Greece and Iceland’s recent economic histories offer an interesting case for a comparative study. Highlighting the danger of running a large current account deficit, their experience can also be a guide for the future of the British economy and currency.
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The environmental footprint of the shipping industry
As it’s often the cheapest form of transportation, more than 90% of all world goods, from raw materials to finished products, are carried by sea. Spurred by worldwide population growth and increasing globalisation, global trade has grown by 85% in the last 18 years. The shipping industry merchant fleet has grown to c.100,000 vessels producing an estimated 3% of global greenhouse gas emissions annually. According to the International Maritime Organisation (IMO), the UN agency responsible for the safety and security of the shipping industry, emissions will increase between 50 and 250% by 2050 under a business-as-usual scenario, if no drastic measures are taken.
Jouons les apprentis sorciers !
Cette chronique de notre CEO Jean Keller a été publiée dans Le Temps du 2 septembre 2019. Lire l’article.
Au risque d’enfoncer une porte ouverte, force est de constater que les politiques monétaires expansives de ces dix dernières années nous ont menés dans une impasse. Car si le « Quantitative Easing » a certainement contribué à sauver l’Europe d’une catastrophe économique, il faut bien admettre que nous avons atteint les limites du modèle et qu’il est urgent de trouver d’autres outils de politique conjoncturelle afin relancer la consommation moribonde sur le Vieux Continent.
Deforestation
Global deforestation is at a very high level, losing five million hectares a year or the equivalent of 15 football pitches of forest every minute. The election of the new Brazilian President Jair Bolsonaro in January led to a rapid reacceleration in Brazil; the Brazilian Space Agency found that deforestation had increased by 88% in June this year relative to last. In the past forty years, the Amazon rainforest has lost about 18% of its territory.
A deep plunge in the midst of the summer heat
As recession fears rose last week, government bond yields in Europe reached new lows. In our opinion, a long-term investor ought to seek better investments than assets that will yield negative nominal returns over several decades.
Engagement efforts with CDP
Earlier this year QUAERO CAPITAL became a signatory to the Carbon Disclosure Project (CDP), an organization that campaigns for better disclosure of environmental performance data from companies, cities, states and regions. It aims to make environmental reporting and risk management a business norm, and drive disclosure, insight and action towards a sustainable economy.
The US and Climate Change
While the European Union signals increasing ambition to curb carbon emissions, the common perception is that momentum in the US market is in the opposite direction. While the ambitions of the Trump administration have been to cut back environmental regulation, there are reasons to believe these reversals may be stalled. Factors to consider in the US market include:
Adopting behavioural finance approach
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2019 so far: European Small Cap Equity funds update
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The rise of the carbon price in Europe
The election of Ursula von der Leyen as the Head of the European Commission adds to momentum behind carbon emission reduction appetite in the EU. She promised a “European Green deal within the first 100 days of its mandate”. Objective: to make the European Union “the first carbon-neutral continent by 2050”. She confirmed her support for a CO2 emissions reduction target of 50-55% in 2030 compared to the 40% currently agreed, and she is considering a carbon tax at the borders, a proposal supported by France since 2009 but fiercely rejected by Germany whose industry is a major exporter. The new President also mentioned her willingness to extend the European carbon market (the EU-ETS) to construction, road transport and maritime transport sectors.