Economy
German economy today manages to provide only half of the prescribed gas savings
The German economy today is failing to meet its target standard for gas savings. With a standard of 20 percent, it is only able to achieve a savings of 12 percent.
As German economy news has it, the German Federal Network Agency for electricity, gas, telecommunications, post and railroads (Bundesnetzagentur, BNetzA) reported that in the 49th week (5-11 December), the temperature-adjusted gas consumption was 12 percent below the average consumption over the last four years.
In the 48th week (Nov. 28-Dec. 4), the savings were also 12% (the previous estimate was 16.5%), according to revised data. In week 47 (Nov. 21-27), there was a 24.15 percent specific gas savings. This could also hit LONG-TERM EURO-BTP futures.
“The savings goal has clearly not been met,” the regulator admits.
BNetzA considers the situation with specific gas consumption to be “stable” when 25% of gas is saved in relation to the reference value, “tense” when 15-25% is saved and “critical” when less than 15% is saved.
The Bundesnetzagentur has already changed its assessment of the weather situation in the country from “tense” to “critical. The agency calls the situation “stable” if the temperature over the next 7 days is forecast higher than the average over the past 4 years (2018-2021), “tense” if 0-2 degrees below the average for the same period, and “critical” if more than 2 degrees below normal. The forecast for this week is 3.18 degrees below the average for the past four years, so a significant increase in consumption should be expected, BNetzA warns.
The day-ahead contract at the TTF hub in the Netherlands on Thursday topped $1,490 per thousand cubic meters.
Germany, along with several other Western countries, has taken a series of steps that have led to a reduction in Russian gas supplies. The federal government has imposed external management and nationalized Gazprom Germania, a former subsidiary of Gazprom (MCX:GAZP), which has been placed under blocking Russian counter-sanctions as a result.
We previously reported that the ECB will start cutting the balance sheet in Q2.
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
© Reuters. FILE PHOTO: Workers walk past an under-construction area with completed office towers in the background, in Shenzhen’s Qianhai new district, Guangdong province, China August 25, 2023. REUTERS/David Kirton/File Photo
SHANGHAI (Reuters) – China’s top planning body said on Saturday it had identified a second batch of public investment projects, including flood control and disaster relief programmes, under a bond issuance and investment plan announced in October to boost the economy.
With the latest tranche, China has now earmarked more than 800 billion yuan of its 1 trillion yuan ($140 billion) in additional government bond issuance in the fourth quarter, as it focuses on fiscal steps to shore up the flagging economy.
The National Development and Reform Commission (NDRC) said in a statement on Saturday it had identified 9,600 projects with planned investment of more than 560 billion yuan.
China’s economy, the world’s second largest, is struggling to regain its footing post-COVID-19 as policymakers grapple with tepid consumer demand, weak exports, falling foreign investment and a deepening real estate crisis.
The 1 trillion yuan in additional bond issuance will widen China’s 2023 budget deficit ratio to around 3.8 percent from 3 percent, the state-run Xinhua news agency has said.
“Construction of the projects will improve China’s flood control system, emergency response mechanism and disaster relief capabilities, and better protect people’s lives and property, so it is very significant,” the NDRC said.
The agency said it will coordinate with other government bodies to make sure that funds are allocated speedily for investment and that high standards of quality are maintained in project construction.
($1 = 7.1315 renminbi)
© Reuters. Russian Central Bank Governor Elvira Nabiullina attends a news conference in Moscow, Russia June 14, 2019. REUTERS/Shamil Zhumatov/File Photo
MOSCOW (Reuters) – Russia’s central bank will need two to three months to make sure that inflation is steadily declining before taking any decision on interest rate cuts, the bank’s governor Elvira Nabiullina told RBC media on Sunday.
The central bank raised its key interest rate by 100 basis points to 16% earlier in December, hiking for the fifth consecutive meeting in response to stubborn inflation, and suggested that its tightening cycle was nearly over.
Nabiullina said it was not yet clear when exactly the regulator would start cutting rates, however.
“We really need to make sure that inflation is steadily decreasing, that these are not one-off factors that can affect the rate of price growth in a particular month,” she said.
Nabiullina said the bank was taking into account a wide range of indicators but primarily those that “characterize the stability of inflation”.
“This will take two or three months or more – it depends on how much the wide range of indicators that characterize sustainable inflation declines,” she said.
The bank will next convene to set its benchmark rate on Feb. 16.
The governor also said the bank should have started monetary policy tightening earlier than in July, when it embarked on the rate-hiking cycle.
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