
Google offers to tweak search results to promote rivals, stave off EU antitrust fine, documents show
Google's latest proposal came three months after the European Commission charged the U.S. tech giant with favouring its own services such as Google Shopping, Google Hotels and Google Flights over rivals in breach of the Digital Markets Act (DMA).
The landmark DMA sets out a list of dos and don'ts for Big Tech aimed at reining in their power and giving rivals more room to compete and consumers more choices.
Under Google's new proposal a vertical search service (VSS) selected on objective and non-discriminatory criteria would get its own box at the top of the search page with the same format, information and features as Google's, the document said.
The box would contain three direct links picked by the VSS, to hotels, airlines, restaurants and transport.
Other VSS, which are specialised search engines within Google, would be ranked below but without a box unless users click on them.
"We do not agree with the (Commission's) preliminary findings' position but, on a without prejudice basis, we want to find a workable solution to resolve the present proceedings," the documents sent by both Google and the Commission to the rivals said.
The rivals will provide feedback at a July 8 meeting called by the Commission. A number of rivals, who did not want to be named ahead of the meeting, told Reuters that the changes still do not go far enough to ensure a level playing field.
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Reuters
33 minutes ago
- Reuters
EU presses China on rare earths and Ukraine war
BRUSSELS, July 2 (Reuters) - The European Union's top diplomat urged China's foreign minister on Wednesday to end restrictions on rare earths exports and warned that Chinese firms' support for Russia's war in Ukraine posed a serious threat to European security, the EU said. The statement from the EU's diplomatic service came after Kaja Kallas, the bloc's high representative for foreign policy, met Chinese Foreign Minister Wang Yi in Brussels. Kallas "called on China to put an end to its distortive practices, including its restrictions on rare earths exports, which pose significant risks to European companies and endanger the reliability of global supply chains," the EU said. On trade, Kallas urged "concrete solutions to rebalance the economic relationship, level the playing field and improve reciprocity in market access". She also "highlighted the serious threat Chinese companies' support for Russia's illegal war poses to European security". China says it does not provide military support to Russia for the war in Ukraine. But European officials say Chinese companies provide many of the vital components for Russian drones and other weapons used in Ukraine. Kallas called on China "to immediately cease all material support that sustains Russia's military industrial complex" and support "a full and unconditional ceasefire" and a "just and lasting peace in Ukraine". Wednesday's discussions were to lay the groundwork for a summit between EU and Chinese leaders later this month. Wang also met earlier in the day with European Council President Antonio Costa as part of those preparations. In that meeting, Wang called on both sides to respect each other's core interests and increase mutual understanding, adding that "unilateralism and acts of bullying have seriously undermined the international order and rules," according to a Chinese foreign ministry statement. EU officials had said they would use the meeting between Kallas and Wang to urge China to use its influence as Iran's main oil buyer to press Tehran to make a deal over its nuclear programme and de-escalate conflict in the Middle East. The EU statement did not say whether those efforts had borne any fruit. But it said Kallas and Wang "agreed on the importance of the Nuclear Non-Proliferation Treaty as the cornerstone of the global nuclear non-proliferation regime". The EU and Britain, France and Germany are parties to a 2015 nuclear deal with Iran that Washington abandoned in 2018, which they hope to revive. Iran has always said its nuclear programme is peaceful and denies seeking a weapon. Costa and European Commission President Ursula von der Leyen will travel to China for the summit with Chinese President Xi Jinping and Premier Li Qiang on July 24-25.


Reuters
2 hours ago
- Reuters
Investors mobilise for weeks of market whiplash from wild-card events
LONDON, July 3 (Reuters) - Big investors are mobilising to trade through weeks packed with wild-card events that may shatter the calm in stock markets and drive big swings for assets they see as exposed to both positive or negative surprises, from gold to corporate credit. U.S. Treasuries, the dollar, yen and euro zone debt may also turn volatile, investors said, Thursday's U.S. jobs data is followed by next week's crunch U.S.-European Union tariff deadline and then an unpredictable French budget vote. After that, markets face an August 12 deadline for U.S.-China talks to achieve a trade deal. "I can't think of a time in my history in markets, which is pretty long, where you've had so much risk and so little risk premium," said Insight Investment head of investment specialists April La Russe, referring to the compensation for holding risky assets over cash. Here's a look at how investors are gaming out potential market flare-ups in the days and weeks ahead. Russell Investments global head of solutions strategy Van Luu said market participants were pricing a mildly positive outcome on July 9, with the U.S. and EU either settling for 10% universal tariffs or postponing a resolution, as the U.S. had with China. He had turned negative on corporate credit because yields were underpricing the economic risks of ongoing tariff uncertainty, he said. With Brussels now pushing for exemptions for key EU export sectors, the worst case scenario was a deadlock and markets starting to fear reciprocal tariffs, he said. Amundi global head of macro Mahmood Pradhan, a former IMF deputy director for Europe, said the July 9 outcome was a coin-toss but a benign result was already priced into risky assets. World stocks(.MIWD00000PUS), opens new tab have rebounded and are up 24% since a low of April 8, soon after U.S. President Donald Trump delivered his "Liberation Day" April 2 bombshell of tariffs on imports from around the world. "Given the rally we've had, there might not be more upside," Pradhan said. Any outcome on July 9 could hit the dollar and spark cross-currency volatility, investors said. The greenback is already down some 10% against other major currencies so far this year . Treasuries would suffer if talks broke down in a threat to world trade, Artemis head of fixed income strategy Liam O'Donnell said. A long and steady accumulation of Treasuries by overseas investors and central banks has been partly driven by the dollar's dominant position in global trade flows. Gold, (.XAU), opens new tab which has soared by more than 25% year-to-date to $3,344 as investors piled into the precious metal to hedge portfolios against inflation and recession risks sparked by high tariffs, is also vulnerable to a positive EU tariff outcome. "We could see profit taking (on gold) by real money investors and also hedge funds," Edmond de Rothschild multi-asset head Michael Nizard said. While latest U.S. payrolls data is released on Thursday, the next official payrolls report on Aug. 1 could be a bigger jolt to world markets than tariffs, coming at a time of holiday-thinned trade, investors added. "In terms of what would produce the biggest market surprise, I think it's actually U.S. data because that has been flying under the radar," Russell's Luu said. Artemis' O'Donnell said the upcoming U.S. job reports were the biggest event risk for markets. Luu said gauges of expected volatility in some world currencies seemed too low, particularly those expressing how Japan's yen, which can rip higher when U.S. rate cut bets build, might swing against the dollar and the euro in the months ahead. There are also crunch dates for Europe that could revive anxiety about debt stress, overshadowed so far by investors tapping assets such as triple-A rated German Bunds as Treasuries' haven appeal has diminished. French Prime Minister Francois Bayrou survived his eighth no confidence motion on Tuesday but investors are wary about his chances of getting a plan to trim the euro zone's biggest budget deficit on July 14 through a parliament rocked by right-wing rebellions. Germany's stimulus bonanza is also now rolling, with an upper house vote on business tax breaks on July 11. Benchmark Bund yields are about 25 basis points (bps) higher so far this year to around 2.62% given expectations for increased bond sales to fund extra borrowing. The extra yield bond investors demand for lending to France over Germany, at 70 bps now , might be too low given the immediate French budget risk ahead. "We prefer an underweight position in French sovereign bonds in the near term," RBC Wealth Management investment strategy head Frédérique Carrier said. And Britain is also back on the watch-list as government U-turns on welfare reforms threaten a budget blowout, sparking fresh bond selling.


The Herald Scotland
3 hours ago
- The Herald Scotland
Scotch whisky distillers change course as US lifts barriers
'What we're seeing right now is a once-in-a-generation set of challenges facing the Scotch whisky industry,' a spokesperson for the Scotch Whisky Association said. 'Businesses of all sizes, but particularly SMEs (small and medium-sized enterprises), are operating under considerable strain as input costs have risen, from increased raw material and energy prices to the rise in employment costs. 'Consumer spending is also being impacted, the impact of which is being felt across the supply chain and hospitality sector. 'On the international stage, the key markets relied upon by smaller and medium sized companies to establish their business – the UK, the EU, and the US – are all facing their own unique obstacles which have put up barriers to trade and access.' The founder of one Scotch distillery said it has switched its focus to Asia because of the higher cost of exporting to the US. 'It's a real challenge for us,' said Martin Murray, co-owner of Thurso-based Dunnet Bay Distillers. 'We'd set out a plan for 2025 with market visits and investment, but that has been significantly impacted by the US tariffs. As a result, we've changed our strategy to be investing in sales in Asia. Our sales in China are going well in a market that still has challenges post-Covid.' Ian Palmer, founder of InchDairnie Distillery in Fife, said: 'The immediate term impact has been confusion and uncertainty over the tariffs leading to our distributors being very cautious. 'In the long term, there will be price increases for the US consumer leading to a loss of volume and that will be more evident at the 'value' end of the market.' Despite the challenges in the US, industry figures are encouraged by the recent signing of the UK-India trade deal, which will bring freer access for exports to one of the world's biggest whisky markets, as well the emergence of key markets in Asia such as Vietnam. Scotch whisky veteran Billy Walker, owner of The GlenAllachie Distillery in Speyside, said: 'There's money to be spent there. I can see Vietnam becoming a huge holiday area in the next few years because it has such a wonderful coastline with remarkably decent infrastructure. 'And they are knowledgeable. They are not novices when it comes to Scotch whisky.'