Month: May 2017

Business, Economy

Running of the Bulls?

Running of the Bulls?

MosaicaFX makes a concerted effort to provide our clients the most accurate information to assist them in making the right decisions for their business.  Lee Iacocca is attributed with saying, “…there are no small decisions in business, just small business decisions.” 

For that reason we know that sometimes it is important for you to be provided a wide swath of information that may not be highly detailed.  If there is a fire in your building…you just need to know where it is, not necessarily how hot it is burning.  With that in mind, we thought we would touch on a few hot currency updates that you may need to know.

Will the U.S. Dollar Sink or Swim?

The Greenback appears to be treading water right now waiting to see what action the Fed signals it is considering in the near future.  The Dollar has steadied since hitting six-months lows last week and it appears that we can expect the USD to not demonstrate any abrupt movements (up or down) until or unless (a) the Fed’s meeting minutes incite more trepidation and (b) the current Administration is pulled into more controversy.

Don’t get Moody about China…

Global markets seemed to shrug off a move by Moody’s Investors Service to downgrade China’s sovereign credit rating by a notch.  China’s response was measured and low-key to the Moody’s bearish move on their ratings. Many currency traders slowed their interest in the Yuan until the global markets get a firmer grip on what this Moody move will actually mean in the short term.

Euro Cashes Out Over the Last Few Days

It appears that the Euro has eased below its six month highs against the Greenback due to traders pulling profits in anticipation of the minutes being released from the last Fed meeting.  Now that France will evidently be solidly behind a European single currency for the foreseeable future, it is expected that the Euro will continue to trend in a positive direction.  At this point the Euro seems to be on stable footing.

Stirring the Sterling!

The Sterling seemed to stabilize a bit as the major currencies waited to find out what the Fed’s notes foretold from their meeting earlier in May.  However, the Pound ran into some headwinds since sailing to some eight month peaks over the past week.  Internal polls in the UK also show that frontrunner Theresa May’s lead is shrinking ahead of Britain’s general election on June 8th.  The long term is expected to remain favorable for buyers of the pound with the Sterling still far below the pre-Brexit referendum levels of around 1.47….yet far above the 31-year lows of 1.15 of last October.

Loonie for the Loonie?

The Loonie has charged back nearly 2.5% from a 14-month cratered low touched in early May of near 1.38.  This is due to both a “lift” effect from the weakening Greenback and due to bullish oil prices of late.  This week OPEC is expected to extend their production cuts which will only help to bolster shale oil prices and Canadian deep well oil prices as well.   This effect can only help to continue the Loonie’s rebound.

The Bottom Line…

MosaicaFX expects the Dollar to remain fairly constant at least until the next Fed meeting on June 14th when a decision will be made on whether to raise interest rates (unless of course more political intrigue occurs).  The Fed Chair has expressed some optimism in the current U.S. economic state of affairs and conventional wisdom portends that the most unsettling news to affect the Greenback is based on political and not economic or financial issues.

Therefore, we would strongly advise that you partner with a currency management company that will provide ongoing and accurate overviews on the volatile currency markets.  It is only through experienced input will you be able to protect your profits and develop sound currency strategies moving forward.

Make an appointment with one of our Executive Account Managers today so we can explain our latest hedging and option strategies to you.  We are accepting a limited number of new clients at this time and would like to explore this opportunity with you.

Business, Economy

The Greenback “Yo-Yo” Surges Upwards!

The Greenback “Yo-Yo” Surges Upwards!

At MosaicaFX, we pride ourselves on providing you the most up-to-date information we can when it comes to currency exchange rates and business management recommendations.

As we have mentioned in previous articles, there are literally hundreds of data portals that must be reviewed each week so we can stay abreast of the hourly fluctuations today’s markets must contend with.

Having said that, even our experienced Staff and Executive Account Managers have been amazed at the “yo-yo,” like actions that the political gyrations in the nation’s capital have had on the Greenback over the last week or two.  It appears that despite the latest actual currency trades taking place in the markets…it is the psychological affect regarding the new U.S. administration that is driving the dollar valuation.

Onward and UPWARD!

Multiple traders said that the latest trigger for the move higher in the dollar, as well as the Dow Jones Industrial average was the reemergence of former FBI Director James Comey saying President Trump never asked him to end any probe, as reported on CNBC.

As a result of this latest breaking news the Greenback suddenly surged against the British Pound and other currencies Thursday.  The month old CSPAN video was interpreted as former FBI Director Comey saying he was never pressured to end an FBI probe of former National Security Advisor Flynn.

While the video seemed to reflect Comey answering a question specific to the U.S. Attorney General and/or “Senior Officials at the Department of Justice,” and not necessarily President Donald Trump… it nevertheless was seen as on obvious opportunity for Comey to assert that “someone else” may have done so.  His failure to do so has been seen as positive support for Trump.

Again, the main take away is that if the question asked was, “….did anyone every pressure you to end any probe?”  An answer of “no,” speaks volumes in general terms.  Thus, it should be obvious that Comey’s statement taken at face value should indicate that no earth-shattering admission is in the wings regarding this issue and how it reflects upon the President.

The Bottom Line…

Multiple traders said this latest development was definitely the motivation for the U.S. dollar to surge upward.  Whether such developments will continue in the days to follow is pure speculation.

It is for this reason that again, MosaicaFX believes that it is more important than ever for currency traders or international businesses to partner with currency management companies they can trust.

If you are not able to process the immense amounts of financial data being published in this day and age, then it is imperative that you find someone who can.  Reach out to one of our Executive Account Managers and let’s discuss your needs and how we may be able to support them.

Business, Ecommerce

Newton’s Third Law, Reactive Advertising…

Newton’s Third Law

Reactive Advertising…

Frank Maggio, founder of React LLC, has been studying advertising ineffectiveness since before leaving Procter & Gamble, the world’s leading advertiser, in the late 1980’s.  Since then, Frank has invested (and reinvested) over $20 million of his own capital, to patent, build, test, and deploy a groundbreaking solution to counter that ineffectiveness.  That solution, “Reactive Advertising,” promises to “change advertising for good.”

Mass media advertising is one of the world’s largest industries – approaching $1 trillion annually.  And yet, it’s also one of the most wasteful, with some estimating that over $350 BILLION a year is spent on ads that are ineffective, undelivered, avoided, or ignored.  To place that in perspective – if the “Wasted Advertising Industry” were a country’s GDP, it would rank in the top 35 nations in the world.

Newton’s Third Law of Motion (loosely) states that a single isolated force doesn’t exist. When one action is forced upon a second body, that body simultaneously exerts a force in equal magnitude and in the opposite direction on the first body.  In short, every action creates a reaction.  That is the basis of Maggio’s reactive advertising concepts.

ADpathy…

According to Maggio, “The truth is obvious – ads fail to work because they’re delivered in a disrespectful way, which interrupts people while they’re doing something else.”  The net result is a growing indifference to advertising; Maggio has coined the phrase “ADpathy,” to describe the attitude most people have towards advertising today.

The problem is further exacerbated by a relatively new behavioral phenomenon, the “impulse to multi-task,” enabled by smart devices that are now in the hands of over 90% of people, whenever advertising tries to break through.  Maggio has worked for over twenty years to develop a solution to the growing ineffectiveness of mass market advertising.

At the heart of the solution is a simple truth that most industry insiders fail to acknowledge.  Instead of relying on technology to create clever new ways of targeting, tracking and “ambushing” people with more effective advertising, Maggio believes the current main-stream technologies only contribute to increasing ineffectiveness.

The solution, therefore, is straightforward – advertising must create an experience that is at least as valuable and entertaining, as the experiences people turn to, when advertising interrupts them.

 

Reactive Advertising!

Reactive Advertising does precisely that – the patented process “gamifies” ads that bear the “react” logo, and allows anybody with a smart phone or computer, to win points, rewards, and prizes, for proving they’ve paid attention.

Once the “React” app is downloaded into tens of millions of smart phones, the entire marketing world is opened up to reactive experiences.  Product packaging, email, direct mail, and even retail displays and mobile payments can become “reactive.”

Maggio goes on to state, “… a reactive world is a world that adds excitement, fun, and rewards to the process of advertising and shopping.  By using people’s favorite devices – smart phones – consumers can uncover positive experiences and surprises, hiding in plain sight.  It’s a win-win scenario, for consumers and advertisers alike.”

Frank is quick to add that the reactive process “… builds much needed respect between advertisers and people, and in fact, creates a symbiosis or rather feedback loop, that let’s brands know how people feel about their ads, and products.”

The Bottom Line…

MosaicaFX constantly works to bring new and innovative concepts and resources to our clients regarding foreign currency exchange, business management and revenue stream development.  Occasionally, we like to step outside the box and introduce our partners to new and innovative technologies and/or companies that are legitimate “game-changers,” in their field.

React LLC, is one of those game changers.  In the next several years conventional wisdom suggests that advertisers and marketing companies will either be a part of this cutting-edge technology and new plan of attack towards advertising…or they will continue to float the same, tired, old approach to advertising and marketing.  As MosaicaFX believes that when new technologies become available in any industry, if their outcomes can be quantified… they should be considered.  To learn more about React LLC, visit www.React.net.

To learn more about many of our new and innovative currency management and hedging concepts set an appointment with a MosaicaFX Executive Account Manager and let us explain how we can support your needs and protect your profits now and in the future!

 

 

 

 

Business, Economy, Uncategorized

Psyops & the Greenback…

Psyops & the Greenback…

As we have mentioned numerous times over the last several months, the currency and stock markets seem to be more volatile and sensitive to the psychological effects of the current political unrest across all branches of the U.S. government.

That’s not to say that there are not some very perplexing stories (or at least headlines) animating out of the District of Columbia.  It seems that every day there is another “leak” dripping from the Executive Branch or perhaps another example of a Machiavellian plot in the Congress to embarrass an opposition party member…or even perhaps a colleague. 

In short, the U.S. dollar is suffering, the Dow Jones is slipping and investors are getting nervous feet due to the ongoing uncertainty of when this “chain letter” of bad news is going to end.  A well known international investor once opined, “…the markets imagination is capable of far worse machinations than what reality can rain upon it.”

The Infamous Pogo-Stick Chart…

Stocks across the major markets and the U.S. dollar sold off while bond yields fell on Wednesday of this week as investors fled risky assets amid the ongoing political uncertainty.  Much of this uncertainty is based on President Trump’s ability to deliver on his tax and banking reforms and infrastructure spending.

When you add to those reports that the President may have made questionable requests of recently fired FBI Director James Comey to end a probe into the administrations former National Security Advisor… the market foundations rumble even more.

U.S. stock market declines have continued as the week drew to an end.  The Dow Jones Industrial fell 372 points and the S&P 500 suffered their worst percentage drops since September 9th.

Additionally, the CBOE Volatility Index, the most widely followed barometer of expected near-term stock market volatility, ended above the 15 level in its highest close since April 13th.  In short, the U.S. dollar index has now erased all of its post-election gains.

…Is More Akin to a Yo-Yo Graph

Optimism over pro-growth economic policies Trump would implement helped drive a sharp rally in U.S. stocks after the November 8th U.S. election.  Even with this past week’s declines, the S&P 500 stock index is still up 10.2 percent since last November’s U.S. elections.

Chief Market Strategist at Newbridge Securities in New York, Donald Selkin has stated, “…The (equity) bull market is not over by any means, but between the political stuff and the fact that the next earnings season is three months away, (could mean) there’s going to be a lack of motivation.”

To that point, the Greenback index, which tracks the U.S. currency against six peers and had scaled a 14-year peak of 103.82 on January 3rd, fell 0.6 percent to its lowest level since November 9th…surrendering all of its “Trump Bump,” gains.  The dollar also fell by nearly 2 percent against the yen.

What Does the Future Hold?

There are literally hundreds of currency or economic reports and surveys available for review each week in the United States.  This voluminous amount of financial data is almost impossible to collate quickly enough to ascertain the correct currency management strategies necessary for the individual foreign exchange investor to protect his profits.

MosaicaFX is the partner international business needs to help assure their profits are protected by using the latest state-of-the-art hedging strategies and a highly personal approach to supporting your currency needs.  At MosaicaFX…your goals are our goals.  Your success is our success.  Give us a chance to prove that to you by scheduling an exploratory conference today with one of our Executive Account Managers.

 

Business, Ecommerce

Amazon Cash… (Sequi)

Amazon Cash…

(Sequi)

Some time ago we outlined a new service that Amazon was launching that was targeted towards those who wished to shop on Amazon but did not have a “bank card.”  We thought we would provide an update on how that program is proceeding.

The concept was based on consumers being able to add “cash” directly to their Amazon.com balance by having a barcode scanned at a participating retailer so that cash can be immediately applied to the individual’s online Amazon account.

The service will support adding any amount between $15.00 and $500.00 in a single transaction.  The entire program is based on the belief that many in the general population “under-bank,” regarding the management of their personal funds.  It is believed that an entire market-population works off of cash payments or by choice, do not have checking or saving accounts.  Yet these consumers would still choose to make e-commerce purchases if given the chance.

Brick & Mortar Retailer Portals

This untapped segment of the consumer population has largely been ignored by the e-commerce industry.  It has previously been simple logistics that created a barrier between these consumers and the digital marketplace.  Without a bank card, there was no way to “tie” online transactions electronically to a reliable payment structure from the customer.  Amazon Cash is the first wide-scale attempt to breach that barrier.

During the initial rollout of this new program the following retailers are Amazon Cash Portals that the consumer can visit to fund their Amazon.com account;

  • CVS Pharmacy
  • Speedway
  • Sheetz
  • Kum & Go
  • D&W Fresh Market
  • Family Fare Supermarkets
  • VG’s Grocery

While other stores are expected to be added as the program grows, it is important to note that the majority of the funding portals are retail chains that cater to the inner city for the most part.  As the program expands, it is expected to make its way into the more rural markets as well.

27%…and growing

A 2015 report from the FDIC said that at least 27% of consumers are made up of “underbanked,” or “unbanked,” shoppers.  These are people who get paid in cash, don’t have a bank account, debit card or credit card.  Subsequent reports and studies seem to show a trend expanding that number as undocumented immigration has continued to climb and these consumers reflect much of that purchasing paradigm.

While these shoppers have money to spend online at times, there hasn’t been an easy way to do so.  Until the launch of Amazon Cash, they would have to buy an Amazon Gift Card in a designated amount or add cash to prepaid payment cards, to be used at checkout.

Even more broadly, the new Amazon Cash program may appeal to anyone who just wants to deposit some cash in their Amazon.com account without hassle.  Additionally, with all of the concerns regarding the online “hacking” of accounts, Amazon Cash may enhance consumer comfort as it pertains to their digital security as well.

Security Appeal…

Since the launch of Amazon Cash, some interesting analytical data has accumulated.  It appears that many people who are using Amazon Cash do have bank accounts and credit/debit cards.  Since there are no fees associated with the program, it is a low-risk and zero cost way of making online purchases.

Due to the almost daily concerns associated with criminals hacking into a e-commerce account and mining bank account numbers, social security numbers and credit/debit card account numbers, to basically have a cash account that only places at risk the funds in it at any given moment is very reassuring to many digital shoppers.

Since the funds are available instantly once they have been loaded onto the shopper’s bar-coded account, there is very little hassle associated with this program.  The customer can present the barcode for scanning on their Smartphone or they can print out the barcode on a piece of paper from their computer and bring it with them to the retailer who will take their cash payment.

The Bottom Line…

MosaicaFX would recommend to our clients who are digital marketplace Sellers that they explore the many products that may appeal to the consumer demographic that reflects minimal traditional banking shoppers and/or e-commerce consumers who are cognizant of digital security issues.  These customers represent an untapped market potential that could expand revenue lines and increase profits.

Take a moment to schedule a call with one of our MosaicaFX Account Managers to discuss how you can protect your profits and expand your market base under this new Amazon Cash program.  We are confident you will benefit from such a discussion today.

Uncategorized

Black Gold & Cyber Attacks…

Black Gold & Cyber Attacks…

Stocks and currencies linked to commodities like crude oil trended upwards on Monday of this week after crude oil prices got a lift upon the news that major crude producers such as Saudi Arabia and Russia indicated they would extend current oil supply cuts into 2018.

Publicly traded companies that work in the cyber-security industry also saw their shares rise, after the global “hack” that locked down hundreds of thousands of computers across 150+ countries this past weekend.

Once again the markets prove that they are ripe for speculation based on “headlines,” rather than actual substantive outcomes.  The “new-normal,” is for the markets to drive the intensity of the news rather than the other way around.  Historically, a new article would be reported and as the veracity of the story was verified and expounded on….the markets would react as impacted by the subject matter.  That no longer appears to be the case.

OPEC’s Texas Tea

An example of the aforementioned is the “….current jawboning from OPEC,” as Michael O’Rourke, Chief Market Strategist at Jones Trading in Greenwich, Connecticut explains it.  It is his view that, “…in the end it’s going to prove to be noise….so the commodity (and associated stock) rally is probably a little much.  O’Rourke went on to say, “…But the market is reacting to the headlines.”

The Organization of the Petroleum Exporting Countries (OPEC) meets in Vienna on May 25th to consider extending reduced oil production quotas for the member countries.  Based on what Saudi Arabia and Russia has decided, U.S. crude rose 1.96% to $48.78 per barrel and Brent was last at $51.76…up 1.81% on the day.

The headlines originating from the energy sector this week generated this bullish drive of black gold associated values, although the real news for energy sector valuations will not be made until the upcoming OPEC meeting.  Hence, this may be another example of pre-news headlines driving market fluctuations…. that then become the real story.

Hacky-Sacked!

This past weekend the world was again taken hostage by a global “ransomware” cyber-attack that disrupted factories, hospitals, retailers, schools and government agencies which spurred investors on Monday to buy stocks set to benefit from higher cyber-security spending by affected firms and government agencies.

An exchange-traded fund of cyber security shares across the globe hit a near two-year high and closed up 3.2% at $30.69.  U.S. Cyber stocks jumped as the largest advancing sector on Wall Street with Cisco Systems Inc. leading the charge on the S&P 500, which ultimately hit a record intraday and closing high.

Rising 85.33 points (0.41%) to 20,981.94 the Dow Jones Industrial Average also exceeded expected gains.  It was followed by the S&P 500 which gained 11.42 points (0.48%) to 2,402.32 and the Nasdaq Composite added 28.44 points (0.46%) to 6,149.67.  In short, due to the largely low impact “hack” that was launched by as yet unknown culprits…the net effect of this potential global hack….was that it was “sacked,” by counter cyber-security experts.

Headlines are the Headlines…

It appears that the currency and commodity markets are now more vulnerable to headlines than they are to actual outcomes from the stories regarding the headlines.  As an example, the currencies of resource-linked economies got a boost from the jump in oil prices…even though no appreciable difference existed from one minute to the next regarding oil production.

It would be an over-simplification to say that if you are reliant on foreign currency exchange rates for your business…simply watch the headlines of associated stories from countries and organizations to guide your currency management model.  On the contrary, once the headlines have been posted…you are reacting like everyone else is to that news.

It is for that reason you need currency management partners who can help to protect your profits and provide you hedging strategies you can count on to secure your business efforts moving forward.  At MosaicaFX we pride ourselves on staying abreast of the latest business and financial trends being visited upon the market.  Reach out to us today to find out how we will work to secure your profits today and tomorrow!

Uncategorized

Free Shipping Ain’t Free….

Free Shipping Ain’t Free….

As we pointed out in an earlier article where we discussed the effects of Wal-mart making a much more aggressive “push,” into the e-commerce marketplace, their titan competitor Amazon would be forced to respond in kind.

Consumers in the digital retail vertical…or for that matter, consumers in general are much savvier than in the past.  With wages growing at a generally slower pace than they have over the last decade, competition for their discretionary income is heating up.

In short, if a single retail behemoth offers reduced shipping rates…the other major players in the game have no choice but to follow suit.  Who are the winners and losers in such a “Game of Thrones?”  Let’s try and figure that out.

Winners can be Choosers!

Amazon used to require a minimum purchase amount of $35.00 for non-Prime members to qualify for free shipping.  Then Wal-mart introduced its own membership program called Shipping Pass which offered free two-day shipping for a fee of only $49.00 a year.  It is precisely for this reason that Amazon has now lowered its free shipping threshold by $10.00 to only $25.00!

While it is true that consumers may still gravitate towards Wal-mart’s shipping deal because of the two-day advantage for delivery… it is also true that Amazon cannot lower its free shipping threshold too much farther without it running into trouble convincing shoppers that Prime membership may not be worth the money.

Obviously, digital marketplace consumers will benefit from this latest “shipping war,” between the major retailers.  While Amazon and Wal-mart are apparently locked in a logistics wrestling match, other retailers are climbing into the ring as well.  As an example, Target has launched a pilot program where it is testing next-day delivery for certain home essentials.  Additionally, Wal-mart has free shipping for some items not included in its new shipping program.

At this point, it is correct to note that virtually every large retailer in the United States has free shipping available now in some capacity for their customers.  As free shipping is a major factor in online purchasing decisions, a new study by Internet Retailer and Bizrate Insights found that it may be the most important decision an e-commerce shopper responds to.

Someone has to pay…

There is an old business adage that goes, “…nothing is truly free as the burden of that cost is not a figment of one’s imagination.”  Consumers are not usually conscious of the costs associated with free shipping.  While some shoppers may think the shipping is covered in the “outrageous” margins that must exist in the retail price they are paying…the truth is that everyone in the logistics chain pays for free shipping.

If you are an Amazon (Wal-mart, Target or other large retail) Seller who either provides product to these retailers or you are a Seller who’s own product is listed on their e-commerce marketplaces…you will eventually be required to support the free shipping of your product.

It is just a matter of time for you to receive a notification instructing you to provide some type of shipping support in the form of invoice discounts or direct product discounting so these digital marketplace retailers can continue to support the free shipping wars they are waging.

The Bottom Line – Free Shipping Ain’t Free…

It is imperative that you begin including another line item in your cost analysis as a Seller for the digital marketplace you currently target.  You need to extrapolate what percentage of cost you must add into your Seller’s price for your products to offset the free shipping charges you will eventually be asked to support.

For some Seller’s, you are already feeling that pinch in the digital marketplace. In many cases, it may be too late for you to adjust your margins to offset those charges. As your margins are being squeezed (again) due to the free “shipping wars,” it is imperative that you protect your profits where you can.  It is for this reason that partnering with a company like MosaicaFX to help manage your foreign currency and protect those profits is paramount to your continued success.

Set an appointment today to with a MosaicaFX Account Manager to hear our strategies to help protect your profits.

 

Business

The Top Ten List of Transformational Companies…

The Top Ten List of

Transformational Companies…

The newest trend in corporate “self-identity labeling” is suggesting that a company is performing some type of transformational advancement in both its corporate structure as well as its community of purpose.  Where companies used to call themselves “innovative,” or “forward-thinking,” that is not enough in this day and age.

However, when you delve more deeply into whether those organizations are truly redefining what they are and how they do it, documentable stories of successful “transformation,” are exceptionally rare.   In fact, a recent study of S&P 500 and Global 500 firms found that those leading the most successful transformations share uniquely common characteristics and strategies.

How do we define “successful transformation?”  A company that creates new offerings and business models that result in aggressive growth into new market verticals meets the definition of successfully developing a transformative model for their company.  Most will not be surprised by this list.

Top 10 Rated

  1. Amazon Jeff Bezos CEO
  2. Netflix Reed Hastings  CEO
  3. Priceline Jeff Boyd/ Glen Fogel  CEO
  4. Apple Steve Jobs/ Tim Cook  CEO
  5. Aetna Mark Bertolini  CEO
  6. Adobe Shantanu Narayen  CEO
  7. DaVita Kent Thiry  CEO
  8. Microsoft Satya Nadella
  9. Danone Emmanuel Faber  CEO
  10. ThyssenKrupp Heinrich Hiesinger  CEO

Measurable Metrics

A total of fifty-seven (57) companies were identified globally that had made substantial progress toward such marked transformations.  The list was then narrowed down to a list of eighteen (18) finalists using the following three sets of metrics:

  • New Growth. How successful has the company been at creating new products, services and/or business models?  The gauge for assessing this level of success was the based on the percent of revenue outside the core that can be attributed to new growth.
  • Core Repositioning. How effectively has the company adapted its legacy business to change and environmental disruption, allowing it to adapt to these conditions?
  • Financial Performance. How have the firm’s growth, profits and stock performance compared to a relevant benchmark (such as NASDAQ for a tech company…or the DAX Index for a German firm) during this transformation period?

Based on the above criteria, the aforementioned list of the top ten (10) finalists were able to be compiled.  As we stated before, the list of finalists may not hold many surprises for experienced global business analysts.  However, no doubt a few surprise entries did make the list.

Insider Outsiders…

One of the most interesting aspects of the Top Ten List was just how many of the companies are headed by visionary founders with no prior experience in their industry.  As an example, Jeff Bezos was from the finance industry while Reed Hastings came from software development.

It appears that not having a predetermined way of launching a new entity can be an asset when it comes to reinventing retailing as an example.  It may be that this “outsider’s “perspective helped to fuel tremendous waves of growth for these new ventures.

Make no mistake that these “insider outsider’s” have substantial relevant experience in general business backgrounds.  They also generally have been highly successful in these other indigenous ventures.  It is only though when they move outside their comfort zones that they are able to truly drive these new initiatives.

It is also true that many of these management leaders worked their way up the corporate ladder from positions and departments that rarely incubated CEO types.  That makes their rise to these flagship titles all the more impressive.  It is something akin in many instances of the “bat-boy,” rising to successfully manage a World Series team.

The Bottom Line…

There are three basic lessons that can be exploited from this data (and probably many more).  First, don’t sell yourself short.  It is not where you came from but how you got to where you are now.  Second, don’t write off an opportunity Chaired by an executive who may not be the traditional choice for such a position.  Third, innovation and inventiveness come from people who have never seen a problem resolved in the traditional sense before.  They have no boundaries or pre-conceived barriers while looking at a problem.

It is this out-of-the-box thinking that MosaicaFX brings to our efforts to solve problems for our clients.  We think you will find that our approach to protecting your profits and supporting your ventures is not only unique but innovate as well.  Allow us the opportunity to explore these options with you today.

“Opportunity is missed by most people because it is dressed in overalls and looks like work.”  Thomas A. Edison

 

Please Note: Much of the data provided in the above article was derived from the work of Scott Anthony and Evan I. Schwartz of the Harvard Business Review

 

Business

Mosaica Partners with Western Union

“Old School” Customer Service Meets 21st Century E-commerce

You would have to search long and hard to find a company that has more practical experience regarding international financial transactions, currency movement and efficient wire payment services than Western Union.  They were on the frontier of currency movement while most foreign exchange account managers were still in diapers.

That is why MosaicaFX is honored to be working with Western Union as one of their Preferred Partners in the global foreign currency industry.  To be sure, many foreign currency exchange management companies would love to partner with Western Union (WU).  However, just as we at MosaicaFX are very selective on whom we will partner with….the same can be said for Western Union.

This new relationship will benefit our MosaicaFX clients on many levels.  If you are a MosiacaFX client, you will still benefit from our world-class customer service and above reproach foreign currency experience in helping you identify and formulate strategies to protect your profits originating from global markets.  However, with our preferred partnership status now with Western Union, we will have even more tools and options available to support your global business needs

Who Hasn’t Heard of Western Union?

A group of businessmen from Rochester New York organized the New York & Mississippi Valley Printing & Telegraph company in 1851.  In 1856, they officially changed the name of their company to Western Union.  In 1861, Western Union built the first transcontinental telegraph line and the rest is pretty much history.

From the 1960’s forward, WU began handling the nation’s telegrams, foreign and domestic money orders and millions of international telegrams.  As analog communication eventually turned into digital and microwave based communications…Western Union continued to grow its sphere of influence.

Today, Western Union Business Solutions is considered one of the fastest growing, most reliable and innovative foreign market (currency) trading entities available.  As Western Union has continued to expand its capabilities in the foreign exchange markets, they have made a concerted effort to locate and partner with companies that reflect these same capabilities.

Western Union + MosaicaFX = $$$

What does this new partnership mean to a MosaicaFX client?  The short answer is that we are now able to bring even more assets to bear to support our client’s business efforts.  By partnering with WU, new options are available to many traders and business clients who rely on the foreign exchange markets that didn’t exist before.  Some of those are listed below:

  • Next Day Payment Capabilities
  • Direct Assignment of Payments to Vendors
  • Pre-consulting Account Agents to Provide Options and Business Payment Models

As an example, next day payment capabilities can help your company more effectively manage cash flow and direct payments to vendor’s means that being offered terms like “2% 10 Day, Net 30,” is no longer wishful thinking but now a strategy to realize an additional 2% of profit on your transactions.

The vast majority of SME’s surveyed expect to derive up to 50% of their revenues internationally in five years time. [Source: Economist Intelligence Unit, 2014].  Now is the time to consider the advantages and options that WU can provide your business through MosaicaFX.

Why MosaicaFX/WU?

If you are involved with international trade, volatile currency movements can be the difference between a transaction being profitable or simply generating a loss on your ledger.  Managing these risks can be crucial to the success of your business.

Understanding and managing currency fluctuations are important to your international business model.  This means recognizing the time frame available to you to receive and/or make international payments is critical to this effort.  While you are focused on the nature of your business transaction, it is important that you have a currency trading partner who can remain diligently focused on the currency portion of your efforts.

It is only through such an understanding that decisions can be made as to which hedging tools may be needed to secure your profits.  There are a huge range of tools available to businesses of all size including forward contracts, stop losses, hedging strategies, market orders, future payments etc.  Due to our unique partnership with Western Union our clients can enjoy better rates and mitigated fees while accessing these various tools.

Welcome to the Newest Flagship Partnership in the Currency Markets!

With this new paring of Western Union and MosaicaFX, our clients will enjoy access to even greater assets to manage foreign currency exposure, optimize cash flow and protect your profits.  Schedule an appointment with a MosaicaFX Account Manager today to learn more about this unique new partnership with Western Union and what it can mean for your business today!

 

 

 

Business, Economy, People

Whew!

Whew!

The European Union and an entire basket of currencies just breathed a collective sigh of relief.  On Sunday May 7th, the technocrats of the EU are certain they just dodged a bullet….or more likely, a mortar shell to be precise.

The election of Emmanuel Macron as the new President of France over the nationalist parties Marine Le Pen, was a tremendous rebuke of the concept of France eventually dropping the Euro and leaving the European Union.  This was the position that Le Pen had espoused during her aggressive campaigning and with her losing 33.9% of the vote to Macron’s 66.1% it can be assumed that her stance was repudiated.

On the other hand, with over one third of the French population eligible to vote declining to do so in this election, many believe that Macron secured a strong majority of only around 44%.  It stands to reason that if only two-thirds of the voters showed up at the polls and he garnered 66% of the vote, he does not have a majority of Frenchmen supporting him.

Where to Start?

President-Elect Macron now needs to prove that he is “neither left nor right,” and can manage from the “center,” which was his message throughout the campaign.  The far-left will need to see his support behind social programs that have yet to bear fruit in a positive sense and the far-right will want to witness his embrace of the labor unions.

Conventional wisdom though says that his entire administration may actually hang on his Countries internal security and immigration issues.  Many political-insiders believe that the entire success of his incoming administration hinges on any future terrorist attacks that may occur on his watch.

No doubt, the obvious relief shown by Germany’s Angela Merkel and other EU allies has been palatable immediately following the elections outcome.  Now, it is expected that Mr. Macron will be calling in any and all favors that he can rely on to help build more positive relationships with France’s EU trading partners.

The Immediate Effect…

The Euro has rallied briefly to a six-month high against the Dollar on Monday in support of Macron’s election.  The single currency touched $1.1023, which is its highest level since November 2016 and was up from its close on Friday of $1.0998.

The currency also hit a one-year high of 124.59 Yen from 124.05 Yen on Friday’s close.  However, these gains have all been short –lived and more modest than expected compared to the reaction following Macron’s first-round victory last month.  Since the outcome of the election eliminates any risk of France leaving the single currency bloc, it is expected that the Euro will continue to stabilize over the next several weeks.

MosaicaFX would strongly recommend that you stay in close touch with your Foreign Currency Account Managers to ensure that you remain well positioned to protect your profits going forward if you trade within the EU or on the Euro.  At MosaicaFX we would welcome the opportunity to discuss this new development with you and look forward to answering your questions.