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Apollo eyes $100 billion Germany investment as private capital swerves U.S. turmoil for Europe

Apollo eyes $100 billion Germany investment as private capital swerves U.S. turmoil for Europe

CNBC09-06-2025
MEGA, or "Make Europe Great Again," was a hot topic at this year's biggest private markets event last week. The about-turn in sentiment toward the continent was illustrated no better than when the boss of industry juggernaut Apollo said he saw the opportunity to put $100 billion "in the ground" in Germany over the next decade. "I think many investors in Europe see the opportunity, and many investors in U.S. see the opportunity right now in Europe. They see it across the private equity ecosystem. They also see it across the credit ecosystem," Apollo Global Management President Jim Zelter said during a keynote interview. As well as direct lending, Zelter said he saw big opportunity in investment-grade commercial and residential real estate, highlighting domestic housing shortages in Spain and the U.K. On Germany, Zelter said the $100 billion investment figure would be hard to match anywhere in the world outside of the U.S., and that the country had "woken up Europe to focus on financing industry, military and a variety of other critical industries." His comments will be welcomed by Germany's new government, which has called for private capital to help meet its infrastructure needs alongside public funding. Sentiment began to significantly shift around the sluggish German economy in March, when lawmakers approved alterations to longstanding debt restrictions to allow the establishment of a $500 billion fund for defense, infrastructure and climate-related projects. At the start of May, center-right, pro-business politician Friedrich Merz — who has served on the boards of BlackRock Germany, EY Germany and the Deutsche Börse — was confirmed as Germany's new chancellor, ending months of political uncertainty. Merz met with U.S. President Donald Trump last week , achieving some diplomatic wins in his attempt to strengthen ties between the countries and urge further support for Ukraine. Europe bulls, U.S. nerves Joana Rocha Scaff, head of European private equity at Neuberger Berman, told CNBC that many investors had started the year overweight the U.S. and intending to extend their allocations, expecting deregulation and a boost to economic growth, only to be abruptly stymied by Trump's tariff policies. "In the midst of this turbulence and noise in the U.S., we have seen capital be redirected towards Europe," she said, with her own investment firm "actively investing in the market" alongside its core general partners, or GPs. Neuberger Berman's active market investments deploy around $4 billion of capital on a direct basis a year, she said. So far this year, Europe has accounted for around 65% of direct investment activity, up from around 20-30% of global market activity on a typical year, she noted. Those investments have been broad, she continued but generally oriented around developed parts of Europe, energy security and transition, defense, digitalization and industrial assets. Private equity's enthusiasm toward Europe has also been reflected in public markets. Germany's blue chip DAX index is up around 22% this year, versus around 1% for the Dow Jones Industrial Average . Europe's Aerospace and Defense Index is up nearly 50%, while a tracker index of the long-buzzy Magnificent 7 U.S. tech giants is down 2%. For retail investors seeking opportunities in the space, JPMorgan recently named its top European stock picks for the next year — and they include defense names Rheinmetall and Babcock International , IT firms SAP and Dassault Systems , and infrastructure picks Alstom , Heidelberg Materials and Saint-Gobain . There are also new ways for retail investors to track private credit returns through exchange-traded funds — though experts warn private markets are complex and come with significant risks . Earlier this year, State Street and Apollo Global Management launched the SPDR SSGA Apollo IG Public & Private Credit ETF (PRIV) exchange-traded fund (ETF), which aims to have at least 80% of its assets in investment-grade private and public debt securities.
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Cracks Emerge in G7 Over Macron's Palestine Move
Cracks Emerge in G7 Over Macron's Palestine Move

Newsweek

timea few seconds ago

  • Newsweek

Cracks Emerge in G7 Over Macron's Palestine Move

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. European and American leaders have spoken out against French President Emmanuel Macron's plan to officially recognize Palestine as a state, illuminating the cracks among nations that make up the Group of Seven (G7) amid the ongoing crisis in Gaza. On X, formerly Twitter, Macron made the announcement on Thursday and wrote in part: "Consistent with its historic commitment to a just and lasting peace in the Middle East, I have decided that France will recognize the State of Palestine. I will make this solemn announcement before the United Nations General Assembly this coming September." Why It Matters Macron's announcement brings to a head months of increasing criticism from France, which has a large Muslim population, regarding Israel's conduct in its war against Hamas—the Palestinian militant group that rules Gaza—that was sparked by the October 7, 2023, attack on Israel that killed 1,200 people. The ongoing Israel-Hamas war has led to mass destruction, death, and famine in Gaza. At least 1.9 million people—about 90 percent of the population in the enclave—have been internally displaced by Israeli bombardments, according to the U.N. Israel's ground and air attacks have killed more than 55,300 Palestinians, per the Gaza Health Ministry. The French president's decision also comes amid a wave of nations moving to recognize Palestinian statehood, with France being the first G7 nation to do so. Other countries that make up the G7 include Canada, Germany, Italy, Japan, the United Kingdom, and the United States. Representatives from other nations say it could be too soon to recognize statehood and further complicate relations between Palestine and Israel. Of the 193 U.N. member states, approximately 147 currently recognize the State of Palestine, which was granted non-member observer status at the U.N. in 2012. Israel, which is a full member of the U.N., is currently recognized by around 165 U.N. member states. What To Know Macron's announcement followed his visit to Egypt's border with Gaza in April where he witnessed the scale of the crisis. "In light of the commitments made to me by the President of the Palestinian Authority, I have written to him to express my determination to move forward," Macron wrote in his X post. He had originally sought a coordinated move with allies, including the U.K. and Canada, but faced reluctance from these governments. While France presses forward, the United States and Israel sharply condemned the decision, characterizing it as bolstering Hamas and undermining peace efforts. "The United States strongly rejects @EmmanuelMacron's plan to recognize a Palestinian state at the @UN general assembly," Secretary of State Marco Rubio wrote on X following Macron's announcement. "This reckless decision only serves Hamas propaganda and sets back peace. It is a slap in the face to the victims of October 7th." British Prime Minister Sir Keir Starmer and Germany have also resisted immediately following suit, citing the necessity of linking Palestinian statehood to progress on a two-state solution and broader regional negotiations, The Independent reported. Italy's Prime Minister Giorgia Meloni reacted to Macron's statement saying in part, "I am very much in favour of the State of Palestine but I am not in favour of recognising it prior to establishing it," Reuters reported. Meloni also rejected premature recognition, saying, "If something that doesn't exist is recognised on paper, the problem could appear to be solved when it isn't." French President Emmanuel Macron talks to media prior to talks with German Chancellor Friedrich Merz at Villa Borsig on July 23 in Berlin. French President Emmanuel Macron talks to media prior to talks with German Chancellor Friedrich Merz at Villa Borsig on July 23 in Berlin. Photo byHamas 'Always Rejected the Two-State Solution' Macron has said the decision on a Palestinian state was "consistent" with his country's "historic commitment to a just and lasting peace in the Middle East," and called for an "urgent end to the war" as well as greater humanitarian assistance for the people of Gaza. French Foreign Minister Jean-Noël Barrot defended the decision and rejected the accusation that it helped Hamas. "Hamas has always rejected the two-state solution. By recognizing Palestine, France proves this terrorist movement wrong. It supports the side of peace against that of war," Barrot posted to X. Israel Reacts to Macron Decision Israel's Permanent Representative to the U.N., Danny Danon, blasted France's decision. "Neither international conferences disconnected from reality nor unilateral statements at the U.N. will lead to peace," Danon said in a statement shared with Newsweek. "Macron's decision to recognize a Palestinian state after the massacre of October 7 and precisely at a time when Hamas is still holding hostages is a disgraceful reward for terrorism." He added: "Anyone who ignores the reality on the ground—that Israel has no partner for peace—harms not only Israel but the stability of the entire region." What People Are Saying President Donald Trump to reporters about Macron's announcement on Friday: "What he says doesn't matter. He's a very good guy. I like him, but that statement doesn't carry weight." British Prime Minister Sir Keir Starmer said in a statement Friday, per The Independent: "Alongside our closest allies, I am working on a pathway to peace in the region, focused on the practical solutions that will make a real difference to the lives of those that are suffering in this war. That pathway will set out the concrete steps needed to turn the ceasefire so desperately needed, into a lasting peace." He added: "Recognition of a Palestinian state has to be one of those steps. I am unequivocal about that. But it must be part of a wider plan which ultimately results in a two-state solution and lasting security for Palestinians and Israelis. This is the way to ensure it is a tool of maximum utility to improve the lives of those who are suffering—which of course, will always be our ultimate goal." French President Emmanuel Macron wrote on X: "...Peace is possible. We need an immediate ceasefire, the release of all hostages, and massive humanitarian aid for the people of Gaza. We must also ensure the demilitarization of Hamas, secure and rebuild Gaza. And finally, we must build the State of Palestine, guarantee its viability, and ensure that by accepting its demilitarization and fully recognizing Israel, it contributes to the security of all in the region. There is no alternative. The French people want peace in the Middle East. It is our responsibility—as French citizens, alongside Israelis, Palestinians, and our European and international partners—to prove that peace is possible." What Happens Next? Following Macron's announcement, divisions may further complicate efforts to coordinate Western policy on the Middle East and could weaken the G7's collective influence over the peace process. Within the U.K., Starmer's Labour government faces continued pressure from MPs, trade unions, and allied parties to match France's move, with speculation surrounding potential policy shifts following a planned meeting with Trump in Scotland this week.

The All-New Tesla Model Coming Soon Is Not What You Think
The All-New Tesla Model Coming Soon Is Not What You Think

Forbes

timea few seconds ago

  • Forbes

The All-New Tesla Model Coming Soon Is Not What You Think

A new Model Y driving in LA (Photo by MEGA/GC Images) So, is there a new, more affordable Tesla in the pipeline? Apparently yes, and it's not what you think. Last week, on a second-quarter Tesla earnings call, the man himself, Elon Musk let the cat out of the bag when he said, 'It's just a Model Y.' Really? What does that mean? Could it mean that it's just a stripped down Model Y? And what about the future of the federal tax credit? Let's face it: Tesla is the only American automaker capable of producing a high-end, realistic, appealing electric vehicle for less than $30,000. And if they have to bring the car back to bare bones to make it sell, then that's what they'll do, apparently. People just don't have enough money to buy Teslas now Musk expanded by saying that, 'The desire to buy our cars is very high. It's just that people don't have enough money in the bank to buy them. That's the issue. So the more affordable we can make the car th Tesla CEO Elon Musk says new car is Model Y. (Photo by Odd ANDERSEN / AFP) (Photo by ODD ... More ANDERSEN/AFP via Getty Images) Then he revealed how potential buyers can possibly offset the purchase price of their car by 'releasing their car to the fleet and have it earn money for them,' suggesting that people may 'lend' their cars back to Tesla in a type of robotaxi relationship perhaps. Musk then went out on a limb by saying he's confident that 'I think this will happen next year in the U.S. at least.' His comments though raise more questions than provide answers. By saying 'it's just a Model Y,' does he mean a 'new' Y with upgraded parts but based on the old platform, which would help to keep costs down? What we do know is that the more affordable Model Y, as referred to by Musk, should be surfacing in Q4 this year. But that will be long after the $7,500 federal tax credit ends—which will make it even tougher for Tesla to get the price down to the sub-$30,000 level that Musk seems to be alluring to. Let's have a quick look at Tesla's current pricing. Today, the Model Y rear-wheel drive variant costs $44,990, which when you factor in the $7,500, drops the price to $37,490. But with that tax credit gone, and we expect it to disappear very soon under the Trump Administration, the price for a current model Y will hover around $44,000. So for Musk to achieve his goal of achieving a sub-$30,000, he will need to find $15,000 worth of savings in specs and features. The question is—which features to strip back? If it's going to be used as some kind of robotaxi, then it will need all of its AutoPilot features. And given that the Y has been rated as one of the safest on the road by Euro NCAP, ANCAP and IIHS, Tesla would not want to skimp on safety features in any way—which would make it difficult to reduce pricing. But Musk has pushed the boundaries of car tech in the past and redefined the genre, so we will give him some latitude and wait for further updates even if his car sales are hurting all over the planet.

Trump delivers immigration message on Scotland visit
Trump delivers immigration message on Scotland visit

UPI

timean hour ago

  • UPI

Trump delivers immigration message on Scotland visit

1 of 3 | President Donald Trump played golf in Scotland Saturday morning, teeing it up at his Trump Turnberry golf resort ahead of meetings with European lawmakers and delivering a message after leaving the White House on Friday (pictured). Photo by Will Oliver/UPI | License Photo July 26 (UPI) -- President Donald Trump played golf in Scotland Saturday morning, teeing it up at his Trump Turnberry golf resort ahead of meetings with European lawmakers and delivering a message. "I say two things to Europe: Stop the windmills. You're ruining your countries. I really mean it, it's so sad. You fly over and you see these windmills all over the place, ruining your beautiful fields and valleys and killing your birds," Trump told reporters after arriving on Friday. "On immigration, you better get your act together. You're not going to have Europe any more," he said. Trump is scheduled to discuss trade during a Monday meeting with British Prime Minister Keir Starmer and Scottish First Minister John Swinney. He is also expected to meet with European Commission president Ursula von der Leyen during the four-day visit to Scotland. The delegation will start arriving Saturday and include European trade commissioner Maros Sefcovic, as well as von der Leyen, who Trump referred to as a "highly respected woman." U.S. officials and their EU counterparts are continuing attempts to reach a deal before an Aug. 1 deadline that will see 30% reciprocal tariffs take effect on all EU member states. The United States and Britain reached a deal in June on tariffs between the two countries, although Trump and Starmer were expected to iron out details during their meeting. Protestors demonstrated against Trump's visit in both Edinburgh and Aberdeen Saturday morning, including outside the Trump-owned golf course. He will also visit another of his privately-owned courses, Trump International Scotland in Aberdeenshire, during the trip. "We are really excited, across this whole weekend, there's so many campaign groups turning out in the streets, taking in action in their communities or at rallies like this. It's kind of like a carnival of resistance," demonstrator Anita Bhadani told the BBC outside of the U.S. Consulate General's office in Edinburgh Saturday, after helping to organize the Stop Trump Coalition. The coalition said its purpose is to "defeat the politics of Trumpism, and to promote an alternative, democratic vision of the world based on peace, social justice and international cooperation."

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