News Wrap

IN THIS morning’s wrap: China stimulus “may not eventuate”; companies lag on carbon reduction targets; and Abramovich ponders deal with Linc Energy.
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Lou Caruana

China stimulus ‘may not eventuate’

A leading commodities analyst has warned investor that hopes for a Chinese stimulus package are overblown and China’s new leaders are unlikely to dramatically alter the economy’s course, according to the Australian Financial Review.

Macquarie’s head of commodities research Jim Lennon said China did not appear worried about the slow-down in growth as job markets remained firm and investment continued to grow outside of commodity intensive sectors such as steel.

“They’re not worried about things. They’re not at all panicking,” Lennon said on Wednesday.

“They don’t want to encourage investment in some of these industries that have to die.”

Companies lag on carbon reduction targets

Carbon-intensive companies are falling behind on setting reduction targets for greenhouse gas emissions, meaning they risk delaying action on tackling emissions and increasing their costs in the longer term, according to the Australian Financial Review.

The latest report by the Carbon Disclosure Project has found that fewer than half the companies providing climate change information had a formal emissions reduction target, indicating a “less than strategic approach” in companies’ energy efficiency efforts.

The lack of a target “may be contributing to delayed action and higher than necessary costs to businesses in the medium to longer term”, said the writer of the report and lead partner for sustainability with Deloitte Australia Brad Pollock.

Abramovich ponders deal with Linc Energy

One of the world’s richest men, Roman Abramovich, is considering an investment deal with Queensland-based resource company Linc Energy, which is renowned for its underground coal gasification technology.

During a brief visit to Australia last weekend, Abramovich – the owner of the Chelsea Football Club and who is worth $US12.1 billion, according to Forbes Magazine – had dinner with Linc chief Peter Bond in Brisbane before a tour of its coal gasification facilities at Chinchilla in southwest Queensland.

The confidential talks have fuelled speculation Abramovich is considering investing in the Australian resources sector or wants to use Linc’s technology in Russia.

Linc has a market capitalisation of about $A310 million.

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