Investors switch out of low-risk assets as Trump’s tariffs come into effect

The deal signed last week between the centre-right CDU and centre-left SPD paves the way for vital investment in Europe’s biggest economy

Some years ago, hundreds of German finance ministry staff dressed in black and formed a giant zero to salute their boss, Wolfgang Schäuble, as he left office. It was a tribute to Mr Schäuble’s extreme fiscal conservatism, which had delivered Germany’s first balanced budget in the postwar period. Amid resurgent prosperity in the Angela Merkel years, the so-called black zero – symbolising a constitutional prohibition on public debt – had gradually acquired cult status.

As a new administration prepares to take power in Berlin, it seems unlikely that human euro signs will welcome the latest politician to take on Mr Schäuble’s former role. But in dramatic fashion, the spending taps are set to be turned on. Via a swiftly staged March vote in the outgoing Bundestag, “debt brake” dogma was consigned to history by the chancellor‑elect, Friedrich Merz. The way was thus paved for groundbreaking expenditure on defence, and the overhaul of an economy being left behind in a changed, suddenly menacing world.

Continue reading…

Online orders paused, food items missing from shelves – here’s what we know about the chaos at M&S.

Crypto industry prepares for expected wave of demand from banks and asset managers

President Trump’s tariff increase on imports from China would basically end most trade between that country and the U.S., according to economist Erica York.

Private equity-backed EG Group continues to explore potential New York listing