The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
Sder expects billions of euros to boost the economy
CSU boss Markus Sder welcomed the resolutions of the auto summit as “a great signal”. Bavaria has been very committed to extending the purchase premium for electric cars until 2025, said the state’s prime minister following a cabinet meeting in Munich. “That will also be of great benefit to the economy, because we can feel that the order books are full, especially for electromobility,” said Sder. “That’s why it will give Bavaria a real boost.”
Laschet: The state cannot afford to reissue November aid
North Rhine-Westphalia’s Prime Minister Armin Laschet (CDU) sees no financial leeway for a new edition of the corona aid granted by the federal government in November for the catering industry and for cultural and leisure facilities. The corona infections have not increased exponentially for a few days, but fell slightly, says Laschet. This shows that the restrictions decided by the federal and state governments for November were working, said the CDU politician and candidate for the CDU chairmanship at the economic summit of the Sddeutsche Zeitung.
Enria: Deposit insurance isn’t coming in three years
The joint safeguarding of bank deposits in the euro area (European Deposit Insurance Scheme – Edis) planned by the EU Commission will not come about for the time being, according to the head of the ECB banking supervision, Andrea Enria. “We know that a fully developed Edis should be the goal, but we also know that this is not to be expected in the next few months or years,” Enria said at the virtual Euro Finance Week. He added: “My mandate will end in a little over three years and I doubt there will be a fully functioning Edis by then.”
FSB: Big banks hold capital for liquidation in excess of plan
According to the Financial Stability Board (FSB), the systemically important and globally active banks (G-SIBs) already meet the requirements for capital in the event of liquidation that will not apply until 2022. “The G-SIBs meet the minimum requirements for the external Total Loss Absorbing Capacity (TLAC), which will apply from 2022,” says an FSB publication.
Eurozone inflation remains negative in October
Prices in the euro zone continued to plummet in October. Compared to the same month last year, consumer prices were 0.3 percent lower, as the statistics agency Eurostat announced in a second publication. As expected by economists, it confirmed its first estimate of October 30th. In September, too, prices fell by 0.3 percent.
EU states approve “lobster” trade deal with the USA
The EU states have given the green light to the so-called Hummer deal with the USA. “As a step to improve transatlantic trade relations, the EU will abolish tariffs on lobster imports,” declared the Council of Member States. In return, US surcharges on EU products such as ready meals, crystal glass and lighters will decrease. The agreement, which the Council calls a “mini tariff package”, is “the first tariff reduction between the EU and the US in two decades”.
Hungary accuses the EU of “blackmail” in the dispute over the rule of law
Hungarian Prime Minister Viktor Orban has accused the EU of “blackmailing” immigration policy in the dispute over the planned rule of law mechanism. The disbursement of EU funds should be used “to blackmail countries that are resisting immigration,” said Orban in the online service Twitter. In Brussels, “only countries that accept migrants are viewed as constitutional states,” Orban criticized.
Slovenia joins Hungary and Poland in the dispute over the rule of law mechanism
Slovenia takes the side of Poland and Hungary in the dispute over the possible cancellation of EU funds in the event of violations of the rule of law. “Only an independent legal authority can determine what the rule of law is, not a political majority,” wrote Slovenian Prime Minister Janez Jansa in a letter to EU Council President Charles Michel.
Iran wants to comply with the nuclear deal again after US sanctions are lifted
Iran wants to meet its obligations under the international nuclear agreement “automatically” again if the future US administration under Joe Biden lifts the economic sanctions against the country. Iranian Foreign Minister Mohammed Jawad Sarif told the government newspaper Iran that his government would take such a step “automatically” if Washington gives in. There is no need to negotiate or set conditions, he added.
+++ economic data +++
US / MBA Market Index Week ended Nov 13 -0.3% to 831.5 (previous week: 833.9)
US / MBA Purchase Index Week ended Nov 13 + 3.5% to 303.9 (previous week: 293.5)
US / MBA Refinance Index Week ended Nov 13 -1.8% to 3,901.6 (previous week: 3,973.1)
DJG / DJN / AFP / apo
(END) Dow Jones Newswires
November 18, 2020 7:30 AM ET (12:30 PM GMT)