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Why markets rallied on reciprocal tariffs; Germans to vote in the shadow of Trump, Xi and Putin

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Why did markets greet the latest White House tariffs announcement so warmly? Deputy Chief Markets Economist Jonas Goltermann is on The Weekly Briefing from Capital Economics to talk about the influence of Donald Trump’s reciprocal tariffs plan on investor sentiment and discuss where the much-vaunted 'Trump trade' goes from here. 
The episode’s main item is all about Germany. With voters in the euro-zone’s biggest economy heading to the polls on 23rd February, Andrew Kenningham and Elias Hilmer from our Europe team talk about what the next government could look like, whether it has the will to overhaul the country’s stalled growth model, and how Germany will fare in a world increasingly shaped by Donald Trump, Vladimir Putin and Xi Jinping.

Analysis and data referenced in this episode:

Euro-zone Drop-In: German election 2025 – Macro and market implications

/events/euro-zone-drop-german-election-2025-macro-and-market-implications

German economy post-election: from bad to not much better
/publications/europe-economics-focus/german-economy-post-election-bad-not-much-better

Data: Euro-zone Debt Sustainability Monitor
/data-and-charts/euro-zone-debt-sustainability-monitor

The slow agony of Germany’s auto industry
/publications/europe-economics-focus/slow-agony-germanys-auto-industry