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German consumers became increasingly pessimistic this month, according to new research from GfK, Germany’s biggest market research firm.

In the latest update to its Consumer Climate monitor, GfK found that income expectations and willingness to buy had fallen for the second consecutive month — even as economic expectations improved. Consumers said they expected their personal financial situation to worsen over the coming year, with income expectations hitting a 13-month low.

Overall, the Consumer Climate measure fell to -24.7 points from -22.6 points a month earlier, GfK said.

GfK’s survey of around 2,000 German consumers was carried out between Jan. 30 and Feb. 10.

— Chloe Taylor

U.K. Prime Minister Keir Starmer announced on Tuesday that his government would raise defense spending to 2.5% of GDP by 2027, telling lawmakers in parliament that this represented a £13.4 billion ($16.96 billion) annual increase from current spending levels.

“European countries must do more for their own defense,” he said during a press conference later on Tuesday. “So, subject to economic and fiscal conditions, we will also set a clear ambition for defense spending to rise to 3% of GDP in the next parliament.”

London’s FTSE Aerospace and Defense index was up by around 1.2% at 9:18 a.m. London time, continuing its move upward from a day earlier when the index gained 2.5%.

The U.K.’s Chemring Group, which supplies tech products to the aerospace, defense and security sectors, was the top mover in the index, gaining around 3.9%. Rolls Royce was up 1.2%.

— Chloe Taylor

Luxury carmaker Aston Martin said Wednesday that it plans to trim its global workforce by 5% as it looks to cut costs.

In its full-year earnings release, the company said it was commencing a restructuring process that would lead to around 170 job cuts, representing 5% of its employee base. That’s expected to deliver savings of approximately £25 million ($31.7 million), the firm said.

“After a period of intense product launches, coupled with industry-wide and Company challenges, our focus now shifts to operational execution and delivering financial sustainability,” CEO Adrian Hallmark said in a statement.

The announcement came as Aston Martin reported a £99.5 million loss for 2024, an 11% improvement from a year earlier. Fourth-quarter profit came in at £33.3 million.

Shares were down almost 4% by 8:40 a.m. London time.

— Chloe Taylor

Recruitment giant Adecco reported a 14% annual drop in full-year operating income on Wednesday, while net income fell 7% from a year earlier to 303 million euros ($318 million) in 2024.

The Swiss company said it would update its dividend policy, leading to a proposed dividend payout of 1 Swiss franc ($1.12) per share. A year earlier, dividends had been 2.50 Swiss francs per share.

Chief Financial Officer Coram Williams told CNBC’s “Squawk Box Europe” on Wednesday that the firm was “pretty pleased” with its 2024 earnings, before discussing the dividend cut.

“We have taken the decision to update our dividend policy this morning … we’re now 40% to 50% payout ratio on adjusted EPS (earnings per share), but with no floor,” he said. “We think that’s the right thing to do because, ultimately, we are a highly cash generative but cyclical business, and it will really help us accelerate deleveraging.”

“We’ve got a clear commitment to get the leverage at or below 1.5 times net debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) by the end of 2027,” he added. “We understand this is difficult, but I think people will agree that this is necessary.”

— Chloe Taylor

Global debt levels added nearly $7 trillion to a record $318 trillion in 2024, the Institute of International Finance said, while warning that bulging borrowing levels could lead to the return of bond vigilantes.

The global debt-to-GDP ratio rose to nearly 330% of GDP last year, marking the first annual increase in debt ratios since the start of the Covid-19 pandemic.

The IIF adds it expects global debt accumulation to slow down in the months ahead, particularly in the first half of the year, as borrowing costs remain elevated.

— Jordan Butt

Auto giant Stellantis on Wednesday reported a sharp drop in full-year earnings as the company scrambles to take measures to improve its performance and profitability.

The mutlinational conglomerate, which owns household names including Jeep, Dodge, Fiat, Chrysler and Peugeot, posted full-year 2024 net profit of 5.5 billion euros ($5.77 billion), down 70% from 18.6 billion euros across full-year 2023.

Analysts had expected full-year 2024 net profit to come in at 6.4 billion euros, according to an LSEG-compiled consensus.

Shares of the Milan-listed company are up over 7% year-to-date.

Read the full story here.

— Sam Meredith

World’s largest brewer AB InBev on Wednesday posted better-than-expected fourth-quarter sales despite an annual decline in volumes.

The drinks maker, whose brands include Budweiser, Corona and Stella Artois, reported an 3.4% increase in fourth-quarter revenue to $14.84 billion, versus the 2.9% decline to $14.05 billion forecast by LSEG analysts.

Full-year sales rose by 2.7% to $59.77 billion, compared to the $59.3 billion performance expected by analysts.

Read the full story here.

— Karen Gilchrist

European markets are expected to open higher Wednesday.

The U.K.’s FTSE 100 index is expected to open 36 points higher at 8,681, Germany’s DAX up 127 points at 22,513, France’s CAC 30 points higher at 8,076 and Italy’s FTSE MIB 126 points higher at 38,911, according to data from IG.

Earnings are set to come from Adecco Group, AB InBev, E.On, Danone, Munich Re, Uniper, Stellantis, Wolters Kluwer, Aston Martin Lagonda Global Holdings, Covestro and Deutsche Telekom.

Data releases include the latest German and French consumer confidence figures.

— Holly Ellyatt