Latest news with #DeutscheBundesbank
Yahoo
09-07-2025
- Business
- Yahoo
German exports drop as US shipments decline ahead of tariff deadline
German exports dropped more than expected in May, declining 1.4% month-on-month, from -1.6% in April. The year-on-year rise came to 0.4% in May, the federal statistics office confirmed on Tuesday. Imports, meanwhile, dropped 3.8%, and increased 4.2% year-on-year. This brought Germany's trade balance to €18.4 billion, from €15.7bn in April. The data shows a significant decline in shipments to the US after tariff frontloading boosted month-on-month export rises to 1.8% in February and 1.3% in March. Despite this decrease, the US remains the most important destination for German products. Negotiating as part of the EU, Germany is seeking to avoid a threatened 50% tariff on its goods sent to the US by negotiating a trade framework with the Trump administration before a deadline set for 1 August. Earlier this year, when President Donald Trump announced his so-called 'reciprocal' tariffs, the EU was originally hit with a 20% tariff rate. The White House subsequently paused duties for 90 days following market turmoil, a temporary reprieve set to expire on 9 July. The administration then pushed this date back, allowing more time for last-minute negotiations. It now appears that the EU will accept a 10% baseline tariff on its US exports, although the bloc is looking for carve-outs that will lower the burden on key sectors. Separate from the so-called 'retaliatory' tariffs, the EU is also facing a 25% duty on automobiles and car parts sent to the US, as well as a 50% tariff on steel and aluminum exports. Brussels is seeking to soften these blows by securing a more advantageous trade framework. German auto exports to the US fell by 13% in April and 25% in May compared to the same months a year earlier, the VDA industry association said last week. Even without the added complication of tariffs, the German economy has been struggling these past few years, reeling from Europe's energy price spike, low productivity and a lack of infrastructure investment. Over the last two years, GDP growth has fallen into negative territory, and the head of the Deutsche Bundesbank, Joachim Nagel, has warned that new duties could put the country on track for another contraction this year. 'More generally speaking, with the hard macro data in for the first two months of the second quarter, the German economy looks set for yet another stagnation or even small contraction,' Carsten Brzesk, Global Head of Macro for ING Research, said on Tuesday. 'While retail sales and construction activity were down compared with the first quarter, the small uptick in industrial production is not enough to offset the expected drag from trade.' Related German business sentiment rises: Ifo sees sixth consecutive lift Germany's 'whatever it takes' moment: Fiscal bazooka ignites market rally In May, industrial production in Germany increased by 1.2% month-on-month after a 1.6% drop in April, according to data released by the federal statistics office on Monday. Retail sales in Germany dropped by 1.6% month-over-month in May. Despite challenges facing the country, Berlin's promise to boost spending on defence and infrastructure has cheered investors. The government recently approved a constitutional amendment to its 'debt brake' rule, meaning defence spending above 1% of GDP will not be subject to borrowing limits. Chancellor Friedrich Merz wants to boost military spending to 3.5% of gross domestic product by 2029. The government has also created a €500 billion extrabudgetary fund for additional infrastructure spending, set to give businesses an added boost.
Euronews
08-07-2025
- Business
- Euronews
German exports drop as US shipments decline ahead of tariff deadline
German exports dropped more than expected in May, declining 1.4% month-on-month, from -1.6% in April. The year-on-year rise came to 0.4% in May, the federal statistics office confirmed on Tuesday. Imports, meanwhile, dropped 3.8%, and increased 4.2% year-on-year. This brought Germany's trade balance to €18.4 billion, from €15.7bn in April. The data shows a significant decline in shipments to the US after tariff frontloading boosted month-on-month export rises to 1.8% in February and 1.3% in March. Despite this decrease, the US remains the most important destination for German products. Negotiating as part of the EU, Germany is seeking to avoid a threatened 50% tariff on its goods sent to the US by negotiating a trade framework with the Trump administration before a deadline set for 1 August. Earlier this year, when President Donald Trump announced his so-called 'reciprocal' tariffs, the EU was originally hit with a 20% tariff rate. The White House subsequently paused duties for 90 days following market turmoil, a temporary reprieve set to expire on 9 July. The administration then pushed this date back, allowing more time for last-minute negotiations. It now appears that the EU will accept a 10% baseline tariff on its US exports, although the bloc is looking for carve-outs that will lower the burden on key sectors. Separate from the so-called 'retaliatory' tariffs, the EU is also facing a 25% duty on automobiles and car parts sent to the US, as well as a 50% tariff on steel and aluminum exports. Brussels is seeking to soften these blows by securing a more advantageous trade framework. German auto exports to the US fell by 13% in April and 25% in May compared to the same months a year earlier, the VDA industry association said last week. Even without the added complication of tariffs, the German economy has been struggling these past few years, reeling from Europe's energy price spike, low productivity and a lack of infrastructure investment. Over the last two years, GDP growth has fallen into negative territory, and the head of the Deutsche Bundesbank, Joachim Nagel, has warned that new duties could put the country on track for another contraction this year. 'More generally speaking, with the hard macro data in for the first two months of the second quarter, the German economy looks set for yet another stagnation or even small contraction,' Carsten Brzesk, Global Head of Macro for ING Research, said on Tuesday. 'While retail sales and construction activity were down compared with the first quarter, the small uptick in industrial production is not enough to offset the expected drag from trade.' In May, industrial production in Germany increased by 1.2% month-on-month after a 1.6% drop in April, according to data released by the federal statistics office on Monday. Retail sales in Germany dropped by 1.6% month-over-month in May. Despite challenges facing the country, Berlin's promise to boost spending on defence and infrastructure has cheered investors. The government recently approved a constitutional amendment to its 'debt brake' rule, meaning defence spending above 1% of GDP will not be subject to borrowing limits. Chancellor Friedrich Merz wants to boost military spending to 3.5% of gross domestic product by 2029. The government has also created a €500 billion extrabudgetary fund for additional infrastructure spending, set to give businesses an added boost.
Finextra
17-06-2025
- Business
- Finextra
Eurosystem launches single collateral management system
The Eurosystem successfully launched its new, unified Eurosystem Collateral Management System (ECMS) on 16 June 2025 after the migration to the new set-up was completed over the weekend of 13-15 June. 0 The ECMS thus becomes the fourth TARGET Service in operation, advancing the Eurosystem's vision for a unified, efficient and innovative European financial framework. The ECMS manages assets used as collateral in Eurosystem credit operations. Together with the other TARGET Services, the ECMS will ensure that cash, securities and collateral can flow freely across Europe. The software and the environment for the new system were delivered by the Deutsche Bundesbank, the Banco de España, the Banque de France and the Banca d'Italia - the four national central banks that act as service providers for TARGET Services (T2, TARGET2-Securities and TIPS). The successful launch of the ECMS reflects the joint efforts and commitment of all euro area central banks in supporting their market participants (counterparties, central securities depositories and triparty agents) throughout this project. Thanks to close cooperation and extensive activities such as testing and migration rehearsals, all parties have ensured that participants can fully leverage the benefits of the new platform from day one. With the ECMS going live, the Eurosystem now offers a single system that harmonises the management of collateral for Eurosystem credit operations. The ECMS replaces the individual national collateral management systems previously operated by the 20 euro area national central banks. Furthermore, the ECMS will facilitate the smooth flow of cash, securities and collateral within the euro area by enhancing the liquidity management features of the TARGET Services.
Bloomberg
23-04-2025
- Business
- Bloomberg
Bloomberg Surveillance TV: April 23, 2025
- Julian Emanuel, Chief Equity & Quantitative Strategist at Evercore ISI - Joachim Nagel, President at Deutsche Bundesbank - Torsten Slok, Chief Economist at Apollo Management - Dan Ives, Head Global Technology at Wedbush Securities Julian Emanuel, Chief Equity & Quantitative Strategist at Evercore ISI, offers his S&P 500 outlook amid further uncertainty about tariffs and corporate earnings. Joachim Nagel, President at Deutsche Bundesbank, joins from the IMF Spring Meetings to talk about the outlook for European and global economies as the US levies global tariffs. Torsten Slok, Chief Economist at Apollo Management, talks about the outlook for a US recession this year. Dan Ives, Head Global Technology at Wedbush Securities, breaks down Tesla earnings.
Yahoo
13-03-2025
- Business
- Yahoo
US tariffs could deepen Germany's recession, says bank
Tariffs on goods being imported into the US could tip Europe's largest economy into another recession, according to the president of Germany's central bank. Germany economy has contracted for the past two years and with tariffs, the country "could expect a recession for this year" too, Joachim Nagel, the head of the Deutsche Bundesbank, told the BBC World Service in an exclusive interview. Without tariffs, the bank forecasts the German economy will stagnate but still grow, by about 0.2%, he added. He said "there are only losers" when imposing tariffs, and supported the EU's retaliatory measures against US President Donald Trump's 25% tariff on all steel imports from overseas. Tariffs are a central part of Trump's overall economic vision - he hopes they will boost US manufacturing and protect jobs, but critics say in the immediate term they will raise prices for US consumers. In response to Trump's move, the EU has hit back with import taxes on a range of US products, which are set to come into force on 1 April. Mr Nagel called Trump's tariff policy "economics from the past" and "definitely not a good idea". A global trade war is one of the concerns from tariffs and retaliatory tariffs, he said, but added it was a "necessity" for the EU to react "because if something is working against you, you can't accept a policy like this". However, he suggested that when the US realises that the price that needs to be paid will be "highest on the side of the Americans", it will allow further opportunity for all sides to come to a different resolution. "I hope that in the end, good policy will succeed," he said. How will the latest Trump tariffs affect the UK? Trump halts plan for 50% steel and aluminium tariffs on Canada EU hits back at Trump tariffs and warns against trade war Germany's export economy had been one of its strengths in past decades, and its cars such as BMW, Mercedes, Volkswagens and Audis are popular in the US. Mr Nagel refuted claims that Germany was the "sick man of Europe", saying it had a "strong economic basis" and "strong small and medium sized companies". "But nevertheless, when you are exposed to an export-oriented model, then you are more exposed in a situation when tariffs are going up and there are so many uncertainties, so many unknowns," he added. He said Germany could overcome such challenges "over the next couple of years". However, German consumers are set to face higher prices. The head of Germany's BGA federation of wholesale, foreign trade and service, Dirk Jandura, warned on Wednesday that Germans might have to dig deeper into their pockets to pay for American products, such as orange juice, bourbon and peanut butter, in supermarkets. Commenting on recent unprecedented changes in Germany's economic policy, which were altered allow the country to borrow more to spend on defence and infrastructure, Mr Nagel said it was an "extraordinary measure" for an "extraordinary time". "The whole world is facing tectonic changes which makes the current situation very different from those seen in the past, hence the fiscal change," he said. He added the policy change would allow Germany some financial breathing room for recovery in the next few years, adding it provided a "stability signal to the market".
