Charlotte Street Partners

DAILY BRIEFING

DAILY BRIEFING

Down with the kids

Written by Ralitsa Bobcheva, associate 
Edited by Scott Reid, associate partner
27 May 2021

Good morning,

I can’t recall a time in my twenty-something years when climate change wasn’t a topic. At the age of eight, I started a petition on preventing global warming in my neighbourhood. Ten days, a hundred signatures and several complaints about ‘a pushy local signature gatherer’ later, I surrendered.
 
I wasn’t the only kid who was more worried about the future of the planet than about missing the Saturday morning cartoons or losing at marbles. Every generation’s world view is largely coloured by its shared experiences and according to a myriad of surveys, for Millennials and Gen Z, climate change has been a defining factor. 
 
This age group is taking centre stage in climate action. Tapping into good communications skills, leadership activism and a perceived ability to balance risks, younger leaders are increasingly seen as the voices driving company values and sustainability agendas. 
 
Against the backdrop of louder shareholder rebellions over oil giants’ lack of strategy on climate action, purpose-driven leaders will be instrumental in finding solutions to sustainable growth. 
 
Just yesterday, in a landmark legal climate case that could set a precedent for the rest of the fossil fuel industry, the court ordered Royal Dutch Shell to slash its carbon emissions by 45% by the end of the decade. 
 
And as the pressure on boardrooms to plan for a low-carbon future intensifies, embracing more diverse voices could be key to many companies’ long-term success in a decarbonised world. 
 
They could do worse than look to young people for counsel. Don’t just take my word for it, but take a look at the achievements of young leaders Jamie Margolin, Greta Thunberg or Boyan Slat.

News

In a seven-hour testimony before a House of Commons Select Committee, Dominic Cummings, the prime minister’s former chief of staff, has accused Boris Johnson of being “unfit” for office and health secretary Matt Hancock of making “disastrous” mistakes in his response to Covid-19. Hancock has rejected the allegations and is set to answer an urgent question at the House of Commons today to defend his record.
 
President Alexander Lukashenko of Belarus has defended his move to divert a Ryanair flight last week, accusing Western countries of “strangling” his country and launching “hybrid warfare”. Lukashenko’s decision has resulted in the arrest of a dissident journalist and his girlfriend, now both facing criminal charges.
 
Joe Biden has called on the US intelligence community to “re-double” its efforts to trace how Covid-19 was first transmitted and report to him in 90 days following media reports that the virus originated in a Wuhan laboratory. The president described reports from early May as the “most up-to-date analysis of the origins of Covid-19” but has asked for a definite conclusion.

Business and economy

Several US banking chiefs expressed caution over cryptocurrencies in testimony released ahead of a hearing before a Senate committee yesterday. Chief executives of Bank of America, Citigroup and Wells Fargo were among the attendees who cautioned US financial regulators in their response to a crypto market that think lacks an overarching national supervisor. (£)
 
Switzerland has pulled out of negotiation talks with the EU over “substantial” differences including on wages and immigration. Switzerland’s decision will have far-reaching consequences for EU’s fourth biggest trade partner, with the European Commission warning of inevitable deterioration in cooperation.
 
US and China’s top trade officials have held “candid” and “pragmatic” talks as part of their first meeting during the Biden presidency. The discussion focused on the importance of the trade relationship between the two countries, with both sides agreeing to continue their negotiations.

Columns of note

Despite persistent health and environmental crises, India continues to have one of the highest GDP growth rates in the world. Writing in City A.M., Shaz Memon argues that India’s battle with Covid-19 has exposed GDP as an ineffective means to measure success and offers a potential alternative.
 
In the Financial Times, Gillian Tett argues that as Covid-19 exposed the scale of inequality and reminded us of how uncertain the future is, we must ensure that a rebounding economy won’t mean a return to “normality” but rather a creation of a more collaborative, inclusive system. (£)

Cartoon source: The New Yorker

Markets

What happened yesterday?

London stocks had a mixed day yesterday, with the FTSE 100 ending the session down 0.04% at 7,026.93, while the FTSE 250 closed 0.9% higher at 22,640.08. 
 
Sterling put in a mixed performance as well, last trading flat on the dollar at $1.4123, while gaining 0.22% on the euro to €1.1576.
 
US stocks ended the session with modest gains after the Federal Reserve tamped down concerns that it would boost rates sooner than expected. The Dow Jones Industrial Average gained 0.03%, to 34,323.05, the S&P 500 rose 0.19%, to 4,195.99 and the Nasdaq Composite added 0.59%, to 13,738.00.
 
In company news:
 
Amazon has decided to buy MGM in in a nearly $8.5bn deal as the battle for global streaming services intensifies.
 
Ford has said it will aim for electric cars to account for 40% of its sales by 2030. The move came as the firm unveiled a new strategy call “Ford+” that will see it put $30bn into electrification over the next ten years. 
 
Two British healthcare firms have been sold in deals worth around £2bn. As part of the deals, private equity firm Carlyle is set to buy Vectura while Ramsay Health Care has bid accepted for Spire hospitals.
 
SSE has announced plans to offload its 33.3% stake in UK gas distribution business Scotia Gas Networks in the latest move by a UK energy group seeking to reduce its exposure to the gas sector.

What’s happening today?

Finals
Caledonia        
Invinity Energy            
Johnson Matthey        
LondonMetric
Pets At Home  
Picton Prop     
Ted Baker        
United Utilities          

Interims
Daily Mail        
Impax Asset Man        
Residential Sec            
Tharisa     

AGMs
Albion. Tch Vct
Belvoir
BMO Private Equity Trust
Bodycote
Bonhill Group
Brave Bison Grp
Cambridge Cog
Curtis Bks
Deltex Medical
Ferrexpo
Glenveagh
Global Ports S
Great Western
Inchcape
Ind.inv.tst
Instem INS
International Public Partnerships
Nucleus Financ.
OneSavings Bank
Oxford Biomedica
Pjsc Polyus S
Resolute Mining
Restore
Strix Group
Valirx
Vectura
Xeros Tech
Xlmedia
Yu Group

Int. economic announcements
(13:30) Durable Goods Orders (US) 
(13:30) GDP (Preliminary) (US)
(13:30) Initial Jobless Claims (US)
(13:30) Continuing Claims (US)
 (15:00) Pending Homes Sales (US)

Source: Financial Times

did you know

The average person walks about 80,000 miles in a lifetime. That’s more than three times around the world.

Parliamentary highlights

House of Commons

Oral questions
Cabinet Office (including Tropical Questions)
 
Urgent question
To ask the Secretary of State for Health and Social Care if he will make a statement on the Government’s handling of the covid-19 outbreak and his Department’s level of preparedness prior to the pandemic
 
Urgent question
To ask the Secretary of State for International Trade if she will make a statement on the UK’s proposed tariff offer to the Australian government on their agricultural exports
 
Business Statement
Business Questions to the Leader of the House
 
General debate
General Debate on Dementia Action Week
 
General debate
General Debate on Implementing the 2020 Obesity Strategy
 
Adjournment 
Kirkella distant water trawler and Distant Fleet Fishing

House of Lords 

Oral questions
Delivering commitments agreed at the 2018 Commonwealth Heads of Government summit
 
Oral questions
Situation in the Nagorno-Karabakh region and reports of human rights violations by the government of Azerbaijan
 
Oral questions
Measures regarding permissive access to footpaths across farmland being used for agri-environment schemes
 
Debate
Communications and Digital Committee report ‘Public service broadcasting: as vital as ever’
 
Motion
Statements of changes to the Immigration Rules (HC813, HC1043 and HC1248) – motion to regret

Scottish parliament 

Parliamentary Bureau Motions
 
First Minister’s Questions
 
Parliamentary Bureau Motions
 
Scottish Government Debate: COVID-19
 
Business Motions
 
Parliamentary Bureau Motions
 
Decision Time

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