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☆ Ecuador's slimmer budget blueprint for next year shrinks deficit
▼ + stars: | 2022-10-31 | by ( ) www.reuters.com time to read: +2 min

QUITO, Oct 31 (Reuters) - Ecuador's government predicts its budget deficit will narrow to$2.63 billion next year as it benefits from more economic growth and oil production, according to a draft spending blueprint announced by the economy ministry on Monday. The South American country should see a narrower 2023 deficit of $2.63 billion, down from $3.78 billion projected in the initial 2022 spending plan, the ministry said, citing a draft budget that would land 7% below levels approved for this year. President Guillermo Lasso, a conservative former banker, drafted a 2023 budget of $31.50 billion, down from the $33.90 billion approved for 2022. The draft budget must still be approved by Congress, made up of majority opposition lawmakers, who have 30 days to vote on it. Social investments under the plan total $15.28 billion, it added, including more spending on health, education, social security payments and university allocations.

ROME, Oct 31 (Reuters) - Italy's new government on Monday delayed the application of a justice reform required to obtain European post-pandemic funds and scrapped a COVID-19 vaccine mandate for health workers. Both moves mark discontinuity from the previous administration of Mario Draghi, who imposed tough COVID curbs and pushed through the contested justice reform aimed at speeding up Italy's slow judicial proceedings. Speaking at a news conference after cabinet approved the measures, Meloni accused her predecessors, Draghi and Giuseppe Conte, of taking an "ideological" approach to COVID and said she would do things differently. It would have been hard to start in a worse way," said Enrico Letta, head of the centre-left Democratic Party. The decision to delay the reform, which Meloni said was taken at the request of all Italy's prosecutors' offices, sparked criticism from the opposition, lawyers, and experts.

☆ Factbox: Germany's LNG import project plans
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +2 min

FRANKFURT, Oct 28 (Reuters) - Germany is acquiring liquefied natural gas (LNG) terminals as part of its efforts to diversify away from Russian gas. Wilhelmshaven will become the first LNG hub and Brunsbuettel the second, to be developed by Uniper UN01.DE and RWE RWEG.DE, respectively. Later, facilities to import ammonia and set up an electrolysis plant for turning ammonia into clean hydrogen will be set up at the location. Dutch gas network operator Gasunie, which has a 40% stake in the FSRU project, is planning two related gas pipelines. Shell (SHEL.L) has committed itself to some guaranteed purchases.

☆ Germany's Solar Valley could shine again as Europe strives to close energy gap
▼ + stars: | 2022-10-28 | by ( Riham Alkousaa | ) www.reuters.com time to read: +6 min

It is also reacting to a new U.S. law that has raised concern the remains of Germany's formerly-dominant solar industry could relocate to the United States. China's production is also around 10%-20% cheaper that in Europe, separate data from European Solar Manufacturing Council ESMC shows. Dries Acke, the Policy Director at industry body SolarPower Europe, said the body had written to the European Commission urging action. Berlin-based residential solar energy supplier Zolar said orders have risen by 500% year-on-year since the Ukraine war began in February, but clients might have to wait for six-to-nine months to get a solar system installed. "The signs for the solar industry in Germany are much, much better now," he said.

☆ EXCLUSIVE Russia's finance ministry cuts 2023 taxable oil expectations
▼ + stars: | 2022-10-28 | by ( ) www.reuters.com time to read: +3 min

Of this, refining volumes were revised down by 56 million tonnes, or almost 20%, to 230.1 million tonnes from 286.1 million tonnes seen in previous forecast. Oil exports, eligible for exports duty, are expected at 178.2 million tonnes, down 19.4% from the earlier made projections. "The estimate for 2022 was reduced to 515 million tonnes, in 2023 to 490 million tonnes. In 2024-2025, the level of oil production will average about 500 million tonnes," it said. So far, Russian oil production, the third-largest after the United States and Saudi Arabia, has been resilient to sanctions, buoyed by rising sales to China and India. .

☆ Russia holds rates at 7.5%, cautions on inflationary effects of mobilisation
▼ + stars: | 2022-10-28 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

Central Bank Governor Elvira Nabiullina, dressed in black with a dab of floral print, said that the bank wanted to give a neutral signal to the market on rates. INFLATIONInflation, which the central bank targets at 4%, stood at 12.9% as of Oct. 24, according to the economy ministry. The central bank tweaked its year-end inflation forecast to 12-13% from 11-13%. "According to the Bank of Russia's forecast, given the monetary policy stance, annual inflation will drop to 5.0–7.0% in 2023 to return to 4% in 2024." The central bank improved its GDP forecast for this year to a contraction of 3-3.5% from an expected 4-6% decline previously.

☆ Germany plans to approve Chinese takeover of Elmos' chip production - Handelsblatt
▼ + stars: | 2022-10-27 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Oct 27 (Reuters) - The German government plans to approve a Chinese takeover of the chip production of Dortmund-based company Elmos, business daily Handelsblatt reported on Thursday, citing government sources. The economy ministry is examining the sale of Elmos' chip factory to competitor Silex, a Swedish company that is a subsidiary of Chinese group Sai Microelectronics, Handelsblatt reported, adding approval is expected in the coming weeks. The expected decision would mean the government would likely defy advice from the domestic intelligence agency, Handelsblatt added. The economy ministry had no immediate comment when contacted by Reuters. ($1 = 0.9967 euros)Reporting by Christian Kraemer and Matthias Inverardi Writing by Paul Carrel, editing by Rachel MoreOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil's Treasury to receive $8.5 billion from development bank BNDES this year
▼ + stars: | 2022-10-25 | by ( ) www.reuters.com time to read: +1 min

BRASILIA, Oct 25 (Reuters) - Brazil's Treasury will receive 45 billion reais ($8.5 billion)from loans it has granted to development bank BNDES in the past, the Economy Ministry said on Tuesday, an action that will help reduce the country's gross debt. The amount still owed by BNDES totals 69.1 billion reais, and the bank will pay the Treasury 45 billion reais by November 30th, the ministry said in a statement. The remaining 24.1 billion reais will be paid off by November 30, 2023, it added. Between 2008 and 2015, under the administrations of the leftist Workers Party (PT), the Brazilian Treasury transferred more than 500 billion reais to the development bank, weakening public finances and squeezing commercial lenders out of capital markets. According to the latest data from the central bank, Brazilian gross debt stands at 77.5% of GDP.

☆ Italy's Meloni tells president she is ready to become prime minister
▼ + stars: | 2022-10-21 | by ( Crispian Balmer | ) www.reuters.com time to read: +3 min

Brothers of Italy leader Giorgia Meloni arrives for a meeting with Italian President Sergio Mattarella at the Quirinale Palace in Rome, Italy October 21, 2022. REUTERS/Guglielmo MangiapaneSummary Meloni set to become Italy's first woman PMNew government could be sworn in at weekendBerlusconi irks allies with pro-Putin commentsROME, Oct 21 (Reuters) - Italy's Giorgia Meloni told President Sergio Mattarella on Friday that she was ready to become prime minister and could swiftly form a new government despite tumult within her right-wing coalition. Meloni, head of the nationalist Brothers of Italy party, met the president alongside her main allies -- Matteo Salvini, who leads the far-right League, and Silvio Berlusconi, founder of the conservative Forza Italia party. "We are ready to form a government as quickly as possible," Meloni told reporters after the unusually short meeting, which lasted barely 15 minutes. The conservative bloc won a commanding parliamentary majority at a Sept. 25 general election, with Meloni's party taking the most votes, putting her in pole position to become Italy's first female prime minister.

☆ Factbox: Energy crisis revives coal demand and production
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +6 min

France - The Emile Huchet coal power plant restarted in early October, only six months after it closed, according to local media. Netherlands - Dutch energy minister Rob Jetten said in June the Netherlands will remove a production cap at coal-fired energy plants to preserve gas. In June, it said it plans to "increase thermal coal production from existing mines this year maximum by 1.5 million tonnes". Spain - The ministry for the ecological transition requested in May the delay of Endesa's As Pontes coal power station closure. (** Note that Ukraine's government has stopped releasing coal production data since the start of the war).

☆ Germany to cap electricity prices by taxing excess profits
▼ + stars: | 2022-10-19 | by ( Markus Wacket | ) www.reuters.com time to read: +3 min

BERLIN, Oct 19 (Reuters) - Germany's government plans to introduce a cap on electricity prices for households and industry to ease the impact of soaring energy costs, a ministry document seen by Reuters on Wednesday showed. To help finance the cap and pay for the stabilisation of power transmission grids, Berlin is considering skimming off some of electricity companies' profits, the document showed. Its design would be similar to a price brake for gas, details of which the government announced earlier this month, the document showed. As part of the plan, Berlin may skim off 90% of the power profits that electricity companies make above production costs, the paper showed. For spot prices, the levy would apply retroactively from March, and for future prices from December, it said.

☆ Germany to examine plans for skimming excess power profits
▼ + stars: | 2022-10-19 | by ( ) www.reuters.com time to read: +1 min

FRANKFURT, Oct 19 (Reuters) - Germany's government plans to examine detailed proposals for skimming off excess power profits above production costs to help subsidise electricity bills and pay for the stabilisation of power transmission grids, a paper seen by Reuters on Wednesday showed. The move comes amid as Europe faces an energy crisis, prompted by Russia's invasion of Ukraine, that has seen the European Union and national governments launch price brake measures for power, gas and other fuels. Register now for FREE unlimited access to Reuters.com RegisterBoth household and industry consumers have been hit by runaway wholesale power prices, as a lack of gas drove up prices. The paper, from Germany's Economy Ministry, showed that power production from hard coal, gas and biomethane would not be included in the measures, which are separate to subsidy plans in the general budget. Register now for FREE unlimited access to Reuters.com RegisterReporting by Markus Wacket and Vera Eckert, editing by Miranda Murray and Alex RichardsonOur Standards: The Thomson Reuters Trust Principles.

☆ Estonia turns back to shale oil as it cuts off Russian power
▼ + stars: | 2022-10-19 | by ( Janis Laizans | ) www.reuters.com time to read: +2 min

AUVERE, Estonia, Oct 19 (Reuters) - When Baltic states switched off Russian power and halted other imports in response to Moscow's invasion of Ukraine, Estonia restarted its shale oil power plants and set back its efforts to phase out heavily polluting fuels. "This is just to replace the missing power supplies and compensate for high power prices." "This is just to replace the missing power supplies and compensate for high power prices," Stutter said of the shift back to shale oil. About 80% of cost of power from the power plants are environmental taxes. Eesti Energia said it had hired 600 people this year to ramp up shale oil production and to staff the power plants.

☆ German spy chief: 'Russia is the storm, China is climate change'
▼ + stars: | 2022-10-17 | by ( Sarah Marsh | ) www.reuters.com time to read: +2 min

German and Chinese national flags fly in Tiananmen Square ahead of the visit of German Chancellor Angela Merkel in Beijing, China, May 23, 2018. Register now for FREE unlimited access to Reuters.com RegisterChina has urged Germany not to politicize the countries' economic relations or engage in protectionism "in the name of national security". "In the case of a political disagreement between China and Germany, these instruments will be used," he said. The head of Germany's domestic intelligence service, Thomas Haldenwang, said stakes in critical infrastructure could also open the door to sabotage and influence on public opinion. "When I speak with foreign partners about China, they always say: Russia is the storm, China is climate change," he said.

☆ Indicators point to hard winter for Germany - economy ministry
▼ + stars: | 2022-10-14 | by ( ) www.reuters.com time to read: 1 min

BERLIN, Oct 14 (Reuters) - The German economy is facing a difficult winter based on the current economic indicators, the Economy Ministry warned on Friday in its monthly report. It pointed to the government's fall projection, which forecasts three negative quarters in a row beginning with the third quarter of 2022. Register now for FREE unlimited access to Reuters.com RegisterWriting by Miranda Murray Editing by Paul CarrelOur Standards: The Thomson Reuters Trust Principles.

☆ Former German Chancellor Merkel defends her government's move to buy massive amounts of Russian gas, saying she has no regrets as it was right for the time
▼ + stars: | 2022-10-14 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

The former German Chancellor said she had no regrets about her government's energy policy, per Reuters. "You always act in the time in which you find yourself," Merkel told reporters in Lisbon, according to Reuters. Merkel was referring to liquefied natural gas, a supercooled version of natural gas that can be transported via ships. She recently came under heavy scrutiny and criticism from political rivals, the press, and her peers for her Russia policy amid Moscow's invasion of Ukraine. Germany's Russian gas policy spanned decades, starting during the Cold War in the 1960s with the Pipelinepolitik policy that connected both sides with a pipeline.

ROME, Oct 13 (Reuters) - Giancarlo Giorgetti, a former industry minister and the deputy leader of the right-wing League party, looked well placed to become Italy's next economy minister on Thursday after getting the backing of the conservative coalition chief. "I think Giancarlo Giorgetti would be an excellent economy minister," Giorgia Meloni, expected to be named prime minister this month, told reporters in parliament. "If the League wants me at the economy ministry I'll go there," Giorgetti told reporters shortly before Meloni's comments, in a shift from previous, more cautious remarks. Asked by Reuters early on Thursday whether he would be willing to become economy minister, he replied: "if you're asked to do something you reflect and ask yourself if you'd be able to do it. I don't know if I'd be able to be economy minister."

German and Chinese national flags fly in Tiananmen Square ahead of the visit of German Chancellor Angela Merkel in Beijing, China, May 23, 2018. German investment and trade in China hit record levels in the first half of 2022 and big business says there's no question of pulling back from the world's second-biggest economy. A spokesperson for the economy ministry said it was closely following the investment behaviour of German companies as part of its strategic considerations on how to deal with China. The economy ministry declined to comment when asked about a meeting next year, or the remarks about Habeck. Reuters reported last month that the economy ministry was considering curbing export and investment guarantees as part of its new China strategy.

☆ Polish pipeline operator PERN says leak detected in Druzhba oil pipeline
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: +2 min

Companies Pern Spólka Akcyjna FollowWARSAW, Oct 12 (Reuters) - Polish operator PERN has detected a leak in one pipeline in the Druzhba system that carries oil from Russia to Europe, it said on Wednesday, an event that will add to concerns about Europe's energy security after the Nord Stream gas leak. It was detected in a section of the pipe around 70 kilometres from the central Polish city of Plock. The second line of the pipeline, and other elements of PERN's infrastructure, were working as normal, PERN said. A spokesperson for the Czech pipeline operator MERO said it had not seen any change in flows to the Czech Republic. It was not immediately clear how significant the leak in the Druzhba pipeline was.

"The mobilisation declaration and the strengthening of geopolitical and sanctions risk are launching the second wave of the economic crisis," said Evgeny Suvorov, an economist at CentroCreditBank, expecting Russia's economic contraction to worsen in the final months of the year. But there was no acknowledgement of any link to his sudden partial mobilisation announcement on Sept. 21. The central bank on Tuesday said economic activity in Russia slowed significantly at the end of September. "The main consequence of mobilisation is the loss of human capital," said veteran economist Natalya Zubarevich. "It was possible to count exclusively on human capital to pull the economy through, but now a part of this human capital of productive age is subject to mobilisation and another part is leaving," Polevoy said.

☆ Brazil's Guedes says IMF overlooked inflation surge, praises Brazil for 'acting early'
▼ + stars: | 2022-10-11 | by ( Yousef Saba | ) www.reuters.com time to read: +2 min

BRASILIA, Oct 11 (Reuters) - Brazilian Economy Minister Paulo Guedes criticized the International Monetary Fund for failing to spot surging inflation, saying it led to "misguided" advice, in contrast to early action in Brazil that he said has put the country ahead of the curve in controlling rising prices. "Unfortunately, IMF bilateral and multilateral surveillance have overlooked the nature, magnitude, and extension of the inflation surge that started during 2021. As a result, Fund policy advice was misguided in several instances," Guedes said. Register now for FREE unlimited access to Reuters.com RegisterAt the same time, Guedes praised the performance of the Brazilian economy, saying that the country is "positively surprising skeptics, including the IMF." Register now for FREE unlimited access to Reuters.com RegisterReporting by Marcela Ayres; Editing by Leslie AdlerOur Standards: The Thomson Reuters Trust Principles.

☆ Caixabank proposes sector-wide freeze in variable mortgage costs, source says
▼ + stars: | 2022-10-11 | by ( ) www.reuters.com time to read: +2 min

MADRID, Oct 11 (Reuters) - Caixabank (CABK.MC), Spain's biggest lender by domestic assets, has proposed a sector-wide measure to cushion the rise in payments on variable mortgage contracts for a year, a source with direct knowledge of the matter said on Tuesday. The source said that the proposal was being debated among lenders and could still change. Register now for FREE unlimited access to Reuters.com RegisterThe Spanish banking association (AEB), the country's economy ministry and Caixabank declined to comment. The association for savings banks CECA, of which Caixabank is a member, was not immediately available for comment. Caixabank is the market leader in the mortgage business in Spain with a 25.4% share as of June.

☆ Possible extension of Germany's nuclear power at risk -econ ministry
▼ + stars: | 2022-10-10 | by ( ) www.reuters.com time to read: +2 min

But disagreements within the German cabinet could jeopardize the possible lifespan extension for the Isar II power plant, a spokesperson for the Economy Ministry told Reuters. The plant operator needs clarity on the government's plans before starting the maintenance, the Economy Ministry spokesperson said. Monday's decision was delayed due to objections from the finance ministry, a source told Reuters. The ministry is run by the Free Democrats party, which has been demanding a longer lifespan extension for the reactors. "The finance ministry is of the opinion that the proposed continued operation of only two power plants alone is not sufficient," a finance ministry source said.

☆ Taiwan signals its chip firms will follow new U.S. rules on China
▼ + stars: | 2022-10-08 | by ( ) www.reuters.com time to read: +3 min

Taiwan, a major chip producer, is home to Taiwan Semiconductor Manufacturing Co (TSMC) (2330.TW), the world's largest contract chipmaker and a major supplier to companies including Apple Inc (AAPL.O). "In addition to complying with domestic laws and regulations, it will also cooperate with the needs of international customers who place orders and the norms of customers in their countries." Taiwan has its own concerns about China, especially efforts by Chinese companies to poach chip talent and technical know-how. The government tightly restricts Taiwanese chip investment in China, the island's largest trading partner. She will visit U.S. tech firms that are major customers of Taiwanese semiconductor companies.

☆ The US is supporting efforts to investigate the 'apparent sabotage' of the Nord Stream pipelines, says security advisor Jake Sullivan
▼ + stars: | 2022-09-28 | by ( Nidhi Pandurangi | ) www.businessinsider.com time to read: +4 min

US security advisor is speaking to his Danish counterpart about the "apparent sabotage" of the Nord Stream pipelines. The US is supporting investigation efforts and will continue safeguarding Europe's energy security, he said. "I spoke to my counterpart Jean-Charles Ellermann-Kingombe of Denmark about the apparent sabotage of Nord Stream pipelines," Sullivan tweeted Tuesday night. "The U.S. is supporting efforts to investigate and we will continue our work to safeguard Europe's energy security," he added. The Nord Stream 2 natural-gas pipeline, which runs parallel to Nord Stream 1, has never been operational because Germany shelved the project in February, days before Russia invaded Ukraine.

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