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Another bank is entering troubled territory amid the recent banking crisis that has spilled into global markets—this time in Germany.Deutsche Bank is facing fears of a collapse after shares dropped 11 percent on Friday morning, bringing those stocks down to a total of 29 percent since the bank chaos began on March 8. "We are still on edge waiting for another domino to fall, and Deutsche is clearly the next one on everyone's minds (fairly or unfairly)," Chris Beauchamp, chief market analyst at IG Group, told Reuters. "Looks like the banking crisis hasn't been entirely put to bed." Friday's stock market news is the latest development related to the fallout from the failure of Silicon Valley Bank (SVB) earlier this month, and the second involving a European bank. This week, Swiss bank Credit Suisse was rescued by rival UBS in a last-minute deal after Credit Suisse saw a plunge in share prices following the SVB collapse. Deutsche Bank's latest slump, driven partly by the Credit Suisse deal, signals that confidence in the banking system remains low. It marks the third week of decline for European banks, which fell 4.2 percent in the wake of the financial turmoil.
While many are worried it could be the next bank to collapse, other analysts have remained optimistic that it won't fall to the same fate as Credit Suisse. "We have no concerns about Deutsche's viability or asset marks. To be crystal clear - Deutsche is NOT the next Credit Suisse," research firm Autonomous said in a Friday report. German Chancellor Olaf Scholz has also dismissed the panic, saying that Deutsche Bank had "thoroughly reorganized and modernized its business model and is a very profitable bank," during a Friday news conference. In a Friday memo, JPMorgan strategists said that Deutsche Bank "had its own share of headline pressure and governance fumbles," but that it "still commands a relatively elevated cost base and has relied on its FICC (fixed income, currencies and commodities) trading franchise for organic capital generation and credit re-rating."
"Indeed, if there is anything depositors might learn from the past few weeks, both in the U.S. and Europe, it is just how far regulators will always go to ensure depositors are protected," JP Morgan wrote. Just a day earlier, Treasury Secretary Janet Yellen said the U.S. government was "certainly" prepared to take additional actions to stabilize banks—a shift in tone from her statements the day before, in which she said no such moves were being considered. In a large-scale raid, German police targeted dozens of individuals from the far-right Reichsbürger scene who were suspected of planning a coup. What kind of movement is this — and what threat does it pose to democracy?
A group of "Reichsbürger" allegedly spent months preparing for a "Day X," on which they wanted to overthrow the government. In a large-scale raid on Wednesday morning, several suspects were arrested, including ex-soldiers and a former member of the Bundestag. Since November 2021, they had been holding secret meetings and engaged in shooting exercises in preparation for a coup, according to the attorney general. In their plans, the suspects did not shy away from the use of military force or homicide. "The sheer number of arrests and searches has shocked me," sociologist Timo Reinfrank, executive director of the Amadeu Antonio Foundation. The foundation is one of Germany's leading NGOs working against right-wing extremism, racism, and antisemitism. "A real coup d'état can hardly succeed in Germany, as the state order and the constitution are too solid for that, but these people believe it is possible. That shows how caught up they are in their delusion." But attacks like the one on the Capitol in Washington, D.C., on January 6, 2021, would also be possible in Germany, Reinfrank fears. What does the movement believe? Reichsbürger reject the German legal system and the country's parliamentarism, and most of them propagate the re-establishment of the German empire founded in 1871. They also believe that the victorious Western Allies of World War II, who defeated Nazi Germany, still secretly rule the country. In recent years, the growing number of Reichsbürger has alarmed German security authorities. In its June 2022 report, the domestic intelligence service estimated that around 21,000 people belong to this scene — and their number is rising. The high potential for violence among the self-proclaimed Reichsbürger was described as particularly worrying: "Around 500 of these people still have at least one weapons permit," the intelligence report read. The Reichsbürger are not a homogeneous group, according to a 2018 study by the Amadeu Antonio Foundation. Instead, the term refers to a "large, very diverse milieu of ideologists" who vary in their propensity for violence and militancy, but all are united by the belief that the Federal Republic of Germany is not a sovereign state. They reject the constitution and all state institutions. Around 1,150 of the Reichsbürger — or just over 5% — were classified as right-wing extremists in 2021. But many others also use elements of right-wing extremist ideology or believe in antisemitic conspiracy myths. The idea that Germany's borders should be extended to include territories in Eastern Europe, which were occupied under Nazi rule that ended in 1945, is also found in its milieu. How dangerous are the Reichsbürger? In recent years, a number of serious crimes have been attributed to Reichsbürger. Several have stood trial for murder or attempted murder. The crimes registered by the domestic intelligence service rose sharply between 2020 and 2021. Reinfrank said that militancy is already rooted in the Reichsbürgers' ideology. "Because Reichsbürger do not recognize the constitution and the legitimacy of the security authorities, their ideology legitimizes them to act with violence." "These are not people who commit random attacks. They want to specifically attack the basic state order, like elected local politicians," Reinfrank explained. The past three years of protests against the COVID-19 restrictions led to radicalization and an increase in the number of supporters of Reichsbürger ideology. For example, at a demonstration by the group "Freie Geister" (free spirits), protesters held a banner that read: "Sovereignty. For the freedom of our country." "The scene has become radicalized. People are becoming more receptive to the core idea of the Reichsbürger, that Germany is not free and the elected government is not sovereign," Reinfrank said. German forward Thomas Muller has described his team’s exit from the FIFA World Cup in Qatar as an “absolute catastrophe,” after the four-time winners endured a second successive departure at the group stage of the tournament. Germany beat Costa Rica in a thrilling game at Al Bayt Stadium on Thursday night, but it wasn’t enough for Hansi Flick’s men to progress to the knockout stages as they finished third in the Group E standings, behind Spain on goal difference. Japan topped the group after their stunning comeback win against the Spaniards at Khalifa International Stadium, meaning they have overcome two European giants in Qatar following their shock opening game win over Germany. Germany suffered the ignominy of another early exit after enduring the same fate at the Russia 2018 World Cup. Since lifting the title in Brazil in 2014, Germany have won just two of their subsequent six World Cup games. They have also failed to keep a clean sheet in their last 12 matches at major tournaments.German forward Thomas Muller has described his team’s exit from the FIFA World Cup in Qatar as an “absolute catastrophe,” after the four-time winners endured a second successive departure at the group stage of the tournament.
Germany suffered the ignominy of another early exit after enduring the same fate at the Russia 2018 World Cup. Since lifting the title in Brazil in 2014, Germany have won just two of their subsequent six World Cup games. They have also failed to keep a clean sheet in their last 12 matches at major tournaments.Muller, a long-time feature of the German team and integral to their success in 2014, could not hide is frustration at the performance in Qatar.
“It’s an absolute catastrophe. It is unbelievably bitter for us because our result would have been enough [if Japan hadn’t beaten Spain]. It’s a feeling of powerlessness,” said Muller, as quoted by ESPN. The 33-year-old, who has won 121 caps for Die Mannschaft and scored 44 times, hinted that the game against Costa Rica could be his last for his country. “If that was my last game for Germany, it has been a tremendous pleasure, thank you very much,” said the versatile Bayern Munich forward. Germany’s exit came in controversial circumstances as Japan’s winning goal against Spain was allowed despite intense debate over whether the ball had gone out of play in the build-up. Aerial angles appeared to show that it had been kept in by Kaoru Mitoma by mere millimeters. Despite Spain’s unexpected defeat condemning his team to an early exit, Germany manager Flick did not look for excuses – not least after the Germans suffered their own defeat to Japan in their opening game in Qatar before drawing with Spain. “I don’t care about different teams, it’s all up to us,” Flick said. “If you look at the games and number of goals that were our fault, I am convinced that we gave away our chances against Spain and Japan. “I am not looking for excuses. We fulfilled our duty today, we got the win, but the scoreline could have been better.” Soccer teams representing seven European nations at the World Cup have announced their captains will no longer wear the OneLove armband in Qatar after FIFA, which organizes the tournament, said players sporting the bands would be sanctioned. The captains of England, Wales, Belgium, Denmark, Germany, the Netherlands and Switzerland, had originally intended to wear the rainbow armband to promote diversity and inclusion at the World Cup.
“We were prepared to pay fines that would normally apply to breaches of kit regulations and had a strong commitment to wearing the armband. However, we cannot put our players in the situation where they might be booked or even forced to leave the field of play,” the soccer associations said in a joint statement. Three of the teams, England, Wales and the Netherlands, were due to play Monday. “We are very frustrated by the FIFA decision which we believe is unprecedented,” the teams added, vowing to show their support for “inclusion” in other ways. “As national federations, we can’t put our players in a position where they could face sporting sanctions including bookings.” Qatar has come under scrutiny in the lead-up to the tournament over its approach to human rights, including concerns over the conditions of migrant workers and the conservative Persian Gulf state’s stance on LGBT people. Sex between men is prohibited in Qatar and punishable by up to seven years in prison, according to a recent U.S. State Department report. Audi has reached a milestone on the road to the FIA Formula 1 World Championship, selecting Sauber as a strategic partner for the project and planning to acquire a stake in the Sauber Group. The partnership will see the traditional Swiss racing team competing as the Audi factory team from 2026 onwards, using the power unit developed by Audi for the pinnacle of motorsport. Following the announcement of its Formula 1 entry at the end of August, Audi’s confirmation of its strategic partner marks the next milestone in the company’s entry into the premier class of motorsport. While Audi will create the power unit at the Audi Motorsport Competence Center in Neuburg an der Donau, Sauber will develop and manufacture the race car at its site in Hinwil (Switzerland). Sauber will also be responsible for planning and executing the race operations. With around 30 years of competitive experience, Sauber is one of the most renowned and traditional teams in Formula 1.
“We are delighted to have gained such an experienced and competent partner for our ambitious Formula 1 project,” says Oliver Hoffmann, Member of the Board for Technical Development at AUDI AG. “We already know the Sauber Group with its state-of-the-art facility and experienced team from previous collaborations and are convinced that together we will form a strong team.” For example, Audi Sport has already regularly used the Sauber Group’s high-tech wind tunnel in Hinwil, just under four hours away by car, during the successful Le Mans era and the development of Class 1 touring car for the DTM. “Audi is the best partner for the Sauber Group,” says Finn Rausing, Chairman of Sauber Holding. “It is clear that both companies share the same values and vision. We are looking forward to achieving our common goals with a strong and successful partnership.” Development of the power unit, which consists of an electric motor, battery, control systems and a combustion engine, is already in full swing at the facility of the specially founded Audi Formula Racing GmbH in Neuburg an der Donau. More than 120 employees are already working on the project. “Sauber is a first-class partner for the use of the Audi Power Unit,” says Adam Baker, managing director of the company. “We are looking forward to working with an experienced team that has helped shape many eras of Formula 1 history. Together, we want to write the next chapter starting in 2026.”
Sweden's Maritime Authority issued a warning about two leaks in the Nord Stream 1 pipeline, the day after a leak on the nearby Nord Stream 2 pipeline was discovered that prompted Denmark to restrict shipping and impose a small no fly zone. Denmark's armed forces released a video showing bubbles boiling up to the surface of the sea. The largest gas leak had caused a surface disturbance of well over 1 km (0.6 mile) in diameter, the armed forces said. "Today we faced an act of sabotage, we don't know all the details of what happened, but we see clearly that it's an act of sabotage, related to the next step of escalation of the situation in Ukraine," Polish Prime Minister Mateusz Morawiecki said at the opening of a new pipeline between Norway and Poland.
Berlin has formed the opinion that a loss of pressure in three natural gas pipelines between Russia and Germany on Monday was not a coincidence, but a “targeted attack” from either Ukraine or Russia, the Tagesspiegel newspaper has reported. Pressure in one of the Nord Stream 2 lines dropped sharply overnight, followed by both of Nord Stream 1's on Monday afternoon. Denmark announced that a gas leak was spotted off the coast of Bornholm Island in the Baltic Sea and closed the area for maritime traffic, but could not confirm if this was what caused the situation. According to TagesSpiegel, the German government and agencies investigating the incident “can’t imagine a scenario that isn't a targeted attack,” according to an anonymous source familiar with their assessments. “Everything speaks against a coincidence.” The outlet explained that a deliberate attack on the bottom of the sea has to involve special forces, navy divers or a submarine. Berlin is reportedly examining two possible scenarios. In the first, Ukraine or “Ukraine-affiliated forces” could be behind the attack. The second option is that Russia did it as a “false flag,” to make Ukraine look bad and drive EU energy prices even higher. With Nord Stream offline since late August, Russian gas can only be delivered to Germany and central Europe via the older pipelines going through Poland and Ukraine, Tagesspiegel noted. Siemens Gamesa’s first recyclable blades are spinning on a wind turbine at the Kaskasi offshore wind farm in Germany. For many years it was possible to recycle these blades. The only solution was to use these blades in landfills. For Siemens it’s the first commercial installation of recyclable wind turbine technology. The S panish-German wind engineering giant calls its recyclable blade technology RecyclableBlade. Wind turbine blades are made of a number of materials embedded in resin. Siemens Gamesa explains: Separating the resin, fiberglass, and wood, among others, is achieved through using a mild acid solution. The materials can then go into the circular economy, creating new products like suitcases or flat-screen casings without the need to call on more raw resources. The Recyclable Blade technology was developed in Aalborg, Denmark, and the blades were manufactured in Hull in the UK (pictured above). The nacelles were produced and installed in Cuxhaven, Germany. Siemens Gamesa has a plan to make all of its wind turbine blades fully recyclable by 2030 and all of its wind turbines fully recyclable by 2040. Marc Becker, CEO of the Siemens Gamesa Offshore Business Unit, said: We’ve brought the Siemens Gamesa RecyclableBlade technology to market in only 10 months: from launch in September 2021 to installation at RWE’s Kaskasi project in July 2022. This is impressive and underlines the pace at which we all need to move to provide enough generating capacity to combat the global climate emergency. The 342 megawatt (MW) Kaskasi offshore wind farm is owned by German energy company RWE. It’s 35 km (21.7 miles) north of the island of Helgoland in the German North Sea. Siemens Gamesa doesn’t specify how many of the offshore wind farm’s 38 SG 8.0-167 DD wind turbines will feature the RecyclableBlade; it just says that “a number of turbines” will be recyclable. Those turbines that do feature them will have “handcrafted Siemens Gamesa B81 RecyclableBlades, each with a length of 81 meters [266 feet].”
The biggest challenge the German industrial sector currently faces is posed by rising energy costs, The Economist reported on Sunday, citing the association of German industry BDI.“The substance of our industry is under threat,” BDI President Siegfried Russwurm said as quoted by the media, adding that the situation was looking “toxic” for many businesses.
According to the association, the electricity price for next year has already increased fifteen-fold, and the price of gas ten-fold. In July, the country’s industry, which has been forced to reduce production capacities, reportedly consumed 21% less gas than in the same month in 2021. Smaller companies are struggling more than bigger ones, according to a study by the consulting company FTI Andersch, as cited by the media. Some 25% of firms with fewer than 1,000 employees were forced to cancel or decline orders, or are planning to do so, compared with 11% of those with over 1,000 employees. Almost 10,000 bread manufacturers are reportedly struggling as never before in post-war Germany, as the cost of the electricity and gas needed to heat ovens and run kneading machines have increased enormously. The BDI survey of 600 medium-sized companies showed that nearly one in ten interrupted or reduced output because of high input costs, while more than nine in ten said that the soaring prices of energy and raw materials is a big or an existential challenge for them. One in five are reportedly considering relocating part or all of their production to another country. Bigger companies that use energy-intensive production capacities, such as chemicals or steel producers, may also relocate abroad, as they have to compete with rivals in other countries, where the cost of energy is lower. If energy prices remain high for a while, up to 3% of Germany’s energy-intensive businesses will relocate abroad, according to Holger Schmieding, the chief economist of private bank Berenberg. Verdi union said workers walked out in all major German North Sea ports, with the action set to last until Saturday. At 6am on Thursday employees on the early shift in Bremen and Bremerhaven stopped work, Verdi district manager of Bremen-Nordniedersachsen, Markus Westermann, said. The work stoppages are planned until 6am on Saturday. A strike has also begun at the port of Hamburg, said Stephan Gastmeier, trade union secretary in the transport and maritime department at Verdi Hamburg. The industrial action is because no agreement over pay has been reached with the Central Association of German Seaport Operators (ZDS) following the latest meeting on Wednesday, union bosses said. Negotiations are currently suspended. The union is negotiating for about 12,000 workers in 58 companies in Hamburg, Lower Saxony and Bremen who are covered by collective agreements. Dockworkers have already left ship and cargo handling at a standstill twice in June, most recently for 24 hours on June 23rd. According to Verdi negotiator Maya Schwiegershausen-Güth, the latest 48-hour ‘warning strikes’ will affect Emden, Wilhelmshaven and Brake, as well as Hamburg, which is the largest seaport in Germany and third largest in Europe. Like many unions across Europe, they are fighting for wage increases amid extreme inflation rises. Verdi is demanding an increase in wages of €1.20 per hour for employees as well as compensation for inflation amounting to 7.4 percent for the duration of the collective agreement which is 12 months. The union also wants to push through an increase in the annual allowance for container operations by €1,200.
Container congestion likely to worsen The impact of the strike on the handling of container and cargo ships is likely to be considerable and bring the loading and unloading of ships largely to a standstill. This will further aggravate the already tense situation with ship congestion on the North Sea, and the processes at the quaysides are likely to get even more out of step. Container ships have been piling up in the North Sea, while ports are becoming storage areas. ZDS negotiator Ulrike Riedel called the strike “irresponsible” in view of the disrupted supply chains and said it was to the detriment of consumers and businesses. Due to the Covid pandemic, the global traffic of container and cargo ships has been in chaos for several months. According to recent calculations by the Kiel Institute for the World Economy, more than two percent of global freight capacity is stuck in the North Sea. There are currently around 20 cargo shops waiting in the German bay area for clearance, most of them bound for Hamburg. A group of institutional investors in the Netherlands, led by Peter Savelberg of Peter Savelberg en Partners, have joined forces to present the Netherlands plus parts of Belgium and Germany as a single city network named Tristate City.
By treating the Netherlands as an urbanised delta with 17 million inhabitants, the project’s supporters say that are creating a very strong player in this ‘battle of the titans.’ ‘Our city marketing is too fragmented and inefficient,’ the project website says. ‘In practice, the Dutch cities compete with each other abroad.’ Amsterdam Metropool, Brainport Eindhoven, Twentestad, Ede Food Valley, Regio Groningen Assen and Dairy Delta are just some of the names Dutch regions use when marketing themselves abroad. The Netherlands must present itself as one of the ‘most powerful and sustainable city networks in the world,’ the project’s backers say.
A 1955 Mercedes-Benz, one of only two of its kind, was auctioned off earlier this month (May 20, 2022) for a whopping €135 million (US$143 million), making it the most expensive car ever sold, RM Sotheby's announced Thursday. The Mercedes-Benz 300 SLR Uhlenhaut was sold to a private collector, the classic car auction company said in a statement, fetching almost triple the previous record price for a car, which was set in 2018 by a 1962 Ferrari 250 GTO that went for over $48 million. The invitation-only auction took place on May 5 at the MercedesBenz Museum in Stuttgart, Germany, the auction house said, adding that the vehicle's high price places it in the "top 10 most valuable items ever sold at auction in any collecting category". According to an AFP ranking of artworks sold at auction in recent years, the 300 SLR ranks sixth or seventh, with the all-time record being held by Leonardo da Vinci's "Salvator Mundi", which sold in November 2017 for $450.3 million.
The car is one of just two prototypes built by the Mercedes-Benz racing department and is named after its creator and chief engineer, Rudolf Uhlenhaut, according to RM Sotheby's. "The private buyer has agreed that the 300 SLR Uhlenhaut Coupe will remain accessible for public display on special occasions, while the second original 300 SLR Coupe remains in company ownership and will continue to be displayed at the Mercedes-Benz Museum in Stuttgart," the auction company added. According to RM Sotheby's and press reports, the 300 SLR, recognisable by its unusual lines and butterfly doors, was modelled on the W196 R Grand Prix race car, which won two Formula 1 world championships in 1954 and 1955 with Italian Juan Manuel Fangio in the driver's seat. But in June 1955, tragedy struck the Mercedes-Benz team, when at the 24 Hours of Le Mans race, a crash of one of its 300 SLR vehicles killed French driver Pierre Levegh and 83 spectators. That tragedy -- the deadliest in the history of motor racing -- forced the company to withdraw from the sport for years. RM Sotheby's said the proceeds from the auction will be used to establish a worldwide Mercedes-Benz Fund that will fund environmental science and decarbonisation research. The Leitz Photographica Auction House will be holding its 40th auction where a rare Leica 0-Series owned by Oskar Barnack could break current world records. The Leica 0-Series No.105 was produced in 1923 and was a personal camera of Oskar Barnack. Approximately 20 examples of the 0-Series were manufactured as prototypes before the original Leitz 35mm camera was launched in the mid-1920s - only a dozen are estimated to still be in existence today.
If you fancy adding a bit of history to your camera collection you'll need quite a bit of cash as starting bids for the camera are 1 million Euros with the camera expected to sell for somewhere between €2.500.000. Another Leica 0 -Series camera produced in 1923 was a sensational highlight at the Leitz Photographica auction in 2018 where the camera achieved a record-breaking hammer price of 2.4 million euros and still holds the record for the highest price ever paid for a camera sold by auction. If you want to see if this record will be broken in the latest auction, you can watch events unfold over on YouTube (a link will appear on the auction website shortly before the event begins). The 40th Leitz Photographica Auction will be held at Leitz Park, Wetzlar, Germany at 10am GMT on 11 June 2022. Germany’s Uniper is continuing talks with Russian Gazprom and the German government on paying in rubles for deliveries of Russian gas, according to a Q1 financial report, out today. The news comes as the European Commission urges member-state governments to shun Russian gas amid preparations for an embargo on Russian crude oil imports. Uniper, which is one of Germany’s top gas buyers from Russia, said last week it was going to accept Gazprom’s new terms for gas payments.
“The plan is to make our payments in euros to an account in Russia,” a company spokesperson told German media, as cited by Reuters last Thursday. Since then, however, the EC has stepped up pressure on European gas importers. Yesterday, the Commission reiterated its warning that paying for Russian gas in rubles would constitute a breach of EU sanctions on Moscow for its invasion of Ukraine. Per the new Russian terms for payments, any buyer of Russian gas from any unfriendly country needs to open two accounts in Gazprombank: one in the foreign currency it wants to pay in and one in rubles. When a gas payment is due, the buyer deposits the necessary sum in dollars or euros in its first Gazprombank account. The bank then converts the sum into rubles under Russian central bank exchange rates and deposits it in the second account, from which the actual payment is made. “Paying roubles through the conversion mechanism managed by the Russian public authorities and a second dedicated account in Gazprombank is a violation of the sanctions and cannot be accepted,” said Energy Commissioner Kadri Simson on Monday. The European Union received some 40% of its imported natural gas from Russia along with 26% of its imported crude oil. The bloc has substantially stepped up its efforts to find replacement supplies in the last few weeks. Germany has announced a long-term contract with Qatar for the supplies of liquefied natural gas (LNG), as Europe’s biggest economy looks to reduce its energy dependence on Russia. The move comes amid broader Western sanctions aimed at isolating Russia from global trade and energy markets in response to the country’s military operation in Ukraine. According to Germany’s economy minister Robert Habeck, his country will have to rely on gas supplies from Russia at least for 2022. “We might still need Russian gas this year, but not in the future,” Habeck was quoted as saying by DPA in Doha." The minister described the deal as a “door-opener” for his country’s economy since it would reduce Germany’s reliance on Russian gas deliveries, which reportedly account for more than half of its annual supply. Habeck declined to provide details on the quantities and other terms of the contract, adding that it would be up to individual German energy firms, the heads of which accompanied him on the trip to Qatar. Qatari authorities welcomed Germany’s decision to “fast-track” the development of LNG terminals, and said in a statement that the countries’ “respective commercial entities would re-engage and progress discussions on long-term LNG supplies from Qatar to Germany”.
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