The Nord Stream 1 pipeline, which transports gas from Russia to Europe, has finished the maintenance work which meant that the pipeline was out of service. It was uncertain for a long time whether gas shipping would be restored at all after the maintenance work.
Now, however, Putin has stated that sanctions have led to certain parts being needed being delayed, and that the line will therefore operate at 20 percent capacity – the same as before the maintenance process.
Berg further writes that yesterday the EU proposed to cut the consumption of Russian gas by 15 percent in response to the uncertain gas flow. The crisis plan was announced yesterday, and the duration will be 8 months. The proposal must be approved by all member states of the EU, and whether the plan is approved may be known as early as next week.
High inflation and fewer home sales
Furthermore, the high inflation in the world is discussed. In the UK, inflation rose to 9.4 per cent in June, which was slightly above consensus estimates. It is expected that the British central bank will raise the key interest rate by 50 basis points in August.
Figures for second-hand home sales in the US in June showed a fall of 5.4 per cent, which was well above the consensus estimate of 1.1 per cent. Second-hand property sales are now at their lowest level in two years. Berg believes that with expectations of interest rate hikes from the FED, the weak development may last for a while longer.
–
