search.noResults

search.searching

saml.title
dataCollection.invalidEmail
note.createNoteMessage

search.noResults

search.searching

orderForm.title

orderForm.productCode
orderForm.description
orderForm.quantity
orderForm.itemPrice
orderForm.price
orderForm.totalPrice
orderForm.deliveryDetails.billingAddress
orderForm.deliveryDetails.deliveryAddress
orderForm.noItems
GLOBALOUTLOOK COVERSTORY


play in the energy sector too, where the energy transition is propelling renewable energies to new highs. Investment into clean energy pro- jects is set to reach a record $243bn globally in 2021, 38.9% higher than in 2020, thus further narrowing the gap with upstreamoil and gas spend- ing,which is projected to be rela- tively flat this year at $311bn, despite a historic downward trend, accord- ing to estimates by research com- pany Rystad Energy. Power utilities, particularly in


Europe, are scrambling to gain a lead in the renewable energy space. “European utilities have substan- tially increased their long-term capex programmes to finance accel- erated expansion in renewables,” credit rating agency Fitch said in a research note in February. Among others, Italian Enel will


be investing €70bn in the next 10 years to almost triple its installed green energy capacity from45GWto 120GW, the company said in a note in November. Spanish Iberdrola will invest about €35bn to grow green installed capacity to60GWin 2025, up from32GWat the end of 2019, the company said in a note in November. International oil companies


have also found themselves on the wrong side of this paradigm shift. While they divest fromupstream oil, some of them are making grow- ing commitments to investment into green energy, with the likes of Norwegian Equinor committing $18bn to wind and solar energy developments by 2026, Rystad Energy estimates.


April/May 2021 www.fDiIntelligence.com


Techis king It is a whole different gamefor com- munications and IT companies. The digital economy is booming, with surging demand shoring up capex across industry even further. The multi-billion dollar investment plans announced by the likes of TSMCare only the tip of the iceberg. Communications services and IT companies were already in expan- sion mode before the pandemic, with Covid-19 only putting on hold their investment plans for a fewmonths. The likes of Amazon, Alphabet,


Microsoft and Alibaba combined a total of $84.2bn in capital expendi- ture in the past four quarters, according to companies’ figures, and fresh capex is being earmarked for 2021. “We’re expanding [cloud] regions


globally and have a lot of upside in that area, talking with customers on their transition plans to the cloud,” Brian Olsavsky, CFOofAmazon, said in an earnings call in February. “So, we definitely do not want to run out of capacity, and we work to not do that. So, there could be a risk of for- warding spend in 2021 due to uncer- tainty, but we’ll see themas wemove through the year.” Facebook has also publicly


detailed assertive investment inten- tions for the current year. “We continue to expect 2021 cap-


ital expenditures to be in the range of $21–23bn (from $15.7bn in 2020), driven by data centres, servers, net- work infrastructure and office facili- ties. Our outlook includes spend that was delayed from2020 due to the impact of the pandemic on our con-


struction efforts,” Facebook said in a January press release. The digital economy has deeply


redrawn the capex landscape in the past decade.Communications ser- vices and IT companies have become the largest source of capital invest- ment in themarket, with an expected $224.4bn in 2021,which is 146.4% higher than in 2013, accord- ing to Citi figures. In the same period, energy companies in oil and gas halved their capex budget from $160.7bn to $81.4bn.


Politicalpush Governments have been accommo- dating this dawning investment cycle and betting on investment to trigger the economic recovery. The Indian government has


increased budgeted public invest- ment by 26.2% for its 2021/2022 fiscal year, also in the perspective of mobilising private investment too. The UK government intro- duced a super deduction on pri- vate investment that it considers “the most generous” business tax break in UK history. “We need to unlock that invest-


ment; we need an investment-led recovery,” the UK’s chancellor of the exchequer, Rishi Sunak, said in the House ofCommons while announc- ing the budget for 2021. Policy-makers are designingnew


investmentincentives withoneeyeon economicrecovery,andthe otheron their political agenda.TheEU approved€6.1bn in state aid tohelpthe EuropeanEVbattery industry catchup withdominantAsian playersand unlock private investmentworth


21


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72  |  Page 73  |  Page 74  |  Page 75  |  Page 76  |  Page 77  |  Page 78  |  Page 79  |  Page 80  |  Page 81  |  Page 82  |  Page 83  |  Page 84  |  Page 85  |  Page 86  |  Page 87  |  Page 88  |  Page 89  |  Page 90  |  Page 91  |  Page 92  |  Page 93  |  Page 94  |  Page 95  |  Page 96