A substantial part of the corona support for companies in the Netherlands probably went to companies with losses that could also be expected in normal economic times. Ministry of Finance officials provided an analysis of the support packages that was published on Tuesday by ESB. According to the research, in 20 of the 29 sectors surveyed, less than half of the losses appear to be related to the corona crisis.
Factory activity powered ahead in Europe last month and stayed strong in Asia as demand grew. Rising raw material costs and supply bottlenecks posed a headache for business and weighed on the recovery in export-driven economies. European manufacturers ramped up activity at the fastest monthly pace in Purchasing Managers Index (PMI) survey history. However, a spike in COVID-19 infections in some countries continued to disrupt supply chains. IHS Markit’s final euro zone manufacturing PMI rose to 63.1 in May from April’s 62.9.
The European Union plans to start its EUR 750 billion corona recovery package with an initial bond issue of EUR 10 billion, as was announced by the French Secretary of State for European Affairs, Clément Beaune. In an interview, he also stated that more than EUR 100 billion will be employed to support the European economy this year.
The 6M Euribor is unchanged at -0.51% compared to previous business day. The 10Y Swap is unchanged at 0.12% compared to previous business day.
In the attachment, today’s market data on money and capital market rates as well as other rates are presented.
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