Berlin — German federal prosecutors said on Monday they had detained five individuals accused of operating a network that exported goods to Russian defence companies, contravening EU sanctions imposed following Moscow’s invasion of Ukraine.
The Federal Prosecutors’ Office said the arrests were carried out by customs officers in Luebeck, a Baltic Sea port city in northern Germany, and the surrounding Herzogtum Lauenburg district. The suspects — identified as German, Ukrainian and Russian nationals — were apprehended under warrants issued by the investigating judge of the Federal Court of Justice.
According to prosecutors, concurrent searches were conducted at various locations, including Frankfurt am Main, a major financial centre, and the Bavarian city of Nuremberg. Five additional suspects, who remain at large, are also under investigation. Reuters
German retail sector predicts 2% revenue rise in 2026
Düsseldorf — Germany’s retail sector expects 2026 revenue to rise by 2%, industry association HDE said on Monday, reflecting tepid consumer sentiment in Europe’s largest economy.
When adjusted for inflation, HDE forecast an increase of 0.5%.
“The new year is starting without any real momentum for the retail sector,” said HDE executive Stefan Genth, pointing to geopolitical uncertainties and what he described as an “erratic” US president.
German retail sales rose by 3.8% last year or 2.7% in real terms, according to official data published on Monday. Reuters
UK revokes Russian diplomat after spy row
London — Britain said on Monday it had revoked the accreditation of a Russian diplomat, responding to what it called Russia’s “unprovoked and unjustified” decision to expel a British diplomat last month over accusations of spying. Reuters
IMF forecasts global inflation drop to 3.8% in 2023
Dubai — Global inflation is expected to fall to 3.8% this year and to 3.4% in 2027, helped by softer demand and lower energy prices, the IMF chief said on Monday.
Managing director Kristalina Georgieva said in a speech at the Annual Arab Fiscal Forum in Dubai that global growth has held up “remarkably well” amid profound shifts in geopolitics, trade policy, technology and demographics.
Georgieva also called for more trade integration as unilateral trade agreements are seen on the increase.
“In the world of trade fragmentation, more trade integration is absolutely paramount.” Reuters
Indonesian markets slide as investors shun Prabowo agenda
Singapore/London/Jakarta — A stock market collapse is only the latest sign of trouble for Indonesia’s capital markets, which are being excluded from a rush to emerging economies, as investors cool on Southeast Asia’s biggest country and President Prabowo Subianto’s economic agenda.
Indonesia’s equity bourse has lost 12%, or more than $80bn in value, since index provider MSCI warned last week that the country risked a downgrade to frontier status due to problems with ownership and trading transparency.
Vows to make changes and the resignations of five top officials from the financial regulator and stock exchange have failed to stabilise the market — and a struggling currency points to a deeper malaise.
Investors have been avoiding Indonesia and worry Prabowo’s spending and cosy governance are slowly undoing hard-won progress made since the Asian Financial Crisis, when the rupiah collapsed and Prabowo’s former father-in-law, Suharto, was forced from office. Reuters
Japan PM’s party set for landslide in lower house election
Tokyo — Japanese Prime Minister Sanae Takaichi’s party is likely to score a landslide victory in next week’s lower house election, a survey by the Asahi newspaper showed, heightening the chance the country will continue to pursue big spending and tax cuts.
A strong showing in Sunday’s election would solidify Takaichi’s grip on her party and give a mandate for her expansionary fiscal policy, which could heighten concerns about Japan’s finances and push bond yields higher.
“Implementing expansionary fiscal policy at a time the economy is at near full employment would heighten inflationary pressure” and weaken the yen, said Ryutaro Kono, chief Japan economist at BNP Paribas. Reuters
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