Market Round Up: Climate Change or be Doomed 🌍  Ciao Italia 🙊

by | 9 Oct, 2018

 

1. Climate change or be doomed

This is a warning. We are going to wreck our planet unless we change our unquenchable habit to buy stuff – any stuff. That’s the expert opinion of the Intergovernmental Panel on Climate Change (IPCC) which published its report, yesterday, cautioning that keeping rising temperatures below the globally agreed 1.5 degrees C is now completely off the tracks, and heading towards a 3C rise.

The cost of saving Earth will be astronomical. But, despite ensuring the continued existence of mankind and our societies, such an investment should also be looked at as an economic and employment boon.

The way we manage land, use transport and consume everything from food to clothing apparel will need to change. Put simply, our impulse to buy yet another t-shirt or pair of shoes (because they are cheap) needs to be reversed. Instead of hunting for bargains, we need to ask for quality. This means wearing that pair of jeans not just once, but maybe for a few years. Or eating a meal from local and sustainable sources, rather than the $2 dollar chicken from a discount supermarket stuffed full of antibiotics. It means that rather than businesses racing each other to the bottom in terms of costs, they satisfy a new demand for sustainable and quality driven goods. This will mean investing in better quality materials, hiring and training more skilled people and re-using waste.

The good news is that politicians are finally listening. Furthermore, the Nobel prize for economics was won by two Americans working on climate change and the role of governments in boosting sustainable growth. The Royal Swedish Academy of Sciences awarded William Nordhaus and Paul Romer the prize for their research into the most “basic and pressing” economic issues of the age.

Clearly it’s time to listen up and see this as an opportunity to re-set our life support machine. Less is More is the new vogue!

 

2. Ciao Italia

Signs of frustration are growing in Italy with the latest spat coming from deputy Prime Minister Matteo Salvini accusing Brussels technocrats of being “enemies of Europe”, and triggering a sell-off of bonds and stocks.

Investors worried about the deepening friction between Rome and the European Union’s views about the country’s budget plans is also putting the euro under pressure, reaching a seven-week low against the US dollar. The stock market index is down 2.4%. Meanwhile yields on ten-year Italian bonds (bundles of government debt) rose to a four and a half year high, making it even more expensive for Romans to borrow money.

The European Commission has told Italy it is concerned about its budget deficit plan breaching European rules on government borrowing. But Rome insists it will not retreat from its spending strategy.

It will be interesting to see if federal Brussels will allow Italy to set its own destiny, or come down hard on a nation struggling to revive its economy. As the old Latin adage goes, “Si vis pacem, para bellum”, or “the strength of a nation derives from the integrity of the home”. In bocca al lupo!

Related: Market Round Up: Clouds over Italy ☁ – Crisis week for EMs 🙊

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A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:

Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.

Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.

Brokerage services of US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth, LLC a registered broker-dealer and member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. 

DriveWealth provides no tax, legal, or investment advice of any kind, nor does DriveWealth give advice or offer opinions with respect to the nature, potential value, or suitability of any securities transaction or investment strategy. DriveWealth acts as the clearing firm for securities transactions entered on the Invstr mobile platform. DriveWealth is not affiliated with Invstr. Invstr does not participate in DriveWealth’s decision-making.

There is no minimum initial deposit required to open an investing account with DriveWealth. Expenses and Fees associated with the DriveWealth platform in conjunction with Beanstox includes either a monthly membership fee of $4.99 with a commission charge of $0.01 per share* or, in the event the membership fee is not paid, a commission charge of $0.0125 per share applies, subject to a minimum of $2.99 per transaction. There are no monthly minimum fees, or required ongoing minimum account balance. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost). View a full list of our fees at http://bit.ly/DWFees

The monthly subscription charge is four dollars and ninety-nine cents (US$4.99) per month plus one cent (US$0.01) per share traded (as examples, for a Transaction of 0.90 shares, the per share traded charge is one cent (US$0.01), and for a Transaction of 1.6 shares, the per share traded charge would be two cents ($0.02), and the quarterly subscription charge is fourteen dollars and ninety-nine cents (US$14.97) every 3 months plus one cent (US$0.01) per share traded. The monthly and quarterly subscription charges may be greater or less depending on additional services offered by a DriveWealth partners as part of the subscription model offering, or based on any subsidies provided by a DriveWealth partner as part of the subscription model offering. For non-resident aliens, there is a one-time tax verification fee of $5.00 (representing Form W-8BEN pass-through processing cost).View a full list of our fees at http://bit.ly/DWFees

This communication is not an offer or solicitation to purchase or sell securities. Investing in securities carries risk, including the loss of principal. Past performance is not indicative of future returns, which may vary. Online trading has inherent risk due to system response and access times that may be affected by various factors, including but not limited to market conditions and system performance. An investor should understand such facts before trading. The risks associated with investing in international securities, including US-listed ADRs and ETFs that contain non-US securities include, among others, country/political risk relating to the government in the home country; exchange rate risk if the country's currency is devalued; and inflationary/purchasing power risks if the currency of the home country becomes less valuable as the general level of prices for goods and services rises. Before investing in an ETF, an investor should consider the investment objectives, risks, charges, and expense of the investment company carefully. ETF prospectuses are accessible within the mobile application via a link under each company’s “Description.”

A fractional share is a share of equity ownership that is less than one full share. Fractional share investing has certain limitations and restrictions that investors should understand prior to purchasing fractional shares: ownership of less than one full share does not give the fractional share owner the right to vote on company matters; fractional shares are non-transferrable, meaning they cannot be transferred to another brokerage firm; and fractional share orders will be accepted as market orders only. For more information and details on fractional shares, and any associated limitations or restrictions please visit: https://drivewealth.com/fractional-shares-disclosure

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