The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
IAB labor market barometer points to trend reversal in December
The IAB labor market barometer rose again in December after a long phase of weakening. The leading indicator climbed by 0.3 points to 100.9 points and was thus above the neutral mark of 100 points, as reported by the Institute for Labor Market and Occupational Research (IAB). However, the downward trend continued at the European level. At 99.5 points, the indicator was slightly below the neutral mark. “After the prospects on the job market had steadily weakened since the spring, things are now slowly picking up again,” said Enzo Weber, head of the IAB forecast department.
ECB: Corporate lending growth slowed in November
Lending growth in the euro area to firms moderated in November. According to information from the European Central Bank (ECB), lending to non-financial companies only increased at an annual rate of 8.4 (October: 8.9) percent. The volume of loans extended to private households grew by 4.1 (4.2) percent, including loans for home purchases by 4.6 (4.8) percent and consumer loans by 3.0 (3.3) percent. Percent.
Government: Supply chain law is easy to implement for business
The Federal Government has defended the Supply Chain Act, which will come into force at the turn of the year, against criticism from business and emphasized that it is easy for companies to implement. “The people in the supply chains, the companies and also the consumers benefit from the supply chain law,” said Federal Labor Minister Hubertus Heil (SPD) of the Funke media group. “Because the law gives them legal certainty and a reliable basis for action for sustainable supply chain management with an even stronger focus on fair manufacturing conditions.”
German companies are preparing for recession – survey
According to a survey by the trade credit insurer Atradius, Germany’s entrepreneurs are looking to 2023 with concern. According to this, the majority of German companies are expecting a recession in the coming year. In addition to inflation and energy costs, the shortage of skilled workers is increasingly worrying German companies. According to the study, 48 percent of those surveyed expect economic stagnation in the coming year. 44 percent were preparing for a recession. German companies in particular in the construction, chemical, agricultural, metal and paper sectors were preparing for a challenging year.
Housing industry calls for correction of construction targets
The housing industry has asked the federal government to issue more realistic construction targets. “We are currently no longer able to create affordable housing in Germany,” said the President of the Federal Association of German Housing and Real Estate Companies (GdW), Axel Gedaschko, to the Rheinische Post. Material shortages, supply chain problems, an explosion in material costs and an extreme rise in interest rates would quickly add to the energy crisis. According to internal surveys, around 70 percent of all planned projects are either canceled completely or at least postponed for a long time.
CDU, FDP and industry criticize plans to expand renewables
Politicians from the Union and FDP as well as the German Chemical Industry Association (VCI) consider the federal government’s plans to expand renewable energy sources to be unrealistic. “Habeck’s plans are doomed to failure,” said the energy policy spokesman for the CDU/CSU, Mark Helfrich, of the Bild newspaper. “An acceleration of the expansion of the desired magnitude by 2030 is absolutely unrealistic as of today,” he explained. “In order to reduce emissions, we in Germany should re-discuss the phase-out sequence,” demanded the FDP’s energy policy spokesman, Michael Kruse.
Doctors President: Don’t ban investors from buying doctors’ offices
Doctors President Klaus Reinhardt has asked Federal Health Minister Karl Lauterbach (SPD) not to generally prohibit the purchase of medical practices by financial investors. “We have to look at it differently,” Reinhardt told the editorial network Germany.
EU Commission believes in the legality of excess profit tax
In view of the lawsuit filed by the US group Exxon Mobil against the collectively agreed excess profit tax, the EU Commission has reaffirmed its conviction that the tax is legal. “The Commission maintains that the measure in question is fully in line with EU law,” a spokeswoman for the Brussels authority told the AFP news agency on Wednesday evening. “It is now for the court to rule on this case.”
EPP boss Weber wants corona tests to be compulsory for travelers from China
Manfred Weber, party and parliamentary group leader of the European People’s Party (EPP) and CSU vice, immediately calls for mandatory tests for travelers from China throughout the European Union. “There is an immediate need for a joint test requirement in the EU for people entering the country from China,” said Weber of the Bayern media group. “In an open Europe, it makes absolutely no sense to only test in one country.” So far, only Italy has been the only European country to introduce such a mandatory corona test.
Ukraine reports Russian missile attacks across the country
The Ukrainian military has reported “massive” Russian missile attacks on several cities in the country. “December 29. Massive rocket attacks. The enemy is attacking Ukraine on several fronts, using cruise missiles launched from planes and ships,” the Ukrainian Air Force said in online services. Of the total of 69 Russian missiles fired, 54 were shot down by air defenses, Commander-in-Chief of the Armed Forces Valery Zalushny said in the online service Telegram. The 16 rockets fired at Kyiv were reportedly all shot down.
DJG/DJN/AFP/apo
(END) Dow Jones Newswires
December 29, 2022 07:30 ET (12:30 GMT)