The most important events and reports on the economy, central banks and politics from the Dow Jones Newswires program
German retail trade suffers heavy losses with lockdown
The ongoing lockdown brought about a sharp drop in sales in the German retail sector in January. As the Federal Statistical Office (Destatis) announced on the basis of preliminary data, sales after deducting inflation fell by 4.5 percent compared to the previous month. Economists polled by Dow Jones Newswires had only forecast a decline of 1.0 percent. Since December 16, 2020, many retail stores have been closed to limit the opportunities for contact between people.
China’s banking supervisors expect tighter monetary policy
Interest rates in China are likely to rise this year, according to the top banking and insurance regulator, a signal that Chinese authorities plan to tighten monetary policy after getting the pandemic under control within their borders. Developed countries in Europe and the US had introduced ultra-loose monetary policies to stabilize their economies, but that had side effects, said Guo Shuqing, head of the China Banking and Insurance Regulatory Commission, at a press conference.
Barkin: Downside economic risks have decreased
According to the President of the Federal Reserve Bank of Richmond, Thomas Barkin, the negative risks associated with the economic outlook have decreased. Barkin cautioned markets not to fixate on when the Federal Reserve will change monetary policy but rather to see what such a policy change would do. The outlook for the economy has not changed much since the last official estimates in December, he told Bloomberg television.
Australian central bank wants to extend bond purchase program if necessary
The Australian central bank has defended its quantitative easing (QE) program. As announced by the Reserve Bank of Australia (RBA), it is committed to keeping bond yields low to support the economy. If necessary, she will use the instruments at her disposal to achieve her goals. “The Council is committed to maintaining the supportive monetary policy until its goals have been achieved,” said the central bank’s statement. “The Council does not expect these goals to be achieved before 2024.”
Altmaier is considering further corona aid even after openings
Federal Minister of Economics Peter Altmaier (CDU) has promised further corona aid to ailing companies even after possible easing. The goal is “that the economic aid will be optimized, even if there are openings again”, said Altmaier at the annual congress of the association of medium-sized companies BVMW. Because even then it will take longer “until everyone makes 100 percent of sales again”.
In his first conversation with Obrador, Biden emphasizes Mexico’s eye level
New tones in the relationship between the USA and Mexico: In an online summit, US President Joe Biden assured his Mexican counterpart Andrés Manuel López Obrador that he would regard the neighboring country as an equal partner. “The United States and Mexico are stronger when we stand together,” Biden said at the start of the video call. The countries were recently “not perfect neighbors”.
Washington ready to continue talks with Tehran over nuclear dispute
In the nuclear dispute with Tehran, the US government has confirmed its willingness to hold talks with the Iranian side. Washington is still ready to enter into a “significant” diplomatic exchange in order to enable a mutual return to the obligations from the 2015 nuclear agreement, said US State Department spokesman Ned Price. “We are not dogmatic about the form and format of these conversations,” he added.
USA demands dissolution of Saudi Arabian elite unity
The US government has asked Saudi Arabia to disband an elite unit involved in the murder of journalist Jamal Khashoggi. The rapid reaction force, which Crown Prince Mohammed bin Salman serves as bodyguard, should no longer exist, said US State Department spokesman Ned Price in Washington. Meanwhile, the pressure on the US government grew because it had not sanctioned the Crown Prince despite a damning intelligence report on the Khashoggi murder.
USA: Will crack down on Chinese trade practices
Washington wants to use all available instruments to respond to alleged unfair trade practices in Beijing. The government under US President Joe Biden announced that it would comprehensively review trade policy with China. When it released its first trade agenda, the government also said it was determined to use tariffs and other instruments to combat alleged unfair trade practices by China, including unfair subsidies to industries and the use of forced labor targeting Uyghurs and other ethnic minorities.
Trump quietly got vaccinated against coronavirus in January
Former US President Donald Trump quietly got himself vaccinated against the corona virus shortly before the end of his term in office. Trump and his wife Melania were vaccinated in January in the White House, according to the ex-head of state. Trump himself has not yet spoken publicly about the vaccination. The 74-year-old contracted the corona virus last October and repeatedly said after his recovery that he considered himself “immune”.
+++ economic data +++
GB / Nationwide House Price Index Feb + 0.7% vs. Vm; + 6.9% yoy
GB / Nationwide house price index PROG: -0.4% compared to Vm: + 5.4% compared to previous year
GB / Nationwide House Price Index Feb + 0.7% vs. Vm; + 6.9% yoy
GB / Nationwide house price index PROG: + 0.4% compared to Vm: + 5.4% compared to previous year
Japan / unemployment rate Jan 2.9% (PROG: 3.0%)
South Korea Index Leading Indicators Jan 102.7 (Dec: 102.4)
Brazil trade balance Feb surplus USD 1.1bn (Jan: deficit USD 1.1bn)
DJG / DJN / AFP / apo
(END) Dow Jones Newswires
March 02, 2021 03:00 ET (08:00 GMT)
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