The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program.
US core inflation pressure falls slightly in September as expected
As expected, inflation pressure in the USA fell slightly in September. As the Bureau for Economic Analyzes (Bea) announced, the price index for personal consumption expenditure (PCE deflator) rose by 0.3 percent compared to the previous month and was 3.7 (previous month: 3.8) percent above the level of the same month last year. This corresponded to the forecast of the economists surveyed by Dow Jones Newswires. The core PCE deflator is the Federal Reserve’s preferred measure. The overall PCE deflator increased by 0.4 and 3.4 (3.4) percent.
US consumer sentiment deteriorated significantly in October
US consumer sentiment deteriorated in October. The U.S. consumer sentiment index, calculated at the University of Michigan, fell to 63.8 in the month-end survey from 68.1 at the end of September. Economists polled by Dow Jones Newswires had expected a reading of 63.0. In the first survey in the middle of the month it was 63.0. The index for expectations was 59.3 (previous month: 66.0, preliminary: 60.7), the index for the assessment of the current situation was given as 70.6 (71.4 or 66.7). Consumers’ inflation expectations for the next twelve months increased compared to the previous month to 4.2 from 3.2 percent. Over a five-year period, they increased to 3.0 from 2.8 percent. US consumers play a key role in the US economy because around 70 percent of gross domestic product depends on private consumption.
Scholz is calling for reallocations in the EU budget for aid to Ukraine
Federal Chancellor Olaf Scholz has urged that the European Union (EU)’s upcoming further aid to Ukraine be financed with the volume already planned for the common EU budget. Scholz rejected additional financial resources from the 27 EU member states at the end of the summit of EU heads of state and government in Brussels. With regard to Israel, Scholz emphasized that he had no doubt that the country would adhere to international law in its response to the major attack by the radical Islamic Palestinian organization Hamas.
Germany delivers third Iris-T defense system to Ukraine
Germany has delivered another modern Iris T-SLM air defense system to Ukraine. The Federal Ministry of Defense said it consists of three launchers, a radar sensor and corresponding guided missiles. In this way, Germany is making a further contribution to strengthening Ukraine’s air defense capabilities before the start of winter, “when increased attacks on critical infrastructure by the Russian side can be expected again.” The system, manufactured by the Diehl Defense company, is the third that Germany is making available to Ukraine. It can be used to defend against incoming rockets and missiles up to a height of 20 kilometers and a distance of up to 40 kilometers. In a “winter package” at the beginning of October, the federal government promised Kiev the early delivery of two Iris-T systems. The handover of another one is still pending.
Attack on Dutch right-wing populists: Party suspends election campaign
After a man with an umbrella attacked Dutch politician Thierry Baudet, his right-wing populist Forum for Democracy party has suspended its election campaign. Baudet suffered a mild concussion and is doing well under the circumstances, the party said. Videos on online services showed how a man wearing a peaked cap and hood gave the politician a severe blow on the head as he arrived at the Belgian University of Ghent for an event. The police arrested the attacker.
Border controls with Poland, the Czech Republic and Switzerland extended
In view of the continued high number of refugees entering the country without permission, the federal government has extended the stationary border controls with Poland, the Czech Republic and Switzerland. Berlin has informed the EU Commission that the controls will continue “for another 20 days,” said a spokeswoman for the Federal Ministry of the Interior. Because irregular entry and smuggling of refugees “continues to be at a level that is clearly too high”.
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(END) Dow Jones Newswires
October 27, 2023 1:00 p.m. ET (5:00 p.m. GMT)