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The German government forecast Thursday that the country's economy, Europe's biggest, will stagnate this year as U.S. President Donald Trump's tariffs and trade threats weigh on its performance following months of political uncertainty. Outgoing Economy Minister Robert Habeck said the government cut its 2025 outlook to zero from the modest growth of 0.3% it predicted at the end of January. “There is above all one reason for this, namely Donald Trump's trade policy and the effects of the trade policy on Germany,” Habeck told reporters in Berlin.

The software and consulting giant said 15 of its government contracts had been shelved due to cost-cutting initiatives by the Trump administration, amounting to roughly $100 million in lost business, a relatively small portion of its consulting backlog. Analysts said IBM's consulting business was particularly vulnerable to these cuts and weak customer spending, given its reliance on government and large enterprise clients. Its results reflected this vulnerability, with the company reporting a 2% drop in revenue from its consulting segment, but IBM maintained its target of at least 5% revenue growth on a constant currency basis in 2025.

U.S. stock indexes closed up yesterday following news that the Trump administration would compromise on some aspects of its tariff agenda. But trading in Asia and Europe was mixed this morning.

WASHINGTON (Reuters) -A Republican lawmaker tasked with scrutinizing Federal Reserve monetary policy wants the U.S. Congress to help stabilize financial markets by insulating the central bank from political influence, including from President Donald Trump. After days of market turmoil triggered by Trump's attacks on Fed Chairman Jerome Powell, Representative Frank Lucas said the president ultimately made the right call by stating clearly this week that he has no intention of firing the central bank chief.

Trump’s tactical retreat on key points like Fed Chair Powell and trade negotiations with China signals a change within the White House—potentially lining up a scapegoat if its policies fall flat.

NEW YORK (Reuters) -Market participants unsettled by the Trump administration's choppy policy rollout are working to game out what the Federal Reserve would do if asset prices spiral out of control and require stabilization by the U.S. central bank. The anxiety arises from weeks of volatile trading and big price declines across a range of securities due to President Donald Trump's seesawing tariffs announcements, which are widely expected to stoke inflation while depressing growth and hiring. A more recent wave of price swings followed on the heels of Trump's attacks on the Fed for not cutting interest rates since he returned to power in January and his public musings about firing Fed Chair Jerome Powell.

US crude oil has fallen more than 22% since peaking in January. Oil extended its losses on Wednesday even as tariff pressures eased.