The Australian Government’s Climate Policy Is Hurting Its Currency, Analyst Says

The Australian dollar could find long term relief from cyclical downturns if the country’s government decides to take climate change seriously, according to ABN Amro Bank NV.

The Dutch bank expects the country’s focus to turn toward environmental policies after wildfires wreak havoc on the economy and hurt the currency. A switch to a greener economy could alter the fundamental performance of the Aussie, making it less driven by global risk sentiment, says its senior foreign-exchange strategist Georgette Boele.

“The character of the Australian dollar could change if the government makes climate policy and reaching the Paris Agreement more of a priority,” she said in a note to clients. “The Australian dollar will probably become less cyclical, less commodity-driven, and less dependent on the state of the Chinese economy and more driven by the state of the domestic economy.”

The Aussie dollar has been hurt by the spread of the coronavirus, which is seen as impacting Chinese demand for Australian commodities. It is among the worst-performing Group-of-10 currencies this year, leading losses alongside fellow risk-sensitive currencies the New Zealand dollar and Norwegian krone, having dropped more than 4% in 2020.

While ABN Amro notes the current Australian administration remains uninterested in shifting climate policies, public opinion is changing after the bush fires. There’s also the possibility the government could be forced via litigation to meet climate policy goals as in the Netherlands, Boele said.

Yet even if the Australian economy does become more environmentally sustainable, the transition would be a tough one in the short term for the Aussie.

A sizeable cut in coal, LNG and agricultural exports would reduce carbon dioxide emissions from mining and transport but would also result in lower export revenues, Boele said.

“The results of investment and lower CO2 emissions would only become visible over time — years or even decades,” she said. “So in the coming years the fundamentals of the Australian economy will probably deteriorate, and this could weigh on the Australian dollar.”

–With assistance from Charlotte Ryan.

The Australian Government’s Climate Policy Is Hurting Its Currency, Analyst Says

The Australian dollar could find long term relief from cyclical downturns if the country’s government decides to take climate change seriously, according to ABN Amro Bank NV.

The Dutch bank expects the country’s focus to turn toward environmental policies after wildfires wreak havoc on the economy and hurt the currency. A switch to a greener economy could alter the fundamental performance of the Aussie, making it less driven by global risk sentiment, says its senior foreign-exchange strategist Georgette Boele.

“The character of the Australian dollar could change if the government makes climate policy and reaching the Paris Agreement more of a priority,” she said in a note to clients. “The Australian dollar will probably become less cyclical, less commodity-driven, and less dependent on the state of the Chinese economy and more driven by the state of the domestic economy.”

The Aussie dollar has been hurt by the spread of the coronavirus, which is seen as impacting Chinese demand for Australian commodities. It is among the worst-performing Group-of-10 currencies this year, leading losses alongside fellow risk-sensitive currencies the New Zealand dollar and Norwegian krone, having dropped more than 4% in 2020.

While ABN Amro notes the current Australian administration remains uninterested in shifting climate policies, public opinion is changing after the bush fires. There’s also the possibility the government could be forced via litigation to meet climate policy goals as in the Netherlands, Boele said.

Yet even if the Australian economy does become more environmentally sustainable, the transition would be a tough one in the short term for the Aussie.

A sizeable cut in coal, LNG and agricultural exports would reduce carbon dioxide emissions from mining and transport but would also result in lower export revenues, Boele said.

“The results of investment and lower CO2 emissions would only become visible over time — years or even decades,” she said. “So in the coming years the fundamentals of the Australian economy will probably deteriorate, and this could weigh on the Australian dollar.”

–With assistance from Charlotte Ryan.

London Launch: The Winter Forest

Festive fun is a term that encompasses Christmas. It means warming drinks, log fires, delicious seasonal food and a lot of fairy lights. The winter forest is no different as this winter wonderland is set to a backdrop of snow-covered pine trees and festive cheer.

Image: The Winter Forest

The Winter Forest

Broadgate Circle, London, EC2M 2QS

Nearest Tube: Liverpool Street

Opening hours: Open until the 20^th December

 

Following the launch of their brand new building in Finsbury Avenue Square, Broadgate promises to be more Christmassy than ever. With the opening of Everyman Broadgate, you can watch the latest releases and Christmas films until your heart is content. And if that doesn’t get you into the spirit, head to the Fever-Tree Winter Lodge. It is open every day and is the perfect spot for an afterwork drink – you can even join a gin masterclass.

Image: The Winter Forest

 

There is a quiz night every Monday up until the 16^th December as well as a whole host of live music performances. See the upcoming show here. This year the Winter Forest have teamed up with the mental health charity, Mind in the City, Hackney and Waltham, so book onto as many events as you like to raise funds. There are some particularly great classes about self-care, including top tips on how to get a better night’s sleep and to understand our stresses better.

Finally, it wouldn’t be Christmas without the option to make your own floral wreath. There are a number of workshops timetabled to create festive floral table decorations, centerpieces, as well as wreathes for your front door. The Winter Forest promises to be magical place full of festive cheer and spirit and if you really want to meet father Christmas this is the place to be, as he will be gracing Broadgate with his presence from time to time!

  

Will you be heading to The Winter Forest? Let us know what you thought of it in the comments below! If you like our posts, you’ll love our Instagram.

 

The post London Launch: The Winter Forest appeared first on London Living.

London Launch: The Winter Forest

Festive fun is a term that encompasses Christmas. It means warming drinks, log fires, delicious seasonal food and a lot of fairy lights. The winter forest is no different as this winter wonderland is set to a backdrop of snow-covered pine trees and festive cheer.

Image: The Winter Forest

The Winter Forest

Broadgate Circle, London, EC2M 2QS

Nearest Tube: Liverpool Street

Opening hours: Open until the 20^th December

 

Following the launch of their brand new building in Finsbury Avenue Square, Broadgate promises to be more Christmassy than ever. With the opening of Everyman Broadgate, you can watch the latest releases and Christmas films until your heart is content. And if that doesn’t get you into the spirit, head to the Fever-Tree Winter Lodge. It is open every day and is the perfect spot for an afterwork drink – you can even join a gin masterclass.

Image: The Winter Forest

 

There is a quiz night every Monday up until the 16^th December as well as a whole host of live music performances. See the upcoming show here. This year the Winter Forest have teamed up with the mental health charity, Mind in the City, Hackney and Waltham, so book onto as many events as you like to raise funds. There are some particularly great classes about self-care, including top tips on how to get a better night’s sleep and to understand our stresses better.

Finally, it wouldn’t be Christmas without the option to make your own floral wreath. There are a number of workshops timetabled to create festive floral table decorations, centerpieces, as well as wreathes for your front door. The Winter Forest promises to be magical place full of festive cheer and spirit and if you really want to meet father Christmas this is the place to be, as he will be gracing Broadgate with his presence from time to time!

  

Will you be heading to The Winter Forest? Let us know what you thought of it in the comments below! If you like our posts, you’ll love our Instagram.

 

The post London Launch: The Winter Forest appeared first on London Living.