OVERVIEW at noon / Economy, Central Banks, Politics | 10/27/20

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

Merkel: Corona restrictions must be limited in time

In the fight against the corona pandemic, Federal Chancellor Angela Merkel (CDU) has reaffirmed her goal of putting restrictions on time and preserving the participation of all social groups in life. She is very aware that any interference with fundamental rights must be well justified and explained and that everything that politics does should only be limited in time and legitimized by facts, said Merkel at a care congress.

Scholz calls for decisive measures against the corona crisis

Federal Finance Minister Olaf Scholz (SPD) called for decisive and uniform measures as possible to contain the worsening corona crisis before the video conference of the federal and state governments on the corona crisis, which was planned on Wednesday. “The dramatic increase in the number of infections is very worrying,” said the Vice Chancellor on the short message service Twitter. “Now quick and decisive steps are needed to break this new wave of infections.”

Tourism industry is storming against possible corona measures

The German tourism industry warned ahead of the Corona summit of the federal and state governments planned for Wednesday of economic damage to the industry through measures such as the closure of restaurants and a ban on events. “If the leaked plans for a ‘Lockdown Light’ come true, it would be the next catastrophe for the tourism industry,” said the General Secretary of the Federal Association of the German Tourism Industry (BTW), Michael Rabe.

Retail warns of another lockdown

In view of the debates about a renewed lockdown in the fight against the corona pandemic, the German retail sector is warning of impending business closings. Even a radical lockdown of just one week, as proposed by the CDU’s deputy federal chairman Thomas Strobl, is also viewed critically by Stefan Genth, General Manager of the German Trade Association.

Altmaier: The pandemic will challenge the resilience of the economy

Federal Minister of Economics Peter Altmaier (CDU) has expressed concern about the further development of the coronavirus pandemic and the resulting economic consequences. “We will experience that this pandemic poses major challenges for the resilience of our economy,” said Altmaier at the Franco-German Business Day, in which he participated via video conference from Berlin.

The federal government’s autumn projection postponed to Friday

The announcement of the federal government’s new autumn projection for further economic development will be postponed by two days due to the deliberations on the coronavirus pandemic. The federal press conference announced that it is now scheduled for Friday at 10:00 a.m. instead of Wednesday. “Due to the Prime Minister’s Conference starting on Wednesday, October 28, 2020 at 1:00 p.m. on the deliberations on the current Corona situation, we have to postpone the presentation of the autumn projection from Wednesday to Friday,” said a statement.

France fears a new lockdown

In view of ever new highs in new corona infections, France is apparently facing a new lockdown. Interior Minister Gérald Darmanin said before an emergency cabinet meeting that “tough decisions” are inevitable. A significant extension of the nightly curfew or a temporary lockdown are under discussion.

Belgium threatens another lockdown due to the dramatic corona situation

In Belgium, in view of the rapidly increasing number of infections with the new type of corona virus, there are again the threat of drastic restrictions. In the heavily affected French-speaking part of the country and in the capital Brussels, a “partial lockdown” was already in place on Tuesday, and Flanders could follow suit in the evening after a crisis meeting. So far, attempts have been made at national level to avoid general lockdown measures – now they are apparently coming.

Russia is also tightening anti-corona measures

In view of the sharp rise in the number of infections, Russia is also tightening its anti-corona measures. The responsible consumer protection authority ordered a mask requirement for busy streets and squares, public transport, taxis and elevators. In addition, at the suggestion of the authority, no public events should take place from Wednesday between 11 p.m. and 6 a.m., cafes and restaurants should remain closed during this time.

ECB: Corporate loans grow at a steady pace in September

The growth in lending to non-financial companies in the euro area remained constant in September. According to the European Central Bank (ECB), lending increased at an annual rate of 7.1 percent, as in August and July. The volume of loans extended to private households grew at an annual rate of 3.1 (3.0) percent, with house purchase loans increasing by 4.5 (4.1) percent and consumer loans by 0.1 (0, 3) percent.

ECB: Banks are tightening corporate credit standards significantly

The standards for corporate lending in the euro area developed somewhat more favorably than expected in the third quarter, but are likely to be tightened further in the fourth quarter. According to the latest quarterly lending report from the European Central Bank (ECB), the percentage of banks with tighter corporate credit standards exceeded the percentage of houses with looser standards by 19 points. The demand for corporate loans decreased by 4 points. The banks had expected a tightening of the credit standards by 23 points.

ECB banking supervision wants bad banks with joint financing

The head of the ECB banking supervision, Andrea Enria, wants a quick elimination of non-performing loans after the Corona crisis. “We have to be faster than after the previous crisis. The banking union should make that possible,” writes Enria in an opinion piece published on the website of the European Central Bank (ECB). Asset managers could help avoid the mistakes of the past, he added. This refers to so-called bad banks, to which problem loans are outsourced.

IAB labor market barometer stable in October

The IAB labor market barometer rose by 0.1 point to 100.2 points in October. After the significant increases from the past few months, the leading indicator of the Institute for Employment Research (IAB) has maintained its current level. The IAB labor market barometer for the development of unemployment showed relatively favorable prospects: the corresponding component increased by 0.3 points to 102.4 points.

Spain’s unemployment rate increases in the third quarter

The Spanish unemployment rate rose in the third quarter, reflecting the negative impact of the coronavirus pandemic on the labor market. The rate increased to 16.26 from 15.33 percent in the second quarter, according to the Spanish statistical office INE. The number of applications for unemployment benefits rose 355,000 for the quarter.

Tens of thousands at the anti-France demonstration in Bangladesh

Tens of thousands of people took to the streets in Bangladesh to protest against the statements made by French President Emmanuel Macron on Islam. According to the police, more than 40,000 people took part in the demonstration organized by an Islamist party in the capital Dhaka. The protesters called for a boycott of French goods and burned a picture of Macron. The police stopped the protest march before it got near the French embassy.

+++ economic data +++

Sweden Sep Exports SEK 124.6 billion

Sweden Sep Imports SEK 122.0 billion

Sweden Sep Trade balance surplus SEK 2.6 billion

DJG / DJN / AFP / apo

(END) Dow Jones Newswires

October 27, 2020 08:30 ET (12:30 GMT)

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