U.K. Inflation Eases in Boost to Rate-Cut Chances

The U.K.’s annual rate of inflation cooled at the end of last year, making it more likely that the Bank of England will continue to lower its key interest rate, the Wall Street Journal reported. Consumer prices were 2.5% higher in December than a year earlier, down from 2.6% in November, figures from the Office for National Statistics showed Wednesday. Economists had expected annual inflation to stay unchanged, according to a poll compiled by The Wall Street Journal.
United Kingdom
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Germany’s Economy Contracts for Second Straight Year as Tariff Threat Looms

Germany’s economy contracted for a second year in a row in 2024, underlining the scale of the challenge that will face a new government after elections due in February, including the possibility of fresh tariffs on exports to the U.S., the Wall Street Journal reported. Economic output in Europe’s largest economy sank 0.2% last year after it declined 0.3% in 2023, the first two-year contraction since 2003, the federal statistics agency said Wednesday. That performance contrasts with the U.S., where growth has been surprisingly rapid over the same period.
Germany
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U.S. Financial Deregulation Would Raise Crisis Risks, French Central Bank Chief Says

Any moves to pursue financial deregulation by the incoming U.S. administration would increase the risk of a financial crisis occurring one day, France's central bank governor warned on Wednesday, Reuters reported. U.S. President-elect Donald Trump's return to office has raised the prospect of radical changes to the U.S. regulatory framework built up over decades to oversee financial services and banking, as well as digital currencies.
France
United States
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Auto Supplier Webasto Hires Restructuring Boss in Major Overhaul

German auto parts supplier Webasto SE is kicking off negotiations for a far-reaching overhaul under the aegis of a chief restructuring officer in response to the “ongoing crisis” in the automotive industry, according to a statement Jan. 13, Bloomberg News reported. Webasto reached a stabilization agreement with bank lenders and holders of its Schuldschein notes on Dec. 23, paving the way for a more holistic restructuring, the statement said. Johann Stohner from consultancy firm Alvarez & Marsal will be appointed chief restructuring officer from Jan. 15 to manage the process.
Germany
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Ukraine Debt Chief Butsa Cautions Bondholders on Trump Trades

Ukraine’s debt-management chief cautioned investors against betting on a quick and tidy resolution to the conflict with Russia based on Donald Trump’s return to the White House next week, Bloomberg News reported. “If you look at our yield curve, people expect some quick, positive outcomes,” Yuriy Butsa, Ukraine’s government commissioner for public debt management, said on the sidelines of the Invisso CEE Forum in Vienna on Tuesday.
Ukraine
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