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ROUNDUP 2: ECB initiates end of low interest rates
FRANKFURT/AMSTERDAM – In view of the record inflation, Europe’s currency holders are initiating a change of course and giving savers hope of rising interest rates. The multi-billion dollar net bond purchases expire on July 1, and the European Central Bank (ECB) plans to raise key interest rates by 0.25 percentage points at the July 21 meeting. It would be the first rate hike in the euro area for exactly eleven years and probably the beginning of a series of interest rate hikes.
Putin exempts exporters from the obligation to barter for foreign exchange earnings
MOSCOW – In view of the drastically increased ruble exchange rate, Russia’s President Wladimir Putin exempted exporters from the general obligation to convert 50 percent of their foreign exchange earnings into the local currency. In the future, a government commission will determine how much of the income they have to pay for exchange, according to the presidential decree published on Thursday.
USA: Initial jobless claims rise
WASHINGTON – In the US, initial jobless claims rose more than expected last week. The number increased by 27,000 to 229,000, the Department of Labor said on Thursday in Washington. It is the first rise after two falls in a row. Analysts had expected an average of 206,000 applications.
ROUNDUP/Western Sahara conflict: Algeria’s banks suspend trade with Spain
ALGIERS/MADRID – After Spain gave in to Morocco in the dispute over Western Sahara, Algeria’s banking association has ordered it to refrain from doing business with the southern European country. Bank transfers for imports from and exports to Spain have been banned since Thursday. Gas supplies are not affected, President Abdelmadjid Tebboune said in a statement. Algeria is Spain’s main gas supplier.
London: Russian troops target areas south of Izyum
LONDON – According to British intelligence services, Russian troops have been targeting areas south of the eastern Ukrainian city of Izyum in the past few days. The troops would probably have stepped up their offensive there, according to a statement from the Ministry of Defense in London on Thursday. The city of Izyum is located in the Kharkiv region, which borders on the Luhansk region, which has meanwhile been almost completely occupied by the Russians. Izyum was already occupied by Russian troops in March.
ROUNDUP: Debate about higher top taxes to relieve small incomes
BERLIN – A debate has broken out in the federal government about a tax reform to relieve small and medium incomes. Finance Minister Christian Lindner (FDP) refused on Thursday to finance such a tax cut entirely through a higher top tax rate for high earners. Economics Minister Robert Habeck (Greens) had previously said that without a higher top tax rate he saw little scope for relief for smaller incomes.
ROUNDUP: Corona summer with some question marks – What’s coming up with BA.5?
BERLIN – In view of the spreading omicron subvariant BA.5, experts expect that the corona virus will not disappear from the scene in the summer. “We are not experiencing an infection-free summer this year, but this is not initially a threat,” said the head of Charit Virology, Christian Drosten, at the request of the German Press Agency. In autumn and winter there will probably be a long wave of infections. Doctor President Klaus Reinhardt called on the Federal Ministry of Health to coordinate precautions with the federal states.
ROUNDUP: Diesel again over 2 euros per liter
MNICH – For the first time since the tax cut, diesel costs more than two euros a day nationwide. For Wednesday, the ADAC reported a value of 2.007 euros per liter on Thursday. That’s 1.5 cents more than the day before. The price for E10 stagnated at 1.948 euros per liter.
ROUNDUP 2: China’s foreign trade is recovering – but still great uncertainties
BEIJING – Against the backdrop of a somewhat more stable pandemic situation, China’s foreign trade grew more than expected in May. The exports of the second-largest economy increased by 16.9 percent year-on-year to around 308 billion US dollars (287 billion euros), as announced by the Beijing customs administration on Thursday. Experts surveyed by Bloomberg had expected an increase of eight percent. Imports also rose 4.1 percent to $229.5 billion, faster than analysts had expected.
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ROUNDUP: You are reading a summary in the business cycle overview. There are several reports on the dpa-AFX news service on this subject.
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