The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program.
ECB: Corporate lending will accelerate in July
Lending growth to firms in the euro area accelerated in July. According to information from the European Central Bank (ECB), lending to non-financial companies rose at an annual rate of 7.7 (June: 6.9) percent. The volume of loans granted to private households grew by 4.5 (4.6) percent, including loans for house purchases by 5.3 (5.4) percent and consumer loans by 3.3 (3.4) percent.
Automaker thanks to high prices with record sales in sales slump – study
According to an analysis by the consulting company EY, the special boom in the automotive industry triggered by the chip crisis is continuing for the time being: The 16 largest car companies in the world were able to increase their total sales by 13 percent in the second quarter – although the number of cars sold fell by 10 percent compared to the same period last year. The car companies continue to benefit from high prices. However, according to EY, the times of “dream margins” seem to be over: The average margin of the companies examined is 7.9 percent, significantly worse than in the same period last year (9.8 percent) and only slightly above the pre-pandemic level (average 2013 -2019: 6.7 percent).
Coalition increases pressure on Habeck to improve the gas levy
In the traffic light coalition, there is growing pressure on Federal Economics Minister Robert Habeck (Greens) to make changes to the planned gas levy. The SPD leader Saskia Esken renewed her call for improvements in the ZDF morning show on Friday in order to exclude unauthorized companies from the aid. Federal Finance Minister Christian Lindner (FDP) did not rule out corrections on Thursday evening in the ZDF program “Maybritt Illner”. Because the intention of the levy is that the gas surcharge is not intended to save any corporations, but to protect consumers.
Ministry: gas surcharge necessary – check changes in details
The Federal Ministry of Economics is basically sticking to the gas surcharge and is only examining possible changes in the criteria for claiming the controversial levy. A spokeswoman explained that, if legally possible, they wanted to make adjustments to exclude financially sound companies from the levy. “The surcharge itself is necessary to keep the gas markets running and to continue to guarantee the supply of gas for all customers. Of course, it was checked in advance whether there were other instruments. Now it is being examined how this surcharge can be adjusted in a legally secure way that you can make it harder for companies with profits,” explained ministry spokeswoman Katharina Grave.
Heil apparently wants to lift additional income limits for early retirees
Federal Labor Minister Hubertus Heil (SPD) apparently wants to remove the additional earnings limits for all employees who still work part-time after early retirement. According to a report in the Frankfurter Allgemeine Zeitung, this emerges from a draft by the Ministry of Labour. The project is therefore to be decided shortly by the Federal Cabinet together with other social law changes.
The Federal Cabinet meets Tuesday and Wednesday for a retreat in Meseberg
The federal cabinet will meet on Tuesday and Wednesday for a closed conference at Meseberg Castle. According to government spokesman Steffen Hebestreit, the focus of the meeting will be on the national security strategy, security of energy supply and vocational training.
Transport ministers of the federal states are calling for billions in aid for local public transport
In view of skyrocketing energy costs, the transport ministers of the federal states are calling for the federal government to contribute more to the costs of local public transport, running into the billions. The funds would have to be increased by 3.15 billion this year and next and then by 1.5 billion euros annually, the ministers said on Friday after a special video conference. The current financing of public transport by the federal government is insufficient.
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(END) Dow Jones Newswires
August 26, 2022 07:30 ET (11:30 GMT)