The Wrap: Float - Stake Global

Central banks warn of the climate change threat, an introduction to the Tech Diaries, a deep dive into Disney, and the one Twitter account that has added more value to my life than any other.

52 stocks at 52-week highs

      • Avis Budget Group (CAR) +13.9
      • Main Street Capital (MAIN) +4.1%
      • DXC Technologies (DXC) +17.9%
      • Skechers (SKX) +5.6%
      • H&R Block (HRB) +9.8%

Float

The European Central Bank has quantified the effects climate change will have on European businesses and banks. Fires, floods, and rising sea levels have been accounted for to determine how the financial system will deal with climate change.

Fishing businesses have to account for rising sea levels potentially wiping out their processing centres, forestry-related businesses face the threat of wildfires destroying their revenue sources and banks have exposure to all threats from the loans on their books. The French and Spanish coasts were found to be most vulnerable.

At the very least, banks servicing at-risk businesses will need to increase their capital reserves. With that, the cost of accessing capital rises, growth is hampered and the world works hard to balance growth and a sound financial system. Unless of course, the risk of climate change can be abated.

Companies like Netflix are aware of the risk to business, even if framed as an altruistic venture. Over the last week, Netflix announced their path to carbon neutrality. It’s a long journey given they currently emit the CO2 equivalent of 240,000 cars annually.

To start, production will be localised to avoid long-distance travel. Equipment will be made more efficient as well as powered by renewable energy rather than fossil fuels. For example, set lighting will transition to LED rather than incandescent.

The next decade will prove if it’s good acting or the truth.

Tech Diaries

To all the engineers and developers interested in the tech powering Stake, this is the series for you. Stepping away from the market concentrated content we usually put out, the Tech Diaries is a new series unpacking the infrastructure making the Stake experience possible. Read the full blog here.

Under the Stocklight – Disney

You grew up watching the Lion King and graduated to King James playing in the NBA. Disney played its part in the whole journey. In this instalment, we put Disney Under the Stocklight. Get to know the companies origins, how they make money, and the future for Mickey and friends. Read the full blog here.

Top 5 Gainers

  • Humanigen (HGEN) +51.7%
  • US Concrete (USCR) +30.6%
  • United States Steel (X) +29.1%
  • Movado Group (MOV) +26.0%
  • Alcoa Corporation (AA) +20.2%

Top 5 Fallers

  • ImmunityBio (IBRX) -30.9%
  • Cerevel Therapeutics (CERE)
  • Prelude (PRLD) -29.0%
  • MetroMile (MILE) -24.6%
  • Novavax (NVAX) -21.1%

Trade Teaser

What grows down as it grows up? Answer to last week: Trail mix.

What We’re Following | @DegenRolf

The single most valuable Twitter account I’ve come across, Rolf Degen reveals the most insightful pieces of information hidden deep in the thousands of research reports published every month. For example, cheap wine was rated as better tasting when the price was increased or without stressors, peoples’ lives became duller. While the tweets focus on psychology and sociology rather than finance and markets, it’s worth breaking away from the norm for once.