EU presented the Green Deal – climate-neutral continent (updated)

The European Commission presented today the “Green Deal” proposal for the climate-neutral continent in the world.  According to the Commission, becoming the world’s first climate-neutral continent by 2050 is the greatest challenge and opportunity of our times.

According to the Deal, it should “enable European citizens and businesses to benefit from sustainable green transition. Measures accompanied with an initial roadmap of key policies range from ambitiously cutting emissions, to investing in cutting-edge research and innovation, to preserving Europe’s natural environment.”

The European Green Deal covers all industry sectors, for example transport, energy, agriculture, buildings, and industries such as steel, cement, ICT, textiles and chemicals.

The EU Commission will also present the first European Climate Law and Biodiversity Strategy for 2030, the new industrial Strategy and Circular Economy Action Plan. The aim is also to make the Farm to For Strategy for sustainable food and pollution-free Europe.

All these actions require major investment and therefore the EU is also presenting a Green Financing Strategy next year.

-Achieving the current 2030 climate and energy targets is estimated to require €260 billion of additional annual investment, representing about 1.5% of 2018 GDP. This investment will need the mobilisation of the public and private sectors. The Commission will present in early 2020 a Sustainable Europe Investment Plan to help meet investment needs, the release says.

-At least 25% of the EU’s long-term budget should be dedicated to climate action, and the European Investment Bank, Europe’s climate bank, will provide further support. For the private sector to contribute to financing the green transition, the Commission will present a Green Financing Strategy in 2020, the EU said on Wednesday.

 

 

 

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The competition of 5G is increasing in US, Asia and Europe

The rollover in the 5G networks has become a hot topic in the US, China and Europe. The competition of the leadership is increasing due to the market situation, standard setting and regulation. The hyped 5G is getting also comments related to ethics and good governance.

The speculations of global leadership in the 5G networks have been increasing due to the tensions between the US China trade talks and issues related to Huawei. The Chinese tech company was placed to black list by the US authorities due to the security concerns. The company has repeated that this is not the case.

Many market analysts say that the growth of the 5G investments will see the same kind of path as did the 4G. Others think that the path will be different due to the different applications the 5G is made for like the business to business applications. All agree that this game-changing technology, the 4th industrial revolution, will make the business difference.

The leadership talks is now between the US and China. It is expected that the Chinese markets will invest in the new technology 218 billion dollars during the years 2020-2025. This estimate from the China Internet Report also states that there would be 460 million 5G connections by the end of 2025. China has maintained the political ambition in the new technology.

Europe is lacking behind the 5G development about one year due to the lack of spectrum and the lack of integrated EU-tech strategy.

-5G delays in Europe are not tied to the choice of technology vendor. Europe instead faces a series of structural problems that hinder 5G development.  Some structural reasons for Europe lagging behind were the lack of spectrum and a dangerous “wait and see” approach to 5G among some regulators and service providers. The biggest roadblock relates primarily to regulatory policies.  5G must be viewed as a critical part of European national infrastructures.  This is not the case today, the Swedish company says.

The international 5G competition is also a question of the global standard and standard setting which normally have been in the interest of the European companies as well. But it is also questions of the good governance as related to the big tech companies recently over privacy, personal information and security issues.

The US Qualcomm CEO Steve Mollenkopf said in the Bloomberg interview on Monday that he thinks China is trying to create that standard and he sees that it is not only the China that is interested of the standard but also the other Asian countries like South Korea and Japan.

Regarding the competition situation Mr Mollenkopf commented that the only way the 5G is to be implemented is to co-operate with Huawei. According to him, it is the only way to make the 5G live in the world although there are some geopolitical tensions.

This new technology, 5G with high internet speed, enable the development of future sustainable cities, industries and homes with smart applications related to artificial intelligence, iOT and virtual reality.

The new network is needed in order to effectively take care of the future needs related to driving, health and security issues for example. So, it is also a question of confidence, trust.

There are different companies in the 5G supply chain to gain from the new technology. The network suppliers, semiconductors, mobile phone manufacturers and other vendors play a vital role in the development. For example one of the mobile phone makers, the US Apple, has said earlier that their 5G phones will be available in the late 2020.

For tech stock investments follow for example these companies for more information of the development: Apple (AAPL), Verizon (VZ), AT&T (T), Qualcomm (QCOM),  Alphabet (GOOGL), T-Mobile (TMUS), Sprint, China Mobile (0941), China Telecom (0728), China Unicom (0762), China Broadcasting Network, Ericsson (ERIC) , Nokia (NOKIA), Huawei, Samsung (005930), NTT Docomo (9437).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Finance Tech

Stocks tumbled globally – trade conflict

The global stocks markets tumbled on Thursday trading. The main reason for the bear sentiment were the trade discussions between the US and China, which are still open. The US President Donald Trump and the Chinese President Xi Jinpeng are expected to meet in Japan in the G20 – meeting in June.

Dow Jones-index ended down 1,11 % to 25490 points, the S&P 500 -index closed down 1,18 % to 2822 points and the technology index Nasdaq down 1,58 % to 7628 points. The 10-year government bond yield dropped to lowest levels since 2017 and the energy stocks dropped by 3,13 % on Thursday trading.

Hewlett-Packard (HPE) announced its quarterly results and guided for fiscal 2019 the net EPS to be 2,04-2,11 dollars per share. The company net revenue was 14 billion dollars during the quarter, up 0,2 % from the year earlier. The personal systems accounted for 8,9 billion dollars of the sales and the profitable printing side 5,1 billion dollars. The stock ended down 2,65 % to 14,70 dollars.

The US President Donald Trump said in the White House press conference that the Goverment will help farmers with a new 16 billion dollars direct aid. He also mentioned that the US economy has done better since 2016 with the value of 8 billion dollars. In the trade talks issues he mentioned also the new deal with Japan in the agriculture products and also the new USMCA agreement with Mexico and Canada. According to the President, many democrats in the congress are also backing the USMCA deal.

In Europe the stocks ended also down with FTSE 100 -index down 1,41 % to 7231 points, the German Dax-index 1,78 % to 11952 points and the France CAC 40 -index down 1,81 % to 5281 points.

The EU and UK Brexit situation is still open and both sides are waiting for the EU elections results due to next Sunday evening. UK Prime Minister Theresa May is expected to leave her position after the Brexit deal and according to the new situation, all the options are still valid: no-deal or deal Brexit or new referendum.

The UK Goverment said that the Withdrawal Bill will be presented to the UK Parliament in early June. The US President Donald Trump is visiting the UK in early June from 3rd-5th June.

The sterling was trading down 0,04 % 1,2660 dollars and the euro was up 0,29% to 1,118 dollars. The US-dollar was down 0,72 % to 109,57 yens and euro was up 0,31 % to 0,8833 pounds.

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Brexit: May to propose new deal in June

The Brexit situation in the UK changes very rapidly. Last week the Labour Party leader Jeremy Corbyn said that the talks with the Goverment has ended due to the rising talks of the new successor to PM and due to the deal issues itself. On Sunday the Prime Minister said that she is to present a new deal to the Parliament in the early June, as she earlier said.

The successor issue to Mrs May is confusing the negotiations in the UK and according to Bloomberg News, it seems that the Labour Party is turning towards to the second referendum. For corporates and business, this means that the no-deal Brexit might still be an option.  “A messy exit could still happen by accident”, said British Chambers of Commerce according to Bloomberg.

In the London Stock Exchange, the FTSE 100 index was trading down 0,03 % to 7333 points. In Germany the DAX-index was trading down 0,15 % to 12 220 points and in France the CAC 40 -index down 0,21 % to 5426 points.

The pound was trading slightly up, 0,21 % to 1,275 dollars and euro also up, 0,04 % to 1,116 dollars. The Australian dollar was up, 0,93 % to 0,69 US-dollars.

The trade war between the US and China is one of main topics. According to Bloomberg, 34 % of the investors surveyed by the Bank of America said that they have purchased protection against a sharp decline in the equities over the next three months.

US President Donald Trump has delayed the possible auto tariffs with the EU with 6 months delay.

In Asia the week started mixed as the Hang Song index ended down 0,56 % to 27 788 points in Hong Kong, but the Nikkei 225-index ended up 0,24 % to 21 301 points in Tokyo. The Indian Sensex index increased 3,07 % to 39 095 points.

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What next in the European banking?

The collapse of the merger talks between the two German banks Deutsche Bank and Commerzbank, will increase the speculation in the European banking consolidation further.

Earlier there has been speculation of the Italian bank Unicredit to be interested to merge with Commerzbank. But this new situation after Thursday announcement of the break in the two German banks, will raise other candidates as well.

For example the New York Times, write also about the Amsterdam banking group ING as a possible candidate.

The European banking sector was up slightly, while Stoxx Europe 600 banking index was trading 0,09 % at 147,65 points. In one year time this sector has declined by 16,9 %.

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Stocks down in New York and in Europe

The Stock Markets were down in today´s trading in Europe and in New York. In Asia the stocks ended up in Japan and in Hong Kong.

The market were pushed down by the news of the new possible tariffs in the US EU trade talks. Also the news that IMF, the International Monetary Fund, has lowerd the global and EU economic growth forecast for this year fueled the stocks down. The global economic forecast is now 3,1 % for this year (3,3 %).

According to the US Goverment they are proposing new tariffs worth 11 billion dollars in to the production from the EU. This would include for example civilian aircraft and agricultural products. The reason for this new stage in the negotiations is  the WTO , which has shown that the EU subsidies to Airbus (AIR) have had negative impact on the US trade.

Dow Jones was down 0,72 % to 26151 points, S&P 500 -index was down 0,61 %to 2878 points and Nasdaq-index was down 0,56 % to 7909 points.

In Europe the FTSE 100 ended down 0,35 % to 26151 points, the German DAX-index ended down 0,94 % to 11850 points and the Frensh CAC 40 -index ended down 0,65 % to 5436 points.

In Asia the Nikkei-index ended up 0,19 % to 21 802 points and the Hang Seng -index in Hong Kong ended up 0,27 % to 30 157 points.

The UK sterling was trading down 0,06 % to 1,205 dollars and the euro was unchanged at 1,1263 dollars. Dollar was down 0,29% to 111,16 yens today.

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