The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Bank of Canada ends interest rate pause and hikes interest rates by 25 basis points
The Bank of Canada (BoC) has ended a brief pause in interest rate hikes and raised its policy rate on stronger-than-expected consumer spending and growing concerns that inflation could remain at high levels. The Bank of Canada raised its target for the federal funds rate from 4.50 percent to 4.75 percent, the highest level in 22 years.
US trade deficit increased noticeably in April
The US trade deficit widened sharply in April as exports fell while imports grew. According to preliminary calculations, the deficit was 74.55 billion dollars after a revised 60.59 (provisional: 64.23) billion in the previous month. Economists had expected a deficit of $75.20 billion.
U.S. crude oil inventories unexpectedly fall
Crude oil inventories in the US decreased in the week ended June 2nd. They fell 0.452 million barrels from the previous week, according to the state’s Energy Information Administration (EIA). Analysts polled by Dow Jones Newswires had forecast an increase of 1.1 million barrels. In the previous week, inventories had increased by 4.489 million barrels.
Cabinet passes amendment to expand rail network
The Federal Cabinet has passed an amendment to the law presented by the Federal Ministry of Transport, which is intended to make faster route rehabilitation possible. This was announced by government spokesman Steffen Hebestreit at a press conference in Berlin. According to the Federal Ministry of Transport, the law is the legal basis for investments in the approximately 33,800-kilometer federal rail network. Its previous design – in particular the financial separation of replacement investments and maintenance – has recently proven to be an investment obstacle in individual areas.
Federal cabinet decides on adjustments to energy price brake laws
The federal cabinet has decided on a formulation aid for adjustments and simplifications in the energy price brake laws. According to the Federal Ministry of Economics, the changes are intended to remove obstacles to the expansion of green electricity systems. “The urgent regulations are related to the energy crisis and serve to simplify or accelerate the process,” said the Ministry of Economic Affairs.
Coalition wants to tighten lobby register
The governing coalition is planning tightened rules for the lobby register, which has been in place at the Bundestag since early 2022 to represent interests in parliament and the government. The federal cabinet decided on a draft law for the coalition factions, as Interior Ministry spokesman Maximilian Kall announced at a press conference. According to him, this “regulatory proposal based on the ideas of the coalition factions” provides, among other things, for contacts to be registered from the speaker level and not, as was previously the case, only at the sub-department management level.
Habeck: We are not on course when it comes to climate protection
Federal Economics Minister Robert Habeck (Greens) has admitted that Germany is not on track with its climate protection goals and the expansion of green electricity plants. In addition, the majority of society seems to be moving away from the willingness to take drastic measures.
Steinmeier calls for debates on peace and arms deliveries
In view of the Russian war of aggression in Ukraine, Federal President Frank-Walter Steinmeier has called for discussions about arms deliveries and peace. The war plunges Christians into a deep dilemma, said Steinmeier in a speech at the opening of the 38th German Evangelical Church Congress in Nuremberg. “And he asks us big questions,” he added.
KfW gives EUR 100 million for green investments in venture capital funds
A subsidiary of the state-owned KfW is now providing 100 million euros for investments in venture capital funds in Germany and Europe, which use them to acquire stakes in environmental and climate technology start-ups. The funds from KfW Capital from the new Green Transition Facility are intended to finance innovations in the development and expansion of new sustainable, environmentally and climate-friendly technologies, as the Federal Ministry of Economics explained. It hopes that this will make an important contribution to the ecological transformation of the economy and society.
EU Commission: No Brussels “heating hammer” planned
In the heating dispute, the EU Commission has contradicted German press statements about allegedly even stricter requirements from Brussels. The report in the Bild newspaper entitled “EU plans harder heating hammer than Habeck” was “misleading,” said the Commission representative in Berlin on the short message service Twitter. It is incorrect that from 2029 only heat pumps should be allowed in the EU. The authority was backed by Commission President Ursula von der Leyen from the Union parties. According to the Commission, it is working on a “technology-neutral” proposal for the energy efficiency of heating systems, since the old one is already ten years old.
+++ economic data +++
Brazil Consumer Prices May +0.23% (Apr: +0.61%)
Brazil consumer prices 12-month rate May +3.94% (Apr: +4.18%)
US/Exports Apr $249.02bn, -3.6%; Imports $323.57 billion, +1.5%
US/March trade balance revised deficit $60.59bn (prev: deficit $64.23bn)
US/Trade Balance Apr deficit $74.55bn (PROG: deficit $75.6bn)
DJG/DJN/AFP/apo/sha
(END) Dow Jones Newswires
June 07, 2023 13:00 ET (17:00 GMT)