BERLIN-One of the hottest campaign topics in Germany's national elections is something that is a distant dream for the country's younger voters: pensions.
Older voters have long had a determining influence on elections in Germany. As the aging country grows even older-the over-60 now make up more than a third of the electorate, according to the government-they are becoming the key target of political parties' messages, something a new cadre of politically savvy influencers is trying to change.
U.S. and EU Advance Talks to Preserve Data Transfers
BRUSSELS-U.S. and the European Union officials are making progress on keeping data flowing across the Atlantic, according to people familiar with negotiations that are vital to Facebook Inc. and thousands of other companies.
In talks that will continue next week in Brussels after a round in the U.S. this summer, the two sides hope to avert a disruption of company data transfers by resolving a long-running conflict between strict EU privacy laws and U.S. surveillance measures.
Construction of Nord Stream 2 Pipeline Is Complete, Russian Gas Company Says
Russia's gas-export monopoly said Friday that construction had been completed on a controversial pipeline to Europe, marking the end of a multiyear geopolitical struggle that has strained U.S.-German relations and served as a test of U.S. resolve amid heightened tensions with the Kremlin.
The pipeline, Nord Stream 2, which runs beneath the Baltic Sea, will double the volume of Russian natural gas exported directly to Germany.
GLOBAL NEWS
Stock Futures Point to Indexes Rebounding
U.S. stock futures rose Monday, pointing to major indexes recovering some ground following the S&P 500's worst weekly performance since February.
Futures tied to the S&P 500 rose 0.5%. The broad-market index slumped on Friday in its fifth consecutive daily decline. Nasdaq-100 futures added 0.4%, suggesting gains in large technology stocks.
Meme Stocks AMC and GameStop Push Small-Cap Benchmark Higher
Meme stocks are distorting the way some investors see parts of the market.
The Russell 2000 value index, designed to follow shares of small companies that are viewed as bargains relative to the rest of the market, is up 21% this year. Meanwhile, the Russell 2000 growth index, populated with companies whose earnings are expected to flourish faster than the rest of the market, has increased only 5%.
U.S. Stock Market Faces Risk of Bumpy Autumn, Wall Street Analysts Warn
After a record-breaking bull run for the U.S. stock market this year, many Wall Street analysts are starting to warn that investors could be in for a bumpy ride in the coming weeks and months.
Analysts at firms including Morgan Stanley, Citigroup Inc., Deutsche Bank AG and Bank of America Corp. published notes this month cautioning about current risks in the U.S. equity market. With the S&P 500 already hitting 54 records this year through Thursday-the most during that period since 1995-several analysts said that they believe there is a growing possibility of a pullback or, at the least, flatter returns.
House Democrats Consider 26.5% Corporate Tax Rate
WASHINGTON-House Democrats expect to propose raising the corporate tax rate to 26.5% from 21% and imposing a 3-percentage-point surtax on individual income above $5 million, according to two House Democratic aides familiar with the plans.
The tax increases would be part of the House Ways and Means Committee's plans to pay for the party's priorities in a fast-moving budget bill. Those items include an expanded child tax credit, a national paid-leave program and renewable-energy tax breaks.
Economy Week Ahead: Inflation, Retail Sales and Industrial Output
Measures of U.S. inflation and consumer spending are in focus this week.
Short-Lasting Inflation Depends on Long-Lasting Goods
For decades, Americans have enjoyed falling prices for cars, electronics and furniture.
Until the Covid-19 pandemic, that is. For the past year, prices for durable goods have been rising-and not just by a little. Whether those prices come back down is a key part of the puzzle facing the Federal Reserve as it plots how to handle an unexpectedly strong burst of inflation.
Riskier Chinese Property Bonds Suffer as Evergrande Struggles
Bonds from lower-rated Chinese property developers have fallen steeply in price after warnings of a potential default at industry giant China Evergrande Group sent investors scrambling to protect themselves against trouble elsewhere in their portfolios.
Various dollar bonds due in 2023 and 2024 from Fantasia Holdings Group Co. and Guangzhou R&F Properties Co. have fallen to less than 60 cents on the dollar, pushing yields on most of these debts above 40%.
Libor Transition Stokes Sales of Risky Corporate Debt
Wall Street's shift away from Libor is fueling sales in the red-hot market for bundles of risky corporate loans.
Managers of collateralized loan obligations-securities made up of bundled loans with junk credit ratings-are rushing to close deals ahead of the year-end move away from the London interbank offered rate. The interest-rate benchmark underpins trillions of dollars of financial contracts but was scheduled for phaseout after a manipulation scandal.
Economic Costs Accumulate as Countries Worried by Delta Variant Extend Border Closures
The economic damage from Covid-19 travel restrictions is piling up, with more companies holding back on large investments or postponing decisions as border closures and visa delays stymie operations for longer than expected.
The situation has been most acute in Asia, where governments, worried about the Delta variant, are refusing to lift restrictions that have limited travel for more than a year. China has kept its borders mostly shut since March 2020. Japan, Australia, Singapore and other countries are still blocking borders or requiring lengthy quarantines for visitors.
White House Works to Keep Moderate Democrats' Backing for Agenda as GOP Focuses on Inflation
WASHINGTON-With negotiations over a $3.5 trillion antipoverty bill heating up among Democrats, the White House is trying to ensure that inflation fears don't drive moderates away from supporting the plan as Republicans argue the proposal will accelerate a surge in prices.
The Biden administration acknowledges that rising prices are a problem in the short term. But in memos and blog posts aimed at Democrats in Congress, administration officials contend that the plan to pump funding into education, healthcare and the environment is a long-term investment, spent slowly over the next decade and mostly paid for through tax increases, that will ultimately lower prices and increase productivity.
Covid-19 Deaths in Delta Surge Hit Younger Unvaccinated People
A surge in Covid-19 deaths caused by the highly contagious Delta variant is hitting working-age people hard while highlighting the risks for people who remain unvaccinated.
Federal data show Covid-19 deaths among people under 55 have roughly matched highs near 1,800 a week set during last winter's surge. These data show weekly tallies for overall Covid-19 deaths, meanwhile, remain well under half of the pandemic peak near 26,000 reached in January.
Biden's Covid-19 Vaccine Mandate Further Stresses Supply of Rapid Tests
America's Covid-testing infrastructure, from drugstores to diagnostics manufacturers, is bracing for a surge in demand following the Biden administration's order that most large U.S. companies mandate their workers get vaccinated or be screened weekly for the virus.
Makers of over-the-counter Covid-19 tests are continuing to boost production, while laboratories and companies are ramping up operations that some had scaled back after the virus largely retreated earlier this year.
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This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
09-13-21 0621ET
