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World events: Economic upheaval, geopolitical tensions and extreme weather conditions

The savings habits of the young generation in China have intensified after the pandemic and the real estate crisis shook confidence in the economy. Many young adults, especially those from Generation Z, shun consumerism and prefer to save money. On platforms such as Xiaohongshu, they share tips on how to save money and shop more cheaply. However, this change in behavior, which is in stark contrast to the “Moonlight” generation who often spent their salaries immediately, could weaken domestic demand, which could have a negative impact on economic growth. Faced with uncertainty in the labor market and high youth unemployment, many young Chinese are looking for secure government jobs. This pessimism could slow down long-term economic development as less consumption and falling prices for many products weigh on the economy.


The EU is planning a ban on PFAS (“Forever Chemicals”) in consumer products, with exceptions for essential industrial applications such as asthma inhalers and semiconductors in green technologies. PFAS are harmful to the environment and can cause health problems. The ban could be passed next year, while companies face potential lawsuits over environmental and health risks.


Palestinians began searching the rubble of Gaza on the second day of the ceasefire in a bid to find thousands of missing people. The ceasefire came into effect on Sunday after three hostages were released by Hamas. Thousands of Gazans have been killed and many homes destroyed. Attention is now turning to reconstruction, which could cost billions and take decades due to the enormous damage. The ceasefire is largely holding, although there have been isolated incidents of Israeli fire.


The next hostage handover under the ceasefire between Israel and Hamas is due to take place on Saturday, as confirmed by Hamas. US President Donald Trump expressed doubts that the ceasefire would hold. Palestinian sources also reported further Israeli settler attacks in the West Bank. In Gaza, 915 trucks of aid have arrived and the three Israeli women released on Sunday are in stable condition.


An extreme cold wave, known as the “Arctic Outbreak”, has hit parts of the USA. Temperatures as low as -40 degrees and heavy snowfall are making the situation life-threatening, especially in the Mid-Atlantic states such as New York, New Jersey and Pennsylvania. Heavy snowfall is also expected in the north, in New England, with up to 90 cm in some areas. In Minnesota, people are advised to carry emergency gear and charge cell phones. The cold snap is caused by extreme Arctic air masses flowing from the polar regions. These weather extremes could increase due to climate change.


Israeli institute lists the changes it expects in the Middle East under President Trump: 1. tougher approach to Iran 2. top priority: Israeli-Saudi peace 3. minimal American involvement in Syria 4. Israeli-Palestinian peace is not on the agenda.


In January 2023, Telekom switched off the last telephone exchange - but they are far from being dismantled. Because there are bureaucratic hurdles and environmental regulations that prevent dismantling.

  • DAX: Surpasses 21,000 points - hope for interest rate cut (TAG)
  • Verdi: Threatens strike in the public sector - 2.5 million employees affected (NTV)
  • Lanxess: Clearly exceeds profit expectations (HB)
  • Lufthansa: Passes on 40 aircraft to Eurowings (NTV)
  • Hydrogen: Buses in Cologne will soon be running on hydrogen (HB)
  • Japan: Central bank plans interest rate hike (FT)
  • Trump: Waives tariffs in first executive orders (NYT)
  • Oxfam study: Super-rich are getting richer (TGS)
  • Russia: Shortage of gun barrels (NTV)
  • Apple: sued in Belgium over conditions in mines in Congo (FT)

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