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World still on track to exceed warming of 1.5C this year, EU agency says

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The global temperature rise is expected to hit an average of 1.55C above pre-industrial levels this year, the latest data from the EU earth observation agency confirmed, making it “virtually certain” to be the warmest on record.

The forecast temperature rise in 2024 compares with a climb of 1.48C in 2023. It represents a temporary breach of the ideal goal of no more than 1.5C, which is enshrined in the Paris climate agreement, a value that is measured over decades rather than just a single year.

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Last month was the second-warmest October on record, and the 15th in a 16-month period for which the global average exceeded 1.5C above preindustrial levels. The average sea surface temperature hit 20.68C, the second-highest value on record for October, Copernicus reported.

The data came as climate experts feared action to tackle climate change would be hobbled by Trump’s promise to pull the US from the Paris accord. Almost 200 countries will meet in Baku next week at the UN COP29 summit to discuss the next stage of climate action.

The “new milestone in global temperature records” should “serve as a catalyst to raise ambition for the upcoming climate change conference”, said Samantha Burgess, deputy director of Copernicus.

Current government policies globally would lead to 3.1C of warming this century, the UN’s environment programme recently reported. Already it is estimated the planet has warmed by at least 1.1C, based on an IPCC body of scientists’ report in 2021.

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“Assuming that Trump will indeed follow through on the rhetoric, the jury is still out on whether other countries will step up to fill that gap,” said Joeri Rogelj, research director at the Grantham Institute.

Scientists have linked a series of catastrophic events in recent months to the excess heat stored by greenhouse gases in the atmosphere and absorbed by the world’s seas from the burning of fossil fuels.

Flash floods in southern and eastern Spain were made more intense and twice as likely by climate change, according to a rapid analysis by scientists at World Weather Attribution.

These followed a severe hurricane season in the US and the Philippines, while Taiwan also suffered its biggest direct typhoon hit in 30 years. 

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October also saw above-average rain in parts of Europe, the east of the Black Sea, parts of China, Australia and Brazil, while much of southern Africa was drier than average, with “ongoing drought” across the US. 

The naturally occurring Pacific Ocean warming phenomenon known as El Niño has contributed to a jump in global temperatures this year. A switch is under way to the reverse the cooling La Niña phenomenon across the Pacific, with the probability of it occurring between November and January put at 75 per cent, according to the US National Oceanic and Atmospheric Administration. This was already pushed back from previous forecasts, as the warming phenomenon persisted for longer.

Nonetheless, the average temperature anomaly for the rest of 2024 “would have to drop to almost zero to not be the warmest year”, Copernicus concluded.

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Where climate change meets business, markets and politics. Explore the FT’s coverage here.

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Hyatt and Grupo Piñero to join forces in new venture

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Hyatt and Grupo Piñero to join forces in new venture

Affiliates of Hyatt and Grupo Piñero should soon be entering into a long-term joint venture to manage Bahia Principe-branded hotels and resorts and own the Bahia Principe brand on a 50/50 basis that will expand Hyatt’s all-inclusive room portfolio by approximately 30 per cent

Continue reading Hyatt and Grupo Piñero to join forces in new venture at Business Traveller.

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Chinese exports soar as Beijing prepares for renewed trade tensions under Trump

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Chinese exports soar as Beijing prepares for renewed trade tensions under Trump

China could respond to aggressive new tariffs with bigger stimulus action or currency depreciation, say analysts

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Farmers’ tax break merely pushed up UK land prices

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Banker all-nighters create productivity paradox

Far from “protecting the family farm”, as claimed by Tom Bradshaw, president of the National Farmers’ Union (Opinion, FT.com, November 5), the inheritance tax loophole on farmland, introduced in 1984, simply pushed up the price of land without improving returns to active farmers.

This is because, like most agricultural subsidies, the value of the relief was capitalised into land values. As tax planners cottoned on to its role as a licence to avoid IHT, they advised their super-rich clients to buy land and take advantage of it. In the 20 years to 2012, the price of farmland increased fourfold.

This turned landowning farmers into millionaires but — especially since land represents a cost of production — did no good to the incomes of food producers. It created impoverished millionaires who claimed a need for more support. At the same time, because more expensive land had to be squeezed even harder for the last drop of revenue, the environmental damage caused by intensive agriculture was made worse. Taking at least some of this tax loophole away will do no harm to family farmers but will help both public revenues and the environment.

Just a shame the relief was not wholly abolished.

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Paul Cheshire
Emeritus Professor of Economic Geography
London School of Economics, London N7, UK

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Ananda in the Himalayas unveils luxurious new suites

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Ananda in the Himalayas unveils luxurious new suites

These luxurious accommodations join the renovated Ananda and Viceregal Suites, showcasing the retreat’s commitment to understated elegance.

Continue reading Ananda in the Himalayas unveils luxurious new suites at Business Traveller.

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A simple-to-implement plan to cut the trade deficit

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Banker all-nighters create productivity paradox

Robert Lighthizer suggests that to reduce the trade deficit the US could impose a system of import-export certificates (Opinion, FT.com, Nov 1), legislate for a capital access fee on inbound investment, and use broad-based tariffs to offset the unfair industrial policies of rival states.

But this would ultimately harm US workers and threaten global financial stability and growth. Foreign countries would undoubtedly retaliate, and the cost of capital in the US would rise. He conveniently ignores a simple-to-implement measure which, by the logic of national income accounting, would help to reduce the trade deficit: an increase in federal taxes.

George Hoguet
Chief Executive, Chesham Investments, Brookline, MA, US
Former Principal Deputy Assistant Secretary of the Treasury for International Affairs

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Let’s admit it, Gen Z is facing unique challenges

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Banker all-nighters create productivity paradox

I was relieved to read the article by Amy Borrett entitled “Hard times mean Gen Z finds life tougher than previous generations” (Report, November 5). It highlighted some very real challenges faced by this cohort that is now entering the workforce. And to be honest, more often than not, I am left feeling frustrated on their behalf at the negative narratives that can surround them.

From my own experience working with multiple generations, I have observed Gen Z coming into the workplace carrying genuine concerns about the pressures to reach certain financial milestones and the world around them. It weighs heavy on them.

Our own data has told us that among 18- to 24-year-olds, seven in 10 are worried about how long it will take them to earn a salary that enables them to get on the property ladder. Six in 10 are worried that they will be behind their parents in reaching those milestones.

But we also found a generation that is driven to succeed and accelerate their careers because of this. And I see examples of this every day.

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Being a millennial myself, I of course suffered from several preconceptions about what I would be like to work with and what I would bring to a workplace. It happens with every generation.

But when we look at the world around us right now, perhaps we should be acknowledging there is a lot that is unique about what Gen Z is experiencing and tackling that we did not face.

Bee Patel
Director of Marketing, AlphaSights
London EC4, UK

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