Emerging Markets Daily - April 20
Carbon Surge Coming in Post-Covid Boom, Global Vaccine Inequality Rises, Xi Challenges U.S Leadership, Saudi Seeks 'Green' Loan for Red Sea Project, Shanghai Exchange Eyes Switzerland GDR Listings
The Top 5 Emerging Markets Stories from Global Media - April 20
Carbon 'Surge' Expected in Post-Covid Energy Boom
BBC
“The International Energy Agency (IEA) is predicting a major surge in CO2 emissions from energy this year, as the world rebounds from the pandemic.”
“Overall global use declined by around 4% in 2020, but is expected to rise by 4.5% this year. This is mainly happening in Asia, where China is leading the way and expected to account for more than half of the global coal growth this year.”
“But even in the US and EU, where coal has been on the back foot for some time, demand is expected to rise - although it will still likely remain below 2019 levels in these regions.”
“However, renewable energy is also booming, with green sources set to supply 30% of electricity this year [the highest since the industrial revolution began].” Matt McGrath reports
Vaccination in Poorer Nations Has Slowed, Posing Global Risks
Wall Street Journal
“Efforts to vaccinate the poorest countries against Covid-19 have slowed to a trickle, leaving many with weakened defenses against the coronavirus just as the weight of the pandemic shifts from developed to developing nations.”
“An initiative backed by the World Health Organization and rich countries to supply free vaccines to 92 low- and middle-income countries recently slashed the number of shots it plans to ship by the end of May. That initiative, called Covax, will deliver 145 million doses instead of about 240 million because India, its main supplier, has largely stopped exporting shots as it fights a surge in cases at home.”
“Slow uptake of Covid-19 vaccines in developing countries could create problems for the rest of the world. Epidemiologists believe that failure to vaccinate much of the developing world could leave a large reservoir of the coronavirus circulating, giving it the chance to mutate and possibly spill over to developed countries.” Gabriele Steinhauser, Nicholas Bariyo, and Jon Emont report
Xi Warns Against Decoupling, China Reaches Out to U.S Businesses
Bloomberg
“In a veiled critique of U.S. efforts to reduce dependence on Chinese supply chains and withhold exports of goods like advanced computer chips, Xi said ‘any effort to build barriers and decouple works against economic and market principles, and would only harm others without benefiting oneself.’”
“After canceling the forum last year because of the coronavirus outbreak, China is signaling it’s open for business with the resumption of the [Boao] conference, billed as an Asian version of the World Economic Forum in Davos.
China is making a concerted effort to improve ties with U.S. businesses in particular. A slew of American executives are participating in the forum, including Apple Inc.’s Tim Cook, Tesla Inc.’s Elon Musk, Blackstone Group Inc’s Stephen Schwarzman and Bridgewater Associates’ Ray Dalio. Bloomberg News reports
Saudi Red Sea Tourism Plan to Clinch a $3.7bn Green Loan
Arab News
“Saudi Arabia is weeks away from clinching the first significant funding package for a key part of Crown Prince Mohammed bin Salman’s program to diversify the Kingdom’s economy, Bloomberg reported.”
“The deal to help fund the first phase of the development will be a so-called green loan. The proceeds will be used to finance environmentally sustainable investment, the people said, asking not to be identified as the information is private. It will have a tenor of 15 years and an interest rate of about 1 percent above the Saudi interbank offered rate, they said.'“
“Construction of a new international airport for the area has begun, and the first phase of the project is due to be completed with the opening of four hotels at the end of 2022.” Arab News reports
Shanghai Exchange Hints at GDR Sales by Chinese Companies In Switzerland
South China Morning Post
“The Shanghai Stock Exchange will embark on a project that could see the inaugural sale of global depositary receipts (GDRs) in Switzerland by Chinese companies, according to a senior bourse official, amid growing US-China tensions.”
“A link-up with the Swiss exchange would be the third cross-border plan by the Shanghai exchange, which is the biggest in Asia based on the 46 trillion yuan (US$7.1 trillion) of stock capitalisation. It is seen as China’s continuing effort to open up its markets to foreign investors. The local exchange currently has ‘stock connect’ programmes with Hong Kong and London.” Zhang Shidong reports