Good Morning from #Germany, where Chancellor Merz is under growing pressure as business leaders warn that the country is in “free fall.” Peter Leibinger, head of the powerful BDI industry group, cautioned that every month w/o real structural reforms costs Germany jobs & prosperity – and sharply limits the govt’s ability to act in the future.

Bond investors have told the Treasury Department they are concerned about Kevin Hassett’s potential appointment as Fed chair, FT reports. Investors expressed concern that Hassett, the current White House National Economic Council director, will cut interest rates aggressively to please President Trump. Discussions took place in Nov before Treasury Secretary Scott Bessent held his final round of interviews with candidates, FT reports. (via BBG)

Good Morning from Germany, where Chancellor Friedrich Merz is facing his toughest test yet. The youth wing of his own CDU/CSU is opposing a pension reform he wants parliament to pass on Friday. The reform is a core demand of his SPD coalition partner. If implemented, it could push non-wage labour costs from 2031 onward, when the baby-boomer generation retires. (via Berenberg)