German federal budget proposal
Peer Steinbrück, the new German Finance Minister, has reportedly raised the prospect of placing the country’s federal budget for 2006 under the supervision of the European Commission. The news comes amid expectations that the European Union is set to take a harder line against the country for its failure to comply with the Stability and Growth Pact.
Gazprom forecasts lower prices
A senior executive of Gazprom, the Russian energy group, said that he foresees gas prices falling by up to a third. Alexander Medvedev, the company’s vice-chairman, said that prices, at present about $60 per barrel, would fall to trade at between $40 and $50 a barrel in the long term. He also said that gas would remain a key energy source.
Thai PM to sell stake in telecoms firm
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Thaksin Shinawatra, the Thai Prime Minister, is said to be poised to reveal a $1.8 billion (£1 billion) deal to sell his family’s stake in Shin Corporation, the telecoms group that he founded, to Temasek Holdings, the Singaporean investor. A deal, in which Temasek would gain control of 49 per cent of Shin Corporation, would confirm speculation that the parties have been in talks.
UBS cuts ties with clients in Iran
UBS, the Swiss banking group, is to cut its ties with clients in Iran because it sees the business as unattractive. A spokesman for the company said that uncertainty about security and regulatory matters was driving up costs in the country and meant that it was no longer worth continuing. He said that the decision had not been driven by political motives.