State of Finance for Nature 2022 | UNEP

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The second edition of the State of Finance for Nature report launched today reveals that nature-based solutions are still significantly under-financed. If the world wants to halt biodiversity loss, limit climate change to below 1.5C and achieve land degradation neutrality by 2030, current finance flows to NbS must urgently double by 2025 and triple by 2030. Delayed action is not an option in the face of the devastating effects of climate change, the extinction crisis, and severe land degradation globally.  

The first edition of the report 

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EU looks to exclude banks and funds from sustainability rules

EU ministers have backed a carve-out for banks and investment funds from a landmark regulation designed to force companies to report on environmental and human rights abuses in their supply chains.

The exemption, pushed by France and approved by ministers on Thursday, has prompted harsh criticism from campaigners who said the move will allow large banks and fund managers to continue financing fossil fuel or mining projects without properly scrutinising the environmental damage or social issues they might cause.

If the move is approved following negotiations with the European parliament next year, it would mark a significant weakening of the

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The New Geopolitics of Global Finance

I first started to write a balance of payments focused blog back in 2004. 

Initially, I spent most of my time documenting the rapid rise in China’s surplus, the relentless rise in the surplus of the oil exporters, and the massive run up in global foreign exchange reserves—and showing that for all the talk (at the time) about exchange rate flexibility, most emerging markets were heavily intervening in the foreign exchange market.

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Emerging Economies

China

I also sought, with only limited success, to figure out the vulnerabilities associated with that particular global system. The “balance of financial

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Former Credit Suisse chief Tidjane Thiam defends his record

Former Credit Suisse chief executive Tidjane Thiam has defended his record at the Swiss lender despite the litany of crises that have hammered the bank since his departure.

Shares in the group hit a 30-year low on Tuesday morning, extending their decline to more than 35 per cent since the bank announced a radical restructuring and SFr4bn ($4.2bn) capital raise last month.

A year after Thiam left Credit Suisse in 2020 following a damaging corporate espionage scandal, the bank was forced to close $10bn of supply chain finance funds linked to the defunct company Greensill Capital. It was also hit

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Lula Seen Tapping Haddad for Brazil Finance Minister in Coming Days -Sources

BRASILIA (Reuters) – Brazilian President-elect Luiz Inacio Lula da Silva is expected to tap former Sao Paulo Mayor Fernando Haddad in coming days to be his finance minister, people familiar with the deliberations told Reuters on Tuesday.

The sources, who requested anonymity to share private talks, said Haddad’s appointment to a working group on economic issues within Lula’s transition team added to expectations, reported by Reuters this month, that he was the leading candidate for Lula’s finance minister. The new president takes office on Jan. 1.

Lula’s silence on the decision has rattled financial markets and brought criticism even from

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Hedge fund Rokos warns that sterling is ‘vulnerable’ to further falls

Sterling looks “vulnerable” to further falls and the looming recession could have “serious” effects on British society, according to the hedge fund firm of billionaire trader Chris Rokos.

Rokos Capital Management, which manages around $14.5bn in assets, told its investors that the UK had suffered a bigger shock to its terms of trade than other developed countries because of the impact of Brexit, deglobalisation and the coronavirus pandemic.

Such a deterioration, which puts pressure on an already yawning current account deficit and can fuel inflation, made it harder for policymakers to control consumer price growth, the firm wrote in a

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Collateralised fund obligations: how private equity securitised itself

The US hospital staffing company Envision Healthcare, owned by the private equity firm KKR, has the lowest possible junk-grade credit rating and is at risk of bankruptcy, according to Moody’s.

But an ownership stake in Envision, bundled with stakes in hundreds of other private equity-owned companies, has been transformed into a financial security marketed to ordinary savers as a safe investment with a stellar credit rating.

The product is known as a “collateralised fund obligation” and its aim is to diversify risk by parceling up the companies providing returns. CFOs are, in some ways, a private equity variant of “collateralised

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