Germany: producer prices with record decline

WIESBADEN - Prices at the producer level in Germany have fallen more sharply than at any time since surveys began. In August, producer prices fell by 12.6 percent year-on-year, the Federal Statistical Office announced in Wiesbaden on Wednesday. This was the sharpest decline since the surveys began in 1949, although analysts had expected the development.

Survey: Real estate sector in Germany under pressure

MUNICH - An increasing number of companies in the real estate sector are coming under pressure, according to a survey by Messe München. According to the survey, half of the companies are stopping new project developments, and more than two-thirds are at least experiencing delays. Trade fair boss Stefan Rummel presented the results of the survey of 751 German exhibitors and participants at the Expo Real real estate trade fair, which begins this year on Oct. 4, on Wednesday. "Overall, there is a massive increase in refinancing pressure among project developers," Rummel said.

ROUNDUP: Logistics association sees higher prices due to truck toll reform

BERLIN/DÜSSELDORF - The logistics industry sees consumers facing higher prices when shopping due to rising transport costs. The reason for this is the higher truck toll planned by the German government. Dirk Engelhardt, spokesman for the board of the Federal Association of Road Haulage, Logistics and Disposal (BGL), said in Berlin on Wednesday that more than 80 percent of goods are transported by truck.

Twelve states join forces to oppose fiscal equalization lawsuit

HANOVER - In the dispute with Bavaria over fiscal equalization, twelve states are being represented by constitutional law expert Stefan Korioth. A contract to that effect was signed on Wednesday at the Lower Saxony Ministry of Finance in Hanover. This was announced by the ministry.

Lemke: Energy price brakes until April 2024 to extend

BERLIN - Federal Consumer Protection Minister Steffi Lemke has called for energy price brakes to be extended until April 2024. "The electricity and gas price brakes introduced at the end of 2022 were an important instrument, especially last winter, to protect against particular hardship and price jumps due to the war-related energy crisis," the Green Party politician said Wednesday, according to a statement. "Even if the situation on the energy markets has eased in recent months, the danger of short-term rising prices in the now upcoming winter has not been averted." Therefore, she said, the energy price brakes are needed as a safeguard for consumers in the coming winter as well.

China's economic planners see country continuing on recovery path

PEKING - China's economic planners see the economy of the People's Republic continuing on a recovery course. "China's economic development still has a well-supporting base and many advantageous conditions," Vice Chairman of the Development and Reform Commission Cong Liang said Wednesday in Beijing. China's economy will recover and undergo a long-lasting upward movement, he said. Domestic demand has recovered, production and supply have increased and "structural adjustments" are progressing, Cong Liang said.

Study: Real estate prices in Frankfurt and Munich down

FRANKFURT - The risk of a real estate bubble has diminished in Munich and Frankfurt as prices have fallen, according to a study. However, residential real estate there is still not a bargain. The Swiss bank UBS classifies the two metropolises in its study published on Wednesday as overvalued. Worldwide, UBS sees only Zurich and Tokyo in the bubble risk area and thus seven cities less than in the previous year. In some metropolitan areas, it said, residential property prices, adjusted for inflation, have fallen more than at any time since the 2008 financial crisis.

United Kingdom: Inflation eases surprisingly - pound under pressure

LONDON - Inflation in the United Kingdom weakened surprisingly in August. Compared with the same month last year, consumer prices rose by 6.7 percent - after 6.8 percent in the previous month, as the Office for National Statistics (ONS) announced in London on Wednesday. Analysts, however, had expected an increase to an average of 7.0 percent. Month-on-month, the cost of living rose 0.3 percent.

Japan's exports fall again

TOKYO - Japanese exports fell for the second month in a row in August. The value of exports fell 0.8 percent year-on-year to just under eight trillion yen (51 billion euros), mainly due to a sharp drop in demand from China, Japan's Finance Ministry said in Tokyo on Wednesday. In July, exports from the world's third-largest economy fell for the first time since February 2021. Economists see the development as a worrying trend for the country, which is heavily dependent on its export economy. However, the decline in August was somewhat smaller than experts had expected on average. Imports fell even more sharply than exports in August. Here, the value fell by almost 18 percent to 8.9 trillion yen - this was mainly due to the significantly lower prices for gas, coal and oil compared to the previous year.

DGB: Extend and broaden electricity price brake

BERLIN - The German Trade Union Federation is in favor of extending the electricity price brake beyond the end of the year. "The electricity price brake is effective, but not enough, and must therefore be extended and in this course adapted to the current challenges," said DGB leader Yasmin Fahimi on Wednesday, according to a statement. She also called for there to also be a temporary, competitive electricity price for energy-intensive industry.

ROUNDUP 2/Unions and consumer advocates: extend price brakes

BERLIN - Ahead of winter, there are increasing calls to extend the so-called energy price brakes. The German Federation of Trade Unions on Wednesday spoke out in favor of retaining and extending the electricity price brake beyond the end of the year. The Federation of German Consumer Organizations called for all price brakes to be extended until Easter 2024. "This would protect private households from further price increases for electricity, gas and district heating in the coming winter," said chairwoman Ramona Pop. The same demand also came from Consumer Protection Minister Steffi Lemke (Greens).

ROUNDUP/Construction and real estate industry: from crisis to alarm mood

MUNICH/BOCHUM - In the real estate and construction industry, the mood of crisis is turning into one of alarm ahead of the planned housing summit in the Chancellor's Office. Germany's largest housing company Vonovia has put the construction of tens of thousands of planned apartments on hold. This was said by CEO Rolf Buch to the newspapers of the Funke Mediengruppe (Wednesday). According to analysis by financing broker Interhyp, citizens are also currently burying their dream of owning their own home in droves. In addition, there are increasing signs that a growing number of real estate companies are coming under pressure because of the crisis. This was reported by Stefan Rummel, the head of Messe München.

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