GMO’s Post

My favorite presentation at the Islamic Development Bank Institute (IsDBI) Global Forum - the session by SettleMint on the Smart Stabilization System - an algorithm and full system to minimize #volatility on traditional and #Digitalassets ❓WHY IS THIS IMPORTANT❓ 📈📉Reduces volatility making #FDI and #investment in securities in emerging markets more attractive. 🌾🧑🌾This is also true for #international agricultural #commodities trading activity. Further less volatile prices allow countries to invest in more sustainable farming practices (waste, green energy, etc.). 🛢️⛽️This also holds for #crudeoil.

➡️ Today, our #G20TFF exploration brings us to the third pillar – calling for innovative financial instruments designed to power #SustainableTransition. 🌿 TFF lays the framework for instruments that are as effective as they are visionary. These tools are not just designed to fund the transition; they are crafted to accelerate it, with clear incentives for achieving climate targets, so that financial mechanisms become catalysts for change. #TransitionFinance ✅ This is where finance meets the future, creating tangible impacts and steering us towards our #ClimateGoals. ➡️ Learn more about TFF – check out our 2-pager 🔗 https://bit.ly/3RrjcYu U.S. Department of the Treasury | #PBOC | Kementerian Keuangan Republik Indonesia | Tesouro Nacional | Ministério da Fazenda | National Treasury of South Africa | South African Reserve Bank | International Labour Organization | OECD - OCDE | The Global Steering Group for Impact Investment (GSG) | ICMA - International Capital Market Association | Center for Climate-Aligned Finance | UNDP

Geneva: The United Nations Conference on Trade and Development (UNCTAD) has called for the redoubling of efforts towards economic diversification in countries where 60% or more of merchandise export revenues come from primary commodities, including crude oil, copper and wheat, for the sake of greener, inclusive growth. "With #Commodities #DevelopingCountries #Green #LeastDeveloped #SmallIslands #UNCTAD

With Pennipher Sikainda in the main news on state television, we discuss the implication of rising global crude prices on emerging and frontier markets such as Zambia. The Kremlin in Russia recently announced a temporal gasoline and diesel export ban to some countries in the quest to manage fuel pricing domestically but this action sent supply shivers in global fuel markets sending international Brent and WTI futures above $90 a barrel. Given rising geopolitical risks anchored on a Russo - Ukraine war, some schools of thought a skewed to believe the move has been used by Russia to use its position as the worlds second largest crude producer to weaponise the globes energy supply in retaliation to sanctions slapped on it yet its authorities said they are only managing a domestic fuel price inflation issue. My analysis is purely economic in nature delving into the implications of nearing $100 a barrel crude for importing nations. Some nuggets include: Compounding inflationary pressure: it’s a ‘head ache’ for policy makers as higher petroleum prices could exacerbate already existing price pressures and could subsequently force the hand of central banks to hike rates in the worst to tame the vice. (central banks have already been on a hiking streak the last 9 - 10 months sending interest rates to uncomfortable highs) Potentially higher fertilizer prices: crude is an input into fertilizer production and ballooning crude prices could soar fertiiiser prices which could transmit to higher global food prices which have slightly subsided from COVID and Eastern Europe war highs. Contractionary private sector pulse: input inflation is likely to send manufacturing pulse into contraction as measured by purchasing managers index (PMI) which in turn could slow already ‘rocky’ global economic recovery. As for Zambia, the current currency losing streak with a currency trading north of K20.8, rising crude could support petroleum price bears higher than K32 a liter at the next energy regulation board price review which re- echoes the central banks view of elevated inflation to 1H25.

💥 The New Banking on Climate Chaos report is out #BOCC The report, which investigates the #fossilfuel financing and policies of the world’s 60 largest banks, is the most comprehensive analysis to date and provides some truly alarming statistics. ❗ Fossil fuel financing from the world’s 60 largest banks has reached nearly $6.9 trillion in the eight years since the adoption of the Paris Agreement, with $705 billion in 2023 alone. 🚨 JPMorgan Chase & Co. Chase is the top financier of fossil fuels in 2023, by $40.8 billion worth. 🚨 Mizuho ranks as the second worst, providing $37.1 billion, while Bank of America is in third place. 🚨 The worst funder of fossil fuel expansion since the Paris Agreement is Citibank, providing $204.5 billion since 2016. 👍 The report also highlights frontline stories of people leading against destructive fossil fuel projects and companies around the world, including cases on which Fair Finance coalitions are working; like that of the Cirebon 2 power plant in Indonesia #FairFinanceIndonesia #Responsibank, #FairFinanceNetherlands Eerlijke Geldwijzer, #FairFinanceJapan and the Mozambique Liquid Natural Gas Project #FairFinanceCoalitionSouthernAfrica ℹ Find out more about the report at https://lnkd.in/exx2ScK #BankingOnClimateChaos #StopTheMoneyPipeline #FossilBanksNoThanks #EndFossilFinance Rainforest Action Network, BankTrack, CEED, Indigenous Environmental Network, Oil Change International, Reclaim Finance - ONG, Sierra Club, Urgewald African Climate Reality Project 350Africa.org EARTHLIFE AFRICA Centre for Environmental Rights Ah Maftuchan Herni Ramdlaningrum Dwi Rahayu Ningrum Barbara Oosters The PRAKARSA Yuki Tanabe ayako honkawa Naziha Tanoti

🌍 Emerging Market Alert! 💹 The landscape of government bonds in emerging markets is changing, and it's crucial to stay informed! Interest rates are on the rise, and the cost of borrowing is reaching new heights. How does this impact Jamaica and the broader Caribbean economy? Find out more and stay ahead of the curve with expert insights. 📈 Dive deeper into the shifting tides of sovereign bond issuance rates across emerging economies. Understand the trends, prepare for the future, and make informed decisions with Dawgen Global's strategic guidance. 🌐 🔗 Dive Deeper: dawgen.global 📧 Connect with Us: info@dawgen.global 📞 Caribbean Office: 1 876 929 3670 📞 USA Office: +1 786 673 3120 📱 WhatsApp Global: +1 876 5544445 #Finance #EmergingMarkets #GovernmentBonds #Economy #Investment #InterestRates #CaribbeanEconomy #GlobalFinance #Jamaica #BondMarket #StrategicInsights #DawgenGlobal

Global Sukuk – those shariah-compliant alternatives of bonds – are about to boom. Fitch Ratings predicts a trillion-dollar market in the near future, with 2024 set to see a surge in issuance. Why the hype? Here are some key drivers: Stable issuers: 80% are investment-grade, and most outlooks are positive. That's thanks to upgrades like Saudi Arabia's and Oman's. Pockets of growth: New markets like the Philippines and Egypt joined the party, while veterans like South Africa returned. Funding goals: Governments and companies see sukuk as a diverse, reliable funding source. But it's not all sunshine and souqs. Risks like geopolitical tensions, inflation, and sharia complexities could cast a shadow. So, where's the action? Core markets like the GCC, Malaysia, and Indonesia will remain strongholds. And watch out for ESG sukuk, the ethical investing trend making waves. The bottom line? Sukuk is on a tear, and 2024 promises to be a record-breaking year. P.S. What are your thoughts on the sukuk boom? Any markets you're particularly bullish on? Share your insights in the comments! Don’t be left behind! Visit FinFormed and start growing!: www.finformed.org #sukuk #islamicfinance #investing #fitchratings #growth #emergingmarkets

Chief Economist, David Greely, joins Commodities Global Summit Speaker Lineup in Lausanne This April, Chief Economist David Greely joins Trafigura's Global Head of Carbon Trading, Hannah Hauman, and Temasek's Co-Head of Legal and Regulatory, Jason Norman Lee, for a panel conversation moderated by Financial Times Commodities Correspondent, Susannah Savage. As debates continue to brew across #carbonmarkets, some corporate backers have pulled back or changed their approach, following media scrutiny of the #climate impact of #carboncredits but other options are limited. This forty minute session featuring global #carbon experts explores: - What #decarbonization approaches work best?  - What are industry and corporate best practices for #carboncredits?  - How are projects in the Asian region pioneering some of these? View Summit Agenda https://lnkd.in/eKF2BZq #FTCommodities

We believe Japan is undergoing durable fundamental improvements and lasting change in attitudes toward shareholders. GMO’s 7-Year Asset Class Forecast framework sees Japan small value equities poised to deliver strong absolute returns of 12%, ranking them amongst our highest forecasts. Four “4s” make us particularly excited about small value equities in Japan right now.

Niger, a seminal event in African ESG sensibilities? ECOWAS Bank for Investment and Development (EBID) #esg $esg @foreignaffairs @foreignpolicy @JDJames_Co @niger Islamic Development Bank (IsDB) ESG Book #esg $esg