Economy

Helped by fiscal boost, German economy seen rebounding: Bundesbank

FRANKFURT (Reuters) – The German economy is rebounding and may well continue to do so in the second half of the year, supported by the government’s fiscal stimulus measures taken in response to the coronavirus outbreak, the Bundesbank said on Monday.



a man standing next to a car: FILE PHOTO: VW re-starts Europe's largest car factory after coronavirus shutdown


© Reuters/POOL
FILE PHOTO: VW re-starts Europe’s largest car factory after coronavirus shutdown



a close up of a piece of paper: The new 100 Euro banknote is presented at the headquarters of Germany's Federal reserve Bundesbank in Frankfurt


© Reuters/KAI PFAFFENBACH
The new 100 Euro banknote is presented at the headquarters of Germany’s Federal reserve Bundesbank in Frankfurt

“In the second half of the year, the economic recovery could continue,” the German central bank said in its monthly report. “The recent stimulus package will also contribute to that.”

The German central bank also said it expected the pandemic-related global slowdown in trade to bring down the country’s oversized current account surplus.

This has been the target of criticism both within the European Union and by Donald Trump’s U.S. administration for causing macro-economic imbalances.

The

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Euro zone economy not yet out of danger from coronavirus: ECB’s Panetta

BERLIN (Reuters) – The danger to the euro zone economy from the coronavirus pandemic is not yet over, European Central Bank board member Fabio Panetta told La Repubblica, adding that he saw no need to make any tweaks to the bank’s massive asset purchase programme.



a man wearing a suit and tie: Mario Draghi receives the Order of Merit of the Federal Republic of Germany in Berlin


© Reuters/ANNEGRET HILSE
Mario Draghi receives the Order of Merit of the Federal Republic of Germany in Berlin

Tackling the biggest economic collapse in living memory, the ECB is buying debt through a 1.35 trillion euro ($1.58 trillion) Pandemic Emergency Purchase Programme (PEPP) and paying banks to lend out its cash as it tries to protect the bloc’s economy from the coronavirus fallout.

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“It’s too soon to declare victory,” Panetta said in the interview circulated by the ECB on Monday, adding that the euro zone economy was likely to see a bigger contraction in the second quarter than in the first three months

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US STOCKS-Wall St adds to gains after Fed vows more support to U.S. economy

(For a live blog on the U.S. stock market, click or type LIVE/ in a news window)

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* Fed leaves rates unchanged, promised more support

* Starbucks sees business ‘steadily recovering’, shares up

* Boeing falls after bigger-than-expected loss

* Advanced Micro Devices surges after revenue forecast raise

* Indexes up: Dow 0.4%, S&P 1.02%, Nasdaq 1.2% (New throughout, updates prices, market activity and comments to late afternoon; new byline, adds NEW YORK dateline)

By Sinéad Carew

New York, July 29 (Reuters) – U.S. stocks added to gains on Wednesday after the U.S. Federal Reserve repeated a pledge to use its “full range of tools” to support the economy for as long as it takes to recover from fallout of the pandemic.

At the end of its two-day policy meeting the Fed said it maintained its interest rate target range until it is confident the economy has weathered

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Trump vs. Biden: Where they stand on health, economy, more

FILE - In this July 29, 2020, file photo President Donald Trump arrives to deliver remarks about American energy production during a visit to the Double Eagle Energy Oil Rig in Midland, Texas. Trump, like many fellow Republicans, holds out tax reductions and regulatory cuts as economic cure-alls and frames himself as a conservative champion in seemingly endless culture wars. But the president, still trying to fashion himself as an outsider, offers little detail about how he’d pull the levers of government in a second term.

FILE – In this July 29, 2020, file photo President Donald Trump arrives to deliver remarks about American energy production during a visit to the Double Eagle Energy Oil Rig in Midland, Texas. Trump, like many fellow Republicans, holds out tax reductions and regulatory cuts as economic cure-alls and frames himself as a conservative champion in seemingly endless culture wars. But the president, still trying to fashion himself as an outsider, offers little detail about how he’d pull the levers of government in a second term.

AP

President Donald Trump and his Democratic challenger, Joe Biden, both promise sweeping progress over the next four years –- via starkly different paths.

Trump, like many fellow Republicans, holds out tax reductions and regulatory cuts as economic cure-alls and frames himself as a conservative champion in seemingly endless culture wars. But the president, still trying to fashion himself as an

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Coronavirus Economy: What We Know About The GOP Stimulus Package

$600 unemployment checks are about to stop. Congressional Republicans have put forward a stimulus plan. We’ll dig into the details.

Guests

Claudia Sahm, director of macroeconomic policy at the Washington Center for Equitable Growth. (@Claudia_Sahm)

Kenneth Rogoff, professor of economics and public policy at Harvard University. Co-author of “This Time Is Different.” (@krogoff)

Heather Caygle, Politico reporter covering Congress. (@heatherscope)

From The Reading List

Politico: “‘It’s a mess’: Republican senators deride key proposals in GOP virus package” — “he jockeying on Capitol Hill underscores how far apart both parties remain — and the treacherous path Senate Majority Leader Mitch McConnell faces as he confronts internal GOP divisions and kicks off negotiations with Democrats.”

Washington Post: “Coronavirus relief talks hit impasse on Capitol Hill” — “Negotiations on a new coronavirus relief bill hit an impasse on Capitol Hill on Wednesday,

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U.S. GDP likely sank a record 35% in the 2nd quarter after coronavirus ravaged the economy

ECONOMIC REPORT



a woman holding a sign: People walk by a closed business in the Brooklyn borough of New York City. The U.S. economy is expected to show a record decline in growth in the second quarter due to the coronavirus.


© Getty Images
People walk by a closed business in the Brooklyn borough of New York City. The U.S. economy is expected to show a record decline in growth in the second quarter due to the coronavirus.

The U.S. suffered the biggest economic decline in the second quarter since the government began keeping track after World War Two. How much? Try 30% — or more.

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Economists polled by MarketWatch estimate gross domestic product — the official scorecard for the U.S. economy — contracted by a record 34.6% annual pace from the start of April to the end of June.

Before the coronavirus pandemic, the largest drop in GDP on record was 10% in 1958. The government’s quarterly GDP figures go back to 1947.

The steepest quarterly drop during the 2007-2009 Great Recession was 8.4%.

Here is what to watch in the second-quarter GDP report when published

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With the economy tanking, more people seeking unclaimed cash

TALLAHASSEE, Fla. (AP) — Florida is seeing a surge in people making claims for unclaimed property since the coronavirus pandemic has shaken up the state’s economy, but apparently President Donald Trump hasn’t made an effort to have money returned to him.

Florida Chief Financial Officer Jimmy Patronis said in a telephone interview that the state is setting records for the amount of money being returned to people since the pandemic began.

“We pushed out over $38 million just in the month of March. That’s the second highest month in the history of the program,” Patronis said. “Just during the COVID-19 pandemic time, we’ve pushed out almost $124 million. That’s $124 million that’s going back into the economy. That’s money that’s not sitting in our accounts anymore.”

There are millions of accounts with unclaimed property. It could be a savings account someone forgot about, a car insurance refund, inheritances and more.

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Congress Has Many Ways To Boost The Economy By Getting Cash Into People’s Pockets. Which One Is Best?

As Congress scrambles to pass another COVID-19 relief bill, it must decide how best to put money into the hands of people who are suffering from the economic fallout of the pandemic. The three leading choices appear to be: extending enhanced federal unemployment benefits, expanding refundable tax credits, or another round of direct economic impact payments. A fourth idea, President Trump’s plan for a payroll tax holiday, appears dead. But which is best?

Unemployment benefits. In theory, continuing enhanced jobless benefits is a strong choice. It targets aid to those who need it most—people who lost their jobs. But in practice, distributing money through the unemployment system has problems.

The CARES Act included a temporary $600 per week boost

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UK Companies and Shoppers Send Recovery Signals for Economy | Investing News

By Andy Bruce and David Milliken

LONDON (Reuters) – British businesses have reported their fastest upturn in five years and shoppers pushed their spending back to near pre-lockdown levels, a survey and data published on Friday showed.

An early flash reading of the IHS Markit/CIPS UK Composite Purchasing Managers’ Index (PMI) shot up to 57.1 in July from 47.7 in June, above the 50 threshold for growth for the first time since lockdown began in March.

The figure, its highest since June 2015 and above the euro zone’s reading for this month, was better than all forecasts in a Reuters poll of economists.

The surge suggested Britain’s economy would return to growth in the third quarter after shrinking by more than 25% in March and April, Chris Williamson, chief business economist at PMI compiler IHS Markit, said.

“Even with the July rebound, there’s a long way to go before the

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Startups In An Unpredictable Economy: What To Do Now

The recent economic downturn has left many entrepreneurs reeling. It seemed that one minute their businesses were flying high in a full-steam-ahead economy, and in the next they were freefalling in the midst of a financial drop fueled by a global pandemic.

In June, the National Bureau of Economic Research confirmed the worst: The United States is officially in a recession.

Admittedly, we’ve been on one heck of a ride for the last decade, economically speaking. Our venture-backed startup ecosystem had been enjoying the trip as well, with investment money flowing into private markets and business valuations at all-time highs. But as the adage goes, what goes up must come down. It was unrealistic to think that such a hot private-market economy could sustain its pace forever.

There is a bright spot

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