Articles in this Cluster
22-07-2025
Commerce Secretary Howard Lutnick stated that the next two weeks will be "for the record books" as the administration finalizes tariff deals with various countries. He emphasized that President Trump's plan is to open foreign markets to American businesses and farmers, potentially leading to $300-400 billion in new opportunities and up to 1.5% GDP growth. Lutnick mentioned that countries unwilling to open their markets will face tariffs, citing Canada as an example, where 25% of goods are not tariff-free under USMCA. He also confirmed that the administration is willing to renegotiate USMCA and that the August 1 deadline for new tariff rates is firm, although countries can continue negotiating after that date. Lutnick expressed confidence in reaching a deal with the European Union, despite recent pessimistic comments from EU trade negotiators.
22-07-2025
US President Donald Trump's threats to escalate the trade war, including imposing tariffs of up to 40% on exports from over 20 countries, have been met with skepticism by financial markets, which are pricing in the likelihood that he will "chicken out" as he has done previously. Despite the EU preparing retaliatory measures, including tariffs on $21 billion worth of US goods, a prolonged trade war is considered unlikely due to the potential damage to the US economy and the impact on Trump's voter base.
22-07-2025
US Treasury Secretary Scott Bessent questioned the Federal Reserve's stance on not lowering interest rates, suggesting a review is necessary. Despite this, the S&P 500 broke the 6,300 level for the first time, and other stocks such as Meta and Amazon saw significant advances. Meanwhile, Trump Media has invested heavily in bitcoin, and Figma's updated prospectus suggests a valuation of up to $16.4 billion in its upcoming IPO. A fund manager also warned that the European defense sector's valuations have hit extreme levels, potentially signaling a slowdown.
22-07-2025
U.S. Treasury Secretary Scott Bessent questioned the Federal Reserve's decision not to lower interest rates, suggesting the government review the Fed's operations. Despite this, the S&P 500 hit a new high, closing above 6,300 for the first time, driven by advances in Meta and Amazon shares. The Nasdaq Composite also notched a record closing high. Bessent also mentioned that the upcoming tariff deadline could be used as a negotiating tool to reach better trade agreements. Meanwhile, Trump Media's bitcoin holdings rose to around $2 billion, and Goldman Sachs strategists see potential for European small caps to grow due to a weak dollar and improving regional economy.
22-07-2025
European stock exchanges are considering extending their trading hours to 24 hours to attract more retail investors, as retail activity in Europe lags behind the US. Cboe Europe is "closely monitoring" the trend, while the London Stock Exchange is examining the technological and regulatory implications. Other exchanges, such as SIX Group and Deutsche Börse, are also exploring extended hours for certain products, but Euronext has not seen demand from clients. Experts say extended hours could be positive for retail involvement, but also bring additional risks, such as lower trading volumes and sharp price moves.
22-07-2025
European markets are expected to open lower on Tuesday, with London's FTSE 100, France's CAC 40, Germany's DAX, and Italy's FTSE MIB all projected to decline. The negative sentiment is largely attributed to ongoing trade tensions between the US and EU, with the US set to impose a 30% tariff on EU goods starting August 1. US stock futures were little changed after the S&P 500 and Nasdaq Composite hit fresh records on Monday, while Asia-Pacific stocks traded mixed overnight. Early earnings reports were mixed, with Norsk Hydro's core profit beating expectations, while Julius Baer missed analyst projections for first-half net profit.
