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Some airlines risk failure if they do not cut emissions faster – industry report

By Jamie Freed

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Some airlines risk failure if they do not cut emissions faster - industry report
© Reuters. FILE PHOTO: An aeroplane flies underneath the jet stream of another aircraft above the Italian city of Padova September 18, 2013. REUTERS/David Gray

By Jamie Freed

SYDNEY (Reuters) – Some airlines risk failure if they do not cut carbon emissions quicker in the next three to five years due to a mismatch between short-term corporate travel targets and the airline industry’s 2050 net zero target, an industry report said.

Airlines are also at a rising risk of shareholder activism at a time when major fund managers such as BlackRock Inc (NYSE:), Vanguard Group Inc and State Street Corp (NYSE:) have publicly expressed concerns about climate change, the report from CAPA Centre for Aviation and Envest Global released on Wednesday said.

“The pressure from customers and governments and investors is going to probably demand an acceleration of the journey to net zero, which is clearly going to put pressure on airlines,” said David Wills, advisory executive director at Australian carbon reduction strategy firm Envest.

“The conditions are right for airlines who get it wrong to find themselves in a potential failure situation,” he added.

Several companies, such as HSBC Holdings (NYSE:) plc, Zurich Insurance Group (OTC:) Ltd, Bain & Company and S&P Global (NYSE:) Inc, have already announced plans to quickly cut business travel emissions by as much as 70%.

Qantas Airways Chief Executive Alan Joyce said last week that his airline was developing a 2030 emissions target.

“Our view is that smart airlines will pivot to reinforcing not only 2050 but enhancing their definitive views on 2030, because they will be looking to engage with their corporate customers more,” said Brett Mitsch, Envest’s executive director of investment.

The CAPA/Envest report found the top quartile of 52 global airlines examined emitted an average of 30% less per passenger kilometre flown in 2019 than those in the bottom quartile.

Low-cost carriers like Wizz Air, Ryanair and AirAsia with newer fleets and higher load factors were among the best performers, while the worst included Turkish Airlines, Japan Airlines Co Ltd (JAL) and British Airways.

The report said JAL was able to break even with a carbon price of more than $160 per tonne based on 2019 earnings, whereas many airlines with lower profit margins would have reported a loss at a carbon price of $30 per tonne.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Italy in talks with EU to delay MPS privatisation beyond 2023 – sources

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Italy in talks with EU to delay MPS privatisation beyond 2023 - sources
© Reuters.

By Giuseppe Fonte

ROME (Reuters) – Italy’s Treasury is discussing with European Union authorities the possibility of extending by more than two years a 2021 deadline to cut Rome’s 64% stake in ailing bank Monte dei Paschi di Siena (MPS), two sources told Reuters.

Under the terms of a 5.4 billion euro ($6.12 billion) state bailout agreed with Brussels in 2017, Italy was supposed to have a deal in place by the end of this year to re-privatise MPS, but this has not proved possible.

Talks to sell the Tuscan lender to the country’s No.2 bank UniCredit collapsed in October, leaving the Treasury chasing alternative options.

Rome expects to win Brussels’ approval for a lengthy extension of the deadline to return MPS to private hands. This will give the government time to boost the bank’s profitability and attract new investors, the sources said, asking not to be named because of the sensitivity of the matter.

The extension being sought will be “more than two years,” one of the sources said. This was confirmed by a second source familiar with the matter.

Shares in MPS jumped almost 17% on Wednesday, with traders saying the Treasury-led restructuring could make the lender more appealing for a potential partner.

In a further boost on Wednesday, ratings agency Fitch removed a negative rating watch on the bank.

Both sources said the Treasury would make every effort to keep the new deadline confidential, in order to avoid the risk that potential buyers wait until it is looming to table an offer when the government is under pressure.

However, the extension will largely cover the timeline of MPS’ new industrial plan ending in 2025, provided the EU competition authorities authorise it.

The Treasury firstly needs to address the bank’s capital requirements, which MPS has put at 2.5 billion euros.

Reuters reported in October that the cash call could total 3.5 billion – to cover layoff costs and other expenses – or more than 3.5 times the bank’s current market value.

Rome will also implement some of the measures that were offered to UniCredit as part of a stand-alone solution for MPS, the sources said.

The plan will clear the bank of its residual problem debts, which will go to state-owned bad loan manager AMCO, while state agency Fintecna will take on risks from MPS’ pending lawsuits.

($1 = 0.8839 euros)

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Cisco vs. NETGEAR: Which Networking Stock is a Better Buy?

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Cisco vs. NETGEAR: Which Networking Stock is a Better Buy?
Cisco vs. NETGEAR: Which Networking Stock is a Better Buy?

Despite rising input costs for producing networking equipment and the semiconductor chip shortage, the growing demand from remote working structures, the passage of the infrastructure bill, and the deployment of 5G technology should keep the wheels of the networking industry turning. And prominent networking companies Cisco (CSCO) and NETGEAR (NTGR) should benefit from these industry tailwinds. But which of these stocks is a better buy now? Read more to find out.Cisco Systems, Inc. (NASDAQ:) and NETGEAR, Inc. (NTGR) are two popular companies in the networking industry. CSCO San Jose, Calif., designs and manufactures Internet Protocol (IP) based networking products and services related to communications and information technology worldwide. The company sells its products and services directly and through systems integrators, service providers, resellers, and distributors. In comparison, NTGR, which is also headquartered in San Jose, designs, develops, and markets networking solutions and smart connected products for consumers, businesses, and service providers. It offers network-attached storage devices, wireless controllers and access points, unified storage products, Internet protocol (IP) security cameras, and home automation devices and services. It also offers value-added services that include technical support, parental controls, and cybersecurity protection.

The surging demand for advanced, cloud-based networking products and solutions from residential, commercial, and industrial areas since the pandemic, due to the continued adoption of hybrid working models, has incentivized networking companies to deliver more efficiency in their automation, analytics, and security solutions. The recent passage of a bipartisan infrastructure bill that provides significant funding for networking and 5G companies is likely to contribute to the industry’s long-term growth. The global network infrastructure market is expected to grow at 3.9% CAGR to $229.74 billion by 2026. So, both CSCO and NTGR should benefit.

But while NTGR’s shares have declined 18.9% in price over the past year, CSCO has surged 30.6%. Also, CSCO is a clear winner with 5.4% gains versus NTGR’s negative returns in terms of their past six months’ performance. But which of these stocks is a better pick now? Let us find out.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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Should You Buy the Dip in Autodesk?

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Should You Buy the Dip in Autodesk?
© Reuters. Should You Buy the Dip in Autodesk?

Software company Autodesk (NASDAQ:) topped analysts’ expectations for revenue and earnings in its last reported quarter. However, its business outlook for the next quarter fell short of expectations, prompting a significant price decline in its stock. So, given the uncertainty surrounding the company’s performance in the coming months, is the current price dip in its stock an attractive buying opportunity? Let’s discuss.Autodesk, Inc. (ADSK) is a software and services company that specializes in 3D design, engineering, and entertainment. The San Rafael, Calif.-based company’s technology is used in architecture, engineering, building, product design, manufacturing, media, and entertainment, allowing innovators to tackle big and small challenges.

The stock has declined 18.9% in price over the past three months and 20% over the past month. Closing yesterday’s trading session at $254.19, the stock is currently trading 26.2% below its 52-week high of $344.39, which it hit on August 24, 2021.

Though the company reported robust revenue and earnings in its last reported quarter, it failed to meet analysts’ expectations for its fourth quarter business outlook. This has caused the stock’s price to plummet over the past week. In addition, because the company expects rising inflationary pressure to affect its future performance, the stock could remain under pressure in the near term.

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Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

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