Germany may resort to rationing gas to combat drastically reduced supplies after last week's announcement by Russia's state oil company Gazprom that it was turning off its Nord Stream pipeline into Europe indefinitely due to technical difficulties.
The decision has piled pressure on a region already in the grips of an energy crisis, and German gas importer Uniper said on Monday it was mulling legal action over Gazprom's decision, which has led to surging European gas prices and the euro retreating to a two-decade low.
The unpropitious outlook prompted France on Monday to announce a reciprocal partnership with Germany in which they will support each other in terms of supplies when the need arises.
EU Commission President Ursula von der Leyen also suggested the bloc could seek to offer liquidity help to European energy firms.
Neither of these measures may be sufficient to avoid the previously unthinkable prospect of gas rationing in a major European economy, said Uniper chief Klaus-Dieter Maubach.
“We cannot rule out that Germany might look at rationing gas as something that might have to be considered,” he said.
“We know that the government wants to avoid this as much as possible because that would be a disaster for so many reasons.”
Mr Maubach also disputed Gazprom's explanation for the Nord Stream 1 shutdown, saying it was clearly politically and not technically motivated. He added that Uniper was considering legal action as a result.
“The curtailment [of gas flows] was never a technical issue, but a political decision. As such, it will continue to be a political decision,” he told attendees on the first day of the Gastech conference in Milan, Italy.
“Whether the flows will increase or decrease, I would dare to say this has been decided in the Kremlin and not in Gazprom headquarters.”
Despite the pressures on supply, Germany is sticking to its long-held plan of shutting down the country’s three remaining nuclear power plants this year but keeping the option of reactivating two of them, officials said on Monday.
It will also work with France after an accord between the two countries was reached regarding gas redistribution, French President Emmanuel Macron told a news conference following a phone call with German Chancellor Olaf Scholz.
“Germany needs our gas and we need power from the rest of Europe, notably Germany,” Mr Macron said. He added that the necessary connections for France to deliver gas to Germany when needed would be finalised in the coming months.
Mr Macron expressed support for power connections across Europe but, following criticism from Spain, said he did not understand demand for a third gas link between France and Spain.
On Monday, he called for a sharp 10 per cent reduction in the country’s energy use in the coming weeks and months to avoid the risk of rationing and cuts this winter.
Mr Macron said that forced energy savings might have to be considered if voluntary efforts are not enough.
He said energy rationing plans are being prepared “in case” they are needed and that “cuts will happen as a last resort".
“The best energy is that which we don’t consume,” the French leader said at a news conference, where he urged businesses and households to save energy through measures such as turning down heating and air conditioning.
The EU is preparing emergency plans to cap prices or separate power prices from the soaring cost of gas — as well as longer-term reforms aimed at ensuring electricity prices reflect cheaper renewable energy.
Energy ministers from EU countries will meet on September 9 to discuss how to ease the burden of soaring energy prices on businesses and households as a matter of urgency.
Mr Macron said France was in favour of buying gas at a European rather than a national level, and called for EU measures to control energy prices.
Separately, Ms von der Leyen outlined some of the possible proposals on Twitter, which include liquidity help for companies.
Many companies are finding it increasingly difficult to manage margin calls, an exchange requirement for extra collateral to guarantee a trading position when prices rise.
Sweden and Finland created emergency backstops at the weekend to help utilities struggling with collateral requirements.
The uncertainty led to European stocks slumping and the euro falling to a near two-decade low on Monday while the dollar strengthened.
The pound declined to its lowest level since 1985 but then steadied after the UK’s Conservative Party named Liz Truss as its leader, clearing her way to become prime minister.
Her plan to “turbocharge” the economy by slashing taxes is already worrying investors amid double-digit inflation.
Oil gained as Opec+ unexpectedly agreed to make a token oil supply cut for October.
SPECS
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%20Dual%20electric%20motors%20with%20102kW%20battery%20pack%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPower%3A%20%3C%2Fstrong%3E570hp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20890Nm%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERange%3A%3C%2Fstrong%3E%20Up%20to%20428km%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%20%3C%2Fstrong%3EFrom%20Dh1%2C700%2C000%3C%2Fp%3E%0A
Killing of Qassem Suleimani
Global state-owned investor ranking by size
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1.
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United States
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2.
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China
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3.
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UAE
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4.
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Japan
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5
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Norway
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6.
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Canada
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7.
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Singapore
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8.
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Australia
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9.
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Saudi Arabia
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10.
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South Korea
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Persuasion
%3Cp%3E%3Cstrong%3EDirector%3A%20%3C%2Fstrong%3ECarrie%20Cracknell%C2%A0%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%20%3C%2Fstrong%3EDakota%20Johnson%2C%20Cosmo%20Jarvis%2C%20Richard%20E%20Grant%2C%20Henry%20Golding%20and%20Nikki%20Amuka-Bird%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%201.5%2F5%3C%2Fp%3E%0A
Killing of Qassem Suleimani
Naga
%3Cp%3E%3Cstrong%3EDirector%3A%C2%A0%3C%2Fstrong%3EMeshal%20Al%20Jaser%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStarring%3A%C2%A0%3C%2Fstrong%3EAdwa%20Bader%2C%20Yazeed%20Almajyul%2C%20Khalid%20Bin%20Shaddad%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%20%3C%2Fstrong%3E4%2F5%3C%2Fp%3E%0A
The 12
England
Arsenal, Chelsea, Liverpool, Manchester City, Manchester United, Tottenham Hotspur
Italy
AC Milan, Inter Milan, Juventus
Spain
Atletico Madrid, Barcelona, Real Madrid
Ipaf in numbers
Established: 2008
Prize money: $50,000 (Dh183,650) for winners and $10,000 for those on the shortlist.
Winning novels: 13
Shortlisted novels: 66
Longlisted novels: 111
Total number of novels submitted: 1,780
Novels translated internationally: 66
MATCH INFO:
Second Test
Pakistan v Australia, Tuesday-Saturday, 10am daily at Zayed Cricket Stadium, Abu Dhabi
Entrance is free
How Tesla’s price correction has hit fund managers
Investing in disruptive technology can be a bumpy ride, as investors in Tesla were reminded on Friday, when its stock dropped 7.5 per cent in early trading to $575.
It recovered slightly but still ended the week 15 per cent lower and is down a third from its all-time high of $883 on January 26. The electric car maker’s market cap fell from $834 billion to about $567bn in that time, a drop of an astonishing $267bn, and a blow for those who bought Tesla stock late.
The collapse also hit fund managers that have gone big on Tesla, notably the UK-based Scottish Mortgage Investment Trust and Cathie Wood’s ARK Innovation ETF.
Tesla is the top holding in both funds, making up a hefty 10 per cent of total assets under management. Both funds have fallen by a quarter in the past month.
Matt Weller, global head of market research at GAIN Capital, recently warned that Tesla founder Elon Musk had “flown a bit too close to the sun”, after getting carried away by investing $1.5bn of the company’s money in Bitcoin.
He also predicted Tesla’s sales could struggle as traditional auto manufacturers ramp up electric car production, destroying its first mover advantage.
AJ Bell’s Russ Mould warns that many investors buy tech stocks when earnings forecasts are rising, almost regardless of valuation. “When it works, it really works. But when it goes wrong, elevated valuations leave little or no downside protection.”
A Tesla correction was probably baked in after last year’s astonishing share price surge, and many investors will see this as an opportunity to load up at a reduced price.
Dramatic swings are to be expected when investing in disruptive technology, as Ms Wood at ARK makes clear.
Every week, she sends subscribers a commentary listing “stocks in our strategies that have appreciated or dropped more than 15 per cent in a day” during the week.
Her latest commentary, issued on Friday, showed seven stocks displaying extreme volatility, led by ExOne, a leader in binder jetting 3D printing technology. It jumped 24 per cent, boosted by news that fellow 3D printing specialist Stratasys had beaten fourth-quarter revenues and earnings expectations, seen as good news for the sector.
By contrast, computational drug and material discovery company Schrödinger fell 27 per cent after quarterly and full-year results showed its core software sales and drug development pipeline slowing.
Despite that setback, Ms Wood remains positive, arguing that its “medicinal chemistry platform offers a powerful and unique view into chemical space”.
In her weekly video view, she remains bullish, stating that: “We are on the right side of change, and disruptive innovation is going to deliver exponential growth trajectories for many of our companies, in fact, most of them.”
Ms Wood remains committed to Tesla as she expects global electric car sales to compound at an average annual rate of 82 per cent for the next five years.
She said these are so “enormous that some people find them unbelievable”, and argues that this scepticism, especially among institutional investors, “festers” and creates a great opportunity for ARK.
Only you can decide whether you are a believer or a festering sceptic. If it’s the former, then buckle up.
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
Ferrari 12Cilindri specs
Engine: naturally aspirated 6.5-liter V12
Power: 819hp
Torque: 678Nm at 7,250rpm
Price: From Dh1,700,000
Available: Now
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
