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Kuwait Times
a day ago
- Business
- Kuwait Times
US court blocks most Trump tariffs
US dollar, banks, luxury stocks, chipmakers lead gains NEW YORK: A US trade court ruling that blocked most of President Donald Trump's tariffs and found he had overstepped his authority triggered some relief on financial markets on Thursday, while adding to the uncertainties weighing on the global economy. Among the United States' big trading partners, in the throes of negotiation with the Trump administration, Germany said it could not comment, as did the European Commission. 'We ask for your understanding that we cannot comment on the legal proceedings in the US, as they are still ongoing,' a spokesperson for Germany's economy ministry said. 'We continue to hope that a mutually beneficial solution can be reached in the negotiations between the EU Commission and the US government.' The British government said the sweeping ruling was a domestic matter for the US administration but noted that it was 'only the first stage of legal proceedings'. Winners on financial markets included chipmakers, banks, luxury stocks and auto industry, all hit hard by tariff-led disruptions. The US dollar had earlier rallied against the yen and Swiss franc but its gains faded as the trade outlook remained uncertain and worries emerged about how Trump could respond. Wall Street stock index futures had earlier risen by more than 1.5 percent but were last up just 0.8 percent. The trade court ruling on Wednesday dealt a blow to Trump's central policy of using tariffs to wring concessions from trading partners. The decision affects the blanket tariff orders issued by Trump since January rooted in the International Emergency Economic Powers Act (IEEPA), a law meant to address threats during a national emergency. It does not cover sector-specific tariffs, such as those on steel, aluminum and car imports. His administration immediately said it will appeal and analysts said investors will remain cautious as the White House explores its legal avenues. If the court ruling holds, the president could deploy other trade laws to impose sector-specific levies as well as across-the-board and country-specific tariffs. Following a market revolt after his major tariff announcement on April 2, Trump paused most import duties for 90 days and said he would hammer out bilateral deals with trade partners. But apart from a pact with Britain this month, agreements remain elusive and the court's stay on the tariffs may dissuade countries like Japan from rushing into deals, analysts said. Another pause in Trump's stop-start trade policy could be helpful to opponents of his tariffs and to traders who relish volatility. 'Assuming that an appeal does not succeed in the next few days, the main win is time to prepare, and also a cap on the breadth of tariffs – which can't exceed 15 percent for the time being,' George Lagarias, chief economist at Forvis Mazars international advisers, said. Turmoil Trump's trade war has shaken makers of everything from luxury handbags and sneakers to household appliances and cars as the price of raw materials has risen, supply chains have been disrupted and company strategies redrafted. Drinks company Diageo, automakers General Motors and Ford are among those who have abandoned forecasts for the year ahead. Non-US companies including Honda, Campari and pharmaceutical companies Roche and Novartis have said they are considering moving operations or expanding their US presence to mitigate the impact of tariffs. As markets assessed the latest twist in the trade upheaval, European export-sensitive sectors, such as autos and luxury stocks, were among leading gainers on Thursday, although earlier gains faded through the morning. The pan-continental STOXX was up 0.2 percent, while France's CAC, which has a heavy weighting of luxury and bank stocks, rose 0.5 percent. Overall sentiment was also lifted by strong results late on Wednesday from AI bellwether Nvidia. But the gains in shares may be short-lived, analysts said, with those who relish risk making the most of them. 'I think we are in a period of higher volatility - we will get some more spikes on the way, I think. But volatility is the friend of the active investors,' Kevin Barker, global head of active equities, UBS Asset Management, told a media briefing. — Reuters
The Guardian
a day ago
- Business
- The Guardian
Ukraine must urgently be given the €300bn of frozen Russian assets
Ukraine needs more than long-range missiles and fibre-optic drones in its fight with Russia. What it needs is more money, and lots of it. In particular, the war-torn nation should be handed the €300bn (£250bn) of frozen Russian assets stored mostly in accounts hosted by the Euroclear trading system. The Belgian government could confiscate the funds with the support of the EU Commission, or set up a way to use the Russian funds as collateral for a gigantic loan to Ukraine. Either way, Moscow has forfeited its right to the money, which is mostly central bank funds that were left behind after Putin gave the order to invade. As a statement of intent, confiscating the funds would be shock to Putin, hurt his pride and undermine support at home for the war. It would give Ukraine a much needed psychological boost after months of backpedalling through the Donbas while Russian forces exploit the dithering and equivocation in Washington. Donald Trump, who views Europe as weak and indecisive, would be left reeling by such a forceful act, which many have demanded since the start of the war and has gained traction in recent weeks as the bombardment of Ukraine has intensified. A short walk from the EU commission buildings, Euroclear's HQ is one of the largest hosts to international financial transactions in the world. Understandably, it is keen to hang on to its reputation as a cast-iron guarantor of secure trading to the world's biggest investors. In this role, the company has warned that a confiscation of the €183bn lodged in its systems would undermine Europe's role as a safe haven in the eyes of investors from South America to the Indian subcontinent. It has the backing of the French and Belgian governments, which are shareholders in the organisation. Recently another reason for keeping the money frozen and unused has come to the fore. Trump's tariff war and tax-giveaway budget has undermined the US as the home of free-market capitalism, offering the EU a chance to grab a bigger slice of the financial trading action. One analyst said: 'Europe needs to move quickly to take advantage of growing disillusionment in the US economy'. Yannis Stournaras, governor of the Bank of Greece, was another to argue that the prize would be toppling the dollar as the premier reserve currency and inserting the euro in its place. A decade ago, many considered the euro a currency with only a limited lifespan before a north/south split – pitching profligate Greece, Italy and Spain against austere Germany, the Netherlands and Austria – tore the single currency apart. Today the euro is seen as a stable currency while the dollar comes under daily attack. Now is the time to show Europe is the safest of havens in contrast to Trump's America. There are mutterings in Brussels that to grab this opportunity also means rejecting attempts to confiscate Russia's frozen billions. How would it look, they ask, if the EU invited more investment in the bloc via jointly issued 'stability' bonds, when in the same breath it announced the confiscation of investor funds. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion This is a fallacy that needs to be squashed quickly. It's true that a few autocratic despots around the world might withdraw their funds from European trading centres if Russia's money is taken away, fearing the same would happen to them, but EU banks should not be looking after their money anyway. And the Russia situation is extreme and cannot be thought of as the thin end of any wedge, or a slippery slope. Belgium and the EU have budged a little. The interest generated by Russia's frozen assets is given to Ukraine, and Belgium hands its shareholder dividend payments to the Volodymyr Zelenskyy war effort. And earlier this month Euroclear said it plans to seize and redistribute about €3bn of Russia's funds after Moscow last year grabbed investor cash of the same value. However, the motive was just to compensate investors who were foolish enough to leave their financial assets inside a country that has been explicitly threatening war since the 2014 invasion of Crimea. Such manoeuvring only emphasises how Ukraine needs all the money now, as a show of force and as an expression of unity as much for what it could buy. It matters because, as military chiefs discussed last week in a conference held by the UK's Royal United Services Institute, Putin has the capacity to invade other parts of Europe within months of success in Ukraine. And Nato is under-prepared. There is broader agreement across Europe as each week passes that Putin needs to be stopped. Military spending is the focus, and governments are promising to ramp up their commitments. Not by €300bn though, which is why the funds in Euroclear and other EU-based financial custodians must be seized. Even Rishi Sunak, writing in the Economist earlier this year, says he agrees that Russia has kissed goodbye to any rights over the funds. We just need chancellor Merz, president Macron and Keir Starmer to say the same.
France 24
2 days ago
- Business
- France 24
Digital euro inches closer to reality: Will Europeans trust a virtual currency?
Europe 12:23 From the show These days, we are using cash less than we used to and relying more on private tech platforms, such as Apple Pay and Revolut, to manage our finances and make purchases. The EU wants to keep up with consumer behaviour in this ultra-digital age and ensure it does not lose control of its monetary system to private companies or big tech aligned with political powers that dislike the EU. This is a key motivation behind the push for the digital euro. The European Central Bank has led the project since 2021, but the EU Commission and the European Parliament have also been working on it. The ECB paints the project in a positive light, claiming that the digital euro will benefit consumers, retailers and payment service providers. However, it remains to be seen whether citizens will actually trust that the virtual currency will deliver on these promises. We delve into what's at stake with our panel of MEPs.
The Verge
2 days ago
- General
- The Verge
Posted May 30, 2025 at 3:51 AM EDT 0 Comments
The EU age verification app will launch in July. The app is described as a temporary solution until the EU rolls out a Digital Identity Wallet with age-checking features next year, aiming to support the enforcement of rules that require online platforms to protect minors. The app will allow users to verify their age without giving personal information to platforms, and was briefly mentioned on Tuesday when the EU Commission announced its probe into major porn sites.
Time of India
3 days ago
- Business
- Time of India
Tariffs run into a wall; US court says President Trump overstepped authority
Live Events A US trade court ruling that blocked most of President Donald Trump 's tariffs and found he had overstepped his authority triggered some relief on financial markets on Thursday, while adding to the uncertainties weighing on the global economy Among the United States' big trading partners, in the throes of negotiation with the Trump administration, Germany said it could not comment, as did the European Commission."We ask for your understanding that we cannot comment on the legal proceedings in the US, as they are still ongoing," a spokesperson for Germany's economy ministry said. "We continue to hope that a mutually beneficial solution can be reached in the negotiations between the EU Commission and the U.S. government."The British government said the sweeping ruling was a domestic matter for the US administration but noted that it was "only the first stage of legal proceedings".Winners on financial markets included chip makers, banks, luxury stocks and auto industry, all hit hard by tariff-led disruptions. White House officials quickly signaled on Thursday that Trump will pursue many of the same levies through other legal authorities, if appeals administration meanwhile is aggressively pushing to overturn the decision, saying it would go to the US Supreme Court as soon as Friday if a federal appeals court does not keep the original ruling from taking effect while the challenge continues. The ruling was "blatantly wrong" and "we are confident this decision will be overturned on appeal," the White House posted on US dollar had earlier rallied against the yen and Swiss franc but its gains faded as the trade outlook remained uncertain and worries emerged about how Trump could US economy shrank at the start of the year, restrained by weaker consumer spending and an even bigger impact from trade than initially domestic product decreased at a 0.2% annualised pace in the first quarter, the second estimate from the Bureau of Economic Analysis showed Thursday.
