Investments & Pensions Europe (November Issue)
“UN analysis suggests that if present trends persist, demand for fresh water will outstrip supply by 40% by 2030. By 2050, four billion people will be living in areas facing severe water stress. Add that almost 800m people worldwide do not have access to clean water, while 2.5bn lack basic sanitation, and a worrying picture emerges.” For some investors, however, this suggests opportunities as they begin targeting businesses with water-related growth and avoiding those with unaddressed water-related risk.
Tags: Clean water, Demand, Fresh water, Investors, Opportunities, Risk, Sanitation, Supply, UN, Water stress, Water-related growth
The Economist (November 9)
“The biggest problem facing the rich world’s central banks today is that inflation is too low. The average inflation rate in the mostly rich-world OECD is 1.5%, down from 2.2% in 2012 and well below central banks’ official targets (typically 2% or just under)…. None of this means that inflation will not one day be a risk. But it is not today’s problem.”
Tags: Central banks, Inflation rate, OECD, Official targets, Risk
Institutional Investor (August Issue)
“Investors confront the risk of a carbon bubble fueled by stranded oil and gas assets” should major governments decide to impose strict carbon legislation to combat climate change. One recent report asserts that “to limit the rise in global temperatures to 2 degrees Celsius between now and 2050, only 20 percent of the world’s fossil fuel reserves can be extracted and burned.”
Tags: Carbon, Climate change, Extraction, Fossil fuel, Gas, Global temperatures, Governments, Investors, Legislation, Oil, Reserves, Risk
Institutional Investor (August Issue)
“In the wake of the financial crisis a few years ago, it seemed as if the world economic order had been turned upside down” The U.S, Europe and other established markets appeared risky and emerging markets “that once seemed risky began to look like a sure bet…. Today the supposed new world order already seems, well, old. Emerging markets have been among the worst-performing asset classes this year, and capital has been flowing out at a record pace in recent weeks.”
Tags: Asset classes, Economic order, Emerging markets, Established markets, Europe, Financial Crisis, Risk, U.S.
Euromoney (July issue)
“Market share of financial businesses vital to supporting global economic growth is concentrating rapidly into the hands of a small group of the world’s biggest banks.” During the first half of 2013, the top 10 banks commanded 56% of all investment banking fees. This “does not look a particularly welcome development, increasing as it does, the dependence of corporations, governments, large investors and other banks on just a few providers and along with it the exposure of the global financial system to risk of failure at any of these top 10.”
Tags: Banks, Economic growth, Exposure, Fees, Global financial system, Investment banking, Investors, Market share, Risk
Euromoney (May Issue)
“The central bank-driven global money-go-round has been turning ever faster since last summer. Now the Bank of Japan has turbo-charged it. So far, investors are enjoying the ride. But a bout of nausea cannot be ruled out.”
Tags: Bank of Japan, Central banks, Expansion, Investors, Monetary policy, Outlook, Risk
The Economist (April 20, 2013)
“The threat of a global pandemic is rising again.” In China, the H7N9 avian influenza is troubling and in the Middle East a SARS-like virus has emerged. Compared with a decade ago, the world is more prepared for the “distant but deadly threat” of a pandemic. “But it needs to be better prepared still, because viruses move a lot faster than governments do.”
Tags: Avian influenza, China, Governments, H7N9, Middle East, Pandemic, Preparation, Risk, SARS
The Economist (January 19)
“China and Japan are sliding towards war. In the waters and skies around disputed islands, China is escalating actions designed to challenge decades of Japanese control.” The Economist warns the risks of war are rising and risks of a clash between China and Japan are rising “and the consequences could be calamitous.”
Tags: China, Consequences, Japan, Risk, Senkaku islands, War
Chicago Tribune (December 14)
“The Fed helped the nation through a crisis. Now it could be creating risk.” The Fed has indicated it will maintain near-zero interest rates until the unemployment falls below 6.5% or inflation rises above 2.5%. This monetary policy was championed by Chicago Fed President Charles Evans, an inflation dove and policy activist, but the policy is misguided. “At this stage of the recovery, the biggest drags on the employment market have little to do with credit availability and interest rates — factors where the Fed does have influence — and much to do with the failures of elected politicians to fix spending and tax policies…. The central bank just isn’t all-powerful…. The Fed risks becoming a source of the problems it has done so much in recent years to help resolve.”
Tags: Evans, Inflation, Monetary policy, Risk, Spending, Tax, Unemployment
Institutional Investor (September Issue)
Is the financial system safer “after four years of summit meetings, regulatory conclaves, landmark legislation and detailed rule-writing—all of it aimed at ensuring that the financial system would never again crash the global economy or force taxpayers to underwrite costly bailouts?” Many things appear to have changed for the better and the regulatory stance is more aggressive, yet some of the changes may be releasing new risks that could surpass anything we’ve seen before. “The answer is not simple.”
Tags: Bailout, Economy, Financial system, Regulators, Risk, Safety, Taxpayers
