They Might Not Offset Your Carbon

www.ozy.com [OZY]() Your World. Bold & Bright [Daily Dose]( Sponsored by [Cariuma]( The newsletter to fuel — and thrill — your mind. Read for deep dives into the unmissable ideas and topics shaping our world. May 19, 2022 Business Roundup Indonesia and Papua New Guinea think twice about selling carbon credits. Africa’s rare-earth mining potential is huge. JetBlue ups ante to purchase Spirit Airlines. E.U. caves on purchasing Russian gas, with a caveat. U.S. stocks lose ground as investors fear recession. All this and more in this week’s business roundup. – with reporting by Tatira Zwinoira from Harare, Zimbabwe [Trust the numbers]( [Cariuma]( We’ve told you how good these shoes are, but if you don’t want to take our word for it, or the words of over 15,000 5-star reviewers… consider this. [Over 61,000 people]( were on the wait list to get their hands on these, and they are now back in stock. (For now.) Take your choice of over 10 colors, many of them new and bright for spring. And as a special [bonus for the OZY family, take $15 off your pair.](Just use the code OZY2022. [Shop Now]( Africa Frost & Sullivan: Africa’s potential for rare earth elements huge The American research consultancy firm Frost & Sullivan says Africa can be a major rare-earth elements (REE) producer. REEs are a group of 17 metals with unique properties crucial for producing smartphones, computers, electric vehicles, fiber optics, medical images, missile systems and directed-energy weapons, among other technologies. “Africa has the opportunity to emerge as a major REE production region, especially driven by the demand for REE and other metals required for new technologies in renewables and EVs,” Frost & Sullivan consultant Patrick Prestele said in a new research paper by the firm's Africa office. Currently, Africa is not a major contributor to global REE production. Zimbabwe Environmental Law Association economics governance officer Tafara Chiremba cautioned that developing these resources should be done with an eye toward keeping the value within Africa. “There is a need to ensure that everything is done here in Africa,” he said, citing the opportunity to create jobs and generate tax revenue by processing the minerals regionally rather than exporting raw materials and later purchasing the final products. Nigeria’s inflation rises Nigeria recorded an increase in its annual inflation rate to a steep 16.82% in April 2022, according to new data from the country’s National Bureau of Statistics. That was almost a full percentage point increase from March and surpassed the median estimate from four economists in a Bloomberg survey. Driving this increase was a particularly sharp rise in food prices, in addition to rising energy costs owing to Russia’s invasion of Ukraine, which has affected global commodity markets. Higher food prices may present particular difficulties for low-income families. (Source: [Bloomberg](, [Nigeria’s National Bureau of Statistics]() [What do supermodel Nina Adgel, comedian Pete Davidson, and actress Helen Mirren have in common?]( [Cariuma]( They've all been seen stepping out at A-list celebrity events like the Cannes Film Festival in comfy and stylish [Cariuma]( sneakers. It's no wonder, with bold and saturated colors that are fashion-first and Internet-famous, that these are the shoes of the moment. As a member of the in-crowd that is the OZY community, you get [$15 off by using the code OZY2022.]( [Shop Now]( Americas JetBlue Airways turns up the heat to buy Spirit Airlines JetBlue Airways announced its push to purchase the discount carrier, Spirit Airlines, in an open letter to Spirit Airlines shareholders on Monday. Originally, another low-fare airline, Frontier, announced a plan to buy Spirit for $2.9 billion in February. However, last month JetBlue bid about $3.6 billion for Spirit Airlines by offering to purchase the latter’s stock at $33 per share. But Spirit Airlines rejected the deal, leading to JetBlue’s open letter seeking reconsideration. (Source: [The Wall Street Journal]() US stocks lose ground as recession fears grow On Wednesday the Dow Jones Industrial Average and the S&P 500 saw sharp declines. Analysts have blamed investor jitters on inflation. “You’ve got investors pulling back from the market in the expectation that we’re going to have a recession,” David Donabedian, chief investment officer of CIBC Private Wealth Management, told Bloomberg News. Former Chairman of the Federal Reserve Ben Bernanke predicts continued inflationary pressure over the next two years leading to lower job growth and “stagflation,” or inflation combined with economic stagnation. (Source: [Bloomberg](, [The New York Times](, [The Wall Street Journal]() Brazil’s biggest bank seen as safe bet by investors As central banks scramble to halt inflation with higher interest rates, Brazil’s largest bank, Itaú Unibanco Holding S.A., is increasingly seen as a safe investment. Much of this confidence has been credited to CEO Milton Maluhy, who has presided over an 18% increase in the company’s share price this year. Its dividends have also risen, and Maluhy has overseen acquisitions that he says will “modernize” the bank. (Source: [Bloomberg]() Europe In game of chicken, EU blinks first against Russia over gas Fearing economic contraction, the European Union has greenlighted companies to continue purchasing gas from Russia, as long as they buy in euros or dollars. The EU said on Monday its economy would likely contract if gas supplies from Russia were halted. The EU has also permitted the purchase of Russian gas in accordance with preexisting contracts by paying in euros or dollars. The EU, however, did not directly address President Vladimir Putin’s decree that operators must open a bank account in rubles in order to complete purchases. (Sources: [Bloomberg](, [The Wall Street Journal]() US Treasury boss in Europe to strengthen EU-US relations U.S. Treasury Secretary Janet Yellen is in Europe this week to bolster relations between the U.S. and Europe. She is also working with Europe on Russian sanctions and addressing the rise in global commodity prices resulting from Russia’s invasion of Ukraine. U.S. and European Union officials seek to expand cooperation on the issue of supply chains of critical technologies. Meanwhile, Yellen seeks Poland’s participation in a pact in which more than 130 nations will agree to eliminate corporate tax havens by effecting a 15% global tax; as of Monday, Yellen said no progress had been made, even though Poland is essential for the plan to move forward. (Source: [The New York Times](, [The Wall Street Journal](, [Reuters]() WATCH TONY XU on [The Carlos Watson Show](! Asia Indonesia and Papua New Guinea restrict carbon credits Indonesia and Papua New Guinea have cut back on providing carbon credits to the global market. Under the United Nations climate accords, countries that provide such credits can’t count them as their own carbon reduction; instead, they are counted toward the purchasing nation. Papua New Guinea has put a hold on certain new carbon projects to audit them and ensure their integrity. And Agus Justianto, Indonesia’s director general of sustainable forest management, told The Wall Street Journal, “Under Indonesian law, taking something from the country’s forests by violating the rules is illegal. If we play around with this and take it lightly, it could lead to disaster.” (Source: [The Wall Street Journal]() Xi Jinping’s COVID policy slows world’s second-largest economy China’s policy of “zero COVID” has led to the shutdown of major cities and global ports, resulting in falling industrial output and reduced consumer spending. As of this April, China’s retail sales had dropped 11% from the previous year, while the unemployment rate rose to 6.1%. Larry Hu, head of China economics at the Macquarie Group, told Bloomberg News, “zero-Covid at the cost of surging unemployment is a hard sell politically.” (Source: [Bloomberg]() Community Corner If countries like Indonesia and Papua New Guinea decline to sell carbon credits to the U.S. and other large economies, how should global carbon emissions be reduced? Share your thoughts with us at OzyCommunity@Ozy.com. ABOUT OZY OZY is a diverse, global and forward-looking media and entertainment company focused on “the New and the Next.” OZY creates space for fresh perspectives, and offers new takes on everything from news and culture to technology, business, learning and entertainment. [www.ozy.com]( / #OZY Curiosity. Enthusiasm. Action. That’s OZY! [TV]( | [PODCASTS]( | [NEWS]( | [FESTIVALS]( A Modern Media Company OZY Media, 800 West El Camino Mountain View, California 94040 This email was sent to {EMAIL} [Manage Subscriptions]( | [Privacy Policy]( | [Read Online](