Your Monday morning coffee briefing from TFG. Stagflation: Over 80% of US and UK businesses have been hit by increased costs due to inflation. The Bank of England’s (BoE) chief economist backs the case for raising interest rates, and the BoE warns that a CBDC could reduce commercial bank despotis by 20%. The U-shaped recovery – ICISA’s Richard Wulff discusses trade credit insurance and its bounce back from the pandemic. Dr. Joanna Burch-Brown explores the EU taxonomy and the ethics of green finance. And European gas shortages are expected to push up fertiliser costs and food prices.

Stagflation: Over 80% of US, UK businesses hit by increased costs due to inflation

New surveys on both sides of the Atlantic have found that the vast majority of businesses are struggling with inflation, and many are already passing on price hikes to consumers. Read more →

A Britcoin a day keeps the banks away

At a House of Lords Economic Affairs Committee hearing on CBDCs, Sir Jon Cunliffe, deputy governor for financial stability at the Bank of England, revealed some interesting findings on the potential impacts of Britcoin. Read more →

Bank of England chief economist backs case for raising interest rates

Huw Pill said there was unlikely to be any spike in unemployment after the end of the government’s furlough scheme for company workers, the economic recovery is mature, and inflation is likely to remain persistently too high if the BoE failed to raise rates. Read more →

PODCAST: U-shaped recovery – ICISA’s Richard Wulff on trade credit insurance and its bounce back from the pandemic

Looking back on the pandemic, Wulff said the experience of trade credit insurance can be described as a U-shaped recovery, with no change in appetite from market participants once conditions were more certain. Read more →

VIDEO: Dr. Joanna Burch-Brown discusses the EU taxonomy and the ethics of green finance

Dr. Joanna Burch-Brown, senior lecturer in philosophy at the University of Bristol, has been following the emergence of green finance from an environmental ethics perspective, and believes that the tools and policies we now have at our disposal are the most extensive yet. Read more →

European gas shortage will push up fertiliser costs and food prices

Natural gas accounts for about 80% of the variable costs of essential nitrogen fertiliser components such as ammonia. The ammonia price in Europe roughly tripled between January and March. Expensive fertiliser pressures food supplies. Read more →

Finastra expands Fusion LIBOR Transition Calculator

The move enables banks, corporates, and borrowers to calculate ARR in preparation for the end of the majority of LIBOR rates on December 31, 2021. Read more →

PODCAST: Getting SaaS into surety and credit insurance – Tinubu’s co-founder talks insurtech

As the trade finance industry shifts towards more digitalised ways of doing business, new niches are opening up within the market. One such niche can be found in digitalised trade credit insurance and surety markets, of which one of the largest players is Tinubu Square. Read more →