Europe Ditching U.S. Cloud Giants Microsoft (MSFT) and Google (GOOGL) in Anti-Trump Backlash
Stay Ahead of the Market:
Discover outperforming stocks and invest smarter with Top Smart Score Stocks.
Filter, analyze, and streamline your search for investment opportunities using Tipranks' Stock Screener.
Europe Rethinking Cloud Choices
As reported by Reuters, Benjamin Revcolevschi, chief executive of OVHCloud said global trade tensions are making European companies rethink their choice of cloud provider from a more strategic perspective.
This is in reference to President Donald Trump's tariff strategy which includes huge hikes on EU imports to the U.S. but also what is being perceived as his lukewarm attitude to the continent. He has decried the EU, thundering that it was established to 'screw the U.S.,' as well as undermining its support for Ukraine in the war with Russia and worrying politicians and military leaders about its commitment to NATO.
'In the current geopolitical context, we are seeing a shift in the concerns of private companies and public organizations in Europe. Questions of strategic autonomy are now on CEOs' agendas,' Revcolevschi said. 'The choice of a cloud provider is no longer just a technical matter, but also a strategic issue.'
U.S. Tech Vulnerability
OVHCloud is a data center provider operating 43 facilities across four continents and is clearly a rival of the U.S. tech stalwarts. It is natural that it would look to raise concerns to tempt more companies, intent on using data centers and cloud computing to power the AI revolution, to use its tech instead.
But it does show how vulnerable previously dominant U.S. tech firms are to the current political environment and the push towards more strategic and digital independence in Europe. That can be seen in the number of antitrust cases being launched in Europe against U.S. tech and more calls for the development of European tech to keep pace and compete.
The news did little to damage U.S. tech stocks with MSFT up 0.75% in pre-market trading, GOOGL up over 1% and Amazon up 1.2%.
What are the Best AI Stocks to Buy?
We have rounded up the best AI stocks to invest in using our TipRanks Comparison tool.
Disclaimer & Disclosure Report an Issue
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Global News
18 minutes ago
- Global News
Trump alleges U.S. banks discriminate against conservatives, orders probe
U.S. President Donald Trump on Thursday signed an executive order mandating a probe into whether banks have discriminated against conservatives and certain industries like gun manufacturers and cryptocurrency companies, invoking the vast powers to go after entities that the Republican president alleges have discriminated against him and his allies. The executive order deals with an issue known as 'debanking,' which is when banks close accounts of individuals or declines to go into business with certain industries. Trump has accused JPMorgan and Bank of America of debanking him and his companies in the past, something both banks have denied. Trump ordered federal bank regulators to make sure banks do not discriminate against individuals or companies for their political or religious beliefs. He also ordered bank regulators to probe when banks may have allegedly discriminated and refer the cases to the Department of Justice. The move could open banks to potential civil or criminal investigations, fines or punishments. Story continues below advertisement 2:05 Trump signs executive order to halt federal funding to NPR, PBS When Trump and his party discuss debanking, they typically refer to banks closing the accounts of a person or company when they no longer want to do business with them. Banks usually say they close accounts or deny loans because the person or business is deemed too risky. The banking industry has long argued that it has a constitutional right to choose whom they go into business with, if it does not violate laws like the Equal Credit Opportunity Act. Get breaking National news For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen. Sign up for breaking National newsletter Sign Up By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy The act, which was part of several pieces of legislation signed during the Civil Rights Movement, bans banks from discrimination based on race, ethnicity, religion, sex and other protected statuses. Another type of debanking is when government regulators tell banks to avoid doing business with industries or individuals. Democratic President Barack Obama's Department of Justice told banks to avoid doing business with 'high risk' industries, which included payday lenders and firearms manufacturers. Story continues below advertisement This type of government-directed debanking is also known as reputational risk, where the historic reputation of an industry prompts banks to be more careful about banking and lending. Historic examples include entities who did business in high-risk countries, did business largely in cash or were repeatedly flagged by bank regulators. 1:48 Trump to target 'anti-Christian' bias with new White House faith office Conservatives have argued that reputational risk has become an umbrella term that allows banks to discriminate. The banking industry insists it does not actively debank and does not target specific industries or individuals. Banks have already been removing any mention of reputational risk from their policies and procedures, particularly since Trump returned to the White House. 'We don't close accounts for political reasons, and we agree with President Trump that regulatory change is desperately needed,' said a spokeswoman for JPMorgan Chase. The Obama administration's government-directed debanking has been a rallying cry for conservatives. It's one reason why the cryptocurrency industry backed Trump in 2024. While the Biden administration did not explicitly force banks to debank the crypto industry, Democratic President Joe Biden's bank regulators did express some public concern about it, a move that was read by banks as a reason to steer away from crypto. That phrasing by the Biden administration was often referred to as 'Operation Choke Point 2.0' by Trump and his allies. Story continues below advertisement Republicans have introduced legislation to cut down on alleged acts of debanking as well. Sen. Tim Scott of South Carolina, chair of the Senate Banking Committee, has introduced legislation that would require bank regulators to no longer consider reputational risk as a factor in how they measure a bank's health and risk profile.
CTV News
41 minutes ago
- CTV News
Carney says he's focused on building up Canada as Trump's global trade war escalates
Prime Minister Mark Carney speaks with media during a news conference in Ottawa. THE CANADIAN PRESS/Adrian Wyld Prime Minister Mark Carney said Thursday Canadians are focused on building up their economy after U.S. President Donald Trump again hit nations around the world with increased tariffs -- days after slapping Canada with a higher duty. Carney said there is a lot to do in Canada and his government is focused on 'what we can control.' 'Yes we are having discussions with the Americans but Canadians want us to focus here at home,' the prime minister told reporters in Ottawa. Trump escalated his trade war last week by hitting Canada with a baseline 35 per cent tariff that applies only to goods not covered by the Canada-United States-Mexico Agreement on trade, better known as CUSMA. Just after midnight on Thursday, U.S. tariffs on goods from more than 60 other nations and the European Union were increased. The duties range from a low of 10 per cent to 50 per cent for Brazil. 'BILLIONS OF DOLLARS IN TARIFFS ARE NOW FLOWING INTO THE UNITED STATES OF AMERICA!' Trump posted on social media just after the duties took effect. The EU, Japan and South Korea -- which have brokered trade agreement frameworks with the Trump administration -- saw U.S. tariffs increase to 15 per cent. Bangladesh and Vietnam were hit with 20 per cent duties. Switzerland saw its tariff increase to 39 per cent. Nations are also being hit with Trump's separate tariffs on steel, aluminum, copper and automobiles. American tariffs are now at a level not seen in the U.S. in almost a century. The Budget Lab at Yale, a non-partisan policy research centre, has said Americans will see an average tax of 18.3 per cent on imported products, the highest rate since 1934. Ontario Premier Doug Ford told media outlet CNN on Wednesday that 'a tariff on Canada is a tax on the American people.' 'This is hurting the American people,' Ford said, adding that Canada and other countries are 'diversifying our trade.' When asked how Canadians view Trump, Ford said he's 'probably the most disliked politician in the world in Canada because he's attacked his closest family member, and that's the way we look on it.' 'And when I talk to the governors, senators and congresspeople, even Republicans totally disagree, but they're too scared to come out and say anything because the president will go after them,' he added. Signs are emerging that Trump's tariffs are starting to drag down the American economy. After the release of a bleak jobs report last week, Trump fired the head of the agency that produces the monthly figures. The U.S. Commerce Department said inflation was ticking slightly upward in June. The greatest hurdle facing Trump's ongoing efforts to realign global trade may be the courts. Last week, Trump's use of a national security statute for the so-called 'Liberation Day' duties and fentanyl-related tariffs faced tough questions from federal appellate judges in the U.S. Court of Appeals for the Federal Circuit. The judges asked the Trump administration's lawyer about the president's use of the International Economic Emergency Powers Act of 1977 to impose duties -- despite the fact that the word 'tariff' is found nowhere in the statute. No decision was issued from the bench last week but the pending ruling was clearly weighing on the president just before his global tariffs came into place. 'THE ONLY THING THAT CAN STOP AMERICA'S GREATNESS WOULD BE A RADICAL LEFT COURT THAT WANTS TO SEE OUR COUNTRY FAIL!' Trump posted on social media just before midnight. Conservative Leader Pierre Poilievre said Thursday that Canada should maintain targeted tariffs to pressure the Americans to 'restore a true free-trading relationship.' 'We need to narrowly target our counter-tariffs at things that maximize the impact on the Americans while minimizing impact on Canadians,' he told a press conference in Calgary. Carney told reporters earlier this week that he might lift some counter-tariffs if that helps Canada in the ongoing trade dispute. The Liberal government's approach has divided the premiers. Ford has said Ottawa should hit back hard with counter-tariffs, while Saskatchewan Premier Scott Moe has called for easing retaliatory measures. Poilievre slammed Carney for failing to get a deal by Trump's Aug. 1 deadline. 'He has made concession after concession to President Trump. He's been bending over backwards for the president and so far has gotten nothing in return,' he said. The Conservative leader pledged to introduce a bill in Parliament this fall to repeal a list of laws he said are blocking production and development. Poilievre will first have to win a seat in the House of Commons in an Aug. 18 byelection. By Kelly Geraldine Malone. With files from Alessia Passafiume, Sarah Ritchie and The Associated Press.
Canada News.Net
an hour ago
- Canada News.Net
U.S. stock markets sputter but techs eke out decent gain
NEW YORK, New York - U.S. stocks fell Thursday, a day after recording strong gains. It has been a volatile week for U.S. stock markets as sentiment has shifted from positive to negative on a daily basis., particularl;y this week as President Donald Trump's new tariff world took shape, although he is still hiking new tariffs on selected goods and countries. "There's a lot to digest around tariffs and trade right now, and usually when you see a lot of complication around a macro environment that's not immediately negative to the economy or profits, the market … puts it to the side," Anthony Saglimbene, Ameriprise chief market strategist told CNBC Thursday. "The market is just kind of concentrating on what it can discount right now, which is still a firm economic backdrop and strong earnings." The firm economic backdrop took a slight dent on Thursday with the latest jobless claim figures. "In the week ending August 2, the advance figure for seasonally adjusted initial claims was 226,000, an increase of 7,000 from the previous week's revised level. The previous week's level was revised up by 1,000 from 218,000 to 219,000. The 4-week moving average was 220,750, a decrease of 500 from the previous week's revised average. The pre vious week's average was revised up by 250 from 221,000 to 221,250," the U.S. Department of Labor reported Thursday. U.S. Stocks Mixed as Tech Lifts Nasdaq While Dow, S&P 500 Dip In the end, Wall Street delivered a split performance on Thursday, with the Nasdaq Composite notching gains on tech strength while the Dow and S&P 500 edged lower amid lingering economic uncertainty. Key Index Performances Standard and Poor's 500: The benchmark index slipped 5.06 points, or 0.08 percent, to close at 6,340.00, with trading volume reaching 3.104 billion shares. Dow Jones Industrial Average: The blue-chip gauge fell 224.48 points, or 0.51 percent, to 43,968.64, as losses in financial and industrial stocks weighed. Volume totaled 487.791 million shares. NASDAQ Composite: Outperforming its peers, the tech-heavy index climbed 73.27 points, or 0.35 percent, to 21,242.70, buoyed by gains in megacap tech stocks. Volume hit 7.87 billion shares. Market Drivers The Nasdaq's resilience reflected investor optimism around artificial intelligence and semiconductor stocks, while the Dow's drop signaled caution ahead of Friday's key U.S. jobs report. Mixed economic data—including softer-than-expected services sector activity—kept broader market gains in check. On Foreign Exchange Markets Thursday, Pound and Commodity Currencies Gain, Euro Slips The U.S. dollar showed mixed performance in foreign exchange markets on Thursday, with gains against the euro and the yen but losses against the British pound and some commodity-linked currencies. Key Moves in Major Currency Pairs EUR/USD (Euro / US Dollar): The euro weakened slightly, falling 0.08 percent to 1.1649, as traders weighed European economic data. USD/JPY (US Dollar / Japanese Yen): The dollar dipped 0.14 percent against the yen, trading at 147.14, as markets remained cautious ahead of key Japanese inflation figures. GBP/USD (British Pound / US Dollar): Sterling was a standout performer, jumping 0.64 percent to 1.3432, supported by a 25 basis points clip in official interest rates by the Bank of England, in a 5 to 4 vote. . USD/CAD (US Dollar / Canadian Dollar): The greenback edged up 0.08 percent to 1.3750. USD/CHF (US Dollar / Swiss Franc): The dollar gained 0.11 percent against the Swiss franc, reaching 0.8066, as risk sentiment improved slightly. Commodity Currencies Strengthen The Australian and New Zealand dollars both advanced, with: AUD/USD (Australian Dollar / US Dollar) rising 0.16 percent to 0.6512. NZD/USD (New Zealand Dollar / US Dollar) climbing 0.48 percent to 0.5953, its highest level in over a week. Market Outlook Analysts attributed the dollar's mixed performance to shifting expectations on interest rate policies, with the Federal Reserve maintaining a cautious stance while other central banks signal potential shifts. The pound's rally reflected renewed confidence in the UK economy, while the euro remained under pressure amid concerns over Eurozone growth. World Focus: European stock markets surge, Asian stocks edge up, on Thursday Global stock markets delivered a mixed performance on Thursday, with some indices posting gains while others retreated amid varying economic signals. North of the U.S. border, Canada's S&P/TSX Composite declined 159.60 points, or 0.57 percent, to 27,761.27, with energy and materials stocks dragging the index lower. Trading volume reached 220.113 million shares. In Europe, the DAX (Germany) surged 268.14 points, or 1.12 percent, closing at 24,192.50, leading regional gains. France's CAC 40 rose 74.29 points, or 0.97 percent, to 7,709.32, while the EURO STOXX 50 climbed 68.78 points, or 1.31 percent, settling at 5,332.07. The BEL 20 (Belgium) also saw strength, adding 54.11 points, or 1.16 percent, to 4,711.34. However, the UK's FTSE 100 bucked the trend, slipping 63.54 points, or 0.69 percent, to 9,100.77. In Asia, Taiwan's TWSE Index was the standout performer, soaring 556.41 points, or 2.37 percent, to 24,003.77. South Korea's KOSPI advanced 29.54 points, or 0.92 percent, to 3,227.68, while in Hong Kong, the Hang Seng gained 171.00 points, or 0.69 percent, closing at 25,081.63. Singapore's STI Index rose 30.45 points, or 0.72 percent, to 4,258.15. In Japan the Nikkei 225 edged up 264.29 points, or 0.65 percent, to 41,059.15, while China's Shanghai Composite inched higher by 5.67 points, or 0.16 percent, to 3,639.67. However, in Indonesia, the IDX Composite dipped 13.57 points, or 0.18 percent, to 7,490.18. Elsewhere, India's S&P BSE Sensex rose 79.27 points, or 0.10 percent, to 80,623.26, while Malaysia's KLSE gained 7.63 points, or 0.49 percent, to 1,549.11. In the Oceania region, Australia's S&P/ASX 200 declined 12.30 points, or 0.14 percent, to 8,831.40, while the All Ordinaries slipped 9.10 points, or 0.10 percent, to 9,102.00. In New Zealand the NZX 50 saw marginal gains, adding 6.94 points, or 0.05 percent, to 12,887.10. In the Middle EastEgypt'sEGX 30jumped329.20 points, or0.93 percent, to35,809.40,. Israel'sTA125saw a modest increase of2.35 points, or0.08 percent, closing at2,978.76.
