2022 was one of the most successful years for the oil and gas industry; the industry is estimated to have made income of USD 4trn vs an average of USD 1.4-1.5trn in previous years. The six largest western oil companies made more money than in any year in the history of the industry: over USD 200bn.
Impressions on the Re-opening
After 3 years, China has finally reopened its doors to foreign travelers. Alice Wang, manager of a Chinese and ex-Japanese equity strategy at Quaero Capital, has just returned from a 3-week trip to China. In the following text, she shares her impressions, sometimes anecdotal, based on numerous meetings and visits throughout the country.
Hunting for bargains in the small cap jungle
Once we have cleared up a few misconceptions about small and mid caps, we realise that there are major differences between them and that we can find some real nuggets that have been totally overlooked by the market. This is a particularly good time to be a gold digger.
Should we choose between degrowth and green growth?
To understand the different decarbonisation paths available to us, we can refer to the Kaya equation used by the IPCC to establish its emissions scenarios.
Total CO2 emissions = (Population) X (Income per person) X (CO2 emissions per USD of income)
European equity outperformance: stop or else ?
The strong outperformance of European equities (Eurostoxx large) between the beginning of September 2022 and the beginning of March is quite impressive. In local currency, the EuroStoxx outperformed the S&P500 by almost 19%; the outperformance is even more marked in euro (25%) due to the appreciation of the euro over the period.
SVB in default … What now?
A few lines to revisit the Silicon Valley Bank (SVB) event in particular, and also the other Category IV US banks (banks with a total balance sheet of less than USD 250 billion) notably First Republic Bank, Signature Bank, PacWest Bancorp, and Alliance Bancorp.
Energy transition: Switzerland is falling behind
While the climate emergency is becoming more pressing by the day, our country is continuing its usual policy of (very) small steps at a slow pace. And while solar power is now the cheapest source of electricity, we continue to rely heavily on fossil fuels.
5 (good) reasons to invest in unlisted infrastructure
Infrastructure is in vogue, and for good reasons! Here are 5 of them, ranging from performance to inflation protection to accelerating the energy transition.
Geopolitics of the energy transition
Sovereignty and energy independence being intimately linked, the transition towards decarbonized energy will necessarily be accompanied by a redistribution of geopolitical cards.
The diverging future of ESG
The outlook for sustainable investment is diverging globally, simultaneously being propelled forward by regulation in Europe and parts of Asia, most notably in China, and being significantly challenged by growing politicisation and controversy in America.