Germany nationalizes country’s biggest gas importer Uniper
BERLIN (AP) — The German government said Wednesday that it has agreed to nationalize the country’s biggest gas importing company, Uniper, expanding state intervention in the industry to prevent an energy shortgage resulting from Russia’s war in Ukraine. The deal with Uniper builds on a rescue package agreed in July and features a capital increase of 8 billion euros (dollars) that the government will finance. As part of…
Germany nationalizes country’s biggest gas importer Uniper
BERLIN (AP) — The German government said Wednesday that it has agreed to nationalize the country’s biggest gas importing company, Uniper, expanding state intervention in the industry to prevent an energy shortgage resulting from Russia’s war in Ukraine. The deal with Uniper builds on a rescue package agreed in July and features a capital increase of 8 billion euros (dollars) that the government will finance. As part of the agreement, the government will take a majority stake in Uniper, which until now was controlled by Finland-based Fortum. The Finnish government has the largest stake in Fortum. Uniper’s losses have mounted as Russia has cut back natural gas supplies to European countries supporting Ukraine.
Putin sets partial military call-up, won’t ‘bluff’ on nukes
KYIV, Ukraine (AP) — Russian President Vladimir Putin has announced a partial mobilization in Russia. The measure appeared to be an admission that Moscow’s war against Ukraine is not going according to plan after nearly seven months of fighting and amid recent battlefield losses for the Kremlin’s forces. The Russian leader also warned the West that he is not bluffing over using all the means at his disposal to protect Russia’s territory, in what apparently was a veiled reference to Russia’s nuclear capability. Putin has previously warned the West not to back Russia against the wall. Officials said the number of reservists to be called up is around 300,000.
High inflation in sight, Fed to signal more rate hikes ahead
WASHINGTON (AP) — Last month, when Federal Reserve Chair Jerome Powell spoke at an economic conference in Jackson Hole, Wyoming, he issued a blunt warning: The Fed’s drive to curb inflation by aggressively raising interest rates, he said, would “bring some pain” for Americans. When the Fed ends its latest meeting Wednesday and Powell holds a news conference, Americans will likely get a better idea of how much pain could be in store. The central bank is expected to raise its key short-term rate by a substantial three-quarters of a point for the third consecutive time. Many Fed watchers, though, will be paying particular attention to Powell’s remarks at a news conference afterward.
Asian shares decline ahead of Fed decision on interest rates
TOKYO (AP) — Asian shares have mostly declined as investors looked ahead to a widely expected interest rate hike by the U.S. Federal Reserve in its bid to squash the highest inflation in decades. Global tensions are adding to investors’ jitters. Russian-controlled regions of eastern and southern Ukraine announced plans to start voting this week to become integral parts of Russia. Stocks closed lower on Wall Street. The Fed has been raising the cost of borrowing money amid some worries it may overshoot its goal and cause a recession. The U.S. central bank is expected to raise its key short-term rate by three-quarters of a point for the third time at its meeting on Wednesday.
How the Fed’s steep rate hikes stand to affect your finances
NEW YORK (AP) — Mortgage rates have jumped, home sales have slumped and credit cards and auto loans have gotten pricier. Savings rates are slightly juicier, though. Yet many economists say they fear that a recession is inevitable in the coming months — and with it, job losses that could cause hardship for households already hit worst by inflation. Even before the Federal Reserve acts again Wednesday to sharply raise its key short-term rate – a third straight three-quarter-point hike is likely to be announced – its previous rate hikes are being felt by households across the economy.
Manchin rails against ‘revenge politics’ on permit plan
WASHINGTON (AP) — Sen. Joe Manchin on Tuesday railed against what he called “revenge politics″ being used against him, as liberals in the House and Senate team up with Republicans to oppose his plan to speed permits for natural gas pipelines and other energy projects. Manchin, a West Virginia Democrat, secured a commitment from President Joe Biden and Democratic leaders to include the permitting package in a stopgap government-funding bill in return for his support of a landmark law to curb climate change. But in recent weeks Democrats and environmental groups have lined up to oppose the permitting plan, calling it bad for the country and the climate.
Musk to seek exemption from Iran sanctions for Web access
WASHINGTON (AP) — Elon Musk’s hopes to operate his satellite internet firm in Iran require permission from the Treasury Department, which said Tuesday it welcomes applications to support internet freedom in the country, which is largely isolated from western economies. The Tesla CEO tweeted Monday that his satellite internet firm Starlink would seek permission to operate in Iran. National security adviser Jake Sullivan said it’s up to Treasury’s Office of Foreign Assets Control to decide on Starlink’s next steps. Starlink, a division of spacecraft manufacturer SpaceX, also owned by Musk, has been in operation since 2019. It disperses thousands of satellites orbiting the Earth to provide broadband access globally.
Alaskans pocket over $3,000 in annual oil-wealth payments
ANCHORAGE, Alaska (AP) — Nearly every single Alaskan got a financial windfall amounting to more than $3,000 Tuesday. That’s the day the state began distributing payments from Alaska’s investment fund that has been seeded with money from the state’s oil riches. The payments, officially called the Permanent Fund Dividend or the PFD locally, amounted to $2,622. That’s the highest amount ever. Alaska lawmakers added $662 as a one-time benefit to help residents with high energy costs. Residents use the money in various ways, from buying big-screen TVs, vehicles or other goods, using it for vacations or putting it in savings or college funds. In rural Alaska, the money can help offset the enormous food and fuel costs.
Asian lender ADB cuts forecasts to reflect weakening outlook
The Asian Development Bank has downgraded its forecasts for growth in the region, citing the war in Ukraine, rising interest rates to combat decades-high inflation, and China’s slowing economy. The Manila, Philippines-based development lending agency revised its estimate for growth in developing Asian economies to 4.3%, down from an earlier forecast of 5.2%. The forecast for growth in 2023 was cut to 4.9% from 5.3%. Economists said that for the first time in three decades, other Asian economies are growing faster than China’s. The ADB’s forecast for inflation in Asia remains less severe than in the U.S. and some other economies, at 4.5% in 2022 and 4.0% next year.
Britain’s Truss doesn’t expect UK-US trade deal anytime soon
NEW YORK (AP) — Prime Minister Liz Truss has kicked off her first visit to the United States as Britain’s leader with an admission that a U.K-U.S. free trade deal is not going to happen for years. On her way to the United Nations General Assembly in New York, Truss said “there (aren’t) currently any negotiations taking place with the U.S., and I don’t have an expectation that those are going to start in the short to medium term.” That’s a sharp contrast with the stance of her immediate predecessors, Boris Johnson and Theresa May. Both dangled the promise of a deal with the world’s biggest economy as one of the main prizes of Britain’s exit from the European Union.
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