I know that cognitive dissonance can stress some people so apologies in advance if these stories from today’s business news in Australia give you the jitters. But many people, like me, will find them funny and get a good old-fashioned guffaw out of them. Or at least a smirk.

First, to corporate finance. A senior executive from the RBA, Australia’s central bank, gave a speech yesterday. That in itself is enough to prime most people for a laugh, given that many utterings from RBA senior executives are laughable. He said that Australia risked climate conscious global investors divesting from Australian business for greener opportunities. This is being referred to as a potential capital strike. I understand that he made these comments as a warning to Australian business for not being sufficiently green. But on the same page of the newspaper, a different report quoted the CEO of a major coal mining company saying the company is enjoying massive demand for its coal. That high demand, particularly in conjunction with rising prices, is creating booming revenue. Further, he said that with little increase in production of coal (globally) in recent years, this boom could last many years. In a previous post I mentioned that corporate finance options would evolve as traditional sources of finance were becoming, as the RBA man said, “climate conscious”. Sure enough, the coal executive explained how new sources of overseas capital are opening up, with particular emphasis on the likely long term funding from Asian debt capital markets to invest in and expand production capacity. I think the RBA chap should get out and about more.

Secondly, we turn to the current thorny issue of mandatory COVID vaccines for employees. Two of Australia’s four big banks were reported to have disclosed their policies. Westpac has introduced a compulsory jab policy. This was after it had surveyed its staff and found 91% were already fully or on their way to full vaccination status. According to the bank, the survey proved that the staff were supportive of this new policy which would keep everyone safe. Meanwhile, the ANZ bank also reported that it had surveyed its staff and it too found 91% on their way to full vaccination status. According to the bank, this showed a compulsory jab policy was not needed and it had no intentions of introducing one. So there you have it – how to interpret a survey result of 91% in two totally different ways. 

I think the atrocious Andrews government in Victoria, Australia is on its last legs and I think Trump will be re-elected POTUS. What’s not to like?

What just happened in Washington, DC? The Democrat controlled House of Representatives passed articles of impeachment against President Trump and then failed to deliver the articles to the Senate. Why not? The US constitution specifies the process to impeach a President. Up until last week, the Democrats were arguing that impeachment was an urgent necessity, the security of the country was as stake. Why the delay?

I can make no sense of this. The Democrats are now making themselves look silly. Now that the Congress is in recess over Christmas, some legal opinions say that the impeachment articles will lapse. Has the President been impeached or not?

The only possible reason that I can come up with for this delaying tactic is that the Democrats know the Senate would acquit the President and the impeachment process would go out through the same exit that the Russian Collusion and Mueller report went. If the impeachment articles are never delivered to the Senate, then the threat and distraction of impeachment remains and perhaps the public will become more supportive of the move. But in case, as it appears, that the bulk of the American public either do not care about the virtual impeachment, or in fact are more likely to support Trump as a result of this blatant partisan attempt to overturn the democratic process, an exit strategy is needed. That strategy is to make the case that the Senate obstructed the impeachment by not playing by the rules. Can anyone else explain this bizarre behaviour?

It seems that every Government regulator fears missing the bus. The bus with the giant mantra painted on the side that says ‘Business must address climate change!’ ASIC is the latest. It is reported in today’s press that ASIC will target companies that fail to disclose climate change risks to their shareholders.

I agree with ASIC’s conclusion: business should address climate change risks. Not because I believe that the earth is on a catastrophic path to being uninhabitable (it isn’t) but because of the policies and regulations that I fear weak-kneed right-of-centre governments will introduce. The difference between right-of-centre governments and those of the left is measured in time, not policy. The policies of the left are eventually implemented by the right.

I’m an unhappy shareholder of Westpac. There will be a lot of shareholder wealth destroyed before this sorry tale is over.

By way of background, Westpac stands accused by the relevant regulator of failing in its obligations to identify and report suspicious transactions that could indicate money laundering or terrorism financing. In this case, it is alleged that millions of dollars and transactions have been made through the use of Westpac accounts and payments systems to launder money ultimately used to facilitate child exploitation. Further, it is alleged that Westpac has known of these transactions for several years and has not acted.