News

Question 1

What is happening in the tech sector?

Answer 1

Companies are reporting their revenues with a broad range of results - tech stocks are caught up in the broader tide. Sentiment amongst investors is more pessimistic than reality, hence potential rises in stock prices despite poor earnings.

Question 2

What are the impacts of Russia on Ashurst and its clients?

Answer 2

• Reducing the global economy’s use of fossil fuels is even more daunting, energy security is prioritised
• Companies are currently launching marine cargo and war insurance for grain and food products moving from the black sea
• Green activists have put in a record number of demands to Japanese companies for action over fossil fuel investment… experts warn LNG will be necessary for several years
• Debt repayments pushed back by Ukraine

Question 3

What’s going on in energy for Ashurst’s clients?

Answer 3

• Gas and nuclear were designated as sustainable for the first time by EP - changing ESG quotas
• Windfall profits represent a “once in a generation” opportunity for big oil and gas companies to deliver on net zero
• ESG investment moving towards energy and utilities - currently most funds are allocated to tech and financials

Question 4

What’s going on in mining for Ashurst’s clients?

Answer 4

• UK rare earths processing site to weaken China’s stranglehold on vital materials used in electric cars, etc.
• Higher borrowing costs and political instability driven by inflation threatens to delay the billions of dollars of investment in mining required for net zero.
• Aggressive rate hikes by the Fed are pushing gov bond yields high, dulling the appeal of metals which offer no yield
• Labour issues, rising production costs
• Prices dropping amid fears of aggressive rate hikes, china covid cases, and the prospect of Russia cutting European gas; iron prices have subsided while coal still surges
• Oil prices remain high
• Mirroring 2008 where issues with oil in Nigeria and Iraq was coupled with demand…

Question 5

What’s going on with the UK economy for Ashurst’s clients?

Answer 5

• Strike action threats in Felixstowe - worsen supply chain problems and put further pressure on prices

Question 6

What’s going on in competition for Ashurst’s clients?

Answer 6

• Aviation being probed about summer cancellations

- CMA has fined Pfizer for exploiting regulatory loopholes about generic drug pricing

Question 7

What’s going on in climate for Ashurst?

Answer 7

• Waste to energy - 60th project closed in 2015.
• INFRASTRUCTURE CHANGE - investors are offered steady returns.
• EC has drafted guidelines due to enter into force in Jan to give sustainability agreements a get out of jail free card providing they can prove a collective benefit to society, e.g. insurers allowed to collectively exclude coal, e.g. Net Zero Insurance Alliance

Question 8

What’s going on in the global economy for Ashurst?

Answer 8

Foreign investors pulling funds out of emerging markets, exacerbating a mounting financial crisis across developing economies
Energy companies are making record profits
Global recession seems possible - falling gasoline demand in the US may be a leading indicator. Recession would drive down demand for fossil fuels, cutting emissions, prices, and Putin’s income