Syz the moment

The Ifo Business Index fell to 84.7 in December, down from 85.6 in November –its lowest level since May 2020. This is far below the long-term average of 96.6 and looks weak even compared to recent years. Since the start of the war in Ukraine, the index has averaged just 88.2. The latest drop was driven by a sharp decline in the expectations component, which fell from 87 in November to 84.4 in Dec. Analysts polled by Bloomberg had predicted a slight uptick and none saw a retreat of that scale. Source: Bloomberg, HolgerZ

The drop in employment was the largest since the pandemic, with the political situation often cited by firms as a reason to be downbeat. Source: Frederic Ducrozet

Source: Barchart, Blackrock

This is not going to help... German power prices SPIKED to the levels seen during the 2022 energy CRISIS. Day-ahead prices for 5pm-6pm skyrocketed to the highest in 20 YEARS. This comes as wind generation plummeted as there has been almost no wind in recent days. Source: Global Markets Investor, Bloomberg

What went wrong in Europe? 25 years ago Europe was more productive than the US. Source: Michael A. Arouet @MichaelAArouet

Source: The Economist

by bringing down his premier in a historic no-confidence vote, vowing not to step aside before the end of his term. “The mandate that you have entrusted to me democratically is a five-year mandate, and I will exercise it fully until its end,” Macron said on Thursday. Macron’s term runs until 2027, but he is facing rising pressure from opposition groups to step down early. The president said he would name a new prime minister “in the coming days”, as he hit out at the far-right Rassemblement National and the leftist Nouveau Front Populaire alliance. Source: FT >>> https://on.ft.com/4ikxkhz

• Demand for cars in EU has stalled and may never return to pre-pandemic levels • Outlook for exports has darkened amid US tariff threats and low Chinese demand Source: Agathe Demarais on X, Bloomberg