Germany’s business outlook improved slightly, supporting expectations for Europe’s largest economy to rebound modestly — even as it faces a possible second recession in just over a year, Bloomberg News reported. An expectations index by the Ifo institute rose to 84.7 in October, up from a revised 83.1 the previous month. That beat the median estimate in a Bloomberg survey for an increase to 83.5. A measure of current conditions unexpectedly advanced. “What we see here does suggest that we see a certain stabilization,” Ifo President Clemens Fuest told Bloomberg Television on Wednesday.

Interest-rate cuts by the European Central Bank could come as soon as March and will be more significant than markets currently price in, strategists at NatWest Markets write in a note. They expect 100 basis points of ECB rate cuts in 2024, more than the close to 60 basis points priced in by the market. “Even if a March cut does not materialise, we do think that we could see more priced in relative to current market pricing and perhaps in quicker succession,” they write.

The UK economy lost jobs again in the quarter though August, marking the longest drop in employment since the depths of the coronavirus pandemic and a sign that inflationary pressures may be abating, Bloomberg News reported. Employment fell 82,000 in June to August after a 133,000 drop in the period from May through July, the Office for National Statistics said Tuesday. It was third consecutive three-month period in which employment has fallen compared to the previous three months, the worst stretch since early 2021.

Germany's economy ministry is planning 50 billion euros ($53 billion) in tax breaks over the next four years to help industry and businesses cope with high energy prices, according to a new industrial strategy to be presented Tuesday, Reuters reported. Small and medium-sized businesses in particular will benefit from the plan, the ministry said in the 60-page strategy paper seen by Reuters. The move is part of government efforts to support domestic industry in the face of high energy costs and the draw of incentive programmes in countries such as the United States.

Adler Group SA’s €6 billion ($6.4 billion) debt restructuring faced fresh legal scrutiny in a London court as some creditors appealed the deal that saved the embattled German real estate firm from slipping into insolvency, Bloomberg News reported. The plan, approved by a judge, was discriminatory according to dissenting creditors with debt maturing later that include DWS Group and Strategic Value Partners. “Our notes are at greatly material risk of not being paid,” Tom Smith, a lawyer for the bondholders, said at the Court of Appeal on Monday.

Throughout the Covid-19 pandemic and then Russia’s invasion of Ukraine, both the U.S. and Europe borrowed heavily. Now with those emergencies in the rearview mirror, a divergence has emerged: Even as the U.S. continues to let deficits rip, Europe’s are on track to narrow significantly, the Wall Street Journal reported. This is in contrast to a decade ago, when deficits in the wake of the global financial crisis pushed some members of the euro area to the brink of default.

English councils are grappling with £4 billion ($4.9 billion) gap in their finances over the next two years, threatening to further fuel a wave of bankruptcies that’s crippling local authorities, Bloomberg News reported. The Local Government Association said the funding shortfall has increased by £1 billion since its previous calculations in July after an soaring inflation worsened long-running pressures on council budgets. The squeeze on council budgets is likely to tip more authorities into financial trouble.

Signa Sports United has closed its U.S. offices, which included operations for the Vitus and Nukeproof bike brands and the Hotlines wholesale distribution business, all based in Park City. Signa, headquartered in Berlin, announced earlier this week that it had lost access to a 150 million euro ($159 million) equity commitment from its parent company, BicycleRetailer.com reported. The company has reported serious liquidity challenges and had begun the process of delisting from the New York Stock Exchange.

Greece’s credit rating was raised to investment grade by S&P Global Ratings — the first such move by one of the big three assessors since the country was shaken by a debt crisis more than a decade ago, Bloomberg News reported. Friday’s decision puts Greece at BBB- with a stable outlook. S&P joins Japan’s Rating and Investment Information Inc., Germany’s Scope Ratings and Canada’s DBRS Morningstar in lifting the nation out of junk territory. All did so following June’s resounding re-election of reformist Prime Minister Kyriakos Mitsotakis.

The management of bankrupt electric truck maker Volta Trucks is urgently seeking a buyer to take the company out of administration and help it complete the ramp-up to mass production, a source familiar with the issue told Reuters. Volta, which is headquartered in Sweden and has operations in the United Kingdom, filed for bankruptcy on Tuesday citing the bankruptcy in August of its supplier Proterra and uncertainty over its battery supplier, which had made it hard to raise sufficient capital.