Less than 50% of european equities sectors are reporting positive YoY EPS growth
Source: MacroMicro
Europe is heading for the next humiliation. If Nvidia continues its triumphal march, the chip manufacturer could soon be worth more than the 50 largest comps in the Eurozone.
$NVDA hits a new all-time high yesterday. Nvidia is now valued at $4.3 Trillion Source: HolgerZ, Bloomberg
The EU has admitted it doesn’t have the power to deliver on a promise to invest $600 billion in the United States economy, only hours after making the pledge at landmark trade talks in Scotland.
That’s because the cash would come entirely from private sector investment over which Brussels has no authority, two EU officials said The deal included a pledge to invest an extra $600 billion of EU money into the U.S. over the coming years. “It is not something that the EU as a public authority can guarantee. It is something which is based on the intentions of the private companies,” said one of the senior Commission officials. The Commission has not said it will introduce any incentives to ensure the private sector meets that $600 billion target, nor given a precise timeframe for the investment. However, the first official said that the $600 billion figure was "based on detailed discussions with different business associations and companies in order to see what their investment intentions are." Source: Politico
EU trade deal with Trump sparks backlash in Europe: The new trade agreement w/the US is drawing criticism across Europe.
German Chancellor Friedrich Merz said, "I'm not satisfied with this result in the sense of calling it 'good.' But considering where negotiations started with the US, achieving more just wasn't realistic." French Prime Minister François Bayrou went further, calling the EU’s acceptance of the deal a “dark day” and a sign of submission. The EU is the US’s largest trading partner, with a trade surplus of ~$250bn. Critics argue the asymmetrical deal reflects the true balance of power – and that a region which lags economically and relies on US security shouldn't be surprised when it's forced to make concessions. Source: Yahoo Finance, HolgerZ
Will the Europeans be able to buy $250B per year of American energy?
Does not seem likely according to this chart ... Source: Bloomberg
The Euro suffered its steepest one-day drop against the dollar since May on Monday, as Germany and France voiced fears that the long-awaited EU-US trade deal would hurt the European economy.
The single currency was down more than 1 per cent against the dollar and weakened by 0.8 per cent against the pound, following the announcement on Sunday that the US would impose 15 per cent tariffs on most imports from the EU. The agreement, hailed by European Commission president Ursula von der Leyen as “the biggest trade deal ever” and covering nearly 44 per cent of global GDP, averted a possible transatlantic trade war. But German chancellor Friedrich Merz said on Monday that the tariffs would cause “considerable damage” to his country’s economy, Europe and the US itself. “Not only will there be a higher inflation rate, but it will also affect transatlantic trade overall,” he said. “This result cannot satisfy us. But it was the best result achievable in a given situation.” French Prime Minister François Bayrou said the trade deal marked a “dark day”, adding that the EU had “resigned itself into submission”. Source: FT
President Trump has said the United States has officially reached a trade deal with the European Union.
➡️ The trade deal will include 0% tariffs, the EU buying $750B of US energy, and reduced automotive tariffs to 15% with an understanding that the EU will purchase more US vehicles. ➡️ The US and EU have struck a tariff deal that will avert a transatlantic trade war between the two sides but still impose American tariffs of 15 per cent on most imports from the bloc. ➡️ As part of the deal the EU has also agreed to spend hundreds of billions of dollars on additional US energy products and weapons, in exchange for the broad 15 per cent levy that covers many European exports including cars. ➡️ The agreement was struck following a meeting on Sunday between US President Donald Trump and European Commission president Ursula von der Leyen at his Turnberry golf resort in Scotland. 🎯 The deal marks a victory for Trump, who has spent months forcing America’s trading partners into bruising negotiations by threatening steep tariffs, although the terms are in line with what Brussels had told EU member states to prepare for. “This is probably the biggest deal ever reached in any capacity, trade or beyond trade,” Trump said as he announced the agreement. “Today’s deal creates certainty in uncertain times . . . for citizens and businesses on both sides of the Atlantic,” von der Leyen said, adding that the 15 per cent US tariff would apply to European cars, pharmaceuticals and semiconductors — important products for Brussels. 👍 Japan done, EU done, China closer to getting done with another 90 day tariff pause… If we can get Canada, Mexico, Australia & South Korea soon… 🚀 bullish Source: FT
In germany, hopes are high for a quick trade deal with the US ahead of next Friday’s deadline.
With a trade surplus of €69bn, Germany is even willing to accept an asymmetrical deal — one where European exports face a 15% US tariff, while American goods enter Europe duty-free. Source: HolgerZ, Bloomberg
