dpa-AFX overview: ECONOMY from November 24th, 2021 – 5:00 p.m.

OVERALL ROUNDUP: Ifo index falls for the fifth time in a row – DIHK is sounding the alarm

MUNICH / BERLIN – The mood in the German economy deteriorated again in November. The Ifo business climate, Germany’s most important economic barometer, fell compared to the previous month by 1.2 points to 96.5 points, as the Ifo Institute announced in Munich on Wednesday. It is the fifth decline in a row. Analysts had expected a somewhat more moderate decline on average. Economists interpreted the results as a sign of economic stagnation, in the worst case even contraction.

ROUNDUP: coalition agreement for traffic light government stands

BERLIN – Germany is at a historic political milestone: two months after the federal election, the SPD, Greens and FDP have concluded their coalition negotiations and thus laid the foundation for the first traffic light federal government. “The traffic light is up,” said SPD Chancellor candidate Olaf Scholz on Wednesday in Berlin. “During the negotiations, the SPD, Greens and FDP agreed on a joint coalition agreement and thus on a new government alliance.” It is not about a policy of the lowest common denominator, “but a policy of great impact,” said Scholz. “We want to dare to make more progress.”

USA: Consumer spending and income increase – inflation rises again

WASHINGTON – US consumer spending and income rose in October. Consumer spending increased by 1.3 percent compared to the previous month, as the Department of Commerce announced in Washington on Wednesday. Analysts had only expected an increase of 1.0 percent. Private income rose by 0.5 percent. An increase of 0.2 percent was expected here.

USA: New home sales rise again

WASHINGTON – The US real estate market continues to gain strength. In October, sales of new homes rose 0.4 percent from the previous month, as the Commerce Department announced in Washington on Wednesday. Analysts had expected stagnation on average. In the previous months, sales had increased significantly in some cases. Extrapolated to the year, 745,000 new houses were sold in October.

Traffic light wants to curtail ministerial rights in company mergers

BERLIN – The Ampel-Coalition wants to curtail rights of the Federal Minister of Economics in the case of company mergers. As stated in the coalition agreement presented on Wednesday by the SPD, Greens and FDP, the so-called ministerial approval procedure is to be reformed in such a way that “there are again appropriate legal possibilities” against a ministerial approval and the Bundestag is involved in the proceedings.

Traffic light wants to counteract the shortage of skilled workers – more immigration

BERLIN – The Ampel-Coalition wants to counteract the shortage of skilled workers in Germany. Germany needs more labor immigration, according to the coalition agreement presented on Wednesday by the SPD, Greens and FDP. Immigration law should be further developed. In addition to the existing law, a second pillar should be established with the introduction of a “chance card” based on a point system, in order to enable workers to gain controlled access to the German job market when looking for a job.

ROUNDUP: The share of renewable energies is to increase to 80 percent by 2030

BERLIN – By 2030, Germany should get 80 percent of its electricity from renewable energies. This emerges from the coalition agreement between the SPD, the Greens and the FDP that was presented on Wednesday. So far, the goal has been to have achieved a share of 65 percent by 2030. According to the contract, the future coalition partners want to drive an ambitious expansion of wind and solar energy and remove hurdles along the way. Last year, according to industry information, renewable energies had a share of around 45 percent.

USA: Initial jobless claims drop to their lowest level since 1969

WASHINGTON – In the US, weekly initial jobless claims have fallen to their lowest level since 1969. Initial jobless claims fell by 71,000 to 199,000 a week, the Department of Labor announced in Washington on Wednesday. Analysts had expected on average a slight decrease to 260,000 applications. The weekly initial applications are considered a leading indicator for the labor market.

USA: Economy is growing a little faster than expected

WASHINGTON – The US economy grew a little faster in the summer than previously known. The gross domestic product (GDP) rose in the third quarter compared to the previous quarter by an annualized 2.1 percent, as the Department of Commerce announced on Wednesday in Washington in a second estimate. A previous estimate had shown growth of 2.0 percent. Analysts had expected a correction to 2.2 percent on average.

Austria’s central bank chief: ECB corona purchases could only be paused

VIENNA – The European Central Bank (ECB) could suspend its Corona securities purchases in the coming year instead of ending them definitively. This is what Austria’s central bank chief Robert Holzmann said on Wednesday in Vienna with a view to the Pepp purchasing program launched in 2020. Such a step could help to preserve the advantages of the program, such as the high flexibility, in case one had to fall back on it in the event of economic shocks. Such a scenario is conceivable, but the ECB does not expect it.

IAEA chief: talks about nuclear inspections in Iran ‘inconclusive’

VIENNA – The Iranian government made no concessions to the International Atomic Energy Agency (IAEA) in negotiations in Tehran. IAEA chief Rafael Grossi informed the board of governors of his organization in Vienna on Wednesday about his visit to Tehran the day before, which dealt with problems in monitoring Iranian nuclear facilities and open questions about the development of the country’s nuclear program. “Despite all of my efforts, these detailed negotiations and discussions on the unresolved issues of surveillance (…) were inconclusive,” said Grossi.

France: Business climate continues to improve

PARIS – In France, business sentiment continued to improve in November. The business climate increased compared to the previous month by two points to 114 points, as the statistics office Insee announced on Wednesday in Paris. Analysts had expected an average of 112 points. The indicator is well above its level before the Corona crisis. The long-term average is also clearly exceeded.

ECB Director Panetta: The central bank shouldn’t react to ‘bad’ inflation

PARIS – From the point of view of ECB Director Fabio Panetta, the European Central Bank (ECB) should not react rashly to the significantly increased inflation. A premature tightening of monetary policy threatened to damage the economy in the euro area and put pressure on demand, Panetta said in Paris on Wednesday. Even sustained high inflation could possibly even require an easing of monetary policy, explained the Italian.

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.

/ jsl

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