Monthly Archives: June 2017

Tradeweb to be main offshore trading platform for China ‘Bond Connect’ – Reuters

Posted: June 26, 2017 at 5:38 pm

SHANGHAI Tradeweb, a fixed-income trading platform, will connect with China Foreign Exchange Trading System (CFETS) to be the main interface for offshore investors trading in China's bond market through the country's upcoming "Bond Connect" scheme, the company said on Monday.

Talks between Tradeweb and the Hong Kong exchange were exclusively reported by Reuters last August.

Tradeweb, majority-owned by Thomson Reuters, the parent company of Reuters News, matches buyers and sellers of fixed income products across more than 22 international OTC bond markets.

In a statement, Tradeweb said that eligible overseas institutional investors from its network of more than 2,000 clients would be able to trade directly with liquidity providers in the CFETS market through Tradeweb's platform.

Investors trading through Tradeweb will be able to use global custodians to settle through a nominee holding arrangement provided by the Hong Kong Monetary Authority's Central Moneymarkets Unit, the statement said.

Hong Kong and Chinese regulators said in May that they had approved the long-awaited "Bond Connect" program, with only "Northbound" trades - trading of Chinese bonds by foreign and Hong Kong investors - permitted in its initial stage.

Regulators have not yet revealed a launch date for the scheme.

China's bond market is the world's third largest, worth about 65 trillion yuan, or about $9.5 trillion, the Hong Kong Monetary Authority said in May.

(Reporting by Andrew Galbraith; Editing by Shri Navaratnam)

WASHINGTON The U.S. Supreme Court agreed on Monday to consider whether corporate insiders who blow the whistle on their employers are shielded from retaliation if they only report alleged misconduct internally rather than to the government's Securities and Exchange Commission.

WASHINGTON New orders for key U.S.-made capital goods unexpectedly fell in May and shipments also declined, suggesting a loss of momentum in the manufacturing sector halfway through the second quarter.

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On-shoring offshore funds to India – Livemint

Posted: at 5:38 pm

Foreign investment flowing into India is primarily pooled and managed in offshore jurisdictions. This is because our regulatory framework discourages asset managers based out of India from managing offshore pools of capital. As a result, several offshore funds which target investing in India have fund managers of Indian origin who have relocated to offshore locations. It is high time we enable offshore fund activity to shift to India, giving a boost to the domestic fund management industry.

Of the $43 billion of foreign direct investment (FDI) inflows which India received in FY17, $24 billion was invested via Mauritius and Singapore. Both these jurisdictions have emerged as the preferred destination for fund managers to set up their operations. Compared to this, the domestic pool of capital managed by India-based asset managers under the Securities and Exchange Board of Indias (Sebi) alternative investment fund (AIF) guidelines is only $7 billion. A significant chunk of the offshore capital flowing into India can be managed by fund managers based out of India if regulatory changes are carried out. Unless that happens, fund managers in India who want to attract foreign capital will keep shifting offshore, leading to loss of employment and tax revenue for India.

There are two ways in which regulations can enable fund managers based in India to manage offshore pools of capitalallow them to manage offshore funds from India without taxing the offshore fund as an Indian entity, and permit foreign investors to directly invest in funds set up in India. For both these cases, regulatory changes need to be carried out.

The most important regulatory change required is to ensure that an offshore fund will not be taxed as an Indian entity just because it is being managed by a fund manager located in India. A beginning was made in Finance Bill 2015. Under the newly introduced Section 9A of the Income-tax Act, 1961 (ITA), it was clarified that the income of an eligible offshore fund would not be taxed in India merely because the fund is being managed by a fund manager located in India.

The objective of Section 9A was to allay fears that the presence of a fund manager in India would lead to the offshore fund being taxed in India at domestic tax rates, rather than lower rates specified under various double taxation avoidance agreements (DTAAs). Unfortunately, the conditions specified under the Section are so strenuous that for all practical purposes, they remain unachievable.

For instance, one of the conditions specifies that an investors share in the fund, directly or indirectly, should not exceed 10%. This is a very restrictive condition when it is common for funds to have a sponsor or anchor investor whose share in the fund generally exceeds 25%. Also, most funds are targeted at a specific group of investors, which does not exceed 10. Further, fund managers may consciously want to cater to a small set of investors who can make large investments.

Regulators should relax this condition by looking beyond the investor and also including the investors beneficiaries. This is because an investor in a fund could be a pool of several other investors. Thus look through provisions will enable several offshore funds to be classified as eligible funds under Section 9A. Also, given that Sebi-registered foreign portfolio investors (FPIs) already meet broad-based requirements of being diversified in terms of investor participation, they should automatically be regarded as an eligible investment fund.

Another debilitating condition specified under Section 9A is that offshore funds should not control or manage any business in India. Offshore private equity funds, during the course of the fund tenure, may be required to acquire a controlling stake in the investee companies to protect their initial investment. Further, even in cases where the fund has only a minority stake, exercising any minority interest protection rights could be classified under existing law as resulting in control over the investee company in India.

Furthermore, the benefits of Section 9A are available only to PMS (portfolio management services) asset managers and investment advisers registered with Sebi. Investment managers of AIFs and mutual funds are not covered under the list of eligible investment managers that can make use of Section 9A. This limits the number of fund managers who can make use of the regulatory relaxation.

Given these difficulties, the alternative is to have foreign investors directly invest in funds registered in India. Changes in regulations to permit this have been more encouraging. In November 2015, the Reserve Bank of India permitted automatic approval for foreign investors to invest in AIFs, real estate infrastructure trusts and infrastructure investment trusts. Previously, investment in these vehicles required specific approvals from the foreign investment promotion board. Further, in the Finance Bill 2016, it was clarified that foreign investors investing in India-based funds would be taxed at rates mentioned under the various DTAAs.

However, given that not all foreign investors are comfortable directly investing in India, there is still a need to enable fund managers in India to manage offshore funds. Regulatory changes to permit this can midwife a truly multinational asset management industry in India.

Ravi Saraogi is investment strategist, IFMR Investment Managers Pvt. Ltd, Chennai.

Comments are welcome at theirview@livemint.com

First Published: Tue, Jun 27 2017. 12 13 AM IST

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US Justice Department wants to take Microsoft to Supreme Court in offshore email case – OnMSFT (blog)

Posted: at 5:38 pm

Microsoft values privacy, even while facing the wrath of the Department of Justice. Recently, the DoJ has been pushing on the tech giant, claiming that the recent rulings in its favor are severely misinterpreting the law. Now, CNN reports that the Department of Justice will be approaching the Supreme Court about Microsofts refusal to provide private information from other jurisdictions.

The case that brought the legislative debate about originated when the federal government wanted information about a potential drug trafficking case. Law enforcement sought Microsoft out for private emails and information stored on its database servers in Ireland. The courts first found that Microsoft should hand over the information, but after appealing to the Second Circuit, it was reversed. After all, if Microsoft gave the U.S. government information stored in Ireland, what was stopping other governments from requesting U.S. information?

The Department of Justice didnt take too kindly to the ruling, now appealing to the Supreme Court for clarification. It believes that if information can be accessed domestically with the click of a computer mouse, then the information is fair game for the U.S. government.

Brad Smith countered the DoJ claiming that it seemed backward to continue the debate in courts. The DOJs position would put businesses in impossible conflict-of-law situations and hurt the security, jobs, and personal rights of Americans, he explained in Fridays blog post.

In less than one year, a new European data protection law will go into effect. Under that law called the General Data Protection Regulation it would be illegal for a company to bring customer data from Europe into the U.S. in response to a unilateral U.S. search warrant.

This isnt the first time Microsofts integrity was called into question regarding transnational information. An employee was criminally charged and the company fined for not complying with a request between the differing laws Brazil and the U.S. Smith believes that no matter who wins the case with the Supreme Court, that the new legislation is still a much needed addition.

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Union ballot over offshore catering pay – BBC News

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BBC News
Union ballot over offshore catering pay
BBC News
Offshore catering staff are being consulted on industrial action over pay. It follows a consultative ballot by the Unite union of members employed by companies represented by the Caterers Offshore Trade Association (Cota). They previously rejected an ...

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Taiwan welcomes investment in offshore wind power: premier – Nikkei Asian Review

Posted: at 5:38 pm

TAIPEI -- The Taiwan Strait will likely generate an annual 3 million kilowatts to 5 million kilowatts from wind power, Premier Lin Chuan said Monday, implying an upgrade to the previously targeted 3 million kilowatts in 2025, thanks to investment applications from foreign companies.

President Tsai Ing-wen's administration aims to shrink nuclear's share of the electricity supply from 14% in 2015 to zero by 2025. To support the phaseout, the government plans to quintuple renewable energy's share from 2015 levels to 20%.

Offshore wind's potential output exceeds 10 million kilowatts, Lin said, highlighting hopes of this renewable source of energy replacing the atom. Each nuclear plant can generate up to 2 million kilowatts, he said.

Danish giant Dong Energy and Australian infrastructure developer Macquarie are among the applicants for investments. Lin shared hopes that Japanese companies with advanced technologies in wind power will take part as well. Siemens of Germany and Japan's Hitachi are seen as candidates.

With Swancor and other equipment providers in Taiwan trailing Western rivals in technological capabilities, the authorities here are eager to import foreign know-how to establish Taiwan as an Asian hub of wind power generation.

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High seas adventures at the Hannibal Aquatic Center – Hannibal.net

Posted: at 5:37 pm

The high seas adventures were at the Hannibal Aquatic Center Saturday, June 24, as 19 boats participated in cardboard boat races.

The high seas adventures were at the Hannibal Aquatic Center Saturday, June 24, as 19 boats participated in cardboard boat races.

Youngsters enjoyed their time being skippers and first mates, navigating the boats they made through the water. Some of the boats were a little more seaworthy, and some of them sank right as the contestants got on board.

The cardboard boat races were sponsored by Hannibal Parks & Recreation.

The race came down to the wire, as the fastest boats competed in the last heat.

The winners were:

Fastest

First place: Prestan Schanbacher and Zane Lomax

Second place: Alex Arthaud and Patrick Arthaud

Third place: Jocelyn Clark and Andrew Clark

Best Dressed

First place: William Rolsen and Jordyn Schmelzle

Second place: Adyson Ryan-Davis and Chevelle Pope

Third place: Kael Viehmann and Gage Conrad

Titanic Award

First place: Jay Arnold and Calvin Biggs

Second place: Isaiah Fessenden and Hannah Fessenden

Third place: Terner Otten and Ben Schisler

Jenna McDonald, aquatics director at Hannibal Aquatics Center, reported a successful event and said the cardboard boat race will be tentatively scheduled for June 23 next year.

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Hampshire College: Identity-Based Housing – Accuracy in Academia

Posted: at 5:36 pm

June 26, 2017, Alex Nitzberg, Leave a comment

Combining identity politics, social justice doctrine and the concept of safe-spaces, Hampshire College allows students to self-segregate by living in Identity-Based Housing. The colleges website explains:

Residence Life and Housing facilitates the continuation of many identity-based housing communities started by students. These residential spaces give support to members of our community with social identities that have been historically marginalized in this country, and strive to counter systemic oppression. This arises from our commitment to fostering diverse, socially just, and inclusive communities.

We recognize that our societythrough its laws, institutional structures, and customshas privileged some social groups while systematically disadvantaging and disenfranchising others. Even as we struggle to end these practices, we recognize that day-to-day life for members of these disadvantaged groups can be hurtful and exhausting.

The websites explanation of identity-based housing also states:

Identity-based housing is an institutional structure designed to assist members of historically oppressed groups in supporting each other. It helps to create an added level of psychological comfort and safety for those who choose to live in those spaces, often providing the foundation for those students to be able to engage fully in the greater community.

Creating these safe spaces, in collaboration with centers on campus, will benefit the entire community. We must have the full engagement of all our community members, especially those whose experiences, ideas, and perspectives are different from those of the Colleges mainstream population. It is through these means that we, as a full community, are most likely to challenge assumptions, craft new solutions to problems, and perform to our highest ability.

The Permanent Identity-Based Mods listed include: LGBTQQIAAP, Queer, Women of Color, Students of Color and Asian Heritage.

Pan-Afrikan Diaspora, Trans Stability Mod and QPOC are designated as Not-Yet-Permanent Identity-Based Mods. Marginalized Gender Identities is categorized as On Hiatus for 2017-2018.

Under the guidelines for developing an identity-based mod, the second guideline explains: The group must be unified by a social identity (such as race, culture, gender, or sexual orientation). The third guideline says, The unifying social identity must currently experience or has historically experienced oppression within or outside the Hampshire community.

Hampshire College also offers Intentional Housing Communities which it explains, are living spaces in which the residents have chosen to come together around a particular area of interest that will contribute to and cultivate the campuss culture of learning. Some of those listed on the website include the Hampshire Basketball Mod, the Kosher Mod, the STEM Mod, the Mindfulness Mod, the Greenhouse Mod and the Middle Eastern Immersion Mod.

The intentional housing community called the Gender Justice Mod (formerly Womens Empowerment Mod), contains the following deluge of leftist lingo within part of its description: We understand our struggle against cissexist heteropatriarchy as part of a broader struggle against all systems of domination, includingbut not limited towhite supremacy, capitalism, imperialism, and ableism.

In 2015 AIA Executive Director Mal Kline documented some of the courses offered at Hampshire College.

Some of the upcoming Fall 2017 course offerings listed under the subject Critical Social Inquiry include:

White Supremacy and Appropriate Whiteness in the Age of Trump

Critical Ethnic Studies: From Settler Colonialism to Trumpism

Border Matters: Mexico and the United States

Feminist, Queer, and Trans Theories of Race

Feminisms Sciences

Autonomism, and Labor: Business Ethics for Radicals

Black Girlhood Studies

Queer Feelings: The Emotional and Affective Life of Gender, Sexuality, and Race

A course titled, A Philosophy of Tattoos and Tattoo Art is listed under the subject of Cognitive Science.

Hampshire Colleges course descriptions are available here.

Alex Nitzberg is a freelance conservative journalist and commentator and the host of The Alex Nitzberg Show podcast. Follow him on Facebook, Twitter and Instagram.

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Indiana Christian school at center of LGBT voucher debate … – goskagit.com

Posted: at 5:36 pm

BLOOMINGTON, Ind. The Lighthouse Christian Academy promises to provide an exemplary education, a caring atmosphere and service to God, but says in its admissions brochure that it reserves the right to deny admission to LGBT students because the Bible deems their lifestyle sinful.

As the Trump administration seeks to expand school choice nationwide, the academy was thrust into the national spotlight last month as part of a heated debate over whether schools that receive money from taxpayer-funded vouchers can discriminate against certain groups of students, such as LGBT children or students with disabilities.

Lighthouse officials say theyve never turned anyone away based on sexual orientation. But at a congressional hearing, Senate Democrats cited it as an example of a school that discriminates against LGBT students. A Lighthouse brochure says the Bible does not allow homosexual, bisexual or any form of sexual immorality and if a students home life violates biblical rules, the school can deny them admission or expel them.

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Pressed on the issue, Education Secretary Betsy DeVos, an ardent supporter of school choice, told the Senate committee that discrimination is wrong, but that it was up to Congress and the courts, not her department, to intervene.

Founded in the early 1990s by a tight-knit group of families who wanted an affordable Christian education for their children, the academy is now an academically successful K-12 school serving 300 children in the Bloomington area. About half receive vouchers to help pay an annual tuition that ranges from $4,500 to $6,000 depending on a students grade.

This year, Lighthouse received over $665,000 in state funds to enroll 152 students.

DeVos and the Trump administration are strong proponents of giving states a greater role in education. Earlier this year, the administration rescinded former President Barack Obamas guidance that instructed to schools to let students use school restrooms in accordance with the gender they identify with, not their sex at birth. The move sparked criticism from the civil rights community.

The administration is looking at taxpayer-funded vouchers as a way to expand school choice nationwide, but it has not yet come out with a specific plan on how to do it.

Indiana is one of 30 states that use public money for school choice programs, including vouchers, educational savings accounts and tax-credit scholarships. The District of Columbia has the countrys only federally funded voucher program. All told, some 450,000 students participate nationally.

In a study last year, Indiana University professor Suzanne Eckes found that none of the states with voucher programs prohibits discrimination against LGBT students.

Lighthouse defends its right to educate children according to its values, saying that Christians are state taxpayers, too, and should be allowed to fund institutions of their choice with their money.

Parents are free to choose which school best comports with their religious convictions, Brian Bailey, an attorney who is serving as the schools spokesman, said in a statement. For a real choice and thus real liberty to exist, the government may not impose its own orthodoxy and homogenize all schools to conform to politically correct attitudes and ideologies.

Former Lighthouse student Mary Wegener, 24, says some of her classmates at the school were gay and received love and care. Bailey confirmed that the school did admit some students who were tempted by same-sex intimacy, saying we teach our students to flee these sins.

Wegener sees both sides of the story, but says a religious school cannot function contrary to its core beliefs.

If they (Lighthouse) are going to be a Christian school, they cant conform to everything else, because then that would be a private school that knocked out the Christian name.

Carissa Dollar, 46, of Indianapolis, who has a transgender daughter, is unconvinced.

I have a problem with public funds going to a private institution who then make decisions that would be discriminatory to any group, Dollar said. Its wrong if an LGBT student, or even if someone in their family identifies on the LGBT spectrum, could be denied admission to the school.

Dick Komer, senior attorney with Institute for Justice, a libertarian public interest law firm, said that federal law has protections against discrimination on the basis of race, national identity, sex and religion, but they do not extend to LGBT individuals.

If the people who are grilling DeVos believe that sex includes sexual orientation and gender identity, then they should propose amendments to the statues that they have written and given her to enforce, Komer said. The Congress is supposed to write the law, the agency is supposed to administer what Congress has given them. And Congress hasnt given it to them.

Eckes, the Indiana University professor, said states must create protections to ensure that any benefit they create is available to all. She said that decades ago some private schools used their own interpretation of the Bible to exclude African-American students and federal protections were necessary to stop those practices.

If you accept public money in the form of a voucher then you shouldnt be able to discriminate whether its based on race, ethnicity, national origin, religion, disability or sexual orientation, Eckes said. If you agree to take that public money, then there are certain rules that you need to follow.

Lindsey Burke, director of education policy studies at the conservative Heritage Foundation, disagrees.

Racism was based on identity and skin color and had no reasonable basis, Burke said. This is about whether a student, a family is going to live out their communal beliefs of the school that they have chosen to attend. These are intentional communities that are built upon a moral code that they have decided on.

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Lily Eskelsen Garca, president of the National Education Association, the countrys largest teachers union, said the Trump administrations attempt to fund private schools takes away money from public schools, where discrimination is not allowed.

Every child, every blessed child has the legal, civil and the human right to attend their public school, but no one can say that about a private school, Eskelsen Garcia said. Why would you get public dollars to a school that discriminates against students?

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Family of Philando Castile reaches $3M settlement in police shooting case – ABC News

Posted: at 5:36 pm

The family of Philando Castile, who was shot and killed by officer Jeronimo Yanez of Minnesota's St. Anthony Police Department, has reached a nearly $3 million settlement with the city of St. Anthony Village, according to a statement from both parties.

The settlement follows the acquittal of Yanez on June 16 of second-degree manslaughter and two counts of intentional discharge of a firearm that endangers safety.

Castile was killed July 6, 2016, during a traffic stop, and his death, as well as the acquittal of Yanez, have drawn protests across the country.

The settlement over his death is the second major settlement to be awarded to police shooting victims' families in recent days.

The family of Michael Brown, a black teenager who was fatally shot by a white police officer in Ferguson, Missouri, settled its lawsuit against Ferguson for $1.5 million on June 23.

"Under the terms of the settlement, Valerie Castile, as trustee, will receive a payment in the amount of $2.995 million," the statement says. "The settlement will be paid through the city's coverage with the League of Minnesota Cities Insurance Trust."

The statement notes that no taxpayer money from St. Anthony Village will be used to fund the settlement and that the family intends to "deal with their loss through the important work of the Philando Castile Relief Foundation," a nonprofit created to help victims of gun violence.

New dashcam video, which was released last week, reopened old wounds for those who were outraged by his death.

Yanez, who is Latino, encountered Castile, 32, while investigating a broken taillight on his vehicle.

Diamond Reynolds, Castile's girlfriend, was in the car with him at the time of the shooting, along with her 4-year-old daughter.

Reynolds live-streamed the aftermath of the shooting on Facebook Live, helping make it a national news story.

The dashcam video shows Yanez saying, "OK. Don't reach for it," referring to a firearm Castile reported that he had.

"Don't pull it out," Yanez says, repeatedly, as he appears to draw his own weapon.

He fires multiple rounds into the car, and Reynolds can be heard screaming in the car.

The joint statement attempts to address the communal rift opened by Castile's shooting death and says that the city is working to "rebuild trust" between the police and those they serve.

"The important work of healing our community continues. The city of St. Anthony Village reaffirms its commitment to transforming its police department in partnership with the United States Department of Justice Office of Community Oriented Policing Services," the statement says. "Through the Collaborative Reform Initiative, the city and residents are working to improve trust between the police department and the communities it serves."

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Gardening in Microgravity: How Space Plants Are Adapting (Video) – Space.com

Posted: at 5:36 pm

A new NASA video explores the science of space gardening and what researchers are learning about plants in space.

In 2015, astronauts aboard the International Space Station ate the first produce ever grown in space. During Expedition 44, NASA astronauts Scott Kelly and Kjell Lindgren, as well as the Japan Aerospace Exploration Agency's Kimiya Yui, chomped down on red romaine lettuce that was grown in the station's Veggie plant growth system in August of that year.

It was a big moment, and a necessary step toward NASA's goal to travel to Mars someday. [Plants in Space: Photos by Gardening Astronauts]

As the new video from the agency's video series "Science at NASA"explains, the ability to grow both edible and nonedible plants in space is essential for deep-space travel and the establishment of dwellings. Plants provide both a food source and the ability to recycle air and water, Anna-Lisa Paul, a University of Florida professor who researches how plants grow in extreme environments, said in the video.

While it was a major step toward someday being able to grow gardens on Mars, the lettuce taste test was nowhere near the end of this endeavor. Scientists aboard the space station and here on Earth continue to test how plants adapt to harsh environments.

Paul and her colleague Robert Ferl, also at the University of Florida, first launched plants into space in 1999, on space shuttle Columbia, and have been studying plant growth in space ever since.

The roots of plants grown on tilted soil on Earth grow in a slanted direction, which scientists call "skewing," according to the video.

Through their research, Paul and Ferl discovered that gravity doesn't actually affect the direction in which roots grow, as Charles Darwin had previously hypothesized. Darwin believed that skewing was partially due to gravity's effect on the roots, but Paul and Ferl discovered that plants grown in microgravity exhibit the same behavior, meaning that roots don't need gravity to seek out necessary nutrients.

Growing in microgravity did, however, change the plants' genetic response, according to the video.

"When living organisms are faced with environmental change, their response almost always involves a change in genetic expression," Paul said in the video. "To cope, they switch on and off certain genes."

The genes that changed are associated with the cell walls of plants, according to the video, though Paul and Ferl aren't yet sure what purpose this serves. They plan to conduct experiments to study this effect as well as other ways plants adapt to microgravity, and scientists aboard the space station will also continue to study plant growth in an effort to help people survive on Mars and beyond.

Follow Kasandra Brabaw on Twitter @KassieBrabaw. Follow us @Spacedotcom, Facebook and Google+. Original article on Space.com.

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