May 17, 2020

[CHART] Worst start ever for global stock markets

Operations
stock market
Chart
Visual Capitalist
Admin
1 min
[CHART] Worst start ever for global stock markets
In the beginning the forecast for 2016 appeared optimistic.

Then the first four days of trading occurred and it was apparent optimism for the new year...

In the beginning the forecast for 2016 appeared optimistic.

Then the first four days of trading occurred and it was apparent optimism for the new year would be in short supply. Thanks in part to China’s rough start, the S&P 500 and Dow Jones Industrial Average both opened 2016 with their worst four-day starts in history, the Nasdaq was down 6.4 percent during the first four days, Canada’s TSX continued its 19 percent decline and the FTSE fell 4.8 percent.

"The start of the year is very poor, so that's got investors on the defensive," said Bucky Hellwig, senior vice president at BB&T Wealth Management in Birmingham, Alabama.

"In the face of weakening global growth ... it's difficult to find reasons to commit money at this point even if one is bullish," he said, adding that he expects stocks to rebound from these oversold conditions next week.
 

According to Visual Capitalist, another point noted in the chart above is that the starts for the S&P 500 have been trending more towards negative territory each year since the Financial Crisis.

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Jun 16, 2021

DRC selects Fortescue to develop giant hydro project

Fortescue Metals Group
Hydroelectric
Green Energy
Renewable Energy
3 min
Democratic Republic of Congo's (DRC's) government working with Fortescue Metals Group to develop Grand Inga hydroelectric power project

Democratic Republic of Congo's (DRC's) government said on Tuesday Fortescue Metals Group would develop the Grand Inga hydroelectric power project, including a 4,800-megawatt dam that has already been committed to Chinese and Spanish developers.

Fortescue to develop dams for world's largest hydroelectric project

Australia's Fortescue confirmed it was in talks with Congo to develop a series of dams that could become the world's largest hydroelectric project, but it said no formal binding agreement had been concluded.

Fortescue's involvement is the latest twist in Congo's decades-long quest to expand Inga, whose two existing dams - completed in 1972 and 1982 - have a combined installed capacity of nearly 1,800 MW.

The proposed expansion of six more dams would bring capacity to over 40,000 MW, roughly double the size of China's Three Gorges dam, currently the world's largest. Total development costs have been estimated at up to $80bn.

In 2018, a Chinese consortium that includes China Three Gorges Corporation and a Spanish consortium that includes AEE Power signed a deal with Congo's government to develop the third dam, known as Inga 3.

Ground has yet to be broken on Inga 3 because of questions over its financial viability. Alexy Kayembe De Bampende, President Felix Tshisekedi's top infrastructure advisor, said the project would now be led by Fortescue.

"Fortescue will be the sole operator for the entire Grand Inga (3 to 8). Chinese & co are welcome to join Fortescue," he told Reuters."There has been discussion between Chinese (Three Gorges) & AEE and (Fortescue) since last year to work together."

Three Gorges and AEE Power did not respond immediately to requests for comment.

DRC's Grand Inga green energy project will create hundreds of thousands of jobs

In a memorandum of understanding signed between Fortescue and Congo in September 2020, Fortescue "acknowledges the existing potential rights held on Inga 3 by third parties".

"In the event that, for any reason, such rights to develop Inga 3 become available, the government of the DRC undertakes to secure for Fortescue Future Industries an exclusive first option to develop Inga 3," it said.

A senior official at the government's Agency for the Development and Promotion of Grand Inga (ADPI), speaking on condition of anonymity, said the ADPI had not been involved in the talks with Fortescue.

Fortescue chairman Andrew Forrest met Congo President Felix Tshisekedi on Sunday to discuss the project. Forrest said Fortescue would use the energy from Inga to produce hydrogen to export around the world.

"The capital cost of this will be many many tens of billions of dollars and direct and indirect employment will be in the hundreds of thousands," he told reporters.

Fortescue has said it plans to fund the majority of its green energy projects off its balance sheet, investing about $1bn a year of its own money.

Fortescue's statement was made in response to an article in the Australian Financial Review.

Meanwhile, Fortescue has teamed up with Hatch, Anglo American and BHP, to form a Green Hydrogen Consortium focused on ways of using green hydrogen to accelerate decarbonisation within their operations globally.

 

Grand Inga

 

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