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Triple Crunch Log                                                                                                            

to windmills and is Europe's biggest listing since 2008, dropped around 4 percent debut despite a cut price offered to lure investors. Coal India, a similar sized offering, gained 40 percent in Mumbai on the same day. "Fundamentally, Coal India is a structural play on India's rising energy demand," said Binay Chandgothia, chief investment officer at Principal Global Investors in Hong Kong. Enel Green Power's parent company Enel has struggled to lure institutional investors for the sale of up to a third of its renewable unit against a backdrop of underperforming green energy stocks. It was forced to cut the price to 1.6 euros from a price guidance of 1.8-2.1 euros, meaning it would raise a maximum of around 2.5 billion euros ($3.5 billion).”1021

Backlash against Fed’s $600bn easing. FT: “The Fed’s initiative, in response to rising concern about the weakness of the US economy, has fuelled fears of a sharp drop in the dollar and a fresh flood of capital inflows into emerging markets. China, Brazil and Germany on Thursday criticised the Fed’s action a day earlier, and a string of east Asian central banks said they were preparing measures to defend their economies against large capital inflows.”1022

Rating agencies face new EU controls. Credit rating agencies could be obliged to give countries several days’ warning when issuing a sovereign debt rating and make their full research reports available to investors free of charge, as Brussels tries to introduce further curbs on the much criticised sector.1023

US energy policy after the Republican victories: Obama will have to look beyond emissions cuts. FT: “The election results have confirmed what has become increasingly clear over the past year: there is no chance of national curbs on greenhouse gas emissions passing through Congress for the foreseeable future.” President Obama will have to look at meansures promoting clean energy for energy security reasons.1024

European Commission offers $4.5bn prize for CCS and renewable projects. FT: “Under the scheme, bidders will pitch their ideas for new technologies to member governments, which will forward their recommendations to the European Investment Bank, which will then make its own recommendations to the Commission.”1025

5.11.10. Oil majors boost capex as they chase production barrels. FT: “Royal Dutch Shell’s announcement this morning that it is selling its holding in six oil and gas fields in the Gulf of Mexico is by no means a signal that the Anglo-Dutch major is about to reduce its presence in the area. The company is doing what most of its peers have been doing - selling non-core assets and focusing on higher-quality ones. At the same time, most of the supermajors are also increasing their capital expenditure budgets in an attempt to increase production growth - one of the themes to come out of the third quarter reporting season that just ended which saw Exxon and Shell report sharply higher profits, fuelled by strong crude prices and better refining margins.”1026

6.11.10.  Ethical investment grows to £20bn despite perception that ethics and profits don't always mix. Guardian: “Amid fears of a double-dip recession and looming spending cuts, there's one section of the financial market that continues to steam ahead – seemingly immune to the credit crunch. According to figures released by the Co-op Bank marking the 10th anniversary of their annual Ethical Consumer Report, the amount invested in ethical savings and investments has almost quadrupled in the past 10 years and now stands at just under £20bn. … But John Ditchfield, of fund advisers Barchester Green Investment, says ethical investment will never fundamentally change capitalism. "Ethical investors shouldn't think that they're part of a massive campaigning movement that's bringing about a wholesale change in the way capitalism operates. What ethical investment does is bring about a gradual shift towards better corporate social responsibility." … It still represents just 1% of the entire UK investment market. … Ethical investments have been performing well over the past 12 months, says Richard Eagling from moneyfacts.co.uk. "Over the last year the average ethical fund (13.58%) has slightly outperformed the average non-ethical fund (13.45%)," he says. "Although some ethical funds have consistently outperformed their non-ethical peers, the challenge is to convince mainstream investors of their benefits."1027

Panalpina admits that Shell bribes feature in their ‘culture of corruption’. Bloomberg: “Bribes paid on behalf of Royal Dutch Shell Plc’s Nigerian unit came from “a culture of corruption” that Swiss freight forwarder Panalpina World Transport Holding Ltd. admitted in a U.S. court yesterday. Panalpina, Shell and five oil services companies agreed to pay $236.5 million to settle probes by the U.S. Justice Department and Securities and Exchange Commission. Panalpina, which admitted to bribing government officials in hundreds of ways in seven nations, will pay $81.5 million. Shell will pay $48.1 million.”1028

7.11.10. China’s oil majors go into overdrive on M&A. FT: “China’s national oil companies have gone into overdrive this year, eclipsing their international rivals and accounting for one-fifth of all deal activity in the upstream oil and gas industry so far. … China has become the world’s largest consumer of oil. In the decade between 1999 and 2009, oil consumption in China increased by 93 per cent, according to analysts at Macquarie Research in a recent note.”1029

Ministers' meetings with nuclear lobby raise concerns of favouritism. The Department of Energy and Climate Change (Decc) has paid more than £8,000 this year for meetings outside government offices with the Nuclear Development Forum – set up to "secure the long-term future of nuclear power generation in the UK", and help make Britain "the best market in the world for companies to invest in nuclear power.”1030

Orders for wind turbines to fall by 93%, energy experts predict. Guardian: “Orders for offshore wind turbines in Britain will slump next year, threatening to halt the industry's recent growth and the expected creation of up to 10,000 "green economy” jobs. … Britain recently overtook Denmark to become the world's largest offshore windfarm player, implying the tripling of capacity in the next two years. But new projects will dry up in 2013. Only 90 megawatts (MW) of newly installed capacity, which is enough to supply 30,000 homes when the wind blows, is being forecast by energy experts at Douglas-Westwood, compared with 1,368Mw the year before.” 1031

Fare fewer banks lend to wind developers than before the credit crunch …and each lends less. The availability of bank finance for offshore projects – at least twice as costly as onshore windfarms – has still not returned to pre-credit crunch levels. Now there are only 10-14 banks actively lending, compared with almost 40 before 2008, each lending about half what they were lending before. Andy Cox, head of KPMG's energy practice, said: "It takes more time to get their credit committees comfortable with the risks associated with these projects, particularly as they get bigger and bigger. A huge financing gap in the market is looming with Round 3."1032

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