Bloomberg

(Bloomberg) — China’s top leaders said they will focus on boosting the economy next year, hinting at business-friendly policies, further support for the property market while likely scaling back fiscal stimulus.

After three years of strict Covid Zero restrictions, a crackdown on financial risk in the property market and targeting excessive growth of internet platform companies, President Xi Jinping now appears to be loosening the reins. 

At a two-day Central Economic Work Conference that wrapped up on Friday, Xi and other senior officials pledged to revive consumption and support the private sector, a marked shift from recent years.

Economists said the signals are clear that the focus next year is on boosting gross domestic product, with policymakers likely to target growth of 5% or higher. 

That task will be a challenging one though given China is facing a surge in Covid infections in coming months after virus controls were hastily abandoned and consumer and business confidence remain at near record low levels.

Here’s a look at the key takeaways from the Central Economic Work Conference and what analysts say it means for policies next year. 

More business-friendly policies, including for tech firms

Officials said they will implement favorable policy to encourage private enterprises to grow and broaden market access for foreign firms. Singling out internet platform firms, the officials said they would support the companies in playing a leading role in economic development, creating jobs and competing in the international market.

The language on platform companies was much more positive than used during last year’s meeting, when leaders emphasized supervision of the industry and curbing its “wild growth.”

“The biggest change this year seems to be the increased focus on improving the business environment for foreign and private companies, especially the internet platform companies,” said Adam Wolfe, an economist at Absolute Strategy Research. “That could help restore confidence and boost investment in light manufacturing and the service sector.”

A GDP growth target probably around 5%

Officials took a stronger pro-growth stance at the meeting than in recent years, stating the “amount” of economic expansion is important. Topping the list of priorities for next year was expanding domestic demand. 

In particular, officials said consumer spending and employment growth should both be given a “more prominent position.” Incomes of urban and rural residents would be increased “through multiple channels,” they said, in order to expand spending in better housing, new energy cars, and elderly care.

Consumer spending has been a weak spot for the economy during the pandemic and economists expect a rebound next year as Covid restrictions end and infections subside. That’s likely to drive growth next year to 5% or above, from an estimated 3% this year. 

Senior officials are debating a GDP growth target of around 5% for next year, Bloomberg News reported earlier this month. Several government-linked officials have argued the economy needs growth of at least that amount in coming years to meet China’s longer-term ambitions.

Fiscal stimulus could be scaled back

While promising active fiscal policy, officials shunned phrases such as “front-loading” infrastructure investment and “new tax cuts,” which were highlighted during last year’s meeting.

For next year, officials said the focus of fiscal policy will remain to support growth, while also pledging to maintain a “necessary” magnitude of public spending, ensure fiscal sustainability and keep local government debt risks in check. 

“We think this means a continued proactive fiscal policy but likely with a smaller additional fiscal stimulus than 2022,” UBS economists led by Wang Tao wrote in a note. 

China’s budget deficit soared to all-time high levels this year and local government debt burdens have become unsustainable because of sliding tax and land revenue and higher spending on Covid controls. The central government boosted transfer payments to local governments and turned to unconventional income sources such as central bank profits to increase revenue.

The UBS economists expect infrastructure investment to grow 5%-6% next year, slowing from an estimate of more than 12% in 2022. The broad fiscal deficit may rise by less than 0.5 percentage point of GDP, much smaller than this year’s increase of more than 3.5 percentage points, they forecast.

Monetary policy likely to remain loose

The fiscal limits mean monetary policy may remain relatively loose given the government is keen to expand domestic demand and the economic recovery remains fragile.

That could mean further monetary easing, like interest rate cuts, and a push to get banks to boost loans, especially to small businesses. Officials said liquidity will remain “reasonably ample,” and they’ll aim to expand credit at a similar pace to nominal GDP growth.

Comments from Liu Guoqiang, deputy governor of the People’s Bank of China, this weekend appeared to confirm that accommodative stance. He said the “magnitude of monetary policy will not be smaller than this year,” and it could be stepped up if needed, unless growth and inflation exceeded expectations, according to a report in the local media.

Further support for property market

The official slogan that “housing is for living, not for speculation” was repeated — a phrase used in previous years to signal efforts to make the economy less reliant on property as a source of growth.

Yet there were clear signs of a softening of tone, with officials pledging to support consumer demand for “better housing,” ensure “stable growth” in the sector and meet the financing needs of property companies. 

Citic Securities Co. said the language around the property market signaled the stance has “completely shifted to support and care-taking.”  

“We think the government’s determination to put a floor to the property market slump is unquestionable,” Citic analysts including Ming Ming wrote in a report. “Policies will likely be eased further until the market show signs of a stabilization and recovery.”

Senior officials have recently switched rhetoric on the property market. Vice Premier Liu He told a foreign business delegation last week that the property market was a “pillar” of the economy and new measures are being considered to improve the financial condition of the sector and boost confidence.

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©2022 Bloomberg L.P.

(Bloomberg) — Last month, a satellite flew over the dry, arid landscape of South Australia state’s Cooper Basin and spotted a large cloud of the super potent greenhouse gas methane.

The plume was observed Nov. 23 near a few petroleum-producing fields and a natural gas pipeline owned by Epic Energy South Australia Pty. The company initially told Bloomberg News there were no incidents or work on its Moomba-to-Adelaide conduit over that timeframe in the vicinity of the plume that could have caused it.

“We are not aware of any methane release in the area which have resulted from our operations,’’ Stephen Mudge, general manager of strategy and business development at Epic, said in an email Dec. 7.

A subsequent investigation by the South Australia Department for Energy and Mining found just the opposite. Compressor Station 1 on the pipeline experienced a pressure safety valve gas release on Nov. 22 and 23, the regulator said in an email Dec. 15. The agency said it didn’t know how much methane was released.

When Bloomberg News contacted Epic about the release disclosed by regulators, the company said that it had subsequently discovered the Nov. 22 release while investigating a separate incident on the same compressor station from this month.

“On the 8th of December we did have a pressure safety valve release at compressor station 1 on the Moomba to Adelaide Pipeline,’’ Mudge said in an email Dec. 16. “Following this event an investigation was instigated to determine the reasons behind this. During the course of this investigation it was determined that there was also a release of gas from this pressure safety valve overnight on the 22nd of November. Epic has now undertaken the necessary works to overhaul the pressure safety valve and detection sensor.’’

For decades officials have mostly had to trust fossil fuel operators to self-report emissions. That’s changing as satellites and other measuring campaigns add to a growing body of empirical evidence that is driving climate transparency and holding emitters accountable. Methane is the primary component of natural gas and has a devastating impact on the climate if released directly into the atmosphere. More than 120 nations, including Australia, have joined a global initiative to cut emissions of the gas by 30% by 2030.

Bloomberg News has used satellite observations since July 2020 to identify about 70 methane releases linked to the energy and waste sectors from Argentina to Turkmenistan, including almost two dozen in the United States. The coverage has triggered government investigations in the US and Bangladesh. Most methane emissions globally go unreported.

The methane plume in South Australia had an estimated emissions rate of 46 metric tons of methane an hour, according to geoanalytics company Kayrros SAS, which analyzed satellite data from the European Space Agency’s Sentinel-5P satellite. The short-term climate impact of the leak, if it lasted an hour at the rate estimated by Kayrros, would be equivalent to the annual emissions from more than 800 US cars. 

Mudge didn’t respond to a follow up email asking how much methane was leaked and the duration of the release.

News of the Australia pipeline release comes amid growing tension between the nation’s natural gas exporters and lawmakers, who last week passed a law to cap domestic prices of natural gas to limit the impact of soaring global costs on local power bills. Australia’s LNG producers have been vocal in their opposition to the government’s plans. 

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©2022 Bloomberg L.P.

(Bloomberg) — German labor union Verdi called on Amazon.com Inc. warehouse workers to go on strike across the country during the holiday season, seeking to press the company for higher pay and to join collective bargaining agreements. 

The timing and location of individual walkouts won’t be announced in advance, the union said in a statement on Sunday. Amazon didn’t immediately respond to a request for comment.

The world’s largest online retailer is facing increased tension with workers, including complaints of unfair labor practices as well as employee activism and union drives at some facilities. In a watershed moment, Amazon warehouse workers on New York’s Staten Island voted to join the Amazon Labor Union in April.

Verdi called on Amazon employees at Bad Hersfeld, Dortmund, Graben near Augsburg, Koblenz, Leipzig, Rheinberg and Werne to join the strikes. 

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

(Bloomberg) — Twitter Inc. owner Elon Musk reinstated Taylor Lorenz after suspending her and two other journalists from the site over the weekend.   

Musk reinstated Lorenz, a Washington Post columnist, about an hour after tweeting that her suspension would be “lifted shortly.” The accounts of Business Insider’s Linette Lopez and Fox Business Network’s Susan Li remain frozen.  

Musk first suspended a number of journalists on Thursday, including Lorenz’s colleague Drew Harwell, who he alleged were “doxxing” him by sharing information about the location of his private jet. 

Musk also blocked accounts linking to Mastodon, an alternative social-media site, and a page that links to publicly available information about the status of his jet. He reinstated most journalists after conducting a Twitter poll. 

Musk suspended additional reporters on Friday and Saturday. Lorenz said she was suspended Saturday after she tweeted to Musk saying she and colleague Harwell had sent emails to him and to venture capitalist David Sacks after learning “some information that we’d like to share and discuss with you.” 

Twitter Suspends Journalists Who Musk Says Imperiled His Safety

Writing later on her Substack, Lorenz said she logged back onto Twitter some time later and found her account frozen. She said she received no information on why, or which terms she’d allegedly violated. 

“As a journalist we have a deep commitment to free speech and free expression, and I do think that Musk arbitrarily banning people is antithetical to those values,” Lorenz told Bloomberg News. 

Lorenz, a former technology reporter with the New York Times, Daily Beast and others, has long been a target of trolling on the platform, especially from conservative and right-wing accounts. She has more than 340,000 followers on Twitter.

Lopez had been tweeting about Musk and the people he’d previously targeted online. Li had written about other reporters who were suspended just a day earlier.

In a new policy announced Sunday, Twitter will be taking down any accounts set up to promote alternative social media sites and posts with user names on other sites.

Musk Faces European Anger Over Twitter Ban of Journalists   

Musk said he agreed with a user on Sunday who said there should be more transparency around the suspensions. 

“A high priority software update for Twitter is showing the reason for account suspension or deboosting,” Musk tweeted. “Rules should be equally & consistently applied.”

Musk’s suspensions received condemnation especially from European politicians who warned these moves could lead to fines under upcoming EU rules.

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©2022 Bloomberg L.P.

(Bloomberg) — Twitter said it will remove accounts “created solely” to promote other social media platforms. 

The company “will remove accounts created solely for the purpose of promoting other social platforms and content that contains links or usernames” for Facebook, Instagram, Mastodon, Truth Social, Tribel, Nostr and Post, Twitter Support said in a series of tweets Sunday.

To view the source of this information click here

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(Bloomberg) —

A top adviser to Ukrainian President Volodymyr Zelenskiy warned that Russia could sharply escalate the war in a winter offensive driven by mass infantry, and that Western allies needed to be prepared. 

Ukraine continues to repair key infrastructure after Friday’s Russian missile strikes, the ninth major barrage since early October. The heat is mostly back on for residents of Kyiv, where temperatures will be well below freezing for the next two days. Russia has launched over 4,000 missiles at Ukraine since the start of its full-scale invasion, Zelenskiy said on Saturday. 

As Russia’s invasion of Ukraine nears the 10-month mark, President Vladimir Putin met with military commanders to determine next steps, the Kremlin said on Saturday. In a short video, he asked for “proposals” on how the war should proceed. Russia released video it said showed Defense Minister Sergei Shoigu visiting “forward positions” in Ukraine. 

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)

Key Developments

• Putin’s Ambitions Put Finland’s Troops and Tanks Back In Vogue
• Putin’s War Makes Russian Stocks World’s Worst With Grim Outlook
• A Million Shells and More: Pentagon Revs Up Ukraine Weapons Aid
• EU Will Fund Cable Bringing Power From Caucasus Region
• Europe’s $1 Trillion Energy Bill Only Marks Start of the Crisis
• Germany Opens LNG Terminal in Quest to Replace Russian Gas

On the Ground

Russian forces are trying to regain their positions near Lyman and are restoring railway infrastructure in Zaporizhzhia to improve logistics, Ukraine’s general staff said in an update. Russia is attempting to advance near Bakhmut and Avdiivka. There were four missile strikes and 20 shellings from multiple rocket launch systems on Sunday. Russian forces shelled the center of Kherson, injuring three, Kyrylo Tymoshenko, deputy head of presidential staff, said on Telegram. Air defense systems were triggered in Russia’s Belgorod region, with at least four people were injured on the ground, Governor Vyacheslav Gladkov wrote on Telegram. One person was killed and another injured in the surrounding region.  

(All times CET)

Zelenskiy Aide Warns of Potential Russian Winter Escalation: NYT (5:12 p.m.)

Ukraine is bracing for a major Russian escalation over the winter to tamp down political backlash at home, Zelenskiy adviser Mykhailo Podolyak told the New York Times. 

The comments, made to the newspaper in emailed responses to questions, were the warning that the Kremlin plans to ramp up the war, potentially with a new mass mobilization. Ukraine’s army commander-in-chief Valeriy Zaluzhnyi told The Economist last week there was “no doubt” Russia will make another run at capturing Kyiv as soon as January with fresh troops now in training. 

Russia’s military appears to be laying plans for mass infantry attacks reminiscent of those done by the Soviet Union during World War II, Podolyak said. 

Rheinmetall Plans New Ammo Production Line (4 p.m.)

Rheinmetall will build a new production line for ammunition to ease supply bottlenecks for Germany’s armed forces in the latest sign that Russia’s war against Ukraine is reshaping Europe’s security landscape. 

The German company plans to invest more than €10 million ($10.6 million) to add the new capacity at its existing site in Unterluess, Lower Saxony. It will provide ammunition also for the 30 “Gepard” anti-aircraft guns which Chancellor Olaf Scholz’s coalition government sent to Ukraine earlier this year.

Ukraine Takes on FIFA Over World Cup Video Decision (2:30 p.m.)

Ukraine criticized FIFA, saying the football governing body had declined to show a video message from Voldymyr Zelenskiy calling for world peace before Sunday’s World Cup final in Qatar. 

Ukraine’s president recorded a video in English that he hoped would be shown before the game. “FIFA blocked the initiative and will not allow” the video to be shown, CNN reported, citing a statement from the office. FIFA hasn’t commented. 

Presidential aide Mykhailo Podolyak said on Twitter that the sports body “shows lack of understanding of the disaster” Russia is dragging the world into, while Ukraine’s foreign ministry urged FIFA to not be afraid. 

Ukraine’s Railway Lights Up Christmas Tree With Pedal Power (2 p.m.)

The Ukrainian railway company Ukrzaliznytsya set up a Christmas tree in the hall of a central railway station in Kyiv with lights powered by a electricity generated by a bicycle, its CEO said on Twitter. 

Russian Defense Chief Visits ‘Forward Positions’ in Ukraine (11 a.m.)

Russian Defense Minister Sergei Shoigu flew over deployment area of Russian troops in Ukraine and inspected forward positions, the ministry said on its website. Shoigu is shown in a 43-second video traveling by helicopter; it’s unclear when trip took place and exactly what locations he visited. 

The travel was announced two days after President Vladimir Putin met with military commanders, including Shoigu, to strategize on the way forward for what Russia calls its “special military operation” in Ukraine, which is approaching the 10-month mark. 

Shoigu met with field commanders at a “command and control post,” and “interacted with Russian servicemen,” according to the ministry. 

Ukraine Picks Eurovision Artist in Broadcast From Bomb Shelter (10 am.) 

Ukrainians chose the band Tvorchi to represent the nation at the 2023 Eurovision Song Contest in Liverpool. The UK will host the event on behalf of Ukraine, which won the broadcasting rights after its Kalush Orchestra won this year’s competition. 

Tvorchi, an electro-pop duo from Ternopil in western Ukraine, was selected from ten contenders after a nationwide broadcast on TV, radio and the internet from a Kyiv underground station that’s being used as a bomb shelter. 

The sing-off came a day after Kremlin troops bombarded the capital with 40 missiles, of which 37 were shot down by air defense. 

Heat Mostly Back On in Kyiv After Latest Strikes, Mayor Says (8 a.m.)

Kyiv has restored operations at utilities providing heat throughout the city following the latest missile strikes by Russia on Friday, Mayor Vitali Klitschko wrote in Telegram post. 

Municipal workers will be addressing any localized issues at buildings without heat throughout the day, he said. Temperatures in Ukraine’s capital will be well below freezing Sunday and Monday before a slight thaw.

Kremlin troops fired some 40 missiles at Ukraine’s capital on Friday as part of the ninth major barrage against key infrastructure since early October. Some 37 missiles were shot down by air defense. 

Kremlin Trying to Rehabilitate Putin’s Image, US Analysts Say (7:30 a.m.)

The Kremlin likely publicized Vladimir Putin’s meeting with military commanders to portray him as a competent wartime leader and rehabilitate the image of Russia’s defense ministry as well, the Institute for the Study of War said in a report.  

The US-based analysts said the Kremlin wanted to present Putin as “being thoroughly engaged with the planning and execution of the war” following recent criticism from the pro-war community. “One prominent milblogger even questioned whether ‘Putin finally showed public interest in the special military operation’ at their suggestion to do so,” ISW said.

Publicizing the attendance at Friday’s meeting of top military brass, including Army General Sergei Surovikin, who commands Russia’s forces in Ukraine, was done to depict the defense ministry “as an organized, unified, and effective war-fighting institution,” they added. 

UK Doubts Impact of ‘Creative Brigades’ to Cheer Russian Troops (7 a.m.) 

Two “front-line creative brigades” announced by Russia’s defense ministry to entertain troops and boost morale are unlikely to alleviate soldiers’ concerns about high casualty rates, poor leadership, and lack of equipment and ammunition, the UK defense ministry said. 

Russian media reported that the entertainment teams will include “opera singers, actors and circus performers,” the ministry said in a Twitter thread. 

 

Energy Teams Restore Power to 6 Million, Zelenskiy Says (8:54 p.m.)

Ukraine’s President Volodymyr Zelenskiy said Saturday in his nightly address that teams have been working nonstop to repair damage to power and water supply networks damaged Friday in Russia’s latest missile attack. Electricity has been restored to almost 6 million Ukrainians in the past day, Zelenskiy said.

The most difficult situations are in areas including the capital, Kyiv, and surrounding region, as well as Lviv, Vinnytsia, Zakarpattia, Odesa, and Chernihiv, among other regions, he added. 

Putin Asks Generals for Ideas at Strategy Meeting (5 p.m.)

As Russia’s invasion of Ukraine approaches the 10-month mark, President Vladimir Putin spent Friday at the nation’s war-coordination command post, according to a Kremlin statement on Saturday. 

Putin listened to reports, held a general meeting and conducted one-on-one talks with military commanders, the Kremlin said, without giving more detail. “I would like to hear your proposals on our immediate and medium-term actions,” Putin said in a short video released on Saturday 

The meetings, which also included Defense Minister Sergei Shoigu, came days before Putin’s planned trip to Belarus for talks with President Alexander Lukashenko, the Russian leader’s first visit to Minsk since 2019. 

Kyiv Puts Up Christmas Tree Despite Russian Attacks, Power Cuts (1:02 p.m.)

Ukraine’s capital is preparing for the holidays despite the hardships of Russia’s invasion, and has put up a Christmas tree on the central Sophiyska Square, mayor Vitali Klitschko said on Facebook. 

“This year, the country’s main Christmas tree is artificial, 12 meters high, and decorated with energy-saving garlands connected to a generator,” he said. “We will also arrange points for recharging gadgets next to the generator.”

Germany Opens LNG Terminal as Way Around Putin ‘Blackmail’ (12:35 p.m.)

Germany opened its first state-chartered LNG vessel as it races to replace Russian gas cut off as part of what Chancellor Olaf Scholz called Vladimir Putin’s “blackmail” of Europe. 

“Germany and the EU will become a great deal more secure and independent,” Scholz said in a speech in Wilhelmshaven on the North Sea coast. 

Putin, in pursuing the invasion of Ukraine, calculated that he could pressure Germany and the rest of Europe by making energy a political weapon but “was wrong,” Scholz said. 

Read more. 

Russia Launches Cruise Missiles at Odesa (8:57 a.m.)

Russia aimed two “Oniks” cruise missiles at the Black Sea port city of Odesa early Saturday. Both were downed by Ukrainian air defence, Ukraine’s southern operational command said. 

The supersonic missiles were fired from a coastal defense system in Russian-occupied Crimea, the command said.

Missiles attacks continued on the Sumy, Donetsk, Kherson and Zaporizhzhia regions, Ukraine’s presidential office said in statement, citing local authorities. At least one person was killed and several injured. 

 

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©2022 Bloomberg L.P.

(Bloomberg) —

Ukraine criticized FIFA, saying the football governing body had declined to show a video message from Volodymyr Zelenskiy before Sunday’s World Cup final in Qatar, calling for world peace. 

Ukraine continues to repair key infrastructure after Friday’s Russian missile strikes, the ninth major barrage since early October. The heat is mostly back on for residents of Kyiv, where temperatures will be well below freezing for the next two days. Russia has launched over 4,000 missiles at Ukraine since the start of its full-scale invasion, Zelenskiy said on Saturday. 

As Russia’s invasion of Ukraine nears the 10-month mark, President Vladimir Putin met with military commanders to determine next steps, the Kremlin said on Saturday. In a short video, he asked for “proposals” on how the war should proceed. Russia released video it said showed Defense Minister Sergei Shoigu visiting “forward positions” in Ukraine. 

(See RSAN on the Bloomberg Terminal for the Russian Sanctions Dashboard.)

Key Developments

• Russia, US Step Up Efforts for Whelan Swap After Griner Release
• Putin’s War Makes Russian Stocks World’s Worst With Grim Outlook
• A Million Shells and More: Pentagon Revs Up Ukraine Weapons Aid
• EU Will Fund Cable Bringing Power From Caucasus Region
• Russia Regions Ask Putin to Limit Foreigners in Grain Trade: RBC

On the Ground

Russian forces are looking for tactical improvements to their positions around Lyman and are focusing in areas near Bakhmut and Avdiivka, Ukraine’s General Staff said in its latest update. Over the past day, Russia launched five rockets at Ukraine and made at least 42 strikes from multiple launch rocket systems. The entire country remains at risk of airstrikes. Russian forces shelled the center of Kherson, injuring three, Kyrylo Tymoshenko, deputy head of presidential staff, said on Telegram. Air defense systems were triggered in Russia’s Belgorod region, with at least four people were injured on the ground, Governor Vyacheslav Gladkov wrote on Telegram. One person was killed and another injured in the surrounding region. 

(All times CET)

Rheinmetall Plans New Ammo Production Line (4 p.m.)

Rheinmetall will build a new production line for ammunition to ease supply bottlenecks for Germany’s armed forces in the latest sign that Russia’s war against Ukraine is reshaping Europe’s security landscape. 

The German company plans to invest more than €10 million ($10.6 million) to add the new capacity at its existing site in Unterluess, Lower Saxony. It will provide ammunition also for the 30 “Gepard” anti-aircraft guns which Chancellor Olaf Scholz’s coalition government sent to Ukraine earlier this year.

Ukraine Takes on FIFA Over World Cup Video Decision (2:30 p.m.)

Ukraine criticized FIFA, saying the football governing body had declined to show a video message from Voldymyr Zelenskiy calling for world peace before Sunday’s World Cup final in Qatar. 

Ukraine’s president recorded a video in English that he hoped would be shown before the game. “FIFA blocked the initiative and will not allow” the video to be shown, CNN reported, citing a statement from the office. FIFA hasn’t commented. 

Presidential aide Mykhailo Podolyak said on Twitter that the sports body “shows lack of understanding of the disaster” Russia is dragging the world into, while Ukraine’s foreign ministry urged FIFA to not be afraid. 

Ukraine’s Railway Lights Up Christmas Tree With Pedal Power (2 p.m.)

The Ukrainian railway company Ukrzaliznytsya set up a Christmas tree in the hall of a central railway station in Kyiv with lights powered by a electricity generated by a bicycle, its CEO said on Twitter. 

Russian Defense Chief Visits ‘Forward Positions’ in Ukraine (11 a.m.)

Russian Defense Minister Sergei Shoigu flew over deployment area of Russian troops in Ukraine and inspected forward positions, the ministry said on its website. Shoigu is shown in a 43-second video traveling by helicopter; it’s unclear when trip took place and exactly what locations he visited. 

The travel was announced two days after President Vladimir Putin met with military commanders, including Shoigu, to strategize on the way forward for what Russia calls its “special military operation” in Ukraine, which is approaching the 10-month mark. 

Shoigu met with field commanders at a “command and control post,” and “interacted with Russian servicemen,” according to the ministry. 

Ukraine Picks Eurovision Artist in Broadcast From Bomb Shelter (10 am.) 

Ukrainians chose the band Tvorchi to represent the nation at the 2023 Eurovision Song Contest in Liverpool. The UK will host the event on behalf of Ukraine, which won the broadcasting rights after its Kalush Orchestra won this year’s competition. 

Tvorchi, an electro-pop duo from Ternopil in western Ukraine, was selected from ten contenders after a nationwide broadcast on TV, radio and the internet from a Kyiv underground station that’s being used as a bomb shelter. 

The sing-off came a day after Kremlin troops bombarded the capital with 40 missiles, of which 37 were shot down by air defense. 

Heat Mostly Back On in Kyiv After Latest Strikes, Mayor Says (8 a.m.)

Kyiv has restored operations at utilities providing heat throughout the city following the latest missile strikes by Russia on Friday, Mayor Vitali Klitschko wrote in Telegram post. 

Municipal workers will be addressing any localized issues at buildings without heat throughout the day, he said. Temperatures in Ukraine’s capital will be well below freezing Sunday and Monday before a slight thaw.

Kremlin troops fired some 40 missiles at Ukraine’s capital on Friday as part of the ninth major barrage against key infrastructure since early October. Some 37 missiles were shot down by air defense. 

Kremlin Trying to Rehabilitate Putin’s Image, US Analysts Say (7:30 a.m.)

The Kremlin likely publicized Vladimir Putin’s meeting with military commanders to portray him as a competent wartime leader and rehabilitate the image of Russia’s defense ministry as well, the Institute for the Study of War said in a report.  

The US-based analysts said the Kremlin wanted to present Putin as “being thoroughly engaged with the planning and execution of the war” following recent criticism from the pro-war community. “One prominent milblogger even questioned whether ‘Putin finally showed public interest in the special military operation’ at their suggestion to do so,” ISW said.

Publicizing the attendance at Friday’s meeting of top military brass, including Army General Sergei Surovikin, who commands Russia’s forces in Ukraine, was done to depict the defense ministry “as an organized, unified, and effective war-fighting institution,” they added. 

UK Doubts Impact of ‘Creative Brigades’ to Cheer Russian Troops (7 a.m.) 

Two “front-line creative brigades” announced by Russia’s defense ministry to entertain troops and boost morale are unlikely to alleviate soldiers’ concerns about high casualty rates, poor leadership, and lack of equipment and ammunition, the UK defense ministry said. 

Russian media reported that the entertainment teams will include “opera singers, actors and circus performers,” the ministry said in a Twitter thread. 

 

Energy Teams Restore Power to 6 Million, Zelenskiy Says (8:54 p.m.)

Ukraine’s President Volodymyr Zelenskiy said Saturday in his nightly address that teams have been working nonstop to repair damage to power and water supply networks damaged Friday in Russia’s latest missile attack. Electricity has been restored to almost 6 million Ukrainians in the past day, Zelenskiy said.

The most difficult situations are in areas including the capital, Kyiv, and surrounding region, as well as Lviv, Vinnytsia, Zakarpattia, Odesa, and Chernihiv, among other regions, he added. 

Putin Asks Generals for Ideas at Strategy Meeting (5 p.m.)

As Russia’s invasion of Ukraine approaches the 10-month mark, President Vladimir Putin spent Friday at the nation’s war-coordination command post, according to a Kremlin statement on Saturday. 

Putin listened to reports, held a general meeting and conducted one-on-one talks with military commanders, the Kremlin said, without giving more detail. “I would like to hear your proposals on our immediate and medium-term actions,” Putin said in a short video released on Saturday 

The meetings, which also included Defense Minister Sergei Shoigu, came days before Putin’s planned trip to Belarus for talks with President Alexander Lukashenko, the Russian leader’s first visit to Minsk since 2019. 

Kyiv Puts Up Christmas Tree Despite Russian Attacks, Power Cuts (1:02 p.m.)

Ukraine’s capital is preparing for the holidays despite the hardships of Russia’s invasion, and has put up a Christmas tree on the central Sophiyska Square, mayor Vitali Klitschko said on Facebook. 

“This year, the country’s main Christmas tree is artificial, 12 meters high, and decorated with energy-saving garlands connected to a generator,” he said. “We will also arrange points for recharging gadgets next to the generator.”

Germany Opens LNG Terminal as Way Around Putin ‘Blackmail’ (12:35 p.m.)

Germany opened its first state-chartered LNG vessel as it races to replace Russian gas cut off as part of what Chancellor Olaf Scholz called Vladimir Putin’s “blackmail” of Europe. 

“Germany and the EU will become a great deal more secure and independent,” Scholz said in a speech in Wilhelmshaven on the North Sea coast. 

Putin, in pursuing the invasion of Ukraine, calculated that he could pressure Germany and the rest of Europe by making energy a political weapon but “was wrong,” Scholz said. 

Read more. 

Russia Launches Cruise Missiles at Odesa (8:57 a.m.)

Russia aimed two “Oniks” cruise missiles at the Black Sea port city of Odesa early Saturday. Both were downed by Ukrainian air defence, Ukraine’s southern operational command said. 

The supersonic missiles were fired from a coastal defense system in Russian-occupied Crimea, the command said.

Missiles attacks continued on the Sumy, Donetsk, Kherson and Zaporizhzhia regions, Ukraine’s presidential office said in statement, citing local authorities. At least one person was killed and several injured. 

 

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

(Bloomberg) — South Africa’s governing African National Congress began voting on Sunday for its top seven leaders, with the outcome of several of the contests still hanging in the balance. 

Balloting was delayed for a day after the party struggled to complete the registration of delegates attending its five-yearly conference taking place on the outskirts of Johannesburg. The results of the election are expected to be announced later on Sunday or early Monday.

Accusations of vote buying damaged the ANC’s brand and undermined the credibility of its leaders and the practice wouldn’t be tolerated, according to spokesman Pule Mabe. Security officials and marshals had been briefed to report any suspicious exchange of money to the conference’s steering committee, he told reporters.

Vote buying is the “anti-thesis of what we stand for,” Mabe said. “The leadership of the ANC must be beyond reproach.”

The Candidates for Top Positions (Dec. 18, 2:20 a.m.)

President Cyril Ramaphosa and former Health Minister Zweli Mkhize are the only nominees to lead the party. Cooperative Governance Minister Nkosazana Dlamini-Zuma, who narrowly lost to Ramaphosa in the contest to lead the ANC in 2017 and is among the president’s detractors, declined a nomination from the conference floor to run for the top post.

Deputy President David Mabuza also said he wasn’t available to be re-elected deputy party leader, leaving the position to be contested by Justice Minister Ronald Lamola, Eastern Cape Premier Oscar Mabuyane and ANC Treasurer-General Paul Mashatile. Mabuza’s decision means he’s unlikely to serve a second term as the nation’s deputy president. 

These are the candidates for the other top posts:

Secretary-General:

• Mdumiseni Ntuli, a former ANC secretary in the KwaZulu-Natal province
• Phumulo Masualle, the deputy minister of public enterprises
• Fikile Mbalula, the transport minister

Deputy Secretary-General:

• Nomvula Mokonyane, a former minister of environmental affairs
• Tina Joemat-Pettersson, a former energy minister

Second Deputy Secretary-General 

• Maropene Ramokgopa, a presidential adviser on international relations
• Ronalda Nalomanga, an ANC official from the Western Cape province

Chairperson:    

• Stanley Mathabatha, the premier of the Limpopo province
• Gwede Mantashe, the mineral resources and energy minister, and incumbent ANC chairman
• David Masondo, the deputy finance minister

Treasurer-General:

• Bejani Chauke, a special adviser to Ramaphosa
• Pule Mabe, the ANC’s spokesman
• Mzwandile Masina, a former mayor of the Ekurhuleni municipality
• Gwen Ramakgopa, a former deputy health minister

ANC Registers Delegates to Pick Leader (Dec. 17, 10 p.m.)

The ANC completed the registration of 4,426 voting delegates attending its conference.

Challenges that delayed the process included a new registration system, a poor computer network, faulty equipment and power cuts, the ANC’s credentials committee said in a report on Saturday. There were also late changes to some delegate lists and problems with tags and photos, it said.

The five-day conference is due to end on Dec. 20. 

ANC Membership Nosedives (Dec. 17, 9 p.m.)

The party’s membership has fallen sharply over the past two years, a decline that mirrors its waning support.

The ANC credential committee’s report shows the party has 691,381 paid-up members, down from 1.6 million in July 2020. 

“The sharp fall in membership numbers shows the general apathy toward the party and organizational disarray,” said Melanie Verwoerd, an independent political analyst and former ANC lawmaker. “The use of an electronic membership system by the ANC since its last national conference in 2017 also lends credence to suspicions then that membership numbers had been inflated.”

Godongwana Says Policy Shift Unlikely (Dec. 17, 8 a.m. )

Finance Minister Enoch Godongwana told business leaders attending a breakfast on the sidelines of the conference that ANC policy isn’t determined by the party’s leaders and won’t necessarily shift if power does change hands. He also said he’d be prepared to continue working with Ramaphosa or Mkhize.

“Unlike in the USA where the policy belongs to the president, policy belongs to the party, so irrespective of the change in government, the party will continue to pursue its policy,” Godongwana said. “I am not panicking an inch about who comes out.”

–With assistance from Paul Vecchiatto, Monique Vanek, Rene Vollgraaff and Paul Richardson.

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©2022 Bloomberg L.P.

(Bloomberg) —

Intel Corp. will delay construction of its planned German chip plant and is seeking more in government subsidies, Volksstimme reported, potentially jeopardizing Europe’s ambition of playing a bigger role in the semiconductor market.  

The US-based chipmaker earlier this year announced plans for a mega site worth €17 billion ($18 billion) in Magdeburg. Construction was set to begin by mid-2023, and the government planned to provide €6.8 billion in state aid.

The cost has now risen to €20 billion, according to Volksstimme. Intel no longer has a planned start date for construction and wants the German government to increase subsidies, according to the report Saturday. 

While Intel has not made any official announcements about a delay, it said in a statement Saturday that “much has changed” since the company disclosed plans to build in Magdeburg. “Geopolitical challenges have become greater, semiconductor demand has declined, and inflation and recession are disrupting the global economy,” according to the statement.

The company is monitoring the situation and “will pace these investments with the market,” it said. “We cannot predict the market recovery, but we do know it will recover as it always has in the past after a down cycle.”

Germany is planning to support Intel’s project “within the framework of the state aid requirements and the criteria of the European Chips Act,” a spokeswoman for the German economy ministry said. “The Federal government supports the European Union’s common goal of further expanding Europe’s share of the global semiconductor market.”

The EU has an ambitious goal of producing 20% of the world’s chips by 2030. The Chips Act is still moving through the legislative process but has already prompted a number of companies to make investments, of which Intel was the largest. High energy prices, a market downturn, and even subsidies from the US Inflation Reduction Act could threaten the plans.

–With assistance from Michael Nienaber.

(Updates with German economy ministry comments in the sixth paragraph.)

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.

(Bloomberg) — South Africa’s governing African National Congress is set to begin voting on Sunday morning for its top leaders.

Balloting was delayed for a day after the party struggled to complete the registration of delegates to its five-yearly conference taking place on the outskirts of Johannesburg. The results of the election are expected to be announced later on Sunday.

President Cyril Ramaphosa and former Health Minister Zweli Mkhize are the only nominees to lead the party. Cooperative Governance Minister Nkosazana Dlamini-Zuma, who narrowly lost to Ramaphosa in the contest to lead the ANC in 2017 and is among the president’s detractors, declined a nomination from the conference floor to run for the top post.

The Other Candidates for Top Positions (Dec. 18, 2:20 a.m.)

Deputy President David Mabuza also declined a nomination from the floor to be re-elected deputy party leader, leaving the position to be contested by Justice Minister Ronald Lamola, Eastern Cape Premier Oscar Mabuyane and ANC Treasurer-General Paul Mashatile. Mabuza’s decision means he’s unlikely to serve a second term as the nation’s deputy president.

There were no further nominations for chair of the party, leaving incumbent Gwede Mantashe, Deputy Finance Minister David Masondo and Limpopo Premier Stanley Mathabatha in the running for the post. There were also no proposals for alternative candidates for the secretary-general post. Former ANC KwaZulu-Natal provincial secretary Mdumiseni Ntuli, ex-Eastern Cape Premier Phumulo Masualle and Transport Minister Fikile Mbalula will compete for that position.

Bejani Chauke, a special adviser to Ramaphosa, ANC spokesman Pule Mabe and Mzwandile Masina, the former mayor of the Ekurhuleni municipality, will run for the position of treasurer-general, as will Gwen Ramokgopa, a former health minister in the central Gauteng province, who was nominated from the floor. 

Ex-Environment Minister Nomvula Mokonyane will stand against Tina Joemat-Pettersson, a former energy minister, for the position of first deputy secretary-general.

ANC Registers Delegates to Pick Leader (Dec. 17, 10 p.m.)

The ANC completed the registration of 4,426 voting delegates attending its five-yearly conference , a process that was dogged by a series of delays, clearing the way for its internal elections to proceed.    

Challenges included a new registration system, a poor computer network, faulty equipment and power cuts, the ANC’s credentials committee said in a report on Saturday. There were also late changes to some delegate lists and problems with tags and photos, it said.

The five-day conference is due to end on Dec. 20. 

ANC Membership Nosedives (Dec. 17, 9 p.m.)

The party’s membership has fallen sharply over the past two years, a decline that mirrors its waning support.

The ANC credential committee’s report shows the party has 691,381 paid-up members, down from 1.6 million in July 2020. Mabe estimated earlier on Saturday that there were about 1 million ANC members, but said the number was based on raw data that had to be refined.

“The sharp fall in membership numbers shows the general apathy toward the party and organizational disarray,” said Melanie Verwoerd, an independent political analyst and former ANC lawmaker. “The use of an electronic membership system by the ANC since its last national conference in 2017 also lends credence to suspicions then that membership numbers had been inflated.”

ANC Conference Resumes (Dec. 17, 2:30 p.m.)

Proceedings on Saturday got under way several hours later than planned. Mabuza presented reports on the state of the party during a closed session that took place a day later than scheduled.

A report was also due to be presented on the ANC’s finances, and additional nominations for leadership posts sought from the conference floor. 

Godongwana Says Policy Shift Unlikely (Dec. 17, 8 a.m. )

Finance Minister Enoch Godongwana told business leaders attending a breakfast on the sidelines of the conference that ANC policy isn’t determined by the party’s leaders and won’t necessarily shift if power does change hands. He also said he’d be prepared to continue working with Ramaphosa or Mkhize.

“Unlike in the USA where the policy belongs to the president, policy belongs to the party, so irrespective of the change in government, the party will continue to pursue its policy,” Godongwana said. “I am not panicking an inch about who comes out.”

–With assistance from Monique Vanek and Rene Vollgraaff.

More stories like this are available on bloomberg.com

©2022 Bloomberg L.P.