China’s central bank tries brighter shade of green 16 Nov 2021 A new lending programme could, by one estimate, lead to nearly $1 trln of investment in clean energy projects. It’s a bolder policy than from Western peers, and also a clever way to tackle the stagflation dilemma. Runaway stimulus remains a risk, as does misallocated capital.
Shell’s Dutch exit comes with legal side benefits 15 Nov 2021 Shifting its tax residency to the UK, along with its head office and CEO, simplifies the $170 bln oil major’s structure. It also makes it easier to reorganise for the energy transition. The implied snub to the Dutch court which ordered Shell to cut emissions is an added bonus.
Goldman’s cosy Japan deal is ripe for rival bid 15 Nov 2021 The Wall Street bank and refiner Eneos are forging ahead with a contested plan to take full control of $4 bln roadbuilder Nippo. Even with a richer premium, a leveraged buyout would deliver a healthy return, Breakingviews calculates. It’s a fresh test of Japan Inc’s dozy ways.
Capital Calls: Tesla, Daimler 11 Nov 2021 Concise views on global finance: The electric-car maker’s directors have, like Elon Musk, cashed in; the German company is racing against Agnelli-controlled CNH Industrial to spin off a trucks division.
Rolls-Royce nuclear plans piggyback green success 9 Nov 2021 The UK engineer and partners are pumping 195 mln pounds into a unit to build small commercial reactors. As with wind and solar, the British government is helping by promising to buy the plants’ electricity. It should mean a lucrative side hobby for the group run by Warren East.
Capital Calls: Hedge funds, Rogers, Inmarsat 8 Nov 2021 Concise views on global finance: The industry’s assets are above a new threshold, but it’s a business reaching a limit; the head of the Canadian telecom giant has won a court victory; U.S. rival Viasat pulls the UK-based satellite operator into its orbit for a pricey $7.4 bln.
COP background chatter supports Greta’s bad vibes 8 Nov 2021 The young activist declared the global climate shindig in Glasgow a failure at a weekend protest. In public, financiers and policymakers are bullish about the scope of new private-sector pledges to drive decarbonisation. In private, they fret mightily about energy security.
Forget COP26. The world needs COPPER 26 5 Nov 2021 The climate shindig is all about cutting demand for fossil fuels. The required flipside is a 2020s surge in production of metals for all those extra wind turbines and electric cars. Stay tuned for a separate forum in which governments and miners thrash out how that might happen.
Wind turbine makers are victims of own success 3 Nov 2021 Soaring demand for renewable energy has inflated Vestas and Siemens Gamesa into multibillion-dollar firms. Yet the pair are struggling to turn a profit because of steep rises in raw materials costs. Passing those on will end wind power’s long-term trend of falling prices.
Capital Calls: KKR, Ferrari, HelloFresh 2 Nov 2021 Concise views on global finance: The private equity company is making the most of ideal market conditions; the Italian sports car maker raises its guidance; and a positive sales update turbocharges the German meal-kit delivery firm’s share price.
Capital Calls: Darktrace’s stock wobble 1 Nov 2021 Concise views on global finance: The UK cybersecurity group’s share plunge reflects both short- and longer-term problems.
Shell’s Loeb parry uses cash, capex and chutzpah 28 Oct 2021 The $190 bln oil major needs to deflect activist Third Point’s call to split itself up. High crude prices make it easier to promise fat cash returns and invest more in green energy. Given Shell should have done that anyway, fending off Dan Loeb also requires a certain brass neck.
Road to COP: Sealing the deal 26 Oct 2021 Seasoned climate change lawyer Rick Saines received recognition from the French state for his role in making the 2015 Paris Agreement a landmark success. With days to go until Glasgow’s equivalent COP26, he chatted to George Hay about how this one could pan out.
Breakdown: COP26 gets an ambitions downgrade 25 Oct 2021 An energy crisis and no-show from Xi Jinping are undermining next week’s critical climate gathering in Glasgow. Getting all states to set 2050 net-zero goals is a stretch. Maintaining some momentum via nearer-term pacts in areas like phasing out coal has more chance of success.
UK’s net-zero bill is less painful than it looks 20 Oct 2021 Britain’s pre-COP26 investment pledges augur ill for securing up to 60 bln pounds a year of mostly private capital to cut CO2 emissions. Yet unlike peers, it now has a solid net-zero strategy. If that wins over investors, other states may decide to offer similarly clear roadmaps.
Green transition needs a wider focus than oil cuts 13 Oct 2021 Fossil fuel investment has fallen to levels that would limit global warming to 1.5 degrees Celsius, the IEA says. Yet measures to hike green energy and curb demand are just as important, and lagging. Unless states act, high energy prices risk becoming an ongoing headache.
Eni’s green listing shows appropriate restraint 12 Oct 2021 The $50 bln Italian oil major’s renewables IPO may value it at 10 bln euros. Recent efforts by rivals don’t inspire confidence, but Eni’s offer blends a nascent green power business with its more established energy retail arm. That should get takers at a more modest valuation.
Capital Calls: Green investors, ASOS, Renren 11 Oct 2021 Concise views on global finance: Al Gore’s asset manager finds listed equities can influence a larger chunk of global emissions; the online retailer parts company with its CEO; the startup investor’s $300 mln settlement with aggrieved investors is likely to be an exception.
Chancellor: Going green is everything except easy 6 Oct 2021 British Prime Minister Boris Johnson told the United Nations just weeks ago that transitioning to a carbon-neutral economy would be a cinch. Oops. The global energy crisis changes everything. Not least, it makes the cost of jettisoning hydrocarbons a great deal more expensive.
Cox: How Greta can transition from blah blah blah 4 Oct 2021 The young Swedish climate activist grabbed headlines in Milan at the runup to COP26 last week, castigating “so-called leaders” for talking much and acting too little. She’s got a point. But generational resentment won’t halt global warming. She’d be better off going nuclear.