Hunger is Rising, COVID-19 Will Make it Worse

The economic crisis and food system disruptions from the Covid-19 pandemic will worsen the lack of nutrition in women and children, with the potential to cost the world almost $30 billion in future productivity losses. As many as 3 billion people may be unable to afford a healthy diet due to the pandemic, according to a study published in Nature Food journal. This will exacerbate maternal and child under-nutrition in low- and middle-income countries, causing stunting, wasting, mortality and maternal anemia.

Nearly 690 million people were undernourished in 2019, up by almost 60 million since 2014. Nearly half of all deaths in children under age five are attributable to undernutrition and, regrettably, stunting and wasting still have strong impacts worldwide.

In 2019, 21 per cent of all children under age five (144 million) were stunted and 49.5 million children experienced wasting.The effects of the pandemic will increase child hunger, and an additional 6.7 million children are predicted to be wasted by the end of 2020 due to the pandemic’s impact.

The situation continues to be most alarming in Africa: 19 per cent of its population is under-nourished (more than 250 million people), with the highest prevalence of undernourishment among all global regions. Africa is the only region where the number of stunted children has risen since 2000.

Women and girls represent more than 70 per cent of people facing chronic hunger. They are more likely to reduce their meal intake in times of food scarcity and may be pushed to engage in negative coping mechanisms, such as transactional sex and child, early and forced marriage.

Extreme climatic events drove almost 34 million people into food crisis in 25 countries in 2019, 77 per cent of them in Africa. The number of people pushed into food crisis by economic shocks more than doubled to 24 million in eight countries in 2019 (compared to 10 million people in six countries the previous year).

Food insecurity is set to get much worse unless unsustainable global food systems are addressed. Soils around the world are heading for exhaustion and depletion. An estimated 33 per cent of global soils are already degraded, endangering food production and the provision of vital ecosystem services.

Evidence from food security assessments and analysis shows that COVID-19 has had a compounding effect on pre-existing vulnerabilities and stressors in countries with pre-existing food crises. In Sudan, an estimated 9.6 million people (21 per cent of the population) were experiencing crisis or worse levels of food insecurity (IPC/CH Phase 3 or above) in the third quarter of 2020 and needed urgent action. This is the highest figure ever recorded for Sudan.

Food security needs are set to increase dramatically in 2021 as the pandemic and global response measures seriously affect food systems worldwide. Entire food supply chains have been disrupted, and the cost of a basic food basket increased by more than 10 per cent in 20 countries in the second quarter of 2020.

Delays in the farming season due to disruptions in supply chains and restrictions on labour movement are resulting in below-average harvests across many countries and regions.  This is magnified by pre-existing or seasonal threats and vulnerabilities, such as conflict and violence, looming hurricane and monsoon seasons, and locust infestations. Further climatic changes are expected from La Niña.

Forecasters predict a 55 per cent change in climate conditions through the first quarter of 2021, impacting sea temperatures, rainfall patterns and hurricane activity. The ensuing floods and droughts that could result from La Niña will affect farming seasons worldwide, potentially decreasing crop yields and increasing food insecurity levels.

The devastating impact of COVID-19 is still playing out in terms of rising unemployment, shattered livelihoods and increasing hunger. Families are finding it harder to put healthy food on a plate, child malnutrition is threatening millions. The risk of famine is real in places like Burkina Faso, north-eastern Nigeria, South Sudan and Yemen.

COVID-19 has ushered hunger into the lives of more urban communities while placing the vulnerable, such as IDPs, refugees, migrants, older persons, women and girls, people caught in conflict, and those living at the sharp end of climate change at higher risk of starvation. The pandemic hit at a time when the number of acutely food-insecure people in the world had already risen since 2014, largely due to conflict, climate change and economic shocks.

Acute food-insecurity is projected to increase by more than 80 percent – from 149 million pre-COVID-19, to 270 million by the end of 2020 – in 79 of the countries where WFP works. The number of people in crisis or worse (IPC/CH Phase 3 or above) almost tripled in Burkina Faso compared to the 2019 peak of the food insecurity situation, with 11,000 people facing catastrophic hunger (IPC/CH Phase 5) in mid-2020.

For populations in IPC3 and above, urgent and sustained humanitarian assistance is required to prevent a deterioration in the hunger situation. It is alarming that in 2020, insufficient funds left food security partners unable to deliver the assistance required. For example, sustained food ration reductions in Yemen have directly contributed to reduced food consumption since March. Today, Yemen is one of four countries at real risk of famine.

Source: https://gho.unocha.org/

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Critics:

During the COVID-19 pandemic, food security has been a global concern – in the second quarter of 2020 there were multiple warnings of famine later in the year. According to early predictions, hundreds of thousands of people would likely die and millions more experience hunger without concerted efforts to address issues of food security.

As of October 2020, these efforts were reducing the risk of widespread starvation due to the COVID-19 pandemic. Famines were feared as a result of the COVID-19 recession and some of the measures taken to prevent the spread of COVID-19. Additionally, the 2019–2021 locust infestation, ongoing wars and political turmoil in some nations were also viewed as local causes of hunger.

In September 2020, David Beasley, Executive Director of the World Food Programme, addressed the United Nations Security Council, stating that measures taken by donor countries over the course of the preceding five months, including the provision of $17 trillion in fiscal stimulus and central bank support, the suspension of debt repayments instituted by the IMF and G20 countries for the benefit of poorer countries, and donor support for WFP programmes, had averted impending famine, helping 270 million people at risk of starvation.

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The 3 Biggest Mistakes the Board Can Make Around Cyber Security

The role of the Board in relation to cyber security is a topic we have visited several times since 2015, first in the wake of the TalkTalk data breach in the UK, then in 2019 following the WannaCry and NotPeyta outbreaks and data breaches at BA, Marriott and Equifax amongst others. This is also a topic we have been researching with techUK, and that collaboration resulted in the start of their Cyber People series and the production of the “CISO at the C-Suite” report at the end of 2020.

Overall, although the topic of cyber security is now definitely on the board’s agenda in most organisations, it is rarely a fixed item. More often than not, it makes appearances at the request of the Audit & Risk Committee or after a question from a non-executive director, or – worse – in response to a security incident or a near-miss.

All this hides a pattern of recurrent cultural and governance attitudes which could be hindering cyber security more than enabling it. There are 3 big mistakes the Board needs to avoid to promote cyber security and prevent breaches.

1- Downgrading it

“We have bigger fishes to fry…”

Of course, each organisation is different and the COVID crisis is affecting each differently – from those nearing collapse, to those which are booming. But pretending that the protection of the business from cyber threats is not a relevant board topic now borders on negligence and is certainly a matter of poor governance which non-executive directors have a duty to pick up.

Cyber attacks are in the news every week and have been the direct cause of millions in direct losses and hundreds of millions in lost revenues in many large organisations across almost all industry sectors.

Data privacy regulators have suffered setbacks in 2020: They have been forced to adjust down some of their fines (BA, Marriott), and we have also seen a first successful challenge in Austria leading to a multi-million fine being overturned (EUR 18M for Austrian Post). Nevertheless, fines are now reaching the millions or tens of millions regularly; still very far from the 4% of global turnover allowed under the GDPR, but the upwards trend is clear as DLA Piper highlighted in their 2021 GDPR survey, and those number should register on the radar of most boards.

Finally, the COVID crisis has made most businesses heavily dependent on digital services, the stability of which is built on sound cyber security practices, in-house and across the supply chain.

Cyber security has become as pillar of the “new normal” and even more than before, should be a regular board agenda, clearly visible in the portfolio of one member who should have part of their remuneration linked to it (should remuneration practices allow). As stated above, this is fast becoming a plain matter of good governance.

2- Seeing it as an IT problem

“IT is dealing with this…”

This is a dangerous stance at a number of levels.

First, cyber security has never been a purely technological matter. The protection of the business from cyber threats has always required concerted action at people, process and technology level across the organisation.

Reducing it to a tech matter downgrades the subject, and as a result the calibre of talent it attracts. In large organisations – which are intrinsically territorial and political – it has led for decades to an endemic failure to address cross-silo issues, for example around identity or vendor risk management – in spite of the millions spent on those matters with tech vendors and consultants.

So it should not be left to the CIO to deal with, unless their profile is sufficiently elevated within the organisation.

In the past, we have advocated alternative organisational models to address the challenges of the digital transformation and the necessary reinforcement of practices around data privacy in the wake of the GDPR. They remain current, and of course are not meant to replace “three-lines-of-defence” type of models.

But here again, caution should prevail. It is easy – in particular in large firms – to over-engineer the three lines of defence and to build monstrous and inefficient control models. The three lines of defence can only work on trust, and must bring visible value to each part of the control organisation to avoid creating a culture of suspicion and regulatory window-dressing.

3- Throwing money at it

“How much do we need to spend to get this fixed?”

The protection of the business from cyber threats is something you need to grow, not something you can buy – in spite of what countless tech vendors and consultants would like you to believe.

As a matter of fact, most of the breached organisations of the past few years (BA, Marriott, Equifax, Travelex etc… the list is long…) would have spent collectively tens or hundreds of millions on cyber security products over the last decades…

Where cyber security maturity is low and profound transformation is required, simply throwing money at the problem is rarely the answer.

Of course, investments will be required, but the real silver bullets are to be found in corporate culture and governance, and in the true embedding of business protection values in the corporate purpose: Something which needs to start at the top of the organisation through visible and credible board ownership of those issues, and cascade down through middle management, relayed by incentives and remuneration schemes.

This is more challenging than doing ad-hoc pen tests but it is the only way to lasting long-term success.

By: JC Gaillard

Source: The 3 Biggest Mistakes the Board Can Make Around Cyber Security – Business 2 Community

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Critics:

A data breach is the intentional or unintentional release of secure or private/confidential information to an untrusted environment. Other terms for this phenomenon include unintentional information disclosure, data leak, information leakage and also data spill. Incidents range from concerted attacks by black hats, or individuals who hack for some kind of personal gain, associated with organized crime, political activist or national governments to careless disposal of used computer equipment or data storage media and unhackable source.

Definition: “A data breach is a security violation in which sensitive, protected or confidential data is copied, transmitted, viewed, stolen or used by an individual unauthorized to do so.”Data breaches may involve financial information such as credit card & debit card details, bank details, personal health information (PHI), Personally identifiable information (PII), trade secrets of corporations or intellectual property. Most data breaches involve overexposed and vulnerable unstructured data – files, documents, and sensitive information.

Data breaches can be quite costly to organizations with direct costs (remediation, investigation, etc) and indirect costs (reputational damages, providing cyber security to victims of compromised data, etc.)

According to the nonprofit consumer organization Privacy Rights Clearinghouse, a total of 227,052,199 individual records containing sensitive personal information were involved in security breaches in the United States between January 2005 and May 2008, excluding incidents where sensitive data was apparently not actually exposed.

Many jurisdictions have passed data breach notification laws, which requires a company that has been subject to a data breach to inform customers and takes other steps to remediate possible injuries.

A data breach may include incidents such as theft or loss of digital media such as computer tapes, hard drives, or laptop computers containing such media upon which such information is stored unencrypted, posting such information on the world wide web or on a computer otherwise accessible from the Internet without proper information security precautions, transfer of such information to a system which is not completely open but is not appropriately or formally accredited for security at the approved level, such as unencrypted e-mail, or transfer of such information to the information systems of a possibly hostile agency, such as a competing corporation or a foreign nation, where it may be exposed to more intensive decryption techniques.

ISO/IEC 27040 defines a data breach as: compromise of security that leads to the accidental or unlawful destruction, loss, alteration, unauthorized disclosure of, or access to protected data transmitted, stored or otherwise processed.

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Netflix And Boeing Among Today’s Trending Stocks

According to a report from the Washington Post dropped June 12, 1-year inflation is up 5%, while 2-year inflation sits around 5.6%. This has impacted everything from raw materials like lumber and glass to manufactured products. Used cars are up 29.7% in the last year, while gas has shot up over 56%, and washing machines and dryers sit up around 26.5%.

This comes as the global microchip shortage compounds retailers’ problems as they struggle to automate their supply chains. And while the economy (and the stock market) is certainly rebounding from covid-era recession pressures, consumers are stuck footing high-priced bills as both demand and the cost of materials continue to rise. Still, the Fed maintains that prices should stabilize soon – though “soon” may mean anywhere from 18-24 months, according to consulting firm Kearney.

Until then, investors will have to weigh their worries about inflation on the equities and bonds markets against the growing economy to decide which investments have potential – and which will see their returns gouged by rising prices across the board. To that end, we present you with Q.ai’s top trending picks heading into the new week.

Q.ai runs daily factor models to get the most up-to-date reading on stocks and ETFs. Our deep-learning algorithms use Artificial Intelligence (AI) technology to provide an in-depth, intelligence-based look at a company – so you don’t have to do the digging yourself.

Netflix, Inc (NFLX)

First up on our trending list is Netflix, Inc, which closed at $488.77 per share Friday. This represented an increase of 0.31% for the day, though it brought the streaming giant to down 9.6% for the year. The company has experienced continual losses for the past few weeks, with Friday ending below the 22-day price average of $494 and change. Currently, Netflix is trading at 47.1x forward earnings.

Netflix, Inc. trended in the latter half of last week as the company opened a new e-commerce site for branded merchandise. Currently, the store’s offerings are limited to a few popular Netflix tv shows, but the company hopes to increase its branded merchandise branded to shows such as Lupin, Yasuke, Stranger Things, and more in the coming months. With this latest move, the company hopes to expand its revenue channels and compete more directly with competitors such as Disney+.

In the last fiscal year, Netflix saw revenue growth of 5.6% to $25 billion compared to $15.8 billion three years ago. At the same time, operating income jumped 21.8% to $4.585 billion from $1.6 billion three years ago. And per-share earnings jumped almost 36% to $6.08 compared to $2.68 in the 36-month-ago period, while ROE rose to 29.6%.

Currently, Netflix is expected to see 12-month revenue around 3.33%. Our AI rates the streaming behemoth A in Growth, B in Quality Value and Low Volatility Momentum, and D in Technicals.

The Boeing Company (BA)

The Boeing Company closed down 0.43% Friday to $247.28, trending at 9.93 million trades on the day. Boeing has fallen somewhat from its 10-day price average of $250.67, though it’s up over the 22-day average of $240 and change. Currently, Boeing is up 15.5% YTD and is trading at 180.1x forward earnings.

The Boeing Company has trended frequently in recent weeks as the airplane manufacturer continues to take new orders for its jets, including the oft-beleaguered 737 MAX. United Airlines is reportedly in talks to buy “hundreds” of Boeing jets in the next few months, while Southwest Airlines is seeking up to 500 new aircraft as it expands its U.S. service. Alaskan Airlines, Dubai Aerospace Enterprise, and Ryanair have also placed orders for more Boeing jets heading into summer.

Over the last three fiscal years, Boeing’s revenue has plummeted from $101 billion to $58.2 billion, while operating income has been slashed from $11.8 billion to $8.66 billion. At the same time, per-share earnings have actually grown from $17.85 to $20.88.

Boeing is expected to see 12-month revenue growth around 7.5%. Our AI rates the airline manufacturer B in Technicals, C in Growth, and F in Low Volatility Momentum and Quality Value.

Nvidia Corporation (NVDA)

Nvidia Corporation jumped up 2.3% Friday to $713 per share, trending with 10.4 million trades on the books. Despite its sky-high stock price, Nividia has risen considerably from the 22-day price average of $631.79 – up 36.5% for the year. Currently, Nvidia is trading at 44.44x forward earnings.

Nvidia is trending this week thanks to surging GPU sales amidst the global chip shortage, as well as its planned 4-for-1 stock split at the end of June – but that’s not all. The company also announced Thursday that it also plans to buy DeepMap, an autonomous-vehicle mapping startup, for an as-yet undisclosed price. With this new acquisition, Nvidia will improve the mapping and localization functions of its software-defined self-driving operations system, NVIDIA DRIVE.

In the last fiscal year, Nvidia saw revenue growth of 15.5% to $16.7 billion compared to $11.7 billion three years ago. Operating income jumped 20.8% in the same period to $4.7 billion against $3.8 billion in the three-year ago period, and per-share earnings expanded 22.6% to $6.90. However, ROE was slashed from 49.3% to 29.8% in the same time frame.

Currently, Nvidia is expected to see 12-month revenue growth around 2%. Our AI rates Nvidia A in Growth, B in Low Volatility Momentum, C in Quality Value, and F in Technicals.

Nike, Inc (NKE)

Nike, Inc closed up 0.73% Friday to $131.94 per share, closing out the day at 5.4 million shares. The stock is down 6.7% YTD, though it’s still trading at 36.8x forward earnings.

Nike stock has slipped in recent weeks as the athleticwear retailer suffers supply chain challenges in North America. And despite recent revenue growth in its Asian markets, it also continues to deal with Chinese backlash to its March criticism of the Chinese government’s forced labor of persecuted Uyghurs.

In the last fiscal year, Nike saw revenue grow almost 3% to $37.4 billion, up 5.8% in the last three years from $36.4 billion. Operating income jumped 40.9% in the last year alone to $3.1 billion – though this is down from $4.45 billion three years ago. In the same periods, per-share earnings grew 33.7% and 82.8%, respectively, from $1.17 to $1.60. And return on equity nearly doubled from 17% to 30%.

Currently, Nike is expected to see 12-month revenue growth around 10.3%. Our AI rates Nike average across the board, with C’s in Technicals, Growth, Low Volatility Momentum, and Quality Value.

Mastercard, Inc (MA)

Mastercard, Inc ticked up 0.33% Friday to $365.50, trading at a volume of 2.7 million shares on the day. The stock is up marginally over the 22-day price average of $363.86 and 2.4% for the year. Currently, Mastercard is trading at 43.64x forward earnings.

Mastercard has faltered behind the S&P 500 index for much of the year – not to mention competitors like American Express. While there’s no one story to tie the credit card company’s relatively modest stock prices to, it may be due to a combination of investor uneasiness, already-high share prices, and increased digital payments. But with travel recently on the rise, it’s possible that Mastercard will be making a comeback.

In the last three fiscal years, Mastercard’s revenue has risen 3.3% to $15.3 billion compared to $14.95 billion. In the same period, operating income has fallen from $8.4 billion to $8.2 billion, whereas per-share earnings have grown from $5.60 to $6.37 for total growth of 16.4%. Return on equity slipped from 106% to 102.5% at the same time.

Currently, Mastercard’s forward 12-month revenue is expected to grow around 4.7%. Our deep-learning algorithms rate Mastercard, Inc. B in Low Volatility Momentum and Quality Value, C in Growth, and D in Technicals.

Q.ai, a Forbes Company, formerly known as Quantalytics and Quantamize, uses advanced forms of quantitative techniques and artificial intelligence to generate investment

Source: Netflix And Boeing Among Today’s Trending Stocks

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Critics:
The S&P 500 stock market index, maintained by S&P Dow Jones Indices, comprises 505 common stocks issued by 500 large-cap companies and traded on American stock exchanges (including the 30 companies that compose the Dow Jones Industrial Average), and covers about 80 percent of the American equity market by capitalization.
The index is weighted by free-float market capitalization, so more valuable companies account for relatively more of the index. The index constituents and the constituent weights are updated regularly using rules published by S&P Dow Jones Indices. Although called the S&P 500, the index contains 505 stocks because it includes two share classes of stock from 5 of its component companies.

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