#woke

Do as we say, not as we do

Take that. Despite living with the irony that half of the members of the Australian Council of Superannuation Investors (ACSI) fail to meet the very diversity quotas they expect ASX200 companies to hit, what a complete laughing stock to publicly tell conference organisers it won’t join unless there is a guarantee of gender balanced speaker participation. How about try to get the best diversity of thought for a speaking panel regardless of their identity? There won’t be a man in the audience who complains at a panel of superstar women speakers.

The ACSI demands are listed here. A default letter the ACSI uses is as follows.

“SAMPLE RESPONSE TO EVENT INVITATIONS

Thank you for your invitation to speak at [name of event]. ACSI has taken the Panel Pledge and will only participate in events which are gender diverse and inclusive. Before accepting your invitation, I’ll need some additional information to determine whether this event is consistent with our commitment.

Can you please confirm the following:

– Will there be a gender balance among speakers at this event?
– Will speaking roles be allocated equitably among genders?

If I agree to participate in this event, I reserve the right to withdraw later should I become aware there will not be a gender balance among speakers.

Thanks in advance for your support of our efforts to promote gender diversity.”

What if the ACSI was offered a chance to speak next to Mark Zuckerberg and Elon Musk for the third and final slot at an investor conference? Would ACSI turn it down to stick to its principlesb or be the first in line to take selfies to upload to Instagram?

Get woke, go broke.

This can only end in tears

ECB.png

As Sweden’s economy slows to the worst economic growth rate in 5 years under a negative interest rate policy, one would think the Swedish Central Bank (Riksbank) would be seeking to prudently manage its asset book on the basis of appropriate risk/reward as opposed to lecturing Australia and Canada on their respective carbon footprints. What we are witnessing is yet another discrete move by authorities to manipulate markets based on fantasy rather than fact.  The hypocrisy is extreme as we shall discover.

While the Riksbank should have complete freedom in how it wishes to deploy capital, we should view this is a pathetic sop to the cabal at the European Central Bank (ECB). Since when did central bankers become experts on climate change? The RBA is no better. Deputy Governor, Guy Debelle, gave a speech in March 2019 on the risks posed by climate change which based prophecies on the data accident-prone IPCC and Bureau of Meteorology. Why not seek balance? Easier to fold to group think so as not to be outed as a pariah. Utterly gutless. Our own APRA is also pushing this ridiculous agenda on climate change reporting. It is willful negligence.

While it is true that on a per capita basis, Australia and Canada’s emissions are higher than the global average, why doesn’t the Riksbank give us credit for lowering that amount 11.4% since 2000? Even Canada has reduced its carbon emissions by 7.3% over the last 18 years. Admittedly Sweden’s emissions per capita have fallen 21.9% according to the IEA. Greta will be happy.

Why hasn’t the Riksbank taken China or India to task for their 169.9% or 94.7% growth in CO2 emissions respectively? There are plenty of oil-producing nations – Qatar, UAE, Bahrain, Saudi Arabia and Oman that have worse per capita outcomes than Australia or Canada. Do these countries get special dispensation from the wrath of the Riksbank? Clearly.

The US has pulled out of the Paris Climate Accord. If the US has marginally lower emissions per capita (15.74t/CO2-e) than Australia (16.45t/CO2-e), isn’t a double standard to write,

The conditions for active climate consideration are slightly better in our work with the foreign exchange reserves. To ensure that the foreign exchange reserves fulfil
their purpose, they need to consist of assets that can be rapidly converted to money even when the markets are not functioning properly. Our assessment is that the foreign exchange reserves best correspond to this need if they consist of
75 per cent US government bonds, 20 per cent German and 5 per cent British, Danish and Norwegian government bonds.

Essentially Riksbank commitment to climate change is conditional. The US which is responsible for 13.8% of global emissions can be 75% of holdings. Australia at 1.3% can’t. No doubt sacrificing Queensland Treasury Corp, WA Treasury Corp and Albertan bonds from a Riksbank balance sheet perspective will have little impact on the total. In short, it looks to be pure tokenism. The Riksbank has invested around 8% of its foreign exchange reserves in Australian and Canadian central and federal government bonds. So perhaps at the moment, it is nothing but substitution from state to federal. Why not punish NSW TCorp for being part of a state that has 85%+ coal-fired power generation?

At the very least the Riksbank admits its own hypocrisy.

The Riksbank needs to develop its work on how to take climate change into consideration in asset management. For instance, we need a broader and deeper analysis of the issuers’ climate footprint. At the same time, one must remember that the foreign exchange reserves are unavoidably dominated by US and German government bonds. The Riksbank’s contribution to a better development of the climate will, therefore, remain small. This is entirely natural. The important decisions on how climate change should be counteracted in Sweden are political and should be taken by the government and the Riksdag (parliament).

Still, what hope have we got when Benoît Cœuré, member of the Executive Board of the ECB, lecturing those on “Scaling up Green Finance: The Role of Central Banks.” He noted,

2018 has seen one of the hottest summers in Europe since weather records began. Increasing weather extremes, rising sea levels and the Arctic melting are now clearly visible consequences of human-induced warming. Climate change is not a theory. It is a fact.

Reading more of this report only confirms the commitment of the ECB to follow the UN’s lead and deliberately look to misallocate capital based on unfounded claims of falling crop yields and rising prices (the opposite is occurring) and rising hurricane and drought activity (claims that even the IPCC has admitted there is little or no evidence by climate change). Sweden is merely being a well-behaved schoolboy.

Cœuré made the explicit claim, “The ECB, together with other national central banks of the Eurosystem, is actively supporting the European Commission’s sustainable finance agenda.

CM thinks the biggest problem with this “agenda” is that it risks even further misallocation of capital within global markets already drowning in poorly directed investment. It isn’t hard to see what is going on here. It is nothing short of deliberate market manipulation by trying to increase the cost of funding to conventional energy using farcical concocted “climate risks” to regulate them out of existence.

Cœuré made this clear in his speech,

once markets and credit risk agencies price climate risks properly, the amount of collateralised borrowing counterparties can obtain from the ECB will be adjusted accordingly.

What do you know? On cue, Seeking Alpha notes,

Cutting €2bn of yearly investments, the European Union will stop funding oil, natural gas and coal projects at the end of 2021 as it aims to become the first climate-neutral continent.

All CM will say is best of luck with this decision. Just watch how this kneeling at the altar of the pagan god of climate change will completely ruin the EU economy. The long term ramifications are already being felt. The EU can’t escape the fact that 118mn of its citizens (up from 78m in 2007) are below the poverty line. That is 22% of the population. So why then does Cœuré mention, in spite of such alarming poverty, that taking actions (that will likely increase unemployment) will be helped by “migration [which] has contributed to dampening wage growth…in recent years, thereby further complicating our efforts to bring inflation back to levels closer to 2%.

Closer to home, the National Australia Bank (NAB) has joined in the groupthink by looking to phase out lending to thermal coal companies by 2035. The $760 million exposure will be cut in half by 2028. If climate change is such a huge issue why not look to end it ASAP? This is terrible governance.

Why not assess thermal coal companies on the merits of the industry’s future rather than have the acting-CEO Philip Chronican make a limp-wristed excuse that it is merely getting in line with the government commitment to Paris? If lending to thermal coal is good for shareholders in 2036, who cares what our emissions targets are (which continue to fall per capita)? Maybe this is industry and regulator working hand-in-hand?

The market has always been the best weighing mechanism for risk. Unfortunately, for the last two decades, global central bank policy has gone out of its way to prevent the market from clearing. Now it seems that the authorities are taking actions that look like collusion to bully the ratings agencies into marking down legitimate businesses that are being punished for heresy.

This will ironically only make them even better investments down the track when reality dawns, just as CM pointed out with anti-ESG stocks. Just expect the entry points to these stocks to be exceedingly cheap. Buy what the market hates. It looks as though the bureaucrats are set to make fossil fuel companies penny stocks.

ESG Blacklisted portfolio

ESG (Environment, Social Responsibility & Governance) blacklisted stocks. We all know deep in our hearts that vices are far more fun than virtues. Real Coke tastes better than Diet Coke. Full cream is better than skim. McDonald’s fries are tastier than mashed potato. CM made this point in yesterday’s piece on the irresponsibility of socially responsible investing for building a retirement nest-egg given the long term underperformance.

When all of this politically correct ESG investing meets a recession, these oversold anti-ESG darlings, many with gobs of free cash will look like total bargains. Suffice to say in a downturn, vices tend to be what people resort to.

All CM cares about is the G in ESG. Governance is a must for investing. E & S are merely subjective views which don’t automatically convert to shareholder value. Good governance goes without saying.

So perish the thought that CEOs, like Harvey Norman’s Katie Page are being attacked by the likes of Ownership Matters which thinks putting in a shareholder activist who has failed 49 times out of 49 to be appointed to ASX listed boards is a better bet? As Janet Albrechtsen of The Australian wrote,

A copy of the report obtained by The Australian reveals Ownership Matters has recommended that Stephen Mayne be elected to the board of the retailer, even though the 50-year-old has no corporate experience in retail or property, no corporate board experience and no corporate management experience…Harvey Norman has a market capitalisation of $5.2bn, and shares in the retailer have gained more than 32 per cent over the past year, outperforming the 16.4 per cent gain in the benchmark S&P/ASX 200 over the same period…The advice sent out on Monday has baffled Ms Page’s husband, the business’s billionaire co-founder Gerry Harvey, who remains its largest shareholder, retaining ­direct ownership of almost a third of the company. “I have been on a public company board as chairman since 1972, and I have never seen anything as bizarre as the fact that the best ­retail executive in Australia is to be replaced by a ratbag called ­Stephen Mayne who has been a proven failure … every time he’s run for a board seat,” Harvey said.

 

South Park shuns PC in women’s sports

South Park has never won any prizes for political correctness which is why the formula continues to be so successful. This episode mocks the current obsession of accepting trans females in women’s professional sports.

N.B.it contains profanity.

To think poor old Martina Navratilova was eviscerated by activists for pointing out the obvious with respect to biological males playing female sports. Despite being such a positive role model for her community in the tennis world, the loony left can’t face biological facts.

Can we defund SBS too?

This isn’t journalism. This is alarmist quackery for the sake of it. Venice has been subject to flooding for centuries. While the floods in Venice now are the highest for over 50 years, it still means that floods were higher in 1966. Let that sink in. Presumably it wasn’t climate change driven back then.

One can only imagine what a Venice Council could possibly do to combat climate change? Perhaps ruin the skyline with wind turbines and solar panels atop the roofs of the Rialto Bridge or San Marco Square?? To alarmists, no amount of tokenism is too little. Claim a climate emergency and show how worthy you really are.

No matter what the Venice Council does to “combat” climate change it will have no effect. Maybe the gondola union can indulge in some crony capitalism and demand that the €7.50 Vaporetto passenger ferries are banned so they can charge €150 to go from Santa Croce to Piazza San Marco instead. At least gondolas are zero emission vessels.

The SBS needs to grow up and deliver proper well reasoned content for the $400m in taxpayer funds it receives.

A message to Australia’s local councils

As yet another local council strays out of its lane to appear woke over Australia Day, Jonathan Pie has a message for them. Put simply, these people are finding sources of oppression where none exist. CM wrote about this over the Inner West Council in Sydney’s plan to ditch Australia Day. The survey which the decision was based was laughable. 35 people out of 200,000 were asked.

It is unlikely that any residents in Wanneroo would deny a broadening of cultural festivities but what is it with these radical left councils that think the best way to promote inclusivity is by exclusion for the rest? Take it away Jonathan!

ABC MD issues an apology with a feather duster

Image result for qanda

Good to see it took the ABC three days to come up with this response to the diabolically toxic Q&A program which hosted an expletive-laden show with a bunch of feminists. Pathetic. The producer will be hit over the knuckles with a feather duster.

Monday night’s episode of Q&A was presented in conjunction with The Wheeler Centre’s feminist ideas festival, ‘Broadside’. The intention of the program was to present challenging ideas from high-profile feminists whose expertise ranges across ageism, disability, Indigenous and domestic violence issues.

The ABC acknowledges that the program was provocative in regard to the language used and some of the views presented.

Q&A has always sought to tackle difficult issues and present challenging and thought-provoking content. However, I can understand why some viewers found elements of this episode confronting or offensive.

We have received audience complaints about the program, are assessing the concerns raised and will investigate whether the program met the ABC’s editorial standards.

Huh? Investigate whether it met editorial standards? Just read the transcript,

Some choice moments that have so much balance that even Mary Whitehouse would have accepted the content, are presented here,

MONA ELTAHAWY

“Well, you’re asking the person here who travels the world to say fuck the patriarchy, so I think that what we have to do is start seriously talking about dismantling patriarchy. And when I talk about patriarchy, I’m talking about a white-supremacist, capitalist, imperialist patriarchy…

I go online exactly to tell people to fuck off when they attack me, and I’m very well-known for it...

FRAN KELLY

And at this point, I will utter a language warning on the program, and remind our guests.

MONA ELTAHAWY

No, honestly, it’s… You know, this idea of respectability, this idea of civility, this idea of unity, all of these words, decorum, who invented those words? Those words were invented by white men for the benefit of other white men in systems and institutions that were always designed to be for white men. And they weren’t designed for women like you and me and so many others. Like you said, people of colour and gender-diverse people. They never imagined us in those spaces, and then we show up and we just ruin it for them….

And so those who abide by the system – and Barack Obama was part of the system and remains part of the system… I also disagree with his wife when she says, “When they go low, we go high.” No I fucking don’t. If you go low I’m going to come for you. So, no, I do not have the luxury or the privilege to sit there and be civil with people who do not acknowledge my full humanity. I refuse. Number one…

…So, for those who say, “Be civil,” for those who say, “Be polite,” I have an entire chapter on the political importance of profanity, and I remind them of a Ugandan feminist called Dr Stella Nyanzi who is currently in prison in Uganda because she wrote a poem on Facebook wishing that the mother of the dictator of her country had poisoned him, that her birth canal had poisoned him during birth. And when she was taken to court and doing her sentencing, she was video-taped in, because she’s known for her profanity, she stood there in the video, she took off her top, she jiggled her breasts and she said, “Fuck you, fuck you, fuck you!” In court!“…

…Nothing. For me, as a feminist the most important thing is to destroy patriarchy. And all of this talk about how, if you talk about violence, you’re just becoming like the men. So, your question is a really important one but I’m going to answer it with another question. How long must we wait for men and boys to stop murdering us, to stop beating us and to stop raping us? How many rapists must we kill? Not the state, because I disagree with the death penalty and I want to get rid of incarceration and I’m with you on the police. So I want women themselves… As a woman I’m asking, how many rapists must we kill until men stop raping us?

We all know what will happen. Assurances by the ABC it will never happen again until the next time which won’t be that far away. We were promised that when Q&A got in trouble over giving a platform to a man who pleaded guilty to threatening to kill ASIO and DFAT officers, Zaky Mallah who went on a rant against then conservative MP Steve Ciobo. Who could forget the “@AbbottLovesAnal” hashtag the show gladly allowed during the former PM’s term? A mistake, honest. Just like Triple J’s guide to blowjobs.

The ABC should be defunded and forced into the TVNZ business model of having to provide content customers are willing to look at and advertisers willing to support. If the organization is so confident it has an audience for its content, it should put its confidence where its mouth is.

If you want to look at why the ABC doesn’t need more money, look at the staff costs to income ratio. Despite plateauing between 2008 & 2011 it quickly exploded. It now sits at 46% of the government handout generated. That is $524mn on staff costs per year and rising. 4,939 staff grace the ABC. Funding per employee is $232,000. A decade ago it was $232,700. Is that what the management target for hiring? Give the ABC $2bn and presumably, it will have employment costs of $1bn.

Channel 9 must fight hard for every advertising penny but still manages a 29.1% staff cost to revenue ratio. $380m in staff costs on $1.3bn revenue. 3,310 employees convert to $392,750 in revenue per staff member.

Sevenwest Media raked in $1.62bn in revenue on staff costs of $395mn or 24%. The same cutthroat world of earning a living instead of feeling entitled to one. Seven West has 4,528 staff meaning it generates $357,800 in revenue per employee.

Maybe ABC should be forced to channel the New Zealand state broadcaster, TVNZ. After all ABC fawns over NZ PM Jacinda Ardern, all the time and she hasn’t demanded the state take TVNZ back to a taxpayer-funded model. It gets $310m of its $318m purse from advertising. It’s staff costs excluding capitalizing into programs is $72m which converts to 23% staff cost/revenues. They do with 642 FT employees. Revenue/employee is $495,000. It paid a dividend back to the government of $3.7m. i.e. it is a revenue-generating asset.

In 2007, TVNZ had $339m in revenue. It employed 1,023 people. Therefore revenue per employee was $331,380. So in a decade, TVNZ efficiency improved almost 50%. A 6% cut to revenue on 63% of the staff.

Instead of the long term ratings slide at the ABC across metro and regional Australia, TVNZ’s figures keep improving. Last year, TVNZ had a 43.2% all day audience up 1.3%.

Comparing 2017/18 and 2015/16 at the ABC we see that TV audience reach for metro fell from 55.2% to 49.7% and regional slumped from 60.3% to 54.0%. If we go back to 2007/8 the figures were 60.1% and 62.4% respectively. For the 2017/18 period, the ABC targets 50% reach. Hardly a stretch.

ABC clearly has no place receiving funding with content like this. As it stands, the ABC isn’t out of control. It is in full command of its content. The Minister for Communications has lost control and continues to let the broadcaster do as it pleases – even allow shows with Aboriginal actresses pretending to defecate on white people or kids programs that take a stab at white privilege. The ABC is so left-leaning it would make Stalin’s Pravda blush for being too conservative.

The ultimate irony is that things are so bad at the ABC that the latest Annual Report revealed a survey that showed staff engagement at 46%, 6 points lower than the previous survey which placed the organization in the bottom quartile of ALL Australian & NZ businesses. It is so bad that many staff complained that poor performers are not dealt with but tolerated.