The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Philly Fed index rises slightly in October
The situation in US industry in the Philadelphia region brightened slightly in October. The Federal Reserve Bank of Philadelphia business index rose to minus 8.7 points from minus 9.9 in September. Economists polled by Dow Jones Newswires had expected an index reading of minus 5.0.
Initial US jobless claims down
The number of initial claims for US unemployment insurance benefits decreased in the week ended October 15. Compared to the previous week, the number of applications on a seasonally adjusted basis fell by 12,000 to 214,000, according to the US Department of Labor. Economists polled by Dow Jones Newswires had predicted a rise to 230,000.
DWS: ECB raises by 75 bp – focus on bank deposits
DWS economist Ulrike Kastens expects another one at the meeting of the European Central Bank (ECB). rate hike by 75 basis points and with first steps towards a balance sheet reduction. Further rate hikes are expected in the coming months, pushing the deposit rate above the estimated neutral rate of around 2.00 percent. The market is currently expecting an interest rate of 3.00 percent from summer 2023, writes Kastens in her outlook.
Scholz defends German stance EU summit
In the EU dispute over high energy prices, Chancellor Olaf Scholz (SPD) has once more defended the German position once morest criticism. “It is very clear that Germany has acted in a very solidary manner,” said the Chancellor on his arrival at the EU summit in Brussels. The federal government is relieving the burden on the citizens, he said, referring to the German “defense shield” of up to 200 billion euros. It is “exactly what France is doing, Italy is doing, what Spain is doing and many other countries.”
Macron: It’s ‘not good for Europe’ if Germany ‘isolates’
French President Emmanuel Macron has warned that Germany is “isolating” in Europe. “It is neither good for Germany nor for Europe if Germany isolates itself,” said Macron upon his arrival at the EU summit. Everything must be done to ensure that European unity is preserved, “and that Germany is part of it,” said Macron.
Habeck: Strategic raw materials policy must be in place in two years
Federal Economics Minister Robert Habeck (Greens) has called for the political framework for a strategic reorientation of German raw materials policy to be defined within the next two years. “All political tasks that are currently in progress, the structuring of aid programs and also a funding model or an agreement model for the development of domestic raw materials must be processed,” said Habeck at the Raw Materials Congress of the Federation of German Industries (BDI). .
Green leader Nouripour warns of port deal with China
Green leader Omid Nouripour has clearly criticized the planned Chinese entry into a container terminal in the port of Hamburg. “The sale of shares in the port of Hamburg to a Chinese company would be the repetition of a mistake,” Nouripour told the news portal T-Online. “We should learn from our fatal dependence on Russian fossils, not make ourselves more dependent. It’s not good for our economy or for our security.”
Bundestag decides on energy price flat rate for pensioners and pension recipients
The Bundestag has approved the energy price flat-rate for pensioners and pension recipients planned by the coalition to cushion the high energy prices. With a large majority, Parliament approved the draft law, which provides for pensioners to receive a one-off energy price allowance of 300 euros. Only the AfD abstained.
Bundestag votes for second heating cost subsidy for needy households
The Bundestag voted on Thursday for the payment of the second heating cost subsidy for needy households. The draft law of the coalition factions was approved in the evening with no dissenting votes. Accordingly, those entitled to housing benefit receive a one-time subsidy for the upcoming heating season, which is staggered according to the size of the household. Everyone who is entitled to housing benefit in at least one month in the period from September 1, 2022 to December 31, 2022 should benefit.
Bundestag passes law on the finances of statutory health insurance
Due to their record deficit, the statutory health insurance companies are financially supported with billions in grants and a higher additional contribution from the insured. The Bundestag passed the law to stabilize statutory health insurance (GKV), which is intended to increase the average additional contribution by 0.3 percentage points. The federal subsidy will increase by 2 billion euros.
Prime Ministers want to reach agreement with the federal government on November 2nd on disputed issues
The Prime Ministers’ Conference (MPK) is aiming for an agreement with Federal Chancellor Olaf Scholz (SPD) on November 2nd on the controversial financing issues between the federal and state governments. At the beginning of the two-day autumn conference of the MPK in Hanover, its chairman, Lower Saxony’s Prime Minister Stephan Weil (SPD), said that the state leaders wanted to prepare the talks with Scholz at the beginning of November together by Friday. There have to be decisions regarding this.
Truss announces resignation as British Prime Minister
British Prime Minister Liz Truss has announced her resignation less than two months following taking office. Earlier, a risky plan for tax cuts and spending increases had caused severe turmoil in the financial markets, forcing them to back down and eroding their political authority. The 47-year-old will be the shortest-serving prime minister in British history and the third leader of the Conservative Party to be ousted from office in just a few years.
Macron receives Scholz in Paris next Wednesday
French President Emmanuel Macron will receive Chancellor Olaf Scholz (SPD) in Paris next Wednesday. This was announced by the French presidential office on the sidelines of the EU summit. The top meeting is likely to be regarding clearing up differences in the energy and armaments sectors, among other things.
France, Spain and Portugal want new pipelines
France, Spain and Portugal have agreed to build a new underwater pipeline between Barcelona and Marseille. It should replace the previously planned pipeline with the Pyrenees called MidCat, it said in a joint statement. The new pipeline is part of a “green energy corridor” and will initially transport gas and later hydrogen.
EU imposes sanctions on Iran over drones in Ukraine
The European Union has imposed sanctions on suppliers of Iranian drones to Russia. The punitive measures once morest three individuals and one company were published in the official gazette. Kyiv has accused Russia of using Iranian-made drones to attack Ukrainian cities. While Kyiv welcomed the EU’s “rapid action,” Moscow criticized the West for “putting pressure” on Iran with the sanctions.
European Space Agency plans two missions with SpaceX rockets
The European Space Agency ESA is planning two scientific missions with Falcon 9 rockets from the private US space company SpaceX. The ESA probes “Euclid” and “Hera” are each to be launched into space by a Falcon 9 rocket.
+++ economic data +++
US/Median Existing Home Price Sep +8.4% yoy to $384,800
US/Unsold Home Inventory at 3.2 month supply
US/Existing Home Sales Sep FORECAST: 4.70M annual rate
US/Existing Home Sales Sep -1.5% to 4.71m yoy
US/Concurrent Indicators Index Sep +0.2% MoM
US/Index of Lagging Indicators Sep +0.6% m/m
US/Index Leading Indicators Sep -0.4% MoM
DJG/DJN/AFP/apo/sha
(END) Dow Jones Newswires
October 20, 2022 1:00 PM ET (5:00 PM GMT)
