German inflation dips to cooler-than-expected 1.8% in July
Economists polled by Reuters had anticipated inflation to dip to 1.9%. July's reading compares to the 2% print recorded in June, which brought the German inflation rate in line with the European Central Bank's target.
The figures are harmonized across the euro zone to ensure comparability. Euro zone inflation data is due later this week, with the reading forecast to come in at 1.9%.
Inflation figures are being watched closely by economists and analysts as they assess the impact of U.S. President Donald Trump's tariff policy. Several sectoral tariffs, as well as temporarily reduced reciprocal duties have already been in effect in recent months.
Last week the European Union and U.S. came to an agreement that includes EU goods being hit with 15% tariffs. While the levies are widely expected to affect prices in the U.S., it is less clear if, and how, inflation elsewhere may be affected.
Thursday's inflation figures come just after Destatis on Wednesday published a preliminary reading of Germany's second-quarter gross domestic product. The economy shrank slightly by 0.1% in the period, marking a decline from the 0.3% growth recorded in the first quarter.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
an hour ago
- Yahoo
Foreign governments bet big to lobby Trump on tariffs. Most came up empty.
Countries across the globe have dropped tens of millions this year on lobbyists with ties to President Donald Trump as they rushed to stave off tariffs that could cripple their economies. In most cases, the spending has gotten them nowhere. As Trump has taken a scattershot approach to setting tariff rates — crafting trade agreements that set a 15 percent tariff on major trading partners while imposing rates that vary between 10 and 41 percent on the rest of the world — traditional lobbying tactics in Washington appear to have had little influence. At least 30 nations hired new lobbyists with connections to Trump since the election. They include major trading partners like South Korea and Japan as well as smaller countries like Bosnia and Ecuador. But employing those lobbyists appeared to bear little relation to whether the countries were able to avoid the most punishing tariffs. 'I think the current leadership in Washington seems to be disrupting the traditional way of doing things. It's not just about the business part, it's about diplomacy, it's about dealing with other nations,' said Mukesh Aghi, the CEO of the U.S. India Strategic Partnership Forum. 'I think the whole old model of trying to influence does not seem to work.' The new model is punishing India. After bringing longtime Trump adviser Jason Miller on board in April, the nation has nonetheless been walloped by Trump over the past two weeks. Tariffs for India are now set to rise to 50 percent, after the country failed to secure a trade agreement and Trump decided to jack up tariffs in response to its purchase of Russian oil. India inked a yearlong contract with Miller worth $1.8 million in exchange for 'strategic counsel, tactical planning and government relations assistance' as well as perception management and public relations, according to documents filed with the Justice Department. He did not respond to a request for comment. The experiences of Canada and Mexico stand out. Canada's provinces stocked up on lobbyists and the country has still been hammered by Trump. Mexico didn't and relied instead on President Claudia Sheinbaum's personal relationship with Trump — a direct approach that worked better. Five of Canada's 10 provinces brought on new lobbying or public relations help in the last year, amid a federal leadership vacuum as the country prepared to elect a new prime minister. Capitol Counsel lobbyists representing Ontario and Alberta set up meetings and calls for provincial officials with more than a dozen Republican members of Congress as well as Oklahoma Gov. Kevin Stitt. Meanwhile, lobbyists at HBW Resources worked to create inroads with Louisiana Gov. Jeff Landry on behalf of energy-heavy Saskatchewan and Alberta, DOJ filings show. In February, a federation of Canadian premiers and territorial leaders hired Checkmate Government Relations for assistance arranging a trade mission to Washington. The firm is led by Ches McDowell, a hunting buddy of Donald Trump Jr., and employs the son of Trump's 2024 campaign co-chair. For $85,000, Checkmate got the premiers a meeting at the White House with deputy chief of staff James Blair and director of presidential personnel Sergio Gor. Less than a month later, Canada's D.C. Embassy hired the public affairs firm Signal Group for a crash course and media training on messaging on right-wing media. It included a 'right-wing message analysis' of the Canadian ambassador's recent TV interviews and breakdown of Maslow's hierarchy of needs for the MAGA set. Mexico, by contrast, has just a single lobbying firm, Pillsbury Winthrop Shaw Pittman, on retainer, to provide legal services on trade issues. Yet despite Mexico playing a more direct role in the flow of fentanyl — a top concern of Trump — it was the neighbor to the north that ultimately faced steeper tariffs. Canada now has a 35 percent tariff on its goods, while Mexico has stayed at 25 percent, even though most products are exempt under an existing free trade agreement. Mexico appeared to benefit from what one Mexican official described as personal ties between Trump and Sheinbaum. A Republican lobbyist working on Trump's tariffs suggested that making headway with the president requires a shift in thinking. 'I think what's happened with some of these countries is they felt entitled to the status quo,' the lobbyist argued. 'And they were offended that anyone, even the U.S. president, would suggest changing it at all.' The lobbyist pointed to the success that Sheinbaum has had in wooing Trump. Instead of taking a combative stand, 'the better approach is to look at it from the perspective of: The president wants to redefine the trade relationship between the two countries, and that's his goal, and you have to deal with him on those terms,' the person said. Leader-to-leader calls were particularly valuable in helping countries make their case directly to Trump. 'From my perspective, the best way to lobby President Trump is for the leader to face-to-face lobby him,' Tami Overby, a partner at DGA Group Government who focuses on trade in South Korea. 'It seems President Trump, he always talks about his relationships with other leaders. You know, whether we're in a good spot with that country or not [depending] if he feels like he's got a good relationship. And he sees himself as a deal maker.' Many of the firms enlisted to represent foreign governments before the Trump administration are mainstays of the D.C. lobbying scene, and plenty of countries already had veteran trade lobbyists or lobbyists with ties to Trump on their payrolls before the election. They include Mercury Public Affairs, the former K Street home of White House chief of staff Susie Wiles which signed five new foreign governments since November, including South Korea, Ecuador and Libya. And while South Korea reached an agreement with the White House to set its tariffs to 15 percent in exchange for investments in the U.S. and lower trade barriers, tariff rates increased between April and August for both Ecuador and Libya. In Ecuador's case, it went from being ignored in Trump's first threats of 'reciprocal' tariffs, to facing a 15 percent tariff in August. Mercury also lobbies for the Japanese government, which maintains a roster of more than two dozen lobbying and public relations firms in the U.S. Japan was among the first major trading partners to strike a trade agreement — setting its tariffs at 15 percent, down from a threatened 25 percent. Ballard Partners, the previous home to Wiles and Attorney General Pam Bondi, helped broker a phone call between Trump and Prime Minister Shigeru Ishiba the day after the election, according to documents filed with DOJ under the Foreign Agents Registration Act. Another Trump-linked lobbying firm, BGR Group, has signed six new foreign governments since Trump's win last year. It previously employed Transportation Secretary Sean Duffy and is home to Trump adviser David Urban. Some of its foreign clients, like Angola and South Korea, saw their tariff rates drop between April and August. But the firm also lobbies for the Indian government, which paid BGR $300,000 from December through May, though much of that work was related to flaring tensions with Pakistan. Several Southeast Asian economies that have hired help in Washington fared better, with many of them receiving lower rates compared to the initial duties unveiled in April. Their wins were relative, though: The countries' tariff rates are higher than before, and broadly higher than much of the world. In other words, lobbyists might have succeeded in helping their clients avoid the worst case, but the outcomes could hardly be considered triumphs. Countries hired U.S.-based lobbying firms to strengthen ties with the Trump administration, and worked with business groups with ties to lower-level Trump administration officials across the Departments of Commerce and Treasury. Cambodia and Indonesia had their tariff cut to 19 percent, substantially lower compared to rates initially outlined by the president in April. DOJ filings show that Akin Gump Strauss Hauer & Feld reached out to U.S. Trade Representative's Office chief of staff Sam Mulopulos on behalf of the Cambodian government on the same day that Trump announced his so-called reciprocal tariffs. The firm sent Mulopulos multiple follow-up texts over the next few months to coordinate meetings with Cambodia's negotiators and check for updates on the status of tariff negotiations, and organized meetings on the Hill with lawmakers including Rep. Adrian Smith (R-Neb.), according to the filings. In the end, Cambodia saw one of the largest tariff rate declines of any country between April and May, dropping from a threatened 49 percent duty. The Trump administration for its part has portrayed the countries with the most significant declines as cooperative partners that were willing to make the greatest concessions to the president's terms. One former diplomat who worked with governments across Southeast Asia said representatives from Vietnam arranged more than two dozen meetings with government officials, which ramped up days after Trump outlined his April rates. The country secured a modest win as its tariff rate was cut from 46 to 20 percent — though the final figure remains higher than what Vietnam officials say was originally agreed to. One Asian diplomat credited lobbying efforts by countries in the region with helping shift the Trump administration away from its original trade strategy, which aimed to pull regional economies out of China's orbit and prioritize crackdowns on Chinese transshipment and other enforcement measures. 'Some countries need the access that lobbyists can give and an intermediary for backdoor and informal talks,' they said. A number of countries turned to first-time foreign lobbyists who are cashing in on their ties to Trump or his circle. The Pakistani government brought on seven new lobbying firms this year, including Trump's former bodyman Keith Schiller and George Sorial, the Trump Organization's former compliance chief. Neither of them had ever registered as foreign agents before, but Pakistan agreed to pay their firm $50,000 per month, according to a copy of the contract filed with DOJ. Islamabad managed to have its 'reciprocal' tariff rate lowered from 29 percent to 19 percent — a contrast to Pakistan's rival next door, India. Among the foreign governments that signed Continental Strategy this spring were Guyana — which is paying the firm $50,000 per month and saw its tariff rate plunge from 38 percent in April to 15 percent in August — and Japan, which is paying the firm $37,500, DOJ filings show. Continental Strategy is led by Carlos Trujillo, a diplomat who served in Trump's first administration, and Alberto Martinez, a top former aide to Secretary of State Marco Rubio. Some countries and industries that have been successful in swaying Trump have later had those advantages neutralized. The 'Big Three' American auto companies — Ford, General Motors and Stellantis — helped convince the administration to create a rebate program, aiding auto producers that rely on the North American supply chain. But as Trump set about crafting trade deals, that advantage was quickly neutralized. Japan, South Korea and the European Union — all trading partners with large auto industries — were able to secure a 15 percent tariff on cars and car parts, undermining the efforts of U.S. automakers to build domestically. Even after this week's tariff implementation kickoff, countries and lobbyists are still holding out hope that they can win exceptions or other helpful provisions. That possibility is sure to keep business booming on K Street, despite its lackluster performance. 'A lot of clients are like, 'Well, is it done? Can we still get our thing in there?'' the Republican lobbyist noted. 'The framework is there, but there's still a lot of blank spaces, and that's where we're seeing a lot of activity.
Yahoo
an hour ago
- Yahoo
Rupee logs worst losing streak in 6 months on US tariff woes; RBI caps damage
By Dharamraj Dhutia MUMBAI (Reuters) - The Indian rupee ended lower for a fifth straight week, its biggest consecutive weekly drop in six months, as trade tensions between India and the United States escalated following President Donald Trump's call for new tariffs on Indian goods. The rupee closed marginally higher at 87.6550 against the U.S. dollar, from 87.7025 on Thursday. The currency opened at 87.5600 and reached an intraday high of 87.5350, supported by unwinding of long dollar positions in the NDF market. Dollar bids, primarily from oil importers, pushed the USD/INR higher after initial lows, traders said. For the week, the rupee eased 0.1%, following a 1.2% drop last week, and has depreciated nearly 3% over the past five weeks. Rising pressure on the rupee was driven by India's position among the hardest-hit countries in Trump's trade offensive, including a new 25% tariff on Indian goods. The move places India alongside Brazil, facing the steepest import duties, unsettling markets concerned about the impact on capital flows and investor sentiment towards Indian assets. Fears of a record low in the currency prompted the Reserve Bank of India to intervene almost daily, preventing a deeper slide, traders said. The RBI resumed intervention in the NDF market to manage rupee volatility, four bankers told Reuters. Market participants expect another drop in foreign exchange reserves that saw a decline of more than $9 billion in week ended August 1, indicating intervention in the spot market. Meanwhile, some remain hopeful that a resolution would be achieved in coming period. Looking at the recent history, there is a high probability that the U.S. lowers tariffs in coming weeks or months and this could lead to a relief rally in Indian markets, as and when it happens, said Nishit Master, portfolio manager at Axis Securities PMS. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CNBC
an hour ago
- CNBC
In a pivotal week for tariffs, how Apple shined and drove the Nasdaq to new highs
The stock market bounced back this week. The S & P 500 on Friday rose above its July 28 record close but finished just shy of it. The Nasdaq did, however, finish at a new record closing high. It was a strong week dominated by tariff headlines and Apple's success in appeasing President Donald Trump with a big U.S. investment commitment. Club earnings were also on our radar. For the week, the S & P 500 gained 2.4%, and the Nasdaq advanced 3.9%. Apple stock led the way higher, surging more than 13% this week and turning in its third-best weekly performance in the past decade. It was our top stock, ending the week on a three-session winning streak that started Wednesday when Apple announced a $100 billion increase to the $500 billion it had already pledged to investing in the United States over the next four years. As part of that investment, Apple will fund a $2.5 billion expansion of iPhone and Apple Watch glass maker Corning . Apple is also investing in U.S. semiconductor manufacturing capacity. As a result of the commitment, Trump said that Apple will be exempt from the 100% tariff he announced Wednesday on semiconductor imports. The president said, "If you're building in the United States of America, there's no charge." While a temporary electronics exemption from earlier this year keeps Apple safe from the worst of the "reciprocal" tariffs that went into effect Thursday, there is no telling how long that exemption will last. So, it's great that Cook managed to get back into Trump's good graces, and the stock move this week reflects that. Apple shares, however, have been struggling and were still down more than 8% year to date. With Trump off its back for now, the company must seize the opportunity to remove the other concerns about its stock by clarifying its artificial intelligence strategy and shoring up threats to its high-margin services business. AAPL YTD mountain Apple YTD Also, this week, Trump announced a 25% increase on India's tariff rate due to Russian oil purchases. It's set to go into effect on Aug. 27, which would bring the levy rate on India up to 50%. We'll have to see where that shakes out as India is where Apple manufactures the iPhones it plans to sell in the U.S. The rest of the world will get iPhones made in China, which is still talking to the U.S. about a trade truce. Trump told CNBC on Tuesday that he's looking to implement a "small tariff" on pharmaceuticals, but the rate will increase over time. He said that a level as high as 250% is not out of the question. That news was no picnic for drug stocks, which are already under pressure from the president to cut prescription prices. As if that weren't enough, Eli Lilly stock took another leg down as strong earnings Thursday were overshadowed by lackluster weight loss results from the company's phase three trial looking at the effects of its obesity pill, orforglipron. The trial data forced us to downgrade shares to our looking-for-a-level-to-sell 3 rating and cut our price target. Lilly shares suffered a weekly loss nearly 18%, the worst week since October 2008. The Club stock was our bottom performer for the week. Within the Club portfolio this week, we also heard from five others, including DuPont , which reported a beat and raise quarter with strong cash flow results. The stock reaction did not, in our view, reflect the strength, so we reiterated our buy-equivalent 1 rating, upped our price target, and stepped in to pick up 100 more shares. DuPont stock rose less than 1% this week. Coterra Energy released largely positive results, driven by higher-than-expected total production. However, strong as the execution by management is, Jim Cramer said, "You can't outrun your commodity, not if both commodities you're in are bad," prompting us to reiterate our 3 rating and trim our price target. Coterra shares gained nearly 1.4% on the week. Eaton reported a beat-and-raise quarter. However, investors took issue with management's third-quarter outlook and 2025 profit guidance. The midpoint of full year adjusted earnings per share guidance was raised, management shaved a little off the top end. Nonetheless, we saw a lot to like beyond the third quarter and, therefore, raised our Eaton price target and upgraded shares back to a 1 rating. Eaton stock lost nearly 4.9% this week. Disney's quarter wasn't the cleanest, but we saw strength in all the right places. While sales missed, earnings beat. We also saw operating income beats in streaming, sports, and experiences. As a result, we upgraded shares back to a 1 rating and raised our price target. Disney shares lost more than 3.5% on the week. Texas Roadhouse reported mixed results. Sales outpaced expectations; however, profitability took a hit due to elevated beef prices. The restaurant chain operator delivered strong comparable sales and said the ongoing third quarter was off to a great start. With demand clearly strong but profitability coming under pressure, we opted to maintain our 2 rating. Texas Roadhouse stock lost 5.5% this week. According to FactSet, 90% of S & P 500 companies have now reported second-quarter results, and 81% of them have posted upside surprises for both sales and earnings. The data provider said, "Both the percentage of S & P 500 companies reporting positive earnings surprises and the magnitude of earnings surprises are above their 10-year averages." The report also noted that, versus the year-ago period, nine S & P 500 sectors have reported earnings growth, led by communication services, information technology, and financials, while the other two, energy and materials, have reported year-over-year declines. Dow stock Cisco Systems , our newest name, is the only portfolio company reporting earnings next week. (See here for a full list of the stocks in Jim Cramer's Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
