German Investment in China Soars to a 4-Year High

Artificial intelligence is impacting the physical world as it's being used to enhance efficiency and productivity in buildings from airports to hospitals, according to Honeywell International Inc.

So-called "physical AI" went from pilot projects to widespread adoption in 2025, with more than 200,000 sites globally implementing such tools to do things like configuring the workflow of a car factory or deciding what energy sources to use at different times of the day, said Anant Maheshwari, Honeywell's president of global regions.

"Every building needs energy efficiency, it needs a better way of providing safety and security, it needs a better way of providing productivity for people," Maheshwari said in an interview with Bloomberg TV on the sidelines of India Energy Week in Goa.

Honeywell is also using lessons it learned during the pandemic to make sure its supply chains can withstand the disruptions being brought about by constant tariff threats from US President Donald Trump.

"The trade order in the world is shifting, it's moving a lot more to bilaterals from standard global supply chains," Maheshwari said. The pandemic "was a great wake up call to everybody in creating supply chains that could work within local ecosystems. We did that and therefore we are very well set up to work with uncertainties that come in with any kind of bilateral changes."

Source: Bloomberg Europe

One year after its high-profile launch, President Donald Trump's Golden Dome missile-defense initiative shows little tangible progress. The ambitious national security project has become bogged down by internal technical disputes and serious concerns over its space-based components, delaying the release of billions of dollars in funding.

The executive order, signed on January 27, 2025, established an aggressive 2028 deadline to field a comprehensive missile-defense system for the U.S. homeland. Yet a year later, the program has barely touched the $25 billion appropriated for it last summer as officials continue to debate the fundamental architecture of the system.

Funding on Hold as Key Decisions Loom

According to two U.S. officials, the architectural design of the missile defense shield is still being finalized, preventing the large-scale execution of its budget. While the money is available, they noted that significant funds could be released once critical decisions are made.

In response to questions, a Pentagon official stated that the Golden Dome office continues to meet the goals outlined in the executive order.

"The implementation plan and associated technologies are dynamic; however, the foundational elements of the architecture are now established," the official said. "The specifics of architecture are classified."

The Contentious Debate Over Space-Based Weapons

The Golden Dome project envisions a multi-layered system. It aims to expand existing ground-based defenses—like interceptor missiles and sensors—while adding experimental, space-based elements to detect, track, and potentially counter threats from orbit. These new elements would include advanced satellite networks and controversial on-orbit weaponry.

One of the primary sources of delay is the internal debate over this classified space-based equipment. A defense industry executive suggested the dispute likely involves communications standards. Another executive speculated it could involve anti-satellite capabilities, which raises questions about how offensive weapons would fit into a defensive shield.

The United States has historically opposed anti-satellite weapons due to concerns about space debris, notably criticizing a Chinese test in 2007.

According to a U.S. official and industry executives, the space-based architecture must be settled before the program's director, General Michael Guetlein, can move forward with a planned series of procurement contracts.

Contract Awards Lag Amidst Uncertainty

The high-level debates have resulted in a slow start for procurement. So far, the Space Force has only awarded a handful of small-value contracts for Golden Dome.

In November, about a half dozen contracts, each valued at around $120,000, were awarded to companies including Northrop Grumman, True Anomaly, Lockheed Martin, and Anduril to build competing missile defense prototypes. These contracts represent the first small steps in a program Trump has said will eventually cost $175 billion. Since December, at least one classified briefing on the system's architecture has been held for defense companies.

Tom Karako, a weapons security expert at the Center for Strategic and International Studies, noted that much of the past year was dedicated to security reviews, staffing, and planning. He believes the 2028 completion date is unlikely.

"There is a lot that can be done in the next three years in terms of better integrating what we already have," Karako said, "but there's no question that there will be things that will be implemented and evolve after 2028."

The Unresolved Question of Greenland's Role

Another unresolved issue surrounding Golden Dome is the potential role of Greenland. President Trump has recently linked U.S. control of the Danish territory to the missile defense initiative, stating that acquiring Greenland is "vital" to the project.

However, defense experts point out that existing agreements already permit expanded U.S. military operations on the island. Further complicating the picture, one U.S. official confirmed that Greenland is not part of Golden Dome's proposed architecture.

Swiss drugmaker Roche's logo is seen at their headquarters in Basel, Switzerland January 28, 2016. REUTERS/Arnd Wiegmann

Roche's (ROG.S) experimental obesity drug, which works in a similar way to Eli Lilly's (LLY.N) Zepbound, produced as much as 22.5% weight loss in a mid-stage trial, underpinning the Swiss drugmaker's efforts to catch up with dominant rivals.

The company said on Tuesday that the Phase-II efficacy rate - adjusted for the placebo effect - reflected 48 weeks of treatment and was based on participants who fully followed the treatment regimen.

Taking into account patients who fell behind the treatment plan, the placebo-adjusted weight loss was 18.3%. The company said treatment for longer would likely yield better results.

Roche's experimental obesity drug CT-388 - a once-weekly injection - is a so-called dual GLP-1/GIP receptor agonist that regulates blood sugar and reduces appetite and is in the same class as Lilly's market-leading Zepbound, also known as tirzepatide and Mounjaro.

CT-388 was acquired through Roche's $2.7 billion purchase of U.S. biotech firm Carmot Therapeutics in 2023.

RESULTS VALIDATE TWO LARGER TRIALS DUE TO START

Roche said the results, based on the highest of five doses tested, validated its choices on two larger Phase III trials it designed late last year and due to start this quarter.

Roche, whose shares have been bolstered by positive trial results in multiple sclerosis and breast cancer, has costly ambitions to catch up with Lilly and Novo Nordisk (NOVOb.CO), opens new tab in an obesity drug market some analysts say could reach $150 billion annually by the early 2030s.

Investors were lukewarm on the trial's results, with shares gaining 0.5% in morning trading, because it will be years until the drug is launched in an already-crowded market.

"The headline data released today puts CT-388 pretty much into the same efficacy ballpark as Zepbound," Jefferies analysts said in a research note.

ROCHE HOPES IT HAS SUPERIOR MODE OF ACTION

Still, the company's hopes remained intact that CT-388 offered a superior mode of action, said Manu Chakravarthy, Roche's head of development in the cardiovascular, renal, and metabolic fields.

"To see no plateau and this very steep linear trajectory is likely a reflection of this potential for higher efficacy," he told Reuters, adding that the result further reinforced Roche's "commitment to the field."

Roche has six drug candidates in trials for the treatment of obesity and related conditions like type 2 diabetes and hypertension, which could all be launched by 2030.

It forecasts three of them could become blockbusters with annual sales over $1 billion.

Source: Reuters

Germany's Economy Minister, Katherina Reiche, has declared that the country must find new economic partners to navigate a changing global landscape. This call comes as long-standing relationships with allies like the United States have soured, leading to damaging import tariffs.

German Economy and Energy Minister Katherina Reiche has called for new economic partnerships in response to a changing global order.

Shifting Alliances in a Volatile World

Speaking at the Handelsblatt energy summit, Reiche painted a picture of growing global instability. "The world has become more uncertain, and alliances that we have trusted and relied on are beginning to crumble," she stated.

Reiche clarified that this doesn't mean abandoning traditional partners entirely. Instead, Germany aims to "continue to work together, however challenging that may be," while actively "seeking new partners."

Identifying Potential New Partners

This strategic pivot is a direct response to the unpredictability of U.S. policy under President Donald Trump, whose administration imposed tariffs on key allies, including Canada and the European Union.

To counter this, Reiche identified several potential partners for Germany to pursue deeper economic ties with. The list includes regions and countries such as:

• South America

• India

• The Middle East

• Canada

• Australia

• Malaysia and other Asian nations

The Domestic Economic Imperative

Forging new alliances is not just about geopolitics—it is also critical for the future of Germany's economy, the largest in Europe.

Reiche warned that the country's recent economic performance is not sustainable, as it relies heavily on debt-funded investments in defense and infrastructure.

"We are talking about 1%, 1.5%," she said, referring to GDP growth. "This is not sustainable."

Official Growth Forecasts Revised Downward

The minister's concerns are reflected in official projections. The German government is expected to lower its 2026 GDP growth forecast from 1.3% to just 1.0%. Looking further ahead, GDP growth for 2027 is forecast at 1.3%.

Fabrice Cambolive, Chief Growth Officer & CEO Renault Brand, Renault Group, speaks during the launch of a new model of Renault Duster in Chennai, India, January 26, 2026. REUTERS/Riya Mariyam R/File Photo

Closer trade ties between India and the European Union will reinforce French carmaker Renault's decision to invest in both regions, chief growth officer Fabrice Cambolive said on Tuesday, hours before the two sides finalised a landmark free trade deal.

Under the deal, tariffs on cars imported from the EU will be slashed immediately to about 30-35% from as high as 110% and then reduced to 10% over time. While the immediate effect is still being assessed, it is expected to benefit European carmakers like Renault (RENA.PA), Volkswagen (VOWG.DE), Mercedes-Benz (MBGn.DE), opens new tab and BMW (BMWG.DE)over time.

"Strategically, it shows the direction and this capacity to work closer between Europe and India is for us, a good news, because we are a company which has bet on these two continents on a very high level," Cambolive told Reuters in the southern Indian city of Chennai.

"It will reinforce our willingness to invest on both continents because we are kind of Indian and European company," he added.

Apart from cars, tariffs on imported car parts from Europe will be abolished after five to 10 years, making it easier for companies to streamline supply chains as well.

Cambolive said while it is important to be able to export from Europe to India, it is also important to see what role India can play in the development of the European automotive industry in terms of parts and cars.

"India was perhaps not in the top one priority (for Renault) in the last four years, but will become because of this getting closer strategy, the strength of our people there, the potential of market growth, and of course, the FTA," he added.

On Monday, Renault relaunched its most popular nameplate in India, the Duster SUV, leaning on the world's third-largest car market for growth outside Europe.

Source: Reuters

A person walks along a street during a blackout, which left thousands of homes without power after a suspected arson attack at the Lichterfelde power plant in the Steglitz-Zehlendorf district in southern Berlin, Germany, January 6, 2026. REUTERS/Lisi Niesner/File Photo

Germany will step up efforts to fight left-wing militants after activists claimed responsibility for an attack on a power station in January that caused the longest electricity blackout in Berlin since World War Two, the interior minister said.

"Our security agencies will be significantly reinforced in the fight against left-wing extremism," the minister, Alexander Dobrindt, said on Tuesday.

He added that 1 million euros was on offer for information leading to the perpetrators of the January attack, which was suspected to have been carried out by a far-left activist organisation called the Volcano group. The incident left 45,000 households without power in freezing temperatures.

Germany's domestic intelligence agency will devote more staff to left-wing militancy, Dobrindt said, adding that new legislation is being prepared to expand the digital investigative powers of security authorities. The measures would cover automated data analysis, biometric facial recognition and the storage of IP addresses.

In its latest report, the domestic intelligence agency said left-wing motivated crime was up 38% in 2024 although the number of leftist violent crimes had fallen by 27%.

Dobrindt said the move, as well as a planned law to protect critical infrastructure, would not lead to a reduction in the fight against other forms of radicalism.

"We have had a lot of success with a right-wing extremism, Islamist terrorism .. But the focus has not been sufficiently on left-wing extremism and we see left-wing terrorism ... is making a strong comeback," he said.

Source: Reuters