The hard work starts for Truss
Russia’s private pain
Ukraine calls for efforts to end war
Porsche IPO on the cards
Now the Hard Work
Incoming UK Prime Minister Liz Truss has drafted plans to fix annual electricity and gas bills for a typical household at or below the current level of £1,971 ($2,300). The policy could cost as much as £130 billion over the next 18 months, according to policy documents seen by Bloomberg, and will help avert a massive increase in energy bills due to kick in at the start of next month. The self-styled “disruptor-in-chief” is responding to the full-throttled cost-of-living crisis facing households and businesses.
Russia’s Private Pain
Russia may face a longer and deeper recession as the impact of US and European sanctions spreads, handicapping sectors that the country has relied on for years to power its economy, according to an internal report seen by Bloomberg. The document, the result of months of work by officials and experts trying to assess the true impact of Russia’s economic isolation, paints a far more dire picture than officials usually do in upbeat public pronouncements.
Ending the War
Ukraine’s allies should do their utmost to help end Russia’s invasion fast as Moscow is willing to keep fighting for a long period, Ukrainian Prime Minister Denys Shmyhal said on Bloomberg TV. Ukraine is scoring some military successes in its southern regions as well as in the north, Shmyhal said without elaborating, voicing hope the nation will be able to liberate the whole of its territory within internationally recognized borders, including Crimea. Against a backdrop of leaders rushing to resolve a deepening energy crisis, Shmyhal said that Ukraine is fulfilling all its gas-transit obligations toward European customers and could pump five times more than the current volume. Meanwhile, Europe remains dependent on Russia’s oil supply, and Germany is keeping its nuclear plants alive this winter.
Volkswagen decided to push ahead with its plan to list a minority stake in Porsche this year despite gyrating markets, paving the way for what could be one of Europe’s biggest IPOs. The carmaker is planning the listing at the end of September or beginning of October. With the share sale, the billionaire Porsche and Piech clan is set to regain direct influence over what used to be its family enterprise, some 13 years after it was forced to sell the sports-car business to Volkswagen.
European equity futures are under pressure as stocks in Asia turned mixed Tuesday with sentiment being tested by central banks’ tightening and Europe’s energy crisis. The British pound gained and the euro found some relief after earlier hitting a two-decade low. Boris Johnson steps down after a tumultuous three years as UK leader, with Liz Truss taking over after meeting the Queen. It’s light on the data docket, with German factory orders and Dutch inflation due. Ashtead is among companies scheduled to report earnings.
(Source: Bloomberg, Sept.6-2022)