Economy: dpa-AFX overview: ECONOMY from 23/06/2022

LONDON – The business climate in the euro area was significantly overshadowed in June. The S&P Global Purchasing Managers’ Index LONDON – The business climate in the euro area was significantly overshadowed in June. The S&P Global (formerly IHS Markit) market leader index fell 2.9 points to 51.9 points a month earlier, market researchers said on Thursday in London after a first round of research. This is the lowest level in almost a year and a half. Analysts had expected a much milder recession at 54.0 points.

OVERALL GROUPS: There is a shortage of gas in Germany – The Russians are moving forward

Kyiv / MOSCOW / BRUSSELS – Since the Russian invasion of Ukraine, food and fuel prices have risen – and now gas is also becoming very scarce. Due to extremely limited deliveries from Russia, the federal government called for an alert level on the “gas contingency plan” on Thursday. Finance Minister Robert Habeck warned companies and consumers to save on gas. It takes a “national effort”. In the evening, four months after the start of the war, the European Union wanted to grant Ukraine EU candidate status, also as a sign of solidarity. Russian troops have stepped up their attacks in eastern Ukraine, but at the same time there have been signs of progress in negotiations to end the Russian blockade of grain in Black Sea ports.

Bundesbank chief: Higher inflation should not be introduced

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ELTVILLE – Bundesbank President Joachim Nagel has warned that high inflation will prevail. “As members of the board, we must ensure that rising inflation does not prevail in the medium term,” Nagel told a rally in Eltville am Rhein on Thursday. “In my opinion, central banks should not react too slowly or too little at the moment.” Otherwise, even stronger interest rate hikes may be needed to bring inflation under control. This would mean much higher financial costs.

GROUP / EU Summit: Hope for Ukraine – Disappointment for the Western Balkans

BRUSSELS – The European Union has dashed the hopes of six Balkan states on their way to the EU. “I can only express my deepest regret to the EU,” Albanian Prime Minister Edi Rama said after an EU-Western Balkans meeting in the North Balkans on Thursday. . “Not even a single war in Europe, which could turn into a global catastrophe, could bring about their unity.”

The EU Commissioner calls for a willingness to compromise on deposit insurance

FRANKFURT / BRUSSELS – EU Financial Markets Commissioner Mairead McGuinness is calling for a compromise in the ongoing dispute over the cross-border security of banks’ clients in Europe. “What is needed is a collective understanding that everyone has to give a little and that we will gain a lot by doing so,” McGuinness told a joint conference of the European Central Bank (ECB) and the European Bank for Reconstruction and Development (SRB). on Thursday in Brussels, which was also broadcast on the Internet.

US: current account with record deficit

WASHINGTON – The chronic US current account deficit hit a record high in the first quarter. Compared to the last quarter of 2021, the deficit increased by $ 66.6 billion to $ 291.4 billion, the Commerce Department in Washington announced on Thursday. This is the highest deficit ever recorded. Analysts had expected an average deficit of $ 275 billion.

Xi opens Brics summit with appeal against sanctions

BEIJING – The heads of state and government of the Brics countries began their talks on Thursday with a new call from China against Western sanctions. The Brics countries, which also include Brazil, Russia, India and South Africa, must “take responsibility” and work for “equality and justice” in the world, Chinese President Xi Jinping demanded in his opening remarks. . Unilateral sanctions must be opposed.

The central bank of Norway is raising interest rates more than expected

OSLO – Norway’s central bank raises interest rates more than expected. The key interest rate will rise by 0.5 percentage points to 1.25%, Norges Bank announced in Oslo on Thursday. Economists expected only an increase of 0.25 points. This is the fourth rate hike since the pandemic began. So far, however, it has always been smaller steps of 0.25 percentage points. In the pandemic, the policy rate was reduced to zero in May 2020.

Russia pays the interest owed on the debt in rubles

MOSCOW – Despite strained relations with the West, Russia continues to pay interest on government bonds – not in dollars or euros, but in rubles. Interest on two bonds (Eurobonds) maturing in 2027 and 2047 was paid on Thursday, the Moscow Ministry of Finance announced. The interest, equivalent to $ 235 million, was sent to the Russian payment service NSD, he said. The ministry said the payment was completed.

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SUMMARY: Read a summary in the business cycle overview. There are several reports in the dpa-AFX news service on this subject.

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