25,254.21DAX · Oct. 5 close · +0.09%

DailyDrop.

1.1204EUR/USD · ECB reference rate Oct. 5 · briefly below 1.12, first time since May 2025
DAX25,254.21▲0.09%10/5EUR/USD1.1204▼0.19%10/5S&P 5007,722.72▲0.73%10/2WTI$91.11-10/2Gold$4,162.30▼1.00%10/2
Security · PoliticsSource ✓ Bundestag, public PKGr hearing · Press ✓ 7 outlets

BND chief: Russia is waging a “shadow war” against Germany. The agencies lobby for more powers

The heads of the BND, the Verfassungsschutz and the MAD said in public, in the Bundestag, what is usually said only behind closed doors. They warned of sabotage and killing operations. And they asked for new powers.

For three hours, from 10 a.m. to 1 p.m., the heads of the federal government’s three intelligence services sat on Monday in the Paul-Löbe-Haus before the Parliamentary Oversight Panel. A public hearing is held only once a year; by netzpolitik.org’s count it was the tenth. BND President Martin Jäger said Russia is waging a shadow war against Germany, one that is above all about intimidation. The Federal Republic is at risk of being drawn into a violent conflict with Russia. A major Russian attack, however, he considers unlikely, according to taz. Sinan Selen, president of the Verfassungsschutz, the domestic intelligence agency, warned of espionage and of Moscow’s readiness for sabotage and killing operations. The president of the Military Counterintelligence Service, Martina Rosenberg, said the country now faces concrete attacks; earlier, officials had spoken of an abstract threat.

The hearing was also a sales pitch. An amending bill is planned that would widen the powers of the Verfassungsschutz and the BND. Jäger spoke of a “realignment of the Federal Intelligence Service,” and Selen stressed the close cooperation between the BND and the Verfassungsschutz. Netzpolitik.org criticized that the agency heads were able to lobby for more powers largely unchallenged. Left Party MP Clara Bünger warned, according to taz, against widening powers while weakening parliamentary oversight at the same time. The panel itself seats, in this parliamentary term, only members from the CDU/CSU, the SPD and the Greens; candidates from the AfD and the Left Party failed to win the required majority in the Bundestag.

Open the story and DailyDrop’s take
By the numbers
10thpublic hearing of the three agency chiefs before the oversight panel (netzpolitik.org)
3 hrslength of Monday’s session, 10 a.m. to 1 p.m. (Bundestag)
1×a year the panel meets in public, otherwise in secret (Handelsblatt)
ScienceSource ✓ Karolinska Institute · Press ✓ 8 outlets

Nobel Prize in Medicine for two Germans and an American: Hegemann and Nagel made nerve cells controllable with light

The Karolinska Institute in Stockholm has awarded the 2026 Nobel Prize in Physiology or Medicine to Karl Deisseroth (USA), Peter Hegemann (Humboldt University Berlin) and Georg Nagel (University of Würzburg), for discoveries on light-gated ion channels and on optogenetics. In the green alga Chlamydomonas, Hegemann and Nagel found the light-sensitive protein channelrhodopsin. Deisseroth introduced its gene into nerve cells and triggered signals with blue light, later also in the brains of living mice. The prize money of twelve million kronor, about one million euros, is shared. It opens Nobel week: physics follows on Tuesday, chemistry on Wednesday, literature on Thursday, the peace prize on Friday.

Open
Word of the day
OptogeneticsScience

A method in which cells respond to light after a light-switch gene has been introduced into them. A pulse of light can turn individual types of nerve cells on and off in the living brain, which shows brain researchers which circuit does what.


Ukraine · Foreign policyPress ✓ 6 outlets · pledges according to government circles (dpa)

Merz in Kyiv: more than a billion euros for weapons, 350 million for electricity. During the visit a drone hits the North Bridge

Chancellor Friedrich Merz traveled to Kyiv by special train on Sunday in a surprise visit, accompanied by Economy Minister Katherina Reiche and representatives of defense and energy companies. According to dpa, citing government circles, more than a billion euros from already approved budget funds are to go to military aid, plus €350 million for repairs in the energy sector. The focus is on interceptor drones against the fast, jet-powered Russian attack drones; air-defense missiles, satellite technology and long-range weapons are added. For joint defense projects, President Zelensky names €8.5 billion, Berlin says 6.5; much of it is letters of intent.

“Mr. Putin, stop this senseless war,” Merz told the press. Shortly after his arrival a Russian drone hit the roadway of the North Bridge over the Dnipro; Mayor Vitali Klitschko reported two injured. On Monday the debate stayed at home: rare praise came from his own party, while AfD leader Alice Weidel criticized the trip and its cost, and that the chancellor left on the national holiday. The Russian diplomat Kirill Dmitriev reacted with scorn: photo opportunities in Kyiv did not help.

Open
Markets · CurrenciesSource ✓ ECB reference rate, dpa-AFX closing report · Press ✓ 5 outlets

The euro falls below $1.12 for the first time since May 2025. French bonds drive the worries, the DAX holds at 25,254 points

On Monday morning the euro slid as far as $1.1161, falling below the 1.12 mark for the first time since May 2025. The European Central Bank set its reference rate at $1.1204, after 1.1225 on Friday; in U.S. trading the currency recovered to about 1.12. Since mid-August the euro has lost more than five cents; in January it briefly stood above 1.20. As the reason, dpa-AFX cites conditions in the bond markets, above all in France and Italy, plus rising U.S. yields that draw capital into the United States. After the break of the mark, Helaba sees room down to 1.10.

The yield on French ten-year government bonds stood at 4.94 percent on October 1, the highest since 2002; the risk premium over German federal bonds is the highest in 14 years. Prime Minister Sébastien Lecornu wants to save around €54 billion in 2027. According to the dpa-AFX report, the DAX closed 0.09 percent higher at 25,254.21 points; traders stayed cautious because of high oil prices and rising yields. SAP gained 0.6 percent, and Nemetschek jumped 4.3 percent in the MDax after Schneider Electric submitted a billion-euro offer for the U.S. software group PTC.

Open

Domestic politicsPress ✓ 5 outlets

Merz: “We must stay together in government.” Dispute over retirement at 63 keeps the coalition on edge

From Kyiv, the chancellor urged his coalition to close ranks on the ARD program “Bericht aus Berlin,” after repeated rows over the planned social reforms. He expects the coalition agreement and the July reform package to remain the basis of the work, he said, and wants to push the package through by spring 2027, with decisions in the Bundestag and Bundesrat in early 2027. SPD parliamentary leader Matthias Miersch said on ZDF that arguing over the best path is part of governing; he was confident the challenges would be met.

The core of the conflict is pensions. In “Bild am Sonntag,” Economy Minister Reiche pointed to the SPD’s resistance to ending retirement at 63; the coalition had agreed a package, she said, and she trusts it. Labor Minister Bärbel Bas is working on exceptions for physically demanding jobs. A coalition committee meeting is due this week. Merz goes into this week weakened: after the state elections in September, which hit both coalition parties hard, an RTL/ntv poll shows only ten percent satisfied with his work.

Open
In brief
  • Germany draw 0:0 in Greece (Sunday); a Burkardt goal was disallowed after a video review for handball; five points after four Nations League gamesDFB · Sportschau · Berliner Zeitung
  • Sentix economic index for the euro area falls 2.4 to 2.7 points in OctoberSentix · dpa-AFX
  • U.S. services: ISM index falls to 54.9 points in September, expectation was 55.0ISM · dpa-AFX
  • Schneider Electric bids billions for U.S. software group PTC; Nemetschek rises 4.3 percentdpa-AFX · finanzen.ch
  • Continental gains after Morgan Stanley turned more optimistic on the tire makerdpa-AFX · finanzen.ch
  • Deutsche Telekom holds an AI investor day, Andritz and Air Liquide capital markets daysdpa-AFX event preview
  • Euro Stoxx and DAX: investors stay cautious over oil price and bond yields; Rheinmetall leads the gainersdpa-AFX · ariva.de
Seven minutes every evening, one front page — see About

Unverified — what we could not confirm

“Spain votes again on November 29.” A dpa-AFX report says Prime Minister Sánchez announced a snap election after his housing decrees failed. We found no second source by press time.
“The euro will soon fall to $1.10.” That is a forecast by Helaba, not a finding. The ECB reference rate on Monday was 1.1204.
“The CDU’s state leaders will topple Merz.” One report mentions speculation. All that is documented is the poll: ten percent are satisfied with his work (RTL/ntv).
Glossary · dotted words — economics, law, security and science terms explained in the context of the story. The list grows every day.
INSIDEBND chief: Russia is waging a “shadow war” against Germany. The agencies lobby for more powersSecurity · PoliticsNobel Prize in Medicine for two Germans and an American: Hegemann and Nagel made nerve cells controllable with lightScienceMerz in Kyiv: more than a billion euros for weapons, 350 million for electricity. During the visit a drone hits the North BridgeUkraine · Foreign policyThe euro falls below $1.12 for the first time since May 2025. French bonds drive the worries, the DAX holds at 25,254 pointsMarkets · CurrenciesMerz: “We must stay together in government.” Dispute over retirement at 63 keeps the coalition on edgeDomestic politics