Five Things You Need to Know to Start Your Day

Germany in limbo, Democrats head for showdown, and a world energy crunch.

Olaf Scholz of the center-left Social Democrats defeated Chancellor Angela Merkel’s conservatives in an extremely tight German election, sparking what could be months of complex coalition talks to decide who will lead Europe’s biggest economy. Leaders of both parties said they aim to head the next government, while the Greens and the pro-business Free Democrats will hold sway in the new political order. With the election result ruling out a hard-left coalition, German stocks including renewables are outperforming this morning and expectations of higher public spending are rising.