OVERVIEW in the evening/economy, central banks, politics

DJ OVERVIEW in the evening/economy, central banks, politics

The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program.

Putin orders ceasefire in Ukraine for Friday and Saturday

Russian President Vladimir Putin announced a 36-hour ceasefire in Ukraine shortly before Orthodox Christmas. According to the appeal of the Russian Orthodox Patriarch Kirill, Putin ordered a unilateral ceasefire from Friday from 10:00 a.m. (CET) to Saturday at 10:00 p.m. (CET), the Kremlin announced on Thursday. The Russian army should therefore stop fighting on the entire front.

Baerbock underlines readiness for further weapon deliveries

During her inaugural visit to Great Britain, Federal Foreign Minister Annalena Baerbock underlined Germany’s willingness to supply additional arms to Ukraine. Berlin will “repeatedly check what further military support is needed so that more people can be freed,” Baerbock told journalists after talks with her British colleague James Cleverly. The defense of Ukraine “of course also includes the liberation of the occupied areas,” Kyiv needs the necessary funds for this. Before Baerbock’s appearance in London, the AFP news agency had learned from government circles that after France’s decision to supply battle tanks, Germany and the United States are apparently now also preparing further support for Kyiv. Both countries are planning a “qualitatively new step” in arms deliveries.

Initial US jobless claims fall more than expected

The number of initial claims for U.S. unemployment insurance benefits decreased more than expected for the week ended December 31, 2022. Compared to the previous week, it fell by a seasonally adjusted 19,000 to 204,000, according to the US Department of Labor. Economists polled by Dow Jones Newswires had only predicted a drop to 223,000. The figure for the previous week was revised down to 223,000 from the original 225,000. The four-week moving average decreased 6,750 to 213,750. In the week ended December 24, 1.694 million people received unemployment benefits, down 24,000 from the previous week.

ADP: US private sector creates significantly more jobs than expected

Employment in the US private sector rose more than expected in December. As the job market service provider Automatic Data Processing Inc (ADP) reported, 235,000 (November: 182,000) additional jobs were created. Economists polled by Dow Jones Newswires had predicted an increase of just 153,000 jobs. 213,000 jobs were added in the service sector and 22,000 in the manufacturing sector. While smaller companies created jobs on balance, large companies lost them. Salaries grew at an annual rate of 7.3 percent.

S&P Global: US service provider with slower business in December

According to a survey by S&P Global, business activity in the US service industry was more subdued in December than in the previous month. The purchasing managers’ index calculated by S&P Global for the sector fell to 44.7 from 46.2 points in the second publication. In the first publication, 44.4 points were reported. Overall, the development of the US economy also slowed down in December.

US trade deficit lower than expected in November

The US trade deficit fell slightly more sharply than expected in November. The deficit was $61.51 (October: $77.85) billion, according to the Bureau of Economic Analyzes (Bea). Economists polled by Dow Jones Newswires had forecast a minus of 63.10 billion. Exports fell 2.0 percent to $251.86 billion, imports fell 6.4 percent to $313.37 billion.

George: Rates need to stay above 5% for some time

Kansas City Fed President Esther George set her forecast for the Fed funds rate at over 5 percent in December and says she expects interest rates to stay there for a while. George, who retires at the end of the month, told CNBC the recent declines in inflation are encouraging but have not changed their interest rate outlook. “Households have a lot of money at the moment,” she said. The more households held on to these reserves, the easier it would be to bring inflation down. If these funds are spent on the other hand, it will become more difficult for the Fed to get inflation under control.

China’s central bank extends mortgage rate relief

China’s central bank has extended easing of mortgage lending. According to the People’s Bank of China (PBoC), local authorities are still allowed to lower mortgage rates for local first-time homebuyers in regions where house prices have fallen for three consecutive months on a monthly or annual basis. This is intended to support demand for residential real estate. Analysts believe China missed its 5.5 percent growth target last year due to the decline in the real estate market and the no-Covid policy. According to estimates, the gross domestic product has increased by less than 3 percent.

Report: Lambrecht presents plan for Bundeswehr reform

According to a report, Federal Defense Minister Christine Lambrecht (SPD) has completed her plan for reforming the Bundeswehr. The 63-page paper was sent to the staff council and other participation bodies in the Federal Ministry of Defense and should be presented to the Bundestag next week, reported Die Welt. According to her own statements, the report is available.

The federal and state governments want to submit a proposal for clinic reform by the summer break

The federal and state governments want to present a joint draft of a law to reform hospital financing by the summer break. “We are on the eve of a revolution in the hospital sector,” said Federal Health Minister Karl Lauterbach (SPD) on Thursday in Berlin after talks with the state health ministers. The aim is to overcome the “through economization of medicine” that has arisen from the previous flat-rate system. “The hospitals are in an emergency,” said Lauterbach. Meanwhile, 60 percent have significant financial problems, there are major quality deficits.

Federal government wants to support the development of synthetic fuels with 1.9 billion euros

Despite the planned phasing out of the classic internal combustion engine at EU level, the federal government wants to stick to the development of synthetic fuels. 1.9 billion euros from the climate and transaction fund are earmarked for the further development of e-fuels and “advanced biofuels” by 2026, according to a response to a small question from the CDU/CSU parliamentary group published on Thursday. However, the approval of the EU Commission for this funding measure is still pending.

Contact the author: konjunktur.de@dowjones.com

DJG/DJN/AFP/hab/brb

(END) Dow Jones Newswires

January 05, 2023 1:00 PM ET (6:00 PM GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

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