US President Joe Biden is expected to sign many executive orders to reverse some of Donald Trump’s most controversial policies.
To begin his ground-breaking set of environmental policies, he will move to rejoin the 2015 Paris Climate Agreement.
What you need to know.
What is the Paris Climate Agreement?
Almost every country signed the Paris Agreement – 195 nations and the EU.
It was signed on December 12, 2015, after two weeks of wrangling at the Paris Conference of the Parties to the UN Framework Convention on Climate Change, or Cop21.
It is the first binding multilateral agreement on climate change and came into force in November 2016.
The accord sets a target of limiting warming of the planet to 2ºC above pre-Industrial Revolution levels, while aiming for an even more ambitious goal of 1.5ºC.
What did signatories promise?
Each nation that signed up committed to specific climate goals for their country, called nationally determined contributions.
The UK and Japan committed to net-zero carbon emissions by 2050.
There is also a system for developed countries, by far the worst polluters, to assist developing nations in mitigating the effects of climate change.
A new batch of national goals came into force at the end of 2020 and were supposed to stretch nations even further to cut carbon emissions.
But only 44 countries and the EU met this deadline and many of the contributions or targets stayed the same as in 2015 – some were even reduced.
There is no penalty for leaving the agreement but the US is the only nation to do so.
When did the US leave?
Donald Trump announced his intention to pull the US out of the agreement on June 1, 2017, saying it disadvantaged the US.
“The Paris Climate Accord is simply the latest example of Washington entering into an agreement that disadvantages the United States to the exclusive benefit of other countries, leaving American workers – who I love – and taxpayers to absorb the cost in terms of lost jobs, lower wages, shuttered factories and vastly diminished economic production,” he said at the time.
When the US signed the deal, it committed to cut climate pollution by between 26 per cent and 28 per cent from 2005 levels.
The decision to pull out by the world’s second-largest greenhouse gas emitter behind China was widely criticised.
Shortly after the US dropped out, Syria signed up, making the US the only country in the world that was not a signatory.
What else is Biden planning for the environment?
The journey back to setting an example on climate change is going to be an arduous one after four years of scientists being pilloried and environmental legislation withdrawn.
"We got off track very severely for the last four years with a climate denier in the Oval Office," John Podesta, an adviser to former president Barack Obama who helped to craft the 2015 Paris Agreement, told Reuters.
"We enter the international arena with a credibility deficit."
Nevertheless, Mr Biden and Vice President Kamala Harris have bold plans.
There will be a sweeping order to review all of Mr Trump's actions weakening climate change protection and the revocation of a vital permit for TC Energy's Keystone XL oil pipeline project from Canada.
There will also be a moratorium on oil and gas leasing in the Arctic National Wildlife Refuge, which Mr Trump's administration recently opened to development.
Sleep Well Beast
The National
4AD
The Rub of Time: Bellow, Nabokov, Hitchens, Travolta, Trump and Other Pieces 1986-2016
Martin Amis,
Jonathan Cape
'The Batman'
Stars:Robert Pattinson
Director:Matt Reeves
Rating: 5/5
The End of Loneliness
Benedict Wells
Translated from the German by Charlotte Collins
Sceptre
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
Name: Peter Dicce
Title: Assistant dean of students and director of athletics
Favourite sport: soccer
Favourite team: Bayern Munich
Favourite player: Franz Beckenbauer
Favourite activity in Abu Dhabi: scuba diving in the Northern Emirates