The race to lead Germany is diverting through Switzerland, with a campaigning push in Davos set to showcase competing visions for how to revive Europe’s biggest economy.

Paris and Berlin are currently at odds on several files including trade agreements and what approach to take on China.

Former Salvadoran president, Mauricio Funes, died late on Tuesday in Nicaragua, where the leftist leader had been living since 2016 to avoid corruption charges in his home country. He was 65.

Chancellor Olaf Scholz voiced cautious optimism on Tuesday on the potential for German-U.S. relations under President Donald Trump, citing good first talks with his administration, but stressed the importance of "cool heads" in the face of uncertainty.

Ukraine’s President Zelenskyy asked whether the US saw NATO as being necessary as he addressed the World Economic Forum in Davos. Leaders from China, Ukraine and Germany have taken the stage on day one.

Europe’s generous welfare states are coming under increasing strain as weak economic growth collides with rising demands on government budgets, particularly from aging populations.

President Donald Trump has given everyone at Davos something to talk about with his actions on the first day of his second term.

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

Mr Merz argued the need “to negotiate with the American side from a position of strength”. Read more at straitstimes.com.

Among the issues likely to be explored at the World Economic Forum this week is the future of Ukraine and its impact on Europe.

EU, German and Chinese leaders took turns defending global cooperation in Davos on Tuesday as the spectre of new trade wars looms following Donald Trump's return to the White House.