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Uniper (UN01.DE) has already booked billions of euros of losses on derivatives, exacerbating a crisis as it rushed to plug the gap left after Russia turned off the taps. Like other energy firms, Uniper uses derivatives, such as securing an option to sell gas at a set price in the future, to guard against energy price swings. "In total, we have derivative positions of about 216 billion euros as of September 30 2022," a spokesperson for Uniper said, adding that the riskier part of this was small. According to its accounts, Uniper held around 198 billion euros of receivables from derivative instruments as assets. It is also more than the 131 billion euros Germany's RWE (RWEG.DE) had at the end of June, public data shows.

☆ Germany ups reliance on Huawei for 5G despite security fears -survey
▼ + stars: | 2022-12-16 | by ( Sarah Marsh | ) www.reuters.com time to read: +4 min

Many European countries have banned Chinese companies from all or part of their 5G networks on security grounds, amid intense diplomatic pressure from the United States. Germany, home to operators like Deutsche Telekom (DTEGn.DE) and O2 (O2Dn.DE), passed an IT security law two years ago setting high hurdles for makers of telecommunications equipment for the "critical components" of 5G networks. The German network agency referred Reuters to regulation that shows differentiated treatment for core and RAN components. The information security office did not reply to a request for comment on whether the high share of Chinese components could pose a security threat. A strategy paper by Germany's Greens-run economy ministry has recommended increased scrutiny of components from authoritarian states in critical infrastructure.

☆ EU clears Germany's plan to take over gas giant Uniper
▼ + stars: | 2022-12-16 | by ( ) www.reuters.com time to read: +1 min

Companies Uniper SE FollowGazprom PAO FollowBRUSSELS/FRANKFURT, Dec 16 (Reuters) - The European Commission has approved the acquisition of Uniper SE (UN01.DE) by the German government, it said on Friday, paving the way for nationalising the gas trading firm which nearly collapsed after Russia stopped supplying gas. The acquisition was approved under the EU merger regulation after the Commission concluded it would raise no competition concerns. "The transaction was prompted by the ongoing European energy crisis, in particular the cessation of Russian gas deliveries and the sharp rise in gas prices, which resulted in Uniper, Germany's largest importer of Russian gas, requiring significant capital injections to prevent its insolvency," the Commission said. Gazprom (GAZP.MM) used to be Uniper's biggest gas supplier, but deliveries were reduced in the summer and fully halted at the end of August, forcing Uniper to buy gas elsewhere at much higher prices to meet existing contracts. "This is an important step in the proceedings," a spokesperson for Germany's Economy Ministry, which was key in negotiating the nationalisation, said.

☆ Germany's half-a-trillion dollar energy bazooka may not be enough
▼ + stars: | 2022-12-15 | by ( Christoph Steitz | ) www.reuters.com time to read: +8 min

Almost half a trillion dollars, and counting, since the Ukraine war jolted it into an energy crisis nine months ago. The money set aside stands at up to 440 billion euros ($465 billion), according to the calculations, which provide the first combined tally of all of Germany's drives aimed at avoiding running out of power and securing new sources of energy. That equates to about 1.5 billion euros a day since Russia invaded Ukraine on Feb. 24. Energy rationing is a risk in the event of a long cold spell this winter, Germany's first in half a century without Russian gas. There's no security in sight either, with the push to build up of two alternatives to Russian fuel - liquefied natural gas (LNG) and renewables - years away from targeted levels.

☆ Russia improves Q3 economic contraction to 3.7% y/y - revised data
▼ + stars: | 2022-12-14 | by ( ) www.reuters.com time to read: +1 min

Summary This content was produced in Russia, where the law restricts coverage of Russian military operations in Ukraine. MOSCOW, Dec 14 (Reuters) - Russia's economy shrank 3.7% year-on-year in the third quarter of 2022, revised data from the federal statistics service Rosstat showed on Wednesday, an improvement on the previously reported 4.0%. Officials and analysts have been gradually improving GDP forecasts for the full year, but suggested that the overall drop in output may be more prolonged, though less sharp, than first expected. After growing 3.5% in the first quarter, the Russian economy has now slipped into recession, with 4.1% and 3.7% contractions in the subsequent two quarters. Russia's economy ministry forecasts GDP to fall 2.9% in 2022 as a whole.

☆ Brazil economy ministry rejects Lula transition team's judgment on finances
▼ + stars: | 2022-12-11 | by ( Nayara Figueiredo | ) www.reuters.com time to read: +2 min

SAO PAULO, Dec 11 (Reuters) - Brazil's Economy Ministry on Sunday rejected assertions by president-elect Luis Inacio Lula da Silva's transition team that the outgoing administration was leaving government finances "bankrupted." The Economy Ministry said in a statement that gross debt will reach 74% of GDP by the end of the year, with a primary surplus (excluding debt costs) of 23.4 billion reais, the first since 2013. Last week, the Planning and Budget group in Lula's camp said President Jair Bolsonaro is leaving the Brazilian state "bankrupted," according to former minister and transition team member Aloizio Mercadante. Brazil will pay international financial institutions $1.23 billion next year, 20% below the $1.56 billion that was due in 2016, the ministry said. Lula's transition team is in talks to approve a bill allowing 145 billion reais in expenses above the current legally allowed ceiling.

☆ Trade panel sides with Mexico, Canada in auto rules dispute, Mexico says
▼ + stars: | 2022-12-10 | by ( ) www.reuters.com time to read: +1 min

MEXICO CITY, Dec 9 (Reuters) - A dispute panel under a regional trade pact has sided with Mexico and Canada against the United States in a disagreement over regional content requirements for the auto sector, Mexico's presidency said on Friday in a tweet that was later deleted. "The decision could generate more incentives to generate auto parts in our country," the tweet said. Mexico's economy ministry told Reuters it would speak on the subject "once the resolution becomes official." Mexico is also in a trade dispute with the United States regarding its energy policies, which the United States calls nationalist and unfriendly to U.S. firms and a violation of the United States-Mexico-Canada Agreement (USMCA). Reporting by Kylie Madry and Adriana Barrera; Editing by Daina Beth Solomon and Stephen CoatesOur Standards: The Thomson Reuters Trust Principles.

☆ German economy ministry calls for joint EU response to U.S. inflation act
▼ + stars: | 2022-12-09 | by ( ) www.reuters.com time to read: +2 min

BERLIN, Dec 9 (Reuters) - Germany wants a joint European response to the U.S. Inflation Reduction Act that would involve simplifying rules on state support and expanding funding opportunities, according to a German economy ministry document seen by Reuters on Friday. The ministry document also suggests member states could anchor sustainability criteria more firmly in public tenders at the national level as well as extend or increase traditional subsidy programmes, but warned against local content requirements which favour domestic industry. These would not only likely contradict World Trade Organization (WTO) law, according to the document, but also contribute to "a further erosion of the world trade order". The EU and Washington have established a joint task force in hope of resolving the dispute over the $430 billion act. (This story has been corrected to specify that the document is from the economy ministry, not finance ministry; and to clarify in the headline that the ministry calls for, not lays out, a joint response.)

This year, Russia is on track to post a record high current account surplus after its imports of goods and services fell due to Western sanctions while globally high commodity prices boosted its export revenues. Exports rather than import compression are responsible for the majority of the rise, the Institute of International Finance has said. As an oil price cap and export embargo kick in, the surplus will likely decline in 2023. That drop could put further strain on Russia's economy, already saddled with subdued consumer demand, falling disposable incomes and the impact of President Vladimir Putin's partial mobilisation order on workforce numbers. Russia's economy is doomed to see a fall in productivity, with consumption and investments also expected to drop, Nadorshin said, predicting a 5-10% economic contraction in 2023.

☆ Bulgaria to send its first military aid to Ukraine
▼ + stars: | 2022-12-09 | by ( ) www.reuters.com time to read: +1 min

SOFIA, Dec 9 (Reuters) - Bulgaria will send its first military aid to Ukraine since the Russian invasion after parliament on Friday approved a list of arms drawn up by the interim government. It had been one of the few EU countries not to send aid after the Russia-friendly Socialist party, a coalition partner in the previous government, blocked a previous proposal in May. The list of arms is classified, but government officials have said Sofia would mainly send light weaponry and ammunition. While Bulgaria has not been sending arms to Ukraine, its arms manufacturers have seen a surge in exports, a report by the Bulgarian Industrial Association showed in November. A total of 148 lawmakers from the 240-seat parliament voted to send the aid on Friday, with the Socialists and the pro-Russian Revival party voting against.

☆ Germany to force energy providers to justify future price hikes
▼ + stars: | 2022-12-03 | by ( ) www.reuters.com time to read: +1 min

Dec 3 (Reuters) - The German government plans to allow energy providers to raise prices next year only if objectively justified, the economy ministry said on Saturday, denying a media report that Berlin planned a ban on all energy price hikes for consumers. "Not every price increase is automatically illegal," an economy ministry spokesperson said, but added that the ban would apply to unjustified price hikes that exploited consumers. Mass-selling Bild newspaper reported the government wants to ban all electricity and gas suppliers from increasing prices next year. Energy suppliers in Germany would have to prove that the price increases they plan are justified, for instance if they have rising procurement costs, the ministry added. The cabinet approved a cap on gas and electricity prices in an expedited process last month as part of efforts to tackle soaring energy bills for households and businesses.

☆ Russia's more gradual economic contraction to extend into 2023
▼ + stars: | 2022-12-02 | by ( Alexander Marrow | ) www.reuters.com time to read: +3 min

After initially dire predictions of a double-digit GDP slump, analysts and officials have gradually been improving forecasts as the Russian economy demonstrates better-than-anticipated resilience. But the decline will continue at a similar pace in 2023, with analysts now forecasting a 2.5% drop. Over time, economists have acknowledged that the contraction is likely to be less sudden, but more prolonged than first expected. "We cannot rule out a deeper contraction next year when compared with 2022, it could be 5-6%." After a rate hold on Dec. 16, the bank will continue easing monetary policy in 2023, the poll suggested, with the key rate set to end next year at 6.75%.

☆ German government not planning blanket Huawei ban
▼ + stars: | 2022-12-02 | by ( ) www.reuters.com time to read: +3 min

BERLIN, Dec 2 (Reuters) - Germany does not want to follow the United States in generally banning products made by Chinese telecoms equipment makers such as Huawei, but will continue making such decisions on a case-by-case basis, an Economy Ministry spokesperson said on Friday. A German Economy Ministry strategy paper seen by Reuters on Thursday detailed recommendations to increase the level of scrutiny on the use of components from certain states. The paper mentions legislation introduced in Germany in 2020 that set high hurdles for makers of telecommunications equipment for next-generation networks, such as Huawei. When asked whether it expected a tightening of rules or even a ban in Germany or the European Union, Huawei told Reuters on Friday it relied on constructive and facts-oriented dialogue. Representative Michael McCaul, top Republican on the U.S. House Foreign Affairs Committee, said Germany was "jeopardizing its own national security and that of Europe's" in its decision on Huawei.

☆ German economy ministry plans subsidies for climate-friendly production -document
▼ + stars: | 2022-11-30 | by ( Moushumi Basu | ) www.reuters.com time to read: +1 min

BERLIN, Nov 30 (Reuters) - German Economy Minister Robert Habeck plans to award companies in energy-intensive industries like chemicals and steel 15-year subsidy contracts if they reduce carbon emissions in their production, a document seen by Reuters on Wednesday showed. According to the document, which still needs to be discussed with other ministries, companies which demonstrate that they are reducing emissions in their production process will qualify for upfront investment and annual funding. With the price of conventional production rising due to increasingly expensive carbon pollution payments, the state will be able to be reimbursed by companies if their carbon costs rise higher than the initially more expensive carbon-free production methods. "Climate protection contracts therefore not only lead to a reduction in emissions from the subsidized industry," Habeck's document read. "They also provide an incentive for the technologies and infrastructure required for this to be developed and implemented in Germany now."

☆ Russian economy shrinks 1.7% in Jan-Sept, but capital investment up
▼ + stars: | 2022-11-30 | by ( Brendan O'Brien | ) www.reuters.com time to read: +2 min

Capital investment rose 5.9% year-on-year between January and September to reach 16.418 trillion roubles ($271.65 billion), Rosstat said. Data also showed that retail sales, the gauge of consumer demand, declined 9.7% in October in year-on-year terms after a 9.8% fall in the previous month. All that comes as consumer prices climbed for the 10th week running, perhaps giving the central bank pause for thought. The Bank of Russia is widely expected to keep its key rate unchanged at 7.5% when its board meets on Dec. 16. ($1 = 60.4390 roubles)Reporting by Alexander Marrow and Darya Korsunskaya; Editing by Mark TrevelyanOur Standards: The Thomson Reuters Trust Principles.

Summary poll dataBUENOS AIRES/MEXICO CITY, Nov 29 (Reuters) - Brazil stocks will rally by double-digits through end-2023, despite uncertainty about new government policies as President-elect Luiz Inacio Lula da Silva seeks to balance social priorities and budget constraints, a Reuters poll predicted. The benchmark Bovespa stock index (.BVSP) is set to rally 13% by end-2023 to 123,250 points from 108,976 points on Friday, according to the median estimate of 11 strategists polled Nov. 14-23. The Ibovespa (index) is still at a discount, awaiting government news," said Fernando Bresciani, research analyst at Andbank. Members of his transition group have voiced contrasting opinions on 2023 budget talks and the leadership race for the Inter-American Development Bank (IDB). Private economists in a central bank weekly poll projected an expansion rate of just 0.7%.

A view of damaged electrical wires after Ukrainian army retaken control from the Russian forces in Lyman, Ukraine on November 27. (Metin Aktas/Anadolu Agency/Getty Images/FILE)Ukrainian Prime Minister Denys Shmyhal said that the second winter season of the war "will be very challenging." Shmyhal said that "all regions of Ukraine, except Kherson region, are supplied with power. Shmyhal said the situation required a strong air defense and quick repairs of damaged power equipment. Obtaining additional power equipment was also a priority, he said.

☆ Bolivia's key farming hub ends strike as lawmakers back census
▼ + stars: | 2022-11-26 | by ( ) www.reuters.com time to read: +1 min

LA PAZ, Nov 26 (Reuters) - A 36-day general strike in Bolivia's key farming region of Santa Cruz came to an end on Saturday, as lawmakers approved a guarantee to hold a population census in 2024, which will likely hand the region more tax revenues and seats in Congress. "We are lifting the strike and the blockades," local civic leader Romulo Calvo told reporters. Bolivia's economy ministry estimates the strike has cost the country over $1 billion. The census law, which Bolivia's Chamber of Deputies passed early Saturday morning with over two-thirds of votes, has been sent to the Senate for review before it is enacted by President Luis Arce. Regional leaders in soy-rich Santa Cruz said they would remain on standby until the law is approved.

☆ German economy beats expectations with 0.4% growth in Q3
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Nov 25 (Reuters) - The German economy grew slightly more in the third quarter than preliminary figures suggested, bolstered by consumer spending, data showed on Friday. Europe's largest economy grew by 0.4% quarter on quarter and 1.3% on the year, adjusted for price and calendar effects, the federal statistics office said. Analysts polled by Reuters had expected the economy to grow by 0.3% in the third quarter on quarter and 1.2% on the year. In the previous quarter, the German economy grew slightly, by 0.1% quarter on quarter. In its latest forecast, the government predicted the economy would grow by 1.4% this year and slump by 0.4% next year.

☆ Exclusive: Poland seeking German support to sanction Russian Druzhba oil pipeline
▼ + stars: | 2022-11-25 | by ( ) www.reuters.com time to read: +3 min

The EU has pledged to stop buying Russian oil via maritime routes from Dec. 5 but Druzhba is currently exempt from sanctions. The southern section of the pipeline supplies Hungary, Slovakia and the Czech Republic which, unlike Poland and Germany, would struggle to diversify their oil imports. Poland and Germany promised in spring to try to end Russian oil imports via Druzhba's northern leg by the end of year but Orlen remains tied to its contract with Russian oil and gas company Tatneft. The company has already cut its reliance on Russian oil to 30% of its requirement, replacing it with deliveries from Saudi Arabia and Norway among others. Kommersant newspaper reported earlier this month that Orlen had submitted an application to the Russian oil pipeline operator Transneft for the supply of 3 million tonnes of oil to Poland through Druzhba in 2023.

[1/5] Italian Prime Minister Giorgia Meloni speaks during a news conference to present her government's first budget in Rome, Italy, November 22, 2022. Meloni, a fiery conviction politician, has often spoken out against Italy's reliance on technocrats to solve its economic problems and lambasted alleged interference from "high international finance" and "Brussels bureaucrats". During the election campaign Meloni called in vain for her predecessor Mario Draghi to freeze the sale of a majority stake in ITA. PUSHBACKDeputy Economy and Finance Minister Maurizio Leo, an adviser to Meloni, had proposed splitting his ministry by hiving off the finance department responsible for tax matters. The head of the finance department, Fabrizia Lapecorella, has asked to move to another ministry, two sources said.

☆ Germany — burned by overrelying on Russian gas — now vows to end dependence on trade with China
▼ + stars: | 2022-11-24 | by ( Huileng Tan | ) www.businessinsider.com time to read: +3 min

Germany's dependence on Russian gas is sparking a rethink of Berlin's foreign policy. Germany, an industrial powerhouse and Europe's biggest economy, is reliant on piped natural gas from Russia which accounts for 35% of the country's fuel imports. Europe's largest economy has since been diversifying away from Russian natural gas by importing liquefied natural gas from other countries and is racing to build more essential infrastructure to hasten the shift. It has also learnt a lesson from its Russia policy. In particular, Berlin is working on a new trade policy with China to cut dependence on Chinese raw materials, batteries, and semiconductor chips, Reuters reported in September.

☆ Brazil boosts forecast for 2022 budget surplus forecast to $4 bln
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: +2 min

The Economy Ministry forecast a 23.4 billion reais ($4.4 billion) primary budget surplus for the central government, comprising Brazil's Treasury, central bank and Social Security, up from September's estimate for a 13.5 billion reais surplus. If confirmed, the result will be further away from the official target of a 170.5 billion reais deficit for 2022. In its latest bi-monthly revenue and expenditure report, the ministry improved by 11.1 billion reais the outlook for federal net revenues this year, helped mainly by more dividends from state-owned companies. Lula's transition government is currently working on a proposal to amend the Constitution to exempt social spending from the budget cap, which should significantly worsen next year's budget balance. ($1 = 5.3517 reais)Reporting by Marcela Ayres; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ Brazil government improves primary budget surplus forecast for $4 bln in 2022
▼ + stars: | 2022-11-22 | by ( ) www.reuters.com time to read: 1 min

BRASILIA, Nov 22 (Reuters) - Brazil's Economy Ministry projected on Tuesday a primary budget surplus of 23.361 billion reais ($4.37 billion) for the central government this year, according to its latest bi-monthly revenue and expenditure report. The forecast came in better than the 13.548 billion reais surplus estimated in September. ($1 = 5.3517 reais)Reporting by Marcela AyresOur Standards: The Thomson Reuters Trust Principles.

☆ Germany wants to boost gas trading hub credit line to 20 bln euros - document
▼ + stars: | 2022-11-21 | by ( ) www.reuters.com time to read: +1 min

BERLIN, Nov 21 (Reuters) - Germany wants to give an additional 5 billion euros' ($5.1 billion) worth of credit to the nationwide gas market trading hub to enable forward sales from gas storage facilities, according to a finance ministry document seen by Reuters. That brings the total amount of credit for Trading Hub Europe (THE) to 20 billion euros, says the document seen on Monday. THE is a subsidiary of the country's gas network operators and is responsible for the gas market in Germany. Gas purchases were already being made through THE with loans secured by the federal government in order to fill the storage facilities in Germany. According to the note, the economy ministry had ordered in late September that 35% of stored gas volumes be sold via the futures market and 35% via the spot market this winter.

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