We think that this week's flare-up in EU-US tensions over Greenland is unlikely to have a lasting impact on the euro-zone economy. Meanwhile, data out of Germany suggest its economy may be turning a corner but we still think the recovery in 2026 will underwhelm. Next week, we expect to learn that euro-zone GDP expanded by 0.3% q/q in Q4 and that inflation in Germany and Spain fell further in January.
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