The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
US inflation rises to 2.7 percent in November
Inflation pressure in the USA increased slightly in November. As the US Department of Labor announced, consumer prices rose by 0.3 percent compared to the previous month and were 2.7 (previous month: 2.6) percent above the level in the same month last year. Economists surveyed by Dow Jones Newswires had predicted exactly these values. The US Federal Reserve is aiming for an inflation rate of 2 percent. Core consumer prices (excluding energy and food) rose by 0.3 percent on a monthly basis and by 3.3 (previous month: 3.3) percent on an annual basis. These numbers also corresponded exactly to the economists’ forecasts.
US real incomes rise in November
Real incomes in the USA rose by 0.3 percent in November compared to the previous month. As the US Department of Labor announced, there was a decline of 0.1 percent in October. According to the authority, the average weekly income, adjusted for seasonally and inflation, was $385.99 in November, compared to $384.66 in the previous month.
US crude oil inventories fall more than expected
U.S. crude oil inventories declined in the week ended December 6th. According to the state Energy Information Administration (EIA), they fell by 1.425 million barrels compared to the previous week. Analysts polled by Dow Jones Newswires had predicted a decline of 1 million barrels. In the previous week, inventories had reduced by 5.073 million barrels.
BoC cuts key interest rate by 50 bp – uncertainty high due to US tariffs
U.S. President-elect Donald Trump’s promise to impose a 25 percent tariff on imports from Canada in his first days in office has clouded the outlook for the Canadian economy, according to Bank of Canada Governor Tiff Macklem. “Nobody knows how this will develop in the coming months – whether tariffs will be imposed, whether exceptions will be agreed or whether retaliatory measures will be taken,” says the monetary policy statement on the decision to raise the key interest rate by 50 basis points to 3.25 percent reduce. “This is a major new uncertainty,” Macklem added.
OPEC lowers oil demand forecast
The Organization of the Petroleum Exporting Countries (OPEC) has cut its forecast for oil demand growth for the fifth consecutive month. OPEC has postponed its plans to increase production amid lower prices and concerns about weaker global consumption. The Vienna-based cartel now expects demand to rise by 1.61 million barrels per day this year and 1.45 million barrels per day next year, compared to previous estimates of 1.82 and 1.54 million barrels per day, respectively .
Scholz: Would like to clear the way for early federal elections
In a statement about his motion for a vote of confidence, Chancellor Olaf Scholz (SPD) emphasized that he wanted to “clear the way for early federal elections.” He will give detailed reasons for the request in the Bundestag next Monday. “If the MPs then take the path I have suggested, I will propose to Federal President Steinmeier on Monday afternoon to dissolve the Bundestag. If the Federal President follows my suggestion, the voters will be able to elect a new Bundestag on February 23rd,” said Scholz. “That’s my goal.”
Green party leaders suggest abstention on vote of confidence
The leaders of the Green parliamentary group have suggested that their members of the Bundestag abstain from the vote on the vote of confidence on Monday. That’s what the two chairmen Britta Haßelmann and Katharina Dröge say. The SPD parliamentary group emphasized that it was firmly at Scholz’s side and considered his step to be the right one.
Scholz sees opportunities for the German economy when investing in Ukraine
Chancellor Olaf Scholz (SPD) sees opportunities for the German economy in investing in Ukraine. In view of the impending difficult third winter of war, he assured Ukraine that Germany would not abandon the country and that its companies were very interested in investing. Ukraine’s path to the European Union (EU) is irreversible and investments in the country attacked by Russia are investments in a future EU member with potentially high growth rates.
Ministry of Economic Affairs: Power Plant Act no longer comes before new elections
The power plant law from Federal Economics Minister Robert Habeck (Greens) to promote the construction of new gas power plants will no longer come before the new elections. The Federal Ministry of Economics stated that the Power Plant Security Act would not receive a majority in the Bundestag. The Union had announced that it would not support the project in the Bundestag.
Wissing wants to expand the use of drones and air taxis in Germany
The Federal Ministry of Transport wants to establish Germany as the leading location for the development and operation of drones and electric air taxis (eVTOL). The ministry presented a corresponding strategy for Advanced Air Mobility (AAM). Wissing expects drones and air taxis to revolutionize air travel. They would create new transport options for goods and people and would be a driver for electric flight and thus climate-friendly aviation.
Habeck: The EU also has to get ready for Ukraine’s accession
Federal Economics Minister Robert Habeck (Greens) has appealed to the European Union (EU) to prepare itself for Ukraine’s accession and to grant the country access if the accession criteria are met. At the same time, he emphasized the importance of Ukraine as an economic partner for Germany. He said at the 7th German-Ukrainian Economic Forum that there could be flourishing economic cooperation after the end of the war and sees the country’s potential as similar to Poland’s entry into the EU.
DJG/DJN/apo/sha
(END) Dow Jones Newswires
December 11, 2024 1:00 p.m. ET (18:00 GMT)