German Handelsblatt: Morning Briefing: Mercedes is typical of the faintheartedness of the German economy012171

Handelsblatt Morning Briefing

Manual operation: Mercedes restricts autonomous driving / Chart technology: Dax could continue to rise in 2026
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Good morning, dear readers,

When it comes to the lack of innovation and growth in Germany, there is quick agreement among senior private sector officials: the state is to blame. The many rules, the high taxes, the expensive energy. It’s no longer fun here.

Might be. But sometimes you can despair because of the lack of courage on the part of German companies. Current example: Mercedes. The inventor of the automobile with the claim to perpetual technological leadership has, at least in one area, just that: road approval for a level three assistance system. This means that the person behind the wheel can turn their attention away from the road and, for example, read or watch films.

So far, the system is only available in the S-Class and its electric counterpart EQS and it only works in certain situations (maximum 95 kilometers per hour, vehicle in front). But still.

Now Handelsblatt reporter Michael Scheppe has learned from corporate circles: In the revised S-Class, which Mercedes plans to present at the end of January, driving at level three is no longer offered. Mercedes software boss Magnus Östberg told the Handelsblatt: “Demand is not yet where we would like it to be.”

Instead, the Dax group wants to initially concentrate on cheaper automated driving assistants that require the driver to remain attentive at all times – with the option of raising this back to level three later. Let’s see if the rest of the car world waits until Mercedes is ready.

The Mercedes model CLA in San Francisco: New assistant for urban areas. Photo: Mercedes Benz

You probably have to have inhaled many years of corporate logic to understand why it would be better to discontinue a groundbreaking technology in the first place and perhaps reintroduce it later. In my opinion, the alternative would be to quickly expand the level three system to other model series, work on the maximum permissible speed, reduce costs through higher quantities and thus increase demand. The fact that this is not happening unfortunately seems to me to be symptomatic of the faintheartedness in parts of the German corporate landscape.

The group makes the right business decision.

That may also be the case. However, an experienced business economist would probably have been able to calculate the transition from hunter-gathering to agriculture and livestock farming: “Too high initial investment,” “Niche product, the market doesn’t accept it,” “Why sow plants when they grow on their own out there?”

Deutsche Börse trading floor, price forecasts: Chart technicians recognize further potential for the Dax, but also risks. Photo: Imago [M]

Chart technicians see further DAX rise

Let’s move on to something more encouraging, namely the current stock market development. This year, the Dax has already achieved five records – most recently on Friday at 25,281 points. Five chart technology analysts surveyed by Handelsblatt, whose forecasts have been surprisingly good in recent years, see further upward potential for 2026. Your price targets range from 26,400 to 28,800 points.

That would be an increase of almost five to a good 14 percent. However, there could also be setbacks of up to 20,500 points.

Unlike fundamental analysts, who derive their forecasts from real economic developments, corporate profits and economic forecasts, technical analysts base their forecasts on chart images, recurring patterns and seasonal developments.

Chart techniques are something like the globules of the financial world: either you believe in it or you leave it alone. And like the homeopathic beads, the chart technique sometimes helps even if you don’t believe in it.

Allegedly hundreds dead in Iran

The mass protests against the regime in Iran continue despite the growing number of deaths. Activists say demonstrations have spread to 185 cities. At least 490 demonstrators were killed, reported the US television channel CNN, citing the US-based human rights network HRANA. Another 10,700 people were arrested.

Axios correspondent Barak Ravid previously reported on X that, according to an Israeli government official, more than 1,000 people have been killed in Iran. These numbers cannot be independently verified.

The Iranian security authorities have severely restricted communication by blocking the Internet and jamming telephone lines. A stable connection to the outside world is practically only possible via terminals of the Starlink satellite system that have been illegally brought into the country.

US President Donald Trump has pledged support to those taking part in the protests. On Truth Social he wrote:

Iran is seeking FREEDOM, perhaps like never before. The USA is ready to help!!!

It is unclear what the help will look like. The New York Times reported, citing US officials, that Trump had also been informed in recent days about new options for military strikes in Iran.

Donald Trump: The US President speaks to reporters on Air Force One about the situation in Iran. Photo: AP

Protests after deadly shooting in Minnesota

On Saturday, tens of thousands of people in Minneapolis protested against the killing of a 37-year-old. While Noem and other federal officials said the officer acted in self-defense, state officials called the shooting unjustified.

People demonstrated not only in Minneapolis. Photo: Bloomberg

Söder enjoys watching medical series

After a hip operation, Markus Söder (CSU) admitted that he was probably a stressful patient for the medical team. Bavaria’s Prime Minister told the “Augsburger Allgemeine”:

I’m probably like many people. I have Dr. House and other medical series and I keep asking questions based on this little knowledge.

But he also listens to the advice of the experts, emphasizes Söder and concludes with the realization:

Medical therapy is similar to reforms in politics: the therapy hurts and in the middle of it you sometimes have doubts. But whoever follows through will be successful.

It seems to me that there is another parallel: As in medicine, in politics people too often operate on acute symptoms at great expense instead of getting problems under control sustainably with a sensible lifestyle.

I wish you a moderate Monday.

Kind regards,