The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
US crude oil inventories surprisingly increased
U.S. crude oil inventories expanded in the week ended January 5th. According to the state Energy Information Administration (EIA), they rose by 1.338 million barrels compared to the previous week. Analysts polled by Dow Jones Newswires had forecast a decline of 0.6 million barrels. In the previous week, inventories had reduced by 5.503 million barrels.
Schnabel: November unemployment rate “roughly” matches projections
The unexpected decline in the euro area unemployment rate in November to 6.4 percent does not call into question the European Central Bank’s (ECB) expectation of easing wage pressure, according to ECB Director Isabel Schnabel. “The decline in unemployment to a historic low confirms the continued strong resilience of the labor markets, which largely corresponds to the experts’ forecasts from December 2023,” writes Schnabel in the short message service X in response to a corresponding question.
The government probably wants to finance Ahrtal aid without new loans – lots of budget cuts
When it comes to financing reconstruction aid for the Ahr Valley and other areas affected by the 2021 flood, the federal government obviously wants to manage without new debt in 2024. This emerges from the Federal Ministry of Finance’s submission for the so-called adjustment meeting of the Bundestag Budget Committee, which was announced on Wednesday. There had previously been considerations of making use of an exception to the debt brake for the development aid of almost 2.7 billion euros next year.
Experts criticize measures for the 2024 budget
In statements on the planned measures for the 2024 budget, experts expressed constitutional concerns in individual points and expressed disagreement about further financing of flood aid for the Ahr Valley flood in 2021. The majority of political decisions on consolidation measures are constitutionally harmless, explained constitutional lawyer Alexander Thiele in his statement for a hearing in the Bundestag’s budget committee.
Raffelhüschen: Immigration is a fiscal loss
According to economist Bernd Raffelhüschen, the immigration of workers to Germany cannot compensate for the fiscal effects of demographic change. As Raffelhüschen calculates in a generational balance drawn up for the Market Economy Foundation, Germany could at best mitigate the negative fiscal consequences of migration through a more targeted selection of immigrants. The economist believes that the German state budget is not sustainable overall and promises its citizens more services than they can finance over their life cycle.
Hebestreit confirms approval of missile export to Saudi Arabia
The federal government has approved the delivery of weapons to Saudi Arabia. Government spokesman Steffen Hebestreit confirmed a corresponding report by Spiegel, according to which the Federal Security Council approved the export of 150 Iris-T air-to-air guided missiles at the end of last year. He referred to a communication from the Federal Ministry of Economics to the Economic Committee of the Bundestag.
Baerbock ends his Middle East trip – and sets off for Southeast Asia
After completing her four-day trip to the Middle East, Federal Foreign Minister Annalena Baerbock (Greens) set off on a visit to Southeast Asia. The minister flew from Lebanon’s capital Beirut on Wednesday to the Philippine capital Manila, where Baerbock wants to discuss, among other things, China’s conflict-ridden territorial claims in the South China Sea.
Constitutional complaint filed against ratification of the CETA trade agreement
The organizations More Democracy, Campact and Foodwatch have once again filed a constitutional complaint against the CETA free trade agreement – this time against its ratification. “CETA endangers the rights of citizens. Committees and arbitration courts are powerful actors. But our parliaments have too little influence on them. This also devalues our right to vote,” says Roman Huber, executive federal board of More Democracy and one of the three complainants. The Bundestag and Bundesrat should not have approved the agreement.
London threatens Houthi rebels after largest-ever attack in the Red Sea
The British government has threatened retaliation against the pro-Iranian Houthi militia in Yemen after the most violent drone attack on international shipping lanes in the Red Sea. “We have to make it clear to the Houthis that this has to stop, and my simple message to them today is: be prepared,” British Defense Secretary Grant Shapps told Sky News on Wednesday. According to US information, British and US forces intercepted 18 drones and three missiles over the Red Sea on Tuesday.
NATO countries promise Ukraine further military aid
The NATO countries have promised Ukraine further military aid against Russia. “As Moscow intensifies its attacks on Ukrainian cities and civilians, NATO allies are strengthening Ukraine’s air defense,” said alliance Secretary General Jens Stoltenberg after the first NATO-Ukraine Council this year in Brussels. The alliance partners have made it clear that they will continue to provide Ukraine with extensive military, economic and humanitarian assistance, the NATO statement continued. “Many allies have unveiled plans to deploy billions of dollars in additional capabilities in 2024.” The alliance did not provide any details.
+++ Economic data +++
USA
Inventories wholesale Nov -0.2% (PROG: -0.2%)
DJG/DJN/AFP/sha
(END) Dow Jones Newswires
January 10, 2024 1:00 p.m. ET (18:00 GMT)