Climate

• Losses like this have become increasingly common, with 40% of central banks in developed countries recording deficits in 2023 (see the graph below).
• Understanding why central banks incur losses, and how these differ from those of private institutions, is crucial for understanding the current environment.
• Raising interest rates to make borrowing more expensive is one of the main levers central banks use to control inflation.
• Central banks had turned to QE to encourage spending because they could no longer lower interest rates, which had hit zero.
• But when the bonds fell in value and central bank interest expenses began increasing, central banks started incurring losses.

Why banks report losses

• Analysing financial statements from central banks in 155 countries over 23 years, we found they are significantly more likely to report slightly positive profits than slightly negative losses.
• Importantly, our findings suggest that central banks under pressure — particularly those facing extreme (right- or left-wing) leaders — are 19 times more likely to report small profits than small losses.
• For one, the actual losses central banks face may be even larger than in the graph above.
• Politicians and the media share responsibility for the climate in which central banks operate, and their responses to losses often determine how central banks will act in future.

• HOUSTON, Sept. 12, 2024 (GLOBE NEWSWIRE) -- ENGIE North America (ENGIE) announced that it recently closed a partnership with Ares Management Infrastructure Opportunities funds (Ares).
• This transaction represents the largest operating portfolio sell down for ENGIE in the U.S. and is one of the largest sales completed in the renewables sector based on total capacity.
• ENGIE will retain a controlling share in the portfolio and will continue to operate and manage the assets.
• “We are delighted that ENGIE and Ares will be partners in such a large-scale renewables and co-located storage portfolio to further accelerate the energy transition towards a net zero future,” said Dave Carroll, Chief Renewables Officer, ENGIE North America.

• "As interest rates shift, savers must stay informed and proactive," said John Blizzard, Founder of CD Valet.
• Given the rate forecast, locking in a 2-year CD at rates as high as 4.50% could be a prudent move.
• While shorter-term promotional rates might be attractive now, longer-term CDs can provide better overall returns as interest rates drop.
• By understanding their options and making strategic decisions, they can continue to secure favorable returns despite the changing interest rate environment."

• In the midst of a venture market low, Rethink Impact defied the odds in raising its third and largest fund yet, taking the Firm to more than half a billion dollars – the largest US venture fund backing female-led companies (Forbes).
• For nearly a decade, Rethink Impact has been investing in female-led tech companies closing equity gaps in health, education, climate, and financial services.
• Notably, the majority of Rethink Impact’s individual investors are women, ranging from self-made billionaires to global philanthropists to professional athletes.
• “When women have their full power in society, including access to capital to build large and successful businesses, we all thrive.