🐂Disaster gentrification

Markets

A handful of recently established investment funds are advocating a different approach to investors: the practice of selecting stocks based on environmental, social, and governance (ESG) criteria should be abandoned. According to these new funds, using ESG factors as a basis for investment decisions is not effective. As a result, these funds either completely disregard these factors when choosing stocks or actively steer clear of companies that align with ESG principles and causes perceived as leaning towards the left.

Why the Era of Historically Low Interest Rates Could Be Over

After over a decade of extremely low interest rates, Americans are now presented with options as they search for higher yields.

Previously, they earned minimal interest on their funds kept in checking or savings accounts. However, they are now eagerly embracing money-market funds and similar cash-equivalents that offer substantial returns.

The Federal Reserve's assertive campaign to raise interest rates and control inflation has disrupted the long-standing belief that there are no viable alternatives to investing in stocks. Following the stock market's decline last year, many individuals are expressing that they no longer feel compelled to invest in stocks when they can secure a 5% return with minimal risk.

Keith Hagg, aged 50, disclosed that a significant portion of his investment portfolio consisted of equities before the pandemic. However, in recent times, he has been accumulating cash in money-market funds and adjusting his allocation towards bonds as yields have risen.

Environment

Locals worry about getting displaced from fire-ravaged Maui

In the previous week, a devastating wildfire swept through Maui, resulting in the destruction of a significant portion of the historic town of Lāhainā and tragically claiming the lives of at least 111 individuals. While emergency response efforts were still ongoing, social media began to circulate reports that external investors were reaching out to local residents, indicating an interest in acquiring the remaining properties in Lāhainā. Presumably, these investors have intentions to redevelop the land.

The fire consumed nearly all of Lāhainā's residential properties, leaving around 4,500 residents without shelter. As the community embarks on the task of rebuilding, many long-standing residents of Maui are concerned that they could eventually find themselves unable to afford living in their hometown, fearing that the area will transform into an upscale haven for affluent individuals from the mainland.

These concerns are not without basis, as this phenomenon tends to occur in the aftermath of disasters affecting desirable locations. Coupled with Hawaii's complex history of interactions with outsiders and the ongoing efforts to protect and preserve Native Hawaiian culture, the matter of revitalizing the area has become a deeply contentious issue.

The potential scenario of real estate developers acquiring land at prices below market value provoked a strong and negative response. Local activists took to social media platforms to draw attention to the historical exploitation of Native Hawaiians' land through predatory practices. In response to the situation, the governor of the state has indicated an intention to explore the possibility of implementing a temporary ban on selling land to developers in the aftermath of the fire disaster.

Tech

America’s Tech Giants Rush to Comply With New Curbs in Europe

Stringent actions are on the horizon for some of the world's largest tech giants. Meta Platforms, Apple, Google, and other prominent American tech firms are bracing for the imminent enforcement of novel European Union (EU) tech regulations. These regulations, set to be introduced in stages over the upcoming months, signify a monumental expansion in digital governance in Western countries.

The primary objectives of these new EU laws are twofold: to compel major tech corporations to exercise better control over online content and to foster increased competition. Regulatory bodies will maintain regular oversight, wielding the authority to levy fines where necessary.

These comprehensive regulations, comprising numerous provisions, bear resemblance to the thoroughness and scope of measures previously imposed on the financial sector, both nearly a century ago and more recently in the United States.

Although the impact of these laws is confined to Europe, its reverberations will be felt on a global scale. Regulations originating in Brussels often serve as models for other jurisdictions, motivating tech platforms to implement adjustments on a worldwide scale. The comprehensive nature of these rules is prompting a shift towards a culture of compliance within certain companies, which contrasts with the techno-libertarian origins of Silicon Valley.

Sports

Spain Beats England, 1-0, to Win Its First Women’s World Cup Title

For a span of a few years, the England women's national soccer team had dedicated itself to dispelling the weight of past soccer disappointments and monumental breakdowns. In stark contrast to the men's team, which hasn't clinched a significant championship since 1966, the Lionesses had showcased a consistent winning streak. They effortlessly overpowered adversaries, exuded confidence throughout competitions, and in the previous summer, secured the title of European champions.

However, fate took an unexpected turn on Sunday in Sydney. The anticipated heartache that often accompanies donning an England jersey materialized at the most inopportune instance: during a World Cup final showdown against Spain.

Economy

Mitt Romney’s Political Journey Reaches a Crossroads

Senator Mitt Romney is at a crossroads, contemplating whether he's prepared for another political battle. The Utah Republican is on the brink of revealing his decision regarding a potential bid for a second term, following a tumultuous journey in politics that notably involved securing the GOP presidential nomination slightly over ten years ago. Romney's trajectory since then has been marked by complexities, as he's faced criticism from some Republicans due to his unwavering opposition to former President Donald Trump, highlighting the party's shift away from conventional conservatism.

Should he choose to run for re-election, Romney could find himself immersed in a challenging primary contest, given that a potential opponent has amassed significant endorsements. Additionally, he must grapple with the prospect of enduring another six years on Capitol Hill, a period that could be characterized by isolation, given his status as a dwindling type of Republican. Although he mostly adheres to the party's stance when voting, he's also been willing to collaborate with Democrats on issues like infrastructure, same-sex marriage, and firearms. At his current age of 76, should he secure another term, he would be 83 by its conclusion.