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FRIDAY TICKER: OCTOBER 31TH 2014: - The re-election of President Dilma Rousseff on Sunday has important implications for Brazil's Baa2 sovereign rating, as well as for the credit quality of the country's banks, corporations and securitisations, says Moody's. The rating agency says the narrow margin of her victory underscores the challenges she faces as she looks to revive Brazil's lacklustre economic performance - Facebook has reported third quarter results, again showing strongest year-on-year growth in mobile, where daily active users (DAUS) rose by 39% to 703 million, while overall daily users rose 19% to 864 million DAUS - Francisco Partners, a global technology-focused private equity firm, today announced it has completed the acquisition of Vendavo, Inc., a leader in business-to-business (B2B) pricing solutions. David Mitchell, an operating partner of Francisco Partners, will join Vendavo as CEO and lead the company’s worldwide business strategy and operations. Incumbent CEO Neil Lustig will transition into an advisory role with Vendavo. Francisco Partners now has a controlling stake in the Silicon Valley company. The acquisition by Francisco Partners provides additional resources to bolster Vendavo’s aggressive growth strategy, enabling the company to expand sales and marketing while accelerating cloud development. Vendavo completed a record first half of 2014, with nearly 30-percent growth in bookings, and the release of two breakthrough solutions for price and sales effectiveness. Based in Mountain View, Calif., Vendavo provides revenue and price optimisation solutions for B2B mid-market and enterprise companies.Francisco Partners was advised by JMP Securities, and Vendavo was advised by William Blair. Financial terms of the transaction were not disclosed – The International Finance Corporation, or IFC, issued the four-year, triple-A rated bond only to Japanese retail investors, tapping into the growing interest in low-risk investments with a social or environmental focus. The World Bank, has sold several billion dollars in green bonds over the past six years, with proceeds going to help countries and firms cut greenhouse gas emissions and adapt to climate change. The latest offering, Inclusive Business bonds, would finance firms that work with or sell to the 4.5bn people in the world that make less than $8 a day. IFC said while most poor people do not spend a lot individually, as a whole they represent an estimated $5trn consumer market that firms could tap into - NAKA Mobile, a telecoms and technology specialist based in Switzerland, has claimed the industry’s first virtualised evolved packet core (vEPC). Utilising Cisco’s NFV services, NAKA claims it will transform its network architecture, expand beyond Switzerland, and provide its mobile Internet services to customers across the world - The Internet Society and Alcatel-Lucent have agreed to provide support and equipment for the development of the Bangkok Internet Exchange Point (BKNIX). The project will utilise the Internet Society’s Interconnection and Traffic Exchange (ITE) programme and is intended to deliver a stronger and more robust Internet infrastructure for South East Asia.

Revamped accounting rule to gradually affect US banks

Wednesday, 04 January 2012
Revamped accounting rule to gradually affect US banks Fitch Ratings says a new accounting rule change requiring banks to book losses on loans sooner will have a gradual affect on US bank income statements. In theory, the suggested change would give banks more time to replenish capital cushions by setting aside reserves as a result of projected loan losses, insulating investors. However, the ratings agency does not believe the proposed changes will have anymaterial  impact on the ratings of US banks. http://www.ftseglobalmarkets.com/

Fitch Ratings says a new accounting rule change requiring banks to book losses on loans sooner will have a gradual affect on US bank income statements. In theory, the suggested change would give banks more time to replenish capital cushions by setting aside reserves as a result of projected loan losses, insulating investors. However, the ratings agency does not believe the proposed changes will have anymaterial  impact on the ratings of US banks.

The United States’ Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB) agreed in late December 2011 on a draft proposal that would supersede banks' incurred loan loss approach with a speedier "expected loss" one. Under the model, banks will be required to book projected losses spanning the next 12 months instead of recording losses after they have actually occurred. A formal proposal is expected in 2012.

Ratings agency Fitch believes that if the rule implemented, it would bring greater clarity to bank financial statements as it is forward looking and recognition of exposure is certainly encouraged. Moreover, says Fitch, while changes in accounting for the financial industry coupled with regulatory reform heighten uncertainty, banks have been aggressive in responding earlier to reform suggestions as they have been afforded ample time to do so.



Meanwhile, the has FASB agreed to keep unchanged balance sheet offsetting rules, effectively preserving the single largest balance sheet difference between financial institutions filing under the IFRS framework and US GAAP. However, new common disclosure rules for both regimes provide the necessary information to make adjustments for comparability.

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