Charlotte Street Partners

DAILY BRIEFING

DAILY BRIEFING

Keep 1.5 alive

Written by Katie Armour, senior associate
Edited by Scott Reid, associate partner

14 October 2021

Good morning,

Allegra Stratton is the famed former ITV journalist who transformed Rishi Sunak into a household name before being hand-picked to lead Whitehouse-style press briefings from a £2.6m renovated room in the heart of Whitehall.
 
The briefings never quite got off the ground and her appointment ignited a Downing Street civil war that ousted Vote Leave stalwarts Lee Cain and Dominic Cummings. But in a quiet reshuffle of staff, Allegra has taken on a future facing brief. She’s now the prime minister’s spokesperson for COP26.
 
Speaking at an Institute for Government event yesterday afternoon, she confirmed the UK government has four key focuses for the upcoming conference – coal, cars, cash and trees. Arguing that it’s in these pivotal areas we can make the most impact towards retaining the 1.5 degree (and no more) warming target. 
 
Stratton stressed the importance of NDCs (nationally determined contributions) and said we need to see more ambitious commitments from G20 countries.
 
In Paris, the G20 promised $100bn per year to help climate adaptation for the developing world. So far, self-certified “commitments” are £20bn short. That would only get us down to 2.7 degrees warming before 2100 and the global bill for staying at 1.5 degrees is estimated at $4tn. So, in short, we are miles from where we need to be. 
 
One of the levers to change that lies in the finance sector. The PM is pushing low carbon tech in conversations with world leaders and Stratton wants it to hit home that putting money into coal will leave you with “stranded assets”.
 
What was also clear from her discussion is that finance is at the core of this conference in another way too.
 
One of the key takeaways for Britain, aside from the integral aim of saving the planet, is in showcasing the UK’s homegrown green tech expertise and attracting investors.
 
COP26 can be a springboard to push everything from Orkney’s tidal turbines to Midlands-made small modular reactors to a global audience intent on being associated with the most important conference on earth.
 
Not blind to that opportunity, the UK government, in partnership with the Queen and some other supportive royals, will be hosting a landmark green global investment summit at the London Science museum next Tuesday.
 
Talking about the event, which he spearheaded, minister for investment Gerry Grimstone said: “we can use investment to nurture technological developments and propel our economy towards a more prosperous, exciting future”. Going green is good business.
 
Twelve companies from across the UK specialising in hydro, heat, travel and clean energy have been invited to set out their stalls. As counterparts, a selection of the world’s most high profile investors will attend and be encouraged to support in a dragon’s den en masse type situation. Amazon founder Jeff Bezos and Microsoft magnate Bill Gates are among those with a personal invitation.
 
Stratton told yesterday’s audience that “there’s an advantage to being the first mover”. She’s right.
 
This is the biggest event Scotland has ever hosted. We should push our pioneering technologies unashamedly.
 
In much the same way the Olympic games are partly measured on the sporting legacies they leave in the communities they occupied, we should aim to come out of this conference with a stream of green investment to help us realise our big ambitions and share our global solutions.
 
Scottish engineering can still be a world leader if we rise to the challenge. Scotland, don’t COP out.

News

Five people have been killed and two others injured in a bow and arrow attack in Norway. Police have apprehended a suspect in the town of Kongsberg, which is 70km south-west of Oslo. The acting prime minister, Erna Solberg, has described reports of the attack as “horrifying”.
 
The EU has released its plan to reduce the number of post-Brexit checks on goods and medicines arriving into Northern Ireland from the rest of the UK by around 80%. The UK government has argued the current arrangement imposes too many barriers and European Commission Vice-President Maros Šefčovič said the proposals were a “direct, genuine response’ to those concerns.
 
Labour MP Claudia Webbe faces jail after being convicted of harassing a love rival. The 56-year-old MP threatened to throw acid in the face of a woman who was friends with her boyfriend and made a string of threats to her for a period of almost two years. (£)

Business and economy

Two more UK energy firms – Pure Planet and Colorado Energy – have gone out of business as a result of the energy crisis. Business representatives said the current situation was “unsustainable” and the 250,000 affected customers will be transferred to new suppliers.
 

Ministers are considering relaxing rules that shield millions of British retirement savers from high charges as they “step up efforts” to direct pension fund cash into the levelling up agenda. (£)
 

Toy shops are warning of Christmas present shortages amid ongoing port delays. Children’s favourites – Barbie dolls and Paw Patrol toys – are expected to be among those that run out quickly.

Columns of note

Iain Martin argues in The Times that it’s a “make or break winter” for Kwasi Kwarteng. He notes the continuing energy squeeze and pressure on supply chains will be challenging for the business secretary in coming months and says he must “heal the Tories’ rifts with bosses and investors”. (£)

 

David Blunkett and Kenneth Baker have authored a piece in The Guardian arguing that the UK government’s skills bill is a disaster for young people. The pair went on to accuse ministers of trying to “sneak through” a cull of technical qualifications and suggested the impact would be “disastrous” for students. 

Cartoon source: The Times

Markets

What happened yesterday?

London stocks closed in a positive state on Wednesday as investors’ confidence was bolstered by positive news from the housebuilding sector.

The FTSE 100 ended the session up 0.16% at 7.141.82, while the FTSE 250 was 0.74% up at 22,635.27.

Sterling, too, was in a stronger state, trading 0.43% higher against the dollar at $1.36 and 0.05% stronger against the euro, changing hands at €1.17.

In company news

Shares in Centrica dipped by 4.55% after the British Gas owner announced it was postponing its capital markets day because of the energy crisis.

Just Eat saw its share price fall by 1.67% despite reporting a 25% jump in orders in the third quarter.
 
Shares in Barratt Developments the housebuilder jumped 6.29% after it revealed strong demand for homes had continued into the current fiscal year despite the reduced government incentives.

What’s happening today?

Trading Announcements
Dunelm
Hays
Norcros
Sabre Insur
Xps Pensions

AGMs
Artemis Alpha
Marechale Cap.
Rank
Rank
Rurelec
Sabien Tech.
Twentyfour Inc

EGMs
Sdic Power

Final Ex-Dividend Date
Close Bros
Gabelli Merger
Manchester&lon.
Ncc
Strategic Equity
Wilmington

Final Dividend Payment Date
Design Group
Panther Securities

Interim Ex-Dividend Date
Abdn.new Thai
Air Partner
Bluefield Solar
Br.smaller Cos.
Br.small Co.2
Caledonia Min
Dunedin Ent.it
Ediston Property
Howden Joinery
Inspired
Invesco Bd In
Kerry

M.p. Evans
Octopus Aim 2
Ruffer Inv. Co.
Securities Trust of Scotland
Spirax-Sacro
Tesco
Twentyfour Sel
WPP
Xpediator Plc

Interim Dividend Payment Date
Braime Ord
Braime Holdings
ConvaTec
Crest Nicholson
Macfarlane Group
Oakley
Tt Electronics

Quarterly Ex-Dividend Date
Blackrock Lat A
Bmo Comm Prop
Jp Morg.as
Jpm Jap Sml G&i
Middlefield Prf
Primary Health

Quarterly Payment Date
Xp Power
Yamana Gold

Special Ex-Dividend Date
Octopus Aim 2

International Economic Announcements
(13:30) Initial Jobless Claims (US)
(13:30) Producer Price Index (US)
(13:30) Continuing Aims (US)

Source: Financial Times

did you know

Africa is the only continent that lies in all four hemispheres (Source: Insider)

Parliamentary highlights

House of Commons

The House of Commons is in recess until 18 October 2021.

House of Lords 

Introductions
Malcolm Offord

Oral questions
Visas for Iraqi interpreters
Type 26 frigates and solid support ships
National Infrastructure Crime Reduction Partnership and metal theft
Culling of pigs

Debate
Challenges to social care in England
Gambling related harms
Regional inequalities
Free Trade Agreement with Iceland

Scottish parliament 

There is no scheduled business.

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