The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
ZEW Index higher than expected in February – assessment of the situation increases
The economic expectations of stock market and financial experts for Germany brightened up more than expected in February, with the assessment of the current situation also being better than forecast. The ZEW index of economic expectations rose to 28.1 (January: 16.9) points, as reported by the Center for European Economic Research (ZEW). Economists polled by Dow Jones Newswires had expected an increase to 24.5 points. The assessment of the economic situation also improved. The index rose to minus 45.1 (minus 58.6). Economists had expected an increase to minus 50.0 points.
S&P Global: German economy grows again in February
The German economy recorded growth again in February thanks to a sharp reduction in supply problems. With the easing of the delivery bottlenecks, the purchase prices in industry also fell for the first time in almost two and a half years. S&P Global’s composite index of private sector production — manufacturing and services combined — improved to 51.1 from 49.9 in the previous month, according to data from its first release in February. The collective index was thus above 50 points for the first time in eight months.
DWS: German PMIs point to normalization
According to DWS economist Martin Moryson, the unexpectedly sharp increase in the German Purchasing Managers’ Indices (PMIs) in February points to an increasing normalization of the economic situation with persistent inflationary pressure. “In the industry, delivery times are shortening significantly and production has been expanded accordingly,” he writes in a comment. Although incoming orders have also improved, they are still below the normal level. “At the moment, however, the order books are apparently well filled, so that production can run.” The employment prospects are stable.
S&P Global: Eurozone economic activity at nine-month high
The euro zone-Economy posted the strongest growth in nine months in February, driven in particular by the accelerated uptrend in the services sector. The composite index of private sector manufacturing — manufacturing and services combined — rose to 52.3 points from 50.3 the previous month, S&P Global reported in the initial release. Economists polled by Dow Jones Newswires had predicted a rise to 50.5 points.
Ifo: The dissolution of the EU would lead to enormous losses in prosperity
According to one study, a dissolution of the European Union (EU) would lead to enormous losses in prosperity for the member states. According to a study by the Ifo Institute and EconPol Europe, not only recipients of transfer payments would suffer from the dissolution of the EU, but also net contributors such as Germany. Germany’s gross domestic product (GDP) should therefore fall by 5.7 percent per capita if the EU were to dissolve, in Austria by 7.8 percent, in the Netherlands by 7.7 percent and in Belgium by 10.2 percent. For France and Italy, GDP would shrink by 4.1 percent each.
Financial turnaround: study proves greenwashing in funds
Between December 2021 and March 2022 alone, supposedly sustainable funds put almost 1 billion US dollars in additional money into fossil energy companies, according to the organization Finanzwende. According to a study by Finanzwende Recherche, the funds examined have become 7.9 percent more CO2-intensive on average. “Many green funds wanted to participate in the profit development of oil companies and the like, just as if they had not committed themselves to sustainability,” said co-author Magdalena Senn.
Germany advertises advantages of Frankfurt for EU money laundering authority
In the course of a planned German application for Frankfurt am Main as the seat of the new EU authority to combat money laundering, the Federal Ministry of Finance is now emphasizing the “advantages of the location in the heart of Europe” on a website. The new authority will be called the Anti Money Laundering Authority (Amla). The ministry announced that information was provided in a compact and clear manner at www.amla-frankfurt.eu.
USA and allies want to tighten sanctions against Russia
The US and its allies are preparing to tighten sanctions against Russia. They threaten to crack down on foreign companies that help Moscow evade sanctions, and they want to impose new export controls and sanctions to cut off Russian companies’ supplies to the armed forces. Speaking ahead of the first anniversary of Russia’s invasion of Ukraine, Deputy Finance Minister Wally Adeyemo said the Kremlin was doing everything it could to circumvent Western sanctions and had tasked its intelligence services to ensure essential imports and exports kept flowing.
Putin wants to “systematically” continue the offensive in Ukraine
Russia’s President Wladimir Putin wants to “systematically” continue the offensive in Ukraine. In his State of the Union address, Putin said Russia would proceed “carefully and systematically” in Ukraine and thus achieve the goals of its military operation “step by step”. “I’m speaking to you at a difficult and crucial moment for our country, at a time of profound changes all over the world,” Putin said at the beginning of his speech in Moscow. Traditionally, the Russian head of state gives a state of the nation address to Russian MPs every year, in which he takes stock of the past year and sets new strategic goals.
Putin: West wants to ‘do Russia once and for all’
Barely a year after the start of the Russian offensive in Ukraine, Kremlin chief Vladimir Putin has accused the West of wanting to “do away with Russia once and for all”. In his State of the Union address in Moscow, Putin said: “Western elites are not hiding their goal: to inflict a strategic defeat on Russia, that is, to finish us off once and for all.” However, Russia will continue its offensive in Ukraine “carefully and systematically” and thus achieve the goals of its military operation “step by step”.
The US government rejects Putin’s accusations against the West as absurd
The US government has dismissed Russian President Vladimir Putin’s accusations against the West as absurd. “No one is attacking Russia,” US President Joe Biden’s national security adviser Jake Sullivan told reporters. The notion “that Russia was in some form of military threat from Ukraine or anyone else” is therefore an “absurdity”.
German-Iranians sentenced to death in Iran for “terrorism”.
In Iran, the German-Iranian Jamshid Sharmahd has been sentenced to death on charges of “terrorism”. Sharmahd was the leader of a terrorist group and was involved in an attack, according to the Iranian judiciary’s website “Misan Online”. He was therefore found guilty of “corruption on earth” and sentenced to death.
+++ economic data +++
France/Purchasing Managers Composite Index Feb 51.6 (1st pub)
France/Purchasing Managers Composite Index Jan was 49.1
France/Services PMI Feb 52.8 (1st pub)
France/PMI Services Feb FORECAST: 49.9
France/PMI Services Jan was 49.4
France/Purchasing Managers’ Index proc. Commercial Feb 47.9 (1st Pub)
France/Purchasing Managers’ Index proc. Commercial Feb FORECAST: 50.9
France/Purchasing Managers’ Index proc. Commercial Jan was 50.5
DJG/DJN/AFP/apo
(END) Dow Jones Newswires
February 21, 2023 07:30 ET (12:30 GMT)