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Germany’s economic recovery loses momentum as daily cases spike above 5,000

Germany’s economic recovery loses momentum as daily cases spike above 5,000

  • Germany’s growth prospects for 2020 are looking increasingly bleak, with the country’s leading economic research institutes downgrading GDP forecasts for 2020 and beyond.
  • Publishing a joint economic forecast Wednesday, Germany’s leading economists warned that the coronavirus pandemic is leaving what they called “substantial marks” on the German economy.
  • The impact of the virus “is more persistent than assumed in spring.”



a person holding a sign: Advertising figures with a protective face masks in Munich, Germany.


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Advertising figures with a protective face masks in Munich, Germany.

Germany’s economic prospects for 2020 are looking increasingly bleak, with the country’s leading research institutes downgrading GDP (gross domestic product) forecasts for this year and beyond.

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Publishing a joint economic forecast Wednesday, Germany’s prominent economists warned that the coronavirus pandemic is leaving what they called “substantial marks” on the German economy, adding that “its impact is more persistent than assumed in spring.”

They revised their economic outlook downward by roughly one percentage point for both 2020 and 2021. They now expect GDP to fall by 5.4% in 2020 (lower than a previous -4.2% forecast) and to grow by 4.7% (less than a previously forecast 5.8%) in 2021, and 2.7% in 2022.

The “Joint Economic Forecast” is published twice a year on behalf of the German Economy Ministry and is prepared by the German Institute for Economic Research (DIW Berlin) and the Ifo Institute in Munich, as well as several other organizations.

They said the downgrade follows a more pessimistic assessment of the recovery process. “Although a substantial part of the drop in output experienced in spring has already been recovered, the remaining catch-up process is the more difficult part of the return to normality,” Stefan Kooths, head of forecasting at the Kiel Institute, said on the outlook.

The downgrades are not surprising given a second wave of coronavirus cases that is ravaging Europe and

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German economic recovery loses momentum – institutes

German economic recovery loses momentum – institutes

BERLIN, Oct 14 (Reuters)Europe’s largest economy will recover more slowly from the coronavirus pandemic than originally predicted, Germany’s leading economic research institutes forecast on Wednesday.

As Reuters previously reported from sources, the institutes expect the economy will shrink by about 5.4% in 2020, a bigger decline than the 4.2% they forecast in April.

The institutes’ forecast, which forms the basis for the government’s own economic predictions, expects a rebound of 4.7% in 2021, also more pessimistic than their April forecast for 5.8% growth. They expect growth of 2.7% in 2022.

The institute said the recovery was being held back by sectors particularly hard hit by social distancing restrictions such as restaurants, tourism, events and air travel.

“Activity in this part of the German economy will … catch up with the rest of the economy only once measures to control the pandemic have largely been dropped, which we do not expect before next summer,” said Stefan Kooths, head of forecasting at the Kiel institute.

(Reporting by Emma Thomasson Editing by Riham Alkousaa)

((+49 30 2888 5081; Reuters Messaging: emma.thomasson.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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ExxonMobil Loses $225 Billion In Market Cap Against Chevron

ExxonMobil Loses $225 Billion In Market Cap Against Chevron

Twice over the past two weeks, ExxonMobil
XOM
has made headlines for all the wrong reasons.

Last week the utility NextEra Energy
NEE
surpassed the market capitalization of ExxonMobil to replace it as the largest U.S. energy company.

This week, there was another milestone. At some points over the past decade, ExxonMobil — the biggest of “Big Oil” in the U.S. — was worth as much as $225 billion more than Chevron
CVX
. That size advantage totally disappeared on October 8, 2020, when Chevron’s value closed the day higher than ExxonMobil’s.

If you look at the chart, it’s quite different than the story with NextEra. ExxonMobil’s value fell sharply this year, but NextEra has had a really good year. Chevron, on the other hand, has struggled with the Covid-19 pandemic along with other oil and gas producers. They just haven’t struggled as much as most others.

The past decade has been a tough one for oil producers everywhere, but Chevron has managed to hold its value for most of the decade. Both companies have long been favorites among dividend investors (and note that the chart doesn’t reflect the dividend income generated by these companies), but Chevron held up better and paid more income to investors.

Where did things go so wrong for ExxonMobil? I have often pointed to the company’s ill-timed $36 billion acquisition of natural gas producer XTO Energy in December

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New Mexico loses ground in COVID-19 spread fight

New Mexico loses ground in COVID-19 spread fight

SANTA FE, N.M. — New Mexico is losing ground in efforts to contain the spread of COVID-19 as newly reported daily infections hit a record of 488 cases.

Three additional deaths from the pandemic also were disclosed Friday by state health officials as fatalities from the pandemic surpassed 900.

Bernalillo County, with the state’s most populous urban area, accounted for 135 new cases, while Dona Ana had 81. Lea and Chaves counties together accounted for 77 new cases.

The state’s infection and positivity rates for the spread of the virus are climbing as the administration of Gov. Michelle Lujan Grisham holds the line on emergency public health restrictions.


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HERE’S WHAT YOU NEED TO KNOW ABOUT THE VIRUS OUTBREAK:

— President Trump credits antibody drug for quick recovery

— Spain declares state of emergency in Madrid to contain surge

— As virus fills French ICUs anew, doctors ask what went wrong

— British government will announce more support for businesses to retain staff in the coming months if they are forced to close because of lockdown restrictions.

— President Donald Trump says he wants to try to hold a campaign rally in Florida on Saturday, despite his recent COVID-19 diagnosis.

— Follow AP’s pandemic coverage at http://apnews.com/VirusOutbreak and https://apnews.com/UnderstandingtheOutbreak

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HERE’S WHAT ELSE IS HAPPENING:

WINDOW ROCK, Ariz. — Enrolled members of the Navajo Nation will be eligible for payments of up to $1,500 as part of the tribe’s response to the coronavirus.

President Jonathan Nez and Vice President Myron Lizer on Friday approved the $49 million plan adopted by the tribal council. The funding comes from the tribe’s share of federal coronavirus relief funding.

Adults will be eligible for payments of $1,500 while minors are eligible for $500.

Nez said in a statement that there isn’t enough funding to

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