How Wall Street is Securing the Climate Change Movement

Daniela Gabor, a professor at the University of the West of England, Bristol, an expert on shadow banking and capital controls, a survey of what happened at the United Nations conference in Glasgow, Scotland. She focuses on what central banks and investment firms have announced there, in a publication called Phenomenal World, published by the Jain Family Institute, was founded by Bobby Jain, co-chief investment officer of hedge fund giant Millennium Management.

Central banks have missed the opportunity to scale back private lending to carbon activities, she said. What they can do is explicitly penalize dirty lending in both monetary policy and regulatory frameworks, and bring private capital into the purview of the regulatory regime, so that fossilized assets jelly is not transferred from one owner to another. Instead, they opted for what she calls a 2019-style voluntary decarbonisation effort, about disclosing climate risks and stress-testing scenarios.

Gabor has broken down the $130 trillion in assets that were supposed to be allocated to achieve net zero emissions, from Glasgow Financial Union for Net Zero. That figure, she points out, is just the aggregated assets of the registrars, many of which are released to fund dirty operations. Furthermore, investment managers including BlackRock
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running $57 trillion pledges to decarbonize 20% of emissions by 2030, not the 50% that scientists say is needed to keep warm within 1.5 degrees Celsius.

She noted that John Kerry, the president’s special envoy for climate, had talked about combining finance and investing to mitigate risk to get “bankable deals.” “This is the mantra of the Wall Street Consensus: the state and development aid, including multilateral development banks, should support the trillions of dollars managed by private finance,” Gabor said. status or assets of the Sustainable Development Goals”. Each of the five initiatives from GFANZ follows the logic of new state-backed asset classes.

In her words:

Together they make up an alphabet soup of Wall Street Consensus initiatives. Financing to Accelerate Sustainable Transitional Infrastructure (FAST-infrastructure) targets the labeling of sustainable infrastructure assets, an extension of the Infrastructure asset class G- 20. Likewise, Institutional Fundraising Through Listed Product Structure (MOBILIST) leverages securitization products (yes, shadow banking) to fund SDG. The Innovative Financing Initiative for the Amazon, Cerrado and Chaco (IFACC) has boldly argued that deforestation and ecosystem destruction are caused by the lack of appropriate financial tools for farmers. The Climate Finance Leadership Initiative (CFLI) identifies India as a pilot country for concerted efforts to mobilize private finance under new models to finance sustainable infrastructure. and build public-private partnerships, including with national governments and multilateral organisations. The Global Energy Alliance for People and Planet aims to accelerate the energy transition by mobilizing $100 billion in private and public capital.

Her sobering conclusion is not only that private finance is trying to describe its green performance. “This is pretty predictable. The more worrisome development is that the state is not only prepared to financially get out of it, but also ready to subsidize the climate devastation guaranteed by this path,” she said.

Chart

Monthly data from Finra shows another spike in margin debt at brokerages, currently hitting $1 trillion. “This type of stock market leverage doesn’t predict when the market will crash. What it predicts is that when this market goes down hard enough, it will trigger mass sales as margin orders take place and leveraged investors have to sell shares to pay off margin. fund, which would then push the price down even lower. , which then causes more forced selling, and more concerns about being forced, as the portfolio is being liquidated, thus accelerating the boom,” said Wolf Richter at Wolf Street Blog.

Buzz

The House of Representatives is expected to pass $2 trillion in spending on education, health and climate Friday morning, as the legislation then faces an uncertain path in the Senate.

A decision on who President Joe Biden will pick as the next Federal Reserve chairman could be made on Friday, if the timeline suggested by the president earlier in the week is accurate. Jerome Powell has chosen a key remark that favors, if not outright confirmation, from Senator Joe Manchin after a meeting. Fed Vice Chairman Richard Clarida will also speak.

Austria announces nationwide lockdown could take three weeks to deal with the increased coronavirus cases, days after the announcement of the shutdown for unvaccinated people only. The rise in cases in Austria is the worst in Western Europe but other countries – notably the Netherlands, Germany and the UK – are also facing increased infections.

Application materials
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+ 1.77%

decline in pre-market trading, as noted by the microchip maker earnings and sales were worse than forecast, while forecasting current-quarter revenue below estimates.

Furniture retailer Williams-Sonoma
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+ 4.26%

gave a revenue outlook that beat Wall Street estimates and beat third-quarter numbers, but remains under pressure as the stock has more than doubled in the past 12 months.

HR-HR-software manufacturer Working day
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recorded slightly higher revenue than Wall Street estimates and said it will pay $510 million for VND, a vendor-managed technology provider.

Market

Short-term Austrian news leaves markets volatile, despite stock futures
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was mixed as the opening approached, with Nasdaq-100
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contracts higher and are on track for a new record. Yield on Treasuries
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slide down 1.55% and the euro
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weakened on Austrian news.

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