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Risk Channel
North America
Geopolitical risks 'may be underestimated after U.S. action in Venezuela'

Some investors are warning that geopolitical risks are being underestimated following the military actions of U.S. President Donald Trump's administration in Venezuela over the weekend and the threat of further action in the Americas. "There should be broader geopolitical implications from this event, but in my view, the financial markets are not very efficient in pricing such risks accurately," said Tai Hui, chief market strategist for Asia-Pacific at J.P. Morgan Asset Management.

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Risk Channel
UK/Europe
EU's carbon border tax comes into force

The carbon border adjustment mechanism (CBAM), the EU’s landmark carbon border tax which covers six sectors including steel, cement, aluminium and electricity, came into force on January 1. The rules aim to create a level playing field by making sure that competitors from countries with poor environmental standards cannot undercut EU businesses, while also encouraging decarbonisation. Stéphane Séjourné, the European Commission’s executive vice-president for prosperity and industrial strategy, said European companies should welcome the CBAM. “European industrial producers should be encouraged – and not deterred – in their decarbonisation efforts,” he said. “This CBAM reform brings crucial and long-awaited measures to ensure a level playing field between EU and non-EU industrial producers. By strengthening CBAM, we support our industry’s decarbonisation and secure European players’ competitiveness on the world stage.”

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