#17 Daily Financial News Round Up - Nov 17,2021
What news caught my attention?
The United Auto Workers (UAW) union went on strike at Deere a little more than a month ago amidst the rising inflation and lowered buyer purchasing power. The workers will return to work with raises and bonuses, providing a minor victory for worker unions.
US Banking system to include climate risk in their periodic stress testings. The guidance is aimed to be in line with global principles.
President Biden urges FTC chairman Lina Khan to investigate fossil fuel producers for anti-consumer behaviour with rising gas prices, citing their higher profits. Monopolistic anti-consumer behaviour is not what's increasing the gas price. Rather, it's the increased demand which outstrips the supply. Due to their green investors, fossil fuel producers such as Exxon and Chevron have had to scale back their investments in new production. The lesser investment resulted in a decrease in fossil fuel supply, increasing prices for their supply, resulting in higher profits for these producers.
My Takeaways:
Greening directly impacts prices, and I expect this to be short-lived. The higher gas prices are a combination of greening and high inflation. Expending energy to chase down unnecessary suspects is a waste of time.
US Banks to include climate risk in their stress testing. This is another huge step in the right direction.