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G7 rejects Russian demand for energy payments in roubles

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Vitality ministers of the G7 group of main economies rejected Vladimir Putin’s demand on Monday that Russian fuel ought to be paid for in roubles in a stand-off that’s elevating new doubts concerning the gasoline’s provide to Europe.

The officers unanimously rejected the Russian president’s requires “unfriendly” nations to pay for fuel imports in roubles as an alternative of currencies equivalent to euros and {dollars}, Robert Habeck, Germany’s economics and power minister, instructed journalists on Monday in Berlin.

The assertion raised the potential for fuel provides to Europe being minimize off ought to the 2 sides be unable to agree on a fee forex. Habeck stated G7 nations had been “ready” for “all situations”, together with a possible halt to Russian power provides.

Putin introduced final week that Moscow would start to bill European fuel patrons in roubles, Russia’s newest response to unprecedented western sanctions imposed in a bid to punish him for the invasion of Ukraine.

Habeck — who was talking after a digital assembly with ministers from the US, UK, France, Japan, Italy and Canada — stated: “All G7 ministers completely agreed that [requiring payment in roubles] could be a transparent and unilateral violation of current contracts.”

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Western corporations usually agree long-term provide agreements for Russian fuel imports and it stays unclear how Moscow will attempt to implement any change in fee forex. Analysts stated most agreements had been negotiated in worldwide currencies and it was unlikely they contained clauses to permit for funds in roubles.

European importers of pure fuel, together with France’s Engie and Austria’s OMV, have stated that offer contracts don’t embody clauses that enable for fee in roubles. They stated they intend to proceed paying in euros or {dollars} as specified of their current offers.

Habeck stated Putin’s transfer to invoice Russian power in roubles confirmed that he “has his again to the wall” as a result of sanctions had been significantly harming the Russian economic system.

Laurent Ruseckas, govt director of fuel in Europe, Center East and Africa at S&P World, stated the EU and Russia had been engaged in brinkmanship over the circulation of fuel provides. If the EU had been to introduce a regulation towards paying in roubles, then “both somebody blinks, otherwise you go into pressure majeure”, that means fuel provides to Europe could be minimize off.

If Russian regulation mandates fee in roubles, state-owned corporations equivalent to Gazprom — Russia’s greatest fuel provider — must provoke discussions on modifying contracts. That might create an opportunity for European utilities to hunt to renegotiate contract lengths and provide volumes, business executives say.

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Ruseckas stated Russia gave the impression to be adopting an “orderly” method to switching the fee forex for fuel bought by “unfriendly” nations, although few indicators had been rising of patrons being able to comply with none concessions.

Officers from Gazprom, the federal government and the central financial institution will report back to Putin on Thursday on the best way to implement plans to transform funds into roubles, in keeping with Interfax.

European fuel costs had been comparatively regular on Monday with Entrance-month futures contracts tied to TTF, Europe’s wholesale fuel worth, rising as a lot as 10 per cent to €109 per megawatt hour, earlier than easing again.

Analysts stated costs would most likely have dropped with out the uncertainty over fee phrases as a result of Europe had considerably replenished its fuel storage ranges over the weekend, lifting them to nearly double the low they hit in 2018.

The EU has prevented sanctioning power imports from Russia instantly. Nonetheless, European power patrons might battle to discover a financial institution compliant with sanctions to transform euros to roubles. The EU might additionally reply with its personal sanctions to stop exchanges of euros into roubles.

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Germany unveiled targets final week to chop dependence on Russian power quickly, vowing to all however wean itself off the nation’s fuel by mid-2024 and turn into “just about unbiased” of its oil by the top of this yr.

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NYSE trading glitch costs Interactive Brokers $48mn

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NYSE trading glitch costs Interactive Brokers $48mn

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A trading glitch on the New York Stock Exchange earlier month has cost Interactive Brokers $48mn after its customers tried to pile into Berkshire Hathaway shares following a 99 per cent plunge.

The brokerage on Wednesday said it was considering its options “including any claims at law it could assert against NYSE” but said the hit was not material to earnings.

Berkshire Hathaway’s class A shares were among several that plummeted unexpectedly on June 3 because of a technical issue in early trade on the NYSE, which is part of Intercontinental Exchange.

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Berkshire’s shares collapsed from about $622,000 to $185 a share before the exchange halted trading.

The price plunge spurred a raft of buy orders during the halt, “presumably expecting those orders to be filled at approximately $185/share when trading resumed”, Interactive said.

The broker, founded by electronic trading pioneer Thomas Peterffy, is popular with retail investors as well as professional traders such as hedge funds.

When trading resumed almost two hours later Berkshire’s shares shot as high as $741,941 within minutes, leading Interactive’s customers to have their orders filled “at various prices during this run-up, including some who were filled at the peak price”.

After markets closed on June 3, NYSE said it would “bust” or cancel, all trades at or below $603,718.3 conducted before trading was halted.

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The loss stems from Interactive Brokers’ decision to take over a substantial portion of the trades through its platform “as a customer accommodation” after NYSE on the day told the brokerage that it would not cancel Interactive’s deals as the broker had asked.

NYSE on Tuesday denied Interactive’s subsequent claims for compensation, spurring Wednesday’s notice. NYSE declined to comment.

About 40 securities in total were affected by the June 3 episode, including Barrick Gold and restaurant chain Chipotle. The exchange said the glitch stemmed from a technical issue with price bands published by the group that consolidates the trading data from all the US securities exchanges, known colloquially as the “tape”.

Shares in Interactive Brokers were unaffected by Wednesday’s news, trading up 0.5 per cent by late morning on Wednesday and up about 48 per cent this year.

In 2020 the brokerage lost up to $88mn from the collapse in value of short-term WTI oil futures contracts when it stepped in to pay margin calls owed to clearing houses for customers caught on the wrong side of the trade.

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Congress poured billions of dollars into schools. Did it help students learn?

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Congress poured billions of dollars into schools. Did it help students learn?

Two new studies offer a first look at how much more students learned thanks to federal pandemic aid money.

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Blend Images – JGI/Jamie Grill/Tetra images RF/Getty Images

America’s schools received an unprecedented $190 billion in federal emergency funding during the pandemic. Since then, one big question has loomed over them: Did that historic infusion of federal relief help students make up for the learning they missed?

Two new research studies, conducted separately but both released on Wednesday, offer the first answer to that question: Yes, the money made a meaningful difference. But both studies come with context and caveats that, along with that headline finding, require some unpacking.

How much of a difference did the money make?

$190 billion is an enormous amount of money by any measure. But districts were only required to spend a fraction of the relief on academic recovery, by paying for proven interventions like summer learning and high-quality tutoring. So how much additional student learning did the federal aid actually buy?

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Study #1, a collaboration including Tom Kane at Harvard’s Center for Education Policy Research and Sean Reardon at Stanford’s Educational Opportunity Project, estimates that every $1,000 in federal relief spent per student bought the kind of math test score gains that come with 3% of a school year, or about six school days of learning. That’s during the 2022-23 academic year.

Improvements in reading scores were smaller: roughly three school days of progress per $1,000 in federal relief spending per student.

The federal relief “was worth the investment,” Reardon tells NPR. “It led to significant improvements in children’s academic performance… It wasn’t enough money, or enough recovery, to get students all the way back to where they were in 2019, but it did make a significant difference.”

Study #2, co-authored by researcher Dan Goldhaber at the University of Washington and American Institutes for Research, offers a similar estimate of math gains. The increase in reading scores, according to Goldhaber, appeared comparable to those math gains, though he says they’re less precise and a little less certain.

“It did have an impact,” Goldhaber tells NPR, an impact that’s “in line with estimates from prior research about how much money moves the needle of student achievement.”

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Who benefited the most?

The federal recovery dollars came in three waves, known as ESSER (Elementary and Secondary School Emergency Relief Fund) I, II and III. The first two waves were relatively small, roughly $68 billion, compared to the $122 billion of ESSER III.

The windfall was distributed to schools based largely on need – specifically, based on the proportion of students living in or near poverty. The assumption being: Districts with higher rates of student poverty would need more help recovering. COVID hit high-poverty communities harder, with higher rates of infection, death, unemployment and remote schooling than in many affluent communities.

“These and other factors likely caused greater learning loss during the pandemic and dampened academic recovery,” Goldhaber writes in Study #2, pointing out that, “the Detroit, MI public school district received about $25,800 per pupil across all waves of ESSER… [while] Grosse Pointe, MI (a nearby suburb) only received about $860 per pupil.”

Here’s where the story of these federal dollars gets complicated, because the learning they appear to have bought wasn’t experienced evenly, according to Goldhaber.

In Study #2, he and co-author Grace Falken, found larger academic benefits from federal spending in districts serving low shares of Black and Hispanic students. Though he tells NPR, these patterns “do not necessarily imply that ESSER’s impacts vary because of student demographics. Rather, the results could reflect other district characteristics that happen to correlate with the student populations the districts serve.”

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Reardon and Kane did not find statistically significant evidence of this kind of variation.

Goldhaber and Falken also found that towns saw more math gains than cities, while rural areas led the way in reading growth. Interestingly, suburban districts generally experienced “smaller, insignificant impacts” from the federal spending in both subjects.

But did the money help enough?

If your standard for “enough” is a full recovery for all students from the learning they missed during the pandemic, then no, the money did not remedy the full problem.

But the researchers behind both studies say that’s an unrealistic and unreasonable yardstick. After all, Congress only required that districts spend at least 20% of ESSER III funds on learning recovery. The rest of the relief came with relatively few strings attached.

Instead, the researchers say, the money’s effectiveness should be judged by a more realistic standard, based on what previous research has shown money can and cannot buy.

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Harvard’s Tom Kane, of Study #1, points out that their results do line up with pre-pandemic research on the impact of school spending, and suggest a clear, long-term return on investment.

“These academic gains will translate into improvements in earnings and other outcomes that will last a lifetime,” Kane tells NPR.

For example, the academic gains associated with every $1,000 in per student spending would be worth $1,238 in future earnings, Kane estimates. Increased academic achievement also comes with valuable social returns, he says, including lower rates of arrest and teen motherhood.

What’s more, Reardon tells NPR, because these federal dollars disproportionately went to lower-income districts, “not only do we find that the federal investment raised test scores, but we also find that it reduced educational inequality.”

But the work’s not over.

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In Study #2, Goldhaber and Falken write, “to recover from these remaining losses, our estimates suggest schools would need between $9,000 and $13,000 in additional funds per pupil, assuming the return on those funds is similar to what we estimated for ESSER III.”

They also warn that middle-income districts could continue to struggle – because they experienced academic losses but got less federal aid.

In a presidential election year, it’s unlikely Congress will agree to send schools more money. And Goldhaber worries, as ESSER funds begin to expire this year, districts will have to cut staff.

“Some districts, particularly high poverty, high minority districts, are going to lose so much money that I think teacher layoffs are inevitable,” Goldhaber tells NPR. “So I’m worried that the funding cliff – there’s a downside that we’re not thinking hard enough about.”

The good news, says Kane, is that ESSER was a massive, “brute force” effort, and a far smaller, state-driven effort could still make a big difference, so long as it’s hyper-focused on academic interventions.

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Kane says, “It falls to states to complete the recovery.”

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Atos crisis deepens as biggest shareholder ditches rescue plan

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Atos crisis deepens as biggest shareholder ditches rescue plan

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A rescue bid for French IT services group Atos led by its largest shareholder has collapsed, casting the future of the troubled group into doubt once again.

Atos said on Wednesday that the consortium led by Onepoint, an IT consultancy founded by David Layani, had withdrawn a proposal that would have converted €2.9bn of Atos debt into equity and injected €250mn of fresh funds into the struggling company.

“The conditions were not met to conclude an agreement paving the way for a lasting solution for financial restructuring,” Onepoint said in a statement on Wednesday.

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The decision by Onepoint comes less than a month after Atos had picked its restructuring proposal over a competing plan from Czech billionaire Daniel Křetínsky. Atos said on Wednesday that Křetínsky had already indicated he wanted to restart talks.

Once a star of France’s tech scene, Atos is racing to strike a restructuring deal by next month as it struggles under its €4.8bn debt burden. It has cycled through multiple chief executives over the past three years and its shares have collapsed. They were down 12 per cent in early trading on Wednesday.

Atos also said it had received a revised restructuring proposal from a group of its bondholders.

“Discussions are continuing with the representative committee of creditors and certain banks on the basis of this proposal with a view to reaching an agreement as soon as possible,” the company said. 

Jean-Pierre Mustier, former chief executive of Italian lender UniCredit, was installed as chair in October 2023 and given the task of putting Atos on a stable footing for the future. Since his appointment, several efforts to stabilise Atos through asset sales have fallen apart.

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If talks with Křetínsky do restart, it will mark the Czech businessman’s third attempt to do a deal with Atos after an earlier plan to buy its lossmaking legacy business unravelled.

One of the people close to the talks said creditors had not necessarily become more receptive to Kretinsky’s plan given it cutting a larger chunk of the group’s debt.

The crisis at Atos has prompted the French government to intervene. It is currently seeking to acquire three parts of Atos that are deemed of importance to national security for up to €1bn.

Atos said on Wednesday it had concluded a deal with the French state that would give it so-called “golden shares” in a key Atos subsidiary, Bull SA. The agreement also gives the government the right to acquire “sensitive sovereign activities” in the event a third party acquired 10 per cent of the shares — or a multiple thereof — in either Atos or Bull.

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