BRUSSELS (Reuters) – Electric vehicles made up 8% of car sales in Europe in the first half of 2020, putting them on track to triple their market share this year, according to analysis by the NGO Transport & Environment (T&E).

FILE PHOTO: A battery charger sign for electric cars is painted on the ground of a parking ground near the soccer stadium in Wolfsburg, Germany, April 6, 2016. REUTERS/Kai Pfaffenbach

While the novel coronavirus pandemic has seen overall car sales plummet, sales of electric cars – which T&E defined as both battery and plug-in hybrid models – have increased.

This saw electric cars more than triple their market share in the European Economic Area (EEA), compared with the first half of last year, T&E said.

Outright sales of such vehicles are expected to roughly double this year, to one million units, it said.

T&E attributed the sales increase to tougher European Union car emissions standards, which took effect this year, and post-pandemic purchase incentives in Germany and France.

The NGO expects carmakers to meet the 2020 emissions standards, which would see electric and plug-in hybrid vehicles triple their market share in 2020 to 10% of EEA car sales.

“It is because of the EU emissions standards, but it is also thanks to many investments carmakers made last year,” report co-author Julia Poliscanova said.

The European Automobile Manufacturers’ Association (ACEA) said electric vehicle sales have been boosted by national support schemes to foster economic recovery from the COVID-19 pandemic but that this trend was not necessarily a long-term one.

“It is difficult to make any predictions on future long-term shifts in consumer behaviour from such ‘artificial’ growth driven by subsidies,” ACEA said.

T&E urged the EU to set tougher future emissions targets to ensure electric vehicles keep edging out polluting models.

It may be postponed for now, but what happens to the Treasury market if and when the next COVID-19 bailout bill passes? If President Trump is reelected, it will likely go through in November. If Joe Biden wins, then we could have an even bigger bailout in January when he takes power.

Mark Cabana, head of US Rates Strategy at Bank of America, as quoted by Zero Hedge, believes that if and when it happens, issuance at the long end of the curve will be increased. He’s right. The question I’ll deal with here is, by how much?

Here I’ll bring you through the math precisely, step by step, and show why the answer is between three and six times the issuance rate of the past six years. The exact rate depends on how fast the Treasury needs to raise the money, and that depends on how fast Congress proposes to spend it all. If recent history is any guide, then the answer is pretty fast.

The end point I want to make here is that a 3-6x rate of increase in Treasury note supply going forward would be unprecedented and could trigger foreigners to sell their holdings, triggering a spike in long-term rates, a big fall in the dollar index (UUP) on foreign exchanges, and a spike in the price of gold to new all time highs and beyond. No – rising long-term rates would not bring down gold’s dollar price, not if it’s being spurred by international bond selling and inflation fears. It didn’t in the late 1970’s, and it won’t now.

Where We Are Now

In the ZeroHedge piece, Cabana is quoted directly as follows:

“The limited supply impact (in Treasury bills) is due to the very large existing UST cash balance and recent coupon supply increases

SpaceX lands a Falcon 9 rocket booster after launching its Starlink mission

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Bank of America expects the growing space economy will more than triple in size in the next decade, with the firm this week forecasting space will grow to become a $1.4 trillion market.

“While the COVID-19 pandemic has led to delays in some public and private programs … the outbreak has not appeared detrimental to overall investment. This may largely be due to the fact that most spending in space is business-to-business/government (B2B/G), which generally recovers faster than business-to-consumer (B2C) spending,” Bank of America analyst Ron Epstein wrote in a research note to investors.

The space economy has continued to grow, in large part to a record period of private investment and new investors opportunities in companies involved in spaceflight, satellites, and more. While Bank of America tracks just 14 publicly-traded stocks with exposure to space, Epstein said there are “more to come.”

Using a compound annual growth rate of 10.6%, the average from the last two years, Bank of America forecast would see the industry’s revenue grow 230% – from about $424 billion in 2019 to about $1.4 trillion in 2030. That would put space near the current size of the global tourism economy, which Bank of America noted is a $1.5 trillion industry.

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