Nick Ottens (Atlantic Sentinel) | Earlier this month, I took an in-depth look at the draft election manifesto of the Netherlands’ ruling liberal party (VVD), which is likely to win the next election. (Disclosure: I’m a party member.). Now that most other parties have released their manifestos as well, it’s possible to make a comparison.
Many governments have committed to a net-zero carbon pledge, and many more should follow. In total, 26 countries now, or are about to, have a net-zero carbon pledge set in law and many others are currently discussing potential targets. However, only 11 governments have already launched sovereign green bonds. AXA IM expect this figure to grow as an increasing number of countries are due to put their words and commitment into action and investments, which are likely to be financed through green bonds. After Germany, Hungary, Sweden and the Netherlands launching theirs over 2020, Italy, Spain and the UK have already pledged to issue a green bond next year and certainly many others are likely to follow.
Alphavalue | Against growing environmental constraints, as well as an uncertain perspective on hydrocarbons, oil companies are modifying their strategy. The electrification of the energy mix appears as an opportunity for the mutation to integrated energy companies. The big oil companies want to be a part of the growing market of renewable energies, but they will compete against the powerful utilities.
After ruling out its integration with Banco Sabadell and with improved macro perspectives in Turkey, where it owns over 49.85% of Garanti bank, BBVA can potentially devote a higher amount to increasing shareholder remuneration. This could be through share repurchases as it does not need to strengthen provisions and has excess capital. For its part, Banco Sabadell has announced it will develop a new business plan that will prioritise the domestic market as a formula to increase the creation of value.
Intermoney | In the first nine months of the year, according to the Institute of International Finance (IIF), which represents a sort of international banking association, global debt has increased by $15 trillion and is likely to exceed $277 trillion by 2020. Thus, at the end of this year, the world debt would amount to 365% of GDP, compared to 320% at the end of 2019, along with the high figures in developed countries that are only possible due to the role of last resort lender of their central banks.
Chinese equities are responding positively to the macro tailwinds. The S&P China 500 Index – a diversified index which includes both onshore and offshore listings – is up nearly 31% year-to-date. This compares to the S&P 500 Index which is up around 13% over the same period. These are encouraging signs for those interested in Chinese equities – strategic and tactical investors alike.
Activity slowed in November in many European countries, but remained at a relatively fast speed of expansion in most economies, except for Spain and France, where manufacturing activity contracted. Two surprises are worth mentioning: Sweden and Switzerland saw a stronger acceleration of manufacturing activity in October.
Randstand Research | The labor market records in November reflect a relatively negative performance against the path of recovery that was observed during the previous four months. Social Security affiliation in November increased by 31,638 people, a 0.17% increase, the best figures in that month since 2006, but it masks a rising in those affected by temporary layoffs of 147.000 during that month. The total number of contributors exceeds the threshold of 19 million (namely 19.02 million people).
The renewable energy group has announced the inclusion of a new clause in contracts with suppliers and customers to protect itself against Brexit. The company itself describes this as a “Brexit clause. This will eventually offset the impact of new customs duties which will be applied to imported and exported equipment. This is currently duty free.
EURUSD´s resistance to break the 1.20 level in the short-term is underpinned by a weaker growth differential and broad uncertainty about vaccine developments, i.e. which ones will gain approval and how they will effectively be distributed across the euroarea.