German government to foster sustainable agriculture

The German Government has decided to foster sustainable agriculture in the coming years. According to the government, next year there will be additional 75 million euros to promote relevant sustainable actions.

The Cabinet said that the country’s EU pilar two in the agriculture will be used partly to projects that promote sustainable and environmentally sound farming methods and development. This means that farmers get direct payments for the work towards sustainable agriculture, like for example in the transition to organic farming.

The Cabinet decision was made on the 4th September. There are around a million people producing goods worth 50 billion euros annually in the German agriculture sector.

Business environment

Hong Kong to continue the LSE charming

The Hong Kong Exchanges and Clearing (HKEX) is continuing with its LSE charming in spite of the LSE rejects. The London Stock Exchange Board has rejected the 32 billion pounds offer from the Hong Kong Stock Exchange. According to LSE, it is committed to its own deal, the 27 billion pounds acquisition of data and trading group Refinitiv and with its co-operation with Shanghai Stock Exchange.

HKEX has met several financial authorises in the markets to discuss about the offer and in order to overcome the mentioned political and governance risks related to the HKEX offer.

According to Financial Times, the HKEX has time until the 9th of October if they will continue with the offer.

 

Business Finance Tech

Google to increase renewable energies globally

The US tech company Google (GOOGL ) has announced that it has made its biggest corporate purchase of renewable energy ever. This include 1600 megawatt package of wind and solar agreements and 18 new energy deals. According to Google more than 2 billion dollars will go to building new infrastructure in the US, Europe and Chile.

– These renewable energy purchases aren’t only notable for their size. Up to now, most of our renewable energy purchases in the U.S. have been wind-driven, but the declining cost of solar (down more than 80 percent in the past decade) has made harnessing the sun increasingly cost-effective. Meanwhile, our Chile deal marks the first time we’ll buy power in a hybrid technology deal that combines solar and wind. Because the wind often blows at different times than the sun shines, pairing them will allow us to match our Chilean data center with carbon-free electricity for a larger portion of each day, Google says in its press release.

The purchase is equivalent to the capacity of a million solar rooftops the Google CEO Sundar Pichai said.

Other tech companies are also announcing their climate change mitigation actions and energy efficiency plans before the next weeks UN Climate Change meetings. For example Amazon (AMZN) has said it will run only by renewables by 2030 and is targeting carbon-neutral by 2040.

Business Tech

Juncker: Brexit-deal possible -Sky News

The European Commission President Jean-Claude Juncker said in Sky News interview that it is possible to have a Brexit-deal with the UK.

He said “we can have a deal” while the no-deal Brexit would have “catastrophic consequences”.

Mr. Juncker also confirmed that he has got some new draft ideas from the UK Prime Minister Boris Johnson.

The UK is about to leave on the 31st of October the EU block.

The Supreme court is expected to have their decision about the Parliament suspension in the begining of next week. The Parliament was suspended for five weeks by PM Boris Johnson.

Business Finance

BoE to keep rates unchanged – bank stocks surged in Europe

The UK Central Bank, the Bank of England kept its key base rate unchanged today in its meeting.  According to the central bank, the inflation target 2 % remains also the same. The bank also commented that the outlook for the global growth has weakened due to the US China trade talks since their earlier meeting.

– In the event of a no-deal Brexit, the exchange rate would probably fall, CPI inflation rise and GDP growth slow. The Committee’s interest rate decisions would need to balance the upward pressure on inflation, from the likely fall in sterling and any reduction in supply capacity, with the downward pressure from any reduction in demand. In this eventuality, the monetary policy response would not be automatic and could be in either direction, the bank said in its release.

Yesterday the US Federal Reserve cut the fed funds rates to be 1,75% to 2 %. The Fed also has been active in the money markets adding the liquidity three times during this week.

In Japan the Bank of Japan also kept the rates unchanged in its meeting today on Thursday. On the other hand the Hong Kong Monetary Authorities said that they have lowered the key rate accordingly to the Fed decision, to 2,25 % from 2,5%.

The German 10-year government bond yield was -0,51 %, the UK Gilt´s 0,63% and the US´s 10 year Treasury 1,77%. In France the 10 year bond was yielding -0,22%.

Euro was trading up 0,12 % at 1,10 dollars. Sterling was also up, 0,02 % to 1,247 dollars.

The stock markets surged in Europe today. The Dax-index closed up 6,34 % to 12 457 points, the CAC 40-index increased 5,35 % to 5659 points points in France and the FTSE 100-index closed up 2,32 % to 7356 points in London.

The banking sector were higher in Europe due to the European Central Banks decision to lower the long-term funding (TLTRO III)  for lenders. It became effective today.  The ECB also announced on the 12th September meeting that the maturity of the refinancing operations will be extended to three years.

 

Business Finance

Tiffany to open more stores in China – Bloomberg

The US jewellery company Tiffany (TIF) is opening more stores in mainland China, writes Bloomberg today. According to the CEO Alessandro Bogliogo the company has seen ” a big increase in sales in mainland China”.

According to Tiffany, Chinese consumers have decreased somewhat the spending overseas but continue shopping in mainland. Also the ongoing trade talks between the US and China have had their own impact in the spending.

The company is to published its third quarter figures in late October. Today the company shares were trading down -0,61% at 92,27 dollars in New York.

 

 

 

 

 

 

Business Lifestyle