The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Commercial vehicle sales in June no longer slide quite as sharply
In June, commercial vehicles were again in much lower demand in Europe than a year ago. However, the minus was not as big as in the previous months, as the manufacturers’ association ACEA announced. A total of 203,959 commercial vehicles were newly registered in the EU, the EFTA and the United Kingdom. This corresponded to a decline of 23.1 percent as of June 2020. In the first half of the year, however, the drop was even greater at 35.3 percent due to the corona-related slumps in the previous months.
Consumer climate in Germany is recovering
German consumers are leaving the Corona shock of spring this year behind them more and more. While the economic expectations have risen again slightly, both income expectations and propensity to buy have increased significantly for the third time in a row, as the market research company GfK has determined. As a result, GfK forecasts a value of -0.3 points for August 2020, a good nine points more than in July of this year (revised -9.4 points).
DZ Bank: Italy and Spain receive the most Corona aid
DZ Bank has calculated that Italy and Spain will receive the largest sums from the EU’s Corona Aid Fund. According to the assumption that the allocation key remains constant, Italy would receive around 153 billion euros by 2023, including 79.6 billion in grants and 73.4 billion in loans. In total, this corresponds to more than 8 percent of the gross domestic product (GDP) in 2019. Spain would receive a total of around 149 billion euros (77.6 billion in allocations and 71.6 billion in loans) or 12 percent of GDP. “This alone should boost economic recovery in the countries,” write the bank’s economists.
United States orders Chinese consulate closure in Houston
The conflict between the United States and China is intensifying. As the foreign ministries in Washington and Beijing announced on Wednesday, the US authorities have instructed the Chinese government to close its consulate in Houston, Texas. Chinese spokesman Wang Wenbin spoke of a one-sided “political provocation”, US President Donald Trump threatened with further consulate closings. Several senior Republicans associated the consulate with Chinese espionage activities.
Dreyer considers it possible to extend the VAT reduction
The Rhineland-based Prime Minister Malu Dreyer (SPD) has announced the prospect of an extension of the VAT reduction beyond the turn of the year. “It will have to be looked at in autumn what effects were achieved by reducing the VAT,” she told the Funke media group. “And then you will consider whether further measures are necessary.” The VAT cut gave citizens “the signal: you get something out of it when you go shopping,” she said. “And where the tax cut is not passed on, it also serves its purpose in stabilizing companies.”
Current daily case numbers for corona virus in Germany
The Robert Koch Institute (RKI) in Berlin put the number of people infected with the coronavirus in Germany on Thursday at 203,368 – an increase of 569 since the previous day. The Johns Hopkins University (JHU), based in the US city of Baltimore, reported 204,276 people infected. The RKI, which only takes into account the electronically transmitted figures from the federal states and updates its list once a day, registered 9,101 deaths, six more than the previous day. The JHU killed 9,102 people. According to the RKI, the number of people recovered was around 189,000.
California overtakes New York with most corona infections
Until recently, New York was the hardest hit by the corona pandemic – now California has overtaken the eastern coast. California Governor Gavin Newsom announced Wednesday (local time) that the number of detected coronavirus infections in the state rose by a record 12,800 to a total of 413,576. This was around 4,700 more infections than had been counted since the pandemic started in New York.
More than 2,000 corona infections related to Tnnies slaughterhouse
In connection with the Tnnies slaughterhouse in Rheda-Wiedenbrck, more than 2,000 corona infections have been identified. “According to the current status, the responsible authorities have so far assigned the outbreak at Tnnies to a total of 2,119 cases,” said the North Rhine-Westphalian Minister of Health Karl-Josef Laumann (CDU) of the Neue Osnabrcker Zeitung. In addition, there were 67 other cases in which a connection to the slaughterhouse was possible. So far there have been no deaths in this context.
More than 4 million corona infections in Latin America and the Caribbean
In Latin America and the Caribbean, the number of coronavirus infections has passed the four million mark. More than half of the cases were reported from Brazil, according to an AFP count on Wednesday based on official statistics. A total of 4.04 million infections with the novel coronavirus have been detected across the region since the pandemic began, and more than 172,000 people have died.
+++ economic data +++
May unemployment rate adjusted 4.6%
May unemployment rate adjusted forecast: 4.8%
June consumer prices -0.5% yoy (PROG: -0.6%)
Consumer prices core rate June -0.2% (May: -0.2%) yoy
GDP 2Q -3.3% qoq, -2.9% yoy
GDP 2Q FORECAST -2.4% qoq, -2.1% yoy
DJG / DJN / AFP / hab
(END) Dow Jones Newswires
July 23, 2020 03:00 ET (07:00 GMT)