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dpa-AFX overview: ECONOMY from 08/17/2020 – 5:00 p.m. | message


USA: Sentiment in New York industry is clouding over again

NEW YORK – The mood in New York industrial companies clouded over again in August. This means that the recovery after the drastic slump in the Corona crisis has stopped for the time being. The Empire State Index fell to 3.7 points, after 17.2 points in July, as the regional central bank of New York announced on Monday. Analysts had only expected a slight decrease to 15.0 points on average.

USA: NAHB house market index rises to pre-crisis level

WASHINGTON – The mood on the US house market has largely recovered from the slump in the Corona crisis. The NAHB home market index rose by 6 points to 78 points in August compared to the previous month, as the National Association of Home Builders announced in Washington on Monday. Analysts had expected an increase, but on average to only 74 points.

Bundesbank: German economy should grow strongly in summer

FRANKFURT – The Bundesbank assumes that the German economy will recover strongly from the economic slump in the Corona crisis in the summer. “After the sharp slump in the first half of the year, the German economy should grow very strongly in the summer quarter of 2020”, according to the central bank’s monthly report published on Monday in Frankfurt. The clear and broad-based recovery that started after the economic low in April is expected to continue.

Bundesbank criticizes joint EU debt: ‘a worrying novelty’

FRANKFURT – The Bundesbank has expressed its criticism of the planned joint debt of the European Union (EU). The extensive debt financing is a “worrying novelty”, write the currency authorities in their new monthly report on Monday. “Borrowing at the EU level is not actually provided for in the EU treaties.” In order to keep liability and control in balance, a significantly stronger degree of integration in the EU would be necessary, warns the Bundesbank. At present, financial policy is largely a matter for the EU states.

ROUNDUP: Merkel is positive about the extension of short-time work benefits

BERLIN – In the Corona crisis, companies and employees in Germany can hope for a significant extension of the short-time allowance. Chancellor Angela Merkel Government spokesman Steffen Seibert said on Monday in Berlin (CDU) that proposals to extend the period of reference to 24 months are “fundamentally positive”.

Circles: Merkel calls corona numbers still manageable

BERLIN – Chancellor Angela Merkel (CDU) has described the increasing number of corona infections in Germany as worrying, but still manageable. According to information from the German Press Agency from participants in the first virtual CDU board meeting after the summer break, Merkel said on Monday that there could be no further easing at the moment. This also applies to football games.

Mechanical engineering loses 32,000 jobs during the crisis

FRANKFURT – The corona crisis, trade barriers and structural change in the automotive industry cost the mechanical engineering industry in Germany 32,000 jobs in the first half of the year. The number of employees fell to around 1.03 million by the end of June. “In view of the immense loads that our industry is exposed to, this remains a moderate reduction,” argued Ralph Wiechers, chief economist of the VDMA mechanical engineering association on Monday. Above all, the instrument of short-time work helps.

ROUNDUP: Japan’s economy with record slump – bottomed out

TOKYO – Japan’s economy suffered a record slump in the wake of the Corona crisis. The gross domestic product (GDP) of the world’s third largest economy, ahead of Germany, fell in the second quarter of this year – extrapolated to the year – by 27.8 percent in real terms, as the government in Tokyo announced on Monday on a preliminary basis. Japan had already shrunk in the two previous quarters and is thus in a recession.

Chinese central bank injects money into banks

BEIJING – The Chinese central bank provided the banks of the People’s Republic with ample liquidity on Monday. As the People’s Bank of China announced in Beijing, the banks will receive fresh funds worth 700 billion yuan (about 85 billion euros). The money is granted for one year via the medium-term credit line, one of the central bank’s main instruments. The interest rate is 2.95 percent.

Strongest slump since 1998: Corona hits Thailand’s economy hard

BANGKOK – The economy of the holiday paradise Thailand has been hit harder by the Corona crisis than previously thought. The Southeast Asian country’s gross domestic product (GDP) is expected to shrink by 7.3 to 7.8 percent this year, said the general secretary of the Committee on Economic and Social Development, Tossaporn Sirisamphan, on Monday. A previous forecast had assumed a decline of five to six percent. It would be the biggest slump since the Asian financial crisis in 1998.

Customer note:

ROUNDUP: You are reading a summary in the economic overview. There are several reports on this topic on the dpa-AFX news service.

/ jkr

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