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The World
Russia’s gas supplies to Europe via the Nord Stream 1 pipeline will not resume in full until the “collective west” lifts sanctions against Moscow over its invasion of Ukraine, the Kremlin has said. Dmitry Peskov, President Vladimir Putin’s spokesman, blamed EU, UK and Canadian sanctions for Russia’s failure to deliver gas through the key pipeline, which pumps gas to Germany from St Petersburg via the Baltic Sea. (Financial Times)
Brussels has outlined plans for caps on wholesale gas prices to tackle a widening energy crisis and curb inflation as the Kremlin seeks to ramp up pressure on western Europe. In a document seen by the Financial Times on Monday, the European Commission’s energy agency recommends member states implement “emergency wholesale price cap” measures on gas supplies and sets out two options for doing so. One involves putting a limit on what can be paid for gas imported from Russia. A second would introduce a capping system that would differ from country to country depending on their energy mix. (Financial Times)
India says it will look carefully at Russian oil price cap, rejects moral duty to boycott Moscow. (CNBC)
Opec+ agreed to cut crude supply in a bid to prop up oil prices, defying calls from western governments battling to curb inflation in the face of a mounting global energy crisis. The producer group will cut 100,000 barrels a day from supply from October, reversing an earlier increase of the same amount agreed last month following a visit to Jeddah by US president Joe Biden. While traders said the amounts were relatively tiny in the global oil market, where demand is about 100mn b/d, the signal to Washington and the energy sector was more powerful: Opec and its allies, including Russia, will move to defend oil prices. (Financial Times)
Macron Backs EU-Wide Windfall Tax on Energy Company Profits. (Bloomberg)
Macron calls for 10% reduction in energy usage across France. (Axios)
Truss plans energy bill freeze amid fear of mass bankruptcies: Liz Truss is expected to freeze energy bills for every household and business in the country in one of her first acts as prime minister. Truss, who will be appointed by the Queen today, is ready to cap the cost of gas used for electricity and heating. This would effectively commit the taxpayer to paying Britain’s energy bills beyond a certain level to stop widespread hardship and bankruptcies. Pubs and restaurants have said they face financial ruin because they have no protection from soaring energy prices. Some businesses face a seven-fold increase. (The Times)
UK-China relations unlikely to improve under new PM Liz Truss. Despite leadership change, analysts expect Britain to follow the hardline US lead on China policy. (South China Morning Post)
China’s president Xi Jinping will travel to Kazakhstan and Uzbekistan this month, according to announcements by the two central Asian governments, setting the stage for a meeting with Russia’s president Vladimir Putin. (Financial Times)
Thailand, Vietnam, Myanmar deepen Russia ties to blunt economic woes: From wooing more Russian tourists to boosting trade, Southeast Asian nations are bolstering economic ties with Russia in hopes of curbing inflation and spurring their recovery from the COVID-19 pandemic. (Nikkei Asia Review)
One of the West's worst-ever September heat waves is bringing a prolonged period of record-shattering temperatures to at least a half-dozen states this week. In California, monthly and all-time temperature records will be threatened starting today and lasting into the coming weekend. The heat is threatening the electricity grid, with officials warning of potential outages, particularly Monday and Tuesday. As of Monday morning, about 46 million people in six states were under excessive heat warnings or advisories. It is likely that in many of these locations, the warnings will be extended through the end of the week. (Axios)
Economy
Pound slumps to 37-year low against surging dollar: The pound has slumped to a near 40-year low against the dollar, pushing the currency below pandemic levels to $1.144 as markets take fright at the UK’s economic prospects and energy crisis. (The Times)
Deutsche Bank says risk of a ‘sterling crisis’ is rising as Truss becomes UK prime minister. “With the current account deficit already at record levels, sterling requires large capital inflows supported by improving investor confidence and falling inflation expectations. However, the opposite is happening,” Deutsche Bank said in a note. (CNBC)
Turkish inflation tops 80% for first time in 24 years: Ankara insists price pressures will ease soon but economists warn rate could remain uncomfortably high. (Financial Times)
Ernst & Young Leaders Expected to Approve Plan to Split Company: The expected move would pave the way for the biggest shake-up in the accounting profession in more than 20 years. (Wall Street Journal)
KPMG sued for $830mn over ‘appalling’ Chinese audit: Liquidator of China Medical says Big Four firm failed to ask ‘obvious’ questions. (Financial Times)
Now Is the Most Rewarding Time to Switch Jobs in Years: Pay raises for job hoppers are the biggest they’ve been in more than two decades, a sign of workers’ power despite hints of a cooling job market. (Wall Street Journal)
Technology
Leaked Apple Watch Pro renders show a larger display, a protrusion for the digital crown and a side button on the right side, and an extra button on the left. (91 Mobiles)
California declared a power grid emergency as a blistering and sustained heat wave threatens to push the state’s electricity system beyond its limit. With millions of homes and businesses cranking air conditioners to cope with temperatures above 110 degrees Fahrenheit (43.3 Celsius), electricity use in the largest US state is forecast to hit the highest level since 2017, raising the specter of blackouts. (Bloomberg)
Apple’s Priciest iPhones Take Center Stage as Industry Smartphone Sales Decline: Pro models are poised to get some of the most notable upgrades in a cycle that is expected to be more evolutionary than revolutionary for the iPhone. (Wall Street Journal)
Irish regulator fines Instagram €405mn for failing to protect children’s data: Ruling by Data Protection Commission relates to complaints that account settings defaulted to public. (Financial Times)
TikTok is upending the music industry and Spotify may be next: Artists have soared to the top of the charts because of trends on TikTok, muddling the music industry’s business model. TikTok hasn’t fully capitalized on the phenomenon, but its parent company filed a trademark application that suggests something may be in the works. (CNBC)
Smart Links
Gasoline prices are expected to continue to fall after Labor Day and some states could see below $3. (CNBC)
The Science Behind Who Airlines Bump From Overbooked Flights—and How to Exploit It. (Wall Street Journal)
Amazon eyes Japan's online prescription drug market. (Nikkei Asia Review)
Why electric cars are still a luxury in a cold climate. (Financial Times)
The Perfect Professional Headshot Is Worth $1,000, and Maybe Even a Job. (Wall Street Journal)
U.S. Life Expectancy Hits Lowest Point Since 1996. (Statista)