European Reality Check

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ECB cheat sheet: Wake up, this isn’t the Fed!

A 50bp hike by the European Central Bank, and a repeat of its December guidance, are set in stone but a pushback against subsequent cut expectations will…

think.ing.com

 

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The euro zone beat expectations on Tuesday by posting positive growth in the final quarter of 2022 and reducing fears of a potential regional recession.

Preliminary Eurostat data released Tuesday showed that the euro zone grew 0.1% in the fourth quarter. Economists had pointed to a 0.1% contraction over the same period, according to Reuters.
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Euro zone economy posts surprise expansion in the fourth quarter, curbing recession fears

Euro zone narrowly avoided a contraction as energy prices provide some relief.

www.cnbc.com

 

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FRANKFURT (Reuters) - The European Central Bank raised interest rates for the fifth successive time on Thursday and signalled another half a percentage point increase for March, pressing ahead with policy tightening even as some global peers are slowing down.

ECB hikes rates, promises another 50 bps more in March

 

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Companies In UK Are Hitting The Wall At Fastest Rate Since Global Financial Crisis | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

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Riksbank set for 50bp rate hike on weak krona and tight jobs market

Further weakness in the Swedish krona and the prospect of higher wage growth point to a larger rate hike than the Riksbank had signalled in November. From an…

think.ing.com

 

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Cost of living: Big banks' bosses defend savings rates and branch closures

The bosses of Lloyds, NatWest, HSBC and Barclays said deals had improved as savers shopped around.

www.bbc.com

 

[pmbug]

Europe imposing more overhead on foreign companies will lead to increased costs (meaning more inflation pressures):

https://mishtalk.com/economics/the-eu-warns-there-is-no-escape-from-its-esg-environment-madness

 

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Key events in EMEA next week

The Polish labour market is holding up well – we expect an upswing in unemployment this January, but the scale of increase should be rather moderate by…

think.ing.com

 

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LONDON, Feb 20 (Reuters) - Britain and the European Union are edging closer to an agreement on solving a dispute over their post-Brexit trading arrangements with Northern Ireland, but any resolution hangs in the balance as it will have to please the demands of several parties.

Below are details on what the different parties want.

Explainer: What is the Northern Ireland protocol and what is the latest?

Britain and the European Union are edging closer to an agreement on solving a dispute over their post-Brexit trading arrangements with Northern Ireland, but any resolution hangs in the balance as it will have to please the demands of several parties.

www.reuters.com

 

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COPENHAGEN, Feb 20 (Reuters) - Denmark should aim to reduce beef and dairy production by levying an emissions tax on farming of 750 Danish crowns ($108) per tonne in order to reach its ambitious climate targets, the government's independent adviser said on Monday.

Such a tax on farming will increase the incentive for farmers to switch to crops and pork production which emit less greenhouse gases than cattle, according to a report by the Danish Climate Council, which provides recommendations to the government.

Taxing farming vital for Denmark's climate target - govt adviser

Denmark should aim to reduce beef and dairy production by levying an emissions tax on farming of 750 Danish crowns ($108) per tonne in order to reach its ambitious climate targets, the government's independent adviser said on Monday.

www.reuters.com

 

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Food companies under pressure to source deforestation-free products under new EU law

The EU's deforestation regulation raises the bar for sustainable sourcing of several commodities and will impact many food companies in some way.…

think.ing.com

 

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LONDON/BRUSSELS (Reuters) - The price of carbon emissions permits in Europe's carbon market, the world's most established, hit a record high of 100 euros ($107) per tonne on Tuesday.

Here's what you need to know about the European Union's emissions trading system (ETS) and sectors affected by rising costs in the scheme:

Explainer-Which industries pay CO2 costs in Europe?

 

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Russian gas out, renewables in? Europe clings to green goals | Context

Despite a hunt for new gas and cash shortages, the European Union has stuck to its clean energy goals, analysts say

www.context.news

 

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It was a day for grim inflation readings in Europe, as one report showed the surge in costs at grocery stores in the U.K.

Data from Kantar, covering the four weeks ending Feb. 19, showed grocery inflation reached 17% year-over-year, which it said was the highest it’s ever recorded. That comes even before the latest supply crunch to hit the U.K. as tomatoes and other key vegetables were in short supply. ...
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Measured by the European Union’s harmonized standards, French inflation rose to 7.2% year-over-year in February from 7% in January, while Spain’s consumer prices rose 5.8% year-over-year in January, after a 5.5% rise in December.

In France, food inflation was 14.5% year-over-year.
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U.K. grocery inflation reaches startling 17% as French and Spanish consumer price data surprise on the upside

It was a day for grim inflation readings in Europe, as one report showed the surge in costs at grocery stores in the U.K.

www.marketwatch.com

 

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France seeks 'nuclear alliance' at EU energy meeting​

BRUSSELS, 27. FEB, 16:23

France is building an alliance of pro-nuclear states to advocate for expanding nuclear power in the bloc.

EU energy ministers are meeting on Monday and Tuesday (27 and 28 February) to discuss issues ranging from security of supply to the upcoming electricity market reform.

More:

France seeks 'nuclear alliance' at EU energy meeting

France is building an alliance of 12 pro-nuclear states to advocate for expanding nuclear power in the bloc.

euobserver.com

 

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Europe’s benchmark natural gas prices fell in February for the third consecutive month, extending the monthly losing streak to the longest since 2020, as milder weather, comfortable inventories, and a plunge in demand dragged down prices.

European Natural Gas Prices Post Longest Monthly Losing Streak Since 2020 | OilPrice.com

European natural gas prices fell for the third consecutive month, the longest losing streak since 2020.

oilprice.com

 

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LONDON (Reuters) - The European Union said on Wednesday it had reached a deal on the world's first set of comprehensive rules for issuing green bonds to meet the bloc's net zero goals, although compliance will be on a voluntary basis.

EU member states and the European Parliament jointly agreed on Tuesday standards for companies that want to use the term "European green bond" or EuGB.

EU agrees world's first bond issuance rules to combat greenwashing

 

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ECB confronts a cold reality: companies are cashing in on inflation

Huddled in a retreat in a remote Arctic village, European Central Bank policymakers faced up last week to some cold hard facts: companies are profiting from high inflation while workers and consumers foot the bill.

www.reuters.com

 

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UK logistics leaders have welcomed changes to the Northern Ireland Protocol contained in the ‘Windsor Framework’, announced by the UK and EU this week.

Representatives from retail, forwarding and customs in the UK said the deal – still subject to a vote by MPs – would not only reduce post-Brexit tension with the EU, but ease the flow of goods across the Irish Sea.

UK logistics welcomes the 'end of the Irish Sea border' - The Loadstar

UK logistics leaders have welcomed changes to the Northern Ireland Protocol contained in the Windsor Framework announced by the UK and EU.

theloadstar.com

 

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Total assets on the ECB’s balance sheet, released today, plunged by €1.005 trillion from the peak in June 2022, to €7.83 trillion, the lowest level since June 2021:

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ECB Balance Sheet Drops by €1 Trillion from Peak: QT Milestone

Step 1 of QT is operating at full speed. Step 2 of QT is just starting.

wolfstreet.com

 

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ATHENS, March 7 (Xinhua) -- A bright future lies ahead for Sino-Greek cooperation in shipping, Chinese and Greek speakers told an event at Greece's Piraeus port on Tuesday.

"Cooperation between China and Greece came initially from the sea, and its future lies in the sea," said the president of the Association of Banking and Financial Executives of Hellenic Shipping at the event.

Bright future seen ahead for Sino-Greek shipping cooperation

Bright future seen ahead for Sino-Greek shipping cooperation-

www.chinaview.cn

 

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• UK childcare is among the most expensive in the world
• 1.5 million UK mums would work more hours if childcare allowed
• Finance minister Hunt urged to act on costs in March 15 budget
• Research predicts childcare reforms could boost economic growth
• Opposition Labour Party sees childcare pledge as vote-winner

Priced out of work by childcare, could UK parents hold key to growth?

Last year, mother-of-two Louise Sharples found herself turning down a new job she knew she would love because the cost of full-time childcare was more than she would have earned.

www.reuters.com

 

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Captured CO2 Injected Below the North Sea in CCS World First

A consortium led by UK-based chemicals company INEOS is claiming the world’s first injection of captured carbon dioxide into a depleted oil field in the Danish North Sea. The initiative,...

gcaptain.com

 

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From the link:

LONDON, March 10 (Reuters) - New rules in Europe to crack down on greenwashing are not making it easier to spot genuine environmentally-friendly funds as asset managers continue to apply different standards for what constitutes sustainable investing.

More than 30 fund managers, consultants, lawyers and regulators interviewed by Reuters said that despite European Union rules demanding more disclosure, funds remained hard to compare and greenwashing difficult to spot.

Greenwashing crackdown in Europe leaves investors in the dark

New rules in Europe to crack down on greenwashing are not making it easier to spot genuine environmentally-friendly funds as asset managers continue to apply different standards for what constitutes sustainable investing.

www.reuters.com

 

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ECB Cheat Sheet: Predictably unpredictable

Inflation data support ongoing hawkish rhetoric at the ECB but financial stability risk has markets substantially re-price the path for policy rates lower.…

think.ing.com

 

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The pound, gilts and stocks: likely winners and losers from UK budget

Britain's City and business lobby are clamouring for sweeteners in Wednesday's spring budget to replace generous investment relief that is expiring just as corporation tax is due to rise.

www.reuters.com

 

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The opportunity of Europe’s emerging economies

As a market, Eastern Europe has often found itself in the shadow of its Western counterparts – but the tide is turning. Here we analyse why Eastern Europe is such an exciting prospect as an emerging market and what opportunities it could present to customers.

www.maersk.com

 

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From the link:

The European Central Bank on Thursday announced a further rate hike of 50 basis points, signaling it is ready to supply liquidity to banks if needed, amid recent turmoil in the banking sector.

European Central Bank hikes rates despite market mayhem, pledges support if needed

 

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A dog day afternoon in French politics as Macron uses 'nuclear option' to raise retirement age

France entered a period of political uncertainty on Thursday as French President Emmanuel Macron rammed a controversial pension reform through parliament without a vote by invoking a special executive…

www.france24.com

 

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Key events in EMEA next week

A relatively quiet week ahead for the EMEA regions. Given the Central Bank of Turkey cut the policy rate last month, and signalled that cuts would not be…

think.ing.com

 

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As Sweden looks to reorganize its embattled 1 trillion kronor ($90 billion) pension system following an embezzlement scandal, the office overseeing the process says it won't accept applications from asset managers that don't incorporate ESG (Environmental, Social and Governance) into their strategies.

Sweden Bans Non-Woke Funds From $90 Billion Pension Pot | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero

www.zerohedge.com

 

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If Xi Jinping chooses to "befriend a war criminal, it is our duty to get very serious about China," Lithuania's foreign minister, Gabrielius Landsbergis, told DW when asked what he thought about the Chinese president's three-day visit to Moscow and his meeting with his Russian counterpart Vladimir Putin.

'Pandora's box': EU weighs changing relations with China – DW – 03/22/2023

China's show of solidarity with Russia displeased officials in Brussels, where concerns are growing that Beijing is considering supplying arms to Moscow. But for now there is no real desire to decouple from China.

www.dw.com

 

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ECB slowly trims carbon footprint of its bond stash

The European Central Bank has trimmed the carbon intensity of its 385-billion-euro stash of corporate bonds but the dwindling of purchases is slowing its progress, an ECB report showed on Thursday.

www.reuters.com

 

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Europe’s rush to LNG could turn into ‘world’s most expensive and unnecessary insurance policy'

Several European countries have announced new LNG projects or the expansion to existing ones in response to shutdown of Russian gas pipelines.

www.cnbc.com

 

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Why the EU’s new fiscal framework hits the nail near the head

The EU’s new fiscal framework proposal, the Economic Governance Review (EGR), has already got the ball rolling with its promised bold reforms. But a closer look points to a few loose-ends that can be easily

www.ceps.eu

 

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Euro 7 emissions proposals, the sequel Europe's carmakers don't want to see

European carmakers are fighting back against proposed emission regulations they argue are too costly, rushed and unnecessary, but which the European Commission says are needed to cut harmful emissions and prevent a repeat of the Dieselgate scandal.

www.reuters.com

 

[Goldhedge]

 

[Viking]

Europe Abandons All-Electric Car Mandate - Europe Reloaded

Europe Abandons All-Electric Car Mandate Stupidity of “switch to electric” while killing power generation IGOR CHUDOV France24 and the Wall Street Journal (paywall-free link) report that the EU has abandoned its much-ballyhooed transition to electric cars, which [...]

www.europereloaded.com