The eurozone economy likely started the year less weakly than it ended 2024, according to business surveys, but the threat of higher U.S. tariffs still tempers hopes that lower borrowing costs will help fuel a pickup as the year advances.

World leaders gathered in Davos, Switzerland for the annual meeting of the World Economic Forum. Jeanna Smialek, a New York Times reporter, describes how there was a veneer of anxiety over the event,

Europe must “be prepared” for potential trade tariffs from U.S. President Donald Trump, the president of the European Central Bank Christine Lagarde told CNBC at the World Economic Forum in Davos on Wednesday.