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1. Commerzbank: Expects the Bank of England to hold rates steady. Market expectations for a rate hike before the end of the year appear excessive, posing a risk to the pound. 2. BNP Paribas: Expects the Bank of England to hold rates steady. Inflationary pressures from high energy prices may prompt the Bank of England to raise rates twice in 2026. 3. MUFG: Expects the Bank of England to hold rates steady, but will hint at future rate hikes due to strengthening UK economic growth momentum and underlying inflationary pressures. 4. UBS: Expects the Bank of England to hold rates steady. The meeting will focus on evidence of second-round effects, such as changes in wage and pricing behavior, and how monetary policy should respond. 5. Berenberg: Expects the Bank of England to keep rates unchanged throughout 2026, followed by a resumption of rate cuts, as a weak UK economy and a slowing labor market will curb soaring inflation. 6. Morgan Stanley: Expects the Bank of England to hold rates steady by an 8-1 vote and will provide policy guidance on the possible direction of future rate decisions. 7. ING: Expects the Bank of England to maintain its interest rate unchanged at an 8-to-1 vote and keep the options open, neither increasing bets on rate hikes nor actively suppressing expectations. 8. PIMCO: Expects the Bank of England to keep interest rates unchanged until 2026, but may raise rates to prevent inflation from surging if energy prices rise further.On April 30th, Diego Iscaro, Head of European Economics at S&P Global Markets Intelligence, stated that the European Central Banks (ECB) interest rate hike is increasingly becoming a "when" rather than a "whether" question. Eurozone overall inflation rose to 3.0% in April from 2.6% in March, exceeding market expectations. He pointed out that the latest data poses a real challenge to the ECB. Even in an optimistic scenario, inflation will continue to rise in the coming months. Iscaro stated that rising prices are rapidly pushing up inflation expectations. "The market consensus is that the ECB will keep interest rates unchanged at its meeting later today, but the discussion is increasingly shifting from whether the policy rate will rise to when it will rise."On April 30th, *ST Haiqin announced that it had recently received an Administrative Penalty Decision from the Fujian Regulatory Bureau of the China Securities Regulatory Commission (CSRC), which penalized the company for failing to disclose related-party transactions as required and for significant omissions and false records in its annual report. The companys stock has been subject to additional risk warnings by the Shanghai Stock Exchange since March 2, 2026.Both WTI and Brent crude oil prices fell by more than $1 in the short term, to $109 and $109.95 per barrel, respectively.Fitch: Higher oil prices are somewhat beneficial in the short term for the ratings of the UAE and Saudi Arabia.

Berlin desires a 2% reduction in gas consumption via new legislation

Skylar Williams

Aug 15, 2022 10:50

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Officials announced on Friday that new measures to reduce Germany's gas use by 2% will require public and private consumers to make significant cuts as Europe faces a sharp decline in Russian gas supply.


Economy Minister Robert Habeck told Süddeutsche Zeitung last week that the state would require energy-saving measures including heating public buildings to no more than 19 degrees Celsius (66.2 degrees Fahrenheit).


According to ministry officials who spoke with Reuters, corridors and huge halls should not be heated at all, with the exception of hospitals and nursing homes. Private pools may no longer be heated, and building and memorial lighting should be turned off to conserve electricity.


Additionally, illuminated advertisements must be turned off daily between 22:00 and 6:00 a.m.


13% of Germany's energy comes from fossil fuels, and approximately half of the country's homes utilize gas for heating. Gas also accounts for one-third of the industrial energy consumption. Russia has supplied fifty percent of this gas in recent years.


To get through the winter without resorting to gas rationing, Germany must reduce its gas use by 20 percent compared to before the crisis sparked by the Russian invasion of Ukraine.


The replacement of gas-fired power plants with coal-fired power plants is predicted to reduce consumption by an additional 3 to 5 percent. As a result of rising petrol prices, consumption has reduced by as much as 8 percent.


Germany will also rely on gas storage facilities and liquid natural gas (LNG) terminals during the peak winter months of gas use.