In olive groves and vineyards dotted across Spain, sensors and drones paid for by Europe's largest recovery fund since the post-war Marshall Plan are gathering soil data to feed into AI models which will help farmers better manage their crops, Reuters reported. The project - decarbonising and digitalising a key economic sector - is exactly what the European Union's $955-billion "Next Generation" fund, agreed six years ago and ​fast approaching final payout deadlines, was designed to nurture.

Euro zone firms expect revenues to keep rising this quarter but profitability is taking a hit, the European Central Bank's quarterly Survey on the Access to Finance of Enterprises showed on Monday. A net 18% of surveyed firms remained optimistic about turnover developments in the next quarter but a net 10% of them are reporting lower profits, the ECB said in a statement, Reuters reported. On prices, firms' expectations did not change much.

Euro zone factory activity remained in contraction territory in January for the third straight month amid persistent weakness in new orders despite output returning to growth, a survey showed, Reuters reported. The HCOB Eurozone Manufacturing Purchasing Managers' Index (PMI), compiled by S&P Global, rose to 49.5 in January from December's nine-month low of 48.8, slightly higher than a preliminary estimate of 49.4.

An Indian-origin boss of a London printing firm has been convicted of illegally obtaining a second loan for his company, when businesses were only entitled to one under the U.K. government’s COVID-19 Bounce Back Loan scheme, TheHindu.com reported. Prashant Jobanputra, 41, was sentenced to 18 months in prison, suspended for 18 months, at the Old Bailey court in London on Tuesday (January 27, 2026), the U.K.’s Insolvency Service said in a statement.

The eurozone economy last year expanded at its fastest pace since 2022 despite higher U.S. tariffs, and seems set for continued modest growth as increased government spending on defense and the repair of frayed infrastructure kicks in, the Wall Street Journal reported. The pickup underlines the resilience of the bloc’s economy, which has avoided recession in the face of a series of shocks that include Russia’s full-scale invasion of Ukraine and rising tensions with the U.S.

German federal prosecutors descended on Deutsche Bank’s Frankfurt headquarters and Berlin offices Wednesday morning, conducting searches as part of an investigation into alleged money laundering. The raid cast a shadow on what should have been an unblemished moment of triumph as CEO Christian Sewing announced booming annual profits at Germany’s largest lender, Fortune reported. The morning after the raid, Deutsche Bank announced its highest annual profit since 2007: $8.5 billion net profit in 2025, powered by robust investment banking revenues.

The number of UK businesses in “critical” financial distress is surging as firms grapple with an increased tax burden, unpredictable economic outlook and rising costs, according to insolvency specialist Begbies Traynor, Bloomberg News reported. Corporate distress increased 43.8% in the fourth quarter compared with a year earlier, and all 22 sectors covered by the firm’s proprietary Red Flag Alert tracker saw a deterioration in their financial health. Distress was up 21.3% compared with the previous quarter, Begbies Traynor said in a report published Thursday.

The Original Factory Shop has fallen into administration, putting the future of the chain’s 137 stores and 1,180 staff at risk, The Independent reported. The discount retailer appointed administrators from Interpath Advisory on Wednesday and will continue to trade from its stores across the UK as the insolvency experts assess options in a bid to keep it afloat. While all online sales made before Wednesday will be delivered as normal, online operations have now been shut down.

The $2tn (£1.5tn) private credit industry is being quizzed by the City watchdog over fears its unrecognised losses could fuel a financial system meltdown, the Telegraph revealed. Officials from the Financial Conduct Authority have in recent weeks been piling pressure on so-called shadow banks – an increasingly critical source of funding for the speculative AI boom – to more rigorously mark down the value of loans that are at risk of not being repaid in full.

The Irish economy grew at an accelerated rate of 12.6 per cent in gross domestic product (GDP) terms last year as multinationals front-loaded goods exports into the US to avoid tariffs, the Irish Times reported. The Central Statistics Office (CSO) cautioned that its estimate of GDP growth for 2025 was preliminary and based on “incomplete” data sources. If confirmed, however, it will make Ireland the fastest-growing economy in Europe and one of the fastest in the world.