Latest news with #E.U.
Yahoo
12 hours ago
- Business
- Yahoo
Why LVMH Stock Was Sliding Today
Key Points The U.S. and E.U. agreed on a 15% tariff for most goods imported from Europe. Luxury goods will be included in the tariff. LVMH's first-half report last week showed the challenges it's facing. 10 stocks we like better than LVMH Moët Hennessy - Louis Vuitton › Shares of LVMH Louis Vuitoon Moet Hennessy (OTC: LVMUY) were pulling back today after the luxury conglomerate giant as investors continued to digest last week's disappointing earnings report and reacted to the new tariff agreement between the U.S. and the European Union. As of 1:45 p.m. ET, the stock was down 2%. Luxury weakness continues LVMH was one of several high-profile European stocks to fall today, including Heineken, Puma, and AB/InBev, and its European luxury peers like Hermes, Kering, and Richemont also fell. A combination of weak results from some big European companies and concerns about the tariff agreement seemed to be the reason for it. The E.U. and the U.S. agreed to a 15% tariff on European goods, which France, where LVMH is based, denounced as a "submission" on Monday. The resolution avoids a trade war, but will add a large cost to luxury goods, which are included in the tariffs, at a time when they are already struggling. LVMH has struggled in recent quarters. In its first-half report last week, LVMH said that revenue was down 4% through the first two quarters of the year, while operating profit fell 15% to 9 billion euros. Weakness in Asia was the primary culprit. Organic revenue declined by 7% in fashion and leather goods, which make up nearly half of its sales. The trade war is likely to impact that segment as well as wines and spirits. Trade-related pressure on China is also hurting demand for luxury goods in that key market. What's next for LVMH? Investors are hoping for a trade deal to be announced with China, which could be beneficial to LVMH, as China makes up roughly a quarter of the world's luxury market. There's also some disappointment that luxury goods weren't carved out of the trade deal with the U.S., but a strong economy and stock market likely act as a counterweight to any import taxes imposed on its goods. LVMH has a strong portfolio of brands, which should provide long-term stability, but investors should expect more volatility over the short term. Should you invest $1,000 in LVMH Moët Hennessy - Louis Vuitton right now? Before you buy stock in LVMH Moët Hennessy - Louis Vuitton, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and LVMH Moët Hennessy - Louis Vuitton wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 28, 2025 Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why LVMH Stock Was Sliding Today was originally published by The Motley Fool 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
Yahoo
14 hours ago
- Automotive
- Yahoo
To avoid worst of Trump tariffs, E.U. accepted a lopsided deal
BRUSSELS - The tariff-and-spending accord announced Sunday by the United States and the European Union stands to avert a damaging trade war between two of the world's largest economies, but it is lopsided in favor of President Donald Trump's protectionist policies, with Brussels swallowing bitter concessions in hopes of stabilizing a relationship that is vital not just economically but also for security interests. The rough agreement - which allows Washington to raise tariffs on E.U. goods while the Europeans promise to buy more U.S. products - quickly came under sharp criticism in Europe. Despite feisty rhetoric and vows to stand up to Trump, E.U. leaders largely acquiesced to the U.S. leader's ever-changing demands. Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington Post. E.U. negotiators insisted the deal was the best way to avoid a highly damaging tit-for-tat trade war that would benefit rivals such as China and Russia. But European officials and analysts said the tentative agreement does not end the uncertainty because so many details must still be worked out. To the harshest critics, including some in France who spoke of a 'capitulation' and 'humiliation,' the agreement is proof of a deeply unbalanced alliance and the latest example of European appeasement of Trump. At NATO, allies similarly strained to pledge the huge increases in military spending demanded by Trump. European Commission President Ursula von der Leyen, who announced the deal with Trump while sitting next to him at one of his golf resorts in Scotland on Sunday, touted 'a huge deal,' clearly playing to Trump's love of largeness. But at her news conference soon after, von der Leyen appeared far more sober, declaring the 15 percent tariffs she had accepted on European automobiles to be 'the best we could get.' The E.U., and in particular Germany, its automaking powerhouse, had hoped to eliminate the 25 percent U.S. car tariffs entirely. 'We should not forget where we came from,' von der Leyen said. 'Fifteen percent is certainly a challenge for some, but we should not forget it keeps us the access to the American markets.' Trump indeed had threatened far worse, including a 30 percent across-the-board tariff that upended months of painstaking negotiations. Under the new deal, the United States will impose a 15 percent duty on most imports from the E.U. The blanket rate foisted on the E.U. mirrors a U.S. deal announced this month with Japan, another Group of Seven ally, but it is higher than the 10 percent that Britain secured earlier this year and that E.U. officials had grudgingly accepted in recent talks. Since World War II, trade agreements have largely sought to reduce the cost of buying and selling goods across borders. A 2017 deal the E.U. struck with Canada eliminated tariffs on most goods traded between them. An agreement signed with Vietnam in 2019 aims to phase out nearly all customs duties. Trump's accord with the E.U. goes in the opposite direction by raising tariffs, with some exceptions. Economists say the tariffs will increase costs for importers, who must pay the duties, and put upward pressure on inflation. Consumers and businesses will probably bear some of the extra costs, experts say. In France, where President Emmanuel Macron had urged the E.U. to take a harder line, the deal drew sharp backlash. While Macron was quiet Monday, Prime Minister Francois Bayrou said it was 'a dark day when an alliance of free people, brought together to assert their values and defend their interests, resigns itself to submission.' Von der Leyen's European Commission, the E.U.'s executive body that negotiates trade policy for its 27 member nations, had faced calls from Germany and Italy, two countries that do outsize business with the United States, for an accord that would limit damage to their export-dependent companies. But even capitals that had urged a conciliatory approach were not exactly celebrating on Monday. 'The agreement successfully averted a trade conflict that would have hit the export-oriented German economy hard,' German Chancellor Friedrich Merz said. Still, members of the European Parliament from Germany blasted the deal even as it reduced Trump's tariff on cars, one of Germany's central demands. 'My first assessment: not satisfactory; this is a lopsided deal,' said Bernd Lange, who chairs the European Parliament's committee on international trade, in a post on X. 'Concessions have clearly been made that are difficult to accept. Deal with significant imbalance. Furthermore lot of questions still open.' Dutch Prime Minister Dick Schoof acknowledged that 'no tariffs would have been better' but called the deal 'vital for an open economy like ours.' Belgian Prime Minister Bart De Wever said, 'One thing is clear: This is a moment of relief but not of celebration.' The talks laid bare the E.U.'s queasiness at using its economic muscle, one of its few areas of leverage against Washington, at a time when allies have had to calibrate repeatedly to keep Trump on board as Russia wages war in Ukraine. Ultimately, after months of mixed signals and threats from Trump, E.U. leaders said they accepted a deal to give their industries a reprieve from the uncertainty that threatened to cripple business. Officials suggested they had relented out of concern that Trump was prepared to raise tariffs to a level that would effectively halt trade between Europe and the United States. 'Let's pause for a moment and consider the alternative: A trade war may seem appealing to some but it comes with serious consequences,' said the E.U. trade commissioner, Maros Sefcovic, who shuttled to Washington in recent months for difficult talks with Trump officials. 'Our businesses have sent us a unanimous message: Avoid escalation and work toward a solution that brings immediate tariff relief,' Sefcovic told reporters Monday. He said that he and his team had traveled to Washington 10 times for a deal and that the E.U.'s calculations reached beyond trade. 'It's about security, it's about Ukraine, it's about current geopolitical volatility,' Sefcovic said. He said he couldn't go into detail on what was discussed in the room with Trump on Sunday, 'but I can assure it was not just about the trade.' Now, nearly 70 percent of European goods will face the blanket tariff, a big increase in charges, according to a senior E.U. official who spoke on the condition of anonymity to talk frankly about the details of the deal, which is still under negotiation. The E.U. had sought carve-outs from the U.S. tariff regime for key sectors including wine and spirits, and aircraft parts. The announced agreement eliminates tariffs on airplane parts, but a decision on wine and spirits was postponed. E.U. officials said talks will continue in the coming weeks. The two sides appeared to diverge on other details. The White House indicated that a 50 percent tariff on steel would remain in place, while E.U. officials said there would be further negotiations on lowering steel tariffs. Many officials and experts said it was crucial to sort out the details. 'We need to understand what is included,' said Brando Benifei, an Italian member of the European Parliament and head of its delegation for relations with the United States. Some questioned if ongoing U.S. trade inquiries by the Trump administration might still result in extra tariffs, such as on European-made pharmaceuticals, though the E.U. said those should remain capped at 15 percent under the new agreement. At first glance, Benifei said, the deal 'seems very asymmetric.' 'The result is due in my view to the push by some governments to have a deal at any cost, which has weakened our stance,' he added. 'Because the U.S. knew some governments wanted a deal whatever the cost.' Others noted that Trump's threats managed to shift the view on what constituted relief. Just a few weeks ago, E.U. and U.S. negotiators neared an agreement that involved a blanket tariff of 10 percent, before a Truth Social post by Trump derailed them. On Monday, some investors saw benefits for Europe's key auto industry, for instance, which would see U.S. car tariffs reduced to 15 percent from 25 percent. The tariffs, however, were at 2.5 percent before Trump's global trade blitz, and some industry groups noted their dismay. 'The U.S. tariff rate of 15 percent, which also applies to automotive products, will cost German automotive companies billions annually and burdens them,' said Hildegard Mueller, president of Germany's main auto industry group, the VDA. On some issues, the Europeans stood their ground. Trump officials had pressed the E.U. for concessions on tech industry regulations and on food standards, which the bloc insisted were nonnegotiable. As part of the deal, Trump said Europe had committed to buying more U.S. energy and weapons, and boosting investment in the United States. But those provisions are mostly aspirational promises without guarantees. European nations were already poised to buy more U.S. weapons under an arrangement with Trump to continue arming Ukraine, and the bloc was already seeking alternative energy sources, including liquefied natural gas from the United States, as part of its push to phase out Russian energy imports. More energy purchases and European investments would come from member states and companies that Brussels does not control. Italian Prime Minister Giorgia Meloni, seen as a close Trump ally in the E.U., heralded the deal, while saying details still need to be worked out. 'I obviously welcome the fact that an agreement has been reached,' Meloni told reporters. Still, she added, 'we need to verify the possible exemptions, particularly for certain agricultural products. So there are a number of elements that are missing.' - - - Faiola reported from Rome. Beatriz Rios in Brussels and Cat Zakrzewski in Edinburgh, Scotland, contributed to this report. Related Content The U.S. military is investing in this Pacific island. So is China. In a stressful human world, 'mermaiding' gains popularity in D.C. area 'College hazing' or training? Amid shortage, air traffic recruits wash out.
Yahoo
20 hours ago
- Business
- Yahoo
How will Trump's E.U. tariffs affect drug prices?
President Donald Trump's trade deal with the European Union may lead to higher prices for brand-name drugs in the United States, including blockbuster medications like Ozempic and Wegovy, experts say. The trade deal, announced Sunday, places a 15% tariff on most imported goods from the E.U., including pharmaceuticals. While that comes in well below the 200% tariffs Trump had threatened on pharmaceutical imports earlier this month, it'll still have an impact. Pharmaceuticals are the United States' fifth largest import, said Dr. Aaron Kesselheim, a professor of medicine at Harvard Medical School. Europe is a major manufacturing hub for brand-name drugs in particular. Nearly half of the active ingredients for brand-name drugs taken in the United States are produced in European countries such as Ireland, Germany, Italy and Belgium, Kesselheim said. Europe is also where many drugmakers do final steps, such as filling and packaging. Novo Nordisk's diabetes and obesity drugs Ozempic and Wegovy are both produced in Denmark. Botox, made by Allergen, and the cancer drug Keytruda from drugmaker Merck are made in Ireland. (In recent years, however, more of Keytruda's manufacturing has shifted to the United States.) While brand-name drugs only account for about 10% of prescriptions filled in the United States, they make up about 80% of all drug spending, Kesselheim said. 'That's because they're priced so high,' he said. 'Each individual [generic] statin is pennies, whereas Botox is thousands to tens of thousands of dollars.' In the short term, drug companies might increase the list prices of these products to account for the higher cost, said Rena Conti, an associate professor at Boston University's Questrom School of Business. 'U.S. consumers will pay more at the pharmacy counter for these drugs,' Conti said. 'What patients pay at the pharmacy counter reflects drug companies' set price list.' Kesselheim said it's an open question whether patients would even notice the higher prices, given that brand-name drugs are already so expensive. 'The drug prices are already two to three times higher in the United States than they are in other countries,' he said. 'There is a lot more room for drug companies [to charge more.]' Generic drugs, on the other hand, are often sold at close to the cost that they're made. About 9 out of 10 prescription drugs taken in the United States are generics, Kesselheim added. The Pharmaceutical Research and Manufacturers of America, a drug industry trade group, did not immediately respond to a request for comment. The E.U. tariffs aren't expected to affect the prices of many generic drugs. Some generic drugs are made in Europe, but the majority are manufactured in countries like China and India, said Arthur Caplan, the head of the division of medical ethics at NYU Langone Medical Center in New York City. There have been concerns that tariffs on these countries could drive up the cost of generic drugs and exacerbate drug shortages. Generic drugs aren't a lucrative enough business for companies to invest in new manufacturing facilities in the United States, Caplan said. A spokesperson for the Association for Accessible Medicines, a trade group that represents generic drugmakers, said the group is still assessing the potential impact of the tariffs as well as the specifics of the trade deal. This article was originally published on Se produjo un error al recuperar la información Inicia sesión para acceder a tu portafolio Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información Se produjo un error al recuperar la información
India.com
21 hours ago
- Business
- India.com
Microsoft Ditches Russia-Linked Nayara: EU Sanctions Slam Indian Oil Giant Into Crisis, Rediff Rushed In
New Delhi: A storm is brewing in India's oil sector. The trigger? A fresh wave of European Union (E.U.) sanctions aimed at isolating Russia's oil economy. But this time, the fallout is not in Moscow; it is at a high-capacity refinery in Gujarat, where Nayara Energy, backed by Russian oil giant Rosneft, is suddenly cut off from its digital backbone. Microsoft has abruptly suspended its services to Nayara, leaving thousands of employees locked out of their familiar digital workspace. No Outlook. No Teams. No warning. By Tuesday last week, the shutdown was complete, according to sources quoted by Reuters. The sanctions had found their latest and most unexpected target. To keep communication going, Nayara scrambled for a backup. The company turned to an old Indian internet brand now offering enterprise email services. Based in Mumbai, Rediff has stepped in to provide an internal messaging system. But there is a catch. It cannot touch any of the data previously stored on Microsoft's cloud. As a result, years of archives gone dark for now. Caught off guard, Nayara on Monday dragged Microsoft to the Delhi High Court, challenging what it calls a 'unilateral' and 'legally unjustified' decision. The refinery is pushing back, not only in court, but in public. 'This action has been taken unilaterally, without prior notice, consultation or recourse and under the guise of compliance. Such moves signal a worrying trend of global corporations extending foreign legal frameworks into jurisdictions where they have no applicability,' Nayara said in a statement. Microsoft is headquartered in the United States. The E.U. sanctions, Nayara pointed out, apply only in Europe, not in America or India. Still, the tech giant chose to pull out. And this is where things get messier. Capable of processing 20 million tonnes a year, Nayara's Vadinar refinery is one of India's top importers of Russian crude. It handles about 8% of India's refining output and fuels nearly 7% of the national retail network with over 6,750 filling stations. The company is also expanding into petrochemicals, aiming for 8% of India's polypropylene capacity. Until now, Nayara had been seen as a key player helping India balance its energy needs with discounted Russian oil, especially after the war in Ukraine began. But things are shifting. Bloomberg reports say oil firms and shippers are beginning to keep their distance. Exporting refined products or importing crude has started becoming more complicated. Nayara has become the first Indian oil company directly impacted by the EU's newest sanctions. The refinery insists it follows Indian law to the letter. 'We remain in continuous dialogue with Indian authorities to ensure complete transparency and accountability,' the company stated. New Delhi is not happy either. India has pushed back against what it calls unilateral restrictions. Responding to the latest sanctions, the Ministry of External Affairs did not mince words. 'India does not subscribe to any unilateral sanction measures. The Government of India considers the provision of energy security a paramount importance to meet the basic needs of its citizens. We would stress that there should be no double standards, especially when it comes to energy trade,' said MEA spokesperson Randhir Jaiswal. On July 19, the E.U. tightened the price cap on Russian oil from $60 to $46.7 per barrel, squeezing already thin margins. The ripple effects are now being felt in Indian boardrooms and courtrooms alike. What happens next could redefine how India's energy partnerships evolve and how far corporate compliance with foreign sanctions can go, even within sovereign borders.
New York Times
21 hours ago
- Business
- New York Times
Wednesday Briefing: The U.K. May Recognize a Palestinian State
The U.K. will recognize a Palestinian state if there's no cease-fire Britain's prime minister, Keir Starmer, announced yesterday that the country would recognize the state of Palestine in September if Israel did not agree to a cease-fire with Hamas and halt a war that has brought starvation to Gaza. In addition to a cease-fire, Starmer said the Israeli government would have to agree not to annex the occupied West Bank and commit to a peace process that would result in a Palestinian state. Israel is highly unlikely to accept these demands. Starmer's government has faced political pressure as the British public has recoiled from images of starving children in Gaza. 'The situation is simply intolerable,' he said. Aid chaos: The desperation on the ground in Gaza can be seen from orbit. A satellite captured an image of hundreds of people crowding around an aid convoy in Khan Younis More Gaza news: A U.N.-backed food security group said that 'the worst-case scenario of famine is playing out in Gaza,' and Gaza's health ministry announced that the death toll from the war had surpassed 60,000. Bezalel Smotrich, Israel's far-right finance minister, said that the country was 'closer than ever' to rebuilding settlements in Gaza. China and the U.S. will continue trade talks Top officials from the U.S. and China said yesterday that they had not reached a deal to avert a trade war after two days of intensive negotiations in Stockholm. But they agreed to continue discussions about extending a trade truce that is set to expire on Aug. 12. U.S. Treasury Secretary Scott Bessent said that 'nothing is agreed until we speak with President Trump,' but added that if the president approved a pause on higher tariffs for Chinese goods it most likely would be for another 90 days. Trump said that he would consult his top advisers and 'either approve it or not.' Stocks wobbled on the news. For more: After deals with Japan and the E.U., Trump is winning his trade war. But what will that mean for the U.S. economy? Russian strikes on Ukraine killed at least 22 people Hours after Trump gave the Kremlin a new deadline to end the war, Russia launched a wave of strikes that killed at least 22 people, according to Ukraine. At least 16 people were killed in an attack just before midnight on Monday on a prison in Zaporizhzhia, and a missile struck a hospital with a maternity ward in the Dnipro region, part of a wave directed at 73 cities and villages. In Moscow, officials largely waved off Trump's threat to impose new sanctions on Russia unless it took steps to end the war in about 10 to 12 days. China: Beijing was left reeling after days of torrential rains there and in surrounding areas led to the deaths of at least 38 people. India: The home minister said that security forces had killed three Pakistani nationals accused of a deadly attack in Kashmir in April. Southeast Asia: Thai and Cambodian military commanders endorsed a cease-fire deal reached by their leaders to de-escalate their border conflict. New York City: A gunman who killed four people in a Manhattan office building may have targeted the National Football League. We have live updates. Ozempic: Shares of Novo Nordisk, the Danish company behind the weight-loss drug, plummeted more than 20 percent after a profit warning. Diplomacy: North Korea signaled that it might be open to talks with the Trump administration, but that it would not abandon its nuclear arsenal. Cycling: Here are key takeaways from the Tour de France and a look ahead at the 2026 edition. Soccer: Euro 2025 showed how much the women's game has changed. Swimming: Katie Ledecky won gold in the 1,500-meter freestyle at the world championships in Singapore. The small city of Iten, Kenya, has long produced world-class running talent. Its high altitude and red dirt roads are a training ground for thousands of Kenyans trying to run their way out of poverty. But Iten is also the center of a doping crisis. Some of Kenya's highest-profile runners, like the women's marathon world-record holder, Ruth Chepngetich, have been suspended from competition for doping. Goop to the rescue: An A.I. company enlisted Gwyneth Paltrow to help defuse a kiss-cam scandal at a Coldplay concert. Tread carefully: Finns trying to enjoy beaches this summer have run into an obstacle: mountains of goose poop. English nuptials: Eve Jobs, Steve Jobs's daughter, got married in the Cotswolds, a hot spot for lavish weddings. Coke vs. Pepsi: The race to become the first soda in space drew in NASA and the White House. The Booker Prize nominees are out, and Kiran Desai is back Kiran Desai shot to fame when her first novel, 'The Inheritance of Loss,' won the Booker Prize in 2006. But she struggled to write a follow-up. Almost two decades later, Desai has been nominated for the Booker again, this time for the novel she grappled with for all those years, 'The Loneliness of Sonia and Sunny.' The 13 titles nominated for the British literary award, which were announced yesterday, also include books by David Szalay, Maria Reva and Claire Adam. Here's the list. Make: Quality olive oil helps make this farro salad stellar. Watch: 'Sweet Dreams' is one of the best international movies to stream right now. Plank: Here's an in-depth guide to a great core exercise. Listen: A classical pianist has been experimenting with performances out in nature. Test yourself: Take this week's Flashback history quiz. Play: Spelling Bee, the Mini Crossword, Wordle and Sudoku. Find all our games here. That's it for today. See you tomorrow. — Dan We welcome your feedback. Send us your suggestions at briefing@
