Business
Eurozone Inflation Rises to 2% in October, Renewing ECB Policy Questions
Inflation in the eurozone increased in October, with the consumer price index reaching 2% year-over-year, slightly above economist predictions of 1.9% and up from 1.7% in September, according to preliminary data released by Eurostat. The rise in inflation, largely driven by service and food prices, has reignited debate on the potential implications for the European Central Bank’s (ECB) monetary policy as the year draws to a close.
The uptick in inflation, though near the ECB’s target level, has sparked questions about whether sustained price pressures will lead to adjustments in the bank’s gradual approach to policy normalization. While headline inflation reached 2%, core inflation, which excludes the more volatile food and energy prices, remained steady at 2.7%, slightly above the expected 2.6%. The monthly consumer basket inflation rate rose by 0.3%, marking the fastest increase since April.
Services and Food Drive Inflation
The October rise was primarily led by services and food prices. Services maintained an annual rate of 3.9%, while food, alcohol, and tobacco prices climbed by 2.9%, up from 2.4% in September. Non-energy industrial goods rose modestly by 0.5%, whereas energy prices declined by 4.6%, though this was a softer drop than September’s 6.1% decrease.
The inflationary trend was visible across major EU economies. In Germany, annual inflation increased to 2%, driven by a rise in service and food costs, while energy prices continued to decrease, albeit at a slower rate. The harmonized inflation rate, which aligns data across the EU, reached 2.4% in Germany, exceeding forecasts of 2.1%. In France, inflation edged up to 1.2% from 1.1% in September, driven by service costs and a 1.5% year-over-year rise in the harmonized rate, slightly above expectations. Italy also saw a rise, with its harmonized rate moving to 1% annually, up from 0.7%.
Implications for ECB Policy
The ECB has previously indicated that it expects a temporary inflation increase toward the end of 2024. In its October bulletin, the bank acknowledged high domestic inflation pressures, partly due to wage growth, though it anticipates these will ease over time. Wage increases have contributed to labor cost pressures, though corporate profits are expected to help absorb these costs, potentially lessening their impact on overall inflation.
Some market analysts suggest the ECB might continue its cautious approach, given the latest data. Kyle Chapman, a forex analyst at Ballinger Group, remarked, “While the uptick in food prices is surprising, the report remains consistent with expectations of core inflation settling around the 2% mark next year.” The ECB has reaffirmed its “data-dependent” approach, signaling that any decisions will rely on real-time economic conditions.
Market Reactions Show Mixed Response
Following the inflation data, the euro edged up by 0.1% to $1.0870 on Thursday, reaching a two-week high. Meanwhile, eurozone government bond yields remained steady, with the yield on Germany’s two-year Schatz holding at 2.31%, reflecting stable short-term interest rate expectations.
However, market predictions for ECB policy moves showed slight adjustments. Money markets are now pricing in a 34-basis-point rate cut, down from 42 basis points earlier in the week, suggesting a reduced likelihood of a larger 0.5% cut.
European equities experienced declines, with the Euro Stoxx 50 down by 0.9% and France’s CAC 40 and Italy’s FTSE MIB falling by 1% and 0.7%, respectively. Notable declines included BNP Paribas, which dropped by 5.6% following weaker-than-expected quarterly earnings, and Germany’s Rheinmetall and Zalando, which each saw shares dip by more than 3%.
As November approaches, all eyes will be on the next eurozone inflation report, with many analysts and investors anticipating further signals from the ECB on how it plans to address persistent inflationary pressures.
Business
Strong Demand for Nintendo Switch 2 Pre-Orders Met With Chaos, Potential Tariff Concerns

Pre-orders for the Nintendo Switch 2 opened in the United States early Thursday and sold out within minutes across major retailers, highlighting massive consumer interest ahead of the console’s official launch on June 5. However, market experts warn that rising geopolitical tensions and new U.S. tariffs on Chinese imports could soon push prices even higher for electronics like gaming consoles.
Retailers including Best Buy, Target, Walmart, and GameStop experienced a surge of traffic overnight, with many customers reporting technical glitches, long wait times, and canceled orders. Listings for the new console — priced at $449.99 (€396.6) — appeared as “out of stock” or “unavailable” within minutes of going live.
GameStop, which offered both online and in-store pre-orders, confirmed overwhelming demand had temporarily disrupted its website. “We’re seeing overwhelming demand for Switch 2, which is causing some site issues,” the company posted on X, formerly known as Twitter. The retailer added it would work to remove duplicate or bot orders to reopen availability, though online inventory was already depleted by Thursday afternoon.
Nintendo acknowledged the “very high demand” and said it is working to fulfill orders through its My Nintendo Store, but warned that delivery by the June 5 launch date is not guaranteed. “The excitement around this online pre-order was incredible,” Walmart said in a statement, confirming that its stock had also sold out quickly.
Pre-orders were initially scheduled for April 9 but were delayed amid growing concerns over new U.S. tariffs. Nintendo cited the need to “assess the potential impact of tariffs and evolving market conditions” before proceeding.
The timing of the Switch 2’s release comes as the electronics industry faces potential price volatility due to trade tensions. President Donald Trump’s decision to implement new tariffs on Chinese goods, combined with retaliatory measures from China, has raised fears of price hikes on a broad range of consumer electronics. Economists warn that gaming consoles could be among the products most affected, given their reliance on international supply chains.
While the new features of the Switch 2 — including a larger screen, interactive chat, and new game titles — justify part of the price increase from the original Switch’s $299 (€263.5), analysts believe tariffs have also contributed to the higher cost.
Nintendo is counting on the Switch 2 to revitalize hardware sales as demand for the original console slows. In February, the company reduced its full-year sales forecast for the Switch to 11 million units, down from an earlier projection of 12.5 million.
With pre-orders now closed, customers will have another opportunity to purchase the Switch 2 on June 5, when it officially hits stores.
Business
Alphabet Stock Surges After Strong Earnings Driven by Google Search and Cloud Growth

Shares of Alphabet Inc. soared nearly 5% in after-hours trading Thursday following a strong first-quarter earnings report that beat Wall Street expectations. The tech giant, parent company of Google and YouTube, saw robust growth in its core Google Search advertising business, while Google Cloud recorded a sharp increase in profitability, bolstering investor confidence.
Alphabet reported total revenue of $90.2 billion, marking a 12% increase from the same period last year and surpassing analysts’ forecasts of $89.12 billion. Search advertising remained the company’s largest revenue contributor, bringing in $50.7 billion—a 9.8% year-on-year rise.
Google Cloud, the company’s fastest-growing segment, posted $12.3 billion in revenue, up 28% from a year earlier. While the figure came in slightly below market expectations, operating income more than tripled to $2.18 billion, signaling that Alphabet’s substantial investment in AI infrastructure and cloud technologies is paying off. Chief Financial Officer Anat Ashkenazi noted that demand for cloud services continues to exceed available data center capacity, prompting plans for $75 billion in capital expenditures this year.
CEO Sundar Pichai credited the results to Alphabet’s integrated AI strategy. “We’re pleased with our strong Q1 results, which reflect healthy growth and momentum across the business,” he said in a statement. “Underpinning this growth is our unique full stack approach to AI.”
Alphabet also announced a $70 billion share buyback plan and a 5% dividend hike, lifting its quarterly dividend to $0.21 per share. Despite Thursday’s gains, Alphabet’s stock remains down 16% for the year, impacted by broader tech-sector selloffs linked to tariff concerns.
The company warned that recent changes in U.S. trade policy could impact future advertising revenue. In particular, the end of the de minimis trade exemption—set to take effect May 2—may lead to decreased ad spending by Asia-Pacific retailers, especially Chinese platforms like Temu and Shein.
YouTube, another major revenue stream, posted $8.93 billion in advertising revenue, up 10% from last year, supported by growth in YouTube TV and podcast offerings. Meanwhile, Alphabet’s self-driving car unit, Waymo, generated $450 million in revenue, down 9% and continuing to operate at a loss.
Despite some headwinds, the results underscore Alphabet’s resilience and ongoing transformation into an AI-driven tech powerhouse.
Business
EV Boom Powers EU Auto Market Amid Broader Industry Challenges

Electric vehicle (EV) sales in the European Union surged in the first quarter of 2025, helping offset broader weakness in the automotive sector amid ongoing global trade tensions and economic uncertainty, according to data released by the European Automobile Manufacturers’ Association (ACEA).
Between January and March, EV sales rose by 23.9% year-on-year, totaling 412,997 units across the EU. The battery electric vehicle (BEV) market share edged up slightly to 15.2%, compared to 15% at the start of the year.
Three of the bloc’s four largest auto markets—Germany, Belgium, and the Netherlands—led the electric surge. Germany posted a significant 38.9% jump in EV sales, while Belgium saw a 29.9% rise and the Netherlands recorded a 7.9% increase. France, however, bucked the trend with a 6.6% decline in EV sales.
Hybrid-electric vehicles (HEVs) also performed strongly, with sales increasing by 20.7% to reach 964,108 units in the first quarter. France led this segment with a 47.5% spike in registrations, while Spain, Italy, and Germany also reported double-digit growth. HEVs now represent 35.5% of the EU’s car market.
Plug-in hybrid electric vehicles (PHEVs) saw modest growth of 1.1%, buoyed primarily by rising demand in Germany and Spain.
Despite the green energy gains, the overall EU car market experienced a slight setback. New car registrations across the EU declined by 1.9% year-on-year in Q1, with March showing a marginal 0.2% dip. ACEA attributed the slowdown to ongoing global economic pressures and trade-related disruptions affecting supply chains and market confidence.
Traditional fuel segments continued their downward trajectory. Petrol car registrations dropped 20.6% compared to the same period in 2024, with France experiencing the steepest decline at 34.1%. Diesel vehicle registrations plummeted 27.1% across the EU.
Among automakers, Volkswagen Group recorded a 4.8% increase in EU registrations, buoyed by strong demand for its Cupra models. Renault Group also performed well, with a 9.5% rise in registrations. Meanwhile, BMW posted marginal growth of 0.4%, while Mercedes-Benz and Stellantis saw declines of 6.2% and 14%, respectively.
China’s SAIC Motor emerged as a major winner, posting a 52.3% jump in registrations—reflecting growing consumer interest in Chinese EV brands. In contrast, Tesla saw EU registrations plunge by 45% in the first quarter, marking a significant setback for the U.S. electric carmaker in the European market.
Despite the mixed results, the surge in EV and hybrid sales highlights a clear shift in consumer preferences and signals a pivotal moment for Europe’s car industry as it accelerates toward electrification.
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