Mar 10, 2022
The Himalayas, one of the most beautiful yet fragile ecosystems in the world, is a source of water for billions of people living in South and Southeast Asia.
China is the largest refiner of the world’s lithium and currently the biggest investor in lithium mines around the globe. Chinese scientists recently discovered ‘super-large’ deposits of lithium near Mount Everest, that could potentially produce a million tons of lithium oxide, a key element in batteries powering electric vehicles.
While this discovery could provide raw material to accelerate the fast-growing Electric Vehicles (EV) and battery storage market, prospects of mining the newly found lithium deposits would be an energy- and water-intensive operation, leading to adverse environmental impacts, and raising severe concerns over the fate of freshwater resources in the Himalayas.
Feb 11, 2022
Following the Federal Reserve’s latest monetary policy meeting in January, the Fed is set to embark on its rate hike cycle with the first hike coming as soon as March to tame stubbornly high inflation. Concerns about an impending rate hike sparked volatility across assets classes, including US high-yield bonds. However, if history is a guide, US high yield performed well in the rising interest rate environment. The ICE BofA US high yield index outperformed with an average return of 16.2% during the Fed rate hike cycles since 1994 and delivered positive returns in 4 out of those 5 instances with the exception in 1999-2001, which coincided with the dot-com bubble burst.
That said, the economic background behind the rate hike cycle this time around looks different. The US inflation rate is nearly at a 40-year high of 7%, while the unemployment rate of 3.9% is just shy of the Fed's goal of maximum employment than the previous rate-hike cycles. These factors could cause the Fed to get even more aggressive. Moreover, the Fed has doubled the pace at which it is scaling back bond purchases, putting it on track to conclude the program by March 2022. It has also hinted at shrinking its balance sheet post hiking rates, with market participants expecting it to start in June 2022. Nevertheless, the corporate balance sheets had improved substantially in 2021 to weather the aftermath of monetary tightening.
Most of the companies are in the recovery or expansion phases of the credit cycle. Additionally, the high-yield index has near-zero exposure to the technology sector (highly sensitive to change in real interest rate) and short duration (around 5 years), making them stand pat against the rate hikes.
Feb 07, 2022
Last Wednesday, the European Commission proposed a highly divisive policy, calling for the energy derived from natural gas and nuclear to be labeled as “sustainable” investments if they meet certain criteria.
While admitting that the proposal was not perfect, EU Financial Services Commissioner, Mairead McGuinness, claimed it struck a balance between differing opinions.
The move has subjected the European Commission to criticism, with environmental groups and climate activists accusing the EU of “greenwashing." They claim that labeling natural gas and nuclear as green energy would slow down the adoption of renewable energy.
But proponents supporting the move counter that such incentives would aid underdeveloped countries to transition from coal to cleaner alternatives.
The decision, however, is not final. The European Parliament and council of heads have four months to consider the proposal.
Could the move hurt The Union's credibility? Was the proposal well-thought-out for an entity as influential as the EU, a beacon of climate action? Could it really accelerate the world's transition to a low-carbon future?
What do you think?
Jan 13, 2022
Money has a critical role to play in our lives. It’s a common notion that money can’t buy happiness, but not having it (or enough of it) can cause many sleepless nights. A reliable and comfortable income certainly makes life easier. It is negatively correlated with emotions like stress and is rather correlated with higher self-esteem, security, and dignity. So, yes, money can indeed buy happiness. The question is, how much money is enough? In 2010, a study published by Nobel laureates Daniel Kahneman and Angus Deaton stated that the quality of one's life increases as one earns more. However, the feeling flattens around USD 75,000 (annual income). Although, eleven years later, in 2021, a study published by Matthew Killingsworth of the University of Pennsylvania found that well-being rises with income—even beyond USD 75,000.
So, how much is enough? The truth is, money itself falls short. It is not the end-all-be-all for happiness. Killingsworth's study also found that people who equated money with success reported being less happy than those who didn't. That's because high income comes with tradeoffs. High earners report a heightened sense of achievement, but they are also more stressed. And lonely. Instead, here's the secret to happiness: money, yes, but also the right mix of good social relationships, exercise, and a sense of purpose. In fact, people who have a job they love and which gives them a sense of purpose report greater happiness—regardless of the money they earn.
Jan 13, 2022
Following the Federal Reserve’s latest monetary policy meeting in January, the Fed is set to embark on its rate hike cycle with the first hike coming as soon as March to tame stubbornly high inflation. Concerns about an impending rate hike sparked volatility across assets classes, including US high-yield bonds. However, if history is a guide, US high yield performed well in the rising interest rate environment. The ICE BofA US high yield index outperformed with an average return of 16.2% during the Fed rate hike cycles since 1994 and delivered positive returns in 4 out of those 5 instances with the exception in 1999-2001, which coincided with the dot-com bubble burst. That said, the economic background behind the rate hike cycle this time around looks different. The US inflation rate is nearly at a 40-year high of 7%, while the unemployment rate of 3.9% is just shy of the Fed's goal of maximum employment than the previous rate-hike cycles. These factors could cause the Fed to get even more aggressive. Moreover, the Fed has doubled the pace at which it is scaling back bond purchases, putting it on track to conclude the program by March 2022. It has also hinted at shrinking its balance sheet post hiking rates, with market participants expecting it to start in June 2022. Nevertheless, the corporate balance sheets had improved substantially in 2021 to weather the aftermath of monetary tightening. Most of the companies are in the recovery or expansion phases of the credit cycle. Additionally, the high-yield index has near-zero exposure to the technology sector (highly sensitive to change in real interest rate) and short duration (around 5 years), making them stand pat against the rate hikes.
Jan 13, 2022
Last Wednesday, the European Commission proposed a highly divisive policy, calling for the energy derived from natural gas and nuclear to be labeled as “sustainable” investments if they meet certain criteria.
While admitting that the proposal was not perfect, EU Financial Services Commissioner, Mairead McGuinness, claimed it struck a balance between differing opinions. The move has subjected the European Commission to criticism, with environmental groups and climate activists accusing the EU of “greenwashing." They claim that labeling natural gas and nuclear as green energy would slow down the adoption of renewable energy. But proponents supporting the move counter that such incentives would aid underdeveloped countries to transition from coal to cleaner alternatives. The decision, however, is not final. The European Parliament and council of heads have four months to consider the proposal. Could the move hurt The Union's credibility? Was the proposal well-thought-out for an entity as influential as the EU, a beacon of climate action? Could it really accelerate the world's transition to a low-carbon future? What do you think?
Good things come in small packages! SGA Beat comprises insights-fuelled short stories on the hottest industry trends and topics, based on the latest information straight off our latest research endeavors. Beat is packaged in bite-sized, short-form nuggets and presented to you as quick reads – enriched with facts and insights that are easy to absorb and assimilate. Catch-up on the latest buzz around, one refreshing read at a time!
The Himalayas, one of the most beautiful yet fragile ecosystems in the world, is a source of water for billions of people living in South and Southeast Asia.
China is the largest refiner of the world’s lithium and currently the biggest investor in lithium mines around the globe. Chinese scientists recently discovered ‘super-large’ deposits of lithium near Mount Everest, that could potentially produce a million tons of lithium oxide, a key element in batteries powering electric vehicles.
While this discovery could provide raw material to accelerate the fast-growing Electric Vehicles (EV) and battery storage market, prospects of mining the newly found lithium deposits would be an energy- and water-intensive operation, leading to adverse environmental impacts, and raising severe concerns over the fate of freshwater resources in the Himalayas.