This week’s events in Japan are a huge tragedy in human terms. They will also have an impact on business in the short and long-term.
We’ve already seen the daily impact on the stock prices in recent days of those business expected to be hurt by the crisis. Insurers are facing one of the most expensive ever natural disasters, whilst there are real concerns about the impact on the supply chains of the automotive and telecoms industries.
But, however distasteful it may sound, some sectors will benefit from what has happened.
Analysts have claimed that uncertainty in some countries about nuclear power will improve the long term case for coal and that there will be a ‘dash for gas’. Coal and gas commodity prices have already seen substantial price rises, and these are expected to move further north.
However, as the price gap between high and low carbon energy closes over the coming years and with challenging ‘clean’ energy targets in place around the world, renewable sources such as solar, wind and geothermal can be expected to be long-term beneficiaries of Government support and a revival in investor sentiment.