German Chancellor Scholz’s ruling coalition suffered another defeat in state elections. All members of the SPDGreens‐ FDP triangle lost votes, with conservative opposition parties (CDU/CSU) easily clinging on to power. In Bavaria, the CSU got 37% of the vote (‐0.2%) compared to 16% for the Greens (‐1.6%), 8.5% for SPD (‐1.2%) and 3% for FDP (‐2.1%). The current regional coalition between CSU and the conservative Freie Wähler (14.4%) will likely be prolonged. In Hessen, the CDU accumulated 35.5% (+8.5%) compared to 16% for SPD (‐3.8%), 15.5% for the Greens (‐ 4.3%) and 5% for FDP (‐2.5%). The current regional link‐up between CDU and Greens can be extended as well. Remarkably, the extreme‐right AfD which has its stronghold mainly in former communist eastern German states, managed to increase its influence with best results to‐date in western states: 16% of the vote in Hessen (+2.9%) and 14% in Bavaria (+4.8%).
Total US consumer credit decreased by $15.6bn in August, the most in three years. The sudden slump is related to a record drop in non‐revolving credit related (‐$30.3bn) to student loan forgiveness by the Biden administration. Outstanding revolving credit, including credit cards, rose by $14.7bn, the most since November. The average annual interest rate that consumers are paying on credit card balances hit a record high of 22.8% at the end of August, up from 16.3% a year ago.
