EU’s von der Leyen has ‘good alternate’ with TrumpLisa O’CarrollEuropean Fee president Ursula von der Leyen and Donald Trump had a “good alternate” on Sunday, elevating hopes of a deal by Wednesday, the US president’s self-imposed deadline for commerce offers.Olof Gill, the EU commerce spokesperson, advised reporters throughout a day by day press briefing that:
“We wish to attain a take care of the U.S. We wish to keep away from tariffs. We consider they trigger ache. We wish to obtain win-win outcomes, not lose-lose outcomes”.
As lined in our introduction, the Trump administration has mentioned letters would exit from in the present day notifying buying and selling companions who don’t have a deal by 9 July of the upper tariffs that may take impact on August 1.The EU is demanding rapid aid from tariffs on automobiles, which presently stand at 29.5% and discount of tariffs in metal, as a part of a UK-style framework deal that’s being negotiated.Either side had been locked in talks over the weekend after a excessive degree delegation led by commerce fee Maros Šefčovič to Washington final week.Amongst these he met had been treasury secretary Scott Bessent who remarked over the weekend that “good progress” had been made with the EU after and preliminary deadlock.By the way, our Europe Weblog has all the principle developments from throughout the continent:ShareKey eventsShow key occasions onlyPlease activate JavaScript to make use of this featureThe aim posts are shifting once more on the commerce and tariff subject, reviews Brad Bechtel,international head of FX at Jefferies.Bechtel explains:
President Trump has indicated international locations can have till Aug 1 earlier than new tariffs kick-in as they rush to finish commerce offers with international locations all over the world.
July 9 had been the working deadline and the administration is indicating {that a} slew of offers is within the hopper for this week, however the brand new quasi-extension was thrown on the market this previous weekend. Trump additionally indicated that commerce offers might be introduced in the present day at 12pm. The EU and Japan are two of the bigger offers to be resolved and EU officers claimed they had been nonetheless working in the direction of the Wednesday deadline to return to a conclusion.
Trump indicating he’ll ‘have a deal or letter with most nations performed by July 9’ however will begin asserting offers in the present day. He additionally threw in an additional 10% tariff for anybody ‘aligning’ with BRICS, no matter which means.
ShareBangladesh’s interim authorities is anticipating a positive decision in commerce negotiations with the US.“We’ve had no less than seven rounds of negotiations, each digital and in-person, and we anticipate a constructive end result,” commerce secretary Mahbubur Rahman mentioned in an interview on Monday, Bloomberg reviews.Rahman additionally mentioned the US has hinted at creating two separate commerce bands — one for least developed international locations or LDCs, a bunch that features Bangladesh, and the opposite for the remaining buying and selling companions.Bangladesh was one of many international locations hardest hit by Donald Trump’s commerce struggle announcement of early April; it confronted a brand new tariff of 37% on its imports to the US.ShareEU’s von der Leyen has ‘good alternate’ with TrumpLisa O’CarrollEuropean Fee president Ursula von der Leyen and Donald Trump had a “good alternate” on Sunday, elevating hopes of a deal by Wednesday, the US president’s self-imposed deadline for commerce offers.Olof Gill, the EU commerce spokesperson, advised reporters throughout a day by day press briefing that:
“We wish to attain a take care of the U.S. We wish to keep away from tariffs. We consider they trigger ache. We wish to obtain win-win outcomes, not lose-lose outcomes”.
As lined in our introduction, the Trump administration has mentioned letters would exit from in the present day notifying buying and selling companions who don’t have a deal by 9 July of the upper tariffs that may take impact on August 1.The EU is demanding rapid aid from tariffs on automobiles, which presently stand at 29.5% and discount of tariffs in metal, as a part of a UK-style framework deal that’s being negotiated.Either side had been locked in talks over the weekend after a excessive degree delegation led by commerce fee Maros Šefčovič to Washington final week.Amongst these he met had been treasury secretary Scott Bessent who remarked over the weekend that “good progress” had been made with the EU after and preliminary deadlock.By the way, our Europe Weblog has all the principle developments from throughout the continent:Share“Time is cash” with regards to tariff negotiations between the European Union and the US, a German authorities spokesperson has mentioned.The spokesperson says:
“Time is cash within the truest sense of the phrase.”
They added that German Chancellor Friedrich Merz had mentioned the matter with EU Fee President Ursula von der Leyen and the leaders of France and Italy on the weekend, explaining:
“On this respect, we must always give ourselves one other 24 or 48 hours to decide.”
ShareKremlin denies BRICS works in opposition to different countriesThe Kremlin has insisted that the BRICS group of countries had by no means been working to undermine different international locations.Kremlin spokesman Dmitry Peskov mentioned the Kremlin had taken be aware of Donald Trump’s menace to impose a ten% tariff on these aligning themselves with its “anti-American insurance policies”.Peskov added:
“We’ve certainly seen such statements by President Trump, however it is vitally necessary to notice right here that the distinctiveness of a bunch like BRICS is that it’s a group of nations that share frequent approaches and a typical world view on how you can cooperate based mostly on their very own pursuits.
“And this cooperation inside BRICS has by no means been and can by no means be directed in opposition to any third international locations”.
ShareThe US-Vietnam commerce deal introduced final week “raises hopes” for agreements with different rising markets (EMs), says Jon Harrison of Metropolis agency TS Lombard.Harrison advised purchasers:
The US administration has indicated that offers are near completion for 10 main buying and selling companions. Most bigger and mid-sized EM are among the many main buying and selling companions, however are aiming for a tariff of lower than the 20% agreed with Vietnam, whereas few might be ready to permit the zero tariff entry to all US merchandise granted by Vietnam.
On the identical time, nevertheless, most EM have extra to supply when it comes to delivering funding and jobs to the US in addition to being probably bigger markets for US exports. Our base case stays that for many EM there’ll both be part one offers, or ample progress made to justify a delay in threatened tariffs.
There are nonetheless dangers to this situation because the deadline approaches, with lack of progress and potential sticking factors in a lot of international locations, together with India, South Korea and Taiwan, which means that a number of international locations might face punitive tariffs, even when solely briefly.
South Korea, for instance, has requested to delay the deadline, though Trump has beforehand mentioned that on the whole there can be no delays
ShareThe indications that new US tariffs might kick in on 1 August, somewhat than this week, might convey some aid to markets.However that’s in all probability countered by Donald Trump’s menace of a brand new 10% tariff on imports from BRICS-aligned international locations.This has left the Stoxx 600 up 0.16% in early buying and selling, with Germany’s DAX index gaining 0.6%.Joshua Mahony, chief market analyst at Rostro, explains:
A combined affair for European equities this morning, with merchants weighing up the implications of Donald Trump’s determination to delay the reciprocal tariffs (in opposition to) set in opposition to the specter of a ten% BRICS tax. Whether or not it’s a case of him backing out, he clearly doesn’t wish to implement the reciprocal tariffs of their unique format, and thus what began as April, pushed to July, and now turns to August.
There might be many who see this as weakening his hand as nations be aware his unwillingness to observe via on his threats. Nonetheless, this as soon as once more supplies markets with a breather, bringing over three-weeks longer till tariffs kick in.
ShareAfter final week’s gyrations, the UK bond market is wanting calmer this morning.The costs on UK quick and long-term authorities bonds have risen barely, which has pulled down yields (the efficient rate of interest on the debt) just a little.The yield on 10-year gilts is hovering round 4.538%, down two foundation factors from Friday night time’s shut of 4.552%.That’s decrease than the 4.633% hit final Wednesday, when uncertainty over chancellor Rachel Reeves’s future hit the bond market. Nevertheless it’s nonetheless increased than the 4.498% set on the finish of June, earlier than worries about change on the high of the Treasury pushed up borrowing prices.Dean Turner, economist at UBS, suggests gilts might be enticing at present ranges, telling purchasers:
We discovered final week that any try to curb spending goes to show virtually unattainable for this authorities, even with such a big majority. This inevitably means taxes are going up. The earlier the federal government is sincere with the general public and will get the deed performed, the higher.
For buyers within the gilt market, the volatility is probably going right here to remain in the meanwhile. However this doesn’t imply gilts don’t look enticing, particularly relative to money, as rates of interest might be a lot decrease by the point the federal government’s second anniversary comes round.
ShareDespite the uncertainty over tariffs, investor sentiment within the eurozone has hit its highest degree in over three years.The Sentix index, which tracks euro space investor morale, has risen to 4.5 factors this month, an increase of 4.4 factors, its highest studying since February 2022.#sentix Financial Index: Upswing beneficial properties breadth – third enhance in a rowIn the eurozone, the general index rose by 4.4 factors to succeed in +4.5 factors, its highest degree since February 2022. Present state of affairs values particularly at the moment are selecting up. A plus of +5.8 factors means the… pic.twitter.com/nmjZ65jsdt— sentix (@sentixsurvey) July 7, 2025
A measure of the present financial state of affairs rose, however remained in unfavorable territory, whereas a gauge of financial expectations additionally elevated.Sentix says:
Total, the worldwide upturn is gaining in breadth. The US financial system particularly is making up floor. After the weak earlier months, the US financial system confirmed the best progress in July. The areas of Japan and Asia ex Japan are additionally offering progress impetus.
ShareOof! Tesla’s shares are down over 7% in pre-market buying and selling in New York, as buyers react to Elon Musk’s launch of the brand new America get together.That, by my maths, knocks round $70bn of Tesla’s market worth, pulling it beneath the $1tn degree to round $945bn.Victoria Scholar, head of funding at interactive investor, says:
A lot to the dismay of Tesla’s shareholders, after a quick political hiatus, it seems to be like Musk is renewing his concentrate on Washington as soon as once more, which means he’ll have much less time to spend on the electrical car big. There’s a distant concept that Musk garnering nice political affect might imply a bounce again in curiosity within the inexperienced vitality transition and a lift to inexperienced subsidies which might assist Tesla. Nonetheless, the extra reasonable, shorter-term chances are Musk’s political shift is unfavorable for Tesla because it comes at a time when the corporate’s efficiency is lagging, which necessitates a extra hands-on method from its boss.
It seems to be like shares in Tesla will open decrease in the present day on Wall Road, with its Frankfurt listed shares within the crimson this morning. The inventory is already down round 17% this 12 months, sharply underperforming most mega cap tech names and the broader US inventory market. Its newest figures revealed that Tesla is struggling amid Musk’s political focus and elevated competitors from EV rivals. The corporate suffered a 13.5% drop in quarterly deliveries in April to June, falling wanting Wall Road’s estimates. It seems to be like there’s a protracted, bumpy, uphill drive forward for Tesla.”
ShareUpdated at 04.22 EDTThe co-head of Japan’s opposition Japan Innovation Celebration has referred to as on Tokyo to diversify its commerce ties past the US market, and concentrate on international locations favouring free commerce.Hirofumi Yoshimura warned that Donald Trump’s tariffs present that the US is a supply of uncertainty that would damage its financial system.Citing Europe for example, he advised Reuters:
“Japan ought to develop commerce ties with international locations that target free commerce.”
“As an alternative of standing on only one, huge pillar just like the U.S., Japan ought to stand on, say, 5 to 10 smaller pillars. That’s a greater method to keep away from its roof from falling off.”
ShareChina opposes tariffs getting used as software of coercionChina opposes tariffs getting used as a software to coerce others, the Chinese language international ministry mentioned on Monday, after Donald Trump threatened an additional 10% tariffs on international locations aligning themselves with the BRICS group of creating nations.Using tariffs serves nobody, mentioned Mao Ning, spokesperson of the ministry, at an everyday press convention, Reuters reviews.ShareTesla shares drop after Musk launches America PartyOver in Frankfurt, shares in Tesla are sliding because the row between Elon Musk and Donald Trump escalates.Telsa have fallen 3% in early buying and selling, a sign that they may fall when Wall Road buying and selling begins later in the present day, as buyers react to Musk’s plan to launch a brand new US political get together referred to as the America get together.Trump referred to as the thought “ridiculous”, and claimed Musk had gone fully ‘off the rails’.Veteran tech analyst Dan Ives of Wedbush mentioned Musk was Tesla’s “largest asset” and his determination to dive deeper into politics might damage the automotive maker’s share worth.Ives wrote:
“Tesla wants Musk as CEO and its largest asset and never heading down the political route but once more…whereas on the identical time getting on Trump’s unhealthy aspect.
“It could additionally not shock us if the Tesla board will get concerned sooner or later given the political nature of this endeavour relying on how far Musk takes it.”
ShareUpdated at 03.44 EDTFTSE 100 opens barely decrease as Shell slidesLondon’s inventory market has slipped very barely at first of buying and selling.The FTSE 100 index of blue-chip shares has dropped by 9 factors, or 0.1%.Shell are the highest faller, down 1.8%, after decreasing its forecast for gasoline output and pure gasoline manufacturing this morning, and predicting that buying and selling and optimisation at its built-in gasoline division within the final quarter might be considerably decrease than in Q1.Commonplace Chartered (+1.4%), the Asia-Pacific centered financial institution, are the highest riser.ShareUpdated at 03.11 EDTUK home costs flat in June, Halifax reportsUK home costs stagnated final month, new knowledge from lender Halifax exhibits.Halifax reviews that home costs had been successfully unchanged month-on-month in June with the typical worth of a property offered coming in at £296,665, in comparison with £296,782 in Could.This pulled the annual charge of home worth inflation right down to 2.5% from 2.6% in Could.Northern Eire has by far the strongest annual worth progress within the UK, with costs up by +9.6% over the previous 12 months.However, progress was far more subdued within the South West of England, and London, with costs rising by simply +0.5% and +0.6% respectively.Amanda Bryden, head of mortgages at Halifax, mentioned the UK housing market “remained regular in June”, including:
“The market’s resilience continues to face out and, after a quick slowdown following the spring stamp obligation adjustments, mortgage approvals and property transactions have each picked up, with extra consumers returning to the market. That’s being helped by a couple of key components: wages are nonetheless rising, which is easing among the stress on affordability, and rates of interest have stabilised in current months, giving individuals extra confidence to plan forward.
Bryden identified that affordability continues to be stretched, significantly for these coming to the tip of fixed-rate offers, explaining:
The financial backdrop additionally stays unsure; whereas inflation has eased, it’s nonetheless above goal, and there are indicators the roles market could also be softening.
In line with @HalifaxBank common home worth progress was flat in June making the typical property worth now £296,665, down £117 on Could’s efforts. Shifting ahead elevated flex round mortgage lending and two charge cuts has the lender expectant of a extra buoyant market in the direction of the… pic.twitter.com/jdCqNEjyGt— Emma Fildes (@emmafildes) July 7, 2025
ShareMost Asia-Pacific markets are within the crimson in the present day.Japan’s Nikkei 225 index has dropped by 0.55%, Hong Kong’s Grasp Seng is down 0.4%, Australia’s S&P/ASX is off 0.15%, and India’s Sensex has slipped by 0.1percentJim Reid, market strategist at Deutsche Financial institution, says:
“Asian fairness markets are just a little nervous this morning, maybe on Trump’s BRICs feedback.”
ShareSome BRICS currencies have additionally dipped this morning.South Africa’s rand has fallen 1%, to 17.75/$ from 17.57/$ on Friday night time.India’s rupee has slipped by 0.5% in opposition to the greenback, to 85.8 rupees/$ down from 85.3925/$ on the finish of final week.China’s yuan has slipped by 0.1%, whereas Brazil’s actual and Russia’s rouble are each flat.ShareMany currencies are slipping in opposition to the US greenback this morning, as merchants await information of the tariff ‘offers and letters’ which Donald Trump says he’ll subject later in the present day.The euro has slipped by 0.15% in opposition to the greenback to $1.176, not too removed from the near-four-year excessive touched final week.The Australian greenback has misplaced 0.7%, whereas New Zealand’s greenback has dropped by 0.95%.The British pound can also be weakening just a little, down 0.35% at simply over $1.36.Thus far, solely the UK, China and Vietnam have reached any type of commerce agreements with the US within the final 90 days….ShareDonald Trump threatens further 10% tariff for “anti-American” Brics policiesGood morning, and welcome to our rolling protection of enterprise, the monetary markets, and the world financial system.Donald Trump has focused the BRICS group of creating nations within the newest salvo of his ongoing commerce struggle, because the deadline to agree offers earlier than the president’s 90-day tariff pause looms.Trump has warned in a single day that he’ll impose a brand new 10% tariff on any nation that aligns itself with the BRICS group, claiming they’re “anti-American”.Writing on his Reality Social web site, Trump declared:
Any Nation aligning themselves with the Anti-American insurance policies of BRICS, might be charged an ADDITIONAL 10% Tariff. There might be no exceptions to this coverage. Thanks in your consideration to this matter!
Trump’s assault comes after the Brics group — which was initially made up of Brazil, Russia, India, China and South Africa however now consists of different nations — met in Brazil on the weekend.Brazil’s president Luiz Inacio Lula da Silva, advised the assembly in Rio de Janeiro that BRICS was the inheritor to the “Non-Aligned Motion” – the bloc of nations who declined to ally with both aspect within the Chilly Battle.Lula criticised the transfer (pushed by Trump) in the direction of elevated spending on the navy somewhat than on worldwide improvement, declaring: “It’s all the time simpler to spend money on struggle than in peace”.He advised leaders they had been witnessing “the unparalleled collapse of multilateralism”, earlier than warning:
“If worldwide governance doesn’t replicate the brand new multipolar actuality of the twenty first century, it’s as much as BRICS to assist convey it updated.”
The BRICS group additionally condemned US and Israeli assaults on Iran and urged “simply and lasting” options to conflicts throughout the Center East.All of which seems to have stirred Trump into one other tariff menace.There’s additionally confusion this morning concerning the standing of the unique ‘liberation day’ tariffs which Trump introduced at first of April, after which paused for 90 days after the markets slumped.The president advised reporters on Sunday that his administration plans to begin sending letters later in the present day to US commerce companions dictating new tariffs.However there’s confusion about when these levies would kick in. Trump implied they’d begin on Wednesday, saying “I feel we’ll have most international locations performed by July 9, yeah. Both a letter or a deal.”However commerce secretary Howard Lutnick then weighed in to clarify:
“However they go into impact on August 1. Tariffs go into impact August 1, however the president is setting the charges and the offers proper now.”
Trump has subsequently posted that “TARIFF Letters, and/or Offers” might be delivered from 12:00 PM (Jap)“ in the present day, (that’s 5pm BST)The agendaShare
