EUROPE UP TO DATE

ECB Giving Peace of Mind to the Market

The European Central Bank is poised to enter territory last visited in the run-up to the 2008 global financial crisis as it slyly raises interest rates during what appears to be a recession.

"In July 2008, just as the eurozone entered four quarters of contraction, the Governing Council raised borrowing costs for the first time in more than a year, only to reverse course shortly after the collapse of Lehman Brothers."

Approaching Optimism

Attention is increasingly turning to how high the Bank will go, which under a strategist of the caliber of Christine Lagarde, has analysts forecasting OPTIMISM and the deposit rate to peak at 2.5% in March, confirming that the rate of increases will slow down after this month.

Meloni's Mission |????

Giorgia Meloni, who yesterday replaced Mario Draghi as Italian prime minister, plans to maintain the country's pro-Ukraine and pro-NATO stance, but her government is keen to change domestic policy to provide a greater shield for business and industry.? He will also change the name of some of the ministries, so that they somehow point to a pro-national policy focus.

Energy Loans |????

European energy companies approaching banks and private investors for more cash are rapidly drying up those funds.

Outstanding loans rose 23% this year, after raising a record €158bn, the most annual loans in the sector since 2007.

This is generating a situation of desperation in companies that are looking for additional funds and find themselves with an inescapable bottleneck to find liquidity.

The collapse of several energy conglomerates is approaching, which are in charge of guaranteeing the supply to the citizens, which are contracted by the National States.

This may confirm predictions of a power supply outage, triggering a need for "Simultaneous Power Salvage."

Fact that the ECB is monitoring very closely for alternative solutions to the issue.

Polish Politics |????

Investors are painfully finding out what is going on with the economy, as they begin to confirm that politicians are turning their backs on inflation to keep the economy going ahead of next year's elections.

In the last month, Polish debt has fallen more than anywhere else in the world. The yield increase is even worse than in the UK, where a sell-off helped topple the prime minister.

Climate Losses | COP27??

Wealthy nations could cover climate-induced economic losses suffered by the world's most vulnerable countries. At COP27 there will be proposals that will force the fossil fuel industry to pay for the damage caused by its emissions.

According to the International Monetary Fund Research.?

The profit of six major oil companies in the first half of 2022 was enough to offset the financial hits with $70 billion left over.

Standard Double |????

French President Emmanuel Macron last week criticized US energy and trade policies for creating "a double standard," with lower energy prices domestically while selling natural gas to Europe at record levels.?

Macron will hit these points hard when he visits Washington for a state visit in early December.

Low Confidence |??????

Even with the combined attempts between the European Central Bank and the European Commission, betting on the firmness of the decisions in the economic correction.

Eurozone consumer confidence remains near a record low in October, highlighting the continued risk of a recession this winter as households grapple with rising inflation and a sharp cost-of-living crisis.

A monthly gauge from the Commission rose to -27.6 from -28.8 in September, according to preliminary data released last week.

China Controversy in Germany |????&????

German Chancellor Olaf Scholz has denied reports that he has already made a decision on the disputed sale of a stake in a Hamburg container terminal to Chinese state-owned shipping conglomerate Cosco Shipping Holdings.

German Background |????

Germany's lower house of parliament has approved the ruling coalition's plan to borrow up to 200 billion euros to deal with the energy crisis, as well as the required suspension this year of a constitutional limit on net debt.

Scholz said ????, that the new off-budget mechanism would allow measures to put a "great protective umbrella" over Europe's largest economy.