The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program.
ADP: US private sector creates fewer jobs than expected
Employment in the US private sector rose less than expected in March. As the job market service provider Automatic Data Processing Inc (ADP) reported, 145,000 additional jobs were created. Economists polled by Dow Jones Newswires had forecast a plus of 210,000. In February, a total of 261,000 jobs were added, 19,000 more than originally reported. At the same time, annual wage growth of 6.9 percent was reported.
S&P Global: US service provider with picking up business in March
According to a survey by S&P Global, business activity in the US service industry was more lively in March than in the previous month, although not as strong as initially assumed. The purchasing managers’ index calculated by S&P Global for the sector rose to 52.6 from 50.6 points in the second publication. However, economists had expected the reading of 53.8 reported in the first release to be confirmed.
ISM Index Service falls more than expected in March
Activity in the US service sector fell more than expected in March. The index compiled by the Institute for Supply Management (ISM) in this sector fell to 51.2. Economists polled by Dow Jones Newswires had expected 54.3 from 55.1 a month earlier. A value above the so-called growth threshold of 50 points signals an economic revival, below 50 it indicates a slowdown.
US trade deficit increased
The US trade deficit rose more than expected in February. According to preliminary calculations, it was 70.54 billion dollars after revised 68.66 (provisional: 68.29) billion in the previous month. Economists had expected a deficit of $ 69.10 billion. Exports fell 2.7 percent from the previous month to $251.15 billion, while imports hit $321.69 billion, down 1.5 percent from the previous month.
US crude inventories down more than expected
Crude oil inventories in the US fell more than expected in the week ended March 31st. They fell 3.739 million barrels from the previous week, according to the state’s Energy Information Administration (EIA). Analysts polled by Dow Jones Newswires had only forecast a drop of 1.5 million barrels. Inventories fell by 7.489 million barrels last week. In the data published the day before by the private American Petroleum Institute (API), a decrease of 4.3 million barrels was registered.
ECB: APP bond holdings down by €15.392bn around March
As planned, the European Central Bank (ECB) started reducing the bond holdings it had purchased under the APP program in March. As the ECB announced, these stocks fell by a total of 15.392 billion euros. APP holdings of public bonds decreased by 10.104 billion euros, corporate bonds by 1.848 billion, covered bonds by 2.759 billion and ABS by 0.681 billion euros. According to the ECB decision, the APP stocks are to be reduced by 15 billion euros a month by the end of June.
Macron sees “significant role” for China in search for peace
French President Emmanuel Macron sees China as playing a “significant role” in the search for a peace solution for Ukraine because of its close relationship with Russia. The Chinese peace plan presented in February shows the “will to work towards a solution to the conflict,” said Macron at the beginning of his three-day state visit.
Stoltenberg: China is supporting the Russian economy
NATO Secretary General Jens Stoltenberg has accused China of supporting the Russian economy, which has been subject to Western sanctions because of the Ukraine conflict. “China refuses to condemn Russia’s aggression. It’s an echo of Russian propaganda. And it’s supporting Russia’s economy,” Stoltenberg said after a meeting of NATO foreign ministers with partners from Japan, South Korea, Australia and New Zealand.
Habeck: Consistent action stabilized the German economy
Federal Economics Minister Robert Habeck (Greens) sees the new forecast by the economic research institutes as proof that Germany has been able to stabilize the economic situation thanks to consistent joint action. This was achieved despite the enormous burdens and uncertainties caused by the Russian war of aggression in Ukraine and the associated energy crisis last year.
Germany is heading for a massive housing problem for seniors – study
According to a housing study by the Pestel Institute, Germany is facing a “massive old-age housing problem” and is headed for disaster if there are no political countermeasures in housing construction. Over 21 million people would be in the 67+ age group in 20 years. Rising housing costs collided with stagnating incomes.
Government engages mediation committee in dispute over whistleblower protection
In the dispute over the planned law to protect whistleblowers, the mediation committee is now to find a solution. The Federal Cabinet decided to appeal to the body, which is made up of representatives of the Bundestag and Bundesrat. It is still unclear when the mediation committee will meet for the first time on the matter.
Federal government secures eleven investment projects in Ukraine
The federal government is currently securing investment projects by German companies in Ukraine with a total capital cover of 221 million euros. This would award eleven projects with 21 investment guarantees, according to the Ministry of Economic Affairs.
Energy price brakes now also apply to night storage and heat pumps
The federal cabinet has decided on changes to the energy price brakes so that users of night storage heaters and heat pumps can also benefit from state subsidies for energy costs.
Biden is visiting the UK and Ireland next week
US President Joe Biden will visit the UK and Ireland from Tuesday to Friday next week. As the White House announced, the head of state is to first celebrate the 25th anniversary of the so-called Good Friday Agreement in the Northern Irish capital of Belfast, which ended the three-decade conflict in Northern Ireland. A visit to Ireland and a speech by Biden in the capital Dublin are then planned.
Putin again blames the US for the Ukraine conflict
The Russian President Wladimir Putin again blamed the US for the Ukraine conflict. “Russia-US relations, on which global security and stability directly depend, are in deep crisis,” Putin said while accrediting new ambassadors to the Kremlin, including new US ambassador Lynne Tracy and new EU Ambassador Roland Galharague. “Ultimately,” US foreign policy “led to today’s Ukraine crisis.” Putin also made serious accusations against the EU. “The European Union has launched a geopolitical confrontation with Russia, a confrontation with our country,” Putin said at the televised ceremony.
Selenskyj receives Polish backing for NATO membership in Warsaw
During a visit by Ukrainian President Volodymyr Zelenskyy to Poland, Head of State Andrzej Duda promised Ukraine the delivery of the entire Polish stock of Soviet MiG-29 fighter jets. At the same time, Duda pledged Polish support for Ukraine’s NATO accession on Wednesday.
WTO slightly improves forecast for world trade in 2023
According to estimates by the World Trade Organization (WTO), world trade will increase only slightly in 2023. In its annual forecast, the Geneva-based organization assumes an increase in the exchange of goods by 1.7 percent compared to the previous year. While that’s slightly more than the 1.0 percent forecast in October, it’s still well below the growth level of 3.4 percent that was expected a year earlier.
MEXICO
Consumer Prices March +0.27% (PROG: +0.29%) yoy
Core consumer price March +0.52% (PROG: +0.50%) yoy mom
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(END) Dow Jones Newswires
April 05, 2023 13:00 ET (17:00 GMT)