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European Energy, OPEC+ Meetings, Truss Triumph – Market Moves

By Geoffrey Smith — Moscow’s gas shutdown exacerbates Europe’s energy emergency, pushing euro towards new – year low. OPEC meets with Russia to discuss output strategy in October. Britain will have a new Prime Minister. Volkswagen will approve Porsche’s IPO, unlocking value to fund its electrification ambitions, while Bed Bath & Beyond suffers a human tragedy. Here’s what you need to know about the financial markets as the United States celebrates Labor Day on Monday, September 5.

1. Gas shutdown deepens Europe’s energy crisis; euro hits new low

Europe energy after Russia The deepening emergency ) closed the Nord Stream 1 pipeline to Germany late Friday , sparking concerns that continental Europe will have to live without Natural Gas from its largest supplier this winter. Russia blamed the shutdown on technical problems requiring maintenance.

Developments make the recession worse and inflation peaks higher ) It is likely that with natural gas and Electricity prices soared again and EUR 100 fell to a new 100 against USD year lows.

Over the weekend, Germany announced a new windfall tax on electricity producers to fund​​65 billion euros ( $25 billion) rescue package for households and businesses. Sweden and Finland have also provided emergency liquidity support to energy suppliers to ensure the main Nordic electricity market continues to function.

2. OPEC+ meets as G7 moves to cap Russian export prices

Russia’s move on Friday was a response to G-7 decision to implement put a price cap on Russian oil exports , a move aimed at reducing cash flows to Vladimir Putin’s government but also creating serious implementation difficulties .

The Russian energy minister will meet later with his OPEC counterparts, suggesting that the group will cut production by as much as 100, 06 a one-day barrel in October, reversing the increase in tokens agreed a month earlier.

What is the actual impact when OPEC+ countries are already producing nearly 3 million barrels per day below their agreed quotas.

U.S. crude futures rose 2.7% to $64. 25 a barrel, while Brent rose 2.9 % to 95 USD. 65 A bucket.

3. European stocks tumble on gas news; Volkswagen approves Porsche IPO

U.S. markets closed for Labor Day holiday, but European stocks tumbled after news from Russia on Friday a mess.

go through06: 20 ET, benchmark STOXX 600 fell 1.1%, but German DAX and Italian FTSE MIB are the most vulnerable Both economies hit by Russia’s gas shortages fell more than 2 percent, paring losses after initially falling more than 3 percent.

Stocks that may continue to watch later include Volkswagen (ETR:

VOWG_p), whose board will approve Porsche An initial public offering of preferred stock, hoping to raise funds to fund a huge investment budget for the power transition in the coming years. It will also approve the sale of a 25% voting stake in the sports car maker to Porsche Cars Holding AG, through the company Piech and the Porsche family control the Volkswagen Group.

4. Truss will be appointed as the new leader of the UK Conservative Party

Liz Truss will be the next Prime Minister of the UK When the Conservative Party announces the leadership election results at 000: 100 Eastern time. Truss appeared to have overwhelming support from party members as her campaign focused on the need for tax cuts, while also promising a major increase in defense spending.

Truss has pledged to decide on a package of measures to ease the pain of the energy crisis within a week of his appointment.

The developments should bring an end to a devastating period of uncertainty that has devastated the sterling and UK government bond markets in recent weeks. However, many other questions, such as Truss’ intentions for the independence of the Bank of England and her attitude towards EU relations (her team reportedly plans to tear up the UK’s Brexit deal) remain unanswered.

5. Bed Bath & Beyond CFO Suicide

Bed Bath & Beyond’s (NASDAQ: BBBY ) CFO Gustavo Arnal committed suicide over the weekend 100, two days after the company announced plans to close by about a fifth store and cut thousands of jobs.

His passing leaves BBBY without a CFO or permanent CEO as it struggles to finalize accounts for the quarter ended August 20th.

Arnal & Chewy (NYSE: CHWY) founder and GameStop (NYSE: GME) Ryan Cohen in a shareholder lawsuit seeking class-action status. The suit alleges that the pair attempted to inflate BBBY’s stock price before Cohen dumped his shares on the market last month, frustrating retail investors who had expected Cohen to lead the troubled retailer to profitability .

Bed Bath & Beyond and other meme stocks have become synonymous with the gamification of financial markets over the past few years.

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