GLOBAL BANKING GIANT SEES WORLD HEATING UP

HSBC Notes Global Warming Trends In Quantitative Fashion; On a quantitative basis, temperatures are warming, global warming damage is getting more expensive, HSBC report observes

Mark Melin, April 23, 2015 (Value Walk)

“…Reviewing the modeling that scientists are working with…[leads] to predictions the unusual climate swings currently being seen are part of a larger trend that isn’t abating [according to HSBC Holdings Global Research]…Damage from severe weather events is growing to now total $300 billion per year, up from less than $1 billion in the 1950s …[and driving the trend is] a change in the returns distribution model…Thinking in financial terms, HSBC’s analysts considered the shape of returns distribution and note that the distribution of temperature is significantly changing…The black line in chart 1, for instance, demonstrates during the 1950s only 1 percent of Northern Hemisphere land area was subject to temperature swings three standard deviations above the baseline average. In the current era, that equivalent land area impacted increased to 10 percent…” click here for more

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