The ifo Institute has called for a show of unity toward China. In recent years, the trade imbalance between Germany and China has tipped significantly in China’s favor, but the same is not true for EU-China trade relations, according to an ifo study. “For this reason, it is questionable whether Chancellor Olaf Scholz’s trip to China will on its own be enough to send the right message. It would have…
German inflation in October was 11.6%, well above expectations, Italian inflation was 12.8% and French inflation was 7.1%, all higher than expected and higher than last month. The components will be released mid-month, but some regional figures in Germany show that the big contributors to price increases continue to be energy costs and food. In Spain, inflation slowed yr-on-yr in October to 7.3% on lower electricity, gas prices. Also, in…
ifo| Somewhat fewer German companies are planning to raise their prices soon than in the previous month, finds the ifo Institute’s latest survey. For the economy as a whole, the ifo price expectations for the coming months fell to 51.5 points in October, down from 53.8 points* in September. Trade and manufacturing in particular are planning fewer increases, while price expectations are rising among service providers and in construction. “The…
IAG shareholders have given the go-ahead for investment in the renewal of the short-haul fleet, with the acquisition of 50 B737 aircraft from Boeing and 37 A320neo aircraft from Airbus. The transaction was approved at an extraordinary shareholders’ meeting in Madrid, where only 37.9% of the capital was represented. The CEO of the holding company that includes British Airways, Iberia, Vueling and Aer Lingus, Luis Gallego, has ruled out the…
Fernando González Urbaneja | The new British Prime Minister is young (42), rich (almost a billion in assets), Hindu (family religion) and a graduate of Oxford and Stanford (Fulbright programme). He has been in Parliament for seven years and, after working for Goldman and several investment funds, he headed the Treasury (with Boris Johnson) before rising to become Minister of Finance. A dense professional career that is a credit to…
Pedro Sánchez, Emmanuel Macron and António Costa (who, for Portugal, has also been part of the dialogue) have decided to discard the gas pipeline that had been proposed through the Pyrenees, the MidCat. They have agreed that a new project, BarMar, will replace it. This is an underwater gas (or hydro-product) pipeline that will link Barcelona and Marseille via the Mediterranean Sea bed. This solution, however, has its cost: the…
Fernando González Urbaneja | Brexit was about regaining control; that was the decisive message that led disoriented citizens to vote in favour of leaving the European Union. Six years later, what they have achieved, rather than regaining control, is to achieve “decontrol”. Three prime ministers in the course of 2022 is an unimaginable outcome for those who have studied and praised British democracy as an exemplary model based on good…
Carlos Schwartz | Natalia Fabra is a director of Enagás and chair of the European programme “CURRENT TOOLS AND POLICY CHALLENGES IN ELECTRICITY MARKETS”. Q:There seems to be a shift in thinking about pricing mechanisms in the energy sector at the moment. A: Yes, it is part of the paradigm shift. It has been realised that, in the case of the electricity market, it is not correct to remunerate power…
ifo | Only just under one-third of German companies has an emergency plan for dealing with the energy crisis. This is the result of the new Randstad ifo Personnel Manager Survey of 700 HR managers. “The smaller the company, the less often measures were in place. Among companies with more than 500 employees, 60 percent have taken appropriate precautions. For companies with up to 50 employees, the figure is only…
Santander | Calls are growing for a European fiscal programme. Financed by joint SURE-style emissions guaranteed by member states. In this case, to combat the energy and security crisis as proposed in their open letter by EC Commissioners for Economy and Home Affairs Gentiloni and Breton last Monday. Yesterday it was the turn of Von der Leyen, who called for the EU to seek other sources of funding to accelerate…