Good morning dear readers,
after the collapse of the Silicon Valley Bank, fears of a banking crisis are rampant. The shares of many financial institutions rushed into the basement. In the United States, First Republic Bank lost two-thirds of its market value in the first few hours of trading on Monday. Commerzbank also lost double digits and Credit Suisse stock fell to a record low.
Fear of crisis could become a self-fulfilling prophecy. Where there is fear of a crash, customers threaten to withdraw their funds, which is what causes the crash in the first place. As in the science fiction novel The Hitchhiker’s Guide to the Galaxy, the message that politicians and regulators are now spreading is simply: “Don’t panic”. Because to prevent a banking crisis, three things are essential: trust, trust and more trust.
“Your money will be there when you need it,” US President Joe Biden promised on Monday and announced stricter banking regulations.
The German version of this statement was a bit more cryptic, but had a similar content. “These institutions left no doubt about the stability,” said Federal Finance Minister Christian Lindner (FDP) about the German banks.
Financial experts also see no reason to panic at the moment: “I don’t assume that the problems we are experiencing in the USA will spill over to Europe,” says Edgar Walk, chief economist at Metzler Asset Management. According to insiders, the German financial regulator currently also shares this assessment.
A look back at 2012 shows that assurances like the current one can actually have a positive effect. At that time, the then President of the European Central Bank, Mario Draghi, calmed the financial markets with the words “whatever it takes”. Whatever is needed to stabilize the system, it will be done. Valuable words that actually weigh heavily in crises like these.
There are things that are simply part of the lifestyle in German inner cities. Pigeons stealing fries from the trash can. Street musicians playing an old guitar and belting out “Let it be” by the Beatles. And large department stores with the green inscription “Galeria Kaufhof”.
But the latter should slowly disappear from the picture of many shopping streets. Because the department store group has now published a list showing which branches are to be closed. Only 77 locations will remain, 52 houses have to close.
21 of them will receive their last customers at the end of June, including Cottbus, Hagen and Offenbach. Another 31 will close their doors by the end of January next year, including Bayreuth, Dortmund and Oldenburg. A total of around 5,000 employees will probably lose their jobs – the works council spoke of a “pitty black day” for the employees.
You can read here which branches are closing and which are staying open.
It has been almost two years since a military junta seized power in Myanmar in Southeast Asia and deposed the previous President and Nobel Peace Prize winner Aung San Suu Kyi. The military regime that has been in office since then has been accused of serious human rights violations.
Against this background, what Southeast Asia correspondent Mathias Peer is now reporting is extremely explosive. Because several German companies are apparently doing good business with the Burmese military junta. This is suggested by a report by the organization Justice for Myanmar, which is based on leaked financial data, tax information and photos of the regime.
Photos evaluated by the organization should show, for example, the use of Siemens technology in several military hospitals. The data also includes a sales list for the German logistics company Rhenus. It details deals with junta-controlled ministries that are said to have taken place after the coup.
Myanmar is considered a comparatively small trading partner for Germany in the region. Economic relations are far more pronounced with Vietnam, Bangladesh, Thailand and Cambodia. Most of the products are imported to Germany, only 86 million euros worth of goods go from here to Myanmar.
From Southeast Asia now to Eastern Europe, more precisely to the Republic of Moldova, where fears of a pro-Russian coup are raging. For years, the country, like Ukraine, has been torn between its proximity to Western Europe and the Russian Federation. A pro-European government is currently in power in the capital, Chisinau. The breakaway part of Transnistria, however, sees itself drawn to Moscow. More than a thousand Russian soldiers are stationed in the narrow strip of land.
Moscow is currently trying to destabilize the former Soviet republic of Moldova by restricting the energy supply and orchestrating protests. Foreign Minister Nicu Popescu reports in the Handelsblatt interview that his country is exposed to “constant attacks”. Russian missiles have crossed Moldovan airspace, so his country needs airspace surveillance and defense equipment. In addition one is with the international partners in the discussion.
Mareike Müller, Handelsblatt correspondent for Eastern Europe, reports from Moldova on the tense situation in the face of an overpowering opponent.
Finally, some sad news from athletics. High jumper Dick Fosbury died on Monday. In 1968 he won Olympic gold in his discipline for the USA in Mexico.
In case you don’t remember, you might remember Fosbury for another reason: he was the first athlete to cross the high jump pole head first in a supine position. Until then, the athletes had mostly jumped over the bar in a frontal squat.
I think we should think about Fosbury more often in everyday life. Not only in the high jump, but in all situations in life in which we encounter an obstacle. Maybe we can find a revolutionary new way to overcome it.
I wish you a good day full of unimagined flights of fancy.
Best regards
Her
Teresa Stiens
Editor of the Handelsblatt
PS: Finance Minister Lindner actually wanted to present the budget plans for the 2024 budget to the cabinet on Wednesday. But the FDP boss and his cabinet colleagues have not yet agreed on the expenditure.
Is it right that Lindner insists on compliance with the debt brake? Where would you start the red pencil? Or do you see more potential for tax increases? Write us your opinion in five sentences [email protected] We will publish selected articles with attribution on Thursday in print and online.
