Ambrose Evans Pritchard

Putin has another gas shock in store for us: the deindustrialization of Europe

Putin has another gas shock in store for us: the deindustrialization of Europe

“Putin knows exactly what he is doing. It targets electrical substations and step-up transformers that are difficult to replace,” said Professor Alan Riley, energy expert at the Atlantic Council and adviser for Ukraine. “He has a full view of every target because he has detailed plans dating back to the Soviet Union. This is an …

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A wave of Chinese deflation will soon arrive, heralding interest rate spikes

A wave of Chinese deflation will soon arrive, heralding interest rate spikes

The path of least resistance is to export Chinese unemployment to the rest of the world with a beggar-thy-neighbour trade strategy, boosting exports through a stealth devaluation of the renminbi or covert (additional) subsidies. China’s tightly controlled basket of currencies (CFETS) has already fallen 7% since March. “It is clear that the authorities are allowing …

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Europe's next debt crisis has only just begun - dividing North and South

Europe’s next debt crisis has only just begun – dividing North and South

The ECB faces an excruciating dilemma. Eurozone inflation jumped to 10.7% in October and has yet to peak. The mixture of misery and stagflation is no worse than in the UK – and no better either – but the political implications are profoundly different within the structure of the euro. German inflation hit 11.4% as …

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Britain's frackers were treated horribly, but their time has come and gone

Britain’s frackers were treated horribly, but their time has come and gone

Yes, the price in Europe may remain high for another three years, but planning bureaucracy and impact statements ensure that nothing beyond a trickle will hit gas lines until 2030. The IEA has massively revised its figures since its World Outlook a year ago. One reason is the passage of Joe Biden’s $560billion (£483billion) green …

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the markets assess a lower risk of bankruptcy for the United Kingdom than for France

the markets assess a lower risk of bankruptcy for the United Kingdom than for France

The UK’s bankruptcy risk has fallen below that of France as Rishi Sunak restores the government’s financial credibility and markets drastically revalue that country’s political risk premium. Credit default swaps measuring the likelihood of sovereign default in five years have fallen to 33.92 and are now lower than they were during the pandemic, suggesting investors …

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Jeremy Hunt saved the day, but he must not go overboard with austerity

Jeremy Hunt saved the day, but he must not go overboard with austerity

Fiscal order was restored at breakneck speed. Jeremy Hunt did exactly what you need to do in quick crises of this nature. Dribbling half measures was never going to work. You need to overflow the markets with shock and awe moves that completely change the conversation. The reward was instantaneous. The pound has returned to …

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