Stocks mostly rise on EU-US trade deal hopes
LONDON (AFP)Stock markets mostly extended gains Thursday as optimism grew that the European Union could soon strike a trade deal with the United States, following the Japan-US agreement.Investors have benefitted in recent weeks from bets that governments will eventually hammer out pacts with Donald Trump ahead of the US president's August 1 deadline to avoid steeper levies."The positive sentiment generated by the trade deal agreed between the US and Japan continued to permeate the markets," said AJ Bell investment director, Russ Mould.This was boosted further by "optimism surrounding trade talks between the US and EU," said Joshua Mahony, chief market analyst at Rostro trading group. London's FTSE 100 gained almost one percent, lifted also by a stream of robust earnings, including from consumer goods group Reckitt, mobile phone giant Vodafone and Lloyds Bank. Frankfurt rose, along with most other European stocks, as the European Union and Washington appeared close to a deal that would set a baseline 15-percent levy on EU goods, down from a threatened 30 percent.A European Commission spokesman said Thursday that he believed a trade deal with the United States is "within reach."According to multiple diplomats, the deal could waive tariffs on aircraft, lumber, pharmaceutical products, and agricultural goods.The bloc, however, is still forging ahead with contingency plans in case talks fail, with member states approving a 93-billion-euro package of counter-tariffs on US goods.After opening higher, Paris slipped in midday trading, dragged down by a drop in luxury stocks and disappointing earnings from fossil fuel giant TotalEnergies and chipmaker STMicroelectronics, which plunged 10 percent.Later on Thursday, the European Central Bank is expected to leave interest rates unchanged as higher US tariffs hang in the balance.In Asia, stocks advanced following another record day for the S&P 500 and Nasdaq on Wall Street on Wednesday.Tokyo added more than one percent, building on a more than three percent surge on Wednesday on the back of the Japan-US trade deal.Hong Kong and Shanghai also advanced.Traders kept an eye on Tokyo after Japanese Prime Minister Shigeru Ishiba denied discussing his resignation with party elders on Wednesday, as speculation about his future intensified following a weekend election debacle.Banking stocks gained in Europe after a flurry of earnings reports were received well by the market. Deutsche Bank posted its highest second-quarter profit since 2007, which sent its shares surging more than seven percent in Frankfurt.
French banking giant BNP Paribas announced a record annual profit for 2025, and UK bank Lloyds reported a rise in first-half net profit.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Dubai Eye
26 minutes ago
- Dubai Eye
Tesla approves share award worth $29 billion to CEO Elon Musk
Tesla has granted CEO Elon Musk shares worth about $29 billion, in a new pay deal aimed at keeping the billionaire entrepreneur at the helm during a crucial pivot from its struggling core auto business to robotaxis and humanoid robots. The company described the grant of the 96 million new shares as a first step, "good faith" payment to honour Musk's more than $50 billion pay package from 2018 that was struck down by a Delaware court last year. A longer-term CEO compensation plan will be put to a vote at its annual investor meeting on November 6. The Delaware ruling had cited flaws in the board's approval process and unfairness to investors. Musk kicked off an appeal against the order in March, claiming a lower court judge made multiple legal errors in rescinding the record compensation. The world's most valuable automaker is at a turning point, with Musk, its largest shareholder with a 13 per cent stake, positioning it more as an AI and robotics company amid falling sales in its mainstay auto business and a slump in its share price. The share award is designed to gradually boost Musk's voting power, something he and shareholders have consistently insisted was key to keeping him focused on Tesla's mission, said a special committee Tesla formed earlier this year to consider Musk's compensation. It consists of chair Robyn Denholm and independent director Kathleen Wilson-Thompson. "While we recognise Elon's business ventures, interests and other potential demands on his time and attention are extensive and wide-ranging... we are confident this award will incentivise Elon to remain at Tesla," the committee said in Monday's filing. The new shares vest only if Musk remains in a key executive role through 2027. They also have a five-year holding period, except to cover tax payments or the purchase price of $23.34 per share, which is equal to the exercise price of the 2018 award. If the Delaware courts fully reinstate the 2018 CEO Performance Award, the new interim grant will either be forfeited or offset and there will be no "double dip," according to the filing with the Securities and Exchange Commission. "This is simply a repackaged version of what was done years ago and was ruled improper by a judge," said Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware. "It renders the Delaware court decision effectively meaningless," said Elson, who had filed amicus briefs supporting the Delaware Court's decision to void Musk's 2018 award. AUTO BUSINESS STRUGGLES Gary Black, a longtime Tesla investor who sold his position recently, said on X the award should be viewed "very favourably" for the company as it aligns Musk's incentives with the shareholders and removes uncertainty about him leaving. Tesla shares rose more than 2 per cent in premarket trading. They have gained almost 2,000 per cent in the past decade, far outperforming the around 200 per cent increase in the benchmark S&P 500 index. But the stock has come under pressure this year, losing about a quarter of its value as Tesla grapples with a sales decline wrought by its aging vehicle line-up, tough competition and Musk's political stances that have alienated some buyers. The challenges have been worsened by US government cuts in support for EVs. Musk said at a post-earnings call last month the waning subsidies could lead to a "few rough quarters" before a wave of revenue from self-driving software and services begins late next year. Analysts expect Tesla to post another annual sales decline in 2025 after its first one last year. S&P Global Mobility data shared exclusively with Reuters showed on Monday that Tesla's brand loyalty had plunged since Musk endorsed US President Donald Trump last summer. The world's most powerful person and its richest had a falling out earlier this year. And Musk has raised fears about whether he will be able to devote enough time and attention to Tesla after he locked horns with Trump by forming a new political party. The company also faces a long regulatory road to its robotaxi bet. It started a small trial of its robotaxis in Austin, Texas, in June with about a dozen Model Y SUVs. But it lacks permits to offer the service in California, where it last week launched a ride-hailing service in the San Francisco Bay Area without indicating whether it would be using self-driving vehicles that power its Austin operations.
Dubai Eye
26 minutes ago
- Dubai Eye
Dubai Duty Free achieves record July sales surpassing AED638 million
Dubai Duty Free has delivered another standout performance for the month of July, posting sales of AED638.8 million ($175 million) and marking 5.86 per cent up on the same period last year. It surpasses the previous July record of AED602.8 million ($165 million) set in 2023 and is 9.7 per cent higher than July 2024. This places July 2025 in the ninth place amongst the Top 10 months in Dubai Duty Free's history. The year-to-date growth of 5.86 per cent is particularly notable given that passenger growth for the same period is expected to be less than 3 per cent. Speaking to Dubai Eye 103.8's Business Breakfast show, Ramesh Cidambi, Managing Director of Dubai Duty Free, said "achieving nearly 10 per cent sales growth in a month when we estimate passenger traffic remained relatively flat is a testament to our team's dedication and product offering". "This outstanding performance reflects the resilience of our retail operation and the continued demand for world-class shopping experiences," he added. Perfume, gold and confectionery were among the top five product categories in July, with confectionery marking an incredible 57 per cent increase over the same month last year, with perfume sales rising by 10.3 per cent and gold up by 15.5 per cent. Other notable performers were watches with sales increase of 18.4 per cent and precious jewellery with an increase of 16.8 per cent. July's sales surge was fuelled in part by a growing appetite for iconic luxury brands. Flagship brands such as Chanel, Louis Vuitton and Cartier were standout performers, reflecting sustained demand for high-end fashion and accessories at DXB. Dubai Duty Free's CA and CB Fashion Boutiques marked a 11.36 per cent growth over the same period last year. "Given the recent media reports outlining the difficulties facing global luxury brands, we are happy to buck that trend in our luxury Boutiques, where we are seeing continued demand for select brands," added Cidambi. DDF's pre-loved luxury boutique, REKLAIM, launched in December 2024, also showed growing momentum. It generated AED1.6 million ($445K) in sales in July alone. The stand-out performer was Rolex watches, with a total of 16 sold in July alone.
Crypto Insight
29 minutes ago
- Crypto Insight
Citigroup, JP Morgan, Goldman Sachs lead TradFi's blockchain charge: Ripple
Citigroup, JPMorgan Chase, Goldman Sachs and Japan's SBI Group have emerged as the most active players in traditional finance backing blockchain startups, according to a new report by Ripple in partnership with CB Insights and the UK Centre for Blockchain Technologies. Between 2020 and 2024, global banks participated in 345 investments in blockchain companies, most of them in early-stage funding rounds, per the report. Citigroup and Goldman Sachs led the pack with 18 deals each, while JP Morgan and Mitsubishi UFJ followed closely with 15 investments. Mega-rounds, deals worth $100 million or more, were a key focus. Banks contributed to 33 such rounds during the four-year window, pouring capital into firms focused on trading infrastructure, tokenization, custody, and payment solutions. Notable examples include CloudWalk in Brazil, which raised over $750 million across two rounds backed by Banco Itaú and others. Likewise, Solaris in Germany secured over $100 million from SBI Group and later became a majority acquisition target. G-SIBs back blockchain with 100+ deals Global Systemically Important Banks (G-SIBs), a group of financial institutions with such significant economic weight that their failure could trigger global financial instability, accounted for 106 deals, including 14 mega-rounds valued at over $100 million each. US and Japanese institutions led in deal volume, but Singapore, France, and the UK were also active. In total, over $100 billion was poured into blockchain startups between 2020 and 2024 across more than 10,000 deals globally. Ripple's survey of over 1,800 global finance leaders also found that 90% believe blockchain and digital assets will have a 'significant or massive' impact on the industry within three years. The momentum is also supported by regulatory developments, including the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act, in the US and Markets in Crypto-Assets (MiCA) in the EU, both of which provide a clearer framework for digital asset operations. Banks back stablecoins, tokenization next Backing the investment trend is soaring demand for real-world blockchain applications. According to a Citi report, stablecoin volumes hit $650–$700 billion per month in Q1 2025, and more banks are launching their own stablecoins to offer programmable money without exposure to volatility. Looking ahead, tokenization is expected to be a defining trend. Boston Consulting Group and Ripple estimate that tokenized real-world assets could exceed $18 trillion by 2033, with a compound annual growth rate of 53%. Source:
