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Climate change versus businesses, who will win?

While government workers are still waiting to get paid, the Labor Department published a new report t
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Climate change versus businesses, who will win?
By Hipsternomics  • Issue #56 • View online
While government workers are still waiting to get paid, the Labor Department published a new report that claims the number of Americans applying for jobless (unemployment) benefits last week dropped to its lowest in 49 years. Let’s get into this week’s digs.

CEOs at Davos - "hey Google, how does climate change affect my business"
CEOs at Davos - "hey Google, how does climate change affect my business"
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How does climate change affect the businesses we use daily? Let the CEOs weigh in.
CDP, a U.K.-based nonprofit recently conducted a survey report asking about 7000 companies to assess their environmental impact, “including the risks and opportunities they believe climate change presents for their businesses.” While consumers may think of global warming and climate change as “oh shit the weather is 100 degrees today”, companies are thinking of it as business risks or opportunities. Example, Bank of America seems worried that flooding would cause homeowners to default on their mortgages. Disney is concerned that its theme parks will get too hot for families to visit for vacations, AT&T’s worst fear is that hurricanes and wildfires may knock out its cell towers, and most important of all Coca-Cola “is wondering if there will still be enough water to make Coke.”
So how does climate change affect a global business? Let’s ask Intel: “Many of Intel’s operations are located in semi-arid regions and water-stressed areas, such as Israel, China and the southwestern United States. If climate change causes longer droughts in those areas, it could potentially lead to increased operational costs since the semiconductor manufacturing process relies on access to water.” - Intel Corp. For AT&T, it disclosed that frequent hurricanes and wildfires could force the company to spend more money on repairing damage to its network, which also noted that disasters cost its business $627 million in 2017. Bank of America also reported that 4% of its U.S. housing loans are in flood zones, and “could lead to homeowners defaulting on their mortgage payments if flood insurance premiums become unaffordable, and housing values going down as a result.”
Some companies see climate change as opportunities According to Home Depot, more disasters will mean increased sales, and as temperatures increases, people will need more air conditioners, thereby creating higher demand for its home improvement and construction business. For pharmaceutical companies like Merck, they are banking on one thing - climate change = more people will get sick = they can sell more products to treat new weather-related diseases.
Chart of the week
Tech companies blowing money to lobby politicians
Tech companies blowing money to lobby politicians
In Case You Missed It
Nigerian tech startup, Andela, bags $100 million funding to expand its efforts of training African computer programmers to work remotely for American corporations. The company now operates in Kenya, Uganda, and Rwanda, and has about 1,100 developers who are working for more than 200 companies, mostly based in the U.S. The company is funded by organizations separately led by both Zuckerberg and Al Gore.
Streaming war heats up as Hulu drops its price Let’s play good-cop-bad-cop. Netflix raise prices by $2, Hulu lowers price by $2 for its basic plan, which will now cost $6/month. But, Hulu actually plans to make back that measly $2 by raising the price of its Live TV plan from $40 to $45 per month. Hulu added 8 million new subscribers in 2018, bringing its total to 25 million, while Netflix has 139 million total subscribers.
Media companies layoff about 1000 workers this week BuzzFeed, HuffPost and Gannett (largest newspaper chain in U.S.) all announced layoffs totaling about 1,000 jobs. BuzzFeed will lay off 15% of its workforce, or about 220 employees; Verizon plans to cut 7% or approximately 800 jobs from its media division, which includes like HuffPost, AOL, and Yahoo News; and Gannett is expected to cut dozens of jobs at newspapers across the country. With all these journalists getting laid off, I heard Hipsternomics is looking for interns? #plug
Starbucks brews up first-quarter profits fueled by “focusing more on the coffee” and China, expanding its store base by 18% last quarter to nearly 3,700 outlets. While the coffee chain has been working to improve customer service in its U.S., it has also been developing healthier drinks and plans to expand its coffee delivery to about 2,000 stores in six cities, this spring. Starbucks posted a profit of $760.6 million last quarter and increased the number of active loyalty program members in the U.S. to 16.3 million.
PG&E gets cleared from 2017 fire, stock jumps 75% California investigators cleared PG&E of liability in the October 2017 Fire, stating that it was caused by a private electrical system. Although, Investigators have already determined that “PG&E’s equipment was liable in at least 17 major wildfires in 2017”, being cleared of one major 2017 fire gives the company hopes that it may not be found liable for the November 2018 Camp Fire that took 86 lives and destroyed about 14,000 homes. PG&E stated in court that if found liable for the 2018 fire, it would “inevitably need to turn to California ratepayers for funding, resulting in a substantial increase, estimated one-year increase of more than five times current rates in typical utility bills.”
Companies mentioned in this issue (52-week): Bank of America (-8%), Disney (0%), AT&T (-18%), Coca-Cola (-1%), Apple (-8%), Johnson & Johnson (-11%), Home Depot (-12%), Wells Fargo (-23%), Merck (+19%), Google (-7%), Netflix (+25%), Verizon (+5%), PG&E (-72%), Starbucks (+10%).
Resources of the Week
Book: Frames Of Mind: The Theory Of Multiple Intelligences - by Howard Gardner. Just picked up this book as my next read starting tomorrow. If you’ve read it, please share your thoughts.
Resource: Postmake.io - A directory of the best tools and resources for your projects. Browse and search through 250+ tools.
Thank you for taking the time to read through today’s news brief! If you enjoyed any of these articles, please share or forward it to a friend. Have a great weekend.
This brief was written while listening to “Sounds of Crenshaw vol. 1” album by Terrace Martin.
Valentine (@vtineike)
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