Coronavirus #3: We face “An international problem in a world of competing nationalisms:

[quote: Lindsay Hilson, Channel 4 News]: and it is nowhere more acute than in the EU (European Union). Here, every member country has pursued its own plan, uncoordinated with its neighbours and union members. From broader controls, to industrial economic stimulus, to healthcare planning, etc., each country has turned insular. And the banking systems is under pockets of extreme stress in the EU.

(1) Today, 6th April, 2020, we had expected a plan (albeit it circa three weeks since the first ECB liquidity plan) from the Eurogroup (finance ministers of 19 members of the EURO currency block) for the financial support of its members. It seems they can only agree to disagree.

(2) Tomorrow, the EU is supposed to bring a plan where all of its members (those int he EURO and the rest of the EU members) to act together, coordinate, help and support each other.

(3) It seems we are nowhere near a meaningful solution and that instead, we shall see a weak, fragmented and discordant response that will set back the EU, it members and the EURO many years … in short, it stands to lose its reputation in an instant, due to indecision and division on how to manage MONEY.

European Banks Prepared for a Crisis. But Not This One.

Coronavirus#2: How “CLIMATE RISK APPETITE” post COVID-19 may become a central element of enterprise and government planning

The collapse in global industrial production is likely to mark a nadir in global emissions, which, if we measure it, may provide a “Global Eyeball” of how we recover and how much of prior emissions are turned back on versus what happens if industries take a different path towards lower impact solutions.

The article below, provides some valuable thoughts on how to think of the next stage in global industrial production and how this might impact CLIMATE RISK APPETITE.

See also this recent post on CLIMATE RISK APPETITE:

CoronaVirus#1: Feedback on EU guarantee is excellent … keep helping –

ECB to print 1 trillion euro this year to stem coronavirus rout

There are three things I think are key to

(1) EU TEMPORARY GOVT DEBT GUARANTEE of Member Nations’ Govt Debt – this will stabilise a big part of the market and free up resources to help other key areas;

(2) CASH for Private Sector Companies, Employees & Self Employed – we need more focus on cash to end users;

(3) GOVT PRIVATE EQUITY FUND – we need the experts in the private sector to support governments to set up, run and make investments in critical firms – this is not about nationalisation, it is about temporary strategic private sector investments. We need to embrace the deals like Buffet does: 8% preferred equity plus warrant; or, convertibles, direct equity, mezzanine debt, etc. This will save critical firms, jobs, suppliers and make a return for the tax payer – it could spawn ongoing critical private/public investment like never before.