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Çarşamba, 7 Aralık 2022
Çarşamba, Aralık 7, 2022
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INTERNATIONAL MARKETS
BUSINESS
POLITICS | WORLD
TECHNOLOGY

🟨 No Love by FIFA

German PPI sees first monthly decline in more than two years, UK's Sunak rules out Swiss-style trade deal with EU, Iran team refuses to sing national anthem in support of protests

Reuters

Good morning. Today is Tuesday, November 22nd.

NASA’s Orion capsule has made it to the Moon, the last major step before it shatters the agency’s distance-from-Earth record set for a spacecraft made for astronauts. Meanwhile, in the Twitter-verse, the company’s head of France has quit amid a layoff crisis as Elon Musk reportedly considers cutting even more jobs. Pure chaos over there.

  • We hope that your week has been off to a less-chaotic start as we add this peaceful playlist to our best wishes.

—Tanem and Can

INTERNATIONAL MARKETS

German producer prices fell 4.2% month-on-month in October, its first monthly drop since May 2020, the Federal Statistical Office reported on Monday, raising hopes that double-digit inflation in Europe's largest economy could be nearing its peak. The producer price index rose 34.5% from the previous year, down from a record pace of 45.8% in August and September.

Germany PPI

Destatis

Russian diesel loadings destined for the Amsterdam-Rotterdam-Antwerp storage region rose to 215,000 barrels per day from Nov. 1 to Nov. 12, up by 126% from October, according to energy analytics firm Vortexa, as European traders rush to fill tanks in the region before an EU ban begins on Feb. 5, which will follow a ban on Russian crude taking effect on Dec. 5.

Rotterdam

via Bloomberg

  • On a related note: Russia has already lost more than 90% of its market in the EU’s northern countries, shipping just 95,000 barrels a day to Rotterdam in the four weeks to Nov. 18, down from more than 1.2 million barrels a day sent to the region’s ports each day in early February. Lithuania, France and Germany halted such imports several months ago, while Poland followed suit in September.
  • Meanwhile: Goldman Sachs lowered its oil price forecast by $10 to $100 per barrel for Q4, citing rising Covid concerns in China and lack of clarity over G7’s plan to cap Russian oil prices.

The fall in Sweden’s housing prices accelerated as the Nordic country gripped by the most severe housing slump in three decades shows what may lie ahead for many other developed economies. In October, the HOX Sweden housing-price index decreased 3% from the previous month, the steepest drop since June, Valueguard said on Monday. Sweden’s home prices have dropped by about 14% from a peak earlier this year, sliding for seven straight months.

France needs to begin reining in public finances from next year to ensure that debt does not keep piling up, the IMF said on Monday, adding that Europe’s second-largest economy has successfully softened the impact of surging energy prices to households, at a steep cost of over 2% of its GDP.

BUSINESS

Deutsche Bank is considering cuts to its leveraged finance unit as part of a review by CEO Christian Sewing into underperforming businesses as his three-year restructuring concludes. Scheduled to finish next month, the review may result in less capital and staff being allocated to the unit, according to Bloomberg sources, while resources may be redirected to the deals advisory business.

  • Zoom out: Both units are part of the origination & advisory division headed by Mark Fedorcik, which has struggled this year as companies shied away from deal-making and raising capital amid soaring inflation and geopolitical tension.

ABB raised around €200 million from selling an 8% stake in its EV charging business, valuing it at about €2.6 billion as the Swiss engineering and technology conglomerate drums up interest in the division it hopes to float in the second half 2023. The Swiss group, which will retain 92% of E-mobility, earlier this year delayed a planned flotation of the unit, citing stock market turbulence.

  • Looking ahead… Investors expect a surge in demand for EV charging points as European regulations push automakers and drivers alike to make the switch from fossil-fuelled cars.

British PM Rishi Sunak ruled out any Swiss-style alignment with EU laws in order to strike a trade deal with the bloc, instead promising that the existing Brexit arrangements could “deliver enormous benefits for the country.” Talking at a business conference on Monday, Sunak came under pressure to address the industry’s demands of opening up trade with the EU and allowing greater immigration to tackle labor shortages.

Sunak at CBI conf

via FT

The UK's competition regulator is investigating whether US chipmaker Broadcom’s $61 billion acquisition of cloud computing company VMware may substantially lessen competition, as tech deals continue to draw intense scrutiny. The Broadcom-VMware deal, announced in May, is the second biggest globally so far this year. The companies are also seeking EU antitrust approval.

POLITICS | WORLD

Germany offered Eurofighters and Patriot defense systems to Poland, which already has US Patriot missiles deployed, to help it defend its airspace, Berlin's defense minister said. Poland's defense minister said they received Germany's offer "with satisfaction" and will have them deployed close to the Ukraine border.

Patriot defense system

via Reuters

  • Context: Two people were killed in Poland on Nov. 15 after a missile hit a grain depot in a village 6 km from their border with Ukraine. Western officials said it was a Ukrainian air defense missile that went stray but Russia holds the ultimate responsibility as the area came under heavy Russian bombardment that day.

Ukrainian authorities started evacuating civilians from the newly-liberated Kherson and Mykolaiv regions, with concerns that Russian damage to the infrastructure might be too severe for people to endure the winter. Deputy PM Iryna Vereshchuk said residents were advised to move to safer areas in the central and western parts of the country, and that the government will provide transportation, accommodation, and medical care.

Kherson train

via Reuters

  • Helping hand: Norway said they signed an agreement to fund Ukraine with almost $200 million to help them purchase natural gas this winter, as part of an approximately $976 million package that they allocated to Kyiv in 2022 and 2023.
  • In other news: Kremlin spokesperson Dmitry Peskov said a change in Ukraine's government is not one of the goals Russia's "special operation" is striving to achieve, CNN reported.

The EU failed to defuse tensions between Kosovo and Serbia after the bloc's high representative Josep Borrell invited the countries' leaders for emergency talks, but said both parties showed "unconstructive behavior" and did not agree on a solution, blaming them for failing to settle a dispute over vehicle license plates.

European teams competing at the 2022 Qatar World Cup said they are very frustrated with FIFA's decision to impose sporting sanctions if players are to wear "OneLove" armbands in support of LGBT+ rights during the tournament, as it is criminalized in Qatar.

BBC pundit wearing OneLove armband before England-Iran game

BBC

  • In other news: Iran's players declined to sing the national anthem before the game, expressing their support for the ongoing anti-government protests at home.

Hungary's Foreign Minister Peter Szijjarto traveled to Russia to attend the ATOMEXPO international forum on nuclear energy, highlighting the country's close ties with Moscow amid the war in Ukraine. Szijjarto said the Nuclear Spring forum was in Hungary's "national strategic and national security interests" and that his visit to the expo would include talks with Russia's state atomic energy company Rosatom's head, over a planned Moscow-backed expansion of Hungary's only nuclear power plant.

Indonesia's main island Java experienced a 5.6 magnitude earthquake that killed at least 162 people and injured hundreds, with more than 13,000 people displaced by the disaster, the regional government said.

TECHNOLOGY

Head of Twitter in France, Damien Viel, said he was quitting his position after leading the platform's office for seven years. Viel did not elaborate on the reason behind his departure, although the resignation came amid new owner Elon Musk's infamous layoffs that cut down the staff globally by about half.

Twitter HQ

via NBC

  • More layoffs? Elon Musk is considering cutting more jobs that would target the company’s sales and partnership teams, Bloomberg reported.

Meta is facing a UK lawsuit that demands the company to stop harvesting personal data for targeted advertisements, challenging Facebook's "surveillance advertising" at the heart of its business model. The case adds to a series of regulatory and legal risks that Meta faces in Europe, from trans-Atlantic data flows to antitrust actions in Germany and the UK.

Disney's former CEO Bob Iger is making a comeback to serve once again as chief executive, less than a year after he retired, as the media giant attempts to boost investor confidence and profits at its streaming media unit. Iger, who served as the CEO for 15 years, agreed to take over the position for two more years effective immediately, replacing his successor Bob Chapek.

Disney stock

via Reuters

  • Background: Disney appointed investors this month, as an earnings report showed mounting losses at its streaming media unit, including Disney+, and shares hit a 20-year low the day after the Q4 earnings.

NASA's Orion capsule reached the Moon on Monday, on its way to a record-breaking orbit with test dummies as passengers. It is the first time a capsule has visited the Moon since the Apollo program and represents a milestone in the $4.1 billion test flight.

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