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Lagarde says the ECB will end negative interest rates at the end of the third quarter

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Lagarde Cuts ECB Chief Economist Interventions During Monetary Policy Meetings - Monetary Policy

According to the president of the European Central Bank (ECB), the eurozone should end negative interest rates at the end of the third quarter of this year. In a blog post by the monetary authority, Christine Lagarde explains that rising prices justify this schedule of monetary policy changes.

“I hope the net purchase of debt under the APP [asset-purchase program] end at the beginning of the third trimester. This would allow us to raise interest rates at our July meeting in line with our “forward-looking leadership,” Christine Lagarde wrote in a publication on the normalization of monetary policy in the eurozone. phase out negative interest rates by the end of the third quarter.”

ECB interest rates are currently at historical lows, with the main refinancing rate of 0% and the interest rate applicable to the margin facility at 0.25%. The deposit rate is even negative: at the level of -0.50%.

With Monday’s statements, Lagarde refers to the latter, which means in practice that banks have to pay for the money they parked at the supervisory authority. Thus, to stop being negative, the rate could be raised twice (the first time in July and the second time before the end of September) by 25 basis points each.

In response to Lagarde’s words, the eurozone government debt yield continued to rise. German 10-year bonds rose 2 basis points to 0.957%, while Portuguese bonds with the same maturity rose 1.9 points to 2.136%. The interest rate on Spanish debt is trading at 2.093% and on Italian debt at 2.995%.

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The pace and extent of normalization will depend on inflation
The reason for the change is related to price dynamics. “Given that the inflation outlook has changed significantly compared to the pre-pandemic period, it is appropriate to adjust the adjustable variables, including interest rates,” Lagarde said. “This is not a tightening of monetary policy, but keeping rates unchanged in these conditions would represent a policy easing that is not needed now.”

Year-on-year inflation in the euro area accelerated by 7.4% in April after 7.5% recorded in March. In the European Union, it hit a new all-time high of 8.1% last month. The surge, exacerbated by the region’s energy crisis as well as supply chain constraints in the face of a post-pandemic economic recovery, has led analysts and investors to expect the ECB to speed up the end of its debt purchases and raise interest rates.

after graduation Pandemic Emergency Assistance Program (PEPP) in March regular asset purchase program (APP). At the latest ECB monetary policy meeting, Lagarde had already announced the latter’s fall was accelerating, with net purchases of €30bn a month in May and €20bn in June. Ensure now that you won’t have to hold on after letting interest rates rise.

“The next stage of normalization will have to be determined by the evolution of inflation surprises over the medium term. If we see inflation stabilizing at 2% over the medium term, there will be a progressive normalization of interest rates towards neutral rates. appropriate. But the pace and size of the adjustments cannot be determined ‘in advance’,” Lagarde added.

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(News updated at 10:05)

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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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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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See how Tesla tests its electric Semi truck in the worst-case scenarios

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Tesla Semi camião elétrico testes

Tesla has finally been able to bring its long-awaited Semi to market. This electric truck promises to revolutionize transportation and bring all the unique characteristics of this type of electric vehicle to this class of vehicles.

Now that the first units have been delivered, there is hope that they will finally be mass-produced and reach more transport companies. With so many promises to be kept, a new video is now emerging showing Tesla testing its Semi truck under worst-case scenarios.


Tesla Semi is already on the market

Like all Tesla electric vehicles, Semi follows the same line of creating a unique design associated with a platform with the most modern technology available. The proof is in what was presented to the public and surprised most people.

To prove the quality of this new proposal, Tesla published in your LinkedIn account new video. In it, he reveals some of the testing he's done to determine the strength and quality of the Semi's design and its (potential) durability.

Tests to prove its durability

It has been revealed that the Tesla electric truck is subjected to numerous tests and its application in the worst scenarios that drivers may face. It doesn't stop at the ruggedness of the Semi's designs, but goes further and focuses on the motors and batteries themselves.

This is the proof that many have been waiting for to ensure that this new proposal is not limited to a lot of autonomy. Its resistance is great and will provide greater durability, further enhancing the Semi's value and performance.

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high quality electric truck

Tesla has already showcased the Semi's quality with a video showing its truck driving roughly 500 miles on just one charge. The big news here is that he managed to make this long journey with a maximum load of about 37 tons.

Now Tesla remains to widely place the Semi on the market. At the moment, only a few companies have access to this new product, with a very long list of pending deliveries, who want to start mass-using this electric truck offering.

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