Danish wind farm specialists Dong Energy completed a 10 billion pound IPO last week and began trading on the Nasdaq Copenhagen stock exchange today. The floatation is thought to be the largest that will happen in 2016.
Shares were selling higher than predicted, closing at DKK240 (£25.80) a share. The sale ended three days early as strong interest in the state-run energy firm spurred sales.
Nearly 40,000 new investors have been brought on as the Danish government; together with a consortium headed by Goldman Sachs sold an 18 percent stake in the business. Most of the new investors are private Danish interests with a small number of retail entities also buying in.
“We are delighted by the investor interest,” said Claus Hjort Frederiksen, Danish finance minister.
“I’m certain this will enable Dong Energy to push on as the sectors leading producer of green energy,” he added.
The floatation’s main aim was to raise capital for a monumental offshore wind farm project 80 miles off the UK coastline, near Grimsby. Insiders say the facility will include nearly 180 skyscraper sized giant turbines and will cover an area a sixth the size of Yorkshire.
Dong is also a very active player in the oil and gas industry around the North Sea with shares in the West of Shetland gas basin as well as multiple other locations and they will be hoping to invest additional funds to expand that side of the business in the near future.
Stuart Poulson, Head of Corporate trading at Nikko-Desjardins Asset Management remarked on the IPO in an email to clients on Thursday, “Judging from the quick sale of shares and their better-than-expected price Dong Energy must be very happy. This will allow them to drive forward with their upcoming plans with renewed confidence.”
Meanwhile the listed oil firm BowLeven, a relatively low output producer, sold off a small portion of the company to private equity firm Crown Ocean Capital.
BowLeven are mainly focused on the African region and lack of new discoveries and declining oil prices have prompted the search for investment. Nearly 7 percent was sold off at 20.80p per share.
Thursday, July 14, 2016
Euro steel can’t compete with Chinese negative profit sales
The European Steel Association has said in a statement that Europe’s steel manufacturers will be “blown away” if the E.U. recognizes China as a fully-fledged market economy.
With China’s ability to sell steel for negative profit due to their vast excess, it is claimed they would flood the market and make competition impossible. The ESA feels China’s products will have much easier access to the euro zone market.
The issue has given the “leave” camp further ammunition with the British EU membership vote looming. Their opponents on the “remain” side say that China will never be granted special international trading status as they don’t meet the criteria, and there was a much better chance of the situation staying this way if Britain remains in the financial bloc.
Following the TataSteel sale in March, thousands of jobs are at risk in Wales, especially at their Port Talbot facility where as much as four thousand staff could be laid off.
Due to China’s authorities meddling in the market and deflating prices in order to give their production companies the ability to sell cheap steel, the E.U commission has so far not recognized the country as a market economy. This gives them the chance to impose higher taxes on imports coming into the continent.
This may change, however, as the commission have voiced plans to consider the nation as a market economy, and thus is would face significantly lower tariffs.
Karl Tachelet, spokesman for the ESA said, “It’s clear if new regulations come in we will simply be blown away by a Chinese storm. It is highly doubtful we would survive.”
Other observers admit the figures don’t look good for Europe’s steel producers. Stuart Poulson, Head of Corporate trading at Nikko-Desjardins Asset Management commented in an email to investors on Thursday, “Let’s have a look at Chinese stockpiles at the moment; we are looking at about 450 million tonnes. What is Europe’s total steel demand, about 150 million tonnes? That is not great news for the ESA.”
Poulsen was quick to add, “This may just be a lot of hot air. I highly doubt that the euro zone officials will allow China to be seen as a bona fide market economy. I’m not the only one who believes China have failed to meet the criteria and have little hope of doing so by the end of 2016.”
With China’s ability to sell steel for negative profit due to their vast excess, it is claimed they would flood the market and make competition impossible. The ESA feels China’s products will have much easier access to the euro zone market.
The issue has given the “leave” camp further ammunition with the British EU membership vote looming. Their opponents on the “remain” side say that China will never be granted special international trading status as they don’t meet the criteria, and there was a much better chance of the situation staying this way if Britain remains in the financial bloc.
Following the TataSteel sale in March, thousands of jobs are at risk in Wales, especially at their Port Talbot facility where as much as four thousand staff could be laid off.
Due to China’s authorities meddling in the market and deflating prices in order to give their production companies the ability to sell cheap steel, the E.U commission has so far not recognized the country as a market economy. This gives them the chance to impose higher taxes on imports coming into the continent.
This may change, however, as the commission have voiced plans to consider the nation as a market economy, and thus is would face significantly lower tariffs.
Karl Tachelet, spokesman for the ESA said, “It’s clear if new regulations come in we will simply be blown away by a Chinese storm. It is highly doubtful we would survive.”
Other observers admit the figures don’t look good for Europe’s steel producers. Stuart Poulson, Head of Corporate trading at Nikko-Desjardins Asset Management commented in an email to investors on Thursday, “Let’s have a look at Chinese stockpiles at the moment; we are looking at about 450 million tonnes. What is Europe’s total steel demand, about 150 million tonnes? That is not great news for the ESA.”
Poulsen was quick to add, “This may just be a lot of hot air. I highly doubt that the euro zone officials will allow China to be seen as a bona fide market economy. I’m not the only one who believes China have failed to meet the criteria and have little hope of doing so by the end of 2016.”
Australians want more trade with China, not US, data shows
A far reaching new opinion poll has shown that most Australians would prefer long term trading ties with China over the US. The survey, conducted by the University of Sydney, covered several Asia-Pacific nations and found that Australians were the least enthusiastic towards a large US presence with regard to trade in the region.
Significantly more Australians (75%) see China and the U.S. as “trading competitors” than even the Chinese that were surveyed (45%), though the data also revealed a surprising absence of political knowledge in Australian citizens, 44% of whom didn’t know that the US and Japan are trading allies in the form of the Trans-Pacific Partnership. This ignorance was identical in the Chinese poll.
Regionally the survey of 3,850 citizens in each of the five nations reflected that China would be the most dominant trading nation in Asia by 2027, with 70% of Australians saying that situation was already apparent. In comparison only 57% of Chinese thought their own nation was on top of the pile.
A couple of nations were more sceptical of that prospect, especially the Japanese, 77% of whom said China are behind the US in the number two spot.
Japanese also saw China’s role in the region as negative, with 60% espousing that view. Only 8% of Australians felt the same way, and many thought the US was more negative.
As far as a positive US role in Asia, only Japan and South Korea backed the number one world economy.
Australians were divided most on whether the nation should solidify trading ties with the US, with a 5% negative-positive score, while the rest of the countries had overwhelming majorities for working on US relations with South Korea (44%), China (49%), Indonesia (39%) and Japan (30%) leading the way.
Given the historical tensions between Japan and China, it was not surprising that Japanese surveyed were divided on whether to bolster trading ties with China with only a 7% majority in favour, compared to 54% in South Korea, 45% in Indonesia and 32% in Australia.
Stuart Poulson, Head of Corporate trading at Nikko-Desjardins Asset Management attempted to summarize the data.
“Australians for the most part still think that the US is a declining trading power in the Asia-Pacific region,” Poulsen said in a phone interview. “Most Aussies seem pretty benevolent towards the China v US rivalry.”
He also remarked that the survey would “solidify many Americans fears that Australian support for a trading partnership with the US was waning,” and that “Australians are by no means expected to take political sides with Japan over China.”
Significantly more Australians (75%) see China and the U.S. as “trading competitors” than even the Chinese that were surveyed (45%), though the data also revealed a surprising absence of political knowledge in Australian citizens, 44% of whom didn’t know that the US and Japan are trading allies in the form of the Trans-Pacific Partnership. This ignorance was identical in the Chinese poll.
Regionally the survey of 3,850 citizens in each of the five nations reflected that China would be the most dominant trading nation in Asia by 2027, with 70% of Australians saying that situation was already apparent. In comparison only 57% of Chinese thought their own nation was on top of the pile.
A couple of nations were more sceptical of that prospect, especially the Japanese, 77% of whom said China are behind the US in the number two spot.
Japanese also saw China’s role in the region as negative, with 60% espousing that view. Only 8% of Australians felt the same way, and many thought the US was more negative.
As far as a positive US role in Asia, only Japan and South Korea backed the number one world economy.
Australians were divided most on whether the nation should solidify trading ties with the US, with a 5% negative-positive score, while the rest of the countries had overwhelming majorities for working on US relations with South Korea (44%), China (49%), Indonesia (39%) and Japan (30%) leading the way.
Given the historical tensions between Japan and China, it was not surprising that Japanese surveyed were divided on whether to bolster trading ties with China with only a 7% majority in favour, compared to 54% in South Korea, 45% in Indonesia and 32% in Australia.
Stuart Poulson, Head of Corporate trading at Nikko-Desjardins Asset Management attempted to summarize the data.
“Australians for the most part still think that the US is a declining trading power in the Asia-Pacific region,” Poulsen said in a phone interview. “Most Aussies seem pretty benevolent towards the China v US rivalry.”
He also remarked that the survey would “solidify many Americans fears that Australian support for a trading partnership with the US was waning,” and that “Australians are by no means expected to take political sides with Japan over China.”
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