Energy

Solar twine holds creaking Texas grid together

19 Jul 2022

Power in the Lone Star state has held up, despite record demand and past blackouts. Regulatory actions, like forcing plants to stay online, help, but they carry some costs and risks. The rapid growth of solar offers more durable aid, if not a solution.

Capital Calls: Hasbro’s inflation transformation

19 Jul 2022

Concise views on global finance: The Monopoly maker is scrambling to offset input cost increases and a stronger dollar – but while these pressures might be temporary, increased prices to consumers will last.

Putin gas assault is a survivable test of EU unity

19 Jul 2022

Moscow’s key pipeline to Germany is offline for repairs, stoking fears Russia may cut off all its gas for good. That would mean soaring energy costs and a big economic contraction. But the worst outcome, where Germans hoard gas and splinter the European Union, looks less likely.

ESG is more of a muddle than a fiddle

19 Jul 2022

Environmental, social and governance investing is under the spotlight. In this episode of The Exchange podcast, Bridgewater’s sustainable finance gurus Karen Karniol-Tambour and Carsten Stendevad explain how ESG’s main problem is a lack of clarity over its goals.

Capital Calls: Deal gamblers miss 2020’s lesson

14 Jul 2022

Concise views on global finance: Hedge fund giant Millennium has closed a group that bets on mergers. As similarly painful times in 2020 showed, the problem isn’t returns, it’s bailing on bets too soon.

Guest view: A platform for climate collaboration

14 Jul 2022

Finance ministers and central bankers face inflation and stagnating growth. The climate crisis could dwarf these hardships. If structured well, G20 Country Platforms can help to unlock private capital to meet the challenge, writes United Nations climate envoy Mark Carney.

Finland’s Uniper hit best seen as defence spending

12 Jul 2022

Helsinki wants Berlin to rescue the ailing German energy group, but limit the hit to Finnish owner Fortum. Germany doesn’t agree. Finns would be better off seeing any dilution from a forthcoming capital hike as part of the cost of de-Russifying. Like the cost of joining NATO.

France Inc could turn a profit from EDF takeover

7 Jul 2022

President Macron’s administration may have to fork out 7 bln euros for full control of the energy giant. But spinning off its renewable arm could recoup that cash. And the nuclear branch’s long-term investment needs and associated risks are more suited to public ownership.

Uniper investors head for bailout they don’t merit

5 Jul 2022

The 4 bln euro German utility’s value has been smashed by its need to expensively replace Russian gas. Given Berlin is mulling a way to spread this cost, Uniper shares may yet rebound. The outcome may wind up being more generous than its main Finnish shareholder deserves.

Gazprom investors lack Rosneft’s Qatari airbag

1 Jul 2022

Moscow blocked the $93 bln gas giant’s 2021 dividend, but approved that of its $73 bln oil peer. In general the Kremlin, which is replacing its own Gazprom payout with a tax, isn’t fussed about riling Western investors. Doha’s Rosneft stake makes the driller a rare exception.

Capital Calls: Kohl’s future, Aerojet fight

1 Jul 2022

Concise views on global finance: The U.S. retailer walked away from a deal with Franchise Group, leaving it to weather a potential recession alone. Meanwhile, Aerojet CEO's victory against her executive chairman culminates in a board mess.

Robinhood’s reversal, Russian oil cap

30 Jun 2022

The digital brokerage is worth less than a quarter of its $32 bln IPO value. In this Viewsroom podcast, Breakingviews columnists argue that its $7 bln cash pile and ample user base make it an attractive target. Also, Western leaders’ plan to restrict funds to Moscow may backfire.

Uniper woes could force reality check on Berlin

30 Jun 2022

The German utility needs state support after Russia cut gas supplies, forcing it to buy more expensive fuel instead. A better alternative would be for the regulator to allow Uniper to pass the cost on to consumers, dampening demand. The risk of open-ended bailouts helps its case.

Saving energy now is an EU no-brainer

28 Jun 2022

The bloc has hiked LNG imports by 50% to replenish storages and cut its Russian gas dependency. But if Moscow turns off the taps, Germany could sink into recession. All the more reason to kick off energy-saving measures this summer and try to curb gas prices by cutting demand.

G7’s Russia cap could send oil prices up, not down

28 Jun 2022

The developed nations club wants to cut Moscow’s revenue by curbing crude export prices. To work, a cap needs to be global in scope, air-tight to avoid sanctions evasion, and have Russian acceptance of the forced discount. Without these it may mean less supply, and higher prices.

Capital Calls: Russian default, Inflation and debt

27 Jun 2022

Concise views on global finance: Moscow defaulted on its foreign debt for the first time in over 100 years, leaving bondholders in limbo; the Bank for International Settlements wants rates raised “quickly and decisively”, but is also worried about higher borrowing costs.

Germany’s gas action plan pulls its punches

24 Jun 2022

As Gazprom restricts supplies, Berlin is switching coal power plants back on and squabbling over nuclear energy. But it’s still shielding Germans from high prices. A better ploy would be to use fiscal buffers to protect poorer citizens, thus incentivising everyone to use less.

Capital Calls: Bank stress tests, Japan inflation

24 Jun 2022

Concise views on global finance: U.S. lenders passed the latest Federal Reserve capital exams, but they’re bound to be more stressful next time; the country’s consumer prices rose 2.1% in May, intensifying a standoff between the central bank and bond investors.

Aussie energy crisis demands both carrot and stick

23 Jun 2022

Electricity trading restarted after a week-long hiatus. Canberra wants to pay generators to guarantee supply from 2025. Until then, outages will linger. A windfall tax, or the threat of one, on coal miners and gas drillers like Exxon Mobil and Santos could spark short-term fixes.

Green investors need to get their hands dirty

22 Jun 2022

Most money managers fight climate change by shunning stocks of polluting companies. By contrast, so-called transition funds target dirtier assets to clean them up. Though the approach brings risks, it could also deploy trillions of dollars of green capital in a smarter way.