In Europe

The security of the UK’s LNG supply is precarious

Gas Price Spike: How UK Government Failures Made A Global Crisis Worse

Michael Bradshow ( The Conversation) | The UK government has been in emergency talks with leaders from the energy industry as gas prices (and with them, electricity prices) have soared to more than four times the level they were at the same time in 2020. Concerns are growing about the security of winter gas supplies, and industries reliant on gas, such as the fertiliser industry, are curtailing production, threatening various…


MerkelScholz

German Election Guide

Nick Ottens (Atlantic Sentinel) | Germans elect a new Bundestag on Sunday, which will elect Angela Merkel’s successor. It is the first time since 1983 that a sitting chancellor isn’t seeking reelection. If the polls are right, Merkel’s center-right Christian Democrats will lose power to the center-left Social Democrats for the first time since 2005. Here is everything you need to know. Bottom lines The Social Democrats (SPD) are projected…


ECB bonds

ECB Members Show Their Concern About Inflation

Francisco Vidal (Intermoney) | For yet another day, the spotlight is on the words of ECB members. They give their views on their particular vision of the course of inflation, with the consequent impact on the markets. And the latter react by interpreting the statements in terms of the central bank’s speed in withdrawing its stimuli. On Thursday, the Financial Times reported Philip Lane had said privately that they expect…


ECB PPEP

Will Lagarde Dare To Move In Earnest?

JP Marín-Arrese | All was quiet on the ECB front for too long. Suddenly, last week it announced its intention to scale down the emergency asset-buying programme starting next month. While falling short of the tapering heralded weeks ago by Jerome Powell, it represents indeed a shift in the dull do-nothing approach followed for months and years. Once embracing quantitative easing, much later than other central banks, it proved unable…


ECB's president Christine Lagarde

ECB ‘recalibrates’ PEPP for Q4 – December is now key for APP and TLTROs

Annalisa Piazza (MFS) | ECB “recalibrates policy”: Nothing else has changed. Indeed, the rest of the policy announcement was a carbon copy of what we heard back in July. Forward guidance on both rates and QE was confirmed, along with the re-investment programmes. The slower pace of PEPP had been widely flagged by ECB officials over the past few weeks so the announcement was hardly a surprise. That said, the…


The UK's deregulation from the EU will take Boris Johnson initially longer to sell

Social Care Tax Rise Is Austerity By Another Name

The Conversation | Boris Johnson has unveiled an additional 1.25% levy on national insurance paid by wage earners and employers, which will raise £14 billion a year to help pay for the NHS and reforms to social care. Coming on the back of rises to income tax and corporation tax that were announced in the budget in March, it is the latest example of the government using tax rises rather than austerity to rein in public finances that have been hit by the cost of the pandemic. We asked Alex de Ruyter, a Professor of Economics at Birmingham City University, to explain how it would affect different parts of society.


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The Number Of European Companies Using ESG Criteria In Executive Compensation Has Increased Eightfold In The Last Decade

Fernando Rodriguez | The percentage of European companies linking executive compensation plans to ESG targets has increased more than eightfold in the last decade, from 4% in 2008 to 34% in 2020. This is according to a survey conducted by the Diligent Institute of nearly 2,000 companies in 15 European countries, including Spain, which is in the high end of the range for most indicators. According to the survey, the…


Germany coal power 800x400

Germany, And The UK, And The Netherlands…, Double Electricity Production With Coal, Whose Price Has Risen 100% In The Last Year

ASE Group | Gas has risen so much that coal-fired plants are now competitive. In recent months, Germany has reduced its gas-fired power generation by 36% while doubling its coal-fired generation. Similar developments have occurred in the UK and the Netherlands. This pull in coal demand has driven up the price of coal by 1000% in the last year.


Angela Merkel

Germany At The End Of The Merkel Era: The Next Coalition To Inherit An Economy Not Fully Recovered

Bruno Cavalier (ODDO BHF) | In a few weeks’ time, Angela Merkel will cease to be Chancellor, a position she has held since 2005. Polls show that the three main contenders to succeed her are tied. Despite Germany’s good performance in the first Covid-19 wave, successive waves of contagions brought new restrictions in early 2021, delaying the recovery. Also, Germany clearly suffers from its overexposure to the automotive industry, which is 25 points below normal.


BBVA Holvi

BBVA Returns To The Euro Stoxx 50 One Year Later

BBVA and Stellantis have been added to the Euro Stoxx 50, replacing Amadeus and Engie. These changes will be effective at the opening of trading on 20 September. According to Bankinter analysts, “BBVA and Stellantis should rebound today, despite the fact that the session will probably be somewhat bearish, while Amadeus and Engie should fall back. And this same evolution could extend over several sessions. We estimate that some 27…