The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Kansas City Fed President retires in January
The President of the Federal Reserve Bank (Fed) in Kansas City, Esther George, will retire next January. The Federal Reserve Bank of Kansas City said it has launched a search to identify a broad, diverse, and highly qualified pool of candidates to succeed George. George, who is a voting member of the FOMC this year, has chaired the Kansas City Fed since October 2011. George joined the Kansas City Fed in 1982. During her tenure at the Fed, George often held restrictive views on the economy monetary policy.
US crude inventories down more than expected
Crude inventories in the US have decreased in the week ended May 20th. They fell 1.019 million barrels from the previous week, according to the state’s Energy Information Administration (EIA). Analysts polled by Dow Jones Newswires had forecast just a 0.6 million barrel decline. Inventories had fallen by 3.394 million barrels in the previous week. An increase of 0.6 million barrels was registered in the data published the day before by the private American Petroleum Institute (API).
US durable goods orders rise in April
US durable goods orders rose slightly in April. As reported by the US Department of Commerce, orders increased by 0.4 percent compared to the previous month. Economists polled by Dow Jones Newswires had expected an increase of 0.7 percent. The increase in the previous month was revised down to 0.6 (preliminary: 1.1) percent.
lembargo against Russia probably not an issue EU summit – circles
According to estimates from German government circles, the heads of state and government of the European Union (EU) will probably not talk about the new sanctions package with the lembargo against Russia at their special summit next week. A high-ranking person from the German government referred to the letter from Hungarian Prime Minister Viktor Orban to EU Council President Charles Michel. In it, Orban declared that it would be “counterproductive” to talk about the lembargo against Russia at the summit without a prior consensus. Ultimately, however, it was Michel’s decision whether the topic would be addressed, according to Berlin.
Warning strikes from June in North West steel industry
With warning strikes starting Friday next week, IG Metall in north-west Germany intends to emphasize its demand for a significant wage increase for the approximately 68,000 employees in the north-west German iron and steel industry. This was decided by the collective bargaining committee of IG Metall NRW after the employers had not submitted a new offer in the second round of negotiations on Monday.
Economy welcomes continued exception to EU stability pact
Small and medium-sized businesses have praised the EU Commission’s decision not to lift the exception to the Stability and Growth Pact granted because of the Corona crisis until the beginning of 2024. Despite all regulatory concerns, this is correct. “The war in the Ukraine and the current economic challenges justify this step,” explained Hans-Jrgen Vlz, chief economist at the Federal Association of Small and Medium-Sized Enterprises (BVMW). High consumer prices, the unchecked increase in energy prices, bottlenecks in the supply of raw materials, disrupted supply chains and the impending failure of Russian gas supplies slowed the economy.
Sweden rejects Turkish accusation of supporting terrorist organizations
The Swedish government has denied Turkey’s accusation of supporting terrorist organizations. “Of course we don’t send any money or weapons to terrorist organizations,” Prime Minister Magdalena Andersson said at a press conference in Stockholm. Ankara had voiced the allegations in connection with the planned NATO accession of Sweden and Finland.
India caps its sugar exports
After the export ban on wheat, India is also restricting its sugar exports. As announced by the world’s largest sugar producer and second largest exporter after Brazil, sugar exports for the current marketing year, which runs until September, will be capped at 10 million tons. According to the government in New Delhi, the background is that “local availability and price stability” should be guaranteed.
China presents plan for far-reaching security cooperation with South Pacific countries
China obviously wants to expand its sphere of influence in the South Pacific and has presented plans for comprehensive security and economic cooperation with the states there. The far-reaching draft contract from Wednesday provides, among other things, for millions of Chinese investments in ten small island states. In return, Beijing would help train local police and gain better access to local natural resources. Western leaders, but also regional heads of government fear a loss of control in the South Pacific.
DJG/DJN/AFP/apo
(END) Dow Jones Newswires
May 25, 2022 13:07 ET (17:07 GMT)