FT : Earth past its safe limits for humans, scientists say

Earth past its safe limits for humans, scientists say
Activities have pushed 7 of 8 planetary boundaries into risk zones, research finds

The earth is already past safe limits for humans as temperature rise, water system disruption and destruction of natural habitats have reached boundaries, a study by a group of the world’s foremost scientists has found.

The research, published in the journal Nature on Wednesday, identified eight earth system boundaries that included climate, biodiversity, water, natural ecosystems, land use and the effect of fertilisers and aerosols.

Human activities had pushed seven of these boundaries beyond their “safe and just limit” into risk zones that indicate the threat to planetary and human health, it said.

Researchers have traditionally focused on the effects of climate change or biodiversity loss on the planet itself, but the study from the Earth Commission group of scientists marks an attempt by experts to identify the limits after which humans will suffer significant harm.

That includes through a lack of access to clean water, lower food security and displacement or loss of work because of temperature rise or flooding.

Johan Rockström, director of the Potsdam Institute for Climate Impact Research and co-author of the report, said it was “very worrying” that most of the boundaries had already been breached.

“It’s starting to hurt already . . . causing extreme events and abrupt impacts which go beyond heatwaves, droughts and floods caused by climate [change], but also lower food security, worsening water quality, overdraft of groundwater [and] worsened conditions for livelihoods, particularly among the vast vulnerable majorities in the world,” he said.

“It’s not only climate causing risks of displacement, migration and potentially conflicts, it’s the totality of these breaching these safe and just boundaries.”


According to the research, the “safe and just” limit, which takes into account the impact on planet and people, for global temperature rise is 1C higher than pre-industrial times.

But this increase is already at least at 1.1C, or as much as 1.2C, according to the study. Under the Paris agreement, world governments pledged to limit the rise to 2C and ideally 1.5C, the level at which irreversible planetary changes are expected to take place.

The Earth Commission researchers said that at a rise of 1.5C, more than 200mn people would be exposed to unprecedented mean annual temperatures and more than 500mn could be exposed to long-term sea level rises.

Between 50 and 60 per cent of the earth needed to be covered by largely intact ecosystems — a level that had already been breached, the study said.

The use of nitrogen as a fertiliser needed to halve, it also concluded, to reduce the excessive growth of plant and algal blooms on surface water, and to lower ammonia and nitrogen oxide emissions.

The so-called Earth system is made up of many interdependent processes that keep the planet stable, but when disrupted alter its habitability.

Rockström said all of the various earth systems boundaries outlined in the research were “interconnected”, meaning that overshooting the safe limit for one could have a knock-on impact on others.

“If you want to solve the climate crisis, you need the other boundaries intact as well. When you have a climate crisis, you want a healthy planet . . . but we have a weaker planet than ever before,” he said.

The researchers used the same units of measurement to incorporate “justice” for people into scientific analysis as was used for the safe limits for the planet.

Xuemei Bai, an Australian National University professor and co-author, said that in “putting a number on human needs and impacts”, the study “shows how the protection of the planet is inseparable from the success of communities, societies and economies”.

Research from the Intergovernmental Panel on Climate Change this year found that the richest 1 per cent of the world’s population was responsible for twice the carbon dioxide emissions of the poorest 50 per cent.

FT : Lansdowne to buy investment boutique in long-only push

Lansdowne to buy investment boutique in long-only push
Deal for Crux cements evolution of what was once one of Europe’s leading hedge funds into a mainstream asset manager

Lansdowne Partners has agreed to buy UK investment boutique Crux Asset Management, a move that cements its evolution in recent years from one of Europe’s top hedge funds into a mainstream asset manager. 

The deal for Crux, which runs $1.1bn largely for UK wealth management clients, illustrates how rising costs and shrinking margins are forcing groups to tap new strategies and expand distribution channels.

The acquisition is the first in Lansdowne’s 25-year history. Founded in 1998 by Sir Paul Ruddock and Steven Heinz, Lansdowne was once regarded as the gold standard in equity investing, but its assets have shrivelled from more than $21bn five years ago to $7bn today.

Crux’s founder Richard Pease, previously a star manager at New Star Asset Management and then Henderson Group before setting up the company in 2015, will retire following the deal. The management of his two funds will pass to Lansdowne partner Daniel Avigad, who runs the firm’s European long-only strategy. Financial terms of the deal were not disclosed.

Lansdowne was for years synonymous with its UK equity hedge fund, later renamed as the Lansdowne Developed Markets fund. It was managed by Pete Davies and Stuart Roden, and had a strong long-term record.

When Lansdowne sold a 19 per cent stake in the business to Morgan Stanley Investment Management in 2006, the firm had more than $12bn in assets. That had grown to $21bn by the time Roden retired in 2018. 

But in recent years its hedge fund business has floundered as the more than decade-long bull run since the financial crisis made stock picking — as well as shorting shares — much tougher.

In 2020, Lansdowne said it would shut its flagship developed markets fund, run by Davies and Jonathon Regis, after a period of poor performance. 

Since then the firm has been predominantly focused on long-only investing, which charges lower fees. In early 2022, Brian Heyworth joined Lansdowne from HSBC Asset Management as co-managing partner to help diversify the business beyond its institutional client base of pension funds and endowments.

Last year, Crux sold a minority stake to Stephens, an independent financial services company headquartered in Little Rock, Arkansas.

Lansdowne will seek to tap Crux’s client relationships and partnership with Stephens to target the wealth management market in the UK and the US.

The Information : Why AI Scientists Are Freaking Us Out

Why AI Scientists Are Freaking Us Out

Well that’s one way to get attention. According to a statement issued today by a bunch of leading names in AI, “mitigating the risk of extinction from AI should be a global priority.” Right. It’s hard to imagine anyone out there disagrees—who but the most extreme misanthrope wants to extinguish the human race? The question, then, is why the very people responsible for AI’s development are suggesting it should be a priority to stop the new technology from killing off every human. Aren’t they the best people to ensure that doesn’t happen?

Yes and no. AI scientists want governments’ help, including via an “ambitious global coordination,” according to Dan Hendrycks, the director of the Center for AI Safety, which was responsible for the statement’s publication. Otherwise there’s a danger of “unchecked competitive pressures” leading to “bad outcomes,” he told me. That makes sense. But let’s face it: Given the difficulty that climate activists have had in getting nations globally to respond to the threat of global warming, and the current chilling of relations between the U.S., China and Russia, it will take more than this statement to bring about a globally coordinated regulatory response to AI.

Cynics will say we shouldn’t read too much into the statement, that the scientists are essentially virtue-signaling, preempting political calls for regulation by taking the lead in that campaign themselves. An alternative cynical view is that existing AI firms are simply pushing for regulation to make life difficult for future entrants. Either way, those involved with today’s statement are taking a big risk. It’s one thing to go before Congress, as OpenAI CEO Sam Altman has done, and acknowledge the “significant harms” posed by AI while calling for the drafting of legislation as a response. It’s another to describe those risks as extinction-level, on a par with “pandemics and nuclear war.” The only logical response to that suggestion is to ban AI—or regulate it so tightly that even firms already in the business suffer.

That’s surely not what these scientists are looking for. But what do they want? Perhaps instead of issuing a single-sentence statement meant to freak everyone out, AI scientists should use their considerable skills to figure out a solution to the problem they have wrought.

Crypto Spring? Hold That Thought
For much of 2023, bitcoin has been up and to the right—by the end of April, the world’s dominant cryptocurrency was up roughly 76%, which helped drive all kinds of silliness in the sector. May, however, has turned out differently. Bitcoin is on track to close the month down from where it ended April. And while bitcoin has directionally tracked the equities market over the past 18 months, its performance in May was worse than that of the stock market. The S&P 500, for comparison, is on track to close up nearly 1 percentage point for May.

And bitcoin’s weak performance isn’t the only indicator that crypto fans’ predictions of the sector’s recovery were premature. Consider this:

Yet another prominent crypto startup laid off 30% of its staff today.
Crypto venture funding fell 87% in the first quarter, according to PitchBook. The Block reported last week that one of crypto’s most prominent investors is now expanding its focus to include AI.
Trading volumes of non-fungible tokens have trended downward since early February, when a zero-fee marketplace for the digital collectibles drove a short-lived pop, according to data from Hildebert Moulié, a data scientist at Dragonfly Capital. That explains why at least one well-funded NFT startup decided to shut down two weeks ago.
That list of challenges doesn’t even include all the added scrutiny from regulators, complicating crypto company endeavors this year. The groundhog has seen its own shadow. The crypto winter isn’t over yet.—Akash Pasricha

WSJ : Yeezy Sneakers Go Back on Sale as Adidas Looks to Move Past Kanye West Con

Yeezy Sneakers Go Back on Sale as Adidas Looks to Move Past Kanye West Controversy
Launch is hotly anticipated by sneaker fans despite rapper’s antisemitic remarks

Adidas ADDYY -0.21%decrease; red down pointing triangle released the first batch of more than $1 billion worth of Yeezy-branded sneakers, putting in motion the final steps in the agonized, monthslong dissolution of its once-lucrative collaboration with rapper Kanye West.

The release, which Adidas promoted with an online countdown clock, was hotly anticipated by sneaker fans, eager to get their hands on what will be the final pairs of the popular shoe. Some earlier versions of Yeezy sneakers have become collectors’ items, fetching as much as $1,000 a pair on resale websites.

For Adidas, the move marks the awkward start to the final chapter of its disentanglement with West, after a series of antisemitic remarks and erratic behavior that made the musician and designer persona non grata to many of his one-time corporate partners.

The company has wrestled for months with how to dispose of all the unsold shoes it had in inventory when it ended its partnership with West last October, at which point it halted sales of the line. Adidas in recent weeks said it would resume sales of its Yeezy stock and donate some of the proceeds to antiracism organizations, though it hasn’t disclosed how much. It has also said it would pay royalties to West, who is now known as Ye, under the terms of his contract.

Despite the unique circumstances behind this Yeezy product launch, in recent days Adidas has ramped up the marketing hype much as it would with the release of any highly coveted product.

The Yeezy channel on its website featured a countdown to the moment when the first two Yeezy models—the Boost 350 V2 in two color schemes—would become available early Wednesday. And in a sign of the fierce demand that Adidas expected from sneaker fans, it invited consumers to sign up for a prize draw through which the $230 shoes would be allocated.

On social media, there was plenty of buzz about the release among sneaker fans, as collectors from around the world got ready to grab their Yeezys.

Still, the sensitivity around West’s racist remarks led Adidas to tread carefully as it considered various options for the sneakers, according to Chief Executive Bjørn Gulden. Having ruled out selling the shoes as normal, the company mulled burning the sneakers, giving them away or selling them after removing the Yeezy branding, before finally opting, in consultation with antiracism groups, to sell the shoes and donate some of the proceeds to charity.

Adidas recently said that the Anti-Defamation League, which fights antisemitism and other forms of prejudice, and the Philonise & Keeta Floyd Institute for Social Change, founded by George Floyd’s brother Philonise, would be among the recipients of donations from the Yeezy selloff. The Anti-Defamation League praised Adidas for reaching “a very positive outcome.”

The unraveling of the Yeezy collaboration, which analysts estimate contributed around 8% of Adidas’s total revenue, has been a major blow for the company. Adidas has lost money in recent quarters and said that a failure to sell the Yeezy inventory could result in hundreds of millions of euros of losses.

Adidas is now embarking on a turnaround under Gulden, who took charge of the company in January, as it seeks to bounce back from the debacle.

The company hasn’t disclosed how many pairs of sneakers it has made available in the initial release of Yeezy stock, or how they were received by consumers. The Yeezy channel on the Adidas website shows images of 14 models including the two that have been made available, suggesting that 12 more products are set for release over the coming weeks.

Sneakers can be a hot commodity and popular brands sometimes trade at even higher prices in the secondary market, making it likely that sneaker fans and collectors will overlook the controversies surrounding West and snap up the last Yeezy shoes while they still can.

>>> US Research Calls

Research Calls

  • Upgrades:
    • Avis Budget (CAR) upgraded to Buy from Hold at Deutsche Bank; tgt raised to $263
    • Chevron (CVX) upgraded to Neutral from Underweight at JP Morgan; tgt raised to $170
    • Q2 Holdings (QTWO) upgraded to Buy from Neutral at BTIG Research; tgt $36
    • Xylem (XYL) upgraded to Outperform from Neutral at Robert W. Baird; tgt raised to $135
  • Downgrades:
    • Ambarella (AMBA) downgraded to Sector Weight from Overweight at KeyBanc Capital Markets
    • BRF SA (BRFS) downgraded to Sell from Neutral at Goldman
    • PDC Energy (PDCE) downgraded to Neutral from Buy at Seaport Research Partners
  • Others:
    • America Movil SA (AMX) initiated with a Neutral at Goldman; tgt $24
    • argenx (ARGX) initiated with a Buy at UBS; tgt $480
    • Cedar Fair (FUN) initiated with a Buy at Goldman; tgt $50
    • Colliers (CIGI) initiated with an Outperform at RBC Capital Mkts; tgt $128
    • Five9 (FIVN) initiated with a Buy at Mizuho; tgt $100
    • Genmab (GMAB) initiated with a Neutral at UBS
    • Inventiva (IVA) initiated with a Buy at ROTH MKM; tgt $11
    • Liberty Latin America (LILA) initiated with a Buy at Goldman; tgt $10
    • MasterCraft (MCFT) initiated with a Neutral at DA Davidson; tgt $29
    • MDxHealth SA (MDXH) initiated with an Outperform at TD Cowen; tgt $7
    • MorphoSys (MOR) initiated with a Buy at UBS
    • Nevro (NVRO) initiated with an Outperform at RBC Capital Mkts; tgt $40
    • NICE (NICE) initiated with a Buy at Mizuho; tgt $244
    • PROCEPT BioRobotics (PRCT) initiated with an Outperform at William Blair
    • Qualys (QLYS) initiated with an Outperform at William Blair
    • SeaWorld Entertainment (SEAS) initiated with a Buy at Goldman; tgt $75
    • Six Flags (SIX) initiated with a Sell at Goldman; tgt $26
    • Telefonica Brasil (VIV) initiated with a Buy at Goldman; tgt $10
    • TelevisaUnivision (TV) initiated with a Buy at Goldman; tgt $6.10
    • Terns Pharmaceuticals (TERN) initiated with a Buy at ROTH MKM; tgt $23
    • TIM S.A. (TIMB) initiated with a Neutral at Goldman; tgt $15
    • Viking Therapeutics (VKTX) assumed with a Buy at ROTH MKM; tgt $32

>>> US Gapping down

Gapping down
In reaction to earnings/guidance
:

  • AAP -25.5%, AMBA -18.3%, HPE -8.4%, SPWH -7.8%, FRO -6%, HPQ -5.9%, UHAL -3.2%, CPRI -1.5%

Other news:

  • BLTE -37.2% (prices offering of ADSs and warrants)
  • ASLE -10.1% (prices secondary offering of 4.0 mln shares of common stock by selling shareholders)
  • PEPG -9.7% (clinical hold on IND application of PGN-EDODM1)
  • HRZN -8.8% (prices offering of 3.25 mln shares of common stock at $12.50 per share)
  • LTRX -8.6% (CEO to step down)
  • PUK -4.3% (CFO resigns; appoints Ben Bulmer as CFO)
  • EGO -3.8% (announces C$81.5 mln strategic investment by EBRD and concurrent C$135 mln bought deal financing)
  • COIN -2.9% (SEC settles with former product manager and his brother on insider trading charges)
  • MERC -1.7% (receives court approval to acquire Structurlam Mass Timber assets)
  • KODK -1.6% (acquires Graphic Systems Services)
  • BMBL -1.2% (president to resign)
  • FRPT -1% (responds to JANA Partners' letter)

Analyst comments:

  • PDCE -1.7% (downgraded to Neutral from Buy at Seaport Research Partners)

>>> US Gapping up

Gapping up
In reaction to earnings/guidance
:

  • BOX +0.5%

Other news:

  • LL +20.5% (F9 Investments prepared to consider an offer of $5.76/sh for LL)
  • CCO +3.9% (closes sale of Italy business to JCDecaux SE (JCDXF) for approx. $16.2 mln (EUR15.1 mln))
  • TWLO +3.7% (will lose supervoting protection next month; also co has been meeting with activist according to TheInformation)
  • CAE +3% (awarded $455 mln subcontract for US Army Flight School)
  • ANIK +2.1% (completes enrollment in Hyalofast phase 3 study)
  • NAAS +2.1% (announces $21 million of registered direct offering to certain investors)
  • IGMS +1.9% (announces FDA clearance to begin clinical studies of imvotamab in lupus and rheumatoid arthritis)
  • SMTC +1.2% (names new CEO)
  • SNY +1.1% (reports Phase 2 data of novel investigational anti-CD40L antibody frexalimab show significantly reduced disease activity in relapsing multiple sclerosis)

Analyst comments:

  • CAR +4.1% (upgraded to Buy from Hold at Deutsche Bank)
  • QTWO +2.9% (upgraded to Buy from Neutral at BTIG Research)

(Makor) STARB SS rights issue - one pager


All,

 

New rights issue in Sweden. Very small for SEK 450m or €38m.

Note that the company is issuing A and B shares so 2 spreads but the one-pager below is using the most liquid B shares.

Ticker of the A shares is STARA SS and right is STARTRA SS.

Was ex on May 29th and start trading tomorrow.