Syz the moment

▶️ The boss of Ryanair has threatened to cancel orders with American aircraft maker Boeing and buy from Chinese manufacturers instead if Donald Trump’s trade tariffs push up costs. ▶️ In a letter to top US lawmakers, Michael O’Leary criticised Washington’s trade war with Beijing and warned that a “material” impact on the price of aircraft could prompt his company to take its business elsewhere. ▶️ The Irishman said Ryanair could even turn to state-owned Commercial Aircraft Corporation of China (Comac), a threat sure to anger Mr Trump, who has made isolating China a key aim of his trade war. ▶️ Ryanair, the largest carrier in Europe, is currently waiting on the delivery of 29 Boeing 737 Max 200 planes, out of a total order of 210. It has also ordered 150 Max 10 jets, the largest in the 737 family, for delivery from 2027 with the option of another 150 afterwards. Source: Yahoo Finance

wiped off the map of lights. This is how it looked from orbit last night after a massive blackout hit Spain and Portugal. Cosmic silence over the region.” Source: David Sobolewski on X

The last time Germany saw potential growth above 1% was back in 2018 — also the last year when productivity made a positive impact. For the new government to hit its target of lifting potential growth above 1% again, reviving productivity will be crucial, especially as the workforce continues to shrink. (Source: Natixis thru HolgerZ)

https://lnkd.in/e3rivJrV Here's an extract >>> Bloomberg) -- Spain is ignoring calls to reconsider its nuclear decommissioning plans, betting renewables and battery storage will make up for the upcoming energy shortfall. The country is plowing ahead with plans to shut down its seven nuclear reactors, which currently contribute 20% of its power mix, over the next decade. It’s also set to close its last coal plant this year. While it’s already only second to Germany in terms of renewable capacity in Europe, Spain is looking to fill the energy gap with more wind turbines, solar panels and giant batteries. The strategy isn’t completely fossil fuel free — as it would rely on natural gas plants as a backup for the foreseeable future. Yet it is a substantial wager on clean power: It depends on a still nascent energy storage industry in Spain to rapidly expand from just 3 gigawatts of capacity today to a target of 20 gigawatts by 2030. It also requires an unprecedented roll-out of wind and solar over the next five years. Spain is targeting 81% power generation from renewables by the end of this decade — from just above 50% in the past two years.“

The fund, run by Norges Bank Investment Management, pointed to a pullback in tech stocks as the main drag, with equity returns down 1.6%. Holdings like $AAPL, $NVDA, and $TSLA all took a hit. Fixed income helped a bit, returning 1.6%, but it wasn’t enough to offset the slump. CEO Nicolai Tangen said the recent market turmoil, especially after Trump’s tariff hikes, isn’t even fully reflected yet. That early-April tariff spike alone knocked off another $200M. Despite the loss, the fund still outperformed its benchmark by 0.16%. They’ve already started trimming some tech exposure to reduce risk. CFO also confirmed they didn’t make any moves in U.S. Treasuries in April—no buying or selling. The fund's performance is mostly tied to global indexes, so there's limited room for active moves. And while it’s staying out of nuclear weapons makers like Lockheed due to ethical guidelines, there's growing political pressure in Norway to rethink that stance. Source: Wall St Engine, The Borneo Post

According to S&P Global, the Composite PMI (a key economic indicator) fell to 49.7 in April, dropping below the critical 50 mark that separates growth from contraction. The services sector was hit especially hard, with its index tumbling to 48.8 – the lowest in 14 months. This drop reflects growing worries about tariffs, as well as broader concerns around Germany’s economic and political future. This unexpected decline adds to an already grim outlook for the German economy, which is considered particularly exposed to global trade tensions. The IMF is now forecasting stagnation for Germany this year. Source: HolgerZ, Bloomberg

THE ECB CUTS INTEREST RATES BY 0.25% for seventh time in a year ▶️ The European Central Bank made yet another 25-basis-point interest rate cut on Thursday as global tariff turmoil has created widespread uncertainty and spurred fears about the euro zone’s economic growth. ▶️ A rate cut was fully anticipated by markets, with an around 94% chance of a 25-basis-point trim being priced in ahead of the decision, according to LSEG data. ▶️ The cut takes the ECB’s deposit facility rate, its key rate, to 2.25%. At its highs in mid-2023 it had been at 4%. ▶️ Tariff developments in recent weeks are widely seen by analysts and economists as a key reason for the ECB to cut interest rates. Even though many of the initial duties imposed by the U.S., as well as retaliation measures, have been put on ice or eased, fears about how they could affect economic growth have been rife. ▶️ In its policy statement, the ECB said that the “outlook for growth has deteriorated owing to rising trade tensions.” ▶️ It added, “Increased uncertainty is likely to reduce confidence among households and firms, and the adverse and volatile market response to the trade tensions is likely to have a tightening impact on financing conditions.” Source: Yahoo Finance, CNBC

The ZEW Institute’s expectations index plunged to -14 in April, down from 51.6 in March – a massive drop. Analysts surveyed by Bloomberg had expected a decline, but only to +10. The unpredictable shifts in US trade policy have fuelled global uncertainty, which is now weighing heavily on economic expectations in Germany. At the same time, any initial optimism about the new government's spending plans has quickly faded. Source: HolgerZ, Bloomberg