Table of Contents

• German Economy

• Microsoft

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Economy & Finance

German Economy

Germany's economy showed unexpected resilience in the third quarter with a 0.2% GDP rise, driven by consumer and government spending, sidestepping a recession that many had predicted. However, inflation surged to 2.4% in October, challenging expectations and highlighting persistent economic vulnerabilities. Core inflation also rose, prompting economists to warn that inflation pressures may remain for a while. The labor market struggled, with unemployment rising by 27,000, surpassing forecasts, and concerns grow over potential job cuts in the auto industry. Analysts noted that Germany’s growth outlook remains sluggish amid high energy prices, limited global demand, and stiff international competition.

Technology

Microsoft

Microsoft posted higher-than-expected earnings and revenue for its first fiscal quarter, with EPS of $3.30 and revenue reaching $65.59 billion, outperforming analysts' predictions. However, the stock declined 4% after Microsoft’s forecast suggested a moderation in growth for the next quarter, projecting revenue between $68.1 and $69.1 billion, slightly below analyst expectations. Supply issues delayed data center infrastructure expansion, impacting short-term cloud capacity, but Microsoft expects balance by the fiscal year’s latter half. Azure cloud services grew 33% this quarter, fueled by AI, but broader cloud revenue saw slower gains. Microsoft's capital expenditure surged 50% year-over-year, largely for AI infrastructure, while AI investments, notably with OpenAI, remain a strategic focus.

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