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BERLIN (Reuters) – Germany must refrain from funding long-term subsidies with further credit in order to return to its constitutionally enshrined debt brake next year, Chancellor Olaf Scholz said on Wednesday. “The goal must be to reduce inflationary pressures sustainably,” he told the Bundestag legislature as lawmakers convened to discuss the nation’s budget. (Writing by …

Germany’s Scholz says goal to reduce inflation with 2023 debt brake Read More »

PARIS (Reuters) – Activity in the French manufacturing sector slowed further last month, reaching a seven-month low, as steep inflation hit new business while continued supply chain and logistics problems slowed production, a survey showed on Wednesday. S&P Global’s manufacturing Purchasing Managers’ Index (PMI) fell to 54.6 in May, down from 55.7 in April but …

French manufacturing activity at seven-month low in May -PMI Read More »

BERLIN (Reuters) – German manufacturers slightly increased outputs in May, buoyed by order backlogs, increased staffing and, in some cases, improved materials availability, but a further decline in new orders mean rough seas ahead, a survey found on Wednesday. S&P Global’s final Purchasing Managers’ Index (PMI) for manufacturing, which accounts for about a fifth of …

Backlogs, more staff help German factories against headwinds -PMI Read More »

By Mike Dolan LONDON (Reuters) – Markets may be missing the mix. As financial markets parse monetary policy tea leaves by the hour and remain in thrall to the twists and turns of major central banks, some argue investors are missing the broader economic policy picture shaping the years ahead. One of the main themes …

Column-Missing the mix? Central bank view framed by fiscal space :Mike Dolan Read More »

PARIS (Reuters) -The French government will present revised economic growth forecasts by early July, Finance Minister Bruno Le Maire said on Wednesday, adding that he did not foresee a recession. The current forecast sees the economy growing by 4% in 2022. “There will be a revision of the growth figure. I will do that revision …

French economic growth figures to be revised -Le Maire Read More »

BERLIN (Reuters) -German retail sales fell by more than expected in April as consumers feel the pinch of higher prices, especially for food, and retailers face supply problems from the China lockdowns. The Federal Statistics Office said on Wednesday that retail sales were down 5.4% on the month in real terms. A Reuters forecast had …

German retail sales drop in April as food prices bite Read More »

MILAN (Reuters) – Deutsche Bank economists have ramped up expectations over European Central Bank policy tightening and now expect one of the two interest rate hikes in the third quarter to be a 50 basis points hike, more likely in September than July. “A 50bp hike is not inconsistent with the reaction function presented in …

Deutsche Bank sees a 50 bps ECB rate hike by September Read More »

By Leika Kihara TOKYO (Reuters) -The Bank of Japan must maintain its massive monetary stimulus as inflation has yet to sustainably achieve its 2% target, deputy governor Masazumi Wakatabe said on Wednesday, stressing the need to create an environment in which wages can rise faster. Wakatabe also said monetary policy was not the right tool …

BOJ must maintain easy policy until wages rise more, says deputy gov Wakatabe Read More »

(Reuters) – Russian manufacturing activity expanded in May after three months of contraction and price pressures eased notably, but sanctions continued to dent client demand, a survey showed on Wednesday. The S&P Global Purchasing Managers’ Index (PMI) rose to 50.8 from 48.2 in the previous month, climbing above the 50.0 mark that separates expansion from …

Russian manufacturing activity returns to growth in May – PMI Read More »

By Nelson Bocanegra and Julia Symmes Cobb BOGOTA (Reuters) -Colombia’s peso and stock exchange closed higher on Tuesday, in the first session since the contest to elect the country’s next president narrowed to two candidates, including business-friendly construction magnate Rodolfo Hernandez. Leftist Gustavo Petro, who has promised profound social and economic change, won 40.3% of …

Colombia peso, market rally as business-friendly candidate advances Read More »