Al Gores uncomfortable truth for investors

A ball for the start : Rothesay , Great Britain's largest pension insurance specialist with a wealth of more than 60 billion

Overworking the global finances to reduce greenhouse gas emissions

al Gore film from 2006 an uncomfortable truth sensitized the public for the global risks of climate change. Now, says the former US Vice President, the financial industry has to wake up to its own uncomfortable truth: it needs a total reform.

Last week I put myself together with the former politician who became a climate activist, together with my FT colleagues Attracta Mooney and Patrick Jenkins, and Gores business partner David Blut , the former boss of Goldman Sachs management . The couple co -founded Generation Investment Management , a specialized sustainable investment house, almost two decades ago.

Before the COP26 in Glasgow, the 73-year-old Gore made a clear diagnosis and said that the world could no longer afford that the financial industry continues to support large-scale carbon-intensive projects and those that undermine biodiversity. (Only last week, FT published a story about how the global financial industry has sunk $ 119 billion in companies that are connected to the design in the five years since the Paris Agreement.

and Gores recommendation? Reform of regulatory capital requirements and global accounting standards and improvement in disclosure to force banks, traditional asset managers, private equity companies and asset owners to revise their handling of the risks of climate change.

In turn,

blood burdened the dilemma of investors as to whether the asset management industry should get involved with companies or separate them in order to achieve the goals of climate change. The passive giants like Schwarzrock, and Global advisors from State Street "You have no choice until you change the index or obtain the consent of your customers, to deviate from the benchmark," said Blood. "You have to significantly strengthen your commitment efforts."

But active managers have to coordinate with their wallet, he added.

"You can get involved for a while, but if you have no clear and current obligation to sell, your commitment is not credible. I don't think you have decades to work with companies, I think you have a few years. And if you are not actively doing the plan for decarbonization or improvement of your diversity or do other things with your communities, you will probably do something else. shift. “

$ 1 million Bounty of a empty seller on Tether

Hindenburg research brought the tactics of a sheriff of the Old World in the "Wild West" of cryptocurrency. The well-known empty sales company, founded by Nathan Anderson , has a "bounty" of $ 1 million for exclusive details on the underlying assets stop , according to my colleagues, the 70 billion dollar-crypto stable siddharth Venkataramakrishnan , Joshua Oliver and Robert Smith .

A year ago, stories about stable coins may not have made big waves. Recently, however, the risks of this type of crypto token are at the top of the agenda. Jon Cunliffe , deputy governor of the Bank of England for financial stability, warned last week in a speech that these coins-which are normally associated with the value of traditional assets, mostly the US dollar-have a connection between the financial markets and crypto, which could be burdened.

In the meantime, at the beginning of this year fit ratings pointed out the growing systemic risk of stable coins and US finance minister Janet Yellen said in summer that the USA had to "act quickly" to regulate this part of the crypto universe.

The attention of top civil servants increases the use in the controversy around Tether, the largest stable coin in the world. At the beginning of this month, it agreed (without admitting or denying liability) to pay a penalty of $ 41 million in order to clarify the claims of a US regulatory authority that it had wrongly shown that their digital tokens were completely covered by dollars in the past. Shortly after this unification, a large -scale statement by Tether contradicted that new stable coins are only issued in exchange for hard currency.

Hindenburg, known for addressing companies such as start-ups for electric trucks nikola and sports betting providers Draft kings , is now ready to bet a million dollars that someone knows somewhere more.

Tether criticized the bounty as "a pitiful requirement of attention". Keep your popcorn supplies filled.

chart of the week

Investors have deducted $ 9.4 billion from British equity funds after the hopes that a Covid 19 vaccination would boost a strong economic recovery, overshadowed by questions about slow growth, concerns in the supply chain and high inflation-tightened by the B-word. The net deductions are due to the fact that the pressed reviews of the British companies have fueled the interest of private equity and lead to the fact that according to EPFR data, according to EPFR data, the sixth year in a row is now being headed for.

News summary

hot demand for Bitcoin-ETF, since "Wild West" on Wall St (ft) meets

hedge funds make millions of Trump Media Spac Jump (ft)

ftx attracts blue chip investors to the financing round and evaluates the crypto group with $ 25 billion (FT)

Missing investment ranges risks an ESG bladder (FT-Opinion)

Börsen-traded Bitcoin fund debuts at Wall Street (FT)

The British financial supervisory authority is examined for the pension advice scandal (FT)

Against the herd: Trader Mark Spitznagel via Contrarian Investing (FT WEATH)

pension funds struggle with human rights dilemma (ft)

The skepticism of investors to ESG indicates a ripening market (FT)

Sustainable investors consider Chinese opportunities (ft)

and finally

"To move power, but not to reclaim."

The last days of Leopoldstadt by Tom Stopard in the Wyndham’s Theater in London. It is a piece that follows a family over half a century that rediscovered what it means to be Jewish. I recommend it very much.