NBIM to review climate risk

The Norway´s Pension Fund, NBIM, will be reviewing Climate Risk. According to the information from the Ministry of Finance in Norway, the Pension Fund is to review the Climate Risk in the portfolio.

The information was given at the same time when the Fund decided to exclude the oil & gas exploration and production companies from the Fund.

– Climate risk is an important financial risk factor for the GPFG, and will over time have an impact on several of the companies in which the GPFG is invested. The Ministry of Finance will ask Norges Bank to review its efforts relating to climate risk in the GPFG, with a view of strengthening efforts in relation to those individual companies accounting for the largest contributions to the climate risk associated with the Fund, according to the press release.

Companies classified as exploration and production companies by the index provider FTSE Russell will be excluded from the GPFG’s benchmark index and investment universe in a longer term perspective.

 

Business Finance

Deutsche Bank and Commerzbank in merger talks

The two big German banks, the Deutsche Bank and Commerzbank (CBK) are having merger talks. According to several news sources, the German Goverment has already given positive signs to the possible merger. According to Reuters, the decision should be announced in the coming weeks.

If the merger would take place the combined banks would have a market value of 24 billion euros, while at the moment the Deutsche Banks (DBK)´s value is at 15,90 billion euros. The both banks have had downward trend in the stock market, while Deutsche´s share has decreased 13 % and Commerzbanks´s 12,4 % during a year period.

Deutsche Bank´s revenue was 5553 million euros in 2017 compared to Commerzbank´s 2036 million euros. Deutsche´s profit margin was -7,65 % and Commerzbank´s 5,55 %.

The German Goverment owns over 15 % of the Commerzbank, while Deutsche is owned by institutional shareholders, which represent 81 % of the shares. Majority of shareholders are located in Germany.

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Brexit: UK Goverment accepted citizen rights – Merkel and Macron in Paris

The UK Goverment has accepted the citizen rights in the Brexit depate in the Parliament today evening. According to Reuters, UK will turn to European Union to try to secure citizen´s rights if there will be no-deal Brexit.

“I’m happy to confirm … that we will write to the EU institutions and that this will be done in the coming days,” Brexit minister Stephen Barclay said according to Reuters.

The question of delaying the Brexit has got support from Germany and France. The German Chancellor Angela Merkel and the French President Emmanuel Macron commented the Brexit-situation in Paris today.

Both countries would give more time if needed, but the message from President Macron was that there need to be choices taken in order to extend the timeframe.

The German and France leaders were having trade talks in Paris and the countries agreed to present  Bryssels a new industrialstrategy with China. They also talked about the EU army, which the countries have different approaches at the moment.

The German Chancellor Angela Merkel pointed out, that the EU countries must have a clear and unite exports strategy regarding the army products, while at the moment they have different views for example regarding Saudi Arabia.

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Brexit: May is giving the option to delay the Brexit

The UK Prime Minister Theresa May has today confirmed the earlier news and promised the option to MPs to delay the Brexit-deal or ruling out a no-deal Brexit if the Parliament rejects the Cabinet´s proposal.

This means that the meaningful vote will be as planned on the 12th March about the Cabinet´s Brexit-deal. And if this fails, on the 13th of March the MPs will vote if they support a non-deal Brexit. If this would win, it would mean that the UK would leave without a deal on the 29th March.

If this vote is negative, there would be third voting on the 14th March. And it is about the extension of the Brexit deal beyond the 29th March.

According to May, she is still focused on the 12 March voting for the deal in order to leave with a deal on the 29th March.

On Wednesday the Parliament will vote about the sequences of votes.

The UK Prime Minister May said also that the goverment is publishing a paper assessing the readiness for a non-deal Brexit and the serious challenges it would pose, according to BBC.- But this paper provides an honest assessment of the very serious challenges it would bring in the short-term and further, she said.

 

Business Finance

Markets ended up on Monday trading

The stock markets ended up on Monday trading in Wall Street. The markets got the positive spirit from the outlook of the US China trade talks. the US President Donald Trump tweeted on Sunday that he will extend the tariffs deadline with China.

In China the stocks jumped over 5 % of the news that US is postponing the tariffs deadline on March 1st. In Europe the growth was milder.

Dow Jones ended up 0,23 % to 26091 points on Monday, S&P 500 index ended up 0,12 % to 2796 points and tech-index Nasdaq ended up 0,36 % to 7554 points.

In Europe the stocks did not rally that much than in the Asia and in Paris the CAC 40 -index ended up 0, 31 % to 5231 points and in Frankfurt the DAX-index was up 0,42 % to 11505 points.

In China, the Shanghai index ended up 5,60 % to 2961 points and CSI-index 5,95 % to 3729 points. In Hong Kong the HangSeng index ended up 0,50 % to 28959 points and in Tokyo the Nikkei-index ended up 0,48 % to 21 528 points.

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Brexit: May considering of Brexit delay

The UK Prime Minister Theresa May is thinking of delaying the Brexit day. According to Bloomberg News, the PM is considering the extending of the March 29th and would publish the Cabinet´s conclusions in an announcement on Tuesday.

The information of the possible delay in the Brexit-day came after the Labour leader Jeremy Corbyn decided to support the second referendum.

The UK sterling was trading up at 1.3147 dollars due to the news that there might be more time to cope with the Brexit.

According to Bloomberg, May will have the Cabinet discussion about the Brexit-delaying in the morning at 9.30 UK time in London on Tuesday. And will give the updates to the Parliament during afternoon.

 

Business Finance

Trump will delay the China trade tariffs deadline

The US President Donald Trump said on Sunday, that US will delay the China trade tariffs increase. According to him the trade talks have been productive.

-I will be delaying the US increase in tariffs for March 1. Assuming both sides make additional progress, we will be planning a Summit for President Xi and myself at Mar-a-Lago to conclude an agreement, he said in a Twitter tweet.

This was a relief for many stock market traders and the Asian stocks climed and the Chinese yuan rose against dollar during the trading day. The Japanese yen was little changed at 110,62 dollars.

The stock markets in Shanghai were up by 3,32 % to 3034 points and CSI-index by 3,55 % to 3644 points. HangSeng in HongKong was up 0,25 % to 28 888 points and the Nikkei 225-index was up 0,47 % to 21 525 points in Tokyo. The South Kospi-index was down 0,01 % to 2230 points.

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