Company Pressures: German business insolvencies rose 6.9% in the first seven months of 2026, reaching 15,185. Transport and storage firms were among the hardest hit, as high energy and labour costs continue to weigh on companies. Economic Outlook: The government raised its 2026 growth forecast to 1.3%, but the recovery remains fragile: exports weakened over the summer and August factory orders plunged 10.6%, despite a 2% rise in industrial production. Trade and Industry: The EU and China reached a deal aimed at cutting Chinese hybrid and plug-in hybrid car exports to Europe by more than half over four years. Germany also reported an 11% rise in machinery exports to India, as firms seek markets beyond China. Investment and Markets: The EU named AMG Lithium’s Bitterfeld refinery and Zinnwald project strategic, backing efforts to build European battery-material supply chains. EU finance ministers also agreed to expand the markets watchdog ESMA’s oversight, aiming to make cross-border investment easier. Technology Ties: Britain and Germany launched an industrial technology corridor to boost cooperation in AI and deep tech.