German exporters rethink ‘love affair’ with China

After years of surging sales, Germany’s small and medium-sized enterprises are finding their relationships with Chinese partners tested by geopolitical tensions, Beijing’s zero-Covid policy and domestic competition. The breakdown threatens to unravel one of the world’s most mutually beneficial trading relationships.

Further reading: A decision to allow Chinese shipping group Cosco to acquire a stake in Germany’s biggest seaport has divided lawmakers in Berlin.

Meta shares fall as it warns of ‘near-term challenges’

The Facebook parent reported a deepening slowdown in the third quarter and warned that fourth-quarter revenues could come in lower than expected, as big tech faces a digital advertising slump and tough macroeconomic conditions. Meta’s disappointing earnings came amid a broader sell-off in tech stocks.

Fossil fuel demand to peak around 2030, says IEA chief

The world is approaching a “pivotal moment in energy history”, Fatih Birol, head of the International Energy Agency, tells the Financial Times, with Russia’s invasion of Ukraine accelerating a peak in fossil fuel consumption. The IEA forecasts gas demand will join oil and coal in topping out near the end of this decade.

ECB urged to block rights issue at Italian bank

A London-based investor has called for the European Central Bank to block a €2.5bn rights issue at Monte dei Paschi di Siena, arguing the Italian bank is indirectly buying its own shares. MPS is paying an unusually high underwriting fee, even though the Italian state has committed to buying 64 per cent of the issue and much of the rest is guaranteed by other investors.

France and Germany seek to move beyond tensions

French president Emmanuel Macron and German chancellor Olaf Scholz discussed energy, defence and geopolitical challenges raised by the war in Ukraine during a three-hour meeting in Paris yesterday. The two leaders have clashed in recent months over issues ranging from air defence systems to gas pipelines.

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(Source: FT, Oct., 27-2022)