Big Oil faces up to a future beyond petroleum

Where to for oil? The price of oil recently dropped briefly below zero and Chesapeake Energy, one of the largest producers of oil and gas in the United States, has just filed for bankruptcy...

Article The FT View June 16 2020

Big Oil faces a future where it may not be so big, and may have less to do with oil. The industry has faced an increasingly uncertain future as climate change has moved to the forefront of the public’s consciousness. Investors, too, have stepped up their calls for action. Now the coronavirus pandemic, by radically cutting demand for oil and gas and giving governments the whip hand in directing the revival of their economies, looks likely to accelerate the long-term shift away from fossil fuels in many nations. Continue reading here.


The RBA ‘jaw-boning’ experiment keenly watched by the Federal Reserve

With 30% ($16 trillion) of central bank interest rates now below zero, what can we expect as we look ahead to 2021?

Article SMH June 23 2020

One of the curious aspects of the policy responses to the coronavirus pandemic is that the Reserve Bank’s move into unconventional monetary policy territory has provoked so little discussion.

Its deployment of "yield curve control" is, however, generating increasing interest offshore.

The US Federal Reserve Board is paying close attention to the RBA’s capping of bond rates out to three-year maturities as it considers whether to add such a move to the raft of unconventional measures it has already implemented in the US. Continue reading here.

IMF warns investors: you’re not ready for climate change

Investors worldwide are underestimating the financial risks from climate change, and companies need to start disclosing their exposure, according to the International Monetary Fund.

Source: Bloomberg May 30 2020

As global temperatures rise, severe climate events may impact companies owning assets in areas hit by drought, floods, wildfires and storms, the fund said Friday in the latest chapter released from its Global Financial Stability Report. At present, asset prices fail to reflect the risk of extreme weather events that may cost $1 trillion annually starting in 2050, the IMF said. Continue reading here: