German factory orders fell in January by the most in a year, a poor start to a quarter when Europe’s largest economy may have struggled to achieve any growth at all.

Germany’s conservative CDU/CSU bloc under chancellor-in-waiting Friedrich Merz and the Social Democrats are set to start exploratory talks on a coalition on Friday, said people familiar with the matter.

Germany’s conservative leader Friedrich Merz emerged as the winner in Sunday’s election, but the results gave his bloc just one clear path to power with intense pressure to move quickly to form a government.

Germany’s chancellor-in-waiting Friedrich Merz has opened talks with the Social Democrats to quickly approve as much as €200 billion ($210 billion) in special defense spending, according to a person familiar with those discussions.

German conservative leader Friedrich Merz has begun the heavy lifting required to shore up the parliamentary super-majority he’ll need to drive through his plan to unleash limitless defense spending.

Germany’s stock index futures and the euro both rallied in Asian trading after the country’s opposition leader Friedrich Merz won Sunday’s federal election, matching opinion polls and paving the way for a pivot to increased spending.

French satellite operator Eutelsat Communications SA said talks with the European Union to replace Elon Musk’s Starlink in Ukraine are intensifying as the US pulls back from its commitments there.