Swiss bank invites investors to bet on US election outcome |
A private Swiss bank invented a smart financial tool. Julius Baer is selling structured notes with one year maturity whose yields depend on the outcome of the US presidential election in 2020. The exotic financial instrument is sure to arouse interest among investors. Logically, prospects of large US companies will hinge on that political party which will win the forthcoming election. These structured notes are pegged to two baskets of US stocks. So, yields of such structured notes are linked directly to the performance of US stocks. In other words, investors may choose the Republican-friendly portfolio if they are betting on the victory of Donald Trump or someone else from his party. Alternatively, investors are free to bet on the Democrats. Julius Baer’s Democrat basket includes companies from the energy and healthcare sectors like Ford, Walmart, McDonald's, Coca-Cola, SunPower, and Exelon. The Republican portfolio is tied mainly to hi-tech and financial stocks such as Alphabet (Google’s parent company), Amazon, Citigroup, Visa, American Express, Chevron, and ConocoPhilips. If the prediction is made right, an investor will profit from rising stocks in the appropriate portfolio.
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World's longest gas pipelines |
The largest natural gas fields are located in hard-to-reach places. Therefore, with the help of pipelines, gas transportation is carried out far quicker.
In our article, you will find out about pipelines which are over several thousand kilometers in length
Natural gas is used as a source of energy for cooking, heating, electricity generation as well as producing various oils and synthetic chemicals. In addition, it reduces dependence on heavily polluting coal and plays an important role in the development of gas-consuming regions.
Nord Stream Pipeline – 1,224 km
It is the longest subsea gas pipeline in the world which connects Russia to the countries of Western Europe, running across the Baltic Sea to Germany (from Vyborg to Greifswald).
The annual capacity of two strings is 55 billion cubic meters of gas. The first string of Nord Stream was put into service in 2011, while the second one – in 2012. Nord Stream 2, a new gas export pipeline, similar in the route, length, and projected capacity to the one in operation is expected to enter service in the near future.
Yamal-Europe Pineline - over 2,000 km
Yamal-Europe pipeline is one of two Russian gas pipelines included in the top ten. It runs across four countries: Russia (402 km), Belarus (575 km), Poland (683 km), and Germany. The gas pipeline constructed in 1999 ensures an expanded uninterrupted supply of Russian gas to Europe, reaching an annual design capacity of 32.9 billion cubic meters in 2006.
The trunkline includes 14 compressor stations. The pipeline runs from the Torzhok gas transmission hub in the Tver Oblast. The westernmost point is the Mallnow compressor station near Frankfurt an der Oder.
Transmed – 2,475 km
Thanks to the Trans-Mediterranean pipeline, natural gas delivery stretches from Algeria and other regions of North Africa via Tunisia to Sicily and thence to northern Italy. An extension of the pipeline delivers gas to Slovenia. A 96-kilometer trunkline from Sicily to Tunisia runs across the Mediterranean Sea at a water depth of 1,500 meters.
The first phase of the pipeline was constructed in 1978-1983, while the second phase - in 1994. The current capacity of the Trans-Mediterranean pipeline exceeds 30 billion cubic meters of natural gas per year.
Iran-Turkey Pipeline – 2,577 km
The pipeline running from Tabriz via Erzurum to Ankara was initially supposed to be part of the Pars pipeline and connect Iran's South Pars gas field to European consumers. However, sanctions impeded the implementation of its construction.
Its current capacity is 14 billion cubic meters per year. So, Iran has an opportunity to enter the European market by 2020, exporting up to 20 billion cubic meters of natural gas per year (with a total export capacity of 35 billion cubic meters per year).
Rockies Express (REX) - 2,702 km
The giant Rockies Express high-pressure natural gas pipeline launched in 2009 consists of three sections running parallel to one another. It passes through eight states from the Rocky Mountains of Colorado to Ohio.
REX constructed in 2009 is the second largest gas export pipeline in North America (after Tennessee Gas Pipeline). Its capacity is 37 billion cubic meters of gas per year.
Bolivia-Brazil Pipeline - 3,150 km
Bolivia-Brazil is the longest natural gas pipeline in South America. It consists of two stretches with a length of 1,418 km and 1,165 km put into service in 1999–2000.
Annually, about 11 billion cubic meter of natural gas is transported from Bolivia to the south-east regions of Brazil.
Tennessee Gas Pipeline - 3,300 km
The Tennessee pipeline was the first main natural gas pipeline in the United States.
This pipeline constructed in 1944 consists of five stretches delivering natural gas from the Gulf of Mexico via Arkansas, Kentucky, Tennessee, Ohio, and Pennsylvania to West Virginia, New Jersey, New York, and New England. Its annual capacity is up to 22-25 billion cubic meters of gas.
Urengoy-Uzhhorod Pipeline – 4,451 km
This main export gas pipeline was constructed in 1983 to supply natural gas from the northern part of Western Siberia to the countries of Central and Western Europe.
The gas pipeline split into three branches crosses the Ural Mountains and more than 600 rivers including the Ob, Volga, Don, and Dnieper. It has 42 compressor stations. Nine of them are located in Ukraine which accounts for 1,160 km of the trunkline. The actual capacity of the pipeline is 28 billion cubic meters of natural gas per year.
Central Asia-Center Gas Pipeline System (CAC) – 5,000 km
The Central Asia-Center gas pipeline is used to transit natural gas from Turkmenistan via Uzbekistan, Kazakhstan, and Russia to non-CIS countries.
The cooperation of these states increased the capacity (up to 80 billion cubic meters of gas per year) and enhanced the reliability of the CAC.
The first section of the pipeline was launched back in 1967. By 1985, the CAC was a multi-line system pipeline system running across the largest rivers of the region (Amu-Darya, Volga, Ural, Oka).
Turkmenistan-China Gas Pipeline - over 7 thousand km
The giant Turkmenistan-China pipeline system makes it possible to transport natural gas from Central Asia via Uzbekistan and Kazakhstan to China.
This trunkline was put into service in 2009. Its current capacity is about 65 billion cubic meters of natural gas per year. The pipeline supplies gas extracted in the fields of Southern Yoloten-Osman and Dovletabad in Turkmenistan.
East-West Gas Pipeline– 8,704 km
China's East-West pipeline runs across almost the entire country connecting the Tarim Basin in Xinjiang Uygur Autonomous Region and Turkmenistan with the regions around the Yangtze River Delta and the Pearl River Delta.
This is the biggest construction project in China's gas industry: it includes one trunkline and eight branch lines passing through various natural areas. Four lines of the pipeline makes it possible to transport about 30 million cubic meters of natural gas per year.
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EastMed to pose challenge to Nord Stream 2 |
The outlook for Russia-backed Nord Stream 2 is uncertain causing controversy among EU nations. Only the Russian side assures the community that the gas pipeline project will be launched as scheduled. Meanwhile, the thorny issue of regulations against Nord Stream 2 prompted some EU countries to search for alternative supply routes and suppliers. In the first days of 2020, Greece, Israel, and Cyprus settled a deal for the construction of a gas pipeline aimed to deliver gas from the Eastern Mediterranean to Europe. The EastMed line is viewed as an alternative gas source and competitor of Nord Stream 2. The deal was signed in Athens by the energy ministers of Greece, Israel, and Cyprus. The high-level ceremony was attended by the Prime Ministers of Greece and Israel and the President of Cyprus. The project has been under development for a few years. So, former Greece’s energy ministers were also invited as they were in charge of the project at the early stages. EastMed is due to supply gas from the Leviathan field in Israel and the Aphrodite gas wells in Cyprus to the continental Europe. Investment in the project is estimated at EUR 6 billion. The pipeline of 1,900 kilometers will transfer nearly 10 billion cubic meters a year, though its annual capacity could be expanded to 20 billion cubic meters.
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EastMed to pose challenge to Nord Stream 2 |
The outlook for Russia-backed Nord Stream 2 is uncertain causing controversy among EU nations. Only the Russian side assures the community that the gas pipeline project will be launched as scheduled. Meanwhile, the thorny issue of regulations against Nord Stream 2 prompted some EU countries to search for alternative supply routes and suppliers. In the first days of 2020, Greece, Israel, and Cyprus settled a deal for the construction of a gas pipeline aimed to deliver gas from the Eastern Mediterranean to Europe. The EastMed line is viewed as an alternative gas source and competitor of Nord Stream 2. The deal was signed in Athens by the energy ministers of Greece, Israel, and Cyprus. The high-level ceremony was attended by the Prime Ministers of Greece and Israel and the President of Cyprus. The project has been under development for a few years. So, former Greece’s energy ministers were also invited as they were in charge of the project at the early stages. EastMed is due to supply gas from the Leviathan field in Israel and the Aphrodite gas wells in Cyprus to the continental Europe. Investment in the project is estimated at EUR 6 billion. The pipeline of 1,900 kilometers will transfer nearly 10 billion cubic meters a year, though its annual capacity could be expanded to 20 billion cubic meters.
Read more: https://www.mt5.com/forex_humor/image/45745
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Luxury holidays for wealthy Russians |
The Association of Tour Operators of Russia, or ATOR, created a list of the most expensive popular holiday destinations among Russian people in 2019. Despite economic problems in Russia, its citizens continue to go on vacation setting records of their holiday package prices. The list of the most costly journeys includes tours worth around $60 thousand to $190 thousand. According to the association, wealthy Russian residents prefer to spend their holidays exclusively abroad.
Winter trip to Seychelles and UAE
The 18 days winter holiday in the Seychelles and the UAE for a family of four is the most expensive trip on this list. The tour cost the family above $190 thousand, or $47.1 thousand per person. The price included accommodation in luxury hotels such as North Island, Four Seasons Resort Seychelles, and the Burj Al Arab, a helicopter transfer to the Seychelles, and an individual ‘Desert safari’ tour. Space Travel organized the journey.
Summer holidays in Italy
Summer holidays on the Italian island of Sardinia is the second most expensive tour on the list. A group of six people spent around $174 thousand, or $27.6 thousand per person, for 19 days at a 5 star hotel on the island and the airport/hotel transfers. Remarkably, the tour did not include the cost of the flight. It was organized by PAC Group.
Summer trip to Turkey
The tour to Turkey is ranked third among the most expensive destinations for wealthy Russians. It was organized by Coral Travel. The summer trip for a family of seven cost tourists around $140 thousand, or $19.5 thousand per person. The family stayed in MAXX Royal Kemer Resort. The air tickets were not included in the price of the journey.
New Year tour to Maldives
The New Year trip to the Maldives is fourth on the list. The family of eight spent around $130 thousand, or $16.3 thousand per person, on the tour. The AZUR Air charter brought the travelers to the island. The price included nine nights at a luxury resort Soneva Fushi. ANEX Tour organized the trip to the Maldives.
Winter holidays in Crans-Montana
The ski holidays in Crans Montana, Switzerland, is fifth on the list of the most expensive destinations. The mountain skis enthusiasts spent around $122 thousand, or $29.3 thousand per person, on their winter trip to Crans Montana. The tour, which included staying at a 5 star hotel, was organized by the PAC Group tour operator.
Romantic trip to US
The romantic trip to the US is ranked sixth on the ATOR’s list. It cost a couple above $105 thousand, or $52 thousand per person. The tour included back-to-back first class air tickets, accommodation at Mandarin Oriental in New York, a personal driver and the Mercedes S-Class, tickets to opera and musicals, a helicopter tour, a private jet trip to a car show in Detroit, and shopping with a celebrity stylist. This journey was organized by the Space Travel tour operator.
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Метки: #photo_news |
Luxury holidays for wealthy Russians |
The Association of Tour Operators of Russia, or ATOR, created a list of the most expensive popular holiday destinations among Russian people in 2019. Despite economic problems in Russia, its citizens continue to go on vacation setting records of their holiday package prices. The list of the most costly journeys includes tours worth around $60 thousand to $190 thousand. According to the association, wealthy Russian residents prefer to spend their holidays exclusively abroad.
Winter trip to Seychelles and UAE
The 18 days winter holiday in the Seychelles and the UAE for a family of four is the most expensive trip on this list. The tour cost the family above $190 thousand, or $47.1 thousand per person. The price included accommodation in luxury hotels such as North Island, Four Seasons Resort Seychelles, and the Burj Al Arab, a helicopter transfer to the Seychelles, and an individual ‘Desert safari’ tour. Space Travel organized the journey.
Summer holidays in Italy
Summer holidays on the Italian island of Sardinia is the second most expensive tour on the list. A group of six people spent around $174 thousand, or $27.6 thousand per person, for 19 days at a 5 star hotel on the island and the airport/hotel transfers. Remarkably, the tour did not include the cost of the flight. It was organized by PAC Group.
Summer trip to Turkey
The tour to Turkey is ranked third among the most expensive destinations for wealthy Russians. It was organized by Coral Travel. The summer trip for a family of seven cost tourists around $140 thousand, or $19.5 thousand per person. The family stayed in MAXX Royal Kemer Resort. The air tickets were not included in the price of the journey.
New Year tour to Maldives
The New Year trip to the Maldives is fourth on the list. The family of eight spent around $130 thousand, or $16.3 thousand per person, on the tour. The AZUR Air charter brought the travelers to the island. The price included nine nights at a luxury resort Soneva Fushi. ANEX Tour organized the trip to the Maldives.
Winter holidays in Crans-Montana
The ski holidays in Crans Montana, Switzerland, is fifth on the list of the most expensive destinations. The mountain skis enthusiasts spent around $122 thousand, or $29.3 thousand per person, on their winter trip to Crans Montana. The tour, which included staying at a 5 star hotel, was organized by the PAC Group tour operator.
Romantic trip to US
The romantic trip to the US is ranked sixth on the ATOR’s list. It cost a couple above $105 thousand, or $52 thousand per person. The tour included back-to-back first class air tickets, accommodation at Mandarin Oriental in New York, a personal driver and the Mercedes S-Class, tickets to opera and musicals, a helicopter tour, a private jet trip to a car show in Detroit, and shopping with a celebrity stylist. This journey was organized by the Space Travel tour operator.
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Yuan is rising as China’s Central Bank stops intervention |
The long-awaited signing of the phase one trade deal is almost completed. Obviously, the People’s Bank of China has done its best to comply with the requirements set by the US. In particular, China’s central bank has stood back from intervention in yuan’s exchange rate at the beginning of this year ahead of the anticipated signing of the phase one trade agreement with the US. Previously, Washington accused China of manipulating its currency exchange rate but removed it from the list of currency manipulators just two days before trade negotiations. Today, the renminbi’s value is rapidly growing as the Chinese regulator refrained from any interventions. The trade deal includes a clause prohibiting any kinds of currency manipulations form the regulatory bodies. Experts think that this part of the agreement will be largely based on the principles of the USMCA - United States-Mexico-Canada Agreement - which requires its participants to “refrain from competitive devaluation.” It also helps increase transparency and enhance information exchange on government’s transactions, including the ones in the foreign exchange market. Washington is pleased with China’s decision. However, there is no guarantee that China’s central bank will stay firm with its decision not to intervene since its national currency is soaring. Beijing does not want the yuan to appreciate too much as it may affect its exporters, especially when the imposed US tariffs are still in place.
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Top 7 mind-boggling scientific discoveries in 2019 |
It is fair to say that science is a measurement of progress. Every year humans make amazing paradigm-shattering revelations and shed a light on previously unknown things. There are no minor or major discoveries in science: each of them is important. Science can be even compared to a fancifully embroidered pattern where each thread is a part of a more complex picture. Experts at Naked Science, online science radio show and podcast, rounded up 7 major breakthroughs of 2019. See them in our photo gallery
NASA founds evidence of ocean fossils on Mars
The exploration of the Red Planet began in late 2018 and continued in 2019. On December 18, 2018, NASA successfully landed its InSight robot on the surface of Mars. It was designed to drill the soil to a depth of 5 m. The operation was on the verge of failure when the robot detected an electrically conductive layer with a thickness of 4 km. According to preliminary estimates, this layer contains water with dissolved salts. Scientists believe that Insight has come across the evidence of a deep subsurface sea. The simplest organism usually thrives in places with such conditions.
NASA detects atomic oxygen on Mars
According to scientists, during the year the amount of oxygen in the Martian atmosphere changes significantly: in spring it increases sharply, and in winter it falls. This phenomenon can be explained only by the fact that there are some kinds of life forms on the planet. What is more, perchlorate, a special substance, can be found in abundance in the Martian soil. When it decomposes, O2 is released. Microorganisms cannot live on the surface of the planet; they hide in a depth of 1-2 m. Scientists plan to find them using deep drilling. For now, the soil of the Red Planet is drilled only by 35 cm, and it is very difficult to identify any forms of life there.
Scientists detect first-ever neutron star-black hole collision
The unusual phenomenon was recorded by scientists in August 2019. They detected a fusion of bodies weighing about 5.0 and 2.5 times the mass of the Sun. Scientists presumed that the first object can only be a black hole because a usual cosmic body is unable to produce such a signal. The second body in the collision, weighing about 2.5 solar cells, is likely to be a neutron star, an object with a diameter of 25 km. Scientists managed to record this phenomenon at a distance of 900 million light-years from Earth with the help of the LIGO gravitational interferometer. This discovery was of great importance to astronomical society.
Astronomers announce discovery of first interstellar comet
One of the major astronomical discoveries was made in Russia. In August 2019, amateur astronomer Gennady Borisov, an engineer from the Crimean Astrophysical Observatory, detected the first interstellar comet in the history of astronomy and named it 2I/Borisov. Having analyzed its orbit and trajectory of movement, scientists conceived that this comet did not belong to the Solar System. The speed of 2I/Borisov in relation to the Sun is about 30 km/s. Such a speed is considerably higher than the third cosmic speed at which the celestial body left the Solar System.
Scientists capture first-ever image of black hole’s silhouette
Scientists distinguish the two terms: the silhouette of the black hole and the black hole itself. Apparently, this supermassive monster cannot be photographed because of the huge distance. Despite their humongous sizes, black holes never show their faces. The black holes can make themselves visible by spewing bright jets of charged particles. Plus, they are located in another galaxy, 55 million light-years from Earth. The gravity of a black hole attracts gas and dust from the surrounding galaxies but the matter cannot immediately fall into the void. Before being consumed by the black hole, a rotating disk of gas and dust is formed. This disk is heated to several thousand degrees, it emits huge volumes of radiation that the Event Horizon Telescope spotted.
Geneticists discover unknown ancestor of Homo sapiens
According to new scientific data, some people obtain genes from other human species. Those genes derived from a cross with a yet unknown species of ancient humans. Scientists cannot answer where these ancestors lived and who they were. The research states that all Caucasians have the genes of Neanderthals and Mongoloids, while the indigenous people of America have the Denisovan genes. The new species of humanity was discovered in 2011. Geneticists suggest that the new species of Homo sapiens is related to both Denisovans and Neanderthals.
Scientists develop effective Ebola vaccine
In 2019, the Ebola vaccine got official approval for conditional marketing authorization. Notably, the Ebola virus disease is recognized as one of the most dangerous diseases of our time. The Ebola outbreak occurred in 2014-2015. Scientists have faced many obstacles while trying to develop a vaccine. For a long time, they failed to attain an effective drug. In 2019, they finally succeeded. The vaccine is called Ervebo and it is widely used on the African continent.
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Yuan is rising as China’s Central Bank stops intervention |
The long-awaited signing of the phase one trade deal is almost completed. Obviously, the People’s Bank of China has done its best to comply with the requirements set by the US. In particular, China’s central bank has stood back from intervention in yuan’s exchange rate at the beginning of this year ahead of the anticipated signing of the phase one trade agreement with the US. Previously, Washington accused China of manipulating its currency exchange rate but removed it from the list of currency manipulators just two days before trade negotiations. Today, the renminbi’s value is rapidly growing as the Chinese regulator refrained from any interventions. The trade deal includes a clause prohibiting any kinds of currency manipulations form the regulatory bodies. Experts think that this part of the agreement will be largely based on the principles of the USMCA - United States-Mexico-Canada Agreement - which requires its participants to “refrain from competitive devaluation.” It also helps increase transparency and enhance information exchange on government’s transactions, including the ones in the foreign exchange market. Washington is pleased with China’s decision. However, there is no guarantee that China’s central bank will stay firm with its decision not to intervene since its national currency is soaring. Beijing does not want the yuan to appreciate too much as it may affect its exporters, especially when the imposed US tariffs are still in place.
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5 factors to shape oil market in 2020 |
2019 comes to an end and experts are busy making predictions for 2020. According to analysts, the oil market will face a lot of changes in 2020. They have outlined 5 factors that may have an impact on oil prices and the global energy market as well. Experts are sure these factors will define the development of the oil market this year.
Debts of US shale companies
2020 may turn out to be an unmitigated disaster for the US shale companies. Over the past few years, the shale corporations have been actively developing thanks to cheap loans. Nevertheless, sooner or later the moment to pay off the debts would come. And it did. However, the companies do not have extra funds to cover the debt. Overall, the shale companies need to repay about $41 billion to their creditors. Those who cannot do it will become bankrupts. In its turn, it may lead to a wave of defaults. Since 2015, about 200 shale companies in the United States have declared bankruptcy. Thus, presently, many companies are looking for funds to pay debts but it is not easy to find new lenders.
Expansion of electric vehicle market
Experts believe that in 2020 the electric car market will take a step forward. This innovative type of car is getting more and more popular and in some countries, electric cars are successfully replacing diesel cars. Environmentally friendly cars are slowly but surely conquering the world market. According to preliminary estimates, the number of available electric vehicle models may increase to 175 in 2020. Production and sales of electric vehicles will grow. Experts reckon that in the nearest future innovative cars will take the lion's share of the market.
Climatic change
Nowadays, the climate is changing rapidly. In 2020, these tendencies will only deepen. Rising global temperatures and more frequent natural disasters will put significant pressure on the oil and gas industry. A number of leading European companies are trying to prevent the negative effects of climate change. For example, at the end of 2019, the European Investment Bank stopped financing oil, gas and coal production, and Goldman Sachs reduced funding for coal mining and Arctic oil.
Excess supply of hydrocarbons
In 2020, the demand for coal, gas (CNG), and oil in the world market may weaken due to their oversupply. Even OPEC+ countermeasures did not make a change. Excess production of CNG is recorded in the US. The global natural gas market is also full of such resources. Spot prices for natural gas continue to fall. That is why analysts predict the total reduction of deliveries. Besides, renewable energy sources are stepping on the toes of traditional fossil fuel sources. Analysts assume that soon renewable sources of energy will fully replace the old ones.
Rise in geopolitical risks
The oil market can be hardly imagined without geopolitical risks. The military conflict in the Middle East and its effect on the oil market is a striking example of their coexistence. The confrontation triggered sharp fluctuations in oil prices. In 2020, in addition to the dispute between the US and Iran, the oil market will be affected by the civil war in Libya and the fragile peace in Venezuela. The new year has just started. So, who knows what pleasant and not so pleasant surprises it will bring for the market.
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Russia and Turkey launch Turkish Stream pipeline |
Russia and Turkey officially launched the Turkish Stream pipeline. Vladimir Putin and Recep Tayyip Erdogan summarized the results of the pipeline construction that took 5 years to build. The two leaders turned a symbolic valve in the ceremony. Presently, the line carries Russian natural gas to Turkey and Europe across the Black Sea. Serbian President Aleksandar Vucic and Prime Minister of Bulgaria Boyko Borissov also attended the opening ceremony as their countries took part in the construction of the Turkish Stream. Moreover, Bulgaria was the first European country to directly receive Russian gas by means of the pipeline bypassing the European gas network. The TurkStream runs along the bottom of the Black Sea extending further through the Turkish territory to its border with contiguous countries. The first pipeline will supply Turkey while the second will deliver gas to Europe. Bulgaria already receives natural gas. Hungary, Slovakia, and Serbia are waiting their turn for gas delivery. However, it is too early to comment on the outcome of this cooperation. Turkey provided itself with several gas pipelines last year and planned a new project as well. As a result, the country will have the power to control gas suppliers and possess enormous amounts of gas as well.
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Top 3 real estate markets in Eastern Europe that can bring you money |
Countries in Eastern Europe are characterized by strong GDP growth and positive macroeconomic data. A lot of Russian investors sink money in this region. Forbes has chosen three real estate markets, including the Bulgarian, Romanian, and Slovak one. In 2017, the GDP growth in Bulgaria was 3.8%, in Romania – 7.3%, and in Slovakia – 3.4%. In Germany and France GDP added just 2.2% and 1.8% respectively. In the article, we will tell you how much money you can earn if you have real estate in Eastern Europe.
Slovakia
This country attracts investors by high liquidity of real estate, fairly cheap square meter, the abundance of ski resorts, and a similar mentality.
The profitability of residential real estate varies from 5.4% in the city centers to 5.3% on the outskirts.
According to the National Bank of Slovakia, during the last year, the value of the residential real estate increased by 4.8% to €1,396 per square meter. A one-bedroom apartment can be rented for €447–576 a month. However, there are few international companies in Slovakia and Bratislava is not very popular among tourists.
Offices’ price ranges from €1,000 to €4,000 per square meter depending on a city district. The average monthly income from the office property amounts to €15.35 per square meter. The country offers 1.72 million square meters of office space. Besides, 250,000 square meters are under construction. The ratio of vacant offices is just 6.18%.
The commercial property of Slovakia has strong scores. There are around 1.76 million square meters of active retail space. That is more than the average around Eastern Europe. Moreover, the market continues developing. Another 130 thousand square meters is under construction. The price of a square meter goes from €1,000 to €4,000 whereas a rent for a square meter totals €41 in the best locations, €15–38,5 – in shopping centers, and €8,25 — in less popular places.
Romania
During the last two years, economists have been logging significant economic growth, higher wages, and relatively low interest rates. Of course, this stimulates investors’ interest in residential real estate. In Romania, real estate cost is rather low in comparison to other European countries. A square meter ranges from €1,169 to €1,500. It is possible to rent a one-bedroom apartment in the city center for €284. On the outskirts, the price is just €207. In Bucharest, a rental yield of a house or an apartment is 6.1%.
In 2018, the office space added 150 thousand square meters. Property developers are planning to build another 650 thousand square meters of office space. The number of vacant spaces is constantly reducing. In summer 2018, their ratio was just 8% that is 3% smaller than in the previous year. The average price of a square meter in Bucharest is €2,000 whereas the rent is €10–18 per square meter.
In 2018, 189 thousand square meters of commercial property were built in Romania. This year, 250 thousand square meters are planned to be completed. Vacant offices total less than 10%. This is a very good reading. A square meter of office space in Bucharest can be bought by €1,000–3,500 and rented out by €55–65. In other cities, a square meter costs €15-40.
Bulgaria
Bulgaria attracts foreign investors by the lowest tax on real estate in Europe. It is just 0.15% of the cost. Investors’ income from residential real estate can total 5.36% in the city centers and 5.86% on the outskirts. During the year, new housing rose by 7.2% or 3.9% on the inflation-adjusted base. In the previous year, the prices increased at the same rate.
The average price of a square meter is €1,663 whereas rent goes from €186 to €246. Almost zero interest rate of bank deposits encourages people to invest in real estate. However, the construction pace is rather low despite high demand.
The price for office space in Sofia varies from €800 to €3,000 per square meter. There are 2 million square meters of office space whereas 434 000 square meters are still under construction. Only 9% of offices are vacant. At the same time, over the year, indicators have not changed much. Thus, the real estate market remains quite stable.
Commercial property in Sofia ranges from €1,000 to €5,000 per square meter. The price depends on the location. In the best places, the average price of a square meter totals €55. In the less profitable areas, a square meter costs €39. All around the country, only 40,000 square meters are under construction whereas the space in use is ten times larger. There is only 12% of the vacant area. This sector is also stable.
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Japan's manufacturing sector on verge of collapse |
At the end of 2019, the Japanese manufacturing sector appeared to be on the verge of collapse. Experts recorded a significant economic downturn in the industry, which had been exacerbated amid a marked decline in output volumes.
In December last year, the Manufacturing Purchasing Managers' Index (PMI) in Japan slipped to 48.4 from November's reading of 48.9. According to IHS Markit, the preliminary figure was 48.8. Any reading of the index below 50 indicates a contraction of the manufacturing sector, while a reading above this threshold signals its expansion.
“Japan's manufacturing sector has ended 2019 where it started, stuck in contraction,” Joe Hayes, an economist at IHS Markit, said. Notably, Japan's manufacturing PMI index has remained below the reading of 50 for the eighth consecutive month.
According to analysts, output in Japan has fallen to its lowest level since March 2019 due to reduced demand and weak new export orders. There has been a decline in overall new orders and output throughout the whole year 2019, experts emphasize.
The manufacturing industry of Japan has proven to be the most heavily affected sector. Economists at IHS Markit believe that it has endured its worst performance in three years. Experts attribute this to weak demand affecting output volumes. As previously noted, a dramatic slowdown in industrial production in November 2019 raises the likelihood that the Japanese economy will contract in 2020.
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Top 7 mind-boggling scientific discoveries in 2019 |
It is fair to say that science is a measurement of progress. Every year humans make amazing paradigm-shattering revelations and shed a light on previously unknown things. There are no minor or major discoveries in science: each of them is important. Science can be even compared to a fancifully embroidered pattern where each thread is a part of a more complex picture. Experts at Naked Science, online science radio show and podcast, rounded up 7 major breakthroughs of 2019. See them in our photo gallery
NASA founds evidence of ocean fossils on Mars
The exploration of the Red Planet began in late 2018 and continued in 2019. On December 18, 2018, NASA successfully landed its InSight robot on the surface of Mars. It was designed to drill the soil to a depth of 5 m. The operation was on the verge of failure when the robot detected an electrically conductive layer with a thickness of 4 km. According to preliminary estimates, this layer contains water with dissolved salts. Scientists believe that Insight has come across the evidence of a deep subsurface sea. The simplest organism usually thrives in places with such conditions.
NASA detects atomic oxygen on Mars
According to scientists, during the year the amount of oxygen in the Martian atmosphere changes significantly: in spring it increases sharply, and in winter it falls. This phenomenon can be explained only by the fact that there are some kinds of life forms on the planet. What is more, perchlorate, a special substance, can be found in abundance in the Martian soil. When it decomposes, O2 is released. Microorganisms cannot live on the surface of the planet; they hide in a depth of 1-2 m. Scientists plan to find them using deep drilling. For now, the soil of the Red Planet is drilled only by 35 cm, and it is very difficult to identify any forms of life there.
Scientists detect first-ever neutron star-black hole collision
The unusual phenomenon was recorded by scientists in August 2019. They detected a fusion of bodies weighing about 5.0 and 2.5 times the mass of the Sun. Scientists presumed that the first object can only be a black hole because a usual cosmic body is unable to produce such a signal. The second body in the collision, weighing about 2.5 solar cells, is likely to be a neutron star, an object with a diameter of 25 km. Scientists managed to record this phenomenon at a distance of 900 million light-years from Earth with the help of the LIGO gravitational interferometer. This discovery was of great importance to astronomical society.
Astronomers announce discovery of first interstellar comet
One of the major astronomical discoveries was made in Russia. In August 2019, amateur astronomer Gennady Borisov, an engineer from the Crimean Astrophysical Observatory, detected the first interstellar comet in the history of astronomy and named it 2I/Borisov. Having analyzed its orbit and trajectory of movement, scientists conceived that this comet did not belong to the Solar System. The speed of 2I/Borisov in relation to the Sun is about 30 km/s. Such a speed is considerably higher than the third cosmic speed at which the celestial body left the Solar System.
Scientists capture first-ever image of black hole’s silhouette
Scientists distinguish the two terms: the silhouette of the black hole and the black hole itself. Apparently, this supermassive monster cannot be photographed because of the huge distance. Despite their humongous sizes, black holes never show their faces. The black holes can make themselves visible by spewing bright jets of charged particles. Plus, they are located in another galaxy, 55 million light-years from Earth. The gravity of a black hole attracts gas and dust from the surrounding galaxies but the matter cannot immediately fall into the void. Before being consumed by the black hole, a rotating disk of gas and dust is formed. This disk is heated to several thousand degrees, it emits huge volumes of radiation that the Event Horizon Telescope spotted.
Geneticists discover unknown ancestor of Homo sapiens
According to new scientific data, some people obtain genes from other human species. Those genes derived from a cross with a yet unknown species of ancient humans. Scientists cannot answer where these ancestors lived and who they were. The research states that all Caucasians have the genes of Neanderthals and Mongoloids, while the indigenous people of America have the Denisovan genes. The new species of humanity was discovered in 2011. Geneticists suggest that the new species of Homo sapiens is related to both Denisovans and Neanderthals.
Scientists develop effective Ebola vaccine
In 2019, the Ebola vaccine got official approval for conditional marketing authorization. Notably, the Ebola virus disease is recognized as one of the most dangerous diseases of our time. The Ebola outbreak occurred in 2014-2015. Scientists have faced many obstacles while trying to develop a vaccine. For a long time, they failed to attain an effective drug. In 2019, they finally succeeded. The vaccine is called Ervebo and it is widely used on the African continent.
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Germany retail sales rebound in November |
Thanks to the private consumption, Germany managed to finish the last year with rather agreeable economic performance. Not all economic and production figures were positive. Nevertheless, the retail sector, one of the primary economic engines, supported growth in one of the Europe’s largest economy. A strong uptick in sales started in November and continued until the end of the Christmas season. The final figures for December have not yet been released, while the results for November were surprising due to the growth in retail turnover which accelerated twice as fast as expected. In November 2019, retail sales in Germany jumped by 2.1 percent compared to the previous month, the German Federal Statistics Office (Destatis) reported, marking the steepest monthly increase since the beginning of last year. According to Bloomberg, the rate was expected to grow by 1 percent at most. On an annual basis, retail sales growth accelerated by 2.8 percent in November from 1.4 percent in October, while economists predicted an increase of only 1 percent.
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What to expect from Internet of things in 2020 |
According to Forrester's report, published in November 2019, the Internet of Things market will face major changes in 2020. Read about the forecast of the IoT in our article
5G integration in new projects
5G technology includes all the latest developments in microelectronics and radio transmission. According to Forrester’s analysts, it will significantly improve Low-Power Wireless Personal Area Networks (LoWPAN) as well as expand their implementation.
According to estimates, a multimodal design will be popular in 2020. It will make voice communication, visual display and touch control equally important. Data transmission to Cloud services or via telecommunication networks will be possible on both personal and corporate devices by means of intelligent displays.
Utilization of IoT devices to get ransom from manufacturers
A great number of devices connected to the network will be actively used in cybercrime in 2020. Hackers will be using personal and corporate devices to blackmail regular customers and manufacturers of the devices.
The close cooperation of software developers with security groups will help to prevent the situation. Experts will be able not only to minimize risks of cyber attacks but also to assist in the development of a proper strategy in case of a cyber threat.
Supply chain transformation using IoT
The IoT technology is designed to provide better logistics in the field of cargo transportation as well as to optimize supply chains. The number of empty vehicles hauls will decrease. As a result, it will positively affect the cost and speed of cargo transportation.
Roads will be safer. The damaged vehicles will be identified and repaired faster. The operation of machines in warehouses will be more reliable while the movement of heavy things will become automated.
Drivers will be able to optimize the work and rest mode on the road. Thanks to a personalized approach the quality of customer service will also be improved.
Ecosystem of related services
The majority of large companies will provide their services based on the IoT data in 2020. As a result, manufacturers will spend less on monitoring the efficiency of products and software updating.
This also applies to connected products which involve constant information exchange between clients and manufacturers.
Major consumers and service providers will move from selling separate products to providing the IoT services supported by partners in a single ecosystem.
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Bank of Russia starts testing stablecoins |
The Russian central bank keeps up with the times and continues exploring the cryptocurrency market. In particular, it has recently launched testing of stablecoins. Nonetheless, the regulator did not change its attitude towards the digital money, particularly stablecoins, and remained opposed to any financial systems that are not controlled by the government. However, it would be very unwise of the Bank of Russia to ignore the growing popularity of the virtual assets, so it decided to get an insight into this fast-developing sphere. Governor Elvira Nabiullina said that the bank was testing stablecoins in a regulatory sandbox which welcomed companies that want to issue tokens secured by some real assets. The regulator would watch how stablecoins work. However, it was not assumed that the cryptocurrency would function as a means of payment and become substitutes for money, Ms. Nabiullina added. Remarkably, the demand for digital money in Russia has decreased significantly compared to the period 18 months ago. Meanwhile, other countries are demonstrating a greater interest in both the blockchain technology and digital money. Namely, Sweden and China are rather enthusiastic about it. There is a high chance that the Swiss krone will be the first one to become a state digital currency. The regulatory sandbox is a special set of rules that enables innovation companies to test their products and services in a confined environment with no risk of breaking local financial legislation.
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Top 5 industries to benefit from virtual reality |
Great technical progress has been achieved in various industries, especially in the field of innovative technologies. As a result, a technical change influences the global economy, shaping not only the present but also the future of humankind. There are five industries that would benefit most from the VR technology
Medicine (surgery)
Nowadays, medicine is experiencing a technological boom. Da Vinci surgical system can carry out a number of high-precision operations while the surgeon supervises the process with the help of 3D glasses. Aspiring doctors watch the surgeries online. The team of Samara University in Russia developed Autoplan, a system that helps to plan and control the process of a surgery. This system can build a 3D model of viscera based on the MRI and CT results. It allows surgeons to plan further surgical procedures.
Astronautics and defence industry
Innovative technologies have a great impact on astronautics. Astronauts use the VR headset during their training on board of the International Space Station. The product helps to simulate the flight using SAFER jetpack. The VR headset enables astronauts to detect and track asteroids, space debris and other threats. During a military campaign, by means of the VR technology one can control a battlefield projecting critical information onto a special headset.
Education
The use of the VR technology in education began a long time ago. Massachusetts Institute of Technology actively experiments with new educational methods based on augmented reality. Innovative techniques are learnt through Reviving the Revolution and other games. During the course of the game, various historic battles are demonstrated to students. According to experts, such methods can become an invaluable resource for teaching at schools. Teachers will have to adopt new gadgets and develop new curricula based on interaction in the future.
Development of tourist routes
The utilization of the VR technology in tourism is highly demanded. Nowadays, tour operators use QR-codes to provide clients with additional information about tourist attractions. The VR apps also gain popularity as they can help people to travel around the world online. For example, TimeTraveller is a Germany developed app which can show you how the Berlin wall used to look like. Museums also try to apply augmented reality to increase the number of visitors.
Car design
Virtual and augmented reality is actively used in the design of cars and other vehicles. Engineers and designers can test a vehicle they develop and assess it in terms of comfort and safety. The latest technology is applied at Ford Motor. During virtual testing a vehicle, Ford Motor’s designers use the Oculus Rift headset. According to analysts, the popularity of augmented reality in the global car industry increases.
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7 grey swans to look out for in 2020 |
Many people are acquainted with the "black swans" concept. Black swans are events that no one can envisage. They usually have a very great effect on the world. Curiously enough, there is also an antonymous concept, called the "grey swans". This means a chain of events that can be predicted. This concept deals mostly not with an incident or an event but with a vector that determines the course of events. Experts at Zerohedge, a markets-focused blog, highlight 7 events that can make waves in the global market in 2020
Inflation in euro area surges
According to analysts at Zerohedge, the eurozone will go through significant changes in 2020. The current geopolitical background of the euro area is far from perfect. The eurozone residents support political parties that oppose the euro bloc policy. Experts think that in the governments of some countries there will be leaders who will ignore the current fiscal norms. As a result, the EU budget deficit could reach 3% compared to 1% in 2019. Analysts also warn about a rise in trade union activity and possible strikes which could paralyze the work of several sectors of the economy.
US introduces capital restrictions
One of the most important events of the coming year may become another trade war initiated by US President Donald Trump. The new trade conflict will affect large capitals. Economists suppose that the new trade war can lead to the outflow of the capital. The capital outflow and new tariffs may seriously affect the world economy.
Japan intervenes in FX market
Japan will also undertake a new move to revive the economy. The Japanese economy is losing steam. In 2019, its GDP growth did not exceed 1%. Next year, this figure will increase by only 0.3%. Japanese authorities have introduced fiscal stimulus measures to offset this decline. It did not help much, though. For this reason, Japan has only one option: currency intervention. This move may draw criticism from other countries, especially from the US. However, Japan will do everything possible to boost its economy and it may take an even more aggressive path if it is necessary.
Tesla teams up with Hyundai
Next year, a lot of transfigurations in the auto market will take place. Many companies will disappear and will be replaced by more competitive ones. In 2019, electric cars gained popularity in the market. In the meantime, Japanese automakers are far ahead of their European counterparts, experts say. Korean automaker Hyundai is the only laggard in this field. Therefore, the company needs a powerful partner to get back on track. Experts assume that the company may decide to cooperate with Tesla. Such a partnership could help both companies to solve a number of problems.
Fed disintermediates banks with help of digital currencies
Next year, the cryptomarket will have a greater impact on many sectors of the economy. Analysts at Zerohedge believe that banks should not be afraid of digital currencies as they need to be more concerned with the looming financial crisis. Its consequences are difficult to predict, and banks will have to step up all their efforts to protect their capital. If the Fed is forced to do the same, the regulator, lacking fiat money, will begin to use digital assets to minimize currency risks.
Drone attacks on oil facilities in Middle East increase
Experts believe that next year, the number of drone attacks on US-owned oil facilities in the Middle East will grow. The drone attacks on Saudi Arabia's oil refineries are sure to be one of the most memorable events of the passing year. Notably, the likelihood of such attacks is quite high even despite the fact that the US has implemented enhanced tracking and air defense systems. Drone attacks are mostly unpredictable. According to experts, they cannot be prevented. Almost all oil facilities in Saudi Arabia will remain vulnerable to drone attacks.
Virtual reality takes over auto sector
The concept of virtual reality fascinates human minds. Every year, it is getting more popular. Experts at Zerohedge believe that in the nearest future, it will displace the auto industry from the market. The desire to travel will be a catalyst for the fast development of virtual entertainment. Even now, VR is developing faster than any other industry. One day, it may put the final nail in the coffin of the auto industry as it has no physical boundaries. It opens new horizons where there is no need for cars. Movements in imaginary worlds are faster and cheaper. Besides, it offers an entirely new experience for people.
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Gold ends year at highs |
Those who invested in gold made the right decision. In particular, Russia was lucky and wise enough to increase its volume of gold reserves. On the back of limited access to the global market due to sanctions, the country has been trying hard to find alternative ways of reducing financial risks. Some of its measures proved to be ineffective. Thus, Russia failed to ditch the US dollars and incurred hefty losses after buying a large amount of the Chinese currency. However, its idea of buying gold turned out to be much more successful. The precious metal has been rapidly rising recently, and it seems that the upward trend will continue. The price per troy ounce has broken the level of 1,500 USD, and most analysts are predicting that the price will grow further. A temporary lull in the precious metals market is likely to be followed by another rally. Interestingly, the dynamics of gold and other precious metals have been connected with the US dollar exchange rate until recently. Having analyzed long-term trends, most experts have concluded that the American currency has a minor impact on gold prices. Last year, the US dollar little changed while the precious metals hit records highs. The quotes were rising despite an increase in the appetite for risk and interventions by the central banks.
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