Economy

ECB Ready to Act: “We Will Do Whatever It Takes”

The European Central Bank will not let the Iran War do the same damage to the economy as the energy crisis did in 2022. This is what President Christine Lagarde says, according to Bloomberg, after the market suddenly began to price in interest rate hikes from the central bank.

– We will do whatever it takes to ensure that inflation is under control, she says.

The ECB will issue its next interest rate decision next week.

– We will not rush a decision because there is too much uncertainty and too much volatility, says Lagarde. 

The small island is vital to Iran – yet the US leaves it untouched

The Iran War has been going on for over ten days and the US has attacked 5,000 targets. But despite this, Kharg, the small Iranian oil island where 90 percent of Iran's oil passes, has so far been completely safe from attacks. This is noted by The Guardian, AFP and Al Jazeera today.

The Guardian asks why Iran's single most important economic location is holding up. Experts say the island is simply too important for global energy supplies.

- The oil price of $ 120 per barrel that we saw on Monday could rise to $ 150 if Kharg were to be attacked, says Neil Quilliam at the think tank Chatham House.

This weekend, Axios reported, citing sources, that the United States is considering sending special forces to take control of the island. It would be extremely risky and risks leading to even greater disruptions to the economy, and even worse counterattacks from Iran, experts tell AFP.

Tech billionaires flee California for Florida

Tech billionaires in California such as Mark Zuckerberg, Larry Page and Sergey Brin are buying up real estate in Florida at an unprecedented rate, reports the Los Angeles Times.

The reason is a proposal for a five percent tax on billionaires in California. The proposal and the desire for a referendum are being pushed by a large union and supported by some progressive left-wing politicians.

The tax proposal has created great pressure on the “Gold Coast of Florida” and as the huge sums flow in, the state’s economy is changing. Prices are skyrocketing and the pressure is increasing on private schools, private chefs and golf courses. At the same time, the state has long cherished a dream of becoming a real rival to Silicon Valley.

California’s governor and top Democrat Gavin Newsom has called the tax proposal “very harmful” and has promised to try to stop it. 

EU may impose price caps on gas

The EU is considering imposing a price cap on gas to curb energy prices that are rising as a result of the war in Iran.

– We are preparing alternatives: better use of purchasing power parity agreements, state aid measures and subsidies or even a price cap on gas, says EU Commission President Ursula von der Leyen in a debate in the EU Parliament, according to TT.

She also says that the war shows that the EU must reduce its dependence on fossil fuels and instead invest more in its own and alternative energy sources.