June 10, 2016

Forbes - Skype For Cash: How TransferWise Is Upending The Way Consumers Move $3 Trillion Around The Globe 5-15min

Since banks charge transaction fees and bake in markups to exchange rates, the duo’s frequent currency transfers were costing them a small fortune. One year Käärmann thought HSBC had lost some of his Christmas bonus because 500 euros less than expected arrived in his account. ... The Estonian software engineers devised a simple solution: Hinrikus would transfer euros from his Estonian bank account into Käärmann’s Estonian account, while Käärmann would transfer pounds from his British HSBC account to Hinrikus’ at Lloyds. This would save them on international transfer fees, as well as on currency drag since they used the real exchange rate, known as the midmarket rate. Soon they had a Skype chat going with other Estonians who wanted to exchange money this way. Eventually this Skype-linked money exchange forum morphed into TransferWise. ... TransferWise uses a system not unlike the ones big financial institutions use to “cross-trade” securities, without incurring costs or commissions, by internally matching buyers and sellers. In this case the official midmarket price offers clarity–neither side is speculating–so it’s simply a balancing process, as TransferWise’s computers simultaneously verify that both sides have the money ready to swap. Indeed, its matching system means funds rarely cross international borders. ... The company is now producing roughly $5 million in revenue a month versus about $1 million per month a year ago. ... Of the $150 trillion in currency-transfer volume annually, the consumer portion amounts to an estimated $3 trillion. ... Still, that’s a decent-size market, with the revenue generated from it exceeding $45 billion.

Smithsonian - Kill All the Mosquitoes?! 5-15min

A. gambiae has been called the world’s most dangerous animal, although strictly speaking that applies only to the female of the species, which does the bloodsucking and harms only indirectly. Its bite is a minor nuisance, unless it happens to convey the malaria parasite, Plasmodium falciparum, for which it is a primary human vector. Although a huge international effort has cut malaria mortality by about half since 2000, the World Health Organization still estimates there were more than 400,000 fatal cases in 2015, primarily in Africa. Children are particularly susceptible. The Bill and Melinda Gates Foundation prioritized malaria in its more than $500 million commitment to fight infectious disease in developing countries. ... Humans have been at war with members of the family Culicidae for over a century, since the pioneering epidemiologist Sir Ronald Ross proved the role of Anopheles in malaria and U.S. Army Maj. Walter Reed made a similar discovery about Aedes aegypti and yellow fever. The war has been waged with shovels and insecticides, with mosquito repellent, mosquito traps and mosquito-larvae-eating fish, with bed nets and window screens and rolled-up newspapers. But all of these approaches are self-limiting. Puddles fill up again with rain; insects evolve resistance to pesticides; predators can eat only so much. ... If Crisanti’s approach works, you could, in theory, wipe out an entire species of mosquito. You could wipe out every species of mosquito, although you’d need to do them one at a time, and there are around 3,500 of them, of which only about 100 spread human disease. You might want to stop at fewer than a dozen species in three genera—Anopheles (translation: “useless,” the malaria mosquito), Aedes (translation: “unpleasant,” the principal vector for yellow fever, dengue and Zika) and Culex (translation: “gnat,” responsible for spreading West Nile, St. Louis encephalitis and other viruses).

Bloomberg - The Untold Story Behind Saudi Arabia’s 41-Year U.S. Debt Secret < 5min

The goal: neutralize crude oil as an economic weapon and find a way to persuade a hostile kingdom to finance America’s widening deficit with its newfound petrodollar wealth. And according to Parsky, Nixon made clear there was simply no coming back empty-handed. Failure would not only jeopardize America’s financial health but could also give the Soviet Union an opening to make further inroads into the Arab world. ... The basic framework was strikingly simple. The U.S. would buy oil from Saudi Arabia and provide the kingdom military aid and equipment. In return, the Saudis would plow billions of their petrodollar revenue back into Treasuries and finance America’s spending. ... The current tally represents just 20 percent of its $587 billion of foreign reserves, well below the two-thirds that central banks typically keep in dollar assets. Some analysts speculate the kingdom may be masking its U.S. debt holdings by accumulating Treasuries through offshore financial centers, which show up in the data of other countries. ... While oil’s collapse has deepened concern that Saudi Arabia will need to liquidate its Treasuries to raise cash, a more troubling worry has also emerged: the specter of the kingdom using its outsize position in the world’s most important debt market as a political weapon, much as it did with oil in the 1970s.

Sports Illustrated - Back to her roots: How Katie Ledecky became so dominant in the pool 5-15min

Being immersed in the mostly white, mostly privileged slice of the DMV (District-Maryland-Virginia), of overinvolved adults and overscheduled kids, I’ve seen plenty of young Katie Ledeckys. I know it’s not just comfort that kills the drive for athletic greatness. It’s options. It’s perspective—the knowledge that deep down, hitting a baseball or swimming fast is hardly the most common route to success. ... On paper Ledecky is like many of the area’s elite, only more so. ... And yet, Ledecky has a relentlessness that even family can have trouble grasping: She swims as if it’s a matter of rent and food. After recording, at 15, the second-fastest time in history to win the 800 in London, she spent the next four years taking full ownership of the event ... She has never lost a major international race.