Eren sells Total control of clean energy joint venture; Irish ETF assets pass €1trn; Indonesia offers EV incentives

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Eren sells Total control of clean energy joint venture

TotalEnergies [TTE.PA] will acquire the remaining 71% shares of clean energy producer Total Eren from Eren Groupe for €1.5bn ($1.66bn), as part of a pledge to spend $5bn this year on low-carbon energy. The acquisition gives TotalEnergies full ownership of Total Eren's 3.5 gigawatts of wind, solar and hydropower assets. Eren will invest part of the proceeds into the production of renewable gas and green hydrogen.

Chipmakers make onshoring investments

Taiwan Semiconductor Manufacturing Co (TSMC) [TSM] is planning a $2.87bn investment into an advanced chip packaging plant in Taiwan, according to CNBC, as it seeks to capitalise on demand for artificial intelligence (AI). Germany’s government plans to invest €20bn ($22bn) to support its local semiconductor production, but GlobalFoundries [GFS] CEO Thomas Caulfield has criticised planned subsidies to TSMC, saying they benefit “one dominant player disproportionately”.

Irish ETF assets pass €1trn

Ireland is emerging as a dominant locale in Europe’s booming ETF industry, as assets managed by funds domiciled in the country pass €1trn for the first time. This gives Ireland 68% of Europe’s €1.5trn ETF market, according to Morningstar data reported by the FT, with Luxembourg the next largest centre at €295bn. Irish ETFs have grown 160% since the end of 2018.

Indonesia offers EV incentives

Indonesia’s government is attempting to woo electric vehicle makers, with meetings ongoing with Tesla [TSLA] and BYD [1211.HK]. Incentives will be benchmarked against those offered by Vietnam and Thailand, according to Luhut Pandjaitan, Indonesia’s coordinating minister of maritime affairs and natural resources. Data from the China Automotive and Technology Research Center shows that BYD extended its lead over Volkswagen [VOW.DE] as China’s most popular carmaker between April and June.

The end of free money: How to adjust to the old normal

Future cash flows are no longer as valuable as they were during the pandemic, so quality companies with steady earnings and current cash flow have come into sharper focus. However, the fact that value stocks have been outperforming their growth counterparts doesn’t mean there shouldn’t be room for growth stocks — companies that can generate earnings growth in the future — in portfolios.