All posts by Michelle Grathers

About Michelle Grathers

Michelle Grathers is an international tax expert. She has consulted for a variety of firms and high net worth individuals on all tax- and legal-related issues. She also helps new companies develop payroll services, statutory audits and mergers and acquisitions. Contact Michelle at michelle[at]businessdistrict.com

US Expands Sanctions on Russia

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The Obama administration angered Putin and the Kremlin by sanctioning 34 additional individuals and entities for assisting Russian and Ukrainian companies to avoid US penalties and other punishments.

The expansion of the sanctions will help to “maintain the efficacy of existing sanctions” which were put in place in reaction to the Russian annexation of the Crimea last year and for the support that Russian has given to eastern Ukrainian separatists.

Fourteen of the 34 are connected to “serious and sustained evasion,” or are divisions of firms already on the sanctioned list. The treasury department said that six separatists and two ex-government officials from the Ukraine are “complicit” in corruption, or in weakening the Ukrainian government. US citizens are restricted from doing business with those on this list, and any US assets held by these entities are now frozen.

The new sanctions match those put in place by America’s allies and demonstrate Washington’s “unwavering resolve to pressure Russia to respect the security and sovereignty of Ukraine,” John Smith, the acting sanction boss of the treasury department said.

Kremlin spokesman Dmitry Peskov responded to the US move:

“This is a continuation of the unfriendly line against Russia that runs counter to logic, ” he said.

Farmers and Oil Companies Unhappy with Levels of Biofuels in Gasoline

Energy News, , ,
Biofuel picture from La Jolla. La Jolla is biotech mecca. Photo courtesy of Steve Jurvetson.

In order to comply with legislation enacted ten years ago, the US Environmental Protection Agency ordered a small increase in the amount of renewable fuels blended into gasoline. Neither oil producers nor biofuel producers are happy with the percentages.

This year’s gasoline supply will have to have 16.93 billion gallons of corn-based ethanol and other renewable fuels mixed into it; while the 2016 supply will have to include 18.11 billion gallons of renewable fuel. Too much for big oil, but not enough for ethanol farmers.

The numbers are a compromise; they are above the levels proposed by the EPA in May, but are substantially lower than the amounts mandated by law, which refiners have said are “unrealistic.”

“With today’s final rule, and as Congress intended, EPA is establishing volumes that go beyond historic levels and grow the amount of biofuel in the market over time,” announced Janet McCabe, the acting assistant administrator for EPA’s Office of Air and Radiation. She added that the final rule will “provide for ambitious, achievable growth.”

In 2005 Congress initiated a program to slowly but steadily increase the percentage of biofuels to be blended into the US gasoline supply. The law was enacted with two goals in mind: to help free the US from its dependence on foreign sources of oil for gasoline, and to also reduce the carbon footprint of gasoline emissions. The fight over amounts of biofuels to be mixed in has pitted oil companies against farmers in the mid-west, where corn is grown to be the source for ethanol, and important biofuel.

World Bank Bracing for US Rise in Interest Rates

Economy, Emerging Markets, , ,

US interest rates, which have been hovering near zero for about 6 years, are expected to rise as the US economy continues its slow but steady recovery. The World Bank is closely watching what the US Federal Reserve will do, and when, and is expecting when that day finally does arrive, developing economies might be in for some hard times.

The hike in interest rates could come as early as this Thursday, when the Fed winds up a policy meeting. In a report issued by the World Bank they warn that such a rise could have a modest impact on developing countries, but also adds that there is a chance that the fall-out could be worse.

The World Bank has several reasons for their concern. They believe that a rise in interest rates could interfere with capital flows into developing countries, which can lead to stifling of economic growth, which could then lead to financial instability.

Despite their warning, they also site several reasons to be optimistic. First of all, any increase in interest rates will happen gradually, allowing developing economies to cope more easily with any changes. They also point out that any changes in rates will happen within the context of a strong, growing US economy, which usually bodes well for the global economy in general.

Sequeira Appointed President of Takeda Pharm

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Japan Headquarters of Takeda Pharmaceuticals
Japan Headquarters of Takeda Pharmaceuticals

Ramona Sequeira has been selected to become president of the US Business Unit of Takeda Pharmaceuticals USA, the wholly-owned subsidiary of Japan-basedTakeda Pharmaceutical Company Limited.

As president Saqueira will head all business operations for the US. He will workd directly under Christophe Weber, President and CEO of Takeda.

“The U.S. is a critical market for Takeda’s future growth, and I am confident that with her strong commercial experience and knowledge of the U.S. healthcare environment, Ramona is the right person to lead this important business unit and play a key role on my

leadership team,” said Weber. “Her more than 20 years of leadership experience and track record of success across multiple healthcare markets, as well as her demonstrated passion for patient centricity, will serve as a critical foundation during Takeda’s global transformation.”

Sequeira was previously Vice President of Lilly USA at Eli Lilly and Company as well as the General manger of Lilly’s UK Hub. She is experienced in a wide range of therapeutic disciplines including neuroscience and primary care. She has experience working in the US, Canada and the UK.

Create a Better Work Environment for Employees and Save Money

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happy workersAccording to a recent Gallup poll poor management is costing the United States from $450 billion to $550 billion per year in lost revenue. The single most important cause of this loss is a disengaged workforce. The poll revealed that out of 100 million full-time employees in the country, about 70 percent feel uninspired and alienated from their jobs. Compounding the problem is the large number of employees who quit their jobs.  In June 2014 more than 2.5 million people quit their jobs, and the number seems to be on the rise.

One coaching and leadership company, CMOE, did a survey to find out what components characterize a strong work environment.  Their goal was to find out how to help companies to get rid of poor managers, reduce or eliminate high employee turnover and disengagement.

CMOE discovered that there are three main components to creating a successful organization:

•    Helping others learn and grow
•    Have a positive attitude
•    Solve problems effectively and efficiently

In addition, leaders should be strategic and forward thinking. They should have good communication skills. Having long-term  goals also helps to inspire employees.