have 1% to 3% material waste, by comparison. Our steel is highly recycled, and 98% of the water used to produce steel can be filtered and reused. While our buildings are designed for a 100+ year life cycle, when they are ultimately torn down, the steel can be recycled and used again. Finally, our steel-framed buildings are energy-efficient throughout their useful lives.
Technology is continuously changing the world and the way business and industries operate. Can you tell us what are the latest technologies or initiatives that you are currently working on to ensure that your projects and solutions remain cutting-edge and of the highest quality?
I would break our technology initiatives into several buckets, the first one around platforms related to different market segments we serve. These include a seismic offering for serving geographies prone to earthquakes, like California, Mexico, large parts of South America and Asia, and a progressive collapse offering that serves the need for military housing. We are also working on a number of digital solutions that are enhancing our end-to-end digital thread for our core platforms, and a market-facing portal that offers all project stakeholders the ability to interact real-time using our detailed BIM models to evaluate, design and execute projects faster and cheaper.
As the CEO of a dynamically developing company, how do you look after the well-being of your employees? How do you encourage a working culture of continuous innovation and learning?
We really have an outstanding and diverse team of professionals. I can’t say enough positive things about them. One of our corporate belief statements is, “Our employees make the impossible a reality.” To enable that belief, employees need to feel that they have the freedom and support to challenge the status quo and push boundaries, or else how do you transform and reshape an industry?
Having an innovative and naturally curious mindset starts at the top of our organisation, with our leadership team. If you look at their backgrounds, you’ll see that fewer than half of them are from construction. They bring a variety of experiences to the table to help us approach challenges differently. The questions they ask of their teams are probably not as linear as those that would be asked by someone who grew up in in this industry. The members of our leadership team are natural change agents who help their teams continuously strive to learn and improve.
With almost 25 years (and counting) of professional experience, what do you think are the most valuable lessons you have learned? What would be your advice to those who want to venture into this industry?
It is all about surrounding yourself with diverse leaders and teams that have the right attitude and a winning mindset. Even with the best-laid-out vision and detailed strategies, there will always be challenges and obstacles to overcome, so it comes down to how you react and deal with what comes your way. It is about persevering and fighting for what you believe in.
For those venturing into construction technology, be prepared to face a lot of detractors who will find all that is wrong with your approach or product. Ultimately, we have found that we need to be engaging with real-estate owners who will value the outcomes we create using our technology platform. In a fragmented industry where interests are not aligned between stakeholders, the primary outcome that matters is the return being delivered to these owners.
Would you mind telling us about Prescient’s future aspirations for 2020? What do you hope to accomplish or improve in the years to come?
There are so many exciting opportunities in front of us. After growing more than 40% this year, we’re on track to grow more than 90% next year, with most of those contracts already in place.
We’re rolling out our seismic platform for buildings up to 180 feet tall, which will be a big game-changer in markets like California, where the costs of traditional building approaches are high.
We’ve recently been approved by the Army Corps of Engineers for our engineered system to be adopted for all military barracks, dorms and hotels on bases around the world, as it meets the government’s exacting technical requirements. We’ll start our first projects next year and expect a significant ramp-up in federal business in the future.
We are also hard at work in getting our platform certified by the EU and seeding the European market with a finished building mock-up showcasing our technology, as we believe that our value proposition is even more powerful outside the US.
To conclude, what does success mean to Magued Eldaief?
Success for me is about building a global technology housing platform that makes a real dent in solving the housing affordability crisis. Just like Henry Ford industrialised car manufacturing with the Model T, I would like to industrialise and standardise multi-family housing, leveraging our technology platform to standardise the process and methodology of developing and building housing to provide an unlimited choice of housing offerings that are cheaper, faster and greener.
Thank you very much Mr Eldaief. It’s a pleasure speaking with you.
Magued Eldaief joined Prescient as CEO in June 2017. A 27-year GE executive, he most recently led the global commercial operations of the $4B Industrial Solutions business of GE which includes Low Voltage, Medium Voltage, Control & Automation Products & Services. Prior to that role, he was the CEO of GE Industrial Solutions division for the Europe, Middle East & Africa region. A multilingual and multicultural executive with broad experience in the energy industry, Magued held positions of increasing responsibility across five continents in GE’s Power & Energy division. He managed large infrastructure construction projects throughout his tenure at GE and had significant exposure to numerous divisions and functions throughout the organization including: sales and marketing, strategic planning, project structuring, EPC (engineering, procurement, and construction), services, and regional and global business unit leadership. He is an early investor in Prescient and served as a member of Prescient’s advisory board prior to joining as CEO.
President Trump is now three-fourths through his initial term as U.S. President. Between the U.S. House of Representatives’ December 2019 decision to charge him with two articles of impeachment, which results in a referral to the Senate for further investigation and deliberation, and a looming possible bid for reelection in November 2020, many are now drawing conclusions on the true impact of the Trump Effect. This article analyzes the current landscape from the lens of international dispute resolution, focusing on three areas where the Trump Effect is particularly palpable: U.S. sanctions policy, the World Trade Organization, and the birth of the North American Free Trade Agreement’s successor, the U.S.-Mexico-Canada Agreement. Developments in each area have significant impact on the future of international business dispute resolution, earning President Trump an “A” for advancing his myopic America First protectionist policies and an “F” for freedom in international business transactions and flexibility in related dispute resolution.
For American politics, 2019 concluded on an action-packed note. On December 18th, after weeks of inquiry and testimony, the U.S. House of Representatives charged President Donald Trump with two articles of impeachment: abuse of power and obstruction of Congress. This decision required members of the House to apply a legal test derived from the U.S. Constitution’s Article II. Specifically, did President Trump commit “high crimes and misdemeanors”? This term is not defined in the Constitution and it is considered a term of art, akin to other constitutional phrases such as “levying war” and “due process.” As explained by Professor Nikolas Bowie of Harvard Law School, the meaning of this phrase has been shaped by legal scholars over the past 150 years. While it does not refer to “literal crimes or misdemeanors” it is widely understood to refer to serious abuse of power and violations of the presidential oath of office.1
The Trump Administration’s policies and ideologies, which consistently challenge post-World War II multilateral institutions, risk the stability of the transnational legal system.
The House’s impeachment decision alone is not determinative. As of this writing, Speaker of the House Nancy Pelosi must refer the two articles of impeachment to the Senate, so that its members may conduct an impeachment trial. Notwithstanding the inquiry’s outcome, its very existence is momentous. The impeachment mechanism has previously only been deployed twice in American history against a U.S. President. First, after the U.S. Civil War, against President Andrew Johnson for undermining Congress in the Reconstruction effort. Then more recently, in 1998, against President Bill Clinton for perjury and obstruction of justice concerning his alleged relations with a White House intern.
While this level of scrutiny for a U.S. president is rare, it is par for the course for President Trump. Since the beginning of his presidency, commentators have discussed the “Trump Effect.” This refers to the gravity of the intended and unintended effects of this particular change in control of the U.S. executive branch on the international community. It is also the subject of Professor Harold Hongju Koh’s recent book, The Trump Administration and International Law. In his book, Professor Koh explains that the Trump Administration’s policies and ideologies, which consistently challenge post-World War II multilateral institutions, risk the stability of the transnational legal system.2 This certainly resonates with international investors and global businesses. International business transactions and disputes are not immune from shifts in the global geopolitical landscape and are often found at the intersection of international trade, commerce, and development.
President Trump also has completed three-fourths of his four-year presidential term. With a possible Senate impeachment trial and a potential November 2020 bid for reelection on the horizon, the time is ripe to assess the Trump Administration’s actual impact on future international business disputes. This article thus examines the Trump Effect on three categories of international business disputes, including how they arise and how they may be resolved.
U.S. Sanctions, Extraterritoriality, and Secondary Sanctions
U.S. citizens, businesses working globally and their foreign subsidiaries are familiar with Office of Foreign Assets Control (OFAC) requirements. These sanctions are widely perceived as a tool of U.S. foreign policy and they fluctuate as those priorities change.
For example, in 2015, then-President Obama, alongside other P5+1 partners (China, France, Russia, the United Kingdom, and Germany), entered into the Joint Comprehensive Plan of Action (JCPOA). This came after years of tension over Iran’s alleged efforts to develop a nuclear weapon. Under the JCPOA, Iran agreed to limit its sensitive nuclear activities and allowed international inspectors into its borders. In return, the P5+1 partners agreed to lift crippling economic sanctions. The JCPOA reflected the Obama Administration’s broader policy to cooperate with allies, such as the E.U., to align economic sanctions on common targets. It was a practical endeavor: greater coherence also maximized impact.
The Trump Administration, in contrast, has adopted a unilateral approach toward sanctions. In May 2018, the Trump Administration unexpectedly announced U.S. withdrawal from the JCPOA, while the other P5+1 partners remained committed to the 2015 agreement.3 January saw further developments as Iran’s reduced compliance with the JCPOA, in light of U.S. withdrawal, led the E.U. parties to consider referring the matter to the JCPOA’s Joint Commission under the Agreement’s Dispute Settlement Mechanism. Some dismiss the Trump Administration’s decision to withdraw from the JCPOA as insignificant because, even during U.S. participation, the American embargo on Iran remained. However, the true impact of this decision is clear when assessed more broadly. The Trump Administration’s unilateral approach creates divergence in both the timing and substance of global sanctions measures. Moreover, following increased U.S. sanctions, the E.U. retaliated by expanding the scope of its blocking regulation to prohibit E.U. companies from complying with U.S. secondary sanctions targeting Iran.4 Secondary sanctions specifically target foreign individuals and entities which engage in enumerated activities that may have no U.S. jurisdictional nexus. The goal is to prevent non-U.S. citizens and businesses abroad from doing business with a target of primary U.S. sanctions.5
Businesses that must comply with both U.S. and E.U. law now face the challenge of navigating inconsistent economic sanctions and the risks accompanying imperfect compliance. Violation of secondary sanctions by a non-U.S. entity can cause it to be subject to various sanctions by the U.S. government and the Trump Administration has signaled it will fully enforce the sanctions now in effect.6 The compliance game is now more complicated through the increased Iranian sanctions announced on January 10th. Further challenges concerning available claims and defenses may emerge as these businesses encounter disputes related to their international activities. For example, in the maritime industry, a vessel must actively ensure compliance with sanction policies as it selects ports. In the worst-case scenario, where a subrogation claim leads to litigation or arbitration, an insurer may claim that the insurance policy was invalidated through the vessel’s failure to comply with mandatory sanctions.
US Secretary of State Mike Pompeo and Treasury Secretary Steven Mnuchin speak to the press about new sanctions on Iran, at the White House on Jan.10,2020. Photo Source: Nicholas Kamm AFP – Getty Images
Systemic Stressors at the World Trade Organization
For twenty-four years, more than 160 Member States have entrusted the World Trade Organization (WTO) to regulate trade agreements and provide a framework and forum, the Dispute Settlement Body, to enforce those agreements. Private individuals and businesses do not have direct access to the WTO. They cannot complain about the practices of Member States before the WTO’s Dispute Settlement Body or rely upon rights granted by the WTO in litigation or arbitration because these claims are carved out by treaty or statute. Yet without a doubt, investors and businesses rely upon the WTO’s stability and predictability to support their international activities. These precise features have been challenged and undermined by President Trump’s “America First” economic policy.
Since January 2018, the Trump Administration has incrementally increased U.S. import restrictions under Section 232 of the 1962 Trade Expansion Act. Section 232 allows the executive branch authority to impose or increase tariffs on imports deemed threatening to “national security.” “National security” is not defined in the Act. The trade wars instigated by these unilateral policies are well-documented in global headlines and have caused increased tariffs on everything from washing machines to aluminum and steel. Several WTO Member States challenged these trade measures with claims before the Dispute Settlement Body.7 The Trump Administration, represented at the WTO by U.S. Trade Representative Robert Lighthizer, has argued that these disputes are “non-justiciable” as the measures relate to national security under Article XXI of the General Agreement on Tariffs and Trade 1994 (GATT 1994).8 In April 2019, the Russia – Measures Concerning Traffic in Transit Panel Report became the first WTO decision interpreting Article XXI of GATT 1994. It rejected the Trump Administration’s non-justiciability argument.9 This decision limits Member States’ range of defenses before the WTO. As a result, Member States may face increased scrutiny of their actions, which may impact Member States’ commitments to the Dispute Settlement Body specifically, and the WTO generally.
More recently, the Trump Administration has made headlines for causing the suspension of the WTO’s Appellate Body, the second-level review mechanism of the Dispute Settlement Body. The Appellate Body consists of seven seats and three members must be empaneled to hear every appeal. Since 2017, as terms have expired and vacancies have emerged, the Trump Administration has blocked the appointment of any new Appellate Body members.10 These vacancies exacerbated delays, but the Appellate Body was still able to function. However, as of December 10th, the only remaining judge of the Appellate Body is Chinese national Ms. Hong Zhao and it is impossible for Ms. Zhao to decide appeals alone. Many Member States remain committed to the WTO and have issued a “joint call” to launch the selection process for the appointment of further Appellate Body members.Meanwhile, other Member States have taken it upon themselves to develop solutions. Canada and the European Union, for example, in July agreed to an Interim Appeal Arbitration Arrangement to resolve WTO disputes at the appellate level.11 The arrangement is a parallel and ad hoc system for dispute resolution, permitted under Article 25 of the WTO’s Understanding on Rules and Procedures Governing the Settlement of Dispute, but it has not previously been tested and is only a temporary solution to a systemic challenge caused by the Trump Administration.
International investors and global businesses engaged in trade activities have limited voice before this multilateral institution, but they are not immune from highly politicized fluctuations or the impact of trade wars.
International investors and global businesses engaged in trade activities have limited voice before this multilateral institution, but they are not immune from highly politicized fluctuations or the impact of trade wars. The Trump Administration’s “America First” economic policy has introduced an added layer of instability for businesses around the world. Prudent investors and businesses can account for some of this unpredictability as they allocate risk in future business deals. For example, unexpected tariffs may cause certain deals to no longer be financially prudent, or even viable. Thoughtful and strategic contract negotiators could expressly allocate the financial burden of possible future tariffs or even introduce an opt-out mechanism through a force majeure clause to insulate from these risks. Indeed, such risks might even justify seeking political risk insurance for businesses particularly susceptible to the Trump Effect.
The Rise of NAFTA 2.0
In October 2018, President Trump collaborated with his Canadian and Mexican counterparts to unveil the U.S.-Mexico-Canada Agreement (USMCA).12 The USMCA aims to replace the North American Free Trade Agreement (NAFTA), which enabled a free-trade zone between the United States, Canada, and Mexico since 1994. From a trade and economic perspective, the resounding view is that not much has changed.13 The investment arbitration mechanism of NAFTA also remains intact. As usually employed, this mechanism allows individuals and businesses who qualify as foreign “investors” holding qualified “investments” to pursue investment arbitration directly against the host State should guaranteed rights be violated.14 However, the USMCA’s Chapter 14, which embodies this dispute resolution mechanism, departs from NAFTA and reflects a new approach that should be closely monitored by foreigners holding investments in any of the three USMCA Member States.
The prior NAFTA regime took a “balanced” approach to rights and obligations among the three Member States. In the USMCA, Canada has withdrawn from Chapter 14 entirely. This means that Canada remains a party to the USMCA, but investment arbitration claims can no longer be asserted by Canadian investors, nor asserted against Canada. Canada’s consent for legacy claims will expire three years after NAFTA’s termination (a currently undetermined date).15 The investment arbitration mechanism survives for the benefit of American and Mexican investors with changes to the types of disputes investors may pursue, and the procedural means to do so. Moreover, as explained below, certain elements are now dependent on national identity.
Investors from other Member States (i.e., prospective claimants) are now required to litigate claims “before a competent court or administrative tribunal of the respondent.”16 This is essentially a requirement for investors to first litigate in local courts to resolve disputes without initiating an investment arbitration proceeding. Investors must litigate until a “final decision from a court of last resort,” or, alternatively, 30 months have elapsed since local court proceedings were initiated.17 There is an exception to this local litigation requirement “to the extent recourse to domestic remedies was obviously futile or manifestly ineffective.”18 This scheme is accompanied by a four-year concurrent statute of limitations for asserting any claim through investment arbitration.19
The USMCA provides an “asymmetrical” fork-in-the-road provision.20 If, while pursuing local litigation, American investors allege a breach of the USMCA itself (as opposed to a breach of Mexican law), this will bar any right to pursue investment arbitration under the USMCA.21 The USMCA does not contain a parallel provision for Mexican investors, thereby altering the scope of an investor’s rights based solely on nationality.
If investors have exhausted the local litigation requirement (or 30 months have elapsed) and no adequate relief has been obtained, they become qualified to pursue investment arbitration against the host State. In the arbitration proceeding, only certain claims would be available: (1) direct (but not indirect or “creeping”) expropriation,22 (2) violations of national treatment,23 or (3) violations of the USMCA’s Most Favored Nation (MFN) provision.24 There is a carve-out for MFN claims concerning “the establishment or acquisition of an investment.”25 This is a departure from the approach of similar provisions in other investment agreements.
Further rights are available for claims concerning government contracts in several highly regulated sectors (including energy, telecommunications, transportation, and infrastructure).26 These provisions allow investors to pursue claims for violations of the minimum standard of treatment under customary international law, indirect expropriation, and the establishment or acquisition of an investment.27
While each of these changes are distinct and reflect discrete rights and opportunities, all of them suggest that investors must be strategic, both in making their investments and pursuing remedies in case of adverse action by a host State. In all events, once a dispute arises and investors begin the process of vindicating their rights through local litigation, they must be prepared with a parallel strategy (and well-informed counsel) to pursue investment arbitration.
Leaders of all three Member States signed the USMCA at a ceremony in fall 2018 and domestic ratification by each would make the treaty binding. Mexico ratified the USMCA in June 2019.28 Unexpectedly, on December 10th (the same day that the WTO Appellate Body ceased to function), all three Member States executed a “Protocol of Amendment” (Amendment). The 26-page Amendment includes modifications to key elements of the USMCA, most importantly dispute settlement, labor and environmental provisions, intellectual property rights, and steel and aluminum requirements in the rules of origin for automobiles.29 The Amendment does not make any changes to Chapter 14’s investment protections. However, it introduces novel concepts for international dispute resolution, including evidentiary guidelines for any tribunal empaneled to hear a State-to-State dispute under the USMCA’s Chapter 31. This is not directly relevant for international business disputes, but it is interesting nonetheless as international investors and global businesses may be impacted by State-to-State disputes arising from the Trump Administration’s protectionist policies.
In the U.S., the House ratified the USMCA during the week leading up to Christmas and now it must also be ratified by the Senate. President Trump’s articles of impeachment (as of this writing, yet to be dispatched to the Senate by House Speaker Pelosi) also are on the Senate’s agenda for January, signaling that it will be a busy month in Washington, DC. Following completion of ratification by the U.S. and Canada, investors and businesses with activities in USMCA Member States will be better able to assess the impact on their investments and rights.
Conclusion
In his book on the subject, Professor Koh characterizes the Trump Effect on global politics, international law, and related multilateral institutions as impacting the “future world order.”30 Professor Koh wrote these words at the dawn of this U.S. presidential term. As we come closer to its conclusion, these words could not have been more prolific. The international investment and global business community has proven that it takes resilience to thrive in this era. Continuously evolving business strategies, including the need to react to changing global sanctions policies, emerging trade wars, and the rise of a new regional free trade agreement, have been essential for successful business endeavors. The same kind of resilience and creativity will be essential to successful dispute resolution as the aftermath of this presidential term unfolds. By our score, President Trump has earned an “A” for advancing his myopic America First protectionist policies and an “F” for freedom in international business transactions and flexibility in related dispute resolution.
Charles H. Camp is an international lawyer with over thirty years of experience representing foreign and domestic clients in international litigation, arbitration, negotiation, and international debt recovery. In 2001, Mr. Camp opened the Law Offices of Charles H. Camp, P.C. in Washington, D.C. to focus on effective, personalized representation in complex, international matters. Mr. Camp teaches international negotiations at the George Washington University Law School.
Kiran Nasir Gore is Counsel at the Law Offices of Charles H. Camp, P.C. Her expertise is in international dispute resolution, including advocacy before U.S. courts, commercial and investment arbitration tribunals, and investigative authorities. She also draws on her professional experiences as an educator at the George Washington University Law School and New York University’s Global Study Center in Washington, D.C.
References
1. Nikolas Bowie, “High Crimes Without Law: Responding to Laurence Tribune & Joshua Matz, To End a Presidency (2018),” 132 Harvard Law Review Forum 59, 60 (2018).
2. Harold Hongju Koh, The Trump Administration and International Law 5-19 (OUP, 2019).
3. Joint Comprehensive Plan of Action (JCPOA) (July 14, 2015); Mark Landler, Trump Abandons Iran Nuclear Deal He Long Scorned, N.Y. TIMES (May 8, 2018).
4. Council Regulation (EC) No. 2271/96 (Nov. 22, 1996), protecting against the effects of the extraterritorial application of legislation adopted by a third country, and actions resulting therefrom.
5. Jeffrey A. Meyer, Second Thoughts on Secondary Sanctions, 30 University of Pennsylvania Journal of International Law 905, 906 (2009).
6. See generally U.S. Treasury Iran Sanctions Resource Center, available at: https://www.treasury.gov/resource-center/sanctions/programs/pages/iran.aspx.
7. Challenges have been brought by China, India, the European Union, Canada, Mexico, Norway, Russia, Switzerland, and Turkey. Several other countries have joined these disputes as Third Parties.
8. Third-Party Oral Statement of the United States, Russia – Measures Concerning Traffic in Transit, WT/DS512, at 4 (Jan. 25, 2018); Third-Party Executive Summary of the United States, Russia – Measures Concerning Traffic in Transit, WT/DS512, at 2 (Feb. 27, 2018).
9. See Panel Report, Russia – Measures Concerning Traffic in Transit, ¶ 7.103, WTO Doc. WT/DS512/R (adopted Apr. 5, 2019).
10. “Members reiterate joint call to launch selection process for Appellate Body members,” World Trade Organization (Nov. 22, 2019), available at: https://www.wto.org/english/news_e/news19_e/dsb_22nov19_e.htm
11. Joint Statement by Canada and the European Union (EU) on an Interim Appeal Arbitration Arrangement (July 25, 2019).
12. See generally Robert Landicho and Andrea Cohen, What’s in a Name Change? For Investment Claims Under the New USMCA Instead of NAFTA, (Nearly) Everything, Kluwer Arbitration Blog (Oct. 5, 2018).
13. See e.g., Daniel J. Ikenson,“USMCA: A Marginal NAFTA Upgrade at a High Cost,” Cato Inst. (April 10, 2019); Gwynn Guilford, “The net impact of Trump’s new NAFTA is probably nothing”, Quartz (Apr. 22, 2019).
14. For a more in-depth discussion, see generally Kiran Nasir Gore, From NAFTA to USMCA: Providing Context for a New Era of Regional Investor-State Dispute Settlement, 8 Young Arbitration Review 4 (July 2019).
15. A “legacy investment” is defined as “an investment of an investor of another Party in the territory of the Party established or acquired between January 1, 1994, and the date of termination of NAFTA 1994, and in existence on the date of entry of force of this agreement.” USMCA, Annex 14-C (Legacy Investment Claims and Pending Claims), Art. 6(a).
16. Id., Annex 14-D (Mexico-U.S. Investment Disputes), Art. 14.D.5 (Conditions and Limitations on Consent).
17. Id.
18. Id., note 24.
19. Id., Art. 14.D.5 (Conditions and Limitations on Consent).
20. For an in-depth discussion, see Alexander Bedrosyan, The Asymmetrical Fork-in-the-Road Clause in the USMCA: Helpful and Unique, Kluwer Arbitration Blog (Oct. 29, 2018).
22. “Direct expropriation” occurs when “an investment is nationalized or otherwise directly expropriated through formal transfer of title or outright seizure.” Id., Annex 14-B (Expropriation), Art. 2.
23. “National treatment” means “treatment no less favorable than that it accords, in like circumstances, to its own investors with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory” Id., Art. 14.4.1 (National Treatment).
24. An MFN claim arises when a State’s treatment of an investor is “less favorable than the treatment it accords, in like circumstances, to investors of any other Party or of any non-Party with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory” Id., Art. 14.5.1 (Most-Favored-Nation Treatment).
25. Id., Annex 14-D (Mexico-U.S. Investment Disputes), Art. 14.D.3 (Submission of a Claim to Arbitration), Art. 14.D.3 (Submission of a Claim to Arbitration), note 22.
26. Id., Annex 14-E (Mexico-U.S. Investment Disputes Related to Covered Government Contracts), Art. 6.
27. Id.
28. Mary Beth Sheridan, Mexico becomes first country to ratify new North American trade deal THE WASHINGTON POST (June 19, 2019).
29. “Protocol of Amendment to the USMCA” (Dec. 10, 2019), available at: https://ustr.gov/sites/default/files/files/agreements/FTA/USMCA/Protocol-of-Amendments-to-the-United-States-Mexico-Canada-Agreement.pdf
30. Harold Hongju Koh, The Trump Administration and International Law 2 (OUP, 2019).
Source: One World Herald ‘National Bank Trust Executive Director Mikhail Khabarov’
The National Bank Trust was set up after the reorganization of several major credit organizations. With 2 trillion rubles already accumulated in debt-ridden assets, the Russian Central Bank is working hard to ensure that these finances are returned to the economy. The National Bank Trust, otherwise known as the non-core assets bank, is in charge of collecting these debts. The former Minister of Finance, Mikhail Zadornov, was tasked with setting up the non-core assets bank after Elvira Nabiullina of the Russian Central Bank consulted with him. As part of the management board of VTB Bank, he was largely responsible for the 2018 reorganization of Bank Otkrytie. In the same year, he made a bold statement by pressing for Alexander Sokolov to spearhead the National Bank Trust. For debtors, this is an ominous sign: Pay up or go to court.
However, debtors have been told that support will be rendered to companies with good prospects. These companies will not be pressured to repay their debt obligations. Last May, a rather dubious appointment was made to oversee the position of CEO of the Trust, when Mikhail Khabarov was appointed. As the man behind A1 (2010-2014), he has employed a variety of highly suspect tactics to bully businesses into submission. The company under discussion, A1 was particularly aggressive in the hostile takeover arena. Reports indicate that qualified legal methods were used against businesses. As Executive Director of the Trust Bank, Mikhail has brought a variety of ‘specialists’ to the state bank from A1. Foremost among them is the new financial director of the trust, Philip Lerman. His methodology is perhaps best described as unorthodox.
A1 Benefitted from Corporate Takeovers Every Time
Mikhail Khabarov made it very clear during his time at A1 that the company would become a beneficiary of turmoil if crises are not avoided. He believes that there is nothing better than economic chaos when the economy tanks and recovers just as sharply. The strong-arm tactics employed by A1 hit home for many Russian companies. The lack of compassion was a notable feature of his business dealings, and scores of Russian enterprises can attest to that. Among his many important business decisions was the downing of a low-cost airline venture between Avianova (US Indigo Partners Foundation), and A1. The unprofitable project was a failure, despite lasting for 3 years. In 2011, it ranked at 12 among all the domestic airlines and was the second biggest low-cost airline carrier for the country. It was Mikhail Khabarov in charge of the action which resulted in it going bankrupt by 2012. Another highly-popularized bankruptcy occurred with Stroyfarfor, a ceramic tile manufacturing entity.
Evidence now points to many aggressive takeover operations by Lazar Shaulov, the founder of A1, and Mikhail Khabarov. Business contracts were designed in a way to drive companies out of business, while A1 was collecting. At the height of the tensions with Stroyfarfor, A1 was in total control and ownership of all the shares of the company. Then, everything was sold and all the liquid assets were expressly for the benefit A1 shareholders. In the end, the ceramic tile company’s massive debts to Russia went unpaid. People like Leonid Maevsky – the owner of Stroyfarfor – resisted the strong-arm tactics by A1. His resistance proved futile as he was charged with extortion. Various shenanigans ensued, including unsubstantiated reports of compromising information and audio recordings. A1’s actions were clear; they strong-armed companies into giving up ownership to A1 and then sold those companies, squeezed every last cent out of them, and left them heavily indebted.
Outrage at Strong-Arm Tactics Justified
A Russian academic, Vladimir Betelin was so outraged at A1s conduct that he made urgent appeals to Rostec State Corporation for protection guarantees against A1. This aggressive raider corporation and its strong-arm tactics leader, Mikhail Khabarov worked to ensure the utter destruction of all companies it encountered. A notable coal company – Zarechnaya – knows about this firsthand. It was operated by the defense corporation NPK Uralvagonzavod. In this case, the Ukrainian prosecutor general, Vasiliev teamed up with A1. Vasiliev was against the transfer, but A1 was having none of it and wanted to impose sanctions from the European Union and the United States against UVZ and the board members. Tensions abated, but the conflict had a negative impact on the coal company.
Over the years, A1 made headlines with many other questionable strategic takeovers, including the seizure of Rosatom – Corporation Splav. At the time of the takeover, the legal ownership was changing hands. However, the chief executive officer, Vladimir Fedorov faced arrest charges. After his arrest and subsequent incarceration, Novgorod came under the exclusive ownership of A1. For these and other reasons, many are rightly questioning Alexander Sokolov’s decision to appoint A1 individuals to high-ranking positions at the National Bank Trust. The unprincipled behaviour of people like Mikhail Khabarov and his deputies from A1 are not inspiring confidence among the public, making Sokolov a questionable selection too.
If you are new to the idea of trading, or even if you are an established trader but you don’t trade in forex, you may not know exactly what ‘forex’ means and the difference between forex versus stocks. Just what is forex trading? Simply put (although if we’re honest forex isn’t exactly simple when you really drill down into it) forex is a portmanteau of ‘foreign exchange’, and it is the market in which two currencies are exchanged at an exchange range which can be either fixed or floating. Think about when you go on holiday and change your pounds into euros, for example; you’ll see the exchange rate then.
But forex trading isn’t about holidays. It’s about the exchange rate that is used when produce is imported from different countries. So if a merchant in England wants to buy produce from France, he or she will need to exchange their pounds into euros in order to do it. This is how all international trade works and for risk free trading you can follow Corporate FX.
Forex trading is different to the general stock market because the forex market is decentralised (that is, there is no central trading area). Instead, the majority of foreign exchange transactions are over the counter ones, carried out by banks for their clients.
The Beginning
It may surprise you to discover that forex trading really began back in 1875. This was when the gold standard monetary system was brought in; before this happened, gold and silver were used to buy goods from abroad, and they didn’t need to be exchanged – they held the same value all over the world.
The issue here was that gold’s value changed depending on how much was available. As soon as a new source of gold was discovered, the value of the gold already being used out in the world decreased. This meant that using it to buy items was unsustainable, and so countries started to put their own spin on things, determining how much gold was worth themselves. Since each country did this independently of the next, each country had effectively created its own currency. By the time World War I ended, gold was no longer used, but the exchange rates were still required.
Today, forex – or FX – trading is more accessible than ever. Once only accessed through brokers and banks, now individual traders can access the markets online at any time, and trade when they want to. The forex market is open 24 hours a day, five days a week.
The Specifics
As mentioned above, FX trading is currency exchanged at an agreed price. Those who are trading could be anything from financial institutions to insurance companies, banks to individual traders, and plenty more besides.
Forex trading is always done in pairs; the original currency and what it needs to be exchanged into. An example of this is GBP/EUR. This is made up of GBP (the base currency) and EUR (the quote currency). To own one GBP, you need to have the equivalent amount in EUR.
But how does this relate to trading? To begin with, the goal of forex trading is to work out the direction of the markets – it’s about buying one currency at a low exchange rate and deciding when to sell it at a higher exchange rate.
While fossil fuels, such as coal, natural gas and oil are infinite, and one day they may run out, there are other renewable alternatives that people can use. Although they are still much more expensive, such retailers as TXU have already introduced individual txu energy plans which try to incorporate renewable programs. It’s an excellent solution to encourage and motivate others to take action. But what are the best alternative energy sources? Here is the list.
Solar Energy
The most popular alternative source is undoubtedly solar energy. Today, many people decide on solar panels, installed on their roofs. Solar panel installation in San Diego is so commonly and willingly chosen since once they are installed, they don’t need any further maintenance.
Wind Power
Can you imagine a world without wind turbines? For some years, they have become an integral part of our environment. This system uses wind speed to generate almost 100% of electrical energy, whereas solar panels capture only 20% of the sunlight.
Hydropower
Another renewable energy source is hydropower, known and used already in 1878. It’s the cheapest alternative, which generates almost 20% of today’s electricity, which is perfectly clear energy since it doesn’t produce any byproducts. What’s even more important is the fact that it’s an unlimited source. Even if you use water, it’ll be replaced in nature by rain and snow soon. So, it doesn’t have any harmful effect on the natural environment.
Geothermal Power
Geothermal power is created by using heat generated by the earth’s core. Its initial cost is quite high, but after that, it becomes profitable, providing people with a sustainable source of energy for 24/7. It’s also perfectly safe, producing zero noise and emission.
Biomass Power
The last alternative on the list goes to biomass power. This energy may be divided into two categories, namely biofuel and biodiesel. The first of them utilises mainly corn and sugar-based ethanol, whereas the latter is usually made of vegetable oils or animal fats. It’s an improved replacement of fossil fuel.
In short, the presented energy sources are the best alternatives available in the current market. To extend your knowledge from this field, loot at this educational infographic.
Online sports’ betting is a lucrative opportunity, provided you are able to understand its nitty-gritty. After all, it is more than a game of luck. There is no foolproof technique to get instant success and it requires a lot of knowledge, experience, and smart thinking to up your game. Additionally, you may take a great deal of time and perseverance to polish your skills for attaining a better winning percentage. Beyond just having the right skills and understanding, you also need to implement the right strategies to achieve the desired success. Here are the strategies that you need to embrace to become a successful online sports bettor.
Understand your goals and risk tolerance
To start with, you need to understand your goals and risk tolerance. Every bettor has a different approach. Some want to bet on the underdog and improbable events so that they can make big money with them. There are others who play safer and stick to more likely outcomes. Obviously, the risks are directly proportional to the profits. The best thing to do is to understand your style and bet smartly while maintaining a balance between risks and profits. Thinking strategically will help you come up with a mix that works.
Learn to manage your bankroll
When you bet online, managing your bankroll becomes a significant aspect of successful betting. Right from the start, you need to have clarity about the amount you will be dedicated to betting. It is not wise to bet an amount that you cannot afford to lose. Establishing a pre-ordained bankroll and deciding on unit size is the best way to manage your money. For example, you can decide that 5% of bankroll is the maximum that you will wager on any single bet.
Trust only the best website
Another key strategy for any online bettor is to be very careful about the choice of the betting website. Settle only for a legitimate sports book that you can trust with your money. The first thing to do is to check whether they have a license to operate. Do check their terms and conditions and privacy policy as well. Ensure that they have good customer service so that you may connect with them when in doubt. Reading online reviews also helps.
Maintain a record of your bets
Although you may not be really keen about keeping a record of your wins and losses, you should still do it. This will give you a clear picture of your strengths and mistakes. Knowing the mistakes is particularly important because you wouldn’t want to repeat them again. The approach will make you a more successful bettor in the long run.
Play with your head, not heart
The final and perhaps the most important, betting strategy is to play with your head and not your heart. If you are serious about making big money with online sports betting, remember that emotions have no place here. Every single move requires calculation, logic and clear thinking. It is equally important to abstain from betting on the favorites.
More than anything else, you need to have realistic expectations. Don’t believe that you will get a windfall just because someone else got it because they would have probably gone through the fair share of trouble.
In light of recent U.S. sanctions bills which targeted gas pipelines in the Baltic and Black Sea – met by anger by both Germany and Russia with vested economic interests in the area – what are the wider implications for investment in contested energy projects?
As President Trump unleashes a new wave of sanctions designed to apply maximum pressure on Iran, eyes remain firmly on the Middle East. Yet, for all the attention on deteriorating relations between Washington and Tehran, not to mention the wider European signatories of the Nuclear Deal, the effects of the Russian sanctions continue to be felt just as keenly across Europe.
Just before Christmas, Trump signed into law a new bill that established the Space Force as a new branch of the U.S. military. In the shadow of this eye-catching announcement were several new sanctions bills that target the involvement of foreign companies in constructing Russian-sponsored gas pipelines in the Baltic and Black Seas.
Intended to diminish Russian influence over Europe energy supplies, the new sanctions whipped up significant tension between the U.S. and a number of its allies. Specifically, and controversially, the Protecting Europe’s Energy Security Act of 2019 (PEESA), affects non-U.S. persons’ involvement in the pipelines Nord Stream 2 (running from Russia to Germany) and the TurkStream (from Russia to Turkey). Critically, the Russian government holds majority ownership in Gazprom PJSC, who own the natural gas pipeline projects. With the pipelines caught up in a complex web of investment concerns between Europe, the U.S. and Russia, the sanctions bill has wide-reaching intended – and unintended – consequences.
Intended to diminish Russian influence over Europe energy supplies, the new sanctions whipped up significant tension between the U.S. and a number of its allies.
The announcement was met with a ripple of discontent from across Europe, where many businesses had vested interests in the pipelines. Most notably, the German Finance Minister warned the U.S. against overstepping its reach by interfering in European internal energy affairs. The impact of the sanctions on non-U.S. companies was felt almost immediately. Within hours of the legislation being enforced, a major contributor to Nord Stream 2, the Dutch-Swiss offshore services company Allseas Group, announced it would be suspending its work on the pipeline. Russian President Vladimir Putin acknowledged that the Nord Stream 2 project would be delayed until 2021 because of these new sanctions.The immediate consequences of PEESA on investment in the region indicates significant global implications for the future development of targeted pipelines.
Who is affected by PEESA?
The Act requires sanctions to be imposed on certain non-U.S. individuals and businesses who have sold, leased or otherwise provided vessels that are used to lay pipes at 100 feet or more below sea level in the construction of Nord Stream 2, TurkStream, or indeed any project that succeeds these. The sanctions apply to any persons who are determined to have facilitated structured or deceptive transactions to provide vessels for the construction of these projects. These determinations of involvement are to be made in a report to Congress by 18 February 2020, and then updated every 90 days.
What do the sanctions prohibit?
They prohibit and give the power to block any property transactions and interest in property if the interests are within the U.S., come into the U.S. or fall within the possession of a U.S. person
Revoke current visas so that a foreign person involved in these interests cannot enter the U.S. or obtain a visa to allow them to enter the U.S.
In the case of non-U.S. entities, the sanctions will be imposed on the principal shareholders, as well as the corporate officers
What is the timescale of the sanctions?
PEESA does allow, to some degree, a wind-down period. Foreign persons have 30 days after the enactment of the sanctions to prove, in good faith, that they have taken adequate steps to wind down their operations. However, any activities that are not geared towards finishing up operations are, in fact, already sanctionable.
In a letter to the chief executive officer of the Allseas Group, Senator Ted Cruz and Senator Ron Johnson (sponsors of the bill) advised that this wind-down period in fact requires immediate action. In this letter, the senators warned the company would face ‘potentially fatal legal economic sanctions’, even if they were to continue their work by just one day. The advanced stage of development of both pipeline projects is likely the reason behind the severity of the wind-down period’s application. Indeed, with the completion of the projects mere weeks away, the U.S. is moving fast to impose control.
Are there any exceptions?
The sanctions allow exemptions for people or activities that fall under certain categories:
Authorised U.S. intelligence, law enforcement and national security activities
If required under the United Nations’ Headquarters Agreement, foreign persons can be admitted into the U.S.
Those looking after the safety of crews or protecting human life aboard relevant vessels; persons maintaining vessels with the aim of avoiding environmental damage or other significant damages
Those engaged in necessary repairs or maintenance of the pipeline projects, including environmental remediation
The importation of goods into the U.S.
Will the bill be effective in its aims?
The sanctions bill targets Russia’s reliance on Western technology to maintain complex engineering projects in the petroleum industry. However, the effectiveness of the sanctions will rest upon how Russian companies will manage the completion of the Nord Stream 2 pipeline project, with 1,800km of the 2,100km pipeline already finished.
The exception outlined under environmental maintenance activities, may actually, inadvertently, provide a loophole to the sanctions. For instance, companies such as Allseas could prove to be in compliance with PEESA if they can argue it is necessary for them to fix faults in order to prevent environmental damage.
The sanctions bill targets Russia’s reliance on Western technology to maintain complex engineering projects in the petroleum industry. However, the effectiveness of the sanctions will rest upon how Russian companies will manage the completion of the Nord Stream.
What are the financial implications?
In the immediate term, it seems the Russian response to these developments is to plough on regardless. Thus, in defiance of the sanctions, Russia has inaugurated TurkStream in Istanbul. Once fully operational, TurkStream is set to carry Russian gas to Turkey, as well as south-eastern European countries, including Bulgaria and Serbia. Russia has also expressed confidence that it will be able to finish Nord Stream 2. Whether this induces a further response from the U.S. remains to be seen.
Meanwhile, the initial German response to PEESA has been one of stark condemnation. Following the German finance minister’s statement in reaction to the U.S.’ maneuver, one senior German official went as far as to call for retaliatory German sanctions against the U.S.. He suggested these could take the form of sanctions against the U.S.-Canada Keystone pipeline, or a European “firewall” against the U.S. The anger over U.S. involvement stems from strong German investment in gas as an industrial feedstock. Although it has in the past acknowledged the importance of not relying too heavily on Russian energy, it is likely that Germany will no longer support any further U.S. efforts to interfere in Nord Stream 2 and TurkStream.
How will the U.S. respond?
The U.S. has a range of possible mechanisms at its disposal that it could choose to apply to further delay contested energy projects such as these.
One route could be passing contingency sanctions that would, rather than attempting to prevent the completion of the pipeline over concerns of misuse, instead allow the U.S. to penalise Russia for actual misuse of the projects. The U.S. could pass additional sanctions legislation to alter tactics along these lines. Alternatively, President Trump could issue executive orders to allow the U.S. Department of the Treasury to place immediate penalties upon Russia. This would allow the U.S. to cut off – or at least reduce – the flow of gas from Russia to Europe, acting as weighty economic leverage in further discussions.
Alternatively, the U.S. could take a less exact approach by including more severe sanctions on Russia in the next sanctions bill. There are more sanctions coming down the line, with the consequences of the Defending American Security from Kremlin Aggression Act (DASKA), yet to be fully felt. DASKA imposes sanctions on investments in Russian-constructed liquefied natural gas facilities outside of Russia, investments in energy projects outside of Russia in which a Russian person has a significant stake, as well as the provision of goods, services, financing or any other means targeted towards furthering Russia’s influence over its crude oil resources.
The implications for international energy interests PEESA is a significant tool in the U.S.’ sanctions arsenal that allows it to increase its influence over European energy affairs and even penalize entities whose operations it deems to undermine U.S. national security and foreign policy interests. Both U.S. and foreign companies who operate in energy and offshore services, in particular, would do well to keep to keep a close eye on further sanctions developments targeted at contested energy projects.
The decision has the potential to set the tone for further U.S. interventions in European and Russian business interests, with wider repercussions for investment in similar pipelines. Since these sanctions are not actually related to any U.S.-specific concern, they mark a significant escalation in attempts to increase influence over European energy affairs.
Leigh Hansson is a leading partner in the International Trade & National Security team at Reed Smith, with significant experience representing multi-national corporations in trade issues such as sanctions and export controls and CFIUS.
Brett Hillis, partner, has a broad regulatory and transactional practice and is well-known for helping clients navigate the changing shape of financial regulation as it affects derivatives and securities markets.
The article is co-authored by Alexander Brandt (Associate), Noah Jaffe (Associate), Eli Rymland-Kelly (Associate), Reed Smith
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