#dieWIRTSCHAFTSPRAXIS-VW.THINKTANK I STATUS.QUO Q2/2025

Catch up: LDP’s disastrous Japanese election; Trump’s crude New York rally

Sentiment among US consumers increased in October to a six-month high as households grew more upbeat about buying conditions, partly because of cheaper financing costs.

The European Central Bank shouldn’t hurry to lower interest rates or spend too long right now contemplating how far and how quickly they should fall, according to Governing Council member Bostjan Vasle.

Rene Haas, the chief executive officer of Arm Holdings, says AI’s impact will be ‘quite, quite dramatic’ and there’s no holding back smart cars.

The European Union said it still sees “significant remaining gaps” with Beijing after eight rounds of negotiations aimed at avoiding tariffs on Chinese-made electric vehicles that are due to kick in by the end of this month.

The Group of Twenty’s finance ministers and central bankers see a “soft landing” for the world economy, but warned of mounting risks.

The world economy is set to rely even more heavily on the BRICS group of emerging economies to drive expansion, rather than their wealthier Western peers, according to the International Monetary Fund’s latest forecasts.

Germany’s business outlook improved in October — adding to evidence that the country’s economic downturn may be ending.

Germany’s business outlook improved in October — adding to evidence that the country’s economic downturn may be ending.

The US election next month will be a clash of visions that reverberates through the global economy for years to come.

The US election next month will be a clash of visions that reverberates through the global economy for years to come.

China’s central bank kept its one-year policy rate unchanged, after slashing funding costs by the most on record a month ago, suggesting authorities are cautiously pacing monetary stimulus to support the economy.

President Xi Jinping’s boldest economic stimulus since the pandemic failed to impress global luminaries gathered in Washington this week, who called for more measures to rebalance China’s growth and greater clarity over Beijing’s policy plans.

The European Central Bank mustn’t keep interest rates too high for too long, according to Governing Council member Martins Kazaks, who said weakness in the euro-zone economy is now his “single biggest concern.”

The European Central Bank shouldn’t hurry too much to lower borrowing costs but remain flexible, according to Governing Council member Joachim Nagel.

The European Central Bank should reserve big interest-rate cuts for exceptional circumstances, according to Governing Council member Gabriel Makhlouf, who said he prefers a “cautious” approach to ensure that inflation’s retreat to 2% stays on track.

European Central Bank Governing Council member Pierre Wunsch said it’s far too early to start considering a half-point interest-rate reduction in December.

China is pressuring its automakers to pause expansion in the European Union due to the escalating trade conflict over electric vehicles, people familiar with the matter said.

Views among European Central Bank officials about where to take monetary policy are starting to diverge as the institution’s 2% inflation target moves within close reach.

Having moved in lockstep, America and Europe now have very different concerns

The downtrend in private-sector activity in the euro-area extended into a second month with the region’s two top economies weighing on output and little sign of a recovery to come.

Germany’s economy may end the year in stagnation after a shallow recession in the six months through September, according to the Bundesbank.

Russian President Vladimir Putin said the newly expanded BRICS group showed that a “multipolar world” is being created, in a challenge to the US-dominated global order.

The recent retreat in consumer-price growth and the weakening of economic activity call for further interest-rate cuts by the European Central Bank, according to Governing Council member Fabio Panetta.

The European Central Bank will most likely lower interest rates by another 25 basis points this year even as upside inflation risks linger, said Governing Council member Robert Holzmann.

Germany is trying to cultivate India as a source of trade and geopolitical support as its deteriorating relations with China cast a pall over the country’s economic future.

China should issue 2 trillion yuan ($281 billion) of special government bonds to help create a market stabilization fund, according to a top government-linked think tank.

Beijing’s latest blitz of economic policy measures is designed more to mitigate risks than to provide broad stimulus in the near term, according to Haibin Zhu, chief China economist at JPMorgan Chase & Co.

Blackstone Inc. Chief Executive Officer Steve Schwarzman said the US is likely to avoid a recession regardless of who wins the presidential election, as both candidates have policy proposals that appeal to growth.