Green Principles for the China Silk Road

China has set new green principles for the China Belt and Road Initiative (BRI).  The leading organizations The Green Finance Committee of China Society for Finance and Banking together with the City of London Green Finance Initiative have jointly co-operated in the project.

The aim of the principles is clear: to foster environmental issues and sustainability in the area and to foster environmental, social and governance risk factors into decision-making processes and conduct due diligence and develop risk mitigation and management plans with the help of independent third-party service providers.

The organizations will also disclose environmental information and greenhouse gas emissions (GHG), water use and deforestration. One of the reporting models will be the Task Force on Climate-Related Financial Disclosure.

The companies are also encouraged to have more communications with different stakeholders and use modern, green finance instruments like green bonds and green asset backed securities in financing the green projects.

According to the principles, the companies will also adopt green supply chain management and integrate ESG factors into the supply chain. The principles are voluntary, but the signatories are expected to adopt and apply these in their investments and operations in the area.

The ancient Silk Road is the of the major infrastructure projects in Asia, which is promoted by the Chinese Goverment.

Business Finance

G20: US and China to halt tradewar

During the G20 meeting in Argentina the US and China leaders, President Mr Donald Trump and China President Mr Xi Jinping agreed to halt the escalating trade war.

According to the White House spokesperson,  President Trump would not follow through his threat to raise tariffs on Chinese goods from 10% to 25% in the new year.  This has been the major issue in the discussions and also one of the biggest threats to global economy.

The countries also agreed that China will buy more agricultural, energy and industrial products from the United States. The aim is to reduce the trade imbalance between the countries.

According to White House, this new statement gives both countries 90 days time to agree upon new trade terms. If such agreement is not ready, the former tariffs increase from 10% to 25 % will become into force.

The financial markets ended up in Wall Street on Friday evening. Dow Jones ended +0,79 % to 25538, S&P 500 + 0,82 % to 2760 and Nasdaq 0,79 % to 7330 points. In Europe the markets were down with the FTSE 100 -index -0,83 % to 6980 and German Dax-index -0,36 % to 11 257 and CAC 40-index in Paris -0,05% to 5003.

Euro declined 0,67 % to 1,13 US-dollars and UK sterling ended down 0,33 % to  1,27 US-dollars.

Business

China to lead the Swiss Watch export – growth double digit

China has shown the biggest demand for Swiss Watches during the October 2018 figures, according to the Swiss Watch Industry. Watch industry exports have reverted to the sustained trend and totally it was 1987 million Swiss francs, which is 7,2% higher than year ago.

Hong Kong gained 10.3% and the United States 11.1%. China recorded one of its biggest monthly increases for the year at +24.1%.

The main European markets such as the United Kingdom (+5.0%), Germany (+8.7%) and France (+11.6%) were having positive trend, but Italy (-14.7%) and Spain  (-14.7%). exports were declining.

 

Lifestyle

Brexit: May on tour – vote day the 11th Dec

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The British Prime Minister Theresa May has been on tour in order to engage with the Brexit-deal. Today she has been in the Northern Ireland and Wales as part of her campaign. Her message is the same as was released on Sunday in the EU leaders meeting in Brussels.

The main argument still is that this is part of the national interest and the second point is that this is the only Brexit deal, there is not going to be a better one.

The voting day has been confirmed and it is the 11th of December, that is on Tuesday. So, there is excatly 14 days before the vote in Westminister in London. The Bank of England and Goverment  are going to publish their analysis of the economic impact of the Brexit-deal. According to Reuters, this information should be ready tomorrow,  on Wednesday this week.

The financial markets were mixed today. For example the German Dax-index ended down 0,40 percent to 11309,11 points and in Paris the stocks were down 0,24 percent-  the CAC 40 -index ended at 4983,15 points. In London the FTSE 100 -index ended down 0,27 percent and was 7016,85 points.

In Wall Street the stocks were also mixed – Dow Jones -index was up 0,18 percent at 24685,55 points and  S&P 500 -index was up 0,09 percent to 2675,87 points. Nasdaq-index had declined by 0,22 percent and was 7066,08 points.

This week will be important G20 meeting in Argentina and  according to Financial Times the US- China tradetalks have not performed  as good as expected so far. The question of the US- UK tradetalks in post Brexit-time is also one of the topics.

One of the big news today was the General Motors layoffs in the US. The car company announced its plans to cut production at several sites and to lay off more than 14.000 workers. The stock of GM (GM) was down 3,55 percent to 36,32 dollars. President Donald Trump tweeted that he will consider cutting all GM subsidies because of the plans. “including the electric cars”, he tweeted according to CNBC.

The euro was down by 0,30 percent to 1,129 US-dollars and the sterling was down by 0,76 percent to 1,2730 US-dollars.

 

 

 

 

 

Business Finance

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.

 

 

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.

 

helsinki2018-logo

 

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