Plus: Uniper claims Europe may need more gas rationing
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OPEC + is set to cut oil production by 100,000 barrels a day. The announcement was made by the organization after the conclusion of a meeting between its members. More: - According to field experts, the decision shows that OPEC countries want to continue selling oil barrels at the current $100 price, regardless of recession fears looming.
- While the decision will not make a dent in the global oil supply, it does serve as a political statement that denies U.S. President Biden his request to increase oil output and drop prices.
- The decision was also agreed with by Russia, a co-chair of the OPEC+ committee.
- OPEC is likely to continue to prolong a drop in prices as long as Iran disagrees with the U.S. on providing oil barrels.
Zoom Out: - The decision comes hours after Russia announced its decision to stop providing Europe with gas through one of its main pipelines, Nord Stream 1.
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Emmanuel Macron has proposed taxing EU energy companies with excessive profits. The French President claims that this economic levy would benefit the country during an energy crisis and inflation. More: - The economic measure would be applied only to energy operators with costs below the current market prices at which energy is sold.
- Macron's proposal comes days after German Chancellor Olaf Scholz proposed the same policy idea.
- Both countries — EU leaders by both economic output and political power — expect the idea to be implemented across the union in the near future.
Zoom Out: - Germany has suffered the most from Russia's retaliation against EU countries, as it relied on Russian gas for over 40% of its energy production. Since the war in Ukraine began, Germany has set a number of goals and has taken numerous steps to reduce its dependence on Russian oil and gas, with limited success.
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A new law in California could increase the fast-food minimum wage to $22 per hour. Governor Gavin Newsom signed the bill officially named the Fast Food Accountability and Standards Recovery Act today. More: - As part of the legislation, the bill foresees the creation of a council comprised of 10 members who serve as representatives of the fast-food industry workers.
- The bill has faced strong opposition from the U.S. Chamber of Commerce and fast-food companies such as McDonald's.
- Fast food chains claim that the cost of this bill is too high for them to bear and will ultimately be reflected in the prices that consumers will pay for these products.
- It is estimated that fast food companies have spent over $1M in lobbying fees, mainly against this bill.
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Germany's leading energy import company, Uniper, claims that Europe may need more gas rationing. The statement comes after Russia decided to stop supplying Germany with gas through its Nord Stream 1 pipeline. More: - Germany relied on Russia for over 40% of its gas imports before the war in Ukraine began.
- Since the war started in Feb. 2022, Germany has decreased its reliance on Russian gas to 35%, while its dependence on Russian oil has dropped from 35% to 12%.
- EU countries have rationed gas reserves to prepare for the harsh winter ahead of them.
- Most European countries are expected to see a dramatic increase in energy bills and are already facing electricity cuts. In order to avoid more cuts, countries have estimated that they need to drop electricity consumption by 15% and have taken steps such as buying LNG reserves and turning off public square big screens.
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CVS is set to acquire Signify Health for $8B. The deal would mean CVS is buying the company for $30.50 per share. More: - CVS will acquire the company in an all-cash deal.
- Signify is a healthcare provider that went public in 2021.
- The company's stock has gone up by 45% in recent weeks after the company signaled a possible acquisition deal.
- Investors believed that Amazon was one of the suitors for the deal. CVS's acquisition would have signaled that the healthcare sector was more important for Amazon, as several large companies are now actively seeking deals in that industry.
- CVS has previously acquired insurer Aetna and pharmacy benefits manager Caremark.
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The Euro has dropped to a 20-year low as the currency feels the pressure of a weakened European Union. Economists believe this situation can improve if the EU is able to withstand the upcoming winter crisis. More: - The Euro dropped below $0.99 for the first time in 20 years, while the British pound stood at $1.1444 today.
- European gas prices have jumped to 282 euros per megawatt hour, nearing recent all-time highs. Prices in winter are expected to increase by at least 20% from this current price.
- The European Central Bank, the EU's leading authority for financial policies, has expressed its willingness to increase interest rates.
- Experts have claimed that the drop in the currency and the high inflation rate were only made worse by the Central Bank's policy on currency printing.
- This news comes as Russia has decided to stop supplying the continent with gas from its Nord Stream 1 pipeline. Other pipelines that go through Ukraine and Turkey are still active.
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Quick Hits: - Origin Investments' IncomePlus Fund has seen its 27th consecutive month of positive returns, generating 18.7% over the past 12 months.*
- According to reports, Russian officials believe that the country's economy is in a dire situation and that the economic outlook will only get progressively worse if the war in Ukraine is not resolved.
- 4teamwork has received an investment from Fabasoft that will see the latter gain a controlling stake.
- Apple AirPods Pro2 is close to being released, according to recent reports by researchers. The official announcement may be made on Sept. 7.
- Ilumina is in talks to dissolve its subsidiary company Grail as part of an agreement with the EU's regulator authority.
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 |  | Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. |   | | Editor | Vibha Chapparike is a Freelance Writer & Editor at Inside.com. With her post-graduation in Management and Finance completed, Vibha is expanding her knowledge in Venture Capital, Business, and Startups. Previously, she had a career in Public Relations and Communications with Women in Cloud - an organization on a mission to create $1B in economic access for female technology entrepreneurs. An ardent reader and writer currently residing in Singapore, you can follow Vibha on Twitter @VChapparike. | |
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