Good morning everyone,
In our publishing building, signs decorated with a sun smiley have been hanging next to the elevators for a few days: “Do you want to save electricity? Is your health important to you? Tired of your comfort zone? At least 1x “YES”? Take the stairs.”
Admittedly, at an early hour, packed with handbag, laptop and bundle of newspapers and with the prospect of climbing to the 6th floor, my first thought was: 3x “NO”. Then the guilty conscience set in and I did walk (though after hailing the elevator, so I was actually wasting electricity).
Germany’s companies are getting creative, because sharply rising energy costs are forcing them to save. The industry is primarily trying to curb its gas consumption. If you don’t have classic production, you start with electricity. Deutsche Bank, for example, has shut down its fountain in front of its Frankfurt headquarters, and Munich Re has stopped illuminating works of art in the evening. And at almost all companies, it is getting colder in the offices and factory buildings, as a Handelsblatt survey has shown.
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Everyone is now eagerly awaiting the planned gas price brake. Chancellor Olaf Scholz assumes that the expert commission set up by the government will present a proposal on Monday. The committee meets at the weekend and will probably go through. Members reported to our Berlin colleagues on Friday that there are currently no clearly recognizable solutions – and are expecting a marathon meeting.
It is also conceivable that initially only a first solution for private households will be presented and then, in a further step, a concept for the economy. That fits with the report by my colleague Julian Olk on Thursday, according to which the brake model roughly intended for private households would not fully exploit the savings potential in the economy. “A special solution is required for companies“It is also said by the federal government. One thing is clear: no one wants to wait any longer, because time is of the essence.
And then there is the demand from 15 of the 27 EU countries for a gas price cap, which some countries already have. The calculus: A cap at European level could relieve their budgets, because then everyone would bear the costs. Germany doesn’t like that at all, because it would probably have to pay a disproportionately high amount. The heads of state and government discussed in Prague on Friday and, not surprisingly, did not reach an agreement.
What else kept us busy this week:
1: Vladimir Putin celebrated his 70th birthday on Friday. My colleague Mathias Brüggmann, who met Putin in 2016, used the event as an opportunity to get closer to the man whom those familiar with Russian politics describe as a “lonely narcissist”. It must not have been a pleasant birthday for the head of the Kremlin, because everything looks as if his war of aggression in Ukraine is slipping away more and more.
Ukrainians keep advancing in their own country. Putin must watch as his soldiers retreat from the Ukrainian military. We have analyzed for you what options he still has and how the West could react to them. The fear of a nuclear attack is great. The armaments researcher Hans Møller Kristensen does see the risk, but also says in an interview: “After the use of nuclear weapons, Putin’s Russia would be the absolute pariah of the international community.”
Which should also have annoyed Putin: Human rights activists from Belarus, Russia and Ukraine received the Nobel Peace Prize on his birthday.
2: The targeted sabotage of the Nord Stream 1 and 2 gas pipelines has triggered a discussion about the security of the infrastructure. “Europe’s actual weak point is not on the seabed, but in space,” Matthias Wachter, head of the security department at the BDI industry association, told the Handelsblatt. He sees satellites and their ground stations as possible targets. Attacks on a larger scale would have far-reaching consequences.
3: With their all-day strike, the Eurowings pilots caused numerous flight cancellations at the Lufthansa subsidiary on Thursday. CEO Carsten Spohr is once again campaigning for peace in the company, but the mood remains on the ground. Above all, the employees rub shoulders with his strategy of constantly founding new subsidiaries with lower tariffs based on the Eurowings model.
4: The largest battery storage facility in the world is being built in Germany. The facility, which covers an area the size of 4.5 football pitches, is scheduled to go into operation in north-eastern Baden-Württemberg in just two and a half years. Our energy expert Kathrin Witsch describes why the project is groundbreaking for the energy transition.
5: Although the Dax fell again after a brilliant start to the week on Friday after the publication of data on the US labor market, it has moved away from its low for the year – 11,863 points on September 28th. Six indicators indicate whether it is now worth buying shares againpresented by our investment experts.
6: Just over a week after the Volkswagen subsidiary Porsche went public, the following came out: the accompanying investment banks massively supported the sports car manufacturer’s share price in the days that followed. Nevertheless, one can speak of a successful entry onto the floor, especially given the difficult market environment. Volkswagen boss Oliver Blume is already one step further and has “virtual equity stories” prepared for all ten group brands. This means that all VW subsidiaries should play through a possible IPO. Let’s see which one is next.
7: Galeria Kaufhof takes radical measures in the crisis. As the department store chain confirmed to the Handelsblatt on Friday, the management unilaterally terminated the collective restructuring agreement concluded with the Verdi trade union. The document, officially called the “transition and integration wage agreement”, was signed after the merger of Karstadt and Kaufhof and not only secured the preservation of locations, but also salary increases for the employees. The consequences are not yet foreseeable, but Galeria is facing tough negotiations with Verdi.
8th: The average rate of assessment for all municipalities in Germany for trade tax is 435 percent. Not so in Monheim am Rhein, there it is 250 percent. The city is thus symbolic of the 90 commercial tax havens nationwide. The new NRW state government now wants to drain the tax havens in their statewhich Mayor Daniel Zimmermann called into action: “Instead of ensuring that the tax rates in Monheim am Rhein rise, the state government should ensure that they fall in Oberhausen, for example.” My colleague Luisa Bomke visited him.
Speaking of tax: According to information from the state finance ministries only a quarter to a third of landowners have submitted their tax returns. The deadline for this is the end of October. Finance Minister Christian Lindner therefore wants to propose to his country colleagues that the deadline be extended. If you are also one of the latecomers, then read up on how to calculate your living space correctly.
The big eat the small: this is how the modern market works. The big corporations have more and more power, but small companies have little chance.
9: My colleague Hans-Jürgen Jakobs, whom you know as the author of the Morning Briefing, For his recently published book “The Monopoly in the 21st Century”, he spent many months dealing with companies that have oversized market power – and with the fatal consequences of this trend. There is less innovation, higher prices, but above all economic and political dependencies – which endanger freedom and prosperity. You can find a foretaste of the 432 pages in our weekend title.
I wish you a nice weekend and a lot of success in saving energy – whether privately or professionally!
Best regards
Her
Kirsten Ludowig
Deputy Editor-in-Chief Handelsblatt
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