CNBC International

Germany’s election result delivered a jolt of optimism to lackluster markets at the start of the week, though the question of whether the new government can deliver promised higher public spending and reboot the economy continues to hang over the country’s beleaguered major industries. ➡️ Some sectors could stand to gain if the new government is able to deliver on its promise to reboot economic growth, lower energy prices and increase infrastructure spending. ➡️ However, some uncertainty remains, with a period of coalition talks ahead and a future in which support of smaller parties will be needed to enact promised policies including reform of Germany’s contentious “debt brake” rule. Read the full report here: https://cnb.cx/3Xf0Z2R

South Korea’s central bank cut rates by 25 basis points Tuesday to their lowest since August 2022, as it strives to stimulate a slowing economy. ➡️ The Bank of Korea cut rates to 2.75% from 3%, in line with expectations from economists polled by Reuters, trimming rates for the third time in four meetings. ➡️ The decision comes as South Korea continues to grapple with political uncertainty over the impeachment trial of President Yoon Suk Yeol. Read the full report here: https://cnb.cx/3D7Lpz4

Europe’s troubled luxury sector is showing signs of revival after an upbeat earnings season. But continued weakness in China — and the prospect of U.S. tariffs — could leave even the most exclusive brands vying for share of pocket. ➡️ But continued weakness in China — and the prospect of U.S. tariffs — looks set to leave even exclusive brands vying for share of pocket. ➡️ “Whether tariffs or any other shocks, when a consumer has to buy less, they become even more selective, and they will take even more to the brands they like,” Zuzanna Pusz, head of European luxury goods at UBS, told CNBC. Read more here: cnb.cx/3XdeU9q

➡️ The center-right Christian Democratic Union (CDU) and its sister party the Christian Social Union (CSU) look set to return to power following the German federal election on Sunday. ➡️ The win for the Christian alliance brings an end to a period of uncertainty in Europe’s largest economy, although there could now be weeks of political horse-trading as a coalition government is formed. ➡️ The most likely outcome is for the CDU-CSU to form a two-party coalition with the SPD, a tried and tested coalition formula in Germany, although a three-party coalition made up of the CDU-CSU, SPD and Greens is also a possibility. Read Holly Ellyatt's report here: cnb.cx/4bhECje

"I have to speak up because it's something that goes on and on and on. And it won't stop until we actually stop it." Spice Girl and patron of charity Women's Aid Mel B said she feared bringing out her book, which discussed her experience with domestic violence, would ruin her career. Instead, it reinforced in her the need to use her platform to speak out. #NBCUConverge Find out more: https://lnkd.in/eZC8GJk9

Ukraine has put up a staunch fight against the invasion launched by its bigger and more powerful neighbor Russia, but things appear to be going horribly wrong for it as the war’s third anniversary approaches. ➡️ Kyiv’s relationship with the United States, its biggest military backer since the start of the war, has gone rapidly downhill since President Donald Trump’s inauguration. ➡️ At the same time, relations between Moscow and Washington are undergoing a revival, leaving Ukraine and its European allies dumbfounded. Read more here: https://cnb.cx/4bfYFyn

Friedrich Merz will most likely be the next Chancellor of Germany. But the key question is, how can he form a government? ➡️ “We need to restore the confidence in our country. This is what was missing the last three and a half years under the current government,” David McAllister, CDU politician and member of the European Parliament, told CNBC’s Annette Weisbach. ➡️ Germany’s wider role in European geopolitics is a matter for debate, particularly given the ongoing war in Ukraine, and as U.S. President Donald Trump and his trade tariffs threat pose another potential headwind. Read more here: cnb.cx/4bhECje

DeepSeek’s breakthrough in artificial intelligence has boosted investor sentiment around China stocks, with a gauge of the country’s onshore as well as offshore shares soaring over 26% since its January low. ➡️ The MSCI China Index — up 26.5% so far from its January low — has gained nearly 18% this year, while the MSCI India index has lost over 7% year to date. ➡️ “Every time the China market goes up, the India market goes down,” said Thio Siew Hua, managing director and head of equities at Lion Global Investors. Read the full report here: https://cnb.cx/4k8zstD

On Feb. 19, authorities published a “2025 action plan for stabilizing foreign investment” to make it easier for foreign capital to invest in domestic telecommunications and biotechnology industries, according to a CNBC translation of the state council letter. ➡️ The document called for clearer standards in government procurement — a major issue for foreign businesses in China — and for the development of a plan to gradually allow foreign investment in the education and culture sectors. ➡️ “We are looking forward to see this implemented in a manner that delivers tangible benefits for our members,” Jens Eskelund, president of the European Union Chamber of Commerce in China, said in a statement Thursday. Read the full report here: https://cnb.cx/4ibEGD0

The Christian Democratic Union and the allied Christian Social Union secured the largest share of votes in the German federal election on Sunday, according to exit polls from German broadcaster ZDF. This puts the party’s lead candidate Friedrich Merz in prime position to take over from Olaf Scholz as chancellor of Europe’s largest economy. ➡️ Back in September, Merz was elected as the CDU party’s designated candidate for chancellor in this year’s federal elections, after leading the organization and heading the opposition CDU-CSU parliamentary group since 2022. The CSU is a regional party which has dominated Bavarian politics for decades and forms a union with the CDU at a federal level. ➡️ Much of Merz’s political career in the early 2000s was marked by a rivalry with Merkel, with the two vying for leadership positions in the CDU as well as of the CDU/CSU parliamentary group. Merz first became chair and then deputy head of the latter group after 2000. Learn more about the man poised to become Germany’s next chancellor here: cnb.cx/4k4j4dN