German economy shrank 0.2% in final quarter of 2024
Germany’s economy contracted 0.2% quarter-on-quarter in the final three months of 2024, the country’s Federal Statistical Office said on Tuesday, confirming a preliminary reading out at the end of January.
The fourth-quarter performance followed quarterly growth of 0.1% over the July-September stretch.
Officials cited significant export declines and an ongoing slump in manufacturing output among the headwinds facing the German economy at the end of last year.
— Chloe Taylor
Unilever CEO Schumacher to step down
Tubs of Ben & Jerry’s ice cream in a store freezer.
Bloomberg | Bloomberg | Getty Images
Unilever CEO Hein Schumacher is stepping down after less than two years in the job, the company said Tuesday, with current CFO Fernando Fernandez set to take his place leading the company.
Schumacher — who took the reins in July 2023 and was tasked with leading the overhaul of the consumer goods giant — will stand down as CEO and board director in March and will leave the company on May 31. His departure is taking place by mutual agreement, the consumer goods firm said.
Fernandez’ new role will take effect March 1.
Unilever said there was no change to its 2025 outlook or the company’s medium-term guidance following this announcement.
“On behalf of the Board, I would like to thank Hein for resetting Unilever’s strategy, for the focus and discipline he has brought to the company and for the solid financial progress delivered during 2024,” Unilever Chairman Ian Meakins said in a statement.
“While the Board is pleased with Unilever’s performance in 2024, there is much further to go to deliver best-in-class results. Having worked with Fernando closely over the last 14months, the Board is very confident in his ability to lead a high performing management team, realize the benefits of the GAP [Growth Action Plan] with urgency, and deliver the shareholder value that the company’s potential demands,” Meakins added.
Srinivas Phatak, Unilever’s current deputy CFO and group controller, will take over as interim CFO. An internal and external search now being initiated to permanently fill the role, the company added.
— Karen Gilchrist
Markets relieved by German election result, but key industries remain mired in uncertainty
Frankfurt’s DAX index gained 0.6% Monday, outpacing a flat U.K. FTSE 100 and 0.78% loss for France’s CAC 40, while the euro nudged higher against the U.S. dollar and British pound and German borrowing costs were little-changed.
Germany’s election delivered a victory for the conservative alliance of the Christian Democratic Union (CDU) and Christian Social Union (CSU). That has set up CDU-CSU candidate Friedrich Merz — a center-right, pro-business politician who serves on the boards of EY Germany and the Deutsche Börse — as near-certain to take over as the next chancellor.
Some uncertainty remains however, 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.
— Jenni Reid
European markets: Here are the opening calls
European markets are expected to open in mixed territory Tuesday.
The U.K.’s FTSE 100 index is expected to open unchanged at 8,637, Germany’s DAX down 29 points at 22,381, France’s CAC 2 points lower at 8,084 and Italy’s FTSE MIB 27 points higher at 38,542, according to data from IG.
Earnings come from Fresenius Medical Care, Smith & Nephew, Heidelberg materials and Alcon. On the data front, final fourth-quarter German gross domestic product data will be released.
— Holly Ellyatt
