Latest news with #euro-area
CNBC
2 days ago
- Business
- CNBC
Euro under pressure as U.S.-EU trade deal fails to impress
The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favored the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07% higher at $1.1594. "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank. "The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "While the U.S. dollar's strength... may reflect the perception that the new U.S.-EU deal is lopsided in favor of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the center of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
New Straits Times
2 days ago
- Business
- New Straits Times
Euro under pressure as US-EU trade deal fails to impress
SINGAPORE: The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the US and the European Union favoured the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to US President Donald Trump with an unbalanced deal that slapped a headline 15 per cent tariff on EU goods. German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3 per cent in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07 per cent higher at US$1.1594. "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank. "The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth." The slide in the euro in turn boosted the dollar, which jumped 1 per cent against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of US$1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "While the US dollar's strength... may reflect the perception that the new US-EU deal is lopsided in favour of the US, the US dollar's strength may also reflect a feeling that the US is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15 per cent to 20 per cent on their exports to the United States, well above the broad 10 per cent tariff he set in April. Elsewhere, the Australian dollar eased 0.05 per cent to US$0.6518, while the New Zealand dollar was little changed at US$0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top US and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
Economic Times
2 days ago
- Business
- Economic Times
Euro under pressure as US-EU trade deal fails to impress
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields common currency last traded 0.07% higher at $1.1594."It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank."The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth."The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar index steadied at 98.67."While the U.S. dollar's strength... may reflect the perception that the new U.S.-EU deal is lopsided in favour of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $ offshore yuan was little changed at 7.1813 per U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ).Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
Time of India
2 days ago
- Business
- Time of India
Euro under pressure as US-EU trade deal fails to impress
The euro struggled to recoup its steep losses on Tuesday as investors sobered up to the fact that terms of the trade deal between the U.S. and the European Union favoured the former and hardly lifted the economic outlook of the bloc. France, on Monday, called the framework trade agreement a "dark day" for Europe, saying the bloc had caved in to U.S. President Donald Trump with an unbalanced deal that slapped a headline 15% tariff on EU goods . Explore courses from Top Institutes in Please select course: Select a Course Category PGDM MBA Data Science Management Public Policy Technology Cybersecurity Product Management Operations Management Design Thinking healthcare Artificial Intelligence Data Analytics Healthcare Digital Marketing Degree others Data Science Finance Others CXO MCA Leadership Project Management Skills you'll gain: Financial Analysis & Decision Making Quantitative & Analytical Skills Organizational Management & Leadership Innovation & Entrepreneurship Duration: 24 Months IMI Delhi Post Graduate Diploma in Management (Online) Starts on Sep 1, 2024 Get Details by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Could Be the Best Time to Trade Gold in 5 Years IC Markets Learn More Undo German Chancellor Friedrich Merz said his economy would suffer "significant" damage due to the agreed tariffs. The euro slid 1.3% in the previous session, its sharpest one-day percentage fall in over two months, on worries about growth and as euro-area government bond yields fell. The common currency last traded 0.07% higher at $1.1594. Live Events "It hasn't taken long for markets to conclude that this relatively good news is still, in absolute terms, bad news as far as the near term implications for euro zone growth are concerned," said Ray Attrill, head of FX research at National Australia Bank. "The deal has been roundly condemned by France while others - including German Chancellor Merz, are playing up the negative consequences for exporters, and with that, economic growth." The slide in the euro in turn boosted the dollar, which jumped 1% against a basket of currencies overnight. The dollar held on to gains on Tuesday and knocked sterling to a two-month low of $1.3349. The yen edged marginally higher to 148.49 per dollar. The dollar index steadied at 98.67. "While the U.S. dollar's strength... may reflect the perception that the new U.S.-EU deal is lopsided in favour of the U.S., the U.S. dollar's strength may also reflect a feeling that the U.S. is re-engaging with the EU and with its major allies," said Thierry Wizman, global FX and rates strategist at Macquarie Group. Still, Trump said on Monday most trading partners that do not negotiate separate trade deals would soon face tariffs of 15% to 20% on their exports to the United States, well above the broad 10% tariff he set in April. Elsewhere, the Australian dollar eased 0.05% to $0.6518, while the New Zealand dollar was little changed at $0.5972. The offshore yuan was little changed at 7.1813 per dollar. Top U.S. and Chinese economic officials met in Stockholm on Monday for more than five hours of talks aimed at resolving long-standing economic disputes at the centre of a trade war between the world's top two economies, seeking to extend a truce by three months. Apart from trade negotiations, focus this week is also on rate decisions from the Federal Reserve and the Bank of Japan (BOJ). Both central banks are expected to stand pat on rates, but traders will watch subsequent comments to gauge the timing of their next moves.
Business Times
13-06-2025
- Business
- Business Times
Homeowners battle insurers over US$2.9 trillion climate risk
[PARIS] When Bernard Weisse first noticed a tiny crack in the outer wall of his house on the outskirts of Paris, he dismissed it as little more than a nuisance. But in the four years since, a spiderweb of fissures has spread from floor to ceiling and snaked into virtually every corner of his home. 'We can hear loud cracking noises especially when it's warm outside,' said the retired salesman and father of three. 'Sometimes, I think we should get all our stuff together and leave.' Like a growing number of people around the world, Weisse is grappling with subsidence – a term for the sinking land that's causing damage to homes and other structures built on it. The slow-moving climate disaster has already caused tens of billions in damage and has the potential to affect 1.2 billion people in areas accounting for more than US$8 trillion of economic output. While groundwater extraction, mining and earthquakes also cause the ground to shift, global warming vastly increases the risks. What happens is that soil swells with winter rain and then shrinks as it dries in the heat, cracking foundations in the process. Because of its soil and its status as the world's fastest-warming continent, Europe is particularly exposed. The European Central Bank estimates the region's potential damage from sinking land at more than 2.5 trillion euros (S$3.69 trillion) across all euro-area financial institutions. Although most of that is classified as 'low risk,' this summer is forecast to be one of the hottest and driest on the continent, creating perfect conditions for subsidence damage. For Weisse, the cost for repairs could climb to as much as 200,000 euros to keep his two-story home from crumbling. That would be part of the estimated 43 billion euros in damage that households face by 2050 in France alone, according to insurance trade group France Assureurs. With that much money at stake, it's set off a battle over who will ultimately have to pay. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Weisse's town of Presles-en-Brie has teamed up with 14 nearby villages and sued the state to have their subsidence issues recognised as a natural catastrophe like flash floods and wildfires. That would trigger payments from insurers and the government, powerful opponents for the municipalities. 'It's David against Goliath,' said Dominique Rodriguez, who's been mayor of the pastoral community of 2,300 people for more than three decades. So far, the big guys are winning. In Presles-en-Brie, at least 40 homeowners have sought subsidence compensation since 2020, and while two houses were granted recognition under a public-private insurance programme called CatNat, others were rejected. Europe is the epicentre because of its clay-rich soil and relatively high population density. Also, buildings from the 1970s and 80s – when a postwar housing construction boom was still underway – are particularly susceptible. While Presles-en-Brie is an early victim, the issues are global. Jakarta has sunk more than 2.5 metres in a decade, and Teheran drops as much as 22 centimetres a year. In the US, Houston is most affected, with 40 per cent of the city subsiding more than half a centimetre a year. More than 425,000 Dutch houses will be exposed over the next decade, with subsidence already lowering house prices by as much as 5 per cent, according to a recent study by the Tinbergen Institute. Repair costs can exceed 100,000 euros per home and are rarely covered by insurance. 'The situation is urgent,' said Karsten Klein, director of advocacy at Vereniging Eigen Huis, a Dutch homeowners association. 'Waiting until homes become uninhabitable is not an option.' In London, shifting ground levels over the next five years are set to affect two-fifths of the housing stock, or more than a million homes, according to the British Geological Survey. Across the UK, there have been a half dozen 'surge years' for subsidence over the last two decades. With the country experiencing one of its driest springs in a century, 2025 could end up as another 'high risk' year, according to Geobear, a company that undertakes repairs. Insurance claims for the hazard jumped 78 per cent between 2019 and 2023 and the average payout rose 40 per cent over that period, according to data provided by the Association of British Insurers. While the UK is one of the few countries in the world where insurers cover subsidence damage, it's tricky to manage because the impacts can be affected by local conditions like trees soaking up water. A few years ago, central London suffered the most from subsidence, but now it affects eastern neighbourhoods more, according to satellite data from Geobear says its data supports the shift of the subsidence burden to eastern London, where the surface is less built up and so more exposed. If movements are related to clay shrinkage, then it makes sense that places like Barking are hit harder, said Otso Lahtinen, Geobear's chief executive officer. In France, half of all single-family homes could be affected by subsidence by the end of the decade, according to Paul Esmein, head of the French insurance lobby. Since 2016, the country's insurers have paid about 1 billion euros a year for subsidence claims. That amount tripled in 2022, when European temperatures hit their second-highest level. To cope with rising losses from natural disasters and provide protection for homeowners, France launched a public-private insurance programme in 1989 called CatNat – a system that puts the state and the industry on the same side as costs surge. Homeowners are compensated for damage after their municipality has been awarded a CatNat certification. Otherwise, insurers are free to reject claims. Despite the challenges faced by communities like Presles-en-Brie, France's system is close to a best-case scenario for homeowners, which have little to no recourse to have subsidence damage covered in most other countries. 'Since its creation, the French system for recognising natural disasters has constantly adapted to the damage suffered by the population,' the French interior ministry said in response to Bloomberg questions, adding that the criteria for subsidence recognition was relaxed last year. In the case of Presles-en-Brie, the interior ministry said natural disaster conditions was recognised for part of 2020 as soil moisture was determined to be abnormal. It didn't comment on the ongoing dispute. Allianz France says that over the last decade subsidence constituted 60 per cent of all CatNat damages in the country, almost double the rate of the previous 15 years. 'The trend is getting more complicated with climate change,' said Pierre Vaysse, chief underwriting officer for property and casualty at the French insurer. 'The forecast is that claims will at least increase by 50 per cent and probably double by 2050.' France's CatNat system lost 49 million euros in 2024, its eighth straight annual deficit. Known as the Central Reinsurance Fund, the programme is paid for by a national surcharge on insurance policies, which was raised by eight percentage points in January to account for climate change. For homeowners, the strained system means higher premiums but with no certainty of coverage, and there's a risk that insurers abandon vulnerable areas as has happened in parts of the US prone to hurricanes and wildfires. Potential repairs include foundation reinforcements known as micropiles and injecting compounds into the soil to stabilise the clay. In some cases, the costs can approach the value of the home. With selling hardly a viable option, owners have little choice but to fork out the money themselves. 'There is a real threat that the damage will end up dislocating our entire house,' said Weisse, the owner of the damaged house in Presles-en-Brie. Burdened by the impact of climate change, the insurance system is 'on its last legs,' said Regis Thauvin, who handles subsidence issues for the town council and is also affected. 'We can't just tell people to wait a year and a half for a decision to be made before doing the necessary work.' The legal fight with the state has been going on since late last year and the towns, which represent about 72,000 people in total, are still waiting for a court date. As of early June, the government hadn't sent experts to review local damage. The municipalities are prepared to take their case to the European Court of Human Rights if they lose, according to Rodriguez, the mayor of Presles-en-Brie. 'We have little hope that our legal appeal will eventually succeed,' he said. 'But the residents welcome our action and the fact that we're at least trying to make ourselves heard.' BLOOMBERG
