The Dollar reaches its highest level since April [ABO]

Faced with Trump, Europe is weakened and divided. Unsurprisingly, some European leaders are rushing to Florida to establish special relations with the new American president, hoping to avoid trade sanctions. Additionally, Europe is unable to support Ukraine, as this would require significantly increasing military spending, to around 3% of GDP. The last time France reached such a level was in the late 1980s, a long time ago.

From an economic point of view, Europe is in bad shape. Many factories are closing in France due to the high cost of energy, rising taxes and falling global demand. Worse still, Germany is in trouble. The country has not seen growth for two years, and its once powerful industry is in decline.

Industrial orders are collapsing: in October, 41.5% of German companies reported a lack of orders, a record since the 2009 crisis. The situation is getting worse, because in July this figure was 39.4%. Nearly half of manufacturing companies are affected, especially in mechanical engineering, the metallurgical industry and chemicals. The German economic model is faltering, and the ruling coalition, which is now in the minority, risks not lasting until 2025.

In contrast, the American economy is doing well. No one expects Trump's election to change this dynamic. The economy is expected to grow by around 2% next year, in line with its potential. Trade negotiations and NATO discussions between Trump and European leaders will not be good for Europe. In this confrontation, Europe seems to be in a weak position.