Day: September 5, 2022

Canada hunts suspects in stabbing spree that killed 10, wounded 15

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World 10 minutes ago (Sep 05, 2022 12:21AM ET)

Canada hunts suspects in stabbing spree that killed 10, wounded 15

By David Stobbe and Ismail Shakil

WELDON, Saskatchewan (Reuters) -Canadian police hunted for two suspects in a stabbing spree that killed 10 people and wounded at least 15 others mostly in a sparsely populated indigenous community early Sunday.

The stabbings across 13 crime scenes were among the deadliest mass killings in modern Canadian history and certain to reverberate throughout the country, which is unaccustomed to bouts of mass violence more commonly seen in the United States.

“I am shocked and devastated by the horrific attacks today,” Prime Minister Justin Trudeau said in a statement. “As Canadians, we mourn with everyone affected by this tragic violence, and with the people of Saskatchewan.”

Police named the two suspects as Damien Sanderson, 31, and Myles Sanderson, 30, providing photos and descriptions but no further details about their motive or the victims.

A statement by indigenous leaders indicated the attacks may have been drug related.

“This is the destruction we face when harmful illegal drugs invade our communities,” said Federation of Sovereign Indigenous Nations. The group represents 74 First Nations in Saskatchewan.

A mother of two was among the 10 people killed, local media reported, citing the woman’s former partner.

“It’s sick how jail time, drugs and alcohol can destroy many lives,” Michael Brett Burns told the Aboriginal Peoples Television Network.

In May, Myles Sanderson was listed as “unlawfully at large” by Saskatchewan Crime Stoppers, a program that encourages the public to cooperate with police. There were no further details about why he was wanted.

The two men were seen traveling in a black Nissan (OTC:) Rogue and spotted in the city of Regina, about 320 km (200 miles) south of the attacks in the James Smith Cree (NYSE:) Nation and the village of Weldon, police said.

“It appears that some of the victims may have been targeted, and some may be random. So to speak to a motive would be extremely difficult at this point in time,” Rhonda Blackmore, commanding officer of the Saskatchewan Royal Canadian Mounted Police, told a news conference.

There may be additional injured victims who transported themselves to various hospitals, police said.

James Smith Cree Nation is an indigenous community with a population of about 3,400 people largely engaged in farming, hunting and fishing. Weldon is a village of some 200 people.

The nation’s elected elders declared a state of emergency “in response to the numerous murders and assaults on members of the James Smith Cree Nation,” and established two emergency operations centers, the nation said in a statement.

Indigenous people account for less than 5% of Canada’s population of about 38 million and suffer from higher levels of poverty, unemployment and a lower life expectancy than other Canadians.

Trudeau said his government had been in direct communication with the James Smith Cree Nation leadership, adding, “we are ready to assist in any way we can.”

The first stabbings were reported at 5:40 a.m. (1140 GMT) and within three hours police issued a province-wide dangerous persons alert. By the afternoon, similar alerts were also issued in Saskatchewan’s neighboring provinces Alberta and Manitoba.

Police bulletins urged people to report any suspicious people and to take precautions including sheltering in place, while warning against picking up hitchhikers or approaching suspicious people.

“Do not leave a secure location. Use caution allowing others into your residence,” one advisory said.

A police alert issued shortly after midday said they may be in Regina, one of the province’s largest cities, where a large police presence was already mobilized because of a Canadian football game at Mosaic Stadium near the center of town.

However, Blackmore said it was unknown where the suspects might be headed or if they had changed vehicles.

“It is horrific what has occurred in our province today,” Blackmore said, calling the attacks one of the largest if not the largest in recent history in the province.

The Saskatchewan Health Authority activated an emergency response bringing in additional staff to treat to victims, later declaring it over as “the risk of a high influx of patient transfers due to this situation is no longer prominent.”

“We can confirm that multiple people have been triaged and cared for at multiple sites and that a call for additional staff to help respond to this situation has occurred,” the health authority said in a statement.

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South Korea braces for ‘very strong’ typhoon, businesses curb operations

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Stock Markets 3 hours ago (Sep 05, 2022 11:16AM ET)

South Korea braces for 'very strong' typhoon, businesses curb operations© Reuters.

By Joori Roh

SEOUL (Reuters) -South Korea raised its typhoon-alert to its highest level on Monday as approaching Typhoon Hinnamnor forced flight cancellations, the suspension of some business operations and the closure of schools.

Heavy rain and strong wind pounded the south of the country as the typhoon approached from the south at a speed of 33 km per hour (20.5 mph). Hinnamnor is expected to make landfall southwest of the port city of Busan early on Tuesday, after reaching the holiday island of Jeju on Monday.

President Yoon Suk-yeol said he would be on emergency standby, a day after ordering authorities to do their best to minimise damage from the typhoon.

“Very strong winds and heavy rains are expected across the country through to Tuesday due to the typhoon, with very high waves expected in the coastal region along with storm and tsunami,” the Korea Meteorological Administration (KMA) said.

Hinnamnor is on a course that will take it northeast toward Sapporo, Japan, it said.

South Korea classifies typhoons in four categories – normal, strong, very strong, super strong. “Very strong” typhoons like Hinnamnor have wind speeds of up to 53 metres per second.

Warnings have been issued in the southern cities of Gwangju, Busan, Daegu and Ulsan, as well as on Jeju, while the Central Disaster and Safety Countermeasures Headquarters has upgraded its typhoon alert level to the highest in its four-tier system, for the first time in five years.

Busan city and neighbouring areas have received rain throughout the weekend, with more forecast across the country for Monday and Tuesday.

No casualties have been reported though more than 100 people have been evacuated and some facilities have been damaged by floods.

Shipbuilders Hyundai Heavy Industries, Daewoo Shipbuilding & Marine Engineering (DSME) and Samsung (KS:) Heavy Industries said they would halt operations early on Tuesday.

A spokesperson for LG Electronics said it would halt operations on Tuesday at its Gumi production facilities that make large OLED TVs, while steelmaker POSCO (NYSE:) is halting operations at its production facilities including its furnaces on Tuesday, the Yonhap news agency said.

SK Innovation, owner of South Korea’s top refiner SK Energy, said it asked carrier ships not to operate until the typhoon passes.

Korean Air Lines and Asiana Airlines have cancelled most of their Monday flights to Jeju Island, according to their websites, while budget airlines such as Air Seoul and Jin Air have cancelled some of their flights.

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China, Hong Kong Stocks Hit by COVID Fears; Asian Markets Fall

Stock Markets 2 hours ago (Sep 05, 2022 12:51AM ET)

China, Hong Kong Stocks Hit by COVID Fears; Asian Markets Fall© Reuters.

By Ambar Warrick 

Investing.com– Chinese and Hong Kong stocks sank on Monday amid growing concerns over new COVID-19 lockdowns, while Asian markets fell after strong U.S. jobs data raised the prospect of more steep interest rate hikes by the Federal Reserve.

Hong Kong’s tech-heavy index was the worst performer in the region, dropping 1.4%. Tech majors including Baidu Inc (HK:), Alibaba Group Holding Ltd (HK:), and Tencent Holdings Ltd (HK:) fell between 1.9% and 3%, weighing the most on the index.

China’s blue-chip index slipped 0.6%, while the index traded flat. Sentiment towards Hong Kong and China worsened over the weekend after the government introduced new curbs in Chinese cities Shenzhen and Chengdu to combat a resurgence in COVID-19 cases.

The lockdowns are the latest in a string of curbs introduced by Beijing this year, as part of its zero-COVID policy. The government’s refusal to budge on the policy has taken a costly toll on China’s economy this year.

Chinese stocks have fallen sharply this year, while the yuan sank to two-year lows. 

Still, data on Monday showed that China’s grew more than expected in August, indicating some signs of recovery from the pandemic. 

Broader Asian stock markets retreated after data on Friday showed that U.S. grew more than expected in August. The reading gives the Fed more space to keep raising interest rates at a fast pace in 2022.

Traders are now pricing in a 57% chance of a 75 basis point hike by the Fed in . 

Philippine’s sank 0.6% and was the worst performer in Southeast Asia.

South Korea’s index fell 0.3%. Economic activity in the country is expected to face disruptions from Typhoon Hinnamnor, one of the worst storms faced by South Korea in recent times. 

On the other hand, Australia’s rose 0.2% after data showed that the country’s unexpectedly grew in August. Australian corporate earnings also grew more than expected in the second quarter.

Oil up nearly 3% as OPEC+ agrees to small oil output cut

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Commodities 12 hours ago (Sep 05, 2022 01:45PM ET)

Oil up nearly 3% as OPEC+ agrees to small oil output cut© Reuters. FILE PHOTO: An oil pump jack pumps oil in a field near Calgary, Alberta, Canada on July 21, 2014. REUTERS/Todd Korol/File Photo

By Arathy Somasekhar

HOUSTON (Reuters) – Oil prices rose about 3% on Monday, as OPEC+ members agreed to a small production cut of 100,000 barrels per day to bolster prices.

futures for November delivery settled $2.72 higher at $95.74 a barrel, a 2.92% gain.

Prices had climbed nearly $4 earlier in the session, but were tamed by comments from the White House that U.S. President Joe Biden was committed to taking all steps necessary to shore up energy supplies and lower prices.

rose $2 to $88.85 per barrel, a 2.3% rise after a 0.3% gain in the previous session, in thin volumes during the U.S. Labor Day holiday.

The 100,000 barrels per day (bpd) reduction by the Organization of the Petroleum Exporting Countries (OPEC) and its allies, a group known as OPEC+, amounts to only 0.1% of global demand. The group also agreed they could meet any time to adjust production before the next scheduled meeting on Oct. 5.

“It’s the symbolic message the group wants to send to the markets more so than anything,” said Oanda analyst Craig Erlam, adding that the 100,000 bpd raise last month by OPEC+ was not seen as a big deal.

“What we’ve probably seen from the markets was pricing in most of the worst-case scenario,” Erlam added.

Top OPEC producer Saudi Arabia last month flagged the possibility of output cuts to address what it sees as exaggerated oil price declines.

Russian Deputy Prime Minister Alexander Novak said that expectations of weaker global economic growth were behind a decision by Moscow and its OPEC allies to cut oil output.

Russian Energy Minister Nikolai Shulginov said the country would most likely reduce its oil production by around 2% this year, TASS news agency reported.

“The bigger picture is that OPEC+ is producing well below its output target and this looks unlikely to change given that Angola and Nigeria, in particular, appear unable to return to pre-pandemic levels of production,” Caroline Bain, chief commodities economist at Capital Economics, said.

Oil prices have fallen in the past three months from multi-year highs hit in March, pressured by concerns that interest rate increases and COVID-19 curbs in parts of China could slow global economic growth and dent oil demand.

Lockdown measures in China’s southern technology hub of Shenzhen eased on Monday as new infections showed signs of stabilizing though the city remains on high vigilance.

Meanwhile, talks to revive the West’s 2015 nuclear deal with Iran, potentially providing a supply boost from Iranian crude’s returning to the market, have hit a new snag. The White House on Friday rejected Iran’s call for a deal to be linked with closure of investigations by the U.N. nuclear watchdog, a Western diplomat said.

Iran’s minister of petroleum said the global energy market needs an increase in supply of oil from Iran.

Use of oil in power generation is also expected to pick up, analysts said, as Russia’s state-controlled Gazprom (MCX:) on Friday said it would stop pumping gas via the Nord Stream 1 pipeline due to a fault.

The International Energy Agency last month raised its oil demand forecast for the year, partly because it expects gas-to-oil switching in some countries due to record and electricity prices.

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No time to waste, worried Italian business leaders warn politicians

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No time to waste, worried Italian business leaders warn politicians© Reuters. FILE PHOTO: An employee works at a ceramics factory where the workers start their shifts before dawn to optimise sunlight and save energy, in Citta di Castello, Italy, August 30, 2022. REUTERS/Jennifer Lorenzini/File Photo

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By Valentina Za and Elvira Pollina

CERNOBBIO, Italy (Reuters) -Italy cannot afford weeks of political inertia after an election this month, business chiefs said, adding that sky-high energy prices are already forcing more and more firms to curtail production.

Gathered on the shores of Lake Como for the annual Ambrosetti Forum this weekend, business owners lashed out at politicians for ousting Prime Minister Mario Draghi in the midst of an energy crisis in Europe.

“Before the new government’s ministers get their bearings it’ll be Christmas, but we face problems that need tackling in days, not weeks,” said Armando De Nigris, chairman of the balsamic vinegar maker of the same name.

Record gas prices have more than doubled the cost of condensing the grapes that go into the 35 million bottles of balsamic vinegar De Nigris produces every year.

“We risk producing something that we won’t be able to sell in six months’ time because we can’t pass on the price increases,” he said.

A centre-right bloc is on course for a clear victory in the Sept. 25 election but government formation is a notoriously slow process in Italy.

Industry lobby Confindustria last week warned Italy faced “an economic earthquake” due to higher energy prices and called for support from the caretaker administration led by Draghi, a former chief of the European Central Bank.

Italy has already earmarked over 50 billion euros this year to try to soften the impact of higher energy costs for firms and households and more help is expected this week.

RECOVERY FUNDS AT RISK?

Riccardo Illy, chairman of the Polo del Gusto food group that owns French tea brand Damman Freres and chocolate label Domori, feared Italy will miss out on some of the promised EU funds for its post-COVID recovery.

“Draghi could have continued till the end of his mandate … whoever comes next will make us lose billions of euros,” he said. Italy is in line for some 200 billion euros but the funds are conditional on it implementing a series of reforms.

Reliance on Russian gas and a large manufacturing sector made up predominantly of small businesses render the Italian economy particularly vulnerable to the energy crisis.

Since the Ukraine conflict started in February, many companies in energy-intensive sectors such as steel, glass, ceramics and paper have been forced to curtail production because production costs were too high.

“When the next (economy) minister sets out to solve our problems – and we can only hope he’s the best of ministers – it may be too late,” said Romano Pezzotti, who runs metals recycling business Fersovere near the northern city of Bergamo.

“After making the big mistake of toppling the government during the worst crisis of the past century … politicians will need to again turn to somebody capable of solving the country’s problems,” he added.

The energy crisis casts the longest shadow.

“We all know what needs to be done,” said Matteo Tiraboschi, executive chairman of premium brakes maker Brembo, a larger business listed on the Milan stock market.

“The energy bill in Italy has virtually doubled.”

European Stock Futures Lower; Potential Energy Shortages Weigh

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Stock Markets 3 hours ago (Sep 05, 2022 01:54AM ET)

European Stock Futures Lower; Potential Energy Shortages Weigh© Reuters.

By Peter Nurse

Investing.com – European stock markets are expected to open sharply lower Monday, as investors fret over the economic risks facing the region, including potential energy shortages, slowing growth, and soaring inflation.

At 02:00 ET (06:00 GMT), the contract in Germany traded 3.3% lower, in France dropped 0.5%, and the contract in the U.K. fell 0.1%.

Russia announced over the weekend that one of its main supply pipelines to Europe would remain shut indefinitely, scrapping a Saturday deadline for gas flows down the Nord Stream pipeline to resume, citing an oil leak in a turbine.

The Nord Stream pipeline was already running at just 20% of capacity before flows were halted last week for maintenance. This move will likely push up already sky-high gas prices, and spark fears of energy rationing in Europe as winter approaches.

The soaring energy prices can only add to inflation, which is already at in the Eurozone and fast approaching double digits.

This is putting pressure on the to act, and the policymakers are set to respond on Thursday with a second, large interest-rate hike, tightening before economic conditions deteriorate further.

That said, economic data due for release later in the sector is expected to show that economic activity in the Eurozone contracted further in August, with the S&P Global index seen falling to 49.2 from 49.9.

in the region could grow 0.4% on the month in July, but this only represents a small rebound from the 1.2% fall the previous month. The release is expected to fall 0.7% in July.

There was some good news overnight, as Chinese service sector activity expanded more than expected in August, with the coming in at 55, ahead of the expected 54 reading.

Elsewhere, Foreign Minister is widely expected to be named the new U.K. prime minister later Monday, and she will have her hands full immediately with the county facing a cost of living crisis, industrial unrest, and a prolonged recession.

Oil prices jumped higher Monday ahead of a meeting of top producers, with traders reacting to the possibility of a cut in output to support the market.

The Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, meets later Monday, and is largely expected to keep current output levels despite supplies remaining tight.

However, Saudi Arabia, the de facto leader of the group, recently floated the idea of cutting production levels to support prices, and this potential is supporting the market.

Oil prices have fallen in the past three months, after touching multi-year highs in March, on concerns that interest rate hikes and COVID-19 curbs in parts of China, the world’s top crude importer, may slow global economic growth and cool oil demand.

By 02:00 ET, futures traded 1.9% higher at $88.55 a barrel, while the contract rose 2.2% to $95.03.

Additionally, rose 0.1% to $1,724.10/oz, while traded 0.6% lower at 0.9887.

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Euro plunges to new 20-year low after Russian gas halt

Euro plunges to new 20-year low after Russian gas halt© Reuters. FILE PHOTO: U.S. Dollar and Euro banknotes are seen in this illustration taken July 17, 2022. REUTERS/Dado Ruvic/Illustration

By Tommy Wilkes

LONDON (Reuters) -The euro sank below $0.99 to a new 20-year low on Monday after Russia’s halt to gas supplies down its main pipeline to Europe heightened fears about a deepening energy crisis across the region.

The euro has been increasingly correlated with prices in recent months, with the former falling when prices of the energy source rise.

Europe is scrambling to wean itself off Russian supplies and build up reserves before the cold winter months, but investors reckon the hit to its economy will be huge.

Russia scrapped a Saturday deadline for flows down the Nord Stream pipeline to resume, citing an oil leak in a turbine. It coincided with the Group of Seven finance ministers announcing a price cap on Russian oil.

The euro slid to as low as $0.9876 in early European trade, the lowest level since 2002, before recovering to $0.9939, still 0.2% lower on the session.

“Gas flows have been curtailed even more than expected and we have already seen evidence of demand destruction weighing on activity,” said Michael Cahill, a strategist at Goldman Sachs (NYSE:).

“We now expect the Euro to fall further below parity ($0.97) and remain around that level for the next six months,” he added.

Other currencies vulnerable to spiralling energy prices also fell. In early trading, sterling dropped half a percent to a new 2-1/2 year low of $1.1444, with traders also eyeing the announcement of a new British prime minister due around 1130 GMT.

The , which measures the greenback against a basket of currencies, briefly hit 110.27, its strongest since June 2002 as the euro tumbled. It later fell back and was last down 0.2% at 109.74.

ECB MEETING

In what is a huge week for the euro, investors are also preparing for Thursday’s European Central Bank (ECB) meeting and markets have priced a near 80% chance of a supersized 75 basis point (bp) interest rate hike.

ECB officials will be keen to see the euro, which has lost around 8% of its value in the past three months, stabilise. That will feed into the desire to try to tame inflation through tightening policy.

“Should the ECB push back so prematurely on market pricing, it will likely draw the curtains for the euro’s burial,” said Simon Harvey, head of FX analysis at Monex Europe.

“While this would come as welcome news to the German manufacturing sector, which has seen new export orders continue to shrink, it would only fan the current energy related inflation pressures, making the ECB’s goal of price stability even harder to reach.”

Other currencies that tend to perform badly when market confidence is shaken also fell on Monday. The risk-sensitive Australian dollar slid as much as 0.5% towards a seven-week low at $0.6773

The dollar’s appeal as the go-to currency this year helped it to rise even against safe-haven currencies. It rose to 140.59 Japanese yen.

The fell to a new two-year low of 6.9543 per dollar, as worries linger over COVID-19 lockdown measures in China.

China’s southern tech hub of Shenzhen said it would adopt tiered anti-virus restriction measures beginning on Monday, while Chengdu announced an extension of lockdown curbs, as the country grapples with fresh outbreaks.

European Gas Prices Leap at Open After Russia Shuts Nord Stream Pipeline

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Commodities 10 hours ago (Sep 05, 2022 03:52AM ET)

European Gas Prices Leap at Open After Russia Shuts Nord Stream Pipeline© Reuters.

By Geoffrey Smith

Investing.com — European natural gas futures leaped at the opening on Monday, after Russian gas monopoly Gazprom (MCX:) shut down the Nord Stream pipeline to Germany, raising fears of a total shutdown of Russian supplies over the winter.

The front-month contract, which serves as a benchmark for northwest Europe, leaped as much as 31% before retracing a little to trade at 263 euros a megawatt-hour by 03:25 ET (07:25 GMT). That’s a gain of 22.5% from Friday’s close.

Gazprom’s action was the second in a major escalation in the economic struggle sparked by Russia’s invasion of Ukraine on Friday. The company had released its news immediately after the close of trading in natural gas in Europe, and only a matter of hours after G-7 finance ministers had agreed on a long-mooted plan to impose a price cap on Russian oil exports, aiming to choke the supply of money to President Vladimir Putin’s government.

Nord Stream had been shipping around 30 million cubic meters of gas a day before the stoppage – around 20% of its official capacity. The loss of that supply makes it harder for European utilities to continue the good progress they had made on filling their storage facilities ahead of the winter heating season.

“While storage levels across the Euro area have grown rapidly in recent weeks due to surging imports of (liquefied natural gas), the prospect for rationing and further initiatives to curb demand for gas and power prices will be the focus this week,” said strategists at Saxo Bank in a morning note. “Demand destruction from soaring prices has already lowered demand, but more is needed, especially if the winter turns out to be a cold one.

The sense of crisis in Europe’s energy sector deepened over the weekend after Friday’s events, with Germany imposing a windfall tax on electricity generators to fund a 65 billion euro relief package for customers facing unaffordable rises in their bills, while Finland and Sweden also announced emergency packages to stop energy companies collapsing as the price of supplies skyrocketed.

Electricity prices have soared largely because of the key input of gas prices, given that much of the marginal capacity in Europe – where output can be raised and lowered easily to match the natural fluctuation of demand – is powered by gas. EU energy ministers are set to meet on Friday to discuss – among other things – plans that would decouple power prices from those for gas.

The shutting of Nord Stream means that the euro zone, “and Germany in particular,” is heading for higher inflation and a worse recession than either the European Central Bank or private economists expect, said Holger Schmieding, chief economist at Berenberg Bank in Berlin, in a note to clients.

Such pessimism was reflected in all European assets at the open on Monday, with the falling to a new 20-year low of $0.9877 before recovering slightly to be down 0.4% at $0.9911 by 03:25 ET. The fell 1.6% and the German index, with its heavy weighting of industrials exposed to soaring energy prices, fell 3.0%.

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European Stocks Slump on Renewed Energy Supply Worries

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Stock Markets 3 hours ago (Sep 05, 2022 03:53AM ET)

European Stocks Slump on Renewed Energy Supply Worries© Reuters.

By Peter Nurse

Investing.com – European stock markets slumped Monday, as investors fretted over the economic risks facing the region, including potential energy shortages as Russia halts the supply of gas.

By 03:55 ET (07:55 GMT), the in Germany traded 3.3% lower, the in France fell 2.4%, and U.K.’s dropped 1.1%.

Russia announced late Friday that one of its main supply pipelines to Europe would remain shut indefinitely, scrapping a Saturday deadline for gas flows down the pipeline to resume.

This announcement came shortly after G-7 finance ministers had agreed on a plan to impose a price cap on Russian oil exports, aiming to limit the funds President Vladimir Putin’s government will receive as Russia’s invasion of Ukraine continues.

The Nord Stream pipeline was already running at just 20% of capacity before flows were halted last week for maintenance. This move pushed up already , and will spark further fears of energy rationing in Europe as winter approaches.

The soaring energy prices can only add to inflation, which is already at in the Eurozone and fast approaching double digits.

This is putting pressure on the to act, and the policymakers are set to respond on Thursday with a second, large interest-rate hike, tightening before economic conditions deteriorate further.

That said, economic data showed that economic activity in the Eurozone contracted further in August, with the S&P Global falling to 48.9 from 49.9 the previous month.

in the region could grow 0.4% on the month in July, but this only represents a small rebound from the 1.2% fall the previous month. The release is expected to fall 0.7% in July.

Elsewhere, Foreign Minister is widely expected to be named the new U.K. prime minister later Monday, and she will have her hands full immediately with the county facing a cost of living crisis, industrial unrest, and a prolonged recession.

In corporate news, Countryside Properties (LON:) stock soared over 5% after the Wall Street Journal reported it was set to merge with fellow U.K. home builder Vistry (LON:), down 1.3%, to form a $3.2 billion residential developer.

Oil prices jumped higher Monday ahead of a meeting of top producers, with traders reacting to the possibility of a cut in output to support the market.

The Organization of the Petroleum Exporting Countries and allies, a group known as OPEC+, meets later Monday, and is largely expected to keep current output levels despite supplies remaining tight.

However, Saudi Arabia, the de facto leader of the group, recently floated the idea of cutting production levels to support prices, and this potential is supporting the market.

Oil prices have fallen in the past three months, after touching multi-year highs in March, on concerns that interest rate hikes and COVID-19 curbs in parts of China, the world’s top crude importer, may slow global economic growth and cool oil demand.

By 03:55 ET, futures traded 2.4% higher at $88.94 a barrel, while the contract rose 2.4% to $95.26.

Additionally, fell 0.1% to $1,721.65/oz, while traded 0.4% lower at 0.9912.

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Europe Energy, OPEC+ Meeting, Truss Triumph – What’s Moving Markets

Europe Energy, OPEC+ Meeting, Truss Triumph - What's Moving Markets© Reuters.

By Geoffrey Smith 

Investing.com — Moscow’s gas shut-off heightens the energy emergency in Europe, driving the euro to a new 20-year low. OPEC meets with Russia to discuss output strategy for October. The U.K. is set to get a new Prime Minister. Volkswagen is set to approve an IPO for Porsche, unlocking value to fund its electrification ambitions, and Bed Bath & Beyond is struck by a human tragedy. Here’s what you need to know in financial markets while the U.S. celebrates Labor Day on Monday, 5th September.

1. Gas shut-off deepens Europe’s energy crisis; Euro hits new low

Europe’s after Russia to Germany late on Friday, raising fears that the continent will have to do without from its biggest supplier this winter. Russia attributed the shutdown to technical problems that required maintenance.

The developments make a deeper recession and a higher peak in likely, with natural gas and electricity prices surging again and the falling to a new 20-year low against the dollar. 

Over the weekend, Germany announced a new windfall tax on electricity producers to help fund a 65 billion euro ($64 billion) relief package for households and businesses. Sweden and Finland also offered emergency liquidity backstops to energy suppliers to ensure that the key Nordic power market continued to work. 

2. OPEC+ to meet as G-7 moves to cap price of Russian exports

Russia’s move on Friday came as a response to the G-7’s decision to impose a on Russian oil exports, a move that aims to reduce the cash flowing to Vladimir Putin’s government, but one that comes with severe implementation difficulties.

Russia’s energy minister will meet with his counterparts at the Organization of Petroleum Exporting Countries later, amid suggestions that the bloc will cut its output by as much as 100,000 barrels a day in October, reversing the token increase it agreed a month earlier.

What practical impact that would have when OPEC+ countries are already producing almost 3 million barrels a day below their agreed quotas is unclear.

futures rose 2.7% to $89.25 a barrel, while rose 2.9% to $95.73 a barrel.

3. European stocks tumble on gas news; VW to approve Porsche IPO

U.S. stocks are closed for the Labor Day holiday, but Europe’s are a hot mess in the wake of the news out of Russia on Friday.

By 06:20 ET, the benchmark was down 1.1% but the in Germany and in Italy, the indices for the two economies most exposed to Russian gas shortfalls, were both down over 2%, paring losses after having initially fallen over 3%.

Stocks likely to stay in focus later include Volkswagen (ETR:), whose board is set to approve the IPO of preference shares in Porsche, hoping to raise funds to finance an enormous investment budget for the electric transition over the coming years. It’s also set to approve the sale of a 25% block of voting shares in the sports car maker to Porsche Automobil Holding, the company through which the Piech and Porsche families control the VW group.

4. Truss set to be named new U.K. Conservative leader

Liz Truss is when the Conservative Party announces the results of its leadership election at 08:30 ET. Truss appears to have the overwhelming backing of the party membership, after focusing her campaign on the need for tax cuts, while also promising big increases in spending on defense.

Truss has promised to decide on a package of measures, relieving the pain of the energy crisis within a week of being confirmed in office.

The developments should end a damaging period of uncertainty that has undermined both the pound and the U.K. government bond market in recent weeks. However, many other questions, such as Truss’s intentions with regard to the Bank of England’s independence and her attitude to EU relations (where her team is reportedly planning to rip up the U.K.’s Brexit deal) remain unanswered.

5. Bed Bath & Beyond CFO commits suicide

Bed Bath & Beyond’s (NASDAQ:) chief financial officer Gustavo Arnal at the weekend, two days after the company announced a plan to close around a fifth of its stores and slash thousands of jobs.

His death leaves BBBY without either a CFO or a permanent CEO as it struggles to finalize its accounts for the quarter ending August 27th.

Arnal had been named as defendant alongside Chewy (NYSE:) founder and GameStop (NYSE:) chairman Ryan Cohen in a shareholder lawsuit that is seeking class-action status. The suit alleges the pair sought to inflate BBBY’s stock price before Cohen dumped his stock in the market last month, to the dismay of retail investors who had expected Cohen to lead a turnaround at the struggling retailer.

Bed Bath & Beyond, along with other meme stocks, has become a byword for the gamification of financial markets over the last couple of years.

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