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The article discusses the failure of environmental, social, and governance (ESG) investing to deliver financial performance and societal benefits. It highlights the alignment of interests among politicians, regulators, financial institutions, and intermediaries that drove the housing bubble and the 2008 financial crisis. The article argues that ESG funds often ignore diversification and rely on inconsistent and oversimplified ESG scores. It also criticizes the European bias in ESG investing and the Securities and Exchange Commission's proposed climate-disclosure measures. The authors suggest that Congress and the White House should handle complex issues like the energy transition, and the SEC should require ESG funds to inform investors about nonfinancial factors and their impact on financial performance. [Extracted from the article]

The article discusses the issue of preventing bailouts in the financial system. It highlights how the government's response to the 2008 financial crisis with bailouts led to increased risk-taking and the expansion of financial regulation under the Dodd-Frank Act. However, the recent pandemic crisis revealed that the reforms failed to prevent another bailout. The authors argue that the solution lies in financing risky bank investments with equity and long-term debt, narrowing the funneling of deposits, and allowing run-proof institutions to emerge. They emphasize the need for political will to overcome the powerful interests benefiting from the current system. [Extracted from the article]

Rory McIlroy's bid to rejoin the PGA Tour's board was blocked by three other players, revealing divisions among influential players. Webb Simpson offered to give up his seat on the board on the condition that McIlroy replace him, but the situation escalated and McIlroy will not be returning to the board. The players who opposed McIlroy's return, including Tiger Woods, saw him as a threat to their power and disagreed with him on key issues such as a potential deal with LIV's Saudi backers. The PGA Tour downplayed the situation, stating that McIlroy would still be involved in shaping the Tour's future. [Extracted from the article]

The U.S. Treasury Department, along with British and Australian allies, has imposed sanctions on alleged Hamas financing networks, targeting currency exchanges and citing cryptocurrency transfers. The U.S. and its allies are working to shut down the primary channels Hamas uses to fund its fight against Israel, focusing on currency exchanges used by Hamas-tied owners to move millions of dollars, including cryptocurrencies. This challenges the traditional view that crypto is only used by terrorist groups for crowdfunding. The joint action also included the designation of Palestinian businessman Zuhair Shamlakh and three of his family members, as well as three Gaza-based currency exchanges and their owners. [Extracted from the article]

China's money markets are showing signs of distress, which is concerning given the country's existing economic challenges. The recent problems in the property sector and the insolvency of asset manager Zhongzhi Enterprise Group have contributed to this unease. While there is no immediate crisis, unusual rate movements and actions by authorities are causing worry. The increase in short-term interbank lending, particularly to nonbank borrowers, is exacerbating the situation. The government's massive new debt issuance and the rebound in short-term money market borrowing are also contributing factors. The falling U.S. dollar and slower capital outflows may alleviate some pressure, but the balancing act between government obligations and leveraged nonbank financial institutions is causing instability in the money markets. [Extracted from the article]

Default rates for low-rated U.S. companies will likely reach 3.75% for the 12 months ending in September 2023, up from 1.6% in September 2022, but lower than the long-term average of 4.1% and the 6.3% default rate in September 2020, ratings firm S&P Global Ratings said in a report earlier this week. Keywords: Pharmaceuticals; Diet/Nutritional Drugs; Retail/Wholesale; Pharmacies/Drug Stores; Household Goods/Hardware Stores; Specialty Retailing; Healthcare/Life Sciences; Specialized Drugs/Medications; Retail; Corporate Funding EN Pharmaceuticals Diet/Nutritional Drugs Retail/Wholesale Pharmacies/Drug Stores Household Goods/Hardware Stores Specialty Retailing Healthcare/Life Sciences Specialized Drugs/Medications Retail Corporate Funding N.PAG N.PAG 1 11/29/22 20221126 NES 221126 Default rates are expected to go up if inflation and debt-servicing costs remain high, ratings firms say Default rates are expected to go up if inflation and debt-servicing costs remain high, ratings firms say High-yield companies in the consumer goods, healthcare and entertainment industries are increasingly at risk of credit downgrades and even defaults as they battle rising interest rates and falling revenue, forcing some finance chiefs to consider alternative financing options. S&P so far this year through the end of October has issued 215 U.S. corporate credit downgrades - for both high- and low-rated companies - up from 158 the prior-year period but down from 759 in the 2020 period, when the Covid-19 dented companies' earnings. [Extracted from the article]

The article looks at investment strategies, as of 2013. It notes that both stocks and bonds appear poised to provide below-average returns in the near term and discusses strategies adopted by some investment advisors to achieve higher returns, including risk parity investing and the greater use of leverage. INSET: Risk Factors.

The article discusses the partnership between technology manufacturer Samsung Electronics Co. and Internet company Google Inc. in the smartphone market, focusing on concerns by Google that Samsung's sales dominance gives the company excessive leverage to renegotiate their agreement and threatens Google mobile advertising revenues. It is noted that Google Inc. also produces mobile devices with its Android operating system with competitors HTC Corp. and Hewlett-Packard Co.

The article examines risk parity, a financial strategy of improving pension fund returns by using leverage through derivatives and investing in commodities. According to the author, this strategy has been used to respond to low U.S. interest rates and reach returns large enough to support future retirees. Information is provided on financial companies that have advocated the use of risk parity, including AQR Capital Management, Clifton Group, and Bridgewater Associates.