A comprehensive roundup of the most impactful business, economics, finance, tech, and startup news from across Europe covering power outages, corporate earnings, tech investments, and market trends.
1. Massive Power Outage Disrupts Spain and Portugal
A rare atmospheric phenomenon caused a huge power outage across Spain and Portugal, halting businesses, disrupting phone lines and internet, and forcing thousands of workers to leave their posts. The blackout, which affected major manufacturers like Ford and Iveco, is expected to cost tens of millions of euros. Experts say the incident highlights vulnerabilities in the region’s infrastructure and may slightly impact monthly GDP growth, though markets remained stable.
2. Novartis Surges with 34% Net Income Growth in Q1 2025
Swiss pharmaceutical giant Novartis reported a 34% surge in Q1 net income, reaching $13.23 billion in revenue-an 11.9% increase over the previous year. Strong performance in cardiovascular, immunology, neuroscience, and oncology segments drove the growth. Novartis raised its full-year sales outlook, now expecting high single-digit growth in 2025.
3. Deutsche Bank Delivers 39% Profit Jump, Driven by Revenue Growth
Germany’s Deutsche Bank posted a 39% year-on-year rise in Q1 profit before tax, totaling €2.8 billion. The bank’s net revenues grew 10%, while noninterest expenses fell 2%. The return on tangible equity rose to 11.9%, reflecting strong performance across all business segments and improved cost efficiency.
4. Lufthansa Group Revenue Up 10% Despite Net Loss
Lufthansa Group reported a 10% increase in Q1 2025 revenue, reaching €8.1 billion. Operational performance improved, with flight punctuality at a ten-year high and compensation payments for delays down 52%. Passenger numbers on North Atlantic routes rose 7.1%. Despite a net loss of €885 million, the group’s cash flow and balance sheet strengthened, with liquidity at €11.4 billion.
5. European Tech Startups Raise €18.4 Billion in Q1
European tech startups secured €18.4 billion in funding across 912 deals in Q1 2025. Seed rounds accounted for nearly €468 million, with the continent’s startup ecosystem showing resilience and strong investor interest. This trend underscores Europe’s growing influence in global tech innovation.
6. Spain and Portugal’s Blackout Hits Manufacturing and Logistics
The Iberian power outage disrupted major supply chains, halting operations at car and truck plants employing around 5,000 workers. Fuel supply issues hindered trucking, and thousands of smaller suppliers without backup power were affected. The event exposed challenges in scaling up renewable energy and infrastructure resilience.
7. European M&A Set for a Busy 2025 as Financing Eases
Dealmakers across Europe anticipate increased merger and acquisition activity in 2025, buoyed by easier financing conditions. Asset management is expected to see consolidation, and sectors like data centers are attracting major investments. In 2024, EMEA deal volumes rose 15% to $883 billion, setting a positive tone for 2025.
8. Economic Growth in Europe Slows, But Outlook Remains Positive
Euro area GDP growth is projected to slow to 1.3% in 2025, with inflation moderating and the ECB expected to cut rates to 1.75% by July. Increased military spending and fiscal support in Germany will help offset trade tensions and industrial challenges, supporting a cautiously optimistic economic outlook.
9. Spain’s Economy Shows Resilience Despite Disruptions
Spain’s economy grew 3.2% in 2024-more than double the eurozone average-driven by domestic demand and tourism. Despite the blackout’s impact, the country’s main stock index, IBEX 35, rose 0.75%, reflecting market confidence in Spain’s economic fundamentals.
10. HSBC Holdings Q1 Earnings Beat Expectations Despite Revenue Dip
HSBC Holdings reported Q1 2025 revenue of $16.8 billion, down 16% from the previous year, but still beat analyst expectations. Net income fell 32% to $6.93 billion, with profit margins declining to 41%. The results highlight ongoing challenges but also resilience in Europe’s banking sector.
11. Lufthansa Technik and Cargo Units Post Robust Results
Lufthansa Technik saw an 18% revenue increase to €2 billion, with adjusted EBIT up 49% to €161 million. The cargo division returned to profitability, posting €62 million in EBIT. These results reflect strong demand for maintenance services and improved cost structures in logistics.
12. European Financial Institutions Recover from Early 2025 Market Volatility
European banks, including Deutsche Bank, have largely recovered from market declines seen in early April. Improved retail banking performance and rising mortgage loan issuance contributed to the rebound, with most publicly traded banks regaining lost ground.
13. Spain’s Renewable Energy Expansion Faces Infrastructure Hurdles
The blackout in Spain and Portugal highlighted the challenges of scaling renewable energy. Experts warn that infrastructure resilience must improve to support the region’s ambitious green energy goals and prevent future disruptions.
14. Lufthansa’s Passenger Yields and North Atlantic Routes Outperform
Lufthansa’s passenger yields rose slightly in Q1, with North Atlantic routes showing particularly strong performance. Passenger numbers increased 7.1% and revenue on these routes climbed 6.7%, reflecting robust transatlantic travel demand.
15. European Dealmakers Eye Data Center Investments
Spanish utility Iberdrola is launching a data center unit sale valued at €2 billion and plans to invest up to €10 billion in the subsidiary. The move signals growing investor interest in digital infrastructure and long-term capital opportunities in Europe.
16. Spain and Portugal’s Power Outage Leaves Markets Unfazed
Despite the widespread blackout, European markets remained stable. The IBEX 35, EUROSTOXX 600, and other major indices closed higher, indicating investor confidence in the region’s ability to manage short-term disruptions.
17. Novartis Raises Full-Year Guidance on Strong Q1 Results
Following its robust Q1 performance, Novartis raised its full-year sales guidance to high single-digit growth and expects core operating income to grow in the low double digits, underscoring the company’s confidence in sustaining momentum.
18. German Fiscal Support and Military Spending Boost Euro Area Growth
Increased fiscal support in Germany and higher military spending across Europe are expected to provide a significant boost to euro area growth in 2025 and 2026, helping offset headwinds from global trade tensions and industrial slowdowns.
19. European Asset Management Sector Braces for Consolidation
The asset management sector in Europe is set for increased consolidation in 2025, with firms like Canaccord Genuity reviewing their wealth management operations. This trend reflects a broader shift toward scale and efficiency in financial services.
20. Lufthansa Reduces Net Debt and Pension Liabilities
Lufthansa’s adjusted free cash flow rose to €835 million, helping reduce net debt to €5.3 billion and pension liabilities to €2.2 billion. The airline’s improved financial position provides a buffer against ongoing market uncertainties and positions it for future growth.
From major power outages and robust corporate earnings to tech investment surges and M&A optimism, Europe’s business and tech landscape continues to evolve rapidly. Despite challenges such as infrastructure disruptions and slowing GDP growth, the region demonstrates resilience and adaptability, setting the stage for continued innovation and economic recovery.
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