The maker of Marlboro cigarettes Philip Morris International wants the company to be classified as an ESG stock – that is, not detrimental to society. If PMI’s CEO has the courage to ask asset managers to consider vaping a social good, then maybe you can find the courage to ask for that promotion at work or ask that coworker out on a date.

The lowdown

• 🚬 Philip Morris International CEO wants the cigarette and vape maker to be classified as an ESG stock.

• 🚶 150-200 Credit Suisse employees are resigning each week, seeking safety with competitors.

• 🙌 House approves a measure to suspend the debt limit, bill heads to the Senate next.

Flex your finance muscle

What is in the US debt ceiling deal?

They have almost done it (or perhaps they will have done it by the time this newsletter is published). The borrowing limit appears as if it will be suspended until 2025, removing the threat of a US default.

The headline is that the deal requires that spending levels remain unchanged for 2024 and can only rise by 1% in 2025 (never mind inflation is running at much higher than 1%). The spending caps do not cover defense, social security, or Medicare and there are a variety of other compromises that have been made to get it over the line. More on the ins and outs of the deal ($).

Featured stories

Monzo increases bad loan provisions after push into BNPL

UK digital bank Monzo has increased its provision against bad loans from £14 million to £101 million ($) as it expands into the crowded 'buy now, pay later' sector.

Monzo's annual revenue more than doubled to £355.6 million for the year ending in February, thanks to increased interest rates on deposits and tripling of its lending book. Despite the revenue increase, the bank reported a pre-tax loss of £116 million partly due to the increase in provisions for potential bad loans.

Monzo's BNPL service Monzo Flex saw loans rise to £169.3 million. This accounted for more than 20% of its overall book, compared to 10% in the previous year. The bank now must hope that as consumers are subjected to further interest rate pressure, it does not become a case of buy now, default later.

The content we're consuming today

• NBER: Who Gains from Corporate Tax Cuts?

• The New Yorker: How to Hire a Pop Star for Your Private Party ($).

• FT Alphaville: About that Dutch pension plan overhaul.

Off-balance sheet items

• The Apple Worldwide Developers Conference begins on Monday and there are rumors that we will see a mixed reality headset, new MacBook Air and a watchOS update. It’s all online at no cost.

The bottom line