Good morning. A scoop to start out: EU regulators are planning their first stress take a look at of non-bank monetary establishments, people involved in the talks told the Financial Times, in a transfer prone to spark concern amongst hedge funds, personal credit score teams and cash market funds that may very well be subjected to larger scrutiny and restrictions.
At the moment, our commerce supremo assesses the EU’s waning urge for food for a full-fat commerce fallout with the US, and our finance correspondent reviews on the efforts by Brussels to decrease the worth cap on Russian crude exports.
Now we’re speaking
After a whirlwind 72 hours in EU-US commerce talks the message from member states final evening was to maintain calm and keep on, writes Andy Bounds.
Context: Irritated by what he noticed as stalled negotiations with Brussels, US President Donald Trump on Friday threatened to impose 50 per cent tariff on EU imports. On Sunday, he delayed that risk until July 9 following a name with European Fee president Ursula von der Leyen during which she pledged to make use of that point to succeed in a “whole lot”.
Urged on by key member states, there was little time wasted in turning that promise into motion. Yesterday, EU commerce commissioner Maroš Šefčovič spoke to US commerce secretary Howard Lutnick and commerce consultant Jamieson Greer, the second such name in 4 days.
Šefčovič posted on social media afterwards that the fee “stays totally dedicated to constructive and centered efforts at tempo in direction of an EU/US deal”.
Gone was his bravado of Friday, when he urged the US to not situation threats and burdened the EU would “defend our pursuits” — a change of tone additionally famous in von der Leyen’s transient assertion on Sunday evening.
The markets definitely favor jaw-jaw to commerce war-war. Germany’s Dax index gained 1.7 per cent yesterday, France’s Cac 40 rose 1.2 per cent, and the FTSE MIB in Milan closed 1.3 per cent larger.
Nonetheless, the EU is refusing to provide method on key US calls for, corresponding to scrapping digital taxes and lowering meals requirements to just accept extra American merchandise.
There was no change in Brussels’ place, in response to one diplomat briefed on a gathering of EU ambassadors final evening. “Our united stance stays the identical,” the diplomat stated.
“We’re standing agency and united, with full belief within the Fee,” stated one other.
Some diplomats and officers assume Trump’s risk is a bluff, given the harm tariffs would trigger to his personal financial system. However others imagine tariff retaliation, such because the €95bn checklist of products proposed this month, may be essential to power a deal.
However virtually all agree that no matter deal they get, it’s going to in all probability depart tariffs larger than they have been earlier than he got here into workplace.
Chart du jour: Nuts and bolts
4 of Europe’s oldest industrial teams have added more than €150bn to their market caps on the again of hovering demand for knowledge centres that energy synthetic intelligence.
Tighten up
The European Fee and the EU’s strongest member states are pushing to lower the price cap on Russian oil as a part of a broader tightening of sanctions towards Moscow, however it’s unclear if they’ve sufficient assist at residence and overseas, writes Paola Tamma.
Context: Brussels is looking for to hit Moscow with extra substantial measures, together with decreasing a $60 per barrel worth cap on crude oil exports to $45 per barrel, in response to individuals briefed on preliminary discussions on the EU’s 18th sanctions bundle in response to Russia’s full-scale invasion of Ukraine.
However the thought has but to persuade all of the EU’s 27 member states and its G7 companions.
At a gathering of G7 finance ministers final week in Banff, rotating chair Canada advised together with specific language on tightening the oil worth cap within the joint assertion. The movement was supported by the EU and its G7 members France, Germany and Italy in addition to the UK, however was not included on the request of US treasury secretary Scott Bessent, in response to three officers briefed on the assembly.
The US Treasury declined to remark.
The final communiqué settled for language that dedicated G7 nations to “proceed to discover all potential choices, together with choices to maximise strain corresponding to additional ramping up sanctions” in case no ceasefire is agreed.
Individually, EU nations which have been beforehand reluctant to embrace the oil worth cap thought, corresponding to Hungary and Greece, are nonetheless evaluating the proposal, officers stated.
“We’re prepared to use extra strain from Russia on the European facet and we’re hoping different companions can be able to observe,” fee spokesperson Anitta Hipper stated yesterday.
What to observe right now
-
Meeting of EU common affairs ministers in Brussels.
-
Polish President Andrzej Duda meets German President Frank-Walter Steinmeier in Berlin.
Now learn these
Are you having fun with Europe Specific? Sign up here to have it delivered straight to your inbox each workday at 7am CET and on Saturdays at midday CET. Do inform us what you assume, we love to listen to from you: europe.express@ft.com. Sustain with the most recent European tales @FT Europe
