Tag: investment

France, Germany, Italy join China’s Infrastructure Investment Bank

France, Germany and Italy have confirmed they’ll join China’s new Asian Infrastructure Investment Bank (AIIB). Participation in the rival to the US-led World Bank is seen as a setback for the Obama administration.

The three European countries on Tuesday confirmed in a statement they intend “to become founding members of the Asian Infrastructure Investment Bank,” according to AFP.

“We want to bring our long experience… to help the bank build a solid reputation,” said German Finance Minister Wolfgang Schaeuble, speaking also for Italy and France at a joint press conference with Chinese Deputy-Premier Ma Kai on Tuesday in Berlin. He added that the three countries want to make a contribution to the positive development of the Asian economy, in which German companies were actively taking part.

Chinese Foreign Ministry spokesman Hong Lei welcomed the decision, saying “the AIIB is an open and inclusive multilateral investment institution.”

“Participation by countries outside the region will intensify the extensive representatives of the AIIB,” he added.

The decision of the three European countries comes after Britain last week became the first Western country to agree to become a founding member of the AIIB, FT reports. The UK government said the decision was in the country’s national interest, but it got a negative reaction from the United States.

The new China-led bank is expected to challenge the Washington-based World Bank, so the US is increasing pressure on its allies not to join the institution. The US’ concern is that the new investment bank might not have high standards of governance and environmental and social safeguards.

The new bank is expected to challenge the Western dominance of the US-led World Bank and IMF in global infrastructure projects, which experts believe will create healthy competition.

South Korea, Switzerland and Luxembourg were also considering joining the Asian Infrastructure Investment Bank, the Financial Times reported.

Australian Prime Minister Tony Abbott said he would make a final decision on AIIB membership soon. South Korea and other countries are in discussions with China over possible participation.

China’s main regional rival Japan said earlier this month that Asian countries including Japan have until March 31 to decide on becoming AIIB founding members.

“They told us they are considering. Whether Japan will join, we do not know. It is Japan’s own decision,” Chinese Finance Minister Lou Jiwei said, according to the Xinhua news agency.

Nearly 30 countries have confirmed their participation in the AIIB, which is aimed at helping finance infrastructure projects across Asia and is expected to come into being this year.

The AIIB was formally launched by Chinese President Xi Jinping in 2014, and is expected to become a tool of a broader Chinese push for growing international power and economic significance.

SA issues BRICS visas

Business and diplomatic travellers from South Africa’s BRICS partners will receive port of entry visas into the country, Home Affairs Minister Malusi Gigaba said on Thursday.

“I have approved the issuance of port of entry visas to BRICS business executives for up to 10 years, with each visit not to exceed 30 days,” he told the Cape Town Press Club.

The visas had been in effect since December 23 last year.

“This applies to diplomatic, official/service, and ordinary passport holders.”

Gigaba said the relevant individuals would receive a long-term visa allowing them multiple entry into the country for the duration of the passport’s validity, not exceeding 10 years.

The department would continue to meet a turnaround time of five days for short-term business visas.

It had consulted extensively with the Brazil, Russia, India, China, and South Africa (BRICS) business council and the trade and industry department.

Gigaba said the four countries presented an “important investment potential”. Together with South Africa, they comprised 40 percent of the world’s population.

The department had not demanded reciprocal arrangements from BRICS partners.

Gigaba smiled when asked if his announcement would anger countries that had long-established trading relationships with South Africa.

“No, every good thing must start somewhere,” he said.

These new regulations had been introduced to counter a “complete abuse” of the local immigration system, which had seen people apply for jobs while on a tourist visa to avoid police clearance and issues with financial statements.

Gigaba said he would soon announce a panel of experts to conduct a complete review of the system used to issue visas.

Is ‘flipping’ property a good investment?

For as little as US$100 a company called F4P tells investors they could get a share of the profits made from buying and selling well-priced properties in the United States, where transfer costs are low and there’s no short supply of distressed sellers.

Empoyees  of F4P have ‘guarantees’ that investments pay at least 50 percent in six months.

Sounds too good to be true?

An attendee at a F4P presentation recently, says it left him feeling uncomfortable.

The presentation deals with how one can make money by referring other people to the scheme. There are a lot of commissions being paid to several parties on new money entering the scheme. The performance of the investment would have to be really outstanding in order to give the investor a return, plus pay commissions to all the hangers-on.

“They show images of expensive cars and big houses, and ask, ‘Isn’t this the kind of lifestyle you would like to have?’, but are vague on the details of the scheme. I asked how it had performed as a whole, because your return is from all the properties purchased,” he said.

With high returns go come high risk.

Deposits are being taken by unqualified financial advisers that flaunt a website with no telephone number.

An authority on investing in property, says a legitimate pooled investment would never include a referral commission structure that rewards individual investors for introducing new investors, or a network that offers lifestyle benefits to members for growing a network, as F4P does.

Apparently, the company restores and sells houses fast in a market where eager buyers are also a dime a dozen. This quick buying and selling of property for profit is called “flipping” in the real estate business.

To share in the profits, you pay a once-off joining fee of $249, and $50 a year thereafter, but to sweeten the deal, the company that is offering it, Flipping4Profit (F4P), will reward you – in dollars – for every person you get to become a member of the scheme.

F4P is actively recruiting members in South Africa, but experts in property and financial planning have serious concerns.

 

 

First Data in $3.5B private investment led by KKR

First Data announced on Thursday that its parent has received commitments to purchase about $3.5 billion of equity in a private placement, led by KKR. The proceeds will be used to repay portions of the company’s debt.

The private placement includes $1.5 billion from existing investors and $2 billion from new investors, including pension funds, mutual funds, asset managers, and individuals. KKR provided roughly $1.2 billion, First Data said.

KKR’s balance sheet will have approximately $1 billion invested in First Data’s equity.

“We have taken full advantage of the last 12 months to strengthen our company through a total focus on serving our clients and bringing them new innovations that help them grow their business,” Frank Bisignano, chairman and chief executive officer of First Data, said in a statement. “The new investment will unlock $375 million per year to help us accelerate our transformation.”