The Chinese Asset Managers get Green Finance Guidelines

The Asset Management Association of China (supervised by China Securities Regulatory Commission) has issued its first Green Investment Guidelines last week. This is systematic and voluntary standard for the Chinese Asset Management industry to implement the ESG issues into investment processes and scaling up the green investments in China.

This guidelines gives basic principles and standards for green investment activities like investment methods, investing strategies, regulations, benchmarks and evaluation. It also urges fund managers to prioritize investing in green projects.

This guidelines also ask fund managers to conduct self-assessment on an annual basis and submit the results to the Association at the end of March each year.

 

 

Finance Business

Schiphol aiming to become the most sustainable airport in the world

The Amsterdam Airport, Schiphol is aiming to become the most sustainable airport in the world.  The company has also announced that they are targeting zero waste airport by 2030 and a climate neutral airport by 2040. The targets are shown in the company´s Green Bond Framework. Schiphol has issued a 500 million euros Green Bond to finance the structural changes.

-Safety is our top priority and we will never make any concessions to ensure passengers can safely travel to and from our airports. In addition, we aim to lead by example when it comes to sustainability in the aviation sector and strive for three main objectives: a clean future for the aviation sector, future – proof airports and a healthy working and living environment, the Royal Schiphol Group N.V (Schiphol) stated.

Since 2018, 100% of energy used at Schiphol is sourced from Dutch wind energy. Travellers can access Schiphol by train or by bus, the largest electric bus fleet in Europe. Majority of the taxi fleet is also electric.

As part of the Green Bond Framework, the Company is planning in invest in new, green buildings and clean transportation. This means for example charging stations for buses, cars and airplanes. The Airport is also planning to increase the use of its bio-fuels facilities.

The senior unsecured bonds are due 5 November 2030 and carry an annual coupon of 1.5%.  The bond will be listed in Euronext, Amsterdam.

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Schiphol is the first European airport to issue a green bond.

Business Finance

Helsinki2018: Talks about trade & China

The  Helsinki2018 meeting has started with presidents Donald Trump and Vladimir Putin in the Helsinki Presidential Palace with the Finnish president Sauli Niinistö. According to the US President Donald Trump,  the discussions will range from trade to China.

– Getting along with Russia, is a good thing. And when we have 90 percent of the world´s nuclear power, we might talk about this as well, he said before the meeting.

 

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Finance

Stock markets steady in spite of trade wars

Financial markets stayed steady during the Monday morning  trading in the European Stock Exchanges. For example the London FTSE 100 – was down about 0,09 percent, DAX in Frankfurt was up 0,07 percent and Paris CAC 40- index was up 0,01 percent.

The markets in Japan were closed on Monday, but Hang Seng was up 0,05 percent in HongKong and Shanghai A-index was down 0,61 percent.

The dollar was trading 1,17 against euro, up 0,07 percent.

The trade tensions between the US, China, Russia and EU are tiggering and the companies are facing growing unease with the situation. This will have its own impact in investment decisions, timings, places and financing. For example this will have big impact in tech companies and their locations in the future.

The markets will be expecting more information from the world leaders, the US president Donald Trump and Russian president Vladimir Putin in Helsinki today. The leaders are having their press conference during the late afternoon EET.

Finance

Helsinki2018: How the markets will open on Monday?

 

helsinki2018-logoThe big question in the financial markets will be the market reactions on Monday. What have we heard so far? The first thing is that trade wars are real at the moment and the markets are waiting for more information from the meeting in Helsinki on Monday. Will the US president Donald Trump or Russian president Vladimir Putin say something regarding the trade wars, economics or sanctions? Last week the markets closed mixed globally.

The trade wars are affecting primarily auto, steel and aluminum industries globally. So far the auto industries have developed very differently. For example the Swedish car manufacturer´s Volvo stock price  (VOLVB) has increased by nearly 2 % annually, but for example the luxury car manufactuer Ferrari (Ferrari) by over 50 % in New York, On the other hand Tesla´s  (TSLA) stock price has declined by over 2,5 % and the German company Daimler´s  (DAI) by over 6 % and Volkswagen´s (VOW) with 0,5 % during the same period.

The autoindustry is important to the EU, while the German auto production is about 20 % of the global passanger car production. The turnover is about 404 billion euros according to the German Trade & Invest. And the industry sector is having otherwise very good future outlook with energy efficient cars, growth estimates are nearly 30 procent annually by 2020.

In the US, the autoindustry has seen signs of declining sales during the summer time – General Motors and Ford  have been reporting. The city of Detroit is facing lay offs.

Last year totally 17 million passanger cars were built in the EU and EU was the second largest producer of passanger cars. The US production declined by 11,5 percent and the production totalled 8 million cars.  China maintained its leading position among global passanger car producers – totally 29 percent of all cars were produced  in China according to ACEA.

So, one can understand that Tesla decided to build a new car plant in China.  The company announced last week that they will open a plant in Shanghai delivering 500 000 vehicles a year. The project time for the plant is about five years, but the size of the investment was not published.

The autoindustry is having big changes and for example the OEM production is also one part of it. So far, the EU has been the place for premium cars, but for how long? Also the UK Brexit-talks will have their own impact on the autoindustry development,

 

 

 

 

 

 

 

 

Business Finance

Helsinki2018: How about the investments?

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The tradewars between the US, China and the EU are escalating in all frontiers. The world economies are already suffering of the lack of confidence and stability. It really needs a crystal ball to see behind the unexpected and C-level executives are trying to navigate in the day-to-day  ever changing economic environment. It is clear that the tradewars  and sanctions will be one of the top questions in the #Helsinki2018 meeting with presidents Donald Trump and Vladimir Putin.

The world economy is mixed up. The discussion in the NATO meeting in Brussels this week also showed the power of the US. The defence budget of 2 procent of the NATO-country´s GDP is one of the questions but also the questions of next investments and taxes. Which country will be the next growth country to invite international investments and money? And what will happen to institutions, are they ready to renew their way to operate and engage? It seems clear that Nato in not the only one, there might also be the UN and for example IMF and World Bank in the financial markets.

It is no wonder that the space will be the next generation growth area. At the moment there are no internationally and generally accepted laws and rules how to proceed with the new technology and investments. It offers taxfree for everybody who could have the access to ride to the moon. And that is why it is important for countries to have as much co-operation and network as possible in order to be along in the process. Like for Finland, which is a small, but quite innovative country, to be part of the technology development.

The number two is also important for the European Central Bank (ECB). This is the inflation target of the EU area. The bank´s monetary policy says that the main target for the central bank is to keep price stability and the inflation below, but close the 2 % over the medium term. This is the mechanism how the EU area will have growth and jobs, but also how to keep the value of euro.

One can say that this is also the same what president Donald Trump is doing with “corporate America and America first”. And so far it seems working – the earnings of listed companies have risen by 22 % compared to year ago and investments are up 19 procent. The relaxation of banking rules and corporate taxes have fueled the economy.

The new inflation numbers from the US show the trend – inflation is on rise and it has strengthen the dollar.  The figure 2,9 % is a clear sign for the Federal Reserve to rise the interest rates- it is estimated that there will be at least two increases this year.

The euro has fallen to 1,17 dollars. And naturally the ECB is worried about the overall economic situation in the Eurozone. Tradewars and sanctions are not helping the economic growth and rising inflation on the other hand will increase the pressures to rise the interest rates.

It seems clear that old rules are not working any more. In order to avoid the global economic and financial crisis, action, co-operation and readyness is needed from cabinets. Maybe we see something about this on Monday in #Helsinki2018?

Päivi Härkönen

 

Business Finance