Business
Eurozone Services Rebound in December, but Manufacturing Slump Persists
The eurozone’s economy ended 2024 on a mixed note, as a rebound in the services sector partially offset a prolonged manufacturing slump, according to flash data from S&P Global. December’s Composite PMI rose to 49.5 from November’s 48.3, surpassing expectations of 48.2 but remaining below the 50-mark, indicating contraction.
Services Sector Lifts Overall Activity
The services sector showed renewed vigor, with its PMI climbing to 51.4 in December from 49.5 the previous month, signaling a return to growth after a brief contraction. This recovery helped buoy overall economic activity despite manufacturing woes. The manufacturing PMI recorded its 21st consecutive monthly decline, reflecting ongoing struggles in the sector.
“While manufacturing is still deep in recession, the rebound in services output is a welcome boost for the overall economy,” said Dr. Cyrus de la Rubia, Chief Economist at Hamburg Commercial Bank.
However, signs of weakness persisted. New orders and job cuts in the services sector accelerated at the fastest pace in four years, raising concerns about labor market resilience as the eurozone enters 2025.
Inflation Pressures Resurface
Inflationary pressures re-emerged in December, with input costs and output prices rising for the third consecutive month. Wage increases were a significant driver, leading businesses to pass costs onto consumers.
“The PMI price indicators offer little reassurance,” de la Rubia noted. “Input costs are climbing, and businesses are responding with higher selling prices.”
The European Central Bank’s cautious monetary stance, including a recent 25-basis-point rate cut, appears justified as inflation concerns persist.
Germany and France Remain in Contraction
Germany and France, the eurozone’s two largest economies, continued to weigh on overall performance. Both nations recorded contracting business activity, albeit at a slower pace than previous months.
In Germany, the services sector showed tentative signs of stabilization, supported by rising real wages. Analysts are cautiously optimistic about a potential recovery, particularly with upcoming snap elections in February, which could provide greater political clarity.
France, however, faced ongoing challenges. Manufacturing remained a weak spot, with low domestic and international orders dragging on performance. The country’s services sector also struggled to sustain momentum after a summer boost from the Paris Olympics. Businesses cited political uncertainty as a significant barrier to growth.
Market Reaction
Financial markets reacted cautiously to the PMI data. The euro remained steady at $1.0510, while bond yields in the eurozone held firm. However, equities showed strain, with the Euro STOXX 50 and Euro STOXX 600 down 0.3% and 0.2%, respectively.
France’s CAC 40 underperformed, falling 0.6%, following Moody’s downgrade of France’s credit rating from Aa2 to Aa3, citing fiscal instability.
Outlook
While the services rebound offers a glimmer of hope, challenges remain for the eurozone. Political uncertainty in Germany and France, coupled with ongoing manufacturing struggles and inflation, could hinder recovery efforts heading into 2025.
Economists warn that while services momentum is encouraging, a sustained recovery will require addressing deeper structural and political challenges.
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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