Mainly due to the horrific oil leak poisoning the Gulf, Google has decided to invest an amount of 38.8 million dollars into wind power. More precise, this investment is situated in North Dakota, which in known for its strong winds. Of course this feature is ideal for wind power harvesting. With this investment Google mainly wants to promote the use of clean energy, which will be indispensable in the future.
The wind farms themselves include some 113 turbines that can power up to 55,000 houses. While it is a small step, it represents an appetite from Google to speed along the progress of renewable energy.
The goal Google wants to set with this investment is to “accelerate the deployment of the latest clean energy technology while providing attractive returns to Google.” Of course Google is also satisfied with the fact that this investment is shown in many news reports, papers, etc. I think this also was the effect Google wanted to create. Due to these positive reactions, Google gets a better name and gets more used every day. In my opinion, Google did this investment for two reasons: to indeed help with the battle against the global warming, and to get a better name so that the use of Google is stimulated all over the world.
Niels Roels, 2FV4
The source used to write this blog: http://thenextweb.com/google/2010/05/03/google-invest-nearly-40-million-into-wind-power/
zondag 9 mei 2010
donderdag 6 mei 2010
Fearing inflation, wealthy stock up on hard assets
Some economists think that the economy will grow and others expect a relapse. The first option can cause inflation and the second can cause deflation. It doesn’t matter which direction the economy follows, in both cases investors can protect their money.
On the one hand, the gold indicator seemed attractive, with a grow of 21%. Traditionally, tangible assets such as gold hold their value, even when the price level is increasing and the purchasing power of the dollar falls. So, asset managers are advising wealthy people to keep an important part of tangible assets as inflation-fighting tool in their portfolio.
On the other hand, contracted credit, stagnant wages and given overcapacity are signals that the risk of deflation (a decrease in the general price level of goods and services) is more likely. Last week, the statements of the Federal Reserve (the central bank of the United States) and J.P. Morgan were feeding this view.
“GenSpring Family Offices” advise their clients to gamble on two horses, it recommends taking both, long and short positions in commodities, in their portfolio. In case of inflation, they suggest investors have to change their illiquid part to more tangible assets.
There are also other trends visible in the world of asset management. Wealthy clients are showing more and more interest in direct investments, like in farmland, timberland, mines and naturally real estate. But these sorts of investments should be limited to 30% of the portfolio.
I agree with the fact that you have to protect your wealth. Investments like gold and real estate remain attractive for the richer people. Maybe we also have to follow the advice of asset managers, because they are well informed. At my opinion direct investments in mines and timberland are risk full when you aren’t familiar with this business. When you are considering to invest in such a direct investment, you have two options. First of all, you can ask professional advice. Or you can buy shares of this sort of funds.
http://www.investmentnews.com/article/20100502/REG/305029988
Benny De Meyer, 2FV4
On the one hand, the gold indicator seemed attractive, with a grow of 21%. Traditionally, tangible assets such as gold hold their value, even when the price level is increasing and the purchasing power of the dollar falls. So, asset managers are advising wealthy people to keep an important part of tangible assets as inflation-fighting tool in their portfolio.
On the other hand, contracted credit, stagnant wages and given overcapacity are signals that the risk of deflation (a decrease in the general price level of goods and services) is more likely. Last week, the statements of the Federal Reserve (the central bank of the United States) and J.P. Morgan were feeding this view.
“GenSpring Family Offices” advise their clients to gamble on two horses, it recommends taking both, long and short positions in commodities, in their portfolio. In case of inflation, they suggest investors have to change their illiquid part to more tangible assets.
There are also other trends visible in the world of asset management. Wealthy clients are showing more and more interest in direct investments, like in farmland, timberland, mines and naturally real estate. But these sorts of investments should be limited to 30% of the portfolio.
I agree with the fact that you have to protect your wealth. Investments like gold and real estate remain attractive for the richer people. Maybe we also have to follow the advice of asset managers, because they are well informed. At my opinion direct investments in mines and timberland are risk full when you aren’t familiar with this business. When you are considering to invest in such a direct investment, you have two options. First of all, you can ask professional advice. Or you can buy shares of this sort of funds.
http://www.investmentnews.com/article/20100502/REG/305029988
Benny De Meyer, 2FV4
dinsdag 4 mei 2010
Norsk Hydro buys Vale's aluminium business
The Norwegian company Hydro has reached an agreement to buy a majority stake in the aluminium operations of Brazilian miner “Vale”. Hydro is a global supplier of aluminium and aluminium products.
The company employs 19000 employees and has activities on all continents. With this extra take-over they want to become the world’s largest coal mining company.
In the opinion of the business managers is this agreement an important step to become a fully integrated aluminium company.
The Norwegian Hydro is convinced that this buy will also secure them supplies in aluminium from Brazil. In my opinion this take-over is a very good step in the right direction for Hydro because they still have a strong growth potential.
The Norwegian company “Hydro” has to pay 4.9 billion dollars for the take-over. In exchange for the sale Vale has received 1.1 billion dollars in cash and a 22% stake in Norsk Hydro. Vale is a pioneering mining company which transforms the earth’s mineral resources into sustainable development.
In my opinion this take-over is absolutely a good fact because both companies have the same market strategy and future plans. They both want to be the largest mining company in the world.
With also a lot of extra production activities in Brazil Hydro will move into the top class of global aluminium companies. I think we can only stimulate this expansion.
This blog is based on the following article:
http://news.bbc.co.uk/2/hi/business/10095021.stm
De Bruycker Mathias
2FV4
The company employs 19000 employees and has activities on all continents. With this extra take-over they want to become the world’s largest coal mining company.
In the opinion of the business managers is this agreement an important step to become a fully integrated aluminium company.
The Norwegian Hydro is convinced that this buy will also secure them supplies in aluminium from Brazil. In my opinion this take-over is a very good step in the right direction for Hydro because they still have a strong growth potential.
The Norwegian company “Hydro” has to pay 4.9 billion dollars for the take-over. In exchange for the sale Vale has received 1.1 billion dollars in cash and a 22% stake in Norsk Hydro. Vale is a pioneering mining company which transforms the earth’s mineral resources into sustainable development.
In my opinion this take-over is absolutely a good fact because both companies have the same market strategy and future plans. They both want to be the largest mining company in the world.
With also a lot of extra production activities in Brazil Hydro will move into the top class of global aluminium companies. I think we can only stimulate this expansion.
This blog is based on the following article:
http://news.bbc.co.uk/2/hi/business/10095021.stm
De Bruycker Mathias
2FV4
zondag 2 mei 2010
Japan invests in Africa
Japan is willing to invest 3.4 billion dollars in Africa by 2012. The Japanese authorities are more specifically willing to invest in projects that respect the government and are committing to fight against global warming.
Today, the first amounts of money have already been received by Africa. More specific, this investment concerns a 300 million dollar loan given to Kenya. This loan is to be used for the construction of two geothermal plants for electricity production.
Other then investments like these, also Japanese banks are encouraging private investments on the continent. More specific, Japan set two goals in 2008: intensify its help in Africa and double its investments on the continent in order to achieve 3.4 billion dollars by 2012. 1.8 million dollars of this amount will be used to stimulate agriculture and infrastructure.
In my opinion, this investment is -as most investments are- good for the people receiving the money. Africa will certainly be able to use this amount of money and stimulate its economy. On the other hand, I also found out Japan doesn’t really want to help Africa, it’s not one of their main targets. The most important reason why Japan is investing in Africa is that it wants to compete with China, a country which is investing almost 4 times more in this continent than Japan does. By this investment, Japan is in my opinion trying to appear in the news in a good way to strengthen its own ‘good’ name.
Used sources: http://www.afriqueavenir.org/en/2010/04/27/japan-invests-in-africa/
Niels Roels
2FV4
Today, the first amounts of money have already been received by Africa. More specific, this investment concerns a 300 million dollar loan given to Kenya. This loan is to be used for the construction of two geothermal plants for electricity production.
Other then investments like these, also Japanese banks are encouraging private investments on the continent. More specific, Japan set two goals in 2008: intensify its help in Africa and double its investments on the continent in order to achieve 3.4 billion dollars by 2012. 1.8 million dollars of this amount will be used to stimulate agriculture and infrastructure.
In my opinion, this investment is -as most investments are- good for the people receiving the money. Africa will certainly be able to use this amount of money and stimulate its economy. On the other hand, I also found out Japan doesn’t really want to help Africa, it’s not one of their main targets. The most important reason why Japan is investing in Africa is that it wants to compete with China, a country which is investing almost 4 times more in this continent than Japan does. By this investment, Japan is in my opinion trying to appear in the news in a good way to strengthen its own ‘good’ name.
Used sources: http://www.afriqueavenir.org/en/2010/04/27/japan-invests-in-africa/
Niels Roels
2FV4
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