News from a Chinese developer
China Evergrande has become the world’s most indebted developer with a debt of about $ 300 billion. According to a former adviser to the Chinese central bank, the crisis caused by the developer would slow down China’s economic growth, but it is likely to have minimal impact on the country’s financial system. On the other hand, the current company came with a positive news. The main division of the real estate company announced that it will pay timely interest on domestic bonds due on Thursday, which are worth 232 million yuan ($ 35.88 million).
Performance of China Evergrande Group over for 5 years. (Source: Investing.com)
Support for energy suppliers
The UK could approve emergency bailouts to hold energy suppliers during the ongoing gas price crisis. The British government has said that not every company will be eligible for support because it does not want to support unsuccessful companies. Wholesale gas prices in the EU are rising, which is why British energy suppliers believe they will have difficulty maintaining positive results.
The carmakers will go to court
BMW and Daimler / Mercedes-Benz are being sued in Germany for emissions targets. Deutsche Umwelthilfe, an environmental and consumer protection association, has brought an action against BMW and Daimler / Mercedes-Benz. They have refused to tighten their targets to reduce their carbon footprint by 2030. Deutsche Umwelthilfe wants to “force” automakers to stop producing internal combustion engines by 2030.
The IEA has called on Russia to increase gas supplies
To alleviate the energy crisis, it is necessary to increase gas supplies. The International Energy Agency is therefore asking Russia to send more gas to Europe. Russia should reaffirm its position as a reliable gas supplier and support Europe. Before the winter season, according to the IEA, it is very important to do more to increase gas availability in Europe and ensure that stocks are filled at adequate levels.
Watch this week:
On Thursday, Frank Elderson, member of the Executive Board and Vice-Chair of the Supervisory Board of the European Central Bank, is set to speak.
On Friday, Federal Reserve Chair Jerome Powell is to speak. As head of the Fed, which controls short term interest rates, he has more influence over the U.S. dollar’s value than any other person.