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FirstFT: Germany reopens coal plants to avert gas shortage as Russia cuts supply

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Good Morning.

The German government said yesterday that it would pass Emergency laws for opening coal mines with mothballs For power generation and gas supply for auction to industry to incentivize businesses to curb consumption.

The move illustrated the depth of concern in Berlin about a possible shortage of gas in the winter months, as Russian cuts in gas exports threaten a shortage in Europe’s major economy.

“It’s bitter but in this situation it is essential to lower the use of gas,” said German Economy Minister Robert Habeck, a member of the Green Party. The plan is in conflict with Germany’s climate policy, which aims to stop coal by 2030 because it is much more carbon-rich than gas.

Russia cut capacity in Germany’s main gas export pipeline last week by 60%, sending ripples across the continent as Western sources became convinced that Moscow was kissing its gas exports in response to EU sanctions following the full-scale invasion of Ukraine.

Italy, which has also seen a drop in gas supplies from Russia, is expected to declare emergency measures in the coming days if supplies do not return.

Dust said Berlin is working on a new law for the temporary return of up to 10 gigawatts of idle coal-fired power plants for up to two years; This would increase Germany’s dependence on coal for electricity production by up to a third.

“The situation is dire,” Dust said. “It is, of course, Putin’s strategy to upset us, raise prices and divide us… We will not allow that to happen.”

Thank you for reading FirstFT Asia, and we hope you have a great week. Here’s the rest of today’s news. Sofia

1. U.S. lawmakers are pushing for more money to deal with China in the Indo-Pacific The U.S. House of Representatives will introduce the “Indo-Pacific Involvement Act” to spur the White House Transfer more money to the Indo-Pacific region. Legislators seek to reduce the gap between rhetoric that Asia is a priority area and funding levels.

2. The crypto industry strained to fall after the weekend collapse Bitcoin fell to $ 17,628 on Saturday before recovering. It contributed to The growing credit crunch in the digital assets industry Which threatens to swallow many of its key players.

3. The EU and India will resume trade talks after a decade-long gap In an effort to Woo New Delhi away from its historical ties with Russia, The EU will start talks with India in late June on trade agreements, investment protection and other specific regional products. The intended timeline is that the deal will be signed by the end of 2023.

4. The largest discount store in Japan Daiso is besieged by the Yen ring Seiji Yano, president of Daiso Industries, vows to protect the chain’s price tag of 100 yen ($ 0.75) per item though Existential threat to business from global inflation And Hin dives. In his first media interview, he said the store is testing its product mix to ensure its survival.

  • Go deeper: The Bank of Japan has maintained its principal interest rate Minus 0.1 percent Last week, and put it at odds with other central banks that raised interest rates to curb inflation.

5. China launches new aircraft carrier China has Launched its most advanced aircraft carrier to date While Beijing is racing to catch up with U.S. military capabilities and realize its threats to retake Taiwan by force if necessary. The ship, named Fujian after the coastal province off Taiwan, has been under construction at Shanghai’s Jianganan shipyard since 2018.

The day ahead

World Air Transport Summit The International Air Transport Association continues today at the summit in Doha, Qatar, and will publish IATA’s annual report.

June 10 The United States is today holding a federal holiday to mark the end of the legal bondage of black Americans.

Economic Data Germany today publishes the May Manufacturer’s Price Index (PPI) data, and the UK publishes the trade data, Rightmove’s monthly house price index plus the National Statistics Office’s data on home equity.

India Australian Defense Secretary Richard Marles is visiting India, continuing the focus of the new prime minister, Anthony Albanis, on tightening relations with the subcontinent as a counter to China.

What else are we reading

Chinese tourists are struggling to clear Cubid’s travel obstacles As the rest of the country remains cautious, Beijing and Shanghai residents have come out of austerity. Tourists are beginning to hesitate to tour the country Encounter a series of local quarantine regulations Which in some cases require a seven-day quarantine before travelers can begin their vacation.

  • Related: Chinese consumers are expected Spend $ 5.2 billion on camping Equipment of the year, when urban travelers travel in nature for escapist adventures.

Why pay raises for your company ‘flight risks’ can be harmful The bosses do their best to throw money and promotion at resigning to persuade them to stay, but the big resignation Complicated this practice of counter-proposal.

Ransomware gangs focus on Japan as a feeding ground The US and Europe have long been the main targets of ransomware attackers. But now one of Japan’s most powerful natural defenses – its language – is rapidly evaporating with the help of Artificial intelligence translation software that helps criminals In creating traps that seem more reasonable and legitimate.

© Maria Hargota

How to escape the great stagnation of innovation With rising inflation and research productivity declining, ideas became more expensive to find. Additional spending on R&D will not solve the fertility problem – the urgent issue is to improve the scientific process. The answer may lie Accelerate remote collaboration.

Men must progress at home to increase birth rates When we talk about how to deal with the decline in birth rates, the conversation usually focuses on young women. But a more productive policy target may actually be men. Since a career in front of a family is no longer such a compromise for women, “achieving everything” is only possible with increased father care, Writes John Bern-Murdoch.

travel

The plague accelerated the trend towards mini-campers. While smaller caravans lose in kitchens and toilets, they are easier to drive, park and maneuver – open up A whole new world of adventure.

Mercedes Benz Matris, parked in front of a tree background, with open doors and a pop-up expandable roof

© Lyndon French | Patti Waldmeier with a Mercedes Benz from Matris

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