Anonymous ID: 74a10d Sept. 16, 2022, 9:20 a.m. No.17528062   🗄️.is 🔗kun

https://english.almayadeen.net/news/economics/stock-market-experiences-worst-dip-since-june-2020

 

Stock market experiences worst dip since June 2020

 

The stock market witnessed its worst day in over than two years after inflation data crushed investors' expectations that moderating price pressures would compel the Federal Reserve to scale down its interest-rate hike campaign.

 

Everything from stocks and bonds to oil and gold was sold by investors. The Dow Jones Industrial Average's 30 equities all fell, as did the S&P 500's 11 sectors. Only five of the broad benchmark's stocks closed the session with an increase. Meta Platforms sank by 9.4%, BlackRock fell by 7.5%, and Boeing plummeted by 7.2%.

 

The Dow Jones Industrial Average sank 1,276.37 points to reach 31104.97 (3.9%). The S&P 500 fell 177.72 points to reach 3932.69 ( 4.3%). Moreover, Nasdaq Composite reached 11633.57 after having fallen 632.84 points (5.2%).

 

All three indices saw their worst single-day losses since June 11, 2020. The total dip per index was as follows: Dow Industrials (14%); S&P 500 (17%); and Nasdaq Composite (26%).

 

Investors anticipated the release of the consumer-price index on Tuesday, which would give a final significant look at inflation before the central bank's interest-rate-setting committee meets next week. Expectations for the course of monetary policy have gripped markets as investors incorporate rising interest rates into asset values and attempt to forecast how well the economy will fare as rates increase.

 

Chris Shipley, Chief Investment Strategist for North America at Northern Trust Asset Management, commented on the topic saying that “It increases the probability of recession if the Fed has to move more significantly to address inflation."

 

According to recent figures, the consumer-price index increased 8.3% in August compared to the same month that year. Earlier in July, that number was 8.5% while in June it was 9.1%, showing a general decline in the consumer price index rate from June which was considered the highest rate in four decades.

 

However, on a month-to-month basis, the numbers revealed that inflation accelerated in August, deflating investors' optimism that pricing pressures would lessen, allowing the Federal Reserve to moderate the pace of interest rate hikes in the coming months.

 

Federal Reserve could overdo interest rate hikes

 

The Vice Chair of the Federal Reserve, Lael Brainard, admitted the possibility that the US Federal Reserve could cross a threshold in its continuous interest rate hike, a remark that was conspicuously absent from Chair Jerome Powell's address at Jackson Hole, Wyoming, in late August.

 

Brainard said in a speech delivered in front of a banking group, on September 8, in New York that "At some point in the tightening cycle, the risks will become more two-sided," adding that the velocity with which interest rates rise and the uncertainty surrounding the timing of their economic consequences "create risks associated with overtightening."

 

Furthermore, the Vice Chair warned that history showed that "it is important to avoid the risk of pulling back too soon," noting that when it comes to inflation, "our resolve is firm, our goals are clear, and our tools are up to the task."

 

While both Brainard and Powell appear to be completely on board with the Fed's drive to rapidly raise interest rates to combat inflation, Brainard was more inclined than Powell to accept that there are significant dangers to both increasing rates too high as well as risks not raising them high enough.

 

14 Sep 11:32

Anonymous ID: 74a10d Sept. 16, 2022, 9:26 a.m. No.17528088   🗄️.is 🔗kun   >>8124

https://english.almayadeen.net/news/economics/eu-to-establish-hydrogen-bank-with-3-billion-fund

 

EU to establish hydrogen bank with $3 billion fund

 

European Commission President Ursula von der Leyen stated on Wednesday that the EU is set to establish a hydrogen bank with a $3 billion fund to invest in the hydrogen market.

 

"Today I will be announcing that we have created a new European hydrogen bank," Von der Leyen stated. "This will help to guarantee the supply of hydrogen, using money from the innovation fund. We will be able to invest 3 billion euros to help to construct a future hydrogen market," she added during her annual State of the EU address.

 

The European Commission adopted in 2020 a hydrogen strategy that aims to position the EU as a world leader in a clean hydrogen economy.

 

“Hydrogen has a huge potential going forward. It is an indispensable component for the diversification of energy sources and the green transition," stated EU Competition Commissioner Margrethe Vestager on July 15.

 

While the strategy was announced in 2020, the EU's sanctions on Russia following the war in Ukraine, which led to energy shortages and extreme price hikes in the member states, have put the EU on a fast track to diverse energy sources, including hydrogen.

 

So far, the EU's attempts to manage the economic crisis following the confrontation with Russia show no signs of fast enough effectiveness, as a study conducted by the European Trade Union Confederation (ETUC) revealed a few days ago that low-income Europeans cannot afford energy bills.

 

"When your bill costs over a month's wages, there's no clever money-saving trick that will make a difference," ETUC Deputy General Secretary Esther Lynch said in a statement, adding, "These prices are now simply unaffordable for millions of people."

 

Euro slides to a 20-year low against the dollar

 

On September 5, the euro dropped 0.70% to 0.9884 dollars, its lowest level since December 2002, after losing parity for the first time in 2 decades last July.

 

Prices all over Europe have been inflated by almost 400% due to the restricted gas flow from Russia, with expectations that they increase further after Moscow went back on its decision to continue pumping gas through Nord Stream 1 to Germany due to maintenance issues.

 

Surging costs of power linked to gas prices have already stunted the production of various industries, such as fertilizers and aluminum manufacturers, and prompted EU governments to increase their spending by billions in order to help their citizens.

 

14 Sep 19:38

Anonymous ID: 74a10d Sept. 16, 2022, 9:31 a.m. No.17528105   🗄️.is 🔗kun

https://english.almayadeen.net/news/economics/eu-set-to-cut-overall-electricity-use-by-at-least-10-by-2023

 

EU set to cut overall electricity use by at least 10% by 2023

 

As gas prices in Europe are heading toward unaffordability, the European Commission proposed that EU countries should reduce overall electricity use by at least 10% by the end of March 2023, as per the bloc's emergency measures published on Wednesday.

 

In a statement, the Commission said, “To target the most expensive hours of electricity consumption, when gas-fired power generation has a significant impact on the price, the Commission proposes an obligation to reduce electricity consumption by at least 5% during selected peak price hours. Member States will be required to identify the 10% of hours with the highest expected price and reduce demand during those peak hours. The Commission also proposes that the Member States aim to reduce overall electricity demand by at least 10% until 31 March 2023."

 

"Reducing demand at peak times would lead to a reduction of gas consumption by 1.2bcm over the winter. Increasing energy efficiency is also a key part of meeting our climate commitments under the European Green Deal," it added.

 

The EU body also suggested that EU member states should collect excess profits from oil and gas companies, which surpassed a 20% increase in 2022 compared to the average profits of the previous three years.

 

"The Commission is also proposing a temporary solidarity contribution on excess profits generated from activities in the oil, gas, coal, and refinery sectors which are not covered by the inframarginal revenue cap. This time-limited contribution would maintain investment incentives for the green transition. It would be collected by the Member States on 2022 profits which are above a 20% increase on the average profits of the previous three years," it stressed.

 

According to European Commission estimates, additional income from "surplus" profits of energy companies may amount to around $24.99 billion in 2022, given the implementation of revenue caps as an emergency measure.

 

"The temporary solidarity contribution based on taxable surplus profits made in the fiscal year 2022 on energy undertakings in the oil, gas, coal, and refinery sectors in the Union could bring an estimate of around €25 billion of public revenues, to be redistributed by the Member States subject to compliance with Union law," the Commission said.

 

However, the European Commission made no mention of setting a price limit for Russian gas in its proposals.

 

It is worth noting that rising gas prices would almost surely plunge European economies into recession, cutting demand for other commodities, such as oil.

 

14 Sep 17:39

Anonymous ID: 74a10d Sept. 16, 2022, 9:36 a.m. No.17528120   🗄️.is 🔗kun   >>8296

https://english.almayadeen.net/news/economics/germany-fears-inevitable-bankruptcy-amid-energy-crisis

 

Germany fears inevitable bankruptcy amid energy crisis

 

In a tweet on Thursday, German left-wing politician and chairman of the Bundestag committee on energy, Klaus Ernst, referenced statements by Chancellor Olaf Scholz that the sanctions should not hit Europe harder than Russia itself: “We have now imposed seven packages of sanctions and Gazprom is making record profits. At the same time, we are threatened with a wave of bankruptcies. Therefore: negotiate with Russia with an open mind".

 

The largest EU economy is anticipated to contract in 2023, as gas and electricity prices continue to skyrocket. According to the Ifo Institute for Economic Research, the Munich-based think tank, the ongoing energy crisis as a result of the war in Ukraine is “wreaking havoc” on the German economy and they project it could lead to a 0.3% drop in GDP next year.

 

The CEO of Deutsche Bank, Christian Sewing, previously stated that “as a result, we will no longer be able to avert a recession in Germany. Yet we believe that our economy is resilient enough to cope well with this recession — provided the central banks act quickly and decisively now,” noting that for now, many in Germany still have pandemic savings to fall back on in order to meet skyrocketing energy costs, while most companies remain "sufficiently financed".

 

However, Sewing warned that “the longer inflation remains high, the greater the strain and the higher the potential for social conflict.”

 

The German government approved August 4 a €65 billion relief package, which includes continued cheaper public transport and tax breaks for energy-reliant companies, as they have been affected the most by the biggest surge in prices.

 

According to the Federal Statistical Office, Germany's inflation rose to almost 8% in August after declining slightly in the months of June and July.

 

German politician and fellow left-wing, Sahra Wagenknecht, condemned the government for dragging the country into a full-blown “economic war” with Russia who happened to be its top energy supplier, while she referred to the Bundestag concerning the fatal impacts that the Russian sanctions have on Germany.

 

The Bundestag warned that Germany's economic health is at stake considering the spiraling of energy prices out of control, which will serve as “a reminder of the good old days,” followed by Wagenknecht urging for the cancellation of restrictions and engaging in talks with Moscow.

Anonymous ID: 74a10d Sept. 16, 2022, 9:49 a.m. No.17528164   🗄️.is 🔗kun   >>8296 >>8328

https://english.almayadeen.net/news/economics/berlin-takes-control-of-russian-energy-giant-rosneft-in-germ

 

Berlin takes control of Russian energy Giant Rosneft in Germany

 

The German government announced on Friday that it was taking control of the German operations of Russian energy firm Rosneft in a bid to secure energy supplies affected by the European sanctions on Russia in the wake of the Ukraine war.

 

Germany placed the German subsidiaries of Rosneft under the trusteeship of the Federal Network Agency, the economy ministry said in a statement.

 

"The trust management will counter the threat to the security of energy supply," it said, as Rosneft's subsidiaries make up around 12% of the country's oil refining capacity.

 

The companies affected by the decision are Rosneft Deutschland GmbH (RDG) and RN Refining & Marketing GmbH (RNRM), in addition to PCK Schwedt, MiRo, and Bayernoil, all of which are refineries.

 

PCK Schwedt, in particular, is highly vital for Germany, as it supplies around 90% of the oil consumed in Berlin and its vicinity, including the Berlin-Brandenburg international airport.

 

By circumventing their own sanctions aimed at punishing Russia for the Ukraine war, Berlin taking control of the sites allows it to continue operating the refineries using crude from countries other than Russia.

 

Germany, like the rest of Europe, has been struggling in light of the meager amount of Russian energy making it to the continent due to the sanctions, prompting various measures from local governments and the European Commission to try and tackle the spiraling energy crisis.

 

The European Commission had prepared suggestions on measures aimed at tackling soaring energy prices to be discussed by the energy ministers of the bloc’s member states. The suggestions include the proposal to introduce a price cap on Russian natural gas.

 

However, the bloc failed to agree on the cap, Hungarian Minister of Foreign Affairs Peter Szijjarto revealed Friday.

 

EU chief Ursula von der Leyen proposed that the bloc's 27 nations agree on placing a price cap on Russian gas imports.

 

Von der Leyen's decision comes as a means of imposing further sanctions on Russia as the West looks for more means of punishing the country over the war in Ukraine.

 

13 EU nations have either ceased getting Russian gas entirely or are only receiving a portion of it due to the temporary blockage of the Nord Stream 1 pipeline, the Russian TASS news agency reported last week.

 

Surging costs of power linked to gas prices have already stunted the production of various industries, such as fertilizers and aluminum manufacturers, and prompted EU governments to increase their spending by billions in order to help their citizens.

 

Italy and Germany are now the two largest European countries most exposed to a gas supply shock due to their extensive use of natural gas and significant reliance on Russia, according to S&P Global Ratings.

 

About 60% of Germany's natural gas supply was piped in from Russia in 2020, primarily under long-term contracts.

Anonymous ID: 74a10d Sept. 16, 2022, 9:54 a.m. No.17528195   🗄️.is 🔗kun   >>8197 >>8296

https://english.almayadeen.net/news/politics/migrants-are-political-pawns-in-gop-dems-fight-over-border-c

 

Migrants are 'political pawns' in GOP-Dems fight over border chaos

 

Following White House secretary Karine Jean-Pierre's statement that sending migrants to Martha's Vineyard and Washington, D.C. by GOP governors is a maneuver of an "illegal stunt", Texas governor Greg Abbott responded by calling out the Biden administration for failing to acknowledge the dire situation of the US southern border - but the GOP politicians have been exploiting the migrants who they keep deliberately "shoving" left and right across the country, using them as a pressure card for the Democratic party and the White House.

 

Even after Jean-Pierre assured that the migrants voluntarily signed a waiver that was already available in multiple languages before getting into the busses, Abbott's office echoed its claims that both President Joe Biden and who Abbott called "Border Czar" Vice President Kamala Harris were failing to resolve the migrant conflict at the border, where Texas is the first stop.

 

Abbott's press secretary, Renae Eze, stated: "Instead of their hypocritical complaints about Texas providing much-needed relief to our overrun and overwhelmed border communities, President Biden and Border Czar Harris need to step up and do their jobs to secure the border—something they continue failing to do".

 

Migrants as 'political pawns'

 

Martha's Vineyard, an island belonging to the state of Massachusetts, received planes with mainly Venezuelan migrants on Wednesday, a move credited to Florida Gov. Ron DeSantis. According to Taryn Fenske, DeSantis' communications director, the Florida legislature ratified $12 million for the transportation of undocumented migrants from the state consistent with federal law.

 

Thursday morning witnessed two buses of migrants from the US-Mexico border were sent by Abbott to a location near Vice President Kamala Harris’ home at the Naval Observatory in Washington, D.C., followed by a tweet that he dropped off the migrants in her “backyard” and called on the Biden administration to “do its job & secure the border.” Just a week earlier, Abbott sent approximately 75 migrants to Chicago.

 

Arizona governor Doug Ducey followed suit with this approach, sending busses of immigrants to Washington D.C., disclosing in a news release that the voluntary bus trips are considered necessary as a result of “little action or assistance from the federal government.”

 

During a press conference on Thursday, Jean-Pierre said the series of putting the migrants on busses "is just cruel, and it's not about the process. Actually, It's about a political tool or political stunt that they're moving forward with," as she further accused the Republican governors of exploiting migrants as "political pawns."

 

Notorious border patrol agents

 

The fiscal year 2022 already recorded 1.8 million arrests of migrants by US border agents. Since the start of Joe Biden's term in office, more than one million migrants have entered the US, per figures cited by Customs and Border Protection (CBP).

 

The process goes as follows: after migrants cross the US-Mexico border, a CBP facility hosts them before being released by border officials and are served documents to appear in court, after which they are no longer in federal custody and are free to travel across the country, but many remain in waiting months for case hearings due to legal and procedural backlogs.

 

Part 1

Anonymous ID: 74a10d Sept. 16, 2022, 9:55 a.m. No.17528197   🗄️.is 🔗kun   >>8315

>>17528195

 

US CBP agents are notorious for the abuse and mistreatment of both migrants and the procedures of keeping them safe, as they flee dangerous regions to find security. Human Rights Watch found last year October shocking cases of sexual and physical abuse of asylum seekers at the southern US border by federal authorities, following a years-long struggle to extract evidence from the Department of Homeland Security. The abuses range from juvenile sexual abuse to forced starvation, rape threats, and harsh incarceration circumstances.

 

The Washington Post also revealed a photo in September of last year of a Border Patrol officer on horseback grabbing Haitian migrants with one hand, and what appeared to be a whip in the other hand.

 

Furthermore, Mexican President Andres Manuel Lopez Obrador has cautioned in June that the US is struggling to manage its southern border, accusing it of "lack of control" after more than 50 immigrants were killed while being smuggled into the country.

 

The grim discovery was one of the worst disasters involving migrants in recent years, and it occurred five years after a similar deadly incident in the same central Texas city, just hours from the Mexican border.

 

Republicans have pointed fingers at Joe Biden for his adamancy to “undo everything former President Donald Trump had done” leading to the chaos at the southern border, condemning Biden's “open border policies” and the diminishing of a number of restrictive measures against illegal migrants set in place by the former president, Donald Trump.

 

Part 2 - End