When, as Governor of the Bank of England, Mark Carney put the issue of climate change at the top of his agenda, there was much skepticism.
The Bank's mandate was to keep inflation under control and ensure there was no repeat of the 2008–09 financial crisis that had threatened to destroy the city and sparked George Osborne's austerity policies.
Carney, who sailed to become the UN ambassador for climate change, was right.
This year's U.S. hurricane season, which has already claimed 200 lives in North Carolina and devastated Florida, illustrates this point.
Indeed, Rachel Reeves' intention to restore climate risk monitoring as a goal of the Bank seems sensible.
Warning: When Mark Carney put climate change at the top of his agenda as Governor of the Bank of England, there was much skepticism
In recent trading, financial markets have focused mainly on U.S. headline inflation, which was 2.4 percent last month, slightly above expectations.
The cost of living does not appear to be dangerous enough to prevent further reductions in US interest rates from the current range of 4.75% to 5%.
If there was any doubt about a rate cut, hurricanes could be the deciding factor. Oxford Economics notes that about 2.8 percent of U.S. production is in the eye of Cyclone Milton, which is currently devastating Florida.
With 2,350 miles of exposed coastline and 20 million people, the state is important enough to stifle growth.
This is not the place for a “Just stop the oil” debate. However, weather events are becoming more frequent and more costly.
The numbers are trending upwards, jumping from 12 in 1961-1970 to 19 in 2011-2020.
The US National Oceanic and Atmospheric Administration estimates the cost of the storm at as much as $1.3 trillion (£1 trillion), or an average of $22.8 billion (£17.5 billion).
Some of the costs are covered by government disaster funds.
However, there is always a side effect of insurance. In terms of financial stability, the frequency and severity of storms create significant insurance and equity issues.
Estimates from the London insurance market suggest Milton could generate losses for a global industry worth $100 billion (£76.6 billion).
Cost of disaster: London insurance market estimates suggest Milton could generate $100 billion (£76.6 billion) in losses for global industry
A charge of this size would have a direct impact on Lloyd's of London and lead to a sharp increase in reinsurance rates.
According to current estimates, Milton could be as big as Katrina in 2005, but would not be catastrophic for an industry where risks are well spread.
But much the same was said about sub-prime mortgage derivatives, which acted as cluster bombs at the heart of the financial system.
While this season is proving disruptive, its impact on the United States should be relatively limited and mainstream insurers should be able to absorb the blow.
Sirens have been activated to indicate exceptional climate events that may impact stability.
Lost trust
The £10.9 million fine imposed by the city regulator on TSB for mistreating struggling families is not looking good.
This is a bit of a shame for former CEOs, especially Paul Pester, who held the position from 2013-2018.
He stepped down following the disastrous transition to a new IT system imposed on TSB by its new owners, Sabadell.
This will not entirely be welcomed by Debbie Crosbie, who took over from Pester and now runs Nationwide and is in the process of taking control of Virgin Money.
Historically, TSB customers have ranked lower on the income scale than larger mainstream banks.
Therefore, management should have realized the need to prioritize dealing with the most financially vulnerable customers.
The ruling came as Spain's BBVA tried to take control of TSB owner Sabadell with a hostile bid.
Could this be a chink in the armor?
A long goodbye
It took Unilever centuries to get out of Russia, which is a bit of a rum considering its ethical claims.
She argued that she felt loyal to her employees, who did not deserve to be punished for the war in Ukraine.
Not having a bowel movement probably didn't make much of a difference. Moscow's economy was kept afloat in part by Western goods flowing through Asia to avoid sanctions.
Disturbing!
DIY INVESTMENT PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund trading and investing ideas
interactive investor
interactive investor
Fixed fee investing from £4.99 per month
Saxo
Saxo
Get £200 cashback on transaction fees
Commerce 212
Commerce 212
Free transactions and no account fees
Affiliate links: If you purchase a This is Money product, we may earn a commission. These offers are selected by our editorial staff because we believe they are worth highlighting. This does not affect our editorial independence.
Compare the best investment account for you
Some links in this article may be affiliate links. If you click on them, we may receive a small commission. This helps us fund This Is Money and keep you free to enjoy it. We do not write articles promoting products. We do not allow any commercial relationships to influence our editorial independence.
