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Health insurance companies expect billion additional costs through coalition agreement

Due to the decisions of the Union and the SPD for the health sector, the health insurance companies are facing considerable additional costs.

Cash registers and other industry experts assume that the costs will be around two billion euros per year by 2021. A Reuters list of health insurances shows that alone in the hospital sector should be incurred around one billion euros. For example, the planned continuation of the Structural Funds, which is intended to finance restructuring in the hospital sector, would cost statutory health insurance (SHI) € 500 million a year. A hygiene promotion program cost 75 million euros, the full collective financing with 400 million euros.

The higher fixed subsidies for dentures should cost according to the calculations, 330 million euros. In addition, the health insurances have to pay for the planned 8,000 additional skilled workers in care facilities for medical treatment, which amounts to 400 million euros per year. All in all, this amounts to around 1.6 to 1.7 billion euros.

It is difficult to quantify many other issues, such as the planned improvements in outpatient care, for example by increasing the Structural Funds to support medical professionals in rural areas, so that around € 2 billion is considered realistic in the counties.

Other industry experts also assume that the additional costs for the next four years will average just under two billion euros per year – ie below this level and at the end of the legislative term. Also in the social care insurance is expected in the circles that by 2021, the additional costs increase to up to one billion euros.

According to a rule of thumb, about 1.1 billion euros make up 0.1 contribution points. There is therefore a high likelihood that contributions will have to rise as a result of the reforms. However, this also depends on the concrete design of the measures and on whether the funds save money in other ways, for example with so-called voluntary statutory benefits.

The Union and SPD have also decided to return to full parity financing of health insurance contributions by employees and employers. This refers to the additional contribution that is currently borne by the employees alone and on average amounts to one percent of the gross income. For those insured by the law, this will make it cheaper, which would have to be offset in the case of premium increases.

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Welfare and woe of the Dax depends on the interest – bumpy price development

To old heights? Or just a break on the way to new lows? The opinions in the market about the upcoming stock exchange week are different. With a rise in the Dax (DAX) of around 300 points last week, the stabilization can be seen, the index had plummeted in the three weeks before by almost 1,500 points. This has been the hottest retreat for two years.

“After the stock markets have been shaken up a bit in the weeks before, investors dared to buy again”, Claudia Windt from Helaba summarizes the mixed situation. The analyst, however, does not believe in an end to the price losses. Their trigger was inflationary concerns and tendencies of overheating in the US economy. However, these real warning signals would be “swept aside and even interpreted as expressing a strong economy”.

On Wednesday, investors are likely to watch the US Federal Reserve’s assessment of the current situation. After all, the Fed is the first of the major central banks that has embarked on a somewhat more restrictive course of monetary policy. On the capital markets, slightly more than three rate hikes are currently priced into the US this year, BayernLB notes. “The consensus of the economists expects a total of four interest rate cuts this year”.

However, rising interest rates could spoil the party on the stock markets. Because bonds gain in attractiveness with higher returns in relation to shares. Increasing market interest rates also make the financing of companies more expensive, which in turn depresses their profitability. “Higher interest rate expectations seem to frighten investors,” says strategist Craig Erlam of broker Oanda.

The aim of the central banks must be “gallant” to emerge from the policy of low interest rates, without “plunging the bond markets into chaos,” wrote market expert Daniel Saurenz of Feingold Research. Above all, the Fed faces the most difficult task for many years. Their decisions influenced real estate just as much as stocks and bonds. “Almost everything depends on the interest rate”.

Strategist Albert Edwards from the French rule bank Societe Generale (PA: SOGN) throws in a market comment the question on what level should the yield on ten-year US bonds to rise to put the stock markets under pressure – and answered them himself: “About 2 ’85 percent seem to be enough to dump stocks’. The rise in US bonds above this level triggered the sell-off on the stock markets at the beginning of the month.

The reason for this is above all the strategist’s “grotesque timing of the tax incentives of US President Trump”. In a period of already rising interest rates, sharply rising US debt will increase pressure on the Fed to tighten interest rates even faster. However, this could even lead to a collapse in the financial markets in the US, warned Edwards, who has been one of the critical observers of central bank monetary policy for years.

webmasterWelfare and woe of the Dax depends on the interest – bumpy price development
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US housing at the beginning of the year on the rise

Housing construction in the USA starts with a tailwind in the year.

In January, the number of new construction started increased by 9.7 percent to an annual rate of 1.32 million, as the Commerce Department announced on Friday in Washington. This is the highest level since October 2016. Economists interviewed by Reuters had only expected a value of 1.23 million.

In particular, the construction of single-family homes, which accounts for a large part of the market, rose sharply – by 3.7 percent. Building permits for the sector as a whole increased by 7.4 percent to an annual rate of 1.39 million, the highest level since June 2007.

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Trump is the boogeyman in Munich

The picture of the situation that Wolfgang Ischinger draws at the beginning of the Munich Security Conference could hardly be more gloomy. The danger of a military confrontation between the US and Russia is as high as since the end of the Soviet Union is no longer, warns the former diplomat and organizer of the three-day political summit meeting. The mistrust between the military leadership in Washington and that in Moscow was “abysmal”.

Under President Donald Trump, the US “increasingly tried not only to threaten with weapons, but actually practice the use of weapons to enforce their own interests.” The times when the country was a “great regulatory force”, something of a “world policeman” – over.

“The danger of misunderstanding, think of the events in and around Syria, think about the events in and around North Korea, the risk of miscalculations, of unwanted escalatory maneuvers is greater than I remember them over the last 30 years “says Ischinger.

Under Trump, Washington is fueling conflict
He does not have to be more specific. Everyone at the security conference may have read, for example, Trump’s Twitter message from January 3. North Korea’s leader Kim Jong Un Kim has just stated that his “nuclear weapon button is always on his desk,” Trump wrote. “Will anyone from his impoverished and starving regime please inform him that I, too, have a nuclear weapon button,” said the US president. “But he’s much bigger and more powerful than his, and my button works!”

Provocations like this, or even Trump’s decision to unilaterally recognize Jerusalem as the capital of Israel, confirm those who feared the worst when Trump took office about a year ago. An America that fuels conflicts rather than working on solution strategies, an America that is backing down its support for development aid and the United Nations as part of America’s First Policy. All of this is reality at the beginning of 2018.

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Forex – Dollar Drops to 3-Year Low as New Worries Begin

The US dollar fell to a three-year low against other major currencies on Friday as new concerns about US policy and, in particular, the growing budget deficit dampened the confidence that had come from recent US economic data.

The US currency went down in the face of continuing concerns over the US deficit, which is expected to climb to nearly $ 1 trillion in 2019, after corporate taxes plummeted and a large infrastructure program is planned.

The dollar initially gained in strength after the US Department of Commerce reported Wednesday that consumer prices rose more than expected in January, up 0.5%, boosting US bond yields.

Thursday’s data showed that the US producer price index rose 0.4% last month, in line with expectations.

Rising inflation rates could be the trigger that could push the Federal Reserve to raise interest rates faster this year than previously expected.

The US dollar index, which reflects the strength of the US currency against a weighted basket of six other major currencies, was 0.16% lower at 88:00, at 08:00 CET, its lowest rate since December 2014.

The USD / JPY fell 0.31% to hit 105.79, its weakest level since November 2016, while the USD / CHF fell 0.30% to 0.9196.

The euro and pound were up against the dollar, with the EUR / USD rising 0.27% to 1.2537 and the GBP / USD gaining 0.23% to 1.4128.

The Australian and New Zealand dollars were firmer. The AUD / USD has risen 0.35% to 0.7972 and the NZD / USD has gained 0.22% to 0.7424.

Meanwhile, the USD / CAD fell 0.16% to trade at 1.2469.

webmasterForex – Dollar Drops to 3-Year Low as New Worries Begin
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Foreign exchange: Euro exchange rate in the US trade again over 1.25 dollars

The euro rose above $ 1.25 on Thursday in US trading. About one hour before the Wall Street closing, the common currency rose to $ 1,2503. The European Central Bank (ECB) had previously set the reference price at 1.2493 (Wednesday: 1.2348) dollars. The dollar cost 0.8005 (0.8099) euros.

With recent gains, the euro is again approaching its three-year high, reaching $ 1.2537 in January. According to foreign exchange expert Esther Reichelt of the Commerzbank (DE: CBKG), the market increasingly speculates that the ECB will take its foot off the accelerator because of the robust upturn.

In addition, the high level of debt in the US is becoming more prominent, weighing on the dollar and giving the euro a boost. “The debt ghost is back,” commented expert Reichelt the mood in the market.

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The meeting of the powerful and powerful

The Munich Security Conference is considered the most important forum for debates on war and peace. In recent years, especially a state repeatedly caused great excitement.

What is the Munich Security Conference?
In a way, the Munich Security Conference is a normal conference: experts, observers and field practitioners come together to discuss and network. But in Munich, the big questions are about war and peace, about armaments and diplomacy.

Every year, numerous heads of state and government are coming, including Theresa May, Binali Yildirim, Benjamin Netanyahu and Sebastian Kurz. Then there are ministers such as Russian Foreign Minister Sergei Lavrov, ambassadors, policy advisors, scientists and journalists. The Munich Security Conference is considered the world’s largest meeting on security policy – as a meeting of the powerful and even more powerful. And their employees. Around 500 participants are expected.

What happens there?
Every year, speeches are given – which are then widely discussed. Some also change the political realities permanently. Above all, however, the conference is a place for confidential discussions: people meet, chat, get to know each other, discuss important issues without official negotiations and in dialogue. There is plenty of time in the two days of the conference in the hotel “Bayerischer Hof”. But: It is not a secret meeting. The speeches are reported. Journalists can accredit themselves as normal. Official decisions are not made.

What important speeches have been held there?
In 2007, Vladimir Putin spoke in Munich. He was looking forward to the end of his second term as President and was a guest for the first time. In his speech, he accused the USA of striving for a “monopolar world domination” and called the eastward enlargement of NATO a “provocative factor”. Four years earlier, NATO had joined seven countries from Eastern and Southeastern Europe. Putin accused NATO of failing to meet its security guarantees against Russia. The enlargement is directed against Russia.

Even then, the speech was discussed intensively and changed the perception of Putin in Europe and the US. Putin’s spokesman called her an “alarm call”. In fact, it contained all the arguments that were used six years later to justify the Russian attack on Ukraine.

In the following years, Russian Foreign Minister Sergei Lavrov was on several occasions, and he made a point: in 2014, for example, he accused the West of supporting the Euromaidan in Ukraine, whom he described as a violent uprising that was getting out of control. Last year, he described NATO as a “Cold War instrument” and promoted a “post-world world order”.

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US and Turkey want to normalize relationship

Turkish Foreign Minister Cavusoglu pleaded with his US counterpart Tillerson for a normalization of the tense relationship. Another meeting is already planned.

Turkey and the US want to normalize their tense relations, according to Turkish Foreign Minister Mevlüt Cavusoglu. At a joint press conference with his US counterpart, Rex Tillerson, Cavusoglu said another meeting was scheduled for mid-March.

Common goal: defeat IS
Tillerson emphasized the common interests of both states. They wanted to defeat the IS, create stable zones and secure an independent and united Syria. The US also accepted Turkey’s legitimate right to safe borders. He also appealed to Turkey to prevent any further escalation.

Both NATO partners are in dispute over their military involvement in Syria, where they pursue partly conflicting interests. The US is supporting a force dominated by the Kurdish YPG militia, which is successfully fighting the Islamic State (IS) extremist militia. Turkey regards the Syrian YPG as a terrorist group and wants to prevent its strengthening at the border so that it does not boost the Kurdish autonomy movement in Turkey.

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Foreign exchange: Eurocurrency temporarily above $ 1.25 – Turkish lira at record low

The euro followed on Thursday the price gains of the previous day, but can not quite keep his daily gain. Only in the morning did the common currency temporarily jump above the 1.25 US dollar mark. In the afternoon, it was trading at $ 1,2482. The European Central Bank (ECB) set the reference rate at 1.2493 (Wednesday: 1.2348) dollars. The dollar cost 0.8005 (0.8099) euros.

With recent gains, the euro is nearing its three-year high that it reached $ 1.2537 in January. According to foreign exchange expert Esther Reichelt of the Commerzbank (DE: CBKG), the market is increasingly speculating that the ECB will take its foot off the accelerator because of the robust upturn in monetary policy. In addition, the high level of debt in the US is becoming more prominent, weighing on the dollar and giving the euro a boost. “The debt ghost is back,” commented expert Reichelt the mood in the market.

With strong gains, the South African Rand responded to the resignation of head of state Jakob Zuma. The national currency rose to its highest level in nearly three years. Meanwhile, investors only had to pay out $ 11.60 for a dollar.

The development of the Turkish lira is quite different. This has depreciated significantly against the euro since the beginning of the year and fell again to a record low on Thursday. At times, 4,7268 lira had to be paid for one euro, more than ever. The record low of the Turkish currency is to some extent explained by the current strength of the European single currency.

Among other major currencies, the ECB set the reference exchange rates for one euro at 0.8866 (0.8904) pound sterling, 133.11 (132.40) Japanese yen and 1.1545 (1.1519) Swiss francs. The troy ounce of gold was fixed in London this afternoon at 1352.45 (1336.25) dollars.

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Put Your Head on My Shoulders

Weaseling out of things is important to learn. It's what separates us from the animals…except the weasel. You know, the one with all the well meaning rules that don't work out in real life, uh, Christianity.

Lisa, vampires are make-believe, like elves, gremlins, and Eskimos. We started out like Romeo and Juliet, but it ended up in tragedy. Attempted murder? Now honestly, what is that? Do they give a Nobel Prize for attempted chemistry? Get ready, skanks! It’s time for the truth train! Books are useless! I only ever read one book, “To Kill A Mockingbird,” and it gave me absolutely no insight on how to kill mockingbirds! Sure it taught me not to judge a man by the color of his skin…but what good does *that* do me?

Put Your Head on My Shoulders
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