S&P downgraded the UK credit rating

The global rating company Standard & Poor´s announced on Monday evening that they have downgraded the UK sovereign rating from triple A to AA.  According to the rating agency, this downgrading will reflect the economic, fiscal and constitutional risks of the last week´s Brexit vote. S&P’s ratings outlook is negative, which might indicate additional downgrades in the future.

A double-A rating places the UK with Belgium and France. Germany, the Netherlands and Austria are having triple A ratings.

The rating agency is also expecting that the UK GDP will grow only by average 1,1 % on a year, compared to 2,1 % the agency estimated in April.

 

Business Finance

UK Brexit-leave was a Black Friday for markets

The UK decision to leave the EU was a Black Friday for the financial markets.  The sterling plumped to over 30 years low, to 1,32 dollars and the stock exchanges all over Europe were showing declining trend.

Banks and insurance companies were the most losers, because the City, which employs  over 700 000 financial specialists, is now uncertain about the future of the London City as a capital of European financial markets. FTSE 100 index was down by 8,7 percent.

Financial topics today on Friday 24th June 2016:

  • Yen surgers by 3,2 percent against dollar to 99,02
  • FTSE100 -index slides by 8,7 percent
  • S&P500 index futures slump with over 5 percent, tiggering a trading curb
  • Gold reaches new high levels with over 8 percent rise
  • Oil prices were down
  • S&P is considering lowering UK rating from tripe A
  • Goldman Sachs predicts that the Bank of England will cut rate in August
  • London property prises are expected to decrease – REITs and property company shares were down in London Stock Exhange
  • The vote may have overall impact of the big tech companies investments in the City
  • The Fed is expexted to hold their rate increase decision 

 

 

Business Finance

SouthPole: 10 years of climate change projects

 

The Swiss global sustainability solutions provider, South Pole Group, is celebrating its 10 years anniversary this year. According to Dr. Maximilian Horster, a partner of South Pole, the past decade the company has grown to more than 150 employees in 17 different offices globally.

– We are a pioneer in the field of climate impact assessment of investments. Most of our projects are in the financial sector. About 50 / 50 percent we work with public and private companies. Our competitive edge is in the combination of different players and climate change specialists, Mr Horster says.

He predicts that the Paris climate meeting in last December was the first step into more integrated energy thinking globally.

– Our politicans have now realised that countries need more holistic views of climate change actions and mitigation. Carbon pricing and tariffs are examples of actions that need more focus in our political debate in order that the countries can swift to more renewables and zeroemissions targets, he adds.

The company has recently won multiple categories in the 2016 Environmental Finance Voluntary Carbon Market Rankings: the prestigious peervoted industry ranking recognised South Pole Group as Best Trading Company, Best Project Developer – Renewable Energy and Best Wholesaler.

EarthRate, an ESG innovator company, and SouthPole offer indepth carbon footprint analyses for investors and companies.

 

 

 

 

Business Finance

Amundi: Low Carbon is one of our competences

The European largest asset manager, Amundi Asset Management, has been in the Nordics for over 10 years. This Paris-based, listed company (AMUN.FP) with market cap of 6,5 billion euros, is known for the quality to client relationships and commitment to sustainable development.

–  We have been in the Nordics over 10 years, but we are both local and global. Amundi can offer its global presence and knowhow to its customers. Low carbon products with indexes can give our customers the possibility to have impact investing. We are also a founding member of the Portfolio Decarbonisation Coalition, which is an investment community targeted to mitigate emissions in the investment process, says the company Nordic head Ms Tove Bangstad.

Amundi Asset Management has nearly 1000 billion euros assets under management and is therefore one of the biggest financial institutions globally. Its customers are sovereign wealth funds, institutions, pension funds, corporates but also private investors.

Robots for the industry?

As one of the big institutions, Amundi is also considering what kind of possibilities new technology and robots could bring into the asset management industry.

– It is not far away, that robots would give you an investment strategy with possible funds and risk profiles. They can calculate thousands of different funds and make the best possible optimation. No one else could do that, she says.

This new technology has been taken into pre-use for example in the US and so far the experiences have been very positive, altought the personal contact is missing.

In the near future markets will be watching closely the UK Brexit decision and the US Presidential election and investors have been partly sfiting to save-haven investments to wait for the decision.

– One thing is sure, the turbulence in the financial markets is going to continue also during the autumn time, Bångstad says.

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Business

Amundi: China will be the Game Changer this year

China will be a Game Changer in Climate Change issues, according to Amundi Asset Management, the leading European asset manager. – If last year was the year of COP21 and Paris climate meeting, this year it will be China, China and China. It is also about the Green Bonds and cap & trade, said Amundi deputy director Mr. Frederic Samama to ComteamPUB+ on Tuesday in Stockholm.

Samama Frederic_01_pp

– China will be the leading country in COP21 and their massive investment plans in renewables will lead the way to greener economy. China is also the leading country in Green Bonds, their market share is about 50 percent and their plans to make nation wide cap and trade in emissions trading will be important.  At the moment it seems that the Chinese cap and trade would be in place in 2017, he said.

China renewables investments were 89,5 billion dollars last year

China led in renewables last year with investments of $89.5 billion, accounting for almost one out of every three dollars spent on clean energy in the world, according to Bloomberg New Energy Finance released in January 2016.

The Chinese government aims to get 20 percent of its energy from renewables and nuclear power by 2030 as a means to help cut carbon emissions.

Green Finance Task Force to boost the Green Finance

China has the potential to become one of the world leaders in Green Finance and Green Bonds. The country has established a Task Force for Green Finance in order to boost the integration of sustainable development of China´s financial system.

The context of this prioritizing of greening China`s financial system is an important part of China`s roadmap to “eco-civilization”, which marks a major shift in its economic strategy towards a focus on greening the economy and broader aspects of China’s development.

According to the Bank of China, the country will need at least 320 billion US dollars per year to meet the environmental targets. The aim is to align the public and private sector in these projects.

Carbon risk exposure to companies and compensations

According to Amundi investors are now ready to undertake meaningful corporate governance actions on climate change. – Awareness of carbon risk exposure of individual companies is greater than ever, since it has become easier and easier to measure GHG emissions tied with a company’s operations, Amundi says.

Amundi, the European leader, ranks in the Top 10 worldwide, with assets under management close to €1 000 billion worldwide. The company is listed in the Paris Stock Exchange.

Amundi has become a leading European player in asset management, recognised for:

Product & performance and transparency, Quality of client relationships based on a long-term advisory approach, Efficiency in its organisation and teams’ promise to serving its clients and Commitments to sustainable development and socially responsible investment policies.

Read more http://www.amundi.com

 

Business Finance

Apple Watch sales exceeded the first year sales of iPhones

According to Apple (AAPL),  the sales of Apple Watch have exceeded the first year sales of iPhones during their first year after the product launch. The company spokesmen said that they are very optimistic about the smartwatch and its development. Company made their remarks in the conference calls with financial markets at the end of April.

Apple also marked the new colors and styles of the Watches and said that 94 percent of the smartwatch users are very satisfied with the product itself.

The second quarter (ended March 26)  of Apple was the first time when the company noticed the overall smartphone stagnation globally. The CEO Tim Cook pointed out, that they have seen many swifters from another platforms and that they believe the markets to show more growth again. The company said it will also stay active in the capital markets in M&A  with products/services that can enhance their own offering.

Apple Services, like Apple Music and Apple Pay, showed rapid growth during the quarter and the company said that the growth is one million users per week in Asia. The company has sold over one billion devices with iOs operating system.

The company share price closed to 92,72 dollars last Friday in New York,  down 25 percent year on year.

Business Tech

Musk: Tesla to become the world leader in manufacturing

According to Elon Musk, the CEO of Tesla (TSLA:US) the company is aiming to become the world leader in the manufacturing processes in the automotive industry. Speaking in the company quarterly meeting, Mr Musk said that he believes in manufacturing and that the most potential innovations in the automotive industry is there.

– We believe in manufacturing and that is why Tesla wants to become the leader in the manufacturing in automotive industry. We believe that in production there are more potential for innovations than for example in design. We are increasing our vertical integration, he said on Wednesday.

He also explained about the problems in the manufacturing process at the moment with 6000-7000 components and how it will affect the whole manufacturing process, timetable and quality if some of the components are missing. – That is also why, we are exploring ways, how to minimize risks in our production, but also that our R&D cycle is 2-3 years, not 6 years, he stated. This also means that the current supply chain has to adapt to the new cycle of doing things.

Tesla also announced that they are expecting to reach the mass production by the second half of next year and that would give the company the benefit to scale rapidly by using modern technology and design.

In the interim report Tesla also estimates that they will be producing 500.000 cars by 2018. Mr Musk was expecting that 100 000 would be S-cars, 150.000 X-cars and the rest of, 250.000 the new model 3-cars.

Musk did not want to comment about the possible new production plants in the near future. – It is obvious that California is not the best possible place for shipments for example to Asia. This will happen at some point, when we have reached the mass production and it is up and running, he said. In the first quarter report the company says it will open more than 70 new sales & service locations globally.

The orders of the new Model 3 have reached 400 000 and 93 % of the customers are new, according to the company.  Musk also pointed that the way Tesla is differentiating from its competitors like Google and Apple, is that they have their own production and he believed that by this way Tesla can attract the best manufacturing talent as well.

During the first quarter, the company revenues were 1,1 billion dollars and net loss was 278 million dollars. The net loss per share was 2,13 dollars compared to 2,44 dollars at the year end. Elon Musk did not want to disclose any plans for new capital for this year. Tesla share jumped after the full-year delivery forecast, but ended down 4,2 percent to 222,56 dollars in New York.

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