Germany creates a substantial infrastructure package and then allocate 50% of it to other purposes.
At least, that's what a study finds. Source: FT
Germany, continues to lose ground on global stock markets.
The market value of German equities has dropped to just 2% of total global market capitalisation, as the early-year momentum has completely faded. Source: HolgerZ, Bloomberg
China now runs a trade surplus in cars with the EU after many years in which it ran a deficit.
Is a huge deflationary shock coming to the EU ? Maybe the ECB should recognize this and cut interest rates as aggressively as possible as a weaker Euro will help... Source: Robin Brooks
🚨 ECB hits pause again as economy shows resilience
The European Central Bank kept rates on hold at 2% for the third straight meeting. 💶 Inflation is right on target at 2% 📉 Rates down from last year’s 4% peak 💪 Growth still holding up The ECB says Europe’s economy is proving resilient — supported by strong labor markets and healthy private balance sheets. But beneath the calm? ⚠️ Uncertainty from global trade tensions and geopolitics still clouds the outlook.
🚨 Germany’s biggest carmaker is in trouble.
Volkswagen is staring at a potential €11 billion cash shortfall next year — a gap big enough to derail its investment plans and EV transition. Half-year profits are down 33%, and cash flow has turned negative (€1.4 billion). What’s driving the crisis? 🇨🇳 Weak sales in China 🇺🇸 Tariffs from the U.S. ⚙️ Fierce competition from fast-moving Chinese EV makers Now, cuts are hitting everywhere — marketing, sales, and even R&D. The company may be forced to sell assets just to fund new models and technologies. Executives are calling it “particularly fatal” — hitting right as Volkswagen tries to shift from combustion engines to electric. The once-unshakable German auto powerhouse is learning the hard way: 🔋 The EV race isn’t just about innovation — it’s about survival. Source: https://lnkd.in/gC5NC2YH, Bild
Europe is basically not participating in chips manufacturing, even worse with rare earths.
Should there be a geopolitical event in Asia, what will happen to the European economy ??? Source: Michel A,Arouet
Should it be be called Standard & Europoor‘s 500 ?
Source: Michel A.Arouet
In August '25, German industrial production collapsed 4.3% m/m.
Germany is headed for the third consecutive recession year. To Dr Polleit, the "Great Reset" is destroying industrual production and economic growth in Germany. ➡️ Polleit is a German economist affiliated with the Austrian School of economics, and president of the Ludwig von Mises Institut Deutschland. Mises Institute. He is strongly skeptical of state intervention, central banking, fiat money, and what he sees as coercive economic planning ➡️Polleit general critiques on Germany are the following: 👉 Heavy regulation, strong state involvement 👉Germany’s ambitious transition from fossil fuels to renewables may cause disruptions in energy supply, cost volatility, grid stresses, and increase production costs 👉Export dependence and global competition 👉Monetary and fiscal pressures reduce real returns on capital and discourage long-term investment. 👉Uncertainty and investment risk 👉With more government programs, state investment, subsidies, and oversight, private actors may be crowded out or discouraged. Polleit would claim that entrepreneurship and innovation decline. 👉Central planning or incentive distortions lead to misallocation of capital. Polleit warns that “green subsidies” or mandated transitions may favor politically connected actors rather than the most efficient ones. 🚨 Hence, under Polleit’s logic, Germany — already having high regulation, energy transition burdens, export dependency, and significant state involvement — would be particularly vulnerable to further growth suppression from Great Reset-type policies. He would argue that growth is slowly being “destroyed” by compounding layers of regulatory, monetary, and fiscal drag. Source: Thorsten Polleit @ThorstenPolleit on X
