OVERVIEW at noon/economy, central banks, politics

The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program

Russia speaks of “progress” in negotiations with Ukraine

According to the Foreign Ministry in Moscow, Russia is not aiming to overthrow the Ukrainian government. Foreign Ministry spokeswoman Maria Zakharova told journalists that “some progress had been made” in negotiations with government officials in Kyiv to settle the conflict. The Russian troops were not tasked with “overthrowing the current government”. “Parallel to the military special operation, negotiations are underway with the Ukrainian side to put an end to the senseless bloodshed and the resistance of the Ukrainian armed forces,” said Zakharova, referring to the three rounds of negotiations so far.

Kyiv and Moscow again agree on several escape corridors

Ukraine and Russia have again agreed to set up several evacuation corridors for civilians from particularly fiercely contested areas. As announced by Ukrainian Deputy Prime Minister Iryna Wereshchuk, a 12-hour ceasefire is to apply to these six evacuation routes on Wednesday until 9:00 p.m. local time (8:00 p.m. CET). Russia had announced the opening of the escape corridors a few hours earlier.

EU agrees on tougher sanctions against Russia and Belarus

In the Ukraine war, the EU states agreed on stricter sanctions against Russia and Belarus. As the French Council Presidency announced on Twitter, the new sanctions are aimed at other people responsible in Russia and at oligarchs “who are involved in the Russian aggression against Ukraine”. In addition, three Belarusian banks will be excluded from the Swift international payment system.

DWS: New EU fund could take pressure off the ECB

According to DWS economist Ulrike Kastens, the deliberations of the Council of the European Central Bank (ECB) on Thursday could be even more exciting than currently expected by market participants. “On the one hand, this has to do with the dilemma of very high inflation on the one hand and the need to take measures to support the economy, which may soon be the case,” she writes in a comment. On the other hand, there is also a discussion about a possible new EU fund to finance energy and defense spending, which could be discussed at the summit of EU heads of state and government in Versailles on Thursday.

Dekabank: ECB continues APP without end date

Dekabank analyst Kristian Tdtmann expects the Governing Council of the European Central Bank (ECB) to reconfirm the path of net bond purchases under the APP program decided in December and confirmed in February on Thursday. “The program remains open-ended as decided in December – but underlining the optionality,” he said. The ECB will make it clear – which it failed to do in February – that these plans could change.

MFS: ECB emphasizes uncertainties and inflation risks

According to the analysts at MFS Investment Management, the European Central Bank (ECB) will exercise caution and emphasize the uncertainties associated with the increased geopolitical risks. However, this will be offset by rising inflationary pressures and upwardly revised near-term inflation forecasts, experts say ahead of Thursday’s monetary policy meeting.

France’s economy minister compares energy crisis with 1973 oil crisis

France’s Economy Minister Bruno Le Maire compared the current energy crisis with the 1973 oil crisis. Both crises are comparable “in their intensity and brutality,” said Le Maire at the start of a conference on energy independence in Paris. He confirmed that the French government would continue to support those particularly affected by high energy prices.

IWH: Insolvency activity remains calm in February

According to the Leibniz Institute for Economic Research Halle (IWH), the number of insolvencies of partnerships and corporations in February was at the same level as in the same month last year. The current analysis by the institute shows that the number of jobs affected is still low. Any impact of Russia’s attack on Ukraine would not show up in bankruptcy numbers until April. According to the IWH insolvency trend, the number of insolvencies of partnerships and corporations in Germany was 702 in February, 17 percent more than in the previous month, but 2 percent below that of the same month last year.

Association: Energy crisis is making solar storage boom

The popularity of solar power storage increased significantly in Germany last year. The German Solar Industry Association (BSW) recorded an installation plus of around 60 percent compared to 2020. Under the impression of the Ukraine war and the associated energy crisis, a further increase in demand for solar technology and solar storage is currently being registered. According to the association, around 141,000 new home storage systems were installed in Germany in 2021. The estimated stock of solar power storage devices has thus increased to over 400,000 units.

Lauterbach and Buschmann agree on new infection protection law

Federal Minister of Health Karl Lauterbach (SPD) and Federal Minister of Justice Marco Buschmann (FDP) have agreed on far-reaching relaxation of the corona protection measures. From March 20, however, strict protective instruments should continue to be usable in hot-spot regions if necessary, as provided for in the draft of the new Infection Protection Act. “Opening everything is of course not intended,” said Lauterbach in the ZDF morning show. “Certain basic measures continue to apply.”

Biden to commission study on cryptocurrency risks

US President Joe Biden is set to sign an executive order on Wednesday directing federal agencies to investigate the potential risks posed by the explosion in cryptocurrency popularity and to consider creating a digital currency in the US. The executive order will urge federal agencies to review the risks the roughly $1.75 trillion crypto market poses to consumers, investors and the economy at large.

+++ economic data +++

US/MBA Market Index week ended Mar 4 +8.5% to 502.5 (previous week: 463.1)

US/MBA Purchase Index week ended Mar 4 +8.6% to 267.6 (previous week: 246.3)

US/MBA Refinance Index week ended Mar 4 +8.5% to 1,829.7 (previous week: 1,685.7)

Brazil Industrial Production Jan -2.4% MoM – IBGE

Brazil Industrial Production Jan -7.2% yoy – IBGE

Mexico Consumer Prices Feb +0.83% (PROG: +0.80%) m/m

Mexico Core Consumer Prices Feb +0.76% (PROG: +0.74%) m/m

DJG/DJN/AFP/apo

(END) Dow Jones Newswires

March 09, 2022 07:30 ET (12:30 GMT)

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