OVERVIEW at noon / Business Cycle, Central Banks, Politics | 02/23/21

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

Eurozone-Inflation jumps into positive territory in January

After five months, the annual inflation rate in the euro zone has returned sharply into positive territory. In January, the inflation rate soared to 0.9 percent, after consumer prices had fallen by 0.3 percent in December. As expected by economists, the statistics agency Eurostat confirmed its first estimate of February 3rd. The so-called core inflation, which leaves particularly volatile prices outside, also increased by leaps and bounds in January.

Banking Association: Financing conditions for companies are stable

According to new information from the Association of German Banks (BdB), the financing conditions for companies in Germany remained stable during the crisis. The current situation of companies in Germany is twofold, explained the banking association in Berlin. While industry and large medium-sized companies have so far mostly come through the crisis without any significant impact, retail and service sectors have been hit hard by the lockdown. This development will intensify in the coming months.

ING: Inflation 2021 higher than ECB forecasts

ING expects inflation developments to overshadow the scenario envisaged in the projections of the European Central Bank (ECB). “In December, the ECB forecast 0.4 percent inflation for the first quarter and 1.5 percent for the fourth quarter – it is very unlikely that it will stay that way,” writes Europe’s chief economist Carsten Brzeski. 2021 is likely to be the first year in a long time in which the actual inflation trend exceeds ECB forecasts. However, Brzeski believes that most of the higher inflation will be the result of one-off special factors.

Rabo: Lagarde is turning the bond market

According to Rabobank, the ECB has President Christine Lagarde on Monday with its statement that the European Central Bank (ECB) is monitoring the nominal yields of long-term bonds, caused a short-term turnaround in the bond market. “That was enough to turn the development of the yield on ten-year Bunds – to minus 3.4 basis points from plus 2.5 points at the beginning of trading,” the bank wrote in a comment.

Federal government satisfied with housing offensive

Chancellor Angela Merkel (CDU) has drawn a positive conclusion on the housing policy of the federal government. “From my point of view, the balance is really impressive,” said Merkel at the digital balance sheet summit for the federal government’s housing offensive in 2018. The self-set goal of 1.5 million completed apartments in the current electoral period is “not out of reach”, but one get very close to the goal.

Savings bank chief economists call for further EU free trade agreements

The chief economists of the Sparkassen-Finanzgruppe have called on the European Union (EU) to step up its efforts to achieve international free trade agreements with important economic areas. The German Savings Banks and Giro Association (DSGV) said in a press release that they saw a good time for this. In the USA, under the new President Joe Biden, a new, more cosmopolitan government is in office, and in Asia the world’s largest free trade area will emerge in the next few years. Global trade according to common rules also benefits the Europeans, who emphasized the aspect of sustainability for the time after the crisis.

Economists insist on a more market economy for climate protection

With a view to the climate targets, leading economists warn against government intervention and instead increasingly call for market-based instruments. Even if the protection of the climate is the greatest task of this generation, it “does not make sense to align all areas of economic policy with environmental goals”, says the new annual issue of the Scientific Advisory Board of the Family Business Foundation on the European Green Deal. “If all areas are subordinated to climate protection, then the state promotes Planned economy, Small parts and malfunction. ”

Ifo study: Berlin rent cap reduces housing supply

With the rent cap in Berlin, rental and purchase prices have risen less than elsewhere, but at the same time the supply of rental apartments has decreased. This is shown by a new study by the Ifo Institute, which compares Berlin with other large cities with a population of over 500,000. “The growth rates in purchase prices in Berlin have been 5 to 9 percentage points below the control group since the third quarter of 2020,” said Ifo President and co-author Clemens Fuest.

Lawyers and notaries are required to report suspicious property sales

Lawyers and notaries are required to report suspicious real estate transactions. The new regulation in the Money Laundering Act is compatible with your duty of confidentiality, decided the Berlin administrative court in a decision published on Tuesday. It rejected the urgent application of a lawyer and notary against it.

Laschet accuses the Greens of “double standards”

CDU leader Armin Laschet has sharply criticized the Greens for their climate and environmental policy and ruled out a joint alliance. “The Greens’ double standards annoy me massively,” said the North Rhine-Westphalian Prime Minister of the Stuttgarter Zeitung and the Stuttgarter Nachrichten with a view to decisions on the exit from coal. The program at the federal level has “a lot of left-wing and ideological ideas. The Green bosses don’t like to talk about that.”

Greece wants to repay loans early

Greece intends to repay part of the outstanding loans from the International Monetary Fund (IMF) early and has asked its European partners for approval. An early repayment of up to 2,786 special drawing rights (SDR) and thus around 3.3 billion euros is planned, announced the Bundestag press service in Berlin.

+++ economic data +++

Sweden Jan unemployment rate 498,000

Sweden Jan Unemployment Rate 9.3%

Sweden Jan Unemployment Rate FORECAST: 9.0%

DJG / DJN / AFP / apo

(END) Dow Jones Newswires

February 23, 2021 07:30 ET (12:30 GMT)

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