Biden unveils plan to handle local weather change dangers to financial system

United States President Joe Biden delivers September vacancy remarks in the South Court Auditorium in the Eisenhower Executive Office Building in Washington, DC on October 8, 2021.

Chip Somodevilla | Getty Images

The Biden government on Friday unveiled a government-wide plan to address the systemic threat climate change poses to all economic sectors.

The roadmap is part of the longer term agenda of the White House to cut domestic greenhouse gas emissions by almost half by 2030 and transition to a net zero emissions economy by mid-century while mitigating the effects of climate change on the economy.

Increasing climate-related disasters such as heat waves, droughts, floods and forest fires threaten the stability of the global financial system.

Extreme weather events this year Affected 1 in 3 Americans, according to federal disaster statements and interrupted supply chains across the country. Extreme weather for the past five years cost Americans According to the National Oceanic and Atmospheric Administration, more than $ 600 billion in damage.

The government’s plan takes into account how climate change is affecting the businesses people invest in and aims to protect the savings and pensions of American families with retirement plans. Climate-related risks in retirement plans have cost US retirees billions in lost retirement funds, according to a White House leaflet.

The Department of Labor “is making efforts to remove regulatory barriers and ensure that benefit plan trustees can incorporate material climate-related risks into their investment decisions,” the report said. “These efforts will better protect the savings of American workers and their families from the effects of climate change and could also mobilize capital for sustainable investment.”

The roadmap also shows how authorities can strengthen infrastructure resilience in response to worsening climate disasters. It shows how authorities can use federal procurement to address climate-related financial risks and incorporate climate-related risks into federal lending and budget planning.

This month, more than 20 federal agencies did published climate adaptation plans Identify the greatest threats climate change poses to your businesses and facilities and how you intend to deal with them.

“Climate change poses a risk to our economy as well as to the lives and livelihoods of Americans, and we must act now,” said national climate advisor Gina McCarthy on Thursday during a press briefing. “This roadmap isn’t just about protecting our financial system – it’s about protecting people, their paychecks and their wealth.”

“We have a clear focus on how climate change poses a systemic risk to our economy,” said Deputy Director of the National Economic Council, Bharat Ramamurti, at the press conference. “We take a precautionary approach that recognizes that inaction is not an option.”

The report is entitled “A Roadmap to Build a Climate-Resilient Economy”.

President Joe Biden has also called on the Treasury Secretary Janet Yellen, the head of the Board of Directors for Financial Stability and financial regulators to report on financial climate risk data. This report has not yet been published.

The President and the First Lady are traveling to Europe in two weeks, with the global climate crisis in the foreground of Biden’s agenda. Biden will also be traveling to Glasgow, Scotland, to attend the Parties’ UN Climate Change Conference, or COP26, in early November.

Fed might tighten cash coverage this 12 months, inflation dangers low

Federal Reserve chairman Jerome Powell said the central bank could start reversing its monetary policy as early as this year – predicting that inflation, while worrying, is temporary and will ease in the coming months.

At the Kansas City Federal Reserve Bank’s annual symposium, Powell highlighted job growth and economic recovery and said, “It may be appropriate to start slowing asset purchases this year.”

Powell added that the $ 120 billion reduction in monthly bond purchases shouldn’t hurt the economy. “Even after our stock purchases end, our increased holdings of long-term stocks will continue to support accommodative financial conditions,” he said.

Powell did not say when the Fed would hike rates – a topic of discussion at the September 21st Fed meeting – but suggested that it was not imminent. Ahead of a rate hike, Powell said the Fed would try to keep inflation at 2 percent and ensure employment growth is sustained.

The Delta variant turned the Fed’s plans to meet in person in Jackson Hole on its head – and could also undo all plans to hike interest rates.AP

“The timing and pace of the impending reduction in asset purchases is not intended to be a direct signal of the timing of future rate hikes,” added Powell.

Powell’s speech comes as the debate over inflation and bond purchases reaches a climax. On Thursday and Friday, four different Federal Reserve officials called for an end to policies as inflation spikes.

The meeting, which is typically held in Jackson Hole, Wyoming, was held virtually for the second year in a row. Conference organizers announced just last week that they were moving from a face-to-face event to a virtual format for fear of the ultra-contagious Delta variant.

The recent surge in coronavirus cases hampered both the conference and the Fed’s plans to slow the pace of bond purchases and potentially hike rates. Still, Powell said he believed Delta was only a “short-term” risk.

In a Friday morning interview with CNBC, Loretta J. Mester, President and CEO of the Federal Reserve Bank of Cleveland, said, “We just don’t need the same type of accommodation that we needed at the height of the crisis, and I’m comfortable with it we met our conditions. “

Chairman Jerome Powell’s message boosted markets – the Dow won more than 200 points after his speech.AP

Powell spent much of his speech discussing inflationary concerns, noting that responding to inflation can “do more harm than good” because inflation is often “transitory”.

“Inflation at this level is of course worrying. But that concern is mitigated by a number of factors that suggest these elevated levels are likely to prove temporary, ”he said.

Market watchers paid close attention to Powell’s remarks – and appeared largely satisfied with his message. After his speech, the Dow Jones industry average rose more than 227 points to 35,440.50 on Friday.

UK dangers Italy-style decline as financial challenges mount – think-tank

Skyscrapers in the financial district of the City of London can be seen from City Hall in London, Britain, on May 8, 2021. REUTERS / Henry Nicholls

Britain faces a decade of major political challenges that could bring economic performance closer to that of Italy than Germany, Europe’s powerhouse, a think tank said Tuesday.

The Resolution Foundation said the UK needs to address Brexit-related issues on top of those of other countries, including the impact of COVID-19, the transition to a net carbon-free economy, an aging population and technological change.

Without proper planning, Britain risked the slowest productivity growth in over 120 years in the past decade and higher inequality than any other country in the European Union except Bulgaria.

“The UK’s recent record of poor productivity, stagnant living standards and high inequality makes a new economic approach desirable,” said Clive Cowdrey, founder of the Resolution Foundation.

“What makes a new approach essential is the extent of the changes to come.”

Prime Minister Boris Johnson has pledged to “level” the UK economy by targeting investment and jobs in areas lagging behind London and in areas around the capital. He also speaks of a “global Great Britain” after leaving the European Union.

However, the Resolution Foundation said the UK has no plan to meet these goals over the next decade and the country is risking wasting economic strengths such as high employment levels that are now being jeopardized by increasing automation.

When the Resolution Foundation launched an investigation with the London School of Economics’ Center for Economic Performance, it said Italy had seen no growth in GDP per capita in the past two decades, while Britain had recently fallen further behind Germany.

“If the UK’s pace of underperformance against Germany continues at the same pace in the 2020s, it will end this decade with a GDP per capita much closer to Italy than Germany,” the think tank said.

The research is funded by the Nuffield Foundation, a charity that funds social policy research.

Our standards: The Thomson Reuters Trust Principles.

Interview: PSG Star Neymar Jr. On Fashion, Sustainability & Taking Dangers

Last night (April 13), PSG’s Neymar da Silva Santos Junior showed the world once again in a game against Bayern that he is one of the purest and most unfiltered football players. His unmatched, world-class feats of technique, cunning and skill have impressed fans of the game for over a decade, but dropped a Man of the Match feat to send PSG to the Champions League semi-finals – despite not scoring a goal have a goal – proven what it is about.

The Brazilian star didn’t have to put numbers on the board last night to prove he’s one of the greatest natural sports talents of our time. His ability to light up competitions, leave defenses on strings and viewers mesmerized by every flicker, feint and flick is really something to see. Neymar looks like he’s at the peak of his powers, but it’s not just his skill on the field that is thriving.

Off the field, Neymar is more lucrative than ever. In late 2020, he signed a long-term contract with PUMA that made him the face of the brand and the undisputed star of the show. Neymar has now connected with his stock, the highest that has ever existed Super dry– a step that the imprint describes as a “milestone in their history” – in which they teamed up with the baller to bring their message of a sustainable style closer to a global audience. He helps advance Superdry’s sustainable vision for the future of fashion. The brand aims to obtain all pure cotton products from organic cultivation by 2025 and is already supporting 20,000 farmers in India with the transition to organic farming as part of its “Grow Future Thinking” initiative.

After signing another major contract that cemented his status as one of the most marketable athletes in the world, we met with Neymar to discuss his off-pitch style, vision of sustainable fashion and the importance of football for more inspired the environment.

“The European Championship? I’m not particularly interested in the European Championship. I’m focusing on Copa America and Brazil definitely has to win. “

Shares are buying and selling on reopening optimism, however dangers stay

The stock market is betting on reopening optimism, which will cause technology stocks to fall and cyclical stocks to rise in Tuesday’s session, CNBC’s Jim Cramer said.

While key averages were all down at close of trading, Cramer said the action was defined by a decline in consistent operators and an increase in sporadic boom-and-bust stocks.

“It’s all about optimism folks. Investors vote with their feet.”Bad money“Host said.” You’re leaving those secular growth stories, the stocks of companies that do well regardless of whether the economy is hot or cold. Instead, they find their way into stocks of companies that only make big bucks when business is booming. “

The comments come after the overall market pulled back on Monday’s gains that followed a tough sell-off last week. The Dow Jones industry average Tuesday fell 144 points to 31,391.52, down 0.46%. The S&P 500 pulled back 0.81% to 3,870.29. The tech heavy Nasdaq Composite fell 1.7% to 13,358.79.

The S&P sector indices, with the exception of materials, also traded lower during the session. The market was toughest in tech and consumer staples, with both indices dropping more than 1% along with the Nasdaq.

Cramer said the market activity reflects investors betting on the chances that citizens will soon be able to drop their Covid-19 protective masks and that states will soon be dropping coronavirus restrictions thanks to the country’s advances in vaccines The economy can return to normal. Still, a tug-of-war remains between those who are optimistic and those who are cautious, he added.

The governors of Texas and Mississippi on Tuesday announced plans to lift mandates to wear masks and all restrictions on doing business in their states.

“You bet we’ll soon be able to rip our masks off and get back to normal, and that’s the core of this market right now,” Cramer said. “Right now, it’s the people who believe our long national nightmares are over. They are the ones who win.”

However, he warned that the moment in the market is still prone to risk. Cramer said the country could reopen too quickly and that variants of the virus, such as the strain first spotted in South Africa, could lead to further spikes if the country drops its guard.

While President Joe Biden expects to sign a $ 1.9 trillion stimulus package that will be on its way through Congress later this month, any hiccups in Senate enforcement could hit the market impact.

“There’s still a lot that could go wrong,” said Cramer.

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