Europe Shares Rise On Renewed Hopes For U.s. Debt Deal

Completely unsurprisingly, the falloff in government investment (i.e., subsidization) has been mirrored by a falloff in private investment, via Bloomberg : Clean-energy investment fell 14 percent in the third quarter from the prior three months as Europe curbed subsidies and cheaper U.S. natural gas lured investment. The $45.9 billion spent makes it almost certain that annual investment in renewables and energy-smart technologies will fall for the second consecutive year from $281 billion in 2012, Bloomberg New Energy Finance said in a statement. Investment in the quarter was 20 percent lower than the same period last year as spending in China, the U.S. and Europe fell. The U.S. saw the largest decline, sliding 41 percent to $5.5 billion, according to the London-based research company. Europes clean-energy industry is retrenching after subsidies were reduced in nations from Germany to Spain, which helped propel record growth in previous years. Cheap gas in the U.S. driven by a shale-drilling boom and a reduction in Chinas spending on wind power wind power also contributed to the overall decline, the London-based consultant said One of the most facepalm-worthy parts of all of this is that supporters of the Obama administrations regulatory war-on-coal largely and blithely rely on the argument that because the coal-substitute of natural gas has been doing so well, coal is naturally entering its sunset years anyway and will shortly fall prey to the economical powers of creative destruction but strangely, they often forget to mention that coal could easily regain market share in the event that natural gas prices begin to rise for whatever reason The Obama administration is effectively barring that from happening on the domestic scene, while foreign demand for coal is growing; you need look no farther than Europe as a current Exhibit A for that eventuality. The editors of RealClearEnergy , therefore, would rather the Continent spare us the lectures, emphasis mine: What happens when you dont frack and you decide to shut down nuclear? You return to coal. Thats the lesson that Europe is learning these days. Despite all the brohaha about carbon emissions and global warming, Europe is marching straight back into the past by increasing its reliance on coal for electricity and this in spite of a continent-wide recession and slumping demand. Germany is the worst example.

debt deal Tue Oct 15, 2013 3:58am EDT * FTSEurofirst 300 up 0.5 pct, Euro STOXX 50 up 0.4 pct * DAX hits record high, CAC 40 reaches 5-year high * Burberry drops 5 pct after CEO leaves * Nexans sinks 13 pct on profit warning, capital increase By Blaise Robinson PARIS, Oct 15 (Reuters) – European shares rose early on Tuesday, gaining ground for the fourth session in a row, boosted by signs that a deal could soon be reached in Washington to avert a damaging debt default. At 0726 GMT, the FTSEurofirst 300 index of top European shares was up 0.5 percent at 1,259.15 points, while the euro zone’s blue-chip Euro STOXX 50 index added 0.4 percent to 2,988.35 points, hitting a fresh 2-1/2 year high. Positive signals from talks on Monday between Democrat and Republican Senate leaders fuelled hopes of an imminent deal to reopen shuttered U.S. federal agencies and prevent a default on federal debt, sending world stocks higher. “Relief that politicians have taken the U.S. to the edge and back again is clear,” said Keith Bowman, equity analyst at Hargreaves Lansdown. The plan under discussion would end a partial government shutdown and raise the debt ceiling by enough to cover the nation’s borrowing needs at least until mid-February 2014. Around Europe, the UK’s FTSE 100 index was up 0.6 percent, France’s CAC 40 was up 0.3 percent, reaching a five-year high, and Germany’s DAX index was up 0.5 percent, hitting a record high. “The consensus is bullish, everyone believes that a deal will be reached, so it could already be priced in,” said Guillaume Dumans, co-head of research firm 2Bremans. “Deal or no deal, the size of the U.S. Casino rose 3.6 percent after the French supermarket chain said sales growth accelerated in the third quarter thanks to robust demand in Brazil. French cable maker Nexans plummeted 13 percent after slashing its profit outlook and unveiling a capital increase. Investors will keep a close eye on U.S. corporate results on Tuesday, with several major U.S.