ROUNDUP 2/’It’s on fire’: Industry feels the consequences of dependencies
BERLIN – German industry with millions of employees sees itself increasingly burdened by the consequences of the Russian war of aggression in Ukraine and the corona pandemic. The Federation of German Industries (BDI) has drastically lowered its economic forecast for this year, mainly due to massive problems with the supply of raw materials.
OVERALL ROUNDUP: Positive EU signals for Ukraine – Moscow threatens Lithuania
BERLIN – Before EU summit there is broad support for the plan to give Ukraine and Moldova the status of EU accession candidates. Ukrainian President Volodymyr Zelenskyy once again made it clear that his country, which was attacked by Russia, belongs to Europe. From a Russian perspective, relations with the West are permanently damaged, as Kremlin spokesman Dmitry Peskov said.
US: Existing home sales fall for fourth straight month
WASHINGTON – Existing home sales in the US fell again in May. Compared to the previous month, the number of inventory sales fell by 3.4 percent, as the brokerage association National Association of Realtors (NAR) announced on Tuesday in Washington. It was the fourth decline in a row. Analysts had expected a slightly stronger minus of 3.7 percent.
ROUNDUP: Energy supply debate – LNG terminal for Lubmin
BERLIN – Federal and state governments are busy guaranteeing a secure energy supply and curbing energy prices. “Mecklenburg-Western Pomerania is ready to help when it comes to becoming independent of Russian oil and Russian gas,” said Prime Minister Manuela Schwesig on Tuesday after an external cabinet meeting of the state government in Berlin, which was also attended by Chancellor Olaf Scholz (both SPD) attended. Together with the federal government, it is being examined how oil can be transported from the port of Rostock to the refinery in Schwedt in northern Brandenburg and how liquid gas can get to Germany via Lubmin.
euro zone: Current account with larger deficit
FRANKFURT – The eurozone’s current account showed a deficit again in April. The deficit rose from around two billion euros in the previous month to around six billion euros, as the European Central Bank (ECB) announced in Frankfurt on Tuesday. The previous month’s deficit was the first since February 2012.
Merz for longer operating times for nuclear power plants in Germany
BERLIN – CDU leader Friedrich Merz has spoken out in favor of longer operating times for the three remaining nuclear power plants in Germany. This is technically possible and legally justifiable, said Merz on Tuesday at Industry Day in Berlin. It should be possible to let the three nuclear power plants run longer in order to supply Germany with sufficient energy. The nuclear reactors are supposed to go offline at the end of 2022.
EnBW will buy liquid gas from the USA from 2026
KARLSRUHE/ARLINGTON – The Karlsruhe-based energy supplier EnBW wants to purchase 1.5 million tons of liquid gas (LNG) from the USA every year from 2026. The energy group and the company Venture Global LNG from Arlington in the US state of Virginia informed on Tuesday about the conclusion of supply contracts with a term of 20 years. “This is the first direct, binding off-take agreement for long-term US LNG signed by a German company and an important step that illustrates the German strategy to diversify the energy mix,” said Venture Global boss Mike Sabel according to the announcement.
Biggest British rail strike in around 30 years has begun
LONDON – The most far-reaching rail strike in Britain has begun in around 30 years. Many usually busy stations were almost deserted on Tuesday morning as only around a fifth of the trains were scheduled to run, the PA news agency reported. Tens of thousands of railway workers are striking for higher wages and better working conditions. They wanted to stop work not only on Tuesday, but also on Thursday and Saturday. London Underground workers also went on strike on Tuesday.
Ifo: Establishments by the authorities hardly attract any new workers
DRESDEN – According to the opinion of the Ifo Institute, settlements with authorities are only partially suitable for reviving structurally weak regions. Only rarely would this attract new workers who could trigger additional economic stimuli, the Ifo Dresden branch announced on Tuesday. However, jobs would be created for the population already living in a region. The Ifo presented the corresponding study results on behalf of the Federal Institute for Research on Building, Urban Affairs and Spatial Development.
Customer Note:
ROUNDUP: You are reading a summary in the business cycle overview. There are several reports on the dpa-AFX news service on this subject.
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