Financial outsourcing The useful guide

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Today we talk about a term that increasingly takes more strength in our environment. We talk about financial outsourcing in this interesting guide.

 

Index

Index

What is outsourcing?

Characteristics of outsourcing

  • Concerning the contract between the parties
  • Concerning the organization

Advantages of outsourcing

Disadvantages of outsourcing

Types of outsourcing services

  • Regarding its purpose
  • Regarding its nature

Levels of outsourcing

Outsourcing decision process

Outsourcing application areas

Financial outsourcing, what is it?

What allows financial outsourcing?

Objectives of financial outsourcing

Benefits of financial outsourcing

 

What is outsourcing?

What is outsourcing?

Outsourcing, also called outsourcing or subcontracting , is an innovative management technique, which involves the transfer to third parties of certain processes complementary to the main activity of the business. It is the process by which a company outsources part of its activity by hiring an external company to manage a part of the company.

With this method, the main company can focus on specific functions to improve them, and specialize in increasing efficiency. It is very important that the activity that is outsourced to another company is not the main pillar of the company, since that could cause damage to business management.

 

Characteristics of outsourcing

The main characteristics of outsourcing can be related to the contract between the parties or related to the organization.

Concerning the contract between the parties

  • The outsourcing contract must clearly establish the responsibilities of both parties in any aspect, not only taking into account the current service but also the level of future service.
  • The scope of the contract can be as broad as it is established, it is tailor made.
  • The contract usually lasts several years.
  • One of the most important aspects of the contract is the definition of its validity.
  • Criteria for personal transfer of functions must be established throughout the evaluation process.

Concerning the organization

  • It is a strategic decision for the organization, since it transfers part of its assets to the outsourcing company.
  • It allows you access to new technologies and focus on carrying out activities of greater value to the organization.
  • They reduce operating costs and avoid having to invest in infrastructure.
  • A very important commitment is acquired with the subcontracted organization, since it will depend on it that an adequate level of service is provided.

 

Advantages of outsourcing

Advantages of outsourcing

The use of subcontracting goes hand in hand with various benefits, among which are:

  • It lowers production costs.
  • Save time and space.
  • It facilitates the obtaining of better quality products.
  • Reduce the number of routine tasks.
  • It allows the organization to focus on its main activity.

 

Disadvantages of outsourcing

 

Although it is an efficient tool, it can lead to some inconveniences such as those detailed below:

  • It generates little loyalty towards the organization to which the service is provided.
  • Fosters irregularities in the hiring of workers.
  • Eliminates jobs in the country of origin of the contracting company, if offshoring is applied.
  • You can lose direct contact with the client.

 

Types of outsourcing services

 

Outsourcing can be classified according to two criteria:

Regarding its purpose

  1. Tactical Outsourcing : This type of subcontracting is considered as such a simple outsourcing of a non-primordial function for the company, and its reason for being is the need to reduce costs.
  2. Strategic Outsourcing : It is intended to create a stable relationship with the company to which functions are delegated. The consolidation of a strategic alliance is pursued through the interdependence of the delegated tasks with respect to the others that make up the company, thus seeking to improve the quality of the delegated function, improve their services and increase the capacity of the same.

Regarding its nature

  1. Co-sourcing : This type of outsourcing occurs when both companies share responsibilities and, in some cases, the risks of providing it.
  2. In-house : It occurs when the requested services are carried out within the facilities of the company that requested them.
  3. Off-shoring (relocation) : Occurs when you request the contracting of services to a company that is abroad, since the costs are lower compared to the national ones.
  4. Off-site : It is named like this when the services are generated in the facilities corresponding to the company that is providing them.
  5. Collaborative Outsourcing : It is one in which the contracting company takes full advantage of the strengths of the company hired and its workers, so as not to delegate all the work they need to perform in the external company.

 

Levels of outsourcing

There are different levels in which outsourcing can be applied:

  • Complementary parts : Consists in the purchase of parts or subpieces that make up the final product to another company specialized in manufacturing such parts, generally applied when the company does not have the capacity to produce them or to reduce costs.
  • Individual : Applies when it is only necessary to delegate the function of a worker, it is used for those activities that the company needs on a regular basis but does not need to have a full-time employee for the development of it.
  • Functional : It is used when it is necessary to delegate a function or tasks that require specific knowledge or skills.
  • Process : Includes the delegation of an entire process to another company specialized in the set of tasks required. It is used regularly, for example, in the human resources department with the recruitment process.

 

Outsourcing decision process

Outsourcing some functions of a company requires a decision-making process to make said outsourcing effective:

Strategically identify the processes subject to contract

In this step, the person in charge of the process must study in broad strokes the organization of the company to determine a strategy that defines the objectives to be achieved and the changes it will generate.

Select activities

The tasks or functions that will be externalized must be identified, and an initial analysis of the companies specialized in these activities must be carried out to make a preliminary selection.

Choose the company

It is a very specific step, the group of pre-selected companies is analyzed and, regarding specific criteria taking into account the needs of the company and the level of specialization and experience of the company that will provide the service, one of them will finally be selected.

Define the requirement

The minimum requirements and how they are to be measured must be established in the contract.

Transition period

The company has already been selected and the contract has been detailed, so now a transition period is presented to observe if the stipulated progress measures are met.

Manage and improve relationships

The last step is to measure the efficiency of the service and verify that the proposed objectives are being met. On this, it is necessary to carry out evaluations and propose improvement plans if necessary.

 

Outsourcing application areas

Outsourcing application areas

There are many activities that can be subcontracted, although it is important to outsource those activities that are not part of the functions or areas that are considered fundamental for the company.

  • Outsourcing of accounting systems
  • Outsourcing of capital and investment management
  • Outsourcing of the human resources area
  • Outsourcing of administrative systems
  • Outsourcing of logistics activities
  • And outsourcing of financial systems, on which we are going to focus next

 

Financial outsourcing, what is it?

 

Financial outsourcing is the planned process of transferring non-strategic functions to experts external to the organization that requires a considerable degree of bi-directional exchange of information, coordination and trust .

The origin of the permanent financial advice arises from the need of the entrepreneur or manager of the company to devote his time to the supervision and management of his business, without having to dedicate himself exclusively to the financial part of the same, which also requires specialized training and of a high dedication. In this way, financial outsourcing is becoming a strategic support for companies, being a differentiating and necessary element for the optimization of the economic resources of the company and the maximization of the generation of value of the same.

 

What allows financial outsourcing?

What <a href="https://www.money.co.uk/">allows</a> financial outsourcing?

Financial outsourcing provides a new strategic, financial and commercial vision that allows:

  • Diagnose the current situation of the company.
  • Periodically review the objectives and strategies of the company.
  • Implement, analyze and periodically review the financial planning and budgetary control of the company.
  • Develop business plans, strategic and contingency plans.
  • Negotiate with suppliers, financial entities and public organizations.

The permanent nature of financial outsourcing is fundamental since it enables the planning and monitoring of the proposed measures, detecting and correcting in time those that deviate from the objectives set in the company in the short and medium term.

 

Objectives of financial Outsourcing

Objectives of financial Outsourcing

With the correct application of financial outsourcing, these five objectives are pursued:

  • Finance operations at the lowest possible cost.
  • Orient resources adequately.
  • Optimize the use of resources.
  • Maximize the value of the company.
  • Recover the investment made as soon as possible.

 

Benefits of financial outsourcing

The potential impact of financial outsourcing on the results of a project is a proven fact, the outsourcing of specific processes has proven to be a tactic that increases the efficiency and productivity of companies. These are the advantages offered by financial outsourcing for any company:

  • Concentrate efforts on key business activities.
  • Ensure business continuity by defining processes clearly and applying new procedures hitherto unknown.
  • Reduce the costs of services by facilitating financial planning and budgets.
  • Make better business decisions thanks to the information and experience of the financial advisor.
  • Improve cash flow and reduce spending on financing.

The Government becomes a shareholder by force in the "mud" of Abengoa

The Ministry of Economy (Mineco) is the second shareholder of the Sevillian company, after one year of delaying its exchange of debt for shares

  • Two funds (FRRI and FIEX) assigned to Mineco covered Abengoa’s risks
  • Santander continues as the main shareholder with 4.9% of the capital

abengoa mx

The Secretary of State for Commerce raises to the CNMV that the group of government shares in Abengoa’s capital exceeds 3% after exchanging -with hundreds of millions of losses- its debt for shares in the 2017 rescue.

Abengoa is a value that, at the moment, gives allergies to its creditors -which have put off the sale of Atlántica Yield-, and to private investors after the rescue and restructuring that the company experienced between 2015 and 2017. The most reputable ones, they even dare to joke when they are mentioned the possibility of investing in the Sevillian company. “We like the mud, but we do not like to drown in the mud either. I remember the Baskerville dog and the quicksand … “, said Francisco García Paramés , founder of Cobas AM and former Bestinver, laughing during a conference at the University of Navarra at the end of February.

It also casts back even its rescuers, led by Banco Santander, which has been selling its shares from the debt swap to just 4.9% of the company, a share also inherited from the purchase of Popular. The bank chaired by Ana Botín was Abengoa’s sole shareholder until last Friday, when Luis de Guindos’s Ministry of Economy announced the taking of 3.15% of its capital, a percentage that responds to the guarantees and debt contracted by Abengoa with public entities. The State thus becomes the last in the line to ‘pass’ through the shareholding of the Andalusian company after all the Spanish banks – all with Abengoa risk in their balance sheets – and dozens of investment funds.

 

TWO FUNDS TO HELP INTERNATIONALIZATION

TWO FUNDS TO HELP INTERNATIONALIZATION

Specifically, as stated in the CNMV, the Secretariat of State for Trade directed by María Luisa Poncela states that they are “two funds without legal personality attached to the Ministry of Economy and Competitiveness through the State Secretariat of Commerce.” The first of them FIEX (Fund for investments abroad) is managed by Cofides and allows taking “temporary and minority direct shares in the capital of Spanish companies for internationalization,” as explained on its website.

The FIEX is a vehicle with 878 million euros of equity that endorsed Abengoa and became a creditor to the force, as well as the FRRI, which is managed by Cesce (Spanish Insurance Company of Export Credit). Ministerial sources place the origin of participation in Abengoa in the rescue and restructuring of the company, which a little over a year ago kept thousands of workers in the group in suspense, but above all, the balance sheets of the main Spanish banks, exposed to its debt close to 10 billion euros before the rescue .

The strange thing is that the government is emerging as a shareholder of Abengoa almost one year behind the bizarre bailout of Abengoa, which is still alive on the stock market after having lost 99% of its value. The outpouring of shares in state hands arises after the Insurance Compensation Consortium has informed the Ministry of the Abengoa share package that corresponds to a package of more than 3%, a percentage that requires it by law to communicate its presence as a shareholder.

SUPPORT FOR THE VIABILITY PLAN

Image result for supportOn the activities of FRRI (Cesce) with Abengoa, the statement sent to the CNMV indicates the role of guarantor that the Government has had with the multinational founded by the Benjumea. “The State will be liable for the obligations assumed by the managing agent on behalf of the former in the exercise of its hedging activity. For this purpose, the Reserve Fund for Internationalization Risks (FRRI) is created. It is a fund without legal personality (. ..) to which the operations of coverage of risks on behalf of the state made by the managing agent will be imputed “, explains the Government in the document to the regulator.

The fact that the government is positioned in Abengoa’s capital one year later is confirmation that there was a ‘political solution’ for the company, but above all it gives strength to the Sevillian group in the final stages of negotiations for the sale of Atlantica Yield . It is his jewel in the crown in the US and is in the process of being sold to power company Algonquin Power, which demanded a series of conditions that have not yet been solved to date.

Sources close to the company point out as a “temporary coincidence” that the state presence in Abengoa, although other sources believe that it is a movement to strengthen the credibility of the team led by Gonzalo Urquijo and in which other illustrious the likes of Josep Piqué (former minister and former CEO of OHL) or José Luis del Valle , former strategy director of Iberdrola. The operation, which extends to 25% of Atlantica, has a value of 607 million dollars (about 493 million euros), of which 510 million will be used to repay the debt, according to the company, which expects to close in the next few days this disinvestment to move forward with your viability plan.

Can you afford this important purchase?

Image result for can you affordEvery day, people across the country are spending their hard-earned money. The reality is that it is much easier to spend the money we make than to make the money we spend. However, as long as you can manage your spending habits and force yourself not to buy unnecessary things, it is always possible to set aside money for larger purchases that will benefit you in the long run. Easier to say than to do, right? Yes, the ability to make big purchases really depends on your living situation, your income, your level of debt and any other financial problem you may have on your back. By big buying here, we are talking about something that can not afford the money of a basic monthly paycheck, which would usually cost $ 1,000 and up. This could be a two-week vacation, or that car of the year that you saw in the dealer’s showcase on the way to your job. It could also be a new home theater system. Or, you could also save for the biggest purchase of your entire life, a home.

Whatever your financial goals, there are several ways to save money to reach them. We will start with smaller expenses and go to the larger ones. This should give you a better idea of ​​what your own budget might look like and whether you will be able to afford these purchases in the near future. Again, it all depends on your income, but as a reference, say you work full time and you make an average of between $ 20,000 and $ 30,000 a year. You live alone and perhaps rent a room to someone, but that is irrelevant since only your income is taken into account here.

Tips and tricks

Image result for tips and tricksAs mentioned above, making a big purchase usually means that you are going beyond the new Ipod or expensive shoe barrier. Sometimes, on a rainy day, all you need is to put on a pair of tracksuit and watch your favorite series. You’ve been saving for a while and maybe you’re looking to improve your home theater. You want the total. The decoder, the Blu-Ray player and a 42-inch screen that includes the surround sound system. These expenses are relatively easy to calculate. Since new models come out every year, you should be able to find decent offers after a little research. Say, for the flat screen? $ 500. A basic Blu-Ray player is about $ 100. A decoder and a plan for the basic cable between $ 25 and $ 50 a month ($ 300 to $ 600 a year) and double if your plan includes the internet. The hardest choice will be regarding the sound system, since there are several different sets of speakers ranging from $ 300 to $ 3000. Do not forget to take everything the seller tells you with a grain of salt. You do not need to buy the most expensive Blu-Ray player model. You should get by around $ 1000 for all your setup.

Then, after buying all this, ask yourself if you would have enough money for all your other larger expenses, such as rent / mortgage, groceries and transportation. If not, it is better to leave this expense for another time.

Holidays

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Some vacations may be affordable, depending on where you are going, when and how long. In fact, a good trip at the right time can be more beneficial than any other expense for someone who wants to reduce their stress level. Let’s say here that these holidays are more than just a weekend at the campsite. The ones you dream of, maybe even your honeymoon. Two weeks in Europe, a must-see destination for any traveler. Before booking, make sure you have anticipated all expenses that this trip may generate. Some places in Europe are real tourist spots and will be more expensive than many other places in the world.

Depending on where you are going, when in the year when you want to leave and the day of the week you book, flights will be the main expense of your trip. Nearly $ 1000, most of the time, if not more, for a return flight, not to mention the ones you could do between other countries. So once you are certain of your destinations, compare the price of the flights between the airports of the different countries that you want to visit. In addition, taking the train or bus between these countries can sometimes be more advantageous and more effective to see the country. Again, you could be lucky and find extremely cheap flights from some airlines like Ryanair, once on the continent. We are talking here of hours of flights and unpleasant routes, no film in flight but you will pay less than 100 euros for your tickets between countries if you go on a weekday.

Then there is the question of your accommodation. Will you spend a night in a 4-star hotel? Probably yes if you are on a honeymoon. And do not worry, you will not share a dorm with 12 other people. In fact, most good hostels have rates for their private rooms cheaper than what you would pay at a typical hotel. There is also AirBnb to consider. After that, you will only have your food, activities and memories to think about.

So, to be safe, you will probably pay between $ 2,000 and $ 4,000 for an unforgettable two-week vacation in tourist Europe. This is the equivalent of 2-3 months salary, before taxes, and assuming you do not already pay for a car and / or a mortgage. If you can afford it, and still have good savings, you might consider a third big expense.

The car

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This is where it’s time to do some research before making a decision. A car, something that a large part of the population uses to get around is one of the biggest energy ogres, both in essence and in savings. Let’s say you want a new car. You have found an economical vehicle at a reasonable price.

How will you pay? Will you buy or rent? You probably will not be able to pay the total amount immediately. This means that you will use financing, either through the dealer or by obtaining a loan from a bank, lender or credit union. With dealer financing, you will be refunding the car in monthly installments. With a bank, lender or credit union, your car will be refunded and you will make monthly payments to your lender instead. However, remember that dealers and lenders will charge you interest charges for their services. So, do your research first to find the best rates.

Regardless of the payment option you choose, remember that a new car will cost you over $ 15,000, and if you fund it, you will pay a few hundred dollars a month for years. Not only that, but if you get a loan from a lender, you will need to have good credit. So once you’ve done your research and you’re not sure you’ll be able to make these payments, consider looking for used cars before signing a contract. If you buy a used car through a valid dealer, not only will you have more time to pay, but you can also negotiate a guarantee, in case you have problems with the vehicle during the first or even second year.

The House

Image result for houseNow, here is the ultimate expense, buying a house. Depending on how you manage to buy it and the mortgage rate, your first home can take several years to finance. There will also be many other costs that go hand in hand. Not only will you have a mortgage and a budget for life to manage as a rule, but with a house, you will also have property taxes, home insurance, maintenance issues and so on. Not to mention all the other fees you will have to pay before you even start unpacking your boxes. We are talking here about a property inspection, a property survey and contract closure costs. This is where your emergency fund can help you. Despite having enough income to be a stable owner, you never know what will happen. If you are injured at work or lose your job, it is helpful to have 3 to 6 months of living expenses to cover your general expenses, as well as any other unexpected expenses, such as sudden repairs.

It is generally advisable not to spend about 30% of your monthly income on your mortgage. So, it is important to make sure that you find a bank or lender that will give you an easy interest rate to manage with your monthly payments and always make sure you make these payments in full on time. Once you have a good rough estimate, based on your income and relative to what you can afford in terms of mortgage payments, taxes and other expenses, as well as your down payment, you can start looking for homes in your price range. In Canada, if the total price of the house is $ 500,000 or less, the minimum down payment must be 5%. However, with a higher down payment, you will get a better interest rate on your mortgage afterwards. So, say you want to buy a $ 500,000 house, the minimum down payment of 5% will be $ 25,000. If you can not afford this down payment as well as mortgage payments at that time, then it is better to save again and wait a few more years or find something at a more reasonable price.

So, can you really afford this important purchase?

Whether it’s one of your important financial goals or you’re just trying to scratch a few things off your to-do list while life is smiling at you, no matter what you buy, you should not wait until you start save. However, it is actually possible to afford these things, provided you do what you have to do to get there. Work hard and save money instead of spending it unnecessarily.

Felipe Gracia: "The traditional way of buying energy is no longer valid"

with operations in 17 European countries and offices in Belgium, Holland, Spain, Germany and the United Kingdom. Specializing in financial markets, Gracia analyzes how the variations in these affect the cost for companies of purchasing energy , both gas and electricity. This volatility means that its price undergoes significant variations at different times of the year, and that the choice of the moment of purchase is crucial.

Where does the energy we consume come from?

Where does the energy we consume come from?

About two thirds of the gas consumed in Spain comes from foreign producing countries and arrives in our country through methane tankers. This is regasified at the terminals of the ports and can be injected into the system or loaded onto trucks to reach customers who do not have access to the gas pipeline (this is what we know as liquefied natural gas). The rest, comes in pipe, mainly from Algeria. On the contrary, electricity is generated (almost entirely) locally by different technologies: wind, hydro, solar, nuclear, gas cycles, coal, fossil fuel and other types of renewable.

How is your production regulated?

How is your production regulated?

In the case of electricity, through the REE system manager. This must regulate it to comply with the law of demand and supply, which will throw the price of it. But it is not easy, since there are technologies that can not be controlled 100%. We do not know when the wind will blow, it will rain, it will be sunny …

Currently there are quite a few companies that offer gas and electricity, since the generation, distribution and commercialization businesses are separate. In liberalized and mature markets, there are many companies that market the energy components and the acquisition mechanism is the current: go to the market, pay the wholesale price, place a small premium and sell it to the end customers. Energy is a commodity.

The majority are from the Industrial sector, but sometimes also from the services sector; a chain of hotels or stores, for example, have an aggregate consumption that may be greater than that of an industrial plant. We consider that a company is a great consumer of energy when its expenditure exceeds € 500K per year, both in gas and electricity.

In Spain, large companies are being compared to the rest of Europe, where the purchase of energy is not only a technical issue, both installation and consumption. They are understanding that the factor that most affects the cost of it has to do with the financial aspects, especially the time of purchase.

The Iberian stock market for electricity derivatives is the OMIP, while for the gas so far it was the Brent and the exchange € / $. But this is changing, and there are already initiatives, promoted by the Basque and Catalan government, to set up a Spanish gas hub.

It is a market where this commodity is bought and sold and whose price is governed by the law of supply and demand and not by speculative movements around Brent – currently 85% of Brent’s purchase is speculative, that is, it has no delivery physical.

Is the purchase of energy being sophisticated?

So is. It is worth mentioning the change we have seen this year in the type of contracts that marketers are offering to their customers, with the possibility of managing the risk associated with the volatility of financial markets.

Does the price often fluctuate a lot?

Does the price often fluctuate a lot?

To the extent that markets are global, the economic and political impact of different countries affects the price of energy. Therefore, despite the fact that the Iberian market is still not fully liberalized, what happens in the rest of Europe and the world affects the prices that our customers pay for both gas and electricity.

On the other hand, as the markets are more liberalized and mature, the fluctuations are greater and therefore the cost that companies must pay for the energy they consume.

So, the purchase of energy must be subject to a strategy?

This is our great challenge: to explain to customers that the traditional way of buying energy is no longer valid and that they should think about diversifying the risk. Elaborate a strategy of purchase, that adapts to the business of each client, is key. It is the same concept that applies to other raw materials

In 2011, the electricity market had a variation of almost € 10 / Mwh. That is to say that on a consumption of 1,000,000 Kwh, the difference in price is € 10,000. Getting the cost down by € 10 / MWh through consumption planning is very, very difficult. That is why it is important to take into account the effect of volatility and propose strategies that allow you to control the budget in advance.

If we look at the OMEL daily market, these fluctuations have been much greater, so we must think very carefully when deciding the purchase model.

Could it be more explicit?

 

If we think about the traditional purchase model of many companies where it is negotiated once a year, and usually at the end of this, we see that in December many of them are facing this increase of € 10 / Mhh in the cost of their electricity . If we think of a client with 100GWh who normally pays around € 80 / MWh, he will pay € 90 / Mwh, with a total impact of an increase of € 1M, or 12.5%. For us, this is the risk of not managing the markets.

And how has the price of gas changed?

 

The price difference in 2011 compared to 2010 is about € 8 / Mwh, a vital change for companies whose gas spending is important. According to the company, we are talking about very high amounts, leading the largest amounts in your income statement. This is why it is so important to be well advised

Because of Fukushima?

Because of Fukushima?

 

It is one of the many causes that in 2011 has affected the price of energy. The nuclear disaster in Japan caused a gas price increase of € 3 / MWh in less than 2 weeks (+ 12%). In addition, the decision of Germany to stop eight plants (equivalent to the total of those available in our territory) caused more tension in the gas market.

 

 

You really have to be an expert.

 

Users and purchasing managers of companies still lack much training and information about the different components and energy prices. Although we have very professional purchasing departments, they usually do not have experts in the different commodities they purchase, and energy is undoubtedly one of them.

Who should manage the energy purchase in a company?

Who should manage the energy purchase in a company?

 

Historically, they were responsible for technical maintenance or engineering, but when companies understand that their price depends on financial factors, it becomes the responsibility of purchasing and financial managers, who together with the general manager make purchasing decisions in relation to the definition of the company’s strategy.

Any advice to take into account in making decisions?

Any advice to take into account in making decisions?

 

The future of the price of energy can not be predicted (we saw it before and after March 11, with Fukushima). This does not mean that each company must define its energy purchase plan in a way that suits its business (this is what we call strategy) and apply it according to the monitoring of the markets. In this second step, it is where the consultants give more help to the companies. We help them to buy in the best possible conditions.

When will we approach the rest of Europe in the way of buying energy?

When will we approach the rest of Europe in the way of buying energy?

 

It is true that European markets are more mature and there is sufficient liquidity to be able to buy energy well in advance. However, we must recognize the great effort made this year by the majority of national companies, which based on breaking molds are innovating and bringing to market products (contracts) that are close to those of their neighbors.

On the other hand, as consumers we must get used to controlling risk and therefore our energy budget, so that it adapts to our business.

We must diversify the risk.

We must diversify the risk.

 

Sometimes, national consumers think that making partial purchases in the energy market in such a way that the risk is distributed is speculating, when in fact the opposite happens. Leave the negotiation of a contract at the end of the year, thinking that the prices will be better, that is speculate. Also, that as has been demonstrated these years, it is not true.

There is not a single valid diet that is not balanced

Jeffrey Friedman: There is not a single valid diet that is not balanced&nbsp;

 For those of you who do not know Jeffrey Friedman, he is a well-known researcher specialized in molecular genetics , more specifically in the area of ​​obesity and the biological mechanisms that regulate weight .

In the mid-nineties of the twentieth century, he became famous by identifying a hormone, leptin (or OB protein), which in animal models (mice) was identified as an appetite-suppressant molecule . Very briefly, this protein would be secreted by adipocytes (among other tissues) when they already had a high amount of stored fat. Once released into the bloodstream, leptin, as a “signal” would be received by the “regulatory center” of the appetite , the hypothalamus, and promote its inhibition . A clear example of negative feedback.

This relatively simple process was contrasted quite consistently in mice, observing that some obese mice existed that, based on a mutation that codified for the formation of leptin, were unable to control their appetite. In these mice the exogenous administration of leptin, calmed their appetite and led to a reduction in weight .

The fact is that the future to treat human obesity became clearly hopeful. If this mechanism were reproducible in humans, it would have been a kind of philosopher’s stone regarding the treatment of obesity . But the reality ended up not being so simple. In the case of humans few were (and are) obese patients who maintained deficient leptin levels, in which the administration of more leptin, of more “signals” to suppress appetite, was not (and was not is) the miraculous solution for the vast majority of people suffering from obesity .

Take this introduction to the protagonist of today, Jeffrey Friedman , to get an idea of ​​his profile as a researcher and to emphasize that it is not exactly a donnadie since his past and current work is widely recognized by the scientific community. Although the thing has become very interesting with the theme of leptin and I’m sure it has set your teeth very long, is not the subject of today’s post (to see if I take time and dedicate a couple or more post, because the thing is anything but simple).

I bring up this researcher to raise their statements in this interview published

I bring up this researcher to raise their statements in this interview published

last week in El País . Beginning with the title ” There is no evidence that diets that eliminate fats or hydrates work ” that somehow summarizes their statements, it is possible that their claims can be decontextualized when, on the contrary, I find them frankly lucid and enlightening of the situation at the time of highlighting the low value of any dietary strategy in the treatment of obesity in which only the proportion of macronutrients is taken into account.

From his first answer this specialist affirms that the majority of the people and not few health professionals have an erroneous objective: it is not a matter of weighing less but of obtaining better health . Something that has defended a server countless times.

Is aspirating to be thinner positive

Answer. I think it depends on what our goals are. If someone is overweight or obese, our goal should be to improve their health . You can do that without losing a lot of weight. Eating a healthy diet and exercising to lose a little weight, very often, health problems will improve. If our goal is to improve health, I would not insist that people be thin. There is no evidence that someone who is obese is going to be better staying very thin. And more importantly, I do not think there are many possibilities to achieve it, because there is a very powerful biological system that keeps our weight and keeps our weight without major variations above or below.

In addition, I share his particular skepticism when talking about the success of any of the three classic dietary models that are usually posited for the treatment of obesity from this prism (1 low in carbohydrates, 2 low in fat and 3 low in calories with the three “balanced” macronutrients).

Do the most popular diets have a scientific basis

Do the most popular diets have a scientific basis

A: There is a lot of debate about which is the best diet to lose weight. The standard advice would be: take a balanced diet with fewer calories, and that’s it. But then there will be people who recommend you not to eat any fat, what is called the Pritikin diet, or do not eat carbohydrates, in the Atkins diet. Actually, I do not know which is the best option, because to find out we would need an experiment that is very difficult . You have to put large amounts of people on one of the two diets for a long time.

The problem with diets is that you can not look at the data in six months ; It usually takes one or two years for people to return to their weight, so you have to have large numbers of people on each of the three diets, and then you have to make observations long afterwards , in a rigorous way. The problem is that in the long term there are so few people able to maintain weight loss that you never get an answer. So I am agnostic about which of the three works. Intuitively, I would say that it is best to eat a balanced diet, but there is no evidence that this works either.

And then the lace … you can not rest the whole question of obesity in biological elements of the hunger and satiety type and that’s it . In this problem there are many other factors and interests involved as well as I have defended on multiple occasions: the food, dietetic and pharmaceutical industries, the social and cultural habits, the organization of work times, the knowledge to implement the food issue of a way or another …

But those who promote diets talk about them as if they were well tested

But those who promote diets talk about them as if they were well tested

A: If you think about obesity, it is possible that, more than any other health problem, it is at the center of many interested parties . The dieting industry is immense and has a clear message: take our diet and lose weight. The pharmaceutical industry also has interests. If we make a drug, take it and you will lose weight. In addition, the drug industry would like the rules to approve drugs to be relaxed, and the more drama there is, the better climate is for that to happen. When you want your message to reach the public, you need money, and that is why many times the message of scientists is drowned among all these interested parties who have a lot of money .

What we know works is that if you eat a balanced diet with fewer calories, you lose weight . And in those diets, carbohydrates, proteins and fats are balanced. The problem comes with diets that eliminate carbohydrates or fats, that tell you that you can eat anything and lose weight the same, it’s just about changing what we eat. I think that would be very nice, but I do not think there is any evidence that it works in the long term and that it is healthy. So it’s better that we do what we know that works .

 We are focusing on a wrong aspect . We focus on weight when we should focus on health . If you are obese and have health problems, such as diabetes or heart disease, we should think about how to improve your health. […] In fact, if you are very obese and have no medical problems , I am not sure we should do anything, beyond the recommendation that serves for the rest of eating a healthy and complete diet and exercise .

In summary, the statements of this man seem very accurate. However, I have missed one thing that in my opinion would have been a golden touch to the interview. I mean, to say that you have to eat better and when the case is less, while moving more is not saying much . The key, as I see the picture is to get the people involved to achieve that and also be happy, like it, compensate … or whatever you want to say . That is, in addition to genetically influenced biological processes, what is it that makes a person who has lost a certain amount of weight in the short term (six months) be with the same weight as at the beginning after, for example, two years ? And what’s more, what causes the patients to end up abandoning that slimming dieting pattern (diet) and turning in this direction to the exit box?

 

What's wrong with the Turkish lira and why should you worry

The collapse of the lira impacts the bags and coins and threatens to give more power to Trump

The fall of the Turkish lira infects the continental stock markets, the foreign exchange and bond markets and threatens to go further if the measures launched by the government do not take effect. The impact can reach the pockets of the ordinary citizen, with the stock market crash, the influence on the euro or a change of trend in Donald Trump’s policy .

While the president Recep Tayyip Erdogan gives a minimum space to implement measures of draft, investors continue distrusting the future of the currency. And is that in the first moments the crisis left atypical measures such as entrusting to God, ask to look for foreign currency under the pillow to exchange them for liras and prop up the currency or censor the Central Bank to act with rate hikes. The announcement of new measures does not convince.

The Trump recipe and the application in other countries

 

Behind all the crisis that Turkey is experiencing, and that is fully reflected in its currency, there are evils such as high inflation or a heavy dependence on foreign financing. The rise of rates of the Federal Reserve in the United States, which increases the dollar debt that countries such as Turkey have thrown in the context of low rates, was opening the possibility of a crisis.

The edge has been the worsening of relations with the United States, following the Turkish will to continue buying Iranian crude despite international sanctions and the arrest of US evangelical pastor Andrew Brunson on charges of terrorism. Pressing the country further, Donald Trump ordered last week to double tariffs on Turkish steel and aluminum.

A man counts Turkish lira bills 

At the moment, the Turkish and American delegations have not reached agreements so that the blood does not reach the river. If Trump’s strategy triumphs, it will serve as the basis for future actions: it could lead him to put as much pressure as possible on economic measures to other nations to achieve his goals.

The Central Bank reacts, but it is not enough

This Monday the central entity has committed to give “all the liquidity that the banks need”. A simile to the “Whatever it takes” by Mario Draghi, president of the European Central Bank (ECB), in 2012, in the midst of a crisis of risk premia in the euro zone, when he announced that everything necessary to maintain the currency would be done. The bet is maximum.

For the time being, however, liquidity comes from releasing reserves, since the mandatory minimums have been reduced so that lira equivalent to 6,000 million dollars will flow. The announcement gave some respite to the local currency, but a short time later it returned to historical lows at the junction with the dollar.

But the lack of impact of the measures continues to cast doubts. So far this year the Turkish lira has lost 40% of its value against the dollar, and the bleeding does not stop. To top it off, Erdogan’s son-in-law is in charge of finances, which shows the power of influence and decision that the Turkish president has, which links the march of the economy to the political will of the leader.

The banking plays 81,000 million

The effects of the crisis go on two major fronts. On the one hand, the banks’ exposure to Turkey worries. The European Central Bank (ECB) announced last Friday that it was closely monitoring the possible impact of the crisis on entities such as BBVA, the French BNP Paribas and the Italian Unicredit.

Spanish banks are the ones with the highest exposure to Turkey, with 80,898 million dollars (70,848 million euros), 36% of the exposure of international banking to the Ottoman country, according to the International Bank of Payments (BIS). acronym in English) consulted by Europa Press . In the case of BBVA, which has the Turkish Garanti in its portfolio, it has been asserted that it is self-financing, so that it would not have repercussions on the parent company.

Francisco González, president of BBVA 

But the doubts do not stop. The banking sector as a whole suffers in Europe. BBVA itself left 5% on Friday and another 3% drop is expected on Monday. The weight of entities in indices such as the Ibex 35 leads to stringing sessions in red and punishes shareholders. In the rest of the European parks the fear is similar, so the entities suffer.

The impact on the euro and emerging markets

On another front, fearing a contagion effect, investors in the currency take refuge in the Japanese yen – at maximum six weeks – and the Swiss franc – close to one-year highs with the euro – as well as the dollar American to a lesser extent. The Federal Reserve’s rate hike redirects investment flows from emerging countries to the American country, offering higher yields.

This strengthens them in the crossing with other currencies, with the euro losing strength, which could have an impact on the stability and recovery of the eurozone economies. It also presses the currency with the ECB’s concern about the impact on the continental entities.

The dollar, the yen and the Swiss franc are reinforced 

Thus, in Italy, the risk premium has shot up since May due to the Turkish context and doubts about the exposure of its banking to the country, as well as new difficulties in its Eurosceptic Government. The rest of the premiums held up without great variations.

On the contrary, the currencies of developing countries feel the blow of the Turkish crisis, again because of the contagion effect. It happened to the South African rand, the Russian ruble, the Brazilian real or the Mexican peso. “The big fear in the market is that we are heading for a large-scale crisis in emerging markets,” said Ulrich Leuchtmann, currency strategist at Commerzbank. The start of a new crisis on a global scale?

 

Do you need a business loan? Where do you turn?

If you need a loan for your business in Canada, you may be faced with unexpected obstacles. Banks and financial institutions are becoming more stringent in their risk assessments, and government institutions that can provide assistance are limited in the financing options they can offer to small businesses. Let’s take a look at some of the financing options available to entrepreneurs in Canada today:

The Canadian business loan market

business loan market

 

 

Getting a loan as an entrepreneur in Canada is not easy. Canadian banks are more conservative and cautious than foreign banks in terms of business lending – especially for start-ups. Here are some facts and tips to consider before you start the research capital:

The institutions that small businesses first turn to for financial assistance in Canada are banks and credit unions / caisses populaires. This poses a problem for capital-seeking entrepreneurs as banks become more and more conservative these days. Many banks have specific criteria for eliminating applications that pose a higher financial risk, with the result that many are denied business loans and are forced to seek help elsewhere.

Lenders expect a significant return on investment; the evolution of the Canadian business loan market is now leading bankers to become involved in corporate decisions as real investors. They want more than just the interest they ask you for the loan, they want the last word in your business decisions. By turning to a traditional lender, you will have to answer questions about the management of your company and may even give some control over the decisions you must make in relation to it.

These lenders will want to see a solid business plan before investing. As bankers’ criteria have tightened dramatically in recent years, expect to present a project and a clear and succinct business plan to decision makers – you will have to prove that you have thought of everything! Despite the many examples of companies that have seen their beginnings and have seen success without a business plan or a clear project, bankers will not offer you a penny without such a presentation. So make sure your business plan is up to date before you set foot in a bank!

It’s not just their money, no more! Even if you manage to convince a lender to extend credit for your business project, you may find it necessary to also contribute as a loan condition. A “collateral” where additional “security” is often requested by these cash lenders before any amount of money is approved – often a significant percentage of the requested loan.

Business Grants and Scholarships Rare

Business Grants and Scholarships Rare

 

Grants were once the method of choice for financing a small business. These allowed entrepreneurs to grow their new businesses without having to worry about repaying the debt. Unfortunately, business subsidies are becoming increasingly rare.

Scholarships were, one-time-once, simply a proof that the product or service provided by a company could contribute to the prosperity of the country in one way or another. These scholarships are not impossible to obtain, but like grants, they are less accessible and more difficult to obtain. They tend to favor the arts and culture community, and industries that offer more practical products and services have to do otherwise – artistic and entrepreneurial environments rarely fall into the same category!

Government services other than grants and scholarships

Government services other than grants and scholarships

 

While the government offers fewer options for entrepreneurs to finance their projects, it is increasingly generous with individuals looking for work or financial assistance. The Canadian Employment Office is a key resource for job seekers and retirees who want to withdraw their pensions. It offers a necessary service and its representatives offer it with good humor and efficiency. That being said, they are very limited in terms of the options they can offer to entrepreneurs and self-employed individuals. Programs offering help in a search for funding have not yet seen the light of day.

What can you do? 

 

As it is now so difficult to obtain financing through traditional methods such as banks and government institutions, you may find yourself looking for alternatives. Fortunately, there is one that is tailor-made for your needs. No detailed analysis of your business plan is necessary and it does not entail any loss of autonomy for you and your company. In addition, it does not require any “collateral” contribution from you as a loan condition.

The solution is Quebec Loans. Make an application today and a representative will discuss all alternatives with you. If you have a business and you are in need of financing, if you find that you are denied the help you need, call us! We listen and find how to work with you to grow your business and your dreams. We do not operate like a bank and we are not a government institution. We are a private organization designed to help businesses like yours find the road to success because your success is ours as well. We are waiting for your call!

Consult your doctor if you decide NOT to exercise

Image result for beer gut

As you know, the most frequent advice is usually the opposite , that you inform your doctor of your possible interest in exercising and that this one advises you the intensity, the precautions that you should take and the possible risks that you face. follow certain rules. It’s okay, it’s logical, but have you ever stopped to think about the risks that are assumed by not exercising or, in other words, the benefits of following an active lifestyle?

We often lose focus on issues that concern health and we focus too much on what to eat and what not , and we lose perspective of the magnitude of the whole situation by focusing on details, which I will not say are not important, but in Definitively they do not cease to resemble those trees that prevent us from seeing the forest. And while we are lost in that forest, we resist using one of the cheapest, most effective, beneficial and pleasurable tools to improve health, such as proper physical exercise.

It is more than contrasted that our physiology is so much more efficient when an appropriate level of physical activity is maintained. In addition, I think it is quite clear that this level of adequacy is far from being achieved in our environment. According to this monograph published in The Lancet on the occasion of the previous Olympic Games held in London, almost a third of adults would not reach the minimum of physical activity recommended in most health guides: at least 150 minutes of physical activity at the week. In the case of adolescents the situation is even more worrying, four out of five do not follow the minimum recommendations (for them, 60 minutes a day of physical activity) … and of course, there is no way.

Most, if not all, of public or private health institutions put the accent on the benefits of maintaining at least a minimum level of activity in our lives. What happens is that many times and against what should be this advice , that “for your health keep physically active”, is lost in a maremágnum of much more immediate and daily advice especially in relation to eating . Therefore, I believe that the promotion of greater physical activity should be prioritized in front of many others with the certainty that, fortunately, if one stays active, they usually end up eating better (and vice versa); as I expressed in this post: The contagiousness of good habits of life

Keep in mind that physical inactivity is associated with an increase in mortality, morbidity and a poorer quality of life . Therefore, if you decide NOT to do physical activity and taking into account the risk situation in which this decision leaves you, I think it would be best if you tell your doctor. Let’s see what it says.

If, on the other hand, you have decided to “do something” and get up to speed, but you do not know how, surely a good professional of the sciences of physical activity and sport can help you to advise you in your circumstances (possibilities, likes, time …)