European banks extend losses amid tariff selloff
A basket of the region's banks (.SX7P), opens new tab was down 3.3% to its lowest since early February at 0710 GMT after falling 5.5% on Thursday. Losses over the past two trading days hit 8.5%, the most for this period in three years.
Banking stocks elsewhere tanked overnight, with shares in many large Wall Street institutions, such as Goldman Sachs (GS.N), opens new tab, Morgan Stanley (MS.N), opens new tab and JPMorgan (JPM.N), opens new tab falling between 7-9%, marking their largest daily declines since 2020.
An index of financial shares in Japan fell by as much as 11% at one point on Friday (.IBNKS.T), opens new tab.
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The Independent
22 minutes ago
- The Independent
Donald Trump's latest Liberation Day means another dark day for America
Precisely what poor, benighted Syria and prosperous, neutral Switzerland have done to deserve US tariffs of 41 per cent and 39 per cent respectively is hard to discern. Neither is the kind of industrial superpower that represents a threat to America's economic hegemony, and both would, in their different ways, prefer to stay on reasonably good terms with the Trump White House. It is, sadly, easier to see why Canada got whacked with a 35 per cent levy on some of its exports – and Donald Trump's tariff tactics do have a hint of the mob about them. Mr Trump suggested that Canada's decision to recognise the state of Palestine as a sovereign nation would make it harder to achieve a trade deal, and he also mentioned the scourge of fentanyl. But then again, Mexico, which has also recognised Palestine and is by far the more important source of the drug, has been granted a 90-day tariff reprieve. Ever since the opening salvo in the Trump tariff war on 2 April – so-called Liberation Day – the shifting schedules and random pauses have lacked both rhyme and reason. Even at the time, their supposed 'reciprocity' was ridiculed. They have generated huge uncertainty, and, for a time, did so much damage to the dollar and US Treasuries on the capital markets that even Mr Trump had to make a tactical retreat. In fact, the US president's observed tendency to cave in whenever a trading 'partner' showed any sign of resistance led to the unwelcome 'Taco' sobriquet – 'Trump Always Chickens Out'. Some countries, such as the UK, Japan and the EU member states, have breathed a sigh of relief that they have escaped the worst, while others – often impoverished ones with no diplomatic leverage, such as Bangladesh and Lesotho – will find it difficult to cope with tariffs that are now considered moderate, but would have seemed shocking even a few years ago. Yet the game, even now, is not over. China – the second-largest economy in the world, and America's most formidable rival – has been left out of this supposedly final list of tariff increases. The trade talks between the two economic giants in Stockholm are dragging on, the prohibitive mutual tariffs having been abandoned, and they may well be extended past the next deadline of 12 August. President Trump met his match in Xi Jinping, and will not be imposing any further punitive trade sanctions on China for fear of another tit-for-tat escalation. Thus far, the markets have received the latest news of tariffs with some equanimity, but a collapse in trade between the world's two greatest economies would generate the kind of turmoil Mr Trump doesn't need right now. Even assuming that the eventual trade truce with China avoids disaster, these US tariffs are, in broad terms, the highest since 1934 and the era of the notorious Smoot-Hawley Act, which helped to strangle world trade and exacerbated the Great Depression. The Trump tariffs are no less damaging to world trade, and thus to economic growth, including that of the United States. But these restrictions on trade are what Mr Trump's Maga 'base' voted for, the folk memory of the previous disastrous experiment with tariffs having faded. The president's winning slogan was 'America First', epitomising a zero-sum, nationalistic view of the world, and unfortunately, he has proved as good as his word on inauguration day: 'Instead of taxing our citizens to enrich other countries, we will tariff and tax foreign countries to enrich our citizens.' Words that were both misguided and economically illiterate, naturally – but a promise kept. Many of the worst fears of America's friends and allies are coming true in these early months of Mr Trump's second term. With far more preparation than took place prior to his first term (which followed an election that, reputedly, he never expected to win), the US president has pressed on with his protectionist, isolationist, natalist agenda with speed and determination, surrounded by mostly underqualified, grotesquely sycophantic cronies. The judiciary is increasingly cowed, and Congress is listless in defending the constitution. The tendency to Caesarism is apparent in everything from the theatrical executive orders to the grandiose golden remodelling of the White House, and the contempt for the chair of the US Federal Reserve, Jerome Powell – a 'moron', apparently. Mr Trump thinks he can, with a stroke of a Sharpie, abolish the birthright to citizenship enshrined in the 14th amendment, passed in 1868. His conception of 'America First' is more America Alone, yet everything he does weakens American power and prosperity. It is an inward-looking, selfish, exclusionary approach. Undoubtedly it enjoys a political constituency, but ultimately it will prove self-defeating.
Daily Mirror
22 minutes ago
- Daily Mirror
Arsenal's stance on Eberechi Eze transfer revealed as date release clause expires is confirmed
Arsenal have been heavily linked with a move for Crystal Palace star Eberechi Eze this summer, but it remains to be seen if the Gunners can strike a deal for the 27-year-old Arsenal are interested in Crystal Palace star Eberechi Eze, but want to offload a forward before making a formal approach. The Gunners have made six new signings so far this summer, with Viktor Gyokeres, Martin Zubimendi, Noni Madueke, Cristhian Mosquera, Christian Norgaard and Kepa Arrizabalaga all joining the club. Eze is another player that has been heavily linked with a move to the Emirates and he does have a £68million release clause in his contract. However, multiple reports have stated that the clause expires on Friday. And BBC Sport are reporting that Arsenal have 'shown no inclination of triggering the forward's release fee', with the Gunners looking to sell before they make any more new signings. The report adds that Arsenal value Eze at less than £68m and 'want to negotiate a deal beneath the agreement'. Palace have so far been unwilling to negotiate a lower fee, but it is claimed that may change later in the window. When asked about Eze's future back in May, Palace boss Oliver Glasner said: "I don't want to comment on individual players. "We could talk about Marc Guehi, we could talk about Dean Henderson, we could talk about Adam Wharton, we could talk about Jean-Philippe Mateta, Daniel Munoz, Ismaila Sarr who played an incredible, outstanding season for us. We won't sell all of them." And Glasner has been left frustrated with Palace's lack of business so far this summer, having only spent £3m on a backup goalkeeper and a left-back. "Even though all the players are still here, we haven't made the most of the transfer window so far," Glasner admitted. "I was promised that we would be more active and bring in the new players earlier this year. As of now, I have 17 outfield players. "I hope we don't lose any more. If that happens and we get four new ones on deadline day like last year, another false start is possible." Palace's business has been complicated by the fact that they are still waiting to find out which European competition they will be playing in next season. Palace qualified for the Europa League after winning the FA Cup last season, but have been demoted to the Conference League by UEFA. UEFA ruled that they had breached their multi-club ownership rules, but Palace have lodged an appeal with the Court of Arbitration for Sport and a decision is expected before August 11.
Reuters
an hour ago
- Reuters
Breakingviews - Figma IPO sketches case for direct listings
NEW YORK, Aug 1 (Reuters Breakingviews) - Precious few of Silicon Valley's self-professed renegades are ready to rebel against Wall Street. The madcap market debut of design-software developer Figma (FIG.N), opens new tab makes a case they should. An abundance of capital is already keeping companies private for longer, changing the rationale for going public. Doing so with the direct listing method, rather than a traditional initial public offering, would be more suitable. Figma sparked a frenzy by selling, opens new tab shares for $33 apiece on Wednesday after twice increasing its planned price range. By Thursday's end, they were trading for $115, giving the company a $56 billion valuation, nearly triple what rival Adobe was willing to pay for it in 2022. On Friday morning, the price hit $125. This mania does little for Figma beyond raising its profile. Having generated, opens new tab more than $200 million of adjusted free cash in the year through March, the 13-year-old firm led by Dylan Field wasn't seeking to raise much money and only sold about a third of the 37 million shares on offer. The rest came from earlier backers such as Index Ventures and Kleiner Perkins. Less than 8% of Figma's stock was available to investors who are, as ever, motivated by the fear of missing out on a fast-growing company. They ascribed a nonsensical valuation of 75 times last year's revenue. The biggest beneficiaries: financial advisers, including Morgan Stanley and Goldman Sachs, that were paid generous fees to sell the shares, and their clients who received early allocations and an immediate return. Direct listings are better tailored for situations like Figma's. Used previously by Spotify Technology (SPOT.N), opens new tab and Palantir Technologies (PLTR.O), opens new tab, the process enables existing owners to sell straight onto an exchange with fewer restrictions. Market forces also determine the price instead of closed-door roadshows that cede such power to big fund managers and investment banks, whose incentives differ. Although traditional IPOs make sense for many companies, well-capitalized brand-name ventures like financial plumbing provider Stripe are a growing breed. There are more than 1,200 firms worldwide with private valuations of at least $1 billion, according to research outfit CB Insights. Such unicorns, opens new tab increasingly go public so investors can cash out rather than to fund growth. And although the sample size is small, a dozen direct listings have generated, opens new tab a 42% five-year return on average compared to just 9% from thousands of IPOs spanning 1999 to 2021, per University of Florida finance professor Jay Ritter. Figma's buzz will inspire other founders to go public, but they would do well to be more creative. Follow Jeffrey Goldfarb on X, opens new tab and Linkedin, opens new tab.
