Financial Measure – Amiya Sahu http://amiyasahu.com/ Fri, 24 Jun 2022 01:59:45 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://amiyasahu.com/wp-content/uploads/2021/06/icon-150x150.png Financial Measure – Amiya Sahu http://amiyasahu.com/ 32 32 European banks pass US Fed stress test and show strong capital levels https://amiyasahu.com/european-banks-pass-us-fed-stress-test-and-show-strong-capital-levels/ Thu, 23 Jun 2022 23:48:00 +0000 https://amiyasahu.com/european-banks-pass-us-fed-stress-test-and-show-strong-capital-levels/ WASHINGTON/LONDON, June 23 (Reuters) – U.S. units of major European lenders including Deutsche Bank, Barclays and Credit Suisse passed the Federal Reserve’s annual “stress tests” on Thursday, showing they hold enough capital to cope with an economic shock. For the seven Fed-supervised European banking subsidiaries with more than $100 billion in assets, the average capital […]]]>

WASHINGTON/LONDON, June 23 (Reuters) – U.S. units of major European lenders including Deutsche Bank, Barclays and Credit Suisse passed the Federal Reserve’s annual “stress tests” on Thursday, showing they hold enough capital to cope with an economic shock.

For the seven Fed-supervised European banking subsidiaries with more than $100 billion in assets, the average capital ratio — a measure of the cushion a bank has to deal with potential losses — remained well above the regulatory minimum. by 4.5%.

It was also higher than the average ratio for the wider group of 34 banks tested, according to an analysis of the results by Reuters. Read more

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The average capital ratio of the seven European lenders was 15.2%, compared to 9.7% for the 34 banks.

Deutsche Bank’s US operations had the highest ratio of any bank at 22.8%, while Credit Suisse was the third highest in the group with a ratio of 20.1%. HSBC was the laggard of the foreign peloton with a ratio of 7.7%.

As part of its annual stress test set up in the wake of the 2007-2009 financial crisis, the Fed assesses how banks’ balance sheets would fare in the face of a hypothetical severe economic downturn. The results dictate how much capital banks need to be healthy and how much they can return to shareholders.

This year’s very adverse scenario has seen the economy contract by 3.5%, partly due to a fall in the value of commercial real estate assets and the unemployment rate which has climbed to 10%.

The other four European subsidiaries tested were UBS America Holdings, Santander Holdings USA and BNP Paribas USA.

While the scenarios were designed before Russia’s invasion of Ukraine and a sharp rise in inflation, the tests should reassure policymakers that major European lenders are resilient enough to withstand a possible recession this year or in early 2023.

The Bank of England said this month it was pleased that lenders were no longer “too big to fail”, although it called for more clarity on the amount of liquidity including three big banks, including HSBC (HSBA.L), would need if they were to be liquidated. down in a future crisis. Read more

The European Banking Authority is set to conduct its next EU-wide stress test in 2023, but investors are on high alert for evidence of declining asset quality in European banks, as borrowing rates are beginning to rise from historic lows.

In 2020, the Fed changed how the test works, removing its “pass-fail” model and introducing a more nuanced capital regime.

See an EXPLAINER on stress tests here: find out more

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Reporting by Michelle Price and Sinead Cruise, editing by Deepa Babington

Our standards: The Thomson Reuters Trust Principles.

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Social inequalities have become a priority for investors https://amiyasahu.com/social-inequalities-have-become-a-priority-for-investors/ Wed, 22 Jun 2022 08:34:50 +0000 https://amiyasahu.com/social-inequalities-have-become-a-priority-for-investors/ When the European Union adopted the concept of dual materiality in the Corporate Sustainability Reporting Directive, requiring investors to consider the risks companies outsource to people, business movement and human rights. man has won a significant victory. Today, the notion of dual materiality is also taking shape in a different form beyond Europe: in growing […]]]>

When the European Union adopted the concept of dual materiality in the Corporate Sustainability Reporting Directive, requiring investors to consider the risks companies outsource to people, business movement and human rights. man has won a significant victory. Today, the notion of dual materiality is also taking shape in a different form beyond Europe: in growing investor concerns about systemic risks, including inequality.

Systemic risks are risks that affect the economic system as a whole, creating “systematic portfolio risk” for an investor’s entire portfolio. Large institutional asset owners and asset managers, by their size, own hundreds or even thousands of assets. Their wallets imitate the market and give rise to their status as “universal owners”. These financial players, who collectively own more than 40% of the market, are less concerned about the risks for individual companies than about the systemic risks for their entire holdings. Extreme inequality is a systemic risk, along with climate change and the spread of authoritarianism.

Systems-level investing therefore means that for those investing across the entire global economic system, considering the impacts of climate or inequality solely on the earnings of a single company is insufficient to address risk. total portfolio. More significant are the risks the business poses to people and the planet that affect economic, social and environmental (ESG) sustainability.

If a company’s operations promote global inequality, it harms the company’s ability to create value.

To help investors and regulators address systemic inequality and its destabilizing economic impacts, a Financial Inequality Disclosures (TIFD) Task Force is being developed, which builds on the efforts existing standards. Inspired by the successful adoption of the Task Force on Climate-Related Financial Disclosures (TCFD), the TIFD is a systemic risk management framework created through collaboration between investors, civil society, businesses, financial regulators , policy makers and academics to help all market players. know how to reduce inequalities created by the private sector. In an effort to align with the Sustainable Development Goals (SDGs), the TIFD aims to launch in 2025 with guidance targets, metrics and thresholds for businesses and investors to measure and manage their impacts on inequalities, as well as the impacts of inequalities on the performance of companies and investors. . Stakeholders can use the TIFD to assess private sector performance and hold companies to account.

While certain types of investors may be looking for quick profits, their ultimate clients are often institutions with longer time horizons and broader goals. Universal owners such as large pension funds and sovereign wealth funds, which collectively account for $33 trillion, tend to have a better eye on systemic risks than their asset managers. The TIFD is well placed to involve those ultimate investors at the top of the “capital markets value chain” – the owners and allocators of assets – in assessing their long-term investment objectives and the impact of inequality on them.

When an asset manager contributes to inequality, or a universal owner such as BlackRock or Vanguard is slow to recognize its own interest in reducing inequality, trustees of pension funds and sovereign wealth funds have an interest, as trustees workers and citizens, to hold them accountable . Asset owners can influence the behavior of asset managers and companies through commitment, asset allocation, investment structuring, trading conditions, shareholder resolutions and votes for directors. With the TIFD in place, asset owners will have the tools to integrate inequalities into their goals, incentive structures and KPIs for asset managers and businesses.

When a universal owner such as BlackRock or Vanguard is slow to recognize its own interest in reducing inequality, administrators of pension funds and sovereign wealth funds have an interest in holding them accountable.

What is the place of human rights? Just as the human rights framework is an essential element for achieving the SDGs, international human rights are at the heart of the TIFD project. The TIFD uses the United Nations Guiding Principles on Business and Human Rights (UNGPs) to define normative thresholds of objectives and measures that will be communicated by companies so that investors know whether the company is operating in these limits. For example, a living wage indicator could serve as an inequality threshold when measured over a period of years and combined with other indicators such as within-company income inequality and union density. and collective bargaining coverage.

The judges who determine whether corporate impacts have exceeded human rights thresholds are the rights holders themselves. When human rights are respected and businesses operate within social foundations and ecological boundaries, they create value for society and ultimately for investors.

This is why the TIFD process must engage with rights holders. Most disclosure frameworks are designed by a select group of Northern technocrats, but technocrats are not well placed to fully grasp inequality and its root causes. To be effective and legitimate, it is those who experience inequality who must be around the table to define it. The TIFD will convene thematic working groups in which this diverse coalition of stakeholders will synthesize empirical evidence on the root causes of inequality with existing corporate and investor disclosure and risk management frameworks, fill gaps and will build on this work to define measures, targets and thresholds.

Upside-down risks — the risks that companies pose to socio-economic equality and human rights — are an issue of interest to investors. Even when considered from the point of view of the interests of investors, the double materiality is therefore self-evident.

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Mehlville School District Considers Potential Future Ballot Measure – St. Louis Call Newspapers https://amiyasahu.com/mehlville-school-district-considers-potential-future-ballot-measure-st-louis-call-newspapers/ Mon, 20 Jun 2022 21:39:31 +0000 https://amiyasahu.com/mehlville-school-district-considers-potential-future-ballot-measure-st-louis-call-newspapers/ The deposit could be used for facilities or a tax levy to meet competitive salaries Voters in the Mehlville School District could consider a ballot measure for the school district in the form of a bond, a tax levy, or both over the next four to six years. In a strategic plan update at the […]]]>

The deposit could be used for facilities or a tax levy to meet competitive salaries

Voters in the Mehlville School District could consider a ballot measure for the school district in the form of a bond, a tax levy, or both over the next four to six years.

In a strategic plan update at the June 9 board of education meeting, Superintendent Chris Gaines told the board the district faces a series of financial challenges that may require ballot action. to offset their effects, including stagnating state formula funding for public schools, rising commodity costs, escalating construction costs, and the need to keep salaries competitive. The district has the second lowest mixed tax rate in St. Louis County.

A 2021 court ruling also changed how local tax districts could calculate taxes, which affected all school districts in the state, including Mehlville.

Gaines said the district has been able to address some of those challenges by reprioritizing capital projects and changing the district’s debenture-type equity certificate reallocation plan. Like all public school districts, Mehlville also received federal Elementary and Secondary Education Emergency Relief, or ESSER, funds to mitigate and address learning loss due to the pandemic.

Gaines told the board that according to state and federal government data, Mehlville has used 86% of its ESSER funds to date to address learning loss, however, the funds expire in 2024.

“Those are the moves we can make. You go beyond those moves, the community is going to have to decide because anything beyond that will require some type of ballot measurement,” Gaines said. “As we look at the challenges ahead of us, it just forces us to recalculate consistently.”

The district has several options for when and how it asks voters to approve another ballot measure. If he wishes to keep the positions currently funded by ESSER – learning interventionists, student mental health supports, after-school supports – voters would need to be asked for a levy in either 2022-23 or 2023-24. A levy to meet competitive salaries could also be requested in the same years. In 2023-24, the district could terminate Proposal A—the 2016 bond that increased the district’s capital projects fund by 4 cents—early and request another facility bond measure. Proposal A could be extended with an increase in 2024-25 or 2025-26, or the district could seek another facility tax to address HVAC and ongoing facility upgrades.

The earliest the district could ask for anything would be the Nov. 8 ballot, which would require a council decision and the necessary information to St. Louis County by Aug. 30.

“For example, if – capital I, capital F, underline, bold, all that – if the council was going to ask for something in November, that decision would have to be made … a bit before (Aug. 30.),” Gaines said. “We can see it like this: if we were to keep the ESSER funded positions, what are the possible years that we could do that?… Competitive salaries… that’s probably something that could be looked at at any time Finish the Proposal Early, there’s really only one window to do it.

Board Chair Peggy Hassler said the district would benefit from collecting data on how ESSER-funded learning interventions and other supports are improving students’ academic performance. if the district planned to ask voters to approve a ballot measure.

“In the past, we had discussed that we would like to see data and keep data on improvements. So if we’re going to go back to taxpayers to see if they would support retaining staff, we need data on what good that would do,” Hassler said.

Director Scott Huegerich said it might be worth pointing out that 86% of ESSER money was used for apprenticeship clawbacks if the district decides to pursue a ballot measure over the next two months. school years to maintain positions funded by ESSER.

“I think it’s remarkable that the federal government wants to highlight the Mehlville School District because we used 86% of our ESSER funds for learning recovery. This is absolutely exceptional and anyone familiar with the district’s fiscal performance should take note,” Huegerich said. “I guess what I’m trying to do is look at this from a community messaging perspective because if we ask them – the ESSER funds are going to disappear, we want to maintain that staff – we have to show in a tangible way in an easy to understand way what we’re accomplishing by keeping these people in. It’s a very easy story to tell to the community.

Gaines said there was concern about the “cliff edge” approach for school districts that used ESSER funds for employee salaries, and that Mehlville had always approached ESSER-funded positions as a resource. ended without additional funding mechanism.

“I know districts across the country, they used every penny of that money to support employee salaries. It’s going away, what are you going to do with it? I think there is concern that a cliff is approaching for some school districts,” Gaines said. “So the conversation has changed if we want to keep (the ESSER-funded positions), more resources have to come into play.”

The last ballot measure in the district was Proposition S in 2021, a $35 million no-tax-rate increase bond for facilities and safety upgrades. In 2015, voters approved Proposition R, a 49-cent increase in the school district’s property tax.

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Is financial and stock market instability the last hope for equities? https://amiyasahu.com/is-financial-and-stock-market-instability-the-last-hope-for-equities/ Sun, 19 Jun 2022 05:22:00 +0000 https://amiyasahu.com/is-financial-and-stock-market-instability-the-last-hope-for-equities/ The Federal Reserve’s dual mandates, approved by Congress, are price stability and maximum sustainable jobs. These goals are intended to dictate monetary policy and the Fed’s longer-term goals and strategies. Recent experience, however, asserts that preventing financial and market instability trumps congressional decree. The illustration below of the Federal Reserve Bank of Chicago helps visualize […]]]>

The Federal Reserve’s dual mandates, approved by Congress, are price stability and maximum sustainable jobs. These goals are intended to dictate monetary policy and the Fed’s longer-term goals and strategies. Recent experience, however, asserts that preventing financial and market instability trumps congressional decree.

The illustration below of the Federal Reserve Bank of Chicago helps visualize its mandates. The “Dual Mandate Bullseye” puts forward its objectives of an underlying inflation rate of 2% and an unemployment rate of 4.1%.

Fed Dual Mandate Bullseye Chart

The Fed is currently way off the mark. As we share below, it sits about 4% above the Fed’s target, and about 0.5% below its target.

Fed Dual Mandate Update

Fed Dual Mandate Update

To deal with soaring inflation, the Fed is taking aggressive action that could increase unemployment and slow the economy, but hopefully reduce inflation.

Higher interest rates and balance sheet reduction (QT) are not good for stock prices. Investors need to consider the pain the Fed is willing to inflict on stock prices to hit their target. Moreover, besides significantly lower inflation or a surge in the unemployment rate, what could allow the Fed to deviate from its objectives and save stock prices?

We present the third self-imposed objective of the Fed, the prevention of financial and market instability.

History of the third objective

As the “bankers bankthe Fed has made clear through its actions that monetary policy will also be used to maintain financial and market stability and protect the financial sector. Financial and market stability encompasses the proper functioning of capital markets. Many times in the past, when financial markets became illiquid and stressed, or even when instability seemed imminent, the Fed came to the rescue with liquidity.

Just look back to 2019. In August 2019, the Fed lowered the fed funds rate, restarted QE, and offered liquidity to institutional investors through repo transactions.

Then, the unemployment rate was 3.7%, 0.4% below its target. , the Fed’s preferred inflation measure, was 1.85%, 0.15% below its target. The Fed relieved. Given their mandates, the Fed should have tightened monetary policy.

Rather than forcing some investors to deleverage, which could destabilize markets, they provided liquidity. The Fed has thrown its Congress-mandated targets out the window. Instead, the protection of large investors and the prevention of financial and market instability prevailed.

The Fed Put Option

Over time, financial instability has become the Fed’s key call to action. In the minds of many investors, financial instability is not only about helping financial institutions in need, but also about stopping falling stock prices. Such a Fed reaction is often referred to as a Fed Put.

The influence of the Fed, directly, indirectly and in the mindset of investors, has increasingly resulted in a positive correlation between returns and Fed policy. When monetary policy is accommodative, stock prices and valuations tend to rise. Conversely, when the Fed tightens policy, stocks tend to show weakness.

With a very hawkish Fed pushing interest rates higher and embarking on an aggressive QT program, the Fed’s third target may be investors’ only hope that the Fed will stop the market’s hemorrhage.

Federal funds and leverage

The Fed chart below shows that the Fed used an abnormally low federal funds rate to help fuel debt-led growth. Fed Funds should trade at or above the rate of inflation. When fed funds are below the rate of inflation, as it has been for the past 20 years, it implies that the Fed is pushing rates below what economic conditions and a free market would warrant.

Fed funds and CPI chart

Financial instability increases as the real Fed Funds rate becomes positive. The reason for this is that too much financial/speculative leverage relies on low rates. As rates rise, liquidity fades and leverage must be reduced. Consider the brief period when real fed funds were positive in 2019 and the “financial instabilitywhich ensued. 2006 and 2007 is another example.

The Fed isn’t just interested in fed funds or Treasury yields as a measure of stability. They are also concerned about corporate borrowing rates. In particular, the spread between corporate borrowing rates and Treasury yields. The wider the spread, the more illiquid the market conditions for corporate debt. Illiquid market conditions can lead to bankruptcy, as we saw in 2008.

Corporate and Bank Yield Spreads

Below, we share some popular bond market metrics to gauge where corporate and bank bond yield spreads stand today relative to historical spreads.

The chart below shows that the spreads between BBB and B-rated corporate bond yields relative to Treasury bill yields of the same maturity are high. However, the current spreads pale in comparison to those seen in 2008 and other liquidity events. While corporate bond market spreads can widen rapidly, these sectors do not have financial stability issues today.

Chart of corporate and bank yield spreads

Chart of corporate and bank yield spreads

The TED spread or the Treasury Eurodollar spread measures the cost of borrowing in dollars for foreign banks relative to Treasury yields. Similar to the analysis of corporate bond yield spreads, widening spreads can be a precursor to potential liquidity issues.

As shown below, the spread recently reached its highest level since the financial crisis. Since then, it has tightened. Like many other measures of financial stability, the TED spread is above normal but not close to worrying levels.

EFILE Allocation Table

Stock volatility

The Fed Put is the market’s way of telling the Fed to support the market if it falls enough. “Enough” is often considered a loss of between 10 and 20%.

In , we state:

More importantly, volatility is not just a mathematical calculation. Volatility measures liquidity! And liquidity defines risk.

In illiquid markets, price fluctuations tend to be extreme and often lead to financial instability. Accordingly, we compare current levels of implied and realized volatility to historical readings.

Realized, or historical, volatility is retrospective. It is a statistical measure of the price movement of an asset over a previous period.

Implied volatility is derived from option prices. It gauges what investors think the volatility will be in the future.

The chart below shows that annual and implied volatility is high but well below the levels seen during the financial crisis and the early days of the pandemic. Currently, both levels are only an extended standard deviation from their standards. A variation of three or more standard deviations would probably be destabilizing.

Implied and realized volatility

Implied and realized volatility

Summary

We can measure financial stability in several ways. The most popular ones we highlight show that financial instability is not a current problem.

However, like summer storms, financial instability can appear quickly and cause significant damage. We hear that there are liquidity issues in the short-term mortgage and treasury markets. So, while traditional measures of volatility are not alarming, we need to remain vigilant as liquidity problems spread rapidly.

It is crucial to keep in mind that the threshold for a Fed “instability” U-turn is much higher than in the past. Given the stubbornness of the recent inflation spurt, the economic damage it is inflicting on much of the population, and mounting political pressures, the Fed will not be able to react quickly to premonitions of financial instability. . Unless inflation comes down quickly, it will tolerate above-normal volatility. This can likely lead to higher credit spreads and lower stock prices.

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Swedish central bank picks FSA’s Thedeen as new head as Ingves era ends https://amiyasahu.com/swedish-central-bank-picks-fsas-thedeen-as-new-head-as-ingves-era-ends/ Fri, 17 Jun 2022 13:41:00 +0000 https://amiyasahu.com/swedish-central-bank-picks-fsas-thedeen-as-new-head-as-ingves-era-ends/ Ingves steps down after 17 years as Riksbank Governor The head of financial monitoring will take office at the end of the year New leader must balance inflation worries with economy STOCKHOLM, June 17 (Reuters) – Sweden’s central bank said on Friday it had appointed Erik Thedeen, head of the national financial regulator, as its […]]]>
  • Ingves steps down after 17 years as Riksbank Governor
  • The head of financial monitoring will take office at the end of the year
  • New leader must balance inflation worries with economy

STOCKHOLM, June 17 (Reuters) – Sweden’s central bank said on Friday it had appointed Erik Thedeen, head of the national financial regulator, as its new chief, ending speculation over who will replace longtime governor Stefan Ingves when he leaves at the end. of the year.

With the war in Ukraine dragging on and no sign of inflation abating, Thedeen will struggle to balance policy tightening against the risk of an economic slowdown.

Ingves has headed the Riksbank since 2006, while Thedeen has worked in the finance ministry, headed the Nasdaq stock exchange in Stockholm, the government’s debt office and currently heads the Swedish Financial Supervisory Authority (FSA).

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“His experience in managing financial authorities and organizations makes him well suited to become the new governor of the Riksbank,” the central bank’s General Council said in a statement.

Thedeen and Ingves have previously clashed over the central bank’s role in financial stability, with Ingves believing that the Riksbank should have major political responsibility there instead of the FSA.

Thedeen’s appointment could see some formal supervisory powers transferred to the Riksbank, Capital Economics said in a note.

“At the margin, more active macroprudential policy going forward could limit the scale of rate hikes needed in future tightening cycles,” said David Oxley, senior economist for Europe at Capital Economics.

The replacement for Senior Deputy Governor Cecilia Skingsley, who earlier this month said she would step down in August and has been widely tipped to succeed Ingves, has yet to be announced.

NEW LAND

Ingves, who led the overhaul of Sweden’s financial system after a crash in the early 1990s, oversaw a turbulent time at the central bank.

The Riksbank cut rates below zero after the 2008-09 financial crisis – an untested measure – to push inflation towards the central bank’s 2% target.

Rates have remained negative for about five years and the central bank has drawn widespread criticism for pursuing ultra-loose policy long after the economy has recovered from the crisis.

During the pandemic, Ingves was again forced to innovate, with the central bank launching a program of asset purchases, loans and other measures to keep the economy afloat.

Many analysts disagreed with the decision to buy mortgage-backed bonds, fearing it could further fuel an overheated housing market, as well as corporate bond purchases.

Although the measures have helped stabilize the economy, household debt levels remain a concern, especially as the Riksbank embarks on what is expected to be a series of rapid rate hikes. Read more

Thedeen will serve a six-year term. He will take office on January 1 and attend the monetary policy meeting in February 2023.

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Reporting by Stine Jacobsen and Simon Johnson; Editing by William Maclean, Chizu Nomiyama and Tomasz Janowski

Our standards: The Thomson Reuters Trust Principles.

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We can’t create social impact until we learn how to measure its success https://amiyasahu.com/we-cant-create-social-impact-until-we-learn-how-to-measure-its-success/ Mon, 13 Jun 2022 05:16:19 +0000 https://amiyasahu.com/we-cant-create-social-impact-until-we-learn-how-to-measure-its-success/ Monday, June 13, 2022 6:15 a.m. eBay provides Love Island reality show contestants with second-hand outfits to showcase sustainable clothing. Today, it’s more common than before for young people to think about a company’s ethics before whipping out their contactless cards. Companies are therefore under pressure to show their positive impact on society – to […]]]>

Monday, June 13, 2022 6:15 a.m.

eBay provides Love Island reality show contestants with second-hand outfits to showcase sustainable clothing.

Today, it’s more common than before for young people to think about a company’s ethics before whipping out their contactless cards. Companies are therefore under pressure to show their positive impact on society – to attract customers and talent.

Morgan Stanley recently reported that millennials are twice as likely to invest in companies targeting social or environmental goals. That change was also picked up last week when Love Island changed its sponsor from a fast fashion brand to eBay, which now dresses the show’s contestants in second-hand outfits to showcase sustainable clothing.

Simply put, people are increasingly likely to invest in organizations that have a positive impact on society – whether it’s the coffee they buy, the food they eat or the bank they choose. to have a savings account.

As a result, companies are not only creating more environmentally and socially conscious products and services, but also considering their broader footprint.

COP26 showed that mobilizing private capital will be a crucial factor in solving the environmental challenges we face. I am very proud of the UK’s role as a global leader in funding the net zero transition – but we can always go further.

We know that creating the right conditions for financial markets to increasingly deliver positive social impacts will be key to making this a reality. Yet ESG measures have primarily focused on environmental impact.

So if we are serious about creating a ‘just transition’ – ensuring that net-zeroing is inclusive, so that communities in the UK and overseas are not left behind – we need to consider account of the social impact of companies.

However, understanding the impact of a business is difficult for two main reasons. First, defining what constitutes a positive social impact can be tricky. Second, data on social impact measurement differs widely from organization to organization.

We need to fix this so that investors can recognize where companies are generating positive and measurable social and environmental impact, alongside financial return.

The City of London Corporation, in partnership with the Impact Investing Institute and KPMG, will host the Finance for Impact Summit at The Mansion House on July 18. Leaders from finance, business, government and other institutions from around the world will discuss how we can better harness investments for the good of people and the planet.

The summit will build on commitments made at COP26 and the work of the G7 Impact Task Force to improve the transparency and accountability of impact finance.

We will hear recommendations on how the financial and professional services industry can be more ambitious when integrating social considerations into sustainable finance strategies alongside environmental considerations.

The summit will also kick off a “Just Transition Finance Challenge” for asset managers and asset owners. It will be a new coalition of investors, all committed to raising capital for impact investing.

Every financial decision we make has an impact. Through this work, not only will the UK continue to be a global leader on the ESG agenda, but we will help ensure that any impact of our financial decisions is positive.

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Ministers set to reject key food strategy review proposals https://amiyasahu.com/ministers-set-to-reject-key-food-strategy-review-proposals/ Fri, 10 Jun 2022 20:22:24 +0000 https://amiyasahu.com/ministers-set-to-reject-key-food-strategy-review-proposals/ Ministers plan to reject key recommendations from a major review of England’s food strategy as Boris Johnson seeks to win back support from right-wing MPs and avoid hitting households with new spending amid the cost crisis of life. The review, led by Henry Dimbleby, founder of the Leon restaurant chain, was commissioned in 2019 by […]]]>

Ministers plan to reject key recommendations from a major review of England’s food strategy as Boris Johnson seeks to win back support from right-wing MPs and avoid hitting households with new spending amid the cost crisis of life.

The review, led by Henry Dimbleby, founder of the Leon restaurant chain, was commissioned in 2019 by Michael Gove and was billed as the first independent assessment of the whole of England’s food system in 75 years.

Dimbleby released the second of two reports last year and called for urgent changes to UK food production in a bid to tackle obesity and climate change.

On Monday, Environment Secretary George Eustice will unveil the government’s food strategy white paper, the official response to the Dimbleby-led review.

But a draft of the document, seen by the Financial Times, rejects Dimbleby’s recommendations to introduce a sugar and salt reformulation tax, guarantee farm subsidies until 2029 or invest £1billion in agriculture. innovation in the food system.

The rejection is the latest example of Johnson’s government backing away from policies perceived as ‘un-conservative’ or ‘anti-business’ as the embattled prime minister, who survived a confidence vote of just 59-41% on Monday , is trying to rebuild support within his party.

The draft white paper, dated May 2022, says the government accepts “much of the analysis” and “the majority of the recommendations” from Dimbleby’s review.

Ministers plan to advance initiatives such as mandatory health reports for large food companies and support for alternative proteins such as plant-based meat substitutes and lab-grown meat.

But they rejected his call for a new tax of £3 per kilogram of sugar and £6 per kilogram of salt sold for use in processed foods, restaurants and catering.

Dimbleby had said the measure could bring in £2.9-3.4 billion a year, with some of that revenue being used to buy fresh fruit and vegetables for low-income families.

Government officials said it would be politically foolish to introduce the new tax as households grapple with a wider cost of living crisis. “Same [Dimbleby] realizes you can’t do it right now when the families are under stress,” one said.

The move comes weeks after ministers opted to delay measures to curb junk food promotions and advertising which were due to come into force in October, again citing the cost of living crisis.

Dimbleby urged the government to secure the current farm payments budget until 2029 to help farmers switch to more sustainable methods. However, the draft document ignores this request and reiterates the commitment to preserve the budget in the current parliament, or until 2024.

An Eustice ally said: ‘We don’t want to tie the hands of a future government.

The document also does not accept a recommendation that the government allocate £1billion to food innovation – although ministers plan to set up a ‘What Works Centre’ to gather evidence on new farming methods, a another of Dimbleby’s ideas.

The white paper does not adopt a recommendation to label foods with their environmental impact, but undertakes to modify labeling related to animal health and welfare.

The report has been rewritten since Russia’s invasion of Ukraine with more emphasis on food security. He says the UK is highly self-sufficient in wheat, beef, milk, lamb, poultry and carrots, with a total food ‘production to supply ratio’ of 74%.

But the government will push for greater production of certain products, such as cucumbers and tomatoes, which currently come mainly from abroad. The report argues that national production could be increased through better use of greenhouses.

Rob Percival, head of food policy at the Soil Association, said the white paper was “not ambitious enough and represents a huge missed opportunity”.

Louisa Casson, head of food and forestry at Greenpeace UK, said: “Ministers turned a blind eye to the vast majority of recommendations from the independent review they themselves commissioned. They ignore science and their own experts.

Dimbleby declined to comment. Defra, the environment department, also declined to comment.

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Live updates: Staff shortages force Lufthansa to cancel 900 flights https://amiyasahu.com/live-updates-staff-shortages-force-lufthansa-to-cancel-900-flights/ Thu, 09 Jun 2022 13:25:06 +0000 https://amiyasahu.com/live-updates-staff-shortages-force-lufthansa-to-cancel-900-flights/ The UK has prepared an ‘alternative’ to EU science programs as membership talks stall, the Minister for Science, Research and Innovation has said. “We in this country have voted to leave the European Monetary and Political Union,” George Freeman told the Financial Times’ Investing in Space conference on Thursday. Freeman said the majority of his […]]]>

The UK has prepared an ‘alternative’ to EU science programs as membership talks stall, the Minister for Science, Research and Innovation has said.

“We in this country have voted to leave the European Monetary and Political Union,” George Freeman told the Financial Times’ Investing in Space conference on Thursday.

Freeman said the majority of his voters voted to leave the EU, but “didn’t want to leave Europe’s scientific, cultural, artistic, defense and security network at all”.

“There is a mechanism in the Northern Ireland protocol for the settlement of disputes, there is no mechanism to use Horizon, Euratom and Copernicus as a negotiating tool,” he said, referring to the EU science programs.

Freeman traveled to Brussels on Wednesday in a last-ditch attempt to persuade the EU to unlock the UK’s participation, which was agreed as part of the EU-UK trade and cooperation agreement.

“Yesterday, for the sixth time, I was prevented from having meetings with the Commission,” Freeman said. “If we are blocked by Copernicus, I am determined to make it an opportunity to invest the same money. . . and working with other countries and developing a very strong commercial Earth observation sector,” he added.

The UK would switch to “Plan B” if its membership of joint science projects was not resolved “in the weeks and months to come”, Freeman said. “We have been in lockdown for 18 months, I cannot allow our science and research and industry sectors to be benched. . . without any security or trust,” he added.

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NC treasurer pushes for charitable patient care in legislation https://amiyasahu.com/nc-treasurer-pushes-for-charitable-patient-care-in-legislation/ Tue, 07 Jun 2022 21:40:44 +0000 https://amiyasahu.com/nc-treasurer-pushes-for-charitable-patient-care-in-legislation/ RALEIGH, North Carolina Passing legislation requiring North Carolina hospitals to provide minimum levels of free or reduced-cost care to low- and middle-income residents not covered by insurance and offer generous reimbursement options is the “moral thing to do,” State Treasurer Dale Folwell said Tuesday. A bipartisan measure, which was discussed but not voted on by […]]]>

Passing legislation requiring North Carolina hospitals to provide minimum levels of free or reduced-cost care to low- and middle-income residents not covered by insurance and offer generous reimbursement options is the “moral thing to do,” State Treasurer Dale Folwell said Tuesday.

A bipartisan measure, which was discussed but not voted on by the House Banking Committee, is in part a response to a 2021 study for the state employee health plan that Folwell’s charity care agency oversees. .

“This is a pro-consumer, anti-poverty bill, and it’s time we got together and moved on in the name of the invisible people, not the million-dollar (hospital) leaders. dollars,” Folwell, a Republican, told the panel. The odds of the bill advancing through this year’s session appear dim given the dwindling number of weeks remaining in Raleigh and the complexity of the measure.

The 2021 report, brought together with Johns Hopkins University, found that the majority of the state’s largest nonprofit hospital systems do not provide charitable care to uninsured or underinsured people who are approaching relief. federal, state and local taxes they receive.

The result is that patients can’t afford the expensive services they’ve received, leading to cycles of medical debt that “weaponize” their credit scores and ability to succeed, said Folwell, a former member of the Chamber and Treasurer since 2017.

The measure would require hospitals, clinics and certain other health care providers to adopt medical debt mitigation policies and screen patients before demanding payment to help them find insurance or credit options. ‘assistance.

Free and discounted care for amounts not covered by insurance would be on a sliding scale of up to 600% of federal poverty levels. If a debt is incurred, the hospital cannot charge interest and must cap monthly payments. The legislation also requires disclosure of health care service charges and Medicare reimbursement rates.

The North Carolina State Employees Association and the North Carolina Coalition Against Sexual Assault defended the bill, which would also allow the state attorney general and citizens to sue for damages. if the requirements are not met.

The North Carolina Health Care Association, which represents for-profit and nonprofit hospitals, did not take a position on the bill, spokeswoman Cynthia Charles said in an emailed statement.

Charles said the federal law already addresses several of the bill’s requirements, and the 2013 General Assembly legislation addresses many billing and collection practice issues. She explained the many ways hospitals and healthcare systems help consumers meet their financial obligations.

“To suggest that hospitals ‘weaponize’ medical debt is nothing but political grandstanding,” she wrote. “Hospitals are doing more than any other part of healthcare to help vulnerable patients.”

The legislative sponsors of the measure appear to be struggling to fight before legislation can advance this session, which is already expected to end around July 1.

“At this time, this bill, in my humble opinion, is not ready for prime time,” said Rep. John Szoka, a Cumberland County Republican and committee member, adding that he had several concerns. Szoka said he was ready to work with sponsors and Folwell’s office to rework it.

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Divergent May Wholesale Trends https://amiyasahu.com/divergent-may-wholesale-trends/ Mon, 06 Jun 2022 05:34:39 +0000 https://amiyasahu.com/divergent-may-wholesale-trends/ The Indian automotive industry continues to see diverging volume trends across segments. We estimate that May wholesale sales, compared to 2019, were up 22% for PVs, 39% for tractors and 4% for trucks, but fell 28% for 2Ws. TTMT Stands Out With Wholesale Sales 82% Above 2019; MM/MSIL were 20-28% higher, AL/TVSL/EIM (RE) were +/- […]]]>

The Indian automotive industry continues to see diverging volume trends across segments. We estimate that May wholesale sales, compared to 2019, were up 22% for PVs, 39% for tractors and 4% for trucks, but fell 28% for 2Ws. TTMT Stands Out With Wholesale Sales 82% Above 2019; MM/MSIL were 20-28% higher, AL/TVSL/EIM (RE) were +/- 2%, but BJAUT/HMCL were 25-34% lower. Compared to our estimates, volumes were better for HMCL/AL, lower for BJAUT and consistent for the rest.

PV is doing well: The passenger vehicle (PV) industry had a good month in May with wholesale sales up around 22% compared to May 2019. Comparisons with 2021 and 2020 are not very significant as Covid has impacted volumes over the past two years. PV registrations were also 11% higher than in 2019.

Both Maruti and Mahindra mentioned that volumes remain affected by supply chain issues. According to the dealer association, channel inventory was flat at 15-20 days in April and remained below the normal level of 4-5 weeks. Tata reported another strong month with wholesale domestic PV sales at 3.5x from May 2019; its domestic PV volumes surpassed Hyundai (NC) for the second time in the last 6 months. Tata’s electric vehicle volumes increased by 49% mum. Mahindra’s SUVs were also 29% higher than May 2019, while Maruti and Hyundai’s domestic wholesale sales were similar to May 2019, up 11% mom (better than historical seasonality).

Retail sales followed a similar trend with May registrations down 14% from May 2019. Domestic wholesale sales were 53% lower than May 2019 for Bajaj, 19-27% lower for TVS and HMCL and 11% lower for Royal Enfield (RE). 2W exports were down around 11% year-on-year in May, with volumes down 15% for Bajaj and 7% for TVS. Good month for tractors; Decent Trucks: Tractor industry wholesale sales in May were about 39% higher than 2019, while registrations were 28% higher. Both Mahindra and Escorts stressed that rural sentiment is positive, driven by good harvest achievements and the expectation of a normal monsoon.

We estimate that truck industry wholesale sales were about 4% higher than May 2019, and the mom’s decline was less than historical seasonality. Truck registrations in the month were 6% lower than in 2019; however, electronic freight bills, a measure of road freight movement, remained strong with 28% year-on-year growth in April (43% from April 2019).

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