Good morning readers. In a bizarre turn of events, the Securities and Exchange Commission's (SEC) official Twitter account suffered a breach, resulting in a misleading tweet announcing the approval of Bitcoin exchange-traded funds (ETFs). The tweet briefly sent Bitcoin's price soaring to nearly $48,000 before SEC Chair Gary Gensler clarified that the message was "unauthorized" and that the SEC had not granted approval. The agency later confirmed its account had been "compromised." As the SEC investigates this breach, the cryptocurrency market remains volatile, leaving professionals and investors hanging in suspense.

Let’s jump into today’s storylines.

In today’s digest:

• The silent retreat of ESG

• Headline Hustle: Severe storms are sweeping the US, Trump is hoping the economy crashes on Biden’s watch, X introduces a list of new shows

• World Bank predicts global economic deceleration

• Pulse Points: What’s Trending

BUSINESS

From buzzword to buzzkill: ESG in Corporate America

While the corporate world is often known for its love of acronyms, one particular trio is quietly being shown the door. ESG, short for Environmental, Social, and Governance, is no longer the go-to term for corporate responsibility and sustainability initiatives. Instead, a new lexicon is emerging amidst investor backlash, political headwinds, and legal challenges.

The acronym that lost its shine

Companies like Coca-Cola are leading a charge in rebranding their corporate reports and committees, sidelining 'ESG' in favor of terms like "responsible business." This isn't just a cosmetic change: it reflects a deeper desire for clarity and precision in corporate messaging. The shift also signifies a decreasing public emphasis on ESG programs. CEOs, while still committed to sustainability, are stepping back from publicizing their ESG efforts. This strategic silence is a response to avoid the crosshairs of regulatory scrutiny and legal risks, not to mention political criticism branding ESG as 'woke capitalism.'

The complexity of ESG initiatives has grown exponentially, becoming a divisive battleground.

• Critics argue that ESG is bogged down in measuring and disclosure requirements, losing sight of its core purpose.

• Meanwhile, investors are voting with their wallets, pulling significant funds from ESG-focused investments. Asset management giants like BlackRock and State Street are recalibrating their strategies to align with this investor sentiment shift.

Corporate diversity is under fire. The social component of ESG, particularly corporate diversity programs, faces its own set of challenges. Legal scrutiny, especially in light of a recent Supreme Court decision on affirmative action, and opposition from conservative groups, are putting these initiatives under the microscope. Yet, amidst this narrative shift, environmental concerns remain a priority for many CEOs, particularly with climate change looming large. The debate now turns to terminology – what do we call these sustainability and responsible business efforts in the post-ESG era?

Looking ahead…whether it's about specific initiatives like water and energy conservation or a broader "responsible business" approach, the corporate world is navigating a new path in communicating and executing its commitment to a sustainable future.

Headline Hustle

❄️ Severe storms sweep the U.S., bringing blizzards, flooding, high winds. Across the United States, a relentless storm system is unleashing a barrage of weather extremes. From blizzards blanketing the Midwest to heavy rains threatening the East Coast, this meteorological showdown has no boundaries. Millions are under winter storm warnings as heavy snow and treacherous winds grip the Midwest. The East Coast faces flooding risks, with another storm looming. Strong winds batter the entire nation, raising power outage concerns as well. From the Southeast to the West Coast, thunderstorms and blizzards dominate.

📉 Trump hopes the economy collapses on Biden’s watch. Former President Donald Trump has made headlines with a startling prediction: he expects an economic crash within the next year. In an interview with Lou Dobbs, Trump expressed his desire for a downturn, hoping it occurs before the next potential term in office. His reference to not wanting to be "Herbert Hoover" invokes memories of the Great Depression following the 1929 stock market crash. Trump's comments on the fragile economy drew criticism, with the White House emphasizing the importance of prioritizing the American people over wishing for economic hardships. President Biden, on the other hand, continues to emphasize his administration's efforts to boost the economy through investments in infrastructure and technology.

🎥 Prominent figures join X Corp. lineup amid turbulence. X Corp. is rolling out a trio of new shows, featuring prominent figures like Don Lemon and Tulsi Gabbard, as it strives to shift the spotlight away from recent controversies surrounding owner Elon Musk's posts. The platform, seeking to attract more viewers, is also set to host a daily show by sports commentator Jim Rome. CEO Linda Yaccarino, leveraging her extensive media background, is on a mission to secure advertiser-friendly content amid concerns over objectionable material and Musk's tweets. Despite turbulence, the platform is doubling down on video and long-form content.

ECONOMY

The World Bank forecasts a bleak outlook for 2024

The World Bank's recent "Global Economic Prospects" report offers a sobering forecast for the global economy, predicting the weakest half-decade of growth in three decades. As 2024 approaches, the world braces for continued economic deceleration, with growth expected to slump to 2.4% from 2.6% in 2023.

The report doesn't paint a rosy picture for the immediate future

Despite a resilient global economy in the face of 2023's recessionary risks, rising geopolitical tensions are poised to disrupt economic stability. Economists point to conflicts like the Russian invasion of Ukraine and turmoil in the Middle East as key factors that could drive energy prices up, fueling inflation and hindering growth. In this challenging environment, developing economies are particularly vulnerable.

• The World Bank forecasts that these nations will experience a growth rate of just 3.9% in 2024, a significant drop from the previous decade's average.

• This slowdown is attributed to sluggish global trade and restrictive financial conditions, leaving many developing countries, especially the poorest, in a precarious position.

But it's not all doom and gloom. The World Bank sees an opportunity for transformative change, emphasizing the need for increased investment and stronger fiscal policies. This approach, they argue, could kickstart development in these struggling economies, aiding in the energy transition and achieving broader development goals. As global leaders prepare to convene at the World Economic Forum, the focus will be on how to ignite these investment booms and implement comprehensive policy packages.

Big picture: The challenge is formidable, but as some economists suggest, it's not insurmountable. The coming years could still be salvaged from becoming a "decade of wasted opportunity," but it will require concerted effort and collaboration on a global scale.

SNIPPETS

Pulse Points

• Fulton County District Attorney Fani Willis has been subpoenaed in a colleague's divorce case, potentially revealing details about alleged improper romantic involvement with the colleague during prosecutions, including that of former President Donald Trump.

• Armed gang members invaded an Ecuadorian public television station during a live broadcast on Tuesday, intimidating staff amid escalating drug-related violence in the country.

• A House committee has requested extensive documentation from Harvard University as part of its investigation into anti-Jewish activity and the university's measures to address it.

• The National Football League has proposed voluntary buyouts to at least 200 employees in preparation for the upcoming playoff weekend, as revealed by a memo obtained by CNBC.

• Elon Musk's social media platform, X, previously known as Twitter, plans to introduce peer-to-peer payments this year, as stated in a recent blog post.

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