EU-UAE deal could lead to broader Gulf FTAs : ING
Carsten Brzeski, Global Head of Macro from ING Bank, joins CNBC's Dan Murphy to discuss the EU-UAE trade talks, and the effects on the gulf region.
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Trump tariffs deals major blow to European steelmakers, Salzgitter CEO warns
By Tom Käckenhoff and Christoph Steitz DUESSELDORF/FRANKFURT (Reuters) -Salzgitter, Germany's second-biggest steelmaker, on Monday warned that Washington's tariff policy was dealing a severe blow to European industry, after the U.S. administration unveiled plans to double steel import levies to 50%. According to Germany's steel association, the United States accounted for around a fifth, or 4 million tonnes, of European steel exports outside of the EU, making it the sector's most important export market. "The erratic tariff policy of the USA is hitting Europe's economy hard - especially Germany," Salzgitter CEO Gunnar Groebler said in a statement. Groebler said that apart from the direct tariffs on exports to the United States, there was also increased import pressure on the EU market as a result of rising volumes of cheaper Asian steel in Europe. Asian steel has been flooding the European market for years and the fear of that trend intensifying due to the U.S. tariffs has been the biggest headache for Europe's sector, in addition to high energy prices. In response to those fears, the EU on April 1 tightened steel import quotas to reduce inflows by a further 15% as part of its so-called European Steel and Metals Action Plan. Shares in Salzgitter fell along with larger European peers Thyssenkrupp and ArcelorMittal, all down between 0.6 and 1.8%. Just 4.5% of Salzgitter's sales come from its U.S. business, with its non-steel technology division accounting for half of that. Thyssenkrupp has previously said that the United States accounts for less than 5% of its steel exports. Thyssenkrupp did not immediately respond to a request for comment. "An increase in steel import duties in the USA to 50% should prompt the EU Commission to accelerate its efforts to implement the measures under the Steel and Metals Action Plan," Groebler said. 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
29 minutes ago
- CNBC
As the TACO trade goes viral, another is gaining traction: 'Anywhere But The USA'
Seesawing trade policies , proposed foreign capital taxes and concerns over U.S. fiscal spending have propelled some investors to "Sell America" and given rise to a new trade: "Anywhere But the USA." Market participants have been scrambling to keep up with flip-flopping White House tariffs policy, a dollar selloff , a sharp rise in U.S. Treasury yields and volatile Wall Street stocks . It comes after the TACO — or "Trump Always Chickens Out" — trade ruffled feathers last week, as investors bet that U.S. President Donald Trump will ease or postpone steep tariffs despite threats to the contrary. Now, market participants say the hot trade is "Anywhere But the USA" — or ABUSA — amid what investment manager Ninety One's Alan Siow signaled was a "comfortable consensus" that U.S. exceptionalism was beginning to fade. "The 'Anywhere But USA' trade isn't contrarian — it's a recalibration toward global balance, cyclical recovery, and multi-polar growth," Siow, co-head of emerging market corporate debt, told CNBC. Over the past decade, he added, a widespread preference for U.S. assets had been "underpinned by secular strength in the [U.S. dollar] as a base currency." But confidence in the greenback has wavered in recent weeks. The U.S. dollar index has shed more than 8% since the beginning of the year, with the dollar now on course for its fifth consecutive month of losses . "Against a backdrop of mounting fiscal imbalances, the recent spike in policy volatility and resulting geopolitical polarization have caused U.S. market dominance to lose some of its luster," Siow explained. "At the same time, other global market destinations — [like emerging markets], Europe, Japan — offer improving fundamentals, attractive risk/reward profiles and are broadly under-owned." He added that he was advising investors to consider whether index-beating returns are now more likely to come from global diversification than from continued U.S. concentration. Rami Cassis, founder of London's Parabellum Investments, told CNBC by phone that he was seeing a shift in attitude toward investing in the U.S. — but that this went deeper than simply seeking out the biggest returns. "I'm seeing a lot of, not quite animosity, but I can't think of a better word for it," he explained. "I think it's quite specific to the current administration. I think the capital flows out of the U.S. are driven by the apparent unpredictability of the current administration, [but] I think it's supported by ideology." Tariffs, Trump's approach to the war in Ukraine war , perceptions around the administration's stance on LGBT rights and other controversial policies were influencing some people's decisions about putting money in America, Cassis told CNBC. "It's become quite emotive," he added. "Nobody wants to invest in an environment where the government might change its mind overnight. [And] what would ordinarily be a purely objective and rational commercial decision, is now being supported by a level of emotion that's been introduced by some of the behaviors and policies that have come out of the current administration." Trump's policies have sparked international consumer boycotts of American products and a fall in global travelers to the United States. David Rosenstrock, director of financial planning and investments at New York-based Wharton Wealth Planning, told CNBC by email that he was seeing demand from clients to allocate their assets beyond the United States. The shift is "partly driven by concerns over market volatility in the U.S., uncertainty regarding trade and other policies, interest rates, and relatively weaker performance compared to global counterparts," he added. Where are the opportunities beyond Wall Street? Rosenstrock said his clients were considering diversifying to markets including Europe, emerging markets, and specific countries such as Japan and India. But he cautioned that the trend could stall or reverse in the future. "U.S. stocks have become more attractive to international investors as the U.S. dollar has weakened," he said. "As a result, for international investors, the cost of purchasing U.S. stocks in their local currency has decreased in some instances by as much as 10%." Parabellum's Cassis told CNBC that, "Europe, for the first time in a long time, might be a proper destination" for investment. European stocks have seen broad gains this year, amid broadly falling inflation , a historic shift on fiscal spending in Germany, and a commitment to ramp up defense spending across the region. The pan-European Stoxx 600 index has gained around 7.7% since the beginning of the year, while the euro has so far gained over 10% against the dollar in 2025. Meanwhile, the European Stoxx Aerospace and Defense index has soared by almost 50% this year, with bullish sentiment rising after the EU pledged to mobilize as much as 800 billion euros to invest in regional security. Chris Clement, senior portfolio manager at BRI Wealth Management, agreed that Europe-based investment alternatives to the U.S. were now looking more attractive. "European and U.K. equity markets trade at significant discounts to the U.S. and are now having the spotlight shone upon them," he said. "Another alternative for safe-haven assets might be the gilt market." Long-dated U.K. government bonds, known as gilts, logged major sell-offs earlier this year, which some traders labeled as a "nice opportunity ." Emerging markets Beyond Europe, the spotlight is back on emerging markets. Parabellum's Cassis noted that, for those considering allocating funds to the region, India looked attractive. "There's been a lot of economic activity and policies around trying to encourage foreign capital," Cassis told CNBC. "I think India is very likely a destination of some of the [diversifying] funds, depending on the investor's risk [tolerance]." The world's fifth-largest economy expanded by a hotter-than-expected 7.4% in the March quarter. Brian Mangwiro, managing director at Barings, also noted the increasing strength of emerging market investments. "We particularly see value in EM debt, sovereigns and corporates, and flows are starting to reflect this view," he said."The asset class also tends to perform well in a weak U.S. dollar environment." Mangwiro echoed the view that demand from the global investment manager's clients has begun to diversify away from the United States. "Within ETFs, flows into the 'Global ex-US' segment picked up post 'Liberation Day', both for equities and fixed income. US flows have flatlined," he said, citing policy uncertainty, an unsustainable fiscal trajectory and fears of significant dollar weakness as driving the moves. However, he emphasized that Barings was not seeing wholesale de-risking from U.S. assets, but a diversification away from positions that were heavily U.S.-leaning over the past five years.
Wall Street Journal
an hour ago
- Wall Street Journal
Apple Challenges EU Order to Increase Compatibility with Rivals' Products
Apple AAPL 0.45%increase; green up pointing triangle is challenging an order from the European Union's antitrust watchdog specifying how it needs to make its iOS operating system more compatible with rival tech companies' products under the Digital Markets Act. The EU executive last March told Apple what it thinks it should do to make its iOS devices more compatible with rivals' products, from apps to headphones to virtual reality headsets, to comply with the DMA's interoperability rules designed to curb Big Tech's market power. That means giving software developers and device makers access to certain parts of Apple's operating system that are typically reserved for the company's own products, such as allowing some notifications to show up on rival companies' wearable technology. Apple filed an appeal against that decision to the European Union's General Court in Luxembourg on May 30. Appeals at the court aren't typically made public until a few days after they are filed. 'At Apple, we design our technology to work seamlessly together, so it can deliver the unique experience our users love and expect from our products. The EU's interoperability requirements threaten that foundation, while creating a process that is unreasonable, costly, and stifles innovation,' a spokesperson for the company said on Monday, calling the rules 'deeply flawed' and adding that the EU executive's order obliges Apple to share sensitive information with rivals and poses security risks to European customers. 'Companies have already requested our users' most sensitive data–from the content of their notifications, to a full history of every stored WiFi network on their device–giving them the ability to access personal information that even Apple doesn't see,' they said. 'We are appealing these decisions on their behalf, and in order to preserve the high-quality experience our European customers expect,' they said. The European Commission did not immediately respond to a request for comment. Apple criticized an access request from Meta Platforms last December just as the commission initially proposed measures it should adopt to adopt to ensure its operating systems are functional with rivals' products. Companies face fines of up to 10% their worldwide annual turnover if the EU decides they are flouting the rules. The commission can also order them to break up parts of their business in extreme cases. Write to Edith Hancock at
