The International Energy Agency’s (IEA) executive director, Fatih Birol, has said that 90% of gas storage was full in Europe, and that bar surprises, Europe can get through the winter. 2023, however, remains in question because 2022 still saw some Russian gas being imported, as well as lower demand from China due to “sluggish economic performance”. Next year, however, will be a different story should and when the Chinese economy rebounds. With Russia being the largest supplier of oil and natural gas to the Eurozone, sanctions have taken a huge toll on energy prices in the EU. The IEA reports also noted the risk of a “complete shutdown” of energy supplies from Russia, a scenario that would take a huge toll during 2023’s winter in the EU.
Musk Revives Twitter Deal
After months of drama, Elon Musk is looking to revive his original deal to purchase Twitter for US$44 billion, or at $54.20 per share. This comes as Twitter’s lawsuit – with a trial on 17 October – against Musk for reneging on his original offer looms, with Musk looking to avoid trial. Musk has said that banks are now working together to finance the deal, which is expected to close near 28 October. Musk has said that “Twitter won’t take yes for an answer”, while the company has written a filing for Delaware Chancery Court, saying it was opposed to suspending litigation, calling such a move “an invitation to further mischief and delay.” TWTR is up around 22%, while Tesla has dipped 10% lower in the past 5 days.
The Credit Fears at Credit Suisse
Credit Suisse is in crisis mode, offering to buy back 3 billion Swiss francs (US$3.03 billion) of debt securities as its share prices continue dropping, while bets against its debt rise. Credit Suisse’s shares are down 50% year-to-date, while its credit default swap rate has soared to almost 6%. The bank is also selling its renowned Savoy Hotel in Zurich in an urgent bid for liquidity. Reports say that the building could be worth around US$408 million. Credit Suisse lost more than $5 billion from the collapse of investment firm Archegos.