Pakistan -- Since rolling into Kabul in August and cementing control over the rest of Afghanistan, the Taliban have been in a frenetic round of diplomatic talks to end the country's economic and
U.S. and Western sanctions have destroyed the economy, which, combined with a drought, has plungeparts of the country into near starvation in the midst of winter. The Taliban have placed their hopes of salvation on Pakistan, which has supported the movement since its origin in the 1990s, and on China, which has long-standing ties to Pakistan and an ambiguous, transactional relationship with whichever government reigns in Kabul.
Beijing has so far refused to recognize the Taliban government, known as the Islamic Emirate of Afghanistan, though semi-secret negotiations continue via its embassy in Kabul. In August, following the Taliban takeover, the Chinese Foreign Ministry said it was "willing to continue to develop ... friendly and cooperative relations with Afghanistan." In September, China pledged a modest $31 million in food, medicine, COVID-19 vaccines and other aid. About half has been disbursed, according to the ministry of refugees in Kabul. Pakistan has pledged $28 million.
Bilal Karimi, a Taliban spokesman at the ministry of information, enigmatically described China's relations with the new Islamic Emirate as "mysterious," referring to the close but secretive discussions that are going on between Chinese officials and the IEA via Beijing's Kabul embassy, with recognition being one of the key issues.
Read more at:
Too big to fail: China eyes Afghanistan investment amid fears of state collapse - Nikkei Asia
Showing posts with label Investment. Show all posts
Showing posts with label Investment. Show all posts
1/11/22
9/6/21
France: Europe can no longer rely on US for protection aays French Finance Minister Bruno Le Maire
Europe has to become No. 3 super-power besides China and the United States. Let's open our eyes, we are facing threats and we cannot rely anymore on the protection of the United States," Le Maire told reporters during an annual business conference in Cernobbio on Lake Como on Saturday.
The French minister said Paris had decided to invest 1.7 billion euros ($2.02 billion) more in defence this year and would like to see other European countries to do the same.
The minister also called other EU member states to invest and to deepen their single market to achieve technological independence from big overseas companies and third countries.
Read more at: Europe can no longer rely on US for protection | The Daily Star
The French minister said Paris had decided to invest 1.7 billion euros ($2.02 billion) more in defence this year and would like to see other European countries to do the same.
The minister also called other EU member states to invest and to deepen their single market to achieve technological independence from big overseas companies and third countries.
Read more at: Europe can no longer rely on US for protection | The Daily Star
6/8/21
Bitcoin skids to two-week low, but technical analyst says the slump is not a ‘decisive breakdown’ — she’s watching the next two closes
Bitcoin was under fresh selling pressure Tuesday, dragging the world’s No. 1 cryptocurrency to lows not seen since late May. At least one technical analyst, though, says the slump doesn’t represent a decisive breakdown of the bitcoin uptrend unless and until the asset registers weaker closes today and tomorrow.
Read more at: Bitcoin skids to two-week low, but technical analyst says the slump is not a ‘decisive breakdown’ — she’s watching the next two closes - MarketWatch
Read more at: Bitcoin skids to two-week low, but technical analyst says the slump is not a ‘decisive breakdown’ — she’s watching the next two closes - MarketWatch
3/1/21
EU-China-USA relations: US to Scrutinize Beijing Commitments Under EU-China Investment Deal - by Nike Ching
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The United States is looking to scrutinize China's commitments under an investment deal that was signed in late December between the European Union and China, a senior State Department official told VOA Tuesday.
It comes as U.S. President Joe Biden’s administration is working closely with European allies to push back on what American officials describe as China's undermining activities to shared values and the rules based international order.
Read more at: US to Scrutinize Beijing Commitments Under EU-China Investment Deal | Voice of America - English
It comes as U.S. President Joe Biden’s administration is working closely with European allies to push back on what American officials describe as China's undermining activities to shared values and the rules based international order.
Read more at: US to Scrutinize Beijing Commitments Under EU-China Investment Deal | Voice of America - English
11/29/19
ESA: European Space Agency approves record budget | News | DW | 28.11.2019
The ESA is to invest €14.4 billion ($15.8 billion) in space exploration including a moon mission up to 2022. Germany is now the largest contributor to the agency's biggest ever budget.
Read more at:
https://www.dw.com/en/european-space-agency-approves-record-budget/a-51457014
Read more at:
https://www.dw.com/en/european-space-agency-approves-record-budget/a-51457014
9/27/19
EU-Japan Relations: EU and Japan join forces to counter US and Chinese initiatives – by Jorge Valero
The EU and Japan signed on Friday (27 September) a holistic
partnership to promote investment projects based on rules-based and
sustainable principles, and to counter the risks posed by the US and
China.
The EU-Japan partnership on sustainable connectivity – a term covering an array of trade, economic, transport and environmental fields – and quality infrastructure was presented to other Asian partners during the EU-Asia connectivity forum held on Friday.
Both partners agreed to “promote free, open, rules-based, fair, non- discriminatory and predictable regional and international trade and investment, transparent procurement practices, the ensuring of debt sustainability and the high standards of economic, fiscal, financial, social and environmental sustainability,” the text reads.
The deal will cover all dimensions of connectivity including digital, transport, energy and people-to-people exchanges.
Read more: EU and Japan join forces to counter US and Chinese initiatives – EURACTIV.com
The EU-Japan partnership on sustainable connectivity – a term covering an array of trade, economic, transport and environmental fields – and quality infrastructure was presented to other Asian partners during the EU-Asia connectivity forum held on Friday.
Both partners agreed to “promote free, open, rules-based, fair, non- discriminatory and predictable regional and international trade and investment, transparent procurement practices, the ensuring of debt sustainability and the high standards of economic, fiscal, financial, social and environmental sustainability,” the text reads.
The deal will cover all dimensions of connectivity including digital, transport, energy and people-to-people exchanges.
Read more: EU and Japan join forces to counter US and Chinese initiatives – EURACTIV.com
9/19/19
USA: Revealed: how US senators invest in firms they are supposed to regulate
Revealed: how US senators invest in firms they are supposed to regulate
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1/14/19
Biking: The Netherlands will pay people to ride bikes - by Andrea Lo
With 17 million residents and 23 million bicycles, the Netherlands already has more bikes than people. Now, it wants to get even more cyclists on the roads -- and will pay people to do it.
The Dutch government recently announced that it will invest $390 million (€345 million) in cycling infrastructure to get 200,000 more people commuting by bike in three years' time.
Fifteen routes will be developed into "cyclist freeways" (highways that cater to those on bikes), 25,000 bike parking spaces will be created and more than 60 bike storage facilities will be upgraded, according to the Ministry of Infrastructure and Water Management.
"My ambition is to ensure that people can easily get to work or school, or visit family and friends," says Stientje van Veldhoven, state secretary for that department, who is spearheading the project.
Read more at: The Netherlands will pay people to ride bikes | CNN Travel
The Dutch government recently announced that it will invest $390 million (€345 million) in cycling infrastructure to get 200,000 more people commuting by bike in three years' time.
Fifteen routes will be developed into "cyclist freeways" (highways that cater to those on bikes), 25,000 bike parking spaces will be created and more than 60 bike storage facilities will be upgraded, according to the Ministry of Infrastructure and Water Management.
"My ambition is to ensure that people can easily get to work or school, or visit family and friends," says Stientje van Veldhoven, state secretary for that department, who is spearheading the project.
Read more at: The Netherlands will pay people to ride bikes | CNN Travel
1/25/18
EU: More growth and jobs: EU invests €873 million in clean energy infrastructure
Europe's transition to a clean and modern economy is the goal of the Energy Union,
a priority of the Juncker Commission. It is now becoming the new
reality on the ground, and one important building block is adapting the
European infrastructure to the future energy needs. Properly
interconnected electricity lines and gas pipelines form the backbone of
an integrated European energy market anchored on the principle of
solidarity. Thus, supporting these 17 selected electricity and gas projects , signals Europe's willingness to upgrade and make
the European energy system more competitive that will ultimately
deliver cheaper and secure energy to all European consumers.
The EU funding for the chosen projects comes from the Connecting Europe Facility (CEF), the European support programme for trans-European infrastructure.
Commission Vice-President for Energy Union Maroš Šefčovič said: "Once more we demonstrate that cooperation and solidarity pays off and that the Energy Union is becoming a reality with tangible impact on the ground. These are important projects with major cross-border benefits and by implementing them we strengthen energy resilience of EU Member States. The Connecting Europe Facility has yet again shown tremendous added value in the modernisation of the European economy."
Commissioner for Climate Action and Energy Miguel Arias Cañete said: "The construction of the Biscay Gulf France-Spain interconnection marks an important step towards ending the isolation of the Iberian Peninsula from the rest of the European energy market. Only a fully interconnected market will improve Europe's security of supply, reducing the dependence of single suppliers and giving consumers more choice. An energy infrastructure which is fit for purpose is also essential for renewable energy sources to thrive and for delivering on the Paris Agreement on climate change."
For the complete EU Commission Press release, click here
The EU funding for the chosen projects comes from the Connecting Europe Facility (CEF), the European support programme for trans-European infrastructure.
Commission Vice-President for Energy Union Maroš Šefčovič said: "Once more we demonstrate that cooperation and solidarity pays off and that the Energy Union is becoming a reality with tangible impact on the ground. These are important projects with major cross-border benefits and by implementing them we strengthen energy resilience of EU Member States. The Connecting Europe Facility has yet again shown tremendous added value in the modernisation of the European economy."
Commissioner for Climate Action and Energy Miguel Arias Cañete said: "The construction of the Biscay Gulf France-Spain interconnection marks an important step towards ending the isolation of the Iberian Peninsula from the rest of the European energy market. Only a fully interconnected market will improve Europe's security of supply, reducing the dependence of single suppliers and giving consumers more choice. An energy infrastructure which is fit for purpose is also essential for renewable energy sources to thrive and for delivering on the Paris Agreement on climate change."
For the complete EU Commission Press release, click here
7/10/17
EU seeks to nudge Balkans into economic, transport cooperation – by Zoran Radosavljevic
The European Union will seek to give a new boost to the six EU hopefuls in the Western Balkans at a summit this week, by steering their talks on a common regional market and signing off on a number of transport and energy projects meant to attract investment to the region and boost its economy.
Leaders of Albania, Bosnia, Kosovo, Macedonia, Montenegro and Serbia will take part in the Western Balkans Summit in Trieste on Wednesday (12 July) together with their counterparts from Italy, Germany, France and the EU.
On top of transport, infrastructure and energy, a key objective of the talks is to flesh out a proposal for a common economic area.
However, it remains unclear how concrete the proposal will be, given the continuing political sensitivities in one of Europe’s poorest regions, where some critics and opinion makers have already balked at the idea of ‘recreating Yugoslavia’ – a country that disintegrated in blood in the 1990s.
Read more: EU seeks to nudge Balkans into economic, transport cooperation – EURACTIV.com
Leaders of Albania, Bosnia, Kosovo, Macedonia, Montenegro and Serbia will take part in the Western Balkans Summit in Trieste on Wednesday (12 July) together with their counterparts from Italy, Germany, France and the EU.
On top of transport, infrastructure and energy, a key objective of the talks is to flesh out a proposal for a common economic area.
However, it remains unclear how concrete the proposal will be, given the continuing political sensitivities in one of Europe’s poorest regions, where some critics and opinion makers have already balked at the idea of ‘recreating Yugoslavia’ – a country that disintegrated in blood in the 1990s.
Read more: EU seeks to nudge Balkans into economic, transport cooperation – EURACTIV.com
12/29/16
Automobile Industry: Panasonic to invest over $256-million in Tesla’s U.S. plant for solar cells
Panasonic Corp will invest more than 30 billion yen ($256-million) in a
New York production facility of Elon Musk’s Tesla Motors to make
photovoltaic (PV) cells and modules, deepening a partnership of the two
companies.
Panasonic to invest over $256-million in Tesla’s U.S. plant for solar cells - The Globe and Mail
Japan’s Panasonic, which has been
retreating from low-margin consumer electronics to focus more on
automotive components and other businesses targeting corporate clients,
will make the investment in Tesla’s factory in Buffalo, New York.
The U.S. electric car maker is making a
long-term purchase commitment from Panasonic as part of the deal,
besides providing factory buildings and infrastructure.
In
a joint statement on Tuesday, the two companies said they plan to start
production of PV modules in the summer of 2017 and increase to one
gigawatt of module production by 2019.
The
plan is part of the solar partnership that the two companies first
announced in October, but which did not disclose investment details.
Tesla
is working exclusively with longtime partner Panasonic to supply
batteries for its upcoming Model 3, the company’s first mass-market car.
Panasonic is also the exclusive supplier of batteries to Tesla’s Model S
and Model X.
3/17/16
US Inrastructure - U.S. mayors desperate to fix crumbling infrastructure but states, feds hold them back
The drinking water crisis in Flint, Michigan illustrates two urgent and
related challenges that are stressing many American cities. First,
critical infrastructure systems such as roads, bridges and water
networks are aging and underfunded. Second, cities are not getting the
support they need from higher levels of government to fix these
problems.
We are the authors of the 2015 Menino Survey of Mayors, conducted by the Boston University Initiative on Cities. In this survey we asked a nationally representative sample of mayors an open-ended question: which challenge, that they believe should be a primarily “state and/or federal issue,” most affects their cities. Almost half of the mayors homed in on crumbling infrastructure. Many said that higher levels of government were not providing their cities with enough money for infrastructure projects they believe their cities need.
These projects range from relatively mundane needs like repairing roads to more ambitious projects, such as building new mass transit, wastewater and stormwater systems. Addressing the 2015 U.S. Conference of Mayors last June, President Obama observed, “There’s not a mayor here who can’t reel off 10 infrastructure projects right now that you’d love to get funding for, and that would put people to work right away and improve your competitiveness, and help businesses move their products and help people get to their jobs.” Indeed, the American Society of Civil Engineers estimates that America will need US$3.6 trillion in infrastructure investments by 2020.
These concerns spotlight what mayors see as a bigger problem. In their view, federalism – the division (and sharing) of powers between different levels of government – is not working. In the survey, mayors consistently identified ways in which general government dysfunction, burdensome regulations and laws that preempt local autonomy cause problems for cities. As political scientist Jessica Trounstine has pointed out, Flint is an extreme example of some of these issues. State governments can hamper city governments in a variety of ways, most frequently by cutting funding and/or introducing legislation that reduces local autonomy.
Read more: U.S. mayors desperate to fix crumbling infrastructure but states, feds hold them back
We are the authors of the 2015 Menino Survey of Mayors, conducted by the Boston University Initiative on Cities. In this survey we asked a nationally representative sample of mayors an open-ended question: which challenge, that they believe should be a primarily “state and/or federal issue,” most affects their cities. Almost half of the mayors homed in on crumbling infrastructure. Many said that higher levels of government were not providing their cities with enough money for infrastructure projects they believe their cities need.
These projects range from relatively mundane needs like repairing roads to more ambitious projects, such as building new mass transit, wastewater and stormwater systems. Addressing the 2015 U.S. Conference of Mayors last June, President Obama observed, “There’s not a mayor here who can’t reel off 10 infrastructure projects right now that you’d love to get funding for, and that would put people to work right away and improve your competitiveness, and help businesses move their products and help people get to their jobs.” Indeed, the American Society of Civil Engineers estimates that America will need US$3.6 trillion in infrastructure investments by 2020.
These concerns spotlight what mayors see as a bigger problem. In their view, federalism – the division (and sharing) of powers between different levels of government – is not working. In the survey, mayors consistently identified ways in which general government dysfunction, burdensome regulations and laws that preempt local autonomy cause problems for cities. As political scientist Jessica Trounstine has pointed out, Flint is an extreme example of some of these issues. State governments can hamper city governments in a variety of ways, most frequently by cutting funding and/or introducing legislation that reduces local autonomy.
Read more: U.S. mayors desperate to fix crumbling infrastructure but states, feds hold them back
10/27/15
Investment Brokers: The Brokerage World Is Changing, Who Will Survive? - by Andre Cappon and Stephan Mignot,
Once upon a time, being a stockbroker was comfortable, genteel and lucrative.
In the “old world,” brokers, as members and owners, controlled the exchanges. Exchanges were run as quasi-non-profit clubs or utilities to support their members. Exchanges had monopoly on liquidity and brokers controlled access. By providing investors access to markets, brokers earned commissions and also received trading fee rebates from the exchange. A long time ago, brokerage commissions were even fixed (remember).
Brokers thus competed on the basis of service and relationships, rather than price.
The introduction of negotiated commissions in the U.S. in 1975 (eventually followed by most other markets in the world) marked the beginning of constantly increasing competition and challenges for brokers. In the last 10-15 years, this process accelerated.
Capital markets experienced a revolution driven by technology and radical change in market structure.
Electronic trading dramatically increased trading volumes and liquidity and slashed the cost of intermediation and broadened access to markets. Exchange demutualization led to a dilution of the status of exchange member.
Access to liquidity was “democratized”. Liquidity became fragmented among exchanges, alternative trading platforms, lit and dark pools and so on. Exchange “specialists” (market-makers) disappeared.
In many ways, brokers and exchanges now compete with each other: brokers may internalize order execution, they may use alternative exchanges or dark pools; established exchanges offer “direct market access” (DMA) and are occupying increasing space in the investment process, both pre-trade and post-trade.
The US and UK markets – New York, Chicago, London – are pretty much the “laboratory” for the securities industry worldwide. We shall draw on their experience to illustrate the evolution of the securities industry and extrapolate to other geographies.
The “sell-side” securities industry (i.e. the brokers), has been experiencing deteriorating economics, due to pricing pressures, increasingly stringent regulation, and changes in market structure.
Life has become very tough for brokers.
Read more: The Brokerage World Is Changing, Who Will Survive? - Forbes
In the “old world,” brokers, as members and owners, controlled the exchanges. Exchanges were run as quasi-non-profit clubs or utilities to support their members. Exchanges had monopoly on liquidity and brokers controlled access. By providing investors access to markets, brokers earned commissions and also received trading fee rebates from the exchange. A long time ago, brokerage commissions were even fixed (remember).
Brokers thus competed on the basis of service and relationships, rather than price.
The introduction of negotiated commissions in the U.S. in 1975 (eventually followed by most other markets in the world) marked the beginning of constantly increasing competition and challenges for brokers. In the last 10-15 years, this process accelerated.
Capital markets experienced a revolution driven by technology and radical change in market structure.
Electronic trading dramatically increased trading volumes and liquidity and slashed the cost of intermediation and broadened access to markets. Exchange demutualization led to a dilution of the status of exchange member.
Access to liquidity was “democratized”. Liquidity became fragmented among exchanges, alternative trading platforms, lit and dark pools and so on. Exchange “specialists” (market-makers) disappeared.
In many ways, brokers and exchanges now compete with each other: brokers may internalize order execution, they may use alternative exchanges or dark pools; established exchanges offer “direct market access” (DMA) and are occupying increasing space in the investment process, both pre-trade and post-trade.
The US and UK markets – New York, Chicago, London – are pretty much the “laboratory” for the securities industry worldwide. We shall draw on their experience to illustrate the evolution of the securities industry and extrapolate to other geographies.
The “sell-side” securities industry (i.e. the brokers), has been experiencing deteriorating economics, due to pricing pressures, increasingly stringent regulation, and changes in market structure.
Life has become very tough for brokers.
Read more: The Brokerage World Is Changing, Who Will Survive? - Forbes
2/27/14
Most Efficient Health Care Systems: Countries - Best (and Worst)
Study by Bloomberg shows: Among advanced economies, the U.S. spends the most on health care on a relative cost basis with the worst outcome
Read more: Most Efficient Health Care: Countries - Bloomberg Best (and Worst)
Read more: Most Efficient Health Care: Countries - Bloomberg Best (and Worst)
2/1/14
Investment: Business leaders declared 'China is no longer the world’s No. 1 place to invest; America is,' Obama says | PolitiFact
President Barack Obama made multiple claims about the improving U.S.
economy during his 2014 State of the Union address, touting the nation’s
resilience.
After making claims about jobs, energy and the deficit, Obama had this to say about international business:
"And for the first time in over a decade, business leaders around the world have declared that China is no longer the world’s No. 1 place to invest; America is."
It was one of only two times during the speech the president mentioned China, long considered the ascendant rival of the U.S., and the second-largest economy in the world. (The other mention was about using export partnerships to create jobs.) Considering the breakneck growth of China’s economy, the claim piqued our curiosity.
A White House spokesman said the comment referred to the 2013 A.T. Kearney Foreign Direct Investment Confidence Index, a survey of corporate executives from 302 companies in 28 countries that measured where companies are looking to make global investments. The top highlight: The United States took the No. 1 spot for the first time since 2001.
Read more: Business leaders declared 'China is no longer the world’s No. 1 place to invest; America is,' Obama says | PolitiFact
After making claims about jobs, energy and the deficit, Obama had this to say about international business:
"And for the first time in over a decade, business leaders around the world have declared that China is no longer the world’s No. 1 place to invest; America is."
It was one of only two times during the speech the president mentioned China, long considered the ascendant rival of the U.S., and the second-largest economy in the world. (The other mention was about using export partnerships to create jobs.) Considering the breakneck growth of China’s economy, the claim piqued our curiosity.
A White House spokesman said the comment referred to the 2013 A.T. Kearney Foreign Direct Investment Confidence Index, a survey of corporate executives from 302 companies in 28 countries that measured where companies are looking to make global investments. The top highlight: The United States took the No. 1 spot for the first time since 2001.
Read more: Business leaders declared 'China is no longer the world’s No. 1 place to invest; America is,' Obama says | PolitiFact
4/8/13
For Europeans Miami has it all - it's a gateway city, a technology center and a tourist destination "par excellence""
 |
| Miami has it all |
The government sector has joined with academia and industry to offer young technology entrepreneurs with advice, contact with investors and with industry leaders, plus free office space. “This is the center that connects technology, people, culture and logistics as well,” said Marcelo Ballona, a Brazilian who in 2005 created the web sales company Submarine and was also one of the founders of Yahoo Brazil.
Miami's geographic location not only allows direct daily flights to major Latin American capitals, major cities of the United States and Europe, but also houses a culture that mixes the Anglo and the Latino and makes Hispanics feel at home, and the institutional and legal security of a developed nation that facilitates doing business with greater predictability. These are only some of the advantages of south Florida and Miami highlighted by experts.
But not only science and technology makes Miami an interesting place to invest. It's great weather, beaches and all the important infrastructure needed for quality tourism also make it one of the best known and most famous tourist locations on earth.
The Pestana South Beach Art Deco Hotel opened just this morning (April 8) in Miami where the old Hotel Milejan used to be, becoming the first Portuguese-owned hotel to open in the States.
The property offers 97 rooms and suites throughout four historically preserved Art Deco buildings, a retro cafe and a pool bar set on a 1940’s inspired patio with an outdoor pool
Pestana picked South Beach for the location of its initial US property because of the area's existing reputation and popularity among its current clients in Europe and South America. “North America is a very attractive and strategic market for the Group Pestana. "This is our first investment in this market and Miami is a natural starting point, because to us Europeans it is a gateway for Europe and South America where our brand is quite strong,”said José Roquette, Pestana’s development director for the North American market.
Yes indeed, Miami is a "gem" of a city and will remain so for many years to come.
EU-Digest
2/13/13
EU and US to launch free-trade alliance talks
The European Union and the United States are set to begin negotiations on a free-trade alliance by the end of June, European Commission President Jose Manuel Barroso said on Wednesday, in what would one of the most ambitious deals ever attempted.
The United States and the European Union agreed on Wednesday to push for the launch by the end of June of talks to create a free trade alliance that could be a benchmark for global partners to follow.
A free trade deal would be the most ambitious ever attempted, encompassing half the world’s economic output and a third of global trade flows.
“These negotiations will set a standard, not only for our future bilateral trade and investment, including regulatory issues, but also for the development of global trade rules,” European Commission President Jose Manuel Barroso told a news conference.
Speaking after the release of a joint U.S./EU report recommending the start of talks, Barroso said the two were expected to launch negotiations in the first half of the year.
The report sees the EU’s economy gaining around 0.5 percent and the U.S. economy around 0.4 percent by 2027, with 86 billion euros ($115.80 billion) of added annual income for the former and 65 billion euros for the latter.
Read more: EU and US to launch free-trade alliance talks - BUSINESS - FRANCE 24
The United States and the European Union agreed on Wednesday to push for the launch by the end of June of talks to create a free trade alliance that could be a benchmark for global partners to follow.
A free trade deal would be the most ambitious ever attempted, encompassing half the world’s economic output and a third of global trade flows.
“These negotiations will set a standard, not only for our future bilateral trade and investment, including regulatory issues, but also for the development of global trade rules,” European Commission President Jose Manuel Barroso told a news conference.
Speaking after the release of a joint U.S./EU report recommending the start of talks, Barroso said the two were expected to launch negotiations in the first half of the year.
The report sees the EU’s economy gaining around 0.5 percent and the U.S. economy around 0.4 percent by 2027, with 86 billion euros ($115.80 billion) of added annual income for the former and 65 billion euros for the latter.
Read more: EU and US to launch free-trade alliance talks - BUSINESS - FRANCE 24
9/20/12
China loves a crisis - "in Europe ' - by Benjamin A Shobert
Wanting Chinese investment is one thing; needing it is another. As the euro-zone crisis has deepened, one of the counter-intuitive outcomes thus far has been the increased investment by Chinese companies and the central government into European assets. The Rhodium Group, a New York-based research firm that tracks outbound Chinese investment into North America and Europe, published a study this month that showed how significant this increased investment has been.
According to Rhodium, outbound foreign direct investment (OFDI) from China into Europe increased 10 times from 2004 to 2011, from US$1 billion in 2004 to $10 billion in 2011. Chinese OFDI into Europe tripled in the past 12 months, precisely when the euro-zone crisis was at what most hope was the apex of the region's financial uncertainty and potential economic risk. What explains this massive increase in Chinese OFDI, and how have Europeans greeted these investments? After all, many Europeans are no less skeptical about China than their American counterparts.
China's increased investment in Europe certainly owes much to the historically attractive valuations the euro-zone crisis has made possible. One example of this was Geely's 2010 purchase of distressed Swedish automaker Volvo for $1.8 billion. Considering Volvo had lost more than $2.5 billion the previous two years, it was one of many companies eager to find a Chinese investor with deeper pockets and longer-term aspirations to move up the value chain. Similar examples have already taken place in European automotive-parts manufacturers, as have Chinese acquisitions of European clean-tech and construction companies.
As the Rhodium report notes, valuation is not the only reason Chinese firms seek out investment opportunities in Europe. "Chinese investors have the same diverse motives for coming to Europe as other foreign investors do: to sell products in the world's largest single market, expand their global production chains, and tap into a rich base of technology, brands and human talent." Valuations in Europe may have expedited Chinese OFDI, but they do not single-handedly explain the massive increase of Beijing's investments into the euro zone.
Many Chinese firms also anticipate changes to European regulatory schemes that may seek to protect infant or distressed industries in Europe by establishing local content guidelines, ones impossible to get around as long as Chinese firms must export into the euro zone.
This year, the sovereign wealth fund the China Investment Corp announced that $30 billion had been set aside specifically for investments into troubled European assets. Officials outside China, such as Singapore's Lee Kuan Yew, have urged China to act aggressively to bolster the euro zone by purchasing European bonds, German ones specifically, in the hopes China can support one of its most important export economies. The thinking goes that if China invests in Europe - Germany specifically - enough to ensure that Germany's borrowing costs stay low, Berlin can act more aggressively to stabilize the euro zone.
One of the more shocking insights from the Rhodium Group's report is not only the massive increase (by three times) of Chinese OFDI into Europe between 2010 and 2011, but that in 2011 it was more than twice the size of China's investment into the United States (about $4.5 billion into the US, versus slightly less than $10 billion into the euro zone). Even more interesting, after five consecutive years of Chinese OFDI into the United States increasing, 2011 marks the first year in half a decade that it decreased.
US attitudes toward Chinese investment are in some ways more complicated than European attitudes about the same. This is not to say that European attitudes will forever remain benign. Rhodium's report notes that four problems could present themselves with China's massive increased investments in Europe: "large inward FDI presence could expose Europe to China's wild macroeconomic swings ... Chinese firms [could] ship newly acquired assets back to China ... China's firms [could] operate and invest more freely in Europe than their EU rivals can in China ... Chinese firms accustomed to lax regulations at home will bring poor labor, environmental and other practices to Europe, and EU governments will be too eager to attract jobs and investments to robustly hold them to account".
Yet if necessity forces European countries and businesses to continue seeking Chinese investment, these risks may seem trivial when compared with the larger problems of not having any accessible capital regardless of the source.
Asia Times Online :: China loves a crises
According to Rhodium, outbound foreign direct investment (OFDI) from China into Europe increased 10 times from 2004 to 2011, from US$1 billion in 2004 to $10 billion in 2011. Chinese OFDI into Europe tripled in the past 12 months, precisely when the euro-zone crisis was at what most hope was the apex of the region's financial uncertainty and potential economic risk. What explains this massive increase in Chinese OFDI, and how have Europeans greeted these investments? After all, many Europeans are no less skeptical about China than their American counterparts.
China's increased investment in Europe certainly owes much to the historically attractive valuations the euro-zone crisis has made possible. One example of this was Geely's 2010 purchase of distressed Swedish automaker Volvo for $1.8 billion. Considering Volvo had lost more than $2.5 billion the previous two years, it was one of many companies eager to find a Chinese investor with deeper pockets and longer-term aspirations to move up the value chain. Similar examples have already taken place in European automotive-parts manufacturers, as have Chinese acquisitions of European clean-tech and construction companies.
As the Rhodium report notes, valuation is not the only reason Chinese firms seek out investment opportunities in Europe. "Chinese investors have the same diverse motives for coming to Europe as other foreign investors do: to sell products in the world's largest single market, expand their global production chains, and tap into a rich base of technology, brands and human talent." Valuations in Europe may have expedited Chinese OFDI, but they do not single-handedly explain the massive increase of Beijing's investments into the euro zone.
Many Chinese firms also anticipate changes to European regulatory schemes that may seek to protect infant or distressed industries in Europe by establishing local content guidelines, ones impossible to get around as long as Chinese firms must export into the euro zone.
This year, the sovereign wealth fund the China Investment Corp announced that $30 billion had been set aside specifically for investments into troubled European assets. Officials outside China, such as Singapore's Lee Kuan Yew, have urged China to act aggressively to bolster the euro zone by purchasing European bonds, German ones specifically, in the hopes China can support one of its most important export economies. The thinking goes that if China invests in Europe - Germany specifically - enough to ensure that Germany's borrowing costs stay low, Berlin can act more aggressively to stabilize the euro zone.
One of the more shocking insights from the Rhodium Group's report is not only the massive increase (by three times) of Chinese OFDI into Europe between 2010 and 2011, but that in 2011 it was more than twice the size of China's investment into the United States (about $4.5 billion into the US, versus slightly less than $10 billion into the euro zone). Even more interesting, after five consecutive years of Chinese OFDI into the United States increasing, 2011 marks the first year in half a decade that it decreased.
US attitudes toward Chinese investment are in some ways more complicated than European attitudes about the same. This is not to say that European attitudes will forever remain benign. Rhodium's report notes that four problems could present themselves with China's massive increased investments in Europe: "large inward FDI presence could expose Europe to China's wild macroeconomic swings ... Chinese firms [could] ship newly acquired assets back to China ... China's firms [could] operate and invest more freely in Europe than their EU rivals can in China ... Chinese firms accustomed to lax regulations at home will bring poor labor, environmental and other practices to Europe, and EU governments will be too eager to attract jobs and investments to robustly hold them to account".
Yet if necessity forces European countries and businesses to continue seeking Chinese investment, these risks may seem trivial when compared with the larger problems of not having any accessible capital regardless of the source.
Asia Times Online :: China loves a crises
7/19/12
Europe a surprising bright spot for Canadian MandA
A recent tally of Canada’s MandA deals in the second quarter revealed some surprising results. Despite the barrage of news flooding in each day about the volatile European markets, that area of the world was a bright spot for deals involving at least one Canadian unit.
Europe proved to be the most popular place for buyers to invest in the second quarter, with acquisitions in the region accounting generating $15.1-billion of value, according to PwC – that’s the highest amount since before the financial crisis and more than $5-billion more than the first quarter of the year.
Couche-Tard’s bid for Statoil Fuel and Retail business in Scandinavia, for example, was bought as a base from which to grow the company’s Central and Eastern European business. During the second quarter, a total of 721 MandA announcements were made involving at least one Canadian company, and these were worth a total of $47.7-billion.
Read more: Europe a surprising bright spot for Canadian MandA - The Globe and Mail
Europe proved to be the most popular place for buyers to invest in the second quarter, with acquisitions in the region accounting generating $15.1-billion of value, according to PwC – that’s the highest amount since before the financial crisis and more than $5-billion more than the first quarter of the year.
Couche-Tard’s bid for Statoil Fuel and Retail business in Scandinavia, for example, was bought as a base from which to grow the company’s Central and Eastern European business. During the second quarter, a total of 721 MandA announcements were made involving at least one Canadian company, and these were worth a total of $47.7-billion.
Read more: Europe a surprising bright spot for Canadian MandA - The Globe and Mail
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