Macro

Fed Resists Climate Risk in Global Finance Rules

US opposes climate risk in financial rules, legal battles over Trump, corporate shifts, and global challenges underscore dynamic global landscape.

By Mackenzie Crow

4/3, 18:14 EDT
S&P 500
iShares 20+ Year Treasury Bond ETF
iShares 7-10 Year Treasury Bond ETF
Apple Inc.
Walt Disney Company
Spotify Technology S.A.
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Key Takeaway

  • US regulators, led by the Fed, resist integrating climate risk into global financial rules, highlighting a transatlantic regulatory divide.
  • Paramount's potential ownership change and Disney's shareholder support reflect significant corporate governance movements in the entertainment industry.
  • Spotify announces price hikes to boost profitability, while Apple explores personal robotics, indicating strategic shifts in tech and media sectors.

US Regulators and Climate Risk Dispute

US regulators, led by the Federal Reserve, have reportedly opposed efforts to prioritize climate risk in global financial rules. The Basel Committee on Banking Supervision faced a rift as European central bankers advocated for stricter climate requirements, while US officials cited concerns over the committee's scope. Fed Chair Jerome Powell emphasized that climate policies fall under elected officials' purview, highlighting the divergence in approaches between the US and Europe on integrating climate considerations into financial regulations.

Legal Battles Over Trump's Prosecution

Special Counsel Jack Smith criticized US District Judge Aileen Cannon for potentially jeopardizing the prosecution of former President Trump on mishandling government files charges. Smith raised concerns over Cannon's legal interpretations and urged prompt resolution of key legal questions to ensure a fair trial. Cannon's rulings, favoring Trump's delays in his felony prosecutions, have sparked controversy, underscoring the legal battles surrounding Trump's legal challenges and the implications for his upcoming trials.

Paramount's Ownership Shift and Disney's Shareholder Vote

Shari Redstone, the controlling shareholder of Paramount Global, is reportedly in talks to sell her stake to David Ellison's Skydance Media, potentially reshaping Paramount's ownership structure. Meanwhile, Walt Disney shareholders rejected Nelson Peltz's bid for a board seat, reaffirming confidence in Disney's current board members. The shareholder vote signals ongoing investor support for Disney's governance and strategic direction amid pressure from activist investors like Peltz.

Taiwan's Earthquake and Biden's Call with Netanyahu

Taiwan faced its strongest earthquake in 25 years, causing casualties and disrupting semiconductor production, impacting global chipmakers. US President Joe Biden is set to speak with Israeli Prime Minister Benjamin Netanyahu amidst escalating tensions following civilian deaths in Gaza. Biden's criticism of Israel's actions underscores the delicate diplomatic relations and humanitarian concerns in the region, highlighting the challenges in addressing the conflict and ensuring accountability for civilian casualties.

Spotify's Price Hikes and Apple's Robotics Exploration

Spotify plans to raise prices in key markets, aiming to enhance long-term profitability and sustain its growth trajectory. Apple is reportedly exploring personal robotics, signaling a potential expansion into innovative technology sectors beyond its traditional product offerings. The market reactions to Spotify's pricing strategy and Apple's foray into robotics reflect the companies' strategic shifts and ambitions in diversifying their product portfolios.

Management Quotes

  • Jerome Powell, Fed Chair:

    "Policies to address climate change are the business of elected officials and those agencies that they have charged with this responsibility. The Fed has received no such charge."