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EU to keep its borrowing limits suspended in 2022, restore them in 2023 By Reuters

BRUSSELS (Reuters) - The European Commission will keep borrowing limits for European Union governments suspended for the third year in a row in 2022 to help finance an economic recovery from the pandemic, but expects to restore them in 2023, it said on Wednesday. Through its Stability and Growth Pact, the 27-nation EU aims to keep budget deficits below 3% of GDP and public debt below 60% of GDP. But these rules were put on hold in March 2020 as Europe was hit by the coronavirus pandemic that caused the biggest recession since the Second World...

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Huawei launches new operating system for phones, eyes ‘Internet-of-Things’ market By Reuters

By David Kirton SHENZHEN, China (Reuters) - China's Huawei Technologies announced the launch of its proprietary Harmony operating system (HarmonyOS) for smartphones on Wednesday, as the embattled company looks to recover from U.S. sanctions that have hobbled its handset business. Huawei will start rolling out HarmonyOS on certain models of its smartphones from Wednesday evening, offering users the chance to switch from the current operating system that is based on Google's Android platform. The use of HarmonyOS means the company will no longer be wholly reliant on Android. U.S. sanctions banned Alphabet (NASDAQ:GOOGL) Inc's...

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Germany to build up reserve vaccine capacity to fight future pandemics By Reuters

BERLIN (Reuters) - Germany plans to pay vaccine manufacturers an annual reservation fee to build up reserve capacity of 600-700 million doses per year to help it fight future pandemics, Health Minister Jens Spahn said on Wednesday. The government plans to launch a call for tenders for so-called pandemic preparedness contracts with a five-year term, he told a news conference. "We in the government have agreed that we want to provide capacity for production of vaccines in and for Germany," Spahn said, adding this could be activated very quickly so that vaccine production could start...

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Russia says Nord Stream 2 testing work to start next week -TASS By Reuters

MOSCOW (Reuters) - Testing work on Russia's Nord Stream 2 gas pipeline to Germany will start next week, Alexander Drozdenko, governor of the Leningrad region where the pipeline starts, was cited as saying by the TASS news agency on Wednesday. The United States last month waived sanctions on the company behind the pipeline to Germany and its chief executive, a move decried by critics of the project in the U.S. Congress, but welcomed this week by the Kremlin. The project, led by Gazprom (MCX:GAZP) with its Western partners, aims to deliver Russian gas to Germany...

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ECB’s Knot: Dutch, European, world economies recovering quicker than expected By Reuters

AMSTERDAM (Reuters) - The head of the Netherlands' Central Bank Klaas Knot said on Wednesday the Dutch economy is recovering more quickly than expected from the economic crisis caused by the coronavirus pandemic. "We are completely positive at the Dutch Central Bank about the prospects for the Netherlands' economy, and that's also true for the European economy, and also the world economy seems to be recovering faster than we expected," Knot said in testimony to a panel in Dutch parliament. Knot is also a member of the European Central Bank. ...

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UN tribunal for Lebanon may close after July due to financial crisis By Reuters

THE HAGUE (Reuters) - A U.N. tribunal set up to prosecute those behind the 2005 assassination of Lebanese Prime Minister Rafik Hariri and related cases said on Wednesday it will have to close after July if it is unable to resolve an acute funding shortage. "The Special Tribunal for Lebanon (STL) regrets to announce that it is facing an unprecedented financial crisis. Without immediate funding, the Tribunal will not be able to operate beyond July 2021," it said in a statement. An exclusive report by Reuters last week revealed the tribunal, which is funded 51%...

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Exclusive: Brazil probes U.S. oil trader Freepoint in alleged bribery scheme By Reuters

By Gram Slattery and Sabrina Valle RIO DE JANEIRO (Reuters) - Authorities in Brazil are investigating senior employees at Connecticut-based trading house Freepoint Commodities for their alleged role in a bribery scheme involving state-run oil company Petrobras, Reuters has learned. Federal police here suspect Freepoint, through an intermediary, routed bribes to Petrobras employees for a roughly seven-year period ending in 2018. Reuters pieced together the purported kickback operation from three people close to the investigation, who spoke on the condition of anonymity, and hundreds of pages of previously unreported court documents filed by Brazilian investigators. At...

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Musk Says Panic-Buying of Chips Is Like Rush on Toilet Paper By Bloomberg

(Bloomberg) -- Elon Musk said the chip shortage is wreaking havoc on Tesla (NASDAQ:TSLA) Inc.’s supply chain and blamed companies ordering more microcontrollers than they need, much like consumers hoarded toilet paper in the early days of the pandemic. “Our biggest challenge is supply chain, especially microcontroller chips. Never seen anything like it,” the chief executive officer tweeted Wednesday. “Fear of running out is causing every company to overorder – like the toilet paper shortage, but at epic scale.” Musk, 49, said during Tesla’s first-quarter earnings call in April that the chip shortage was a...

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Canadian banks seek return of reluctant business borrowers as mortgage growth set to slow By Reuters

By Nichola Saminather TORONTO (Reuters) - Even as Canadian businesses prepare to reopen gradually this summer after a year of intermittent lockdowns, banks are wary about the prospects of a fast uptick in credit growth as an economic recovery remains patchy and cautious commercial clients hold on to record amounts of cash hoarded during the pandemic. Canada's top six banks - Royal Bank of Canada, Toronto-Dominion Bank, Bank of Nova Scotia, Bank of Montreal, Canadian Imperial Bank of Commerce and National Bank of Canada - have emerged relatively unscathed from the pandemic, thanks to government...

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Counter inflation with rate hike, Bavarian minister urges ECB By Reuters

BERLIN (Reuters) - Higher inflation is compounding the plight of savers and the European Central Bank should respond by raising its interest rates from 0%, Bavaria's finance minister, Albert Fueracker, told daily Bild in comments published on Wednesday. Germany's annual consumer price inflation accelerated in May, advancing further above the ECB's target of close to but below 2%, the Federal Statistics Office said on Monday. Consumer prices, harmonised to make them comparable with inflation data from other European Union countries, rose by 2.4% in May, up from 2.1% in April. "Germany is a country of...

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