World Street | War shadow on Suez shipping, EV tycoon's oil backing, Russia's crude threat, Germany in red for green

World Street offers a sneak peek into the world of business and economy.

Taking stock of global affairs and market dynamics, Russia plans to slash oil production after the OPEC+ meeting. Abu Dhabi will find a safe port in Turkey, while electric vehicle icon Elon Musk extends support for oil and gas. Activision Blizzard ponies up $55 million to settle a case accusing it of discrimination. All this and more on December 18 edition of World Street.

Supply Chain Setback

Two major freight firms, including the world's biggest container shipping line MSC, said they would avoid the Suez Canal as Houthi militants in Yemen stepped up their assaults on commercial vessels in the Red Sea. Yemen's Iranian-backed Houthi movement has been attacking vessels in response to the Gaza war on a route that allows East-West trade, especially of oil, to use the Suez Canal to save the time and expense of circumnavigating Africa. War risk insurance premiums have risen as a result.

Narrative Violation

The chief executive of Swiss banking giant UBS, Sergio Ermotti, said he is not convinced central banks have got inflation under control. Federal Reserve chair Jerome Powell said last week that interest-rate increases were likely over in the US and lower rates were coming into view.

From Russia with Love

Russia said on Sunday it would deepen oil export cuts in December by potentially 50,000 barrels a day or more from what it had promised earlier. Saudi Arabia and Russia, the world's two biggest oil exporters, called in all OPEC+ members to join an agreement on output cuts after a fractious meeting of the producers' club.

Safe Harbour

Abu Dhabi is set to buy a stake in a key Turkish port in a further sign of a rapprochement between the once bitter geopolitical rivals. Under the potential agreement, state-controlled AD Ports Group would invest in an entity to be established by the Turkey Wealth Fund to run the Aegean coast port of Izmir, reports Reuters.

China Tightens Noose 

China on Sunday published rules that come into force on May 1 for the supervision and management of non-banking payment institutions. The rules, among other measures, implement tougher licensing regulations and call for stronger risk management of non-bank payment platforms to prevent misappropriation of funds and other criminal activities.

Musk’s Musings

Oil and gas should not be demonised in the medium-term, said Elon Musk, the founder of electric car maker Tesla, but added that it was also important to reduce carbon emissions to preserve the planet. Musk, speaking at a right-wing political gathering organised by Italian Prime Minister Giorgia Meloni's Brothers of Italy party, said: "Climate change alarm is exaggerated in the short term."

Game Over

Activision Blizzard settled a case from a California state agency, which accused the video game maker of sexual harassment and discrimination against women. Activision will pay around $55 million, with $46 million going to the fund for the female employees affected.

Charged Up

News reports suggest that the Canadian government is on the brink of implementing regulations that mandate that all newly sold vehicles in the country must be zero-emissions by 2035. The federal government is expected to unveil the Electric Vehicle Availability Standard, in an attempt to gradually eliminate the sale of new combustion vehicles, Bloomberg reported.

Pump the Brakes

Germany ended electric vehicle subsidies, which will impact major automakers like Tesla, Volkswagen, BMW and Stellantis. The government, facing a budget crisis, stopped the "environmental bonus" programme earlier than planned. The earlier subsidy of €4,500 has been stopped. Earlier, the plan was to offer a reduced rate of €3,000, but it is now nullified.