Trump and environment



Trump is picking on California, car emission standards, rolling back on water standards.

Till Trump is out of White House the environment is likely to be second best ?


Stutes – I can’t see it making much difference to be honest. Despite the holier than though approach to the environment on this side of the pond, they are all paying lip service to the environment anyway.
In Europe, for every electric car sold people are now buying 37 SUVs of all categories of drive source.
That means realistically.

  1. Everyone is moving to a bigger and heavier vehicle that will produce more CO2 – shock, what they are supposed to be cleaner? – well even the hybrids are measured to be less CO2 efficient than the latest EuroNCAP diesel models.
  2. Using more metal to build bigger and heavier cars
  3. Most of these vehicles are 30%+ bigger than their counterparts and are taking up more road space, traffic will inherently move slower due to congestion and more fuel will be burnt.

JMAT is a pretty tricky one to forecast from here, because no one really knows the true future take up rate of battery driven only vehicles.
If it takes off really fast then JMAT is in big trouble because 70+% of its business is dependent on CATs for either diesel or petrol. It is then doubtful that JMAT will be able to compensate for the value loss on each CAT with a supply of battery materials which will only be a bit part piece of the new puzzle. It will also be more competitive and there is no guarantee that eLNO will achieve the take up rate when the vast majority of electric cars are using the other battery technique (BetaMax or VHS perhaps?).

I sold out at 3100 and took a profit after a fairly short term hold. It was pure freak that the virus has had today’s effect – does one buy back in?
Well I did on IHG and Burberry, but not JMAT – not sure where to go with this one, so sitting on the fence.