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☆ Liquidity rules need rethink after Silicon Valley Bank crash, says Carney
▼ + stars: | 2023-04-04 | by ( Huw Jones | ) www.reuters.com time to read: +2 min

The collapse of Silicon Valley Bank in the United States last month highlighted the "greater flightiness" of desposits, particularly those of small business clients, Carney told a Reuters Breakingviews podcast. Over $40 billion left Silicon Valley Bank in 24 hours, leaving authorities confronting a new risk: the social media bank run as depositors can withdraw cash with just a few taps on their phone. These buffers should also count a bank's access to central bank liquidity as part of their calculations, he added. The United States has generally applied Basel standards only to its biggest banks, which did not include Silicon Valley Bank. Bank of England Deputy Governor Sam Woods told lawmakers last week that bank liquidity rules might now be an open question for international policymakers.

☆ Bank bail-ins, and how to prevent climate bailouts: podcast
▼ + stars: | 2023-04-04 | by ( George Hay | ) www.reuters.com time to read: 1 min

LONDON, April 4 (Reuters Breakingviews) - Mark Carney helped design the post-2008 system for resolving bust lenders. In this episode of the Exchange, the ex-Bank of England governor tells George Hay what he makes of last month’s rescue of Credit Suisse, and how to limit future financial sector hits from climate change. Listen to the podcastFollow @gfhay on TwitterSubscribe to Breakingviews’ podcasts, Viewsroom and The Exchange. Editing by Thomas ShumOur Standards: The Thomson Reuters Trust Principles. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

LONDON, March 31 (Reuters) - A member of a United Nations-backed coalition of insurance firms and pension funds seeking to tackle climate change told Reuters it was considering quitting after disagreements about curbing investment in the oil and gas sector split the group. The row is the latest in a string of policy splits among major climate coalitions of financial firms. AkademikerPension wanted the position paper to state that NZAOA members should only invest in public equities or corporate bonds when the companies involved are no longer investing in exploration for new oil and gas. German insurer Munich Re (MUVGn.DE) said earlier on Friday it was withdrawing from another alliance of insurers focused on reducing carbon emissions to avoid antitrust risks. "I think it's going to be extremely difficult for a plaintiff, even a government enforcer, to prevail on an antitrust theory of harm," said Mitnick.

Despite SVB's demise knocking the value of banks globally, particularly European lender Credit Suisse, U.N. climate envoy Mark Carney said he, too, did not expect a "material" impact on climate tech funding. "At a minimum, this will likely drive continued tightening of investments and a push to have their portfolio companies cut (cash) burn," it said in a note. Mona Dajani, partner at law firm Shearman and Sterling, said most of her clean energy clients either banked with SVB or faced some other impact from its troubles. SVB "cultivated a reputation as being very friendly to clean energy... they were willing to underwrite more risk," she said. "Not all the companies are going to make it and now that’s happening to climate companies."

☆ Fed’s reluctance to go green will cost the Earth
▼ + stars: | 2023-03-07 | by ( Ben Winck | ) www.reuters.com time to read: +8 min

WASHINGTON, March 7 (Reuters Breakingviews) - Central banks don’t think they can do much about the environment. The U.S. Federal Reserve has done even less, arguing it should not tackle climate change without an explicit order from Congress. In a 2021 survey by Invesco, 63% of responding central banks said addressing climate change fell within their mandate. Central banks aren’t best equipped to lead the green transition, anyway. There’s also a valid concern that focusing on climate change could water down the Fed’s mission to fight inflation.

☆ Why the dollar keeps winning in the global economy
▼ + stars: | 2023-02-28 | by ( Francesco Guerrera | ) www.reuters.com time to read: +7 min

The outsized role played by the United States in capital markets, trade and debt reinforces the status quo. Unless the global economy undergoes a complete overhaul, the dollar will remain on top. America may have never “run on Dunkin’”, as the donut-maker’s slogan claimed, but the global economy runs on the dollar. The United States has spurred the search for alternatives by wielding its currency as a weapon against its adversaries. The greenback’s function as the lubricant of global economic activity has another important effect: a stronger dollar curbs global trade.

☆ 4 ways to pay for the climate crisis, according to Al Gore and other leaders at Davos
▼ + stars: | 2023-01-18 | by ( Freya Graham | ) www.businessinsider.com time to read: +6 min

Panel speakers said philanthropy is often overlooked when thinking about the climate finance gap and that it could act as vital leverage. Michael Wilkins, executive director and professor of practice at the Centre for Climate Finance & Investment at Imperial College Business School, welcomed the comments made by panelists at Davos. "Philanthropy has been crucial in research and development for climate finance and its development," Wilkins told Insider. "The private sector has to join the public sector," Gore said. The solution is not just about scaling up climate investment, though, according to Gore.

While governments worldwide are grappling with high inflation and low growth, UK policymakers are still rebuilding fiscal and political credibility following the brief, chaotic premiership of Liz Truss. Worries about growth are leading some investors to limit their holdings of the pound and British debt. Reuters GraphicsForeign investors have traditionally been attracted by Britain's strong rule of law, stable governance and thriving financial and professional services sector. In the latest data, up to the second quarter of this year, FDI represented more than half the net outflow - a result of strong UK investment abroad but weak inward investment too. Stephen Welton, executive chairman of major growth capital investor BGF, said attracting foreign investment was like a global competitive sport - one that Britain had previously excelled at.

☆ Indonesia’s green step not yet a leap for mankind
▼ + stars: | 2022-11-18 | by ( George Hay | ) www.reuters.com time to read: +8 min

That’s where the private sector comes in, and why Just Energy Transition Partnerships (JETPs) are a potential game changer. More significantly, seven international banks, including HSBC (HSBA.L), (0005.HK), Citigroup and Bank of America (BAC.N), have promised to match that amount. International Finance Corporation figures show that “concessional” finance extended by public bodies at below-market rates can often attract 10 times its own level in private finance. The GFANZ working group will need to ensure Jakarta is sticking to its side of the decarbonisation bargain. The GFANZ group includes Bank of America, Citigroup, Deutsche Bank, HSBC, Macquarie, Mitsubishi UFJ Financial Group and Standard Chartered.

Nov 10 (Reuters) - Origin Energy Ltd (ORG.AX), Australia's no.2 power producer and energy retailer, backed an A$18.4 billion ($11.8 billion) non-binding buyout offer from a consortium led by Canada's Brookfield Asset Management, the companies said on Thursday. The deal sent Origin's share price soaring nearly 40% in early trade to A$8.14. Origin opened its books to the consortium after it raised its offer to A$9 per share in cash, a near 55% premium to Origin's last close of A$5.81. The bid from Brookfield comes after it was rebuffed earlier this year when it led a $3.5 billion takeover offer for Australia's top power producer, AGL Energy (AGL.AX). Under the indicative proposal submitted on Thursday, Brookfield would acquire Origin's energy markets business, while MidOcean Energy, the other consortium partner, would take control of Origin's integrated gas business, including its 27.5% stake in Australia Pacific LNG (APLNG).

☆ Guest view: Climate finance club hands over baton
▼ + stars: | 2022-11-08 | by ( Huw Van Steenis | ) www.reuters.com time to read: +7 min

A year after financial institutions joined forces to lower carbon emissions as part of the Glasgow Financial Alliance for Net Zero, the initiative faces criticism from all sides. But the initiative is starting to hit the limits of what financial institutions can achieve through voluntary cooperation. Chief executives of financial institutions worry that participating in GFANZ opens them up to accusations of anti-competitive behaviour and litigation risk. It’s for politicians to set the legislative framework and financial institutions to abide by it. This could double or treble by increasing development banks’ capital, by changing their capital frameworks and mandates, or through smarter public-private partnerships.

☆ 'The old UK growth model is dead': What a long-term weak pound means for Britain
▼ + stars: | 2022-11-07 | by ( Jenni Reid | ) www.cnbc.com time to read: +5 min

watch nowA historically weaker pound on a medium- to long-term basis has a variety of impacts on the U.K. more broadly, economists told CNBC. But, Portes said, the weaker pound is not in itself an issue for the fiscal planning the government is currently doing, with a much-anticipated budget due Nov. 17. 'Growth model is dead'According to Blyth, beyond the pain suffered by households, the higher prices caused by a weaker currency will have deeper and longer-lasting effects. The potential upside to exports was negated by Brexit, he said, pointing out that the U.K. economy had declined from 90% to 70% of the size of Germany's since the 2016 vote. It means that the old U.K. growth model is dead," Blyth continued.

☆ Factbox: COP26 a year later: Where do last year's climate pledges stand?
▼ + stars: | 2022-11-01 | by ( ) www.reuters.com time to read: +7 min

Nov 1 (Reuters) - A year ago at the U.N. climate talks in Glasgow, Scotland, countries, banks and business leaders announced a slew of climate plans and pledges. METHANE PLEDGETo date, 119 countries and blocs including the United States and the European Union have joined the COP26 pledge to slash methane emissions 30% from 2020 levels by 2030. And China could also give an update on its plan to begin monitoring methane emissions - a promise made under the U.S.-China agreement announced in Glasgow. The group now counts more than 550 members, including most of the world's leading banks, insurers and asset managers, with collective assets of more than $150 trillion. read more And last week, climate activists criticized GFANZ for dropping a requirement that its members sign onto a U.N. emissions reduction campaign.

Race to Zero members agree to "phase out development, financing and facilitation of new unabated fossil fuel assets, including coal," in line with science-based scenarios. Environmental advocates are concerned that GFANZ members won't be held to that standard or others without their commitment to Race to Zero. The change comes amid tensions between GFANZ and Wall Street firms over how far they should go in their climate commitments. GFANZ said its affiliation with the United Nations will continue. United Nations climate chief Simon Stiell will join a group responsible for setting its strategy and priorities, and monitoring progress, GFANZ added.

☆ Former BoE, BoC Governor Carney: UK crisis shows risk of policies at cross purposes
▼ + stars: | 2022-10-20 | by ( Julie Gordon | ) www.reuters.com time to read: +2 min

OTTAWA, Oct 20 (Reuters) - The political crisis in the UK shows the importance of fiscal and monetary policies not working at cross purposes, particularly in the current economic environment, said former Bank of England Governor Mark Carney on Thursday. "The UK experience underscores that it's counterproductive for fiscal and monetary policies to work at cross purposes," he told a Canadian Senate committee. "Colloquially, if one foot is on the brake, and that's monetary policy," then the other should not "stomp on the gas." "One of the lessons is that sound monetary and credible fiscal policy will be rewarded, but mistakes will be punished," Carney said. Carney, Bank of England Governor from 2013 to 2020 and Governor of the Bank of Canada from 2008 to 2013, noted the importance of an independent central bank, along with inclusive policy, saying the UK tax cuts mostly benefited the wealthy.

☆ Central banks get sucked into financial black hole
▼ + stars: | 2022-10-14 | by ( Edward Chancellor | ) www.reuters.com time to read: +7 min

Central bankers around the world want to bring inflation down by returning interest rates to “normal” levels. As a result, the average UK mortgage has grown to 3.4 times average income, up from 1.5 times in the early 1980s, according to housing analyst Neal Hudson. But it’s left many homeowners extremely vulnerable to higher interest rates. As a result, the government’s fiscal position is more exposed to interest rate fluctuations. As a financial black hole opens up, central banks will be forced to stop tightening.

☆ Ex-BoE boss Carney says UK tax cuts under-cutting BoE inflation fight
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +1 min

Mark Carney attends a news conference at the Bank Of England in London, March 11, 2020. Peter Summers/Pool via REUTERSLONDON, Sept 29 (Reuters) - Former Bank of England governor Mark Carney criticized the new British government's plan to cut taxes for under-cutting the attempts of the central bank to curb inflation and sowing chaos in financial markets. "Unfortunately having a partial budget, in these circumstances - tough global economy, tough financial market position, working at cross-purposes with the Bank - has led to quite dramatic moves in financial markets," Carney told the BBC in an interview broadcast on Thursday. The pound sank and British government bond yields soared, forcing the BoE to revive its bond-buying programme in an emergency move on Wednesday to shore up pension funds. read moreRegister now for FREE unlimited access to Reuters.com RegisterWriting by William Schomberg; Editing by Kate HoltonOur Standards: The Thomson Reuters Trust Principles.

LONDON, Sept 29 (Reuters) - British Prime Minister Liz Truss broke her silence on Thursday following nearly a week of chaos in financial markets triggered by her plans for tax cuts, saying she was willing to take "controversial" decisions to reignite growth. Register now for FREE unlimited access to Reuters.com Register"But I'm prepared to do that as prime minister because what's important to me is that we get our economy moving." Truss became prime minister on Sept. 6 after winning the leadership of the governing Conservative Party with promises to cut taxes. "This is the right plan that we've set out," Truss said, adding it would put Britain's economy on a better trajectory for the long term. Some financial analysts have said the government might have to bring forward that announcement to settle the nerves of investors.

☆ The UK is gripped by an economic crisis of its own making
▼ + stars: | 2022-09-29 | by ( Mark Thompson | ) edition.cnn.com time to read: +8 min

“While this is welcome, the fact that it needed to be done in the first place shows that the UK markets are in a perilous position,” said Paul Dales, chief UK economist at Capital Economics, commenting on the bank’s intervention. “It wouldn’t be a huge surprise if another problem in the financial markets popped up before long,” Dales added. The UK government should also postpone its tax cuts, El-Erian said. We look like reckless gamblers who only care about the people who can afford to lose the gamble,” one former Conservative minister told CNN. “Truss and Kwarteng are now facing a severe economic crisis as the world’s financial markets wait for them to make policy changes that they and the Conservative party will find unpalatable,” the Eurasia analysts wrote.

☆ Morning Bid: Dysfunction and intervention
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +5 min

Amid all the chaos in British bond markets, the forced intervention by the Bank of England to buy gilts has given some investors a crumb of comfort about the limits of central bank tightening. Cold comfort maybe, but enough to drag bond yields back and lift stocks briefly around the world. While 30-year gilt yields steadied just below 4% on Thursday after their 100bp swoon the previous day, the pound was sliding again and UK midcap stocks dropped. read moreEasing inflation in Spain was better news read more . Market leader Inditex (ITX.MC), the owner of Zara, slipped 2.2%, while the wider STOXX retailers index <.SXRP> slid 4.3%.

☆ Major U.S. banks threaten to leave Mark Carney's climate alliance - FT
▼ + stars: | 2022-09-21 | by ( ) www.reuters.com time to read: +2 min

Kenya's Finance Minister Ukur Yatani and former Bank of England Governor Mark Carney attend the UN Climate Change Conference (COP26) in Glasgow, Scotland, Britain, November 3, 2021. REUTERS/Yves Herman/File PhotoSept 21 (Reuters) - Major Wall Street banks have threatened to leave United Nations climate envoy Mark Carney's financial alliance over legal risks, the Financial Times reported on Wednesday, citing several people involved in internal talks. Some members of the alliance have recently said that they "feel blindsided by tougher UN climate criteria and are worried about the legal risks of participation", the report said. The banks' legal departments are particularly anxious about U.S. Securities and Exchange Commission (SEC) rules around climate-risk disclosures, the report added. The SEC will soon require formal disclosures in annual reports about governance, risk-management and strategy with respect to climate change.

☆ Sustainable finance is poised to fund the future of the planet, addressing climate change, equity, and governance
▼ + stars: | 2022-03-03 | by ( Julia Hood | ) www.businessinsider.com time to read: +5 min

This article is part of the "Financing a Sustainable Future" series exploring how companies take steps to set and fund sustainable goals. Metrics include diversity reporting, wage gaps, and health and safety. Metrics include employment and wealth generation, taxes paid, and research and development expenses. Metrics include employment and wealth generation, taxes paid, and research and development expenses. Sustainable finance is bigger than just ESG, though the terms are often conflated.

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