SAN FRANCISCO — Danone North America and Givaudan are seeking help from startups to develop breakthrough solutions in a pair of Innovation Challenges launching in partnership with the organizers of the Future Food-Tech series.
Previously, Kraft Heinz Co., Kellogg Co., Unilever, Roquette and Quorn Foods have launched similar initiatives with Rethink Events to highlight emerging talent and solve problems in product development. Startups may apply for the latest installment at futurefoodtechsf.com/innovation-challenges through Jan. 31, and selected finalists will pitch ideas during the Future Food-Tech Summit in San Francisco March 24-25.
“The Innovation Challenges provide startups with the opportunity to collaborate with corporate leaders and access top-level support, expertise and facilities to scale their solutions,” said Oliver Katz, conference producer at Future Food-Tech. “We can’t wait to hear from a diverse range of ambitious start-ups on how they plan to address these two major challenges.”
The innovation and research and development team at Danone North America, White Plains, NY, is looking for technologies to deliver more functionality to plant-based cheese alternatives, replicating the stretch and melting properties of traditional shredded or sliced cheeses such as mozzarella or cheddar. The company said it is interested in such solutions as plant-based extrusion, microbial fermentation and cell-culturing. Applicants should have proof of principle and prototypes.
Givaudan, Vernier, Switzerland, seeks to collaborate with science-driven startups developing natural ingredient solutions that support immunity, energy and sleep. Applicants must have proof of principle and prototypes, and the company prefers to work with startups that have clinical backing.
“Creative thinking that leads to true innovation is reliant on collaboration and co-creation, and we have found that this mentality works beautifully between Givaudan and startup companies,” said Fabio Campanile, global head of science and technology, taste and wellbeing at Givaudan. “Together, we’re able to get further faster, and often better. We’ve now partnered with Future Food-Tech for a number of years and know that this is the place to pose a challenge focused on the development of ingredients that help boost immunity, mind, energy and sleep.”
This article first appeared in the Morning Brief. Get the Morning Brief sent directly to your inbox every Monday to Friday by 6:30 a.m. ET. Subscribe
Tuesday, December 14, 2021
With taper, rate hikes baked into 2022, the chickens may come home to roost in 2023
Buy the taper, sell the fact?
Stocks, which mostly rallied as Federal Reserve officials dropped hints that crisis-era monetary accommodation is nearing an end, are clearly showing signs of wear.
With the Omicron variant of COVID-19 becoming less of a factor for asset markets, signs are emerging that the Fed’s deliberative moves to pull back on purchasing bonds — and then begin a rate hike campaign sometime next year — are starting to worry investors. Seemingly runaway inflation is making both consumers and policymakers alike nervous, and complicating the Fed’s task of engineering a soft landing for the economy.
On Wednesday, markets will get more clarity about the Fed’s plans to taper bond purchases, and where it sees rates going in 2022. But the Morning Brief is here to give our readers the unvarnished truth, straight no chaser — and as ever, there’s both good and bad news.
Barring unforeseen circumstances, i.e. the appearance of a new variant or a global conflagration, for example, investors can probably relax about what 2022 has in store.
Famous last words, perhaps, but we know the Fed is all but certain to tighten monetary policy and growth is likely to slow from current levels — but not to such an extent that’ll cause a downturn. Meanwhile, impossibly tight labor conditions will probably keep unemployment low and available jobs high, for most if not all of next year.
According to Sam Stovall, chief investment strategist at CFRA Research, gross domestic product in 2022 “should remain above average not only for the U.S., but also for the globe,” with headline inflation peaking in the first quarter before tumbling by over half by Q4, he wrote on Monday.
Currently, most Wall Street economists expect the Fed to mete out just one to two rate hikes next year, but they may be forced to get more aggressive if inflation stays at current levels. And the picture could easily get more complicated once the calendar flips to January 2023.
A hawkish Fed, bond yields gyrations and a strong dollar have the potential to sowchaos in markets and the economy in 2023. That combination is something strategists at Deutsche Bank referred to as “late-cycle dynamics” that could put downward pressure on prices, but leave a “behind the curve” Fed with “a lot of catching up to do” after a prolonged period of easy money.
In fact, Deutsche’s chief economist Jim Reid noted on Monday that “a common pattern seen across hiking cycles is that growth tends to slow in the year after the hikes have commenced but not the one it takes place in.” The bank’s data found 13 different rate hike cycles in which a recession arrived 3 to 3.5 years later, on average.
Accounting for the lag between growth and changes to monetary policy, “on average, real GDP growth in the first year of the hiking cycle was +4.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, but that slowed to +2.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the second year, and +2.1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the third year,” Reid said.
“Given the earliest that it took for a recession to materialize after a rate hike is 11 months, then statistically it does appear that 2022 has a very low probability of negative growth,” the economist said. “However the probabilities will build from 2023 onwards if history is to be believed.”
That timetable is consistent with a Bank of America forecast. The bank expects 2022 growth to decelerate from the current year, but check in at a still robust 3.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} annualized rate. Yet in 2023, the bank sees a markedly lower GDP print of 2.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and an even less impressive 2.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in 2024, as the wages of the Fed’s rate hike campaign catch up with the economy.
Arguably worse news is that based on Fed “dot plot” projections, the central bank is still expected to hike rates in 2023 and 2024 — part of the catch up work it needs to do to tame prices — even as the economy slows.
Select’s editorial team works independently to review financial products and write articles we think our readers will find useful. We may receive a commission when you click on links for products from our affiliate partners.
Financial wellness services are in demand, and employees are looking to their employers for assistance. According to Alegeus, a consumer-directed healthcare company, 69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of workers say their employer doesn’t offer any financial well-being support or benefits. Additionally, 57{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} said they would like these benefits in the future, and 62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} said it’s an employers’ responsibility to provide them.
So if you’re running into financial hardships or just want to become more financially educated, it’s important to find out if your employer offers any financial wellness programs.
Select investigated to start if you’re interested in participating in your employer’s financial wellness programs.
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How to find out what financial services are offered by your employer
“When we did a survey of our employees, almost half of them were struggling to make ends meet,” Schulman said. This mirrors many Americans’ financial position, as only 39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of Americans can afford a $1,000 emergency expense.
With this grim reality at hand, both companies, along with Chobani, Even, Prudential Financial and Verizon formed the Workers Financial Wellness Initiative. This initiative highlights a commitment to making employee financial wellness a top priority.
While some companies are trying to be more proactive about communicating what benefits they offer, it still may be difficult to find what’s available through your job. So, if you’re searching for financial resources from your employer, where should you get started?
Start by speaking with your human resources department
Your company’s human resources department will be able to direct you to any potential resources they have, including an EAP (employee assistance program), which offers a wide array of legal, financial and health services, or another similar program offering financial planning assistance. Make sure to ask if the benefit is complimentary or if there are any fees to use it.
For example, at NBCUniversal (Select’s parent company), there’s a free benefit for all employees to speak with financial advisors from Ayco, the personal financial management arm of Goldman Sachs. Ayco’s purpose is to partner with employers to deliver financial wellness coaching to employees, including help navigating retirement, tax planning, budgeting, creating an emergency fund, purchasing a home and more.
It can seem intimidating to meet with a financial advisor, but think of it as going to the doctor. You’re simply going for a checkup and will be directed towards solutions for any issues you may be facing. And regardless of if you’re a personal finance expert or someone who is starting from square one, everyone can benefit from a financial checkup.
Additionally, you may want to check your company’s employee portal. You’ll likely find a section listing the benefits you’re eligible for, including how to set up a financial coaching session.
How to plan for a meeting with a financial planner or coach
If your employer does offer any financial wellness services, your next step should be to think of questions for the financial planner you meet with.
It may also be helpful to have a file of recent financial documents so you can deliver the most accurate picture of your finances. CompassIowa, a financial services firm in Iowa, recommends bringing the following to your first meeting:
Bank account statements, annuity accounts and life insurance policies
And any other other documents relating to debt, income or assets
Once you collect these documents, consider what you want to get out of the coaching session. Financial advisors or coaches can help you with fundamental personal finance knowledge such as: how to set up a budget, how to begin saving for a home, a debt-payoff plan or consolidating debt. Or if you need consulting on more strategic things like retirement, creating a will or liquidating investments, they should be able to help with these subjects as well.
Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff’s alone, and have not been reviewed, approved or otherwise endorsed by any third party.
Experts have been saying that this Thanksgiving is going to kick off one of the busiest holiday travel periods in recent history—and the crowds are already proving it. The Transportation Security Administration reported that more than 2.2 million travelers passed through airports in the United States on Friday—a record. It was the most people the TSA has screened in a single day since the start of the pandemic. Travel sites are also seeing the same kind of traffic: Tripit is experiencing nearly triple the volume of last year, with flight bookings up 298{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, hotels up 258{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, vacation rentals up 175{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} and car rentals up 390{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
From travel insurance to advice on the airlines to the best travel deals, here’s what you need to know, whether you’re traveling over the coming week or anytime during the holiday travel season:
Arrive at the airport early. A third of all Thanksgiving travelers will be taking to the skies on Tuesday and Wednesday, so expect lines at airports. “Arriving at the airport two hours early is usually the gold standard, but this year I would recommend two and a half hours if possible,” says Jen Moyse, senior director of Product at TripIt. According to Tripit, some of the busiest airports will be San Francisco International Airport (SFO), Los Angeles International Airport (LAX), Denver International Airport (DEN), Seattle-Tacoma International Airport (SEA) and Chicago O’Hare International Airport (ORD).
Related: Best Pandemic Travel Insurance Plans
The holiday travel season has begun—and it’s not going to be pretty.
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Be aware of COVID-19 protocols. It is the law that people must wear a mask in airports and on planes or any other type of public transportation in the U.S.—but that’s not the only place you’ll need it. “Be sure to keep a mask on hand when visiting hotel common spaces like the front lobby or dining area, and bring your vaccine card or negative COVID test results with you when out and about (tucked away safely) in case somewhere you hope to visit requires one,” says Moyse.
Pack light. If possible, carry your bags on the plane, since checking luggage can add time (and expense). Another advantage: You won’t have to wait for luggage when you land, so your vacation can start right away.
Think about travel insurance. Is it too late to get travel insurance to cover delays or trip interruptions? “The simple answer is you can technically get travel insurance the day before (even the day of) your trip, however, your coverage options will be very limited,” says Meghan Kayata, a spokesperson for InsureMyTrip. “You can put in your trip info on InsureMyTrip.com and see what options there are available. Our customer care call center is also available for those who would like to be walked through the options.” A note: For future trips, it’s a good idea to get a travel insurance policy as soon as you put any kind of money down to get the most options, like Cancel for Any Reason insurance.
Covid insurance: Speaking of travel insurance, if you’re traveling internationally, you’ll need to get a Covid test to return to the United States. It’s a good idea to get Covid insurance, even if the destination doesn’t require it. You’d hate to get stuck somewhere and have to pay a ton of money out of pocket for hotels and more.
Confirm your rental car. There’s been a massive rental car shortage that has already impacted many plans this year—and it’s only going to get worse. “With reservations up 390{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from 2020, it’s worth calling ahead and triple confirming your reservation,” says Moyse. Another tip: Check with your provider to learn the quickest and easiest way to get your car when you arrive. “And don’t forget to keep them in the loop if your flight plans change,” says Moyse.
Plan your drive wisely: Expect traffic delays. According to transportation analytics company INRIX, road travel will be about 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher than normal over the holiday. Drivers should plan for traffic if they’re leaving on Wednesday—which will be the busiest day of the Thanksgiving travel season. Leave after 9 p.m., if you can. Or a better bet: drive on Thanksgiving Day before 11 a.m. If you’re returning on Saturday or Sunday, leave before noon.
Get Your Car Ready: According to the U.S. Department of Transportation, 24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of all accidents are weather-related, so as you head into the holiday travel season, it’s a good idea to make sure your car is weather-proofed. Check your windshield wipers to ensure optimum visibility in the event of inclement conditions and consider getting a portable jump starter like the Michelin High-Capacity Jump Starter and Power Bank.
Book your next trip now. If you’re a procrastinator, there’s good news and bad news. The good news? “We’re currently seeing more last-minute deals on cheap flights than ever before,” says Willis Orlando of Scott’s Cheap Flights. “The bad news? This golden opportunity for last-minute deals probably won’t last much longer.” So where to go? “Demand to hot leisure destinations like Miami and Las Vegas is back with a vengeance, whereas business-heavy destinations like San Francisco have been slower to bounce back,” says Orlando. If you’re traveling abroad or to one of these business-heavy domestic destinations, Orlando predicts that you can expect to see a couple more months of last-minute deals, as demand creeps back to normal.
READ MORE:
• The Most Stressed Out State In America Will Surprise You
• The Top 19 Cheap Hotels: Five-Star Luxury Under $50 A Night
(Bloomberg) — The Bank of Canada will maintain its 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} inflation target for the next five years, but has formally been given license to moderately overshoot it to “support maximum sustainable employment.”
Most Read from Bloomberg
In a mandate renewal released jointly with the Canadian government on Monday, the government directed the central bank to use monetary policy to boost employment levels as long as those efforts don’t jeopardize the broader objective of stable prices.
The move effectively gives Governor Tiff Macklem more latitude to keep interest rates lower than what they would have been had the focus remained squarely on the inflation number — though the central bank and government argued the new mandate only formalizes what was already an implicit part of recent Bank of Canada policy. At a press conference in Ottawa, both Macklem and Finance Minister Chrystia Freeland said there was no real change in the framework that will guide rate decisions.
“This agreement provides continuity and clarity, and it strengthens our framework to manage the realities of the world we live in,” Macklem said in an opening statement before taking questions from reporters.
The Canadian dollar extended declines after the statement, trading down 0.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from yesterday at C$1.2807 per U.S. dollar at 4:38 p.m. in Toronto. Yields on Canadian government two-year bonds fell 5 basis points to 0.919{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Since the 1990s, the bank has been narrowly focused on a single objective: to keep prices stable. The goal has been to keep inflation within a range of 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} as much as possible. Operationally, that’s meant aiming for a 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} target over the Bank of Canada’s forecast horizon, a period of about two years.
The big change this time was to put more of an emphasize on the target range. The government added a new requirement whereby officials can use the 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} control range to “continue” supporting employment levels if warranted, but “only to an extent that is consistent with keeping medium-term inflation expectations well anchored to 2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.”
Some economists saw no real changes in the new mandate, while others expressed concern about the government unecessarily introducing uncertainty into the Bank of Canada’s mandate. The central bank already had scope to delay the return of inflation to target, according to Bank of Nova Scotia economist Derek Holt.
“Overall, it would have been better to leave the wording unchanged in this sensitized, populist environment marked by concerns about governments seeking to more directly interfere in the operations of central banks,” Holt said in a note to investors. “Central bank watchers already knew that labor conditions matter, but having governments lead a process to codify this is a bit insensitive toward market concerns.”
‘Broad Set of Tools’
While the central bank had studied the benefits of a major overhaul of the mandate, any arguments in favor of a big change were weakened as inflation accelerated in recent months. Canadian inflation has been above the upper limit of the central bank’s control range for seven months, and is currently hovering at a two-decade high 4.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The statement provided some details into how the new flexibility would work. The central bank would use the control range “when conditions warrant” with officials promising more transparency in how they plan to use it. According to the statement, the bank will explain when it is using the flexibility and will report on how labor market outcomes have factored into decisions.
There’s also a reference to the central bank using a “broad set of tools” to address challenges of structurally low interest rates, including maintaining low borrowing costs for longer.
The document is much more extensive than the last one in 2016, with references to climate change, the pandemic, and the need for more inclusivity in the economy. There was a recognition the Bank of Canada is “well-equipped to address some of these challenges, less so for others.”
Another addition to the statement was a reference that the Canadian government sharing responsibility for achieving the inflation target and maximum sustainable employment.
The statement also acknowledged a low interest rate environment can fuel financial imbalances, with the government pledging to working with federal agencies to deal with the risks if needed.
(Updates with Macklem comment in fourth paragraph, economist comment in 9th paragraph.)
This is the latest milestone in Canopius USA’s quick evolution since Davis joined the firm as president and chief underwriting officer in September 2020. A 30-year insurance veteran and experienced leader in the US specialty insurance industry, Davis was hired with the remit of bringing Canopius’s existing US business units together, and building a specialty insurance company with a flexible and entrepreneurial spirit, backed by the strength and stability of multiple world-class insurance platforms.
Prior to Davis’s appointment, Canopius was operating in the US via two distinct platforms: Canopius US Insurance, Inc. (CUSI), an insurance company licensed in all 50 states that writes excess and surplus (E&S) lines binding authority business through select distribution partners; and Canopius Underwriting Agency, Inc. (CUAI), an MGA, underwriting solutions for open market property, ocean marine, management & professional lines, and cyber business.
“There was not a lot of interaction between the organizations [CUSI and CUAI], and as we look to grow in the US, we identified a need to bring everything together,” said Davis. “That’s what I was hired to do. We’ve been working on that for the past year, and I feel like we’re in a really good spot in terms of connecting all the dots together.”
Read next: Canopius Group names new COO
Over the past few years, Canopius USA has achieved significant growth in gross written premium (GWP), jumping from approximately $100 million across CUSI and CUAI in 2019 to $200 million by the end of 2020, and the business is now on track to close 2021 with about $400 million in GWP.
“We’re in the process right now of putting together our full five-year plan for the US that will encompass additional growth, with a goal of getting us to somewhere around $1.5 billion or $2 billion GWP over the next five years. So, it’s ambitious,” Davis told Insurance Business. “[At present] we’re tiny in the US, but that really opens up a lot of opportunity because when you’re small, there’s a lot of things you obviously haven’t explored yet.
“We’re in the process of exploring: How do we grow the lines that we’re currently in? Are there adjacent lines we can add to that? Are there things we can do more on admitted paper that we haven’t really had the ability to do in the past? It’s a combination of all those three things that [will enable us] to make that real growth trajectory.”
As a first step under the agreement with SFMI, the ocean marine and management & professional lines teams of CUAI will write admitted business using SFMI’s paper. This complements Canopius USA’s existing ability to write non-admitted business through CUSI and Canopius Lloyd’s Syndicate 4444.
“My vision for Canopius USA as an organization is really to be able to write on Lloyd’s paper, other non-admitted paper, as well as SFMI paper,” said Davis. “I think it gives us a really distinct opportunity in the specialty market to really have multiple platforms, multiple distributions, and really concentrate on following and finding solutions for different niche areas.
“We’re not trying to be all things to all people. We’re really trying to set up something that’s a little bit more boutique and focused on specific risks. What we’re looking to do, and what we can do, is build really deep expertise in a few areas, and then use that as our base jumping off point [for] adjacent lines of business. We differentiate ourselves by being nimble, responding quickly [to the market], and developing products in partnerships.”
Read more: Canopius launches algorithmic underwriting MGA
The finalization of the admitted partnership with SFMI will fuel Canopius USA’s plans to expand its offerings in the specialty insurance market. Currently they include open market property, ocean marine, management and professional and cyber business distributed through a broad range of insurance market intermediaries including retail and wholesale agents and brokers. Canopius USA also supports additional lines including property, general liability, auto and surety through partnerships with specialized MGAs.
While Canopius USA is a relatively young firm in the grand scheme of things, Davis insists it is not a start-up. “We’re not starting from scratch like so many others in the class of 2020,” she said, referring to Canopius USA’s parent company Canopius Group, a global specialty (re)insurer with underwriting operations in Australia, Bermuda, China, Singapore, the UK and US, as well as its relationships with Lloyd’s and established partners like SFMI.
“We already have a strong base, and now we’re ramping up what we’ve been doing with more focus. I think that that gives us a little bit of an edge over some of the other folks out there that are trying to make every step all at once,” said Davis. “We’ve already made the baby steps, and now we’re looking to really accelerate and grow.”
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