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FirstFT: Germany warns of energy exports approaching cold winter

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Germany You may have to reduce electricity exports to France and other countries this winter to prevent its power grid from collapsing, a senior executive at the country’s largest grid operator has warned.

Hendrik Neumann, chief technical officer of Amprion, the largest operator of the country’s four power grids, said a temporary halt could become necessary to avoid electricity shortages and bottlenecks. However, he said such a scenario is a “last resort” and is likely to last for hours rather than days.

The warning comes amid growing tensions over Berlin’s response to the energy crisis, with some EU countries saying the €200 billion “shield” for German businesses and consumers announced last week threatens to undermine European unity. Viktor Orban, Prime Minister of Hungary, said yesterday that the energy support package reached the point of “cannibalism”.

Any interruption or drop in German electricity exports could exacerbate a supply shortage in France, where nearly half of the country’s 56 nuclear power plants are currently off-grid.

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1. Kwasi Kwarteng to put forward debt reduction plan UK Minister is Publishing speed up from his medium-term financial plan until this month in an attempt to reassure markets after he was forced to make a modest turn on part of his “mini” budget. The rapid decline came on the heels of widespread outrage and Parliamentary rebellion threat.

2. Ukraine breaks through the front line in Kherson Ukrainian forces have They broke through the front lines In one of the four regions annexed by Russian President Vladimir Putin last week. But Kyiv warned that it was going on.”Shrinking due to uncertaintyon the cash flows of the European Union. Follow the latest with A visual guide to war.

ukraine military drawing

3. ARM loses 40% of its UK employee earnings in SoftBank years The UK chip designer has Eliminate 40% of the number of employees She recruited it as part of a pledge from its owner, the Japanese conglomerate SoftBank, to the British government, after concerns its power relationship was shifting overseas.

4. Credit Suisse swap set record as shares plunge price for Buy default insurance at Credit Suisse Its debt hit a record high yesterday, as the Swiss lender failed to allay market concerns about the strength of its balance sheet. Just How big is the bank’s capital gap?

5. PwC eyes poaching illegal employees during EY division Big Four company is It seeks to attract senior employees from its competition and taking advantage of the “turmoil” and “uncertainty” caused by EY’s decision to split the accounting and consulting arms.

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Poland asks for $1.3 trillion in German wartime reparations Polish Foreign Minister said he will raise A formal claim for compensation for damages and losses incurred by the Nazis when he met his German counterpart in Warsaw. The day also marks the beginning of the Jewish holiday of Yom Kippur, Day of Atonement, at sunset.

Ecofin meeting EU ministers scheduled to Discussing the rise in energy pricesand the impact of the Russian war on Ukraine and the economic outlook, among other topics in Luxembourg.

Gregs trading update Expected to be a British Street Bakery Higher profit and revenue report For the third quarter, despite rising inflation.

US factory orders The US Commerce Department released August data on factory orders, shipments and inventories after falling in July Reversal of nine consecutive months of highs. The Department of Labor also publishes job data. (The Wall Street Journal)

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When conspiracy theorists rule Conspiracy theorists moved from the streets to the wings, becoming heads of state including Turkey and Brazil. In the United States, Donald Trump is planning his political comeback. But the most dangerous of them all is Vladimir Putin, who threatens the world with nuclear war, Written by Gideon Rachman.

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Property collapse in China The infection is spreading deep into the Chinese political economy. What started as a real estate crisis – with apartment sales plummeting and developers defaulting on debt – is turning into a financial crisis for local governments. Read the first part From a new series that examines the impact of the brewing crisis on the world’s second largest economy.

Russian mobilization targets ethnic minorities Indigenous men from Dagestan to Yakutia have been disproportionately targeted by Vladimir Putin’s mobilization campaign to support the invasion of Ukraine, prompting accusations from community leaders and activists that Moscow is carrying out “genocide”. Here they are in their own words.

European technology must learn to embrace failure Today’s market slump represents the first real test for Europe since the global financial crisis. But Niklas Zenstrom, co-founder of Skype, is not concerned about short-term stock price volatility. He fears the stigma that used to prevent Europeans from setting up tech companies It will hinder the founders from ending it.

Making the poor poorer is a false economy Downing Street is discussing cutting welfare spending by not raising interest rates in line with inflation. Sarah O’Connor argues It is time instead to get tough on the causes of welfare spending: low wages, high housing costs, poor health.

Travel

The empty broadband in the middle of the country Known as “The Wales Desert” It offers huge skies and abundant peace – but it’s also the subject of intense environmental conflict.

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Nantes Sideon Both © Nicholas JR White

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UK regulator to investigate rising mobile phone and broadband prices

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The UK’s telecoms regulator has launched an investigation into whether telecoms companies were upfront with customers about price increases in a contract after complaints of a lack of transparency.

Ofcom will study whether mobile and broadband service providers made customers who signed a deal with the company between March 2021 and June 2022 sufficiently aware of changes to their pricing terms.

As inflation soared as the cost-of-living crisis intensified, telecom groups collapsed audit From the regulator and politicians about whether they acted enough to support struggling families and broke the rules of transparency. UK inflation hit a 41-year high of 11.1 percent in October.

Most operators chose to significantly increase their prices above the rate of inflation earlier this year, which boosted core revenue. For example, BT, Vodafone and EE raised their prices in line with the CPI, plus 3.9 percent.

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Ofcom He said he was concerned that such intra-contract price differences were not “sufficiently prominent or transparent” at the point of sale, as required by the regulator’s rules. If cases of non-compliance are identified, Ofcom may initiate an investigation into said operators.

said Lindsey Fossell, group director of regulator networks and communications.

Ofcom’s latest affordability report, published on Thursday, found that 32 per cent of households had problems paying for phone, broadband, pay TV or broadcast bills – more than double the level of April 2021.

It also found that 17 percent of households are currently cutting back on other spending, such as food and clothing, to afford telecom services — up from 4 percent in June 2021.

Dana Toback, chief executive of Hyperoptic, a broadband provider that chose not to raise its prices above inflation rates this year, said Ofcom’s investigation was “a huge step forward in preventing the consumer from harm caused by higher mid-price contracts”.

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This year’s Hyperoptic survey found that 60 percent of people were unaware that the price of their broadband would increase mid-decade.

“We work hard to make sure that the annual price increase is clearly defined and discussed at each registration or renewal,” said BT, which also owns EE, adding that the company also showed customers how price changes worked in the contract.

“We follow industry best practices, and will participate fully in the Ofcom programme,” she said.

Vodafone did not immediately respond to a request for comment.

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Georgieva of the International Monetary Fund to discuss the economy and Covid with Chinese authorities via Reuters

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© Reuters. International Monetary Fund Managing Director Kristalina Georgieva attends a press conference following a meeting at the Federal Chancellery in Berlin, Germany on November 29, 2022. REUTERS/Michel Tantosi

NEW YORK (Reuters) – International Monetary Fund Managing Director Kristalina Georgieva said on Thursday that she will travel to Beijing next week with heads of other international institutions to discuss China’s economic outlook and COVID-19 policies with the country’s leadership.

“This is the first time, and we hope we can sit down together and discuss the very pressing issues facing China and the world,” Georgieva told the upcoming Reuters conference.

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Dutch minister defends trade relations with China

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A senior Dutch minister has defended the country’s deepening trade ties with China and vowed not to overreact on high-tech exports as the Biden administration pushes its European partners to harden their stance on Beijing.

The Netherlands remains “very positive” about its relationship with China, Micky Adriansens, the economy minister, said, saying Dutch companies operating there are providing a boost to innovation and trade.

As the United States presses its partners to tighten controls on exports of high-end semiconductor equipment to China, it has insisted that the Netherlands and Europe “must have their own strategy.”

“We have to think about this through – what are the risks of doing business with China in terms of certain products and value chains,” she told the Financial Times. “In general, we in the Netherlands are very positive and always have good relations with China. We do a lot of business with China. There are a lot of Dutch companies operating.”

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China accounts for 11 percent of Dutch imports, second only to Germany, and about 5 percent of exports.

The minister said that the relationship “gives a real boost to innovation and trade which is fundamental for Europe. We must cherish that as well.”

The remarks appear to contradict those of US Secretary of State Antony Blinken this week, who said he has seen “growing rapprochement” between the US and its allies on China. Blinken’s comments follow the US decision in October to impose strict export controls aimed at slowing China’s development capacity and preventing it from obtaining advanced semiconductors that could be used for military purposes.

The Netherlands is home to ASML and ASM International, two world-leading manufacturers of chip equipment.

The United States is now trying to persuade the Netherlands and Japan, another big player in the global chip industry, to strike a three-way deal that would further limit China’s access to chip-making tools.

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US sanctions, which prevent companies from sending many US-made products to China, have already hurt Dutch industry. ASMI He said This week they will affect about 40 percent of sales to China, which accounts for 16 percent of the group’s revenue.

Adriaansens declined to comment on the possible time frame in the semiconductor talks, saying it’s “not a simple yes or no,” but a matter of examining many aspects of a very complex production process. “You have to be very clear about which aspect of the production process is the most important issue for China,” she said.

“The Netherlands and Europe should have their own strategy,” she said, when asked about the US talks. At the same time, they needed to be aware of the risks associated with “specific technologies”. She added, “You don’t want to overdo it, but on the other hand, you don’t want to open your doors where safety is the number one issue — it’s a balancing thing.”

She also warned that it may not be possible to prevent China from acquiring advanced technology. “The development cycle is going very fast in China. We must not be naive.”

Adriaansens said the US’s separate actions to provide massive green technology subsidies to local businesses are troubling The Hague.

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The European Union said that a large part of the $369 billion in tax breaks and tax support in the United States Inflation Reduction Act discriminatory and violates global trade rules, and is in talks with Washington.

“The law to reduce inflation has an impact on industry and the economy in the Netherlands and the EU as a whole,” said Adriaansens. Combined with lower energy prices, it would deter investors and hurt European business competitiveness.

The minister added that the West should have a level playing field and “the same set of rules”. I compared it to the upcoming World Cup match with the United States. “We would like to have the same goal size and the same lines on the field in both halves.”

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