BlackMask Breaking News

FRANKFURT, Sept 8 (Reuters) – The European Central Bank will raise interest rates again on Thursday to fight runaway inflation and, with a big move and a record one under consideration, the only question is by how much. Concerned that sky-high inflation is getting increasingly entrenched, policymakers are scrambling to keep a lid on the bloc’s most damaging bout of price growth in nearly half a century as it eats up household savings and weighs on business output. Ultimately, the choice will be between a 50 and a 75 basis point increase in the zero percent deposit rate, with expectations now leaning towards a bigger increase but not with full conviction. The larger move would be the biggest ever increase of the ECB’s benchmark rate, but regardless of the outcome the bank’s direction of travel will be clear. More hikes are factored in for coming months as price pressures are consistently exceeding even the most pessimistic forecasts.

Buoyed by hawkish comments from conservative policymakers, markets now see a more than 80% chance of a 75 basis point hike. A slim majority of economists polled by Reuters are also predicting the larger increase. “With the hawks continuing to hold the upper hand, we think the ECB will deliver a 75 basis point increase,” BNP Paribas economist Paul Hollingsworth said. “We now expect a more front-loaded tightening cycle that takes the deposit rate up to a terminal rate of 2% by the end of the first quarter.” The decision also encapsulates a policy dilemma. Updates to ECB forecasts are certain to show sharply higher inflation but significantly weaker economic growth. Sky-high energy prices will sap purchasing power and almost certainly plunge the bloc into a recession that could be exacerbated by an aggressive ECB, especially with borrowing costs rising for governments as they try to help those most affected. A big hike after a decade of ultra-low rates also goes against the ECB’s guidance for gradualism and several policymakers, including board member Fabio Panetta and Greek central bank chief Yannis Stournaras, have made the case for a smaller move. Headline euro zone inflation is over 9% while its underlying rate is 4.3%, more than twice the ECB’s target, indicating that more and more of the energy-driven price pressures are seeping into the broader economy. The coming recession also makes the case for front-loading rate hikes as moving aggressively once the downturn takes hold will be difficult to communicate. NN: The ECB raised rates by a whopping 75 bases points today… Its biggest rate increase ever. I believe this could signal the start of a turn around in the Euro. The US Fed Reserve went first raising rates. And that forced capital into dollar assets. Now the the EU is catching up. i believe in time the Euro will return to previous levels against the dollar

U.S. economic activity was unchanged since early July, according to the Federal Reserve’s Beige Book report released on Wednesday. That compares with the “modest pace” indicated in the central bank’s previous snapshot of the U.S. economy in July. Five districts of the 12 that comprise the Federal Reserve system reported “slight to modest growth” and five others reported “slight to modest softening.” Inflation is clearly taking a toll. “Most districts reported steady consumer spending as households continued to trade down and to shift spending away from discretionary goods and toward food and other essential items,” the report said. Perhaps more telling, the “outlook for future economic growth remained generally weak, with contacts noting expectations for further softening of demand over the next six to twelve months.”

Here are some of the key points:

• Auto sales remained muted, due to limited inventories and elevated price.
• Hospitality and tourism contacts saw “solid leisure travel activity” and some “uptick in business and group travel.”
• In real estate markets, home sales in all 12 districts fell and residential construction remained constrained by input shortages. Demand for office space softened.
• Labor markets remained tight for the six weeks from the previous report, but almost all districts saw some improvement in labor availability, especially in manufacturing, construction, and financial services.
• Prices remained elevated, but nine districts reported some degree of moderation in the rate of increase. Substantial increases were reported across all districts, particularly in food, rent, utilities, and hospitality. Lower fuel prices helped ease cost pressures and several districts saw some tapering in prices for steel, lumber, and copper. Most contacts expected price pressure to remain for the rest of the year. Earlier this month, the U.S. unemployment rate increased to 3.7% in August and job gains moderate. NN: NO SURPRISES HERE

VIENNA, Sept 6 (Reuters) – The U.N. nuclear watchdog, the International Atomic Energy Agency (IAEA), on Tuesday issued a report on the situation in Ukraine including at the Russian-held Zaporizhzhia nuclear power plant where it has established a presence. Below are highlights from the roughly 50-page text.

OVERALL

“The IAEA is still gravely concerned about the situation at the ZNPP – this hasn’t changed.”

“Despite challenging circumstances, the IAEA has continued to implement safeguards in Ukraine … and the IAEA has not found any indication that would give rise to a proliferation concern.”

PROTECTION ZONE AT ZAPORIZHZHIA

“Pending the end of the conflict and re-establishment of stable conditions there is an urgent need for interim measures to prevent a nuclear accident arising from physical damage caused by military means. This can be achieved by the immediate establishment of a nuclear safety and security protection zone.

“The IAEA is ready to start immediately the consultations leading to the urgent establishment of such a nuclear safety and security protection zone at the ZNPP.”

DAMAGE AT ZAPORIZHZHIA

“The (IAEA) team closely witnessed shelling in the vicinity of the ZNPP, in particular on 3 September when the team was instructed to evacuate to the ground level of the Administrative Building. Moreover, the team observed damage at different locations caused by reported events with some of the damage being close to the reactor buildings, including damage to the following:

• One turbine lubrication oil tank;

• The roofs of various buildings such as the building for the spent fuel transporter vehicle;

• The special building that houses, among other items, the fresh nuclear fuel and the solid radioactive waste storage facility;

• The new training building;

• The building where the Central Alarm Station of the physical protection system is located; and

• The container where the radiation monitoring system is located, in the vicinity of the dry spent fuel storage facility.

“Some repair work had already been carried out or was in progress for some of the damage and noted that further work would be needed to repair all the damage caused. The team was informed that the radiation levels in the area remained normal.”

RUSSIAN MILITARY PRESENCE

“The team observed the presence of Russian military personnel, vehicles and equipment at various places at the ZNPP, including several military trucks on the ground floor of the Unit 1 and Unit 2 turbine halls and military vehicles stationed under the overpass connecting the reactor units. The team also observed the presence of an expert group from (Russian nuclear body) Rosenergoatom. It was explained to the team by the Ukrainian plant staff and managers that the role of this expert group was to provide advice on nuclear safety, security, and operations to the management of the ZNPP.”

UKRAINIAN STAFF OPERATING ZAPORIZHZHIA

“The team established that the operating staff did not have unrestricted access to some areas, such as the spray cooling ponds, roofs of the buildings, and structures in the area of the water intake, and that access to the cooling ponds area was required to be granted by the military personnel at the site. Following the (IAEA mission to Zaporizhzhia), the Director General raised concerns that such restrictions may limit the access of operating staff to some locations in case of an emergency and, thus, jeopardize the effectiveness of normal operation and the emergency response.

“The Ukrainian plant staff and managers reported to the team that 40% of positions in the area of physical protection were not currently staffed, which significantly increased the workload for existing staff to ensure continued physical protection at the site.” NN: Done your radiation suits and masks. Be sure to take your iodine tablets if your downwind.  It is standard ops to hide your military equipment at schools and hospitals to avoid your enemy bombing you. But a nuclear power plant….. No so stupid a idea…….. If your so inclined!!!

A new nuclear deal between Iran and world powers is off the table and will not be signed in the foreseeable future.  Attributed to President Joe Biden and other administration officials.  The nuclear agreement that was being negotiated since Biden entered the White House in January 2021 focused on removing sanctions on Iran in exchange for limiting Tehran’s ability to reach the capability to build a nuclear weapon. The Americans said that under the framework of the new nuclear deal, Iran would not be able to enrich uranium above 3.67 percent and could not reach a level at which it would be possible to produce a nuclear weapon. This limitation on Iran’s nuclear program would continue until 2031 under the proposed deal.  Iran would need to give up all uranium enriched to 20% and 60% in its possession as part of the agreement. Hundreds of kilograms of enriched uranium would need to be removed from Iran or diluted. The centrifuges to enrich uranium would be removed and stored on Iranian soil at a warehouse under the supervision of the International Atomic Energy Agency. Iran would not be able to carry out any plutonium processing, which can be used for weapons purposes, and would redesign the plutonium reactor at Arak so it cannot produce material for a nuclear bomb. The Americans pledged that if a deal were signed, the International Atomic Energy Agency would be able to renew its strict monitoring of nuclear facilities in Iran, after it was significantly curtailed by the Iranians. The Iranians refused to let the IAEA continue its activities. Now a deal appears to be off the agenda.

“This agreement will send approximately a quarter of a trillion dollars to the Iranian terror administration’s pocket and to its regional proxies, and will enable Iran to develop, install and operate centrifuges, with almost no restrictions, in a mere two years,”

Hundreds of billions of dollars would flow to Iran after the removal of sanctions. The money would serve to strengthen terror groups.  The Iranians would accelerate their vision of a “Shia crescent” running from their border with Iraq to the Mediterranean, strengthening the Houthis in Yemen and pro-Iranian militias in the region.

Three Months ago  EU Commission Chief urges Midcat Restart of France-Spain Pipeline

Just hours after Iran said on Thursday evening that it had sent a “constructive” response to the final draft of the nuclear deal to the Biden administration, the White House counter-responded by saying Tehran’s response was “not constructive” at all, lowering optimism that a deal will be finalized soon.  The latest back-and-forth comes shortly after a European Union diplomat suggested that a deal could be signed soon, and after Iran’s indications that it was looking forward to finalizing the agreement that would see Iranian oil back on the market.  A U.S. State Department spokesman has now said that while Iran’s response is still being studied, it was not viewed as constructive, CNN reports.  “We are studying Iran’s response, but the bottom line is that it is not at all encouraging,” a senior Biden administration official told POLITICO on Thursday evening. No details have been given as to the exact nature of Iran’s response, but the same administration official said “based on their answer, we appear to be moving backwards”. The same sentiment was echoed by a European diplomat who told Bloomberg that the Iranian response seemed “negative and not reasonable”.  The markets are now speculating over what this means for the fate of the nuclear deal, which the Biden administration was hoping to secure before the midterm elections.  “With this opportunity squandered, it is now hard to imagine that a deal can happen before the midterms,” Ali Vaez, a top analyst with the International Crisis Group, told Bloomberg. The markets have been anxious over a revival of the nuclear deal, which could significantly impact prices.  “Should the nuclear deal be revived, 1-2 million barrels per day of extra oil could hit the market in a comparatively short period of time,” a commodities analyst told CNBC.

Iran There Will Be No Nuclear Deal Unless IAEA Ends Probe

old news:https:

Contrary to fears expressed publicly by European politicians, the flow of natural gas via the Nord Stream 1 pipeline looks set to restart today after a three-day unscheduled maintenance that Gazprom announced last month. European leaders voiced the same fears in July, when Nord Stream 1 was shut down for its annual planned maintenance. The resumption of flows now will be at the same level as before the temporary shutdown, at 20 percent of capacity. In a report from earlier today, Bloomberg cited grid data as suggesting the flow of gas will restart tomorrow. However, Nord Stream would need more frequent maintenance in the coming months as it only has one functioning turbine at the entry point to Germany. According to Gazprom the turbine needs to undergo maintenance every 1,000 hours, which is once every 42 days. Earlier this year, another Nord Stream 1 turbine rose to notoriety after it got stuck in Canada because the local government had just introduced new sanctions on Russia preventing it from returning the piece of equipment after repairs. The turbine was eventually shipped to Germany and Siemens Energy, which is in charge of the maintenance. It got stuck there again and is still stuck while Siemens Energy and Gazprom argue over the necessary documentation that would see the turbine go home. Europe has stepped up its imports of U.S. LNG and LNG from anywhere else to replace Russian flows, even before Nord Stream 1 was reduced to 20 percent of capacity but it seems those wouldn’t be enough to last the winter so European governments are urging consumption cuts. Last month, the EU approved a bloc-wide 15-percent gas consumption reduction plan, which is voluntary but if the cuts do not materialize could become obligatory. Energy rations are also a possibility in many European countries, especially if the winter is harsh. NN: They are having a hissi fit  in Europe. The Lefty Liberals that fucked things up in the first place are still fucking things up…. They just can’t help themselves. Panic spread across Europe when the announcement was made that Nord Stream I was shut. My dick got hard (much more fun then a titty bar) as i watched the Euro  and pound get pounded. So doing what i do i  bought MORE Euro’s……  If the lefty liberals in essence are selling in a panic i just got to buy. And as i was finishing operations  Russia passed the gas. As in reopening the vital gas pipeline to Europe…… surprise surprise. How did I know? Well it gets down to differences. While my ha ha ha colleagues were going to those Ivy League mind destruction centers, Having toga parties, lunch at daddy’s country club and driving brand new mussel cars and Euro go slow sports cars. I was fighting junkies, gangsters and struggling to educate myself and survive in Hells kitchen. I lived through the drug wars. And i will live though the energy and food war we are in now. Funny thing  most people do not even know its a war,  And i will turn the global warming myth mankind is doomed myth into a great payday, So its a matter of perspective. I understand predator thinking and societal  myths. Putin has to not freeze Europe out completely, Not totally starve them.  He has to make them cold enough and hungry enough. I saw the drug dealers keep the junkies in line. If they could not pay they would beat the shit out of them…. And then supply them again. The loan sharks and people in the protection business as did the pimps know how to push their prey to the limit…. Then back away a little bit. As to make them desperate but not to desperate….. Europe and the US will have all the food and energy it needs at a price. And the world will be colder in the winter, hotter in the summer and hungrier.. But most important poorer. They want to believe the world is ending because of global warming… Ok they will pay the price… Like throwing virgins into volcanoes, sacrificing your children to Molech. Worshiping your leaders as infallible GODS. The myths  great societies believe  eventually destroys them great and small… Stupidness is the deadliest most infectious disease of them all!!