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- Investment opportunity: water and water-related technologies.
On the stock market, water is a source of opportunities that today generates $1.4 trillion in annual revenue, with an increase of 3% to 5% per year. Water and related technologies refer to the various tools, systems, and innovations used in managing, treating, and conserving water resources. This field encompasses a wide range of technologies and practices designed to ensure the availability and quality of clean water for various purposes such as drinking, irrigation, industrial use, and environmental preservation. Some key examples of water and related technologies include water treatment systems, desalination plants, water purification methods, wastewater treatment processes, rainwater harvesting techniques, water recycling systems, and smart water management systems. Water demand is increasing Following demographic pressure (in 2050, there will be 9 billion people on earth), demand is increasing, and it will quickly become exponential. The water market is growing continuously, from 3 to 5% per year. For a simple reason: demand is increasing while the amount of water on earth remains the same. Indeed, directly usable water is rare, only 0.25% of the water on earth. Agriculture, industry and consumers are always asking for more. The population is growing and consumption per person is also increasing (it has doubled in 100 years). Even artificial intelligence uses water to function. At Microsoft, artificial intelligence has caused a 34% increase in water consumption in one year. Limited offer: the total volume of water is limited. Despite all the existing infrastructures, 25% of the population still does not have access to drinking water. Seleument 0.25% of the water present on earth is directly usable by man, to increase this volume, it will be necessary to increase in quality and quantity the capacity of water transformation (electrolysis seawater etc...). Climate change will further exacerbate this imbalance. In the UK, to cope with future droughts, daily capacity will need to increase by 2.7 billion litres by 2050. How to invest in water on the stock market. You can invest in water through distribution, technology and environmental services Water distributors such as: Severn Trent, Pennon, American Water Work, Guandong Investment (China). These companies have stable business models based on long-term concession contracts, offering high visibility. Invest in water transformation technologies and associated scientific research. These technologies play a crucial role in addressing water scarcity, pollution, and ineffective water management practices. They aim to improve water access and quality, reduce wastage, and promote sustainable use of this precious resource. Advancements in water technologies have also led to the development of innovative and efficient solutions for water conservation, such as efficient irrigation systems, leak detection and prevention methods, and monitoring tools for water quality. In addition to technological advancements, water and related technologies also involve research and development efforts to.
- Kazakhstan: Petroleum products will not be exported for four months.
The ban applies to gasoline, diesel and other petroleum products, except lubricants Oil products will not be exported for four months, with the exception of lubricants. With this export ban, the country aims to protect its own domestic energy supply and to ensure that the citizens of Kazakhstan are not deprived of energy. The statement issued on 8 February by the Kazakh State Revenue Committee said that the order would come into force ten calendar days after its announcement. A similar ban was previously put in place in November 2021 and withdrawn on 21 May 2022 as the country faced a fuel shortage. Landlocked Kazakhstan is the world's ninth largest exporter of crude oil and holds three percent of the world's total oil reserves. Kazakhstan does not have a pipeline to export its gas to the EU. The Russian port of Novorossiysk on the Black Sea is the main route for oil exports. Kazakhstan and Europe With 70% of Kazakhstan's oil exports going to Europe, and with few other resources, the country relies heavily on this financial input. "The country entered the global oil market in 1993, after the country's government and Chevron agreed to create a giant oil production company, Tengizchevroil, to produce oil in two large fields near the Caspian Sea. In 1997, Kazakhstan signed a production sharing agreement with seven international companies, including Agip, British Gas, BP, Mobil, Shell, Statoil and Total". The ban in Kazakhstan came days after the EU embargo on Russian fuel imports and price caps on diesel and other products came into effect. On 5 February, the G7+ coalition and all EU Member States agreed to cap the price of Russian crude oil transported by sea. The embargo was accompanied by a price cap on deliveries to third countries, agreed with the G7 in the same way that the EU and G7 coordinated the price cap on Russian crude last year. Sanctions on Russian oil. So far, two price ceilings have been established for Russian oil products: one for "premium-to-crude" oil products such as diesel, paraffin and gasoline, and one for "discount-to-crude" oil products such as fuel oil and naptha. The first price cap was set at $100 per barrel, while the second was set at $45 per barrel. Under the agreement, EU and G7 countries will prohibit banks from financing the purchase and sale of Russian oil, insurance companies from insuring shipments and ports from unloading oil carried by tankers if it is traded at a price higher than that set by the European Union. The EU price cap has been strongly criticised by Russia. In early February, Moscow imposed a ban on oil sales to states and entities that support the Russian oil price cap. With the exception of situations requiring special presidential approval, the ban will be in force for five months. The measure also prohibits the purchase of raw materials from Russia, even through intermediate countries or supply chains.
- Discovery of a gigantic Lithium deposit in India
The country could become a major player in the global battery production market. A market that is expected to expand considerably in the coming years, particularly with the electrification of transport. India has discovered a lithium deposit estimated at 5.9 million tons in the Jammu and Kashmir region, representing 5.7% of the world's lithium reserves. In 2018, lithium reserves were estimated at around 14 million tons worldwide. The Indian discovery increases these by over 40%. It should be noted that the precise nature of the subsoil is not well known around the world. A more recent American study dating from 2019 announced a global lithium deposit of 80 million tons, in this case, the Indian discovery represents about 10% of the total already known. India has been entirely dependent on imports for its lithium supply. This discovery will change many things for the country. The country will also be able to compete directly with the major lithium mining countries Australia, Chile and China. By way of comparison, the largest lithium deposit in the world is in Chile, with a resource of 9.2 million tons. This figure is not far off the 5.9 million tons of lithium found in India. Lithium is an essential element in the manufacture of batteries used in smartphones and other electric cars, and is also used in the manufacture of solar energy systems. The discovery will help India accelerate its green transition away from fossil fuels. It is often said that electric cars are not a solution in the fight against global warming. One of the reasons given is the high lithium content. Each battery contains several kilograms of this chemical element. Some experts fear that the rush for this white gold will create tensions and shortages, as supply is lower than demand. The world's largest lithium producers in 2020: Bolivia contained about 21 million tons of lithium, compared to 17 million for Argentina, 9 million for Chile, 6.8 million for the US, 6.3 million for Australia and 4.5 million for China. Polluting extraction of Lithium. Another problem with lithium is its polluting extraction, which is not free of pollution. It is a complicated process that requires extensive infrastructure and the mobilisation of various products. Moreover, lithium batteries at the end of their life become waste and are sometimes disposed of in the environment. But this could change in the future, and scientists are working to create lithium batteries that are recyclable. The European Union is currently working to make the lithium manufacturing process more responsible, both by using electric machines in the mines and by using new techniques such as geothermal energy, which is being tested in Europe. In any case, the whole life cycle of the electric car is "cleaner" than that of the combustion car, whether diesel or petrol. Lithium extraction is also much less polluting than oil extraction. However, measures to limit the environmental impact will have to be taken as the electrification of transport will grow considerably in the coming years, and this on a global level. In other words, the demand for lithium batteries will explode and it is preferable that a framework be put in place. The electric car can do without lithium. It should be noted that in the medium term, the electric car will be able to do without lithium in favour of sodium, as is the case with the Chinese battery giant CATL, which is responsible for the battery that allows electric cars to travel 1,000 km, and which is preparing the first sodium battery for 2023.
- Weekly Oil Dashboard: February 06, 2023.
Brent down ahead of embargo on Russian refined oil products Crude oil prices fell sharply last week, ending the week below 80 $/b for Brent and 74 $/b for WTI. While the embargo on Russian refined oil products exported by sea came into effect on Sunday, the crude oil market remains bearish, with market fundamentals showing a global oversupply relative to demand that is slow to recover. On a weekly average, Brent and WTI are down by more than 4.5% to $82.9/bbl and $76.5/bbl respectively . The consensus of economists surveyed by Bloomberg as of 3 February is slightly higher with a median Brent price in 2023 of $87.8/b . Several financial institutions (Fitch, Goldman Sachs, Morgan Stanley) are forecasting a tightening of the oil market in the second However, several financial institutions (Fitch, Goldman Sachs, Morgan Stanley) expect the oil market to tighten in the second half of the year, which could push Brent above $100/b by the end of the year. Online crude oil price: Brent and WTI market Embargo on Russian oil products. More impactful than the Russian oil embargo? After the embargo on coal in August 2022 and on crude oil at the beginning of December 2022, the countries of the European Union have decided to stop importing refined petroleum products (diesel, petrol, naphtha, paraffin, fuel oil, etc.) from Russia as of 5 February. On the same principle as for crude oil, the G7 countries also agreed to set a ceiling price above which the provision of technical assistance, brokerage services and insurance for the maritime transport of these products to third countries is prohibited. For light products, such as diesel, paraffin and gasoline, the ceiling was set at $100/bbl. For heavier oil products such as fuel oil the cap is $45/bbl. According to Argus, the price of Russian diesel is currently trading below this ceiling ($73/bbl Black Sea fob and $80/bbl Baltic fob), with the price of diesel in the US at $45/bbl. According to Argus, Russian diesel prices are currently trading below this ceiling ($73/bbl Black Sea fob and $80/bbl Baltic fob), i.e. $30-40/bbl below the price of European diesel. USA: Crude oil inventories rise again - Rig Count falls Europe: high stocks, falling prices View our full Crude Oil Market Report - Week of 23/01/2023.
- Weekly Oil Dashboard: January 30, 2023.
China reopens: IEA raises global oil demand growth forecast to +1.9 mb/d Crude oil prices were up last week. Despite a difficult economic backdrop with an increased risk of global recession, the prospect of a significant increase in Chinese oil demand following the easing of its Covid policy and the implementation of an embargo on Russian oil products in early February are raising fears of further oil supply tensions. On a weekly average, Brent and WTI are up by more than 4% to $85.8/b and $80.3/b respectively . The consensus of economists surveyed by Bloomberg on 20 January is for a lower median Brent price in 2023 of $87.5/b, but some institutions (including Goldman Sachs) are forecasting a bullish phase in crude oil prices around $110/b, considering that chronic underinvestment in the upstream oil industry coupled with the Russian oil embargo will not be able to meet the increase in global oil demand. Online crude oil price: Brent and WTI market Chinese oil demand drives global demand For the main agencies (IEA, EIA, OPEC), the driver of global GDP growth and oil demand in 2023 will be the pace of recovery in Chinese demand - a variable, however, surrounded by considerable uncertainty due to the evolving health situation. In its latest report, the IEA estimates that global oil demand could increase by +1.9 mb/d to 101.7 mb/d in 2023. Almost half of this increase could come from China, with demand rising by +0.9 mb/d to 15.8 mb/d. Given the economic crisis, oil demand growth in OECD countries is not expected to exceed 0.5 mb/d (from 1.1 mb/d in 2022) to 55.3 mb/d In China, it is in the transport sector that we are beginning to see this recovery with rising mobility indices in major cities and an increase in domestic flights. The government has also sharply increased oil import and export quotas, prompting refiners to restart their operations. This has resulted in an increase in crude imports, mainly from the Middle East (Iran and Saudi Arabia), with imports from Russia remaining stable at around 2.0 mb/d. On the other hand, according to several sources (Vortexa and Kpler), Iranian exports to China have increased sharply to 1.3 mb/d compared to 0.8 mb/d last September, as the United States seems to be less concerned about the strict application of the embargo on Iranian oil in the current context of global energy crisis. View our full Crude Oil Market Report - Week of 23/01/2023.
- Poland: Construction between Warsaw and Łodz of the $8bn air-land transport centre.
Foster + Partners and Buro Happold to design Poland's $8 billion air-rail transit hub. The developer of the $8 billion CPK air-road-rail transit hub has chosen British architect Foster + Partners and consulting engineer Buro Happold as the main contractors for the terminal, rail station and public transport interchange. Foster's design includes a landside interchange plaza, filled with natural light and lush greenery. This plaza connects the platform's three modes of transport: air, rail and road. Grant Booker, studio leader at Foster, said the aim was to create "a model for the future of fully integrated transport design". The selection process The company set up to develop an $8bn transport hub between Warsaw and Łodz in Poland had invited tenders for consultants to oversee the project's design documentation. Centralny Port Komunikacyjny (CPK) was looking for a company that will ensure that the design work carried out on the Solidarity Transport Hub by the lead architect and civil engineer is technically accurate and complete. The tender will be the fifth issued by KPC. Previous competitions have been for the lead architect, airport infrastructure designer, lead civil engineer and support infrastructure engineer. Six firms submitted designs for the airport: Pascall + Watson, Zaha Hadid Architects, Foster + Parners, Grimshaw and Chapman Taylor from the UK, and Kohn Pedersen Fox from the US. The CPK, which stands for "Centralny Port Komunikacyjny", or solidarity transport hub, will be built between Warsaw and Łodz. The hub will include an international airport, a 2,000 km network of mainly high-speed rail lines and motorways. There will also be an airport city, with facilities for trade fairs and conferences. It will connect air passengers to a 2,000 km network of mostly high-speed railways and motorways. There will also be an airport city, including trade fair and conference facilities. A world super league The airport will be located in Baranow County, about 40 km west of Warsaw. Construction will start next year and is expected to be completed in 2027. It will have two runways and an annual capacity of 40 million passengers. It will later join the world super league of four-runway airports with a capacity of 100 million passengers. The high-speed rail part will include a line between Warsaw and Łodz and another to Frankfurt-am-Oder. When the platform is completed, CPK hopes it will allow passengers and freight to reach Kraków, Wrocław, Poznan and Gdansk in less than two hours. It adds that the International Air Transport Association predicts that by 2060 Solidarity Airport will attract around 850 million passengers and more than 35 million tonnes of air cargo to Poland. The value of the design contract is €150 million. Foster + Partners' bid was selected from a shortlist of candidates including Zaha Hadid Architects, WSP, Dar Al-Handasah, Perkins & Will and Kohn Pedersen Fox. KPC wanted the design to stipulate a modular construction to make the facility efficient to build and scalable. When the first phase is completed in 2028, passenger throughput will be 40 million, rising to 65 million by 2060.
- United Kingdom: After 44 days, prime Minister Lizz Truss resigns
UK Prime Minister Liz Truss resigns after failed budget and market turmoil Liz Truss is resigning as UK Prime Minister. She announced a ballot to succeed her "within the next week". She had been in the post for less than two months. It was the backtracking on tax reform that brought her down. The British Prime Minister Liz Truss announced her resignation on Thursday after just six weeks in office, which resembled a descent into hell, triggering a new internal election within the Conservative Party. "The situation is such that I cannot fulfil the mandate on which I was elected by the Conservative Party," Truss, who becomes the shortest-serving head of government in modern UK history, said outside 10 Downing Street. She said a new internal majority vote would be held "within the next week" to replace her. The leader of the British opposition, Labour's Keir Starmer, has called directly for a general election "now", after the announcement of the resignation of Prime Minister Liz Truss. The Labour leader's new call comes as Liz Truss announced that an internal Conservative party ballot would be held to appoint her successor "by the end of next week".
- Weekly Oil Dashboard: October 17, 2022.
IMF's gloomy forecast for the world economy reverses the upward trend in crude oil prices crude oil prices. After the sharp rise in crude oil prices in early October, following OPEC+'s decision to cut production by 2 mb/d, the trend reversed last week with the release of the IMF's World Economic Outlook and the IEA's monthly report on the oil market. In one week, prices lost almost $5/b. At the close of trading last Friday, Brent crude oil on the London futures market was trading at $91.6/b and WTI fell back below $90/b to $85.6/b. On a weekly average basis, Brent gained $0.6/b (+0.6%) to $93.8/b and WTI +$0.7/b (+0.8%) to $88.5/b. The consensus of economists surveyed by Bloomberg as of 14 October is stable with a median Brent price in 2023 at $94.6/b. Online crude oil price: Brent and WTI market IMF paints a bleak picture of the global economy In its latest report (World Economic Outlook) published last week, the IMF paints a bleak picture of the global economy, warning that "we are entering a new danger zone". of the world economy, warning that "we are entering a new danger zone". Record inflation (+8.8% in 2022), tighter financial conditions (rising interest rates and the dollar), the war in Ukraine and the persistence of the Ukraine and the persistence of the Covid-19 pandemic are the main factors that explain the slowdown in global growth to 3.2% in 2022. growth to 3.2% in 2022 and 2.7% in 2023, As a reminder, last April, the IMF's growth outlook was 3.2% in 2022 and 2.7% in 2023, 3.6% in 2022 and 2023. View our full Crude Oil Market Report - Week of 11/10/2022 - due out this 17/10/2022.
- Germany turns to liquefied gas: 25 billion cubic metres expected by 2023.
In Wilhelmshaven, on the North Sea coast, Germany is building its first liquefied gas terminal. This platform, which will be operational by this winter, will be able to supply 20% of the Russian gas imports to Germany. LNG terminals allow the regasification of natural gas imported by sea, which has first been liquefied to make it more transportable. They consist of an offshore platform connected by pipes to the onshore gas network. Berlin has also made three billion euros available for leasing FSRU vessels to equip its terminals, which store and regasify liquid gas. This year, the German federal government has urgently re-launched five projects to compensate for the end of Russian gas deliveries. For years, Germany has mainly imported natural gas from Russia via the Nord Stream 1 & 2 pipelines. This cheap and continuous supply has resulted in Berlin's vigilance and pragmatism not being able to invest in the construction of liquefied gas terminals and large storage capacities for years. From 2023 onwards, the whole package is to deliver 25 billion cubic metres per year, half the capacity of the Nord Stream pipeline. A regasification terminal is being built, which will enable Germany to diversify its sources of supply. The country passed a law in the spring that considerably accelerated the procedures for the rapid opening of the terminals and the construction is progressing rapidly. The terminal should therefore be completed "as early as this winter", Holger Kreetz, chief operating officer of the German energy group Uniper, which is managing the project, told AFP. This extraordinary speed is a sign that the government considers this subject a priority: "Normally, we carry out a project like this in five or six years," added Mr Kreetz. The German pragmatism is reflected in this project, which is to be converted to green hydrogen by 2030, a clean technology in which Berlin wants to become the champion in the coming decades.
- Production of cables for energy transfer between the UK and Germany begins
Italian company Prysmian Group has begun manufacturing some 725km of submarine cables for the €2.8bn 'NeuConnect' interconnector, which will create the first direct link between the UK and German energy markets and allow the two countries to export surplus energy from wind and other renewable sources with up to 1.4GW of surplus electricity in both directions between the two countries, enough to power up to 1.5 million homes. Miguel Berger, German Ambassador to the UK, said: "As a champion of offshore wind, the UK is a crucial partner for us in pursuing our common goals. NeuConnect will enable our energy networks to share excess power - ensuring that renewable energy is not wasted." It will link the Isle of Grain in Kent, England, to the Wilhelmshaven area of Germany, using high voltage direct current (HVDC) submarine cables laid in British, Dutch and German waters. "When live, NeuConnect will open up new opportunities for the UK to export clean, cheaper renewable energy and reduce our exposure to the volatility of global fossil fuel prices." Construction work on the link is expected to begin this year and be completed in 2028. In April this year, NeuConnect appointed Siemens Energy to design and build converter stations in the UK and Germany. The scheme is privately financed, with more than 20 international lenders reaching financial close on the deal in July. The investors are led by France's Meridiam, Germany's Allianz Capital Partners and Japan's Kansai Electric Power. Project and commercial management will be provided by the consultant Arup and the engineering company Fichtner.
- Meta's metaverse, one year after its launch, remains promising.
"The future is not so far away," Mark Zuckerberg, the founder of the Californian group, said on Tuesday at a conference on the company's progress in building the metaverse, which is seen as the future of the internet. In October 2021, the "Meta" group launched the metaverse, a new technology in which it has already invested some 10 billion dollars. Admittedly, metavers has not yet been as successful as one might have expected, perhaps due to the limited functionality of its launch. This could change with new equipment such as the virtual reality (VR) headset -- the Quest Pro, a $1,500 tool for professionals -- but also many other gateways, via computers and smartphones. Avatars are coming to Instagram, and Meta is preparing bridges to Teams (Microsoft's collaboration software) and Peacock (NBCUniversal's video platform). By the end of 2021, more than 10 million Quest 2 headsets had been sold worldwide and more than $1.5 billion on the platform, and about a third of the 400 available titles have exceeded $1 million in sales. "You need to be able to reach your friends in the metaverse wherever you are," said chief technology officer Andrew Bosworth. "We want everyone to be able to have the most immersive experience possible, but it's going to take a while before there are enough headsets." As virtual reality improves, so do the apps, with the design getting closer and closer to the real thing. On the Quest Pro, internal cameras reproduce the user's facial expressions on the avatar's face. The metaverse as an advertising platform: Horizon Worlds, Meta's platform for VR creation and social interaction, is struggling to convince. Despite the launch difficulties, we believe that metavers will gradually take hold as the smartphone is certain to be replaced by more intuitive methods such as VR, augmented reality or voice recognition. But Meta is running out of steam. The group is facing bad economic times and competition from the ultra-popular TikTok, among others. And the other tech giants are also entering the metaverse. The market is hoping that Apple will release its first headset next year. "The metaverse is going to come as a surprise," assured Mark Rabkin, Meta's vice president of VR. "It's going to feel like it's a long way off, and then there are going to be compelling use cases, pockets of creators, sections of the population that will spend more time in it.
- Wall Street's rollercoaster ride, a prelude to a stock market crash?
Some investors say that recent market swings herald a general decline in stocks: the recent stock market rally on 14/10/2022 is just a "swan song" before a massive sell-off in stocks. When the breakout occurs. The most volatile assets, economic tensions and dysfunction in the UK are raising red flags. Fears that markets are close to breaking down are gaining ground on Wall Street and among influential investors and experts. Signs of stress in the system are accumulating: jagged asset movements, economic instability, the reluctance of banks such as Deutsche Bank and Credit Suisse, and the crisis in the UK has shown that government bonds and pensions are no longer safe havens. "Volatile assets, economic difficulties and signs of distress at major banks are fuelling fears of market collapse and disruption to the global financial system. Market strategists point to the Federal Reserve as a key driver of the current chaos. The US central bank raised interest rates from near zero in March to a range of 3% to 3.25% in an effort to calm historic inflation". A stock market crash can also be an opportunity, so it's time to get advice. However, the rate hikes have driven down equities, pushed up bond yields and pushed up the US dollar. The risk of a global economic slowdown has in turn increased, experts say. Many strategists question the Federal Reserve's strategy of fighting inflation by dramatically and rapidly raising interest rates. This has pushed bond yields and the dollar to 20-year highs, causing economic stresses that are spilling over into the markets. There are also signs of distress in the financial services sector with credit default swaps from monetary central banks doubling and even tripling in Europe. Tensions in the financial system have begun to show, first with the LDI crisis in the UK. There is already a lack of liquidity in many markets. Some experts believe that the first signs will be seen in the financial markets and ETFs. One of the indicators will be the decline in equity trading volumes in emerging markets where there is a substantial amount of dollar denominated debt, there is already a debt crisis there caused by the restrictive monetary policy in the US which is having a huge impact on the rest of the world, especially on emerging markets.