The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
ISM index for US industry rises in July
Activity in the US industry increased in July. The purchasing managers’ index for manufacturing, calculated by the Institute for Supply Management (ISM), rose to 54.2 (previous month: 52.6). Economists surveyed by Dow Jones Newswires had forecast an increase to 53.6. Above 50 meters, the economic barometer signals growth, below it indicates a shrinking.
US construction spending fell in June
Construction spending in the United States decreased in June. According to the US Department of Commerce, they decreased seasonally adjusted by 0.7 percent compared to the previous month. Economists had forecast an increase of 1.2 percent. The change from minus 2.1 percent reported for the previous month was revised to minus 1.7 percent.
ECB bond holdings grow slower than before in July
Central banks of the Eurosystem expanded their bond holdings under the APP and PEPP bond purchase programs in July more slowly than before. According to the ECB, the holdings of both programs together rose by 107.001 (June: 159.115) billion euros. The stocks under the PEPP increased by 85.423 (120.321) billion euros and those under the APP by 21.578 (38.794) billion.
ECB: QE bond holdings rose by EUR 15.044 billion in the previous week
The portfolio of securities held by the Eurosystem central banks under the APP and PEPP purchase programs increased in the week ending July 31. According to information from the European Central Bank (ECB), it increased by 15.044 billion euros to 3,236.798 (previous week: 3,221,754) billion. The previous week it had expanded by 27.183 billion euros.
WHO: “Panacea” for coronavirus may never be found
The World Health Organization (WHO) has warned against being overly optimistic about finding a coronavirus vaccine. “There is no panacea at the moment, and maybe there will never be,” said WHO chief Tedros Adhanom Ghebreyesus. Therefore, the best protection is still to follow all standard rules such as wearing masks, frequent hand washing and keeping clear.
France stops ratifying extradition agreements with Hong Kong
In response to the new controversial security law for Hong Kong, the French government stops ratifying an extradition agreement with the Chinese Special Administrative Region. In view of the “recent developments”, France will not ratify the extradition agreement signed in May 2017 for the time being, the Foreign Ministry said in Paris on Monday.
FDP faction prepares constitutional complaint against solos
Leading FDP members of the Bundestag want to file a complaint against the solidarity surcharge with the Federal Constitutional Court. Several faction board members are currently preparing a complaint, parliamentary director Florian Toncar told Wirtschaftswoche.
DJG / DJN / AFP / apo / err
(END) Dow Jones Newswires
August 03, 2020 13:00 ET (17:00 GMT)