Political strategist warns Dems working to unite despite having 'no power'
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Yahoo
19 minutes ago
- Yahoo
Europe reacts with mix of relief and concern to US trade deal
By Philip Blenkinsop and Sudip Kar-Gupta BRUSSELS (Reuters) -European governments and companies reacted with both relief and concern on Monday to the framework trade deal struck with U.S. President Donald Trump, acknowledging what was seen as an unbalanced deal but one that avoided a deeper trade war. The agreement, announced on Sunday between two economies that account for almost a third of global trade, will see the U.S. impose a 15% import tariff on most EU goods - half the threatened rate but much more than what Europeans hoped for. Many of the specifics of the deal were not immediately known, however. "As we await full details of the new EU–U.S. trade agreement, one thing is clear: this is a moment of relief but not of celebration," Belgian Prime Minister Bart De Wever wrote on X. "Tariffs will increase in several areas and some key questions remain unresolved." Trump said the deal, including an investment pledge topping the $550 billion deal signed with Japan last week, would expand ties between the trans-Atlantic powers after years of what he called unfair treatment of U.S. exporters. It will bring clarity for European makers of cars, planes and chemicals. But the EU had initially hoped for a zero-for-zero tariff deal. And the 15% baseline tariff, while an improvement on the threatened rate of 30%, compares to an average U.S. import tariff rate of around 2.5% last year before Trump's return to the White House. European Commission chief Von der Leyen, describing Trump as a tough negotiator, told reporters on Sunday that it was "the best we could get". European stocks opened up on Monday, with the STOXX 600 at a four-month high and all other major bourses also in the green. Tech and healthcare stocks led the way. "The 15% rate is better than the market was fearing," said Jefferies economist Mohit Kumar. German Chancellor Friedrich Merz welcomed the deal, saying it averted a trade conflict that would have hit Germany's export-driven economy and its large auto sector hard. MORE CLARITY, BUT 'NOT THE END OF THE STORY' French government ministers said on Monday that the deal had some merits - such as exemptions they hoped to see for some key French business sectors such as spirits - but was nevertheless not balanced. Industry minister Marc Ferracci stressed more talks - potentially lasting weeks or months - would be needed before the deal could be formally concluded. "This is not the end of the story," he told RTL radio. European companies, meanwhile, were left wondering whether to cheer or lament the accord. "Those who expect a hurricane are grateful for a storm," said Wolfgang Große Entrup, head of the German Chemical Industry Association VCI. "Further escalation has been avoided. Nevertheless, the price is high for both sides. European exports are losing competitiveness. U.S. customers are paying the tariffs," he said. Stellantis shares were up 3.5% and car parts maker Valeo jumped 4.7% while German pharma group Merck KGaA rose 2.9%, in a sign of relief for those sectors. Among the many questions that remain to be answered, however, is how the EU's promise to invest hundreds of billions of dollars in the U.S. and steeply increase energy purchases can be turned into reality. It was not immediately clear if specific pledges of increased investments were made or whether the details still must be hammered out. And while the EU pledged to make $750 billion in strategic purchases over the next three years, including oil, liquefied natural gas (LNG) and nuclear fuel, the U.S. will struggle to produce enough to meet that demand. While U.S. LNG production capacity is due to almost double over the next four years it will still not be enough to ramp up supplies to Europe, and oil production is expected to be lower than previously forecast this year. Despite the lingering unknowns, analysts stressed the deal still helped decrease uncertainty. Oil prices rose on Monday, as did the euro. "Now that there is more clarity, you would think that not only in the United States, but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," said Rodrigo Catril, senior currency strategist at National Australia Bank. Sign in to access your portfolio
Yahoo
19 minutes ago
- Yahoo
Dollar stablecoins threaten Europe's monetary autonomy, ECB blog argues
FRANKFURT (Reuters) -The dollar's early dominance of stablecoins gives the U.S. an advantage that could ultimately push up borrowing costs for Europe, reduce the ECB's autonomy and increase geopolitical dependency on the U.S., an ECB blog post argued on Monday. Stablecoins, crypto assets pegged to a currency such as the dollar, have gained popularity in recent years and got a big boost earlier this month when U.S. President Donald Trump signed a law to create a regulatory regime, aimed at cementing the dollar's status as the global reserve currency. "Such dominance of the U.S. dollar would provide the United States with strategic and economic advantages, allowing it to finance its debt more cheaply while exerting global influence," ECB adviser Jürgen Schaaf said in a post that does not necessarily reflect the ECB's own views. "For Europe, this would mean higher financing costs relative to the United States, reduced monetary policy autonomy and geopolitical dependency," he added. If dollar-based stablecoins become widely used in the euro area, for payments, savings or settlement, the ECB's control over monetary conditions could be weakened, Schaaf argued. Dollar-pegged stablecoins issued by Tether and Circle have dominated the global market and the share of euro-denominated stablecoins remains marginal, with market capitalisation of less than 350 million euros, the blog post said. Europe should thus act quickly, creating the digital version of its euro currency, a project, that is being held up by legislative delays, and should foster the creation of more euro-based stablecoins. The EU should also foster the use of distributed ledger technology to speed up cheap cross-border payments, the blog argued. "Finally, stronger global coordination on stablecoin regulation is pivotal," the blog said. "If we forgo a common approach, we risk fuelling instability, regulatory arbitrage and global U.S. dollar dominance." Sign in to access your portfolio
Chicago Tribune
20 minutes ago
- Chicago Tribune
John T. Shaw: Philanthropy leader fights fear and envisions a better world
One need not be a cultural anthropologist to appreciate that the most powerful force now driving American life is not hope, or optimism, or confidence. It is fear. This fear has been ignited by President Donald Trump and has been fueled by his combative administration and the complicit Republican majority in Congress. It's been inadvertently fanned by a dispirited, seemingly hapless, Democratic Party and the capitulation of critical institutions such as law firms, corporations and universities that are more focused on self-preservation than honoring their historic missions. The Merriam-Webster dictionary provides these antonyms for fear: audacity, nerve and guts. Michelle Morales, president of Woods Fund Chicago, possesses these qualities in abundance. And others as well, such as resolve and determination. 'I have been dismayed at the amount of fear and by the silence of institutions that have bent to the will of this administration,' she told me in a recent interview. 'It's been scary to see how many people have changed, or stayed quiet, or realigned their work. We need to push back, even if there are ramifications for pushing back.' Morales' philanthropic statesmanship is based on courage, resilience and her vision of a 'reimagined world' rooted in racial and economic justice and basic humanity. The child of parents from Puerto Rico, Morales was born in Yonkers, New York, and grew up as a self-described 'military brat.' She attended DePaul University as an undergraduate, fell in love with Chicago and has lived here since. She has been a teacher, community organizer and executive director of the Illinois chapter of the Mikva Challenge, which promotes youth civic participation and leadership. Morales assumed the presidency of Woods Fund Chicago in 2019. It is a private foundation with assets of more than $65 million. Many of its grants support community organizing for racial and economic justice and public policy advocacy. Morales may run a relatively small foundation, but she has a strong, forceful and authoritative voice. She is an outsized force. Inside Philanthropy, a respected journal that covers the sector, published a story in June about the quiescence of philanthropy to Trump's attacks on civil society. 'Many funders have opted for silence,' the article says. But it then describes several leaders, including Morales, who have stepped forward, spoken up and refused to be submissive. 'Early on in philanthropy, in the first months of the Trump administration, there was quite a bit of silence,' Morales said. 'It's been heartening to see more and more foundations speak out in the last few months, but the initial silence was scary. It's important for foundations to take a stand and come out from under the radar.' She credits the community's rallying to a Unite in Advance campaign that was launched in April by John Palfrey, president of the MacArthur Foundation; Tonya Allen, president of the McKnight Foundation; and Deepak Bhargava, president of the Freedom Together Foundation. They urged the philanthropic community to aggressively defend cherished values. 'We know the risk of standing up to a hostile government. But complacency is complicity. Foundations must lead — not just with grants but with guts,' their organizing essay declared. Morales argues that this is a deeply consequential moment. She has pushed WFC to go far beyond its traditional annual payout of 5% of assets for current programs. Its expanded financial commitment began in 2020 in response to the pandemic and has accelerated this year, reaching 15%. 'If COVID was the rainy day, this is the monsoon,' Morales said. She is a passionate advocate for robust diversity, equity and inclusion programs, a commitment WFC has long embraced. Morales was encouraged, but skeptical, when many corporations and universities rushed out statements supportive of diversity, equity and inclusion in the aftermath of George Floyd's murder by a Minneapolis police officer. She has been disappointed, but not surprised, that many have retreated, given opposition from the Trump administration. 'I am concerned about the pulling back. DEI, racial justice work, is not illegal. It's not unconstitutional. Structural racism is still very real in this country,' she said. Morales is gearing up for a protracted battle with the administration. But she is also determined to strive for what she calls a reimagined world with strong and effective social programs and commitments to racial and economic justice. And while seeking this better world, she insists that philanthropy must continue to support initiatives that improve the daily lives of those who are struggling. 'As cheesy as it may sound, I have to hold out hope. I believe that the work I'm doing is not only planting seeds but also creating the conditions for the reimagined world I believe in. We may not get there in my lifetime, but I'm going to keep working for it,' she said. 'If I allow cynicism to creep in, I'm done for. I won't have the energy or the passion or the joy for the work. But I won't lie. It's hard to bear witness to the amount of suffering that is occurring.'
