Markets have entirely recovered after their wobble earlier this week, but it’s based on a simple belief: central banks will stand behind markets. Investors are increasingly convinced inflation threats are irrelevant – and they are wrong to do so. Inflation risks are growing from immediate climate change, the costs of rising environmental instability and inflation leaching out of financial assets into the real economy.
Its “Freedom Day” in the UK, but it feels same as, same as. Bond markets look stressed, but freak weather is raising the probability government intervention dwarfing the scale of the pandemic may become necessary. There will not be a gradual, ordered progression to a new higher temperature climate. Instead… the reality looks like high-cost chaotic freak-weather events becoming increasingly common. The cost could hit trillions.
The dramatic global weather seen in June could be a wake-up call for us all. Green-bond huggers and ESG-compliant investment committees are determined to do the right thing to get us carbon neutral by whenever, but the climate crisis may be upon us now… which means we need immediate solutions – like insurance and how to mitigate the enormous and escalating potential costs of weather events like “heat-domes”, storms, flood and drought. Today. Not Tomorrow.
Finally, proof Football is more deadly than Tennis. And, as the UK proudly climbs onboard the Gigafactory bandwagon, are we heading for a Hindenburg Moment?
The International Energy Authority (IEA) is grabbing all the climate change headlines with its demands for Carbon Zero by 2050 and increased spending on renewable energy. The IEA now represents the consensus – the received wisdom. How achievable are their targets? Or will economic reality and rising costs of climate abatement result in something very different? It’s easy to demand neutrality – but will be frighteningly difficult to achieve.
Seaspiracy is a shocking, flawed, yet critical film. It should set the market thinking about what sustainability really means, addressing how we skirt the real issues on climate change and environmental degredation. It should provide a much-needed kick up the a**e to box-ticking ESG investment stupidity.
Demand for the EU’s Social Bond deal was strong as ESG funds scramble to find qualifying assets, but just how much ESG is enough? Has ESG got overly Woke?
Seven factors to understand the market shift that’s roiling markets; bond yields and inflation, distortion, recovery, leverage, tech vs reality, exuberance, and value.
Blain’s Morning Porridge – 8 Feb 2021: Triumph in Adversity “The one thing that overcomes bad luck is hard work”…
New York Times: 2020 was the joint-hottest year on record (with 2016). Stark headlines remind us of the urgent need to address climate change.