Tariffs on Europe, the news. Europe's opening is slow, Milan is doing poorly. Sefcovic: "Regret and disappointment."
MILAN – Black Monday for the stock markets opened gloomily, as widely expected. New US tariffs severely tested financial markets as of today's opening. The opening remarks of European Trade Commissioner Maros Sefcovic, upon his arrival at the Trade Council, weighed heavily: "This is one of the most important meetings, given the increasingly challenging context for international trade. And we will begin with EU-US relations, where we welcomed with regret and disappointment the letter sent by the President of the United States to the European Union, especially considering the advanced stage of our ongoing negotiations."
Paris to the EU: "No to taboos against US tariffs, consider using a bazooka."
"The issue of digital services and the EU's anti-coercion tool, the EU's trade bazooka, must also be raised" in response to US tariffs. This was stated by French Minister for European Affairs Laurent Saint-Martin upon his arrival at the Trade Council, emphasizing that "there must be no taboo regarding Europe's ability to respond." "The power struggle desired by Trump is one in which" Europe must "demonstrate its ability to respond, and this is the front on which we must accelerate," he added, urging an assessment of "what can be done in terms of retaliation."
Loro Piana placed under judicial administration for Louis Vuitton procurement exploitation
A new case of exploitation in international fashion. The Court of Milan has placed Loro Piana S.p.A., a Vercelli-based luxury brand controlled by the French multinational fashion group LVMH Moët Hennessy Louis Vuitton SE, under judicial administration for one year for having established "stable working relationships" "with individuals dedicated to exploiting workers" and "culpably" facilitating Chinese gang-mastering along the cashmere supply chain in Italy. In the investigation by Milan Public Prosecutor Paolo Storari, the Carabinieri of the Labour Protection Command - Milan Group have reconstructed a chain of "unauthorized subcontracting" involving at least four levels to "employ irregular and clandestine labor," violating health and safety regulations and failing to comply with national collective bargaining agreements for the sector regarding wages and salaries, working hours, breaks, and vacations.
Loro Piana (2,294 employees, revenue of nearly €1.7 billion in 2024, and a profit of €389 million) would only be responsible for "prototyping" garments, including the luxury cashmere jackets of the brand led by Antoine Arnault, son of Bernard Arnault, France's richest man and among the top 10 in the world by wealth. Production would be outsourced to companies "without any production capacity" (employees or machinery to process the raw materials), which in turn outsource the manufacturing to clandestine Chinese factories to reduce costs.
Europe falls with tariffs, Bitcoin soars
European stock markets are down moderately following Donald Trump's letter announcing 30% tariffs starting in August. Uncertainty surrounding negotiations between the EU and the US and future trade relations weighs on markets. Trump's moves are boosting cryptocurrencies, with Bitcoin rising 3% to above $122,000. On the currency front, the dollar strengthens against major currencies, with the euro falling to 1.1687. The Stoxx 600 index is down 0.4%. Frankfurt (-0.7%), Paris (-0.5%), and Madrid (-0.6%) are down. London is up moderately (+0.2%), with the United Kingdom having already signed a trade agreement with the US.
The main stock markets were weighed down by the luxury goods (-1.2%) and automotive (-1.1%) sectors. Selling was also seen in the technology sector (-0.8%), as well as banks and insurance companies (-0.5%). Energy stocks were little changed (-0.07%), with oil prices rising. WTI gained 1.3% to $69.32 a barrel. Brent crude rose 1.1% to $71.20. Utilities were weak (-0.02%), with gas gaining 0.9% to €35.90 per megawatt hour. Pharmaceuticals bucked the trend (+0.3%). Government bond yields were little changed. The spread between Italian government bonds and German government bonds fell to 85 basis points, with the Italian 10-year bond yield at 3.58% and the German one at 2.72%. Gold is rising, rising to $3,369 an ounce.
Spain: "No divisions in the EU, aim for unanimity in countermeasures."
"I believe the EU is proactive and constructive, committed to reaching this agreement, because we understand that fragmentation represents the worst-case scenario for everyone, and that is why we want to commit to strengthening the largest trade relationship in existence today," said Spanish Economy Minister Carlos Cuerpo upon his arrival at the Trade Council. "This is what the Commission is doing with the support of all Member States, and I believe an important point, which I hope will emerge today, is unanimity in supporting the Commission in this positive effort, while also preparing quantitative measures should they be necessary, should we fail to reach an agreement," he added.
MPS and Mediobanca in line with the stock market on the first day of the takeover bid.
Mediobanca and MPS got off to a slow start on the first day of Siena's exchange offer for the Milanese bank. Piazzetta Cuccia dropped 0.9% to 18.08 euros in the early trading hours, while Monte dei Paschi di Siena fell 1.3% to 6.82 euros, almost in line with the rest of the stock market, which lost around 1 percent. The offer will close on September 8th unless extended. MPS has put up 2.533 of its shares for each Mediobanca share. Today, Piazzetta Cuccia CEO Alberto Nagel will explain in detail, in a conference call at 3pm with investors, the reasons for the bank's refusal to accept the offer.
Europe opens in decline, American tariffs weigh on it
European stock markets began the session lower following Donald Trump's letter announcing 30% tariffs starting August 1. Markets are now watching the European Union's moves to reach an agreement with the United States. Frankfurt (-0.89%) and Paris (-0.6%) declined. London (+0.03%) showed little change, with the United Kingdom having already reached trade agreements with the United States.
Stock Market: MPS -1.6% on opening day, with trading on Mediobanca (-1%)
Stock Market: MPS -1.6% on opening day, with trading on Mediobanca (-1%)
Milan Stock Exchange: -1% at start after US announces 30% tariffs on EU
Milan -1% at the start after the announcement of 30% US tariffs on the EU
Tariffs: Sefcovic expresses regret and disappointment over Trump's letter
"This is one of the most important meetings, given the increasingly challenging context of international trade. And we will begin with EU-US relations, where we welcomed with regret and disappointment the letter sent by the President of the United States to the European Union, especially considering the advanced stage of our ongoing negotiations," said European Trade Commissioner Maros Sefcovic upon his arrival at the Trade Council.
Sefcovic: "We are getting closer to a good agreement."
EU Trade Commissioner Maros Sefcovic: "We are getting closer to a positive outcome for both sides." This is what he said about the tariff negotiations between Brussels and Washington.
Tariffs: Bitcoin soars to $121,000 high
Bitcoin has surpassed $120,000, an unprecedented level, after already breaking record after record last week, fueled by growing demand from institutional investors who see it as a source of diversification amid easing cryptocurrency regulations. As of 8:30 a.m. in Italy, the top cryptocurrency was trading at $122,421.
The spread between Italian government bonds (BTPs) and German Bunds opens higher at 86 points.
The spread between Italian government bonds (BTPs) and German government bonds (Bunds) has started higher. The spread between the two government bonds has risen to 86 points, from 84.7 at Friday's close. The yield on the 10-year Italian bond is stable at 3.56%.
Foti, if 30% remains the table will be over but now no muscles
"If we actually reach 30% tariffs, obviously the deal will be over, but now is not the time for muscle toning," Minister for European Affairs Tommaso Foti told Repubblica. He said, "We mustn't let those who think they can start a trade war drag us into the water, because it would be very difficult to pick up the pieces later."
Duties, Fontana (Confindustria): From companies to investments waiting to understand
Alessandro Fontana, director of the Confindustria Research Center, has a less than optimistic view of the situation facing the Italian economy: "I wouldn't be so confident about employment either, because our ad hoc surveys tell us that companies have kept on additional staff, but given that demand isn't recovering, they won't be able to continue for long.
Oil prices slightly up, WTI at $68.14
Oil prices rose slightly this morning on commodity markets: WTI crude for August delivery traded at $68.14 a barrel, up 0.13%, while Brent crude for September delivery traded at $70.48 a barrel, up 0.17%.
Europe heads for a slow start with US tariffs
European stock markets are headed for a decline following Donald Trump's announcement of 30% tariffs. Futures on Europe's main stock markets are falling, in line with those on Wall Street. Asian markets, however, are cautious.
Bitcoin soars to highs above $121,000
Cryptocurrencies are rising sharply, driven by U.S. trade policies and Donald Trump's new tariff announcements. Bitcoin hits a new record high of $121,352, up 1.9%. Ehereum (+1.8%), Binance (+1%), Dogecoin (+4.2%), and Cardano (+2.4%) are also up.
Asian markets open mixed
Asian stock markets opened the week mixed. Around 2 a.m. GMT on the Tokyo Stock Exchange, the flagship Nikkei index fell 0.32% to 39,439 points, and the broader Topix index lost 0.22% to 2,817 points. The Seoul Stock Exchange gained 0.21%, Sydney remained stable (+0.07%), and Taipei fell 0.33%. Hong Kong's Hang Seng Index rose only very timidly (+0.1%). Investors are digesting the US president's new threats.
Tariffs, anxiety over market reaction
The new US tariffs will be the first test for financial markets when they open tomorrow. The conditions are ripe for a Black Monday, although investors have so far always counted on Trump backing down (as happened after Liberation Day) in the event of a market shock. This time, however, unlike in April, the economic situation may persuade the US president not to back down in the negotiations: the much-feared US recession has not materialized, the tariffs applied so far have brought fresh resources to customs, and inflation has remained under control.
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