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What Putin is doing is extortion, and he will not succeed (Opinion)

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What Putin is doing is extortion, and he will not succeed (Opinion)

Editor’s note: CNN correspondent David A. Andelman, two-time Dealine Club Award winner, French Légion d’honneur, author of Red Line in the Sand: Diplomacy, Strategy, and a History of Wars That Can Still Happen, and blogging. Previously, he was a correspondent for The New York Times and CBS News in Europe and Asia. The opinions expressed in this comment are those of the author alone.

Vladimir Putin is doing everything possible against the stronghold of Europe. This is the only way to view comments made on Monday by Kremlin spokesman Dmitry Peskov that Russian natural gas will not flow back through the massive Nord Stream 1 gas pipeline until the West lifts sanctions against Russia. This latest move “significantly increased the risk that Europe will not receive more gas from Nord Stream 1 all winter,” analysts at energy consultancy Rystad Energy said in a report cited by CNBC.

There is no other name for this than extortion. This is a bad idea in the short term for Europe and in the long term for Russia.

The West imposed sanctions on Moscow after Putin’s troops invaded Ukraine in February. Putin, of course, never knew how to play in the long run. However, his short game did not end the pain and suffering. This is certainly the case in Europe. But for a number of reasons, Europe and the West must be firm and united. This is the only real way to deal with a bully.

Europe reacted quickly and decisively. Even before Peskov’s speech, most of the continent had begun to implement measures to soften the blows of cuts already underway, rising energy prices and inflationary impacts affecting millions. The front page of the French newspaper Le Monde on Monday carried the headline “The Price of Energy: The Mobilization of European States.” Eurozone inflation is at 9.1%, more than four times the 2% target, and a Reuters poll suggests the continent is “almost certainly headed for a recession.”

However, at a meeting on Monday of oil ministers from major OPEC countries, as well as other major oil producers, including Russia, it was decided to reduce production targets by a relatively small – but not negligible – amount than 100,000 barrels. day. The decision was the exact opposite of OPEC’s promise to increase production by that amount after the controversial presidential summit. [dos EUA] Joe Biden with Crown Prince Mohammed bin Salman at Al Salam Royal Palace in July. The meeting was a bad idea, now it’s even worse. Within minutes, OPEC’s actions on Monday led to a 3% increase in oil prices on world markets.

To address these issues, from rising energy prices to skyrocketing inflation, several countries have begun to take drastic measures. On Sunday, the federal government in Berlin announced a $65 billion plan to help German families. New British Prime Minister Liz Truss is considering a similar bailout plan likely to top £100bn (€115bn), Treasury sources told The Sunday Times.

At a meeting of European energy ministers on September 9, a discussion of a plan to cap natural gas prices on the continent will be presented. And the G7 energy ministers agreed from December to impose a ceiling on the price of Russian oil and oil products, designed to cut the Kremlin’s revenues and weaken Russia’s financial footing, while still allowing its oil to continue to supply global markets.

Also on Monday, the leaders of the continent’s two pillars, French President Emmanuel Macron and German Chancellor Olaf Scholz, held a video conference to discuss energy issues. At a press conference after the meeting, Macron told reporters that they had reached an agreement: France would supply Germany with excess gas, and in return Germany would supply France with the electricity it produced. Macron also called on the people of France to cut their energy consumption by 10%. Reductions or rationing would be “only a last resort,” he said.

But the pain is unlikely to subside anytime soon. The euro fell to a 20-year low against the dollar on Monday following Peskov’s words. The European Central Bank was already considering a sharp 75 basis point rate hike at the continental level at Thursday’s meeting, reflecting the path the US Federal Reserve has been on for months. “Dramatic change,” as the London Financial Times put it. “There are no more doves at the ECB, only hawks,” Katharina Utermeul, senior European economist at German insurance company Allianz, told the FT. The bank may even start cutting its securities balance sheet by 9 billion euros.

Europe has other alternatives, although they are certainly less attractive and less efficient. Soviet-era gas pipelines still carry an uninterrupted flow of natural gas through Ukraine, despite Russian incursion and objections from Ukrainian leaders through Turkey. Increasing the supply of oil from oil wells in the North Sea, controlled by Norway and the UK, could help Europe hold out, perhaps until a time, perhaps, when reason can return to the Kremlin. But re-drilling in the North Sea could prove highly controversial due to long-standing environmental concerns.

It’s certainly a price worth paying, but the pain will be severe and there are already rumors of failures. Matteo Salvini, leader of Italy’s far-right party, said over the weekend that the sanctions had indeed helped Russia accumulate a $140 billion in payments surplus, hurting the country’s economy in Europe, especially in Italy. “I would not want sanctions to cause more harm to those who impose them than to those who are affected,” Salvini said. According to a Politico poll, Salvini’s League is forming a coalition with other Italian right-wing parties that are holding a significant lead ahead of the September 25 national elections.

Accordingly, Ukraine and much of official Europe are resisting calls for sanctions to be lifted. President of Ukraine Volodymyr Zelensky in a telephone conversation with the head of the European Commission Ursula von der Leyen called on Europe to further tighten the screws against Russia with a new package of sanctions.

Strong will is needed in elections, ministries and parliaments across the continent. Putin has significant support in some still isolated sectors. On the part of the West, there should be an equally deep understanding of how high the cost of any compromise in the face of Russian bluster.

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Economy

What factors impact financial markets?

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The global financial markets are now hugely complex, with traders and analysts around the world looking closely for signs of movement. What are some of the most important factors to be aware of that impact the financial markets?

Geopolitical events

With news breaking from different countries throughout the day, many different stories could affect the markets on any given day. For instance, economic indicators such as the European Central Bank’s inflation rates and gross domestic product numbers released by each country can determine which direction the markets take. Stocks, currencies and other financial instruments can all vary depending on these areas.

Major events such as war breaking out, natural disasters and elections also have an effect. When we look at the commodities market, climate change is an issue to bear in mind, with unusual weather sometimes causing scarcity or abundance of a certain product.

An interesting aspect of the modern financial world is the way that the different markets are linked. This means that any important event or news story that affects one area could easily affect another, even if the link isn’t obvious at first sight. We can also see how local shocks and events can quickly have an effect at a global level.

The financial crisis of 2008 is a good example, as it started with a serious downturn in the US housing market. Although this appeared to be a localized issue at first, it soon revealed some major issues with the global banking setup that caused problems around the planet affecting millions of people and diverse industries.

Speculation and investment trends

The previous factors all point toward the markets changing, and there’s no shortage of traders around the world waiting to see what happens next and how they can benefit. This means that we need to take into account other issues such as speculation and investment trends in the markets.

Armed with a variety of tools, including candlestick charts, traders try to identify trends such as support and resistance levels. They use the information they glean from the charts to make their moves, which can influence the general market if enough people make the same moves or if the amounts involved are significant.

Once an investment trend begins, it can have a knock-on effect that would have been impossible to predict at the outset. The example of Bitcoin and other cryptocurrencies shows how something that starts small can grow impressively. Cryptocurrencies have now gained enough mainstream appeal to influence and disrupt many industries, from healthcare to gaming and banking.

It’s important to understand how the leaders of a company operate and how they have faced challenges in the past. If we look at banking and the Bank of New York Mellon in particular, we can see that its history can be traced back to 1784, so it has overcome all the major events that have occurred since then. With some of the biggest names in the business world making up its key institutional investors, this is a company that we would expect to react effectively to changing markets.

Regulatory changes and company results

Just about every industry represented in the financial markets has laws and regulations that govern it. This means that the fear of harsher new laws is an almost constant threat. Meanwhile, the hope that beneficial changes to the regulations help businesses prosper is the other side of this matter that investors keep a close eye on.

Let’s not forget the role played by the profit and loss results produced by major companies. It’s clear that these results have an almost immediate effect on their stock prices. However, we should also bear in mind that this effect can reach other areas of the economy. A surprising set of results for a large business can produce shock waves that travel around the market.

What impact do they cause?

From the wide variety of examples that we’ve looked at here, it’s clear that the impact isn’t going to be the same in every case. While one set of circumstances might snowball and cause a huge impact, another might cause a limited impact before the news disappears as other events overtake it.

Having said that, one of the key issues that they cause is a higher degree of market volatility. We can see how this works by looking at an area such as the COVID-19 pandemic in 2020. The markets became a lot more volatile as the different aspects of the pandemic became clear. Streaming companies, healthcare companies and video conferencing technology firms made huge profits, while airlines and hotels were among those to lose out massively.

Working out the overall impact of a particular situation is almost impossible to do now. With so many traders looking over the latest news stories and numbers with advanced tools, the original impact can quickly grow or simply disappear. Therefore, the key for investors is to understand emerging trends and react to them before it’s too late.

These details reveal how complex the global financial market is now. It’s a fascinating world, and with more information at our fingertips than ever before, it’s something that anyone can start to research and understand in their own way.

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Economy

Everything has been delivered. 10 Bugatti Centodieci are already in the hands of the owners

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Everything has been delivered.  10 Bugatti Centodieci are already in the hands of the owners

OAll Bugatti Centodieci have been delivered, the Molsheim-based brand said on Monday. Cristiano Ronaldo received the number 07 in October this year. and Bugatti has now revealed that the latest unit – #10 – is already in the possession of its owner.

“The Centodieci combines all the values ​​of the Bugatti brand in an extraordinary package: rarity, innovation, heritage, craftsmanship and unrivaled performance. The production batch of 10 units was so in demand by our customers that it was sold before the Centodieci. was even officially presented,” said Christophe Piochon, president of Bugatti.

This latest example is finished in Quartz White with carbon fiber trim on the bottom and matte grilles. The brake calipers are painted in Light Blue Sport, as is the logo on the rear that refers to the EB110, the iconic Bugatti model that inspired this Centodieci. Inside, the predominant color is also blue, as you can see in the images above.

This block is powered by the same block as the other nine instances. The 8.0-liter W16 with four turbines is capable of developing 1600 hp. In terms of performance, this allows the Centodieci to hit 100 km/h in just 2.4 seconds and reach a top speed of 380 km/h.

Recall that each unit costs the owners eight million euros before taxes.

Read also: We already know when the Bugatti Centodieci fell into the hands of Ronaldo.

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Economy

The first Dacia hybrid. “The cheapest hybrid family on the market”

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The first Dacia hybrid.  "The cheapest hybrid family on the market"

BUT Dacia revealed this Monday that the hybrid engine has been available since March on the Jogger, the Romanian brand’s model known to be available with a seven-seat variant.

The Jogger Hybrid 140, Dacia’s first hybrid, will hit dealerships in March, but customers can expect and order it as early as January.

The price has been revealed by Dacia and since it’s only available in the seven-seater SL Extreme, it starts at €28,800. The brand claims it is “the most affordable hybrid family car on the market.”

Available in six existing colors to celebrate the launch of this hybrid, there will be a slate gray version, as you can see in the images above.

Equipped with a 1.6 liter four-cylinder petrol engine with 90 hp, the Jogger is also powered by two electric motors (a 50 hp engine and a high-voltage starter-generator). The total power is 140 horsepower. The electric transmission is automatic, four-speed, connected to an internal combustion engine, and two speeds are connected to an electric motor. This combined technology was possible, according to Dacia, only due to the lack of clutch.

Combined with the energy recovery levels of the 1.2kWh (230V) battery pack and the efficiency of the automatic transmission, regenerative braking delivers all-electric traction on 80% of urban journeys and saves up to 40% of fuel compared to a combustion engine vehicle.

Read also: Dual-fuel Dacia Jogger Eco-G. We tried 5 seater and LPG…

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