FirstFT: Europe’s energy crisis deepens as euro hits fresh 20-year low


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Good morning.

The euro has dropped to a fresh 20-year low against the dollar after Russia’s resolution to close a significant gasoline pipeline to Europe intensified the area’s power disaster.

The widespread foreign money fell as a lot as 0.7 per cent to $0.988 in London buying and selling, the bottom stage since 2002. European shares additionally fell, with the regional Stoxx 600 index down 1 per cent, Germany’s Dax off 1.7 per cent and France’s Cac 40 down 1.8 per cent. London’s FTSE 100 slipped 0.7 per cent.

In power markets, Dutch TTF gasoline futures, the benchmark European contract, jumped 30 per cent to €272 per megawatt hour, rising again in the direction of all-time highs hit above €340 just below two weeks in the past.

European international locations — together with Sweden, Finland and Germany — scrambled over the weekend to reply to Russia’s “weaponisation” of power provides and supply monetary help to companies and shoppers.

Liz Truss, who is anticipated to be confirmed Britain’s new prime minister later at present, is anticipated to unveil a new package of measures to assist households and enterprise deal with hovering power payments inside days of taking workplace.

The newest spike in power costs follows Russia’s resolution on Friday after markets closed to indefinitely suspend natural gas flows by way of the Nordstream 1 pipeline, the principle power provide channel from Russia to European markets. State-owned Gazprom stated the suspension was as a result of a technical fault.

Russia’s announcement got here simply hours after G7 international locations introduced plans to move ahead with a price cap on Russian oil exports in an try to cut back revenues flowing to Moscow that may very well be used to fund its struggle in Ukraine.

Opec oil-producing international locations and their allies are probably to take a look at methods to prop up oil prices after they meet at present. The 11 per cent drop in oil costs final week has prompted a clamour from some Opec+ members to reverse coverage after months of provide will increase.

Worldwide benchmark Brent rose 1 per cent forward of the assembly to $94.41 a barrel.

Thanks for studying FirstFT Americas. We hope you might have an important week — Gordon

1. Mattress Bathtub & Past govt dies Police have confirmed the person who fell to his dying from a New York high-rise residence block on Friday was Gustavo Arnal, chief monetary officer of troubled house items retailer Mattress Bathtub & Past. The 52-year-old was discovered unresponsive at a Tribeca tower in decrease Manhattan and was pronounced lifeless on the scene, New York police stated yesterday.

2. Chileans reject new structure Voters in Chile overwhelmingly rejected a brand new structure, dealing a blow to President Gabriel Boric and bringing aid to buyers, who had feared the modifications would upend the nation’s pro-market financial mannequin. Solely 38 per cent backed the proposals in a compulsory plebiscite yesterday, by which practically 13mn Chileans participated.

3. China extends Covid lockdowns Chinese language authorities have extended the Covid-19 lockdowns in Chengdu and Shenzhen, backtracking on guarantees of freedom for tens of hundreds of thousands of individuals within the southern megacities following mass testing campaigns. At the least 68 cities are at present in partial or full lockdown in China, in accordance with knowledge from the nation’s Nationwide Well being Fee.

4. Apple plans to double its digital promoting enterprise workforce
Apple plans to nearly double the workforce in its fast-growing digital promoting enterprise lower than 18 months after it launched sweeping privateness modifications that hobbled its larger rivals within the profitable business. Apple’s as soon as fledgling adverts enterprise has grown from just some hundred million {dollars} of income within the late 2010s to about $5bn this yr, in accordance with analysis group Evercore ISI.

5. Police hunt for 2 males after stabbings go away 10 lifeless in Canada Canadian police stated that 10 people were killed and no less than 15 others injured in stabbings within the province of Saskatchewan yesterday — and that two suspects stay at giant. The Royal Canadian Mounted Police named the suspects as 30-year-old Damien Sanderson and 31-year-old Myles Sanderson.

The day forward

American Labor Day Markets within the US can be closed at present because the nation observes a nationwide vacation commemorating the works and contributions of labourers.

New UK prime minister named The winner of the Conservative celebration management contest can be introduced later at present. Liz Truss is broadly anticipated to have overwhelmed rival Rishi Sunak after weeks of campaigning. The winner turns into prime minister tomorrow and can journey to Balmoral in Scotland for a gathering with the Queen earlier than taking workplace.

What else we’re studying

‘A deglobalising world can be an inflationary one’ The struggle in Ukraine, the worldwide carbon neutrality push, US-China decoupling, Federal Reserve price rises placing a cap on straightforward cash — there isn’t any getting round the truth that a deglobalising world may even be a extra inflationary one, no less than within the quick time period, writes Rana Foroohar.

Contained in the revival brewing at Starbucks The grassroots effort to organise staff on the espresso chain has unfold to greater than 200 shops. The momentum of the worker movement amongst Starbucks staff is emblematic of the extra widespread resurgence of help for commerce unions throughout the US.

Crypto actual property: the property market constructed on digital property There are tens of hundreds of bitcoin acolytes with the equal of greater than $1mn of their digital wallets. A survey of US housebuyers discovered that 12 per cent of first-time patrons deliberate to liquidate digital property for a downpayment. Brokers are aiming to faucet that pool of patrons and convert cryptocurrency into bricks and mortar.

‘I acquired mooed at for expressing milk at Goldman Sachs’ Bully Market is a sensational account of sexual discrimination and harassment at Wall Road powerhouse Goldman Sachs. Jamie Fiore Higgins labored on the financial institution for 17 years and left in 2016 however her e book has classes for any highly effective organisation. Three concepts stand out, writes Pilita Clark.

Summer time is over. Will everybody now return to the workplace? From Tesla to Apple and Peloton, among the greatest firms are making a concerted push to get individuals to return to in-person work. Some executives are getting impatient and taking a more durable line — solely to be met with rejection and resentment from their staff.


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