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On January 26, 2024, the Biden administration announced “a temporary pause on pending decisions on exports of ‘Liquified Natural Gas’ (LNG) to non-FTA (Free Trade Agreement) countries until the Department of Energy can update the underlying analyses for authorizations… “ The administration pointed to oversight guidelines from the Department of Energy (established five years ago) as outdated. This pause would allow time to reevaluate the oversight to better align with modern conditions, like energy cost increases and safety concerns surrounding greenhouse gas emissions these new projects would produce. The U.S. became the largest global LNG exporter in 2023, making the pause a difficult decision. Even though previously approved projects will continue operating, if the pause is prolonged it may affect the U.S. position in the global market as competitors like Qatar look to expand operations to stay competitive. Europe has become dependent on U.S. LNG since being cut off from Russia’s supply in 2022. The already approved operating facilities will continue to supply Europe and other nations with their LNG needs. There are already projects that have been approved that are still being built. When completed, the expansions would nearly double the sizes of LNG projects along the Gulf Coast. The scale of this calls into question how dire the prolonged pause on pending expansions would be. The pause was driven by grassroots initiatives that have acquired financial backing from people such as the Rockefellers, Michael Bloomberg, and Jeff Bezos. These community leaders and organizations along the Gulf Coast are against the constant expansion of facilities across coastal lands. Some worry about the impacts on air quality, tourism, and natural resources like fish, shrimp, wetlands, and endangered species. Activists argue that the benefits to their local economies would not be worth the natural ramifications these facilities would bring. Since the announcement from the Biden administration, republican disapproval developed in Washington. August Pfluger, a representative from Texas, then introduced a bill on 2/1 in the House of Representatives. Within the bill, the Federal Energy Regulatory Commission (an independent oversight organization within the DOE that monitors the interstate transmission of natural gasses) would have the exclusive authority to approve or deny an application for siting, construction, expansion, or operation of a facility that exports and imports natural gases to and from foreign countries. On 2/15, the bill passed in the House of Representatives as the House has a Republican majority. It’s likely to be stopped in the Senate, which has a Democrat majority.

Venezuela has made recent deployments towards the Guyana, Essequibo region border. Satellite images have captured images of military bases along the border armed with armored vehicles, aircrafts, and missile patrol boats. The Essequibo region was laid claim to by Venezuela in the early 1800s. Venezuela had become independent from Spain in 1811. Shortly after Venezuela’s independence, Britain acquired Guyana from the Netherlands through a treaty in 1814. Once Britain acquired Guyana, a western border needed establishing between Guyana and Venezuela. At the time, there was no official border within agreements. Britain commissioned a surveyor named Robert Schomburgk, who established what’s known as the Schomburgk Line in 1835. The line laid Guyana’s claim to the Essequibo region. Venezuela disputed the border, which led to an arbitration the United States facilitated between Venezuela and Guyana. In 1899, the arbitration resulted in the Schomburgk Line being deemed lawful and would continue to stand as the border between Venezuela and Guyana. Today, 15% of Guyana’s population lives in the Essequibo region. Guyana became independent from Britain in 1966. Venezuela then believed that since Britain was out of the picture, it would void the border agreement and reclaim the Essequibo region. However, as the Essequibo region had no significant resources, making this claim official was not a priority. Venezuela now believed they already had a lawful claim to the land. Then, in 2015, Exxon discovered significant amounts of oil in the region, which sparked the dispute again. Venezuela tried laying its claim, which the Guyana government pushed back on. The U.N. then stepped in to mediate between the two countries. Guyana filed proceedings against Venezuela in 2018 over the dispute, and in December 2023, the International Court told Venezuela to refrain from annexing the Essequibo region. The court’s direction has not deterred Venezuela from their recent show of force, which they say is a direct result of observing Guyana military drills with American and U.K. forces. Venezuela also states its discontent with energy companies such as Exxon, Chevron, and CNOCC currently mass-producing oil under an agreement with the Guyana government. Many doubt that an invasion is the end goal for Venezuela. Most believe that the strategy is a show of force to bring Guyana officials to the table to reach a mutually beneficial agreement for the two countries. Energy companies are unphased by the tension. Exxon spokesperson Michelle Gray stated, “We are not going anywhere—our focus remains on developing the resources efficiently and responsibly, per our agreement with the Guyanese government.”

Oregon voted in “Measure 110” at the end of 2020, which took effect on 2/1/21. M110 was implemented to address drug addiction in Oregon, providing treatment instead of prison sentences. M110 makes possession of small amounts of drugs such as fentanyl, heroin, and cocaine a “Class E” misdemeanor instead of a “Class A.” Class E is enforced by fining an individual up to $100, while Class A could result in up to a year in jail and at most $6k in fines. Possession of large amounts of drugs under M110 is a Class A misdemeanor instead of a felony. M110 also allocated $264 million in grants to 233 recovery services. The effectiveness of these programs is up for debate as an audit from the “Oregon Health Authority and Oversight” and “Accountability Council” reviewed the performance of the providers enabled by the grants. From the report, “It is not clear how many providers of culturally specific services were funded to help serve populations most affected by the war on drugs…” State officials plan to allocate another $150 million through June 2025 to these programs, followed by another audit in the same year. The Oregon Health Authority responded that it would improve the grant application process and collect better data about the programs going forward. Once an individual receives a Class E fine, they are instructed to call a treatment facility to receive care for recovery. If they call, they can avoid paying the fine. However, law enforcement claims that most individuals fined will either ignore paying the citation or call the hotline to pay the ticket without receiving treatment. More Oregon citizens now report feeling uncomfortable in their communities as they observe more instances of drug use than before. These factors have led to the formation of a bi-partisan committee that has been meeting since October to discuss M110 reform. They are hearing testimony from law enforcement, addiction experts, and treatment providers to glean insight into the current situation and possibly reform/repeal M110. Activists argue that money provided in 2022 to recovery programs laid the foundation for change but requires more time to be effective. Furthermore, activists such as “The Drug Policy Alliance” point to a study from RTI International that they present as evidence that M110 is not the reason for more crime in Oregon (a point made to citizens who are uncomfortable with the effects they perceive in their neighborhoods). The study observes rates of 911 calls before implementing M110 (February 2021) to June 2022. Comparing this data to other rates of 911 calls from metropolitan areas, activists make the case that M110 had little effect on the volume of emergency calls. Even though the data shows an uptick in property crime calls by 56% since implementing M110. It is also unclear if factoring in emergency sentiment was analyzed in data reporting. As acts such as drug use were deemed legal, citizens may not feel that those acts merit a 911 call. Oregon citizens continue to wait for a M110 reform proposal. Republican leaders in Oregon have already presented their ideas for reform, which generally revert to the drug laws that were in place. The bi-partisan committee continues to meet to produce an agreed-upon proposal as the effects of M110 continue to play out in Oregon.

The health insurance company Humana has reported a 2023 loss of $541 million, even as it generated a revenue of $26.6 billion. Humana blames the loss on an unforeseen influx of “utilization” (people using health insurance) during Q4. The trend in utilization is persisting, which leads Humana to believe this is not due to a seasonal increase and may be the new normal for the company. With the age of the population increasing, this is possible. Specifically, costs from high rates of in-patient “short-term” stays. These short-term stays reportedly have a 4x higher average unit cost per observation event. Accompanied by non-inpatient costs such as physicians, outpatient surgical care, and supplemental benefits. Across the board, competitors such as United Health and Cigna reported having higher utilizations but were still profitable in 2023. The loss is now forcing Humana (the 5th largest health insurance company) to explore price increases for the 2024 year. Humana can only increase once annually, so they must test thoroughly to see how elastic the price can be without customers dropping their plans. Additionally, they must get the pricing correct for 2024 to account for higher costs. If they set the 2024 price too low, it may lead to another annual loss. Not stopping at price increases, Humana plans to cut benefits as a way to improve the profit margin. The perceived troubles don’t stop for Humana and the Health Insurance industry. The CMS (Centers for Medicare & Medicaid Services) is a government regulatory body that proposes regulations to manage the health insurance industry. Recent regulations from CMS have been passed for 2024, which go after Medicare Advantage plans. These new regulations significantly affect a struggling Humana, as it shifted its focus in 2022 to providing primarily Medicare Advantage and Medicaid plans. Medicare Advantage has been a controversial product since 2003. Receiving blame for helping drain the Medicare Trust Fund (which gets money from general revenues, payroll taxes, and premiums). Simply explained - within the Medicare Advantage system, areas in which policyholders live have a star system, higher quality = higher benchmarks for plans. The Medicare Advantage companies submit “bids.” Bids are what companies think they’ll need to cover plans for policyholders in that area, which they provide to CMS. Bid amounts are always submitted lower than the area's benchmark. According to healthaffairs.org, some MA companies may cherry-pick high-star areas with these high benchmarks to submit higher bids. These bids are furthermore risk-adjusted, utilizing codes to highlight a patient's diagnosis. The amount of codes attributed to a patient determines the risk rate for the plan. Higher risk = even higher prices. These codes may even be accurate for the patient, but some argue that MA companies account for codes unnecessarily.  Diagnoses like “alcohol dependence” and “obesity” are commonly found as examples of unnecessary codes added to patients. MA companies argue that accurately accounting for all codes for a patient should not be viewed as harmful and that surpluses on plans allow the companies to provide more benefits for the insured. Humana believes that the overall health insurance environment will need to adjust to the current trend in utilization and regulation. Competitors say the current influx aligns with their planned models and will operate normally. These opposing statements can mean one of two things. Humana’s projection modeling is faulty, which spells bad news for them, or the trend will eventually impact the entire health insurance market by exceeding competitor cost projections. If it’s the latter outcome, that may result in higher health insurance costs with lower benefits for everyone. Humana 2023 Q4 Earnings Statement

The World Economic Forum met this past week in Davos, Switzerland. This is one of the largest (if not the largest) annual conferences between international business and government leadership, who meet to discuss topics for the coming year. Here are some highlighted topics. Leaders discussed the Middle East and how the spread of violence in the region is a concern. The Houthis, Hezbollah, and Iran have ramped up their efforts to disrupt supply chains and attack U.S. and Israeli bases. They are doing this as they believe that Israel’s violence will not stop at just Gaza and aim to make the region as hostile as possible for the U.S. to force them to change their Middle Eastern policy. Some at the WEF insisted that to ensure peace, violence such as Israel’s needs to stop, and restrictions on actions in the region need to be enforced - starting with the stop of settlements. Leaders brought up utilizing a broad strategy to ensure peace. One that would encompass all of the Middle East and that the cause of tension surpasses simply Israel and Hamas. On the topic of war, Zelinsky continued to meet with potential backers to support Ukraine’s effort to fight Russia. He met with many CEOs, including Jamie Dimon, the CEO of JPMorgan Chase. Ukrainian panelists would also often refer to the war when answering questions. AI was a hot topic, as the technology will likely impact all future industries. Its potential to both enhance and threaten national defenses makes leaders feel uneasy. A give-and-take is ongoing between regulators and developers to set a standard global regulation on AI. Regulation aims to make development safe and allow for continued innovation. However, regulation is difficult to substantiate due to countries racing to maximize AI capabilities. Standardized regulation for all countries would need to be enforced so that leaders can rest assured they aren’t being unfairly prohibited in development. Interesting points related to how leaders would need to reskill their labor forces to utilize AI and how other countries like the United Arab Emirates see developing AI as a “leapfrog opportunity.” Environmental sustainability was a reoccurring discussion. The European Union has been developing a sustainable way forward with a possible green deal and a drafted plastics treaty. Europe calls for collaboration amongst its countries for sustainable solutions to make up for inadequate individual capabilities. As for the plastic treaty, this is Europe’s attempt to address the issue of microplastics and overall plastic pollution. It calls for a binding agreement that companies must abide by. It aims to help reimagine product delivery, packaging alternatives, international waste management, changing consumer behavior, monitoring standards, and consumer behavior. The need for clean energy to achieve net zero carbon emissions was also discussed. The U.S. was praised for continuing to develop energy solutions with hydrogen. The EU is happy to incorporate a green energy source such as Hydrogen to relieve dependence on Russian fossil fuels but would need assistance setting up. Unanimously, a desire to move away from a fossil fuel base was expressed among leaders. However, there was an emphasis on sustainable alternatives needing to be implemented in a way that does not negatively impact economies.

The Democratic Progressive Party (DPP) candidate, Lai Ching-te, won Taiwan's presidential election on Saturday, Jan 13, 2024. This victory marks the third consecutive election victory for a party, a first for the young election process. Taiwan's first official election was in 1996 after the (then) authoritarian Kuomintang party (now the main rival of the DPP) lost political control of Taiwan after pressure from the U.S. at the end of the Cold War and growing political consciousness within its people forced the party to turn towards democratic governance. In the 2024 election, the DPP ran on Taiwanese autonomy from China, social welfare, and a need for government transparency/anti-corruption oversight. Kuomintang ran on the principle of being the more substantiated and peaceful party. Proclaiming to voters that if they voted for the Kuomintang candidate, Hou Yu-ih, it would be the better option for sustainable interdependence with China. Kuomintang has been contentious with the Chinese Communist Party since 1949 (during the Chinese Civil War) but has built a rapport with China over time. This relationship is through cultural exchanges of people and resources via the Taiwan Strait. China is the largest trade partner and source of investment Taiwan has. With that, economic ties may be due to China working to diplomatically isolate the island of Taiwan to make the country dependent on China. A third party, the Taiwan People’s Party (TPP), had its second presidential run in the 2024 election - securing 26.5% of presidential votes and 8 legislative seats. In comparison, Kuomintang secured 52 seats and DPP secured 51. Even though the TPP lost the presidential race, it has earned its spot in Taiwan's political discussion. It was formed by Ko Wen-je, the Mayor of Taipei, in 2019. The party generates a large amount of support from residents of Taipei. As a centrist party, it functions as a third option for voters who feel polarized by the two major political parties in the country. In 2024, TPP ran on social welfare, economic development, and urban planning. The party has appealed to younger generations in Taiwan. The continued support of the DPP highlights the Taiwanese desire to become independent from the Chinese Communist Party. China lays claim to Taiwan by referencing texts such as the Cairo Declaration (1943, Taiwan ownership taken from Japan and given to China) and the Potsdam Proclamation (1945). These documents also assist the viewpoint of the one-China Policy, which is respected internationally. Additionally, at the United Nations Assembly in 1971, the People's Republic of China was recognized as the only legitimate government of China, which removed the old Republic of China (the side that lost the Chinese Civil War in 1949 and went to Taiwan) as a governing force. China is adamant about maintaining its territorial ownership of Taiwan, even as Taiwan has been operating independently for many years. Many are unsure if the DPP will escalate the tension between the two countries to achieve its independence, simultaneously dragging the U.S. in, as it would be a democratic ally. China may also be the one to escalate tensions between itself and Taiwan to claim the country. Upon hearing the election results, Biden stated the U.S. does not support Taiwan's independence from China. The U.S. Secretary of State, Anthony Blinken, stated: “We look forward to working with Dr. Lai and Taiwan's leaders of all parties to advance our shared interests and values, and to further our longstanding unofficial relationship, consistent with the U.S. one-China policy.”

U.S. Steel released a statement on December 18, 2023, that announced a developing deal for Nippon Steel (a Japanese company - ranked as the 4th top global steelmaker by Reuters) to acquire the Pennsylvanian steel producer for $14.9 billion (a 142% premium). U.S. Steel has been operating since 1901, formed by J.P. Morgan, who financed the merging of Carnegie, Elbert H., and William Henry steel companies to make U.S. Steel. The acquisition has prompted discussions on national security risks, labor union relations, and industry growth. Favorable outlooks on the deal stem from the fact that U.S. Steel has been in a steady decline. In 2023, U.S. Steel’s net income declined by 66% compared to last year, going from 2022’s income of $2.5 billion to $1.15 billion. Even though the company is a considerable supplier domestically, its production methods have not modernized and produce materials at a much higher cost than modernized competitors. This dying company is prime for acquisition, but its scale makes the prospect of other domestic companies purchasing it daunting. Nippon had placed its bid for the supplier in an auction between other competitors, such as Cleveland-Cliffs (America), Nucor (America), and ArcelorMittal (Luxembourg). Cleveland-Cliffs had given what they believed to be a competitive offer before the auction of $7.1 billion but was considerably below Nippon’s auction bid. Pro-deal views hope having Nippon run U.S. Steel would provide fresh ingenuity into the domestic market. Nippon has stated it would like to capitalize on the electric vehicle production boom in America. With materials streamlined more efficiently, it’s possible to see steel-related goods become more affordable. Additionally, Japan has been a close economic and military ally (America has three air bases in Japan). Not to mention, Nippon already has a presence in America with their joint venture called “AM/NS Calvet” which they created in Alabama with ArcelorMittal. U.S. Steel would expand its position in America considerably. Anti-deal views highlight the importance of maintaining national security, which is a risk between allies even when relations are healthy. The concern is that there’s no telling what a rushed “globalization” of a major American domestic supplier would do. The United Steelworkers union (these workers make up the majority of employees at U.S. Steel) is nervous about the deal. U.S. Steel had not informed them of the sale, which they claim is a breach of contract. The union claims U.S. Steel agreed to notify them of any “change of control or business conditions,” without doing so, they believe there are grounds to halt the sale. Nippon Steel has stated that it would honor any contracts signed by U.S. Steel, but as the Japanese company has not met with the union, they are unsure how understanding the company is of the union terms. Bi-partisan support has been conjured up in Washington to try and stop the deal, calling for the “Committee on Foreign Investment in the United States” (CFIUS) to review the acquisition for compliance and potentially request a block. It is unclear if Biden will block the deal to rally support in Pennsylvania for his upcoming election campaign. The acquisition is expected to be finalized in October of this year.

Victims of the Lahaina, Maui fire from four months ago are still homeless, either camping out or being sheltered in short-term rental spaces like resorts and hotels. The Lahaina fire in August ignited after a powerline snapped from extreme winds and set fire to the surrounding dry grass. Usually, in harsh weather conditions, power lines will have their electricity cut by their power companies, ‘Hawaiian Electric’ did not turn their powerlines off, however. Assisted by extreme winds, the flames continued to spread, which resulted in at least 100 deaths and 2,200+ homes burning down. Many victims now have lawsuits filed against Hawaiian Electric for damages. In many states, fire protocols are set and enforced by the state’s fire marshal, but Hawaii has never had one. They’ve instead had a “ State Fire Counsel.” Chief Kazuo Todd of Hawaii County Fire Department said, “There have been issues... . in the past where (even) some of the schools, which the state runs are being non-compliant in their fire safety systems. . . our ability to get this corrected is tempered by the fact we are county agents and not a state organization.” Hawaii’s Governor, Josh Green, is reportedly in favor of establishing an official fire marshal for the state to enforce and update fire codes, given the increasing severity and frequency of fires. Since the fire, Lahaina residents have either relocated to live with friends and family in other Hawaiian areas or out of state or ended up homeless. The lack of Hawaiian affordable housing makes sustainable living even more difficult. Some are fortunate enough to be provided shelter in short-term rental spaces but have had to continuously move from building to building to ease the housing burden on business owners. This puts the community in a difficult position. Victims require shelter, but the local economy needs tourists to visit and take up space in the short-term rental properties. Funding from tourists will be crucial to rebuild the Lahaina community. As the Lahaina people become increasingly desperate, realty companies such as ‘Romvari Realty’ have offered to buy destroyed properties from them. An offer that was received harshly by a community that maintains the desire to stay on their land and harbors a general distrust towards outside corporate entities. They are hopeful for the “Lahaina Community Land Trust,” a developing nonprofit organization that will assume managerial ownership of the Lahaina land. The trust would function with the intent to buy the properties from victims - relieving them of the mortgage payments on the destroyed properties and then providing victims with an opportunity to repurchase the property in the future. ‘The Maui News’ last reported on the development of the trust on November 15, where leadership talked about seeking guidance from other land trust organizations on how to develop the organization. From the report, they had not secured funding sources for the project.

On Saturday, December 16, Cardinal Angelo Becciu became the most senior Vatican official ever to be tried and convicted in the Vatican court. The 75-year-old Cardinal was convicted of embezzlement, abuse of office, and subornation - receiving a sentence of 5 and a half years on top of mandated payments he and associates must repay to the Vatican. In 2020, Pope Francis asked Becciu to step down from the Secretariat of State role, masked as a resignation. Resignations of senior officials are practically never done within the Vatican. The Pope encouraged Becciu’s leave after the Italian media exposed the ongoing investigation that examined the Cardinal’s shady financial dealings. Becciu (assisted by other defendants) used church funds to invest in a luxury London Building on Sloane Avenue for $364 million - a deal that the Pope seemingly knew about, as he was involved in a meeting with a broker named Torzi regarding the property. It has yet to be clarified how much the Pope genuinely knew about the investment. Aside from the London property, Becciu gave out church funds to close associates. He provided donations to a charity run by his brother and around $600,000 to a woman he hired named Cecilia Marogna. Becciu allegedly hired Marogna as a consultant who would facilitate efforts to free a captive nun in Mali. Yet Marogna reportedly had spent the funds on luxury travel and goods. Marogna was sentenced to 3 and a half years. All defendants who faced charges related to Becciu's dealings faced some form of punishment, whether jail time or a fine. The only individual to be acquitted was a former official at the Vatican Secretariat of State named Mauro Carlino. Cardinal Becciu’s fraud lost the Vatican millions in its donation funds. The Vatican has been actively participating in the European Moneyval process, a monitoring body that aims to police money laundering and the financing of terrorism more effectively. As the Vatican continues to work with Moneyval, it may become more commonplace to see cases related to financial crime come to light.

PDD Holdings started in 2015; it functions as a ‘multinational commerce group that owns and operates a portfolio of businesses.’ Initially headquartered in Shanghai, the company became profitable in 2021 by utilizing Pinduoduo, a home appliance and daily grocery e-commerce app. PDD Holdings wished to expand upon its success and launch a Western-focused e-commerce platform. That led to the establishment of Temu in late 2022, which they headquartered in Boston. In May, PDD Holdings made filings to switch its headquarters to Ireland. The move is likely an attempt to boost PDD Holdings’ international presence. These filings were made two months after Google suspended downloading the Pinduoduo app from its Play Store after they found malware in versions of the app. On November 30, PDD Holdings achieved a market value of $196 billion - effectively surpassing its rival Alibaba by 8.7 billion. The boost in value is attributed to Temu’s massive earnings contributing to PDD - even as PDD’s operating margin decreased from 26% to 24%. A decrease in operating margin is a probable result of Temu bleeding costs from free shipping and handling (among other costs) to provide incredibly competitive prices. By doing so, Temu could achieve a higher foreign market share, as it now possesses 17% of the U.S. Discount Store market. PDD Holdings can bleed costs with Temu due to profitable domestic margins. Coming out of Q3, they had a 60% growth in operating profit. Temu can sell products at a low rate by utilizing an extensive network of low-cost manufacturers and supply chain partners. Temu has a price bidding model where sellers place price bids on products, pitting suppliers against one another for customers. Given Temu's high traffic volume and presence on social media, sellers who sell at a slight loss get positioned to make up for the losses if they achieve enough order volume. This model pushes away small sellers that can’t handle high volumes. From when Temu first launched in the U.S. in late 2022 til now, it has expanded to 40 additional countries. The latest expansion is in Europe, where PDD Holdings is establishing supply chain partnerships in Italy, the Iberian Peninsula, and Germany. PDD Holdings SEC Filing Earnest Analytics: Temu’s Discount Shopping Market Share

According to monthly data from ‘Built For Zero’ (a “Community Solutions” organization specializing in homelessness), Reno Nevada has recently decreased its homeless population by about 20% annually. Comparing October 2022 to October 2023 data from the BFZ Trends Monthly chart. The drop in homelessness is attributed to the joint program created by Reno and Sparks Nevada, called the “Nevada Care Campus.” A facility that intakes single men and couples, while segregating single females seeking shelter to the “Our Place” housing organization. It started in 2021 with initial funding of $17 million from the CARES Act, donations, grants, and taxpayer dollars. At the moment, the ‘Nevada Care Campus’ is a large tent structure, similar to a ski lodge base camp, situated on 15 acres of land. Filled with beds for 'emergency housing,' it was erected in just 85 days and reached maximum capacity (604 occupants) within the first month of opening. The rapid influx of shelter seekers overwhelmed the campus’s structure, resulting in the collapse of a ceiling and mold in showers, as the showers would run constantly throughout the day. Further construction is underway to improve the facility's functionality and provide more services to the occupants. It is in Phase 2 of a 5-Phase plan and resumed construction in June of 2022 - Phase 2 should conclude in the winter of this year. The end goal of the project is to have multiple housing and service wings to aggregate occupants within the campus based on needs rather than joining them all together. The hope is to provide behavioral health services, communal areas, kitchen/cafeteria, bathrooms/showers, laundry, and permanent & short-term housing. ‘Nevada Care Campus’ has already rolled out the “Safe Camp,” an area of the facility run by Karma Box. This area contains living pods, where people referred to the camp can live if they agree to work with a county case worker to create a path to permanent housing. Even with the improvement in homelessness, there are complaints about the 'Nevada Care Campus.' After increasing its budget allocation from $17 to $80 million, tension grows regarding the cost-benefit ratio of the campus for Reno - seeing as how it is still in Phase 2 of construction. Additionally, the question of how knowledgeable the Reno leadership is on solutions for the homeless crisis is debatable. As the heads of the Nevada Care Campus, Dana Searcy and County Manager Eric P. Brown have reportedly hired around 32 outside agencies to help consult and run the facility. BFZ Monthly Data - Reno NV Homeless Population

Basel III is a new set of international banking regulations and the successor of Basel I & II. These regulations were put in place by the Basel Committee on Banking Supervision (BCBS), an entity led by the central bank governors of the Group of Ten (G10) and 27 other jurisdictions. Basel III’s draft was finalized in 2010, its reforms are a reaction to the 2008 financial crisis. The intention is to set in place a banking structure that can handle future financial shocks. Some reforms were rolled out through the 2010s, but starting January 1, 2023, Basel III started implementing the entirety of its regulation system and will gradually ramp up through the next five years. Basel III introduces 3 key changes - Minimum capital requirements for banks will increase from 2% to 4.5%, to ensure bank holdings have enough to sustain operating losses and still honor withdrawals. On top of this 2.5% increase, banks will also be required to add an additional 2.5% buffer to their capital requirement. This is to ensure the bank will be able to endure a financial stressor, such as a crisis. This overall increases capital requirements from 2% to 7%. A leverage ratio (measures debt) of 3%. This percentage can be higher depending on the entity. For example, insured bank holdings can have 5% and financial institutions can have 6%. This was put in place to manage highly leveraged entities to safeguard potential losses. Regulations on Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR). Both are implemented as a way to ensure banks are liquid enough to withstand financial stress. LCR is the way to measure short-term resilience and NSFR measures long-term. A bank’s LCR is required by Basel to be 100% since 2019 - it's calculated by dividing high-quality liquid assets (HQLA) by estimated cash outflows during a 30-day period. This means banks need to have enough liquid assets (ex: short-term securities & cash equivalents) to cover all cash outflows for at least 30 days. A bank’s NSFR is the amount of stable current funding compared to the amount of required funding over a year, which should be 100%. Critics of Basel III note that regulations such as the capital requirement will make banks less profitable and push them to increase interest rates. Additionally, some fear that the regulations will hurt small businesses as banks may increase the capital holdings for mortgages and SME loans. Basel 3 Summary Basel 3 Implementation Timeline Chart